Strategic Partnership to Boost Artroniq’s Foothold in the ASEAN Electric Motor Sector
Artroniq Berhad, a key contender on the ACE Market, is thrilled to announce that its wholly-owned subsidiary, Artronic Itech Sdn. Bhd. (AiTech or Distributor), has entered into a transformative Distribution Agreement with PT. Terang Dunia Internusa, the parent company of Indonesia’s renowned United Motors. This landmark deal aims to propel Artroniq and PT. Terang to the forefront of the burgeoning electric vehicle (EV) market while enhancing their reach across the ASEAN economic community.
Marcus Chin Choon Wei, Chief Financial Officer of Artroniq Berhad
[L-R] Marcus Chin Choon Wei, Chief Financial Officer of Artroniq Berhad Hendry Mulyadi, Director of PT. Terang Dunia Internusa (United Motors)
United Motors, a subsidiary of PT. Terang Dunia Internusa, has been an industrial stalwart in Indonesia since its inception in 1971. Transitioning from a spare parts importer to an electric mobility pioneer, the company has launched a diverse line of electric motor products under the United E-Motor brand. Their commitment to electric mobility was further solidified with the opening of a dedicated electric vehicle and bike factory in Curug, Tangerang.
Under this Distribution Agreement, Artronic Itech Sdn Bhd, a wholly-owned subsidiary of Artroniq, is appointed by PT. Terang Dunia Internusa as the exclusive distributor for electric motor products in Malaysia. Products will be purchased in a Completely Knocked Down (CKD) state and assembled at Artronic Itech’s factory in Malaysia.
The signing of the Distribution Agreement was witnessed by Dr. Ir. Budi Karya Sumadi, the Indonesian Minister of Transportation; Dr. Jerry Sambuaga, the Deputy Minister of Trade of Indonesia; Drs Hendro Sugiatno, Director General of Land Transportation of Indonesia; and Mr. Budiharjo Iduansjah, General Chairman of HIPPINDO (Himpunan Peritel & Penyewa Perbelanjaan Indonesia/Association of Indonesian Shopping Centres, Retailers and Tenants).
Marcus Chin Choon Wei, Chief Financial Officer of Artroniq (Link) Mr. Marcus Chin Choon Wei, CFO of Artroniq, commented, “This Distribution Agreement marks a momentous leap forward for Artroniq, a pivotal step in our relentless pursuit of excellence in sustainable transportation and technological innovation. We are committed to not only meeting but exceeding the evolving needs of our customers and partners. This agreement perfectly aligns with our core values of sustainability, quality, and progress. It fortifies our position as a key player in the ASEAN region’s electric mobility sector and underscores our unwavering dedication to reducing environmental impact while driving progress.”
Hendry Mulyadi, Director of PT. Terang Dunia Internusa (United Motors) added, “Artroniq’s unwavering dedication to innovation and sustainability seamlessly complements our strategic vision at PT. Terang Dunia Internusa. We are embarking on a journey that goes beyond mere collaboration; it is a synergistic partnership aimed at shaping the future of sustainable transportation across ASEAN. Together, we will harness the power of technology, innovation, and shared values to drive positive change. This agreement is not just a milestone; it is a testament to our collective commitment to creating a greener, more connected, and sustainable future for the ASEAN region and beyond.”
As at 11 September 2023, the share price of Artroniq is RM0.82, representing a market capitalisation of RM323 million.
“Think Business, Think Hong Kong” Paris provides insights for French businesses to capture opportunities in GBA and Asia
As part of the second largest economy in the world, the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) with a population of 86 million is a new driver of Hong Kong’s economic development and an ideal springboard for international companies to enter the Mainland China market.
HKTDC will take its mega promotion campaign, Think Business, Think Hong Kong, to Paris on 19 September.
The Hong Kong Trade Development Council (HKTDC) will take its mega promotion campaign, Think Business, Think Hong Kong, to Paris on 19 September. The event will explore the current market landscape of the GBA and its interconnectivity with Mainland China.
Prominent business leaders will share their successes and insights on how French and European companies can capture the vast opportunities in the GBA by leveraging the Hong Kong platform. They include Mr Laurent Doucet, Vice President of the China Committee of The French Chamber of Commerce and Industry in Hong Kong and Partner of Roland Berger, Ir Andrew Young, Associate Director (Innovation) of Sino Group, Mr Nicolas Vanderchmitt, Partner and Head of Hong Kong Office of LPA-CGR Avocats, and Ms Delphine Lefay Dultzin, Co-Founder & CEO of OnTheList.
The GBA has emerged as a global hub for innovation, with rapidly evolving breakthroughs in finance and healthcare. Thematic sessions on these hot topics, including green finance and sustainability, will be held. Innovative global business leaders will share their insights, including representatives from the Hong Kong Science and Technology Parks Corporation, Hong Kong Monetary Authority, Moody’s Investors Service, Credit Agricole Corporate and Investment Bank, J.P. Morgan, Hong Kong Exchanges and Clearing Limited as well as start-ups.
At the event, Dr Peter K N Lam, HKTDC Chairman, Mr Paul Chan, Financial Secretary of the HKSAR, and Mr Olivier Becht, France’s Minister for Foreign Trade, Economic Attractiveness and French Nationals Abroad will deliver opening remarks at the symposium.
