ChinaNetCenter Announces 2016 Net Profit Rose by 50%, Reaches Expectations

2017-03-15 15:38 Posted by: Judy in CDN, News Go to Comment

ChinaNetCenter, the leading CDN, IDC, and cloud solution provider in China, officially unveiled its annual report for 2016 on 13th March, 2017, showing that the company’s main business has maintained an overall fast growth in the past year. ChinaNetCenter is reporting revenue of 4.45 billion yuan, increasing by 51.67 percent year-on-year. Additionally, the company reports a net income of 1.25 billion yuan for shareholders of the listed company, with year-on-year growth of more than 51.41%; among which the main business revenue overseas accounts for 14 percent, reaching 632.72 million yuan with year-on-year growth of 95.91 percent. 

Analysts say that ChinaNetCenter assumes absolute superiority in China’s content delivery network and keeps benefiting from the dividends of rapidly growing global traffic. Though the share price of ChinaNetCenter started to fall in Q4 2016, it creates an excellent opportunity for the long-term investors to buy stocks midway through the trade, the most prominent example being the Gates Foundation having made a big gallon in the fourth quarter. 

On the same day, ChinaNetCenter launched an announcement that it planned to increase the reserve transferred from 10 to 20 for unit stock, therefore all shareholders receiving a cash dividend of 2.5 yuan (tax included). Also in the announcement, the company officially confirmed that the stakeholder Chen Baozhen and the director Chu Minjian were going to cut stocks holdings to less than 500 million and 225 million respectively. 

ChinaNetCenter sees a steadily steam of market share.

According to ChinaNetCenter’s annual report for 2016, as with the continued growing demand for traditional internet applications like the videos and the games, cloud computing, internet+, and other emerging business models are becoming the driving force for sustained growth of CDN industry. ChinaNetCenter’ CDN business revenue reaching 4.45 billion yuan with the YoY growth of 51.67 percent has fully proved that the company grabbed a larger market share over the past year. According the a research on China CDN service market share made by IDC (Analyze the Future), ChinaNetCenter took up 40.6 percent of domestic market share, receiving a dominant position in China CDN service industry. 

Content delivery network enjoying steady growth is a corollary of the sustained and rapid internet traffic development in China. Earlier this year, China Academy of Information and Communication Technology (CAICT) rolled out a report on the development trend of domestic internet in 2017, indicating that the overall size of global internet users will continue to grow, the universal service will be rapidly advanced, and the network traffic will keep growing at high level.

It is bold to say that the era of mobile internet is coming and the total number of global mobile applications is expected to reach 12.34 million. Apparently, mobile data traffic has become the mainstream service channel. China has quite prominent scale advantage in terms of both the numbers and distributions of the third-party mobile app stores. 

Just as Li Wei, the principal analyst at Zhongtai Securities, stated that successful CDN markets usually bear some common features, like scale effects as the leading factor and “market of winner taking all game”. And ChinaNetCenter’s fast growing in domestic third-party CDN market is a good example of scale effect. And this is also the reason why the company accelerates overseas expansion recently, for instance, ChinaNetCenter acquired 97% of the shares in CDNetworks

Tagged with:

Related Articles

Things Beneath Red Hat’s and Oracle’s Earnings Reports
06/27
Red Hat and Oracle published their quarterly earnings reports which showed exciting results than previous expectation, so there must be lots of smiles in Redwood Shores and Raleigh this week. The good news also inspired their stock values that Red Hat’s increased by 10.6% in the early trading after the good news gave out, and Oracle got a 9% rise.
What Shippable’s Continuous Delivery Mean For MSPS?
06/26
The most challenging stage is the software release stage for developers. This process is repeated every single time you want to update your product, and it leads to slower releases which add no value to customers.
WMT vs. Amazon, S.F. Express vs. CaiNiao: Cloud Data Storage is Particularly Important
06/23
It is very clear that cloud data storage is the key reason that WMT requires the technology companies it is partnering in some business. Actually, there was a similar event happening in China, which was between S.F. Express and CaiNiao, because of the customer data interfaces. The exposed the fight between Alibaba Cloud and Tencent Cloud in the cloud data storage area.
Study Conducted in Digital Reality: Direct Connections to Cloud Bring 50X Less Latency
06/23
For enterprises that are considering making public cloud as a part of their data center solution, latency is one of the major problems they could face. For others who have already jumped in and started using public cloud the cost incurred becomes a problem. Others are able to predict this problem ahead and use public clouds in circumstances where latency will not pose a problem to them.
Microsoft Supports Newly Launched AMD EPYC 7000 Datacenter Processors
06/22
AMD newly launched advanced chips, the AMD Epyc 7000 series, which is for datacenter, and the chip giant hopes to use it to receive a comeback in servers. Microsoft decided to use this datacenter processor to support its Windows Azure platforms and its Windows Servers.
Comment
Be the first to comment!
About the author
Judy
Views: 20568
Articles: 106
Having been an website editor for web hosting, SSL, SEO, cloud and domain registration for years. Well knowledgeable about online presence creation, optimization and security.

Author's Hot Articles

godaddy
hub

Hot Posts

Service Recommendation

Cloud Hosting
Cloud hosting is the fastest growing hosting solutions in the industry. »
Cloud Storage
Best Cloud Storage are named based on customer and expert reviews. »
SSL
The most popular SSL certificate providers in the industry are here. »
China Web Hosting
Find out a comprehensive evaluation to the host service provider in China. »
bluehost
Chat Advertising cooperation TOP