US Market News
3日前
Trip.com Group Limited Reports Unaudited First Quarter of 2026 Financial ResultsJune 24, 2026 6:00 PM
PR Newswire (US) SINGAPORE, June 24, 2026 /PRNewswire/ -- Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) ("Trip.com Group" or the "Company"), a leading global one-stop travel service provider of accommodation reservation, transportation ticketing, packaged tours, and corporate travel management, today announced its unaudited financial results for the first quarter of 2026.Key Highlights for the First Quarter of 2026 and Preliminary Outlook for the Second Quarter of 2026Trip.com Group reported solid financial results in the first quarter of 2026
- Total net revenues increased by 17% year-over-year to RMB16.2 billion (US$2.4 billion), primarily driven by resilient travel demand.International business sustained robust growth across all segments in the first quarter of 2026
- Gross bookings on the Company's international platform increased by approximately 65% year-over-year.
- Inbound travel bookings surged by approximately 90% year-over-year.For the second quarter of 2026, the Company expects year-over-year total net revenue growth to decelerate to approximately 3%–8%, with a corresponding impact on margins and bottom-line results"Inbound travel continues to gain momentum, creating meaningful opportunities across the travel value chain and contributing to local economic development," said James Liang, Executive Chairman. "Through continued investment in technology, product innovation, and destination enablement, we help improve connectivity between global travelers and local services. We remain committed to strengthening destination readiness and ecosystem connectivity, helping unlock the full potential of inbound travel and create long-term value for all stakeholders. As travel continues to evolve, we remain optimistic about the industry's future and committed to serving as a trusted partner for its long-term development.""The travel market remained resilient in the first quarter of 2026, supported by continued growth in international travel demand and rising interest in more personalized travel experiences," said Jane Sun, Chief Executive Officer. "To meet these evolving needs, we have worked closely with local partners to make travel more accessible and seamless. Through technology, AI-powered solutions, and targeted destination initiatives, we help travelers overcome language and information barriers while enabling more suppliers to connect with global demand, including many participating in international travel for the first time. Looking ahead, we will continue to strengthen our partner ecosystem and help more destinations and suppliers benefit from the growth of international travel."First Quarter of 2026 Financial Results and Business UpdatesFor the first quarter of 2026, Trip.com Group reported total net revenues of RMB16.2 billion (US$2.4 billion), representing a 17% increase from the same period in 2025, primarily driven by resilient travel demand. Total net revenues for the first quarter of 2026 increased by 5% from the previous quarter, primarily due to seasonality.Accommodation reservation revenue for the first quarter of 2026 was RMB6.5 billion (US$944 million), representing a 17% increase from the same period in 2025, primarily driven by an increase in accommodation reservations. Accommodation reservation revenue for the first quarter of 2026 increased by 4% from the previous quarter, primarily due to seasonality.Transportation ticketing revenue for the first quarter of 2026 was RMB6.1 billion (US$877 million), representing a 12% increase from the same period in 2025, primarily driven by an increase in transportation reservations. Transportation ticketing revenue for the first quarter of 2026 increased by 13% from the previous quarter, primarily due to seasonality.Packaged-tour revenue for the first quarter of 2026 was RMB1.1 billion (US$164 million), representing a 19% increase from the same period in 2025, primarily driven by an increase in packaged-tour reservations. Packaged-tour revenue for the first quarter of 2026 increased by 7% from the previous quarter, primarily due to seasonality.Corporate travel revenue for the first quarter of 2026 was RMB690 million (US$100 million), representing a 20% increase from the same period in 2025, primarily driven by an increase in corporate travel reservations. Corporate travel revenue for the first quarter of 2026 decreased by 15% from the previous quarter, primarily due to seasonality.Cost of revenue for the first quarter of 2026 increased by 23% to RMB3.3 billion (US$483 million) from the same period in 2025 and increased by 3% from the previous quarter, which was generally in line with the fluctuations in total net revenues from the respective periods. Cost of revenue as a percentage of total net revenues was 21% for the first quarter of 2026.Product development expenses for the first quarter of 2026 increased by 15% to RMB4.1 billion (US$589 million) from the same period in 2025 and increased by 1% from the previous quarter, primarily due to the increase in product development personnel related expenses. Product development expenses as a percentage of total net revenues were 25% for the first quarter of 2026.Sales and marketing expenses for the first quarter of 2026 increased by 25% to RMB3.7 billion (US$543 million) from the same period in 2025 and decreased by 15% from the previous quarter, primarily due to the fluctuations in expenses relating to sales and marketing promotion activities. Sales and