Category: Finance

SDAI Limited: Positive Outcomes Since New Board took over in June 2023

  • S$4.0 million of interest-free loan secured when new directors took over in June 2023
  • Foo Kon Tan LLP appointed as the statutory auditor in November 2023
  • A second interest-free loan of S$4.0 million was obtained in March 2024
  • Completed audit for 18-month financial period from 1 July 2021 to 31 December 2022
  • Annual General Meeting for FP2022 scheduled to be held on 10 May 2024
  • Preparation for quarterly and full year results announcements as well as audit for financial year ended 31 December 2023 initiated
  • Significant progress made to rectify, restore and rejuvenate the Company
  • Company is well placed to work towards resumption of trading of the Company’s shares

The board of directors (the Board) of SDAI Limited (the Company” or SDAI, and together with its subsidiaries, the “Group”) today announced that its statutory auditor, Foo Kon Tan LLP (FKT), had in April 2024 completed the Group’s audit for the 18-month financial period from 1 July 2021 to 31 December 2022 (FP2022). The notice of annual general meeting of the Company (AGM) and the Company’s annual report for FP2022 were despatched to shareholders of the Company (Shareholders) on 25 April 2024 and the AGM for FP2022 will be held on 10 May 2024 at the Grand Copthorne Waterfront Hotel. The preparation for quarterly and full- year results announcements as well as the audit work for the 12-month financial year ended 31 December 2023 (FY2023) is currently underway, and the Board will announce the Group’s quarterly and full-year results for FY2023 and hold the next AGM for FY2023 as soon as possible. This is a significant step in working towards the Company’s compliance with reporting requirements for 2024 onwards.

(Seated L-R) Mdm Hao Dongting (Executive Chairperson), Mr James Beeland Rogers, Jr. (Non-Independent, Non-Executive Director), Mr Yip Kean Mun (Executive Director) (Standing L-R) Mr Lam Kwong Fai (Lead Independent Director), Mr Cheung Wai Man (Independent Director), Mr Tan Meng Shern (Independent Director)
(Seated L-R) Mdm Hao Dongting (Executive Chairperson), Mr James Beeland Rogers, Jr. (Non-Independent, Non-Executive Director), Mr Yip Kean Mun (Executive Director)(Standing L-R) Mr Lam Kwong Fai (Lead Independent Director), Mr Cheung Wai Man (Independent Director), Mr Tan Meng Shern (Independent Director)

Madam Hao Dongting, Executive Chairperson of the Board, said, “Through the effective stewardship of the new Board, we have now completed the FP2022 audit, a significant step in fulfilling our statutory and reporting responsibilities. While non-compliance issues still need to be rectified, we will continue to work on addressing these to the best of our ability to fulfil all statutory and reporting requirements.”

“I have recently extended an interest-free loan of S$4.0 million to the Company for 18 months starting March 2024 and obtained an extension on the repayment of the first interest-free loan of S$4.0 million, which had originally been due this year, to September 2025. This will address ongoing concerns and ensure adequate working capital for the Group.

We want to reassure Shareholders that the new management and Board are making significant headway in rectifying the missteps and lapses of the past, restoring processes and structures that either did not exist or were broken down and working on rejuvenating the Company by exploring new strategies and businesses to create long-term value. We thank Shareholders for their unwavering and continued trust in our efforts thus far, and the Board is firmly committed to the rebuilding process to right the ship and work towards the resumption of trading and a brighter future for the Company.” added Madam Hao.

Progress since June 2023
Since taking over the reins of the Company on 26 June 2023, the new Board, consisting of qualified and motivated individuals, has left no stone unturned in addressing the multitude of issues that the Company has been beset with over recent years that resulted in numerous non-compliance issues and systemic shortcomings, which finally led to its share suspension in July 2021.

The commitment to rectify and restore in this initial stage repays the trust and confidence of Shareholders placed in the new Board and the firm belief that a new dawn is coming for the Company following severe challenges and shortcomings.

Appointment of Statutory Auditor and FP2022 Audit
SDAI was without a statutory auditor as the last auditor did not seek re-appointment at the AGM held in March 2022 for the financial year ended on 30 June 2021. The Company was thus unable to complete its annual statutory audit for the subsequent periods. The new Board engaged FKT when it assumed office in June 2023 to fulfil the role of a statutory auditor. Due to a multitude of issues arising, amongst others, lapses in financial record keeping, outstanding legal and regulatory issues, non-compliance, risks of economic mismanagement, internal control failure and concerns on the special audits by Deloitte & Touche Financial Advisory Services Pte. Ltd. (“Deloitte”), FKT agreed in late July 2023 to commence the onboarding process.

This onboarding process took 4 months, much longer than anticipated, because of the issues that needed addressing. The Board eventually convened an extraordinary general meeting on 17 November 2023 to obtain Shareholders’ approval to appoint FKT as the statutory auditors of the Company to kick-start the audit for FP2022.

During the recently completed FP2022 audit, FKT uncovered numerous issues at risk and material differences between audited and unaudited financial statements, including, amongst other things, incomplete and inconsistent financial records and other lapses. While the Board and management have sought to address a significant portion of these issues, some of these legacy issues remain substantive. As a result, the auditor has raised various disclaimers on financial statements disclosed in the Independent Auditor’s Report for FP2022, which was announced by the Company on 25 April 2024 under the title, “Disclaimer of Opinion by Independent Auditor on the Audited Financial Statements for the Financial Period Ended 31 December 2022”.

With the issuance of the FP2022 audited financial statements, a line has now been drawn underneath the past, and the Board looks to rejuvenate the Company in the days ahead.

Special Audit Phase 2 by Deloitte
The Company had announced in July 2023 the receipt of the executive summary of the Special Audit Report (Phase 1) detailing issues with certain payroll matters and unauthorised transactions. The closure of Phase 1 is a significant step towards finalising the special audit since the appointment of Deloitte as special auditor in September 2021. The Board is now focused on finalising Phase 2 of the independent special audit with Deloitte, which relates primarily to the deviation of usage of around S$19.3 million previously raised by the Company that were fully disbursed for purposes other than the intended usage for new businesses to turn the Company around.

Loans of S$8.0 million Secured
On 27 March 2024, SDAI announced that it had obtained a second interest-free loan of S$4.0 million from Madam Hao, its Executive Chairperson, for 18 months. For the first S$4.0 million interest-free loan secured in June 2023 from Asian Accounts Receivable Exchange Pte. Ltd., SDAI has obtained an 18-month extension to 26 September 2025. The new loan of S$4.0 million and the extension of the previous S$4.0 million loan will preserve the Company’s going concern status and pave the way for the Company towards a turnaround.

The Future
The Company has also been working assiduously to accelerate the process of completing Phase 2 of the independent special audit conducted by Deloitte in compliance with statutory requirements, which will be another key factor in the resumption of trading of the Company’s shares.

In addition, the Board is working on securing new businesses and collaborations to give the Company a new lease of life. With the above positive developments, the Company is well-placed to work towards trade resumption of the Company’s shares.

Reference:
https://links.sgx.com/1.0.0/corporate-announcements/24YECQDTI3MV9XZL/10de220d34c06e821dac1c0ba01cbbdc233ed42accf83c5c8766d8851b3dc29d

About SDAI Limited
SDAI Limited (formerly known as Kitchen Culture Holdings Ltd.) was listed on the Catalist board of the SGX-ST on 22 July 2011. The Company has been suspended from trading since July 2021 after responding to the SGX- ST’s queries.

On 26 June 2023, SDAI announced changes to the Board composition, resulting in the constitution of a new Board. The immediate tasks for the Board are to resolve all the outstanding legacy issues, including settling long overdue liabilities, completing the special audit, and strengthening the internal controls so as to elevate the Company to the position of pursuing new businesses.

The Group’s principal business of distributing high-end kitchen systems, kitchen appliances, wardrobe systems, bathroom furniture, household furniture and kitchen accessories from Europe reduced significantly after its principal wholly-owned subsidiary, KHL Marketing Asia-Pacific Pte. Ltd., entered into a compulsory liquidation on 5 April 2022 from the winding up application filed by Kim Hup Lee & Co. (Private) Limited.

ISSUED BY SDAI LIMITED:
This media release has been prepared by the Company and its contents have been reviewed by the Company’s sponsor, ZICO Capital Pte. Ltd. (the “Sponsor”), in accordance with Rule 226(2)(b) of the Singapore Exchange Securities Trading Limited (the “SGX-ST”) Listing Manual Section B: Rules of Catalist.

This media release has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this media release, including the correctness of any of the statements or opinions made or reports contained in this media release.

The contact person for the Sponsor is Ms Goh Mei Xian, Director, ZICO Capital Pte. Ltd. at 77 Robinson Road, #06-03 Robinson 77, Singapore 068896, telephone (65) 6636 4201.

