For Immediate Release

 

e-KONG Announces 2007 Final Results

 

Record Turnover of HK$795 million, Net Profit up 8.8%

The Group makes progress in China

and enters wireless telecom market

 

 

HONG KONG, 01 April 2008 -- e-KONG Group Limited (¡§the Company¡¨ or ¡§e-KONG¡¨), a company listed on the main board of the Hong Kong Stock Exchange (SEHK: 524), today announced its final results of the Company and its subsidiaries (¡§the Group¡¨) for the year ended 31 December 2007.

 

During the year, the Group¡¦s core telecommunication business maintained its momentum with steady growth.  The Group achieved a record turnover of HK$795.3 million, representing year-on-year growth of 13.2%.  The Group¡¦s net profit rose by 8.8%, from HK$40.6 million in 2006 to HK$44.2 million.  EBITDA increased 14.8% to HK$65.7 million when compared to HK$57.2 million for the previous year.  The Group¡¦s balance sheet position remained healthy with total net assets of HK$224.5 million, representing an increase of 69.9% over the prior year, while cash and bank balances further strengthened to HK$181.7 million.

 

In 2007, ZONE operations in the United States (¡§ZONE US¡¨) posted a year-on-year turnover increase of 16.7% from HK$599.0 million to HK$698.9 million.  The increase in turnover was due primarily to facility improvements made to expand the offering of IP-based services which attracted more application-driven domestic US customers.  ZONE US, in addition, expanded its service offerings to include mobile voice and data services after reaching an agreement with a major US wireless network provider in the first half of the year.  Following timely completion of technical and business process integration, ZONE US successfully launched its Mobile Virtual Network Operator (¡§MVNO¡¨) services and has signed contracts with both its ILEC and Competitive Local Exchange Carrier (¡§CLEC¡¨) customers for reselling mobile services.

 

¡§The Group is very excited about entering into the wireless industry, an industry which our directors and management team have many years track record of building and operating successful networks.  In parallel with expanding our MVNO services in the United States, we anticipate ourselves actively participating in the wireless industry in Asia, in particular in the Broadband Wireless Access (BWA) arena. We believe the deployment of advanced BWA technologies, such as the ¡§disruptive¡¨ WiMAX technology, offer non-incumbent players like us the ability to quickly and cost-effectively offer broadband services via wireless access.¡¨ Mr. Richard Siemens, Chairman of e-KONG commented.

 

Turnover from ZONE¡¦s operations in Asia (¡§ZONE Asia¡¨) for 2007 amounted to HK$94.4 million compared to HK$97.5 million for 2006.  ZONE operations in Singapore continued to be the major revenue contributor in Asia.  While ZONE Asia¡¦s turnover is mainly derived from the retail IDD segment, contributions from the wholesale voice business, particularly benefiting from the collaboration between ZONE US and ZONE Asia, have recorded gradual increase.

 

ZONE Hong Kong operations made significant progress in strengthening its presence in the telecom market in China.  During the year, its wholly foreign-owned enterprise (¡§WFOE¡¨) successfully concluded business management and consultancy arrangements with two local Chinese enterprises which have contracted with China Netcom (¤¤°êºô³q) and China Tietong (¤¤°êÅK³q) in reselling their voice and data products and services in Shenzhen.  Through these business arrangements, the China operation has started to contribute towards the Group¡¦s turnover.  In March 2008, the WFOE also concluded an agreement with China Telecom (¤¤°ê¹q«H) to market and resell its Internet Data Centre (¡§IDC¡¨) facilities in Shenzhen.

 

ZoiPPE (www.zoippe.com) continues to explore and implement different innovative and creative methods of expanding its user base.  ZoiPPE has expanded its user reach through Zoip-me web applications which allow people to ¡§click-to-call¡¨ users via normal phones.  Such web applications are made available to the ZoiPPE service platform, other mass-market community websites (including popular websites such as Facebook, Friendster and MySpace) and e-commerce marketplace websites.  ZoiPPE has also recently expanded the social networking element of its service (www.zoippefriends.com) through a partnership with a company that currently has more than a million members.  Users of this social networking platform are now able to enjoy an enhanced level of social interaction through the added Zoip-me functionalities.

 

¡§Looking ahead to 2008, the Group expects that ZONE will continue its growth path through an increasing contribution from the non-traditional voice business such as international IP-wholesale and direct dedicated services, and also growing contribution from its operations in China.  In line with the market trend moving towards fixed-mobile convergence of services, the Group will focus on promoting our mobile services in the US and actively pursue opportunities to participate in the roll out and provision of BWA services in Asia.¡¨ Mr. Siemens concluded.

 

-- END --

 

Note: The full text of the Group¡¦s 2007 Final Results announcement can be accessed through the e-KONG¡¦s corporate website at www.e-kong.com/investors/announcements.htm

 

 

About e-KONG Group Limited

e-KONG Group Limited is listed on the main board of the Hong Kong Stock Exchange (SEHK: 524) and maintains a Level 1 ADR programme through The Bank of New York Mellon (Ticker Symbol: EKONY).  The Company's ZONE telecommunications business provides a diverse range of voice and data telecommunication solutions and services utilising the latest technology and IP-based facilities that offers customers a variety of features and value-added services tailor-made to suit their needs while empowering them with tools to manage their telecommunications requirements.  ZONE also offers the mass market certain specialised software, applications and services, under the brandname ZoiPPE, to enhance their user experience in communications and interactivity on the Internet.

 

For further information on e-KONG, please visit: www.e-kong.com

 

ZONE website addresses :

 

ZONE United States     www.zonetelecom.com

ZONE Hong Kong        www.zone1511.com

ZONE Singapore           www.zone1511.com.sg

ZoiPPE                         www.zoippe.com

 

For more details, please contact:

 

Investor Relations Team

Tel:  852 2296 9770

Fax: 852 2801 7238

e-mail: ir@e-kong.net