marketing expenses as a percentage of total net revenues were 23% for the first quarter of 2026.General and administrative expenses for the first quarter of 2026 increased by 8% to RMB1.1 billion (US$163 million) from the same period in 2025 and decreased by 6% from the previous quarter. General and administrative expenses as a percentage of total net revenues were 7% for the first quarter of 2026.Income tax expense for the first quarter of 2026 was RMB893 million (US$129 million), compared to RMB638 million for the same period in 2025 and RMB835 million for the previous quarter. The change in Trip.com Group's effective tax rate was primarily due to the combined impacts of changes in respective profitability of its subsidiaries with different tax rates, changes in deferred tax liabilities relating to withholding tax, certain non-taxable income or loss resulting from the fair value changes in equity securities investments and exchangeable senior notes recorded in other income, and changes in valuation allowance provided for deferred tax assets.Net income for the first quarter of 2026 was RMB2.5 billion (US$367 million), compared to RMB4.3 billion for the same period in 2025 and RMB4.3 billion for the previous quarter. Adjusted EBITDA for the first quarter of 2026 was RMB4.8 billion (US$701 million), compared to RMB4.2 billion for the same period in 2025 and RMB3.4 billion for the previous quarter.Net income attributable to Trip.com Group's shareholders for the first quarter of 2026 was RMB2.5 billion (US$363 million), compared to RMB4.3 billion for the same period in 2025 and RMB4.3 billion for the previous quarter. Excluding share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes recorded in other income, and their tax effects, non-GAAP net income attributable to Trip.com Group's shareholders for the first quarter of 2026 was RMB3.9 billion (US$568 million), compared to RMB4.2 billion for the same period in 2025 and RMB3.5 billion for the previous quarter.Diluted earnings per ordinary share and per ADS was RMB3.67 (US$0.53) for the first quarter of 2026. Excluding share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes recorded in other income, and their tax effects, non-GAAP diluted earnings per ordinary share and per ADS was RMB5.73 (US$0.83) for the first quarter of 2026. Each ADS currently represents one ordinary share of the Company.As of March 31, 2026, the balance of cash and cash equivalents, restricted cash, short-term investment, and held to maturity time deposit and financial products was RMB104.0 billion (US$15.1 billion).Recent DevelopmentThe Company is and has been the subject of investigations or inquiries by national authorities regarding competition law matters, consumer protection issues, and other areas. While the Company is unable to predict the outcome of any current or future investigations, litigation or inquiries, it remains focused on maintaining robust compliance and governance standards.In January 2026, the Company received a notice of investigation from the State Administration for Market Regulation ("SAMR") that it had commenced an investigation into whether the Company has abused or is abusing a dominant market position to engage in monopolistic conduct pursuant to the PRC Anti-Monopoly Law. As of the date of this press release, the Company is fully cooperating with the SAMR in its ongoing investigation, including by actively providing supplementary information and documentation, and will continue to engage constructively with the SAMR on compliance with regulatory requirements. Although the Company is currently unable to predict the timing, outcome or consequences of the investigation, or estimate the possible loss, that may be associated with it, the Company will continue to monitor developments closely. The SAMR's investigation findings could directly result in a significant fine, other financial penalties and/or changes to the Company's business practices and may have a material adverse effect on the Company's consolidated financial position, results of operations, or cash flows. The Company remains committed to continuously reviewing its business practices while providing high-quality products and services to users and partners worldwide.Business OutlookFor the second quarter of 2026, the Company expects net revenue to grow by approximately 3%–8% year -over-year. Compared with the first quarter, the slower pace of growth is expected to have a corresponding impact on margins and bottom-line results. This reflects direct and indirect impacts from macro headwinds such as elevated energy pricing and geopolitical volatility, alongside operational adjustments the Company implemented to align with evolving industry standards and compliance frameworks. This forecast represents Trip.com Group's current and preliminary view based on the information available to it as of the date of this press release, and is subject to change and may be different from the second quarter financial results to be published in-due-course.Conference CallTrip.com Group's management team will host a conference call at 8:00 PM on June 24, 2026, U.S. Eastern Time (or 8:00 AM on June 25, 2026, Hong Kong Time) following this announcement.The conference call will be available live on Webcast and for replay at: https://investors.trip.com. The call will be archived for twelve months on our website.All participants must pre-register to join this conference call using the Participant Registration link below:
