VIVOTEK Joins HEVC Advance to Expand HEVC/H.265 Video Compression Technology

HEVC Advance announces the addition of VIVOTEK Inc. as a Licensee to the HEVC Advance Licensing Program

BOSTON, May 17, 2017 /PRNewswire/ — HEVC Advance and VIVOTEK Inc. ("VIVOTEK"), today announced that VIVOTEK has become a Licensee of the HEVC Advance HEVC/H.265 Licensing Program.  As a Licensee, VIVOTEK gains access to a large portfolio of valuable patents essential to implementing the HEVC/H.265 video compression standard.

HEVC/H.265 offers the next generation video compression that delivers twice the efficiency of H.264. VIVOTEK, a leading IP surveillance solution provider, is among those companies leading the effort to bring HEVC/H.265 video compression technology to the IP surveillance marketplace through its comprehensive H.265 solutions and strategic alliances. All of these allow VIVOTEK to take IP surveillance to the next level.

Joe Wu, Chief Technology Officer, VIVOTEK Inc., stated, "To meet customers’ immediate and rapidly growing demands of the best possible quality video, we are proud to become an official licensee of HEVC Advance in order to expand HEVC/H.265 applications together. With ongoing cooperation, we will continue to maximize bandwidth and storage efficiency to achieve greater cost-effectiveness and create considerable user benefits across the world."

"As one of the top ranked security solutions and device manufacturers in the world, we are excited that VIVOTEK is aggressively working to bring the superior bandwidth, storage, and resolution advantages of HEVC/H.265 technology to the security and surveillance marketplace, while recognizing the value of providing products to its customers which are licensed under the HEVC Advance Patent Pool," said HEVC Advance CEO, Peter Moller.

About VIVOTEK
VIVOTEK Inc. (TAIEX: 3454) was founded in Taiwan in 2000. The Company markets VIVOTEK solutions worldwide, and has become a leading brand in the global IP surveillance industry. Its comprehensive solutions include network cameras, video servers, network video recorders, PoE solutions, and video management software. Through the growing proliferation of IoT, VIVOTEK aspires to become the Eye in IoT by drawing on its expansive technological capabilities in image and audio. The Company has established offices and subsidiaries in the United States (California), Europe (Netherlands), India (Delhi), Middle East (Dubai), and Latin America (Mexico) in 2008, 2013, 2014, 2015 and 2016 respectively. To create a sound industrial ecosystem, VIVOTEK has expanded strategic alliances with leading international software and hardware partners and works with over 183 authorized distributors across 116 countries. For more information, please visit www.vivotek.com.

About HEVC Advance LLC
HEVC Advance is an independent licensing administrator company formed to lead the development, administration, and management of an HEVC/H.265 patent pool for licensing essential patents. HEVC Advance provides a transparent and efficient licensing mechanism for HEVC patented technology. For more information about HEVC Advance, please visit www.hevcadvance.com.

Contact: [email protected]

PAX Technology Unveils Android Payment Solutions at Transact 2017

SHENZHEN, China, May 17, 2017 /PRNewswire/ — PAX Technology (HKEx: 00327) ("PAX GLOBAL"), a global leader in the provision of secure electronic payment terminal solutions, is pleased to generate huge visitor interest in its new innovative range of Android based retail solutions showcased at Transact 2017 in the USA last week.

Along with the elegantly designed Q80 and Q90 wireless payment terminals, PAX also showcased for the first time in North America the first of its new E-Series products, the E810 Integrated Retail POS Solution and a special contactless enabled QR code payment reader called the QR55.

Mr. Andy Chau, CEO of PAX US, said: "The advent of Android based payment terminals and new generation cash register type solutions is really going to change the dynamics of the US retail market, offering many new opportunities for value added services and better integrated systems for merchants and processors alike".

Mr. Jack Lu, CEO of PAX, concluded, "We were delighted to hear firsthand feedback of how impressed our American customers are with PAX’s existing and new product roadmap. Transact 2017 was a very successful event for us in terms of business development and demonstrating our global expertise and capabilities to the North American market."

About PAX (www.pax.com.cn)

PAX Technology is an innovative global provider of electronic payment solutions, offering world-class, cost-effective and superior quality products. Building on its service excellence and proven leadership position, PAX is one of the fastest growing payment industry suppliers with state-of-the-art manufacturing facilities, excellent R&D capabilities and a worldwide network of sales and channel partners. PAX is listed on the Hong Kong stock exchange as PAX Global Technology Ltd. (0327.HK).

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pax-technology-unveils-android-payment-solutions-at-transact-2017-300459140.html

China Pharma Holdings, Inc.’s Wholly-owned Subsidiary Participated in PharmChina/API China Conferences

HAIKOU, China, May 17, 2017 /PRNewswire/ — China Pharma Holdings, Inc. (NYSE MKT: CPHI) ("China Pharma," the "Company" or "We"), an NYSE MKT listed corporation with its fully-integrated specialty pharmaceuticals subsidiary based in China, today announced its wholly-owned subsidiary, Hainan Helpson Medical & Biotechnology Co., Ltd., participated in PharmChina and API (Active Pharmaceutical Ingredient) China.

The 77th PHARMCHINA, and the 78th API China takes place on May 15 – 18, 2017,  National Exhibition and Convention Center, Shanghai, China. With a long history and great influence in the APAC region, this event involves pharmaceutical research and development, production, sales and marketing; is one of the best platforms to understand the pulse and latest trends of this industry. There has been over 120,000 visitors mainly from pharmaceutical manufacturers, distributors/agents, and pharmacy chains.

Hainan Helpson Medical & Biotechnology Co., Ltd., is showing around 20 products for the treatment of anti-infection & respiratory system diseases, central nervous system diseases, digestive diseases, and other diseases in this event; and is communicating with a wide range of existing and potential distributors and API suppliers.

"To participate in this event is to further improve our market share, strengthen cooperation with upstream and downstream companies, in-depth understand frontier information, and explore global layout," China Pharma’s President & CEO, Ms. Li Zhilin. "We have been actively talking to international API exhibitors to leverage any win-win cooperation models in the current pharmaceutical policy environment in China. We will continue enhancing our fundamentals in operating level to support and promote our long-term growth."

About China Pharma Holdings, Inc.

China Pharma Holdings, Inc. is a specialty pharmaceutical company that develops, manufactures and markets a diversified portfolio of products focused on conditions with a high incidence and high mortality rates in China, including cardiovascular, CNS, infectious, and digestive diseases. The Company’s cost-effective, high-margin business model is driven by market demand and supported by new GMP-certified product lines covering the major dosage forms. In addition, the Company has a broad and expanding nationwide distribution network across all major cities and provinces in China. The Company’s wholly-owned subsidiary, Hainan Helpson Medical & Biotechnology Co., Ltd., is located in Haikou City, Hainan Province. For more information about China Pharma Holdings, Inc., please visit www.chinapharmaholdings.com. The Company routinely posts important information on its website.

Safe Harbor Statement 

Certain statements in this press release constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as the achievability of financial guidance, success of new product development, unanticipated changes in product demand, increased competition, downturns in the Chinese economy, uncompetitive levels of research and development, and other information detailed from time to time in the Company’s filings and future filings with the United States Securities and Exchange Commission. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations except as required by applicable law or regulation.

Contact:

China Pharma Holdings, Inc.
Ms. Diana Na Huang
Phone:  +86-898-6681-1730 (China
Email: [email protected]

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/china-pharma-holdings-incs-wholly-owned-subsidiary-participated-in-pharmchinaapi-china-conferences-300459156.html

Chinese real estate developer Country Garden achieves 50% of this year’s sales target in first four months

The superior performance continues to draw the attention of media and industry watchers who took notice of the company’s massive growth

SHUNDE, China, May 17, 2017 /PRNewswire/ — Hong Kong-based newspaper Ta Kung Pao issued an article on May 12, 2017, mentioning that Chinese real estate developer Country Garden Holdings Company Limited reported sales of 150.7 billion yuan (approx. US$21.8 billion) for the first three months of 2017, maintaining its industry leadership. A month later, the company achieved another significant result. Here is the full article:

Country Garden Holdings Company said recently in an announcement published on the Stock Exchange of Hong Kong’s news website, HKEXnews, that for the four months ended April 30, 2017, the company and its subsidiaries, joint ventures and associates, achieved contracted sales of 204.2 billion yuan. The sales represented an aggregate gross floor area (GFA) of approximately 22.56 million square meters. Contracted sales and contracted sales GFA attributable to owners of the company for the four months stood at 146.4 billion yuan and 16.67 million square meters, respectively.

In early 2017, when the company released its financial results for 2016, chairman Yeung Kwok Keung and president Mo Bin, said the company aims to achieve sales of 400 billion yuan (approx. US$58 billion) this year. To date, the company has already achieved more than 50 per cent of that annual sales target.

What’s the secret behind its outsize growth? A review of Country Garden’s strategy shows how the company smartly chose to focus on development in three areas, as explained by Zhu Jianmin, the group’s spokesperson and vice president: traditional real estate development, real estate projects outside of the developer’s home market and urban centers that smartly integrate industry with residential communities, including Forest City and several Tech Towns.

Aggressive land acquisition strategy for 2017

Country Garden set a budget of 150 billion yuan for new land acquisitions in early 2017 to support its full-year sales targets. In the first four months, the company moved aggressively by acquiring lots in Chinese cities at all tier levels.

According to Country Garden’s newsletter, the company acquired land lots across several Chinese provinces, including Anhui, Guangdong, Henan, Hunan, Jiangsu and Zhejiang, in the first quarter of this year, with a GFA target of 20.35 million square meters valued in the aggregate at roughly 67 billion yuan. The target would yield a GFA attributable to owners of the company of 16.04 million square meters valued at 59 billion yuan. The Chinese real estate developer has established a footprint in more than 400 cities and towns across the country.

A decade ago when the company went public in Hong Kong, Country Garden was a local, Guangdong province-based, mid-sized builder with annual sales of only 15.8 billion yuan. Five years later, in 2012, annual sales had already grown to 49.2 billion yuan. The following five years saw sales move from just under 50 billion yuan to over 300 billion yuan,聽in 2016, the company reporting sales of 308.8 billion yuan, representing annual growth of more than 100 per cent and assuring its position as one of China’s leading real estate developers.

Country Garden, which had, for several years, taken the lead in initiating projects in China’s third and fourth-tier cities, shifted the strategy over the last few years to include expansion in first and second-tier cities. The developer spent 70 per cent of its land acquisition budget on buying land in first and second-tier cities in the first quarter, with the remaining 30 per cent dedicated to purchases in third and fourth-tier cities.

