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Global China Technology Group Announces Annual
Results * * * Momentum Continues for Media and Information
Services
(Hong Kong, 24th April 2002) Global China Technology Group Limited (HKEx: 1105) ("the Company") and its subsidiaries including Sing Tao Holdings Limited ("Sing Tao", HKEx: 233) (together "the Group") announced today their audited consolidated annual results from 1st April to 31st December 2001 following the change of accounting year-end date. For the nine months ended 31st December 2001, the Group recorded a consolidated turnover of approximately HK$1,033 million (4/2000 - 3/2001: HK$486 million). Net loss attributable to shareholders was approximately HK$131 million (4/2000 - 3/2001: HK$ 245 million) and loss per share was approximately HK$9.2 cents (4/2000 - 3/2001: HK$23.4 cents). The loss included a number of provisions on short-term investment, held-for-sale properties, the revaluation deficit on land and buildings, and the cost of a business restructuring and staff redundancy program of Sing Tao. The Directors of the Group do not recommend the payment of a final dividend. The Group maintained a healthy financial position and was in a net cash position throughout the period under review. As at 31st December, the Group had a cash and bank balance of approximately HK$332 million. "In 2001 we built a solid foothold in the areas of media and information services and achieved outstanding performance with our broadband technology subsidiary in Shandong province. Despite the global market downturn, China continues to open its market with its accession to the WTO and will bring enormous opportunities to us," said Wong Wai Ming, Chief Executive Officer of Global China Technology Group. The Group's media and information services moved another step forward towards its vision of becoming a leading provider of media content and services for Chinese communities around the world. Although the general market conditions have not been favorable for the operating environment of media organizations, Sing Tao for the period under review was able to successfully implement a number of major business initiatives and have established a presence in the China market. The company expanded into the local magazine market with the acquisition of two magazine titles, "East Touch" and "Teens", two weekly Chinese-language magazines targeting the young generation. In September 2001, the company announced new business strategies to respond to the dynamic market needs, including the repositioning of Hong Kong iMail into a business newspaper for the Greater China region. A series of business consolidation and operational restructuring have also taken place to increase operational efficiency. This included the establishment of a multimedia unit, and the disposal of Sing Tao's commercial printing business at a consideration of approximately HK$428 million. "We are hopeful that with an expanded distribution platform and a more diversified product portfolio, Sing Tao will be able to reinforce its position as one of the leading media groups for global Chinese communities," said Mr. Wong. Xinhuaonline Info & Tech Co. Ltd. ("XOL"), the joint venture partnership with the China Economic Information Services ("CEIS"), reported strong growth since its official service launch in July 2001. Xinhuaonline's core businesses are the provision of value-added business information and market analysis for business communities. For the period under review, XOL successfully launched a wide array of products and services targeting the lucrative media and financial industries in China. Products ranging from daily market intelligence reports and in-depth analysis of the macro investment environment have been well received in the market and continue to generate a steady flow of revenue. To support the Group's various initiatives in content production and distribution, the Group formed a joint venture company, GCT InfoHub Limited ("GCT InfoHub") with EC Founder (Holdings) Company Limited (HKEx: 618) to develop end-to-end knowledge management platform that aggregates, syndicates and delivers electronic contents. Target customers include media organizations, corporate users and research institutions. It is the Group's belief that GCT InfoHub will be the perfect vehicle to leverage existing content resources across the Group to capitalize on the market demand. Beelink Information Science and Technology Co. Ltd. ("Beelink"), the Group's joint venture company in Shandong province to provide broadband technology and services, continues to show strong growth. As at 31st December 2001, Beelink had 15,000 broadband users, representing a 76% growth as compared to 8,500 users in June 2001. The Group is confident that Beelink will continue to report solid results as China continues to promote broadband Internet usage and e-commerce development. The Group is also in the course of forming a joint venture company with one of the leading universities in China to develop education and corporate training businesses. Details of the joint venture will be announced when available. "Over the past year, the Group has expanded its business connections and we have been able to deepen our understanding of the media sector in China. We have forged close alliances with leading mainland partners and together, these have formed a solid foundation for our future growth," said Mr. Wong. "Looking ahead, we will continue to focus
our resources on the development of media and related businesses.
We will also look for suitable investment opportunities both in
the Mainland and overseas to capture the WTO opportunities and bring
the most rewarding results to our shareholders," Mr. Wong concluded. About Global China Technology Group Ltd Global China Technology Group (HKEx: 1105) is principally engaged in information technology and Internet-related businesses. Core business focuses are broadband technology and service, media and information service, and education and corporate training. It also holds approximately 75% of Sing Tao Group (HKEx: 233).
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