Geared Up for the Tremendous Market Opportunities of
the PRC Telecom Market


  • Turnover amounted to HK$891 million, an increase of 3.2% compared with the same period last year

  • Net profit amounted to HK$40 million

  • Three new businesses, VoIP and data communications services, call centers and Internet access and value-added services, achieved targeted turnover, proving success for the business restructuring plans

  • Continue with the business restructuring plans, CM Telecom, with a strong foothold in China, will become a major telecom, Internet and e-commerce player in the PRC


(15th June, 2000, Hong Kong) - CM Telecom International Limited ('CM Telecom' or the 'Group'; stock code: 989) today announced its annual results for the year ended 31st March, 2000. In order to capture the opportunities that will be brought by China's gradual opening of her telecom market, the Group had actively restructured its business and had achieved initial results. In the year of business restructuring, the Group attained a turnover of HK$891,169,000, representing an increase of approximately 3.2%. Net profit was HK$40,019,000.

The Board of Directors does not recommend the payment of any final dividend.

Mr Hau Tung Ying, Chairman of CM Telecom, said, 'CM Telecom has prepared itself for venturing into the China's telecom market through a planned merger with China Motion Telecom Development Co ('CMTD'), introduction of international strategic partners and strengthening of management team.'

Mr Hau continued, 'Last year was a critical year for the Group's restructuring of business. It is believed that after China's entry into the World Trade Organisation ('WTO'), its telecom market will gradually open up. Therefore, we realign our business strategy, capturing the opportunities brought by full-blown Internet development. Through restructuring our existing resources, we deployed seven focus areas for development.'

During the financial year, CM Telecom's newly restructured seven business streams showed positive prospects.


VoIP and Data Communications Services

As a result of the increase in gross talk time, turnover of the cellular service increased steadily. Turnover was HK$175,965,000, an increase of 8%. Profit before tax was HK$124,739,000, increased by 3%.

Leveraging on its existing strengths, the Group is actively developing a network that will provide VoIP and data center services. In its first year of operation, turnover from this business amounted to HK$16,129,000, with a HK$111,000 profit. This project has extremely promising prospects and the growth potential is extraordinary. We have also successfully signed up 32 business customers for our VPN leased line services. We believe that this new business will continue to increase in terms of its contribution to the Group's revenue.


Multimedia Retail Chain and Repair Services

The CM Concept telecom product and service specialty store chain is one of the Group's development objectives during the year and has recorded a significant growth. Turnover reached HK$240,622,000, a 55% increase over the previous year. Profit before tax was HK$18,325,000, representing a significant increase of 67%. Over the year, the number of CM Concept stores has increased from 24 to 40 in Hong Kong. Sales volume of mobile phones and paging services increased by 203% and 305% respectively. Profit of the telecommunication terminals repair and warranty services increases due to effective cost control and enhanced management. The Group is planning to expand these two businesses in the Southern and Eastern China.


ISP Access

Internet is one of the Group's strategic new businesses under development. Through cooperation with joint venture companies, the Group provides ISP Access services in 200 PRC cities. For the year ended 31st March, 2000, the Group has developed 89,742 ISP customers. The Group has also launched the first China roaming Internet access services for Hong Kong based customers.


Internet and E-Commerce

ChinaMotion.com was officially launched on 29th March, 2000. It is an E-market place for mobile communication services, products and wireless information services (WAP). An initial turnover of HK$104,000 was recorded. As the business is in its development stage, it has not brought profit contribution to the Group yet. It has signed an MOU with Ericsson (China) to explore channels for e-wholesale and retailing. It is expected to bring in new growth momentum to the Group.


Unified Messaging Services

In order to meet to market needs, the Group constantly adjusted its paging services and contents during the year. Through a unified messaging platform, customers can use various approaches to access information or messages. We have continued our efforts in this service to encourage our local and PRC roaming paging users to shift to high value-added information messaging services and thus increasing our market share. The 'financial pagers', introduced earlier this year, has brought in encouraging income. Turnover was approximately HK$262,944,000, a 24% increase over that of the previous year.


Networking Services

After successful bidding the Hong Kong International Airport contract, this operation has successfully acquired a number of service contracts in Hong Kong, Korea and a number of PRC cities e.g. Shanghai, Hainan and Yunnan. During the year, the turnover was HK$28,140,000, successfully a turnaround to profit from last year's loss.

With the total increase of mobile connection usage in China and the expansion of the leasing market, network leasing service was also one of the steadily growing businesses of the Group. Turnover amounted to approximately HK$31,702,000.


Telecare Services

Turnover of the Group's call-center business in Hong Kong was satisfactory and recorded a turnover of HK$1,509,000. In China, the industry is still in its early stage of development and has enormous potentials. The Group is in the process of establishing four new call-centers in Guangzhou, Shanghai, Beijing and Shenzhen.

Mr Hau concluded, 'Year 2000 is an important year for the new global economic development. With the vast emergence of new economy, revenue generating telecom business has become the focus of international financial markets. CM Telecom is well geared to capture this market. The Group will fully utilise its competitive edges. As a continuous improving and market-oriented company, the Group will on the one hand keep up its market position in Hong Kong; and on the other hand, lay foundations for the Company's strategic development in telecom infrastructure, information and distribution channels in the PRC market. CM Telecom has a strong foothold in China. The Group strives to become a leading wireless communications, Internet and e-commerce service provider in the China market.'


- end -




For further information, please contact:

Issued byCM Telecom International Ltd.
Corporate Communications Unit - Ms Monica Chan
Tel:2209 2888
Fax:2209 2886/ 2827 9883
Email:corpinfo@china-motion.com