GUANGZHOU CITY, China, Dec. 30 /PRNewswire-Asia/ -- Subaye, Inc.
(OTC Bulletin Board: SBAY)("Subaye" or the "Company") announced its financial
results for the fiscal year ended September 30, 2009.
Mr. Cai, the CEO, stated: "I am very pleased with our financial results
for fiscal 2009. Our online membership business had a tremendous year. Our
entertainment media division generated solid revenue growth and invested in
some promising assets. Our trading business recovered nicely from the economic
turmoil of the past year and is very well positioned moving ahead. I expect we
will deliver double digit revenue and earnings growth in fiscal 2010."
Mr. Crane, the CFO, stated: "It is important to note that our EPS for 2009
does not account for the recent share issuances in the past few months and
specifically the recent share exchange to acquire the minority interest of
Subaye.com, Inc. We currently have approximately 6.7 million shares of common
stock outstanding and if we applied this number of shares outstanding and
factored in the effect of the share exchange in that we now own 100% of
Subaye.com, Inc, our EPS would decrease substantially. However, we also
incurred a significant one-time nonrecurring expense of approximately $6.7
million for an advertising promotion in the first half of fiscal 2009. If that
one-time nonrecurring expense was added back to earnings, and all other stock
issuances noted above were taken into account, our EPS would be approximately
$2.93. An EPS of $2.93 represents growth of approximately 18% for fiscal 2009
as compared to fiscal 2008."
The Company reported revenue of $47,987,000 for the fiscal year ending
September 30, 2009, up 64% from $29,172,000 in fiscal year 2008. Net income
grew 159% year-over-year to $9,778,000 or $5.33 EPS, up from $2.47 EPS in the
prior year period, both of which are adjusted for the recent reverse stock
split. EBIDTA in fiscal 2009 was $18,748,000, up from $10,096,000 from fiscal
2008. Gross margin for fiscal 2009 increased to 49% from 30% in fiscal 2008.
Net margin increased for fiscal year 2009 to 20% as compared to 13% in fiscal
2008.
About Subaye, Inc.
Subaye, Inc. ("Subaye" or the "Company"), is a leading video advertising
and entertainment media provider in China. Subaye's platform includes
production, upload, storage, sharing and publishing onto more than 33 main
video sharing portal websites. Subaye also offers SaaS business solutions and
is in the process of developing what Subaye believes is the first online
shopping mall in the world that will utilize 3D imaging throughout the online
customer interface. The Company's http://www.subaye.com and
http://www.x381.com websites are generating revenue, while its other web-based
businesses are under development or offering free services to potential
customers at this time. Subaye's video sharing services, SaaS solutions and
its online shopping mall will be fully integrated in 2010. Subaye's members
will use Subaye's SaaS online content management software to manage their
online video and graphic showcases, maintain customer data and to manage
operations within their webshops at the online shopping mall. As of November
30, 2009, the Company had approximately 63,000 members. The Company's video
database consisted of over 72,000 profiles of corporate video showcases. These
showcases offer a cost-effective venue for small to mid-size enterprises
("SMEs") to advertise their products and services and establish and enhance
their corporate brands. The visitors of Subaye's websites, namely
http://www.subaye.com , view the video showcases for Subaye's members in order
to select products or services they wish to purchase. The
http://www.subaye.com website and its affiliated websites provide visitors
with easy access to an index of over 3.12 million video clips, images and web
pages. Additional services such as general education and basic online media
promotions are provided through the Company's websites or through licensing
arrangements.
Subaye also utilizes its experience and contacts within the entertainment
media industry in Asia to produce and place advertisements on behalf of its
customers. Subaye's management also routinely invests the Company's funds in
entertainment productions in Asia. Typically, these investments consist of the
purchase of the full or partial copyrights to an entertainment production. On
December 22, 2009, "Dayoucun," the Company's third significant motion picture
investment in Asia will be released nationwide in over 1,000 cinemas as well
as in Hong Kong and Taiwan. The Company invested in "The Pye-Dog" and "Big
Movie," both of which are motion pictures previously released in Asia in 2007
and 2005, respectively. In 2010, Subaye expects several of its motion picture
investments to generate significant revenues.
Subaye's trade services are offered to customers based in Asia, North
America and Europe. These customers order products through Subaye and ship
products both domestically within China and internationally. Subaye's trade
services provide solutions for both importing and exporting transactions.
For further information on Subaye, Inc., please visit
http://www.subaye.net . You may also register to receive Subaye's future press
releases or request to be added to the Company's distribution list by
contacting James Crane by email at jamesc@subaye.com.
Forward-Looking Statements
Certain statements contained herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are based on current expectations,
estimates and projections about Subaye, Inc.'s industry, management's beliefs
and certain assumptions made by management. Readers are cautioned that any
such forward-looking statements are not guarantees of future performance and
are subject to certain risks, uncertainties and assumptions that are difficult
to predict. Because such statements involve risks and uncertainties, the
actual results and performance of the Company may differ materially from the
results expressed or implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements. Subaye, Inc.'s operations are conducted in the
People's Republic of China ("PRC") and, accordingly, are subject to special
considerations and significant risks not typically associated with companies
in North America. These include risks associated with, among others, the
political, economic and legal environment and foreign currency exchange. The
Company's results may be adversely affected by changes in the political and
social conditions in the PRC and by changes in governmental policies with
respect to laws and regulations, anti-inflationary measures, currency
conversion, remittances abroad, and rates and methods of taxation. Other
potential risks and uncertainties include but are not limited to the ability
to procure, properly price, retain and successfully complete projects, and
changes in products and competition. Unless otherwise required by law, the
Company also disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions to the
forward-looking statements made here. Readers should review carefully reports
or documents the Company files periodically with the Securities and Exchange
Commission.
For more information, please contact:
James Crane, Chief Financial Officer
P.R.C. Cell +86-186-0125-0891
U.S. Office +1-617-699-6325
SOURCE Subaye, Inc.
RELATED LINKS
http://www.subaye.com
http://www.subaye.net
http://www.x381.com
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