8 6 月, 2021

IdreamSky Technology (1119.HK) Lifetime Value (LTV) seriously undervalued, upside 65%

HONG KONG, Jun 8, 2021 - (ACN Newswire via SEAPRWire.com) - Since last year, the domestic and global game market has been prospering rapidly and this momentum has continued into the first quarter. From the perspective of global game transaction scale, there were 280 open transactions within the game industry in the first quarter with a total value of US $39 billion, while the total transaction volume in 2020 was only US $33 billion, according to the data of investgame.Because the blooming of the game trading market has gradually affected the stock market, secondary market research institutions have begun to explore the undervalued game stocks.Recently, Anli released its first coverage research report, giving IdreamSky Technology (1119. HK) a "buy" rating. The target price is HK $7 per share, up to 63% from HK $4.3 per share on June 3.According to the report, as IdreamSky Technology has moved up along the value chain of the game industry and has actively transformed into a game developer, it builds a long-life cycle ecology to form a closed-loop cash flow. Therefore, its user group is more valuable than those in the same industry. However, relatively speaking, the valuation of IdreamSky Technology is the lowest among its peers. Since IdreamSky Technology is seriously underestimated, it is optimistic about the company's future valuation.01. The valuation is seriously undervalued with a potential increase of 65%In the report, based on the strategy and progress of IdreamSky Technology, Anli has made forward-looking forecasts on the company's financial and valuation.In terms of finance, previous IdreamSky Technology's monthly active users (MAU) and average per user income (ARPPU) have maintained a favorable growth trend. According to Anli's forecast, in 2021-2022, through strong game channel promotion, IdreamSky will achieve 3% / 5% Mau growth; thanks to the steady progress of medium and heavy games and the high average duration of leisure games, ARPPU's compound annual growth rate in the same period was 6%.Based on the above forecast, in 2021-2022, the adjusted net profit of IdreamSky Technology will reach 266 million yuan and 368 million yuan. More importantly, after 2022, as Idreamsky Technology demonstrates and consolidates the synergy between online and offline ecological effects, high customer lifetime value (LTV) and high user stickiness will push the company into a real harvest period.In terms of valuation, Anli believes that the customer base preserve a great value with the characteristics of high viscosity and high unit price. Because the P/E ratio valuation method can only reflect the short-term profitability of game developers, but incapable of reflecting the long-term user value, Amway adopts a more reasonable multiple of customer lifetime value (LTV) as the pricing index in the report.By assuming ARPU x Mau = LTV, Anli compares the major companies in the same industry, and finds out that the LTV multiple and MAU market value of Idreamsky Technology are obviously undervalued. Considering the tremendous user base of 138 million players have longer game life cycle and higher average game duration, Anli thinks IdreamSky is seriously underestimated. Based on the LTV multiple of 1.5 times, the target price of IdreamSky Technology is set at HK $7, with a potential increase of 65%. 02. Welcome the stock age and create a long game lifecycle ecosystemThe deep logic that supports the above prediction is the forward-looking strategic layout and good progress of IdreamSky Technology.Due to the vanishing demographic dividend, the Internet began to accelerate from the era of increment to the era of inventory, and the major giants shifted the competition from seizing users to users' time. The biggest change in the game industry is the increasing cost of buying customers.In short, companies that can improve the player lifetime value (LTV) will acquire advantage in the inventory age.Facing the general trend, IdreamSky is committed to creating a "24-hour entertainment life circle online and offline". On the basis of the original online format, IdreamSky Technology creates offline game experience scenes and uses the integrated SaaS system tools of Zhongtai incubation in order to open up the online and offline platforms as well as an ecosystem with games as the core.In this ecosystem, the 138 million users of IdreamSky can enjoy one-stop services including games, game retail, art toy and player social interaction. Such service can achieve "high frequency, long time, and high stickiness" interaction with users. Finally, IdreamSky Technology can obtain lower traffic cost and higher user value.Meanwhile, according to the needs of users, IdreamSky Technology has built a wonderful "online + offline" game world, which deeply binds players in IdreamSky Technology ecosystem, so IdreamSky Technology has successfully stood out in the inventory era.Specifically, in terms of games, in addition to business rearranging and strategic focus, IdreamSky Technology focuses on elimination, competitive and medium heavy games. These types of games have the features of high Mau, high ARPU and long LTV, which fit in the ecosystem and is conducive to amplifying user value.In the aspect of offline, as the offline experiential entertainment store of Tencent and Nintendo, IdreamSky integrates game retail, social gathering and trendy play to meet the diversified needs of generation Z. According to the data, the disposable income of generation Z is 3501 yuan, which is higher than the national per capita disposable income of 2561 yuan. At the same time, generation Z is more willing to pay. The payment rate of mobile games reaches 35.7%, which is the highest among all online consumption.In 2021, IdreamSky Technology plans to open 30 direct offline stores of "play together" brand in first and second tier cities and plans to open 150 stores in the next three years, covering more cities and players. By setting up experience of console games in offline stores, IdreamSky can attract audience users and establish online user community to enhance user loyalty. From the multi-dimensional offline to stimulate users to the online game, IdreamSky has formed the whole chain of user services.It can be seen that IdreamSky Technology continuously improves the construction of the ecosystem around a core long customer lifetime value, and creates a game infrastructure for the stock era. In long run, the ecosystem value of IdreamSky Technology will accelerate. Expanding the imagination space for investors, Anli made a prediction that the company will enter the harvest period after 2022.Media contact:Heidi He, PeanutmediaE: hemeiyu@czgmcn.comT: +181 3887 0061W: www.Peanutmedia.com Copyright 2021 ACN Newswire. All rights reserved. (via SEAPRWire)

