Dji Holdings Share Discussion Threads

[someuwin] 22/4/2016 08:05

"Mind-boggling" indeed!

[kkrriiss2] 22/4/2016 07:45

Can anyone post article ? Thnxs .kk

[philby1] 22/4/2016 07:41

MW's article last night titled "Mind-boggling" - A brilliant deal for DJI.

[snowyflake] 21/4/2016 21:00

'T'will be interesting to see which Chinese are appointed to the board.

[snowyflake] 21/4/2016 20:00

squires - I do not see the dilution at 20% ; more like 12.5%. The cashing up as you put it is DJI's contribution for its share in the Xinhua business arrangement announced today. I do not see it as monies needed to keep going in any way.

There will be income flowing from the Shandong agreement.

Today's announcement is imo even better than the Shandong agreement announced on 22.03.16.

The market has not generally wised up to DJI yet but the board and management still have to execute the plans.

[javea] 21/4/2016 17:10

Expect a mw write up soon-he is very bullish-

[squiresquire] 21/4/2016 16:50

I honestly think this could be better, far better. With PANR you have the knowledge of the oil, its almost tangible as you can count the barrels using experts and inform the shareholders. We then feel good due to the huge amount we believe PANR has.

With DJI its far more difficult to get the same tangible 'feel', yet when you do the sums this far outperforms.

Just look at how the shareprice recovered after they diluted by 20% this morning. Close as if nothing at all had happened. Now they are fully cashed up to get on.

[philby1] 21/4/2016 15:43

Like you I hold PANR and have had a fantastic ride there but if you're even half right about DJI (and I think you might be) then ................WOW! So glad I added a few more in my ISA this morning :0)

[someuwin] 21/4/2016 15:21

Staggering is the word...

"...The immediate opportunity for DJI's platform to facilitate payments through the Xinhua News App is substantial and will utilise its existing relationships with key channel service providers, as well as working direct to customer, through this rapidly growing app. Each of the initial areas in which this facility will be deployed is a very significant market. In 2014, approximately RMB 4.3 trillion (GBP475 billion) was spent on electricity, water, gas, waste disposal, toll fees and broadband. Mobile phone top-ups totalled approximately RMB614 billion (GBP67 billion) in the same year and traffic fines approximately RMB 211 billion (GBP23 billion)."

[philby1] 21/4/2016 14:56

Mike Walters has been covering this one for a little while now and he seems very positive also. It will be interesting to see his comments on this mornings announcement.

[squiresquire] 21/4/2016 14:44

I have a fair few PANR, it was just the same with them at the start no one read it up, it was hardly held but gradually people read it, it got tipped by the minor tipsters then later by the larger brokers i think DJI is exactly the same, a good placing, a premium the same day to the placing and now the reading all looks so much better because they can afford the plans they have. This share is simply staggering in its potential, more so than PANR.

[philby1] 21/4/2016 14:26

Share price responding strongly since the news - hopefully some positive coverage to follow once the magnitude of this announcement sinks in.

[squiresquire] 21/4/2016 10:57

Excellent news,

[someuwin] 21/4/2016 09:34

Amazing!

And Nasdaq listing too.

[someuwin] 21/4/2016 09:27

21 April 2016

DJI Holdings plc

("DJI" or the "Company")

Technology partnership with NewNet to support Xinhua News Mobile App

Placing to raise GBP10.5 million

Transformational deal for DJI to work with Xinhuatong, the main operator of the Xinhua News App owned by China's national news agency, to create a leading app for mobile payments and information nationwide

DJI Holdings plc (AIM: DJI, "the Group", "DJI"), a provider of technology for the promotion and transaction of online bookings, mobile payments and lottery sales in China, announces that it will invest and cooperate with Beijing NewNet Science & Technology Development Co., Ltd. ("NewNet"), which has secured a partnership with Xinhuatong Network Co., Ltd. ("Xinhuatong") and branch offices of Xinhua News Agency ("Xinhua"), the national news agency in China, to supply game technology platform and 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.

DJI's investment in this new venture will be funded by the proceeds of a placing of new ordinary shares in the Company to raise approximately GBP10.5 million before expenses through Mirabaud Securities LLP, at a price of 60p per share (the "Placing Price")(the "Placing").