A focus on building multiple Techtown projects across China

The outsize growth of Country Garden is very much an outlier. One of the company’s focuses is to build across China a series of Techtowns, in effect, small cities designed to attract start up technology firms, and place them in a cluster so that they can benefit from each other, while continuing to develop and execute on traditional projects. In August 2016, Country Garden announced the Residence-Industry Integration strategy with the aim of building cities that bring together all the resources needed by both residents and businesses that choose to live or set up operations in one of the cities and followed up by launching the Techtown project. The company plans to invest over 100 billion yuan (approx. US$14.5 billion) building multiple Techtowns in suburban areas adjacent to first-tier cities and in the core built-up areas of second-tier cities across China.

Currently, the company has formulated an initial plan for its Techtown projects in the Pearl and Yangtze River Delta regions as well as in Beijing, Tianjin and Hebei province. In addition, Country Garden has also signed strategic partnership agreements with over 30 leading domestic and international organizations, including Silicon Valley tech giant Cisco, Tsinghua University and the Beijing Advanced Sciences and Innovation Center of Chinese Academy of Sciences, with the goal of building a platform to drive economic growth across China. The Country Garden  Innovation Town in Huizhou, Guangdong province has been granted a section of land for the initial stage of the project. According to the plan, 70 per cent of the land will be allocated to businesses, with the remaining 30 percent reserved for residential projects.

"We give priority to business over residential. Residential has no value without the success of the local businesses," said Lin Zhaoxian, chief strategy officer and general manager of the Strategic Development Center at Country Garden Group. Previously, Xiang Junbo, assistant president and general manager of residence-industry integration business unit at the group, disclosed that the company aims to identify leading industries and, for each Techtown, bring together several leading technology firms within one of the identified industries to form an industry cluster.

The Industry Innovation Development Center at The Country Garden  Innovation Town is scheduled to finish construction and open in late July, with the companies that have already signed to come on aboard prepared to move into the first completed space for commercial use once the construction of the space is completed. Completion is scheduled for the first half of 2018.

Forest City is just the first of similar efforts in Country Garden’s pipeline of development projects outside of the home market

In addition to continuing to expand its coverage in the domestic market, Country Garden is also making inroads into overseas markets, including Malaysia, Australia and Indonesia, as well as into other countries along the One Belt, One Road route.

Notably, Forest City, the company’s benchmark project, with its location in Malaysia’s Iskandar Development Region just across a narrow strait from Singapore, is a model for future such developments. Designed to be a city delivering enhanced industrial capacity on an international scale, Forest City provides superior living facilities, while focusing on the planning and development of eight select industries: conventions and exhibitions, education and training, healthcare, near shore finance, residency for foreign companies, e-commerce, emerging technologies, as well as environmental services and green technologies. Unlike similar developments in China, Forest City has access to a substantially more diversified base of buyers from 23 countries across the globe, including the US, Russia, the UK, France, Australia, Japan and Indonesia.

Based on information provided by Country Garden, the first apartments were delivered to their owners on May 1, 2017, with the owners taking possession of residences that had just been completed at Country Garden Kylin Apartments, located on the grounds of Forest City Phoenix Hotel. When completed, new homeowners will occupy 132 apartments with gardens looking out onto the sea, a rare find for a buyer. Homeowners received their new apartments in just one year following purchase. The on-time delivery demonstrated Country Garden’s determination in meeting its commitments as well as excellent performance in terms of services. The construction of a world-class golf course, as part of the next stage of the project, Forest City Phase Two, will commence soon after the first completed apartments are delivered. Country Garden signed the agreements with the contractors responsible for the construction of Phase Two at its headquarters in Shunde, Guangdong province, China, on March 11. Sultan of Johor and member of the Malaysian royal family mem Ibrahim Ismail ibni Sultan Iskandar attended the signing ceremony.

Country Garden is now well on track to complete the construction of Forest City on schedule while pushing ahead with the ongoing build out of its three core businesses. Looking ahead to the next few years, the company fully expects to continue achieving the same level of positive results as it has accomplished over the past few years.

China Rapid Finance to Announce First Quarter 2017 Financial Results on May 25, 2017

SHANGHAI, May 17, 2017 /PRNewswire/ — China Rapid Finance Limited ("China Rapid Finance") (NYSE:XRF), a leading online consumer lending marketplace in China, today announced that it plans to release its first quarter 2017 financial results on Thursday, May 25, 2017 before market open. China Rapid Finance will hold a conference call on Thursday, May 25, 2017 at 8:00 am Eastern Time or 8:00 pm Beijing Time to discuss the financial results. Listeners may access the call by dialing the following numbers:

International:                    

+1-412-902-4272

United States Toll Free:    

+1-888-346-8982

China Toll Free:                

4001-201203

Hong Kong Toll Free:      

800-905945

Conference ID:                

China Rapid Finance call

The replay will be accessible through June 1, 2017 by dialing the following numbers:

United States:                   

+1-877-344-7529 

International:                    

+1-412-317-0088

Replay Access Code:      

10107730

A live and archived webcast of the conference call will also be available at the China Rapid Finance’s investor relations website at http://chinarapidfinance.investorroom.com/

About China Rapid Finance

China Rapid Finance operates one of China’s largest consumer lending marketplaces in terms of total number of loans, having facilitated approximately 15 million loans to approximately 2 million borrowers at significantly lower borrowing costs than many of its competitors. According to the People’s Bank of China, as of the end of 2015, there are approximately 500 million individuals with quality employment records but no credit history. The company refers to these individuals, who regularly use mobile devices, as EMMAs (Emerging Middle-class, Mobile Active consumers). China Rapid Finance believes EMMAs constitute one of the largest untapped consumer credit market opportunities in the world. The company acquires quality borrowers through multiple channels, and has been able to establish a leadership position in China’s consumer lending industry because the company is able to use its proprietary technology to efficiently identify and select prime and near-prime EMMAs for its platform. Through its "low and grow" strategy, the company initially offers smaller, shorter-term loans to these EMMAs and then uses its proprietary decisioning technology to proactively offer them larger, longer-term loans as they demonstrate positive credit behavior, allowing the company to retain high quality EMMAs with significant lifetime consumer value.

Investor Relations:

China Rapid Finance Limited
Sean Zhang
Tel: +1 (646) 308-1635
Email: [email protected]

ICR, Inc.
Xueli Song
Tel: +1 (646) 308-1635
Email: [email protected]

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/china-rapid-finance-to-announce-first-quarter-2017-financial-results-on-may-25-2017-300459172.html

Tencent Announces 2017 First Quarter Results

SHENZHEN, China, May 17, 2017 /PRNewswire/ — Tencent Holdings Limited ("Tencent" or the "Company", 00700.hk), a leading provider of Internet value added services in China, today announced the unaudited consolidated results for the first quarter of 2017 ended March 31, 2017 ("1Q2017″).

Key Highlights:

  • Total revenues were RMB49,552 million (USD7,182 million[1]), an increase of 55% over the first quarter of 2016 ("YoY").
  • Operating profit was RMB19,272 million (USD2,793 million), an increase of 44% YoY. Operating margin decreased to 39% from 42% last year.
  • Profit for the period was RMB14,548 million (USD2,109 million), an increase of 57% YoY. Net margin was 29%, the same as the first quarter of 2016.
  • Profit attributable to equity holders of the Company for the period was RMB14,476 million (USD2,098 million), an increase of 58% YoY.
  • Basic earnings per share were RMB1.540. Diluted earnings per share were RMB1.522.
  • On a non-GAAP basis, excluding share-based compensation, net (gains)/losses from investee companies, amortisation of intangible assets and impairment provision:
    • Operating profit was RMB18,520 million (USD2,684 million), an increase of 37% YoY. Operating margin decreased to 37% from 42% last year.
    • Profit for the period was RMB14,372 million (USD2,083 million), an increase of 42% YoY. Net margin decreased to 29% from 32% last year.
    • Profit attributable to equity holders of the Company for the period was RMB14,211 million (USD2,060 million), an increase of 42% YoY.
    • Basic earnings per share were RMB1.512. Diluted earnings per share were RMB1.494.

Mr. Ma Huateng, Chairman and CEO of Tencent, said, "We delivered a strong set of operating and financial results for the first quarter of 2017. Financially, our smart phone games, payment related services, digital content subscriptions, PC games and social advertising businesses all contributed to our broad-based revenue growth. Operationally, our entertainment services benefited from the Chinese New Year holiday, and several of our products achieved notable growth during the quarter. These include our video platform which featured popular original content, as well as newer products such as our karaoke app WeSing, our photo editing app Pitu, and our mobile games such as Honour of Kings. We will continue to invest in new technologies, quality content and innovative products to bring increasingly better experiences to our users."

1Q2017 Financial Review

Value Added Services ("VAS"). Revenues increased by 41% to RMB35,108 million for 1Q2017 on a YoY basis. Online games revenues grew by 34% YoY to RMB22,811 million. The increase mainly reflected higher revenues from both smart phone games (such as Honour of Kings and Dragon Nest Mobile) and PC client games (such as LoL and DnF). Social networks revenues grew by 56% YoY to RMB12,297 million. The increase primarily reflected revenue growth from digital content services, including digital music, video, and literature services, and from virtual item sales.

Online advertising. Revenues increased by 47% to RMB6,888 million for 1Q2017 on a YoY basis. In light of the increasingly blurred boundaries between performance-based advertising and brand display advertising, and advertisers increasingly purchasing performance ads on traditionally brand-oriented inventories, we have reclassified online advertising revenues by advertising properties, rather than advertising pricing models.

Media advertising revenues (mainly including those generated from our news, video and music properties) increased by 20% YoY to RMB2,509 million, primarily reflecting growth in revenues from our mobile media platforms, Tencent News and Tencent Video. Social and others advertising revenues(mainly including those generated from our social properties, app store, browser and ad networks) grew by 67% YoY to RMB4,379 million, mainly driven by higher advertising revenues derived from Weixin Moments, Weixin Official Accounts, our app store, and our mobile browser.

Others. Revenues increased by 224% to RMB7,556 million for 1Q2017 on a YoY basis. The increase was primarily driven by higher revenues from our payment related and cloud services.

Other Key Financial Information for 1Q2017

Share-based compensation was RMB1,339 million, up 89% YoY.
EBITDA was RMB19,995 million, up 40% YoY. Adjusted EBITDA was RMB21,300 million, up 42% YoY.

Capital expenditure was RMB2,108 million, down 49% YoY. 
Free cash flow was RMB24,229 million, up 74% YoY.

As at March 31, 2017, Net cash position totaled RMB27,572 million. Fair value of our stakes in listed investee companies (both associates and available-for-sale financial assets) totalled RMB112 billion as at March 31, 2017.

