Overall Revenue Benefits from Digital Marketing Business Transformation,
New Business Sector of Entrepreneurship and Development Services Speedily Initiated
Branding China Group Limited ("Branding China" or the "Company", HKEx: 863) is pleased to announce the annual results of the Company for the twelve months ended 31 December 2015 (the "Review Period"). During the Review Period, the Group achieved a gross profit of RMB93.6 million, representing an increase of 12.80%. The Group recorded a total revenue of approximately RMB0.318 billion, representing an increase of approximately 4.50%. The increase in revenue was mainly due to the increase in the overall revenue of the Group brought by the steady increase of the revenue of the digital media and event marketing businesses of the Group.
During the Review Period, the Company focused on the current integrated marketing communication services, while committing to developing the digital marketing business segment. Such transformation was completed in 2015. During the Review Period, the Company realised a total revenue of RMB320,339,886, among which the digital media accounted for RMB195,787,055, representing 61.12% of the total income. The gross profit increased by 2.17% as compared with that of last year and maintained a steady growing trend.
Sustaining current cultural industry business, expanding and pursuing new integrated marketing communication services businesses
It was a year of significant turning point for the development of the Group's business in 2015. After the successful completion of the transfer of listing in September, the Group studied very hard the trend of macro-economy and sub-segments in the industry. Integrating the favourable business experience and advantages in corporate services area and culture and media area, the Board formulated new directions of business development, namely "entrepreneurship and development services", and announced the operating strategies of the new business development in November. The Company provides corporate services contents including: park area services, equity investment services, corporate value-added services and the current integrated marketing communication services.
During the Review Period, the Group acquired 34% of the equity interest in Shanghai Lingang Cultural Industry Development Company Limited* ("Lingang Cultural") by entering into Acquisition Agreement. Lingang Cultural is principally engaged in the cultural park management project of "Sheshan Cultural Oasis" (佘山文化綠洲). The cultural park is located in Beilu (北麓) of Sheshan, a suburb scenic area in Shanghai, with a gross planned construction area of approximately 160,000 square metres. The cultural park adopts a unique operation model of "Base + Capital", as a result of which, Lingang cultural also manages a mergers and acquisitions fund which amounted to approximately RMB2 billion (equivalent to approximately HK$2.43 billion).
To date, approximately 160,000 square metres of the park area and a fund of RMB2 billion are managed under the Group and its non wholly-owned subsidiaries. With years of experience in corporate services and knowledge of the market, our investment projects covers various areas, including new media, intelligent hardware, SaaS enterprise collaboration software, new technologies in virtual infrastructure and mobile Internet terminals.
Prospects for 2016
The Group is of the view that customer resources can be shared among park area services, equity investment services, corporate value-added services and the current integrated marketing communication services, which forms an in-depth synergies and comprised organic immersion of the overall business. Meanwhile, the move is consistent with the operating objective that the Group has long upheld: "provide corporations with the most fundamental needs".
These innovative and integrated corporate service system caters for the demand of the market, and is supported by relevant policy. Therefore, in 2016, the Group will greatly expand the new business in order to develop the Group into a more comprehensive, profound and professional corporate service provider. The Group will create more value for its shareholders with the boom of the entrepreneurship in China.
Mr. Fang Bin, Executive Director, Chairman and General Manager of the Company, believes that summing up the current situation, beginning with the three most fundamental needs of business, namely space, capital and ancillary services, leverage on the service experience for corporate customers accumulated and industry resources, and capitalising on the favourable policy of "mass entrepreneurship and innovation", the Group chose the new business modes to expand the content and target of corporate services. We believe that it is a right choice that is suitable for ourselves, and it will be a great opportunity to enhance the brand of the Group.
For internal control, the Group will continue to optimise internal resources and optimise the governance structure, as well as boldly innovating and actively introducing advanced international operations concepts. Furthermore, as a listed company, the Company will continue to comply with the Listing Rules, strive to enhance the core competitiveness, and seek for long-term and sustainable development with a view to creating a better value for the Shareholders, staff and the society.
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About Branding China Group Limited
Branding China Group Limited, Mainland's first integrated branding services provider listed in Hong Kong, is the first enterprise undertaking entrepreneurship services listed in Hong Kong. The Group was listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited on 27 April 2012 and transferred of Listing from GEM Board to Main Board of the Stock Exchange of Hong Kong Limited on 8 September 2015. The Group is focusing on providing entrepreneurship and development services for corporations with an objective to cater the needs of our customers. The Company provides start-ups, developing and developed customers with corporate services, including park area services, corporate value-added services, equity investment services and integrated marketing communication services. Members of the Group include, among others, Shanghai SumZone Enterprise Management Consultancy Company Limited* (上海三眾企業管理咨詢有限公司) (Shanghai SumZone Enterprise), Shanghai You Xiong Enterprises Management Consultancy Company Limited* (上海有熊企業管理咨詢有限公司) (Shanghai Youxiong), Shanghai Hefei Investment Management Company Limited* (上海和斐投資管理有限公司) (Shanghai Hefei) and Shanghai Jingzhi Investment Management Consultancy Company Limited* (上海鯨致投資管理咨詢有限公司) (Shanghai Jingzhi), which are headquartered in Shanghai.
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