Author: Asia PEVC

Nissin Foods Delivers Resilient 2020 Interim Results

  • Revenue surges 15.9% year-on-year to HK$1,735.4 million;
  • Net profit up 34.3% with improved margin

Nissin Foods Company Limited (the “Company”, and together with its subsidiaries, the “Group”; Stock code: 1475) has today announced its interim results for the six months ended 30 June 2020 (“the reporting period”).

Revenue of the Group increased by 15.9% year-on-year (YoY) to HK$1,735.4 million (2019: HK$1,497.9 million), primarily attributable to the increase in demand for most types of instant noodles and frozen food products in Hong Kong, as well as the improvement in sales volume of cup-type instant noodles and the made-in-Hong Kong bag-type instant noodles in the PRC. This reflects the additional demand generated from the “stay-at-home” economy spurred by the COVID-19 pandemic. In the reporting period, the new joint venture distribution business in Shanghai commenced operation in April 2020 as scheduled and also began contributing to the Group’s growth in revenue. Gross profit margin increased by 1.7 percentage point to 33.9% (2019: 32.2%), mainly attributable to the reduction in utility overheads, the relatively stable price for key raw-materials year-on-year and the shift of product mix in Hong Kong.

The Group’s EBITDA grew by 34.9% YoY to HK$310.7 million (2019: HK$230.3 million) and the EBITDA margin was 17.9% for the reporting period (2019: 15.4%). Profit attributable to owners of the Company was HK$178.4 million, representing an increase of 34.3% YoY from HK$132.9 million for the corresponding period of 2019 and a net profit margin of 10.3% for the period (2019: 8.9%). This was mainly due to the boost in sales among the Group’s operating regions and the better control in the operating and non-operating expenses. Basic earnings per share increased by 34.3% to 16.61 HK cents (2019: 12.37 HK cents).

As of 30 June 2020, the Group’s cash and cash equivalent was HK$1,492.3 million and the gearing ratio was zero. The strong financial position enables the Group to weather the challenges and continue to deliver results in uncertain times like this.

Hong Kong Operations
Revenue from Hong Kong operations increased by 13.1% to HK$708.6 million (2019: HK$626.4 million), mainly attributable to the surge in demand for most types of instant noodles and frozen food products fuelled by the growth of the stay-at-home economy under the pandemic. Segment results increased significantly by 66.8% to HK$97.9 million (2019: HK$58.7 million), mainly due to the surge in revenue and reduced deployment in advertising and promotion during the reporting period.

The Group takes it as part of its corporate social responsibility to ensure a timely replenishment of instant noodles and frozen food products in the market. Hence, the Group had promptly adjusted its production schedule and related procurement and logistics arrangement to meet the sudden surge in demand in the reporting period, and continues to keep a close dialogue with distributors, wholesalers and retailers under the pandemic.

At the same time, the Group has made an effort to expedite new product launch across the family of brands under Nissin Foods to enrich customer experience. The signature items are: the New Japan Ramen Shop Style Cup Series of “Demae Iccho”, which features authentic Japanese taste with a thick soup base; new Southeast Asian flavours for “Cup Noodles; “U.F.O.” Kewpie Salad and Kewpie Dan Dan Flavour Stir Noodles and others. Under the non-fried instant noodles category, Nissin Frozen Ramen has collaborated with four popular ramen shops to launch various signature ramen packs. The Group has also further developed a 40g small-pack Granola series this year to bring higher convenience to consumers to enjoy the crispy and tasty cereal puff with fruit mix.

Furthermore, to broaden the income stream as well as enhance the healthy options to customers, the Group has made an initial investment of approximately HK$7.1 million this year to set up its first production line on pre-packaged ready-to-eat fresh-cut vegetables in Hong Kong situated in the Group’s chilled and frozen food production plant in Tai Po Industrial Estate. The Group will utilise Japanese state-of-the-art production and management expertise to offer a healthy, fresh, delicious and yet convenient and affordable choice for health-conscious customers, and production will commence in December 2020.

PRC Operations
Revenue from PRC operations increased by 17.8% (in local currency: 23.8%) from HK$871.5 million to HK$1,026.8 million for the reporting period. The cup-type instant noodles, especially the “Cup Noodles” brand, continued to be the dominant growth driver in the PRC, recording good sales momentum across different regions. Our signature made-in-Hong Kong bag-type instant noodles under the “Demae Iccho” brand has also recorded substantial growth in Southern and Eastern China due to increasing brand awareness and customer trial under the pandemic. The Group continued to record double-digit revenue growth (in local currency) for its key operating regions and was especially satisfactory in Eastern China. Segment profit has increased by 43.7% to HK$142.8 million (2019: HK$99.4 million), mainly due to the solid performance of organic revenue growth, coupled with the reduction in the advertising and promotional expenses.

The Group has witnessed good sales pick-up from its customers amidst the pandemic. On top of regular purchase by existing customers, the Group received support from new customers through product trial under the pandemic to “Cup Noodles” and the made-in-Hong Kong “Demae Iccho” bag-type noodles.

In addition, the Group is committed to expanding its business presence in the PRC market and further enlarging its customer base. The Group has formed a joint venture company in January 2020, which would engage in import and sale of Japanese-branded food and beverage products in Shanghai and other first-tier cities in the PRC. It has already commenced operation since the second quarter of 2020, and this trading platform would enable other Japanese manufacturers to enter the region, as well as to help the Group’s products to further penetrate across the PRC in the long run.

Prospects
Looking ahead, the unpredictable nature of the COVID-19 pandemic would inevitably continue to affect the global economy. The Group would keep monitoring the situation and ensure a stable supply of its products to its customers in Hong Kong and the PRC. The Group would also continue to inject fresh momentum into its business along with new product launches and geographical expansion in the PRC.

Furthermore, the Group has been selected as a constituent of Hang Seng family of indexes effective Monday, 7 September 2020. The Group will be included to Hang Seng Composite Index, Hang Seng Consumer Goods & Services Index, Hang Seng Stock Connect Hong Kong Index and other indexes. The inclusion as a constituent stock in the Hang Seng family of indexes enable Mainland-based investors to trade directly in the securities of the Group via Stock Connect scheme. This represents continual capital market’s recognition of the Group and is expected to expand shareholder base and increase trading liquidity of the Group.

Mr. Kiyotaka ANDO, Executive Director, Chairman and Chief Executive Officer of Nissin Foods, said, “In the first half of 2020, we recorded a resilient performance in Hong Kong and the PRC despite the outbreak of the pandemic. As the leading food manufacturer, it is of the utmost importance for us to ensure a stable and reliable supply of food products to cater for the changing needs of the customers in good and bad times. As the Group strives to reinforce its position in the industry, we are very honoured to be included on the Hang Seng family of indexes, enabling trading via the southbound Stock Connect. This demonstrates the capital market’s recognition of the Group’s performance and business outlook. Going forward, we will continue to look for new innovation in order to enrich the existing product portfolio and broaden the customer base of the Group. This will broaden our revenue stream and enhance our overall competitiveness, thus create value for all our stakeholders.”

About Nissin Foods Company Limited
Nissin Foods Company Limited (The “Group”; Stock code: 1475) is a renowned food company in Hong Kong and the PRC with a diversified portfolio of well-known and highly popular brands and the largest instant noodle company in Hong Kong. The Group officially established its presence in Hong Kong in 1984. The Group primarily manufactures and sells instant noodles, frozen foods and other food products under its two core corporate brands, namely “NISSIN” and “DOLL” together with a diversified portfolio of iconic household premium food brands. The Group’s five flagship product brands, namely “Cup Noodles”, “Demae Iccho”, “Doll Instant Noodle”, “Doll Dim Sum” and “Fuku” are also among the most popular choices in their respective food product categories in Hong Kong. In the PRC market, the Group has introduced technology innovation through the “ECO Cup” concept into the market and primarily focuses its sales efforts in first- and second-tier cities located in the eastern and southern parts of the PRC. For more information, please visit www.nissingroup.com.hk.