Xinhua is the official news agency of the Chinese government. Xinhua launched its mobile news app in June 2015 and is reported to have already registered 120 million by February 2016. It is expected that the recent average growth of 10 million users per month will continue into the foreseeable future as the app develops additional functionality and the partners believe that the app will reach 300 million registered users during 2017. Xinhua's stated intent is for the Xinhua News Mobile App to become a leading mobile unified information platform for all Chinese citizens.

The partnership between Xinhua, Xinhuatong and NewNet is intended to facilitate mobile payments via the Xinhua News App across China. Xinhua News operates through provincial agencies, each responsible for gathering and disseminating news locally. To date, seven provinces, with a combined utility spend of more than RMB 1 trillion in 2014, have agreed to launch this mobile payment facility through the Xinhua News App and a further five are targeted for launch in the coming months.

With operational representation across all of China's 2,800 cities and counties throughout the 31 provinces, Xinhua News Agency enjoys complete nationwide coverage. The Xinhua app serves not only as mobile access for state-run media, but also as a platform for government administration and service information. As such, the app has become the primary information tool for many Chinese citizens to access local and central government information. The app currently provides national and local news and limited payment features. In due course, it is intended that the app will, through the partnership with Xinhuatong and NewNet, facilitate additional payments across other local government departments and a broad range of commercial services.

Xinhuatong has a cooperation agreement under which it is a preferred partner of Xinhua to provide payment facilitation and lottery promotion via the Xinhua News App. NewNet has an existing relationship with Xinhuatong as a joint venture partner in Xinhuacai, a company established in 2014 for the purpose of exploiting the growing mobile lottery promotion market. DJI will provide the technology platform to NewNet and Xinhuatong to facilitate the promotion of mobile payments and online bookings through the app. NewNet was selected because of its strong technology platform, capable of handling high volumes of transactions reliably and securely.

Mobile app usage in China is growing strongly. Smartphone owners downloaded 38 billion apps in 2015 and this annual figure is forecast to grow to 90 billion in 2020. More than two-thirds of smartphone owners use mobile apps every day and average daily mobile phone usage grew from 1.67 hours in 2014 to 2.36 hours in 2015. This growth is a key driver of the national market for mobile top up payments in China. An estimated RMB 506 billion (GBP55 billion) of these payments will be made offline in 2016, falling to RMB 450 billion (GBP49 billion) in 2018, or 46% of the total.

The immediate opportunity for DJI's platform to facilitate payments through the Xinhua News App is substantial and will utilise its existing relationships with key channel service providers, as well as working direct to customer, through this rapidly growing app. Each of the initial areas in which this facility will be deployed is a very significant market. In 2014, approximately RMB 4.3 trillion (GBP475 billion) was spent on electricity, water, gas, waste disposal, toll fees and broadband. Mobile phone top-ups totalled approximately RMB614 billion (GBP67 billion) in the same year and traffic fines approximately RMB 211 billion (GBP23 billion).

In 2014 approximately 90% of utility bills were paid through physical payments in physical outlets. These methods included rechargeable cards, self-service terminals, company stores and Post Office counters. Where there is the opportunity to use existing online payments methods, this facility is confined to larger cities in the provinces. In the 12 provinces initially targeted, the large sectors of gas, water and electricity payments still collect less than 15% of payments online, while the more competitive sector of mobile top ups receives fewer than 29% of its payments online. The combined utility spend of these 12 provinces was RMB 3.7 trillion (GBP407 billion) in 2014, representing approximately 75% of nationwide billing.

DJI's technology and platform will enable the Xinhua News App to facilitate mobile payments. The market opportunity for a move to online payments through mobile is being driven by two factors: the steady migration of individuals from rural areas in China to urban centres, which in any event have higher levels of smartphone ownership; and the expansion of the 4G mobile network in areas where online access has been limited provides a significant undeveloped opportunity.

NewNet will provide a B2C service directly through the app and a B2B service through leading channel partners with substantial existing user bases: e-commerce network channels, banks and third party payment processors.

The agreements are for an initial three year period and provide for a profit share between the parties subject to certain guaranteed minimum payments to the provinces.

Prospects

The Directors of DJI believe that this agreement represents a significant opportunity for the Group's game and technology platform to be a central part of one of the leading mobile apps in China. The scale of the Chinese payments market not yet online has the potential both to accelerate earnings growth substantially and to significantly enhance the Group's presence in new industry sectors across China.

