Data is the new oil for for DJI
DJI Holdings, the AIM-listed Cheshire company which promotes and distributes Chinese sports and welfare lottery products, has said it expects its Chinese app to start generating income next month.
The Knutsford-based company expects its partnership to create an app for mobile payments and information with Xinhuatong, the main operator of the Xinhua News App owned by China’s national news agency, to make a “substantial contribution” to turnover on the final quarter of the year.
The company added that this revenue will accelerate as both the number of services and the provinces in which they are launched come on stream – nine of 12 targeted provinces are already signed and scheduled for launch before the end of 2016.
The Xinhua News mobile app is already one of the largest apps in China and continues to grow towards its target of 300m users by the end of 2017.
In a stock market announcement ahead of the company’s AGM later today, Darren Mercer, chief executive, said: “The scale and potential of this opportunity is extremely exciting and the board believes that the partnership’s expansion into complementary areas with significant revenue potential is inevitable.”
Earlier this month Knutsford-based DJI announced a share placing raising £11.5m – its third in three months. It followed a similar placing to raise £29m on the same day it reported a widening of losses to £10.7m in July after realising £10.5m in April.
Mercer emphasised that the company had a strong balance sheet, as a result of these share placings, which he said would allow for further investment in growing DJI’s technology platform.
He added: “The often quoted phrase ‘data is the new oil’ has particular resonance in the large and technology-hungry Chinese market, reinforcing the opportunity for DJI’s versatile capabilities. As potential partners in China continue to appreciate the value of big data and the ability to analyse it, the group’s multifaceted platform, supported by a 300-strong team on the ground, will, the directors believe, be a key driver of shareholder value.”
The company is planning a secondary listing on NASDAQ and expects to appoint a US financial adviser in the coming weeks.