For media enquiries:
Nissin Foods Company Limited
Public Relations Department
Blanche Wong / June Lau
Email: pr@nissinfoods.com.hk

For investor enquiries:
Nissin Foods Company Limited
Investor Relations Department
Shingo Yamazaki / Peter Kwok
Email: ir@nissinfoods.com.hk

Strategic Financial Relations Limited
Vicky Lee Tel: (852) 2864 4834 Email: vicky.lee@sprg.com.hk
Carven Tsui Tel: (852) 2864 4859 Email: carvensm.tsui@sprg.com.hk
Cara Lau Tel: (852) 2864 4890 Email: cara.lau@sprg.com.hk

Tianneng Power’s 2020 Interim Results Scaled the Heights Again

Profit Attributable to the Owners of the Company Increased Substantially by 40.42% to RMB837 Million
Basic EPS Increased by 40.42%

Tianneng Power International Limited (“Tianneng Power” or the “Company”), together with its subsidiaries, (the “Group”; stock code: 819.HK), today announced its interim results for the 6 months ended 30 June 2020 (“During the reporting period”).

In the first half of the 2020, despite a complex and unpredictable external environment, the Group’s main businesses maintained stable growth momentum with steady progress and improvement of quality. During the reporting period, the Group’s sales revenue amounted to approximately RMB22,635 million, representing an increase of 14.26% year-on-year. The gross profit was approximately RMB2,116 million, representing an increase of 14.23% as compared with the same period last year. It was mainly attributable to an increase in sales volume and a growth in the battery gross profit margin. The gross profit margin was approximately 9.35%, which remained stable as compared with the same period last year. The net profit was approximately RMB860 million, representing an increase of 45.57% year-on-year.

Strives for Progress on High-end Eco-friendly Batteries Business

High-end eco-friendly batteries are one of the Group’s main businesses, providing the Group with a solid cash flow. During the reporting period, the sales revenue of high-end eco-friendly batteries was approximately RMB11,641 million. The Company has now formed a product system based on lead batteries and supplemented by lithium batteries that includes motive, start-stop and energy storage batteries. Among these types of batteries, lead batteries have a history of more than 160 years. Characterised by their high safety, high recyclability, high price-performance ratio, mature technology and excellent performance in high and low temperature environment, lead batteries enjoy a sharp competitive edge. As a result, lead batteries occupy a leading position in the global market of rechargeable batteries and are currently the most commonly used batteries in vehicles and equipment such as light electric vehicles, special electric vehicles and start-stop systems in automobiles. The overall market demand for them will continue to grow steadily.

In the future, the fields of application for lead batteries will continue to grow and expand, and the related technologies and processes will continue to develop with the aim of achieving higher energy densities, higher price-performance ratio and higher safety. With the in-depth application of the 5th generation mobile network (5G), lead batteries will also go “smart” with features like identifiability and traceability, remote controllability and connectivity to the Internet of things.

Rapid Development of New Energy Batteries Business

As one of the new energy batteries, the lithium-ion battery is an important strategic segment of the Group. During the reporting period, the Group’s operating revenue in the new energy battery business was approximately RMB403 million, representing an increase of 58.08% year-on-year. In November 2019, Tianneng signed a cooperation agreement with SAFT, a subsidiary of the French company Total S.A., one of the world’s top 500 enterprises, to form a joint venture that focuses on the development, manufacture and sale of advanced lithium-ion batteries for the Chinese and global markets. The cooperation with SAFT will allow the Group to share the world-leading lithium battery company’s rich experience in the construction and management of R&D systems and technological reserve to enhance the Group’s global competitiveness. Over the years, the Group has continued to expand its product line of lithium-ion batteries. In addition to the sector of motive batteries, the Group’s lithium battery business has also gained a foothold in smart energy storage, 3C and backup battery industries. The Company won the awards of “Best Provider of Systems Integration Solutions” and “Best Demonstration Project for Energy Storage” at the 7th Global Solar+Energy Storage Conference & Expo (2020) July this year.

The Company will further increase its cooperation with renowned battery companies in and outside China, deepen its distribution in the sectors of lithium-ion motive batteries for special vehicles and lithium-ion batteries for smart energy storage, and pay close attention to the technological trends and market developments of automobile start-stop lithium batteries, lithium-sulfur batteries and solid-state batteries, so as to make the lithium-ion battery business one of the Company’s core segments and enhance the market competitiveness of the Company’s lithium battery business.

Green New Materials Business Scudding along before the Wind

The Company is the first enterprise to develop circular business. After over ten years of technology accumulation and scientific operations, green new materials segment has become one of the three major businesses of the Company, and has had an important position in the Company’s future development plan. In the first half of this year, the Group accelerated the industry distribution, and focused on the development of circular business. During the reporting period, the Group’s external operating revenue in green new materials business recorded approximately RMB397 million. The Group will continue to put much effort in the circular business, gradually expand the categories of renewable materials for recycling, and at the same time extend to the up and down streams in the industry, thus steadily progress towards the goal of setting up large circular industry clusters.

Strategic Blueprint for Global Presence, Market Share Expansion
During the first half of this year, the Group leveraged on its overseas offices as the “bridgehead”, deeply explored the market potentials in regions such as Southeast Asia, South Asia, Europe as well as Central and East Africa, constantly developed new markets and sectors, and used its overseas business division as platforms, thereby enhancing international communications and cooperation. The Group will continue to strengthen cooperation with scientific research platforms overseas, integrate world’s top technological resources, thus foster core technological advantages for the entire industrial chain. At the same time, the Group continues to seek mergers and acquisitions opportunities for upstream and downstream products, and establishes research and development production bases overseas in due time while creating a global supply chain network, with the Group striving to become the “world’s leading green energy solution provider”.

Capital Development
In accordance with the results of the 51st review meeting of the Listing Committee for Science and Technology Innovation Board of the Shanghai Stock Exchange in 2020 that was held on 6 July 2020, the issue of A shares by Tianneng Battery Group Co., Ltd. and the listing of the A shares of the Spin-off Company on the Science and Technology Innovation Board of the Shanghai Stock Exchange has been approved by the Listing Committee.

Looking to the future, Mr. Zhang Tianren, the Chairman of the Board, said, “The Group will adhere to the sustainable development strategy of “new materials, new structures, new technologies, new sectors”, follow the strategic direction of “artificial intelligent, globalization, platform-building”, strive to seek after diversified fund raising channels to assist businesses with sufficient fundings for future development, as well as fully promote reforms in quality, efficiency and driving forces. Leveraging on its advantages in technology, production framework, market channels, brands and information technology system which have been accumulated in the battery industry for many years, Tianneng will strengthen the international leading position of its high-end eco-friendly batteries, enhance the product competitiveness of new energy batteries, create closed-loop green smart industry chain, construct a smart energy service system, build a logistics supply chain platform, actively expand businesses such as start-stop batteries and energy storage systems, and continue with the technological development of fuel cells and new-generation batteries, with the aim of becoming the most respected first-tier new energy enterprise across the globe.”

About Tianneng Power International Limited
Tianneng Power International Co., Ltd. (“Tianneng Power”) is a leading company in the new energy power battery industry in China, which was founded in 1986. In 2007, Tianneng Power was listed on the Main Board of The Stock Exchange of Hong Kong Limited as the “First China Company of Power Battery.” After more than 30 years of development, it has become a large high-tech energy group focusing on the manufacturing and provision of services of environmentally friendly power batteries for electric vehicles, while offering integrated power storage ancillary services, and integrating the R&D, production and sale of lithium batteries for new energy vehicles, start-stop batteries for vehicles and wind power and solar power storage batteries; the recycling and cyclic utilization of waste batteries; the construction of smart micro-grids in cities; as well as the building of green and smart industrial parks. In July 2020, Tianneng Power won the awards of “Best Provider of Systems Integration Solutions” and “Best Demonstration Project for Energy Storage” at the 7th Global Solar+Energy Storage Conference & Expo (2020).

