- Digital asset revenue at RMB41.6 million from nil in H1 2018, up 386.2% from H2 2018
- Group net loss decreased by 10.1% from H2 2018
Hong Kong – 27 August 2019 – BC Group (BC Technology Group Limited, stock code: 863 HK), Asia’s leading publicly traded technology and digital asset company, announced its financial results for the six months ended 30 June 2019 (the “Period”), during which it saw Group revenues increase 29.1% or RMB19.2 million compared to the same period the previous year.
The Group experienced rapid growth from its newly launched digital asset platform business, which reached 49.0% of total revenue, the highest contribution of any Group business. Digital asset revenues were RMB41.6 million for the Period, compared to nil in the same period the previous year, and up 386.2% or RMB33.1 million when compared to H2 2018.
The digital asset platform business earns fees through its trading platform, and recurring Software-as-a-Service (SaaS) revenues. It was formed in August 2018.
BC Group’s net loss also decreased by RMB14.9 million or 10.1% for the Period compared to H2 2018.
Commenting on the results, BC Group CEO Hugh Madden said: “We’re excited and encouraged by the phenomenal growth we’ve experienced in our digital asset platform business in only six months. Our success in this sector is proof of what market trends have been showing for some time – with regulatory guidance, financial services players and institutions and professional investors are moving to the space in more numbers and faster than ever before.”
“We’re confident the digital asset platform business will continue to be a significant growth-driver for BC Group in the long term,” said BC Group CFO Steve Zhang. “This strategy has already been well-received by investors, as evidenced by our share placement valued at HK$114 million in May 2019.”
Revenue from BC Group’s advertising and business park management services businesses for the Period was RMB43.4 million, a decline of 34.1% compared to the same period the previous year. The advertising business was impacted by a slowdown in the automotive industry as a result of slowing macroeconomic growth in China and the unresolved Sino-US trade conflict, which caused significant reduction in client advertising and marketing budgets and spending. The decline in business park management services revenue was mainly due to a lower occupancy rate in the first quarter of 2019.
“While we continue our efforts to grow the advertising and business park area management services units, performance has buoyed by increasing institutional interest and adoption in the digital ecosystem,” Madden added. “We opened in Singapore in July to help meet this demand, and plan to continue to develop our global presence.”