Business Review and Outlook

Operating Information

  • Monthly active user accounts ("MAU") of QQ was 861 million, a decrease of 2% YoY.
  • Smart device MAU of QQ[2] was 678 million, the same as last year.
  • Peak concurrent user accounts ("PCU") of QQ (for the quarter) was 266 million, an increase of 3% YoY.
  • Combined MAU of Weixin and WeChat were 938 million, an increase of 23% YoY.
  • MAU of Qzone was 632 million, a decrease of 3% YoY.
  • Smart device MAU of Qzone[3] was 605 million, the same as last year.
  • Fee-based VAS registered subscriptions were 119 million, an increase of 10% YoY.

Social and Communication

  • QQ: Smart device MAU was broadly stable YoY, while PCU including PC and mobile increased by 3% to 266 million. As a new generation of users come online, we seek to address their needs by sharpening QQ’s focus on young people. For example, we introduced Kandian, which recommends personalised content to young QQ users based on their interest graphs and big data analytics. We also enriched our QQ Smart Campus service, providing tools to support the administration of college student affairs, facilitate school-student communication, pay tuition fees and host job listings.
  • Qzone: Smart device MAU was flat YoY. We continued to increase user engagement through refining functionalities in live broadcasting and search.
  • Weixin and WeChat: MAU reached 938 million, representing YoY growth of 23%. We have been nurturing the adoption of Mini Programs by introducing more developer-friendly features such as DIY scannable code, embedded links in Weixin Official Accounts, and Mini Programs discoverable based on location. We launched the Weixin Index which enables users to analyse the popularity of keywords within Weixin Official Accounts.

Online Games

For PC client games, we achieved approximately RMB14.1 billion revenue and generated 24% YoY revenue growth, with increased contributions from key titles such as LoL, DnF, and FIFA Online 3, supported by seasonal expansion packs, promotional activities and eSports events. Paying users ratio increased on a YoY basis.

For smart phone games, we achieved approximately RMB12.9 billion revenue[4], representing 57% YoY growth, driven by existing and new games such as Honour of Kings, CF Mobile and Dragon Nest Mobile. 

Digital Content

Digital content revenue recorded rapid growth during the quarter, as users were increasingly willing to pay for content, and as the copyright environment continued to improve.

Our video subscriptions revenue more than tripled YoY, driven by in-house productions such as Candle in the Tomb, and licensed content such as Country Romance 9.

For the QQ Music streaming service, we upgraded the listening and sharing experience with enhanced features in user-generated playlists, search and our music video player. WeSing, our karaoke app, saw significant growth in active users and paying users, benefitting from upgraded features such as singing contests with friends and the addition of higher-grossing virtual gifting items.

For online literature, we maintained our position as the leading online content library and publishing platform, with healthy growth in the number of daily paying readers.

Online Advertising

During 1Q2017, our advertising business delivered robust expansion, with Tencent Video and Tencent News being the key contributors to YoY growth for our media advertising business; and Weixin properties for our social and others advertising business.

Our news services maintained industry leadership in terms of DAU, and our video business ranked first in China in terms of mobile video views.

We upgraded our neighbourhood LBS advertising in Weixin Moments, enabling advertisers to more precisely target customers within their vicinity, which is particularly attractive to advertisers such as wedding suppliers and home decoration vendors.

Others

We generated 224% YoY revenue growth, driven mainly by payment related services and cloud services.

For other detailed disclosure, please refer to our website www.tencent.com/ir, or follow us via Weixin Official Account (Weixin ID: Tencent_IR).

About Tencent

Tencent uses technology to enrich the lives of Internet users. Our social products Weixin and QQ link our users to a rich digital content catalogue including games, video, music and books. Our proprietary targeting technology helps advertisers reach out to hundreds of millions of consumers in China.  Our infrastructure services including payment, security, cloud and artificial intelligence create differentiated offerings and support our partners’ business growth.  Tencent invests heavily in people and innovation, enabling us to evolve with the Internet.   

Tencent was founded in Shenzhen, China, in 1998.  Shares of Tencent (00700.hk) are traded on the Main Board of the Stock Exchange of Hong Kong. 

For investor and media enquiries, please contact:

Jane Yip

Tel: (86) 755 86013388 ext 68961/ (852) 3148 5100

Email: [email protected]

Stella Lui 

Tel: (86) 755 86013388 ext 68870/ (852) 3148 5100

Email: [email protected]

Kennis Lau

Tel: (86) 755 86013388 ext 68958/ (852) 3148 5100

Email: [email protected]

Non-GAAP Financial Measures

To supplement the consolidated results of the Group prepared in accordance with IFRS, certain additional non-GAAP financial measures (in terms of, operating profit, operating margin, profit for the period, net margin, profit attributable to equity holders of the Company, basic EPS and diluted EPS), have been presented in this press release. These unaudited non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of the Group’s financial performance prepared in accordance with IFRS. In addition, these non-GAAP financial measures may be defined differently from similar terms used by other companies.

The Company’s management believes that the non-GAAP financial measures provide investors with useful supplementary information to assess the performance of the Group’s core operations by excluding certain non-cash items and certain impact of M&A transactions. In addition, non-GAAP adjustments include relevant non-GAAP adjustments for the Group’s material associates based on available published financials of the relevant material associates, or estimates made by the Company’s management based on available information, certain expectations, assumptions and premises.

Forward-Looking Statements

This press release contains forward-looking statements relating to the business outlook, forecast business plans and growth strategies of the Company.  These forward-looking statements are based on information currently available to the Company and are stated herein on the basis of the outlook at the time of this press release.  They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control.  These forward-looking statements may prove to be incorrect and may not be realised in future.  Underlying the forward-looking statements is a large number of risks and uncertainties.  Further information regarding these risks and uncertainties is included in our other public disclosure documents on our corporate website.

CONSOLIDATED INCOME STATEMENT

RMB in million, unless specified

Unaudited

Unaudited

1Q2017

1Q2016

1Q2017

4Q2016

Revenues

49,552

31,995

49,552

43,864

    VAS

35,108

24,964

35,108

29,191

  Online advertising

6,888

4,701

6,888

8,288

    Others

7,556

2,330

7,556

6,385

Cost of revenues

(24,109)

(13,406)

(24,109)

(20,238)

Gross profit

25,443

18,589

25,443

23,626

Gross margin

51%

58%

51%

54%

Interest income

808

703

808

653

Other gains, net

3,191

506

3,191

1,022

Selling and marketing expenses

(3,158)

(2,032)

(3,158)

(4,462)

General and administrative expenses

(7,012)

(4,368)

(7,012)

(6,909)

Operating profit

19,272

13,398

19,272

13,930

Operating margin

39%

42%

39%

32%

Finance costs, net

(691)

(491)

(691)

(483)

Share of losses of associates and joint ventures

(375)

(1,089)

(375)

(522)

Profit before income tax

18,206

11,818

18,206

12,925

Income tax expense

(3,658)

(2,550)

(3,658)

(2,402)

Profit for the period

14,548

9,268

14,548

10,523

Net margin

29%

29%

29%

24%

Attributable to:

    Equity holders of the Company

14,476

9,183

14,476

10,529

    Non-controlling interests

72

85

72

(6)

Non-GAAP profit attributable to equity holders
    of the Company

14,211

10,032

14,211

12,332

Earnings per share for profit attributable
    to equity holders of the Company
    
(in RMB per share)

– basic

1.540

0.981

1.540

1.121

– diluted

1.522

0.970

1.522

1.108

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

RMB in million, unless specified

Unaudited

1Q2017

1Q2016

Profit for the period

14,548

9,268

Other comprehensive income, net of tax:

Items that may be subsequently reclassified to profit or loss

Share of other comprehensive income of associates

111

8

Net gains/(losses) from changes in fair value of available-for-sale financial assets

7,226

(1,653)

Transfer to profit or loss upon disposal of available-for-sale financial assets

(1,832)

Currency translation differences

(985)

(214)

Other fair value gains/(losses)

59

(139)

Items that may not be subsequently reclassified to profit or loss

Other fair value losses

(343)

(262)

Total comprehensive income for the period

18,784

7,008

Attributable to:

    Equity holders of the Company

18,717

6,920

    Non-controlling interests

67

88

 

 

 

OTHER FINANCIAL INFORMATION

RMB in million, unless specified

Unaudited

1Q2017

4Q2016

1Q2016

EBITDA (a)

19,995

16,775

14,329

Adjusted EBITDA (a)

21,300

18,495

15,004

Adjusted EBITDA margin (b)

43%

42%

47%

Interest expense

667

611

477

Net cash (c)

27,572

18,140

27,429

Capital expenditures (d)

2,108

2,839

4,105

Note:

(a)      EBITDA consists of operating profit less interest income and other gains/losses, net, and plus depreciation of property, plant and equipment as well as investment properties, and amortisation of intangible assets. Adjusted EBITDA consists of EBITDA plus equity-settled share-based compensation expenses.

(b)      Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues.

(c)      Net cash represents period end balance and is calculated as cash and cash equivalents, term deposits and others, minus borrowings and notes payable.

(d)    Capital expenditures consist of additions (excluding business combinations) to property, plant and equipment, construction in progress, land use rights and intangible assets (excluding online game and other content licences).

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
RMB in million, unless specified

Unaudited

Audited

31 March 2017

31 December 2016

ASSETS

Non-current assets

Property, plant and equipment

14,708

13,900

Construction in progress

4,819

4,674

Investment properties

847

854

Land use rights

5,147

5,174

Intangible assets

36,338

36,467

Investments in associates

69,983

70,042

Investments in redeemable instruments of associates

14,161

9,627

Investments in joint ventures

696

630

Available-for-sale financial assets

97,527

83,806

Prepayments, deposits and other assets

7,499

7,363

Other financial assets

1,813

1,760

Deferred income tax assets

7,536

7,033

Term deposits

5,414

5,415

266,488

246,745

Current assets

Inventories

263

263

Accounts receivable

12,900

10,152

Prepayments, deposits and other assets

17,579

14,118

Other financial assets

2,253

1,649

Term deposits

66,631

50,320

Restricted cash

763

750

Cash and cash equivalents

68,861

71,902

169,250

149,154

Total assets

435,738

395,899

 

 

 


CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)

RMB in million, unless specified

Unaudited

Audited

31 March 2017

31 December 2016

EQUITY

Equity attributable to equity holders of the Company equity holders

Share capital

Share premium

18,524

17,324

Shares held for share award schemes

(3,332)

(3,136)

