DJI Holdings says Xinhuatong partnership running 'ahead of schedule'

DJI Holdings, a provider of online bookings, mobile payments and lottery sales in China, said on Monday the Xinhuatong partnership is running ahead of schedule.

DJI supplies the technology platform to the partnership between Beijing NewNet Science & Technology (NewNet) and Xinhuatong.

The technology platform has facilitated the promotion of mobile payments and online bookings through the Xinhua News mobile app for public utility bills including electricity, gas, water, mobile phone top-ups and traffic fines in China.

The partnership has signed 10 provinces from the 12 provinces initially targeted in China, DJI said.

The 10 provinces signed are the largest in terms of population and gross domestic product of the 12 provinces targeted, and it remains on track to sign the remaining two provinces by the end of the year.

The mobile application is expected to be launched in all 10 of the signed provinces by the end of September.

The 10 signed provinces account for approximately 70% of nationwide utilities billings, including car fines and mobile top-ups, with billings totalling over £400bn yearly. In all 12 provinces, gas, water and electricity payments still collect less than 15% of payments online.

The Xinhuatong partnership has also reached agreements with a number of new Chinese organisations, to develop substantial new revenue streams, based on DJI’s technology platform, which are expected to launch in September.

AIM-listed DJI said it believed that recent announcements by major Chinese companies capitalising on the opportunity to offer online payments and money transfers to their large user bases, reinforced the company’s strategy to become a “significant internet technology portal”.

Chief executive Darren Mercer, said: "The Xinhuatong partnership is running ahead of schedule in the largest provinces targeted, while important channel partners are showing great interest in collaborating with our versatile technology platform and in developing content.

“DJI is excited to be part of China's well documented rapid growth in mobile services and the scale of the opportunity for the group to develop additional revenue streams remains very substantial."

Shares in DJI Holdings were up 0.24% to 105p at 1135 BST.