https://register-conf.media-server.com/register/BI474cf1d2cafe4883828d22dcfc4b7d15.Upon registration, each participant will receive details for this conference call, including dial-in numbers and a unique access PIN. To join the conference, please dial the number provided, enter your PIN, and you will join the conference instantly.Safe Harbor StatementThis announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "may," "will," "expect," "anticipate," "future," "intend," "plan," "believe," "estimate," "is/are likely to," "confident," or other similar statements. Among other things, quotations from management in this press release, as well as Trip.com Group's strategic and operational plans, contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, severe or prolonged downturn in the global or Chinese economy, general declines or disruptions in the travel industry, volatility in the trading price of Trip.com Group's ADSs or shares, Trip.com Group's reliance on its relationships and contractual arrangements with travel suppliers and strategic alliances, failure to compete against new and existing competitors, failure to successfully manage current growth and potential future growth, risks associated with any strategic investments or acquisitions, seasonality in the travel industry in the relevant jurisdictions where Trip.com Group operates, failure to successfully develop Trip.com Group's existing or future business lines, damage to or failure of Trip.com Group's infrastructure and technology, loss of services of Trip.com Group's key executives, adverse changes in economic and business conditions in the relevant jurisdictions where Trip.com Group operates, any regulatory developments in laws, regulations, rules, policies or guidelines applicable to Trip.com Group, any investigation, enforcement or legal/administrative proceeding against Trip.com Group in connection with its business operation and other risks outlined in Trip.com Group's filings with the U.S. Securities and Exchange Commission or the Stock Exchange of Hong Kong Limited. All information provided in this press release and in the attachments is as of the date of the issuance, and Trip.com Group does not undertake any obligation to update any forward-looking statement, except as required under applicable law.About Non-GAAP Financial MeasuresTo supplement Trip.com Group's consolidated financial statements, which are prepared and presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Trip.com Group uses non-GAAP financial information related to adjusted net income attributable to Trip.com Group Limited, adjusted EBITDA, adjusted EBITDA margin, and adjusted diluted earnings per ordinary share and per ADS, each of which is adjusted from the most comparable GAAP result to exclude the share-based compensation charges that are not tax deductible, fair value changes of equity securities investments and exchangeable senior notes recorded in other income, net of tax, and other applicable items. Trip.com Group's management believes the non-GAAP financial measures facilitate better understanding of operating results from quarter to quarter and provide management with a better capability to plan and forecast future periods.Non-GAAP information is not prepared in accordance with GAAP, does not have a standardized meaning under GAAP, and may be different from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for GAAP results. A limitation of using non-GAAP financial measures is that non-GAAP measures exclude share-based compensation charges, fair value changes of equity securities investments and exchangeable senior notes recorded in other income, and their tax effects that have been and will continue to be significant recurring expenses in Trip.com Group's business for the foreseeable future.Reconciliations of Trip.com Group's non-GAAP financial data to the most comparable GAAP data included in the consolidated statement of operations are included at the end of this press release.About Trip.com Group LimitedTrip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) is a leading global one-stop travel platform, integrating a comprehensive suite of travel products and services and differentiated travel content. It is the go-to destination for many travelers in Asia, and increasingly for travelers around the world, to explore travel, get inspired, make informed and cost-effective travel bookings, enjoy hassle-free on-the-go support, and share travel experience. Founded in 1999 and listed on Nasdaq in 2003 and HKEX in 2021, the Company currently operates under a portfolio of brands, including Ctrip, Qunar, Trip.com, and Skyscanner, with the mission "to pursue the perfect trip for a better world."For further information, please contact:Investor Relations
Trip.com Group Limited
Email: iremail@trip.com Trip.com Group Limited
Unaudited Consolidated Balance Sheets
(In millions, except share and per share data)
December 31, 2025
March 31, 2026
March 31, 2026
RMB (million)RMB (million)USD (million)
ASSETS
Current assets:
Cash, cash equivalents and restricted cash
46,451
57,124
8,281
Short-term investments
32,007
23,892
3,464
Accounts receivable, net
15,241
16,294
2,362
Prepayments and other current assets
27,351
25,990
3,768
Total current assets
121,050
123,300
17,875
Property, equipment and software
5,445
5,660
820
Intangible assets and land use rights
13,013
12,979
1,882
Right-of-use asset
881
835
121
Investments (Includes held to maturity time deposit and financial products of RMB27,302 million and RMB22,951 million as of December 31,2025 and March 31, 2026, respectively)
61,375
54,791
7,943
Goodwill
62,268
62,222
9,020
