SMI Announces 2014 Interim Results

Benefited From The Flourishing Chinese Film Industry

All Business Segment Record Rapid Growth

HONG KONG, Aug. 29, 2014 /PRNewswire/ —

Financial Highlight

6 months ended 30 June

HK$’000

2014

2013

Change

Turnover

874,641

649,097

+34.7%

Revenue

874,641

632,671

+38.2%

Gross Profit

564,349

343,289

+64.4%

Gross Profit Margin

64.5%

54.3%

+10.2p.p.

Profit for the period attributable to owner of the Company

101,004

69,961

+44.4%

Earnings per share (basic)(HK cents)

1.13

0.86

31.4%

SMI Corporate Limited (HKSE stock code: 198, the “Company” or “SMI”) and its subsidiaries (collectively the “Group”) announced its results and financial position for the 6 months ended 30 June 2014. During the reporting period, the turnover of the Group increased 34.7% to approximatedly HK$874.6 million (6 months ended 30 June 2013: HK$649.1 million). Profit for the period attributable to owner of the Company increased 44.4% to approximately HK$101.0 million (6 months ended 30 June 2013: HK$70.0 million).

The Board does not recommend interim dividend for the 6 months ended 30 June 2014.  

During the reporting period, the Group’s operating revenue increased 38% to approximately HK875 million (6 months ended 30 Jun 2013: HK$633 million). The revenue contributed from Xingmeihui surged by 4.4 times to approximately HK$114. Gross profit margin significantly increased 10.2 percentage point to 64.5% as compared with the corresponding period in 2013.

Business Review

Movie Theater Business

Benefited from the flourishing Chinese film industry, the movie theater business of SMI developed healthily. For the first half of 2014, the movie theater business has generated revenue of approximately HK$761 million, representing an increase of 46% as compared to the corresponding period of last year, while the profit increased by 217% to approximately HK$168 million (6 months ended 30 June 2013: HK$53 million).

During the reporting period, the Group has a total of 83 movie theaters with 582 screens in major cities in China, representing an increase of 22% and 19% respectively. (6 months ended 30 June 2013: 68 movie theaters; 490 screens) While securing its leading position in first tier cities, SMI expanded its movie theatres footprints to second and third tier cities and has opend 15 new movie theaters in the first half of 2014 in Xi’an, Wuxi and other cities. The Group expects to have 100 SMI movie theaters nationwide by the end of 2014.

Advertising and Promotion Business

During the reporting period, the Group achieved a great leap forward in its advertising and promotion business, and recorded a revenue of approximately HK$188 million, representing an increase of 141% compared to the corresponding period of last year. With the objective to satisfy the different advertising needs of customers, the Group has rationalized the arrangement of the idle time and space of movie theaters, screening halls and projection screens, and utilizing advanced facilities like LED panels to develop its advertising and promotion business on an on-going basis.

New Membership Intergrated Marketing Scheme (“New Membership Scheme”)

The New Membership Scheme has helped SMI to get a systematic understanding of customers’ needs, secure existing customers and develop new customers, as well as build up a complete customer database. During the Reporting Period, the Group continued to push the New Membership Scheme forward and bring it into full play, and has further expanded the Group’s membership database and secured the future development of the Group’s core business and complementary business.

Movie and TV series production Business

As a strategic move, the Group has gradually transferring its movie and TV series production business to SMI Culture Group Holdings Limited (stock code: 2366), another listing vehicle of the Group, since the beginning of 2014. In the future, SMI Culture will focus on developing contents production business. At present, the Company held 29.97% of the issued share capital of SMI Culture.

New Complementary Businesses — Xingmeihui

SMI established Xingmeihui in 2012, which is the first-ever movie theater O2O eShop in China. After two years of planning and development, Xingmeihui has experienced a super-strong growth during the Reporting Period. The segment achieved a revenue of approximately HK$114 million, increased significantly by 443% as compared with the corresponding period in 2013, and recorded a profit of approximately HK$10 million, representing a huge increase by 1,100% as compared with the corresponding period in 2013.

Xingmeihui has grown strong to become the new engine for the Group’s development, and is expected to bring stable and strong contribution to us in the future. As at 30 June 2014, the Group has a total of 83 Xingmeihui in-theater counters, and will set relevant stores beyond the Group’s movie theaters, which will mostly be located at large social community and crowded shopping malls.

Prospects

The Group will continue expanding its cinema terminal as planned, with an aim to capture the opportunities in area with lower penetration by following our strategy to shift our development focus from first tier cities to second and third tier cities. SMI expects to have 100 movie theaters by the end of 2014, and further increase to 200 theaters in three years’ time.