There will be extended networking activities, with Hong Kong SAR Government officials and business leaders from across sectors, including technology, finance and professional services, taking part in the programme. One-on-one business consultations, on-site business matching with French companies as well as the Hong Kong Dinner provide many opportunities for the business communities of France and Hong Kong to connect.
Strong France-Hong Kong ties France is a close trading and investment partner to Hong Kong. In 2022, it was Hong Kong’s third largest trading partner within the EU. Regarding bilateral investment, France was the largest EU investor in Hong Kong at the end of 2021, with Hong Kong ranked as the fifth most popular destination for French investment in Asia. Hong Kong investors have also made substantial investments in France, with the city the third largest Asian investor in the country. In terms of commercial presence, France ranked just behind Germany among EU members in the number of companies established in Hong Kong. As of 2022, there were 365 French companies in Hong Kong.
Hong Kong an ideal business partner Hong Kong has consistently ranked highest on economic freedom and competitiveness. Its institutional strengths, including the free trade and investment regimes, a simple and low tax system and free flow of capital and goods offer a favourable business environment for investors.
Beyond trade and finance, Hong Kong offers exciting prospects in innovation and technology (I&T) for French start-ups. Entry into or expansion in Mainland China as well as conducting joint research can help French enterprises further grow their business. With its aim to create an I&T new hub of 30,000 hectares, Hong Kong’s Northern Metropolis project also offers many opportunities, which will be highlighted at the symposium.
Hong Kong’s strategic location as an international financial, fundraising and investment hub and as the international gateway between Mainland China and the rest of the world presents immense opportunities for French companies seeking to expand in the GBA, Mainland China, Belt and Road countries and ASEAN.
About HKTDC The Hong Kong Trade Development Council (HKTDC) is a statutory body established in 1966 to promote, assist and develop Hong Kong’s trade. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via research reports and digital news channels. For more information, please visit: www.hktdc.com/aboutus. Follow us on Twitter @hktdc and LinkedIn
Media enquiries HKTDC’s Communication & Public Affairs Department: Snowy Chan, Tel.: +852 2584 4525, Email: snowy.sn.chan@hktdc.org
HKTDC survey reveals why companies ‘go out’ to the Belt and Road and RCEP via Hong Kong
Some 90% of Mainland China-based companies planned to expand their level of international business activity in the next one to three years, in line with the national drive to “go global”. This commitment was highlighted in Hong Kong as the Premier Platform for Mainland Companies to Expand to BRI and RCEP Markets, a major survey released today (5 September 2023) by the Hong Kong Trade Development Council (HKTDC).
Wing Chu, Principal Economist (Greater China Research Team) of HKTDC (left); and Irina Fan, Director of HKTDC Research
More than 70% of these firms focused on countries that were Regional Comprehensive Economic Partnership (RCEP) signatories or Belt and Road Initiative (BRI) beneficiaries. Tellingly, the findings also showed that more than 60% of mainland enterprises preferred engaging Hong Kong-based professional service providers to ensure successful international expansion.
Commenting on the survey findings, Irina Fan, Director of HKTDC Research, said: “This survey more than confirms Hong Kong’s status as a ‘super-connector’, one uniquely well-positioned to help mainland companies make good on their global expansion plans. Within the shifting global economic landscape, Hong Kong’s well-established business platform remains a preeminent resource. The city’s extensive array of premium financial and professional services and comprehensive international network make it the perfect partner for any business looking to optimise its outcomes within the RCEP region, along the BRI routes or, indeed, pretty much anywhere else in the world.”
Expanding on the survey’s findings, Wing Chu, Principal Economist with HKTDC Research, identified four key areas in which mainland businesses planned to expand overseas operations. Mr Chu, who heads the Greater China Research Team and had overall responsibility for the survey, said: “The four priority expansion areas appear to be logistics and transport, as singled out by 28.8% of respondents, marketing and sales (26.9%), factories (23.3%) and overseas procurement (15.9%).
“Drilling down into the findings, the survey also shows that 62.1% of expansion-minded mainland companies favour Hong Kong as a source of professional-service support, while only 47.7% would opt for mainland service providers. In more specific terms, most Greater Bay Area-based businesses designated Hong Kong as their preferred service provider locale, while their Yangtze River Delta counterparts divided their needs more or less evenly across Hong Kong and Shanghai.”
Responding to another finding, which showed 83.9% of survey participants were driven to expand internationally by concerns over long-term viability of their traditional markets, Ms Fan said: “Geopolitical tensions, falling demand and economic uncertainties have all reduced confidence in many of the traditional overseas markets. As a result, 71.6% of expansion-oriented mainland businesses are targeting one or more of the 14 overseas RCEP member nations, while 64.3% expressed interest in venturing into the emerging markets along the routes of the BRI and beyond, including those located in the Middle East, Central and Eastern Europe, South America or Africa.”
Survey methodology and remit Between May and July this year, HKTDC Research surveyed 791 mainland enterprises operating primarily in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and the Yangtze River Delta region. The survey had two primary objectives – improve understanding of the overseas expansion plans of participating businesses and build up a clearer picture of diverse challenges they face.
To gain a wider perspective, HKTDC Research also conducted in-depth interviews with recognised experts in many of Hong Kong’s professional service industries, including representatives of the legal and financial sectors. The consensus was that the many areas in which Hong Kong could boost outward-bound mainland businesses included negotiating with overseas partners; overseeing legal, investment and general business arrangements; financing arrangements, providing project valuations and meeting due-diligence obligations, as well as assisting with tax planning, risk management and compliance with overseas regulatory requirements. It was also noted that Hong Kong offered exemplary international and regional logistics services and possessed unrivalled expertise when it came to ensuring products / services complied with a wide range of overseas standards and legal obligations.
