BNN Resources Regulatory News (BNN)

28 July 2016

DJI Holdings plc

("DJI" or the "Company")

Annual General Meeting statement

DJI Holdings plc (AIM: DJI, "the Group", "DJI"), a provider of technology for the promotion and transaction of online bookings, mobile payments and lottery sales, today provides the following statement which will be made by Darren Mercer, Chief Executive, at the Group's Annual General Meeting, to be held today at Mirabaud Securities, 33 Grosvenor Place, London SW1X 7HY at 2pm.

"DJI's development into a substantial internet technology portal continues apace. Operating exclusively in China, the world's largest market for mobile, the group is well placed to capitalise on significant opportunities offered by its long-standing relationships with blue chip partners.

"Our game-changing partnership to provide our robust technology platform to Xinhuatong, the exclusive provider of services, including mobile payments and information, to the Xinhua News Mobile App owned by China's national news agency, has started strongly. These services have begun their launch and rollout through the app and are expected to commence revenue generation during August. The Directors believe that this revenue will accelerate as both the number of services and the provinces in which they are launched come on stream. With nine of 12 targeted provinces already signed and scheduled for launch before the end of 2016, the partnership is expected to make a substantial contribution to revenues in the fourth quarter of this calendar year. 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. 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.

"The Group's very strong balance sheet, boosted by recent share placings with leading global institutions, will enable the funding of these opportunities and further investment in growing DJI's technology platform, which has demonstrated its capacity to handle very large volumes of transactions securely and rapidly, while developing a very sizeable database. 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.

"Our plans for a secondary listing on NASDAQ are progressing well. In preparation for the listing, the Directors expect to appoint and announce a US financial adviser in the coming weeks. We continue to believe that a NASDAQ listing will attract further major institutional investors who recognise DJI's transition towards becoming a substantial internet portal, which we hope will in turn be reflected in the Company's market valuation.

"The Board looks forward to the remainder of 2016 and beyond with considerable confidence and will provide further updates in due course."

ENDS

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Notes to editors

DJI's strategy is to use its secure, robust and versatile marketing technology platform to capitalise on the migration online of China's consumer and public services sectors.

The Group has a partnership with Xinhuatong Network Co., Ltd. and provincial offices of Xinhua News Agency, the state news organisation in China, to supply game technology platform and facilitate mobile payments through the Xinhua News Mobile App for public utility bills including electricity, gas, water, mobile phone top-ups and traffic fines in an initial nine of 12 targeted provinces in China.

DJI also has a joint venture with the Heilongjiang Provincial Sports Bureau (HSB) to provide support services to all of HSB's commercial activities. These include football and winter sports in the province, notably China's largest ski resort, Yabuli.

The HSB joint venture contains, for the first time in a Chinese province, a Business-to-Business (B2B) online booking system for sports, based on DJI's technology. The JV agreed terms with three of China's largest online portals to sell and promote this B2B system from 1 November 2015. 

DJI will continue to work with Chinese government agencies at national and provincial level, e-commerce channel partners and payment providers to develop opportunities to support a wide range of services and transactions online, including mobile and digital media.