Other long-term assets
600
492
71
Deferred tax asset
2,755
2,934
425
Total assets
267,387
263,213
38,157
LIABILITIES
Current liabilities:
Short-term debt and current portion of long-term debt
19,335
20,087
2,912
Accounts payable
19,150
19,987
2,897
Advances from customers
18,185
18,917
2,742
Other current liabilities
21,499
21,605
3,132
Total current liabilities
78,169
80,596
11,683
Deferred tax liability
3,949
4,091
593
Long-term debt
11,430
10,742
1,557
Long-term lease liability
585
542
79
Other long-term liabilities
654
519
75
Total liabilities
94,787
96,490
13,987
MEZZANINE EQUITY
131
136
20
SHAREHOLDERS' EQUITY
Total Trip.com Group Limited shareholders' equity
170,818
165,000
23,920
Non-controlling interests
1,651
1,587
230
Total shareholders' equity
172,469
166,587
24,150
Total liabilities, mezzanine equity and shareholders' equity
267,387
263,213
38,157 Trip.com Group Limited
Unaudited Consolidated Statements of Income
(In millions, except share and per share data)
Quarter ended
Quarter ended
Quarter ended
Quarter ended
March 31, 2025
December 31, 2025
March 31, 2026
March 31, 2026
RMB (million)
RMB (million)
RMB (million)
USD (million)
Net Revenues:
Accommodation reservation
5,541
6,287
6,510
944
Transportation ticketing
5,418
5,368
6,050
877
Packaged-tour
947
1,056
1,130
164
Corporate travel
573
808
690
100
Others
1,351
1,879
1,828
265
Total net revenues
13,830
15,398
16,208
2,350
Cost of revenue
(2,705)
(3,240)
(3,330)
(483)
Product development *
(3,525)
(4,028)
(4,062)
(589)
Sales and marketing *
(2,999)
(4,398)
(3,747)
(543)
General and administrative *
(1,038)
(1,198)
(1,124)
(163)
Income from operations
3,563
2,534
3,945
572
Interest income
640
679
563
82
Interest expense
(286)
(115)
(115)
(17)
Other income
1,137
2,038
176
26
Income before income tax expense and equity in loss of affiliates
5,054
5,136
4,569
663
Income tax expense
(638)
(835)
(893)
(129)
Equity in loss of affiliates
(102)
(28)
(1,151)
(167)
Net income
4,314
4,273
2,525
367
Net (income)/loss attributable to non-controlling interests and mezzanine classified non-controlling interests
(37)
18
(19)
(3)
Accretion to redemption value of redeemable non-controlling interests
-
(10)
(7)
(1)
Net income attributable to Trip.com Group Limited
4,277
4,281
2,499
363
Earnings per ordinary share
- Basic
6.48
6.53
3.85
0.56
- Diluted
6.09
6.11
3.67
0.53
Earnings per ADS
- Basic
6.48
6.53
3.85
0.56
- Diluted
6.09
6.11
3.67
0.53
Weighted average ordinary shares outstanding
- Basic
660,203,576
655,910,664
648,991,284
648,991,284
- Diluted
702,144,923
700,452,261
681,679,206
681,679,206
* Share-based compensation included in expenses above is as follows:
Product development
220
304
363
53
Sales and marketing
41
67
66
10
General and administrative
219
293
262
38 Trip.com Group Limited
Unaudited Reconciliation of GAAP and Non-GAAP Results
(In millions, except %, share and per share data)
Quarter ended
Quarter ended
Quarter ended
Quarter ended
March 31, 2025
December 31, 2025
March 31, 2026
March 31, 2026
RMB (million)
RMB (million)
RMB (million)
USD (million)
Net income
4,314
4,273
2,525
367
Less: Interest income
(640)
(679)
(563)
(82)
Add: Interest expense
286
115
115
17
Less: Other income
(1,137)
(2,038)
(176)
(26)
Add: Income tax expense
638
835
893
129
Add: Equity in loss of affiliates
102
28
1,151
167
Income from operations
3,563
2,534
3,945
572
Add: Share-based compensation
480
664
691
101
Add: Depreciation and amortization
204
217
194
28
Adjusted EBITDA
4,247
3,415
4,830
701
Adjusted EBITDA margin
31 %
22 %
30 %
30 %
Net income attributable to Trip.com Group Limited
4,277
4,281
2,499
363
Add: Share-based compensation
480
664
691
101
Add: (Gain)/loss from fair value changes of equity securities investments and exchangeable senior notes
(526)
(1,673)
876
127
Add: Tax effects on fair value changes of equity securities investments and exchangeable senior notes
(43)
212
(161)
(23)
Non-GAAP net income attributable to Trip.com Group Limited
4,188
3,484
3,905
568
Weighted average ordinary shares outstanding-
Diluted-non GAAP
702,144,923
700,452,261
681,679,206
681,679,206
Non-GAAP Diluted income per share
5.96
4.97
5.73
0.83
Non-GAAP Diluted income per ADS
5.96
4.97
5.73
0.83
Notes for all the condensed consolidated financial schedules presented:
Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the certified exchange rate of USD1.00=RMB6.8980 on March 31, 2026 published by the Federal Reserve Board. View original content:https://www.prnewswire.com/news-releases/tripcom-group-limited-reports-unaudited-first-quarter-of-2026-financial-results-302809167.htmlSOURCE Trip.com Group Limited Original: Trip.com Group Limited Reports Unaudited First Quarter of 2026 Financial Results
happycampers
21年前
Telecom Communications, Inc. Announces Stockhouse.Com Editorial Covers TCOM: 'China, Can You Hear Me Now?' By Danny Deadlock
Danny Deadlock's Research Leads Him to the Far East and a Telecom Company with
the potential of a Billion Served
HONG KONG, Nov. 3 /Xinhua-PRNewswire/ -- Telecom Communications, Inc. (OTC Bulletin Board: TCOM) announced today the release of an independent investor research report published by MicroCap.com on Stockhouse. The report comments upon the explosive growth within the Internet industry in China and specifically highlights the potential for Telecom Communications, Inc. within this industry.
Mr. Danny Deadlock, Publisher and Analyst for MicroCap.com, released the report to present the results of his most recent independent investor research on the Internet industry in China and, specifically, Telecom Communications, Inc.