The Eighth Belt and Road Summit To fully capitalise on the many emerging BRI opportunities and celebrate the 10th anniversary of the programme, the eighth edition of the Belt and Road Summit, jointly organised by the Government of the Hong Kong Special Administrative Region (HKSAR) and the HKTDC will take place at the Hong Kong Convention and Exhibition Centre (HKCEC) on 13 and 14 September (Wednesday and Thursday) The Summit fully aligns with the objectives of China’s 14th Five-Year Plan, which emphasises the key roles Hong Kong and Macao are set to play in the ongoing rollout of this vast infrastructure development and trade facilitation programme.
The Belt and Road Summit will assemble more than 80 key officials and business leaders from many of the countries and regions along the BRI routes, as well as investors, project stakeholders, operators and service providers from around the world. Together, they will provide an overview of the programme’s landmark achievements throughout the past decade and detail many related future investment and business opportunities, while showcasing the unique benefits of the Hong Kong platform.
About HKTDC The Hong Kong Trade Development Council (HKTDC) is a statutory body established in 1966 to promote, assist and develop Hong Kong’s trade. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via research reports and digital news channels. For more information, please visit: www.hktdc.com/aboutus. Follow us on Twitter @hktdc and LinkedIn
On August 28, CMGE (HKG: 0302) held its mid-term performance conference for 2023. Xiao Jian, the Executive Director, Chairman and CEO of CMGE, announcing H1 2023 results, said CMGE’s revenue reached RMB 1.535 billion, with a year-on-year growth of 24.6%; the profit attributable to the owner of the parent company during the period was RMB 56.824 million, and the net profit after adjustment was RMB 76.168 million, achieving a year-on-year turnaround.
In terms of the KPI, the monthly average active users of CMGE in the first half of 2023 increased to 15.627 million, with a year-on-year growth of 22.3%; the number of new registered users reached 48.683 million, with a year-on-year growth of 26.9%. The monthly average number of paid users and the monthly average revenue per paid user (ARPPU) also realized a year-on-year growth of more than 20%.
It is worth noting that the cost reduction and efficiency enhancement measures of CMGE have achieved new results continuously. Thanks to the application of AIGC technology, outsourcing costs in the independent R&D and distribution work of CMGE have been reduced by more than 30%, driving a decrease in the proportion of administrative expenses, while keeping the sales expense rate within 10%, further verifying the quality of growth.
In fact, in terms of a long term, CMGE has always been maintaining a stable rhythm, and its uniqueness lies in the stability. In several cycles, CMGE still maintains a consistent strategy and values: uphold the values of “integrity and trustworthiness, transparency and openness, deep thinking, and long-term strategy”, and adhere to the mission of “casting high-quality products with love”, becoming a company that is always full of love and creativity!
The stable operation of CMGE has become an example of long-term strategy: as a Chinese gaming company, CMGE deeply understands the needs of players, adheres to the unique advantages for a long time, insists on doing difficult and correct things, and relies on endogenous motivation to achieve long-term and stable commercial growth.
Long-term strategic layout: building long-term competitive barriers with IP as the core The strategy of CMGE is to focus on IP and provide high-quality IP games for global players through independent and joint R&D, creating a highly competitive IP game ecosystem. It is understood that as the No. one player in the domestic IP game field, CMGE has outstanding advantages in accumulating copyright in IP game, including its own IPs represented by Legend of Sword and Fairy and Richman, as well as authorized IPs such as Rakshasa Street, One Piece, Dragon Ball Z, Hokage Ninjia, Hitman Reborn, and Soul Land.
“We believe that IP will definitely become an important resource and barrier to competition in the gaming industry,” Xiao Jian stated at the conference.
In the second half of 2023, in the game market, it has become a consensus that the content will be refined and the cost for traffic and customer acquisition will continue to rise. Under the long-term trend of this industry, the value of CMGE’ long-term layout around well-known IPs is accelerating to emerge.
According to the analysis of Anxin Securities, it is believed that IP games have relative advantages over non-IP games in terms of user acquisition, version approval, and profit potential. High IP awareness, wide fan base, and high “absorption” ability can effectively reduce the cost for game customer acquisition. IP has a clear worldview and mainstream values, and the version number has a higher “approval rate”. IP based medium to heavy games have a longer lifecycle and greater payment depth. In summary, IP games have a higher success rate than regular games.
The financial report shows that in the first half of the year, CMGE achieved the intellectual property authorization revenue of approximately RMB 59.81 million, with a year-on-year growth of 94.4%. Among them, in the development of the IP for Sword and Fairy, CMGE comprehensively covers games, film and TV, anime, content literature, music, derivatives, and live entertainment and other fields, and collaborates with top partners in related fields to create an IP universe for Sword and Fairy.
Long-term independent R&D: reserve AIGC technology and adhere to independent R&D of products The gaming industry is shifting from a traffic-based one to a content-based one. With the deepening trend of high-quality products in the gaming industry, excellent products have become the focus of competition.
