New data center revenue into new net profit 45%

NEWMIN (1686), Just Moved from GEM to Main Board Announced last night that as of the end of December last year, interim results benefited from the renewal of revenue from the opening of new data center MEGA Plus and other data centers, Group revenue increased to 640 million yuan, up 15.1% over the previous year, net profit soared 45.4%, net profit of 9.7 cents per share, the Group will not distribute medium-term interest.

Gross profit rose 12% to 380 million

In the earnings report, netbook chairman Guo Binglian said in the earnings report that he benefited from the Group’s MEGA Plus, a new data center in Tseung Kwan O, as well as renewal of customers in other data centers, resulting in an increase in operating revenue of the data center. Net profit during the period increased by 12% year-on-year to 380 million yuan, gross margin was 59%, similar to the previous year. The Group said operating expenses increased from 33.4 million to 39.4 million during the period as a result of the Group’s increased sales promotion activities and legal and professional services expenses arising from the transfer of the GEM to the Main Board.

The company said it will continue to invest in existing and new infrastructures in order to boost its business. It is expected that the newly acquired Tsuen Wan Town Lot No. 428 will facilitate the Group’s business development and enhance the Group’s revenue base in the long run. NetEase closed at 5.85 yuan yesterday, up 3.9% the day, but on the 22nd of last month transferred to the main board until yesterday, the stock fell 14.5% during the period.