Macau E&M Holding Announces Details of Proposed Listing on the Main Board of SEHK

Global Offering of 125,000,000 Shares through Hong Kong Public Offering and International Placing
Price Ranges from HK$1.00 to HK$1.20 per Share

Macau E&M Holding Limited (“Macau E&M Holding”, together with its subsidiaries, the “Group”), an established E&M engineering services works contractor, today announced the details of its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”).

Offering Details
Macau E&M Holding plans to offer a total of 125,000,000 Shares (comprising 103,100,000 new Shares and 21,900,000 Sale Shares), among which, 90% or 112,500,000 Shares will be for International Placing (subject to reallocation), while 10% or 12,500,000 Shares will be for the Hong Kong Public Offering (subject to reallocation) at an indicative Offer Price ranging from HK$1.00 and HK$1.20 per Offer Share

The Hong Kong Public Offering will commence at 9:00 a.m. on 31 August 2020 (Monday) and end at 12:00pm on 3 September 2020 (Thursday). The final Offer Price and results of allocation will be announced on 10 September 2020 (Thursday). Trading of the shares of Macau E&M Holding will commence on the Main Board of SEHK on 11 September 2020 (Friday) under the stock code 1408. Shares will be traded in board lots of 2,000 Shares each.

Innovax Capital Limited is the Sole Sponsor while Innovax Securities Limited is the Sole Global Coordinator, the Sole Bookrunner and one of the Joint Lead Managers of the Global Offering.

Investment Highlights

An integrated E&M engineering services works contractor in the public and private sectors in Macau with an established track record
The Group is an E&M engineering services works contractor in Macau. According to the Industry Report, the Group ranked fifth among the E&M engineering services works contractors in Macau . The Group has been registered with DSSOPT as a licensed contractor to provide comprehensive E&M engineering services works in Macau, and to carry out E&M engineering services works for various government departments and other public works. In addition, the projects undertaken by the Group for the Macau government or other public bodies in Macau are a testament to the quality, reliability and value of its services, which has helped to build and consolidate the Group’s reputation and goodwill in the Macau construction industry as an E&M engineering services works contractor with a strong track record in performing public works. Leveraging on the reputation and goodwill of the Group in the public sector, the Group’s services has been expanded to the private sector projects on world class hotels and integrated entertainment resorts. As at 30 June 2020, the Group had 63 projects on hand.

Providing integrated and comprehensive E&M engineering services solution to customers
The Group’s comprehensive E&M engineering services include the supply, installation, testing and commissioning of system works across various key aspects of the E&M engineering services works spectrum such as (i) LV systems works; (ii) HVAC systems works; and/or (iii) ELV systems works. The Group also has the technical know-how to carry out maintenance and repair services for customers. Since its inception in 2011, the Group has expanded from the provision of different types of E&M engineering services works in the public sector, to gradually involving in the more lucrative private sector first as a subcontractor and later as a main contractor. The Group’s integrated and comprehensive E&M engineering services solution allows its customers to exert efficient control on costs, time and resources, saving them from having to engage different contractors to complete the various works required by any given project.

Established strong and stable relationships with customers as well as subcontractors and suppliers
The Group is an established E&M engineering services works contractor in Macau. Leveraging on the Group’s high qualities, diversified and comprehensive capabilities and market reputation, the Group has established strong and stable business relationships with a number of major customers that are main contractors as well as project owners, ranging from two to eight years. As part of the integrated and comprehensive E&M engineering services solution, the Group has also provided maintenance and repair services to customers which allows the Group to establish and reinforce a stable customer base by maintaining a constant flow of communications with its customers. In addition, the Group has maintained a list of approved suppliers and subcontractors and has established good and long term relationships with these suppliers and subcontractors.

Business Strategies
Strengthening the financial position to further develop the capability as main contractor and/or to participate in more large-scale construction projects
In order to grow the business further and capture a larger market share to improve the profitability, the Group will strengthen its financial position to increasingly assume the role of main contractor for E&M projects and/or participate in more large-scale construction projects. In addition, the Group will also gain opportunities to establish stronger and long-standing relationships with project owners through direct collaboration, which will possibly lead the Group to more future business opportunities. Leveraging on its rich experience in the E&M engineering services works, the Group also plans to undertake large-scale construction projects which involve E&M engineering services works specialties.

Expanding the workforce by recruiting additional skilled professionals and labour
There is a general scarcity of skilled labour in the Macau construction market, in particular, professionals such as engineers. As such, the Group’s capacity in taking up E&M projects, to a large extent, depends on the number of direct skilled professionals and workers the Group is able to recruit. The Group will consider expanding its current project management team, in particular by recruiting additional project managers and engineers of skills and experience, which will allow the Group to better manage and control the project programme of various large-scale E&M projects undertaken by the Group at the same time and enable the Group to supervise and monitor the works of workers and subcontractors at different project sites simultaneously, thereby further develop its capacity to undertake more sizeable E&M projects at any one time while adhering to the quality and reliability of its E&M engineering services works. In addition, the Group further considers that maintaining and expanding a stable pool of skilled workers will provide the Group with the flexibility to take up E&M projects by deploying and utilising its own workforce and reducing the need to subcontract the works as well as allowing the Group to undertake more projects at a given time, which will therefore increase the Group’s overall profitability. Hence, to ensure that the Group continues to perform at a competitive level and is well-positioned to undertake more E&M projects of larger scale, the Group plans to recruit additional RPEs and other members of staff.

Acquiring construction machineries and equipment to facilitate the business expansion plans
Depending on the scope of works of each project, the Group generally leases machineries and equipment to carry out the works. The Group generally takes into account the following factors when determining whether to lease or purchase certain lease machineries and equipment, including (i) rental and purchase cost, (ii) utilisation rate, (iii) estimated useful lives, (iv) storage, frequency of maintenance and repair needs, (v) requirement of the projects, and (vi) availability of the machineries for rental in the market. In view of the above factors, the Group will acquire additional machineries and equipment in order to pursue the business strategies and capture the future growth in the Macau construction industry.

Use of Proceeds
Assuming an Offer Price of HK$1.10 per share (being the mid-point of the indicative Offer Price range), the net proceeds from the Global Offering (after deducting underwriting fees and commission and estimated expenses in connection with the Global Offering) are estimated to be approximately HK$60.1 million and will be applied as follows:

Item / Percentage (%)
Funding specific material costs and upfront expenditure (excluding performance
bonds) of certain projects on hand and the Specific Tendered Projects: 63.6
Financing the issuance of performance bonds: 22.1
Expanding the workforce: 11.0
Acquiring additional machineries and equipment: 3.3
Total: 100.0

Financial Performance Year ended 31 December Two months ended 28/29 February
(MOP$’000) 2017 2018 2019 2019(unaudited) 2020
Revenue 160,752 218,254 237,680 44,967 48,513
Gross Profit 43,305 50,078 53,097 11,246 11,901
Profit before tax 34,478 32,395 45,994 9,506 9,251
Profit and total comprehensive income for the year/period 29,850 27,430 40,538 8,429 8,099

About Macau E&M Holding Limited
Macau E&M Holding is an established E&M engineering services works contractor. The Group provides a comprehensive mix of E&M engineering services works based on the needs of customers in Macau, which generally involve a combination of the supply and/or installation of (i) LV systems works; (ii) HVAC systems works; and/or (iii) ELV systems works, and the relevant testing and commissioning thereof as well as management and monitoring of quality and delivery of E&M engineering services works. For more information about Macau E&M Holding, please visit the Group’s website at www.macauem.com.

