BNN Technology Share Discussion Threads

[pre] 07/4/2017 16:02

meanwhile the buys continue to flood in...blue shortly...

[astralvision] 07/4/2017 15:57

PC, that's fine, just trying to bring a bit of info to the board.

What I don't understand is why, if aligning themselves with Xinhua News Agency, has the take up from the deal announced a year ago been so poor to date. There may well be an explanation for it, but, to me, it don't fill me with confidence that having got it wrong so far, the petrol app is going to be the one where they get it right.
Brokers report or further explanation may help on that front.
For example in the petrol app news released on 9th March 2017 they said:

'The platform will provide a broad offering of consumer services to motorists in China, initially focusing on pre-paid petrol card top-ups, followed by motor insurance, car park payments, car maintenance and traffic fines'

Is this the same traffic fines that were in the 21st April deal last year?


'....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 seven of 12 targeted provinces in China. '

Traffic fines were forecast by Mirabaud to contribute £36.5m of net commission this year. But could it be they've not yet even started on that one?

Given that BNN keep banging on about how things are going quicker than expected, it scarcely seems possible that a deal announced a year ago has not yet started.
But in some ways I would be happy to hear that the slow start is nothing to do with take-up, it's all to do with the services being delayed in their roll out. I would be re-assured by that.

We need some clarity from BNN because, at the moment, it's a total mess of their own causing.

Hello nurdin, note the lol, but just to be clear I never short any stock. I'm slightly under-water on this one, more of a case of lost profit (so far) than lost capital. But I am trying to understand the proposition and I'm finding a lot of things that simply don't add up.
I guess I could just leave it and wait for the results/brokers note,but I appreciate the views of fellow investors and others gained via these boards.

Anyone got a view on the Traffic fine app, stopped or started!

[nurdin] 07/4/2017 15:50

Yes that is their trump card...imo

[and11] 07/4/2017 15:45

Astral! Better to be in a market which everyone is targeting than a market that know one is interested in!! BNN remember have the support of the government, via Xinhai...aim for the stars! Anything short of this is still massive....GLA

[nurdin] 07/4/2017 15:40

I am beginning to think you are short here astral lol

[perfect choice] 07/4/2017 15:35

Fair enough astral, which is why the analysis is based on 1% market penetration, with 99% for other routes. BNNs alignment with the Xinhua News Agency and signing up petrol retailers to gain access to around 80% of the market means they do have a strong proposition to gain that share IMHO

[astralvision] 07/4/2017 15:33

This is surely the way all petrol will be paid for in the not too distant future?

[pre] 07/4/2017 15:29

Just look at the buys flying in....

[astralvision] 07/4/2017 15:28

and worth reading this one, already an app out there for the independents, which, apparently, make up 40% of China's petrol retailers.

[astralvision] 07/4/2017 15:25

Anything BNN/Xinhua do that is new will be immediately copied by the likes of TenCent and Alibaba.
its a question of if BNN can carve out some sort of niche offering/business

[astralvision] 07/4/2017 15:21

An example of the sort of competition BNN will have in the petrol market
Not saying there isn't room for more entrants and ones that bring quicker and easier access, but competition is stiff and margins will be constantly under pressure.




Card Services

CNPC's Refueling Card System (RCS) is a massive IC card application project across different systems and regions. In this project, CNPC works with ICBC (Industrial and Commercial Bank of China) to electronically retail oil products, providing a better and more convenient customer experience.

The RCS has been put into operation in 32 provinces, municipalities and autonomous regions, with more than 100,000 cards of different types been issued. The IC Card Distribution System has been promoted by North China Marketing Company in Beijing, Tianjin, Hebei Province, Henan Province and Shanxi Province. This system has been deployed in 138 gasoline and five gas fueling stations in Beijing. In addition to accepting the CNPC Refueling Card, Peony CNPC Card and Peony Transport Card, the system can also distribute tax-free fuel to foreign embassies and their diplomats in China.
Our Kunlun fuel card can give the card owners quick and convenient access to refueling services. In 2014, the Kunlun fuel card was recognized as the "Most Reputable Brand" at the 5th Prepaid Card Industry Summit of China. And we improved the Internet service channel by launching online recharging, creating a trading value of RMB 547 million in 2014. In 2015, we newly issued 17,210,000 Kunlun fuel cards in the market, increasing the total number issued to 81,280,000.

In addition, our www.95504.net service website is available throughout China. We have also built an integrated "one-stop" service platform that provides consultation services, information enquiry, card loss register, complaint, and suggestion to Kunlun card holders.

[tsmith2] 07/4/2017 14:52

Me thinks it's going blue..

[perfect choice] 07/4/2017 14:45

How did you work that out (LoL!)?

[tsmith2] 07/4/2017 14:29

Topaz are you short?

[pre] 07/4/2017 14:07

fundies adding imo, what a great time to snap up more stock...holdings rns soon? wouldn't surprise me if directors snap up sizeable chunks here too in the background, dyor etc as plenty of negative posters who used these scaremonging tactics a few days back with tax year end impact:-)

[topazfrenzy] 07/4/2017 13:55

Who needs Mirabaud, Topaz's latest target is 40p after results.

[astralvision] 07/4/2017 13:51

CharlesdarcyThanks for your input. You would be surprised if BNN got 0.15% on petrol. I must say that that sounds nearer the mark than the 1.75% figure that the Mirabaud figures imply. Revised brokers note should help, provided Mirabaud are a bit more realistic with the benefit of the last 6 months trading.

[charlesdarcy] 07/4/2017 13:35

Astral ;
The margins in petrol is tiny for retail & payment by cards are cut to very low rates .

I would be surprised if BNN get 0.15 % for petrol payments but numbers could be huge on T/ over .

I am sure there are many new avenues going too open up this year that we have not thought of yet .

Plus the value of 100s millions of data in a fast growing economy is worth a fortune to advertisers

[nurdin] 07/4/2017 13:29

The advantage that BNN has over the likes of Alipay,Wechat etc is that XNA, which the the mouthpiece of the Government, is a trusted name in China.There is a lot of mistrust within the chinese community,specially in the regional areas that BNN is targeting,of card based payment method and other mobile based schemes which others are promoting.

[topazfrenzy] 07/4/2017 13:25

and11 honestly you are so stubborn, your poor wife must be terrified you'll lose all the money before long ...

[astralvision] 07/4/2017 13:18

Anyone got a spare few bob , you can read about the market here:

[and11] 07/4/2017 13:15

Lol!! Topaz! What a well researched post!! Pure class! Grasping at straws l think you are...😂€514;😂

[perfect choice] 07/4/2017 13:14

Yes and that commission rate is quite reasonable for this market, there are other services with even higher rates. The other 99% is the likes of cash or pre-payment cards you have to top up, versus a mobile app you just use when you need fuel. I know what is easier!

[astralvision] 07/4/2017 13:13

nurdin
The competition is immense and fierce. Margins will be driven down and wafer thin, which is why I think the numbers quoted by BNN/Mirabaud look totally unrealistic.
This is not some new invention. It seems to rely on the standing of Xinhua. Well, perhaps the Chinese are happy to get their news from Xinhua, but prefer using the established FinTech providers for their mobile purchases.
Only time will tell, but the initial signs indicate, at the least, some reticence to use Xinhua for mobile payments.

[topazfrenzy] 07/4/2017 13:12

Even some of Alipay's biggest competitors Like WeChat owned by Tencent are not making money I remember reading, there are lots of them to include Samsung, Apple and they offer free chicken or something to get people to use them, thus all this football nonsense from BNN to get people to use them, probably all money down the drain on those 'deals'.