1 4 月, 2021

Can Newborn Town become the next tenfold gainer?

HONG KONG, Mar 30, 2021 - (ACN Newswire) - What is the trend of the Internet industry in 2021? Chances are it's an open social platform. Elon Musk, the founder of Tesla, made Clubhouse popular around the world. Is Clubhouse the ultimate answer to an open social platform? It's hard to say at the moment, but the era of open socialization has arrived. Youth tend to move with anything new. So although Facebook has an absolute advantage in the global social field, Snapchat and Twitter still have room for development. With the continuous development of the Internet, a new generation of young users has a higher acceptance of video and audio, and a new generation of open social apps has also emerged.For Chinese Internet companies seeking growth opportunities in overseas markets, open social networking provides huge development opportunities, among which two of the most successful are China-based Newborn Town Inc (HKG: 9911), and AE-based Yalla Group Ltd (NYSE: YALA). First, let's take a look at Newborn Town, which has just released its 2020 financial report.The great potential of strangers socializingSince its listing in 2019, the changes in Newborn Town have been earth-shaking. Founded in 2009, its founder Liu Chunhe always cherished the dream of changing the world with Internet products. In 2013, Newborn Town began to expand overseas, since then overseas markets have become a company core strategy.In the initial stage of going overseas, the company quickly accumulated internet tools, with hundreds of millions of users in the world. However, as the inherent shortcomings of tools, such as low stickiness and user duration, have been recognized by the capital market, the valuation of mobile Internet tools is at a low ebb, which is also a reason the share price of Newborn Town is still not high after its listing.However, in 2020, Newborn Town engineered a magnificent makeover. The company's core development strategy was successfully upgraded and the company seized the opportunity for open social networking with audio and video social products including Yiyo, MICO and YoHo. The average monthly active users of social platforms were about 11.36 million, and they are still growing rapidly.In early 2021, when the market began to reassess the company's stock, its price skyrocketed from HK$1.70 to a peak of HK$11.54. The price fell back, but is around HK$4.30, still up more than 200% from last year's low. If the stock price of Newborn Town has risen sharply, will there be a bubble? It depends on strong performance.On March 24, the company released its earnings for 2020. Revenue came in at CNY1.18 billion, an anual increase of 203.2%, net profit of CNY110 million represented an increase of 67.1%. Newborn Town's current stock price is HK$4.3, with share capital of 999 million shares, and a market valuation of about HK$4.3 billion, or CNY3.6 billion. Compared to the growth in 2020 revenue and net profit, the share price is not expensive at all.How was Newborn Town able to upgrade in just a year? In fact, Newborn Town began to lay out open social networking a few years ago. In 2016, the company incubated MICO, a social product aimed at overseas markets. After several years of rapid development, MICO has achieved rapid revenue growth and achieved profitability.MICO ranked second as China's overseas social networking platform. According to official data from MICO, the platform currently covers more than 150 countries and regions around the world, has entered the top 10 App Store bestsellers in 92 countries and regions, and has accumulated hundreds of millions of successful pairings.On July 2, Sensor Tower, the mobile app data company, announced China's Top 20 Short Video / Live Streaming Apps for the First Half 2020. MICO was once again on the list, ranking Top 20 in terms of download volume and revenue. Sensor Tower pointed out that with the global pandemic, people were seeking entertainment and socially networking online, with related apps ushering in an explosive round of growth in 2020.In fact, MICO, which includes the live broadcast module, has been on the list many times before. In Q1 and Q2 2019, MICO continued in Sensor Tower's Top 20 for overseas revenue of China's Short Video / Live Streaming Apps, ranking firmly in the Top 10. Last year, MICO entered the list again ranking No. 6.At the same time, YoHo, Newborn Town's social voice platform, was launched in 2018. It is entrenched in the Middle East and North Africa with the six core Gulf countries. It has also entered the top 10 best-selling Google Play social applications in the Gulf countries, becoming the second voice social product in the Middle East.Yiyo, the company's video social product, aims at differentiation and creates social scenes in the form of video matching and one-to-one video chat, which is loved by young users. This product is among the top 20 of Google Play global social app download list in 2020, with a total of more than 50 million downloads.By 2020, the average monthly active users of social platforms were about 11.36 million, and they are still growing rapidly. By the end of 2020, Newborn Town had a 'super-traffic ecology' with 1.2 billion users, and it was monetizing its 'traffic + X' business model on a global scale. In terms of core strategy, the company was focusing on stranger