PT WIJAYA KARYA (Persero) Tbk. [IDX: WIKA] successfully booked a gross profit of Rp627.24 billion in Q2-2022 or 14.8% higher on a year-on-year basis (YoY) as recorded in the financial statement for the period ended on 30 June 2022. This figure was supported by the Company’s sales of Rp7.18 trillion or 6.2% higher YoY.
WIKA’s President Director, Agung Budi Waskito (Agung BW) said the improvement in sales performance was enabled by a 2% increase in infrastructure and building sector, 9.8% increase in industry sector, and 167.6% increase in realty & property sector YoY. Most of the revenue in realty & property sector was contributed by the hotel business as a result of the State-owned Enterprises or BUMN hotel holding process by WIKA’s subsidiary, WIKA Realty.
As at July, WIKA has secured new contracts worth Rp14.67 trillion. The largest contributors were the infrastructure and building sector of 58.4% and the industry sector of 22.7%. The high number of new contracts in these sectors is also due to the strategic infrastructure development program that is being promoted by the Indonesian Government to face the G20.
PT WIJAYA KARYA (Persero) Tbk. [IDX: WIKA]
Contact: Mahendra Vijaya Sekretaris Perusahaan Email: mahendra.v@wikamail.id Website: https://www.wika.co.id/
Event attracts 19,000+ participants, bringing government and business leaders together to facilitate project matching
The seventh Belt and Road Summit, jointly organised by the Government of the Hong Kong Special Administrative Region (HKSAR) and the Hong Kong Trade Development Council (HKTDC), concluded yesterday (1 September). Continuing in the tradition of being a formal, substantial and high-quality event, the summit saw state leaders and senior officials, regional government leaders and business leaders gathered to explore the business potential of the Belt and Road Initiative, and to drive synergies and create a win-win situation through multilateral collaborations such as the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and the Regional Comprehensive Economic Partnership (RCEP).
The seventh Belt and Road Summit, which ran under the theme “Heralding a New Chapter: Collaborate and Innovate”, attracted more than 80 government and business leaders to share their insights.
More than 19,000 participants from over 80 countries and regions attended online or in-person.
The 38th Prime Minister of New Zealand, John Key, Aswin Techajareonvikul, CEO and President of Berli Jucker PCL, Liu Liange, Chairman of the Bank of China, and Rod Eddington, Chairman of Infrastructure Partnerships Australia, JP Morgan’s Asia Pacific Advisory Council and Non-Executive Chairman of Lion shared their insights at Business Plenary “Collaborate for a Bright New Era”.
As one of the major celebrations to mark the 25th anniversary of the establishment of the HKSAR, the summit saw more than 80 senior government officials and business leaders from the Belt and Road region gathered to share their insights under the theme “Heralding a New Chapter: Collaborate and Innovate”. For the first time, the summit was held in a hybrid format, overcoming geographical boundaries by allowing those who were unable to attend in person to participate virtually. More than 19,000 attendees representing over 80 countries and regions participated online or at the physical event.
More than 800 one-to-one matching sessions The business matching and project pitching sessions at the summit remained popular among project owners and attendees. More than 280 investment projects from the Belt and Road region and beyond were presented at the summit, covering four main areas, namely: (1) energy, natural resources and public utilities; (2) innovation and technology; (3) urban development; and (4) transportation and logistics infrastructure. The projects focused on areas such as smart city development, data centres and e-commerce related investments. More than 800 one-to-one business matching meetings were arranged for project owners, investors and professional service providers to pave the way for collaboration agreements.
Real opportunities in RCEP but some challenges Multilateral collaboration creates more frequent cross-border trade and investment, and is becoming more important than ever in driving a strong recovery in the Asia-Pacific region following the pandemic. The RCEP, which came into effect this year, stands as the largest free trade agreement in history, accounting for 30% of the world’s population and GDP. Combined with the joint effort of more than 180 countries connected through the Belt and Road Initiative, it will further strengthen regional economic integration around the world. In the Business Plenary titled “Collaborate for a Bright New Era”, business leaders from economies along the Belt and Road and the RCEP shared their insights and explored how these initiatives and agreements can complement each other to drive strong economic growth and promote cross-border collaboration between businesses of all sizes.
The 38th Prime Minister of New Zealand, John Key, shared his views on the RCEP. “One of the things that are challenged is the supply chains. China is a really a huge market, and we source a lot of goods from China. We can see the impact the breaking down of those supply chains has had on global inflation.”
Aswin Techajareonvikul, Chief Executive Officer and President of Berli Jucker Public Company Limited, shared that the Thailand enterprises have well received the potential of the Belt and Road Initiative (BRI). “It is in tune with our 20-year strategy and Thailand’s ongoing projects for economic development under the Thailand 4.0 economic model. We are able to expand trade and investment to our neighbouring countries. We can also better link with the world market, especially for the CLMV countries [Cambodia, Laos, Myanmar and Vietnam].”
Liu Liange, Chairman of the Bank of China, said: “Most of the members in the RCEP are located in important junctions along the Belt and Road. This not only fosters connectivity between value chains and supply chains, but also further expands the ‘social circle’ of the Belt and Road Initiative, engaging more countries and businesses in the construction of the Belt and Road and in broader collaboration, as well as forming the dual-engine of the Belt and Road Initiative and RCEP within the region.”
Belt and Road Initiative drives consumption and Infratech development Global economies are pushing to achieve post-pandemic economic recovery. At the same time, countries around the world are striving to build stronger global business connections with the help of macro measures such as the BRI, the RCEP and the GBA development.
The demand for high-quality, innovative and sustainable infrastructure around the world has given rise to many new business opportunities. These innovative projects will be led and driven by visionary industry leaders as they usher in a new era of infrastructure development. In the “Faster, Greater Infrastructure” session of the thematic group discussions, business leaders who had turned futuristic concepts into reality and envisioned some of the world’s most important infrastructure projects exchanged their views.
Founder and Managing Director of Emaar Properties and Founder and Director of Noon.com, HE Mohamed Ali Rashed Alabbar, said: “I really believe that a link such as the Belt and Road Initiative and its effects on human life, economic progress, quality of life, job creation and exchange of cultures and knowledge and unity to the world – it is going to be incredible.”
Chief Marketing Officer of Hyperloop TT Robert Miller addressed the current trends in infrastructure technology (infratech) development. “Infratech is really underfunded and underdeveloped. Hyperloop really falls into the category of infratech where there is a longer time to profitability. So we need patient investors from both public and private sectors. Meanwhile, governments everywhere are looking at reducing carbon emissions. One of the biggest polluters is the transportation industry: 23% of all carbon emissions worldwide come from transportation. Europe, the United States and countries in Asia are all looking how to decarbonise the transportation industry. Hyperloop TT could be a massive driver in that decarbonisation,” he said.
