HC International Q1 losses increase

HC International, the Hong Kong-listed parent of B2B mini-conglomerate Huicong (ex SinoBnet), has just reported reduced revenues and significantly increased losses for the first quarter. Revenues fell from Rmb78.9 mn (US$9.8 mn) to Rmb57.5 mn (US$7.1 mn) while losses increased from Rmb-4 million to Rmb-20.3 million.

The company, listed on Hong Kong's second board, GEM, notes that Rmb14.8 in revenues was 'lost' from discontinued operations. TV-related operations were, the company says, hit by the timing of Chinese New Year (although, as this is always a Q1 holiday, it's hard to see why) and even revenues from its flagship online operations fell 6%.

The company reports the following actions in an effort to turn things around:

To further expand the Group’s geographical market share, resources had been allocated by the Group to develop its sales agency network in the PRC during the period under review. Agents were appointed by the Group to promote the sales of its on-line marketplace, “Mai-Mai-Tong – 買賣通”, in cities where the Group does not have any presence. As at 31st March 2006, over 200 agents had been appointed by the Group.

To further enhance the features of “Mai-Mai-Tong – 買賣通”, 3 new versions of the on-line marketplace, namely “Silver Mai-Mai-Tong – 銀牌買賣通”, “Golden Mai-Mai-Tong – 金牌買賣通” and “Platinum Mai-Mai-Tong – 鉑金買賣通”, were launched in March 2006 to cater for different needs of the members of the business-to-business community.

Going forward, the Group will continue to focus on the business-to-business sector, which offers higher growth potential and margins, by devoting more resources to upgrade its technological capability and developing new complimentary on-line products.