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A8 Digital Music Considering Acquisitions
SHENZHEN, Jul 01, 2009 (SinoCast Daily Business Beat via COMTEX) --
A8 Digital Music Holdings Limited (SEHK: 0800), a leading online music store in China, is considering acquisitions of content and mobile phone application developers to widen its lead in the market and make its services more attractive to users, according to Liu Xiaosong, chief executive officer at the company.
Asked about the prospect of China's mobile Internet industry, Mr. Liu notes that as the country is ushering in the 3G era, the roadblocks for the bandwidth of mobile Internet and online payment will be moved away, adding that those are able to lure more users will win the game.
After getting listed in Hong Kong last June, A8 Digital Music came up with a plan to use 36.6%, or about CNY 44.6 million, of the share offering proceeds to make acquisitions of content providers and mobile phone application developers.
A8 Digital Music posted CNY 706 million in sales for 2008, a rise of 147% from on a year-on-year basis. Its net profits were CNY 80 million, up 45% from 2007.
The company recorded CNY 188.8 million in net cash flow and CNY 261 million in share offering proceeds. By now, the company has several hundreds of millions in cash.
A8 Music is a leading integrated digital music company that sells music content through mobile phones, sourced from its highly successful interactive UGC platform A8.com, as well as from international and domestic record labels, and promoted through traditional and new media such as internet and wireless network.
Led by a team of experienced top executives with foresight and vision, the company is able to capitalize on its integrated marketing and sales multi-channel network to acquire insights into consumer preferences in different regions and thus customize its marketing strategies.
A8 Digital Music owns a repertoire of more than 50,000 original songs, one of the largest in China. The success of the original independently produced songs proves the Group's influences in China's music market and its ability to identify and promotes music content with potential for popularity.
Apart from using the most advanced technology to grow its business, it also employs proven traditional promotion means including music companies and the media. It advertises via the printed and broadcast media as well as through participating in music events, putting its name in the company of famous brands and artists for added exposure.
It has been profitable since 2002, two years since its inception, and has grown substantially since then. In 2007, it made turnover of CNY 286 million, 6.5% more than that in 2006, and its net profit increased by 38.7% to CNY 55.3 million.
(USD 1 = CNY 6.83)
Source: www.enet.com.cn (July 01, 2009)
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