Junshi Biosciences Announces Financial Results for Six Months Ended June 30, 2020 and Provides Corporate Updates

  • Supplemental NDAs for Toripalimab filed
  • Expanding into infectious disease and collaborating with IMCAS and Lilly for COVID-19 neutralizing antibodies
  • Dual Listing on the STAR Market

Junshi Biosciences (HKEX: 1877; SSE: 688180), a leading innovation-driven biopharmaceutical company dedicated to the discovery, development and commercialization of novel therapies, announced its financial results for the six months ended June 30, 2020 and provided corporate updates.

First Half 2020 Financial Highlights

– Total revenues reached RMB575 million in the first half year of 2020, representing an 86% increase compared with the first half year of 2019. Sales of Toripalimab was RMB426 million, out of which RMB254 million was generated in the second quarter, representing recovery from the initial outbreak of COVID-19 in early 2020. Gross margin increased slightly to approximately 90% due to capacity utilization and productivity improvement. Sub-licensing and service income was RMB149 million. Junshi entered into a research collaboration and license agreement with Lilly and granted Lilly a license to conduct research, development and commercialization of JS016, an innovative drug for the treatment and prevention of COVID-19 in May 2020.

– The research and development (“R&D”) expenses were RMB709 million in the first half year of 2020, representing an increase of 92% compared to RMB369 million for the same period in 2019. The increase was primarily due to progress of key clinical trials, more R&D collaboration and license-in activities expanding our pipelines to small molecule drugs, antibody drug conjugates (ADCs) and JS016.

– The property, plant and equipment (“PPE”) by the end of June 2020 increased 11% to RMB2,026 million compared with the end of year 2019. The significant growth of the PPE was primarily due to the construction of the Lingang Production Base, which will enhance our current production capacity by ten folds.

– Total comprehensive expense for the Reporting Period was RMB593 million, representing an increase of 105% compared to first half of 2019, mainly due to profit generated from Toripalimab sales, service income and sub-licensing income but offset by the increase in R&D expenses and administrative and selling expenses.

– As of 30 June 2020, our bank and cash balances decreased to RMB676 million from RMB1,214 million as of 31 December 2019. The decrease was mainly due to: 1) investment in ongoing R&D projects, new R&D collaboration and license-in projects; 2) investment in and acquisition of companies in the pharmaceutical sector; and 3) investment in the production bases especially the Lingang Production Base. Subsequently, in July 2020, the company completed a public offering of A shares on the STAR Market of the Shanghai Stock Exchange and received gross proceeds of approximately RMB483.6 million.

Business Highlights

During the Reporting Period, we achieved significant progress with respect to our product commercialization, clinical trials and pipeline expansion. The Company’s products concentrated on self-developed biological products with original innovation. At the same time, through co-development and technology transfer/license-in, we further expanded our product pipeline. As of the end of the Reporting Period, we had 21 drug candidates, including 19 innovative drugs and 2 biosimilars, covering five major therapeutic areas including malignant tumors, autoimmune diseases, chronic metabolic diseases, neurologic diseases and infectious diseases.

– During the Reporting Period, 15 pivotal registered clinical trials for Toripalimab were being conducted, in which 2 pivotal registered clinical trials were applied for NDA to the National Medical Products Administration (“NMPA”) and included in the process of priority review, covering a broad spectrum of indications, including: melanoma, urothelial carcinoma, nasopharyngeal carcinoma, non-small cell lung carcinoma, esophageal carcinoma, small cell lung carcinoma, triple negative breast carcinoma, hepatocellular carcinoma, gastric carcinoma and renal cell carcinoma.
— In March 2020, Toripalimab in combination with Axitinib for treatment of mucosal melanoma was granted the orphan-drug designation by the US Food and Drug Administration (“FDA”).
— In April and May 2020, the supplemental NDAs in respect of Toripalimab as a treatment for recurrent/metastatic NPC after failure of second-line and above systemic treatment and for locally advanced or metastatic urothelial carcinoma who received previous treatment were accepted by the NMPA, marking a new stage in the layout of indications in the segmented areas of Toripalimab. The two supplemental NDAs had been included in the process of priority review by the NMPA in July 2020.
— In June 2020, the Company and Merck KGaA entered into clinical trial collaboration in respect of the use of Toripalimab in combination with Cetuximab (Erbitux) for the treatment of recurrent and/or metastatic squamous cell carcinoma of the head and neck.

– The Company’s drug candidate TAB004/JS004 (a recombinant humanized anti-BTLA monoclonal antibody for injection) was approved for clinical trials in China by the NMPA, and the first patient was dosed in a Phase I clinical study in April 2020. In addition, its Phase I clinical study in the United States has completed dose-escalation study and entered dose-expansion stage.

– The first subject was dosed in a Phase I clinical study of JS005 (a recombinant humanized anti-IL-17A monoclonal antibody for injection) in China in May 2020. At present, the Phase I clinical study has completed random enrollment.

– In March 2020, the Company and the Institute of Microbiology, Chinese Academy of Sciences (“IMCAS”) entered into a project cooperation agreement to jointly develop and produce novel coronavirus neutralizing antibody JS016 (a recombinant fully human anti-SARS-CoV-2 monoclonal antibody for injection), an innovative drug for the treatment and prevention of COVID-19.
— In May 2020, the Company and Lilly entered into an agreement to collaborate on research, develop and commercialize potential preventive and therapeutic antibody therapies for COVID-19, and Lilly was granted an exclusive license to conduct research, develop and commercialize JS016 outside Greater China.
— In May 2020, the international authoritative journal “Nature” published the results of JS016 pre-clinical research, which reported for the first time that the neutralizing antibody of SARS-CoV-2 can significantly inhibit novel coronavirus infection in the test on non-human primate rhesus monkeys, showing the dual effect of treatment and prevention.
— In June 2020, JS016 was approved to conduct Phase I clinical trial in China, and the enrollment of subjects in the Phase I clinical trial was completed in July 2020. The international multi-center clinical trial was a randomized, double-blind and placebo controlled Phase I clinical study, aiming at evaluating the tolerability and safety of single-dose intravenous infusion of JS016 in healthy subjects. We plan to recruit 40 healthy subjects (including both male and female) as the world’s first novel coronavirus neutralizing antibody clinical trial conducted in healthy subjects. We are conducting Phase Ib international multi-center clinical studies for patients with mild/normal novel coronavirus pneumonia. And we expect to commence Phase II/III clinical study for patients with severe and critical novel coronavirus pneumonia as soon as possible. At the same time, the Company will also conduct follow-up studies on groups who are at high risks of the novel coronavirus to evaluate the preventive effect of JS016 on novel coronavirus infection.

After the Reporting Period, we continued to make significant progress in business operations including the following:

– The Company applied to The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) and obtained approval for the dis-application of Rules 18A.09 to18A.11 of the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange (the “Hong Kong Listing Rules”) (the “Relevant Rules”) to the Company. As a result of the dis-application of the Relevant Rules, the “B” marker ceased to be affixed to the Company’s stock name and stock short name from 15 July 2020.

– The Company completed the issue of A shares. The A shares of the Company were listed and commenced trading on the STAR Market of the Shanghai Stock Exchange on 15 July 2020.

– The Company entered into a research collaboration and license agreement with Revitope Oncology, Inc. to develop next generation of T-cell engaging cancer immunotherapies that utilize Revitope’s proprietary dual-antigen targeting technology platform together with the Company’s antibody technology platform. Revitope will be responsible for designing up to 5 unique T-cell immunotherapeutic drugs against targets selected by the Company. The Company will be granted a world-wide exclusive license on products that result from such agreement.

