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For Immediate Release
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e-KONG
Announces 2007 Interim Results |
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HONG KONG, 18 September 2007 -- 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 interim results of the Company and its subsidiaries ("the Group") for the period ended 30 June 2007. During the period under review, the Group continued to achieve an increase in turnover while maintaining profitable results. Turnover of the Group amounted to HK$398.0 million, up 20.3% from HK$330.7 million for the previous corresponding period. ZONE telecommunication operations in the United States remained the key contributor towards the Group's revenue growth for this period. The Group's net profit increased by 16.8% from HK$22.8 million for the corresponding period in 2006 to HK$26.6 million. EBITDA increased 36.3% to HK$38.5 million when compared to HK$28.3 million for the corresponding period in the previous year. The Group further strengthened its balance sheet position with total net assets of HK$205.2 million, representing an increase of 55.3% over the prior year, while cash and bank balances increased by 60.3% to HK$160.9 million. ZONE Hong Kong operations continue to move forward with its strategic plan to expand into China. After establishing a wholly foreign-owned enterprise (WFOE) named 深圳盈港科技有限公司 in March 2007 and having set up its operating office in Shenzhen, ZONE has successfully concluded business management and consultancy arrangements in August with two local Chinese enterprises, both of which are reselling telecommunication products and services to business customers in the Shenzhen area for the major telecom operators in China. Under the arrangements, ZONE utilises its key operational staff and management systems from its Hong Kong office to work with these enterprises in order to develop their telecommunication-related businesses and receive the economic benefits thereof while maintaining effective control over the business and operations of the local Chinese enterprises. In addition to the business development initiatives in the Shenzhen area, the Group has been actively exploring various opportunities to penetrate, by way of acquisition or otherwise, into the telecommunication-related sector in China. ZONE Singapore maintained its intense marketing drive to grow its customer base, with particular focus on acquiring high value corporate customers. It continues to introduce innovative product packaging and value-added services to differentiate itself from its competitors. This strategy has contributed to favourable results in terms of both revenue and earnings during the first six months as compared to the same period last year. ZONE US has reached an agreement with a major nationwide US wireless network provider which will enable the Group to penetrate into the domestic US mobile market as a Mobile Virtual Network Operator (MVNO) before the end of 2007. ZONE will, as an initial stage, offer cellular services to its independent local exchange carriers (ILEC) customers which will in turn render mobile voice and data services to their end user customers under the ILEC's own brand name. This additional range of services has been received by ZONE's ILEC customers with enthusiasm, as it provides them with a seamless way to add a mobile product to their existing fixed line offerings. It is expected to further solidify the relationships between participating ILECs and ZONE US. ZONE Asia's global VoIP offering "ZoiPPE" (www.zoippe.com) continues to focus on increasing its user base through viral marketing and co-branding/white-labelling alliances and partnerships. Upgrades and other enhancements are being incorporated into the communication service platform to improve the system robustness as well as to introduce new features and increase the mix of product offerings. During
the period under review, the Group delivered on its objectives to continue
to grow both revenue and profit, to establish a business presence in China
and to enhance the technology robustness and scalability of the ZoiPPE
platform and intensify its promotional drive globally. Looking
ahead to the second half of 2007, the Group anticipates that
steady revenue growth will be maintained, ZONE's operations in China will
begin to contribute to the Group's turnover and the ZoiPPE user base will
be further increased following the introduction of new features and improvements
in system robustness while the Group will strive to create new revenue
stream opportunities. The Group is excited about entering the domestic
US mobile market as an MVNO this period and is confident of the growth
potential for this latest service offering.
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About
e-KONG Group Limited For further information on e-KONG, please visit: www.e-kong.com ZONE website addresses :
For more details, please contact:
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