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-Notice-Waistech International Inc-

 

The information presented in this document is highly sensitive and confidential and
is to be used by authorized parties for the purpose of determining a preliminary
indication of interest in Waistech International Inc("the Company"). The recipient
of the Business Plan agrees by its receipt not to reproduce, duplicate, or reveal, in
whole or in part, information presented herein without the written permission of the
Company.

The Company and other sources provided the information contained in the Business Plan. It has been reviewed, approved, and released by the Company, who assumes responsibility for its contents. Estimates and projections contained herein have been prepared by the management of the Company, involve significant elements of subjective judgment and analysis, and are based on certain assumptions. Actual results may vary from estimates and projections and these variations may be material.

No representation or warranty, expressed or implied, is made as to the accuracy or completeness of the information contained in this overview, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. The Business Plan does not purport to contain all of the information that may be required to fully evaluate the Company for a potential business relationship, and any recipient thereof should conduct its own independent analysis and due diligence process.

THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE
AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITY.

For additional information, contact:

Mr. Anthony Chow 

Waistech International Inc

Tel: 604-8161098 (Vancouver, BC)

Fax: 604-6695791 (Hong Kong)

Web site: www.waistech.com

Email:  info@waistech.com

The Opportunity

Waistech International Inc is capitalizing on the opportunity it received from the Chinese government in the form of a national Īnternet Content Provider (ICP), Internet Data Center (IDC), and an Application Service Provider (ASP ) licenses. The trade name "Chinae-online.com"(CEO) has also been licensed to Waistech International Inc by the Ministry of Foreign Trade and Economic Co-operation (MOFTEC) and will be the trade name used for all the Wasitech International Projects. These licenses enables Waistech to advance quickly into the Chinese Internet industry created by IT advancement, the rapid growth of corporate Internet users, and China's potential entry to the WTO. In addition to the ICP license, the Chinese Government will provide Waistech with the recommendation to State Owned Businesses and Non-State owned businesses which will use the Internet related services of Waistech 

Services and Features

Waistech International Inc will provide a web portal and an e-commerce infrastructure support system. As the only portal in alliance with the Chinese government, Waistech International Inc will post proprietary government related information, including government announcements, statistics reports, tariff information, and internal communication documents.

The Company will also operate a powerful e-commerce backbone system, to include web-enabled application and data storage facilities, which will transform its members into e-business enterprises and create a real-time, online marketplace. CEO will also provide its web subscribers with complete Internet design and code-writing professionals for the creation of custom designed web sites.

Written in both Chinese and English, Waistech International Inc will target the global business communities planning to do business with China.

Waistech's Products and Services:

ICP: Internet Content Provider: Waistech will differentiate itself from existing portals by focusing on posting government announcements, statistics reports, tariff information, and its internal communication documents.

Having established their ICP portal, Waistech' s e-commerce system will transform its members into e-business enabled enterprises and provide them with an exchange venue in real time. This powerful platform will enhance Waistech's members operational efficiencies and increase their business opportunities.

Site Development & Information Content Waistech will provide an online consulting service for Chinese companies looking to establish an e-commerce presence. Waistech will also provide on-line services for foreign companies looking for information on doing business in China. Consultation will be provided in the following areas: Web development and management Chinese laws and government policies Economic forecasts and comments General management and marketing strategy Business trend and solutions

Business partnering and technology resources

After completing their ICP stage, Waistech will provide for its membership base the following exclusive on-line services:

Company profiles: principles, goals, shareholders, and contact information

Financial news: stocks and security market information, currency conversion rates

Laws and regulations: with a focus on international trade, finance and insurance, taxation and tariffs, and real estate

Statistics and yearbooks on various vertical industries

Exclusive Government publications and announcements:

Chinese government internal communication documents

Announcements of the People's Bank of China (the Central Bank of China)

Announcements of the Security Commission

On-line Yearbook on China's International Trade and Economic Development

On-line WTO documents

 

TSP / ASP /Product and Service

 

The Total Solution Provider  brings the power of advanced  eBusiness applications to small businesses, using the Web as a low cost distribution and support channel. The TSP model, like the ASP (Application Service Provider) model, consists of software and data services hosted remotely and delivered to the client over computer networks.