The seventh Belt and Road Summit was made possible by its Strategic Partner, China International Capital Corporation (CICC); Regional Banking Partner, Bank of China (Hong Kong); and Platinum Sponsors, China Mobile International and China Unicom.
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 Please contact HKTDC’s Communications & Public Affairs Department: Clayton Lauw, Tel: +852 2584 4472, email: clayton.y.lauw@hktdc.org Sam Ho, Tel: +852 2584 4569, email: sam.sy.ho@hktdc.org
Ensuring Stability and Accommodating the Needs for Pandemic Control
The board of directors of Genertec Universal Medical Group Co Ltd (the Company or Universal Medical; HKG: 2666) is pleased to announce the interim results of the Company and its subsidiaries (together, the “Group”) for the six months ended 30 June 2022.
Facing with various unexpected factors emerged during the first half of 2022, while making unwavering efforts to lead the subordinate medical institutions in its proactive commitment to fighting against the pandemic, the Group adhered to its established business strategies by continuing to move forward in the field of medical and healthcare, and steadily promoted its business and improved its overall operating performance.
In the first half of 2022, the Group recorded a revenue of RMB5,712.3 million, representing an increase of 14.1% as compared to the corresponding period of the previous year; recorded a net profit of RMB1,176.4 million, representing an increase of 4.5% as compared to the corresponding period of the previous year; recorded a net profit attributable to owners of the parent of RMB1,089.4 million, representing an increase of 3.8% as compared to the corresponding period of the previous year; recorded return on total assets (ROA) of 3.20%, and return on equity (ROE) attributable to owners of the parent of 16.51%. The indicators of income maintained a steady performance and the asset quality was generally safe and controllable.
The Profit of Hospital Group Increased by 13.7% While Accommodating the Needs for Pandemic Control Hospital group is the essential resources of building a healthcare conglomerate. Having been actively participating in integration and takeover of medical institutions of SOEs since 2017, the Group continued to expand its hospital group business, and orderly advanced its post-investment management to better accommodate the needs for pandemic control of SOE-owned hospitals. The Group also continuously enhanced the three core capabilities of “discipline”, “operation” and “service”, with an aim to build overall advantages of the hospital group in terms of safety, effectiveness, accessibility, and humanities as a way to promote high-quality development of hospitals of SOEs. Moreover, relying on the development foundation of the hospital group, the Group expanded business layout in various fields including medical service, life cycle management of medical equipment, medical testing, internet-based healthcare services, health and wellness and insurance, and actively expanded external customers while efficiently serving the Group’s member hospitals to gradually lay a foundation for development in scale.
With the implementation of group management and control of hospitals, the core capabilities of disciplines, operations and services have been gradually improved to lay the groundwork for sustainable growth trends in the medical business. In the first half of 2022, facing with the frequent outbreaks and pandemic rebound in certain cities, its medical institutions made proactive response to the relevant requirements of the government regarding pandemic prevention and control by undertaking a great number of nucleic acid testing and vaccination tasks. Under the temporary operation pressure of staff shortage and increasing costs for pandemic prevention and control, the Group maintained overall stable profitability in the first half of 2022 through measures such as increasing volunteer medical consultation and featured services to boost business volume and reinforce refined operation.
In terms of consolidated revenue, in the first half of 2022, the hospital group business (excluding hospital investment platforms) recorded revenue of RMB2,721.1 million during the consolidation period, representing an increase of 28.4% as compared to the corresponding period of the previous year, mainly due to the consolidation of additional medical institutions during the period, and recorded profit for the period of RMB112.6 million, representing an increase of 13.7% as compared to the corresponding period of the previous year. The gross profit margin from operations was 12.1%, and net profit margin was 4.1%.
In terms of operations, in the first half of 2022, the Group consolidated the accounts of six additional medical institutions with a capacity of 2,507 beds in total; the total number of medical treatments in the 51 consolidated medical institutions of the Group was approximately 5,446,000, representing an increase of approximately 52.2% as compared to the corresponding period of the previous year. The number of outpatient and emergency visits amounted to approximately 4,951,000, representing an increase of approximately 57.1% as compared to the corresponding period of 2021, which was mainly attributable to the significant increase in the outpatient visits for nucleic acid test during the first half of 2022. Without taking into account of the impact of nucleic acid visits, the number of outpatient and emergency visits still outperformed that of the corresponding period of the previous year by approximately 6%. The number of inpatient visits based on discharges amounted to approximately 160,000, remaining basically in line with that of the corresponding period of 2021, which was mainly due to the frequent outbreaks of covid-19 pandemic across the country during the first half of 2022. Meanwhile, with the continuous expansion of the medical examination business operated by its medical institutions, the number of visits for medical examination reached approximately 495,000 in the first half of 2022, representing an increase of approximately 15.9% as compared to the corresponding period of 2021. The revenue of hospital operation of the 51 consolidated medical institutions for the first half of 2022 reached RMB2,694.9 million in total, representing an increase of approximately 8.8% as compared to the corresponding period of the previous year, and the overall income per bed of the consolidated medical institutions was approximately RMB420,000 on an annualised basis.
Following the integration and takeover of medical institutions of SOEs since 2017, the Group continued to empower the development of the hospitals and took active and effective measures in response to external factors such as the pandemic and reforms. In the future, in order to serve the national healthcare initiative and in the trend of high-quality development of the medical industry, the Group will give full play to the competition advantages of central state-owned enterprises in running medical care by reinforcing group management and control and upgrading professional operation, further improving the operating efficiency of medical institutions.
Meanwhile, by fostering hospital group, the Group will also further build replicable advantages in terms of hospital operation management, life cycle management of medical equipment, supply chain management, infrastructure management and digital services, expand the market presence in addition to the health conglomerate and cultivate the new service mode featured with the integration of industry and finance, so as to promote quality and efficiency enhancement for external hospital customers and create new growth drivers for the Company.
The Interest Income of Financial Business Increased by 5.7% under the Efforts to Overcome the Impact of Ongoing Pandemic In the first half of 2022, the Group strived to overcome the impact of ongoing pandemic. With risk control as a top priority, the Group were committed to ensuring quality project development for its customers, with an aim to ensure safe and healthy development of the finance business. By keeping abreast of the market changes, the Group strived to control financing costs with a flexible approach to meet investment capital requirements. In the first half of 2022, the finance and advisory business of the Group recorded a revenue of RMB2,987.8 million in total, representing an increase of 3.4% as compared to the corresponding period of the previous year, of which the interest income amounted to RMB2,391.1 million, representing an increase of 5.7% as compared to the corresponding period of the previous year. All business indicators continued to maintain a good level. The average yield of interest-earning assets was 7.46% and the average cost rate of interest-bearing liabilities was 3.71%, while the net interest margin was 3.75% and the net interest spread was 4.16%.