social business, supplemented by multiple businesses such as games.After the stocks rise, it was still undervalued, and it may be the next tenfold gainer.Although Newborn Town's stock price has risen sharply recently, compared with similar companies, the company's stock price is still seriously undervalued.For example, Yalla, which has a business model similar to that of Newborn Town, was successfully listed on the New York Stock Exchange in October 2020 with a share price of US$20.3 and a market value of about US$3 billion by virtue of its product Yalla's success in the Middle East.According to the latest financial report of Yalla Group Inc, in the fourth quarter of 2020, Yalla, the company's core social networking product, had 6.4 million monthly live users, which is only about half of the 13.18 million monthly live users of social networking platform of Newborn Town Technology in the fourth quarter of last year.At the same time, the total income of Yalla in 2020 was RMB880 million, a year-on-year increase of 113%, and its net profit was RMB20.9 million, a year-on-year increase of 7%. These two key data are far lower than that of Newborn Town, but the current market value of Newborn Town is only HK$4.3 billion, or about US$550 million.Through a comparison of monthly user data and financial data of the two companies, it is obvious that Newborn Town has greater potential and more stable financial data. But as the market has not fully recognized the potential of Newborn Town's social networking platforms, the company's share price is still seriously undervalued. Moreover, Newborn Town's platforms have outstanding performance in many countries, and the long-term potential is undoubtedly greater than that of Yalla, which is only deployed in the Middle East and North Africa.From the characteristics of the US and Hong Kong stock markets, the HK market is less friendly to small-cap companies. In addition, the HK market doesn't fully tap the potential of Internet technology stocks, as leading blue-chip stocks are the market favorites. In the U.S. stock market, there are social media leaders like Facebook, and alternative social media companies such as Snapchat, Twitter, Match Group, and Pinterest. The U.S. stock market understands the business models and the growth potential of such companies.Therefore, in the current Hong Kong stock market, the value of Newborn Town has been temporarily hidden. But with Kuaishou's landing in the Hong Kong stock market, coupled with the upcoming Byte Dancing, the value on Internet social networking in Hong Kong stocks is expected to be immediately discovered.Of course, there is a huge gap between the two companies in terms of market value. On the other hand, it is also because Yalla Group has been on the market for less than half a year and there are fewer circulating shares.Frankly speaking, with the current user data and financial data of Newborn Town, the valuation on the primary market should definitely exceed US$1 billion. According to the normal secondary market valuation, even with the most conservative estimate of 50% off, the market value of Newborn Town should be about US$1.9 billion, and the corresponding stock price about HK$15, which is 10 times last year's low of 1.5 Hong Kong dollars!Going to sea is at the right time, with certainty and growthThe success of Newborn Town going overseas is not only a miniature of Chinese Internet companies going to sea, but also a typical successful case.According to Senser Tower data, Chinese Internet companies will return with a full load from overseas markets in 2020. For the first time, the total revenue from China's overseas mobile travel market will exceed US$10 billion, with the highest growth rate is in the world. Revenue from the top 30 mobile travel products will reach US$9.2 billion, up 47% this year, while revenue from Tiktok, by Byte Dance, of US$1.26 billion, has increased 590%.Focus on the social track. The rapid growth of social products of Newborn Town overseas is based on the rapid development of Chinese social products overseas.The development of Chinese Internet companies is similar to that of mobile phone companies. After the bloody fight in the domestic market, with the "all-in-one martial arts" trained in the domestic market, China's Internet companies can make a big show in the overseas market through localized operations, such as Tiktok under Byte Dance. The overseas market has also given Chinese manufacturers ample room for development.From another point of view, some domestic Internet companies, such as Momo, have missed opportunities for overseas development, which have hindered their development and their market value continued to fall.For Newborn Town 2020 was undoubtedly a very successful year. The company transformed from a software tools company to a social product company, achieving a gorgeous upgrade, and the capital market has repriced the company. The company's share price has risen by 200% from the lowest point.From the perspective of the company's development, high-speed growth in 2021 can still be expected. As the company's revenues and profit continue to increase, the capital market will change the underestimation of the company. In the long run, Newborn Town Technology has a chance to become another tenfold stock.Media contact:Heidi He, PeanutmediaE: hemeiyu@czgmcn.comWebsite: Peanutmedia.com

