Octopus Holdings Limited

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Octopus Holdings Limited
Type Joint venture
Founded Hong Kong, (2005)
Headquarters Hong Kong
Key people Prudence Chan, CEO of Octopus Group
Products Octopus card
Website http://www.octopus.com.hk

Octopus Holdings Limited (traditional Chinese: 八達通控股有限公司) is a holding company based in Hong Kong jointly owned by five major transport companies in the city. Its subsidiaries, which are all wholly owned, operate the various functions of the Octopus card in both its commercial and non-commercial usage. In 2006, the company gained international recognition by winning the Chairman's Award of the World Information Technology and Services Alliance's 2006 Global IT Excellence Award for the Octopus card system.[1]

Contents

[edit] Company restructure

Prompted by the business expansion of the Octopus card, Octopus Holdings Limited was formed in 2005 after a company restructure of Octopus card operator Octopus Cards Limited.[2][3] The direct operation of the Octopus card in Hong Kong is an electronic payment system, and as such, it is regulated by the Hong Kong Monetary Authority.[2] The non-commercial businesses of the company, such as the consumer rewards program, consumer market research, and investment holdings, on the other hand, are not subjected to such regulations. The company restructure placed Octopus Cards Limited as a subsidiary of Octopus Holdings Limited, while the non-payment businesses of the company were placed under other subsidiaries, such that its payment businesses are independent of its non-payment businesses. Additionally, Octopus Holdings Limited has also expanded the use of the Octopus card system internationally, operating its businesses outside Hong Kong under its subsidiary, Octopus Knowledge Limited.[2]

[edit] Subsidiaries

There are five wholly owned subsidiaries of Octopus Holdings Limited.

  • Octopus Cards Limited operates the Octopus card in Hong Kong as an electronic payment system.
  • Octopus Rewards Limited operates and develops Octopus Rewards, a consumer rewards programme for Octopus card customers.[2][4]
  • Octopus Knowledge Limited provides international consultancy services for automatic fare collection systems. It in turn owns a subsidiary, Octopus Netherlands Limited, which provides consulting for the introduction of a smart card system in the Netherlands.[2][5]
  • Octopus Connect Limited is responsible for customer relationship management and conducts consumer research services.[2]
  • Octopus Investments Limited is an investment holding company.[2]

[edit] Shareholding

As of 2007, Octopus Holdings Limited is a joint-venture business owned by five transport companies in Hong Kong; 54.4% by the MTR Corporation, 22.1% by the Kowloon-Canton Railway Corporation, 12.4% by Kowloon Motor Bus, 5% by Citybus, and 3.1% by New World First Bus.[6] Since the Government of Hong Kong owns 76.54% of the MTR Corporation (as of 2005-12-31)[7] and wholly owns the Kowloon-Canton Railway Corporation,[8] it is the biggest effective shareholder of Octopus Holdings Limited.

[edit] References

  1. ^ WITSA Announces 2006 Global IT Excellence Award Winners (DOC). World Information Technology and Services Alliance (2006-05-04). Retrieved on 2007-07-12.
  2. ^ a b c d e f g Our Company. Octopus Holdings Limited. Retrieved on 2007-07-12.
  3. ^ Operation of the Octopus Card in Hong Kong (PDF). Hong Kong SAR Legislative Council Secretariat. Retrieved on 2007-07-12.
  4. ^ Octopus Rewards Limited official website. Octopus Rewards Limited. Retrieved on 2007-07-12.
  5. ^ Smart card technology heads to Holland. Hong Kong Trade Development Council (2003-07-21). Retrieved on 2007-07-12.
  6. ^ The Joint Venture of Five Major Transport Operators. Octopus Holdings Limited. Retrieved on 2007-07-12.
  7. ^ Investors' Information. MTR Corporation. Retrieved on 2007-07-12.
  8. ^ History. Kowloon-Canton Railway Corporation. Retrieved on 2007-07-12.

[edit] External links