Sun New Media Inc., formerly SE Global Equities Corp., incorporated in 1972, focuses on its China-based, business-to-business (B2B) interactive marketing, channel management and online distribution business in specific industry verticals. The Company is divided into two principal divisions, the Transactional Services Division and the Information Services Division. In September 2005, the Company acquired 100% of the issued and outstanding share capital of Sun New Media Group Limited. The Transactional Services Division The Transactional Services Division works to enhance distribution systems by bringing buyers and sellers together on integrated electronic platforms. The Company serves two verticals in China, beverages and hand-held electronics. Through this division, the Company develops and manages back-end systems for distribution companies in the beverage and hand-held electronics industries in Central China in exchange for management fees equivalent to between 5% and 12% of the gross revenue of its distributor clients. Among the services provided by the Transactional Services Division are an Internet-based ordering and purchasing system; integrated financial control systems that link wholesaler, sub-wholesaler and retailer accounts; sales support systems for expanding distribution network reach, and below-the-line marketing support programs designed to enhance communication across distribution networks. The Company's suite of services can be deployed in multiple verticals through customizing its core product offerings to meet the industry-specific needs of distributors. Information Services Division Sun New Media's Information Services division owns a number of technologies that it markets to business, government and media clients across China. The key service is the division's DJVU scanning and compression technology. The service is a digital archiving and publishing service. The Company is developing a business information destination portal that will combine paid and advertising-supported services, including database access, media and industry intelligence, and paid media services. Among its key information services are a suite of technologies that it markets to business, government and media clients across China, including digital archiving and publishing service based around the DJVU compression technology. The Company maintains a number of investments in consumer media and marketing companies. As of March 31, 2006, it owned a 30% interest in Global Woman Multimedia, Ltd., a Web and television production company that targets professional women in Mainland China. Also, it had a 16% interest in Sun Business Network, a Singapore-based lifestyle and business publishing company that distributes 13 monthly and weekly magazines and newspapers in China and Southeast Asia. In addition, the Company owns the digital version of China Business Post, a national advertising sales and marketing operation under Sun Global Marketing Network, and six consumer lifestyle magazines published in Singapore.