Independent R&D is necessary for creating high-quality products. In addition to consolidating the IP core advantages, CMGE is also continuously enhancing its independent R&D capabilities, increasing R&D investment, exploring core independent technologies, building its own R&D team, and forming major R&D teams such as Starry Sky, Wenmai Interactive, SoftStar Technology, and Zhoujing Network. Data shows that in the first half of 2023, the investment in the R&D of CMGE was RMB 266.9 million, with a year-on-year growth of 30.6%.
A typical example is Sword and Fairy World. In order to create the first open world metaverse game with the theme of Chinese Paladin world, CMGE took 3 years for independent R&D and have invested RMB 300 million totally. At the same time, CMGE actively explored the AIGC technology empowerment, became one of the first-batch ecological partners of Baidu’s “ERNIE Bot” in March, and reached cooperation with Microsoft in cloud computing, big data, Azure OpenAI and other fields in May to develop applications such as intelligent NPC and UGC+AIGC, so as to provide an immersive experience of “everything can interact” for players of Sword and Fairy World.
After years of persistent R&D and investment, CMGE is entering a harvest period of independently developed games. In the second half of the year, the highly anticipated Sword and Fairy World has obtained a dual-end edition No. and is expected to be launched within 2023. At the same time, the integrated SLG game City Lord’s World developed by Wenmai Interactive has entered the final testing stage. It successfully obtained a version No. in February 2023, and is planned to be exclusively released by Sanqi Mutual Entertainment in Q4 2023; the high-quality competitive sports game All-people Free Style independently developed by Zhoujing Network also obtained a version No. in May 2023, and is expected to be launched within 2023.
Epilogue Looking ahead to the second half of the year, CMGE still shows a trend of high certainty and steady growth.
In terms of distribution business, the first large-scale multiplayer role-playing mobile game Soul Land: Shrek Academy, which is developed based on the IP of Soul Land, will be launched by CMGE in Chinese Mainland in the second half of the year; Besides, a simulated mobile game adapted based on the IP of Rural Love, named Rural Love Story, will also be launched.
In terms of R&D business, multiple independently developed games of CMGE have obtained version No. and entered the final testing stage before being launched online, including City Lord’s World, All-people Free Style, and Sword and Fairy World.
In terms of IP operation, CMGE continues to explore the IP value of Sword and Fairy in film and TV, animation, and novels, and has reached a long-term strategic cooperation with Tencent Video to jointly create the race track of Chinese Paladin world and IP of Sword and Fairy; Collaborates with iQiyi on the film and TV drama Sword and Fairy IV; Collaborates with CITIC Publishing House to release a series of works on historical versions of Sword and Fairy as physical books. As the ecological value of IP universe of Sword and Fairy continues to expand, the growth space for IP licensing revenue is further opened up.
In 2022, due to the impact of the epidemic and version No., the China’s gaming market experienced a double decline in revenue and users for the first time in the past decade. However, according to the 2023 China’s Game Industry Report for the Period from January to June, the actual sales revenue of the China’s game market in the first half of 2023 was RMB 144.263 billion, with a growth of 22.16% month on month. Obviously, there are signs of a rebound in the gaming market.
The gaming market is still a large market with hundreds of billions of dollars annually. The emergence of new technologies such as AIGC has also brought new impetus to the industry. However, no matter how the gaming market changes, CMGE insists on putting players at the center and IP at the core, working steadily, releasing and producing every high-quality product to bring players the ultimate gaming experience. The time will eventually witness the victory of our long-term strategy.
For further information, please contact: PEANUT MEDIA LIMITED Direct Line: +86-755-61619798 x8210 Email: hswh.project@czgmcn.com
The procurement of a new, high-value project marks a significant milestone in Artroniq Berhad’s diversification strategy and growth trajectory.
Artroniq Berhad, a key contender on the ACE Market, is thrilled to announce the awarding of a substantial new project in the realm of E-Commerce and Retail Software Development. With a project price of RM9,596,000.00, this latest venture is slated to begin in October 2023 and will run over a span of 12 months.
Marcus Chin Choon Wei, Chief Financial Officer of Artroniq Berhad
In collaboration with Kiddie Shoppe, Artroniq’s subsidiary, EA Global Integrated Sdn Bhd (“EAG”), will provide customised services designed to propel Kiddie Shoppe’s retail capabilities to new heights. As part of the services, EAG will offer rigorous training to Kiddie Shoppe’s team, ensuring that they are adept at maximising the functionalities and features of the new software. Additionally, EAG will be responsible for ongoing maintenance and support services, all in accordance with the comprehensive Service Agreement.
Marcus Chin Choon Wei, Chief Financial Officer of Artroniq (Link) Mr. Marcus Chin Choon Wei, CFO of Artroniq, expressed his enthusiasm, saying, “This new venture is an epitome of Artroniq’s agility and adaptability in the ever-evolving technological landscape. The project not only diversifies our portfolio but also aligns perfectly with our long-term growth strategy.”
He further elaborated on the company’s strategic direction: “Securing this project augments our existing ventures and opens doors to new market opportunities. This is yet another steppingstone in the actualisation of our corporate vision. With a fortified balance sheet and a growing portfolio, Artroniq is well-positioned to scale new heights in the foreseeable future.”
The Project’s scope of work is detailed and thorough, necessitating close collaboration between EAG and Kiddie Shoppe. Any amendments to the customised services will require formal agreement, ensuring both parties are committed to achieving the highest standards.
