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VODone Limited Outstanding Business Performance in 2010; Turnover Surges by 157%


March 29, 2011 - Hong Kong

VODone Limited ("VODone" or the "Company"; stock code: 00082.HK), is pleased to announce its audited consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2010.


Financial Highlights

-- Turnover grew by 157% from last year to HK$767,591,000
-- Earned profit attributable to owners of the Company of
HK$325,428,000 representing an increase of 209% from last year
with EPS of HK13.8 cents
-- A cash balance of HK$399,282,000
-- Maintained debt free
-- Total assets of HK$2,363,247,000
-- Proposed a final dividend of HK1.38 cents per share

During the year under review, turnover of the Group was HK$767,591,000, an increase of around 157% compared to HK$298,702,000 of last year. Profit attributable to the owners of the Company for the year was HK$325,428,000 representing an increase of209% from last year. The Group has no debt as at 31 December 2010 and 2009. As at 31 December 2010, the Group had cash and cash equivalents of HK$399,282,000 (2009: HK$339,059,000). Working capital was HK$680,279,000 as compared with the working capital of HK$569,514,000 at the end of last year. A final dividend of HK$1.38 cents per share (2009: HK$0.6 cent per share) was proposed pursuant to a resolution passed by the Board.

Tele-media Business

2010 was the "breakthrough year" for the tele-media business of VODone. With the unprecedented opportunities arising from the rapid growth of e-advertisement and the swift expansion of e-commerce in China, on 13 July 2010, VODone introduced the news portal - www.v1.cn, a new domain and a newsportal. In pursuance of our mission, "conveying people's opinion, marking it as government policy references" we focused our effort in developing a news portal. Targeting to bring together high-level inspiration and with unique competitiveness, we drew attention and gained support from various advertising agencies and clients. Meanwhile, we actively explored the e-commerce business model, including "group buying". We aim to maintain a steady profit growth through the introduction of a new channel, and develop a healthy and flourishing platform for VODone's various businesses units. As at 1 January 2011, the news portal of VODone was ranked 338th among global news portals and being the third largest news commentary portal in China followingwww.xinhuanet.com and www.people.com.cn. In September 2010, 'VODone Bus'a product of VODone and the largest mobile internet video advertising platform in China, was officially upgraded as the www.v1.cn "First Network". uccessfully obtained the creditcertification from the Ministry of Commerce. The tele-media business contributed a revenue of HK$437,525,000 to the Group for the year 2010, an increase of 101% from 2009. Such increase in revenue was mainly due to the higher ranking of VODone's website in global portal list, coupled with the introduction of MOBUS and www.v1.cn, receiving the attention and approbation from advertisers, which collectively contributed advertising income to the Group.

Mobile gaming Business

Following the first acquisition of the mobile gaming company Dragon Joyce at the end of 2009, VODone has completed the acquisition of 3GUU, a leading mobile games developer for smart phones and OWX in 2010, thus formed a full range production chain, offering game design and operation and game built-in, established the largest China mobile game operator "China Mobile Game and Entertainment Group". It is expected that the global mobile phone users will exceed 5.6 billion in 2011, among which 3.8 billion from the developing countries and the number of mobile phone users in Chinese will exceed 1 billion. Riding on this promising trend, the China Mobile Game and Entertainment Group of VODone will seize the opportunities for business integration; use its own intellectual property right to develop and launch various single-brand mobile game products. In addition, the company will not only actively expand mobile game market in China, but also explore the overseas market, in order to capture the greatest marketshare supported by large number of subscribers and become the largest operator in China mobile game market. Mobile gaming business contributed HK$150,814,000 to the turnover of the Group for the year 2010, an increase of 789% from last year.

Lottery Related Business

Since the promulgation of "Regulations for the Administration of Sales of Lottery via Internet" by the Ministry of Finance in October 2010, VODone Lottery View has been the leading player in the mobile lottery business, together with the newly acquired www.zgzcw.com and www.betrich.com, and has formed a stronger management and operation team. Our former VODone Lottery View (www.caishijie.com), after successful integration with www.zgzcw.com and www.betrich.com, was formally renamed as www.diyicai.com on 22 March 2011. In the meantime, we made the grand debut of "Lottery Buyers on Weibo", which was unprecedented in China and gained the recognition of the China Sports and Welfare Lottery Administration Bureau as well as massive focus and support from the industry and lottery buyers. The well-received "Lottery Buyers on Weibo" has underpinned the rapid development of the lottery business. The lottery-related business contributed a revenue of HK$179,252,000 to the Group for the year 2010, an increase of 17% from last year.

The Business of Linfo

Linfo, a mobile community with location based service, has developed into a network with 4 million registered users from a brand-new and unpopular business withinhalf a year, becoming the largest mobile community with location based service (LBS). Through the restructure and consolidation by VODone with France Telecom in 2011, Linfo strives to become a successful operator of mobile community, providing a massive and effective platform for various businesses of VODone and jointly exploring unlimited business opportunities over the mobile internet market in the future.

Prospect

Looking into future, Chairman Zhang said, "By seizing every opportunity and making aggressive steps with great endeavors under the speedy development of China's economy, we successfully attained our strategic position as the new largest enterprise in the advanced media industry. We hereby summarize this positioning as, "aplatform with 3 highlights", representing 3 principal business modes, namely the advertising profit mode through the news website of VODone and its BUS on internet basis, the e-commerce profit mode of mobile games and mobile lottery on the basis ofmobile internet, and the mobile community with location based service (LBS). Internally, strong synergy effect is increasingly realized among these three modes. With the above development strategies, VODone achieved very remarkable result in 2010. The segment profits from our tele-media business, lottery related services and mobile gaming business recorded an increase of 123%, 185% and 460% respectively as compared to the previous year. The total profit after tax of the overall business of the Group attained an increase of 218% for the year 2010 as compared to the previous year. The significant growth of profit from 2009 to 2010 has marked the stability, soundness, and development of various businesses lines of VODone. Further, while the China market is constantly expanding, we firmly believe that we will be benefited from the opportunities brought by the Triple Networks Convergence and continue to secure stable and rapid growth in 2011."

About VODone Limited

VODone ( www.vodone.com ) is currently the only Internet video broadcasting company listed in Hong Kong. The affiliated company of VODone - VODone Telemedia is a State-owned Enterprise which owns the fullest set of qualifications and licenses in China's Internet broadcasting industry. It has also obtained the Information Network Communicated Audio-Video Program Licence, Internet News Permit, Value added Telecom Service Operation License, Internet Publication Permit and all other required licenses, ensuring itself a healthy development in the future. VODone IR website: http://ir.vodone.com

This press release is distributed by Wonderful Sky Financial Group Limited on behalf of VODone Limited.

Source: VODone Limited

Contact:

Wonderful Sky Financial Group Limited
Joanne Chan/ Hon Fung/ Ada Di/ Ada Kwong/ Cecilia Chan
Tel:+852 3970 2181 / 3970 2135
Fax:+852 2598 1588
E-mail: joannechan@wsfg.hk / hf@wsfg.hk / adadi@wsfg.hk / adakwong@wsfg.hk / ceciliachan@wsfg.hk





Copyright 2011 ACN Newswire. All rights reserved.

ACN Newswire

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