For media queries, please reach out to: Waterbrooks Consultants
Wayne Koo – wayne.koo@waterbrooks.com.sg +65 9338-8166
Derek Yeo – derek@waterbrooks.com.sg +65 9791-4707

Proud Investor Relations partner: https://www.waterbrooks.com.sg/ https://www.alphainvestholdings.com/

Citi, UBS, GS view positive on Fosun’s core business-focused strategy

Fosun International (HKG: 0656) has recently received bullish recommendations from multiple investment banks after announcing its 2023 annual results. On 12 April 2024, Goldman Sachs (GS) issued a research report stating that Fosun’s industrial operation profit reached RMB4.9 billion, up by approximately 20% year-on-year compared to 2022; profit attributable to shareholders of the parent company reached RMB1.38 billion. Goldman Sachs gave Fosun International a target price of HK$4.90, representing an upside of over 13%. Fosun International’s businesses in Health, Happiness and Wealth segments are expected to keep on growing steadily in the future. Goldman Sachs pointed out that although Fosun Pharma was affected by the decline in Covid-related business revenue last year, it expected a sales growth recovery in 2024; Fosun Tourism Group’s attributable profit in 2024 is expected to further improve to RMB321 million on better performance from resort operation and tourism services business; it further pointed out that the insurance business posted a net profit of RMB790 million and the profit from BCP is expected to remain strong in 2024 on elevated interest rate spread.

In its research report published at the end of March, UBS was also optimistic about Fosun International’s strategy of focusing on its core businesses, pointing out that in the future Fosun will continue to execute its disposal plans of exiting non-core assets and concentrate resources on sustainable, predictable and stable core businesses, striving to achieve more efficient resource allocation and profit growth in those areas. UBS believed that with the execution of these disposal plans, Fosun International’s profitability is expected to further improve, based on which it gave a target price of HK$6.30. With the momentum in China’s economy pick up, the execution of streamlining operations and the increasing dividends to shareholders in the future, the valuation of Fosun International will further improve.

Citi Research also issued a report in which it expressed its optimistic views about Fosun International’s market outlook. Citi Research believed that Fosun International’s profitability in 2023 was attributable to an increase in operating profit from the insurance business, a 19.2% year-on-year growth in Club Med’s business volume that exceeded expectations, and better performance in the Asset Management Division which was driven by improvement in the Group’s asset portfolio profitability. The report pointed out that Fosun will continue to look for appropriate opportunities to sell non-core and non-strategic assets and promote future development through synergies amongst subsidiaries. Citi Research gave Fosun a “Buy” rating, with a target price of HK$ 6.30, an expected increase of approximately 57%.

The Executive Centre Announces Record Revenue in FY2023 Annual Results

  • Record-breaking revenue of USD 315 million marks an 11.2% increase YoY
  • Adjusted EBITDA increased 12% YoY to USD 56 million
  • Portfolio expanded by 26 Centres across Asia, with footprint in South Asia and Middle East doubling from the pre-pandemic period

The Executive Centre (TEC), the leading premium workspace provider that serves more than 47,000 Members in 34 cities across Asia-Pacific and the Middle East, announced its annual results today for fiscal year 2023. Achieving a record-breaking revenue of USD 315 million representing a 11.2% YoY growth, these exceptional results come on the back of a series of strategic expansions and TEC’s consistency in delivering unparalleled workspace solutions and service to its customers.

TEC’s focus on the high growth regions of Greater China, South Asia and the Middle East has been a cornerstone of the company’s success. In 2023, Greater China accounted for 47% of TEC’s total revenue while South Asia and the Middle East collectively contributed 22%, reflecting robust demand for premium flexible workspaces in these markets. In terms of adjusted EBITDA, TEC witnessed a healthy YoY increase of 12%, reaching USD 56 million. Greater China, with South Asia and the Middle East collectively, were also the most significant contributors at 37% and 34% respectively. In terms of contribution by city, Singapore emerged at the top, contributing 14% to overall adjusted EBITDA.

In 2023, TEC expanded its footprint exponentially with an addition of 26 new Centres across its network. Driven by strong client demand, South Asia and the Middle East saw the most significant growth with 12 new Centre openings, effectively doubling TEC’s footprint in the region since the pre-pandemic period. There were also new Centres opening in Mainland China, North Asia, Southeast Asia and Australia, spearheaded by high demand and TEC’s commitment to understanding and servicing the unique needs of local businesses.

TEC maintained an impressive global average occupancy rate of 88% across its network in 2023, reflecting strong customer satisfaction and the growing trend towards flexible workspaces globally.

Central to TEC’s success is also its agility in adapting to the evolving needs of the modern economy and workforce. A notable highlight of the year was the growth of the Coworking & Virtual Office segment, which saw a YoY revenue increase of 15% globally. This was a result of significant growth from key markets of Southeast Asia and the Middle East with YoY increases of 35% and 37% respectively. With a comprehensive inhouse suite of professional business and operations support, the Coworking & Virtual Office offering empowers business owners and entrepreneurs to enter new markets and scale rapidly without the need to commit long-term investments in inflexible office infrastructure.

Diving into data on revenue by service, TEC’s insights revealed an uptrend in the use of physical meeting and event spaces. The segment saw a global growth rate of 39% YoY, with high levels of usage in Hong Kong, and cities such as Singapore and Tokyo. In terms of markets, notable growth rates were recorded in Greater China, Southeast Asia, and the Middle East, achieving YoY increases of 55%, 57% and 65% respectively, pointing to a resurgence of in-person collaboration and the importance of continued availability of flexible event spaces and solutions for businesses to fulfil networking and operational needs.

TEC Founder and CEO, Paul Salnikow, said: “Our unwavering commitment to service excellence and our ability to anticipate market trends have allowed us to not only meet but exceed our goals amidst a rapidly changing global business environment. We are excited to continue on this trajectory, fostering innovation and expanding our presence strategically to support our clients’ growth and success.”

With its strong financial results and a proven business model, The Executive Centre is poised to maintain its leadership in the premium workspace sector as it celebrates 30 years of excellence this year. TEC remains committed to its mission of providing exceptional service and facilities to its global members as it looks to the future with a clear vision for continued expansion and success.

About The Executive Centre
The Executive Centre (TEC) is Asia’s premium flexible workspace provider, opened its doors in Hong Kong in 1994 and today boasts over 200+ Centres in 34 cities and 15 markets. It is the third largest serviced office business in Asia.

The Executive Centre caters to ambitious professionals and industry leaders looking for more than just an office space – they are looking for a place for their organisation to thrive. TEC has cultivated an environment designed for success with a global network spanning Greater China, Southeast Asia, North Asia, South Asia, the Middle East, and Australia, with sights to go further and grow faster. Each Executive Centre offers a prestigious address with the advanced infrastructure to pre-empt, meet, and exceed the needs of its Members. Walking with Members through every milestone and achievement, The Executive Centre empowers ambitious professionals and organisations to succeed.

Privately owned and headquartered in Hong Kong, TEC provides first class Private and Shared Workspaces, Business Concierge Services, and Meeting & Events facilities to suit any business’ needs.

www.executivecentre.com

Press Enquiries
FGS Global
Crystal Chow / Kitty Lam
Crystal.Chow@fgsglobal.com / +852 3166 9838
Kitty.Lam@fgsglobal.com / +852 6306 8851

The Executive Centre
Pebble Lee
Pebble_lee@executivecentre.com / +852 3951 9888

Hong Kong Interior Design Firm Junee (JUNE) to Debut on the Nasdaq

Junee Limited, a well-known interior design company in Hong Kong, is pleased to announce that the pricing of its initial public offering (the Offering) of 2,000,000 ordinary shares at a price of $4.00 per share. The ordinary shares have been approved for listing on the Nasdaq Capital Market and are expected to commence trading on April 17, 2024 (Wednesday) under the ticker symbol JUNE, marking the company’s formal entry into the international capital market.

The company and its wholly-owned subsidiary, OPS Interior Design Consultant Limited (“OPS HK”), provides quality interior design, fit-out and maintenance services to both residential and commercial clients in the Hong Kong interior design market. The interior design service involves preliminary consulting services, conceptualizing clients’ design ideas with layout plans, and producing detailed design drawings. Fit-out work generally includes any activities making an interior space suitable for residential or commercial purposes.

OPS HK also provides a broad range of repair and maintenance services including routine home condition upkeep services. OPS HK won the Muse Design Award in 2020, and was the given Most Valuable Companies in HongKong Award 2020 by Mediazone.

For further information, please contact:
PEANUT MEDIA LIMITED
Direct Line: +86-755-61619798 x8210
Email: hswh.project@czgmcn.com 

CIRC Announces 2023 Annual Results

Expand Territory and Continuously Improve Economic Efficiency with Revenue Exceeded RMB6.6 billion to A New Level
Financial Highlights
– Recorded revenue of RMB6.635 billion, representing a year-on-year increase of 7.8%;
– Gross profit was RMB3,482.2 million, gross margin was 52.5%;
– Realized net profit of RMB776.1 million, representing a year-on-year increase of 2.8%;
– Net profit attributable to the parent company achieving RMB371.0 million.