10 2 月, 2021

MHI Invests in C-Zero, a U.S. Hard Tech Startup, to Accelerate Efforts to Produce Clean Hydrogen from Natural Gas

TOKYO, Feb 10, 2021 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI) today announced that it has invested in C-Zero, a hard tech startup located in Santa Barbara, Calif., to accelerate the first commercial-scale deployment of C-Zero's drop-in decarbonization technology, which will allow industrial natural gas consumers to avoid producing CO2 in applications like electrical generation, process heating and the production of commodity chemicals like hydrogen and ammonia. The investment has been executed through Mitsubishi Heavy Industries America, Inc.C-Zeros technology uses innovative thermocatalysis to split methane the primary molecule in natural gas into hydrogen and solid carbon in a process known as methane pyrolysis. The hydrogen can be used to help decarbonize a wide array of existing applications, including hydrogen production for fuel cell vehicles, while the carbon can be permanently sequestered. When renewable natural gas is used as the feedstock, C-Zero's technology can even be carbon negative, effectively extracting carbon dioxide from the atmosphere and permanently storing it in the form of high-density solid carbon.With the investment, MHI continues to strengthen and diversify the hydrogen value chain, advancing both strategic initiatives for its energy transition business and its commitment to making continued progress toward global carbon neutrality goals. MHI joins a consortium of investors, including Breakthrough Energy Ventures, Eni Next and AP Ventures."MHI is committed to expanding the hydrogen value chain from production to utilization by developing technologies such as the hydrogen gas turbine, and by partnering with innovative technology and solution providers," said Yoshihiro Shiraiwa, MHIA President. "We believe C-Zeros technology will lead to more solutions that help us and our customers achieve our decarbonization goals.""We are excited to enter the next stage of the company's growth with support from investors who share our desire to scale up a technology with the potential to decarbonize over a quarter of the world's energy consumption," said Zach Jones, C-Zero CEO. "By converting natural gas to clean hydrogen, a molecule with enormous potential, we hope to be the bridge between existing natural gas infrastructure and a low carbon future."The investment signals cooperation around accelerating the use of "turquoise hydrogen," which could further strengthen the hydrogen value chain. Hydrogen produced via methane pyrolysis processes like C-Zero's is increasingly being referred to as "turquoise hydrogen," as it combines the benefits of both "blue hydrogen," (SMR with CO2 sequestration) and "green hydrogen" (produced by splitting water via electrolysis) by being low cost and low emissions, respectively.As part of the investment, MHI will examine the potential of using the company's technology for the production and supply of hydrogen that could then be utilized for power generation systems and the decarbonization of industry. Copyright 2021 JCN Newswire. All rights reserved. www.jcnnewswire.com