"I believe Mr. Deadlock's research report offers a complete perspective on the current state of the Internet industry and market. This is the most concise explanation of our market I've seen. He is one of the few independent investor analysts covering the telecom and relating industry," said Shanhe Yang CEO. "I am pleased to see that Mr. Deadlock has commented favorably regarding our investor's opportunity for stock appreciation. In addition we're complimented by his high regard for the work we continue to do in building a world-class organization."
China, Can You Hear Me Now?
Monday, Nov 1, 2004 By Danny Deadlock. The report is available at http://www.stockhouse.com/shfn/editorial.asp?edtid=17408
Telecom Communications (TCOM $0.43)
52 week High $2.36 Low $0.09 Market Cap: $30 million
Too Much Money, Not Enough Players
Thanks to Google and Yahoo, major U.S. Internet players are back in vogue and the few public Chinese internet (or mobile phone services) companies you can find, are commanding huge value as the money rolls in by the truckload. All listed on Nasdaq, SINA ($33.71), SNDA ($31.20), and NTES ($46.06) all boast revenue in the range of $200 million, cash in the range of $100 to $200 million, and market caps in the range of $1.5 billion!
Silicon Valley venture capitalists and several large public companies are dying to tap into the Chinese tech market but they're finding this a tough nut to crack. Earlier this year, Google made a small investment in Baidu (China's largest and most popular search engine), but even after raising only $11 million from venture capitalists, it stated it was profitable and did not need to raise more money at the moment -- words rarely heard on Wall Street. Numerous investment bankers have approached Baidu about a Nasdaq IPO but the company is in no rush after seeing their recent sales quadruple.
Cliff Higgerson, partner at Palo Alto's ComVentures, recently returned from China and is evangelizing his other partners to invest in telecom there. "We feel China is the most important single event in a generation," he says. For years, if not decades, entrepreneurs have dreamed of making it in China, salivating at the prospect of more than a billion people and an economy growing at 9 percent a year."
"China draws more investment capital in a year than India does in a decade," says Ram Shriram, an angel investor and early backer of search engine Google. He has invested mainly in India, but China is grabbing his attention. "It makes the industrial revolution look lame in contrast," he says.
An Insatiable Appetite for Technology
You can understand the enthusiasm. According to the Ministry of Information, China's internet users are estimated to grow to 111 million this year, from 81 million in 2003. With 1.3 billion people, that is only 8.5% of the population. The United States has 300 million people, approximately 60% of which are on the internet. If China internet usage grows to 20%, there will be as many people on the Internet in China as the entire population of the United States.
While the internet potential is staggering even for the few companies that dominate that space in China, the number of mobile phone users is even more impressive. Current statistics show approximately 260 million mobile phones in use and billions of text messages (SMS -- short message service and MMS -- multimedia messaging) sent every month. As availability increases, these numbers will hit staggering proportions.
The Convergence - Mobile Phones and the Internet
Within the last two years, the mobile internet market has grown from 200 million to more than half of the 1.3 billion mobile phones used worldwide -- a revolution some are comparing to the switch from the electric telegraph to the telephone in the last quarter of the 19th century.
According to industry experts, the number of internet-connected mobile phones will soon exceed by a large margin, the number of internet-connected PCs. Analysts estimate the worldwide number of active PCs to be between 500 million and 750 million, well short of that 1.3 billion cell phone figure -- and the gap is going to grow, particularly in places like China, where generations may skip the PC altogether and move directly to smaller mobile units of one type or another.
China based Sina Corp ($1.7 billion market cap) recently announced that its net profit rose 24% in the third quarter because of higher revenue from its new value-added mobile services (revenue in total jumped 65% to $52 million). The Chinese have an estimated 250 million mobile phones in use and unlike North Americans, send Billions of text/instant messages (SMS and MMS) every month. Their dependence upon the mobile phone is equivalent to our dependence upon the computer and it is estimated 30 million new users will arrive every year.
In July 2004, SINA acquired (for approximately $36 million U.S.) a private company with an instant messaging technology platform that was only launched in 2002. Within 2 years that company obtained 80 million registered user accounts. As these China internet companies continue to be acquired by North American corporations (in 2003 it was estimated that Yahoo paid $120 million for 3721 Inter China Network Software), it will drive up the value of those that remain.
Snapshot View of TCOM
The company trades on the OTCBB (OTCBB: TCOM) in the U.S. but only to accommodate the raising of capital and provide liquidity for existing shareholders (see Taikang below). Otherwise this is a pure play on a Chinese based technology company. All management is in China and all clients (at this time) are in China. TCOM specializes in technology for mobile phone applications with an emphasis on short messaging (both text SMS and multimedia MMS). They cover all aspects of the technology and even provide corporations they partner with a call center to support their clients. Their business partners already include some of the largest internet and mobile phone companies in China -- Shanghai Linktone, 5Wan, Tencent, and 3721 (div. of Yahoo). In only a few months of establishing these relationships, TCOM acquired 6 million subscribers for its services.