While its finance business continued to expand steadily, the Group continued to optimize the dynamic management of pre-rental, rental, and post-rental process, and enhanced accountability to ensure its asset quality remaining at an industry-leading level. As of 30 June 2022, its net interest-earning assets reached RMB65,804.8 million, representing an increase of 7.7% as compared to the end of 2021; the non-performing asset ratio was 0.98%; the overdue ratio (30 days) was 0.82%, and the provision coverage ratio was 242.96%.
While keeping a controllable risk profile, the Group will continue to facilitate steady development of the finance leasing business in the fields of public hospitals and urban public utility. Leveraging on the core businesses of the central state-owned group and in an active response to the national policies, the Group will continue to foster and expand innovative businesses. The Group will explore a development model featured with the integration of finance business and medical care industry so as to lay a solid foundation for the high-quality development of a central state-owned and listed enterprise and achieve a leapfrog growth in the operating results.
About Genertec Universal Medical Group Co Ltd Genertec Universal Medical Group Co., Ltd. (Universal Medical; HKG: 2666) is a publicly listed state-owned enterprise committed to China’s healthcare industry. China General Technology (Group) Holding Co Ltd., one of the backbone SOEs directly supervised by the central government is the controlling shareholder of the Company. Universal Medical focuses on the fast-developing healthcare industry in China, with medical services as the core and financial business as the foundation. The Company harvests modern management concepts, professionals, quality medical resources with solid financial strength, and an inclusive corporate culture. Altogether it strives to build a reliable healthcare conglomerate and develop a healthcare ecosystem that all can mutually share and benefit. The Company owns 63 medical institutions, distributed in 14 provinces and municipalities such as Shaanxi, Shanxi, Sichuan, Liaoning, Anhui, Hebei, Beijing, and Shanghai, including 5 Grade III Class A hospitals and 29 Grade II hospitals, with a total of more than 16,000 beds. In the future, Universal Medical will continue to grasp opportunities posed by China’s healthcare sector, actively respond to the “Health China” program and make contributions to China’s public health industry. Please visit https://en.umcare.cn/.
This press release is released by PEANUT MEDIA LIMITED on behalf of Genertec Universal Medical Group Company Limited.
For further information, please contact: PEANUT MEDIA LIMITED Lu Jing / Jing Gao Direct Line: +86-755-61619798 +8210 Email: hswh@czgmcn.com
Win-win hybrid format overcomes limits of geography
The seventh Belt and Road Summit, jointly organised by the Government of the Hong Kong Special Administrative Region (HKSAR) and the Hong Kong Trade Development Council (HKTDC), opened today (31 August). This year’s event lasts two days and runs in a hybrid physical and digital format, helping overcome geographical boundaries. Business leaders unable to attend the summit in person at the Hong Kong Convention and Exhibition Centre (HKCEC) join all sessions online and identify potential business opportunities through the online platform. Participants and guest speakers at the physical summit can actively interact during the event as more than 80 government and business leaders share their insights and explore opportunities the Belt and Road Initiative presents.
The seventh Belt and Road Summit, jointly organised by the Government of the Hong Kong Special Administrative Region and HKTDC, opened today (31 August), with the theme “Heralding a New Chapter: Collaborate and Innovate”.
In his welcome remarks, Dr Peter K N Lam, Chairman of the HKTDC, said: “With innovation driving progress, the Belt and Road Initiative provides the framework to apply these innovations to create a sustainable future.”
The Policy Dialogue Session analysed how economies under the Belt and Road Initiative can strengthen cooperation and boost economic growth through infrastructure development and trade under “Driving Growth through Partnership and Collaboration”.
As the first major international event following celebrations for the 25th anniversary of the establishment of the HKSAR, the summit runs under the theme “Heralding a New Chapter: Collaborate and Innovate”. Project owners and operators, investors and service providers can explore opportunities arising from the Belt and Road Initiative, the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) development and the Regional Comprehensive Economic Partnership (RCEP) through a variety of activities, including the Policy Dialogue, plenary sessions, thematic breakout sessions, one-to-one project matching and project pitching sessions and a virtual exhibition, creating a multi-win situation that will help boost economic growth in the region. Activities today are held both online and offline while tomorrow (1 September) will be entirely online.
In this morning’s opening session, Dr Peter K N Lam, HKTDC Chairman, delivered welcoming remarks. John Lee, HKSAR Chief Executive, delivered the opening address. Han Zheng, a member of the Standing Committee of the Politburo of the Communist Party of China Central Committee and Vice Premier of the State Council of the People’s Republic of China, delivered the keynote speech. Wang Wentao, Minister, Ministry of Commerce, the People’s Republic of China; Hao Peng, Chairman, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), the People’s Republic of China and Lin Nianxiu, Vice Chairman, National Development and Reform Commission, the People’s Republic of China, delivered special addresses while Zhang Xiangchen, Deputy Director-General of the World Trade Organization, gave a keynote address.
Mr Lee said in his opening speech: “The global rise of protectionism has reminded us of how important regional co-operation is. We have to work together for the better future of the region. Hong Kong is therefore very pleased to see the Regional Comprehensive Economic Partnership, or RCEP, come into force earlier this year. The landmark agreement underlines the open, inclusive, rules-based trade and investment partnership that RCEP’s member states are committed to realising. We believe that regional economic integration is an essential complement to multilateral trade. Hong Kong is seeking early accession to RCEP. It will enable us to deepen the collaboration and connections we enjoy with our close partners. The Belt and Road was created to build connectivity, to bring business, and people, together. No one does that better than Hong Kong, thanks to our ‘one country, two systems’ principle; thanks to our longstanding East-meets-West experience and the boundless opportunities afforded us in national development.”
Delivering the keynote speech, Mr Han said: “Hong Kong is an active participant, contributor and beneficiary of the Belt and Road Initiative. We are pleased to see that since the initiative launched, Hong Kong has actively negotiated and signed cooperation agreements with co-construction countries, developing trade and investment cooperation, service standard connection, international financial cooperation and exchange between people. Hong Kong plays an important role in Belt and Road development, as well as expanding its own development space. Hong Kong deserves full recognition for its work in this area. The Central Authorities will adhere to the principle of ‘one country, two systems’ in the long run, fully supporting Hong Kong in maintaining its unique status and advantages. Authorities fully support Hong Kong’s active participation in and contribution to the Belt and Road development.”
Addressing the opening session, Mr Zhang said: “The COVID-19 pandemic, geopolitical tensions, climate change and anti-globalization sentiment are the four major factors that I believe could affect the reshaping of the landscape of global trade policies. It is very challenging but can still be managed well if the whole world works together. To address these challenges, I strongly encourage enhanced dialogue and cooperation between all governments to find collective solutions because none of these challenges can be addressed by one government alone. Global challenges require global solutions.”