China Isotope & Radiation Corporation (CIRC or the Company , together with its subsidiaries, the Group; HKG: 1763) announces the audited consolidated financial statements of the Group for the year ended 31 December 2023 (2023 or the Reporting Period).

For the year ended 31 December 2023, the Group operated five business segments, namely pharmaceuticals, radioactive source products, irradiation, radiation therapy equipment and related services and other businesses. In 2023, the Group continued to intensify our market development efforts and achieved continued growth in economic efficiency. For the year of 2023, the Group recorded revenue of RMB6.635 billion, representing a year-on-year increase of 7.8%; gross profit was RMB3,482.2 million, gross margin was 52.5%; realized net profit of RMB776.1 million, representing a year-on-year increase of 2.8%, with net profit attributable to the parent company achieving RMB371.0 million.

Pharmaceutical segment: Magnificent development in existing industries and businesses with steady expansion of industry influence
In 2023, in respect of pharmaceutical segment, the Group provided a stable supply of radiopharmaceuticals to domestic medical institutions and strengthened the promotion of nuclear medicine diagnosis and treatment technology to clinical departments and other market development work, while continuously promoting development in existing industries and businesses. Through academic conferences and other means, the Group conducted scientific popularization for the general public and nuclear medicine clients on new products such as “therapeutic sodium iodine-131 capsule” and scientific radionuclide, enhancing its influence in the field of nuclear medicine. In December 2023, therapeutic sodium iodine-131 capsule manufactured by HTA Co., Ltd., a subsidiary of the Group, has successfully entered the National Drug List for Basic Medical Insurance, Work-Related Injury Insurance and Maternity Insurance (2023) as a drug covered by the national medical insurance negotiations.

During the Reporting Period, the Group recorded RMB4,128.6 million in revenue from sales of pharmaceuticals, representing a year-on-year increase of 5.2%, accounting for 62.2% of the total revenue, recorded RMB1,682.8 million in revenue from imaging diagnostic and therapeutic radiopharmaceuticals, representing a year-on-year increase of 15.3%, and recorded RMB2,323.8 million in revenue from breath test.

Radioactive source products business: Successfully providing service for the Shenzhou XV manned spacecraft and remaining a high market share
In 2023, the supporting radioactive source developed by the Group for the Shenzhou XV manned spacecraft performed satisfactorily during the mission by ensuring accurate ignition command of the thrust reverser engine by the Y-altitude control device and safe and soft landing of the returning capsule, thereby guaranteeing the successful completion of Shenzhou XV manned mission. The technology of reusing retired radioactive source has made outstanding contributions in the field of applied research on circular economy, and won the First Prize of Sichuan Province Low Carbon Science and Technology Award. During the Reporting Period, a new type of domestically produced krypton [85kr] thickness gauge sources was officially launched into the market.

During the Reporting Period, the Group recorded RMB586.2 million in revenue from radioactive source products, representing a year-on-year increase of 0.9%. Gamma knife source and non-destructive testing radioactive source remained a stable and high market share, achieving growth in revenue, of which, gamma knife source realized operating revenue of RMB73 million and non-destructive testing radioactive source realized operating revenue of RMB89 million.

Irradiation business: Continuously innovating the mode of cooperation and sales revenue of new products reaching a record high
In 2023, the Company made innovation in the mode of cooperation and made deep-seated efforts to lay out its business in and explore EB curing industry, resulting in completion of technique and production line of EB plates, while arranging for EB color-coated plates and EB film so as to build EB curing industrial ecosystem. BINE High-Tech Co., Ltd., a subsidiary of the Group, successfully completed the after-sales maintenance for the 4 million curies BFT gamma irradiation equipment of Grand Ten Holdings in Malaysia, which is the first export project of BINE High-Tech Co., Ltd. and has maintained safe operation for 10 years without any incident.

During the Reporting Period, the Group actively explored the irradiation product market, with sales revenue of new irradiation products soaring to over RMB28.5 million, reaching a record high. The Group recorded RMB170.8 million in revenue from irradiation-related business.

Radiation therapy equipment and related services: Accelerating domestic manufacturing process of high-end radiotherapy equipment and the first product has successfully obtained approval
In 2023, the Group accelerated domestic manufacturing process of high-end radiotherapy equipment. On 28 September 2023, CNNC Accuray (Tianjin) Medical Technology Co., Ltd. (“CNNC Accuray”), a subsidiary of the Group, successfully obtained the medical device registration certificate issued by the National Medical Products Administration for its domestic high-end spiral tomotherapy system (TOMO C). This product has become the first domestic spiral tomotherapy product in the high-end medical field in China. The official mass production launch event and investor exchange meeting of TOMO C was held in Tianjin on 25 October.

In addition, CNHE-MDR, the outcome of the mobile digital medical X-ray photography system research and development project, was approved in June 2023 and obtained the medical device registration certificate. The Smart Cobalt-60-based Cone Beam Focused Stereotactic Therapy System project has completed the product type testing and entered the clinical trial stage smoothly. The SPECT/CT project has passed the general inspection and acceptance of the State Administration of Science, Technology and Industry for National Defence, with an acceptance rating of “excellent”.

During the Reporting Period, the Group recorded RMB933.7 million in revenue from nuclear medical equipment and related services, representing a year-on-year increase of 27.5%, and accounting for 14.1% of total revenue, making it the second largest source of revenue.

International business: Gradually deepening the global presence and making breakthroughs in a number of businesses
During the Reporting Period, the Group robustly explored the international market and exported breath test kits, radioimmunity kits, radiopharmaceuticals dispensing equipment, medical equipment and devices as well as other products to dozens of countries and regions such as Indonesia, Brazil, Peru, Colombia, Ecuador, India, Bangladesh, Singapore and Vietnam, realizing a total export revenue of RMB430 million. International business revenue from regular medical products maintained significant growth in 2023.

Marketing: Promoting brand building in an orderly manner and fully utilizing the value of the IAEA platform
During the Reporting Period, the Group deepened its brand building efforts. In May 2023, the Group successfully organized the “Sichuan Medical Isotopes and Radiopharmaceutical Industry Development Promotion Summit” in conjunction with eight departments in Sichuan Province. In September 2023, the Group contributed to and participated in the Conference on the High-quality Development of the Nuclear Technology Application Industry, the 2nd China-ASEAN Forum for Peaceful Use of Nuclear Technology, and etc. where the Group launched cooperation demonstration projects, signed business cooperation documents, and displayed nuclear medical equipment and digital exhibits for nuclear medicine. The Group participated in the Academic Annual Conference of the Nuclear Medicine Branch of the Chinese Medical Association in 2023 to launch the Radiant Intelligence 1.0 Intelligent Nuclear Medicine System, and co-hosted the 2nd International Forum on the Development of Nuclear Technology Application Industry in October 2023, fully demonstrating the CIRC’s leadership in nuclear technology application industry.

Furthermore, the Group has been actively leveraging the value of the IAEA Collaboration Center platform to enhance its international influence. In August 2023, the Group hosted the “International Training Course on Radiopharmaceuticals Preparation for the Asia-Pacific Region” in the name of the IAEA Collaboration Center for Radiopharmaceuticals and Radioactive Sources. The Group has persisted in reform of its marketing center to foster the synergistic, high-quality and safe development of its business in radiopharmaceuticals, radioactive sources and radioactive particles. In respect of the marketing of domestic nuclides, internal resources were coordinated and integrated for production, sales, distribution and services of domestic Lu-177 and Ge/Ga generators, laying the foundation for market development after reaching design capacity thereof in 2024.

Scientific research and innovation: Multiple projects conducting clinical trial and work related to intellectual properties gaining significant progress
The Group has always actively conducted research and development work on various types of imaging diagnosis and therapeutic pharmaceuticals to fill gaps in various fields of medical treatment and meet the medical needs of China. As of 31 December 2023, the Group had a number of imaging diagnosis and therapeutic radiopharmaceuticals under research and development. Among them, sodium fluorine injection has completed clinical trials and was submitted for new drug application; iodine-MIBG injection was in Phase III clinical trial; technetium sulfide colloidal injection, Ga-Dotatate injection, fluorine betazine injection, fluorine stamine injection, fluorine-L dopa injection and lutetium oxyoctreotide injection were approved for the clinical trial, and a variety of imaging diagnosis and therapeutic radiopharmaceuticals were in preclinical research and development stage.

During the Reporting Period, the Group yielded remarkable results in the work related to intellectual properties, with a total of 298 patents applied, 240 patent authorizations obtained, including 5 foreign design patent authorizations. As of 31 December 2023, the Group had 945 active licensed patents, among which there were 149 invention patents, sustaining and enhancing its technological strength. the Company had 11 registered trademarks, 38 registered copyrights, 1 national standard, 1 energy industry standard and 6 group standards issued, and 1 national standard, 1 agricultural industry standard, 4 nuclear industry standards and 12 group standards under preparation/to be released.

