Nan Hai Corporation's Duowei News ceases operation

Chinese-language news site Duowei News has ceased operation due to internal business realignment. It's also reported that most of its staff was laid off. 

On its website, the company said, " From 26 April 2022 (Hong Kong time) onwards, the website and app of Duowei News will 'say goodbye' to our reader friends due to internal business realignment. Thank you for your attention and companion over the years." The company did not unveil more details about its closure. 

A brief search conducted by MARKETING-INTERACTIVE has found that Duowei News' Facebook page and Twitter account have not been deleted yet. The last post was published on 25 April about the global military budget. However, the company's YouTube page no longer exists. 

Duowei News is part of Nan Hai Corporation. Its business spans culture and media services, property development, enterprises cloud services, invocative business and news and media business. According to multiple reports such as Ming Pao, Duowei News said in an announcement that due to the realignment of the real estate industry and the pandemic, Nan Hai Corporation's business drastically declined, leading to the shrinking scale of the company and the lack of enough funds. Moreover, about 60 staff members mainly stations in Beijing were laid off. 

Nan Hai Corporation said in March that it might record a loss of approximately HK$30 billion to HK$34 billion for the year ended on 31 December 2021. The board said the property development segment was affected by its cyclical nature and the revenue was lower year-on-year, and the group had made a provision for impairment of property, plant and equipment and goodwill in the culture and media services and innovative business segments of approximately HK$11 billion to HK$13 million. 

The company even announced on 30 March that it was unable to complete the preparation of the unaudited annual results by 31 March 2022 owing in part to the newly formed finance team of the group, which required additional time to compile the necessary financial information together with the challenges caused by the recent outbreak of COVID-19 in China.

According to its latest interim report, Nan Hai Corporation said during the reporting period from 1 January 2021 to 30 June 2021, revenue of its news media business segment, consisting of HK01 and Duowei News, was approximately HK$75.4 million (for the six months ended 30 June 2020: HK$40.7 million). Loss before income tax was approximately HK$140.4 million (for the six months ended 30 June 2020: HK$171.8 million). 

A spokesperson from HK01 said the cessation of the operation of Duowei News was purely a business decision made by Nan Hai Corporation, adding that the decision only involves Duowei News and has no impact on the business of HK01. 

Duowei News was established in 1999 and was acquired by Nan Hai Corporation in 2009. The Standard reported that its Taipei office was shut down late last year. 

MARKETING-INTERACTIVE has reached out to and Duowei News for more details.

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