 

The key advantage of the ASP allows corporations to operate their business anywhere and anytime through the internet.  Without this type of distributed solution, a business would need to install their own network infrastructure, pay for multiple software licenses, and manage the necessary implementation and training programs. Add to this the extra costs of maintenance and upgrades, and it turns out to be a very expensive proposition, with up-front costs that run into hundreds of thousands of dollars.

 

Waistech has developed a web-application software for ASPs. By using our applications, an ASP can build a total solution provider to serve the SMBs. 

 

1 eCommerce: e-storefront, e-marketing, e-management, web creator, web maintenance, web community

2 eSupply Chain Management: sales, purchase, account receivable, account payable, inventory, product category, contact management, system management, shipment.

3 eTrading Portal: online auction, online order, portal management, real time comparison, order management, payment management, shipment management, inventory management, business community, business directory.

4 eProcurement: requisitions system, special requests system, approval system, supplier integrations, supplier network.

    5       eCustomer Relationship Management: order system, invoice system, billing system,

quotation, sales records, purchase records, contact information, customer self assistant, service revenue management

6       eEnterprise Resource Planning: human resource, corporate management, employee planning, financial management.

 

The Internet has given rise to application service providers (ASPs), firms that host and rent businesses software applications using the Internet as a delivery platform instead of installing those applications internally.  Only the Enterprises can afford to pay millions to upgrade their software and facilities to operate their business in the Internet.  However, the small and medium sized businesses will benefit from the ASPs, which provide solutions in the Internet for SMB to compete in the new Internet business environment

 

Professional Internet Services

Waistech will provide an online consulting service for Chinese companies looking to establish an e-commerce presence. Waistech will also provide on-line services for foreign companies looking for information on doing business in China. Consultation will be provided in the following areas:

a) Web development and management b) Chinese laws and government policies c) Economic forecasts and comments d) General management and marketing strategy e) Business trend and solutions f) Business partnering and technology resources

 

 Internet Data Centers (IDC)

Waistech's Internet Data Centers (IDCs) will provide the physical environment necessary to keep all their Chinese B2B member's servers up and running 24 hours a day, 7 days a week. Waistech's IDCs will offer the widest range of physical security features, including state-of-the-art smoke detection and fire suppression systems, motion sensors, and 24x7 secured access, as well as video camera surveillance and security breach alarms. Also within these facilities, Waistech will be able to deliver the highest levels of reliability through a number of redundant subsystems, such as multiple fiber trunks coming into each IDC from multiple sources, fully redundant power on the premises, and multiple backup generators. All IDC's will combine around-the-clock systems management with onsite personnel trained in the areas of networking, Internet, and systems management.

 

Waistech's IDCs will create and maintain web sites for corporations, taking care of data storage management and security (firewall) details which are beyond the technical capacity of many large Chinese corporations. Waistech's IDCs will operate a uniquely robust network based on peering relationships with multiple vendors to satisfy their network capacity, and will be well in excess of their customers' requirements. Initially, the backbone network will be comprised of leased lines from China Telecom through MII the largest Telco in China.  These lines give Waistech's IDCs the flexibility to route data traffic around bottleneck problems.

 

Internet Content Filter: Waistech's filtering system is content-based, not word-based, which differentiates us from the dated products on the market. The system requires no software or hardware installation on the workstations. It filters sites deemed illegal, offensive, non-productive, or contrary to school or work related activities, with approximately 99% accuracy. The filtered material never enters the classrooms, libraries, offices, or households and therefore cannot be hacked to gain access. It eliminates staff monitoring responsibilities and frees them from undesirable tasks.

