Fri, Jan 03, 2014 - Page 14 News List

Addcn plans to more than double sales

GROWTH AREAS:The company operates online trading platforms and believes there is potential for expansion within the construction, furniture and gaming industries

By Helen Ku  /  Staff reporter

Addcn Technology Co Ltd (數字科技), which operates online trading platforms on which people sell cars, houses, clothing and virtual treasures, yesterday said that it has a goal of more than doubling its annual sales over the next four years as it targets new advertising revenue from construction companies and furniture vendors.

“Addcn Technology will be further optimizing its existing trading platforms’ services,” general manager Ason Wu (吳聰賢) said in a pre-initial public offering (IPO) investors’ conference.

The company reported sales of NT$845.53 million (US$28.24 million) in 2012, but the figure is forecast to reach NT$2 billion in 2016, Wu said.

In the first 11 months of last year, advertising sales generated from the 591.com.tw Web site accounted for about 50 percent of the company’s total sales of NT$864.6 million.

That figure was followed by the 40 percent share generated from the 8591.com.tw Web site, Wu said.

In the first three quarters of last year, the company posted profits of NT$243.23 million or earnings per share of NT$8.69, up from NT$221.19 million or NT$7.9 per share during the same period a year earlier.

Addcn Technology is planning a GRETAI Securities Market debut on Jan. 20. The company will issue 31.5 million new shares at a tentative price of NT$240 per share.

Founded in 2007, Addcn Technology operates four Web sites, including 8591.com.tw, 591.com.tw, 8891.com.tw and 101.com.tw that sell virtual treasures, houses, cars and T-shirts respectively.

The company plans to provide advertising services for construction companies, as it expects the market potential to expand to NT$200 billion in 2016 from the current level of NT$40 billion a year.

Addcn Technology has also developed new strategies to attract more gaming companies to sell their pre-paid game cards online, Wu said.

“Our focus is on the mobile gaming market,” Wu said. “The gaming market is not going to disappear because of the contraction of the traditional PC market. Rather, demand for gaming products will remain robust because consumers are increasingly playing games on their handheld devices.”

As for its long-term goals, Wu said Addcn Technology plans to look into Southeast Asian countries such as Thailand and Malaysia and cooperate with local telecom operators to provide online trading services within 10 years.

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