In terms of technological awards and honors, during the Reporting Period, the Group won 1 provincial and ministerial technology award, 4 social science and technology awards, 1 group-level science and technology award, and 3 awards in the CNNC Science and Innovation Competition.

Outlook
Looking ahead, CIRC will give full play to the unique advantages of nuclear medicine in the diagnosis and treatment of major diseases such as neurodegenerative diseases, cardiovascular and cerebrovascular diseases and malignant tumors, and provide quality products, services and integrated solutions to better protect people’s lives and health and facilitate the construction of “Healthy China”.

In 2024, the Company will firmly grasp the development opportunities, spare no effort, to maintain a good growth momentum, make every effort to drive the economic performance to a record high and practically improve the innovation and value creation capabilities, continuously strengthen the core functions and enhance the core competitiveness, and perform the three major roles of scientific and technological innovation, industry control, and safety support, in order to accomplish the planning objectives and tasks and accelerate the establishment of an internationally renowned isotope and radiation technology application products and services supply group.

About China Isotope & Radiation Corporation
China Isotope & Radiation Corporation (referred as CIRC or the Company) since its establishment in 1983, has been dedicated to exploring and developing nuclear technology applications. Boasting over 40 years of industry experience, the Company has emerged as a prominent leader in the domestic nuclear technology industry. The Group is primarily engaged in the research, development, manufacturing and sale of diagnostic and therapeutic radio pharmaceuticals and radioactive source products for medical and industrial applications, the provision of irradiation service for sterilization purpose and engineering, procurement and construction (EPC) service for the design, manufacturing and installation of gamma ray irradiation facilities and the provision of nuclear medical equipment and services such as independent clinical laboratory services to hospitals and other medical institutions.

The nuclear medicine industry is an industry with immense potential, demanding threshold, and high returns. As a leader in China’s nuclear medicine industry, CIRC is the largest domestic manufacturer of imaging diagnostic and therapeutic radiopharmaceuticals, UBT diagnostic kits and test analyzers, as well as radioimmunity analysis kits. In field of radioactive source products, it is the only core enterprise in the field of radioactive source research and application that has industrialized and scaled research and production capabilities. In field of radiation, it is the third largest radiation processing service provider in China, and the only supplier in China that provides upstream production and downstream design and installation services for radiation equipment. And two of its subsidiaries have been approved by the Ministry of Ecology and Environment of the People’s Republic of China as two of the three EPC service providers authorized to engage in the design, manufacturing, and installation of radiation equipment.

ShareInvestor celebrates 25th anniversary; Holding company rebrands as AlphaInvest

  • New corporate identity reflects Group’s evolution since its founding in 1999 and future directions
  • Group subsidiaries and trademarked data portal to retain Shareinvestor brand, as will its other product brands
  • Revamped Shareinvestor.com portal to be rolled out as part of 25th anniversary

Shareinvestor.com Holdings Pte. Ltd., the holding company of Singapore’s largest independent platform for retail investors, today announced a name change and a new logo to mark its 25th anniversary.

The new holding company name is AlphaInvest Holdings Pte. Ltd. (AlphaInvest or the Group), with its new logo and tagline as shown here:

Senior Management of AlphaInvest Group, (Left to Right) Mr Christopher Lee (Group Chief Executive Officer), Mr Shanison Lin (Group Managing Director, Investor Platforms) and Mr Lim Dau Hee (Group Chief Operating Officer & concurrent Chief Technology Officer)
Senior Management of AlphaInvest Group, (Left to Right) Mr Christopher Lee (Group Chief Executive Officer), Mr Shanison Lin (Group Managing Director, Investor Platforms) and Mr Lim Dau Hee (Group Chief Operating Officer & concurrent Chief Technology Officer).

The Group’s subsidiaries in Singapore, Malaysia and Indonesia, and its associate in Thailand, will retain the ShareInvestor (“SI”) name, as will its trademarked Shareinvestor.com market data portal and other product brands.

The new holding company identity coincides with the Group’s 25th anniversary of its founding in 1999. It better reflects the Group’s ongoing and future evolution beyond its original share market data business and its leading positions in investor relations and investor education in multiple markets in the region.

The Group’s holding company has been registered with the Accounting and Corporate Regularity Authority (ACRA) as “AlphaInvest Holdings Pte. Ltd.” and the name change took effect on 8 March 2024. See http://www.alphainvestholdings.com/ for the Group’s profile.

Mr Christopher Lee, Group Chief Executive Officer and co-founder of the Group, said: “Our mission is to empower retail investors to make informed investment decisions via our investor education and market data products. Our key challenges now are to serve the next generation of younger investors, and to expand into new asset classes. This goes hand-in-hand with growing our investor relations advisory services to enable corporates to engage meaningfully with investors. Our ultimate vision is to create better investment outcomes for all.”

Mr Lim Dau Hee, Group Chief Operating Officer and concurrent Chief Technology Officer and a co-founder of the Group, added: “For the last 25 years, we have leveraged on technologies to empower investors to make better choices. We are happy to have enabled investors to build diversified investment portfolios. AlphaInvest must continue to innovate to serve our customers and stay ahead of the game.”

The Group has had an eventful 25 years since its founding in 1999. The Group was acquired by Singapore Press Holdings (SPH) in 2008. After 10 years of profitable operations as part of SPH, the Group’s founders and management team did a management buyout in 2018 at a S$17 million valuation.

In 2023, ShareInvestor acquired and merged with InvestingNote at a combined valuation of S$30 million. InvestingNote, founded by Mr. Shanison Lin, is a social media start-up with a user base of young investors. Mr Lin, an ex-staff of Shareinvestor, is now part of AlphaInvest’s leadership team. The Group aims to further grow its reach of 300,000 retail investors and its client base of 700 public listed companies in the region.

Mr Patrick Daniel, who has chaired the Group since 2008, said: “The Group is fortunate to have a dedicated management team who have not ceased their efforts to grow the business in the face of challenging times.

“In addition to Christopher, Dau Hee and Shanison, we have Wayne Koo at Waterbrooks, Janista Taosuwan in SI Thailand, Edward Stanislaus in SI Malaysia, and Ahmad Mustafid in PTSI in Jakarta. Together, they form a strong leadership team and I’m confident that AlphaInvest will succeed in extracting synergies and in seizing new opportunities.”

Launch of revamped Shareinvestor.com portal
The revamped Shareinvestor.com market data portal provides a huge trove of data and a comprehensive set of tools for the analysis of local and global equities. Building on the new platform, the team will continue to enhance Shareinvestor.com with new functions, new features and other data elements over the coming months.

The preview version is now available to existing users and the full version will be rolled out to all users within the next few months.

Future Directions
While the company has cemented its status as Southeast Asia’s largest Investor Relations provider, the new corporate identity reflects the Group’s ongoing and future evolution. Going beyond traditional equities-based products and services is a key opportunity.

The Group is well-positioned to expand to other asset classes such as currencies, commodities and digital assets including NFTs and cryptocurrencies. The Group’s approach will be to collaborate with partners in these areas in win-win partnerships.

AlphaInvest will continue to strengthen its portfolio of well-established brands in investor relations and investor education. While retaining their distinct brand identities, there will be greater internal collaboration to capitalise on inherent synergies to add further value Group- wide.

AlphaInvest’s digital publications; Investor-One and the Inve$t weekly e-magazine – will be distributed across the region. In their visually attractive formats and with insightful content, they will reach over 130,000 investors, from novices to professionals.

The Group will further grow its InvestingNote social portal, the largest in Singapore and Malaysia. The aim is to be a virtual water cooler corner for the growing number of Gen Z and Tik-Tok Generation investors to share their investing insights, exchange ideas and network.

The Group’s Waterbrooks Consultants, which provides customised public relations, branding and crisis communications advisory services to listed as well as non-listed companies, will be integrated more closely with the Group’s Investor Relations service.

AlphaInvest is currently the organiser of several prominent events on the annual investing calendar such as InvestFair and the REITs Symposium.

Capitalising on the opportunities in the region, the Group will further expand its footprint to serve the growing investing community in Malaysia, Indonesia and Thailand.

For Investor & Media Enquiries, please contact:
AlphaInvest Holdings Pte Ltd
Christopher Lee, Director
Email: christopher.lee@alphainvestholdings.com

Waterbrooks Consultants Pte Ltd
Wayne Koo, Director
Email: wayne.koo@waterbrooks.com.sg
Phone: +65 9338 8166

About AlphaInvest Holdings Pte. Ltd. (www.alphainvestholdings.com)
Vision: Creating better investing outcomes
Mission: Empowering investors to make informed decisions and for corporates to inform and engage meaningfully with investors.

A leading regional financial services, media and technology company, AlphaInvest Holdings Pte Ltd (“AlphaInvest”or “the Group”) was founded in 1999 to empower investors by providing them with trusted products and services for informed investment decision-making. Its core areas of business span investor relations, market data tools and investor education.

