China: Internet and Games Business Development Tour

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1 China: Internet and Games Business Development Tour July 8-13, 2007 Beijing, Shanghai and Suzhou A trade mission focused on investment and partnership opportunities in China s booming online games and Internet industry Please reserve your spot ASAP as registration closes in June Mission Purpose This mission will help international companies gain insights into the Chinese market and develop influential contacts within the industry. Companies will have an opportunity for business matchmaking including the opportunity to discuss potential licensing and business tie-ups. Key Highlights of the Tour Visits to leading Chinese companies in the digital entertainment sector including companies such as Shanda, Sohu, Tencent, Optisp, JoyZone Networks and Perfect World among many others. Attendees will be able to network with industry contacts and learn the most up-to-date developments in the market. Visits to two major development centers in Beijing. Attendees can tour the facilities, be greeted by government officials and meet companies located in these software parks: o o A visit and tour of the Cyber Recreation District of Beijing (CRD) a government-backed industrial park/incubator focused exclusively on game and animation companies with more than 100 companies. CRD is a national cyber-media industry development base and a national online game and cartoon industry base. A tour of Zhongguancun Soft Park in Beijing, one of the largest software parks in China at 340 acres and home to 130 high-tech companies including IBM and Oracle. Daily dinners with special invited guests for networking and business opportunities. Members of the trade mission will attend China Joy, the largest digital entertainment expo in China featuring more than 160 companies from China and around the world. Page 1 of 8

2 Why China? Games Market: The games markets in China continue to grow rapidly. Pearl Research estimates the Chinese games market will exceed $1 billion in 2007 and could double within five years. Leading online games in China can generate more than $120 million annually. Chinese Internet companies and game operators are aggressively seeking high-quality digital entertainment content with potential partners. Additionally, Chinese developers are eager to collaborate with Western companies to enhance their development capabilities and to extend their business globally. Conversely, international companies are seeking Chinese partners to tap into this growing games market. Internet Market: China has the second-largest Internet population with 133 million users, ranking behind the US market. There are nearly 77 million broadband users in China in 2006, up 20% from Approximately 54% of Internet users in China are under the age of 24 years old. Pearl Research believes as the number of broadband connections continues to increase, Chinese users are becoming increasingly sophisticated, using the Internet to consume content such as games, blogging, online shopping and music downloads. Agenda Topics Through a consciously structured series of company visits and dinners, attendees can network with a select group of business executives and senior government officials. This program is designed to generate tangible business development opportunities for international companies. Agenda topics include: Specific business opportunities and partnerships Best practices to successfully enter the market in addition to strategies to avoid Market for initial public offerings (IPO) and mergers and acquisitions in China. The explosive growth of venture capital funding in China Government subsidies, tax breaks in addition to government regulations for international companies conducting business in China. Understanding local consumer preferences and the best ways to localize international products for the Chinese market Drivers and inhibitors to growth of the Internet and games market Page 2 of 8

3 Tour Schedule Sunday Arrival 8-Jul Mon Day 1 9-Jul Tue Day 2 10-Jul Wed Day 3 11-Jul Thur Day 4 12-Jul Fri Day 5 13-Jul 9:00 09:30 10:00 10:30 11:00 11:30 12:00 12:30 1:00 01:30 2:00 02:30 3:00 03:30 4:00 04:30 5:00 7:00 ARRIVE IN BEIJING Welcome dinner/ orientation Welcome reception at Cyber Recreation District Presentations by local Chinese companies Tour of Zhongguancun Software Park with lunch JoyChina (Casual game developer) Tsinghua Tongfang special invited guests Perfect World (MMOG Operator/Developer) Sohu Games (Portal/game operator) FLY TO SHANGHAI Shanda (Online game operator) Optic Communications (Online game developer/operator) Lunch Lunch Lunch Object Software (MMOG Developer) Pixel Software (MMOG Developer) special invited guests JoyZone Networks (Online game operator) Shanghai Online Information Technology (Online game operator) special invited guests Junnet (prepaid card distributor) Tencent (top IM service provider in China/ game operator) special invited guests Attend ChinaJoy independe ntly or Suzhou. For the visit to Suzhou, we will visit Suzhou Industrial park, several gaming companies in the region and have a nice meal in the city. Suzhou is an hour away from Shanghai special invited guests A detailed day-by-day itinerary can by accessed by contacting mail@pearlresearch.com Schedule of meetings is subject to change. A final list will be published by the end of April. Page 3 of 8

