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PR Newswire

China Customer Relations Centers, Inc. Announces Financial Results for the First Half of 2020

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Revenues and EPS Increased by 33.4% and 106.4%, Respectively, for the First Half of 2020

TAI’AN, China, Dec. 19, 2020 — China Customer Relations Centers, Inc. (NASDAQ: CCRC) ("CCRC" or the "Company"), a leading business process outsourcing ("BPO") service provider serving internet, e-commerce, banking, and telecommunications clients in China, today announced its unaudited financial results for the six months ended June 30, 2020.

First Half of 2020 Highlights (all comparisons to prior year unless noted)

  • Revenues increased by 33.4% to $97.72 million, driven by strong demand for our business from existing BPO clients and the contribution from new clients including Huaxia Bank, Ping’An Bank, Suning Insurance, and Vipshop, among others.
  • Gross profit increased by 38.9% to $25.91 million. Gross margin was 26.5%, compared to 25.5% for the same period of the prior year.
  • Operating income increased by 89.1% to $10.06 million. Operating margin increased by 3.0 percentage point to 10.3%.
  • Net income attributable to common shareholders increased by 106.4% to $10.30 million.
  • Earnings per share was $0.56, compared to $0.27 for the same period of the prior year.        

First Half of 2020 Financial Results (Unaudited)

For the Six Months Ended June 30,

($ millions, except per share data)

2020

2019

% Change

Revenues

$97.72

$73.27

33.4%

Gross profit

$25.91

$18.65

38.9%

Gross margin

26.5%

25.5%

1.0 pp*

Operating income

$10.06

$5.32

89.1%

Operating margin

10.3%

7.3%

3.0 pp*

Net income attributable to CCRC

$10.30

$4.99

106.4%

EPS – basic and diluted

$0.56

$0.27

107.4%

*pp: percent points

Revenues

For the six months ended June 30, 2020, revenues increased by $24.45 million, or 33.4%, to $97.72 million from $73.27 million for the same period of the prior year. We continued to see strong demand for our business from existing BPO clients while adding new clients with notable additions including Huaxia Bank, Ping’An Bank, Suning Insurance, and Vipshop, among others, during the six months ended June 30, 2020.

We continued to increase our service capacity, which increased by 2,969 seats, or 13.3%, to 25,329 seats as of June 30, 2020 from 22,360 seats at the end of 2019. 

Cost of revenues

Cost of revenues consists primarily of salaries, payroll taxes and employee benefits costs of our customer service associates and other operations personnel. Cost of revenues also includes direct communications costs, rent expense, IT costs, and facilities support expenses. Cost of revenues increased by $17.19 million, or 31.5%, to $71.81 million for the six months ended June 30, 2020 from $54.62 million for the same period of the prior year. The increase in cost of revenues was in line with the increase in revenues. As a percentage of revenues, cost of revenues was 73.5% for the six months ended June 30, 2020, compared to 74.5% for the same period of the prior year.

Gross profit and gross margin

Gross profit increased by $7.26 million, or 38.9%, to $25.91 million for the six months ended June 30, 2020 from $18.65 million for the same period of the prior year. The increase in gross profit was primarily driven by increased revenues as well as COVID-19 related social security and rent relief benefits received during the pandemic. Gross margin increased by 1.0 percentage point to 26.5% for the six months ended June 30, 2020 from 25.5% for the same period of the prior year.

Selling, general and administrative expense

Selling, general and administrative ("SG&A") expenses consist primarily of sales and administrative employee-related expenses, professional fees, travel costs, research and development costs, and other corporate expenses. SG&A expenses increased by $2.52 million, or 18.9%, to $15.85 million for the six months ended June 30, 2020 from $13.33 million for the same period of the prior year. As a percentage of revenues, SG&A expenses decreased from 18.2% for the six months ended June 30, 2019 to 16.2% for the six months ended June 30, 2020.

Operating income and operating margin

Income from operations increased by $4.74 million, or 89.1%, to $10.06 million for the six months ended June 30, 2020 from $5.32 million for the same period of the prior year. The increase in operating income was related to increased gross profit which was partially offset by increased SG&A expenses. Operating margin was 10.3% for the six months ended June 30, 2020, compared to 7.3% for the same period of the prior year.

Other income

We recognized government grants, which are discretionary and unpredictable in nature, of $1.38 million during the six months ended June 30, 2020, compared to $0.56 million recognized during the same period of the prior year. Total other income, net of other expenses, increased by $1.30 million, or 184.7%, to $2.01 million for the six months ended June 30, 2020 from $0.71 million for the same period of the prior year.