Other reserves

27,892

23,693

Retained earnings

151,219

136,743

194,303

174,624

Non-controlling interests

11,384

11,623

Total equity

205,687

186,247

LIABILITIES

Non-current liabilities

Borrowings

62,935

57,549

Notes payable

31,879

36,204

Long-term payables

4,422

4,935

Other financial liabilities

2,560

2,576

Deferred income tax liabilities

5,515

5,153

Deferred revenue

1,650

2,038

108,961

108,455

Current liabilities

Accounts payable

32,804

27,413

Other payables and accruals

17,998

20,873

Borrowings

11,889

12,278

Notes payable

7,581

3,466

Current income tax liabilities

6,551

5,219

Other tax liabilities

1,754

745

Deferred revenue

42,513

31,203

121,090

101,197

Total liabilities

230,051

209,652

Total equity and liabilities

435,738

395,899

 

 

 

RECONCILIATIONS OF IFRS TO NON-GAAP RESULTS

Adjustments

RMB in million,
unless specified

As

reported

Share-based

compensation (a)

Net (gains)/losses from investee companies (b)

Amortisation of
intangible assets (c)

Impairment

provision (d)

Non-GAAP

                                            Unaudited three months ended 31 March 2017

Operating profit

19,272

1,339

(2,747)

153

503

18,520

Profit for the period

14,548

1,530

(2,717)

500

511

14,372

Profit attributable to equity holders

14,476

1,483

(2,717)

458

511

14,211

Operating margin

39%

37%

Net margin

29%

29%

                                           Unaudited three months ended 31 December 2016

Operating profit

13,930

1,754

(1,502)

162

602

14,946

Profit for the period

10,523

1,980

(1,440)

541

828

12,432

Profit attributable to equity holders

10,529

1,940

(1,440)

493

810

12,332

Operating margin

32%

34%

Net margin

24%

28%

                                           Unaudited three months ended 31 March 2016

Operating profit

13,398

707

(728)

47

60

13,484

Profit for the period

9,268

898

(786)

356

398

10,134

Profit attributable to equity holders

9,183

889

(786)

348

398

10,032

Operating margin

42%

42%

Net margin

29%

32%

Note:

(a)   Including put options granted to employees of investee companies on their shares and shares to be issued under investee companies’ share-based incentive plans which can be acquired by the Group, and other incentives

(b)   Including net (gains)/losses on deemed disposals, disposals of investee companies and businesses, and fair value changes on options and other financial instruments arising from investments in investee companies

(c)   Amortisation of intangible assets resulting from acquisitions, net of related deferred tax

(d)   Impairment provision for associates, available-for-sale financial assets, and intangible assets arising from acquisitions

 

 

 

Figures stated in USD are based on USD1 to RMB6.8993.

2  

We have adjusted historical smart device MAU figure for QQ so as to include users who only participate in certain activities inside the QQ application, such as Interest Tribe or, more recently, listening to online music and reading online literature. These changes had a relatively immaterial impact on the MAU count and growth rates, but we feel that they better reflect the broadening range of user activities within QQ.

3  

We have adjusted historical smart device MAU figure for Qzone so as to better reflect user behaviour on Qzone via smart devices.

4

Including smart phone games revenue attributable to our social networks business.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/tencent-announces-2017-first-quarter-results-300459182.html

CDIB Capital Hires Three Senior Employees From SMC Capital

CDIB Capital International Co, the private equity arm of Taiwan-based China Development Financial Holding Co., has hired Hamilton Tang (pictured), former managing partner at SMC Capital China as managing partners at its Hong Kong office, and Xie Yinghai, an SMC Capital partner, as managing partners in Shanghai.

EXPO 2017 ASTANA: Foton Motor Becomes the Sole Designated Vehicle Supplier of China Pavilion

BEIJING, May 17, 2017 /PRNewswire/ — On May 12, 2017, "Foton Motor Group Signing Ceremony as Expo 2017 Astana — China Pavilion Sponsor" was held at the headquarters of Foton Motor Group. As the "Gold Sponsor" of China Pavilion of this World Expo, Foton Motor will provide TOANO, AUV, SAUVANA automobiles as the sole designated vehicles of China Pavilion.

Foton Motor Group is the "Gold Sponsor" for Expo 2017 Astana China Pavilion; Mr. Wang Jinzhen (left), Deputy Director of the China Pavilion Organizing Committee and Vice-chairman of the CCPIT; Mr. Chang Rui (right), VP of Foton Motor Group, President of Foton International

Foton Motor Group is the "Gold Sponsor" for Expo 2017 Astana China Pavilion; Mr. Wang Jinzhen (left), Deputy Director of the China Pavilion Organizing Committee and Vice-chairman of the CCPIT; Mr. Chang Rui (right), VP of Foton Motor Group, President of Foton International

Based on the green environmental protection standards, Foton Motor will send SAUVANA, TOANO and AUV products to serve the China Pavilion at Expo 2017 Astana. All products have successfully served international conferences and events multiple times. SAUVANA was first "challenged" by Dakar Rally and smoothly completed the competition in 2016; TOANO transported the heads of states during the 70th anniversary of the V-day in 2015 and served as the state guest vehicle during G20 Summit in 2016 as well as its official vehicle. FOTON AUV buses served high-ranking government officials, state guests and journalists with zero malfunctions.

Foton Motor designated vehicles of China Pavilion Expo 2017 ASTANA: SAUVANA(left), AUV(middle), TOANO(right)

Foton Motor designated vehicles of China Pavilion Expo 2017 ASTANA: SAUVANA(left), AUV(middle), TOANO(right)

Expo 2017 Astana will take place from June 10 to September 10, 2017. The theme is "Future Energy". It will be one of the biggest pavilions at the Expo and the theme of the China Pavilion is "Future Energy, Green Silk Road". As the forerunner of this initiative, Foton Motor was one of the earliest Chinese enterprises to begin developing in overseas markets. It has realized global industrialization operations and has made outstanding achievements in "Belt & Road" countries.

As the most technologically representative urban transport projects in Kazakhstan and throughout Central Asia, the Astana automatic unmanned light rail project is China and Kazakhstan’s model project under the "Belt & Road " initiative. At present, Foton Motor has cooperated with the project contractor to provide relevant engineering machinery, heavy duty truck products and support services.

In addition, Foton AUV coach & bus has successfully won a 1,000 unit order of clean energy buses from a client in Myanmar, making it the largest Southeast Asia bus export contract since China was founded.

The first batch of the FOTON AUV 1000 bus order for Myanmar have arrived

The first batch of the FOTON AUV 1000 bus order for Myanmar have arrived

Furthermore, Foton Motor will rely on scientific and technological innovation to localized operations. Supported by technologies and operation experience of two joint ventures, namely, Beijing Foton Daimler Automotive Co., Ltd. (BFDA) and Beijing Foton Cummins Engine Co., Ltd (BFCEC), Foton Motor will implement its globally leading automobile manufacturing and operation standards to other regions with its business. It will, when offering high value-added products and services to local users, serve as the forerunner of "intelligent manufacturing in China", and the internationally leading automobile enterprise driven by technology.

Photo – https://photos.prnasia.com/prnh/20170517/1854114-1-a
Photo – https://photos.prnasia.com/prnh/20170517/1854114-1-b
Photo – https://photos.prnasia.com/prnh/20170517/1854114-1-c

CA Technologies Launches New CA Advantage Partner Program

Hong Kong, China, May 17, 2017 /ChinaNewswire.com/ – Hong Kong, May 11, 2017 — CA Technologies (NASDAQ: CA) announced the new CA Advantage Partner Program that reflects partners’ desires for simplicity, profitability, protection and competitive differentiation. The partner program evolution is driven by CA’s strategic aim to accelerate growth through focused route-to-market strategies, while delivering… Read More

New CA Technologies Payment Security Solution Reduces Online Fraud Loss by 25 Percent

Hong Kong, China, May 17, 2017 /ChinaNewswire.com/ – Hong Kong – May 17, 2017 – CA Technologies (NASDAQ:CA) today announced CA Risk Analytics Network, the payment industry’s only card-issuer network that stops card-not-present fraud instantly for network members using real-time behavior analytics, machine learning and global transaction data to reduce online fraud losses by an… Read More

CreditEase’s Tang Joins Oxford Said’s New Global Leadership Council

BEIJING, May 17, 2017 /PRNewswire/ — CreditEase announces today that its founder and CEO Ning Tang has been appointed to the University of Oxford’s Said Business School’s ("Oxford Said") new Global Leadership Council. This council of senior global leaders will provide independent advice and guidance to the school.

"I am humbled to be appointed to Oxford Said‘s Global Leadership Council and excited to be an active contributor to the school’s mission as it strives ahead." enthuses Ning Tang, founder and CEO, CreditEase. "I look forward to working with the global leaders on the council, giving advice and providing insights to help foster forward thinking in addressing the world-scale challenges we face today."

Said Business School is a vibrant and innovative business school embedded in the historic and prestigious University of Oxford. The school offers programs and research opportunities that have global impact and help individuals and organizations find ideas and valuable network to tackle world-wide problems. As one of the fastest growing business schools in the world, the school is ranked 1st in the UK in the FT’s ranking of open enrollment programs in 2016, and 2nd globally for aims achieved in the FT ranking of MBA programs in 2017.

The school’s stated objective is to work with the broader University to address the most pressing challenges in business and society. Peter Tufano,Peter Moores Dean, Said Business School explained: "The council will help ensure that our activities remain forward thinking and relevant, to meet our mission of developing leaders with a thorough understanding of business and importantly, its broader role in society. We are very grateful to the leaders who have joined the council – their advice and insights will be invaluable."

The Oxford Said Global Leadership Council will be chaired by Sam Laidlaw, Executive Chairman of Neptune Oil and Gas Limited and former CEO of Centrica. The inaugural group consists of a global network of 28 current or former Chief Executives and Chairs of leading organizations from both the private and public sectors. Other than CreditEase, they also include Apple, Blackrock, McKinsey, L’Oreal, Santander, UBS, and other leading organizations. The Council will help advance the school’s unique business education model as an integral part of the wider University of Oxford. The council will advise on strategy and initiatives that promote the school’s global profile, including its relations with the corporate sector, program development, and research.

In June 2010, Peter Tufano, then Senior Associate Dean and Finance professor at Harvard Business School, first visited CreditEase and spoke with CreditEase’s CEO Ning Tang and some of the company’s employees. The discussion centered on the development of CreditEase’s P2P lending business in China. Tufano tapped into his expertise in finance research and education, and examined the status of international P2P lending and microfinance in his sharing.

In October 2014, Oxford Said hosted the Oxford China Business Forum in Beijing. The forum’s attendees comprised of thought leaders in the academia and global business elites. The conversation revolved around the theme of "Transformational Change in China". CreditEase’s CEO Ning Tang shared his entrepreneurial story and discussed the best practices for growth for innovative companies in China.