 

The Waistech filtering system supports multiple languages, including English, German, French, Spanish, Italian, Portuguese, Hindu and Mandarin. Waistech uses a global filtering selection for all its clients. Each Internet Content Server is updated automatically, every day, therefore requiring no user intervention. All administrative tasks and maintenance of each server are handled from our NOC (Network Operations Centre) in Canada.

Board of Directors

Waistech International Inc's directors and executive management team is formed of a proactive and experienced group of individuals with a broad knowledge and understanding of all fields of the Internet and the telecommunication industries. Senior management includes:

     

    Mr. Anthony Chow, Director and President & CEO

    Mr. Donald Chan Director and V.P Internet Development

 

Management Team

Mr. Len Goossen( CGA), V.P Operations

Mr. William Lee, (CA) Chief Financial Officer

Mr. Lance Morginn Chief Information Officer

Mr. Sheldon Silverman Vice President Marketing

Mr. Ken Cabianca Vice President of Investor Relations

     

Industry Analysis

The Chinese Internet market is growing rapidly. According to the latest Statistical Report on China's Internet Network Development, the number of Internet users: about 22.5 million, including 3.64 million who have access to Internet via private lines, 15.43 million via dial-up connection and 3.43 million via both ways. The number of computers connected to the Internet: about 8.92 million, including 1.41 million using private lines and 7.51 million using dial-up connections. Besides computers, 920,000 people have access to the Internet via other facilities, such as through mobile terminals or information home appliances.. IDC forecasts that by 2004 there will be 80 million Internet users in the country. It is also predicted that by the year 2005. It is also predicted that by the year 2005, China will surpass Japan to become the second largest Internet economy in the world, trailing only the US.

China's e-commerce growth rate will average 209% per year over the next few years. The Ministry of Information Industry (MII) expects that e-commerce revenues will top US$96.7 million in year 2000, and will increase more than ten-fold to US$1.2 billion over the next two years. IDC Group expects e-commerce sales in China to reach US$3.8 billion by 2003, which represents a 40-fold increase over the 2000 figure. As Waistech is one of the only few official Chinese ICP license holder, the company will be able to provide its ASP, Data Centre and production services in a virtually competition free environment.

(Note: The CNNIC defines Chinese Internet users as Chinese citizens who use Internet for at least one hour per week on average.)

Technology

       

In 1999, China's IT market was valued at over US$11 billion and accounted for 21% of the Asia-Pacific area's IT revenue. China's IT market has grown to over US$14 billion in the year 2000.

IDC predicts that China's IT market will more than triple by 2004, when it will account for almost one-third of the Asia-Pacific IT market.

Currently, hardware dominates the Chinese IT market, accounting for almost 88% of China's IT spending. However, industry experts predict a change in the country's' IT spending patterns. They believe that as the computer industry grows, the demand for software and services will increase accordingly. By 2004, software and services will account for 15.8% and 9.6% of China's IT market, up from 6.9% and 5.3% respectively.

 

IDC's research report on "Worldwide Application Service Provider Forecast 1998-2003", forecasts the market for Application Service Providers to grow at a rapid rate: from $889 million in 1999 to $2.27 billion by the end of 2000.  This figure is expected to exceed $23 billion by the year 2003.  A recent survey by Network World magazine found that 20 percent of respondents have already used an ASP (Application Service Provider), and more than one-third of companies are ready to give application outsourcing the nod.

 

Future of IT in China

China will be infusing US$500 billion into the information technology sector during the 10th Five-Year Plan (2001 to 2005),.

The IT sector would contribute 7 percent to China's gross domestic product by 2005, up from the current 4.5 percent, Telephone density will increase from the current 35 percent to 70 percent during the period, while TV broadcasting service will be expanded to cover 95 percent of the country. Additionally, the number of satellite TV customers will exceed 150 million and the. information service business will grow by 30 percent

Preliminary measures

China's IT industry, which is still in a start-up period, has its development strategy focused on e-commerce, broadband infrastructure construction and information development. Chinese companies will pay adequate attention to the issue of IT equipment redundancy because it is one of the factors that led to the economic slowdown in the United States, he noted.

