Investor Relations

◆NowNews Digital Media Technology Reports FY 2015 Financial Results

04/01/2016

Taipei City, Taiwan, April 1, 2016-- NowNews Digital Media Technology Co. Ltd. (“NowNews” or “the Company”) (OTCQB: NDMT), a new media company that provides news, information, and multimedia platform service, released its financial results of the fiscal year ended December 31, 2015.

Fiscal Year 2015 Highlights

• Gross margin was 40% for the year ended December 31, 2015 as compared to 38% for the prior year.

“We have effectively executed on our business strategy by signing letter of intent with Beijing New Tong Ying Culture Media Co., Ltd and signing an agreement with Mr. Science during the year of 2015 , augmenting our services and expanding the business, which would lead up to a strategic transformation” said Alan Chen, Chairman of the Company.

“This year we are still keeping our focus on strategic transformation and looking to establish more cooperation with other media platforms to increase our international presence” said Shuo-Wei Shih, CEO of the Company.

Fiscal Year 2015 Results

Net Revenue

For the fiscal year 2015, NowNews reported net revenue of $2.46 million, a decrease of 16% from $2.93 million for the year 2014. The decrease was primarily due to the decrease in licensing and services revenue and E-commerce revenue and advertisement revenue.

--Advertising

During the fiscal year ended December 31, 2015, the revenue from advertising was $2.27 million, a decrease of 4% from $2.36 million for the year ended December 31, 2014. The Company continues focus on the internet advertising and marketing business.

--Licensing

Revenue from content licensing was $0.19 million for the year ended December 31, 2015, a decrease of 37% from $0.30 million for the year ended December 31, 2014. The decrease was primarily due to the termination of low-profit news editing services to Yahoo Taiwan. Such services were supplementary to the Company’s licensing arrangements with them.

--E-commerce

Revenue from E-commerce was $2,117 for the year ended December 31, 2015. The Company terminated this business at the end of 2015.

Cost of Revenue

Cost of revenue was $1.47 million for the year ended December 31, 2015, compared to $1.82 million for the year ended December 31, 2014, a decrease of $0.35 million, or 19%. The decrease was mainly due to a decrease of $0.23 million in cost of goods sold in E-commerce and $0.10 million in advertisement cost.

Gross Profit

Gross profit decreased approximately $0.13 million, a decrease of 12% as compared to last year due to the substantial decrease in net revenue. Gross profit margin was 40% for the year ended December 31, 2015 as compared to 38% for the prior year.

Selling Expenses

Selling expenses decreased by 16% from $0.61 million for the year ended December 31, 2014 to $0.51 million for the year ended December 31, 2015. The decrease in selling expenses was primarily due to the decrease in labor costs resulting from the decrease in the number of salespersons.

General and Administrative Expenses

General and administrative expenses decreased by 28% from $1.38 million for the year ended December 31, 2014 to $1.00 million for the year ended December 31, 2015. The decrease in general and administration expenses was principally due to the decrease in payroll resulting from reduction in the number of employees.

Interest Expense

Interest expense for the year ended December 31, 2015 was $4,337 compared to $25,103 for the year ended December 31, 2014, a decrease of 83%. The decrease in interest expense was primarily due to reduced bank loans incurred for the year ended December 31, 2015 as compared with the year ended December 31, 2014 as the Company repaid the bank loans in full in February, 2015.

Net Loss

As a result of the above factors, the Company has net loss of approximately $0.59 million for the year ended December 31, 2015 as compared to net loss of approximately $0.91 million for the year ended December 31, 2014, representing a decrease of loss of approximately $0.32 million or approximately 35%.

Cash, Liquidity and Financial Position

As of December 31, 2015, cash and cash equivalents were $0.30 million, compared to $0.07 million at the end of 2014. The Company had a working capital deficit of $0.50 million at December 31, 2015, with $0.84 million of current assets and $1.34 million of current liabilities. The Company believes it can successfully secure financing to meet all working capital and capital expenditure needs for the next twelve months. However, there can be no guarantee that the Company will succeed in raising additional financing.

About NowNews Digital Media Technology Co. Ltd.

NowNews Digital Media Technology Co. Ltd. (OTCQB: NDMT) is a U.S.-listed holding company, through its subsidiaries, engaging in creating, collecting and distributing news and information through its website and applications on mobile phones or tablets. NowNews is also the largest online self-produced news content provider of Taiwan and the only Taiwanese online news website fully accessible in Mainland China. After launched Professional Category news brands, we launched Nownews Mobile Web and Apps. In July 2013, Nownews launched a new concept newspaper “NOWnews”, which is the first O2O case in Taiwan. Nownews owns a great amount of brands, such as the largest online self-produced news content provider「NOWnews」, the biggest Citizen Journalist platform「WEnews」, online video shopping website「NOWshopping」, etc. Its partners include CCTV, Yahoo, MSN, Hinet, Yam, Sina and other telecoms operators.

Forward-Looking Statements

This news release contains “forward-looking statements”, which may include, but is not limited to, statements that express the company’s intentions, beliefs, expectations, strategies, predictions or any other statements relating to its future activities or other future events or conditions. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Nownews Digital Media Technology Co. Ltd. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Nownews Digital Media Technology Co. Ltd. disclaim, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

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