In recent months, Artroniq has been instrumental in driving transformative changes across various sectors, including electric vehicles and now, E-Commerce. The new project provides another testament to Artroniq’s unwavering commitment to innovation and growth.
This high-value procurement adds a new layer to Artroniq’s business model, reinforcing its reputation as a versatile player in the competitive marketplace.
On August 31, 2023, Legend Holdings Corporation (HKG: 3396) announced the unaudited condensed consolidated interim results for the six months ended June 30, 2023 (the Reporting Period). In the first half of 2023, the Chinese economy recovered well in general, and high-quality development was solidly promoted. However, at the same time, the international environment remained complex and ever-changing, posing challenges to enterprise operations and development. Legend Holdings has adhered to the original aspiration of “revitalizing China through business”, deepened the implementation of the long-term development strategy core of “industrial operation, technological innovation”, and demonstrated the resilience and perseverance helping itself ride out the current economic cycle. Meanwhile, the Company actively fulfilled corporate social responsibilities to serve the overall development of the country. During the Reporting Period, the Company’s revenue was RMB201,286 million and the net profit attributable to equity holders of the Company amounted to RMB668 million.
Continuously increasing investment in scientific and technological innovation, and consolidating the cornerstone of long-term development In the first half of 2023, Legend Holdings continued to increase investment in scientific and technological innovation, providing support for the Company’s high-quality development. During the Reporting Period, the Company invested RMB7,087 million in research and development. Lenovo, a subsidiary of Legend Holdings, has accumulated over 38,000 granted and pending global patents and will invest an additional RMB7 billion in the next three years to expedite the deployment of artificial intelligence technologies and applications. Levima Advanced Materials continued to improve its independent R&D and innovation capabilities and has applied for 305 patents, 231 of which have been granted. Fullhan Microelectronics has continuously consolidated its technological foundation and obtained 272 intellectual property rights of various types. In addition, funds controlled by Legend Holdings continued to actively tap into national strategic industries such as next-generation information technology, chips, artificial intelligence, new energy and advanced materials, and invested in approximately 50 technology enterprises in the first half of the year. Especially in the field of artificial intelligence, Legend Holdings has secured certain advantages as a first mover and an ecosystem builder. It has invested in over 200 AI-related companies, covering various aspects including underlying hardware, data, computing power, algorithms, and applications, such as Zhipu AI, Cambricon Technologies, and Data Grand, etc.
Actively harnessing the role of supply chain leader, and steadily improving the competitiveness of industrial chains Based on its extensive experience in promoting the industrialization of technological achievements, Legend Holdings fully leveraged its role as a supply chain leader, actively assisted the growth of small and medium-sized enterprises, and strived to enhance the modernization and competitiveness of the industrial and supply chains. Lenovo has been listed in Gartner’s Global Supply Chain Top 25 ranking for nine consecutive years, being the highest-ranked Chinese company, and it has consistently held the top position in the Asia-Pacific region on this ranking. Lenovo’s industrial chain has cultivated 45 national specialized and innovative enterprises, 15 niche-sector leaders, and 7 product leaders. At the same time, funds under the Legend Holdings Family Group continued to re-double their efforts to incubate and grow specialized and innovative enterprises and niche-sector leaders. Taking Legend Capital as an example, it invested in 15 niche-sector leaders in the manufacturing industry and 15 state-level enterprise technology centers. The entire Legend Holdings Family Group has invested in a total of 120 national specialized and innovative enterprises.
Embracing green development, and fulfilling corporate social responsibilities Legend Holdings has been actively practicing corporate social responsibilities in key areas such as rural revitalization, technological innovation, promoting social justice, etc. At the same time, the Company continued to promote green practices within the Legend Holdings Family Group and seize green opportunities. Lenovo focuses on “zero-carbon” manufacturing, setting the goal of net zero emissions across its entire value chain by 2050, and has offered peers a science-based and scalable intelligent solution for “zero-carbon” manufacturing. As a state-level “Green Factory”, Levima Advanced Materials took the lead in achieving domestic substitution of EVA photovoltaic adhesive film materials. Zhengqi Holdings established Zhengqi Guangneng Technology Co., Ltd. to expand the field of green development. Meanwhile, funds under Legend Holdings continued to focus on green field and invested in over 50 enterprises in terms of de-carbonization technology and green investment.
In the future, Legend Holdings will continue to adhere to high-quality development led by scientific and technological innovation, actively optimize resource layout, seek new opportunities in the strategic direction encouraged and advocated by the country, promote the deepening implementation of corporate social responsibilities on an ongoing basis, and contribute to the Chinese path to modernization with a long-term mentality.
Significant Narrowing of Operating Loss Highlights Company’s Resilience and Growth Potential
Industrialised building systems specialist, Sarawak Consolidated Industries Berhad (SCIB), is delighted to announced its financial results for the fourth quarter of fiscal year 2023 (Q4FY2023), reflecting a positive growth trajectory across key financial metrics and strategic business segments.
Ku Chong Hong, Managing Director of SCIB
Revenue for the quarter reached RM33.3 million, a 27% increase from RM26.3 million in Q4FY2022. Gross Profit grew by 73% to RM6.5 million from RM3.8 million in the corresponding period of the previous fiscal year. The Operating Loss was significantly reduced to RM18.2 million from RM47.1 million, and Loss Before Tax (LBT) improved to RM18.5 million from RM47.4 million in Q4FY2022.
