DJI cuts losses to £4.2m

CHESHIRE-based DJI Holdings, a Chinese technology, content and services company has made losses of £4.2m in the six months to June 30.

This is despite three placings this which raised more than £50m, although two were post period.

But the losses are down compared to the first half of 2015 when it suffered a £4.8m reverse.

Highlights for the AIM-listed Knutsford-headquartered company include the signing in April of the partnership between NewNet and Xinhuatong in which NewNet will provide technology to facilitate mobile payments on the Xinhua News App across 12 provinces (10 of which have already been signed) in China.

The company reported a robust cash and cash equivalent position of £7.1m (December 31 2015 £4.m).

DJI expects a strong fourth quarter as the payment fulfilment platform rolls out.

Darren Mercer, chief executive of DJI, said: “In the first half of 2016, we demonstrated substantial progress towards our goal of being a leading Chinese technology, content and services company and, with the partnership between NewNet and Xinhuatong propelling us into the high growth mobile payments market, established a strong position at the heart ofone of China’s largest mobile apps.

“In the second half, we have continued that progress and recently updated that market on our successful pivot away from lottery services, with re-branding and re-positioning of our business as a dynamic technology platform provider that can facilitate mobile payments, deliver mobile content and provide data management to consumers throughout China, along with NewNet’s strategic investment in Xinhuatong, further deepening our ties with a key player in this growing market.

“Three sizeable placings were completed this year, two of which were post period end. In raising just over £50m this year, we have successfully strengthened the balance sheet, which has allowed us not only to rollout the opportunity with our partners NewNet and Xinhuatong in the final quarter of this year and beyond, but also given us the necessary funding to move forward with other significant, complementary, opportunities for the group.”

 

Close