4 Why should I attend? This trade mission provides your company an opportunity to: Meet, establish or reaffirm commercial ties with some of the most important and influential people in the Chinese digital entertainment and Internet industry Enhance your understanding of the Chinese market Learn critical success factors and determine the extent of market opportunities Promote your brand and showcase your products Establish crucial government ties Who will be attending? Developers, publishers, hardware manufacturers, venture capitalists, press, analysts, telecoms, government officials, service providers and any other companies interested in the Internet and games market in China should attend this trade mission. Application Process All companies are welcome to apply for this mission. Please apply as soon as possible as the number of attendees is limited Non-binding application form: Tour fee including all meals, non-alcoholic drinks, ground transportation, translators, matchmaking meetings, business briefings and welcome receptions: US$4,500 if registering before April 30 th US $4,800, after April 30 th Fee excludes airfare or hotel accommodations For more information and for an application, please contact Pearl Research at mail@pearlresearch.com or Page 4 of 8

5 Company Information Zhongguancun Software Park ( 中关村软件园 ): With more than 340 acres of land and more than 600,000 m 2 of office space, Zhongguancun Software Park is one of the biggest software parks in China. By the end of 2005, more than 130 domestic and international companies including Oracle, IBM and Siemens opened offices in the park. Furthermore, the park provides a wide range of services including law advisory, accounting and investment services, as well as intellectual property management. Event Detail: July 9, Monday, Beijing Photos of Zhongguancun Software Park Cyber Recreation District ( 北京数字娱乐产业示范基地 ): Launched in 2004, the district now hosts more than 100 digital entertainment companies in areas such as online games, mobile games, digital music and 3G mobile. Event Detail: July 9, Monday, Beijing Photos of buildings and a testing/development center in the Cyber Recreation District Page 5 of 8

6 JoyChina ( 中娱在线 ): JoyChina is a casual game developer founded in The company s casual action game Luanwu Tianxia is currently operated by Shanda. In addition to game development for the domestic market, the company also offers casual game outsourcing services for international publishers such as Real Networks. Event Detail: 2:30pm, July 9, Monday, Beijing Tsinghua Tongfang ( 清华同方 ): Tsinghua Tongfang was formed in 1997 and it acquired casual game portal Kele8 in Kele8 currently operates nearly 200 inhouse developed online casual games and one MMORPG. Tsinghua Tongfang is the third-largest PC brand in China. The parent company generated more than $1 billion in revenues. Event Detail: 4:30pm, July 9, Monday, Beijing Perfect World ( 完美时空 ): Perfect World was established in The company engages in the development and operation of MMOGs. The company s in-house developed 3D MMORPG Perfect World is one of the most popular online titles in China and Taiwan. The company is planning to complete an IPO this year. Event Detail: 9:00am, July 10, Tuesday, Beijing Sohu Games ( 搜狐游戏 ): Sohu, publicly traded on NASDAQ, operates one of the top Chinese portal sites, search engine sogou.com and game portal com. The company s game department currently offers 2 MMORPGs as well as numerous online casual games. Sohu is the exclusive online media partner for the 2008 Beijing Olympics. Event Detail: 11:00am, July 10, Tuesday, Beijing Object Software ( 目标软件 ): Object Software was founded in 1995 in Beijing, making it one of the earliest game developers in China. The company engages in the development of packaged PC and online games. Object currently operates 4 in-house developed MMORPGs. Event Detail: 2:30pm, July 10, Tuesday, Beijing Pixel Software ( 像素软件 ): Established in 2002, Pixel Software develops Chinesethemed packaged PC games as well as MMORPGs. The company s first packaged RPG Daojian was among Gamestop s top 10 RPG upon launch. Pixel currently operates one in-house developed MMORPG and the company plans to launch another in-house developed online title in Event Detail: 4:30pm, July 10, Tuesday, Beijing JoyZone Networks ( 天纵网络 ): JoyZone engages in the development and operation of online games. The company currently operates CTRacer, an online racing game codeveloped by SEGA and Hyundai Digital Entertainment. In addition, JoyZone will lunch TTQ, a casual soccer game developed by Tose Software in Event Detail: 2:30pm, July 11, Wednesday, Shanghai Page 6 of 8