Dr Lam said: “The HKTDC is honoured to have Vice Premier Han Zheng deliver an important keynote speech at today’s summit, giving a more specific illustration of Hong Kong’s role as an active participant, contributor and beneficiary of the Belt and Road Initiative. Following President Xi Jinping’s important speech on 1 July, the Vice Premier’s ‘Four Hopes’ for Hong Kong’s participation in the construction of the Belt and Road further highlighted the direction of the city’s development. The HKTDC has always been committed to promoting the Belt and Road Initiative and development opportunities. The team and I will continue our efforts to promote Hong Kong as an international business platform and services hub and contribute to the Belt and Road Initiative.”
Multipartite cooperation to promote economic growth The Policy Dialogue Session, chaired by HKSAR Deputy Finance Secretary Michael Wong, analysed how economies under the Belt and Road Initiative can strengthen cooperation and boost economic growth through infrastructure development and trade under the theme “Driving Growth through Partnership and Collaboration”. The panel featured government and business leaders from several Belt and Road countries, including Lim Sidenine, Secretary of State of Ministry of Public Works and Transport, Kingdom of Cambodia; Luhut Binsar Pandjaitan, Coordinating Minister of Maritime Affairs and Investment, Indonesia; Lim Ban Hong, Deputy Minister of International Trade and Industry, Malaysia; Heng Swee Keat, Deputy Prime Minister and Coordinating Minister for Economic Policies, Singapore; and Chayotid Kridakon, Thai Trade Representative and Advisor to the Prime Minister.
Growing relationship between Belt and Road, RCEP and GBA The RCEP, which came into effect this year, is the largest free trade agreement in history, accounting for 30% of the world’s population and GDP. With the joint effort of more than 100 countries connected with the Belt and Road Initiative, global regional economic integration will be become more established. The Business Plenary titled “Collaborate for a Bright New Era” was held this morning, with Paul Chan, Financial Secretary of the HKSAR, delivering the welcoming remarks. Hosted by Ronnie Chan, Chairman of Hang Lung Properties Limited, the session examined how economic growth can be achieved through multipartite cooperation. Other guest speakers included the Chairman of Infrastructure Partnerships Australia, JP Morgan’s Asia Pacific Advisory Council and Non-Executive Chairman of Lion Rod Eddington; the 38th Prime Minister of New Zealand John Key; President of the Bank of China Liu Liange; Deputy Managing Director & Chairman for Hong Kong of Jardine Matheson Holdings Limited YK Pang; and CEO and President of Berli Jucker Public Company Limited Aswin Techajareonvikul.
In his welcome remarks, Paul Chan, Financial Secretary of the HKSAR, said: “We are capitalising on our strong collaboration with Shenzhen, developing Hong Kong into an international innovation and technology hub, focusing development on life and health sciences, advanced manufacturing, artificial intelligence and data industry, etc. We are also pressing ahead with more local infrastructure projects, including the Northern Metropolis and the Lantau Tomorrow Vision, as well as many other road, railway and land development projects. Talents, capital and entrepreneurs are all essential to achieving our goals. We warmly welcome businesses and talents from all over the world, Belt and Road countries included of course, to come to Hong Kong to collaborate with us and grasp the enormous opportunities together. To this end, we will have new policies and support measures to facilitate the coming of talents and enterprises.”
The strong economic resilience demonstrated by the Greater Bay Area amid the pandemic will further unleash the region’s economic potential in terms of cross-border trade and financial market liberalisation, along with the development of cutting-edge innovation and technology. The Business Plenary this afternoon, “Capturing Synergies between Belt and Road and Greater Bay Area”, was hosted by David YK Wong, Permanent Honorary President of The Chinese Manufacturers’ Association of Hong Kong. The panelists included Chairman of the Power Construction Corporation of China Ding Yanzhang; CEO, Chairman of the Management Committee, Executive Director of the Board of China International Capital Corporation Limited Huang Zhaohui; Chairman of MTR Corporation Limited Rex Auyeung; Chairman of WeLab Bank KC Chan; and Chairman of East Asia Region of Arup Group Michael Kwok. The speakers shared ideas on the potential opportunities the GBA brings as an important Belt and Road hub, and also discussed how Hong Kong can further leverage the advantages of the GBA to enhance its position and promote the development of the city’s industries.
Five breakout sessions explore hot-button issues on summit’s first day Spanning many countries and regions, the Belt and Road Initiative creates new room for the development of professional sectors. On the first day, the summit, in conjunction with a number of organisations including the Department of Justice of the HKSAR Government, the Insurance Regulatory Authority, China Foreign Contractors Association and Dun & Bradstreet, held five breakout sessions to examine a range of topics such as international dispute resolution, insurance services, GBA infrastructure development, digital technology development and future infrastructure development. More thematic breakout sessions and project pitching sessions will be held tomorrow – details of the programme, speakers and partner organisations can be found at https://www.beltandroadSummit.hk/conference/bnr/en
One-to-one business matching meetings and project pitching sessions Following the success at previous summits, the HKTDC has extended the hybrid project and business-matching sessions from two to seven days (31 August to 6 September) this year. New features include a video display at the summit to increase project exposure and give investors and professional service companies a better understanding of project details.
The summit also features online and offline exhibitions which have attracted more than 60 exhibitors and are divided into the “Global Investment Zone”, “Hong Kong Zone” and “GBA Tech Zone”. The project pitching sessions give entrepreneurs from different countries a platform to present projects, giving investors and service intermediaries a comprehensive understanding of investment opportunities in different sectors. Pitching sessions focus on four main areas – energy, natural resources and public utilities; innovation and technology; urban development; and transport and logistics infrastructure.
China International Capital Corporation Ltd serves as the Strategic Partner of the seventh Belt and Road Summit; Bank of China (Hong Kong) Ltd as the Regional Banking Partner; and China Mobile International Limited and China Unicom Global Limited as Platinum Sponsors.
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 Please contact HKTCD’s Communications & Public Affairs Department: Clayton Lauw, Tel: +852 2584 4472, email: clayton.y.lauw@hktdc.org Sam Ho, Tel: +852 2584 4569, email: sam.sy.ho@hktdc.org
JE Cleantech Holdings Limited (Nasdaq: JCSE), (the Company) a Singapore-based cleantech company, has announced its financial results for the six months ending 30 June 2022. In its first mid-year update since completing its Nasdaq listing in 2022, the company has seen a decline of 19 per cent in its revenue compared to the corresponding period last year (H1 2021). Net income for the reporting period has been S$147,000, lower than the S$616,000 reported for the first six months of 2021.
Speaking about the 2022 results, Ms. Bee Yin Hong, CEO and Founder, JE Cleantech said, “Our industry as with many others was hit hard by the pandemic, but we have weathered it and even achieved impressive growth in one of our key business verticals. We strongly believe in the future to come as we enter the endemic phase and the F&B, travel, and hospitality sectors see rapid recovery. JE Cleantech is well positioned to capture growth opportunities. We are actively widening our product offerings and exploring new markets to bring sustainable returns to our shareholders and investors.”
