GUANGZHOU CITY, China, Aug. 16 /PRNewswire-Asia-FirstCall/ --
-- Online video customers increased 136% year-to-date for fiscal year 2010
-- Cloud computing customers up 32% in July 2010 with 4,526 new cloud
computing subscribers added in last four months
-- Over $65 million on annualized revenues from the two combined services
-- Company launches new Group Buy Network for its online video customers
Subaye, Inc. (Nasdaq: SBAY) ("Subaye" or the "Company"), a leading
outsourced marketing services provider in China engaged in online video
advertising and cloud computing business solutions, announced today it had
38,324 paying online video advertising customers as of July 31st, 2010, an
increase of 11.5% for the month of July 2010. This represents an increase of
136% year-to-date for its fiscal year ending September 30, 2010, and an
increase of 74% since the Company's second fiscal quarter ended March 31, 2010.
The current level of 38,324 paying online advertising members generates a
monthly run rate of approximately $4.5 million in revenues per month, or $53.8
million annually.
Subaye saw strong new paying member growth from both its largest province
of Guangdong and from its new markets. In July, it added 564 subscribers in
Guangdong Province, where Subaye has the largest base of paying subscribers.
Meanwhile, in July it added 2,736 new subscribers in 5 new regions: Anhui,
Chongqing, Fujian, Jiangxi, and Zhejiang. Fiscal year-to-date, new member
growth in Guangdong Province is up 42% while it added 15,343 new subscribers
in new provinces since the beginning of fiscal 2010.
Number of Paying Subscribers Growth Rate
Regions: 9/30/09 3/31/09 6/30/10 7/31/10 6/30-7/31 FY 2010
To Date
Guangdong 16,211 16,998 22,417 22,981 3% +42%
Hong Kong -- 1,361 1,361 1,412 4% --
Taiwan -- 739 739 809 9% --
Hunan -- 2,921 2,921 3,298 13% --
Hainan -- -- 3,133 3,196 2% --
Hubei -- -- 3,811 3,892 2% --
Anhui -- -- -- 545 -- --
Chongqing -- -- -- 471 -- --
Fujian -- -- -- 373 -- --
Jiangxi -- -- -- 342 -- --
Zhejiang -- -- -- 1,005 -- --
Total 16,211 22,019 34,382 38,324 11.5% +136%
Cloud Computing (CC)
Since Subaye started promoting its Cloud Computing services in March 2010,
it has increased the number of paying subscribers to 9,726, an increase of
4,526, or 87%. Growth has accelerated month-over-month in every month since
March, increasing by 4% in April, 15% in May, 18% in June, and 32% in July.
The cost-effective and easy-to-use functionality of Subaye's Cloud Computing
services is the primary driver of the ramp in subscriber growth. The Company
continues to see higher sales productivity from its expanded sales force. The
9,726 paying customers at July 31, 2010 generates approximately $1 million of
revenues per month, or $11.7 million per year.
"We are very pleased with the tremendous growth in both our online
platforms - video showcase and cloud computing," stated Mr. Zhiguang Cai,
Chief Executive Officer of Subaye, Inc. "We are especially encouraged about
the growth in new markets such as Chongqing, Fujian, Zhejiang. It is further
evidence that Subaye is gaining share in the burgeoning online services market.
As we introduced more value-added services and expand into new regions, we
expect further growth for new and existing customers."
Group Buy Network
Subaye is focused on strategically expanding its rapidly growing online
video advertising business, http://www.subaye.com . Subaye's strategy is to
focus exclusively on the flourishing Small and Medium Enterprises (SMEs)
market throughout Greater China while leveraging multiple initiatives to sell
additional value added services to existing and new customers thus monetizing
the customer base.
In addition to providing its customers with production, upload, storage,
and publishing onto video sharing websites, Subaye continues to help increase
the profile and value of its clients through its cloud computing product,
which provides them with a cost-effective, user friendly and scalable solution
to manage their customer and supplier information.
On August 10, the Company launched a new service program called "Group Buy
Network" ( http://cn.subaye.com/groupon/ ) for its existing online video
customers to use for free until December 31, 2010. The new platform provides a
forum for Subaye customers to secure a sale and build incidental brand
goodwill and awareness. Subaye provides a forum for the sale of a particular
unit volume of a certain product or service to be sold by a certain
predetermined deadline. Online shoppers can approach Subaye's customers to
purchase the specified product or service at a significant discount by buying
the specific product or service at a predetermined volume and price by acting
as a group to meet the volume requirements necessary to generate enough profit
for Subaye's customer to justify the lower sales price. The entire group
agrees to purchase the same item. The shoppers benefit by paying less, and the
business benefits by increasing revenues and profits.
"We expect this new initiative to increase the presence and awareness of
Subaye among the burgeoning Small and Medium Enterprises market," stated Mr.
Zhiguang Cai, Chief Executive Officer of Subaye, Inc. "Subaye's web portal,
http://www.subaye.com , is a leading online video B2B2C advertising website in
China. Subaye anticipates the new Group Buy Network could yield a substantial
number of new customers annually who would utilize the forum to advertise
their products and services over the internet."
About Subaye, Inc.
Subaye, Inc. is a leading outsourced marketing services provider in China
engaged in online video advertising and cloud computing business solutions.
Subaye's online video advertising network provides production, upload, storage,
and publishing onto video sharing websites. Subaye also offers cloud computing
business solutions, group buy networking, and is in the process of developing
an online mall with 3D imaging throughout the online customer interface.
Visitors of Subaye's websites, namely, http://www.subaye.com, view video
showcases of Subaye members, primarily small to mid-size enterprises ("SMEs"),
and select products or services they wish to purchase. Paying members
utilizing Subaye's video advertising platform pay a membership fee of
approximately $117.0 per month. The Company previously conducted a trade
services and an entertainment media business. For further information on
Subaye, Inc., please visit http://www.subaye.net .
Forward-Looking Statements
Certain statements contained herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are based on current expectations,
estimates and projections about Subaye, Inc.'s industry, management's beliefs
and certain assumptions made by management. Readers are cautioned that any
such forward-looking statements are not guarantees of future performance and
are subject to certain risks, uncertainties and assumptions that are difficult
to predict. Because such statements involve risks and uncertainties, the
actual results and performance of the Company may differ materially from the
results expressed or implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements. Subaye, Inc.'s operations are conducted in the
People's Republic of China ("PRC") and, accordingly, are subject to special
considerations and significant risks not typically associated with companies
in North America. These include risks associated with, among others, the
political, economic and legal environment and foreign currency exchange. The
Company's results may be adversely affected by changes in the political and
social conditions in the PRC and by changes in governmental policies with
respect to laws and regulations, anti-inflationary measures, currency
conversion, remittances abroad, and rates and methods of taxation. Other
potential risks and uncertainties include but are not limited to the ability
to procure, properly price, retain and successfully complete projects, and
changes in products and competition. Unless otherwise required by law, the
Company also disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions to the
forward-looking statements made here. Readers should review carefully reports
or documents the Company files periodically with the Securities and Exchange
Commission.
For more information, please contact:
Company:
James Crane
Chief Financial Officer
P.R.C. Cell: +86-186-2136-3580
U.S. Office: +1-617-209-4199
Investor Relations:
Ted Haberfield
HC International, Inc.
Tel: +1-760-755-2716 (US)
Email: thaberfield@hcinternational.net
Web: http://www.hcinternational.net
SOURCE Subaye, Inc.