AlphaInvest Group operates the largest investor relations network in the region, with a customer base of about 700 public listed companies and a reach of over 300,000 people across its platforms. The Group has over 120 employees in four countries (Singapore, Malaysia, Thailand, and Indonesia).

The Group has made several strategic investments:
– Waterbrooks Consultants Pte Ltd, investor relations/public relations firm, (www.waterbrooks.com.sg)
– InvestingNote, Singapore’s leading social media platform for retail investors, (www.investingnote.com).

InvestingNote is the largest and most active social platform for investments in Singapore and Malaysia. It is a community-driven platform designed specifically to help investors and traders to share ideas on stocks, news and insights through social networking and a variety of useful investment tools.

ShareInvestor (www.shareinvestor.com) provides online market data tools for multiple markets across its ShareInvestor Station™, ShareInvestor WebPro™ and ShareInvestor Mobile range of products.

AlphaInvest’s digital publications include:
– Investor-One (www.investor-one.com), a website on investor education, market news, corporate developments, and data analytics;
–  Inve$t, the e-magazine published weekly in Singapore and Malaysia.

AlphaInvest organises financial investment seminars and conferences for investors. Its annual large-scale events, InvestFair™ (www.investfair.com.sg) in Singapore and Malaysia, draws thousands of participants. Other key exhibition includes the largest REIT event ie REITS Symposium (www.reitsymposium.com).

Insights into CMGE (0302. HK) 2023 Financial Results: Rich Reserve of New Games Set to Drive Significant Business Growth

CMGE (HKG: 0302), a game operator listed on the Hong Kong Stock Exchange, recently released its annual financial report for the year 2023. The report revealed that the company recorded a total revenue of 2.6 billion yuan during the period. Its adjusted net profit reached 5.379 million yuan, marking an overall shift from previous losses to profitability. This represents a year-on-year growth of 103%, which can be attributed to the comparatively low base in 2022. Moreover, the company’s operating profit, after accounting for non-operating income and expenses, stood at 107 million yuan.

Mini-games Emerge as New Growth Driver; Legend of Sword and Fairy IP Licensing Expands
Among CMGE’s three core business segments—game publishing, game development, and IP licensing—the revenue from game publishing amounted to 2.13 billion yuan, constituting 81.9% of the total revenue. However, it experienced a slight year-on-year decrease. This decline can primarily be attributed to the postponement of the release of certain new games in the latter half of 2023, leading to the deferral of revenue contribution to 2024. Nevertheless, this delay lays a crucial groundwork for substantial growth anticipated in 2024.

An illustrative case is the release of Soul Land: Shrek Academy. Co-published by CMGE and Tanwan Games, the game secured a license in July 2023 and initiated a reservation campaign in August, attracting over 6 million sign-ups. Officially launched on January 31, 2024, the game swiftly ascended to the top of the free list on the Apple Store and the popular list on TapTap within the first month of its release.

Industry experts noted that one of the emerging opportunities in the game industry in 2023 was the rise of the mini-game market. This trend resulted in the success of several popular games with monthly revenue exceeding 100 million yuan. CMGE capitalized on this new wave by launching several successful mini-game products, including Legend of Sword of Nine Regions and Fire at Will, which generated over 600 million yuan in revenue. Among these games, the idle game Legend of Sword and Fairy: A New Beginning, developed in collaboration with KingNet, stood out for its consistent top ranking on WeChat’s mini-game best-selling list.

In 2023, the widespread popularity of ChatGPT injected new momentum for game research and development (R&D) through the application of AI large models. Meanwhile, CMGE’s self-developed games generated a total revenue of 215 million yuan, with an R&D investment of 370 million yuan. Despite this investment, R&D costs were actually 29.7% lower compared to the previous year, thanks to the application of AIGC technology in in-game art production and copywriting, which improved R&D efficiency.

For instance, the much-talked-about open-world game Sword and Fairy World features AI-powered NPCs whose behavior and interactions are influenced by the natural environment. This creates a lifelike social ecosystem that significantly enhances the game’s realism. Additionally, AI-powered features such as character creation, voicing, action generation, and AI-enhanced user-generated content provide players with an even more immersive and interactive experience at a lower cost.

The adage “content is king” still holds true in the game industry, where premium game quality remains a top priority. Intellectual property (IP) is a fundamental element in the creation of high-quality products and plays an essential role in attracting players to a game. According to Xiao Jian, Executive Director, Chairman, and CEO of CMGE, “IP represents a kind of cultural label, a kind of value, and even a kind of faith.”

In 2023, CMGE’s IP licensing revenue surged by 75% year-on-year to hit 257 million yuan. This reflects the growing value of core IPs in the current premium quality-oriented era. Over the past few years, CMGE has been focused on developing its flagship IP, Legend of Sword and Fairy, by partnering with leading companies in various industries to establish a comprehensive Legend of Sword and Fairy IP universe and ecosystem. This includes a wide range of areas such as gaming, film and television, animation, literature, music, derivatives, and location-based entertainment. The ultimate goal of these efforts is to unlock the full potential of this IP. In gaming, CMGE partnered with KingNet to release the idle game Legend of Sword and Fairy: A New Beginning in 2023. In film and television, the company worked with the online video site iQIYI and other companies to produce the TV drama Sword and Fairy IV (based on the game Legend of Sword and Fairy IV), which was aired on the iQIYI platform in January 2024. Additionally, CMGE collaborated with Penguin Pictures to produce Sword and Fairy, a TV drama based on the game Legend of Sword and Fairy VI, which was exclusively aired on the Tencent Video platform in January. Furthermore, Sword and Fairy I (based on Legend of Sword and Fairy I) is to be aired exclusively on the Tencent Video platform soon.

Throughout 2023, CMGE has consistently aligned its development with the trends of the game industry. Currently, the industry is experiencing a new phase of growth. However, the rationale driving this growth is evolving: A shift towards focusing on core business and fostering high-quality development is ushering in a period of “rational exuberance”, replacing the extensive growth that characterized the previous decade. Dedicated to high-quality and premium product-driven development, the company, with its three major business segments—IP game development and global publishing, proprietary IP operation, and the Chinese-style metaverse platform, is advancing towards the future with a focus on quality-oriented growth.

Poised for Significant Growth: Upcoming Sword and Fairy World Launch and Rich Product Reserves
As we have just entered 2024, it seems the game industry continues to offer new opportunities and challenges. CMGE is ready to stride forward by launching a variety of new products, which marks the onset of a new cycle of sustainable, high-quality growth. The company is confident in its ability to navigate the ups and downs of the economic cycle.

To begin with, mini-games, representing a new and growing market, are expected to continue expanding. According to current research, 84% of respondents believe that gamers are experiencing increasing fatigue and seeking lighter, more diverse gameplay options. This shift in gamers’ psychological demands aligns with the characteristics of mini-games. In fact, the market size for China’s mini-games exceeded 40 billion yuan in 2023 and is projected to surpass 60 billion yuan in 2024, according to data released by Ocean Engine, a leading digital marketing platform in China.

In 2024, CMGE will leverage its highly popular and influential game IPs to launch more than 10 mini-game products, including Country Love Story, Sword and Fairy: Wen Qing, and Naruto: Konoha Masters. These mini-games, which are mainly adapted from the App games, already have a solid reputation to build on. By combining “reputation, theme, and gameplay”, CMGE aims to address the pain points of mini-game users and create phenomenal products that cater to their preferences.

Secondly, CMGE is set to launch in 2024 its highly anticipated open-world game, Sword and Fairy World, which represents the culmination of three years of dedicated development efforts. This game, independently developed and published by the company, is an open-world experience that immerses players in the Chinese-style Xianxia fantasy genre. In June 2023, it obtained a license for launch on both mobile and PC platforms and kicked off a reservation campaign that attracted over 4 million sign-ups. It has been revealed that a billing test will be conducted soon to verify the commercial viability of the product before its official launch. The game is expected to be released within 2024.

The growing popularity of the Chinese style highlights the appeal of traditional culture. Sword and Fairy World, a Chinese-style Xianxia game, invites players into a world rich in traditional elements. Offering a myriad of engaging storylines, including the main plot, character-specific subplots, and side quests, the game is designed to allow players to delve into the depths of the human spirit. Players can perform superhuman feats, such as soaring through the skies and delving underground, to explore various realms, experiencing the exhilaration of unrestricted exploration. With its enthralling gameplay and deep cultural roots, the game is expected to be a major revenue generator in 2024.

Finally, CMGE has unveiled a lineup of highly anticipated blockbuster games scheduled for release in 2024, which will further bolster the company’s growth prospects. In terms of IP game publishing, the success of Soul Land: Shrek Academy, launched on January 31st, has already exceeded 100 million yuan in monthly revenue. The first half of the year will witness the launch of Fight Break Spheres and Soul Land: Reversed Spacetime. In the latter half, gamers can anticipate the release of new IP titles such as Daily Life of Chat Group, Naruto: Konoha Masters, and New Romance of the Three Kingdoms: The Legend of Cao Cao. Regarding independent R&D, Wenmai Interactive, a wholly-owned subsidiary of CMGE, will join forces with 37 Interactive Entertainment to promote its first-ever Three Kingdoms-themed strategic game, World of Castellan, with the goal of sustaining revenue growth and profit contribution for 2024. Furthermore, the release of the second Three Kingdoms-themed strategic game, Code: Lord, is scheduled for the latter half of the year. Additionally, Hoop City：3V3, an eSports game developed by Shanghai Zhoujing, a holding subsidiary of the company, is slated for an official launch during the summer vacation period.