This is only one aspect of their technologies but the SMS/MMS solution for corporations offers advanced internet, wireless capabilities without the need to install expensive hardware at the customer location. Each user gets a unique code number and an associated web page to manage incoming and outgoing short messages, multimedia messages, phone calls, voice mails and emails with one common interface. The service also allows simple, rapid administration of a company's telecom services, including adding new customers and moving telephone number locations online (VoIP) without the cost of a telecom support department.
End users can consolidate their multiple phone numbers (home, office, mobile) with a single personal telephone number so callers reach them wherever they are. A personal virtual SMS/MMS number handles all incoming faxes. The unified visual mailbox conveniently manages voicemail and faxes just like e- mail. Robust call logs and integration with Microsoft Windows Media Player and Instant Message allow users to make and auto reply questions with just a mouse click.
The Importance of SEO4Mobile (Search Engine Optimization for mobile
phones)
SEO4Mobile appears to be the first service of it's kind offered anywhere for mobile phones. It is very important as most of you may remember that the major search engines in North America (Yahoo and Google for example) could not develop a money making business model until pay per click advertising came along (pioneered by Overture who were bought out by Yahoo for $1.6 billion). Now the major search engines are reporting enormous profits on explosive revenue.
SEO4Mobile offers wireless mobile phone providers the ability to use a short message service (SMS) search feature. Users who enter a relevant keyword or keyword phrase, along with a geographic identifier, can send searches in via an SMS and receive a multimedia response that has been processed through a search engine on the internet. By specifically laying out a separate search SMS for the geographic portion, SEO4Mobile helps structure the search in a simple and efficient way for the searcher.
SEO4Mobile will then parse out its advertiser keyword ads that have a local identifier as it sends them to its distribution partners, thereby returning very targeted results for mobile searches. This augments TCOM's recently announced pay-per-SMS service, as pay-per-search advertisers choose the region in which they wish their advertisements to be displayed.
Pay per click advertising for the search engines has become a multi- billion dollar business and when you consider the importance, and enormous size, of the mobile phone market in China, this technology has the potential to hold tremendous value. Sales in Yahoo's advertising business more than tripled to $765 million, due its acquisition last year of Overture. While the market in China still has a long ways to reach that point, iResearch estimated the country's search market will be worth an estimated $50 million this year and it is expected to grow to $200 million by 2006.
On October 7th it was announced that TCOM's subsidiary Alpha Century Holdings Limited, was applying for multi-country patents on the SEO4Mobile technology. If it is as unique as it appears, and patents can be locked up, the potential market on a global basis is enormous.
The October 22nd addition of AdMaxB2Search
In another important technology launch, the company released an advertiser maximum bid listing system for mobile phone service providers (very similar to what overture developed for it pay per click advertisers on the search engines in North America). AdMaxB2Search was developed specifically for small to mid- sized businesses who want to add valuable advertising content to SEO4Mobile quickly and simply, without impacting their design or operation. Through a step-by-step, wizard-driven set up, TCOM's advertisers and their partners can easily manage their accounts online. Revenue will be shared between TCOM and the advertisers on a pay per click basis. Advertisers who use the service will be given access to SEO4Mobile's 10 million users and 300 service providers.
Basically this is an Overture scenario all over again but for the mobile phone market. With 1.3 billion worldwide, the potential is incredible -- IF they can lock up patents globally. Either way, it has tremendous growth potential in China alone where the number of mobile phone users should reach 300 million by next year. TCOM will generate monthly fixed fees from advertise distributors and earn revenues on a per-search basis."
Rapid Growth Already and the Importance of Baidu
As mentioned above, Baidu is the leading search engine in China and apparently preferred more than 2:1 over Google. Google owns a minority position in Baidu but that stake is being carefully controlled. On October 26th, TCOM's other subsidiary IC Star MMS entered into a partnership agreement with Baidu. Under this partnership, the two companies will contribute equally to develop content and technology that integrates Baidu with SMS/MMS for the mobile phone market. Content such as entertainment and gaming and other new services will then be marketed through the Baidu portal which reaches 90% of the 100 million Chinese Internet users.
Recent media states that Baidu's sales are soaring in part from sponsored links similar to those offered by Google and Yahoo! Revenue apparently doubled in 2004 and is expected to double again in 2005. It wouldn't be surprising to see Baidu and TCOM working closer together on the SEO4Mobile technology as it would rapidly expand the Baidu market to the several hundred million mobile phone users in the country.
Other significant contracts in 2004 (most over the past couple months):
1) Providing customer care services for more than 3,000,000 clients of Taikang Life Insurance. Creates a fixed revenue of $120,000 monthly over 36 months
2) 2-year contract from Results Group Int'l Limited who serve the main betting entertainment clubs in Asia. Providing Results Group racing information, betting ticket care services for approximately 2 million mobile phone internet opt-in users. Revenue of $64,100 monthly over 24 months plus $6,410 monthly in support fees.
