Continues Growth Trajectory
Hong Kong, Aug 28, 2015 AEST (ABN Newswire) - 99 Wuxian Ltd (ASX:NNW) ("99 Wuxian" or "the Company") today announced its financial results for the half year ended 30 June 2015 ("1H15").
- Record Gross Transaction Value ("GTV") of RMB 5.3 billion (AUD 1.1 billion) in 1H15, up 57% on the prior corresponding period ("pcp")
- 20.1 million transactions on the platform during the period, up 86% on the pcp
- Total registered user base of 45.6 million as at 30 June 2015; adding over 14.5 million users since 30 June 2014
- Continued expansion and diversification of the business, with the launch of new product initiatives and the addition of high quality business partners and merchants
- Net revenue of RMB 81.0 million (AUD 16.6 million)
- Underlying EBITDA of RMB 5.4 million (AUD 1.1 million)
- Underlying PBT of RMB 3.2 million (AUD 0.7 million)
- Cash and cash equivalents of RMB 34.1 million (AUD 7.2 million) as at 30 June 2015
99 Wuxian delivered exceptional growth in registered users, transaction volumes and GTV in the first half of the 2015 financial year. The Company reported strong revenue growth with a 28% increase in net revenue on the pcp to RMB 81.0 million which was principally driven by record GTV, which increased 57% on the pcp to RMB 5.3 billion.
The Company continues to invest in future growth opportunities, including new product development, staff recruitment, expanded marketing initiatives in conjunction with business partners and further investment in the 99 Wuxian platform.
During the period 99 Wuxian launched its new Software-as-a-Service ("SaaS") employee loyalty platform, iBenefit, to pursue opportunities in the AUD 129 billion Chinese employee benefits market. iBenefit's potential is already being demonstrated with 99 Wuxian signing two top tier employers, Qunar and Wall Street English, since the launch of the service in June.
The Company continues to actively manage its product and merchant mix, adding a number of high quality merchants to the platform to cater to evolving user demand. Reflecting the success of the platform, leading Chinese financial institutions continued to adopt the platform, while existing business partners actively sought to extend the range of their product offering through the platform.
As a result of this focus on further investment, 99 Wuxian reported underlying earnings before interest, tax, depreciation and amortisation ("EBITDA") of RMB 5.4 million, a decrease of 4% over the pcp result and underlying1 profit before tax ("PBT") of RMB 3.2 million, a decrease of 23% on the pcp.
At the end of the period, the Company held cash and cash equivalents of RMB 34.1 million, an increase of 52% on the pcp.
Results overview (RMB):
(see Appendix A for AUD summary metrics in link below)
Half year ending June 2014 June 2015 Growth
Net revenue 63,166,607 81,047,217 28%
Gross profit 29,947,847 51,692,709 73%
Gross margin (%) 47.4% 63.8%
Underlying EBITDA 5,687,545 5,442,372 (4%)
Underlying PBT 4,169,709 3,196,903 (23%)
Statutory NPAT 5,993,077 1,731,264 (71%)
Cash and cash
equivalents 22,469,591 34,101,452 52%
Registered users 31,086,568 45,616,919 47%
Total number of
transactions 10,843,501 20,146,781 86%
Value 3,369,143,326 5,305,064,175 57%
Commenting on the result, 99 Wuxian CEO Amalisia Zhang said, "I am extremely pleased with the performance of the Company during the first half of 2015, as we continue to deliver exceptional growth across key operating metrics.
"Our priority is to continue to drive growth through further investment in the platform, focusing on improving the user experience, user engagement, and expansion of our offering to capture the significant market opportunity. New initiatives, such as our iBenefit, employee loyalty platform will underpin 99 Wuxian's future growth as we continue to expand our platform in the AUD 129 billion employee benefits market.
"The growth of China's m-commerce market continues uninterrupted with expectations that m-commerce in China will exceed AUD 227 billion within two years, having experienced sixfold growth over a four year period.
"We are confident that we will build on this result and deliver even greater growth in the second half of the year, which is the peak period for the Chinese retail market," she said.
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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.
99 Wuxian Ltd