Be indifferent to weal or woe. That is Justin Tang's consistent approach of doing business.

"Yes, that is my usual way of dealing with either bright or bleak business circumstances. For me, wealth is just one side product of a great creation. I enjoy more the process of creating something, than the final result, especially the money," Tang, as chairman and chief executive officer of eLong Inc - China's second-largest online travel service provider after Ctrip.com - told China Business Weekly last week.

Whether having good fortune or problems in business, Tang always keeps a cool head.

Three years ago, when the Internet-related business started to nose-dive, Tang said he had no fears for his own business, and he certainly did not panic.

Now even if his company has, under his leadership, successfully landed on the high-tech-laden NASDAQ stock market in New York, managing a decent performance, he is still acting as normal, showing no obvious excitement or ardour.

"I do not feel any difference at all before or after the listing. I just act and feel the same way," Tang said.

And this is how Tang says he deals with business and people.

Instead of launching promotion campaigns and talking big about his business plans, Tang just drives his business forward step by step and keeps a low profile.

Rather than beating around the bush, Justin Tang always adopts a straight approach in his dealings with reporters.

About three months ago, Tang gave a short and blunt answer to questions from the media about eLong's possible listing project.

"We do not want to make any comment regarding issues relating to initial public offering (IPO) today," he said at that time.

Now Tang has led his firm to the US stock market, silently but steadily.

Strategic move

eLong made its IPO on the NASDAQ market late in October.

In the IPO, the firm raised US$62.1 million after pricing and has offered 4.6 million American Depositary Receipts (ADRs), each representing two common shares, to the public.

Before the IPO, eLong made another bold move by selling 30 per cent of its stake to IAC/InterActiveCorp, the world's leading multi-brand interactive commerce company.

Why did Tang choose to co-operate with IAC rather than going public directly?

Many outsiders were confused.

Now people are beginning to understand: It was actually a strategic move.

"Why did we not seek direct listing at that time. It was a way for us to distinguish ourselves from Ctrip.com, our major arch-rival," Tang said.

He said there was an obvious gap between eLong and Ctrip.

"It is true that they are the market leader and we are the runner-up. If we just take a conventional approach, like listing overseas, which is what Ctrip did late last year, it will be very hard for us to catch up with them, let alone surpass them.

"By joining hands with IAC, we are not alone."

The two companies hammered out a landmark deal earlier last July, under which IAC invested US$60 million for the 30-per-cent stake in eLong.

"By resorting totally to our own strength, it is possible to achieve further development and get a bigger market share. But by co-operating with stronger overseas counterparts, such as ICA, it will be much quicker and easier for us to accelerate our growth speed," Tang said.

eLong can also gain more advanced technology from IAC.

More importantly, the co-operation will help eLong tap more of the international business travel market.

So far, the bulk of eLong's business is mainly focused in China, and overseas-bound business accounts for just 10 to 20 per cent of the firm's overall turnover.

To buy or not?

Another very important reason for eLong to bring IAC on board was to gain more control of the company after listing.

After eLong's IPO, IAC's share dropped to 25 per cent. The firm's current management team, fund investors and other investors hold equal shares of the remaining 75 per cent.

"Such a shareholding structure means we are less affected by short-term trading, so we can maintain long-term growth," Tang said.

As part of the transaction, IAC also acquired warrants, which, if exercised within 30 working days after eLong's IPO, will increase IAC's stake to 51 per cent.

Tang was tight lipped last week over latest development as to whether IAC will exercise its warrants or not.

"IAC has proved itself to be a supporting shareholder, and has played a positive role in eLong's business expansion. But it is still early to comment about exercising warrants," he said.

Tang said that if IAC does do so by December 16, eLong will be even less exposed to short-run trading.

Personal role

Such a well-designed strategic move is a result of careful and serious consideration.

Tang released that eLong would have to list in June, but he withdrew the application at the last moment.

In fact, he always thinks twice before acting.

"I belong to those who will figure out a clear method before acting," he said.

The Internet business CEO admitted the route was mainly his own design.

"If it wasn't for me, eLong may not have adopted such a strategy. What is fortunate is that consequence of the move was quite positive."

eLong's listing coincided with the US presidential election late in October, when almost every aspect of the US economy faced some degree of uncertainty.

"The market circumstances at that time were not good, but I have never been worried about our listing prospects," Tang said.

"Simply going public is not a big deal for us. If we want to get listed, we can choose any time we like," Tang asserted.

Tang's self-confidence comes from his experience with investment banks in Wall Street.

Prior to founding eLong.com, Tang was vice-president of Oscar Gruss & Son, a New York-based investment banking firm.

He has also worked for Brookehill Equities and Merrill Lynch, and has seven years' experience in venture investment and the financial service industry.

"My experience and background within the financial segment do benefit, to a large extent, the development of eLong. But this is only part of the story. The quality of our service and products has the decisive role in determining whether we can embrace market success," he said.

Quality products, the right strategy and his personal contribution have guaranteed a smooth road for eLong.

Before eLong's IPO, he told reporters: "We at eLong do not lack money. If I need money, I just make several phone calls and I can find money from venture capitalists with whom I am familiar and who also know me very well."

Tang is certainly confident about his ability to finance his business outside the stock market.

Tiger Technology Fund and Blueridge Capital injected last year US$150 million into the dotcom firm.

"We have plenty of cash in hand, we are not short of money at all."

With greater funds, Tang is starting to think about expanding the business by buying a tourism service business, for instance, an air ticket agency.

"We do not exclude the possibility of doing mergers and acquisitions. We are considering that option," he said.

But Tang was careful to point out that there was no intention of using investors' money to pursue his own dreams about in business.

"I have no special preference in terms of what business I would like to dabble in. And I will be responsible for money from investors and shareholders, and the returns."

In Tang's eyes, the online travel business has a bright market prospect in China, and he is crazy about driving the business further forward.

"We, together with Ctrip, account for less than 5 per cent of the market share of the overall travel distribution business. So Internet-based travel service distributors have plenty of room for further development," he said.

"The market potential is quite exciting. And I personally am very excited about that."

(Business Weekly 12/08/2004 page27)