The group has been negatively affected by the ongoing disruptions caused by Covid-19, some effects of which may linger post-pandemic such as supply chain disruptions, fluctuations in the cost of raw materials and uneven demand growth from customer groups. Despite this, the Company did not experience any material order cancellations during the reporting period and records an order book value of approximately S$36.8 million as of August 15, 2022.
The Company saw a growth of 36 per cent in its provision of centralized dishwashing and ancillary services, compared to the same corresponding period last year, with revenue of S$3.585 million. The company also announced the renewal of a key customer to provide centralized dishwashing services to a fully owned subsidiary of Singapore’s leading ground-handling and in-flight catering service provider for a period of three years, starting in September 2022. The contract, which has been closed through its subsidiary, Hygieia Warewashing Pte Ltd., is valued at approximately S$9.3 million (around US$6.7 million). With this renewal, Hygieia Warewashing will have been providing cleaning services for the client for nine years continuously.
Having provided centralized dishwashing services in Singapore since 2013, management believes that JE Cleantech is now Singapore’s leading manufacturer of precision cleaning systems and provider of centralized dishwashing and ancillary services, with approximately 15 per cent market share in 2020 in terms of revenue (Source: Euromonitor estimates from desk research and trade interviews with leading centralized dishwashing services providers and the relevant trade associations in Singapore). Ms. Hong stated “we believe that JE Cleantech has not only left a strong footprint in Singapore and Malaysia, but has also established a robust network of long-term customers across Southeast Asia, with a growing international footprint in markets such as Europe and the United States.”
Moving forward, the company is looking to expand its team of R&D staff and engineers, while continuing to strengthen its product portfolio. Recently, it has expanded its scope of service offerings to include tech hardware.
About JE Cleantech Holdings Limited JE Cleantech Holdings Limited is based in Singapore and is principally engaged in (i) the sale of cleaning systems and other equipment; and (ii) the provision of centralized dishwashing and ancillary services. Through its subsidiary, JCS-Echigo Pte Ltd, the company designs, develops, manufactures, and sells cleaning systems for various industrial end-use applications primarily to customers in Singapore and Malaysia. Its cleaning systems are mainly designed for precision cleaning, with features such as particle filtration, ultrasonic or megasonic rinses with a wide range of frequencies, high pressure drying technology, high flow rate spray, and deionized water rinses, which are designed for effective removal of contaminants and to minimize particle generation and entrapment. The Company also has provided centralized dishwashing services, through its subsidiary, Hygieia Warewashing Pte Ltd, since 2013 and general cleaning services since 2015, both mainly for food and beverage establishments in Singapore.
Disclaimer: Forward looking statements This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements may be identified by such words or phrases as “should,” “intends,” “is subject to,” “expects,” “will,” “continue,” “anticipate,” “estimated,” “projected,” “may,” “I or we believe,” “future prospects,” “our strategy,” or similar expressions. Forward-looking statements made in this press release that relate to our future contract revenues among other things involve known and unknown risks and uncertainties that may cause the actual results to differ materially from those expected and stated in this announcement. We undertake no obligation to update “forward-looking” statements.
Legend Holdings Corporation (HKG: 3396) announced today the unaudited condensed consolidated interim results for the six months ended June 30, 2022 (the Reporting Perio”). During the Reporting Period, the Company’s revenue was RMB237,685 million and the net profit attributable to equity holders of the Company amounted to RMB2,131 million.
Mr. Li Peng, Executive Director and CEO of Legend Holdings, said that in the face of the complex international environment, in the first half of 2022, Legend Holdings pursued progress while ensuring stability, and deepened the strategic thinking of “industrial operation, technological innovation”, made steady improvement in its corporate competitiveness and operational efficiency, and further strengthened its investment and layout in the field of science and technology innovation; At the same time, we gave full play to the role of “chain leader”, practiced the concept of green development, actively fulfilled corporate social responsibility, and devoted ourselves to contribute to the high-quality development of China’s economy.
During the Reporting Period, Legend Holdings further consolidated the foundation of its industrial operations and strengthened its operational management. The revenue of the segment increased by 4% year-on-year to RMB235,775 million, and the net profit attributable to the equity holders of Legend Holdings increased by 20% year-on-year to RMB2,830 million.
Lenovo achieved revenue and profit growth for the ninth consecutive quarter. While maintaining its position as the world’s No.1 PC maker, Lenovo accelerated the development of new growth drivers with the revenue share of the non-PC business reaching a new high of 37% in the second quarter
Levima Group took the lead in achieving import substitution in the field of EVA photovoltaic materials. In the first quarter, the upgrading and transformation of EVA devices realized the expected effect, and the result in the second quarter reached a new high. In addition, the company continued to focus on the field of new materials, advancing the new projects in an orderly manner, and entered the field of electronic specialty gas;
The core business of Joyvio Group develops well as a whole. Joy Wing Mau continued to improve its vertically integrated fruit supply chain and achieved rapid growth in revenue. Global demand and prices for seafood products continued to rebound, and the revenue and profit of Joyvio Food have been improved;
With a healthy core capital adequacy ratio and strong international credit ratings, Banque Internationale a Luxembourg S.A. (“BIL”) achieved solid growth – successfully navigating the challenges faced by Europe’s economy. Meanwhile, BIL obtained QFLP status in Shenzhen, through which it will further support the introduction of foreign capital into China’s market and other initiatives.
During the Reporting Period, the industrial incubations and investments segment delivered stable and sound growth despite capital market volatility.
Legend Capital raised funds of RMB3.5 billion, invested in 26 new projects, and 4 portfolio companies went public;
Legend Star invested in nearly 20 new projects, more than 40 enterprises under management completed their next funding round, and it exited approximately 10 projects. The first round closing of the firm’s fifth USD fund and the final closing of its artificial intelligence special fund were also completed.;
Fullhan Microelectronics’s market share has significantly increased, and its performance has achieved growth. It continued to invest in mid- and high-end surveillance products to enhance profitability, and the expediting growth of smart home & smart automotive products has served as new driving engines;
Lakala maintained China’s No. 2 operator in terms of bank card transaction volume and leading operator in QR code payments. At the same time, it proactively provided technological support for other businesses;
The production and operation of Eastern Air Logistics have recovered steadily and achieved steady improvement in performance;
Zhengqi Holdings focused on the field of scientific and technological innovation, carried out industrial exploration and investment layout, and has so far helped 11 of its portfolio companies in total successfully go public;
JC Finance & Leasing achieved solid performance and year-on-year revenue growth amid the pandemic.
Increasing investment in scientific and technological innovation, adhering to innovation-driven development and continuously supporting the growth of Specialized and Innovative Enterprises
Legend Holdings stays true to its original aspiration of “revitalizing the country through business”. It has further increased its investment in technological innovation in line with the national strategy of achieving high-quality development driven by technological innovation and has achieved promising results.