– The Company’s recombinant humanized anti-Trop2 monoclonal antibody – Tub196 conjugate for injection (product code: JS108), obtained the Clinical Trial Approval issued by the NMPA.

– The Company and IMPACT Therapeutics entered into a joint venture agreement for the formation of a joint venture company (the “JV Company”). The JV Company will mainly engage in the R&D and commercialization of small molecule anti-tumor drugs. IMPACT Therapeutics will contribute for its equity interests by way of injection of a PARP inhibitor Senaparib (IMP4297) as an asset within mainland China, Hong Kong and the Macau Special Administrative Regions. The Company and IMPACT Therapeutics will each own 50% equity interests in the JV Company. Both parties will cooperate in conducting clinical trials, manufacturing, and commercialization preparations for various indications of the IMP4297 project within the above territory.

About Junshi Biosciences
Junshi Biosciences (HKEX: 1877; SSE: 688180) was co-established in December 2012 by alumni of famous universities of China and the United States. The founding team has extensive and solid experience in the cross-border transformation of scientific and technological achievements and substantial expertise in the pharmaceutical industry.

Our priority is researching and developing therapeutic antibodies. We are committed to researching, developing, and industrializing innovative monoclonal antibody drugs and other therapeutic protein drugs. The company has established a diversified R & D pipeline comprising 19 innovative candidate drugs and 2 biosimilars, with five therapeutic focus areas covering cancer, autoimmune diseases, metabolic diseases, neurologic diseases, and infectious diseases. Junshi Biosciences was the first Chinese pharmaceutical company that obtained marketing approval for PD-1 monoclonal antibody and clinical trial approval for anti PCSK9 monoclonal antibody from NMPA. The world’s first in human anti-BTLA antibody for solid tumors was officially approved for drug clinical trials by the FDA and NMPA. From this year onwards, Junshi Biosciences pooled its efforts with Chinese science institutions to co-develop JS016, China’s first neutralizing human monoclonal antibodies against SARS-Cov-2, that has entered clinical trial, part of our continuous innovation for disease control and prevention in China and beyond. We have about 2,000 employees in San Francisco and across Maryland in the United States, as well as Shanghai, Suzhou, Beijing, and Guangzhou, China. For more information, please visit: http://junshipharma.com.

Contact Information
IR Team:
Junshi Biosciences
info@junshipharma.com
+ 86 021-2250 0300

PR Team:
Junshi Biosciences
Zhi Li
zhi_li@junshipharma.com
+ 86 021-6105 8800

Pizu Group Made Capital Injection to Anhui Jinding Mining Co., Ltd.

To Extend the Industrial Chain to Non-ferrous Metals,
Precious Metals Mining and Development industry

Pizu Group Holdings Limited (“Pizu Group” or the “Company”, together with its subsidiaries, collectively referred as the “Group”; Stock Code: 8053.HK), which is a company mainly engaged in the production and sales of civil explosives, the relevant businesses related to blasting operation and the trade business of buck commodities, announced the details of the proposed capital injection to Anhui Jinding Mining Co., Ltd (“Jinding Mining”) through its wholly subsidiary Pizu (Shenzhen) Mining Limited (“Pizu Shenzhen”).

Jinding Mining is a company engaged in the mining and processing of gold, copper and iron polymetallic ore and the sale of these mineral products. On 29 June 2020, the Group signed a capital injection and co-operation agreement with Jinding Mining through Pizu Shenzhen. Under the capital injection and cooperation agreement, Pizu Shenzhen has agreed to inject a total of RMB270 million in cash into Jinding Mining’s capital, of which RMB191,399,347 and RMB78,600,653 will be recognized as registered capital and capital reserves of the target company, respectively. The Group intends to fund the proposed capital injection with its internal resources. Within the completion of the capital injection, Jinding Mining’s registered capital will be increased to RMB375,292,836 and will be owned by Pizu Shenzhen or another wholly subsidiary of Pizu Group, with the remaining 49% owned by Jinding Mining’s existing shareholders.

By taking this opportunity, the Group hopes to extend its industrial chain to the non-ferrous metals and precious metal mining and development industry, so as to promote the diversification of the Group’s business and drive the long-term sustainable development of the Group. Jinding Mining owns considerable reserves of gold, copper, pyrite and iron ore. Among them, the total mineral reserves of gold are about 22.8 tons, including 12.9 tons identified under the mining license and 9.9 tons identified under the exploration license; while the total mineral reserves of copper are about 62.4 thousand tons, including 47 thousand tons identified under the mining license and 15.4 thousand tons identified under the exploration license. The Group is confident that Jinding Mining will generate favourable returns to the Group when it commences production.

“The acquisition of Jinding Mining is in line with the Group’s core development strategy and makes the Group’s business more diversified,” said the management of Pizu Group. “Jinding Mining’s mineral resources are of good quality and are expected to commence production in the near future, which is believed to bring significant contribution to the Group’s revenue. In addition, the mineral resources of Jinding Mining are mainly composed of gold and copper. In view of the financial environment in the next decade, we are optimistic about the future prices of mineral resources, especially gold. Therefore, we are confident that the acquisition of Jinding Mining will lead the Group to a new peak, helping it to achieve stable performance in the current challenging environment and create long-term value for the Group’s shareholders.”

About Pizu Group Holdings Limited
Pizu Group Holdings Limited (Pizu Group) is mainly engaged in the production and sales of civil explosives, the relevant businesses related to blasting operation and the trade business of buck commodities.

The Group has civil explosive production companies, business companies, blasting operation companies and distribution to blasting operation. The Company is one of the few companies which have both explosive production qualification and blasting operation qualification, is in the industry-leading position and also the only listed company on Hong Kong GEM which is engaged in civil explosive industry.With the gradual development of the business, the Group’s turnover and net profit have achieved a multiplier growth in the recent years.

Kidsland Stays Resilient during Challenging 1H 2020

Strengthens Cash Management
Continues Digitalization and Strategic Upgrade

Kidsland International Holdings Limited (“Kidsland” or the “Group”; stock code: 2122), the largest toy retailer and distributor in China, has taken immediate and emphatic measures in the first half of 2020 to strengthen its cash management so as to strengthen its solid foundation against a multitude of macro-economic headwinds, while continuing the path of digitalization and strategic upgrade.

Kidsland stays focused on executing its turnaround plan and many workstreams under the digitalization and customer-centric strategic blueprint, including launching LEGO Certified Online Store in Hong Kong, as well as the first flagship Kidsland store under the new image and brand platform in Beijing

Despite tough operating conditions, the Group stays focused on executing its many workstreams under the digitalization and customer-centric strategic blueprint. Kidsland has achieved another important milestone of its efforts in online and offline integration of the customer journey in spite of the current challenging business environment. The Group launched LEGO Certified Online Store (https://LEGO.kidslandgroup.com) in Hong Kong on 3 August 2020, offering the most diversified and comprehensive LEGO product range in Asia Pacific, which recorded strong sales on the first day of operation, with turnover exceeded HK$4 million in just one day. Also, it opened its fifth LEGO Certified Store in Hong Kong on 29 April 2020 which witnessed satisfactory results. Furthermore, the Group’s first flagship Kidsland store under the new image and brand platform was launched in Beijing on 28 August 2020.

In the first half of 2020, the Group’s revenue from Hong Kong business continued to stay resilient at approximately RMB66.3 million (1H 2019: RMB65.5 million). With intensified expense and product procurement management, the Group managed to increase its cash position from RMB36.2 million as of 31 December 2019 to RMB117.8 million as of 30 June 2020 and reduced its inventory from RMB576.4 million to RMB473.9 million. Selling, distribution, general and administration expenses also decreased by 7.4% to approximately RMB340.9 million. Excluding the non-cash impairment provision of property, plant and equipment, and right-of-use assets, selling, distribution, general and administration expenses would have decreased by 12.9%.