About CreditEase:

CreditEase is a leading FinTech company in China, specializing in inclusive finance and wealth management. With continuous efforts to explore payment, marketplace lending, crowdfunding, robo-advisor, insurance tech, blockchain and other frontiers, CreditEase actively engages with global FinTech innovation through business incubation and investment. Better tech, better finance, better world.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/crediteases-tang-joins-oxford-saids-new-global-leadership-council-300459035.html

Zytronic leads in achieving transition to ISO9001:2015 and ISO14001:2015 compliance

Hong Kong, China, May 17, 2017 /ChinaNewswire.com/ – Zytronic, a leader in durable, high performance Projected Capacitive Technology (PCT#8482; and MPCT#8482;) digital display touch sensors announced that it has completed the transition and accreditation of its company quality and environmental management systems to the latest ISO9001:2015 and ISO14001:2015 standards. Commenting, Mark Cambridge, CEO of Zytronic,… Read More

China Digital TV Announces Unaudited First Quarter 2017 Results

BEIJING, May 17, 2017 /PRNewswire/ — China Digital TV Holding Co., Ltd. (NYSE: STV) ("China Digital TV" or the "Company"), a leading provider of cloud platforms, with gaming and other applications embedded, to PRC digital television and telecommunication network operators, today announced its unaudited financial results for the first quarter ended March 31, 2017.

"The first quarter of 2017 was a meaningful quarter in the development of China Digital TV," commented Mr. Jianhua Zhu, China Digital TV’s chief executive officer.  "We are pleased to have achieved increase in both registered and covered users, expanded geographic footprint, and further diversified content offerings in our cloud business. The Company and its Board of Directors are also in the process of reviewing potential opportunities to acquire new operating businesses or assets to further enhance and diversify our current operations."

Mr. Zhenwen Liang, China Digital TV’s chief financial officer, stated, "In the first quarter of 2017, the number of registered and covered users on our cloud platform increased to 5.5 million and 150 million, respectively. Furthermore, we expanded our geographic footprint to Anhui province through the partnership with Anhui Telecom, a branch of China Telecom which covers more than 5.5 million provincial users as of March 31, 2017. Meanwhile, our persistent efforts to diversify content offerings on our cloud platform continued to bear fruit in the first quarter of 2017. In addition to a newly launched public fitness program for square dancing, we have been seeking new opportunities in innovative cloud VR programs and expect to launch VR games in the near future. We will also expand our business into VR museums, VR education, VR videos, and other VR content.  Lastly, during the first quarter we made progress in controlling costs and reducing overall expenses. We remain committed to driving further growth of our business and creating additional shareholders value going forward."

Recent Developments

About Special Cash Dividend

On April 21, 2017, the Board declared a special cash dividend of US$1.50 per ordinary share. The aggregate amount of cash dividend to be paid approximates US$90 million. Shareholders of record as of the close of business on May 31, 2017, U.S. Eastern Daylight Time, will be eligible to receive the dividend. The payment date of this special cash dividend is expected to be on or about June 15, 2017. The funds for the dividend, all of which have been received by the Company, will come from the proceeds previously received from the Beijing Super TV sale, after certain foreign currency exchange procedures are completed. So far, the Company’s offshore account has received a portion of the proceeds in US dollars equivalent to 100 million Renminbi. The remaining proceeds are still in the procedures of currency exchange from Renminbi to US dollars. If the Company is unable to pay the dividend due to the  foreign currency conversion, the Company commits to update the market with a new special dividend payment date as soon as possible.

About NYSE Continued Listing Status

As previously disclosed, there has been a significant reduction in the remaining continuing business operations of the Company post the sale of Beijing Super TV asset.  Additionally as previously disclosed the payment of the special cash dividend is expected to reduce both the Company’s market capitalization and shareholders’ equity. Accordingly, there is an increased significant risk of the Company being ineligible for continued listing on the New York Stock Exchange.  The Company is currently reviewing its continued listing eligibility with the New York Stock Exchange  in light of these issues.

First Quarter 2017 Results[1]

China Digital TV’s net revenues decreased by 56.3% to US$0.7 million from US$1.5 million in the prior year period. The decline in net revenues was primarily due to the decreased revenues from system development and system integration, which was partially offset by an increase in revenues from cloud platform operations in the first quarter of 2017.

Cost of revenues decreased by 51.6% to US$0.2 million from US$0.4 million in the prior year period. The decline in cost of revenues was primarily in line with the decline of net revenues in the first quarter of 2017.

Gross profit in the first quarter of 2017 was US$0.5 million, as compared with US$1.1 million in the prior year period. Gross margin, which is equal to gross profit divided by net revenues, was 69.7% in the first quarter of 2017, as compared with 72.7% in the prior year period.

Operating expenses in the first quarter of 2017 decreased by 35.0% to US$2.3 million from US$3.6 million in the prior year period.

  • Research and development expenses in the first quarter of 2017 decreased by 48.1% to US$0.9 million from US$1.8 million in the prior year period. The decline was mainly due to a decrease in personnel related expenses resulting from lower headcount, as well as decreased project expenses.
  • Selling and marketing expenses in the first quarter of 2017 decreased by 26.3% to US$0.5 million from US$0.7 million in the prior year period. The decline was mainly due to a decrease in personnel related expenses.
  • General and administrative expenses in the first quarter of 2017 decreased by 18.6% to US$0.8 million from US$1.0 million in the prior year period. The decline was mainly due to a decrease in personnel related expenses resulting from lower headcount, as well as decreased rental expenses.

Loss from the operation of continuing operations in the first quarter of 2017 decreased by 24.5% to US$1.9 million from US$2.5 million in the prior year period.

Income tax expenses in the first quarter of 2017 was US$0.1 million in the first quarter of 2017, as compared with US$0.05 million in the prior year period.

Net income attributable to China Digital TV Holding Co., Ltd in the first quarter of 2017 was US$0.2 million, as compared with US$1.2 million in the prior year period. The decrease was primarily because the discontinued operations were disposed of in the fourth quarter of 2016.

  • Net income from continuing operations attributable to China Digital TV Holding Co., Ltd was US$0.5 million, as compared with a net loss of US$2.5 million in the prior year period.
  • Net loss from discontinued operations attributable to China Digital TV Holding Co., Ltd was US$0.4 million, as compared with a net income of US$3.6 million in the prior year period.

Non-GAAP net income[2] attributable to China Digital TV Holding Co., Ltd in the first quarter of 2017 was US$0.6 million, as compared with US$1.2 million in the prior year period[3].

Balance Sheet

As of March 31, 2017, China Digital TV had cash and cash equivalents, and term deposits totaling US$125.5 million.

Conference Call Information

China Digital TV’s management will host an earnings conference call at 8:00 p.m. on Tuesday, May 16, 2017, U.S. Eastern Time (8:00 a.m. on Wednesday, May 17, 2017, Beijing/Hong Kong Time).

Conference Call Dial-in Information:

United States Toll Free: +1-888-346-8982
International: +1-412-902-4272
Hong Kong: 800-905945
China Toll Free: 4001-201203
Conference Name: China Digital TV Holding Co. Ltd. call.

A replay of the call will be available for one week between 9:00 p.m. on May 16, 2017 and May 23, 2017, U.S. Eastern Time.

Replay Dial-in Information:

United States: +1-877-344-7529
International: +1-412-317-0088
Replay Access Code: 10106504

Additionally, a live and archived webcast of this call will be available on the Investor Relations section of China Digital TV’s corporate website at http://ir.chinadtv.cn.

About China Digital TV

Founded in 2004, China Digital TV is a leading provider of cloud platforms, with gaming and other applications embedded, to PRC digital television and telecommunication network operators, enabling them to bring these applications to household television sets and other mobile devices.

For more information please visit the Investor Relations section of China Digital TV’s website at http://ir.chinadtv.cn.  

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended.  Such forward-looking statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "may," "should" and similar expressions. Such forward-looking statements include, without limitation, statements regarding the outlook and comments by management in this announcement about trends in the cloud computing, cable television and related industries in the PRC and China Digital TV’s strategic and operational plans and future market positions. China Digital TV may also make forward-looking statements in its periodic reports filed with the Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about China Digital TV’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from projections contained or implied in any forward-looking statement, including but not limited to the following: competition in the cloud computing, cable television and related industries in the PRC and the impact of such competition on prices, our ability to implement our business strategies, changes in technology, the progress of the television digitalization in the PRC, the structure of the cable television industry or television viewer preferences, changes in PRC laws, regulations or policies with respect to the cloud computing, cable television and related industries, including the extent of non-PRC companies’ participation in such industries, and changes in political, economic, legal and social conditions in the PRC, including the government’s policies with respect to economic growth, foreign exchange and foreign investment.

Further information regarding these and other risks and uncertainties is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. China Digital TV does not assume any obligation to update any forward-looking statements, which apply only as of the date of this press release.  

For investor and media inquiries, please contact:

China Digital TV Holding Co., Ltd.
Investor Relations
Tel: +86-10-6297-1199 x 9780
Email: [email protected]

ICR, Inc.
Xueli Song
Tel: +1 (646) 328-1950
Email: [email protected]


[1] Unless otherwise stated, all financial statement measures stated in this press release are based on "U.S. GAAP".

[2] Non-GAAP net income is defined as net income excluding share-based compensation expenses, and amortization of acquired intangible assets from business acquisitions.

[3] For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP measures" set forth at the end of this release.

 

 

China Digital TV Holding Co., Ltd.
Unaudited Condensed Consolidated Statements of Comprehensive Income(Loss)
(in thousands of U.S. dollars, except share and per share data)

    For the three months ended 

March 31,

December 31,

March 31,

2017

2016

2016

Total revenues

$

675

$

782

$

1,540

  Taxes and surcharges

(8)

(4)

(13)

Net revenues

667

778

1,527

Cost of revenues

(202)

(588)

(417)

465

190

1,110

Gross profit

Operating expenses:

  Research and development expenses

(927)

(1,553)

(1,786)

  Selling and marketing expenses

(546)

(898)

(741)

  General and administrative expenses

(843)

(488)

(1,036)

Total operating expenses

(2,316)

(2,939)

(3,563)

Loss from continuing operations

(1,851)

(2,749)

(2,453)

Interest income

641

79

6

Other income/(loss), net

1,509

877

(36)

Income/(loss) before income tax expenses

299

(1,793)

(2,483)

(143)

(51)

(47)

Income tax expenses

Net income/(loss) from continuing operations

156

(1,844)

(2,530)

Discontinued operations

(Loss)/income from the operations of discontinued

(389)

5,165

3,640

 operations, net of income taxes

Gain from disposal of discontinued operations, 

43,190

  net of income taxes

(Loss)/income from discontinued operations, net
   of income taxes

(389)

48,355

3,640

(233)

46,511

1,110

Net (loss)/income

Less: Net (loss)/income attributable to noncontrolling
   interest

(383)

175

(49)

Net income attributable to China Digital TV Holding
   Co., Ltd.

