About Palmpay China Group
The Group is principally engaged in the provision of mobile payment gateway services in the PRC. The Group is authorized by China Unicom Limited (中國聯通股份有限公司) (“China Unicom 中國聯通”), on an exclusive basis, for the provision of the Group’s mobile payment gateway system to the subscribers of China Unicom (中國聯通) in 23 major provinces / municipal cities in the PRC, through which a variety of virtual and service products, including the IP Cards of China Unicom (中國聯通), virtual game cards of Baidu (百度) and Shanda (盛大), accident insurance products of PICC Life Insurance Company Limited (中國人民人壽保險股份有限公司) could be purchased by the subscribers of China Unicom (中國聯通) through mobile phones.

The business of mobile payment gateway has developed significantly during the year. As at 1 April 2007, such business operated in four major provinces/municipal cities in the PRC and extended to 12 major provinces/municipal cities in the PRC as at 31 March 2008. The Group commenced the trial launch of the provision of mobile payment gateway services for accident insurance products of PICC Life Insurance Company Limited (中國人民人壽保險股份有限公司) in October 2007. As at 31 March 2008 trial launch of such service has commences in Shanghai, Liaoning, Guangxi and Jilin and turnover of approximately RMB1,500,000 was recorded for the first quarter of 2008. The Group is the first operator to provide mobile payment gateway for the sale of accident insurance products in the PRC.