3) Provide services to the 1 million readers of Media Group's Hong Kong travel guide
4) 2-year contract from Valuerise Group using SEO4Mobile. Fixed revenue of $100,000 per month over a 24-month period, plus a percentage share of the revenue earned by Valuerise Group and its partners.
5) Signed a cooperation agreement with World-East Development Group to bundle SEO4Mobile with certain mobile phone handsets with free of charge service to customers for a limited time. World-East runs a large retail chain of mobile phone handset and accessories in China. They sell 950,000 units annually and have 400 outlets along with members of an alliance.
Even as a Pure Play on China, TCOM has fallen below Everyone's Radar (for
now)
When you're a small penny stock it's extremely difficult to attract attention (or buying) unless the media finds your story, or a news release grabs the attention of a large brokerage firm. Right now, one of the few ways to play the upcoming China tech boom is through the billion dollar companies mentioned above. Very few (legitimate) penny stocks are managed 100% from China, have 100% of their clients in China, and have large control blocks of their stock held by Chinese corporations. This in itself creates risks, but it's also the reason people pay $0.40 and not $40 at this stage. Often a person can buy a stock like this and hope that within a couple years it might be worth a couple dollars (or more). The same type of percentages on a $40 stock mean watching a share price go from $40 to $200 (very rare -- but not with penny stocks).
With TCOM I've seen it bounce all over the map and the only way to properly speculate on a stock of this nature is to plan for the worst and hope for the best. A person needs patience of 12 to 18 months and the ability to risk losing half your money (or more). All kinds of scenarios beyond your control could have a negative impact on this stock (foreign policy, poor management, market corrections, etc.) and you should never speculate without assuming that problems can, and often will, occur. In assuming this risk, you do so with the "hope" that the greater risk means greater rewards. With the underlying fundamentals of both the company and China itself, there are tremendous growth opportunities here. IF the company is able to fully capitalize on them, the share price will reflect it.
On October 20th, the company did something very smart and announced that an Asian based company would handle Investor Relations for TCOM and promote the story across China and other parts of Asia. They would hold conferences on how Chinese can buy a stock like TCOM, and provide guidebooks and a hotline. This is the first time I have seen this done and as many of you know, the Asian people can be huge risk takers (you only need to visit the tables in Vegas to recognize this). As the Chinese economy continues to boom, more and more locals will be looking for places to invest their money and strong local stories have the potential to attract significant capital.
There are times when this stock provides tremendous liquidity, and other times when it won't trade at all. You have to time purchases very carefully and always remember that some OTC market makers can be ruthless and manipulative. Never buy or sell these stocks using market orders and be prepared for a possible roller coaster. This is a story that appears to have tremendous potential but its share structure could make it subject to extreme volatility at times.
Disclosure: Danny Deadlock owns 15,000 shares of TCOM
About Telecom Communications, Inc.
Telecom Communications, Inc. is a Total Solutions Provider that offers Integrated Communications Network Solutions and Internet Content Service in universal voice, video, data web and mobile communications for interactive media applications, technology and content leaders in interactive multimedia communications. It develops, markets and sells a universal media software solution for enterprise-wide deployment of integrated voice, video, data web and mobile communications and media applications.
Telecom Communications, Inc. does business in Asia via its subsidiaries. Alpha Century Holdings Limited, Huiri Electric (PY) Limited, Arran Services Limited and IC Star MMS, Limited (http://www.icstarmms.com/ ).
About MicroCap.com
Danny Deadlock is the Publisher of MicroCap.com (http://www.microcap.com/) who conducts research and publishes reports on various companies and industries. His research report is published on Stockhouse each week. In addition to the editorial published each week on Stockhouse, Danny Deadlock offers MicroCap Premium which is published throughout the week by email and includes more in-depth research on stocks in their portfolio, new picks throughout the month, and broader market commentary & forecasts.
This announcement contains forward-looking statements that involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the company's limited operating history, the limited financial resources, domestic limited management infrastructure or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, uncertainty that this or any other acquisition can be completed and conditions of equity markets. More information about the potential factors that could affect the company's business and financial results are included in the Company's filings, available via the United States Securities & Exchange Commission.
For more information, please contact:
Mr. Benny Huang of Telecom Communications, Inc.
Tel: +852-2782-0983
Email: pr@icchina.net
Telecom Communications, Inc.
CONTACT: Mr. Benny Huang of Telecom Communications, Inc.,+852-2782-0983, pr@icchina.net
Web site: http://www.stockhouse.com/shfn/editorial.asp?edtid=17408
Source: PRNewswire
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Press Release Source: Telecom Communications, Inc.
TCOM Releases Letter to Shareholders on Forecasted 970% Revenue Growth to Profitable $15 Million in 2005 From 2004 Revenue of $1.4 Million
Tuesday July 5, 1:07 pm ET
HONG KONG, July 5 /Xinhua-PRNewswire/ -- Telecom Communications, Inc. (OTC Bulletin Board: TCOM - News) released a letter to shareholders today from Tim Chen, CEO of Telecom Communications Inc., providing an update to shareholders regarding the Company's progress toward its projected growth from $1.4 million in 2004 revenue to a profitable $15 million in 2005 revenue.
