Hong Kong Exchanges and Clearing, 5/31/12
Chinese mobile vertical search services provider Prosten Technology (8026.HK) has announced that based on its unaudited management accounts for FY2012, the company expects to see a substantial drop in revenue for FY2012 ended 31 March 2012 compared to FY2011.The company also expects to record losses before tax for FY2012 as compared to a before-tax profit position for FY2011.
As disclosed in a number of previous announcements, the cooperation agreement previously made between Prosten and China Mobile Limited (NYSE: CHL; 0941.HK) (through its wholly-owned subsidiary) for Prosten's provision of certain operational support of wireless music search services by Prosten expired in early July 2011. After the expiry of the old agreement, Prosten has been entering into negotiations, with China Mobile in order to reach an agreement for Prosten's provision of operational supporting services to China Mobile. Though there was some progress on such negotiations, Prosten is still uncertain as to whether (and, if so, when) a new agreement may be concluded and signed. As mentioned in the previous announcements, Prostn, following expiry of the old cooperation agreement and up to March 31, 2012, continued to deliver operational support of wireless music search services to China Mobile.