Strongly Positioned for 2nd Half 2014 Following Placement
Hong Kong, Aug 15, 2014 AEST (ABN Newswire) - Leading Chinese mobile commerce company 99 Wuxian Limited (
ASX:NNW) (NNWXF) ("99 Wuxian" or the "Company") is pleased to provide shareholders with a business and market update.
A$25m Equity Placement
99 Wuxian successfully completed the A$25 million equity placement with settlement completing on Tuesday, 12 August. The significant majority of the placement was placed to Australian, Singaporean and Hong Kong institutional investors.
Utilisation of Placement Funds
The proceeds of the Placement will be utilised in marketing campaigns to drive registered user growth, increase investment in data mining research, upgrade IT systems to match long-term business growth and general working capital. The 2nd half of the calendar year is the peak period for the Chinese retail market. 99 Wuxian is focused on two key marketing campaigns during this period to drive registered user growth:
- 9 September 2014: 9 of the 9th or "99 Wuxian Day" is a new marketing initiative to drive the Company's brand awareness and registered user growth
- 11 November 2014: "Singles' Day" or Guanggun Jie, is the biggest online shopping day in China.
In addition, 99 Wuxian continues to build its B2B partners and increase its service offering to these partners.
Strategic review
99 Wuxian is continuing its Strategic Review with strong engagement with a number of high profile global investment banks. The Company aims to appoint investment banks by the end of September 2014 as part of the Review.
China m-Commerce trends
China's mobile internet population reached 500 million in 2013 with penetration of 81%, with 318 million units shipment of smartphone, jumping 64.1% year-on-year, according to the latest data from iResearch.
China's mobile internet market reached 45 billion RMB (A$7.87 billion*) in the second quarter of 2014, rising 104.1% year-on-year. Mobile shopping represents over 50% of the mobile internet market and this is expected to increase steadily with compound yearly growth rates of 46% from 2015-2017. 99 Wuxian is highly leveraged and well positioned to capitalise on these strong industry trends.
CEO Investor Roadshow
CEO Ms Amalisia Zhang is scheduled to conduct investor briefings in Asia and Australia in September 2014, following the release of the half yearly results.
*A$=5.7208 RMB as at 14 August 2014
To view the English Announcement, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-NNW-811659.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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