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Global China Technology Group Announces Interim
Results * * * Consolidated Results
Consolidated group turnover was HK$720 million (2000: HK$181 million) and loss attributable to shareholders was HK$68 million (2000: HK$13 million). Approximately 90% and 40% of the turnover and loss were generated from Sing Tao. Loss per share was HK$4.83 cents (2000: HK$1.66 cents). The Directors of the Group do not recommend the payment of an interim dividend. "The past six months were challenging for businesses due to the global economic climate. Yet, we have been able to move on-track in our key operating areas. Media and information services, in particular, reported solid progress, with new partnerships formed and new strategies in place. We are confident that these developments will bring us long term and rewarding returns in post-WTO China," said Wong Wai Ming, Chief Executive Officer of Global China Technology Group. For the six months under review, Sing Tao, the Group's media and information services flagship operation, reported a 4% drop in turnover due to a continued downturn in the local advertising market. On 22nd September, the company announced a business-restructuring program to increase operational efficiency and to explore new market opportunities. One of the key initiatives was the repositioning of Hong Kong iMail as a quality English-language newspaper focusing on Greater China financial news, a segment currently under-served. The program involved a HK$13 million compensation package to redundant staff, and represented approximately 37% for the company's HK$35 million loss attributable to shareholders. "Both Sing Tao Daily and iMail have taken on new initiatives to expand revenue stream outside of Hong Kong," said Mr. Wong. "Sing Tao will capitalize on the foundation we have built in China to actively pursue opportunities that will expand our media and information services operation into the mainland market." Xinhuaonline ("XOL"), the premier value-added information service provider in joint venture partnership with the China Economic Information Services, reported satisfactory development since its official launch in July 2001. Products available in the first stage include news and market analysis reports for the media and financial industries. In August 2001, XOL established a strategic partnership with Reuters, the global information service provider, to exchange content. The Group believes the partnership will enable XOL to open up overseas markets and expand its distribution channels. The Group's broadband technology and services division made solid progress during the period. Beelink Information Science and Technology Co. Ltd. ("Beelink"), a 40% owned broadband technology and multimedia applications company in Shandong province, reported a 30% growth in customer base in Jinan City as a result of network quality upgrade and aggressive marketing campaigns. Beelink has also expanded its software and system integration business to capture the fast growing market. "China's accession to the WTO will be the key driver for our business growth. We have already laid down a strong foundation in various areas under the WTO agreement. Our early mover advantage, expertise, and our strong financial position have put us in the best position to grasp the enormous opportunities ahead," Mr. Wong concluded.
About Global China Technology Group Ltd Global China Technology Group (HKSE: 1105) is principally engaged in information technology and Internet-related businesses. Its four business focuses are broadband technology and service, media and information service, education and corporate training, as well as financial service. It also holds approximately 75% of Sing Tao Group (HKSE: 233).
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