Quarterly Trading Update: Solid Growth In All Key Performance Indicators
Shenzhen, May 2, 2014 AEST (ABN Newswire) - Leading Chinese m-commerce company 99 Wuxian Ltd (99wuxian) (
ASX:NNW) is pleased to provide a quarterly trading update for the March 2014 quarter.
Performance during the quarter was solid, evidenced by good growth on all key performance indicators compared to the same quarter last year.
---------------------------------------------------- March 2013 March 2014 Percentage Quarter/end Quarter/end increase----------------------------------------------------Registered users (RU) 19,772,658 29,338,565 48.38%-----------------------------------------------------Gross Transaction Value (GTV) (RMB) 543,657,181 1,668,977,288 206.99%*AUD 93,442,392 286,859,505 -----------------------------------------------------Total number of Transactions (TNT) 4,726,078 5,336,453 12.9%-----------------------------------------------------Average Value per Transaction (AVT)(RMB) 115.03 312.75 171.89%*AUD 19.77 53.75 -----------------------------------------------------99wuxian.com Platform Revenue (PR) (RMB) 22,663,197 27,496,083 21.32%*AUD 3,895,292 4,725,956-----------------------------------------------------
*RMB/AUD as at 1 May 2014=5.8181
99 Wuxian Limited CEO, Amalisia Zhang, said:
"It is particularly pleasing to have delivered solid growth in all key business metrics in what has traditionally been our slowest quarter.
"Our strategy to increase the average transaction value and spend per registered user is bearing fruit with gross transaction value for the quarter having tripled on the previous corresponding period. This evidences the success of our marketing initiatives during the quarter," she said.
The following commentary is provided:
Registered Users (RU): Growth in RU continues in accordance with an established trend. Growth over the last 12 months over 48% is an average of almost 2.4 million new RU's per quarter. Growth continues to be driven by a combination of new Business Partners joining the platform, and current Business Partners promotional activities. Registered user growth for the March 14 quarter compared to March 13 quarter increased by 31%.
Gross Transaction Value (GTV): GTV for the March 2014 quarter was more than triple the GTV for the March 2013 quarter. This growth of 207% was driven by a 48% increase in registered users while RU's and an increase of 172% in ATV.. The Company's strategy to drive higher spend per RU from the existing user base is producing the desired result.
Total Number of Transactions (TNT): TNT averaged 59,294 per day for the March 2014 quarter, compared with 52,512 per day in the March 2013 quarter. The increase of 12.9% in TNT is a direct result of the company focusing on increasing ATV versus TNT.
Average Transaction Value (ATV): ATV for the March 2014 quarter of RMB 312.75 was an increase of almost 172% over ATV for the March 2013 quarter. A key growth strategy for 99 Wuxian is to deepen relationships with users, thereby lifting the ATV. This process is enhanced through the company's programs with Business Partners in data mining intiatives. The B2B2C business model provides the company with access to well qualified users which the company believes will continue to enhance the ATV.
99wuxian.com Platform Revenue (PR): Platform revenue grew by a pleasing 21% compared with the corresponding quarter in 2013. During the period the company implemented a number of joint marketing initiatives with Business Partners which accounts for the disproportionately higher rate of growth in Gross Transaction Value compared to overall Platform Revenue.
The majority of promotional activities are conducted on a "variable cost" basis, which results in a reduced margin on GTV. The company remains focused on acquiring high quality users that represent strong annuity expenditure, as mobile commerce evolves in China. In order to support Business Partners who are paying the majority of fixed costs associated with customer acquisition the company believes the variable contribution to promotional costs represents a risk managed strategy to ensure strong growth in RU's.
To view the release, please visit:
http://media.abnnewswire.net/media/en/docs/77064-ASX-NNW-795431.pdf
About 99 Wuxian Ltd
99 Wuxian Ltd (ASX:NNW) aggregates over 300 million high quality consumers and 155 leading merchants through a marketplace embedded within the mobile apps of China's leading banks, telecommunications and insurance companies. 99 Wuxian enables increased customer satisfaction, loyalty and retention for its business partners by offering consumers the lifestyle convenience of purchasing virtual and physical goods on a mobile device.
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