In the Manufacturing segment, SCIB reported revenue of RM23.2 million, a year-to-date increase of 10%, with profit before tax of RM2.8 million. The Construction/EPCC segment registered revenue of RM10.2 million, marking a 92% increase year-to-date, with loss before tax narrowed to RM4.5 million. The growth in revenue and profitability across key segments was driven by increased sales volume of foundation piles and the kick-start of two new school projects.
“In the challenging business environment, SCIB has demonstrated resilience and adaptability, successfully navigating the market dynamics,” said Mr. Ku Chong Hong, Managing Director of SCIB. “Our growth this quarter reflects our focus on core capabilities in Engineering, Procurement, Construction, and Commissioning (EPCC) and our ability to supply crucial building materials. The future outlook for SCIB is robust, built upon a comprehensive understanding of the broader economic environment. We are well-positioned to seize growth opportunities in the domestic construction industry and benefit from strategic initiatives and prudent financial management.”
SCIB’s proactive engagement in securing small-to-mid-sized construction projects, Sarawak’s construction sector upswing, and the positive view of China’s recent RM170 billion investment commitment pave the way for enhanced growth opportunities. The Company also fortified its financial position through a private placement that raised approximately RM12.76 million in gross proceeds, underlining SCIB’s prudent financial management.
SCIB’s Q4FY2023 results illustrate a company on the move, aligning with broader economic forecasts and positioning itself well within the evolving economic landscape. The strategic approach and unwavering commitment to sustainable growth set the stage for a bright future.
SCIB’s financial position is further bolstered by an outstanding orderbook for construction contracts, standing robust at RM275 million. This orderbook reflects a promising pipeline of projects and underscores SCIB’s ability to identify and secure valuable opportunities in the market.
Aims to expand margin financing facility services and enhance digitalisation programme in stockbroking business
Mercury Securities Group Berhad, unveiled its prospectus today in conjunction with its initial public offering (IPO) and listing on the ACE Market of Bursa Malaysia Securities Berhad.
Mr. Chew Sing Guan, Managing Director of Mercury Securities Group Berhad; Ms. Alynn Lim Geok Lian, Deputy Chief Executive Officer of Public Investment Bank Berhad
Mercury Securities is an investment holding company and through its wholly-owned subsidiary, Mercury Securities Sdn Bhd (a Participating Organisation of Bursa Malaysia Securities Berhad and a Recognised Principal Adviser by the Securities Commission Malaysia) (collectively “Group”) is principally involved in the provision of stockbroking, corporate finance advisory services and other related businesses such as margin financing facilities services, underwriting and placement services, as well as provision of nominee and custodian services.
The IPO is projected to raise RM39.27 million via the issuance of 157.09 million shares at the issue price of RM0.25 per share. The proceeds will be allocated in the following manner:
RM26.86 million used for margin financing facility services;
RM2.88 million used for enhancement of digitalisation programme and marketing activities for the stockbroking business and operations of the Group;
RM4.63 million for working capital; and
RM4.90 million for estimated listing expenses.
Managing Director of Mercury Securities, Mr. Chew Sing Guan said, “We plan to leverage this listing to continue to innovate, digitise and expand our product and service offerings. With our diverse range of products and services that we now offer, which include stockbroking, corporate finance, proprietary trading, margin financing and research advisory, custodian and nominee services, we are embarking on a journey that is not just a corporate milestone, but a springboard for our group to reach higher and deeper into the capital market.”
He added, “Mercury has been profitable every single year since it started operations in 1992, despite the ups and downs of the stock market. We will be the first stockbroking company to seek and gain an IPO listing in Bursa in the last 20 years. As we embark on this new chapter, I wish to thank our talented and dedicated team, and also our clients, new and old, as well as the ones we have yet to welcome. This capital market is ever-evolving and Mercury will endeavour to likewise, and for the better.”
Deputy Chief Executive Officer, Ms. Alyn Lim Geok Lian of Public Investment Bank Berhad (“PIVB”) stated, “Mercury Securities’ long-standing presence has not just fortified their market position but also allowed them to create an enduring client base that acts as a springboard for future growth.”
She added, “This would not have been possible if it wasn’t for the strong leadership of Mr. Chew Sing Guan, the Managing Director of Mercury Securities whom has guided the Group to where it is today. We believe that the Group is in capable hands and will continue to scale greater heights and create more value for all its stakeholders.”
Pursuant to the launch of Mercury Securities’ prospectus, applications for the Public Issue are open from today and will close on 5 September 2023 at 5.00 p.m. Mercury Securities is scheduled to be listed on the ACE Market of Bursa Securities on 19 September 2023.
Upon its listing on the ACE Market, Mercury Securities will have a market capitalisation of RM223.25 million based on the issue price of RM0.25 per share and its enlarged issued share capital of 893.00 million shares.
PIVB is the Principal Adviser, Sponsor, Sole Underwriter and Sole Placement Agent for this IPO exercise.
