Methods and system of conducting business-to-business operations by registered sellers and buyers using an internet accessible platform

1. A method for using an internet accessible computer system to conduct business to business operations among a plurality of buyer companies and a plurality of seller companies, wherein the internet accessible computer system has at least one computer server connected to the internet, comprising the steps of:

(a) registering each of the plurality of seller companies with the internet accessible computer system through the at least one computer server, wherein each of the registered seller companies sells goods to a corresponding one of the plurality of buyer companies, and the corresponding one buyer company makes payment for the goods sold by that registered seller company;

(b) registering each of the plurality of buyer companies with the internet accessible computer system through the at least one computer server, wherein based on the registration request by a buyer company the computer system checks whether there is a corresponding registered seller company that exists for the buyer company, if there is no corresponding registered seller company that exists for the buyer company, a notification of failing to register is generated and sent to the buyer company by the computer system, and if there is a corresponding registered seller company that exists for the buyer company, the internet accessible computer system proceeds with registration of the buyer company;

(c) issuing by a business entity in control of the internet accessible computer system through the at least one computer server at the beginning of a first predetermined time period t 1 , time T 0 , a number N cs convertible preference shares to the registered seller companies, wherein the N cs convertible shares are convertible to N rs ordinary shares of the business entity over a period of time T counting from time T 0 according to the following formula:

N cs =( PAE×L )/ SP 0 ,

wherein the ordinary shares of the business entity are publicly traded in a capital market, the period of time T is divided into a predetermined number L of the first predetermined time period t 1 such that T=L×t 1 , PAE is the projected annual after-tax earning that the registered seller companies would make from the sales of the goods to the registered buyer companies over the period of time T, and SP 0 is the stock price per share for the ordinary shares of the business entity averaged over a second predetermined time period t 2 around time T 0 , and wherein the first predetermined time period t 1 is one of a year, a fiscal year, a half year, a half fiscal year, a quarter, a fiscal quarter, a month, and a fiscal month;

(d) receiving cash or cash equivalents payments by the business entity through the at least one computer server from the registered buyer companies, wherein the cash or cash equivalents payment are made by the registered buyer companies for goods sold by the corresponding registered seller companies to the registered buyer companies, respectively;

(e) aggregating in every first predetermined time period t 1 over the period of time T by the business entity through the at least one computer server all the cash or cash equivalents payments received from the registered buyer companies into a first amount, {M 1i , i=1, . . . , L};

(f) making cash or cash equivalents payments by the business entity through the at least one computer server to the registered seller companies aggregated in a second amount, {M 2i , i=1, . . . , L}, in every first predetermined time period t 1 over the period of time T, wherein M 1i and M 2i satisfy the following relationships:

M 2i <M 1i , and

( M 1i −M 2i )×(1 −R tax )= E i ,

wherein E i is the after-tax earning that the registered seller companies would make from the sales of the goods to the corresponding registered buyer companies over the ith first predetermined time period t 1 ; and

(g) converting a number of N cs convertible preference shares issued to the registered seller companies by the business entity through the at least one computer server to a number of ordinary shares of the business entity over the period of time T no greater than a maximum number N rs , which is determined by the following formula:

N rs =Σ L i=1 N cs ( i )×α i ,

where {α i } satisfy the condition of Σ L i=1 α i ≦1.

2. The method of claim 1 , further comprising the steps of calculating by the at least one computer server the earning growth, ΔE i , of the ith first predetermined time period t 1 from the immediate first predetermined time period t 1 , the (i−1)th first predetermined time period t 1 , by the following formula:

Δ E i =E i −E i−1 ; and

completing the issuance and delivery of N i rs ordinary shares of the business entity at the ith first predetermined time period t 1 to the registered seller companies by the business entity through the at least one computer server according to a function N i rs (ΔE i ,SP i ) that satisfies the following conditions:

∂ N i rs (Δ E i ,SP i )/∂Δ E i ≧0, and

∂ N i rs (Δ E i ,SP i )/∂ SP i ≦0,

wherein SP i is the market stock price per share for the ordinary shares of the business entity averaged over a predetermined time period around time of the ith first predetermined time period t 1 , and N i rs is the total number of ordinary shares of the business entity converted at the ith first predetermined time period t 1 by the registered seller companies.

3. The method of claim 2 , wherein N i rs (ΔE i , SP i ) is in the form of

N i rs (Δ E i ,SP i )= C 0 [Σ i k=1 ΔE k /SP i ],

wherein C 0 is a predetermined constant.

4. The method of claim 3 , wherein the number N i rs of convertible preference shares that is converted and delivered to the registered seller companies for the ith first predetermined time period t 1 is determined by the following relationship:

N i rs =Min( C 0 [Σ i k=1 ΔE k /SP i ], Σ i k=1 N cs ( k )×α i+1−k ).

5. The method of claim 4 , wherein no number N cs of convertible preference shares is issued to the registered seller companies for the ith first predetermined time period t i if ΔE i is smaller than zero.

6. The method of claim 4 , wherein no number N i rs of convertible preference shares is converted to ordinary shares of the business entity for the ith first predetermined time period t 1 by the registered seller companies if E i is below a predetermined threshold.

7. The method of claim 6 , wherein the rights and interests to the not converted N0 i cs number of ordinary shares of the business entity for the ith first predetermined time period t 1 by the registered seller companies, which satisfies the following relationship:

N 0 i cs =Σ i k=1 N cs ( k )×α i+1−k −C 0 [Σ i k=1 ΔE k /SP i ],

are forfeited by the registered seller companies.

8. The method of claim 4 , wherein the not converted N0 i cs number of ordinary shares of the business entity for the ith first predetermined time period t 1 by the registered seller companies is vested in a second business entity.

9. The method of claim 8 , wherein the second business entity is an intermediary between the business entity and the registered seller companies.

10. The method of claim 8 , wherein the relationship of the second business entity and the business entity is defined by a first agreement, and the relationship of the second business entity and the registered seller companies is defined by a second agreement that has terms different than that of the first agreement.