Heng Xin China announces results for Q3
Louise Duffy ©RapidTVNews | 14-05-2012
Technology and infrastructure provider Heng Xin China Holdings has announced its third quarterly results for the nine months ended 31 March 2012.
The group's turnover decreased by approximately 4.1% to HK$500.2 million compared with the same period last year. Profit attributable to shareholders was approximately HK$170.5 million, representing an increase of approximately 12.6% over the same period last year. Basic earnings per share of the company was approximately HK$0.0685, a decrease of approximately 10.9% over the same period last year. The board did not recommend the payment of an interim dividend for the nine months ended 31 March 2012.
Xiao Yan, CEO of the group, said: "To adapt to the national 'three networks integration' policies, the group has been transforming from a wireless digital television equipment integrator to an operator of television broadcasting integrated businesses since 2010. With the business expansion and active operation in 2011, the group has already obtained the operation rights on 9.2 million cable television subscribers in such provinces as Jiangxi, Anhui, Hebei and Shanxi for a term of 12 to 15 years, and the operation rights on the wireless television business in Hebei province. The group has fully completed its transformation, and has established its position as an operator of television broadcasting integrated businesses in the industry."
During the period, the revenue from digital cable television business, wireless digital television value-added services, wireless digital terrestrial TV network equipment integration business, encrypted integrated circuits andthe derived integrated business, wireless digital audio products business represented approximately 23% (2011: 13.7%), 12% (2011:NA), 25% (2011: 33.9%), 9% (2011: 18%) and 31% (2011: 34.4%) of the total revenue respectively.
During the period under review, the revenue from digital cable television business amounted to approximately HK$112.1 million, representing an increase of approximately 57% over the same period last year. The group has achieved stable progress for its network construction project in the integration of the three networks and greater than expected revenue for the digital cable television operational business in rural areas. The revenue comprised operational revenues from basic subscription; other value added technology; as well as market service income arising from the 1,000,000 subscribers of the Hebei rural television network and sales of digital cable television business related products. The basic network construction for 400,000 subscribers of broadcasting television in the rural areas is underway and expected to be completed in the first half of 2012.
The group's existing operation right on value-added business covers areas such as Anhui and Nanchang of Jiangxi province. The group has signed contracts on establishment and operation of value-added business for 5.5 million cable television subscribers. In Hebei province and Datong of Shanxi province, the group has signed contracts on establishment and operation of basic television business for 3.7 million cable television subscribers. During the first quarter of 2012, the group has completed the building of platform and testing for the 301 remote medical treatment project and the group will enjoy the revenue from such project very soon.
During the period, revenue from wireless digital television value-added services amounted to approximately HK$60.4 million. The group has signed contracts on wireless mobile digital television operation in Hebei province, which includes operation for value-added businesses such as 6,000 advertising display panels in public areas. During the first quarter of 2012, the Group has completed the construction of 1,000 display panels in public areas and the convenience payment project throughout Hebei province cooperated with 'Hebei One-Card' and 'Beijing Haike Rongtong' stepped into the stage of implementation.
Xiao Yan concluded: "The business plan of the group for the future is to develop as the top three operators of television broadcasting integrated businesses in the PRC. The Group will engage in full-scale basic television broadcasting business, television broadcasting value added business and wireless television broadcasting business as well as satellite business according to the characteristics of the broadcasting television subscribers in different regions in mainland China.
"With the current progress of network construction, it is expected that the construction of network for around 1.7 million cable basic broadcasting television subscribers and cable value-added broadcasting television subscribers and 30,000 electronic signboards within the contracted regions will be completed by 2012. Moreover, approximately 3 million new broadcasting television subscribers will be entered into contracts, generating a promising growth in profit and long-term value for the Group. The Group will also continue to increase the investment in research and development, production and sales services in digital cable television related products, and strive for better economic efficiencies."