CMMB acquires 51% equity interest in fast-growing Hong Kong based AI company IITH, creating significant synergy effect and fueling the long-term stable development of the Group
Asia's largest high-orbit satellite based mobile data connectivity and transmission service provider – CMMB Vision Holdings Limited (471), is pleased to announce that CMMB recently entered into the Agreement with Chi Capital Holdings Ltd, the Controlling Shareholder of the Company for the acquisition of 51% interest in International IT Hub Limited (IITH) at the consideration of HK$1.00. Upon completion of acquisition, IITH will become an indirect wholly-owned subsidiary of the Company, and its results, assets and liabilities will be consolidated into the accounts of the Group.
IITH is a Hong Kong based Artificial Intelligence (AI) and big-data Internet-of-things (IoT) hardware and software solutions provider with operations in Hong Kong and China. It has advanced competence in areas such as AI-based video analytics, facial recognition and license plate recognition as well as IoT solutions.
IITH was established in 2018 in Hong Kong and has built a solid and extensive client base covering various industries, such as government bodies, NGOs, consumer and service sectors in Hong Kong and China. IITH leverages its self-developed algorithm with AI & IOT solution to enhance operating efficiency to facilitate client’s specific need. The management team of IITH includes members who have AI and IOT related field’s experience for over 15 years.
In 2021, IITH has recorded revenue of over HK$10.7 million. Due to the expected increasing investment in digital transformation from government and enterprise, the management of IITH expects to generate at least HK$30 million in revenue for the next two years. The Company believes the acquisition of IITH should create new revenue stream with enormous future prospect to the Group. On one hand, IITH will leverage CMMB platform to carry on and expand its AI / IoT business as an independent subsidiary. On the other hand, IITH will provide its AI and big-data analytics competence to bolster Company’s satellite-5G converged data-as-a-service infrastructure into a vertically integrated operating platform with data aggregation, distribution, analytics so as to maximize business opportunities.
Upgrade and expand Company’s PCB Electronics Components business with new AI and IoT based hardware/software solutions
The Company has recognised the trend of AI and IoT technologies playing in the new-generation digital electronic devices, robotics, and appliances, etc. IITH provides advanced hardware and software solutions and robotic products in areas of AI-based video analytics, facial recognition, vehicle recognition, logistics, and community management, which can be highly complementary to the Company’s PCB electronic component business platform as a whole. The Acquisition is expected to add AI and IoT based hardware and software product with higher profit margin flows to the Company and improve the profitability of the PCB electronic component business.
Bolster Company’s satellite-5G converged data-as-a-service infrastructure with AI and big-data competence
One of the core businesses the Company is expanding from of its CMMB multimedia technology is to provide data-as-a-service with a holistic satellite-5G converged mobile delivery and consumption infrastructure, which could be used to provide digital infotainment and data analytics for smart-car and smart city use. The Company’s future satellite capabilities will include remote sensing for collecting and transmitting earth observation data such as carbon emission, climate change, and energy for industry and government use. The addition of IITH will embolden the Company’s satellite-5G platform with AI and big-data capabilities to perform a variety of data analytics and embolden the Company to be a comprehensive data-as-a-service operator.
According to the above favourable reasons, CMMB believes the Acquisition is a most efficient and cost-effective way for the Company to enter into the AI & IoT market and acquire the advanced competence, which will accelerate the development of the satellite-5G converged data-as-a-service infrastructure of the Company, further capture the huge potential of satellite internet market in APAC region.
30/05/2022 Dissemination of a Financial Press Release, transmitted by EQS Group.