CORPORATE NEWS
November 03, 2020
MOU between Platt Nera and Ultimate: Collaboration in applying IT solutions and developing content for the PRC and Thai entertainment industry
Info Asset Holding Limited, a wholly-owned subsidiary of Platt Nera International Limited (as the “Service Provider”) entered into a non-legally binding a Memorandum of Understanding (MOU) on 29 Oct 2020 with Ultimate Limited (as the “Prospective Partner”), to establish collaboration in the PRC and Thai entertainment industry.
The Group is an IT solution provider to financial institutions, telecommunications and utilities sectors. The Group will leverage its IT expertise and solutions to facilitate the online streaming of concerts, TV series and movies.
The Prospective Partner is engaged in the business of producing entertainment products including concerts, TV series and movies. It will be responsible for providing the copy rights of these entertainment products.
The MOU signing came after initial discussions between our Group and the Prospective Partner to co-develop and apply remote video streaming IT solutions and developing program content in the entertainment industry in the PRC and Thailand. This will allow the Group and the Prospective Partner to mutually learn, adapt and apply their respective technology and market knowledge strengths in the PRC and Thai markets and open new frontiers and opportunities in the entertainment industry. Going forward, both parties may cement their working relationship through joint ventures or joint projects, but details of such cooperation shall be subject to further negotiation and execution of definitive legally binding agreements.
According to forecast by Statista, the market size of online streaming in the PRC will reach around US$ 16.3 billion in 2020. Revenue is expected to show an annual growth rate (CAGR 2020-2025) of 19.5%. Similarly, revenue in the Video Streaming (SVoD) segment in Thailand is projected to reach US$99m in 2020, and is expected to show an annual growth rate (CAGR 2020-2025) of 16.6%, resulting in a projected market volume of US$214m by 2025.
In view of the negative impact of the Group’s revenue and profit under COVID-19 pandemic, we consider that this MOU is expected to bring long-term strategic value to the Group and diversify its business portfolio into the PRC if any form of collaboration above can be crystalized. We will make necessary announcements according to Listing Rules of Hong Kong Stock Exchange Limited when there is a further development of this potential cooperation.