In its research report, Guosen Securities highlighted the game industry’s similarity to Warren Buffett’s metaphor of “wet snow and a really long hill”, suggesting potential for sustained and profitable growth. In 2023, the game market experienced the normalization of game licensing, signaling a return to the industry’s origins and the commencement of a fresh chapter emphasizing innovation and entrepreneurship to navigate a new economic cycle. Moving into 2024, the game market entered a phase of rational exuberance propelled by high-quality games. It is only through the introduction of top-tier new products that companies can capitalize on this new growth cycle.

According to analysts, CMGE, a forerunner in IP games, possesses extensive IP reserves conducive to achieving high-quality and premium product-driven development. Indeed, the company has amassed a wealth of new, high-quality IP games across its three major business segments: IP game development and global publishing, proprietary IP operation, and the Chinese-style metaverse platform. In 2024, the company will launch these new games into the market, which, coupled with revenue contributions from longstanding products, is anticipated to bolster sustained high-growth performance.

Xiao Jian, CMGE’s Executive Director, Chairman, and CEO, stated at the Results Presentation that, “We are really confident about our prospects for 2024. With the upcoming game launches in both domestic and overseas markets, we are optimistic about achieving excellent results and driving significant revenue growth this year.”

For further information, please contact:
PEANUT MEDIA LIMITED
Direct Line: +86-755-61619798 x8210
Email: hswh.project@czgmcn.com 

CMGE Released Its Annual Performance Report: After Adjustments, Net Profit Turned from Loss to Profit, With Non-Recurring Operating Profit Reaching 107 million Yuan

On March 27th, the Hong Kong-listed company CMGE (HKG: 0302) released its 2023 annual performance report. According to the report, CMGE achieved total operating income of 2.6 billion yuan in 2023. After adjustments, the net profit reached 5.379 million yuan, marking an overall turnaround from loss to profit with a year-on-year increase of 103% due to the low base in 2022. After deducting the impact of non-operating income and expenses on profit, the operating profit stood at 107 million yuan.

It is worth noting that on March 28th, CMGE disclosed a share repurchase plan. The board of directors believes that the current trading price does not reflect the intrinsic value and business prospects of the company. They plan to use up to HK$100 million for the repurchase of shares on the open market. The board of directors may also decide to further utilize share repurchase authorization based on market conditions. The repurchase of shares will not exceed 10% of the total number of shares issued as of June 2, 2023, which is 275,267,200 shares, and the shares will be cancelled after repurchase. This move also reflects the confidence of the company’s board of directors and management team in its long-term strategy and development.

According to the financial report, in 2023, CMGE attracted over 92.87 million new registered users, marking a 9.8% increase compared to the same period. Among other key performance indicators, the average monthly active users rose to 17.05 million, a 9.9% year-on-year increase, while the average monthly paying users reached 1.19 million, up by 5.8% year-on-year. The mini-game business generated 600 million yuan in revenue, becoming a new growth point for the company.

In 2023, CMGE successfully obtained licenses for multiple games planned for release, such as “Sword and Fairy: Wen Qing”, “Ultraman: The Gathering”, “Swallowed Star: Dawn” and “Cultivation Fantasy” all of which officially launched in 2023. Concurrently, with the rapid development of AIGC technology, CMGE applied AIGC to its independent research and development as well as publishing processes, achieving cost reduction, efficiency improvement, and game innovation. According to the financial report, players under the age of 18 accounted for less than 0.01% of CMGE’s gaming revenue in 2023.

The Publishing Business Performed Steadily, With Mini-Games Emerging as A New Growth Point
In 2023, CMGE’s publishing business generated revenue of 2.133 billion yuan, with overseas revenue accounting for 10.6%. In teams of games, the role-playing card game “Sword and Fairy: Wen Qing,” co-published by CMGE and Qingci based on CMGE’s proprietary IP, officially launched in June 2023. In its first month of its launch, it ranked first in the Apple App Store’s free games list and 14th in the best-selling games list, earning a recommendation from the Hardcore Alliance Superstar. In December 2023, “Sword and Fairy: Wen Qing” launched in the Hong Kong, Macao, and Taiwan regions, ranking the first in the Apple App Store’s free games list and the best-selling games list in these three areas, with third place in Taiwan’s best-selling games list.

Additionally, the card mobile game “Cultivation Fantasy” developed by Love Games with investment from CMGE, was launched in May 2023. In its first month of its launch, it ranked first on TapTap’s hot list and achieved third place in the Apple App Store’s free games list and 21st place in the best-selling games list.

The jointly distributed game “Soul Land: Shrek Academy” by CMGE and TanWan Games obtained its game license in July 2023. In August 2023, it began pre-registration activities, attracting over 6 million pre-registered players. It was officially launched on January 31, 2024, and in its first month of its launch, it ranked the first in the Apple App Store’s free games list and topped TapTap’s hot list.

While the performance of new games has been outstanding, previously launched games have also provided stable revenue streams for CMGE. CMGE’s self-published games like ” The New Legend of The Condor Heroes: Iron Blood and Loyal Heart”, ” Rakshasa Street: Chosen One” and ” Soul Land: God of Battle Arise”, as well as co-produced games with third parties like ” One Piece: The Voyage ” and ” Dynasty Warriors: Hegemony” along with other games already in operation, continued to contribute revenue and profits to CMGE in 2023.

At the same time, CMGE has been actively expanding its mini-game segment. As of 2023, CMGE has launched multiple mini-games such as “Sword and Fairy: Jiuzhou” and “Fire at Will” bringing in revenue exceeding 600 million yuan. The newly authorized mini-game “Country Love Story” by Ben Shan Media started monetization tests at the end of 2023 to validate its commercial model, with plans for an official launch in the first half of 2024. Mini-games have become an incremental segment in the game industry, with the market showing rapid growth. According to data from Qutoutiao Engine, the overall market size of Chinese mini-games exceeded 40 billion yuan in 2023 and is expected to surpass 60 billion yuan by 2024. With such rapid market growth, the mini-game segment is poised to become a new growth curve for CMGE.

Looking ahead to 2024, CMGE’s publishing business still holds many highlights. Multiple heavyweight IP games like “Soul Land: Reversed Spacetime”, “Fight Break Spheres”, “Naruto: Konoha Master”, “New Romance of the Three Kingdoms – The Legend of Cao Cao ” and “Daily Life of Chat Group” are planned for market launch in 2024, with many of them already completing testing and opening pre-registration.

Additionally, CMGE will continue to aggressively promote the mobile game “Sword and Fairy: Wen Qing” in the Hong Kong, Macao, and Taiwan regions, and plans to sequentially launch games like “Soul Land: Shrek Academy”, “Fight Break Spheres”, “Soul Land: Reversed Spacetime” and “Code: FA” in these regions. Furthermore, CMGE will introduce the mobile game “New Romance of the Three Kingdoms – The Legend of Cao Cao” in the Japanese market to boost gaming revenue in overseas regions.

Moreover, CMGE anticipates launching over 10 mini-game products in 2024, including “Country Love Story”, “Sword and Fairy: Wen Qing” and “Naruto: Konoha Master” These games have all obtained licenses and are expected to generate substantial publishing revenue for CMGE.

Self-Developed Business Steadily Progresses; Open-World Game “Sword and Fairy World” Has Achieved 4 million Pre-Registrations and Will Commence Commercial Testing.

In 2023, CMGE’s R&D revenue reached 215 million yuan, with R&D investment totaling 370 million yuan. During the reporting period, CMGE applied AIGC technology to aspects like artistic production and copywriting in games, reducing game development costs and improving development efficiency.

In terms of self-developed games, CMGE’s wholly-owned subsidiary Wenmai Interactive independently developed the Three Kingdoms-themed strategy mobile game “World of Castellan” exclusively distributed in the domestic market by 37 Interactive. It officially launched in November 2023 and received a recommendation from the Hardcore Alliance Superstar in its first month of its launch.

It is understood that “World of Castellan” is the first Three Kingdoms-themed strategy game launched by CMGE. With CMGE’s and 37 Interactive’s experience in promotion and publishing, CMGE is expected to enter the Three Kingdoms-themed strategy game arena and secure a position through “World of Castellan” In 2024, CMGE will continue to develop and launch its second Three Kingdoms-themed strategy game, “Code: Lord” with the aim of gaining more market share in the Three Kingdoms-themed strategy game category.