SMI will increase investment in setting up Xingmeihui’s channels, and plans to have a total of 200 Xingmeihui stores in 2014, and further increase to 1,000 stores in three years’ time. The Group will also cooperate with famous brand on an on-going basis and remain innovative.

Mr. Cheng Chi Chung, Chief Executive Officer of SMI, said: “The film industry in China has entered into a golden period of growth. In the future, the Group will keep on consolidating its existing businesses and business model innovation, so as to face the opportunities and challenges in the industry. Looking forward, the Group will continue to lead the Chinese culture industry, and to ensure the sustained growth of performance by taking advantage of its powerful platform nationwide, so as to create greater value for shareholders.”

To see the full version of this release, click here: http://photos.prnasia.com/prnk/20140829/8521404896-a

About SMI Corporation Limited (00198.HK)

SMI Corporation Limited (00198.HK) is a listed company on the main board of The Stock Exchange of Hong Kong Limited (“HKSE”). Cinema operator, film investment and new complementary businesses (Xingmeihui and Advertising and Promotion business) are the principal businesses of the Company. Under the strong management team and powerful business network, the number of SMI cinemas has increased drastically from 3 cinemas in 2009 to 68 cinemas by the end of December of 2013. Mr. Cheng Chi Chung is the Chief Executive Officer of the Company, who oversees the general direction of the Company and actively involves in cinema and Xingmeihui business. Mr. Cheng is being supported by a competent management team of 8-10 senior executives, who have well experience in relevant fields.

New MT4 WebTrader Platform Available with FxPro

LONDON, Aug. 29, 2014 /PRNewswire/ — FxPro Group Ltd (FxPro) has just launched its own proprietary browser-based trading platform that allows clients to trade using their MT4 accounts. By logging into FxPro WebTrader with only their FxPro Direct login details, clients can access all their MT4 accounts, real and demo and easily switch between them without re-authenticating or reloading the page.

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Notes to Media

About FxPro

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SEA-US: Global Consortium to Build Cable System Connecting Indonesia, the Philippines, and the United States

MANILA, Philippines, Aug. 29, 2014 /PRNewswire/ — A consortium of seven global telecommunications companies agreed today to cooperate in the construction and operation of a new submarine cable system that directly connects Southeast Asia and the United States with NEC Corporation as the system supplier. The Southeast Asia – United States “SEA-US” consortium consists of PT. Telekomunikasi Indonesia International (Telin), Globe Telecom, RAM Telecom International (RTI), Hawaiian Telcom, Teleguam Holdings (GTA), GTI Corporation (a member of the Globe Telecom group of companies) and Telkom USA.

“The SEA-US project is connected seamlessly with Telkom’s Domestic Backbone, and the cable will provide unmatched latency from Indonesia to the United States,” said Syarif Syarial Ahmad, President Director of Telin. “The project will also support Indonesia’s strong economic growth and its government’s Master Plan for Acceleration and Expansion of Indonesia’s Economic Development (MP3EI). We began pursuing SEA-US in 2013 and are very proud to be a part of this historic project that marks the first gateway from the east part of Indonesia to the world.”

In addition, Gil Genio, Chief Operating Officer for International and Business Markets of Globe Telecom, stated, “Our country has become the preferred destination for the outsourcing and offshoring industry, including major call centers, business process outsourcing providers, global financial institutions and a host of other multinationals that require very large bandwidth. We have also seen the explosion of the mobile Internet, enabling a new lifestyle for our mobile customers and businesses. The SEA-US project will enable Globe to meet tomorrow’s bandwidth needs, and is part of our effort to provide a great customer experience on their mobile and other devices, as well as add even more diverse options for companies to connect to the U.S.”

Russ Matulich, Chief Executive Officer of RTI, continued, “The SEA-US Cable will provide much needed Asia-US connectivity and will be the fastest cable connecting Southeast Asia with the United States. It provides essential route diversity from the North Pacific and taps into to the strong economic growth of more than 1.5 billion businesses and consumers who are internet savvy and data hungry.”

Guam is a strategic location in the Pacific which allows GTA to successfully connect the Asia Pacific region to the United States. GTA’s expansive and redundant network enables secure interconnectivity to other cables, increasing Guam’s importance to future cable builds,” said Robert Haulbrook, CEO and President of GTA.

Eric Yeaman, President and Chief Executive Officer of Hawaiian Telcom, said that “Hawaiian Telcom’s participation in the SEA-US project strengthens Hawaii’s role as a key strategic hub for traffic diversity and redundancy between the US and Asia. Additionally, investing in the SEA-US system will allow Hawaiian Telcom to efficiently meet its internal long-term Trans-Pacific capacity needs, as our customers increasing demand for bandwidth continues to grow.”

