|
Global China Technology Group Reports Solid Progress
for Growth (Hong Kong, 26th July 2001) Global China Technology Group Limited (the "Group", HKSE: 1105) announced today the audited consolidated annual results following the acquisition of Sing Tao Holdings Limited ("Sing Tao", HKSE: 233) completed in January 2001. For the twelve months ended 31st March 2001, the Group's turnover decreased 18.6% to HK$485.7 million (1999/2000: HK$597 million). Approximately 42% (HK$204 million) of the turnover was derived from the two months operations of Sing Tao. Turnover from the Group's other operations accounted for the rest of 58%. (HK$281.7 million). These include trading of photographic products and investment in securities. During the year, the Group's net loss increased slightly 2% to approximately HK$94 million (1999/2000: Loss of HK$92 million). Approximately 13.6% (HK$12.8million) of the net loss was attributed to Sing Tao. The Group's other operations reported 86.4% (HK$81.5million) of the net loss which was mainly due to a number of provisions made on the investments. The Directors of the Group do not recommend the payment of a final dividend. "For the period under review, we made solid progress towards our goal of transforming the Group into a key force in China's information revolution," said Charles Ho Tsu Kwok, Chairman of the Group. "We announced a number of significant investments during the year. These are the foundations on which we will be able to secure long-term growth and reap the enormous opportunities brought forward by China's entry into the WTO." Following the company rename in July 2000, the Group has repositioned itself to develop into a leading provider of broadband technology, multimedia content and e-commerce services for Chinese communities around the world. Its first joint venture business in Broadband Technology and Service - Beelink Information Science & Technology Co. Ltd. - reported steady revenue growth in broadband infrastructure, multimedia applications and IT consulting services during the period. As of March 31, the company had over 60% of broadband users in Jinan, the provincial capital of the Shandong province, China. In May 2001, a partnership agreement with Cisco Networks was signed to employ Cisco's latest Gigabit technology to build a state-of-the-art IP network in Jinan. It is the Group's belief that Beelink will capitalize on the fast growing broadband and information service market in the Shandong province. The acquisition of Sing Tao and the formation of Xinhuaonline Info-Tech Company Limited ("Xinhuaonline") have kick-started the Group's Media and Information Service business. During the year, Sing Tao successfully re-launched Sing Tao Daily and replaced Hong Kong Standard with Hong Kong iMail in a move to improve editorial quality and circulation. The Group plans to leverage on Sing Tao's strong brand equity and extensive information database to transform it into a leading multimedia content aggregator and distributor across Chinese markets. Xinhuaonline, on the other hand, will be focusing on providing value-added China business information and market intelligence for mainland and overseas corporations. Both Sing Tao and Xinhuaonline have provided the Group with an excellent platform to create a multimedia "InfoHub". InfoHub is designed to aggregate content from a wide range of sources and in a wide range of formats. The content will then be integrated, managed, repackaged and disseminated to global Chinese communities. China's entry into the WTO will again be a key driver in this project. The Group has also been seeking partnerships to build its business in the Education and Corporate Training as well as Financial Service sectors. In addition, the Group is planning to establish its own software solutions company in China that will complement its core businesses. In June 2001, a strategic investment was made in Liancheng Hudong Company Limited, a leading Customer Relationship Management (CRM) company in Beijing, to develop software products and services for China's small-to-medium size enterprises ("SMEs"). "Our market knowledge, professional management team and solid financial backings put us in an excellent position for developing the China market. We shall continue to look for suitable expansion opportunities to bring the best returns to shareholders," Mr Ho 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).
|