Neo Telemedia Announces 2017 Interim Results
August 11, 2017 --
Gross Profit Improves by 31.5% to HK$ 78.0 Million
HONG KONG, Aug 11, 2017 - (ACN Newswire) - Neo Telemedia Limited ('Neo Telemedia' or the 'Company;' stock code: 8167, together with its subsidiaries, the 'Group') has announced its unaudited interim results for the six months ended 30 June 2017.
During the period under review, the Group recorded a turnover of approximately HK$291,665,000, mainly due to the keen competition in both the telecommunications and Internet finance industry as well as not launching any new mobile phones and tablet models. Gross profit improved by 31.5% to HK$78,021,000 compared with same period last year. Profit attributable to owners of the Company was approximately HK$11,719,000, while basic earnings per share were HK 0.12 cents.
On a quarterly basis, revenue was HK$143,958,000 for the three months ended 30 June 2017. Gross profit and profit attributable to owners of the Company surged 37.6% and four times to HK$52,386,000 and HK$20,327,000 respectively, compared to the corresponding period of 2016.
The Group is committed to maintaining the financial indicators at a healthy and reasonable level. As at 30 June 2017, the Group had cash and equivalents of approximately HK$177,280,000 and a current ratio at approximately 3.1 times.
Sale of telecommunication products and services
Bluesea Mobile Group
During the period under review, Guangdong Bluesea Mobile Development Company Limited and its subsidiaries (collectively referred to as 'Bluesea Mobile Group') had made a successful bid for the land use rights of a parcel of land located at Heshan City, the PRC, for the construction of the 'Bluesea Big Data Industrial Park' which will feature a big data enterprise incubation platform for the development of the big data industry in Hong Kong, Macau and Taiwan. With a turnover of approximately HK$95.0 million contributed by Guangzhou Nowtop Technology Company Limited and its subsidiary, Bluesea Mobile Group recorded an aggregate turnover of approximately HK$153.2 million for the period under review, representing revenue from trading of telecommunications products and provision of Internet Data Center ('IDC'), WiFi and value-added Internet services.
Million Ace Group
Million Ace Limited and its subsidiaries (collectively referred to as 'Million Ace Group') are mainly engaged in trading of mobile phones, tablets and the relevant devices. Despite keen market competition and the fact that no new mobile phones and tablet models were launched during the six months ended 30 June 2017, Million Ace Group managed to record a turnover of approximately HK$92.3 million in the period under review.
Internet finance platform business
During the period under review, the Group continued to expand the customer base of its Internet finance platforms operated by Guangdong Avatar Wealth Investment Management Company Limited and Shenzhen Bees Financial Internet Financial Services Co. Ltd. The revenue of approximately HK$43.3 million contributed to the Group represented services or commission income through the operations of these platforms.
Looking ahead, the Group will continue to expand its IDC business. The construction of the IDC in Panyu will be completed and will start a trial run in the second half of the year. The Group expects more revenue will be contributed from this newly operated IDC in 2017.
In addition, the land parcel in Heshan for which the Group made a successful bid earlier this year is to be used for the construction of the 'Bluesea Big Data Industrial Park.' It will feature a big data enterprise incubation platform through government guidance, market operation and policy support.
Moreover, the Group will continue to explore potential investment opportunities in IDC, cloud computing and related businesses. With favorable government policies in place and support from the PRC government towards these fast-growing sectors set to continue, the management is optimistic that the Group will regain its competitive strength and be able to reward shareholders with better results in the foreseeable future.
About Neo Telemedia Limited (stock code: 8167)
Neo Telemedia Limited and its subsidiaries (collectively, the 'Group') is a telecommunications group focusing on the Internet and big data sectors, subsequent to its recent corporate restructuring. The Group has been included as a constituent stock in the MSCI China Small Cap Index since November 2015. Its wholly-owned subsidiary, Guangdong Bluesea Technology Company Limited, has partnered with Shangdong Inspur Group to form a joint venture, Guangdong Bluesea Inspur Cloud Computing Company Limited to establish a large cloud computing centre in Southern China. In early 2015, the Group signed several agreements to explore various opportunities in WiFi access services, application of cloud computing in the PRC. Additionally, to capture the opportunities arising in the Internet financing market in the PRC, the Group has officially launched its internet finance business platform under its subsidiary, Avatar Wealth in May 2015. The Group has also launched another internet finance business platform with Bees Financial. Shenzhou Aerospace Manufacturing Technology (Guangdong) Institute, which was jointly established by the Group, Shenzhou Aerospace Software Limited and Chancheng District People's Government of Foshan, was registered as a non-profit organization at the Department of Civil Affairs of Guangdong Province on 23 October 2015. At the end of 2015, the Group completed a public offer and raised approximately HK$1.1 billion to be invested in the data center of Guangdong Bluesea Mobile Development Co., Ltd., including the Zhuxishugu project in Jiangmen.
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