Photo 1 [L-R] 1. Mr. Chew Sing Guan, Managing Director of Mercury Securities Group Berhad 2. Ms. Alynn Lim Geok Lian, Deputy Chief Executive Officer of Public Investment Bank Berhad ( https://photos.acnnewswire.com/20230828.SIMY1.jpg )
Photo 2 [L-R] 1. Ms. Himahlini A/P M. Ramalingam, Independent Non-Executive Director of Mercury Securities Group Berhad 2. Datin Chua Suat Khim, Independent Non-Executive Director of Mercury Securities Group Berhad 3. Dato’ Baharon Bin Talib, Independent Non-Executive Chairman of Mercury Securities Group Berhad 4. Mr. Chew Sing Guan, Managing Director of Mercury Securities Group Berhad 5. Ms. Alynn Lim Geok Lian, Deputy Chief Executive Officer of Public Investment Bank Berhad 6. Dato’ A. Rahman Bin Safar, Non-Independent Non-Executive Director of Mercury Securities Group Berhad 7. Mr. Chan Kim Hing, Independent Non-Executive Director of Mercury Securities Group Berhad ( https://photos.acnnewswire.com/20230828.SIMY2.jpg )
Since 2023, the company served the “Healthy China” strategy and continued to expand its footprint in the healthcare sector, dedicated to promoting high-quality development for improving quality and expanding quantity with expected stability and energetic growth, and continued to realize the vision of “To Be the Most Trusted Global Leader in Medical & Healthcare Services”. In the first half of 2023, the company recorded a revenue of RMB6,634.4 million in total, up by 16.1% as compared to the corresponding period of the previous year. In particular, the healthcare business recorded a revenue of RMB3,646.1 million, up by 33.8% as compared to the corresponding period of the previous year, with its proportion to the total revenue increased to 55.0%; the company recorded a profit for the period of RMB1,193.6million, up by 1.5% as compared to the corresponding period of the previous year, of which, the healthcare business contributed RMB231.6 million, up by 61.1% as compared to the corresponding period of the previous year; the company recorded a profit attributable to owners of the parent of RMB1,093.2 million, up by 0.3% as compared to the corresponding period of the previous year, of which, the healthcare business contributed RMB174.0 million, up by 88.0% as compared to the corresponding period of the previous year; and the company recorded a return on total assets (ROA) of 2.96% and a return on equity attributable to ordinary shareholders (ROE) of 15.25%. The indicators of income and the assets conditions maintained a steady and excellent performance.
Integrated Healthcare Service Steady Development: the Net Profit Margin of the Medical Institutions Increased to 5.28% The medical institutions are not only the company’s core resources to build a healthcare conglomerate, but also the R&D and training center of the Group’s discipline operation, training center of the Group’s discipline operation, as well as the project cultivation and commercialization pool and the sharing center for basic resources and practice of the industrial units. With respect to the integrated healthcare service segment, focusing on the development of the hospital group’s core capacity, the company continuously build up the competition advantages of central state-owned enterprises in running medical care,so as to facilitate positive and continuous development of Hospital of SOEs and constantly improve operation efficiency and effectiveness. As at 30 June 2023, the number of consolidated medical institutions increased to 55 (including four Grade III Class A hospitals and 26 Grade II hospitals), with a capacity of 13,893 beds in total. In the first half of the year, the consolidated Hospitals of SOEs contributed to the company a revenue of RMB3,528.0 million, up by 33.4% as compared to the corresponding period of the previous year; recorded a profit for the period of RMB186.4 million in total, up by 62.0% as compared to the corresponding period of the previous year; and the net profit margin was 5.28%, up by 0.93 percentage point from the same period of the previous year.
Specialties and Healthcare Industry Accelerating Growth: Continuous Enhancement of Competitiveness via Internal & External Strategies With the business foundation and professional core talent team of its own hospital group, the company strived to build replicable capabilities of specialties and industry operation while serving internal quality and efficiency enhancement, so as to create new profit growth drivers for the listed company. The performance contribution of this business segment mainly comes from providing hospital clients with life cycle management of medical equipment, medical devises sales and internet-based healthcare services.
In the field of nephrology, the company will focus on enhancing the core capabilities for nephropathy diagnosis and treatment of primary level hospitals, the establishment of nephropathy diagnosis and treatment flagship centers and municipal and provincial key specialties and the construction of high-quality blood purification centers. The company continuously deepened the industry layout of nephrology specialties through the scientific research results supported by digitalization. Up to the current moment, the company opened 21 new specialties departments in its member hospitals, continued to build a rapidly replicable operating system, and gradually leading to cooperation with external hospitals. In the first half of 2023, the company founded the nephropathy industry research institute, and have completed the acquisition of Beth Hesda Nephrology Hospital and Haiyang Senzhikang Hospital Co., Ltd.
In the field of oncology, the company continues to push forward the construction, operation and standardization of tumor precision diagnosis and treatment centers, pool internal and external resources to build the flagship tumor specialty diagnosis and treatment benchmark inside and outside the hospital group, develop tumor radiotherapy business product solutions, expand the chain business scale through investment/construction, and promote the standardized, collaborative and efficient development of oncology specialties.The tumor precision diagnosis and treatment center of Ma’anshan MCC17 Hospital operated by the company was opened in March 2023. In June 2023, the company concluded a cooperative arrangement with Mevion Medical Group, under which both parties will jointly establish a tumor precision medical service company as the sole platform to provide oncology radiotherapy services by both parties in the PRC, with an aim to accelerate the establishment of leading oncology diagnosis and treatment business system and intelligent oncology diagnosis and treatment platform in the PRC, continuing to empower the development of the external and internal hospitals of the company.