The Group also continuously optimised its retail network in Mainland China and renegotiated and exited loss-making retail locations. As at 30 June 2020, the number of self-operated retail points of sale consisting of retail shops and consignment counters was 717, down from 750 a year ago.

Mr. Lee Ching Yiu, Chairman and CEO of Kidsland, said, “Despite the uncertainty retail environment under COVID-19 pandemic and geopolitical uncertainty, the Group has stayed resilient and strengthened our cash position in the first half of this year, while optimizing our retail network to enhance overall efficiency. Moreover, the Group has continued our journey of digitalization and forming an O2O omnichannel that offers more comprehensive shopping experiences to customers. We will continue to improve our competitiveness to capture any opportunities from future market rebound and the ongoing consumption upgrade and sophistication.”

About Kidsland International Holdings Limited (stock code: 2122)
Kidsland International Holdings Limited (“Kidsland” or “the Group”) is engaged in the retail, wholesale, e-commerce and brand operation of toys and infant products in China. As the largest toy retailer and distributor in China, Kidsland has close to 20 years of industry experience and carry a portfolio of world-renowned, category-leading brands. The Group owns the most comprehensive online and offline sales network in China. Currently, its self-operated offline retail system includes Kidsland stores, LEGO Certified Stores, and the FAO Schwarz flagship store.

Media Enquiry:
Strategic Financial Relations Limited
Vicky Lee Tel: (852) 2864 4834 Email: vicky.lee@sprg.com.hk
Antonio Yu Tel: (852) 2114 4319 Email: antonio.yu@sprg.com.hk
Cara Lau Tel: (852) 2864 4890 Email: cara.lau@sprg.com.hk
Fax: (852) 2527 1196

China Success Finance Announces 2020 Interim Results

Persistently Devises Strategies in Financial Technology
Steadily Developing Traditional Businesses

China Success Financial Group Holdings Limited (“China Success Finance” or the “Company”, together with its subsidiaries the “Group”, stock code: 03623) is pleased to announce its unaudited interim results for the six months ended 30 June 2020.

During the reporting period, faced with challenges brought by the outbreak of Coronavirus Disease 2019 (“COVID-19”), the Group paid close attention to the market trend and adopted prudent and steady development strategies. While steadily developing its traditional guarantee business, the Group sustained its other businesses pragmatically. However, operating environment in various industry remained weary while the global economy continued to suffer from uncertainties, the steady development of the Group’s major operations was unable to offset the negative impact of abovementioned factors. During the reporting period, the Group’s loss before taxation and loss for the period were approximately RMB 2.7 million and RMB 17.5 million respectively (2019 Interim: approximately RMB19.9 million and RMB 20.8 million respectively). The Board did not recommend to distribute an interim dividend for 2020.

Mr. Zhang Tiewei, Chairman and Executive Director of China Success Finance indicated, “In the first half of the year, COVID-19 brought unprecedented shocks to the global economy. Faced with the difficult time, the Group focused on the prevention and control of epidemic, meanwhile grasping the opportunities brought by the government’s financial support to micro, small and medium sized enterprises and prosperous development in the Greater Bay Area. Through giving full play to its own advantages, the Group provided customers with more professional and efficient comprehensive financial services, while assisting customers to overcome hardships during the epidemic.”

In terms of guarantee business, with innovation and technology as its focus, the Group actively enhanced the development of financial technology business through investing resources, meanwhile exploring new service models to satisfy customers’ demand on personalized financial services during the reporting period. Capitalizing on the opportunities brought by the government’s financial support to micro, small and medium sized enterprises and the establishment of Foshan Financing Guarantee Fund, the Group further optimized its guarantee business, thereby enhancing its market competitiveness and laying a solid foundation for future business expansion.

Regarding financial leasing, factoring and asset management businesses, due to the increase of market uncertainty, the group continued to review its businesses in a prudent and pragmatic manner, in order to reduce cost and improve efficiency. Meanwhile, capitalizing on the government’s favorable policies, the Group made good use of its existing resources and actively explored opportunities in the field of integrated financial services in the Greater Bay Area, whilst strengthening its partnership with financial institutions and financial technology companies to jointly explore diversified cooperation models, thus providing customers with more comprehensive, efficient integrated financial services.

In the first half of 2020, a provision for impairment loss was recognized in the reporting period. Additionally, since the Group’s investment in associated enterprises recorded losses and operating expenses increased, a net loss was reported despite a substantial revenue growth in the Group’s major operations.

Looking forward, Mr. Zhang Tiewei said, “While the government has doubled its efforts in supporting micro, small and medium sized enterprises and the development of inclusive finance, the Group will seize the occasion to steadily develop its traditional guarantee business, while promoting the development of its financial technology business, in order to respond to market demand. In the future, the Group will continue to take root in the Greater Bay Area. With regards to market opportunities and its long-term development strategy, the Group will continue to explore new investment opportunities in agricultural projects by investments, equity purchases and acquisitions, in hopes of improving business flexibility and profitability, thus maximizing returns for investors and shareholders.”

About China Success Finance Group Holdings Limited
China Success Finance Group Holdings Limited is a leading private financial group in China, and the first financial group with guarantee service as a major business in China to be listed on the Main Board of The Stock Exchange of Hong Kong Limited. The Group has elevated from its traditional business in guarantee and microcredit since its listing, to a diversified and comprehensive financial service platform with services including asset management, fund management, investment and acquisition, financial leasing, financial guarantee, overseas capital, housing finance, and microcredit. Meanwhile, the Group maintained its business foundation in the Pearl River Delta Region with Foshan as the center, and provide comprehensive and professional financial services to the development of the Guangdong-Hong Kong-Macao Greater Bay Area.

For more information, please visit the website of China Success Finance Group Holdings Limited: http://www.chinasuccessfinance.com/

Media Enquiries:
Anli Financial Communications Limited
Ms. Judith Cheung 852-3956 1646 judith.cheung@anli.com.hk
Ms. Kenix Luk 852-3616 0807 kenix.luk@anli.com.hk

Rimba Raya launches Seruyan River Cleanup Movement 2020

In celebration of World River Day on September 27, Rimba Raya Conservation (Rimba Raya) has partnered with the Seruyan Regency Environmental Agency to launch the Seruyan River Cleanup Movement 2020 #satusampahseribubencana (one waste, one thousand disasters).

Rimba Raya Technical Director Moch. As’ari addressing the opening ceremony at Seruyan River Cleanup Movement 2020
Head of Environmental Agency Priyo Widagdo hitting the gong to mark the opening of Seruyan River Cleanup Movement 2020

The movement was launched with an opening ceremony in the pendopo (official house) of the Seruyan Regent, with the theme “Waste-Free River, Healthy Community, Beautiful Village”.

“We believe that this movement will make the people of Seruyan feel more responsible toward their own environment and appreciate the local and the planet’s health,” said Moch. As’ari, Technical Director of Rimba Raya.

“Our target is to collect 8 tons of waste from 11 villages and two sub-districts all along the Seruyan River,” said Sylviana Andhella, Executive Director of Rimba Raya.

During the Seruyan River Cleanup Movement, Rimba Raya will hold several activities. This will include writing and drawing competitions for primary to senior high school students to inspire and encourage the younger generation to be more aware of their environment and the need to protect it.

Rimba Raya will collaborate with Balai TN Tanjung Putting National Park and Orangutan Foundation International (OFI) in these activities, which will be conducted until the final event, on the 17th of September.

