[ As at 3 August 2009 ]





DetailsCross References
Effective date:1 June 2001Paragraphs 9.03 and 9.16
Revision date:3 August 2009


1.1Announcements made by listed issuers must at all times comply with the continuing disclosure requirements as set out in Chapter 9 of the Listing Requirements. Under this Chapter, listed issuers must make timely, adequate and accurate disclosure of material information to the investing public.
1.2Accordingly, pursuant to paragraphs 9.03 and 9.16 of the Listing Requirements, where listed issuers announces an internet-related business or e-commerce activity including any arrangement, transaction or venture or proposed arrangement, transaction or venture in respect of the same ( collectively referred to as "Venture"), adequate and accurate disclosure of all material information must be made.
​​1.3In this connection, this Practice Note sets out the minimum information that should be included, where applicable, in the announcements made in respect of the Ventures. The requirements provided in this Practice Note are in addition to the requirements of Chapter 10 of the Listing Requirements, where applicable.
1.4Nothing in this Practice Note restricts the generality of paragraphs 9.03 and 9.16 of the Listing Requirements.
2.0Details of the announcement
​​2.1A listed issuer must include the following information, where applicable, in an announcement on the Ventures:
(a)the details of the relevant business model, including -
​​(i)a detailed description of the nature of the internet-related business/e-commerce activity ventured into by the listed issuer; e.g. service provider, infrastructure provider, content provider, software applications service provider or retailer;
(ii)the source and nature of revenue to be derived from the Venture; i.e. fees, commission, advertisements, subscriptions etc.;
(iii)the target market of the products and/or services offered, including an estimated size of the market; 
(iv)strategic alliances or partnerships, if any, including the background, expertise and contribution of such ally or partner to the Venture; and
(v)the assumptions and bases in developing the business model of the Venture;
(b)the details of the stage of development of the Venture and if already operating, details on the existing level of operations, including -
(i) the track record of the Venture, i.e. the number of years in operation and the revenue generated;
(ii)the current stage of development of the Venture, i.e. conceptual, developmental etc.;
(iii)the outcome of any feasibility studies undertaken with respect to the Venture and the name(s) of the consultants conducting the same, if any; and
(iv)the expected period of time for the Venture to become operational;
(c)a description of the risks and rewards involved in undertaking the Venture, including -
​​(i)in the event the internet-related business or e-commerce activity is a result of an acquisition of an interest in a corporation, an explanation of the bases and assumptions used in deriving the purchase consideration and whether the valuation has been reviewed by an independent party;
​​(ii)the financial impact of the Venture, including the period within which the Venture is expected to generate revenue and profit;
(iii)the capital commitments and source of financing to undertake the Venture until such time when operations commence and revenue is generated;
(iv)the financial and business risks with respect to the Venture; and
​​(v)the business prospects of the Venture, including the key assumptions; and
(d)the details of the technical capability and competence in the Venture, including the key personnel or technical experts or consultants vital to the Venture, including their qualifications and experience.
3.0Disclosure of progress
3.1Subsequent to the initial announcement, a listed issuer undertaking the Venture must also announce to the Exchange the status of the progress of the Venture, as follows:
​​(a)simultaneously with the listed issuer's quarterly report pursuant to paragraph 9.22 of the Listing Requirements and in any event not later than 2 months after the end of each quarter of a financial year; or
(b)upon the occurrence of a material event or development in relation to the said Venture,
whichever is the earlier.
​​3.2The obligation imposed pursuant to paragraph 3.1 above will no longer be applicable to a listed issuer undertaking the Venture where -
​​​(a)the Venture is aborted; or

the operations commence and revenue is generated.

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