Profile of HC International

This is an updated edition of the original profile which was published in April 2007.

HC International (HCI) is an established player in China's domestic B2B media industry. HCI's primary businesses are: publishing trade catalogues and Yellow Page directories, operating online marketplaces and conducting market research. In its early days, HCI was previously known as both Hui Cong and Sinobnet.

In 2008, HCI's revenues were RMB 314 million (US$46 million) which is a 12% increase over the RMB 279 million (US$38 million) recorded in 2007. About 44% of 2008 revenues came from HCI's trade catalogue and Yellow Page directory business, while the company's online services contributed 37% of the total. The market research and consulting business generated 16% of revenues. The remaining 3% of revenues came from a variety of sources.

HCI was founded in 1992 as a business information provider. HCI's services evolved beyond trade catalogues as the company began to leverage the Internet as a sourcing and trading tool in 2000. HCI now considers itself a provider of marketing solutions for small- and medium-sized Chinese enterprises (SMEs) as well as a business information provider. Today, HCI has offices in 13 cities across China and employs close to 2,300 people.

HC Trade Catalogues cover more than 20 different industries with an emphasis on manufacturing inputs rather than finished goods. HCI also publishes Yellow Page directories and market research reports. Mai-Mai-Tong (www.hc360.com) is HCI's online sourcing platform. In late 2007, the company launched an English-language sourcing platform (www.madeinchina.com) which is not related to www.made-in-china.com, a separate leading online sourcing platform in China.

HCI claims that Mai-Mai-Tong has a database of more than 8.4 million registered users. The website can be used to identify suppliers, purchase materials, issue tender invitations amongst other B2B activities. Through the Mai-Mai-Tong, HCI also publishes industrial procurement guides, and an online version of its HC Trade catalogues and Yellow Page directories. Generally, HCI aims to promote and enable domestic trading opportunities amongst buyers and sellers in China.

In December 2003, HCI was publicly listed on Hong Kong's Growth Enterprises Market (GEM). In May 2006, HCI and NASDAQ-listed Global Sources announced a strategic partnership. Global Sources purchased 10% of HCI for US$9.9 million with an option to increase its stake to 35%. That option expired in June 2007. If exercised Hong Kong law would have required Global Sources to make a general offer for all outstanding HCI shares. In December 2007, Global Sources reversed course and sold its stake in HCI to the private equity arm of IDG.