At the opening ceremony, the Head of the Seruyan Regency Environmental Agency said, “With this series of activities, we hope to create awareness, and an ongoing motivation to care for the environment and keep the rivers clean. With our continued efforts, we hope that the Seruyan river will become a destination for tourists which will certainly have a positive impact on the economic growth of this region.”

Rimba Raya Biodiversity Reserve is a project that focuses on Ecosystem Restoration. It aims to restore and preserve the tropical peat swamp forest which is essential habitat for orangutans and is managed under the principles of ecology, economic and social management.

Rimba Raya acts as a vital buffer zone for TN Tanjung Putting National Park. The project implements initiatives that positively impact 14 villages across two sub-districts (Seruyan Hilir and Danau Sembuluh) in the Seruyan Regency, Central Kalimantan.

Rimba Raya initiatives are developed by InfiniteEARTH with a focus on assisting local communities to improve their economic status and embrace the positive impacts of being a REDD+ project.

“We need to engage and empower local people to actively contribute to preserving the peat swamp forest. If we work together, we can protect mother earth and keep her from harm,” said Djonni Andhella, President Director of Rimba Raya.

Rimba Raya empowers local community members to play a role in protecting and conserving the peat forest with a long-term philosophy, “Local Community. Forest. Climate”. The project aims to work towards consistently achieving the UN’s SDGs, both within the project area and the bordering villages.

In addition to the Seruyan River Cleanup movement, Rimba Raya, in cooperation with the Seruyan Regency Public Health Office, has launched the Floating Clinic Initiative aiming to provide health services to communities along the Seruyan River. These services include general public health, prenatal care, pediatric care for children, as well as improved nutritional advice and supplies.

To build awareness, we have also introduced a ‘Peatland Education Program’ for primary school students, conducted in cooperation with the Peatland Restoration Agency.

All the proposed activities are conducted in accordance with COVID-19 health protocols which include social distancing, the wearing of protective masks and no mass crowding.

Contact:
Frita Junita
Communication Officer, Rimba Raya Conservation
Email: rimbarayajakarta@gmail.com

Duiba Group Announces 2020 Interim Results

Continuously Making Breakthrough Expanding Customer Base
Revenue from User Management SaaS Business Increased Significantly by 166%

Duiba Group Limited (“Duiba Group” or the “the Group”, Stock Code: 1753.HK) is pleased to announce the unconsolidated interim results of the Group for the six months ended 30 June 2020 (the “Reporting Period”).

Financial Highlights
For the 6 months ending 30 June 2020, the Group recorded:
– A total revenue of RMB 468.4 million.
– The revenue from interactive advertising business was RMB 440.0 million.
– The revenue from user management SaaS increased 166% or RMB 28.4 million from the same period of last year.
– Offline SaaS Business: The total number and the total value of the Group’s newly signed contracts (including renewed contracts) with banking customers in 1H2020 was 97 (1H2019: 18) and RMB14.8 million (1H2019: RMB1.7 million), respectively.
– The total value of newly signed contracts (including renewed contracts) of the Group’s charged user management SaaS service in 1H2020 was approximately RMB39.6 million (1H2019: RMB15.3 million) and the average charge per signed contract was approximately RMB 115,000.

For the six months ended 30 June 2020, the Group recorded a total revenue of RMB 468.4 million. During the Reporting Period, the Group further facilitated the monetization of user management SaaS business as this segment contributed rapid growth and high gross margin. The revenue generated from the Group’s user management SaaS platform business recorded an increase of 166% to RMB28.4 million during the six months ended 30 June 2020 as compared to 1H2019 mainly due to the increased number of newly contracted and renewed customers and the increased unit price. The revenue from interactive advertising business was RMB 440.0 million.

During the Reporting Period, the Group recorded gross profit of RMB67.4 million (1H2019: RMB244.3 million). The decline in gross profit was mainly due to the dramatic beating of the macro environment and advertising industry by the COVID-19 outbreak. Firstly, as the economy drag caused by COVID-19 outbreak has left the advertisers with uncertain demand and budget, the Group adjusted the incentive strategy for the core advertisers. Secondly, the health crisis has come to a staging standstill to the advertising platform’s offline traffic which contributed a higher conversion efficiency in 2019. Finally, for improving advertisement performance continuously, on the one hand, the Group increased the procurement of premium quality traffic from the core content distribution channels and optimize the revenue sharing ratio; on the other hand, the Group adjusted the incentive strategy for the core advertisers. Most of the advertisers especially the e-commerce industry has increased advertisement budgets gradually, and the advertising platform’s offline traffic recovery quickly since May 2020, the Group expects a strong revenue recovery with decent profitability after the COVID-19 outbreak.

The interactive advertising model of the Group attracts users with rich and interesting high-engagement activities, and provides users with entertainment and leisure. At the same time, the advertisements are presented in the form of discounts and benefits on the landing pages, which meets and stimulates user demand. As at 30 June 2020, the Group had designed more than 17,000 advertising campaigns, most of which were the first-of-their-kind on the market. During the six months ended 30 June 2020, the Group insisted diversified traffic strategy regarding the interactive advertising business, and built a total of 4,909 content distribution channels, achieving industry-wide coverage. Meanwhile, the Group continued to increase investment in advertising data algorithms, expanded the team of high-quality data algorithms, and increased research and development expenses by 11.6% compared with the same period last year. The average CTR (click-through rate) of the interactive advertising business reached 26.7% (1H2019: 26.5%) for the Group had continuously upgraded the products and technology.

Having initially launched the Group’s user management SaaS platform on a free-of-charge model in order to expand the Group’s customer base, the Group began charging for the user management SaaS solutions on a pilot basis in April 2018. Meanwhile, Duiba have been extending user management SaaS solutions to serve offline enterprises. As at 30 June 2020, 727 paying customers (1H2019: 568) including 159 customers from financial industry (1H2019:19) and 568 customers from other industries (1H2019: 549)had used the Group’s charged services. For the six months ended 30 June 2020, the number of newly signed contracts (including renewed contracts) for the Group’s user management SaaS business reached 345 (1H2019: 263). The total value of the Group’s newly signed contracts (including renewed contracts) in 1H2020 was approximately RMB39.6 million (1H2019: RMB15.3 million) and the average charge per signed contract was approximately RMB 115,000. Revenue from the Group’s user management SaaS business increased significantly by 166% to RMB28.4 million (1H2019: RMB10.7 million).

The sales and marketing strategy of the Group’s user management SaaS business for offline businesses is to actively explore cooperation opportunities with top brands in several sectors including retailing, catering, banking and new media. In 1H2020, Duiba continuously made breakthroughs in expanding the Group’s banking customer base. The total number and the total value of the Group’s newly signed contracts (including renewed contracts) with banking customers in 1H2020 was 97 (1H2019: 18) and RMB14.8 million (1H2019: RMB1.7 million), respectively.

In 1H2020, the outbreak of COVID-19 has caused the live broadcast events to enter the era of public awareness and use. The majority of businesses are doing live streaming for e-commerce. Duiba started to provide a complete set of Professionally Generated live content planning and supporting live products for customers in these industries since April 2020. Before the live broadcast, sufficient potential users will be formed through the training and incentive mechanism for the company’s salespersons. During the live broadcast process, the product interaction design will cooperate with the professional host to increase user engagement. For the six months ended 30 June 2020, Duiba have three paying customers which used the Group’s live broadcast SaaS service.

Looking forward to the future, Mr. Cheng Xiaoliang, chairman of the Group said “The COVID-19 outbreak has a far-reaching impact on the future economy. Enterprises are further increasing their investment in digital transformation and upgrade, especially in industries where the main business still relies mainly on offline scenarios and channels, typically represented by the banking industry. During the COVID-19 outbreak, offline outlets are unable to carry out operations, and account managers cannot visit customers, thus greatly affecting the normal development of their business. Online user management and the creation of online new user scenarios become an extremely urgent need of major banks for their business upgrade. The Group will be deeply engaged in user management SaaS business in vertical industries, and continuously upgrade and innovate our products and services, so as to create greater long-term value for banking, retail and other industries.”

