A8 Digital Music Announces a Record High Revenue and Profit of RMB706 Million and RMB80 Million in 2008, Increased by 147% and 45% Respectively
Posted on: Wednesday, 25 March 2009, 08:51 CDT
HONG KONG, March 25 /PRNewswire-Asia/ -- Financial Highlights: For the year ended 31 December (RMB million) 2008 2007 Growth Revenue 706.1 286.0 +147% Gross profit 266.1 128.7 +107% Profit attributable to equity holders of the Company (Excluding one-off and non-operating items*) 97.5 49.6 +97% Profit attributable to equity holders of the Company 80.2 55.3 +45% Earnings per share (RMB) -- basic 0.20 N/A N/A -- diluted 0.19 N/A N/A Note: * One-off and non-operating items included listing expenses of approximately RMB10.2 million and non-operating related share option expenses of approximately RMB 7.1 million in 2008, and the one-off disposal gain of approximately RMB5.7million in 2007. Leading integrated digital music company in
(Photo: http://www.prnasia.com/hkinfo/A8/090325/HK090301_E.htm )
During the review year, the Group had a record high revenue of
The Group had a strong balance sheet with no debt and a cash balance of
Mr. Liu Xiaosong, Chairman and Chief Executive Officer of A8 Digital
Music, said, "We are pleased to report strong financial performance for 2008
in this first annual results of the Group since listing in
Revenue of the Group rocketed thanks to the booming mobile music market in
The overall gross profit margin of the Group for the year decreased to 38% from approximately 45% last year. The decrease was mainly attributable to the increase in share of revenue share with business alliances and the shift of weight of ringtones to ringback tones in the product mix which had a higher revenue share to mobile operators.
Last year, the "2008 Annual Original Music Competition", a major mega
music event organized by the Group, was a big success attracting a record high
of 4,000 entries. The most popular UGC song "Ji Mo Cai Shuo Ai" was downloaded
over 18 million times, which was nearly three times more than the most
downloaded song in 2007. The Group also made great efforts into promoting
songs with potential in concerts it organized in the mainland
A8 Digital Music's innovative UGC platform ( http://www.a8.com ) collects
original independently produced songs, currently it owns a repertoire of more
than 60,000 original works of music. To strengthen the song collection
capability of the platform and the bonds among users, A8 Digital Music also
cooperated with
At its continuous effort, the 3G-compatible A8 Box of the Group has been empowered by the latest "shake control" technology. It enables the user to choose the next song by "shaking" the handset. The Group also expanded A8 Box to support the most popular music phone platform Nokia S60 5.0, a touch screen version. In 2008, approximately six million A8 Box-enabled handsets were launched. A8 Digital Music is currently in cooperation with over 90 chipset suppliers, design houses and handset manufactures. More personalized services and 3G compatible applications will be launched during this year.
Mr. Liu concluded, "Looking ahead, we expect the digital music (especially mobile music) craze to continue albeit the challenging global economy. Riding on our proven track record in digital music services and our unmatched strength in music content and technology, we are confident of tapping the opportunities presented by the restructured telecom sector and development of 3G in the PRC market to create new profit growth drivers, and in turn maximizing returns to shareholders."
About A8 Digital Music Holdings Limited
A8 Digital Music is a leading integrated digital music company that sells music content through mobile phones, sourced from its highly successful interactive UGC platformwww.a8.com, as well as from international and domestic record labels, and promote through traditional and new media such as internet and wireless network. Led by a team of experienced top executives with foresight and vision, the Group is able to capitalise on its integrated marketing and sales multi-channel network to acquire insights into consumer preferences in different regions and thus customise its marketing strategies.
-- Tables to Follow -- Appendix I Revenue Breakdown For the year ended 31 December 2008 2007 Growth (RMB mil) % (RMB mil) % % Ringtone 86.9 12% 72.2 25% +20% Ringback tone 273.0 39% 89.5 32% +205% IVR music 119.4 17% 20.8 7% +474% Other music-related 16.0 2% 15.0 5% +7% Non music-related 210.8 30% 88.5 31% +138% Total 706.1 100% 286.0 100% +147% Appendix II Strong Balance Sheet -- No Debt As at 31 December 2008 2007 Cash RMB315.6 mil RMB131.3 mil Total Assets RMB479.3 mil RMB291.2 mil Net Assets RMB365.8 mil RMB181.5 mil Account Receivable Turnover 52 days 82 days Appendix III Consolidated Income Statement (Audited) For the year ended 31 December 2008 2007 RMB'000 RMB'000 Revenue 706,079 285,964 Business tax (14,196) (7,860) Net revenue 691,883 278,104 Cost of services provided (425,806) (149,375) Gross profit 266,077 128,729 Other income and gains, net 7,624 20,180 Gain arising from disposal of an equity interest in a jointly-controlled entity -- 5,694 Selling and marketing expanses (115,281) (67,073) Administrative expenses (44,180) (21,715) Other expenses (17,257) (70) Finance costs (2,015) (4,913) Share of profits and losses of jointly-controlled entities -- (347) Profit before tax 94,968 60,485 Tax (14,168) (5,248) Profit for the period 80,800 55,237 Attributable to: -- Equity holders of the Company 80,170 55,274 -- Minority interests 630 (37) 80,800 55,237 Dividend Nil N/A Earnings per share attributable to equity holders of the Company -- Basic (RMB per share) 0.20 N/A -- Diluted (RMB per share) 0.19 N/A Appendix IV Consolidated Balance Sheet (Audited) As at 31 December 2008 2007 RMB'000 RMB'000 Non Current Assets Property, plant and equipment 6,328 6,832 Prepaid land lease payments 28,583 -- Intangible assets 703 360 Deferred tax assets 4,899 -- Total non-current assets 40,513 7,192 Current Assets Accounts receivable 101,657 64,809 Accounts due from related parties -- 59,708 Prepayments, deposits and other receivables 19,572 21,552 Equity investments at fair value through profit or loss 1,949 5,711 Tax recoverable -- 900 Cash and cash equivalents 315,643 131,315 Total current assets 438,821 283,995 Current Liabilities Accounts payable 58,617 18,049 Other payables and accruals 39,121 18,753 Amount due to a related party -- 3,558 Tax payable 10,997 -- Deferred income 4,000 -- Total Current liabilities 112,735 40,360 Net Current Assets 326,086 243,635 Total Assets less Current Liabilities 366,599 250,827 Non Current Liabilities Deferred tax liabilities 813 813 Convertible redeemable preferred shares -- 68,510 Total non-current liabilities 813 69,323 Net assets 365,786 181,504 Equity Equity attributable to equity holders of the Company Issued capital 3,944 512 Reserves 361,192 180,972 365,136 181,484 Minority interests 650 20 Total equity 365,786 181,504 For press enquiries: Strategic Financial Relations (China) Limited Ms. Esther Lau Tel: +852-2864-4845 Email: esther.lau@sprg.com.hk Mr. Marcus Keung Tel: +852-2114-4967 Email: marcus.keung@sprg.com.hk Ms. Janice Au Tel: +852-2864-4874 Email: janice.au@sprg.com.hk Ms. Annie Choi Tel: +852-2864-4837 Email: annie.choi@sprg.com.hkSOURCE A8 Digital Music Holdings Limited
Source: PR Newswire
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