In terms of esports games, CMGE’s holding subsidiary Shanghai Zhoujing has developed the sports competitive PC game “Hoop City：3V3”, which obtained its license in May 2023 and commenced monetization tests on December 29, 2023. It is scheduled to be launched officially in the summer of 2024.

Before 2023, CMGE’s self-developed games such as “The World of Legend – Thunder Empire”, “Legend of Dragon City”, chess and card games, PC games, and cloud games have been continuously updated and iterated, contributing steady revenue to the company.

In terms of heavyweight self-developed games, the open-world game “Sword and Fairy World” based on the Sword and Fairy IP obtained mobile and PC dual-platform licenses in June 2023. “Sword and Fairy World” has started pre-registration activities, with pre-registration numbers exceeding 4 million, and underwent two rounds of testing in 2023. Monetization Tests to verify the commercial viability of the product before launch are also set to begin soon, with plans for the game to officially launch within 2024.

According to the information, “Sword and Fairy World” incorporates a substantial amount of storyline content such as mainline plots, character-specific storylines, and side quests to explore humanistic themes with players. Additionally, players can explore multiple spaces freely, experiencing the joy of surprise and exploration.

In addition to the rich storyline, “Sword and Fairy World” integrates deeply with AI. Non-player characters (NPCs) in “Sword and Fairy World” will behave and converse according to the natural environment, enhancing the realism of the virtual world. Players can also utilize AI features such as AI character customization, AI voice, AI motion generation, and AI+UGC (User-Generated Content) to enrich personalized expression, improve player interaction experience, and stimulate creativity within the virtual world.

The IP licensing business is experiencing further growth, with the value ecosystem of the Legend of Sword and Fairy IP continuing to expand.
In 2023, CMGE’s IP licensing business achieved revenue of 257 million yuan, representing a 75% growth compared to 2022.

CMGE has deeply expanded its collaboration along the entire industry chain of the “Legend of Sword and Fairy” IP, covering areas such as games, film and television, animation, content literature, music, derivatives, and location-based entertainment. CMGE has partnered with top-tier collaborators in related fields to jointly create the Legend of Sword and Fairy IP universe.

Regarding IP industry chain collaborations, CMGE successfully launched the story card mobile game “Sword and Fairy: Wen Qing” in 2023, achieving excellent results. The idle RPG game “Legend of Sword and Fairy: new start” developed in collaboration with Kaiying Network, was launched in 2023 and ranked fifth on the WeChat mini-games chart. The first fan community based on the “Legend of Sword and Fairy” IP, called ” Sword and Fairy Alliance” was opened for user registration in 2023.

In the film and television sector, CMGE has collaborated with iQiyi and others to produce “Legend of Sword and Fairy 4”, which was officially released on the iQiyi platform in January 2024. Additionally, “Legend of Sword and Fairy 6” produced by Shandong Film and Television, was also released on Tencent Video in January 2024. The television series “Legend of Sword and Fairy 1” produced in collaboration with Penguin Pictures, was completed filming in 2022 and is expected to be released in 2024.

In the animation field, CMGE has entered into a strategic partnership with Penguin Pictures to co-produce animated series for “Legend of Sword and Fairy 1” and “Legend of Sword and Fairy 3”. The trailer for “Legend of Sword and Fairy 3” was released in 2023, with plans for the full animated series to be released in 2024.

In addition to film and animation, CMGE continues to develop merchandise based on the Legend of Sword and Fairy IP. For instance, in the trendy collectibles field, CMGE collaborated with Pop Mart. Following the release of the first blind box series “Legend of Sword and Fairy Chinese Traditional Festival Series Figures” in 2022, CMGE launched the second blind box series “Legend of Sword and Fairy Chinese Traditional Musical Instrument Series Figures” for global sale in 2023.

Furthermore, CMGE collaborated with renowned partners such as LiangXiaoSuMei, Kaitian Studio under Shanghai Qikun Network Technology Co., Ltd., and Bandai Namco Entertainment (Shanghai) Co., Ltd., to release merchandise such as Han Lingsha figures, Yue Qingshu statues, and Jiu Jianxian figures in 2023. Additionally, in November 2023, CMGE partnered with Qishu Youyu, HippoJoy, and INTINY to officially launch the production of interactive image works based on the “Legend of Sword and Fairy” IP.

Additionally, CMGE has planned and is preparing to launch the Legend of Sword and Fairy Location-Based Entertainment project, which is currently in the final stages of pre-operation. It is expected to commence trial operations in four provinces and municipalities, including Shanghai, Hangzhou, Anhui, and Chongqing, within 2024. By bringing the Legend of Sword and Fairy game into real-life settings, the project aims to combine online marketing activities of the “Legend of Sword and Fairy” IP with offline activities, providing fans with a more immersive and interactive offline experience.

Looking towards the future, in line with the trend of cross-industry collaboration between game IPs and film, animation, and other industries, the Legend of Sword and Fairy IP will continue to release a wealth of high-quality content. CMGE’s establishment of an IP game ecosystem and the layout of the Legend of Sword and Fairy IP universe based on the “Legend of Sword and Fairy” IP will continue to expand the ecological value of the IP, potentially driving further growth in CMGE’s own value and ensuring sustained development.

For further information, please contact:

PEANUT MEDIA LIMITED
Direct Line: +86-755-61619798 x8210
Email: hswh.project@czgmcn.com 

The True Worth of Ageas Shares Ahead of Shareholders’ Meeting

The abandoning of Ageas’ SA/NV (AGSN:BB) bid for Direct Line Group has reignited interest in the company’s trajectory. Following the announcement of shelving a potential third bid, Ageas experienced a remarkable surge in its stock price by over 10%, reflecting a resounding vote of confidence from the market in its enduring value proposition. Furthermore, the highly anticipated decision to restart share buyback initiatives, alongside acquisition rumors and sustained strong performance, has further bolstered market optimism.

The Extraordinary General Meeting of Shareholders of Ageas, slated for April 17, is expected to be highly significant. However, historical trends indicate that attendance may fall short of the requisite 50% threshold, necessitating a rescheduled ordinary and extraordinary shareholders’ meeting (the “Meeting”) on May 15. This Meeting holds two significant focal points of interest. Firstly, Ageas Group CEO Hans De Cuyer’s tenure renewal is expected to be a significant agenda item, particularly following the company’s decision to cease its bid for Direct Line. Envisaged measures to attract investors include the potential utilization of the company’s surplus cash reserves exceeding €1 billion to recommence a large-scale share buyback program. Although Ageas has a history of implementing such initiatives, the program was paused for several years since 2022. The resumption of the buyback plan is poised to invigorate the capital markets and significantly enhance EPS, acting as a potent catalyst for the company’s stock price. As the Meeting approaches, it presents an opportune moment to delve into the financial landscape and assess the current valuation of Ageas’ stock. The undervaluation of Ageas’ shares could present an opportunity for those who recognize the potential for significant returns.

Amidst the challenges posed by the pandemic, Ageas’ Asian operations have encountered a downturn in market assessment. However, a glimmer of hope shines through its endeavors. The Taiping Life joint venture, a flagship initiative, stands tall among China’s elite insurers, highlighting its profitability amidst a competitive landscape. Particularly noteworthy is Taiping’s commendable performance in 2023. Yet, Ageas extends its footprint across vibrant markets in Thailand, Vietnam, Malaysia, India, and the Philippines. Although Ageas may not hold the majority stake in all these ventures (with the exception of acquiring the majority stake in the Indian Life JV in 2022), its strategic alliances with local financial institutions and influential family enterprises underscore its pervasive presence throughout the region. Furthermore, Ageas boasts leading positions in each market and holds a treasure trove of valuable assets. When considering past merger and acquisition transactions, it’s evident that the collective value of Ageas’ Asian operations forms a significant portion of its current market value.

Recent market rumors hint at keen interest from heavyweight buyers like Generali, BNP and possibly some Belgian banks, which is hardly surprising given Ageas’ current market cap nudging close to €8 billion, rendering it an irresistible acquisition target. Adding to the allure is the Danish Compromise, a Basel Rule that has rekindled enthusiasm for bank investments in insurers. With interest rates on the rise, banks are sitting on ample surplus cash, primed for strategic maneuvers like share buybacks and M&A activity, which could serve as a pivotal catalyst for Ageas.

Berenberg’s latest analysis paints an enticing outlook for Ageas, underscoring its current trading price at a notably low 5.9x 2025 Bloomberg consensus price-to-earnings (P/E) ratio, a sharp contrast with its historical five-year average of 8x. Additionally, Bloomberg’s average target price for Ageas stock is around €48, with KBC Securities, Berenberg, and Barclays offering target values of €50.0, €54.9, and €51.5 respectively. These varied targets suggest significant upward movement potential in Ageas’ stock price. Moreover, the enticing prospects of potential share buybacks and mergers and acquisitions (M&A) ventures further emphasize the compelling upside potential for Ageas investors.