7 Shanghai Online Information Technology ( 上海热线游戏中心 ): Shanghai Online Information Technology is a full subsidiary of Shanghai Telecom and Shanghai Information Industry. Event Detail: 4:30pm, July 11, Wednesday, Shanghai Shanda ( 盛大 ): Founded in 1999, Shanda develops and operates MMORPGs and casual games, as well as online chess and board games in China. The company reported $212 million in revenue in 2006 and it is one of the top online game companies in China. Event Detail: 9:00am, July 12, Thursday, Shanghai Optic Communications ( 光通娱乐 ): Optics Communications was founded in The company mainly engages in the operation of MMOGs. The company currently operates 4 MMORPGs and 2 casual games, including popular titles such as Eve and Shaiya. Event Detail: 11:00am, July 12, Thursday, Shanghai Tencent ( 腾讯 ): Established in 1998, Tencent operates China s most popular IM service with more than 220 million active user accounts. In 2003 the company launched its QQ Game portal and released its first in-house developed MMOG QQ Fantasy in the following year. In addition to QQ Fantasy, the company also operates other MMOG and casual games such as R2 Beat and QQ Tang. Event Detail: 4:30pm, July 12, Thursday, Shanghai Juunet ( 骏网 ): Established in 2000, Juunet focuses on the developing the sales and payment platform for online games. The company has distribution partners through out China and it is currently the sole distributor of prepaid cards for online games such as Perfect World and Stone Age. Event Detail: 2:30pm, July 12, Thursday, Shanghai Page 7 of 8

8 Organizers Pearl Research Pearl Research, a business intelligence and consulting firm, specializes in the interactive entertainment and games market with a special focus on emerging markets. Based in San Francisco and China, Pearl Research provides its clients access to a vast knowledge base of market research information. The company publishes in-depth research reports, provides a research advisory subscription service and customized research and consulting services. For more information and to sign up on our complimentary mailing list, please visit Pearl Research s syndicated reports include the Games Market in China, an in-depth analysis of the online, packaged PC and consoles games market. Upcoming reports include an analysis of the Web 2.0 (social networking, blogging, video sharing sites) market in China. China GC Networks China GC Networks offers global clients with a complete, integrated source of marketing tools to reach the Chinese game industry. With our integrated media offerings (magazine, web sites, and events), China GC Networks is your best partner in expanding your company s products and services to China. China GC Networks provides a wide variety of services such as event planning and management, public relations, China market entry support, and business consulting to companies who want to explore business opportunities in China. China GC Networks maintains close relationship with various government agencies and industry organizations in China. It also has established strategic partnership with many foreign companies and conferences such as Game Developers Conference and Austin Game Conference. China GC Networks maintains offices in Beijing, China and Chicago, IL, USA. For more information, please visit Contact Info Allison Luong Managing Director Pearl Research aluong@pearlresearch.com PH: Zhan Ye VP of Business Development China GC Networks ch@gcmag.com Page 8 of 8

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