Profile of Zhejiang Netsun

Company background

This report is an update of the original profile published by BSG in December 2007.

Zhejiang Netsun is a Hangzhou-based company that develops and operates B2B online sourcing platforms. Its particular focus is vertical industry sites. The company also has a small business focused on enterprise software development.

Netsun maintains offices in Beijing, Shanghai, Guangzhou, Nanjing, Jinan, Chengdu, Shenyang as well as two overseas offices in Seoul and Seattle. The company has over 400 employees on staff.

In addition to the company's corporate website, www.netsun.com, Netsun's vertical industry platforms include:

• ChinaChemNet (Chinese language site)
• ChemNet (English language site)
• ChemNet Korea (Korean language site)
• ChemIndex (English language site)
• China Textile Network (Chinese language site)
• ChinaTexNet (English language site)
• TexWeb (Chinese language site)
• PharmNet (Chinese language site)
• Toocle (English language site)

Some of these sites serve the domestic sourcing industry in China (mainly those with .com.cn in their domain names) and others are English-language platforms that target international buyers. The company also operates one Korean site serving the chemical industry.

In December 2006, Netsun was listed on the Shenzhen Stock Exchange. The company issued 15 million shares at a listing price of RMB 68.10 generating proceeds of approximately US$138 million. Netsun's current market capitalization is US$322 million. Revenues in 2008 were US$16 million, up 35% compared with 2007's US$11 million. Net profit was US$4.6 million in 2008, down 27% over 2007's US$5.9 million.

• Company Background
• Company History - Key Milestones
• Recent Developments
• Key Products and Markets
• Chemical Net
• China Textile Net
• China Pharmaceutical Net
• Toocle
• Major Competitors
• General Merchandise Sourcing Platforms
• Financial Data (as of 6th October 2009)
• Future Developments
• Senior Management
• Contact Information
  • Figure 1: Stock Price Performance of Zhejiang Netsun and Bsg B2b Media Index in The past 12 Months