Steady implementation of the “plan of doubling investments in Research and Development”
In the first half of 2022, Legend Holdings’ Family Group’s total R&D investment (excluding the capitalized R&D spending) reached RMB7.212 billion, and currently owns over 20,000 granted patents, ranking top among Chinese enterprises in various patent awards. Lenovo remains committed to its plan of doubling investments in R&D; it increased R&D spending by 23% year-on-year and grew R&D headcount by 29% year-on-year. Levima Advanced Materials adhered to its innovation-driven strategy. During the Reporting Period, it completed the laboratory R&D development for 9 new products and processes, the production technology formulas for 15 new products, and the industrialization of 5 new products.
Continuously “long-sought” in the field of science and technology
In the first half of 2022, Legend Holdings’ family group invested in nearly 50 new technology companies, covering multiple fields such as cutting-edge technologies, hard & core technologies, healthcare and medicine, and has contributed to the development of specialized and innovative enterprises in China through its empowerment. During the year as of August 15, 2022, 12 of its portfolio companies have successfully completed IPOs. Close to 50 of Legend Holdings’ family group’s portfolio companies made the newly announced list of the fourth official list of state-level specialized and innovative enterprises, such as Noitom, Hua Kong Tsingjiao, Spacety, Union Semiconductor, EasyDiagnosis Biomedicine, NuVolta Technologies, etc. Up to now, Legend Holdings’ family group has nearly 100 specialized and innovative companies in its portfolio.
Adhering to green growth, playing the full strength as a chain leader, and actively fulfilling corporate social responsibility
Legend Holdings is committed to promoting green development philosophy through the efforts of its portfolio companies to seize the green development opportunities, and jointly build an ecological civilization. Lenovo has set a goal of net-zero carbon emissions by 2050, transforming into “net-zero carbon emission plants” on the basis of its state-level green plants. The Company continues to create and provide smart solutions that facilitate the green transformation, empowering over 300 top industrial enterprises in China. Levima Advanced Materials focused on the development of new energy materials and biodegradable materials on top of its existing EVA photovoltaic film business; BIL helped Chinese companies issue overseas green bonds to facilitate the development of green finance; at the same time, Legend Capital, Legend Star, Zhengqi Holdings, etc. have further expanded investments in related fields to promote innovation and technological progress.
In terms of industrial chain, Legend Holdings promoted its subsidiaries to give full play to their advantages in operations and supply chains and assisted the coordinated development across the industrial chains. Lenovo was named a Gartner Global 25 Supply Chain for the eighth consecutive time. 90% of its manufacturing was from China, with 2,000 level-1 suppliers, directly providing more than 350,000 jobs. Levima Advanced Materials continued to make efforts in the field of new materials, expanding vertically to the upstream of the industrial chain while horizontally expanding to new segments, driving the mutual development with SMEs.
Corporate social responsibility is an important part of Legend Holdings’ overall strategy. The Company actively responds to the national call to steadily promote the implementation of the national employment stabilization policy within the family group, and carefully formulated and closely tracked various recruitment plans. While extensively attracting social talents, it focused on the recruitment of fresh graduates from colleges and universities, and actively expanded the scale of recruitment. In terms of public welfare undertakings, Legend Holdings has long focused on key areas such as fostering start-ups, contributing to rural revitalization, promoting social integrity and responding to disasters for years and insists on investing and carrying out relevant work effectively.
Mr. Ning Min, Chairman and Executive Director of Legend Holdings, said that, under the strong leadership of the Communist Party of China’s Central Committee, China coped well with the changes in the international environment, and achieved economic and social development while effectively coordinating pandemic prevention and control, adhering to the guiding ideology of “people-centered”, and achieved a series of results in various tasks, which also created a good environment for the development of enterprises. In the first half of 2022, the Company continued to improve its position, strengthen its capabilities, seize the important opportunities arising from the transformation and upgrading of Chinese enterprises, focus on the real economy, increase efforts in the field of scientific and technological innovation, and earnestly fulfill its corporate social responsibilities. In the future, we will continue to aim at accomplishing the great goal of building a world-class enterprise, and contribute to the journey of achieving high-quality development and common prosperity!
Topline performance largely attributable to increase in the number and contract value of EPCC projects
Samaiden Group Berhad, a renewable energy (RE) specialist principally involved in engineering, procurement, construction, and commissioning (EPCC) of solar photovoltaic (PV) systems and power plants today announced that for the fourth quarter ended 30 June 2022 (4Q FY2022), revenue increased 113.35% to RM53.68 million compared with RM25.16 million recorded in 4Q FY2021.
Group Managing Director of Samaiden, Ir. Chow Pui Hee
Samaiden registered profit before tax (PBT) of RM4.78 million for 4Q FY2022, which is an increase of 104.27% compared with RM2.34 million in 4Q FY2021 while profit after tax (PAT) recorded an increase of 95.43% to RM3.42 million compared with RM1.75 million in the corresponding quarter of the previous financial year.
For the full year ended 30 June 2022 (FY2022), Samaiden registered revenue of RM150.72 million, which is an increase of 182.0% compared with RM53.44 million recorded in FY2021. Samaiden recorded a 103.73% gain in PBT to RM16.40 million in FY2022 compared with RM8.05 million while PAT increased 101.52% to RM11.93 million in FY2022 compared with RM5.92 million in the corresponding period of the previous financial year.
EPCC services contributed more than 95% of Samaiden’s total revenue for the year. Its other businesses are environmental consultancy and operation and maintenance.
Group Managing Director of Samaiden, Ir. Chow Pui Hee said, “Our performance for FY2022 can be largely attributed to the increase in the number of EPCC projects and the contract value of these projects. We will continue to seek opportunities to secure more EPCC projects given government initiatives in encouraging sustainable energy sources as well as private sector adoption of RE as part of their Environmental, Social and Governance (ESG) initiatives.”
“These opportunities cover solar PV systems and also solar and non-solar power plants where we can leverage on our core competency and experience in providing end-to-end services. Beyond the domestic market, we are also seeking opportunities in Southeast Asia where ESG initiatives are also picking up. We announced in August 2022 to incorporate a joint venture company pursuant to the partnership with Aneka Jaringan Holdings Berhad to penetrate the RE market in Indonesia. This latest announcement is in addition to the setting up of a company in Vietnam in 2021 for potential solar projects.”
“We are cautiously optimistic for FY2023 as we also look to expand our presence through collaborating with our major shareholder, Chudenko Corporation, for projects in Malaysia and the region that will be beneficial for both parties. We are also encouraged by the recent government announcement approving the allocation of 1,200 MW of solar power as well as a new option for businesses to procure RE through the virtual power purchase agreement, which will start in the fourth quarter of 2022 through a quota of 600MW.”
Samaiden has an outstanding orderbook of RM358.0 million as of 30 June 2022 that will contribute positively to our financial performance over the next three years.