Income before provision for income taxes

Income before provision for income taxes increased by $6.05 million, or 100.3%, to $12.07 million for the six months ended June 30, 2020 from $6.03 million for the same period of the prior year. The increase in income before provision for income taxes was due to increased operating income as well as government grants and other income.

Income taxes

Provision for income taxes was $1.73 million for the six months ended June 30, 2020, compared to $0.96 million for the same period of the prior year.

Net income and earnings per share

Net income increased by $5.27 million, or 104.1%, to $10.34 million for the six months ended June 30, 2020 from $5.07 million for the same period of the prior year. After deducting net income attributable to noncontrolling interest, net income attributable to common shareholders was $10.30 million, or $0.56 per basic and diluted share, for the six months ended June 30, 2020, compared to $4.99 million, or $0.27 per basic and diluted share, for the same period of the prior year.

Financial Conditions

As of June 30, 2020, the Company had cash of $28.67 million, compared to $25.33 million at December 31, 2019. Total working capital was $58.59 million as of June 30, 2020, compared to $47.50 million at the end of 2019.

Net cash provided by operating activities was $7.87 million for the six months ended June 30, 2020, compared to net cash used in operating activities of $1.34 million for the same period of the prior year. Net cash used in investing activities was $1.81 million for the six months ended June 30, 2020, compared to $1.30 million for the same period of the prior year. Net cash used in financing activities was $2.17 million for the six months ended June 30, 2020, compared to net cash provided by financing activities of $0.03 million for the same period of the prior year.  

Notice

Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding.

About China Customer Relations Centers, Inc.

The Company is a leading BPO service provider in China focusing on the complex, voice-based and online-based segments of customer care services, including:

  •  customer relationship management;
  •  technical support;
  •  sales;
  •  customer retention;
  •  marketing surveys; and
  •  research.

The Company currently has a service capacity of approximately 25,329 seats for its call centers. More information about the Company can be found at: www.ccrc.com.

Forward-Looking Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements.  Specifically, the Company’s statements regarding its: 1) the impact of COVID-19; and 2) continued growth, shareholder returns and business outlook, are forward-looking statements. Forward-looking statements are not guarantee of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following:  the Company’s goals and strategies; the Company’s future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the call center business process outsourcing market in China; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission.  For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Sherry Zheng 
Weitian Group LLC
Email: shunyu.zheng@weitian-ir.com
Phone: +1-718-213-7386

CHINA CUSTOMER RELATIONS CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

 June 30,

 December 31,

2020

2019

(Unaudited)

ASSETS

 Cash and cash equivalents

$

28,673,083

$

25,328,486

 Accounts receivable, net

47,438,549

42,606,485

 Prepayments

2,912,547

2,396,646

 Prepayment, related party

78,109

90,429

 Due from related party, current

212,218

–

 Income taxes recoverable

201,283

712,459

 Other current assets

3,911,556

3,408,704

     Total current assets

83,427,345

74,543,209

 Equity investments

3,396,904

3,446,346

 Property and equipment, net

9,788,227

10,115,782

 Deferred tax assets

239,379

242,863

 Due from related party, non-current

–

215,307

 Operating lease right-of-use assets

9,882,185

9,827,114

 Operating lease right-of-use assets – related party

92,732

172,121

     Total non-current assets

23,399,427

24,019,533

 Total assets

$

106,826,772

$

98,562,742

 LIABILITIES AND EQUITY

 Accounts payable

$

2,836,918

$

2,602,972

 Accounts payable – related parties

49,945

149,658

 Accrued liabilities and other payables

4,677,490

4,641,892

 Deferred revenue

235,293

456,331

 Wages payable

10,261,274

10,472,596

 Income taxes payable 

1,247,114

452,961

 Operating lease liabilities, current

3,369,036

3,797,069

 Operating lease liabilities – related party, current

40,670

163,995

 Short term loans

2,122,181

4,306,138

     Total current liabilities

24,839,921

27,043,612

Operating lease liabilities, non-current

7,164,013

6,068,702

     Total non-current liabilities

7,164,013

6,068,702

     Total liabilities

32,003,934

33,112,314

 Equity 

 Common shares, $0.001 par value, 100,000,000 shares authorized, 18,329,600 shares issued and outstanding as of June 30, 2020 and December 31, 2019

18,330

18,330

 Additional paid-in capital

18,485,598

15,074,267

 Retained earnings

52,891,042

47,347,781

 Statutory reserves

7,161,554

5,818,330

 Accumulated other comprehensive loss

(4,352,452)

