Investor Relations

◆NowNews Digital Media Technology Reports FY 2016 Financial Results

05/03/2017

Taipei City, Taiwan, May 3, 2017-- -- NowNews Digital Media Technology Co., Ltd. (“NDMT” or “the Company”) (OTCQB: NDMT), a media company that provides news and multimedia platform services, today released its financial results of the fiscal year ended December 31, 2016.

Fiscal Year 2016 Highlights

• Net Revenue was $3.12 million for the fiscal year 2016, an increase of $0.66 million or 27% from $2.46 million for the year ended December 31, 2015.

“In year 2016, by pivoting the core business on internet advertising and news content licensing, our net revenue increased by 27%,” Shuo-Wei Shih, CEO of NDMT said. “Our efforts to expand the Company’s business in 2016 are expected to be reflected this year.”

Fiscal Year 2016 Results

Net Revenue

For the fiscal year 2016, NDMT reported net revenue of $3.12 million an increase of $0.66 million or 27% from $2.46 million for the year ended December 31, 2015. The increase was primarily due to the increase in licensing and services revenue and advertisement revenue.

--Advertising

During the fiscal year ended December 31, 2016, the revenue from advertising was $2.86 million, an increase of $0.59 million, or 26%, from $2.27 million for the year ended December 31, 2015. The Company continues focus on the internet advertising and marketing business.

--Licensing

Revenue from content licensing was $0.26 million for the year ended December 31, 2016, an increase of $0.07 million, or 34%, from $0.19 million for the year ended December 31, 2015. The increase was primarily due to increase the authorize news to new customers.

Cost of Revenue

Cost of revenue was $2.17 million for the year ended December 31, 2016, an increase of $0.70 million, or 47%, as compared to $1.47 million for the year ended December 31, 2015. The increase was mainly due to the increase of $0.53 million in advertisement cost and $0.17 million in labor cost.

Gross Profit

Gross profit decreased approximately $0.04 million, or 4%, for the year ended December 31, 2016, as compared to the same period in 2015, due to the substantial increase in cost of revenue. Gross profit margin was 30% for the year ended December 31, 2016 as compared to 40% for the same period in 2015.

Selling Expenses

Selling expenses increased by $0.1 million, or 20%, from $0.51 million for the year ended December 31, 2015, to $0.61 million for the year ended December 31, 2016. The increase in selling expenses was primarily due to the increase in labor costs resulting from the increase in the number of salespersons.

General and Administrative Expenses

General and administrative expenses increased by approximately $0.07 million, or 7%, from $1 million for the year ended December 31, 2015 to $1.07 million for the year ended December 31, 2016. The increase in general and administration expenses was principally due to the increase in the number of employees.

Net Loss

As a result of the above factors, the Company has net loss of approximately $3.70 million for the year ended December 31, 2016 as compared to net loss of approximately $0.59 million for the year ended December 31, 2015, representing an increase of loss of approximately $3.10 million, or approximately 524%.

Cash, Liquidity and Financial Position

As of December 31, 2016, cash and cash equivalents were $244,691, a decrease of $56,514, or 19% from $301,205 as of December 31, 2015. The Company had a working capital deficit of $ 858,428 at December 31, 2016, with $0.92 million of current assets and $1.78 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. is a U.S.-listed media holding company focusing on the global Chinese market. The Company's holdings in the media space include digital media, movie production and distribution, and music copyright. The digital media business engages in creating, collecting and distributing news and information through its website and applications on mobile phones or tablets. The Company’s subsidiary NOWnews is the largest online self-produced news content provider of Taiwan and the only Taiwanese online news website fully accessible in Mainland China. The movie production and distribution business engages in Internet movie, Internet drama and Internet show production, foreign movie import and production, movie marketing and advertising, and Internet personality business. The Company’s music copyright business owns copyright to more than 3000 hit pop songs and provides a full range of Karaoke products. In addition, the Company has investments in the banking industry in Southeast Asia.

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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