Before carrying out a business strategy, the State Information Center advised that companies should cautiously consider the security of e-commerce, the potential room for the development of a cyber-based business and whether customers are accustomed to that style of business.

The State Information Center also said that the Chinese government should further improve relevant laws and regulations and one of the government's primary tasks should be improving the transparency of the market rules. Furthermore, the government will offer greater protection for intellectual property and increase its investment in human resources.

Competition

Internet experts estimate that up to October 2000, China had about 300 ISPs and 600 ICPs, most of which were not officially registered. Recent Chinese reports indicate that by the end of 2000, China has eliminate all non-registered ISPs and ICPs. In addition, there are very few successful portals, and so far, only four are listed on Nasdaq. They include: Netease.com, Sina.com, Sohu.com, and China.com.

Chart 2:  NASDAQ Listed Competitors to Waistech,

Criteria

Sina.com

China.com

Sohu.com

Netease.com

IPO Date

April 13, 2000

July 13, 1999

July 12, 2000

 June 30, 2000

Exchange

NASD:SINA

NASD:CHINA

NASD:SOHU

NASD:NTES

Market Capitalization (as of September 15, 2000)

$816.3 Million

$1,400 Million

$238.1 Million

$195.7 Million

Revenue (6 months ended June 30, 2000)

$9.4 Million

$50.3 Million

$2.2 Million

$2.4 Million

EPS (6 Month ended June 30, 2000)

(0.38)

NA

(1.50)

(0.00)


Currently there are about one thousand Chinese companies running e-commerce sites, most of them retailers who are operating independently and on a limited scale. The Chinese government has made a national mandate of promoting the B2B sector, aiming to help the over one million Chinese companies wanting to establish a web presence. Waistech is capturing this opportunity and will create a large-scale e-commerce platform targeting the B2B sector.

Through CEO's Chinese government relationship, access to their membership base, IDC, professional services in addition to hardware and software sales, CEO will enter into the China market without significant competition.

Waistech's Competitive Advantage

Though Waistech has many features that differentiate it from its competitors, the key strategic advantage for Waistech is their relationship with the Chinese government. Waistech will also benefit from being the first ICP provider officially supporteded by the Chinese government, which will enable its ASP, IDC, TSP products and services to be launched without significant competition. Following are some of the other more distinctive advantages, and are therefore emphasized:

Strategic Alliances

Waistech realizes that partnering and building up strategic alliances is the best way to outperform other portals. Waistech International Inc has partnered with government ministries and agencies, and has targeted prospective alliance partners within the domestic and international communities.   

The following is a summary listing of Waistech's strategic partners:

  • Beijing Law Firm (Beijing, China)
  • Beijing Telecom
  • Building Materials Bureau
  • China Clothing Association
  • China Economy Association of Domestic Trade Bureau
  • China Insurance Regulatory Commission
  • China Securities Regulatory Commission
  • China Society of Strategy and Management Research
  • China Telecom
  • Civil Ministry
  • Customs General Administration
  • Finance Committee of State Council
  • Information Center of Agriculture Ministry
  • Information Center of China Commercial Association
  • Information Center of Light Bureau
  • Information Center of the State Council for Restructuring Economic System
  • Information Center of Weave Industry Bureau
  • Johnson Stocks and Master
  • Ministry of Finance of China
  • Ministry of Justice
  • MOFTEC (Ministry of Foreign Trade and Economic Cooperation)
  • People's Bank of China
  • The State Tax Bureau of China
  • Revenue Streams

    Waistech International Inc has ensured revenues that will make it profitable. Revenues will derive from:

  • Data center (IDC) Services / Content Filter
  • Professional Internet Services
  • Computer equipment and software sales and rentals
  • Membership Subscription fees
  • Advertising revenues
  • ChinaE-Online Revenues
  • Marketing Strategies

    Waistech International Inc will initiate alliance marketing, online and offline marketing, and public relations campaigns to promote its services and build its brand name. 

