Investor Relations

◆NowNews Digital Media Technology Reports FY 2017 Second Quarter Results

08/17/2017

Taipei City, Taiwan, August 17, 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 for the second quarter of 2017.

Second Quarter 2017 Highlights

• Net revenue was $1.03 million, an increase of $0.18 million, or 21%, from $0.85 million for the three months ended June 31, 2016.

• Advertising Revenue was $0.98 million for the three months ended June 30, 2017, an increase of $0.20 million, or 24%, from $0.78 million for the three months ended June 30, 2017.

“We are glad to see a steady growth in our advertisement business,” Shuo-Wei Shih, CEO of NDMT said. “And we are also glad to see more investors showing interest in the Company.”

Second Quarter 2017 Results

Net Revenue

Net revenue for the three months ended June 30, 2017 was $1.03 million, an increase of $0.18 million, or 21%, from $0.85 million for the three months ended June 31, 2016. The increase was primarily due to the increase in advertisement revenue.

--Advertising

The advertising revenue was $0.98 million for the three months ended June 30, 2017, an increase of $0.20 million, or 24%, from $0.78 million for the three months ended June 30, 2017. We will continue focus on the Internet advertising and marketing business.

--Licensing

The revenue from content licensing was $0.05 million for the three months ended June 30, 2017, relatively the same with the result for the three months ended June 30, 2016.

Cost of Revenue

Cost of revenue was $0.94 million for the three months ended June 30, 2017, an increase of $0.39 million, or 69%, as compared to $0.55 million for the three months ended June 30, 2016. The increase was primarily attributable to the increase of $0.21 million in labor costs and $0.15 million in advertisement costs.

Gross Profit

Gross profit decreased approximately $0.20 million, or 69%, to $0.09 million for the three months ended June 30, 2017, as compared to $0.29 million for the same period in 2016, mainly due to the increase in cost of revenue. Gross profit margin was 9% for the three months ended June 30, 2017 as compared to 35% for the same period in 2016.

Selling Expenses

The amount increased by $0.14 million, or 93%, from $0.16 million for the three months ended June 30, 2016, to $0.30 million for the three months ended June 30, 2017. The increase in selling expenses was primarily due to the increase in performance bonus for salespersons.

General and Administrative Expenses

General and administrative expenses increased by approximately $0.16 million, or 60%, from $0.26 million for the three months ended June 30, 2016 to $0.42 million for the three months ended June 30, 2017. The increase in general and administration expenses was principally due to the increase in office rent and payroll expenses.

Net Loss

Net loss is approximately $0.63 million for the three months ended June 30, 2017 as compared to net loss of approximately $3.09 million for the three months ended June 30, 2016, representing a decrease of loss of $2.46 million, or approximately 80%.

Cash, Liquidity and Financial Position

As of June 30, 2017, cash and cash equivalents were $667,340, compared to $244,691 at the end of 2016. The Company had a working capital deficit of $761,935 at June 30, 2017, with $1.50 million of current assets and $2.26 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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