Northport's business operations are conducted primarily through a Chinese subsidiary, Northport Beigang. The Company has developed a proprietary financial systems platform technology which has numerous applications in China and globally.
---The Company's core business is an e-Commerce website UrMart.net which lists products from suppliers and enrols registered customers on the site. Registered agents introduce the site to qualified supplier firms in exchange for a commission on supplier sales made through the site. Customers are registered through referrals from existing customers. Payments for products are made through UrMart via Global Payments, an online payments system. The site's operations center is located in Beijing and technical support and a service center offices are located in Dalian.
---The site also includes a web gaming component known as Northport Entertainment, which is managed from an operations centre located in Beijing. Two games are now deployed and are available free to users with the capability to upgrade usage for a fee. During the initial phase, there will be 20 servers handling game usage and which have capability to support up to 100,000 users concurrently.
---The Company also operates an online education division, Beijing XinLv Zheng Bao Cheng Education Technology Co. Ltd., which provides online and remote education programs by way of satellite teleconferencing. The business operates under a trade name of Baocheng Education and operates its own facilities in the Beijing area with franchise locations in over 120 separate locations throughout China. Year 2009 revenues were in excess of 100 million Rmb and registered students exceeded 10,000.
---In addition, we own a 35% equity interest in a chain of budget hotels headquartered in Dalian. Riyueming Hotels Co., Ltd. currently operates a total of 4 separate facilities which provide a total of 348 rooms to business travellers. During 2009, the group's facilities averaged a 90% occupancy rate and had total sales of 11.6 million Yuan.
---In June 2010, Northport acquired a series of Chinese patents focused on diagnostic applications and products in health and food ingredient areas. Northport is now establishing a subsidiary corporation, Dalian Beigang Biotech Inc., to be located in Dalian, China which will develop and then commercialize a number of diagnostic products, of which the first such product will be designed to determine the presence or not of the chemical formula commonly called Melamine in food products. The new business is expected to be in commercial operation in 2012.
---The Company's Colorstar subsidiary division is completing development of a digital photo processing application which involves stand alone, digital photo processing kiosks, that allow users to print photos from digital camera chips, cell phone connectors, memory sticks or CD/discs using standard credit or bank cards. The Colorstar platform is capable of providing additional features such as allowing users to pay bills, access the Internet, download iPod music and other functions-all of which provide revenue to Northport. It is Northport's plan to begin commercializing the technology starting in fourth quarter 2010.