    Online marketing programs include:

            • Search engine registration
            • Strategic linkage and banner advertising
            • Usenet newsgroups
            • Targeted E-mail/Free E-mail services
            • Virtual communities
            • Affiliated marketing
            • Viral Marketing

    Offline marketing strategies include:

            • Advertising in industry magazines and periodicals
            • Attending industry trade shows and seminars
            • Print ads
            • Billboard advertising
            • Public relations campaigns

    Waistech's growth strategy, together with its strong alliances, will allow the Company to expand quickly and achieve explosive market share in a short time period. The Company's strategic alliances will provide Waistech with numerous economic and market penetration benefits.

    In China, marketing through government channels is reliable, and will guarantee the Company wide market coverage and high market penetration rates. Marketing through government channels will vastly reduce Waistech's advertising and promotion expenses, and there will consequently be a quicker return on investment. In addition, increased value-added services and revenues can be offered to the Company's alliance partners without additional capital investment.

    Waistech will initiate different scales of advertising and promotion campaigns through the rollout of its services. Web marketing will be implemented on the World Wide Web, and more traditional, or offline-marketing strategies, will target traditional media to include TV, radio and the printed media. 

    Online Marketing

    The objectives of Waistech's online marketing campaign will include:

    Inviting corporations and people to the site: building up brand awareness

           Promoting activities on the site: encouraging site visitors to view more pages and revisit the site regularly

           Interactivities: encouraging visitors to the site to join the Aristech online community,

           Online trading: doing business online

    Waistech will achieve the above objectives by a number of routes.

     

    Search Engine Registration

    Ranking at the top of search engine is a key strategy to get exposure and generate site traffic. Waistech will register its name with well-known and well-used search engines such as Yahoo.com and altavista.com.

     

    Waistech will take full advantage of the Internet and the use of branding and viral marketing through its on-line extended services. Waistech's goal is to achieve exponential growth of subscribers by aggressively targeting it's marketing to individuals and groups of Chinese business users who can most benefit from their full range of products. By adopting a viral marketing and approach, Waistech can enlist individual users (B2C customers) and business user groups as salespeople to transmit the sales opportunity and sign-up other groups, in an increasing cycle of business customer acquisition.

    Strategic Linkage and Banner Advertising

    Through buttons and banners, Waistech will link itself to partners' sites as well as to other frequently visited sites in the world.

     

    Affiliated Marketing

    This is a revenue-sharing plan that uses the Internet to facilitate partnered selling. When customers click on a banner or button, they follow the link to the originating company's website. If they then complete an online transaction, the referring website receives a commission.

     

    In a recent survey of 47 marketing managers, Forrester Research discovered that affiliated programs are among the most effective traffic-driving techniques.

    Waistech will set up affiliated programs with appropriate targeted websites.

     

    Offline Marketing

     Industry Magazines and Periodicals

    Waistech will regularly advertise in both domestic and international authoritative industry magazines and periodicals, such as Computer World in China, the Company's partner, Business Week, Fortune Magazine, etc.

    Industry Trade Shows and Seminars

    Waistech will frequently attend industry trade shows and seminars to market itself and its products within the business community, and to take the opportunity to develop new and ongoing strategic alliances.

     

    Paper Ads and Billboards

    In China, paper advertising in newspapers and on billboards is still the best way for a company to achieve brand recognition among the mass audience and to acquire corporate and individual members.

    Public Relation Campaigns

    Waistech will initiate public relation campaigns in order to establish the Company's authoritative and high-profile image, and to maintain good relationship with the various levels of government agencies and other strategic partners.

    Political Environment

    Since the Internet is still a fledging industry in China, the Chinese government has adopted a series of favorable polices and measures to accelerate its development. The Ministry Information Industry (MII) recently clarified that the government encourages Chinese language content and the operation of ICPs in China. They have also emphasized that the regulations for ICPs will change when China successfully joins the WTO, indicating that the industry will become more liberalized in the future

    Copyright 2001, Waistech Inc. All Rights Reserved