The daily life utility platform has targeted 12 provinces to come on stream by early 2017. These provinces, with a total population of c.700 million, represent coverage of approximately three-quarters of all existing utility payments in China. The initial launch in Zhejiang and Shanghai provinces is planned for the beginning of May 2016 and is expected to be revenue generating within a few weeks of operation.

Services will initially focus on the key areas of mobile top-ups, traffic fines and utility payments. The first three months of operation will take place chiefly in major cities in the first provinces, with Xinhua's mobile app supporting the roll-out further afield.

New Net and Xinhuatong are committed to exploring a wide range of sales channels for marketing their enhanced platform. Whilst the B2C model offers significant exposure directly through the Xinhua news app, the parties will also support a B2B model with major e-commerce channel partners, banks and third party payment providers.

Board changes

The Board of Directors currently comprises Darren Mercer as CEO together with Lord Mancroft as Non-executive Chairman and Robert Lerwill as Senior Independent Non-executive Director. The Board recognises the need to strengthen its membership as it grows and intends in the coming weeks to appoint a CFO and representatives of its Chinese operations.

Funding

The Company, through its broker, Mirabaud Securities LLP ("Mirabaud"), has agreed conditionally to place 17,580,000 million new ordinary shares of par value 10p each ("Ordinary Shares") in the share capital of the Company (the "Placing Shares") at a price of 60p each, raising gross proceeds of approximately GBP10.5 million. The proceeds of the Placing, together with the Company's existing resources, will be applied to the payment of the minimum annual guaranteed sums to the provinces (up to GBP5 million), to invest in the technology platform (up to GBP1 million), promotion of the apps services and payment processing (up to GBP5 million) and general working capital.

The Placing is subject to the terms and conditions set out in the Appendix (which forms part of this announcement, such announcement and Appendix together being the "Announcement").

The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares of the Company, including the right to receive all dividends or other distributions made, paid or declared in respect of such shares after the date of issue of the Placing Shares.

(MORE TO FOLLOW) Dow Jones Newswires

April 21, 2016 03:03 ET (07:03 GMT)

It is intended that the Placing will be conducted in two stages, with 14,900,000 First Placing Shares being placed using the Directors' existing authority to allot shares for cash on a non pre-emptive basis and 2,680,000 Second Placing Shares being placed conditionally upon, inter alia, the passing of the Resolutions at the General Meeting which is expected be on or around 16 May 2016 (or such later date as the Company and Mirabaud agree). Application will be made for the First Placing Shares and the Second Placing Shares to be admitted to trading on AIM and it is currently expected that trading in the First Placing Shares will commence on 27 April 2016 and, subject to the passing of the Resolutions, the Second Placing Shares, will commence as soon as practicable after the General Meeting.

Your attention is drawn to the detailed terms and conditions of the Placing described in the Appendix to this Announcement (and which forms part of this Announcement).

The Placing is conditional upon, inter alia, admission of the Placing Shares to trading on AIM becoming effective ("Admission") and the placing agreement between the Company and Mirabaud not being terminated prior to Admission.

Renegotiation of convertible loan notes

Separately, securing the agreement with Xinhua has enabled the Group to renegotiate favourably the terms of its outstanding convertible loan notes. This development has resulted in a material saving and a strengthening of DJI's balance sheet.

In connection with the IPO in 2014, the Company issued the Notes. The Notes bear interest (i) during the first 12 months after the date of issue of at 16 per cent. per annum; (ii) during the 12 months from the end of the first year at 20 per cent. per annum and (iii) following the second year, at 24 per cent. per annum. The Notes are capable of conversion to Ordinary Shares at any time prior to the third anniversary of the issue of the Notes (being 17 July 2017). The conversion price of the Notes is fixed at 115p. As at 20 April 2016, the accrued interest on the Notes was GBP2,426,960.

The Company has agreed with the noteholder, Stadium Parkgate Limited, that the existing Notes will be cancelled and New Notes will be issued for the same principal amount of GBP6.0 million, but carrying an interest rate of 6 per cent. The New Notes, together with accrued interest, are capable of conversion to Ordinary Shares at any time after 31 December 2016 and prior to 17 July 2018, other than in circumstances of certain changes of control where the New Notes will be capable of conversion to Ordinary Shares prior to 31 December 2016. The conversion price of the New Notes will be the lower of 115p and the closing mid-market price of an Ordinary Share on 31 December 2016, other than in circumstances of certain changes of control where the conversion price of the New Notes will be 115p.

