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| Revenue Increased in Interim Results; Focus on Diversified Business Development |
HONG KONG, Sept 4, 2018 - (ACN Newswire) - Moody Technology Holdings Limited (Formerly known as Wang Tai Holdings Limited) (the "Company" and together with its subsidiaries, the "Group", stock code: 1400.HK) formally starts to develop businesses under the new company name and now focuses on the optimization of business structure. The Group recently announced its interim results. Revenue increased to approximately RMB134.1 million for the six months ended 30 June 2018, representing an increase of 1.13%, as compared with revenue of approximately RMB132.6 million for the six months ended 30 June 2017. Gross profit for the six months ended 30 June 2018 was approximately RMB2.7 million, compared to a gross loss of RMB6.9 million for the corresponding period in 2017. Gross profit margin for the six months ended 30 June 2018 was 2.01%. The Company achieved a turnaround from gross loss to gross profit.
Apart from its well-established textile business and rapidly growing international trading business, the Company is proactively developing driving training business and has signed a non-legally binding memorandum of understanding, planning to purchase the entire share capital of Guizhou Shunli Ruitong Car Driving School Company Limited)("Shunli Ruitong") in order to provide driving training programme and second subject driving test centre in Guiyang, Guizhou Province. In the future, on the one hand, the Company plans to develop internet technology business through building an internet platform serving the needs arising from the driving training industry as well as achieving the integration of driving training and internet technology. On the other hand, the Company plans to establish a subsidiary to conduct blockchain business. By application of blockchain technology, it aims at submitting the candidates' test information and onsite video simultaneously, which is expected to smooth out some of the long existing problems of the industry and avoid cheating in the test.
Nowadays, the auto industry of China enjoys a flourishing development as the number of car owners is increasing year by year, driving the rapid growth of the driving training industry. Take the A Shares listed company in this industry, Eastern Pioneer (603377), which recorded over 50% gross profit margin, as an example, the Company thinks the profit margin of this industry is high and the cash flow is stable, thus it expects bright prospects for the industry. Different from small-scale driving schools in this industry, Guizhou Shunli Ruitong, with the support of local policies, has exam locations equipped with qualified facilities. Therefore, its diversified revenue resources include both tuition fees and examination fees. Compared to Shunli Ruitong, other surrounding small-scale driving training organizations, which do not have qualified driving exam locations, need to rent Shunli Ruitong's locations to conduct mock trainings before exams, contributing to the business advantages of Shunli Ruitong.
In light of the above, the Company is actively looking for driving training organizations in other regions. With the intention to acquire more companies of this type, the Company strives for the integration of driving training business in order to build a professional, trust-worthy and reputable business segment.
The management team said "In 2018, change of directors brings new force to the Group to move forward and resolve the current and foreseeable challenges and problems the Group faces. From the Group's interim results announcement for the first half of 2018, we can see a slight improvement in its textile business. More importantly, the management team is actively seeking ways to enrich income resources and to establish a diversified business model. The driving training business has become our recent development focus. With the management team's in-depth investigation and research about the industry and a feasibility study in all aspects, the Group has great confidence in the business' development. In the future, the Group intends to develop internet technology business and will release relevant information to the public when appropriate."
About Moody Technology Holdings Limited (Stock Code: 1400.HK)
Moody Technology Holdings Limited is formerly known as Wang Tai Holdings Limited. The predecessor of the Company is a group company integrating R&D, production and sales of casual fabric and yarn. After it changed its name, the Company has been actively expanding its business scope to establish a diversified business model. Apart from its textile business, now it is also simultaneously developing other businesses including international trading, driving training, etc.
Media Contact
Financial Asia Limited
Keith Lee
Tel: (852) 2522 8051
Email: team1@finasia.com.hk
Topic: Press release summary
Source: Moody Technology Holdings Limited
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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