On a standalone basis, Ageas has demonstrated stellar performance. In 2023, the company reported insurance premiums of EUR 17.1 billion, representing an 8% increase at constant foreign exchange rates, along with a steady net income of approximately EUR 1 billion. The robust performance is reflected in Ageas’ return on shareholders’ equity, which stood at 16.2%, complemented by a Solvency II ratio of 217%. Analysts anticipate continued growth in Ageas’s net profit. With an attractive annual dividend yield and the potential for buybacks, Ageas presents itself as a stable investment option, particularly appealing to shareholders focused on long-term value. Additionally, investors are patiently awaiting the development and recovery of Ageas’ Asian business, which adds to the company’s overall appeal and potential for sustained growth.

Legend Holdings Realized Revenue of RMB436 billion in 2023

  • Resolutely Advancing Innovation-Driven Enterprise Transformation and Upgrade, and Focusing on the Development of New Quality Productive Forces

Legend Holdings Corporation (HKG: 3396) announced its audited annual results for the year ended December 31, 2023 (the Reporting Period). The Company’s revenue for 2023 was RMB436,012 million (RMB, the same below), and the net profit was RMB630 million.

Against the backdrop of global economic slowdown, Legend Holdings’ operation performance temporarily suffered from pressure due to the fluctuations in the industry and capital markets; the profits contributed by Lenovo Group and Levima Group from the industrial operations segment, as well as the investment gain in the industrial incubations and investments segment, both recorded a year-on-year decrease, and the net profit attributable to equity holders of the Company recorded a loss. In response, the Company implemented proactive measures to help its subsidiaries accommodate market challenges and industry cycles’ influence and achieved initial success. Furthermore, the recovery of the capital market will boost the development of the Company’s investment businesses.

Mr. Li Peng, the Executive Director and Chief Executive Officer of Legend Holdings, said, in the year 2023, in the face of various challenges emerged in the high-quality development transformation of the enterprises, Legend Holdings remained resolute in advancing innovation-driven development strategies, proactively responded to the influence of external environment, solidly fulfilled its corporate social responsibilities, and actively integrated itself into the strategic deployment for Chinese path to modernization. Furthermore, the Company has conducted more in-depth review on its shortcomings and will be committed to coordinating high-quality development while maintaining a high-level of security. While further consolidating its foundations, the Company will fully capitalize on its accumulated strengths to seize opportunities from this new wave of technological innovation, not only to fuel the continuous improvements in its business performance but also actively contribute value to the society.

Strengthening the pillar industries and resolutely advancing innovation-driven enterprise transformation and upgrade
In 2023, Legend Holdings safeguarded the relative stability of its business foundations while implementing the new development concept in depth.

The Company accelerated the development of leading enterprises with international competitiveness and command over the industrial chain, focusing its efforts on strengthening its industrial base. Lenovo maintained its solid leading position in IT field, further consolidated its world’s No. 1 place in PC market with a significant outperformance in the market, ranking among the top three globally in the server industry, and retained as the No. 1 in the global TOP500 and Green100 in terms of high-performance computing. At the same time, Lenovo took the lead in launching the world’s first AI PC, and committed to leading the PC industry in intergenerational upgrade, and to creating the first inclusive AI terminal. After completing the domestic substitution of EVA photovoltaic adhesive film materials, Levima Advanced Materials has once again entered into the field of POE (Polyolefin elastomer), breaking the monopoly held by foreign countries in production and technology of POE, and multiple projects will be put into production in the first half of 2024. With the steady development of its businesses, Fullhan Microelectronics has made solid and in-depth efforts in the three major business areas of smart video, smart IoT and smart automotive products, accelerated the introduction of new products, penetrated new market opportunities, and possessed the capability of supplying complete one-stop solutions.

Continuously enhancing the ability in scientific and technological innovation, increasing investment in research and development, the Company continued to strengthen the exploration and practice of its AI innovation path. In 2023, the R&D expenditure of the Company reached RMB14.8 billion, raising its R&D expense ratio from 2.6% in 2021 to 3.4% in 2023. At the same time, it actively promoted its subsidiary funds to increase support for China’s innovative hi-tech enterprises, and invested in more than 100 Chinese innovative hi-tech enterprises throughout the year. In the field of artificial intelligence, which is an important engine for the development of new quality productive forces, the Company has invested in more than 200 related enterprises, formed a full-stack portfolio covering “device, technology, model, platform, and application”, securing a first-mover advantage for the development of the “AI+” initiative. On March 8, 2024, Legend Holdings entered into a strategic cooperation agreement with Zhipu AI to carry out in-depth cooperation in the field of artificial intelligence.

The Company continued to harness the role of industrial chain leader and actively promoted the digital and intelligent transformation and growth of SMEs, which has gained considerable achievements. Its subsidiary, Lenovo, can provided SMEs with not only a full matrix of smart devices, but also stable computing power for all scenarios, hybrid cloud, industry solutions, and life-cycle intelligent transformation services. It has served over a million SMEs and supported the intelligent transformation of over 30,000 specialized and innovative enterprises, including over 3,000 national specialized and innovative “little giant” firms.

The Company also strengthened its attention on early-stage technologies and explored approaches to integrated development across education, technology, talent, and industries. The “Legend Holdings Forward-looking Technology Research Institute , set up by the Company, has initially built an enterprise-led and market-oriented technology innovation system leveraging collaboration among industry, academia, research institutes, and end users. It has established connections with more than 60 enterprises and research institutions to discuss IP co-creation and cooperation modes, and preliminarily selected 39 seed technologies, and initiated in-depth cooperation with 2 universities and 7 domestic and foreign enterprises.

Practicing low-carbon development and actively fulfilling corporate social responsibilities
Legend Holdings has consistently promoted its subsidiaries to seize the green and low-carbon development and actively responded to the national strategy of carbon peaking and carbon neutrality. Lenovo was the first company in China to pass the net zero target verification by the Science Based Targets initiative (SBTi) and has zero-carbon factories with the highest-standard in the industry. Levima Advanced Materials, as a state-level High-tech enterprise and Green Factory, deepened its layout in green industries such as new energy materials and biodegradable plastics, contributing to the achievement of Chinese de-carbonization goals.

Rural revitalization and technological innovation are the focused areas of Legend Holdings for its corporate social responsibility. In terms of rural revitalization, the Company has launched the “Legend Enterprising Class” with a focus on education in underdeveloped areas, providing assistance for the talent pool of rural industry revitalization over the past 20 years. The Revolving Loans for Mothers, a project supported by the Company since 2018, has helped women from low-income families in many areas to start businesses with local characteristics, promoting their hometowns towards improving agriculture by high-quality and green products while giving first priority to effectiveness. In terms of technological innovation, the Company remained committed to building an entrepreneurial ecosystem conducive to technological innovation and supported the growth of high-tech entrepreneurial leaders. For instance, the public welfare training program for start-up CEOs launched in 2008 has admitted approximately 1,300 entrepreneurs. Currently, 55 enterprises founded by the trainees have been successfully listed, while 122 have been selected as national specialized and innovative “little giant” firm, providing employment for nearly 400,000 people.

Developing new quality productive forces and deepening the establishment of core competitiveness
The “give great impetus to the development of the modern industrial system and accelerate the development of new quality productive forces” proposed in this year’s government work report provided new guidance for the development of enterprises. In the future, the Company will focus more on “technological innovation”, fully capitalize on its 40 years of industrial accumulation, ecological layout and technological & innovative investment, highlight the development of new quality productive forces and deepen the establishment of the Company’s core competitiveness.

The Company will continue to promote the strategic transformation of itself and its subsidiaries to build a more robust industrial foundation; further optimize the business layout and financial structure, accelerate the backflow of resources, and incline to make investment in the field of scientific and technological innovation; in combination with the trend of the capital markets, the Company will actively promote the capital operation of quality enterprises to help them develop faster and become better, and effectively increase its public value; continue to give full play to the exploration and cultivation of the early-stage technologies by The Legend Holdings Forward-looking Technology Research Institute, with a focus on the forward-looking needs in three major fields of intelligent sensing, new materials and new energy. It will accelerate the advancement and implementation of innovative incubation topics which are our key layout, such as photonic integration to fill the shortcoming of AI’s new computing, biodegradable new materials for treating white pollution, and virtual power plant algorithms oriented for the optimization of the new type of electric power system.

Mr. Ning Min, Chairman and Executive Director of Legend Holdings, said, in 2023, in the face of multiple internal and external challenges, Legend Holdings, on the one hand, consolidated its industrial foundation and strengthened its risk-resistant capability, and on the other hand, put the implementation of the innovation-driven development strategy and support for high-level scientific and technological self-reliance in a more prominent position, confronted the difficulties, conducted positive explorations, and made solid progress in operations. This year marks the 75th anniversary of the founding of the People’s Republic of China, and in accordance with the deployment of the Central Economic Work Conference, the Company will stay true to its original aspiration of serving the country through industry, consciously practice the people-centered philosophy of development, and accommodate itself to the trend of the times by actively participating in scientific and technological innovation-led high-quality development, to vigorously promote the development of new quality productive forces and make greater contributions to Chinese path to modernization.