$

150

$

46,336

$

1,159

Amounts attributable to ordinary shareholders of
   China Digital TV Holding Co., Ltd:

Net income/(loss) from continuing operations 

539

(1,333)

(2,481)

Net (loss)/income from discontinued operations 

(389)

47,669

3,640

Net income attributable to China Digital TV
   Holding Co., Ltd. 

$

150

$

46,336

$

1,159

Net (loss)/income

$

(233)

$

46,511

$

1,110

Foreign currency translation adjustment

125

(2,680)

566

Reclassification of foreign currency translation
   adjustment

(16,685)

(108)

27,146

1,676

Comprehensive (loss)/income

Less: Comprehensive loss attributable to
   noncontrolling interest

(398)

(120)

(37)

$

290

$

27,266

$

1,713

Comprehensive income attributable to

   China Digital TV Holding Co., Ltd.

Earnings/(loss) per share:

Basic earnings/ (loss) per share attributable to
   ordinary shareholders of China Digital TV
   Holding Co., Ltd.:

Net income/(loss) from continuing operations

0.01

(0.02)

(0.04)

Net (loss)/income from discontinued operations

(0.01)

0.79

0.06

Net income

$

0.00

$

0.77

$

0.02

Diluted earnings/ (loss) per share attributable to
   ordinary shareholders of China Digital TV
   Holding Co., Ltd.:

Net income/(loss) from continuing operations 

0.01

(0.02)

(0.04)

Net (loss)/income from discontinued operations

(0.01)

0.79

0.06

Net income

$

0.00

$

0.77

$

0.02

Weighted average shares used in calculating
   earnings/(loss) per ordinary share:

Basic

60,288,300

60,233,803

60,177,208

Diluted

60,689,982

60,233,803

60,177,208

 

 

 

China Digital TV Holding Co., Ltd.
Unaudited Condensed Consolidated Balance Sheets
(in thousands of U.S. dollars)

ASSETS

March 31,

December 31,

2017

2016

Current assets:

Cash and cash equivalents 

$

123,138

$           117,292

Restricted cash

4,753

Term deposits

2,357

2,344

Notes receivable

81

81

Accounts receivable, net

401

500

Inventories

47

4

Prepaid expenses and other current assets 

1,205

1,611

Total current assets  

127,229

126,585

Property and equipment, net  

391

421

Intangible assets, net

242

258

Goodwill 

661

655

Deferred income tax assets

52

TOTAL ASSETS 

 

128,523

127,971

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable 

200

445

Accrued expenses and other current liabilities  

2,029

2,557

Deferred revenue and deferred income – current 

2,266

1,382

Income tax payable 

54

Government subsidies – current

57

81

Total current liabilities 

4,606

4,465

Deferred revenue – non-current 

120

125

Government subsidies – non-current

313

310

Total liabilities   

5,039

4,900

Ordinary shares

30

30

Additional paid-in capital

45,744

45,273

Statutory reserve

88

88

Retained earnings

75,254

75,104

Subscription receivable

(602)

(596)

Accumulated other comprehensive loss

(149)

(289)

Total China Digital TV Holding Co., Ltd. shareholders’ equity

120,365

119,610

Noncontrolling interest

3,119

3,461

Total equity

123,484

123,071

TOTAL LIABILITIES AND EQUITY

$

128,523

$           127,971

 

Reconciliation of Non-GAAP Measures

Non-GAAP net income attributable to China Digital TV Holding Co., Ltd. shareholders excludes share-based compensation expenses, and amortization of intangible assets acquired from business acquisitions. The Company believes that the Non-GAAP net income provides meaningful supplemental information regarding the Company’s performance by excluding certain non-cash expenses that may not be indicative of its operating performance from a cash flow perspective. The Company believes that both management and investors benefit from referring to this additional information in assessing the Company’s performance and when planning and forecasting future periods.

However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP.

 

For the three months ended  

March31,

December 31,

March 31,

2017

2016

2016

(in thousands of U.S. dollars)

Net income attributable to China Digital TV
   Holding Co., Ltd. shareholders – GAAP

$

150

$

46,336

$

1,159

Share-based compensation expenses

465

590

10

Amortization of intangible assets from business
   acquisitions

10

11

12

Net income attributable to China Digital TV
   Holding Co., Ltd. shareholders – Non-GAAP

$

625

$

46,937

$

1,181

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/china-digital-tv-announces-unaudited-first-quarter-2017-results-300458881.html

SkyPeople Fruit Juice Reports First Quarter 2017 Financial Results

XI’AN, China, May 17, 2017 /PRNewswire/ — SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced its financial results for the first three months ended March 31, 2017.

First Quarter 2017 Summary:

  • Total revenue was $3.0 million
  • Gross profit was $0.5 million
  • Gross profit margin was 18%
  • Net loss attributable to SkyPeople Fruit Juice, Inc. stockholders was $2.6 million
  • Cash, cash equivalents and restricted cash were $2.5 million as of March 31, 2017

"We recorded lower than expected operating results due to a decrease in sales from apple product segment which has been experiencing a severe contraction in supply and an erosion in market pricing which has forced us to limit production. A limited supply of available fresh fruit due to volatile weather conditions led to a difficult growing season for our other product categories. Also, online discounting has been disruptive to our normal retail distribution model for our fruit juice segment," said Mr. Hongke Xue, Chief Executive Officer of SkyPeople.

"To address raw materials supply shortages, we are building a vertically integrated supply chain to help ensure a steady supply of fresh fruit. As major initiatives, we will be growing kiwi and oranges for processing through our acquisition and leasing of orchards in Mei County and Yidu, Hubei Province, respectively. The new orchards will help secure fresh fruit for our key kiwi product segment, diversify our product offerings and strengthen our competitive positioning. We will employ modern agricultural techniques to optimize our production output and look to enhance our margins through best practices commodities management," continued Mr. Hongke Xue.

"We are beginning to generate orders from several of the online e-commerce platforms where we are currently marketing with particular focus on our fruit juice beverage products. We plan to aggressively pursue this distribution channel to regain our market share and our previous volume metrics. We also expect important synergies to develop from our logistics trading center in Mei County that constitutes an important commercial and logistics complex for all of our operating businesses."

"We appreciate the support of our shareholders as we build our business into a dynamic world-class company with new capabilities that include e-commerce platforms, big data analytics, commodities trading, innovative finance, international trade, and industrial integration and management services. Our vision is to broaden and diversify our core business with high margin growth opportunities to generate a sustainable income stream for many years to come," Mr. Hongke Xue concluded.

First Quarter 2017 Financial Results

Revenue for the three months ended March 31, 2017 was $3.0 million, as compared to revenue of $5.4 million for the first three months of 2016. This decrease was primarily due to a decrease in sales in the concentrated apple juice and apple aroma business segment partially offset by increased revenues from the concentrated kiwifruit juice and kiwifruit puree, concentrated pear juice and fruit juice beverages segments.

Fiscal Year Revenue by Segment (in thousands)

(In $000’s, except %’s)

Quarter Ended March 31,

2017

2016

% of change

Concentrated apple juice and apple aroma

1,019

5,259

(81%)

Concentrated kiwifruit juice and kiwi puree

195

16

NMF

Concentrated pear juice

923

157

488%

Fruit juice beverages

822

2

NMF

Other – fruit related products

2

NMF

Total

2,959

5,436

(46%)

NMF = Not meaningful figure

Revenue by Segment. Sales from apple-related products were $1.0 million for the three months ended March 31, 2017, as compared to sales of $5.3 million for the same period of 2016. During the first three months of 2017, the Company sold approximately 1,160 tons of concentrated apple juice and apple aroma as compared to 4,796 tons of apple-related products sold in in the same period of 2016. Most of our concentrated apple juice was sold directly or indirectly to the international market. According to the data provided by the Chinese Customs, the amount of exported concentrated apple juice from China declined by 11.9% in the first two months of year 2017 as compared to the same period of 2016. Over the past three years, the purchase price of fresh apples has increased, but the sales price of concentrated apple related products has remained low. Because of the negative trends in the international market, and lower operating margins, our YingKou and Huludao Wonder factories did not operate their apple juice production facilities in fiscal 2016 which resulted in a lower inventory of concentrated apple juice.

Sales from concentrated kiwifruit juice and kiwifruit puree were $0.2 million for the three months ended March 31, 2017, as compared to sales of $16,000 for the same period of 2016. The increase was due to an increase in products sold in the first quarter of 2017 as compared to same period of 2016 due to a rise in customer demand.

Sales of concentrated pear juice were $0.9 million for the three months ended March 31, 2017, as compared to sales of $0.2 million for the same period of 2016. During the first three months of 2017, the Company sold approximately 1,160 tons of concentrated pear juice as compared to 199 tons concentrated pear juice sold in the same period of 2016. The increase in sales was mainly due an improved inventory of concentrated pear juice in the first quarter of 2017.

Sales from our fruit juice beverages segment were $0.8 million for the three months ended March 31, 2017, as compared to sales of $2,000 for the same period of 2016. The increase in revenues was primarily due to an increase in advertising and marketing which resulted in increased sales.

Sales from our other – fruit related products segment were nil for the three months ended March 31, 2017, as compared to sales of $2,000 for the same period of 2016. The amount of sales in this business segment is expected to be unstable and is generally not indicative of this segment’s future sales.

Gross Profit. Gross profit was $0.5 million for the three months ended March 31, 2017, as compared to $43,000 for the same period of 2016, mainly due to an increase in the gross profit of the fruit juice beverage and concentrated pear juice segments. The consolidated gross profit margin was 18% for the three months ended March 31, 2017 as compared to 1% for the same period of 2016 primarily due to the higher period-over-period gross margin of these same segments partially offset by the gross profit margin of the concentrated apple juice segment. The Company did not have any inventory of concentrated apple juice during the first quarters of 2017 and 2016 and had to purchase concentrated apple juice at prevailing market prices to satisfy customer demand, which resulted in a low gross margin for both periods. The gross profit margin of the concentrated kiwifruit juice and kiwifruit puree segment was 23% for the first quarter of 2017 as compared to a negative 48% for the same period of 2016, primarily due to an increase in production during the first quarter of 2017.

