KUALA LUMPUR (July 6): ACE-market listed Oriented Media Group Bhd announced today that the company is officially venturing into China’s Internet market to provide digital or online media consultancy services.
In a statement today, Oriented Media (fundamental: 1.2; valuation: 0) said the company will be able to provide consultancy services for the e-commerce trading platform that involves research and development as well as operating services of online sportswear businesses in the near future.
Currently, the company is principally involved in the development of online games, educational web applications, mobile applications and digital media consulting services.
The China Internet operations will be undertaken by Fujian Accsoft Technology Development Co Ltd (FATD), a wholly-owned subsidiary of Oriented Media Holdings Ltd, a Hong Kong-incorporated company that is wholly-owned by Oriented Media.
FATD has received approval from the Chinese government for its set-up in the republic.
To date, FATD has already signed the e-commerce hosting services and operations managing services agreement with local sports apparel enterprises like Kangta, Resoon, Qianda and Lianmao, said Oriented Media.
“After considering its continued challenging operations in Malaysia, Singapore and Hong Kong, the board then decided to streamline its existing operations by reducing its dependency on these regions by broadening its existing business by venturing into China’s Internet market,” said Oriented Media.
“In March, the government of China included the Internet industry and career development as part of its national development strategy. At the same time, the government also announced plans for the 'Internet+' concept, which further boost the confidence of the group’s venture into China,” it added.
Looking at the fast-paced development of Internet industry and technology, Oriented Media said the management team and the board have been exploring potential business growth and external business expansion opportunities within the data industry in China for the past few years and this has led to the entry of Zu Ghuhe in May 2014 as a new investor cum executive director.
Zu is tasked to spearhead the growth of this sector for the company in China over the next few years.
At 3.48pm, Oriented Media was traded at 31.5 sen, down 4 sen or 11.27%, with a market capitalisation of RM68.32 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)