About Samaiden Group Berhad Samaiden Group Berhad, through its subsidiary is a renewable energy (RE) specialist incorporated in 2013, principally involved in engineering, procurement, construction, and commissioning (EPCC) of solar photovoltaic (PV) systems and power plants. Samaiden Group’s other activities include the provision of RE and environmental consulting services, as well as operation and maintenance (O&M) services. For more information, visit samaiden.com.my.
On August 25, Newborn Town Inc. (HKG: 9911) released its 2022 interim results. For the half ended June 30, the Company’s total revenue reached RMB 1,374 million, up 32.3% YoY; adjusted EBITDA reached RMB 210 million, up 19.5% YoY; profit attributable to the owner of the Company reached RMB 83 million, up 121.3% YoY.
The Company’s successful model of social networking business continues to be replicated around the world. Its social networking revenue reached RMB 1,266 million, a growth of 52.4% YoY, indicating a steady breakthrough in the core business. At the same time, with the smooth progress of refined games, the Company’s revenue from its innovative businesses totaled RMB 108 million, a rise of 91.7% compared to H2 2021, marking an accelerated diversified development.
‘Replication in Products’ + ‘Replication in Markets’ showing social networking products spread globally
Newborn Town has long focused on global open social networking, and has built an audio and video social networking product matrix, including MICO, an open social platform, YoHo, an audio-based social product, and Yumy, a video-matching social product. As of June 30, the Company’s social products had accumulated 419 million downloads. Average MAUs (monthly active users) in the second quarter reached 23.09 million, representing an increase of 27% YoY.
With years of experience in exploring global markets as well as audio and video technology, Newborn Town has distilled a “replicable” model for its social networking business.
In terms of the products, the Company has accumulated successful experiences and applied those to new products, so as to promote fast growth and to expand their commercialization space. For instance, launched last year, Yumy has seen gross profit and become one of the top 10 best-selling social networking apps in 50 countries/regions after continuous optimization of its business model. It is a typical case of “Replication in Products”.
In terms of markets, Newborn Town landed in new markets rapidly while consolidating its leading position in the markets where the Company has established a competitive edge. By now, YoHo, the product which started from the MENA region, has been successfully replicated in the market of pan-Southeast Asia. In the first half of the year, revenue from Non-MENA regions accounted for nearly 40% of YoHo’s overall revenue, which proved significant to increase YoHo’s revenue by more than 70% YoY.
Through ‘Replication in Products’ + ‘Replication in Markets’, Newborn Town found equal success in replicating its proven model of a single product to multiple products, and its success in a single market to multiple markets. The Company will keep developing mega-apps to cover global markets in more directions to realize strong and promising growth.
Diversified growth accelerated as games show impressive monetization potential
In addition to the social networking business, the Company also made important breakthroughs in its innovative businesses that consists mainly of games in the first half of the year. The loss from the game business has narrowed significantly, which was one of the major reasons for the doubled profit attributable to the owner of the Company.
Specifically, products of the Company’s Merge game series, “Mergeland – Animal Adventure” and “Mergeland – Alice’s Adventure” were formally launched in April and June respectively. The series received rapidly increasing downloads and revenue after launch, and has become one of the top 10 best-sellers in the categories of puzzle and casual games in seven countries.
Bubble Shooter Star, another refined game by Newborn Town, also has good performance as indicated by the figures (e.g.: retention on the 30th day is above 15%) after it was launched at the beginning of this year. The game has shown great monetization potential as at present, its monthly revenue has reached the USD 1 million level.
In the second half of the year, further efforts will be made to promote the game experience, the user volume, and the monetization of the three games, so as to solidify the innovative businesses as a new point for growth. What’s more, the Company’s Metaverse layout has been further enriched. In the first half of the year, it built partnerships with leading virtual technology companies to explore the creation of digital virtual characters, the construction of virtual scenes, the empowerment of AI virtual technology and other aspects. It also invested in Shi Mi Network, a smart wearable devices manufacturer, to take the “portal” of the Metaverse and accelerate the deep integration of the Company’s social products with the Metaverse.
Big progresses of the innovative businesses have further accelerated the diversified growth of the Company, and the second growth curve is becoming clearer.
Consolidated advantages and extended borders to keep high-quality development
The Company’s commitment to R&D is a precondition for its performance breakthroughs. In the first half of the year, the Company’s R&D expenses were RMB 91 million, up 69.6% YoY. As of June 30, the Company’s R&D team expanded by 30.6% compared with December 31 2021. At the same time, through continuous cost optimization efforts, the Company’s selling and marketing expenses in the first half totaled RMB 199 million, down 31.8% YoY.
On the other hand, the Company has persisted in localized operations to pursue Longtermism. It conducts in-depth operations and brand building efforts based on the understanding and respect of local cultures, and tries to integrate into the local industry and social development through industry media gathering and public welfare charities.
In the first half of the year, MICO released a theme song MV for Thailand, which was created and performed by a well-known local band. The song has been played for more than 90 million times due to its lively style catering to the local youth. It became a hit on local social media in a short time and aroused a boom of dance imitations that made the relaxed and cheerful style of the Company’s social products rooted in the hearts of local users.
In the MENA market which the Company has deeply explored, Newborn Town, as a leading social networking company in the local market, held an industry media gathering of more than 20 local media. It helped the local market to establish a positive understanding about online social entertainment while promoting the development of the industry in the region.
With the continuous increase of R&D investment and the further promotion of localized operation, the Company’s technology and operation middle platforms have become increasingly mature. Jointly, these strengths favored the Company in promoting the rapid upgrading of its social products in terms of user experience, market expansion and content distribution, and further accelerating the development of its social networking business.
In the future, Newborn Town will continue to enrich its product matrix, expand its market layout, optimize its operating efficiency, and explore diversified development opportunities to extend its boundaries. The Company will accelerate its progress towards the goal of “becoming the largest global open social networking platform”.
For further information, please contact: PEANUT MEDIA LIMITED Direct Line: 0755-61619798+8210 Email: hswh.project@czgmcn.com
Group is optimistic on outlook, focusing on expanding satellite operations, national digital infrastructure initiative and Phase 2 of PoP
Binasat Communications Berhad, an all-round solution provider of network engineering and services, today reported revenue of RM83.51 million for the full-year ended 30 June 2022 (FY2022), a 55.08% increase compared with RM53.85 million for the corresponding period of the last financial year (FY2021) mainly attributable to higher revenue from civil mechanical and engineering works, recurring teleport services and revenue from transmission and distribution network facility services and engineering, procurement, construction and commissioning (EPCC) of solar farm facilities.
Binasat Communications’ office in Technology Park Malaysia, Bukit Jalil, Kuala Lumpur
For the period under review, Binasat recorded a 50.74% gain in GP to RM18.22 million compared with the preceding year corresponding period on higher revenue from transmission and distribution network facility services and EPCC of solar farm facilities.
Binasat registered 63.53% increase in PBT for FY2022 compared with RM12.09 million in FY2021 mainly due to increase in GP and additional rental income of RM0.39 million The Group’s PAT gained 123.27% to RM5.41 million compared with RM2.42 million.
