I found this recent news very interesting and hope it will foreshadow good news for BIO-key in the near future.
Mr. Yao Jianhui is a member of the BIO-key Board of Directors as well as the CEO and Chairman of China Goldjoy. He recently bought more shares in Goldjoy for $1.5 million.
Mr. Wong Kwok Fong is also a member of BIO-key Board of Directors as well as the CTO of China Goldjoy. Mr. Fong has bought about 4 million shares of BIO-key is the last 3 months.
/////
China Goldjoy Announces 2016 Interim Results; Revenue Surges 30.9% to HK$328.5 Million
Focuses on the Development of Comprehensive Financial Services, Asset Management and Emerging Industry;
Executes Diversified Development Strategies
HONG KONG, Aug 27, 2016 - (ACN Newswire) - China Goldjoy Group Limited ("China Goldjoy" or the "Group"; stock code: 1282) today announced its interim results for the six months ended 30 June 2016 ("period under review"). The Group has made further improvements to its business performance, resulting in profit growth.
During the period under review, the Group pushed ahead with its development in high value-added and diversified businesses. It has also eliminated the low-margin and low value-added electronic manufacturing business in an effort to allocate resources to business segments with greater growth potential. Furthermore, with the development focus shifted to comprehensive financial services, asset management and emerging industry, the Group's performance has shown significant improvement. During the period under review, the Group recorded a net profit attributable to equity holders of HK$14.9 million (corresponding period in 2015: loss of HK$34.9 million). Basic earnings per share were 0.07 HK cents (corresponding period in 2015: basic loss per share of 1.19 HK cents). Revenue surged 30.9% to about HK$328.5 million (corresponding period in 2015: HK$250.9 million). Automation products remained the largest source of revenue for the Group and accounted for approximately 80.4% of total revenue (corresponding period in 2015: 61.8%). As part of its transformation strategy, the percentage of revenue from the manufacturing business further decreased to 6.6% (corresponding period in 2015: 38.2%), whereas the securities investment business commenced last year accounted for 12.6% (corresponding period in 2015: N/A).
Mr. Yao Jianhui, Chairman and Chief Executive Officer of China Goldjoy, said, "We have placed emphasis on developing the comprehensive financial services, asset management and emerging industry during the period. The securities investment business added last year has generated fruitful returns for the Group, which shows that our transformation strategy is heading in the right direction. To capture the immense potential of the financial service industry in the PRC, we have acquired a number of financial institutions during the period under review to tap the financial market segment. The acquisition and development of various financial institutions has enabled us to provide more comprehensive financial services for our clients and generate greater synergies by way of cross-selling and building a comprehensive client platform and integrating capabilities. As for the emerging industry, in view of the strong demand for new energy in the PRC, we have increased our effort in developing the new energy industry and LED manufacturing business. We aim to enhance the Group's competitiveness in research and development, equipment manufacturing, application and promotion and industry services in the new energy industry by means of cooperation or merger and acquisition which integrate with our existing business. Such investments are expected to lead to significant benefits to the long-term development of the Group."
Business Review
The automation business has continued to be a major source of revenue for the Group during the period under review. Gallant Tech Limited ("Gallant Tech"), a wholly-owned subsidiary of the Group, recorded a significant increase in revenue to HK$264.1 million (corresponding period in 2015: HK$155.0 million), accounting for 80.4% (corresponding period in 2015: 61.8%) of the Group's total revenue. The significant increase in revenue was mainly attributable to the securing of various wholesale orders and the increase in sales of well-profited automatic optical inspection ("AOI") equipment during the period under review.
The Group continued to eliminate its low-margin and low value-added electronic manufacturing business, and included securities investment in its main business portfolio. During the period under review, the Group recorded an increase in profit mainly due to the income from listed securities investment of approximately HK$41.4 million (corresponding period in 2015: N/A). The Group has subscribed for 6.30% and 1.19% of the total H shares and total issued shares of China Zheshang Bank, to further expand and enrich its investment portfolio. The transaction was in line with its investment strategy of capturing opportunities arising from financial service enterprises in the PRC - considered a medium-term investment by the Group. The Group will continue to monitor the securities industry and related potential investment opportunities, and will optimally use resources to invest in and consolidate its business.
To develop its financial business effectively, the Group entered into Sale and Purchase Agreement with China Yinsheng Capital Group Limited ("China Yinsheng") during the period under review to acquire 70% interests in China Yinsheng Asset Management Limited, China Yinsheng Securities Limited, China Yinsheng Wealth Management Limited, KB Bullion Limited, KB Credit Limited and KB Investment Limited ("Target Group"). Such acquisitions were completed on 3rd May, 4th July and 1st August 2016. It marks the Group's entry into the Hong Kong financial services market. This business is expected to generate notable revenue for the Group in the second half of the year. In addition, the Group acquired 33.21% equity interests in Zhanjiang Jifutong Financial Services Joint Stock Company Limited* (for identification only)), a financial company established in the PRC. This acquisition will facilitate its objective of providing internet financial services, as well as enhancing the value to of its financial service business.
Business Outlook
The Group acquired several financial services and asset management companies during the period under review. Going forward, it will proactively identify potential business opportunities in the financial services market and make effective use of existing resources to execute its diversification strategies with the aim of broadening its revenue sources and increasing shareholders' returns. Moreover, the Group made an additional investment in the Target Group, consequently increasing its equity interest to 80%. In respect of new energy industry and LED manufacturing business, the Group will facilitate its development through associated acquisitions. Such investments are expected to bring significant benefits to the long-term development of the Group. As for automated production equipment, the Group will further improve the business and better address customers' needs, and explore new business opportunities according to market and customers' demand. The Group is optimistic about the long-term development of the automation business.
Mr. Yao concluded, "The Group will continue to actively focus on investment opportunities in the financial services, assurance and reassurance industry, and new energy and new scientific technology industry. Keeping abreast of market trends, the Group will also develop a business blueprint, which is wider than the Great China market, in Hong Kong, Macau and the PRC, aligned with the building of financial services platform progressively in other key economies across the world so as to attract and utilize global capitals and financial resources to boost the ability of the Group in providing comprehensive financial services to its clients across the PRC."
About China Goldjoy Group Limited (HKEx stock code: 1282)
China Goldjoy Group Limited is principally engaged in the development of a range of high technology products; trading and providing services with respect to automation-related equipment; securities investment; and strategic investment and development in technologies mainly related to biometric security, high-speed wireless data transmission and communications. The Group has completed the acquisitions of six financial institutions including KB Credit, China Yinsheng Asset Management, China Yinsheng Securities, China Yinsheng Wealth Management, KB Investment and KB Bullion in August 2016 and has included financial services as one of its principal businesses. After the acquisition of the integrated financial services and asset management business, the Group is identifying appropriate investment opportunities in new energy and emerging industries. It aims to expand into new industries and new markets and also realize its diversified development strategy through the implementation of a series of strategic transformation measures.
/////
Best of Luck
AI
