The principal activities of the Group are provision of financial leasing and other financial services, provision of consultancy services, advertising and media related services, provision of project management services, travel agency and related operations.
The Group's loss attributable to shareholders for the year ended 31-03-2019 amounted to HKD 42.68 million. Basic loss per share was HKD 0.013. No dividend declared. Turnover amounted to HKD 107.2 million, an increase of 54.8% over the same period last year, gross profit margin down 17.9% to 14.6%. (Announcement Date: 28 Jun 2019)
Business Review - For the year ended March 31, 2019
Advertising and Media Related Services
In order to help advertisers in the People’s Republic of China (the “PRC”) to acquire users for their apps or products overseas, the Company has been engaged in mobile advertising and analytics services by helping advertisers to better acquire users and monetize their products by helping them to reach customers overseas, and to optimize their advertisements through the provision of designing, production, information consulting and marketing planning services. The Group will pay traffic acquisition costs to publishers which are generally overseas media platforms, including Facebook and Google; and they will charge advertisers an agency fee for its user acquisition services, which is usually based on performance-pricing model where advertising is paid on the basis of each installation or click generated from the advertisements that were placed.
During the Year, the revenue contributed by such segment was approximately HK$104.5 million (2018: HK$66.9 million), representing an increase of approximately 56.2%. The loss of this business segment for the Year was approximately HK$2.5 million (2018: profit of HK$3.5 million), representing a decrease of approximately 171.4%.
Provision of Financial Leasing and other Financial Services
During the Year, the revenue contributed by this segment was approximately HK$2.7 million (2018: HK$2.4 million), representing an increase of approximately 12.5%. The loss of this business segment for the Year was approximately HK$9.9 million (2018: HK$30.5 million), representing a decrease of approximately 67.5%. The increase in revenue was mainly due to the revenue generated from financial leasing area and the decrease in loss of this business segment was mainly attributable to the tighten cost control measures implemented.
Business Outlook - For the year ended March 31, 2019
In September 2018, the Company entered into a memorandum of understanding with Shanxi Dadi Huanjing Investment Holdings Co., Ltd.*（山西大地環境投資控股有限公司）(“Shanxi Dadi”) in which both parties agreed that they will form strategic partnership with each other, allowing both parties to capitalize on their respective advantages and create synergy effects. To leverage the industrial advantages of Shanxi Dadi and the extensive experience in capital management and investment and financing of the Company’s management team, realize the consolidation of regional, financial and market resources through both parties’ cooperation and actively explore cooperation methods including but not limited to joint establishment of an investment fund in the ecological and environmental protection field, investment in quality environmental projects overseas and acquisition of cutting-edge and innovative enterprises in the ecological restoration field overseas to expand the business scope of the Company in the financial service segment and focus on environmental investment, which is beneficial to the enhancement of the enterprise value of the Company, the promotion of business development of the Company and the enhancement of the Company’s business capability in the financial service segment.
Looking ahead, the Group will continue to leverage on its experience, skillset and know-how to build new growth drivers and initiate new value-adding services, including but not limited to the publication and distribution of books targeted at students for libraries in the PRC. The Group will proactively seek business opportunities that will contribute and sustain the Group’s future development on generating better return to shareholders.
Source: Dadi Intl Group (08130) Annual Results Announcement