Shares of China-based internet advertisement company ChinaNet (CNET) jumped after reporting fourth quarter revenue that increased over 64% from the year-ago period. REVENUE JUMPS: Q4 revenue spiked 64.1% to $15.3M from $9.4M in the year-ago quarter, ChinaNet-Online said this morning. Operating expenses for Q4 were down to 40.7% from 42.9% last year. Most notably, revenues from search engine marketing and data service increased by 121.1% to $13.1M from $5.9M in the corresponding period of 2016. Net loss attributable to ChinaNet Online Holdings was $6.2M in Q4, compared to $2.3M in the corresponding period of 2016. Handong Cheng, Chairman, President and CEO of CNET, stated that “2017 has been a transitional year for us. Realizing that our small-to-medium enterprise or SME customers are struggling as the Chinese economy slows down, we have actively migrated our business focus towards servicing larger customers and providing search-engine advertising solutions. As a result, we achieved 64.1% of year-over-year revenue growth in the fourth quarter of 2017 and 34.2% in full-year 2017.” APPLYING BLOCK CHAIN TECHNOLOGY: CEO Cheng also commented that “At the same time, we see tremendous opportunities in applying block chain technology to helping SMEs to achieve better business results than ever before.” PRICE ACTION: Shares of ChinaNet Online are up 45.3% to $3.59 per share in afternoon trading.
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