In addition, further New Interest Notes will be issued for the sum of GBP2,426,960, this being the accrued interest to date on the Notes. The New Interest Notes are capable of conversion to Ordinary Shares at any time after 31 December 2016 and prior to 31 January 2017 at the lower of 115p and the closing mid-market price of an Ordinary Share on 31 December 2016. Separately, at any time after 31 January 2017 or prior to 31 December 2016 in the event of certain changes of control, the New Interest Notes are capable of conversion to Ordinary Shares at the lower of 115p and the closing mid-market price of an Ordinary Share on 31 December 2016, other than in circumstances of certain changes of control where the conversion price of the New Notes will be 115p.

Nasdaq listing

The Board is pleased to announce that it expects shortly to submit form 20-F to apply for a secondary listing on New York's NASDAQ market. Although it had been the Board's intention to submit before the end of March 2016, it was advised that the significant nature of the Xinhua mobile app partnership would necessitate its inclusion in the NASDAQ admission document. Taking this delay into account, we would hope to secure the listing early in Q3 2016. The Board continues to believe that a NASDAQ listing will improve liquidity in DJI's shares and broaden the Company's investor base. We will update investors on progress in due course.

Commenting on the launch of the mobile payment platform agreement, Mr Dong Jinhua, Chairman of Xinhuatong, said:

"We want to make it easier for hundreds of millions of Chinese people to conduct their daily lives using mobile technology, in line with the government's Internet Plus strategy for putting individuals, communities and businesses online. It is exciting to be partnering with DJI's game and payment technology platform to roll out a product that will have truly national reach through the Xinhua news app. We look forward to adding features that will make this already great app indispensable to all who use it."

Darren Mercer, Chief Executive Officer of DJI Holdings plc, added:

"The Xinhuatong partnership, utilising our platform to support the Xinhua News App, is a game changer for DJI, both strategically and financially. Together with Xinhuatong and NewNet, we have the opportunity to place our technology at the heart of one of China's leading and most important portals. Our joint efforts will enhance brand awareness, reputation and customer loyalty for the Xinhua mobile app, attracting more users to achieve economic and social benefits for the Chinese people. It is testament to the robustness and versatility of DJI's technology platform and to our marketing skills that we have secured an important agreement with Xinhuatong and NewNet to support this powerful app. We expect this partnership to make a substantial contribution to DJI's revenues in the remainder of 2016 and beyond."

ENDS

[snowyflake] 19/4/2016 16:22

The chart indicates that a golden cross is almost upon us.

[the prophet] 18/4/2016 08:41

couple of recent articles of interest

[kkrriiss2] 18/4/2016 08:39

Morning all .. just found this thread Bought some Dji first trading day of 2016 and bought few more ,first thing this morning fingers crossed kk

[someuwin] 18/4/2016 07:17

...Very positive.

[thewhiteknighttrader] 18/4/2016 06:54

Leading Chinese business newspaper, The Economic Observer, reported over the weekend that the Chinese Government plans to launch a number of pilot programmes to resume online lottery sales. I would expect DJI to be included within the pilot programmes, in particular because of its JV with the Government's Xinhua News Agency.

[shutittrev] 17/4/2016 13:21

hxxp://calvinayre.com/2016/04/17/business/chinese-media-reports-that-beijing-plans-to-restart-online-lottery-sales/

[someuwin] 15/4/2016 10:19

From 'Hot Stock Rockets' tip sheet in March...

"...Thus there are three good reasons why the shares will race ahead in the coming three months:

a) confirmation of a rapid take-up in Shandong which could well leave DJI trading on a single figure PE

b) other mobile lottery wins

c) a lifting on the national ban on online lottery sales.

In terms of the balance sheet DJI is insistent that it has sufficient cash to see it through to profitability and beyond.

The wild card is corporate action. We have already seen Alibaba buying its way into the online lottery space in recent times – an indication in itself that the ban will be lifted soon. Given its market leading position we would not be entirely surprised to see DJI also involved in some sort of corporate action."

[someuwin] 15/4/2016 08:50

Something's happening.

[javea] 15/4/2016 08:44

More interesting