The SEA-US submarine cable system links the five areas and territories of Manado (Indonesia), Davao (Philippines), Piti (Guam), Oahu (Hawaii, United States) and Los Angeles (California, United States). The system will be approximately 15,000 kilometers in length, avoiding earthquake prone areas in East Asia, and thereby helping to ensure stable connectivity.

When completed in the fourth quarter of 2016 at an approximate cost of US $250 million, the cable system will provide an additional 20Tb/s capacity, connecting Indonesia and the Philippines to the United States with state-of-the-art 100G technology. This capacity will cater to the exponential growth of bandwidth demand between both continents.

“Backed by more than 40 years of experience in constructing over 200,000 kilometers of submarine cable infrastructure, NEC is one of the world’s top vendors of submarine cable systems,” said Mr. Naoki Yoshida, General Manager at NEC’s Submarine Network Division. “The construction of this advanced system enables NEC to capitalize on its experience and contribute to worldwide communications by expanding connectivity and capacity to this increasingly important Trans-Pacific route.”

About Telin

PT. Telekomunikasi Indonesia International (Telin) is a subsidiary of PT. Telekomunikasi Indonesia, tbk, a state-owned telecommunication and network provider. Telin focuses as an international carrier services and strategic investment in international telecommunication business as well as serves as Telkom’s business arms in managing and developing its business lines abroad. With mission The World’s Hub for Telecommunication, Information, Media, Edutainment and Services (TIMES), currently Telin owns 8 subsidiaries namely Telin Singapore, Telin Hong-Kong, Telin Timor-Leste with its product called Telkomcel, Telkom Australia, Telin Malaysia, Telkom Macau, Telkom Taiwan, Telkom USA, and a branch in Myanmar. With the synergy of TelkomGroup compiled with reliable networks and infrastructures, enable Telin to provide high quality services that reaches all parts of the world.

For more information, please go to www.telin.co.id.

About Globe Telecom:

Globe Telecom, Inc. is a leading full service telecommunications company in the Philippines, serving the needs of consumers and businesses across an entire suite of products and services including mobile, fixed, broadband, data connections, internet and managed services. Its principals are Ayala Corporation and SingTel who are acknowledged industry leaders in the country and in the region.

For more information, visit www.globe.com.ph. Follow us on Twitter: http://twitter.com/talk2Globe and Facebook: http://facebook.com/GlobePH.

About RTI:

RAM Telecom International, Inc. (RTI) develops global telecom infrastructure and large-scale data connectivity in selected markets. RTI offers neutral services to telecommunications carrier, large multi-national enterprises, content providers, and government entities. RTI is headquartered in San Francisco, California.

For more information, please visit us at www.rticable.com.

About Hawaiian Telecom:

Hawaiian Telcom, headquartered in Honolulu, is Hawai’i’s leading provider of integrated communications, data center and entertainment solutions for business and residential customers. With roots in Hawai’i beginning in 1883, the Company offers a full range of services including voice, video, Internet, data solutions, managed services, data center services including colocation and virtual private cloud, and other cloud-based services, and wireless supported by the reach and reliability of its network and Hawai’i’s only 24/7 state-of-the-art network operations center. With employees statewide sharing a commitment to innovation and a passion for delivering superior service, Hawaiian Telcom provides an Always OnSM customer experience.

For more information, visit www.hawaiiantel.com.

About GTA:

GTA provides complete communications services in Guam. These include local and long-distance telephone service, wireless, DSL internet access, advanced digital television, or IPTV, and carrier-class data circuits. The company also operates a data center in Guam for offering business data storage and managed wide-area networking. Based in Tamuning, Guam, GTA is privately owned and locally managed.

About GTI Corporation:

GTI Corporation is doing business as GTI Telecom in the State of California. GTI is a wholly owned subsidiary of GTI Business Holdings, Inc., who in turn is a wholly owned subsidiary of Globe Telecom, Inc. GTI was granted a 214 license by the US Federal Communications Commission on February 2010 that authorizes GTI to engage in both wireless resale and facilities-based carrier services in the USA.

For more information, visit www.globemobile.us.

About Telkom USA:

Telekomunikasi Indonesia International (USA), Inc. (Telkom USA) was established on 11thDecember 2013. Located in California and becomes subsidiary with 100% of its shares owned by PT Telekomunikasi Indonesia International (Telin). Telkom USA performs telecommunications products, telecommunications services, Information Technology (IT), Information technology products and information technology services business.

About NEC Corporation:

NEC Corporation is a leader in the integration of IT and network technologies that benefit businesses and people around the world. By providing a combination of products and solutions that cross utilize the company’s experience and global resources, NEC’s advanced technologies meet the complex and ever-changing needs of its customers. NEC brings more than 100 years of expertise in technological innovation to empower people, businesses and society.

For more information, visit NEC at http://www.nec.com.