27 1 月, 2021

Hitachi Selected as a constituent of ‘FTSE4Good Index Series’ and ‘FTSE Blossom Japan Index’, World-leading ESG Indexes

TOKYO, Jan 27, 2021 - (JCN Newswire) - In recent years, ESG investments have been gaining momentum in the capital market, as companies evaluate and decide on investments from ESG perspectives. The "FTSE4Good Index Series" and the "FTSE Blossom Japan Index" are among the most important criteria used by investors worldwide for corporate ESG activities. The "FTSE Blossom Japan Index" has been adopted as a passive ESG investment management benchmark selected by the Government Pension Investment Fund (GPIF), the world's largest public pension fund.Since its establishment, based on the corporate philosophy of "Contributing to society through the development of superior, original technology and products," Hitachi has demonstrated continued growth alongside the development of society. In the 2021 Mid-term Management Plan announced in May 2019, the company put forward goals for simultaneously increasing three types of value for society and the customers - Social value, Environmental value, and Economic value - as part of efforts to achieve a sustainable world. In this Mid-term Plan, milestones for achieving the long-term environmental goals laid out in "Hitachi Environmental Innovation 2050" are reflected in management strategies for business rollout. As a leader in environmental value in particular, Hitachi announced "Hitachi Carbon Neutrality 2030" to assist in building a decarbonized society, and is accelerating activities aimed at achieving carbon neutral in its own business site (factories and offices) by FY2030.Hitachi will strive to develop and provide new solutions that apply digital technologies to take on a variety of challenges, including ESG, for customers and society. By improving Quality of Life and increasing value for customers, Hitachi will contribute to building a sustainable society.About FTSEThe "FTSE4Good Index Series" and the "FTSE Blossom Japan Index" are semi-annually selected by FTSE Russell, a wholly owned subsidiary of the London Stock Exchange Group. These indexes are composed of stocks that meet a variety of criteria related to the environmental, society, and governance.About Hitachi, Ltd.Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is focused on its Social Innovation Business that combines information technology (IT), operational technology (OT) and products. The company's consolidated revenues for fiscal year 2019 (ended March 31, 2020) totaled 8,767.2 billion yen ($80.4 billion), and it employed approximately 301,000 people worldwide. Hitachi drives digital innovation across five sectors - Mobility, Smart Life, Industry, Energy and IT - through Lumada, Hitachi's advanced digital solutions, services, and technologies for turning data into insights to drive digital innovation. Its purpose is to deliver solutions that increase social, environmental and economic value for its customers. For more information on Hitachi, please visit the company's website at https://www.hitachi.com. Copyright 2021 JCN Newswire. All rights reserved. www.jcnnewswire.com

6 11 月, 2020

With Two Potential First-in-class Innovative Drugs’ Commercialization around the Corner, RemeGen is Expected to Explode upon Listing