From the perspective of the life circle management of equipment, the company relies on its own hospital group as a team capability training and business practice base to provide hospital customers with life cycle management services for medical equipment from procurement planning, repair and maintenance to refined operation management. Based on its equipment management and operation capabilities and financial strength accumulated over the years, the company believe that it can achieve rapid improvement of the business scale and core capabilities of the equipment life cycle management through endogenous development and extensional mergers and acquisitions. So far, the company was entrusted the operation of 14 hospitals with the assets under management with a value over RMB3 billion. The value of contracts entered into in the first half of 2023 amounted to over RMB90 million. In August 2023, the company acquired 85% equity interests of Casstar Medical Technology Wuxi Co., Ltd. (“Casstar”) at the consideration of RMB467.5 million. Casstar is recognized as a high-tech enterprise, a provincial specialized and sophisticated small and medium-sized enterprise, and a provincial gazelle enterprise, and has been committed to providing maintenance services for various type of medical imaging equipment since its establishment, with maintenance capacity covering mainstream medical imaging equipment, as well as life emergency, respiratory anaesthesia, hemodialysis and ultrasound equipment. It served a total of over 1,500 hospitals and maintained long-term cooperation relationship with more than 500 hospitals with asset under management of over RMB10 billion, providing nationwide service capacity. It also has a number of intellectual right patents, enjoys core strength in the Internet of Things, digital development and other fields, and is a leading enterprise with great influence in the industry. This acquisition will provide strong support for the company to improve its core competitiveness in the life cycle management equipment, and will accelerate the implementation of the company’s industry consolidation strategy, so as to facilitate rapid development of its business.
Financial Business Resilience: Solid Profitability and Asset Quality, Continuous Financing Structure Optimization. In 2023, faced with the impact of various factors such as increasing financing costs in the overseas markets, intensified market competition at home, tightening financial regulation and shortage in quality assets, the company always took risk control as a top priority, and were committed to ensuring quality project development for our customers. By keeping abreast of the market development, the company strived to arrange financing structure properly, so as to ensure liquidity sufficiency and security while minimising the pressure of rising costs as a result of US Dollar interest rate hikes on the offshore markets. In the first half of 2023, the company recorded income of finance business of RMB2,988.2 million in total, remaining stable as compared with the corresponding period of the previous year. As at 30 June 2023, its net interest-earning assets reached RMB71,764.5 million, representing an increase of 10.0% as compared to that at the beginning of the year; the non-performing asset ratio was 0.98%; the overdue ratio (30 days) was 0.88%, and the provision coverage ratio was 255.06%.
Given that the current domestic and international economy and financial markets continue to be confronted with many risks, challenges and uncertainties, Universal Medical will continue to promote the steady and safe development of its finance business, and give full play to the finance business to empower the development of the medical care industry, so as to build a solid moat for the high-quality development of a central state-owned and listed enterprise.
It is worth mentioning that in terms of high-quality development of listed companies, Universal Medical has been continuously enhancing its ESG construction and fulfilling its social responsibilities as a central state-owned enterprise. The company has been actively engaged in medical assistance in Xinjiang, Tibet, and overseas, and the “XinYan Public Welfare Fund” has provided assistance to over 500 patients, effectively meeting the clinical treatment needs of critically ill patients in economically disadvantaged areas. In April, the company successfully launched the first “Rural Revitalization” labeled medium-term notes, and in July, it successfully secured the first domestic syndicated loan in line with green loan principles. The company has also been selected as one of the “China ESG Top 100 Listed Companies” released by the China Central Television, ranking 62nd. In the future, the company will continue to adhere to the principle of seeking progress while maintaining stability, promote high-quality development, and strive for new breakthroughs, creating greater value returns for all shareholders.
For further information, please contact: PEANUT MEDIA LIMITED Direct Line: +86-755-61619798 x8210 Email: hswh.project@czgmcn.com
The list of the winners of the WikiEXPO Asia Financial Expo, hosted by WIKIEXPO, was recently announced. Once more, IEXS won the “Best Forex Broker 2023” award.
IEXS recently won the Best Forex Broker 2023 award at the WikiEXPO Asia Finance Expo hosted by WIKIEXPO. This is just the latest accolade in a string of awards for the international broker, including Best Forex FinTech Broker 2022 and Fastest Growing Broker 2021.
IEXS values both global and regional recognition, with awards in the Middle East, Southeast Asia, and Asia providing valuable marketing opportunities to further the brand’s presence.
IEXS is currently in a period of high growth and rapid development, providing customers with the highest quality of fintech-driven services. Over the years, the company has earned numerous awards and honors, demonstrating its commitment to customer satisfaction.
IEXS has been particularly recognized for its efforts to independently innovate its product offerings, including CFDs on its platform, as well as its continuous striving to improve transaction execution speeds and the user experience within its platforms. As a leader in the Forex brokerage and CFDs industry, IEXS is dedicated to staying ahead of the curve by utilizing innovative technology that meets the ever-changing needs of its clients.
IEXS IEXS is an award-winning FX/CFD broker with a global presence, offering customer support in over seven languages. With over 300 tradable financial assets, including currency pairs, commodities, energy, indices, stocks CFDs, and ETF CFDs. IEXS is regulated by the UK’s Financial Conduct Authority (FCA) and the Australian Securities & Investments Commission (ASIC). IEXS is also licensed by the Financial Transactions and Reports Analysis Centre of Canada (FinTrac) and registered by the Financial Services Authority (FSA) in Saint Vincent and the Grenadines. (IEXS Website: www.iexs.com)
