Name change for Chinese lotto firm DJI
DJI Holdings, the AIM-listed Knutsford company which promotes and distributes Chinese sports and welfare lottery products, plans to change its name to BNN Technology plc.
It says the new name reflects the group’s Chinese identity and its evolution into a technology provider in large high growth markets in China.
Meanwhile NewNet, which represents DJI’s technology platform and marketing resources in China, is making a cash and asset investment to acquire a 10% shareholding in its important trading partner Xinhuatong.
Xinhuatong is the exclusive provider of mobile payments, information and other key services to the Xinhua News Mobile App owned by China’s national news agency.
Investment in Xinhuatong by NewNet offers DJI potential involvement in both the sizeable and lucrative payment processing industry in China, through its exclusive technology provider relationship, and other high growth sectors it operates in.
DJI said it expects to benefit from enhanced revenues and profits as a result of NewNet’s stronger partnership with Xinhuatong.
Darren Mercer, chief executive of DJI, said: “Now is the right time to begin building a new brand, with the BNN Technology name, as we broaden from lottery specialist to payment fulfilment, content-delivery, data management and value-added services on mobile internet. We believe completing the pivot to a technology company will add substantial shareholder value as we enter high growth, multi-billion dollar markets in China.
“We are also tremendously excited about the opportunity to deepen our relationship with Xinhuatong through NewNet. NewNet’s investment further secures a long term partnership in which we are one of the leading technology providers to the company, allowing us to benefit from its strong commercial relationships in major industries such as insurance and other key financial services markets.
“Xinhuatong has the exclusive rights to provide payment processing facilities within the Xinhua News Mobile App and is in the process of applying for a national payment processing licence. Upon a successful application, the benefits to our company will be significant, not only in allowing us to participate in one of China’s largest industries, but also to substantially increase the net margin across our platform.”
In July, 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.
The company is planning a secondary listing on NASDAQ following the name change.