HONG KONG, Nov 6, 2020 - (ACN Newswire) - According to Bloomberg, recent years have seen the strong performance of biopharmaceutical enterprises in Hong Kong stock market. Bonnie Chan, Head of Listing of HKEX, said at the HKEX Biotech Summit on 1st September this year that 20 pre-revenue biotechnology companies had been listed in Hong Kong by then, raising a total of HK$48 billion in IPOs, and a total of HK$46 billion in post-IPO financing. The public offerings of BeiGene, Innovent Biologics and Junshi Biosciences have all expanded multiple times upon their IPO in their market value. With the listing of RemeGen next Monday, Hong Kong is to welcome another biotech superstar.Popular subscription and substantial room for rise in market value post IPOThe public offering of Ant Group last week froze a large amount of capital, posing pressure on other pre-listing companies. However, offering from RemeGen still gained great traction, with its institutional books hundreds multiple times covered and retail book over 50-time subscription in pool A and hundreds of times in pool B. With the sudden halt of Ant Group's IPO and hundreds of billions of funds being refunded to Hong Kong investors, it is expected that RemeGen would become a new hit of the market.Due to the over-subscription and the 'claw-back' mechanism, the shares distributed to institutional investors were extremely tight. Nevertheless, the structure of the institutional book was extremely strong. Majority of the investors areglobally renowned long-only funds, leading healthcare corporates in China, healthcare specialists as well as well-known tycoons and family offices from both Hong Kong and China. After the listing of RemeGen, these investors will continue to increase their position given the limited amount of allocation they received during the IPO due to the "claw-back" mechanism mentioned above. This will provide a margin of safety for the company's post-market performance.The estimated value of RemeGen after IPO is expected to be approximately HK$25 billion, comparing with BeiGene's current market cap of ~HK$200 billion, Innovent's current market cap of ~HK$80 billion and Junshi Biosciences's current market cap of ~HK$40 billion. RemeGen has substantial room to continue to climb after the IPO. It is highly likely that the market will witness a strong post-market performance of RemeGen, which can fully represent its market value. Star management team to ensure that the innovative drugs will receive marketing approval and enter the market within the next 3-8 months Established in 2008, RemeGen has a management team featuring extensive industry experience and professional expertise. Dr. Fang Jianmin, the co-founder, CEO and CSO of RemeGen, is one of the few corporate founders in the domestic biopharmaceutical industry with a successful track record of progressing novel biological drugs from discovery through development and commercialization. Dr. Fang is the original inventor of Conbercept, which is a well-known biologic drug and was ranked top ten in terms of revenue in China last year. At the same time, he is also a member of scientific Expert Committee of the Special Major Project for Technologies of Innovative Manufacturing of Major New Drugs. Dr. Fang has more than 20 years of extensive experience in biopharmaceutical R&D and owns more than 40 patents for pharmaceutical invention.Dr. He Ruyi, the CMO of RemeGen, is one of the most authoritative experts in China in the areas of clinical development and global regulatory regimes for medical products. With nearly 20 years of experience working at the FDA in the U.S., Dr. He has led multiple important policy initiatives during his tenure as Chief Scientist at the Center for Drug Evaluation (CDE) of the NMPA. In addition, Dr. He is an important committee member in the biotech expert committee at the Hong Kong Stock Exchange. Under Dr. He's leadership, RemeGen is in the process of receiving market approval for two of its leading innovative drugs within the next 3-8 months.What is worth mentioning is that among the pre-revenue biotech companies in the Hong Kong market, RemeGen is, other than BeiGene, the only enterprise with two innovative drugs, namely Telitacicept and Disitamab vedotin, which are both expected to receive marketing approval within the next 3-8 months. Telitacicept is mainly used for the treatment of B cell-mediated autoimmune diseases. As there is no effective cure for such diseases, Telitacicept is expected to be the best-in-class therapy in global SLE market which ever-growing with largely untapped potential. Disitamab vedotin is a kind of antibody-drug conjugates (ADC) which is mainly used for the treatment of common cancers. ADC is the branch of oncology therapeutics which attracts the most attention and investment given its therapeutic potential. Disitamab vedotin has the potential to become the first-to-market ADC in China and is well-positioned to capture large demand of the market. In addition, RemeGen has global development and commercialization rights to the above candidates and will expand its businesses globally in the years to come. The dealings of RemeGen will officially commence on the Main Board of the Stock Exchange on 9 November. Given that the company has two innovative drugs about to reach the commercialization stage with more room for growth in the future, RemeGen is definitely a high-quality target of great investment value. Copyright 2020 ACN Newswire. All rights reserved. www.acnnewswire.com

