2016 Annual Results are Announced HengTen Networks Turned into Profit-making


       On March 21, HengTen Networks (HK.0136) announced 2016 annual results in Hong Kong. HengTen Networks Group Limited (hereinafter referred to as "HengTen Networks") turned into profit-making. Compared to the previous fiscal year, it realized a net profit growth of 102.35%; revenue of HK$ 133 million, an increase of 31.13%; a gross profit of HK$ 56.687 million, an increase of 109.1%; and an increase of gross profit rate by 15.95% to 42.78%.

               On the scene of 2016 Annual Results Announcement, Chairlady and Executive Director Zhang Xiaohua (center), Chief Financial Officer Pan Darong (left), and Company Secretary Fong kar chun (right).

       At the meeting of announcing 2016 annual results, HengTen Networks reviewed 2016 operating business and announced the future development plan, which attracted the attention of the industry.

       According to the announcement, each business of HengTen Networks has been developing steadily. Its product functions have been built and the number of its users continues to grow. Among others, the number of the functions of HengTen Mimi App was increased to 53. The development of its main functions has been completed; it had a total of nearly 260,000 registered users, with pilot community property owner authentication ratio of 93.8% and APP function usage coverage ratio of 98%.

      At the same time, leveraging online and off-line interaction, HengTen Networks provided property owners with intelligent scenario solutions. While providing more intelligent and more considerate property services, through combining Internet technologies with smart control, HengTen Networks has successfully created the prototype of the intelligent community in the pilot community.

       In terms of Internet home, HengTen Networks has also set up a “home alliance” with leading home appliance branded suppliers and well-known e-commerce platforms in the PRC so as to develop “one-stop” Internet home services. Users can place orders through the online platform with just one click. As at the end of last year, Internet home business covered more than 100 communities in most provinces and cities in the PRC, with revenue of HK$31 million in 2016.

     In the field of community finance, HengTen Networks launched “Ye Zhu Bao”, one of its “Enjoy Life” wealth management product series. The product recorded total sales of HK$90 million in face value for just two tranches of online offering.

       Scene of 2016 Annual Results Announcement

      In 2017, HengTen Networks will continue to improve the contents of Internet community services, promote the construction of intelligent community pilots, further carry out property, e-commerce, Internet home and community finance business, explore the promotion of second-hand property business, and improve the profitability of the platform.

        The report on Chinese government work for 2017 pointed out that the year 2016 was a year of further promotion of the “Internet +” Action and China’s big data strategy. According to data, in 2016 the overall size of the PRC community O2O reached RMB255.97 billion, an increase of 52.9% over last year. This means that the future of China’s community O2O has the potential to be a trillion-level blue ocean market.

       Some industry analysts point out that HengTen Networks is established in community’s scenes, it integrates many kinds of resources in an innovative manner, its profit model is targeted, it develops an open, complete, rich community O2O ecosystem, and it is expected to maintain a sustained rapid growth in the future.