Quarter Ended March 31,

(In $000’s, except %’s)

2017

2016

Gross
profit

Gross
margin

Gross
profit

Gross
margin

Concentrated apple juice and apple aroma

29

3%

45

1%

Concentrated kiwifruit juice and kiwi puree

45

23%

(8)

(48%)

Concentrated pear juice

126

14%

4

2%

Fruit juice beverages

335

41%

1

26%

Other – fruit related products

1

NMF

Total

535

18%

43

1%

NMF = Not meaningful figure

Operating expenses for the three months ended March 31, 2017 were $3.1 million, as compared to $1.5 million for the same period of 2016. General and administrative expenses increased to $2.9 million for the first quarter of 2017 as compared to $0.7 million for the same period of 2016, mainly due to an increase in the amortization cost of intangible assets in the first quarter of 2017 as compared to the same period of 2016. The Company began the amortization of land lease rights in Hedetang Foods Industry (Yidu) Co, Shaanxi Guoweimei Kiwi Deep Processing Company and Trading Market Mei County beginning in the fourth quarter of 2016. Selling expenses decreased to $0.2 million for the first quarter of 2017, as compared to $0.9 million for the same period of in 2016, mainly due to the reduced amount of sales in the current quarter.

Loss from continuing operations after taxes for the three months ended March 31, 2017 was $2.6 million, as compared to loss from continuing operations of $1.1 million for the same period of 2016. The increase in loss from operations was mainly due to the 46% decrease in revenue and a substantial increase in total operating expenses due to an increase in the amortization cost of intangible assets in the current quarter.

Net loss attributable to SkyPeople Fruit Juice shareholders for the three months ended March 31, 2017 was $2.6 million, as compared to net loss of $1.1 million for the same period of 2016. Diluted loss per share from continued operations was $0.62 for the first quarter of 2017 as compared to diluted earnings per share from continued operations of $0.30 for the same period of 2016.

Financial Condition

As of March 31, 2017, the Company had $2.5 million in cash, cash equivalents and restricted cash, an increase from $1.1 million as of December 31, 2016. The Company had working capital of $23.7 million as of March 31, 2017 as compared to working capital of $24.7 million as of December 31, 2016. As of March 31, 2017, the Company had total liabilities of $94.6 million, which included $29.5 million in short-term bank loans and $16.6 million in capital lease obligations. Stockholders’ equity attributable to SkyPeople Fruit Juice was $133.0 million as of March 31, 2017 as compared to $135.0 million as of December 31, 2016.

During the first quarter of 2017, net cash used in the Company’s operating activities was $0.8 million, as compared to net cash provided by operating activities of $0.4 million for the same period of 2016. Net cash used in investing activities were $0.1 million for the first three months of 2017 as compared to net cash used in investing activities of $2.8 million for the same period of 2016. Cash generated by the Company’s financing activities was $2.0 million for the first three months of 2017 as compared to cash a net cash inflow of $4.0 million for the same period of 2016. The Company expects projected cash flows from operations, anticipated cash receipts, cash on hand, and trade credit will provide the necessary capital to meet its projected operating cash requirements for at least the next twelve months, which does not take into account any potential expenditures related to the potential expansion of its current production capacity.

Project Updates

The Company entered into a Letter of Intent with the People’s Government of Suizhong County fruit to establish a fruit and vegetable industry chain and processing zone in Suizhong County, Liaoning Province, China. The Company has made partial payment to acquire the land use right from the local government, purchase equipment and build facilities. As of the date of this report, the Company has finished construction of an office building, dormitory, refrigeration storage facility and a warehouse. However, due to heavy competition in the concentrated fruit juice business in China, construction work on this project is currently suspended.

The Company is developing an orange processing and distribution center pursuant to its investment/service agreement with the Yidu Municipal People’s Government in Hubei Province, China. Pursuant to the agreement, the Company will be responsible for an investment amount of approximately $48 million which will be mainly used to establish the distribution center and the orange processing facility on project land of approximately 280 mu (approximately 46 acres). Also, the Company and the Yidu Municipal People’s Government has agreed to discuss the investment amount and location associated with establishing an R&D center and an orange plantation. On November 23, 2015, the Company started the construction of the Yidu project. The Company plans to finish the construction of the infrastructure of office building, R&D center, fruit juice production facility, cold storage facility and other construction work in the second quarter of 2017. The orange plantation is planned to be operational in the second quarter of 2017 and the distribution center is planned to be completed by the fourth quarter of 2017.

The Company is developing a kiwi processing and trading center pursuant to its investment agreement with the Managing Committee of Mei County National Kiwi Fruit Wholesale Trading Center, which has been authorized by the People’s Government of Mei County, China. Pursuant to the agreement, the Company will be responsible for construction and financing with an investment amount of approximately $72 million for buildings and equipment on a total planned area of 286 mu (approximately 47 acres).   As of the date of this report, the Company is in the process of building fruit juice production lines, a vegetable and fruit flash freeze facility, an R&D center and an office building. The Company plans to complete the construction of these facilities in the second quarter of 2017.

As of the date of this report, the Mei County National Kiwi Fruit Wholesale Trading Center has started normal operations. There are a number of enterprises operating in the trading center including 12 express delivery companies, 12 logistic companies, four on-line sales companies, two packing companies and three agriculture companies. In addition, all government departments that are relevant to the operations of the Mei County National Kiwi Fruit Wholesale Trading Center have moved into the trading center. The Company is expected to have completed its investment in the trading center in the second quarter of 2017, and believes that it will generate income from the trading center through various means, such as rental income from cold storage and shops, income from logistic service, etc.

Recent Events

On April 13, 2017, the Company announced that it has entered into a definitive agreement with institutional investors to purchase shares of common stock for aggregate gross proceeds of $2,672,500 in a registered direct offering. The closing of the offering occurred on April 13, 2017. The Company intends to use the net proceeds from the transaction to fund working capital and other general corporate purposes.

On April 12, 2017, the Company announced that on April 10, 2017, Xi’an Hedetang E-Commerce Co., Ltd. ("Hedetang E-Commerce"), an indirect holding company of SkyPeople Fruit Juice, Inc., signed a one-year service agreement to market its products on the open platform Xunqin Mall with Shenzhen Weipin Zhiyuan Information Technology Co., Ltd. ("Shenzhen Weipin"), one of whose shareholders is China Continent Insurance. The brands to be marketed are the Company’s Hedetang and Hede Jiachuan products.  The Company believes that joining Xunqin Mall can help the Company to grow faster, improve operating efficiencies and promote regional sales.

On March 23, 2017, the Company announced that on March 20, 2017, its wholly owned subsidiaries, Hedetang Foods (China) Co. Ltd. ("Hedetang China") and Hedetang Farm Products Trading Market (Mei County) Co. Ltd., ("Hedetang Farm") entered into an agreement with Xi’an Taizhan Financial Management Co., Ltd. ("Taizhan") to jointly establish a new company currently named China Agricultural Commodity Trading Market Co., Ltd. (the "China Agricultural Commodity Trading Center") in Mei County, Shaanxi Province, China. Once established, the China Agricultural Commodity Trading Center will become an innovative platform that promotes agricultural e-commerce trading, industrial integration and modernization, and financial innovation.

On March 17, 2017, the Company announced that on March 13, 2017, the Board of Directors approved Future World Trading (Hong Kong) Limited’s, a wholly owned subsidiary of the company, acquisition of Shaanxi Quangoutong E-commerce Inc. ("Quangoutong"), an e-commerce company and a wholly owned subsidiary of SkyPeople International Holdings Group Limited, which is the major shareholder of the Company. The relevant agreement was signed on March 16, 2017. Quangoutong owns certain permits and licenses from local governments in China to conduct certain on-line financial service businesses in China. The purchase price for Quangoutong will be nominal as it has divested itself of several of its traditional businesses and all of its assets and debts. The FinTech industry is an emerging sector that utilizes computer programs and innovative technology to support the delivery of payment and financial services. The Company believes that the acquisition of Quangoutong will bring an innovative business development and sales model to SkyPeople.

On March 15, 2017, the Company announced that on March 13, 2017, Xi’an Hedetang E-Commerce Co., Ltd. ("Hedetang E-Commerce"), a wholly-owned subsidiary of the Company signed a one-year business agreement with the Jiangsu Nongmuren Agricultural Products ("Nongmuren") e-commerce Platform. The Nongmuren E-Commerce Platform is a unique food quality-focused platform that integrates the Internet of Things ("IoT"), e-commerce and Internet advertising. It implements food safety supervision through the entire agricultural supply chain to ensure farm-to-table information traceability. The platform mainly works with county-level local food production and processing enterprises that produce famous specialty agricultural goods. Nongmuren anticipates having hundreds of millions of registered users in the next three years. Hedetang E-Commerce plans to sell the Company’s products through this platform, which will expand the Company’s distribution channel.

On March 6, 2017, the Company announced that on March 1, 2017, Hedetang Foods, a wholly-owned subsidiary of SkyPeople Fruit Juice, Inc., signed a one-year business agreement with China Aigo O2O Technology Inc. (Beijing) and joined the latter’s Aigo Integrity Alliance.  The Aigo Integrity Alliance is a smart Online to Offline (O2O) platform owned by China Aigo O2O Technology (Beijing), which is the most valued subsidiary of the Aigo Network Technology Co. The Aigo Integrity Alliance has invested heavily to build an O2O platform and developed five unique, world-leading patented technologies in the Mobile Internet arena. Hedetang Foods plans to sell its fruit juice through this platform, which will expand the Company’s distribution channel.

About SkyPeople Fruit Juice, Inc.

SkyPeople Fruit Juice, Inc., a Florida company, through its wholly-owned subsidiary Pacific Industry Holding Group Co., Ltd. ("Pacific"), a Vanuatu company, and SkyPeople Juice International Holding (HK) Ltd., a company organized under the laws of Hong Kong Special Administrative Region of the People’s Republic of China and a wholly owned subsidiary of Pacific, holds 99.78% ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)"). SkyPeople (China), together with its operating subsidiaries in China, is engaged in the production and sales of fruit juice concentrates, fruit beverages, and other fruit related products in the PRC and overseas markets. Its fruit juice concentrates are sold to domestic customers and exported directly or via distributors. Fruit juice concentrates are used as a basic ingredient component in the food industry. Its brands, "Hedetang" and "SkyPeople," which are registered trademarks in the PRC, are positioned as high quality, healthy and nutritious end-use juice beverages. For more information, please visit http://www.skypeoplefruitjuice.com.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2016 and otherwise in our SEC reports and filings, including the final prospectus for our offering. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC’s Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

-Financial Tables Follow-

 

SKYPEOPLE FRUIT JUICE, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited) 

March 31,

December 31,

2017

2016

CURRENT ASSETS

Cash and cash equivalents

$

2,459,424

$

1,143,585

   Accounts receivable, net of allowance of $4,843,809 as of
      March 31, 2017 and December 31, 2016, respectively

