Techpacific.com's net profit in the first quarter was US$444,034 on turnover of US$1.54 million. The Internet start-up incubator and investor recorded a loss of US$37,000 and no revenue in the same period last year. Some US$1.49 million of the latest quarter's revenue came from placement fees, which the company received for arranging 13 start-up investment transactions and providing corporate finance advisory services to new Internet ventures. However, it might face higher operating costs later this year due to expansion in manpower and facilities to handle the expected increase in the flow of business, it said. It also planned to establish operation units in other Asian markets and to set up a bigger, new incubation centre in Hong Kong. It expects fees from its start-up fund-raising activities will grow substantially for the rest of the year. However, fee income from corporate finance advisory services may fall with increasing allocation of resources to incubation and start-up fund-raising. It expects gains from some equity investments this year. It will split a 2.5 per cent fee for managing HK$250 million of the Government's Applied Research Fund with partner Softbank China Venture Investments.