(3,411,744)

     Total China Customer Relations Centers,

Inc. shareholders’ equity  

74,204,072

64,846,964

 Noncontrolling interest

618,766

603,464

     Total equity  

74,822,838

65,450,428

 Total liabilities and equity 

$

106,826,772

$

98,562,742

 

CHINA CUSTOMER RELATIONS CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)

For The Six Months Ended June 30,

2020

2019

Revenues, net

$

97,720,912

$

73,274,748

Cost of revenues

71,809,229

54,623,472

Gross profit

25,911,683

18,651,276

Operating expenses:

Selling, general & administrative expenses

15,848,053

13,329,194

Total operating expenses

15,848,053

13,329,194

Income from operations

10,063,630

5,322,082

Interest expense

(109,430)

(30,475)

Government grants

1,384,198

555,229

Other income

758,268

201,945

Other expense

(23,242)

(20,722)

Total other income

2,009,794

705,977

Income before provision for income taxes

12,073,424

6,028,059

Income tax provision

1,733,355

961,021

Net income

10,340,069

5,067,038

Less: net income attributable to noncontrolling interest

42,253

77,947

Net income attributable to China Customer Relations Centers, Inc.

$

10,297,816

$

4,989,091

Comprehensive income

Net income

$

10,340,069

$

5,067,038

Other comprehensive income (loss)

Foreign currency translation adjustment

(967,659)

(6,737)

Total Comprehensive income

9,372,410

5,060,301

Less: Comprehensive income attributable to noncontrolling interest

15,302

140,467

Comprehensive income attributable to China Customer Relations Centers, Inc.

$

9,357,108

$

4,919,834

Earnings per share attributable to China Customer Relations Centers, Inc.

Basic

$

0.56

$

0.27

Diluted

$

0.56

$

0.27

 

CHINA CUSTOMER RELATIONS CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

For The Six Months Ended June 30,

2020

2019

Cash flows from operating activities

Net income

$

10,340,069

$

5,067,038

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation

2,445,941

2,845,134

Loss on disposal of property and equipment

226,974

68,475

Non-cash lease expense

436,327

–

Changes in assets and liabilities:

Accounts receivable

(5,471,004)

(5,493,897)

Prepayments

(1,010,254)

(917,156)

Prepayment, related party

11,079

(1,783)

Other current assets

(554,215)

(97,228)

Operating lease liabilities

135,277

(843,053)

Accounts payable

272,668

(130,978)

Accounts payable – related parties

(98,062)

(55,237)

Wages payable

(62,836)

412,029

Income taxes recoverable

503,504

207,879

Income taxes payable

804,727

(56,564)

Deferred revenue

(215,584)

(114,931)

Accrued liabilities and other payables

101,960

(2,226,854)

Net cash provided by (used in) operating activities

7,866,571

(1,337,126)

Cash flows from investing activities

Purchase of property and equipment

(1,808,750)

(1,371,577)

Proceeds from sale of property and equipment

988

28,210

Repayment from related parties

–

44,222

Net cash used in investing activities

(1,807,762)

(1,299,145)

Cash flows from financing activities

Borrowings from short-term loans

4,231,293

3,725,560

Repayment of short-term loans

(6,398,592)

(3,694,345)

Net cash provided by (used in) financing activities

(2,167,299)

31,215

Effect of exchange rate changes on cash and cash equivalents

(546,913)

(62,102)

Net change in cash and cash equivalents

3,344,597

(2,667,158)

Cash and cash equivalents, beginning of the period

25,328,486

24,419,912

Cash and cash equivalents, end of the period

$

28,673,083

$

21,752,754

Supplemental cash flow information

   Interest paid

$

109,433

$

82,531

   Income taxes paid

$

905,535

$

1,139,416

Non-cash investing and financing activities

Transfer from prepayments to property and equipment

$

457,666

$

–

Liabilities assumed in connection with purchase of property and equipment

$

–

$

17,792

 

 

PR Newswire

Nielsen: China leads the world in the pace of retail recovery, as offline channels rebound in full momentum

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BEIJING, Dec. 18, 2020 — According to the latest study by Nielsen, the global measurement and data analytics company, the onset of COVID-19 in 2020 has brought profound impact to the global retail industry and resulted in significant changes to the consumer market landscape. This is largely due to a shift in shopping concepts and behaviors. China is currently leading the pace in terms of the consumer market recovery and this can be attributed to the successful control of the virus in the country. While online consumption surged during the outbreak, offline channels are starting to rebound in full momentum.

