Proactive Technology Holdings, a computer-telephone company, has formed a joint venture with Taiwan technology conglomerate Pacific Group to expand its business activities on the island. Proactive, which is listed on the Growth Enterprise Market, plans to invest NT$6 million (about HK$1.42 million) in the venture for a 60 per cent stake. The venture - Proactive Technology (Taiwan) - will include the company's existing operations in the country. The remaining 40 per cent of the venture will be held by Pacific Electronic Technology, an investment arm of Taipei-listed Pacific Electric Wire & Cable, and two of its executives, Chris Lee and Richard Zi. Yesterday, Proactive said its losses narrowed to HK$2.75 million in the three months to March 31 from HK$7.44 million a year earlier. While Taiwan contributed about 11 per cent of its revenue last year, Hong Kong remains Proactive's biggest market, contributing more than 80 per cent to this year's first quarter. 'This deal will help us increase our presence in Taiwan and we have targeted an increase in the amount of business we do in Taiwan,' said Proactive general manager Vincent Lai. Mr Lai said it would help address the imbalance between revenue contributions from Hong Kong and its foreign markets. For the first quarter, Proactive's turnover increased 27 per cent to HK$13.65 million. The company also has HK$29 million in cash equivalents and 'more than HK$10 million in receivables', Mr Lai said. It also has 'more than HK$10 million in orders that will be filled in the second quarter', he added. The firm plans to expand product offerings with new software allowing interconnection between telephone networks and Internet applications.