Mr. Cheng added that, “The COVID-19 outbreak has a significant impact on the interactive advertising business of the Group, with the phased stagnation of the traffic for the offline consumption scenario due to the outbreak, and the budget pressures on advertisers in the industry. However, with the recovery of the domestic economy, the two negative effects have been gradually eliminated, with a significant improvement in the market environment for the continuous growth of the interactive advertising business. Looking forward to the second half of the year, the Group will adhere to the diversified traffic structure strategy of online and offline, omni-channel and full-scenario coverage for advertising traffic. In addition to the offline consumption scenario, it will further expand the traffic from WeChat mini program, digital TV traffic, and various access to traffic in the Internet of Things era after the full coverage of 5G in the future. It is the long-term relentless mission of Duiba, a young team, to help enterprises improve their efficiency!”

About Duiba Group Limited (1753.HK)
Duiba Group Limited (“the Group”) is a leading user management SaaS service provider and the interactive advertising operator in China. It provides full-cycle operation services in user acquisition,
activity retention and monetization for tens of thousands of customers in financial, Internet and other industries. This unique business model together with strong synergies between user management SaaS and interactive advertising platform laid a solid foundation for the Group to achieve rapid and sustainable growth. The Group’s user management SaaS platform offers various fun and engaging user management tools including reward points system operation, membership marketing operation, gamification operation and live broadcast SaaS service. Interactive Advertising Business including media monetization service and advertisement serving.

Moonstake, RAMP DEFI and Ruby Capital Join Forces

Moonstake announced a partnership with Ruby Capital and RAMP DEFI to take the next step for DeFi integration and expansion of the DeFi ecosystem.

Moonstake is an advanced technology company with specific focuses on blockchain and staking technologies to build Asia’s biggest staking network. Moonstake was established to develop a staking pool protocol to satisfy increasing demands in regional and global blockchain markets. Signature products are Moonstake Web Wallet along with Moonstake Mobile Wallet (iOS/Android), enabling full staking functionality and an all-in-one gateway for users to maximize the usage and potential of cryptocurrencies. Currently, Moonstake’s staking pool supports Cosmos, IRISnet, Ontology, Harmony, Tezos and most recently Cardano.

RAMP DEFI is a decentralized finance solution that focuses on unlocking liquid capital from staked digital assets. Jointly, Moonstake and Ruby Capital would engage RAMP DEFI to bring its high quality services across Asia. On August 23, 2020, the firm announced that it raised over $1 million from Alameda Research, ParaFi Capital, Arrington XRP Capital and other leading funds, with over 10 institutional investors, to deliver its “liquidity on-ramp” solution. RAMP DEFI has already partnered with IOST and Elrond as their Ecosystem Partners, with more to be announced.

Ruby Capital is a Singapore-based licensed venture capital fund manager focused on investing in and working closely with innovative high-tech startups that promote social and industrial development, and sustainable returns on investment for investors with regional exposure in China, Southeast Asia, Japan and South Korea. The firm focuses on artificial intelligence, data analytics, Fintech and consumer technology innovations, distributed ledger technologies, extended reality, quantum computing and other advanced technologies.

Last, the partners will leverage Moonstake’s technical expertise and support to help develop staking and DeFi services inside of Moonstake’s Staking Platform.

Mr. Panjun Wang of Ruby Capital and Mr. Lawrence Lim of RAMP DEFI will both be joining Moonstake’s board of advisors.

Mitsuru Tezuka, Founder at Moonstake says:
We are thrilled to add Ruby Capital and RAMP DEFI to our roster of strategic partners, and importantly, we welcome Mr. Panjun and Mr. Lim to our board of advisors. They will strengthen our team, our product offering, geographic reach, and add immense value to our ecosystem.

Lawrence Lim, CEO at RAMP DEFI says:
“This strategic partnership with Moonstake and Ruby Capital provides a strong foundation for RAMP DEFI to successfully enter and gain traction throughout Asia. The synergies created will give us strategic competitive advantages in driving rapid market adoption.”

Mr. Lawrence Lim, CEO of RAMP DEFI, was the Managing Director of Hashed.Labs, a blockchain incubator that is an official partner of the Singapore government. Lawrence was also the Head of International Growth for IOST, a leading blockchain infrastructure protocol supported by Sequoia Capital, ZhenFund, Matrix Partners and other global investors. Prior to his move into blockchain, Lawrence had spent 5 years in leading financial institutions including JP Morgan, BNP Paribas and KPMG across asset management and corporate M&A functions.

Panjun Wang, Director at Ruby Capital says:
“We take immense pleasure in leveraging our skills and network to enable Moonstake and RAMP DEFI to grow in Asian markets.”

Mr. Panjun Wang previously was the Vice President of Bibox Exchange, a leading fintech venture provides A.I.-enhanced digital asset exchange services. Prior to Bibox Exchange, PJ is Senior Investment Analyst of IP Investment Management, covering TMT, Healthcare, Properties, and Education; Other tenures including Bridge5 Asia, BCG Singapore, and J.P. Morgan.

About Moonstake (https://www.moonstake.io/)
Moonstake was recently established to develop a staking pool protocol to satisfy increasing demands in regional and global blockchain markets. Staking adopts Proof of Stake (PoS) as a type of consensus algorithm which allows cryptocurrency holders to increase the likelihood of receiving block rewards from its block validation transaction. It brings together the ability to stake and ultimately distributes block rewards based on contribution. Moonstake develops a staking pool protocol and provides business services through partners and companies. Staking is expected to help elevate the blockchain technology and work for decentralization.

Moonstake aims to create the largest staking pool network in Asia, a robust environment for the cryptocurrency holders is one of its missions. Establishing a clear partnership roadmap with Moonstake represents another significant milestone for continuing to strengthen ties with leading platforms across Asia’s burgeoning Distributed Ledger Technology (DLT) ecosystem. Lately, partnership has been announced with Emurgo, Ontology and NEO to boost staking adoption, Binarystar, Japan’s biggest blockchain hub, OIO Holdings Limited (SGX: OIO), a Singapore Catalist-Listed company and Quras, PundiX and Wanchain to create a more prosperous ecosystem together in Asia. Industry’s reputed advisors, such as Lisk, Mr. Nizam Ismail, CEO of Ethikom Consultancy and Mr. Garlam Won, Head of Marketing at Harmony, support Moonstake’s innovative journey.

About RAMP DEFI (https://rampdefi.com/)
Backed by world-class investors, RAMP DEFI is a decentralized finance solution that focuses on unlocking liquid capital from staked digital assets. Using the RAMP solution, users with staked assets can continue to receive staking rewards, retain capital appreciation potential on their staked portfolio, and unlock liquid capital to invest into new opportunities at the same time. The addressable market for staked assets today is upwards of USD22bn, and as the industry leading solution, RAMP DEFI has a vision of unlocking USD1bn or more in “Total Value Unlocked (TVU)” for users by end 2021.

About Ruby Capital (https://rubycapital.sg/)
Ruby Capital Pte Ltd., is a licensed venture capital fund manager regulated by the Monetary Authority of Singapore. The team employs industrial professionals and specialists in Singapore, Japan and China. Ruby partners with BinaryStar, Infinity Blockchain Group and others from China, Japan, South Korea, Singapore, and Europe with strong connections in Finance, IT Technology, Incubators, Education and Supply Chain industries. Ruby capital invests in artificial intelligence, data analytics, Fintech, consumer technology innovations, distributed ledger technologies (DLT), extended realities, quantum computing and other high-potential innovations.