Dear Fellow Shareholders,
On behalf of Telecom Communications, I am pleased to confirm that the Company is on track to achieve our $15 million in profitable revenue goal for 2005. To achieve this goal, we have successfully optimized integration of our existing operations, increased the size of our average sales contracts and continued our joint venture new business development progress. We are meeting expectations in all three categories with the recently announced consolidation in progress of our integration union of telecom wireless value-added business as Alpha Century Total Solutions, Virtual Call Center Stations, SEO4Mobile and IBSv4.1 SME software business, a sales pipeline totaling over $10 million in potential sales from less than 30 prospective contracts and 3G Dynasty, an integration union of our Internet Content Service operations, as multimedia entertainment content on WAP and Web base membership fee a pipeline with over $7 million in annual revenue.
TCOM's business is a Total Solutions Provider that offers Integrated Communications Network Solutions and Internet Content Service in universal voice, video, data web and mobile communications for interactive media applications, technology and content leaders in interactive multimedia communications. It develops, markets and sells a universal media software solution for enterprise-wide deployment of integrated voice, video, data web and mobile communications and media applications. Our growth strategy is to continue developing new service and products on our solid foundation of network, content and technologies to serve existing customers and the largest consumer market in the world.
Following the major success of Alpha's Total Solutions Provider business model, Our 3G Dynasty's excellent business model that is offers strategic intermediary services to entertainment, game developers and telecom carriers to a market serving more than 300 million users has exciting progress begun on the end of March.
TCOM has continually worked to establish a system that can quickly and accurately respond to the market, as well as raise shareholder value by strengthening the development and competitiveness of each business. As part of this strategy, TCOM has been implementing the integration of development, production and sales of each business within the Company.
TCOM has determined that a huge positive impact will be realized from integrating the functions of the various contracted operations lines of business and that as a result, 3G Dynasty Inc. will become more competitive and synergies will be realized between its marketing, product development and sales organizations. It is also projected that as more resources of the Company are built up, the strategic alliance structured, the overall efficiency of Company management will improve, providing even greater shareholder value.
Management does not consider the lack of market capitalization improvement cause for concern at this stage. The Company is growing rapidly and still forecasting dramatic growth in both revenue and profitability. Management anticipates that the market will require a substantial demonstration of progress toward the forecasted growth before the market capitalization will begin to reflect the intrinsic value of TCOM's business. As the Company continues to close on elements of the Total Solution Provider and Internet Contents Service, management expects the equity market will recognize the likelihood that the forecasted $15 million in profitable 2005 revenue is obtainable resulting in an increased market capitalization.
We encourage shareholders and interested investors to learn more about the Company, its business plan and corporate progress. The Company's press release archives provide more detail on the Company's business model and the many initiatives launched to accelerate and expand the business model. We expect our progress to soundly demonstrate the achievability of our forecasted goals and overcome the apparent market doubt reflected in our current share price.
The planning for the integration of TCOM' s total solutions provider-information manager system, SMS/MMS virtual call center CRM systems, SEO4Mobile, SME's software developing and distribution operations is continuing and is expected to be completed this summer. The Company is also in the process of planning a spin-off of the total solutions provider subsidiaries to an IPO, becoming an independently public traded company that will include a dividend distribution of subsidiary stock to all TCOM shareholders. Details will be provided as plan is finalized.
Please do not hesitate to contact the Company at ir@tcom8266.com or 852-2782-0983 to receive more information or to find out about one of the upcoming investor presentations by management.
Sincerely,
Tim T. Chen
CEO and President
Telecom Communications, Inc.
About Telecom Communications, Inc.
Telecom Communications, Inc. is a Total Solutions Provider that offers Integrated Communications Network Solutions and Internet Content Service in universal voice, video, data web and mobile communications for interactive media applications, technology and content leaders in interactive multimedia communications. It develops, markets and sells a universal media software solution for enterprise-wide deployment of integrated voice, video, data web and mobile communications and media applications. Telecom Communications, Inc. does business in Asia via its wholly owned subsidiaries, Alpha Century Holdings Ltd. ( http://www.seo4mobile.com ), 3G Dynasty Inc. (http://www.icstarmms.com ; http://www.skyestar.com ).
Safe Harbor
The statements made in this release constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, changing economic conditions, interest rates trends, continued acceptance of the Company's products in the marketplace, competitive factors and other risks detailed in the Company's periodic report Filings with the Securities and Exchange Commission. By making these forward- looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
For more information, please contact:
Ms. Sandy Tang,
Telecom Communications, Inc.
Suite 2412-13, Shell Tower, Times Square, Causeway Bay, Hong Kong
Tel: +852-2782-0983
Email: pr@tcom8266.com