Nan Hai Corporation Announces 2016 Annual Results

- Film + strategy implemented in the round, content industry chain fully equipped

- Property revenue drove profit, competiveness of corporate IT services enhanced

HONG KONG, March 15, 2017 /PRNewswire/ -- 

Financial Highlight

• As of 31 Dec 2016, turnover of the Company increased by approximately 112.3% to HK$8,915.6 million.
• As of 31 Dec 2016, net profit attributable to owners of the Company was approximately  HK$1,359.6 million.
• As of 31 Dec 2016, net assets attributable to owners of the Company were HK$4,051.8 million.
• In 2016, Dadi Cinema achieved box-office revenue (before taxation) of RMB2,237 million, representing a growth of 1.1% as compared with corresponding period last year, approximately 4.9% of the national box office, ranking second among cinema investment and management companies throughout China.
• As of 31 Dec 2016 , turnover of property development was approximately HK$4,524.9 million. Net profit before income tax was approximately HK$2,695.4 million
• On 25 Jan 2017,Orange Sky Golden Harvest Cinemas (China) Company Limited purchased through Dadi Cinema group. Upon completion of transaction, the number of cinemas and screens operated and owned by Dadi Cinema would increase to 426 and 2,442 respectively, further consolidating its market position as the second leading cinema investment and management company in the PRC.
• The board of Company has decided to recommend the payment of a final dividend of HK$ 0.2 cents per ordinary share as of 31 Dec 2016.

Nan Hai Corporation Limited ("Nan Hai Corporation" or the "Company"; stock code: 00680.HK), is pleased to announce the consolidated results for the 12 months ended 31 December 2016 (the "reporting period"). During the year, turnover of the Company increased by approximately 112.3% to HK$8,915.6 million. Net profit attributable to owners of the Company was approximately HK$1,359.6 million. Net assets attributable to owners of the Company were HK$4,051.8 million. The board of Company has decided to recommend the payment of a final dividend of HK$ 0.2 cents per ordinary share as of 31 Dec 2016.

2016 was a watershed year for Nan Hai Corporation, its subsidiaries of property development made the excellent performance. For phase 3 of "The Peninsula", the flagship project located in Shenzhen open for sale in the mid- year. During 2016, a total of 768 units were sold, generating a pre-sales amount of RMB11.277 billion. Phase 4 of the project commenced was under development at full speed, and was expected to meet pre-sales conditions in 2017.

For the culture and media service segment, in 2016, Dadi Cinema achieved box-office revenue (before taxation) of RMB2,237 million, with growth of 1.1% as compared with corresponding period last year, approximately 4.9% of the national box office, ranking second among cinema investment and management companies throughout China. The number of viewers reached 73.25 million, marked another record high. In 2017, Dadi Cinema group purchased Orange Sky Golden Harvest Cinemas (China) Company Limited, the cinema layout of OSGH (China) in first and second tier cities, would make a good complement to the cinema layout of Dadi Cinema which focuses on second to fourth tier cities. Upon completion of transaction, the number of cinemas and screens operated and owned by Dadi Cinema would increase to 426 and 2,442 respectively, further consolidating its second leading market place  in the PRC. 2016 was the year which Dadi Cinema fully implemented  "Film+" strategy, Dadi Cinema, with the long term accumulated "movie culture group" in mind, innovated and broke through, integrated different resources, enhanced the cooperation across different businesses, strove to create an eco-system of cinema experience integrated with diversified operation of "Film+ Innovative Internet", "Film+ Innovative Retail", "Film+ Innovative Catering", nurture a "movie culture group", comprehensively explored the consuming potential of "quality life". Dadi Cinema consolidated the existing market position and profitability, meanwhile, the investment value also won the recognition of the capital market. On May 2016, Dadi Cinema issued convertible bonds with an aggregate principal amount of RMB1 billion to Alibaba Pictures, and would open multi-aspect strategic cooperation with Alibaba Pictures.

In 2016, Culture and media service continued expanded upstream business and started the full layout in the content industry chain. During the year, Dadi Film developed the fields of films, television series, network television series and animation at full force on the basis of developing the issuing agent business. Dadi Film distributed "Days of Our Own", "Adventures of Weibaobao" etc. WuZhou Film Distribution Co., Limited, a 22.5% associated company of the Company, in this year, issued the "Chongqing Hotpot", "Crouching Tiger, Hidden Dragon: Sword of Destiny" etc., achieved good performance. Beijing Oriental Dadi Media invest Co., Ltd, jointly formed by Dadi Film and Orient Bangxin Capital Co., Ltd., had basically completed first tranche of fundraising and investment with around RMB120 million. Meanwhile, Dadi Film commenced the formation of a cinema fund investment management company, with a view to leverage on the quality resources and excellence experience of Dadi Cinema and Dadi Film in terms of film and television terminals, distribution channels and management for capital leverage and to promote the development of content industry chain business with solid financial support.