5,863,873

7,325,773

Other receivables

29,830,980

28,417,194

Inventories

2,818,225

3,041,300

Deferred tax assets

3,566,442

3,566,442

Advances to suppliers and other current assets

57,167,955

58,132,189

TOTAL CURRENT ASSETS

101,706,899

101,626,483

PROPERTY, PLANT AND EQUIPMENT, NET

82,298,162

81,523,569

LAND USE RIGHT, NET

31,888,862

31,854,360

LONG TERM ASSETS

2,804,632

2,789,390

DEPOSITS

44,213,325

43,867,228

TOTAL ASSETS

$

262,911,880

$

261,661,030

LIABILITIES

CURRENT LIABILITIES

Accounts payable

$

17,391,177

$

16,569,988

Accrued expenses

27,443,847

27,449,664

Income tax payable

3,623,076

3,590,084

Advances from customers

4,149

696

Short-term bank loans

29,524,734

29,364,279

TOTAL CURRENT LIABILITIES

77,986,983

76,974,711

NON-CURRENT LIABILITIES

Obligations under capital leases

16,585,674

14,494,003

TOTAL NON-CURRENT LIABILITIES

16,585,674

14,494,003

TOTAL LIABILITIES

94,572,657

91,468,714

EQUITY

SkyPeople Fruit Juice, Inc, Stockholders’ equity

Series B Preferred stock, $0.001 par value; 10,000,000 shares authorized; None issued and outstanding as of March 31, 2017 and December 31, 2016, respectively

Common stock, $0.001 par value; 8,333,333 shares authorized; 4,311,090 and 4,061,090 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively

4,311

4,061

Additional paid-in capital

108,732,710

105,366,887

Retained earnings

97,587,103

100,237,011

Accumulated other comprehensive loss

(73,341,154)

(70,579,747)

Total SkyPeople Fruit Juice, Inc. stockholders’ equity

132,982,970

135,028,212

Non-controlling interests

35,356,253

35,164,104

TOTAL EQUITY

168,339,223

170,192,316

TOTAL LIABILITIES AND EQUITY

$

262,911,880

$

261,661,030

The accompanying notes in the 2017 first quarter 10-Q as filed with the SEC are an integral part of these consolidated financial statements

SKYPEOPLE FRUIT JUICE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

For the three month Ended

March 31,

2017

2016

Revenue

$

2,958,834

$

5,436,308

Cost of goods sold

2,424,220

5,393,484

Gross profit

534,614

42,824

Operating Expenses

General and administrative expenses

2,855,329

679,944

Selling expenses

194,879

861,140

Total operating expenses

3,050,208

1,541,084

Loss from operations

(2,515,594)

(1,498,260)

Other income (expenses)

Interest income

1,040

131,024

Subsidy income

531,445

Interest expenses

(30,796)

(208,665)

Consulting fee related to capital lease

172,147

(9,159)

Total other income (expenses)

142,391

444,645

Loss from Continuing Operations before Income Tax

(2,373,203)

(1,053,615)

Income tax provision

61,422

Loss from Continuing Operations before Minority Interest

(2,434,625)

(1,053,615)

Less: Net income attributable to non-controlling interests

(166,598)

(12,465)

Loss from Continuing Operations

(2,601,223)

$

(1,066,080)

Discontinued Operations (Note 11)

Loss from discontinued operations

(48,685)

NET LOSS ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC. STOCKHOLDERS

$

(2,649,908)

$

(1,066,080)

Other comprehensive income (loss)

Foreign currency translation adjustment

626,056

$

20,698,646

Comprehensive income

(1,857,254)

19,645,031

Comprehensive expense attributable to non-controlling interests

$

(124,897)

$

(4,997,409 )

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC. STOCKHOLDERS

(1,982,151)

14,647,622

Loss per share:

Basic loss per share from continued operations

(0.63)

(0.30)

Basic loss per share from discontinued operations

(0.01)

Basic loss per share from net income

(0.64)

(0.30)

Diluted Loss per share:

Diluted loss per share from continued operations

(0.62)

(0.30)

Diluted loss per share from discontinued operations

(0.01)

Diluted loss per share from net income

(0.63)

(0.30)

Weighted average number of shares outstanding

Basic

4,147,201

3,548,183

Diluted

4,209,701

3,548,183

The accompanying notes in the 2017 first quarter 10-Q as filed with the SEC are an integral part of these consolidated financial statements.

SKYPEOPLE FRUIT JUICE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the three months ended March 31,

2017

2016

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss

$

(2,649,908)

$

(1,066,080)

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortization

798,511

2,745,539

Deferred income tax assets

(11,666)

Provisions provided for bad debt expenses

(4,503)

Changes in operating assets and liabilities

Accounts receivable

1,509,312

(1,852,548)

Other receivable

(1,437,626)

(2,572,743)

Advances to suppliers and other current assets

624,779

3,135,265

Inventories

240,154

(836,764)

Accounts payable

313,214

4,200,224

Accrued expenses

695,701)

(989,025)

Income tax payable

(737,480)

(3,473,175)

Advances from customers

3,455

1,116,238

Net cash (used in) provided by operating activities

(644,391)

395,265

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property, plant and equipment

(2,527,423)

Prepayment for other assets

(257,189)

Prepayments for deposit on equipment

(106,597)

Net cash used in investing activities

(106,597)

(2,784,612)

CASH FLOWS FROM FINANCING ACTIVITIES

Issue of common stock

16,641,394

Repayment from related party loan

(31,565)

(1,233,968)

Proceeds (repayments) long term debt

2,016,329

Payment for capital lease

(11,391,267)

Net cash provided by financing activities

1,984,764

4,016,159

Effect of change in exchange rate

82,063

8,427,051

NET INCREASE IN CASH AND CASH EQUIVALENTS

1,315,839

10,053,863

Cash and cash equivalents, beginning of period

1,143,585

50,006,914

Cash and cash equivalents, end of period

$

2,459,424

$

60,060,777

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Cash paid for interest

$

30,796

$

208,665

Cash paid for income taxes

$

61,422

$

1,259,559

SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION

Transferred from other assets to property, plant and equipment and construction in process

$

106,597

$

2,342,127

The accompanying notes in the 2017 first quarter 10-Q as filed with the SEC are an integral part of these consolidated financial statements

 

For more information, please contact:

COMPANY
Cindy Liu, Investor Relations Manager
SkyPeople Fruit Juice, Inc.
Tel:   China + 86 – 29-8837-7161
Email: [email protected]
Web: http://www.skypeoplefruitjuice.com                                

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/skypeople-fruit-juice-reports-first-quarter-2017-financial-results-300458801.html

Sinovac Biotech Announces Receipt of NASDAQ Letter and Delayed Filing of Annual Report on Form 20-F

BEIJING, May 17, 2017 /PRNewswire/ — Sinovac Biotech Ltd. (NASDAQ: SVA)("Sinovac" or the "Company"), a leading provider of biopharmaceutical products in China, announced today that it is delaying its Annual Report on Form 20-F for the year ended December 31, 2016 (the "2016 Annual Report") and that it received a written notice from the Listing Qualifications Department of The Nasdaq Stock Market ("NASDAQ").

On May 1, 2017, Sinovac filed a Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission (the "SEC") regarding the delayed filing of its 2016 Annual Report. Sinovac does not expect that it will be able to file the 2016 Annual Report within the 15-day extension period. The Company’s Audit Committee requires additional time for its internal investigation regarding allegations raised in a research report by Geoinvesting. The investigation has slowed completion of the Company’s financial statements and audit for the year ended December 31, 2016. Management and the Audit Committee of the Company’s Board of Directors are continuing to work diligently to complete its 2016 Annual Report and file it with the SEC as soon as possible.

After the Company publicly announced the internal investigation arising from the Geoinvesting article, the SEC staff notified the Company of an enforcement inquiry related to the matters discussed in the article. The SEC staff subsequently issued a subpoena requesting documents related to the internal investigation. The Company, at the direction of the Audit Committee and with the assistance of independent counsel, is cooperating with the SEC in response to the staff’s requests for information. 

On May 10, 2017, Sinovac received a written notice from the Listing Qualifications Department of NASDAQ indicating that the Company is not in compliance with Listing Rule 5250(c)(1) because the Company has failed to file its 2016 Annual Report within four months after the end of year 2016 and does not expect that it will be able to file the 2016 Annual Report within the 15-day extension period.

Under the NASDAQ Listing Rules, the Company has 60 days from the receipt of the letter to submit a plan to NASDAQ as to how it plans to regain compliance with NASDAQ’s continued listing requirements. If the Company is still unable to file its 2016 Annual Report by that time, then the Company intends to submit a compliance plan on or prior to that date. If NASDAQ accepts the Company’s plan, NASDAQ can grant an exception of up to 180 calendar days from the filing’s due date, or until October 30, 2017, to regain compliance. The Company may regain compliance at any time during this 180-day period upon filing with the SEC its 2016 Annual Report, as well as all subsequent required periodic financial reports that are due within that period. If NASDAQ does not accept the Company’s plan, Sinovac will have the opportunity to appeal that decision to a NASDAQ Hearings Panel.

The NASDAQ notification letter has no immediate effect on the listing and trading of Sinovac’s common shares on the NASDAQ Capital Market.

About Sinovac

Sinovac Biotech Ltd. is a China-based biopharmaceutical company that focuses on the research, development, manufacturing and commercialization of vaccines that protect against human infectious diseases. Sinovac’s product portfolio includes vaccines against enterovirus71, or EV71, hepatitis A and B, seasonal influenza, H5N1 pandemic influenza (avian flu), H1N1 influenza (swine flu), and mumps. The EV71 vaccine, an innovative vaccine developed by Sinovac against hand foot and mouth disease caused by EV 71, was commercialized in China in 2016. In 2009, Sinovac was the first company worldwide to receive approval for its H1N1 influenza vaccine, which it has supplied to the Chinese Government’s vaccination campaign and stockpiling program. The Company is also the only supplier of the H5N1 pandemic influenza vaccine to the government stockpiling program. The Company is currently developing a number of new products including a Sabin-strain inactivated polio vaccine, pneumococcal polysaccharides vaccine, pneumococcal conjugate vaccine and varicella vaccine. Sinovac primarily sells its vaccines in China, while also exploring growth opportunities in international markets. The Company has exported select vaccines to over 10 countries in Asia and South America. For more information, please visit the Company’s website at www.sinovac.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by words or phrases such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this press release contain forward-looking statements. Statements that are not historical facts, including statements about Sinovac’s beliefs and expectations (including with respect to the filing of its 2016 Annual Report and the compliance plan discussed above), are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward- looking statement. Sinovac does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Contact

Sinovac Biotech Ltd.
Helen Yang
Tel: +86-10-8279-9871
Fax: +86-10-6296-6910
Email: [email protected]

ICR Inc.
Bill Zima
U.S: 1-646-308-1707
Email: [email protected]

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sinovac-biotech-announces-receipt-of-nasdaq-letter-and-delayed-filing-of-annual-report-on-form-20-f-300458211.html