ChinaCache CEO: There are misunderstandings about Chinese concept stocks

Updated: 2011-09-14 11:43

By Qiang Xiaoji (chinadaily.com.cn)

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W: CDN is our core business, so we aim to build a global content delivering network in the future. With the fast development of the Internet, new applications emerge every day. The development of CDN must adapt to the requirement of new network, new applications and other needs of our clients. It should be able to support cross-regional, cross-network, cross-content and cross-terminal delivery. Now mobile terminals have been invented, TVs are connected to the Internet and in the future even home appliances will be connected to the Internet. They all need the support of CDN technology. But now we mainly provide basic CDN solutions. We have invested in research and development. We have also invested in and taken over some companies in order to provide value-added services to our different clients, such as video site runners, e-commerce providers, portals, and SNS application providers. This will help them provide their services more efficiently with lower costs.

H: The 12th Five-Year Plan claims to support China’s big and medium-sized enterprises with international brands and competitiveness to implement the "going out" strategy of opening up. How is ChinaCache’s development overseas?

W: We set up the North America branch in 2007. Our overseas business developed very fast in the past four years. Not only in North America, we have also set up CDN nodes in Europe and Middle East. Our companies’ development in Asia is even faster. We have just announced cooperation with Telkom Indonesia to provide CDN solutions in Indonesia. We also started building CDN nodes in South Korea, Japan, Hong Kong, Taiwan, Singapore and Philippines. We have stepped on most parts of the world except Africa and South America, which will soon be developed.

H: I read a piece of news this morning that ChinaCache and Innovation Works reached an agreement to establish strategic relationship. Can you tell us in what ways the cooperation will be carried out?

W: We cooperated with (Li) Kaifu as early as when he was still at Google. Google is also one of our important clients. In the past two years since Kaifu left Google and set up his own venture company Innovation Works, many small companies that Innovation Works invested in have become our clients, supported by our services. The reason we want to invest in Innovation Works is that they are investing in China’s future applications on the Internet and mobile Internet. These companies will become ChinaCache’s important clients in the future. Many new Internet companies will emerge from the projects that Innovation Works invest in. Injecting fund into Innovation Works is one thing. More importantly, we wish we bring the experience and services to the start-up companies in order to help them grow quickly and become the next Tencent and Baidu.

H: When you decided to invest in Innovation Works, was it because you favored certain projects cultivated by Innovation Works or the platform itself?

W: What I most appreciate is the team at Innovation Works. Kaifu, in the past two year, although there were some back and forth, established a very good investment team and invested in a few very good companies. I can see their unique understanding about the future development of the Internet. So I think by investing in his company, we will have a better understanding of the future development and new business of China’s Internet.

H: Thank you for joining me for this interview. Wish ChinaCache have a brilliant future.

W: Thank you. Thank China Daily for giving me the opportunity. Thanks, everyone.

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