Chinacars, TOM Online Sign Strategic Cooperation Agreement
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BEIJING, Nov. 29, 2005; China's leading auto vertical portal Chinacars today announced a strategic cooperation agreement with China's leading wireless Internet company TOM Online Inc. . The companies will jointly pursue business opportunities in Content, Commerce and Community areas in China's fast growing automobile market. An initial project of this partnership will include featuring Chinacars' local portal content, its best-in-class car model database, nationwide auto e-commerce platform and its car accessory online store on TOM Online's auto channel. Chinacars and Tom Online also plan to co-develop China's nascent used car market in the near future.
Commenting on the partnership, Chinacars President and Chief Executive Officer, Mr. John Zhang states: ''Ever since Chinacars completed second round financing with Granite Global Ventures (GGV), our management team has gone through a thorough analysis of China's online auto market. We understand that in order to meet customers' demand for quality services and capital market's high expectation on our growth, we must not only talk the talk, but also walk the walk. Our portal strategy is derived from our strategic thinking of cross value collaboration embedded in our Three-Product-Five-Platform business model. We aim to combine and optimize the vertical value chain strength of Chinacars and the horizontal value chain advantage of TOM Online. The goal is to greatly enhance competitiveness of both parties.''
TOM Online Executive Director and Chief Executive Officer, Mr. Wang Lei Lei, says: ''TOM Online not only is a leader in China's wireless Internet market, it is also the operator of one of China's most visited portals. In just a few years time, TOM Auto Channel has grown to become one of TOM Online's major portal offerings, holding a significant market position in the auto Internet vertical. I believe this collaboration with Chinacars will open up a new growth area for our portal business in the future.''
Chinacars Vice President of Portal Products, Mr. John Yang, adds: ''The competitive landscape of China's general portal space has greatly diversified since the new portals, represented by TOM Online and Tencent, the WEB 2.0 communities, such as Bokee, the new media, represented by Focus Media and Target Media and the search engines, represented by Baidu and Google, entered the arena. Accompanied by segmentation and specification, and the ever increasing demand from sophisticated consumers, the competitive landscape of China's vertical portal space has greatly consolidated. The combination of Chinacars' in-depth end-to-end solutions and cross supply chain business model and TOM Online's portal influence is certain to make profound changes to the competitive landscape of the auto Internet sector. China's auto penetration rate is only 2.4% in 2005, far below the levels of many developed countries and most developing countries. Since 1987, China's personal sedan market has grown at a CAGR of 47%, according to UBS research. We are confident this collaboration with TOM Online will be beneficial for both companies in winning a leading position in this very important and fast growing market.''
TOM Online Vice President of Portal Products, Mr. Wu Yun, said: '' The Auto Channel is one of tom.com's strategic growth channels. We are very excited about the growth potential of China's auto market. We believe that, with the further development of the supply chain and the formation of new market segments, the collaboration of general portals and vertical portals in this space will be the trend. TOM Online is very pleased about the strategic partnership with auto Internet's leading company, Chinacars. We believe this collaboration will definitely lead to a win-win situation for both companies.''
The contents of this initial project of collaboration include:
-- Contents from Chinacars' proprietary local portals. Chinacars is the
only Chinese auto web site operating a 21 local city portal chain
featuring news, car buying tips, community, e-commerce and life guides
and in the local municipality.
-- Chinacars' award winning CareXpress 8.0 online car buying platform.
CareXpress is an e-sales platform that connects car buyers with car
dealers through Chinacars' 23 million daily page view web property and
its 150 seat call centre. CareXpress is today China's largest
automobile e-sales platform, selling thousands of cars per month.
-- China's first visualized car model database. Leveraging leading web
technology, Chinacars' state-of-the-art car model database features
China's first and only 360o panorama interior and exterior view of an
automobile. The database provides 250 parameters, 16 pictures and 4
visualization modules for each of the 3,642 car models currently sold
in the Chinese market. It provides the best in class car buying
research tool for every car shopper in China.
-- China's leading sedan accessory online store. Chinacars' recent
launched online B2C store for sedan accessories features sedan
accessories of 36 leading international brands, 100 categories and more
than 4,000 products. Since its openning on November 7, it has already
attracted more than 2,000 online shoppers.
Commenting on the partnership, leading Chinese Internet analyst, President of Shanghai-based iResearch Research Institute, Mr. Henry Yang adds: ''It is always refreshing and rewarding to the observers of the Chinese Internet to witness a continuous stream of innovations in new technologies and business models. Vertical portals have a deep root in China and certain industry verticals have a very bright future when traditional advertising models are combined with WVAS and e-commerce, in our view. Chinacars is one of the oldest vertical sites and certainly one of the most dynamic today. Tom Online's far sight in collaborating with Chinacars in attacking the auto Internet market will certainly bring profound change to China's portal market.''
About Chinacars
Chinacars is the leading multi-platform vertical portal in China, providing comprehensive products and services to China's auto consumers and industry value chain. Founded in 2001, the Company currently employs 300 staff and has on-the-ground presence in more than twenty cities in China, including Beijing, Shanghai, Guangzhou, Chongqin, Xi'an and Changchun. Chinacars' investors include China's leading industrial conglomerate Wanxiang Holdings and US venture capital fund Granite Global Ventures (GGV).
Chinacars' end-to-end industry solutions encompass three categories, in Content, Commerce and Community, and over five platforms, in PC Internet, Mobile Internet, Call Centre, Global Positioning Systems (GPS) and offline infrastructure. In Content, Chinacars operates China's oldest and highest trafficked independent auto portal, http://www.chinacars.com/ , and provides wireless car and traffic content in twenty-three provinces. In Commerce, Chinacars operates China's leading Internet and voice-call car buying platform, CareXpress, serving tens of thousands auto dealers nationwide. Chinacars GPS solution currently serves clients like Guangzhou Police 110 and is the only Location Based Services (LBS) partner to China Unicom. In Community, Chinacars is one of the leading BBS/Blog site in China and has its own membership-based offline auto club, ChinacarsClub.
About TOM Online Inc.
TOM Online Inc. is a leading wireless Internet company in China providing value-added multimedia products and services. A premier online brand in China targeting the young and trendy demographic, the Company's primary business activities include wireless Internet services and online advertising. The Company offers an array of products such as SMS, MMS, WAP, wireless interactive voice response services, content channels, search and classified information, free and fee-based advanced email and online games. As of September 30, 2005, TOM Online is the only portal in China that enjoyed a top three ranking in every wireless Internet services segment.
For more information, please contact Chinacars Eric Wen, Chief Financial Officer and Vice President of Marketing Tel: +86-10-6401-4646 x555 Email: eric-wen@woncore.com TOM Online Inc. Rico Ngai Tel: +86-10-6528-3399 x6940 Email: ricongai@tomonline-inc.com