Continues to Expand Business Presence of Internet Data Centers and Explore Potential Investment Opportunities
HONG KONG, Mar 27, 2018 - (ACN Newswire) - Neo Telemedia Limited ("Neo Telemedia" or the "Company;" stock code: 8167, together with its subsidiaries, the "Group") is pleased to announce its annual results for the year ended 31 December 2017.
Since the Group restructured its business in 2014, it has forged ahead with developing the Internet data center (IDC) business. In 2017, the Group entered into cooperation agreements with various parties to strengthen its industry-leading position. During the year, although competition was keen in the telecommunications industry, in particular the mobile phone sector, the Group managed to record a turnover of approximately HK$1,214,772,000 (2016: HK$2,513,845,000). In the absence of a gain on disposal of HCH Investments Limited recorded last year and the decrease in sales of telecommunications products due to market competition as mentioned above, profit attributable to owners of the Company amounted to approximately HK$40,905,000 and earnings per share were 0.43 HK cents (2016: 2.02 HK cents).
The Group is committed to maintaining healthy and reasonable financial indicators. As at 31 December 2017, the Group had cash and equivalents of HK$164,437,000 and a current ratio at 1.7 times. To reward shareholders for their support, the Board recommended a final dividend of 0.38 HK cents per ordinary share (2016: 0.38 HK cents).
Sales of Telecommunications Products and Services
Bluesea Mobile Group
During the year under review, Guangdong Bluesea Mobile Development Company Limited* and its subsidiaries (collectively referred to as "Bluesea Mobile Group") made a successful bid for the land use rights of a land parcel located at Heshan City, the PRC, for the construction of the "Bluesea Intelligence Valley", which will feature a Big Data enterprise incubation platform for the development of the Big Data business in Hong Kong, Macau and Taiwan. The construction of the Internet data center in Panyu, namely Guangzhou Lotus Mountain Data Center, was completed and has started a trial run in the third quarter. Guangzhou Nowtop Technology Company Limited* ("Guangzhou Nowtop") and its subsidiaries have contributed a turnover of approximately HK$208,100,000 during the year, while Bluesea Mobile Group recorded an aggregate turnover of approximately HK$399,300,000 from trading of telecommunications products, provision of IDC, WIFI, system integration and value-added Internet services and software development.
Million Ace Group
Million Ace Group is mainly engaged in trading of mobile phones, tablets and related devices. Despite keen market competition during the year ended 31 December 2017, Million Ace Group managed to record a turnover of approximately HK$698,600,000 in the year under review.
Internet Finance Platform Business
During the year under review, the Group continued to expand the customer base of its Internet finance platforms operated by Shenzhen Bees Financial Internet Financial Services Co. Ltd.*. The revenue of approximately HK$108,300,000 contributed to the Group represented service or commission income through the operations of these platforms.
Looking ahead, the Group will continue to expand its IDC business. On 6 January 2017, the Group successfully bid for a land parcel in Heshan City, which will be used for the construction of the "Bluesea Intelligence Valley". "Bluesea Intelligence Valley" will feature a Big Data enterprise incubation platform through government guidance and policy support which will operate in the market. On 19 June 2017, the Group has entered into a joint venture cooperation framework agreement (the "Cooperation Framework Agreement") with China National Offshore Oil Information Technology Limited* ("CNOOIT"). Pursuant to the Cooperation Framework Agreement, the Group and CNOOIT have established a joint venture company for the development of an IDC in Huizhou, which is expected to be put into service in 2018.
In addition, the Group will continue to explore potential investment opportunities in IDC, the Internet-of-Things, cloud computing and related businesses. With favorable policies and support from the PRC government towards these fast-growing sectors, the management is optimistic that the Group will regain its 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 invested in the data center of Guangdong Bluesea Mobile Development Co., Ltd., including the Bluesea Intelligence Valley in Jiangmen.
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