The Group recorded RM14.96 million for the fourth quarter ended 30 June 2022 (4Q FY2022), a 15.20% decrease compared with RM17.64 million recorded in the corresponding quarter of the previous year (4Q FY2021) mainly attributable to lower revenue from civil infrastructure and fiber optic cabling works.
Binasat registered a 52.54% gain in gross profit (GP) to RM4.51 million in 4Q FY2022 compared with RM2.95 million in 4Q FY2021 on a reduction in the number of mobile network maintenance services sites although fixed costs continued to be incurred resulting in lower gross margin. Binasat’s profit before tax (PBT) increased 145.72% to RM2.44 million compared with RM0.99 million in the same quarter of the previous year while profit after tax (PAT) gained 254.31% to RM1.55 million compared with RM0.40 million.
Executive Director cum Chief Executive Officer, Zulamran Bin Hamat, said, “We believe that with the reopening and gradual recovery of the economy, more telecommunications and satellite services will be needed by businesses and organisations. We are now focused on expanding satellite operations by targeting the maritime and oil and gas industries as these industries increasingly adopt the VSAT system.”
“The Group intends to leverage on its Approved Supplier & Partner status with Ericsson (Malaysia) Sdn Bhd and Huawei Malaysia to win projects as Digital Nasional Berhad has announced a partnership with Ericsson for the national digital infrastructure initiative while Huawei is assisting major mobile network operators to upgrade their 4G network capacity.”
“We are optimistic for the economic outlook as the Group is also participating in Phase 1 of the Point of Presence (PoP) fiber infrastructure project and we have tendered for Phase 2 of the PoP project. Both phases have a combined value of RM8.0 billion and have to be completed in three years. At the same time, we are also participating in the construction of 5G towers in Kuala Lumpur.”
Society Pass Inc. (“SoPa”), founded in 2018 and based in Singapore, operates e-commerce platforms in Southeast Asia (“SEA”). SoPa focuses on the fast-growing markets of Vietnam, Indonesia, Philippines, Singapore, and Thailand, which together account for more than 80% of the Southeast Asian population. SoPa’s vertical markets include Lifestyle, Grocery and Food Delivery, Mobile Telecommunications, Loyalty, Travel, and Digital Media. Society Pass completed an initial public offering and began trading on the Nasdaq under the ticker SOPA in November 2021. SOPA shares were added to the Russell 2000 index in December 2021.
SoPa’s business model is based upon acquiring smaller e-commerce companies with high growth potential at a relatively low cost and expanding its user base across a robust product and service ecosystem. SoPa plans to integrate these diverse businesses by attracting and retaining customers through a loyalty program called Society Points, which has entered beta testing and is expected to launch broadly in the beginning of 2023. Loyalty program members will be able to redeem points to make purchases directly from Society Pass or from affiliated merchants. They will also receive personalized promotions and discounts based on the company’s data capabilities and understanding of consumer shopping behaviour. Argus Research believes that this open-loop loyalty program differentiates Society Pass from other regional competitors.
As of August 2022, SoPa has amassed more than 3.3 million registered consumers and over 205,700 affiliated merchants and brands. Second-quarter 2022 revenues of approximately $500,000 reflect the nascent stage of its platform rollout.
Argus Research has a favourable view of SoPa’s target markets given its still limited e-commerce capabilities and strong projected growth. Vietnam, Indonesia, Philippines, Singapore, and Thailand all have young, rapidly-growing populations with a median age of 25-32, compared to an estimated 42 in China, a much more mature market. SEA economies are also growing at a faster-than-average rate. According to the International Monetary Fund, since 2010, SEA has averaged 4.6% GDP growth, compared to 0.7% in Japan, 0.8% in the EU, and 1.7% in the US.
Argus Research forecasts 2022 revenues of $7 million and 2023 revenue of $30 million, primarily driven by Leflair and supported by Pushkart, Handycart, and other recently completed acquisitions. Argus Research expects the broad launch of the Society Points programs to accelerate the revenue growth trajectory, and Argus Research forecasts a revenue run rate of approximately $40 million by the end of 2023 (for entities whose acquisition have already closed).
SoPa’s recent market cap near $50 million is close to one-time 2023 year-end revenue run-rate forecast of $40 million, and well below the average multiple of four-to-five times for a basket of comparable e-commerce peers. Argus Research believes the current valuation does not seem to reflect adequately SoPa’s growth prospects, driven by acquisitions, the loyalty points program, and continued economic recovery in SEA. Further, Argus Research thinks that the restructuring of Leflair to a separate entity that can eventually support its own public listing can unlock shareholder value for SoPa, with an attractive return on capital, under a holding company model.
To value Society Pass, Argus Research applies a six-times multiple to a year-end 2023 revenue run-rate forecast of $40 million, discounted back one period at 10%. Argus Research then adjusts based on its outlook for $15 million in cash and share count of 30 million at the end of 2022, and arrive at a fair value estimate for SOPA of $8 per share, well above current levels.
In Argus Research’s view, a premium to the peer average is warranted, given the early stage of Society Pass’ revenue-growth trajectory. Argus Research notes that its revenue assumptions could change significantly, as the company continues its M&A strategy and integrates new companies into its product and service ecosystem.
About Society Pass Inc As a digitally-focused loyalty and data marketing ecosystem in Vietnam, Indonesia, Philippines, Singapore and Thailand and with offices located in Angeles, Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Manila, and Singapore, SoPa is an acquisition-focused e-commerce holding company operating 6 interconnected verticals (loyalty, digital media, travel, telecoms, lifestyle, and F&B), which seamlessly connects millions of registered consumers and hundreds of thousands of registered merchants/brands across multiple product and service categories throughout SEA.
SoPa’s business model focuses on analysing user data through its Society Pass loyalty platform and circulation of its universal loyalty points or Society Points. The SoPa loyalty platform drives customer acquisition and increases customer retention for merchants. Since its inception, SoPa has amassed over 3.3 million registered consumers and over 205,000 registered merchants/brands onto its platform. It has invested 2+ years building proprietary IT architecture to effectively scale and support its consumers, merchants, and acquisitions.
Society Pass leverages technology to tailor a more personalised experience for customers in the purchase journey and to transform the entire retail value chain in SEA. SoPa operates Thoughtful Media Group, a Thailand-based, a social commerce-focused, premium digital video multi-platform network; NusaTrip, a leading Indonesia-based Online Travel Agency; Gorilla Networks, a Singapore-based, web3-enabled mobile blockchain network operator; Leflair.com, Vietnam’s leading lifestyle e-commerce platform; Pushkart.ph, a popular grocery delivery company in Philippines; Handycart.vn, a leading online restaurant delivery service based in Vietnam; and Mangan, the leading local restaurant delivery service in Philippines. For more information, please check out: http://thesocietypass.com/.
