Leading integrated digital music company A8Digital Music Holdings boosted its revenue and gross profit more than 200 and 180 per cent respectively because of strong growth in the mobile music market.
The group generated revenue by selling music content through mobile phones. The music originates from Chinese singers, and international and domestic record labels. These songs and ringtones are then put on a user generated content (UGC) platform, which allows interactive promotion and selling to internet users.
'Our UGC platform collected markedly higher volumes of original music and supported increasing download demand,' Alvin Liu Xiaosong, chairman and chief executive director of A8 Digital Music, said.
The group's revenue rose threefold to 329.4 million yuan (HK$375.9 million) for the first half of the year, and gross profit almost trebled to 135.8 million yuan.
This significant growth came largely because of an increasing number of mobile phone users in China, and it is common for them to personalise their phones by using original songs downloaded from the internet. China Mobile's interim results this year showed that the ring-back tone subscription increased 99.8 per cent to 600 million times, and mainland mobile subscribers rose 24.7 per cent to 414.6 million.
A8Digital Music made greater use of the internet and mobile handsets, and promoted its UGC platform on television and radio.