Branding China Announces 2015 Interim Results

Monday, 10 August 2015, 19:57 HKT/SGT

Gross profit margin increased by approximately 4.84 percentage points to 25.63%;
Self Media Matrix being Optimized Continuously, Proportion of Digital Business Increased

HONG KONG, Aug 10, 2015 - (ACN Newswire) - Branding China Group Limited (HKEx: 8219) is pleased to announce the interim results of the Company for the six months ended 30 June 2015.

During the past six months, driven by the growth of digital marketing business, and based on the transformation of traditional businesses, the Company adhered to and steadily carried out the strategic digital and wireless layout and the businesses developed steadily and healthily with overall revenue achieving year-on-year (YOY) increase as compared with the corresponding period of last year. For the six months ended 30 June 2015, the Group presented prudent interim performance, and the overall revenue increased to RMB148,011,571, representing an YOY increase of approximately 1.74%.

To enhance efficiency, the Company simplified internal personnel to reduce the labour cost. In the meantime, the Company advanced the digital and wireless transformation; and reduced the part of traditional media business to reduce the media operating cost and purchasing cost, as a result of which, the overall cost decreased. The gross profit increased to RMB37,932,350, representing a YOY increase of 25.41%; and the gross profit margin increased to approximately 25.63%, representing an increase of approximately 4.84 percentage points as compared with the corresponding period of last year. The net assets increased by approximately 3.50% to approximately RMB409,608,384 as compared to that as at 31 December 2014. Earnings per share of the Company for the Review Period were approximately RMB5.57 cents.

Proportion of Digital Businesses Increased
Significant Rebound in the Second Quarter as Compared with the First Quarter
With the rapid rise of new media such as Internet, digital marketing has become a major media channel favoured by the public. The Company adhered to and steadily carried out the digital and wireless transformation. During the Review Period, the income generated from digital media expressed as a percentage of the total revenue of core businesses amounted to approximately 62.63% as compared with the percentage of 57.20% for the twelve months ended 31 December 2014, which indicates that the transformation has been growing steadily.

The performance of the Company in the second quarter achieved a substantial growth as compared with that of the first quarter. The revenue for the second quarter increased by approximately 36.92% as compared with that of the first quarter, the gross profit increased by approximately 101.24% and net profit significantly increased by approximately 476% as compared with those of the first quarter. Both of the gross profit margin and net profit margin for the second quarter increased by approximately 10 percentage points as compared with those of the first quarter.

Insisting on Developing New Customer Base and Continuously Optimizing the Self Media Matrix
With the rapid rise of new media such as Internet, the media industry demonstrates an image of overall prosperity and a partially downward trend. In 2014, the market share of Internet and mobile value-added services not only accounted for more than the aggregate market share of the traditional media, leading ahead of 10.3%, but the gap was continuously expanding as well. The traditional media faced greater challenges. Meanwhile, revenue from Internet advertising and online games still maintained a higher growth rate despite a slowdown in the growth rate.

Upon studying the direction of the media industry development, the Company intensified the transformation to strengthen the expansion in segments and to seek a breakthrough on the new digital media development. During the Review Period, the Company succeeded in developing new client base in automobile, car rental and online game industries. Meanwhile, in line with the clients' trade mix, the Company continued to proceed with the optimal deployment of the self media matrix on a systematic manner. On one hand, there was a reduction of the part of traditional media business and on the other hand, the Company focused on providing new marketing communications model to the customers by continuously reinforcing the building of information and data exchange in relation to the mobile Internet business with platforms, expanding the wireless media resources and enhancing the full service solutions. In particular, targeting customers from the automotive industry, the existing self media matrix has covered more than 10 WeChat public platforms comprising the car purchase, assessment, automobile insurance and wealth management with nearly 5 million fans. At the same time, the Company is also working with a famous Auto App operator to implement the cooperation plan for the year.

Exploring the Multi-Field and Cross-Sector Positioning, Looking forward to a Prosperous Future
Looking forward, under the transformation background of "Internet+", in addition to accelerating the digitalization process, the Company will actively explore the cross-sector positioning in fields such as games and online consumption, extend the value chain of the industry, and create new opportunities, so as to seek a breakthrough in the integration. Meanwhile, on the basis of preserving the experience and strengths of the traditional media industry, the Company will expand the new business model with enhanced digitalization and enlarged platform through continuously strengthening the construction of wireless media platform and upgrading services.

Mr. Fang Bin, Executive Director, Chairman and General Manager of the Company, believes that with the intensifying market competition and the significant impact brought by the digital technologies, the Company will continue to develop and grow into a new digital media Company through conducting market expansion for the existing businesses, continuing the transformation, upgrading the standard of customer services and innovating the marketing customer service.

Topic: Press release summary Sectors: Daily Finance
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