HONG KONG -- (Marketwire) -- 08/17/12 -- The leading integrated digital music company in China -- A8 Digital Music Holdings Limited ("A8 Music" or the "Company") (Stock Code: 00800.HK) today announced its unaudited interim results for the six months ended 30 June 2012.
•Revenue amounted to approximately RMB184 million, representing 26% decrease from RMB249 million in 1st half 2011. •Loss attributable to the shareholders amounted to approximately RMB9.6 million, dropped from profit attributable to the shareholders of RMB9.3 million for the last corresponding period. •Strong balance sheet, with cash balance of approximately RMB410.1 million and net assets of approximately RMB535.7 million as of 30 June 2012. •EPS: RMB (0.02) vs. RMB0.02 of last year (Diluted). • The Board of Directors did not recommend the payment of Interim dividend.
During the period under review, the mobile internet industry in China grows quickly, the user scale reached over 450 million and the market size reached RMB23.3 billion in first half of 2012 according to the statistics published by iResearch. Out of which, the percentage contributed by Mobile Value-Added Service (the major portion of mobile internet industry) decreased due to the previous change in policy. The revenue generated by the Company is approximately RMB184 million, representing a decrease of approximately 26% as compared to the same period last year due to the change of policy. Loss attributable to the shareholders of the Company amounted to RMB9.3 million (2011 Interim: 9.32 Million in profit), a decrease of 203%. Basic loss per share was RMB0.02 (2011 interim: earnings per share was RMB0.02). The Board of Directors does not recommend payment of interim dividend for the six months ended 30 June 2012.
As of 30 June 2012, the Company kept a strong financial position with a cash balances (including cash and cash equivalents, time deposits with maturity of more than three months and investments at fair value through profit or loss) amounted to approximately RMB410 million (2011: approximately RMB407 million) and Interest-bearing bank borrowing of RMB39.72 million, which is for the construction of A8 building.
Mr. Liu Xiaosong, Chairman of A8 Music said, "We saw the mobile internet industry in China grew tremendously in first half of 2012, while the contribution of Mobile Value-Added Service, the major portion of mobile internet revenue, decreased due to the previous change in policy. Facing the difficulties, the Company further deployed short-term and long-term strategic transformation, which have made some progress that would pave the way for future development."
Regarding the self-construction of UGC music and accumulation of worthy copyrights, great strides have been made and significant results have been achieved. The Company continued to develop "Composer Plan" in 2012. Since its debut one year ago, the Company has accumulated more than 300 music copyrights through the plan and has become a music company with the largest annual production of new songs in the Greater China Region. The music includes various categories such as network songs with great potential and customized theme and songs by website composers. These songs rank top rating in Baidu billboard and the top-selling billboard in wireless music market. Among which, the song "Lao Po Zui Da" has been among the top 10 on Baidu TOP500 Billboard and the top-selling billboard of China Mobile12530 for a long time while the songs "Tang Gu La", "Ai Qing Zhuan Shu Quan" and "Si Mi Da" resided on Baidu TOP20 Billboard. These UGC songs are highly compatible with the needs of users, and have generated total revenue of approximately RMB 50 million to the Company for the first half of 2012, representing 40% of contribution to the revenue generated from music.
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