2 11 月, 2020

IDC giant GDS secondary listing receives great support led by its promising prospect

HONG KONG, Nov 2, 2020 - (ACN Newswire) - According to South China Morning Post. At present, China's digital economy is developing rapidly. As the information infrastructure is closely related to the development of the Internet, IDC demand has experienced strong growth, and IDC business revenue has continued to grow rapidly. GDS Holdings Limited ("GDS"), the absolute leader in China's IDC industry, initiated its secondary listing amid the good timing of the industry's development, and was officially listed on the Hong Kong Stock Exchange today, which has been enthusiastically sought after by market investors.GDS actively makes its presence in the first-tier cities to seize high-quality resources. Its data centers are mainly located in Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu and Chongqing. All of which are major financial, commercial, industrial and communications hubs in various regions of China. In addition, the features of high power density and low PUE of the data centers owned by GDS can effectively help customers reduce their operating costs, proving that GDS has formed a strong competitiveness in providing services to customers.The data centers operated by GDS rank among the top in terms of scale in China. As of June 30, 2020, GDS had operated 42 self-developed data centers, with a total net floor area of 256,750 sqm in operation, and had a further 17 new self-developed data centers with an aggregate net floor area of approximately 133,208 sqm. under construction. In addition, the Company has reserved a wealth of resources to be developed for subsequent scale expansion. As of 30 June 2020, GDS had an estimated total developable net floor area of approximately 323,014 sqm in the first-tier market, and has secured a further estimated developable net floor area of approximately 30,000 sqm in total in the first-tier market after June 30, 2020, leading the industry in terms of project scale and reserves, and these data centers are mostly located in the first-tier markets in China, which can provide customers with convenient connections, making the Company more competitive in providing services to customers.Since its listing in the US stock market in 2016, GDS has been widely recognized by investors, and its market value has increased by nearly 8 times in just a few years, becoming the world top data center service provider in terms of market value. Behind the soaring market value, it is the investors' recognition of the Company's leading position and the confidence in its future development. GDS has also attracted numerous well-known institutions as investors. Hillhouse Capital, Temasek and China Ping An are impressively found on the list of its shareholders.GDS is favored by the market by virtue to its leading advantages in the IDC industry. As of June 30, 2020, GDS served 673 customers, including hyperscale cloud service providers and large internet companies, a diverse community of PRC and foreign financial institutions as well as telecommunications carriers and IT service providers and large domestic private sector and multinational corporations, many of which are leaders in their respective industry verticals. In addition, its data centers are clustered across all of China's Tier 1 markets and are accessible over all the major telecom networks, hosting all the major public cloud service providers, including AliCloud, Tencent Cloud, Amazon Web Services, Microsoft Azure, Huawei Cloud, Kingsoft Cloud, UCloud, QingCloud, JD Cloud and Baidu AI Cloud.Benefited from the rapid development of the industry, GDS has achieved significant growth in recent years. Its net income increased significantly from RMB1,616.2 million in 2017 to RMB4,122.4 million in 2019, representing a compound annual growth rate of 59.7%. With the continuous advancement of China's new infrastructure strategy, GDS is expected to maintain high quality and high speed growth on the basis of significant scale advantages and high growth potential recognized by capital, further consolidating its leading position in the industry. Copyright 2020 ACN Newswire. All rights reserved. www.acnnewswire.com