London-listed mobile technology provider DJI Holdings has proposed to change its name to BNN Technology following recent changes this year which has seen the company diversify its business away from the lottery sector.
DJI has looked to diversify its model to become a technology platform provider that can facilitate mobile payments, deliver mobile content and provide data management to customers throughout China.
This has seen the supplier become the technology platform provider to Beijing NewNet Science & Technology Development Co. (NewNet) in April.
"Now is the right time to begin building a new brand, with the BNN Technology name, as we broaden from lottery specialist to payment fulfilment, content-delivery, data management and value-added services on mobile internet,” said DJI CEO Darren Mercer. “We believe completing the pivot to a technology company will add substantial shareholder value as we enter high growth, multi-billion dollar markets in China.”
DJI confirmed Thursday that NewNet had agreed to acquire a 10 per cent stake in its joint venture partner Xinhuatong, the exclusive provider of key functionality to the Xinhua News App, owned by China's national news agency.
NewNet will also transfer its lottery assets into the Xinhuacai JV, which also provides technology and a range of mobile lottery games and services to Xinhua.
DJI, as the technology platform provider to NewNet, is expected to benefit from enhanced revenue and profits as a result of NewNet's stronger partnership with Xinhuatong.
"We are also tremendously excited about the opportunity to deepen our relationship with Xinhuatong through NewNet,” continued Mercer. “NewNet's investment further secures a long term partnership in which we are one of the leading technology providers to the company, allowing us to benefit from its strong commercial relationships in major industries such as insurance and other key financial services markets.”
Xinhuatong has the exclusive rights to provide payment processing facilities within the Xinhua News Mobile App and is in the process of applying for a national payment processing licence.
“Upon a successful application, the benefits to our company will be significant, not only in allowing us to participate in one of China's largest industries, but also to substantially increase the net margin across our platform,” he added. “I am therefore increasingly excited about both the future additional revenues and profits that our new relationship with Xinhuatong through NewNet will bring to the group.
"The board is hopeful that this repositioning of the group will help us attain a new industry classification on AIM and in due course on NASDAQ which will reflect our future revenue streams and better positions the company in a sector with similar high growth technology companies."