What about OA in shanghaiIs their a possiblity that Concept could
do business with OA in some fashion?
From the Edmonton Journal today.
OA Group invests millions in Shanghai
OA Group invests millions in ShanghaiInternet retailer will help build
nternet services, hardware Paul Marck, Journal Business Writer The Edmonton Journal
OA Group Inc., a rising star in
computer and Internet retailing,
will invest $20 million to $30
million to fund a joint venture to
produce a Web portal in
Shanghai and establish its
presence in Asian markets.
The Edmonton company has
signed agreements with partners
Shanghai Land and Housing
Corp., the largest private
residential real estate developer
in China, and Intercap
Enterprises Group Inc.,
(CDNX:IEG) an Edmonton
building materials firm.
"This is the beginning of a significant relationship between Edmonton and
Shanghai," Alex Woo, OA president (CDNX:OA), said Thursday. "This project will
bring Internet services, hardware and software to Shanghai from Alberta."
There is a potential market of $600 million in Shanghai alone for e-product and
e-commerce, Woo said at a ceremony to mark the signing of agreements with
representatives from the Chinese company.
OA will build a Web portal for Shanghai Housing, with links to Intercap's building
supply business and OA's Internet and computer online store. It will also link
Shanghai Housing's 150 offices in that city with high-speed computer hardware
and build Web-based commodity and stock-exchanges with bilingual sites and
translation capabilities for English/Chinese transactions.
Woo said OA will likely use a combination of a share offering and private
placement to raise the necessary $20 million to $30 million to get the project off
the ground this year.
Xu Linbao, chair of Shanghai Housing's board, said the company's existing
real-estate Web site has generated $15 billion in sales since its launch two years
ago. The potential is much greater for an enhanced Web site with more product offerings, he said.
Charles Xu, project manager for Intercap, said the Web portal will help overcome
traditional business barriers to showcase Canadian and Chinese products and services.
Canadian companies once limited to exposure at trade shows will gain access to
a much broader base of potential customers with the Internet. Last year, Intercap
established a Shanghai factory to build doors and windows for the residential
market.
"We do have a lot of contacts with potential Chinese investors, and they are very
interested in acquiring equity in Canadian and North American public
companies," Xu said. "If they see that the products and technology are plentiful in
the Chinese market, they are willing to invest in this kind of business and open
the market."
It is critical to build the necessary Internet infrastructure and with OA Group
leading the way, there should be plenty of business opportunities, Xu said.