TIDMBNN
RNS Number : 4015I
BNN Technology PLC
19 June 2017
19 June 2017
Signing of Zhejiang Xinhua to support Student Recruitment
Platform
-- Extension of Group's technology into new potential revenue generating areas
-- Unique access to one of China's most valuable user groups
with 35 million further education students
-- B2C channel for the Group to sell its complete suite of products
BNN Technology (AIM:BNN), a London-listed Chinese technology,
content and services company, confirms that it has successfully
concluded negotiations and signed a three-year cooperation
agreement with Zhejiang Xinhua to create a student services
platform in China encompassing recruitment, financial services and
funding for student innovation and enterprise.
Further to the announcement on 13 April 2017 detailing the
Group's investment plans and related share placing, the Company is
delighted to announce the first signed partnership to launch its
products in Zhejiang province. The partnership with Zhejiang Xinhua
will, upon full roll out, offer student recruitment services for
both full-time and part-time jobs, access to crowdfunding, venture
capital or angel funding for student innovation and business plans,
microlending for purchases of mobile phones, laptops, tablets and
other items relevant to students and a large platform for B2C sales
for the Group's existing and future product ranges, such as mobile
phone top ups, mobile data, petrol card top ups and other
services.
Under the terms of the partnership, Zhejiang Xinhua, the
provincial office of the Xinhua News Agency, will be responsible
for organising media channel resources on which to launch the
student platform, including the Xinhua News Agency mobile app and
local government mobile app. It will coordinate relationships
between universities and colleges, local government business
management departments and other related parties, as well as
leveraging its existing commercial relationships to support this
initiative. The Group will provide all software, operating platform
systems and hardware needed and will be responsible for its
operation and maintenance, in return for a share of profits.
The platform will initially provide student recruitment services
targeting a population of an estimated eight million graduates per
year seeking full time jobs. Additionally, it will offer part time
opportunities targeted at China's whole student population of 35
million. Revenues will be generated through fees charged to
employers, sales of mobile phones and other devices (and related
financing) and advertising. Discussions are ongoing with commercial
partners who are able to supply mobile phones and other devices, as
well as with banks to provide access to appropriate financing
packages. These aspects of the platform are anticipated to be
launched in October 2017 and revenue generating in the final
quarter of the current financial year.
The partnership with Zhejiang Xinhua will enable the platform to
access student data to verify qualifications and resumes for
employers, as well as for validating employment opportunities
presented to the students. BNN believes that such access is unique
in China and that this represents a key competitive advantage in
building a substantial presence in this market. Furthermore, BNN
believes that the credibility offered by the relationship with
Zhejiang Xinhua will lead to usage by organisations and students
alike.
Initially the platform will focus on recruitment and payment
services as described above. In due course, as announced
previously, it is intended that the platform will feature a range
of services to support innovation and enterprise. Working with
financial institutions and local government departments to provide
financial backing for business plans developed by Chinese college
students, the Group hopes to identify new technologies and business
processes that could potentially form the basis of exciting growth
companies. Services planned include business plan advice and
support, angel and crowd funding, specialist university expertise
and advice, and online coaching from angels, professors and
in-field experts.
The sizeable Chinese student market is regarded as a key target
audience for many segments of online activity. Supported by the
Chinese government's latest and 13(th) Five Year Plan, a key
element of which is expanding higher education and prospects for
graduates, this market is not at present dominated by any single
commercial organisation. The Zhejiang contract therefore provides
the opportunity for BNN and partners to enter this market, which
will support and enhance existing products and sales platforms.
Rollout of the student services platform
Discussions are underway in a number of other provinces with
regard to signing similar partnerships with Xinhua and the Company
looks forward to being able to announce further updates in due
course.
The initial elements of the student service platform are
expected to be launched in October 2017, as outlined above, with
the remainder of the Financial Services and Business Incubator
elements (as set out in the announcement on 13 April 2017) launched
by the end of Q1 2018. Accordingly, the Board expects these
initiatives to contribute to Group revenues in the latter half of
2017 and beyond.
Darren Mercer, Chief Executive of BNN Technology, said:
"This important development will put us at the heart of one of
China's most valuable user groups, namely its 35 million students.
This partnership allows our platform to benefit from new potential
revenue streams in the provision of recruitment services and higher
margin B2C sales of our existing products to this user group.
Furthermore, the student platform is expected to develop into a
substantial database, which we believe will be attractive to a
broad range of advertisers seeking to target this sector. We are
delighted to be working with some of China's largest organisations
across the whole spectrum of the platform and are excited about the
opportunities this will create for the Group as we aim to take a
substantial position in one of China's most important consumer
markets."
For further information, please contact:
BNN Technology plc
Darren Mercer, Chief
Executive
Scott Kennedy, Chief
Financial Officer
Stephen Benzikie, Communications +44 (0) 1565 872990
Strand Hanson Limited
(Nominated & Financial
Adviser)
Andrew Emmott / Ritchie
Balmer +44 (0) 20 7409 3494
Mirabaud Securities LLP
(Broker)
Peter Krens +44 (0) 20 3167 7221
About the Group
BNN Technology plc is a Chinese technology, content and services
company that builds long-term partnerships to deliver China's
citizens with value-added services, content, and evolving
opportunities.
Listed on AIM since 2014, the Group principally engages in
providing technology to partners to facilitate fulfilment of
payments online and on mobile apps through partnerships or
affiliate agreements with corporate and key government partners,
and developing digital content, both online and mobile. Through
NewNet and its partnership with Xinhuatong, the Group facilitates
mobile payments, through its technology platform, on the Xinhua
News mobile app in 12 provinces in China. The Chinese consumer
shift to 'life on mobile' is only just beginning and BNN's platform
technology enables urban and rural communities across China to
access exclusive content and pay for more services online.
The Group employs nearly 300 professionals throughout China.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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