For corporate IT application services segment, Nan Hai Corporation subsidiary SINO-I Technology Limited ("SINO-I Technology" ; stock code: 250.HK) solved the "last mile" problem effectively between service provider and corporates. During this year, the turnover of this business segment was approximately HK$ 818.1 million. Looking forward, apart from providing cloud services and cloud applications via platforms, the Group will continue to improve ground services capability by providing supporting ground services to SMEs under different development stages.

For new business, Nan Hai Corporation commenced news media in 2015, and created new media with innovative model. The Company has established two business divisions, namely "HK01" and "Duowei Media". Based in Hong Kong, "HK01" has now developed into a new media with over 550 employees. "HK01" strived to establish a media dissemination platform to create new interactive experience for its readers and dedicated to establish a new type of advocacy media and internet application services, and provided full services for its readers through the trinity multimedia platform, including: website, weekly magazine and physical premise. "Duowei Media" includes two major media, namely Duowei Monthly magazine and Duowei website. Duowei Monthly magazine sold in Hong Kong, Singapore and Malaysia. Driven by the commencement of "Film+" strategy of Dadi Cinema, the innovation commercial business of the Group accelerated expansion. The Group focused tightly on high quality consumer group, and established catering and retail business. Dadi Creative Catering was at the preliminary stage, led people's new catering culture by the concept style of "Light", "Close" and "New" and the operation mode combining with cinema. The acquired Crabtree & Evelyn, the international famous brand of skin care, completed on 30 September 2016, was undergoing the consolidation process. Both were expected to achieve good synergy and integrated effect in the key capabilities of original business and high quality resource of Dadi Cinema subsidiary, contributing to the long term client-side development strategy of the group in the future.

Looking forward, the group continued to engage in three main businesses, namely culture and media service, property development and corporate IT application services. The Company would expand into the whole film industry chain at full force, promote the businesses in content investment and production, increase the advantage of terminal and issuance in cinema, create high quality pan entertainment culture platform, facilitate the development progress of existing property projects, meanwhile, strive to develop new property project, to further enhance the operation management level of corporate IT applications services, as well as actively plan the layout of new business. Contemporarily, the Group will fully conceive and develop new media and innovation business, promote resource sharing and strategy synergy across different business aspects, strive to build it as the new business growth point of the Group.

About Nan Hai Corporation Limited

Nan Hai Corporation Limited ("Nan Hai Corporation" or the "Company"; stock code on Hong Kong Stock Exchange: 00680.HK), is a diversified holding company being engaged in cultural communications, real estate development and enterprise IT services through its three business sections: Dadi Media, Nan Hai Development and Sino-i (a company listed on the HKEx, stock code: 00250.HK).

In the field of cultural communications, Dadi Media, with the construction of chain cinema terminals as the point of penetration, has progressively extended their business into the upper stream of the film industry based on a strong downstream platform having been built over the past decade, becoming one of the leaders in the film industry. It has been ranked in the top two among domestic film investment companies in terms of the numbers of cinemas, screens, and viewers, and box office revenue. In the field of real estate development, the high-end sea-view real estates of about 185,000 square meters which is a part of the flagship project of Nan Hai Development - "Peninsula * Polis" located in Shenzhen was launched to the market in April 2016. The amount of subscription in August 2016 exceeded 10 billion yuan. In the field of enterprise IT services, over the past decade, Sino-i has been sticking to the policy of providing IT application services for small and medium enterprises in China, to promote their informatization process. The company has successfully established a nationwide business and service network which is first of its kind in the industry.In the meantime, in order to maintain long-term development, Nan Hai Corporation has begun to enter new business areas including "new media", "creative business" since 2015 through acquisitions and new construction. Nan Hai Corporation will continue to sow in these two areas, and strive to develop them into the fourth and the fifth business sections of the group in two to three years.

This press release is issued by Wonderful Sky Financial Group Holdings Limited on behalf of Nan Hai Corporation Limited.

For further information, please contact:

Wonderful Sky Financial Group Holdings Limited

Wendy Chan / Alice Wong / John Lin
Tel:       (852) 3970 2200 / (852) 3970 2238/ (852) 3970 2226
Fax:      (852) 2565 1638
Email: [email protected] / [email protected] / [email protected]

SOURCE Nan Hai Corporation Limited