CASH Doubles Profits in 2010

Solid Business Performance and Growth

Focused on Mobile Internet Business to Capture China's "Convergence"

Mar 24, 2011, 07:25 ET from The CASH Group

HONG KONG, March 24, 2011 /PRNewswire-Asia/ -- The CASH Group* (1049.HK), a focused developer of mobile internet in China, today announced its 2010 annual results. The Group recorded a net profit attributable to owners of HK$50.8 million for the year ending 31 December 2010, a more than double of HK$20.8 million (as restated) for the previous year.  The Board of Directors recommends the payment of a 2010 final dividend of HK 0.2 cent per share (2009: nil).

Mr. Bankee Pak-hoo Kwan, Chairman and CEO of the CASH Group, said: "We have experienced solid business performance and growth with our strong foothold in China as planned. With separate professional management teams in place for our associates, CASH Financial Services Group (CFSG: HK:510) and Pricerite, we are now focused on developing and expanding our Moli Group, based out of Shanghai with 300 dedicated professionals for innovative award-winning online games, into the lucrative mobile internet market in China."

The CASH Group's expansion into Mobile Internet business is to capture China's announced policy of "convergence" of the internet, mobile and cable television services, which is part of a global phenomenon. China is already the world's largest mobile subscriber market with over 800 million mobile users and growing. This is around triple the size of the US market which is a mature market.  According to the China Internet Network Information Center (CNNIC), mobile internet users in China grew from 233 million in 2009 to 303 million in 2010, an increase of 30%.

"Moli Group's current business in online games alone is in a market segment estimated at billions of dollars. With emergence of smartphones in China, Mobile Internet services relating to contents, casual games, social networking and other value added services are poised for unprecedented take off.  We are now building Moli into an integrated end-to-end mobile internet platform that captures the full value chain of activities," Mr. Kwan explained.

The Moli Group has a database of 40 million subscribers. It has announced a tie-up with Oberon Media Group, which is invested by Goldman Sachs, Morgan Stanley and Oak Investment Partners and is a world's indisputable leader for mobile games. It has set an industry standard on games and related contents with its game solutions being adopted by some of the world's innovative corporations including Microsoft, AT&T, Electronic Arts, Orange France and Yahoo!. The Moli Group is also acquiring control of a profitable mobile platform, Yole, with 20 million subscribers in China. This is only a beginning of the Moli Group's expansion plan.  

"With regard to CFSG and Pricerite, these associates of ours will benefit from China's 12th Five-Year Plan to expand domestic consumption through structured investments. These businesses are ready to reap rewards from the emerging wealth management and home furnishing markets respectively," Mr. Kwan said.

*Celestial Asia Securities Holdings Limited and its subsidiaries

About CASH

CASH Group is a services developer. We have access rights to the lucrative mobile internet service areas which we are now focused to develop. China has hundreds of millions of mobile and internet users. China's policy is to converge these users under a common emerging technology platform. This creates seamless Mobile Internet opportunities, including for online games, advertising, e-commerce and other value added services. We, at CASH Group, are ready to capture these opportunities. We have six years of experience in developing "Moli" (meaning magical force), to guide us for innovation and implementation. We will develop more Molis for other Mobile Internet services. We aim to repeat our success stories for CASH Financial Services Group (CFSG) and Pricerite.  For more information, please visit www.cash.com.hk.

Please note: The above information contains forward-looking statements that involve risks and uncertainties and are based on information of the parties in good faith believes to be reliable as of the date thereof. The actual results may differ. Please exercise care and caution and read the information with the public announcements and circulars which the information is subject to. All figures are approximation.

Attachment: 2010 Consolidated statement of comprehensive income

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

The audited consolidated results of CASH Group for the year ended 31 December 2010 together with the comparative figures for the last corresponding year are as follows:


2010

2009


HK$'000

HK$'000



(restated)




Continuing operations



Revenue

13,823

31,938

Other income and gains

1,885

19,780

Cost of sales and services for online game business

(6,892)

(10,607)

Salaries, allowances and commission

(20,746)

(22,344)

Other operating, administrative and selling expenses

(30,054)

(48,156)

Depreciation of property and equipment

(7,809)

(8,466)

Finance costs

(12,764)

(20,575)

Net loss on financial assets at fair value through profit or loss

(2,095)

(2,533)

Fair value gain on investment properties

19,074

28,165

(Loss) gain on disposal of property and equipment

(97)

934

Reversal of impairment on intangible assets

2,730

-

Share of results of associates

33,888

-

Loss on dilution of shareholding in associates

(9,507)

-

Impairment loss recognised on accounts and other receivables

-

(6,525)




Loss before taxation

(18,564)

(38,389)

Income tax expense

(3,152)

(5,326)




Loss for the year from continuing operations

(21,716)

(43,715)




Discontinued operations



Profit for the year from discontinued operations

64,953

47,788




Profit for the year

43,237

4,073






2010

2009


HK$'000

HK$'000



(restated)




Other comprehensive income for the year, net of income tax



Exchange difference on translation of foreign operations

95

151

Reclassification adjustment - transfer translation reserve to profit or loss upon losing control of subsidiaries

(5,435)

-

(Loss) gain on revaluation of leasehold land and buildings

(1,639)

9,815

Deferred taxation arising on revaluation of leasehold land and buildings

270

(1,620)

Share of properties revaluation surplus of the associates

1,919

-




Total other comprehensive (expense) income for the year

(4,790)

8,346




Total comprehensive income for the year

38,447

12,419




Profit for the year attributable to:



Owners of the Company



          Loss for the year from continuing operations

(21,716)

(43,715)

          Profit for the year from discontinued operations

72,508

64,538




          Profit for the year attributable to owners of the Company

50,792

20,823




Loss for the year from discontinued operations attributable to non-controlling interests

(7,555)

(16,750)





43,237

4,073




Total comprehensive income for the year attributable to:



   Owners of the Company

46,709

27,482

   Non-controlling interests

(8,262)

(15,063)





38,447

12,419











2010

2009



(restated)




Earnings (loss) per share






From continuing and discontinued operations:



    - Basic (HK cents)

1.968

0.910




    - Diluted (HK cents)

1.968

0.910




From continuing operations:



    - Basic (HK cents)

(0.841)

(1.910)




    - Diluted (HK cents)

(0.841)

(1.910)




SOURCE The CASH Group



RELATED LINKS

www.cash.com.hk