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Delivers 46% Profit Growth
Delivers 46% Profit Growth
Hong Kong, Feb 29, 2016 AEST (ABN Newswire) - 99 Wuxian, (ASX:NNW) ("99 Wuxian" or "the Company"), is pleased to announce its results for the 12 months ended 31 December 2015 with record results across key financial and operating metrics.

Highlights :

- Revenue of RMB 192.3 million (AUD 40.7 million) in FY2015, up 25% from RMB 154.2 million (AUD 32.6 million) in FY2014

- Statutory NPAT of RMB 10.2 million (AUD 2.2 million) in FY2015, up from RMB 7.0 million (AUD 1.5 million) in FY2014, an increase of 46%

- Cash and cash equivalents of RMB 40.9 million (AUD 8.6 million) as at 31 December 2015

- Strong expansion of the platform with continued addition of high quality business partners and merchants

- Significant business diversification by entering new channels to market

- Total registered user base of 54.5 million as at 31 December 2015, up from 40.8 million as at 31 December 2014

- Record 56.8 million transactions on the platform

- Gross Transaction Value (GTV) of RMB 13.6 billion (AUD 2.9 billion), up from RMB 8.2 billion (AUD 1.7 billion) in the 12 months to 31 December 2014

- Average Transaction Value (ATV) of RMB 239 (AUD 51), a move from RMB 246 (AUD 52) in the 12 months to 31 December 2014 which is the result of change in product and proactive strategy to increase user engagement.

Summary Financials:

(see Appendix A for AUD summary financials)

RMB, 31 Dec. year end  FY2014      FY2015      Growth
Revenue                154,225,315 192,334,487 25%
Gross profit            79,830,967 128,204,582 61%
Gross margin (%)             51.8%       66.7% 1489bps
Underlying EBITDA       17,665,716  22,035,341 25%
Statutory EBITDA        11,767,997  21,501,800 83% 
Underlying PBT          14,835,296  16,733,684 13%
Statutory PBT            8,937,677  16,200,143 81% 
Statutory NPAT           6,982,568  10,200,187 46%

Key Performance Metrics:
(see Appendix A for AUD summary metrics)
RMB, except user and transaction numbers 
                       FY2014      FY2015     Growth
Registered users        40,790,721 54,514,538 34%
Transactions            33,307,476 56,823,020 71%
Gross Transaction 
Value (GTV)          8,189,624,814 13,598,533,720 66%
Average Transaction 
Value (ATV)                    246        239 (3%)
Net commission rate           2.0%       1.5% (51bps) 

CEO Amalisia Zhang commented: "This is an excellent result for 99 Wuxian and reflects our focus on increasing the registered user base and improving user engagement, having grown revenue nearly threefold in three years.

"Improvements in user engagement drove higher gross transaction values, while we were able to grow the registered use base through the launch of new products, the optimisation of product mix, and the launch of a number of effective joint marketing campaigns with our business partners. We successfully expanded our base of contracted partners on the 99 Marketplace and rewards redemption platform from a focus on large banks to include regional banks, rural credit cooperatives and insurance companies, enlarging the pool of underlying customers. The combination of these factors resulted in strong GTV and revenue growth. We will work hard to build on this growth in 2016, especially with the expansion of the rewards redemption business and the introduction of the iBenefit Platform."

Commenting on the result, Chairman Ross Benson said: "99 Wuxian is well positioned for the next phase of its growth. The Company has a high level of operating leverage which will enable further growth as the business continues to expand its user base. The agreement to acquire Jiangsu Ofpay E-commerce Limited ('Ofpay"), a leading supplier of virtual products and services, is a strategic upstream acquisition to strengthen our position in the Chinese mcommerce market.

99 Wuxian is uniquely positioned to capitalise on several significant market opportunities. The Chinese e-commerce market continues to experience strong growth. 99 Wuxian's competitive advantage is that it owns and operates a gateway that offers a unique ecosystem connecting business partners' high value consumers with merchants."

Business Partner and Merchant Portfolio:

Business Partners:

The Company continues to attract high value business partners and to expand its reach in China. The platform has established relationships with 71 business partners, including China's leading financial institutions, telecommunications and insurance companies.

During 2015, the Company added 11 new business partners reflecting the continued adoption and success of the platform. 99 Wuxian established a loyalty incentive platform for Tianan Insurance in 2015 and continues to operate the platform. This momentum has continued in 2016, as 99 Wuxian is working on a new marketing campaign for a long-term client, Industrial and Commercial Bank of China ("ICBC"), the world's largest bank.

The Company is actively focussed on developing new channels to market while also continuing discussions with its existing business partners to on board them onto the reward redemption platform.

Merchants:

In order to maintain its high business standards for product and service quality, the Company maintains a select universe of 155 top-tier merchants who offer virtual and physical goods for purchase through 99 Wuxian's platform.

The Company continues to actively monitor and manage its product and merchant mix in response to evolving user demand including the addition of a number of leading merchants during 2015. The Company successfully enhanced and optimised product and product mix to include petrol cards, healthcare products and virtual vouchers. 99 Wuxian has a strong pipeline of new products for release over the medium term and will continue to optimise its product mix in order to increase commission rates.

Strategy and Outlook:

99 Wuxian has delivered exceptional growth, with record results achieved in 2015 across key financial and operating metrics. Looking forward, the Company is focused on capitalising on its unique position of owning and operating an enterprise-level mobile internet gateway connecting high value consumers with merchants and driving growth in FY2016 by continuing to capitalise on the significant market opportunity and positive growth trends in Chinese on-line marketplace, which now has over 300 million participants.

99 Wuxian is focused on disciplined execution of its growth strategy by accelerating the growth of its registered user base and user engagement, expanding its rewards redemption platform across business partners, delivering revenue from new channels to market, expanding the platform to new business partners, new merchants and new products. For example, the introduction of iBenefits, which provides employee loyalty and reward benefit redemption platform for business partners to efficiently manage their employees benefit, incentive and loyalty programs.

The synergistic acquisition of Ofpay, a leading upstream wholesaler of online transaction services and product, will enhance 99 Wuxian's business focus on downstream business partner engagement.

99 Wuxian is committed to delivering better outcomes in FY2016 and will strive to achieve strong growth and benefit from operating leverage as the business continues to scale.

To view the release, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-NNW-909755.pdf

To view the full year results presentation, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-NNW-909767.pdf


About 99 Wuxian Ltd

99 Wuxian Ltd (ASX:NNW)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.

  


Contact

99 Wuxian Limited
Mr Ross Benson
+61 418 254 548
enquiries@99wuxian.com



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