The global retail industry is facing a challenging time, as COVID-19 continues to spread across the world, with an increasing number of confirmed cases in many countries and regions. As the pandemic continues to unfold, the international consumption market is showing a similar trend as observed in China earlier this year: online channels are demonstrating strong growth while retailers are accelerating the adoption of digitalization.

Justin Sargent, president of Nielsen China, said: "The pandemic has forced many people to stay at home instead of going out, and this has resulted in a significant change in the retail landscape. The way people shop is no longer the same and some of these changes may be permanent. We are also witnessing this shift globally and this means that retailers and brand owners need to rethink where, when and how people shop, and adapt their strategy to meet the consumers’ new needs."

The COVID-19 situation in China has been largely under control, as enterprises resumed full business operation while people’s life generally returned to normal. The consumption market has also shown a steady recovery momentum. According to the National Bureau of Statistics, total retail sales of social consumer goods in the third quarter grew 0.9% year-on-year, and this is the first positive quarterly growth recorded this year. Additionally, China will be the only major economy in the world reporting a positive growth this year, according to a forecast from the IMF.

Tina Ding, Chief Commercial Officer of Nielsen China, said: "As seen from China’s latest economic data, as well as Nielsen’s FMCG data, the overall retail sector is on a path to recovery. During the epidemic, offline channels were severely affected while digital platforms such as online office, online shopping, online education and online entertainment, grew strongly. However, we are now starting to see positive signs of recovery in the offline channels operated by FMCGs."

Online growth became rational while offline recovered in full momentum

According to Nielsen’s study, heading into the third quarter, online sales started to grow in a more rational manner while offline sales rebounded strongly. In fact, the importance of online channels reached a high of 34% in the second quarter, boosted by the epidemic, as well as the e-commerce shopping festival. However, in July and August, the growth of online sales became more rational, and the importance of online channels was 25% and 27% respectively. Meanwhile, offline channels started to recover in full momentum, and the importance of offline channels in July and August was 75% and 73% respectively, compared to 66% in the second quarter.

Through tracking offline retail channels in March and August, Nielsen found that by August, most of the offline existing stores had already returned to normal operation. Even the traditional channels, such as cosmetics stores and mother baby products stores which were hardest hit by the pandemic, had resumed operation by August. The in-business rate of existing stores in Modern Trade (MT) increased from 76% in March to 86% in August, while that of Traditional Trade (TT) increased from 64% to 80%; the in-business rate of existing stores in Baby channel increased from 67% to 80%, while that of Cosmetics channel increased from 53% to 75%.

Within MT, small and big format stores showed different patterns. The in-business rate of existing stores in Hyper channel decreased from 98% in March to 93% in August, while that of Super channel decreased from 95% to 87%. This trend is a sign of intensified reshuffle within big format MT. In contrast, small format stores showed strong resilience in terms of recovery. The in-business rate of existing stores in Mini channel rose from 73% in March to 84% in August, while that of CVS channel rose from 79% to 90%.

Intensified reshuffle of golden stores

Through continuous channel monitoring, Nielsen found that golden stores are becoming more fragmented, especially in lower-tier cities. Our data showed that the number of stores in MT increased 6.3% from February to September, while golden stores increased 10%. As more and more high-quality stores enter the market, the sales concentration of stores across various channels will generally reduce. Thus, assortment will become more challenging, and retailers will need to cover more stores in order to obtain the same share of sales.

Tina also highlighted that regardless of upper and lower-tier cities, except the CVS in upper tier cities, the sales concentration in almost all channels saw the decline, and the sales concentration in the lower-tier cities further declines after the epidemic, which means that it will become more challenging to penetrate deeply in the market and hence is imperative for brand owners to adjust their channel strategies.

Moreover, there is a big change of golden stores in the market. According to Nielsen’s study, from February to September, nearly 56% of golden stores have changed (newly-opened stores and store ranking up account for 33%, while store closures and store ranking down account for 23%). Small-format channels changed more dramatically, with minimarket golden stores’ changing rate as high as 58% and that of CVS as high as 42%.

Among the new golden stores, newly-opened stores account for 71% and demonstrate very strong potential. 26% of the newly-opened stores rank among the top-tier stores contributing TOP 40% of total sales. 74% are tier-3 and tier-4 stores which contribute TOP 40%-80% of total sales.

Target growth opportunities in O2O

According to Nielsen’s study, O2O, social commerce and lower-tier cities will be the major factors driving channel growth. When asked about what is their business focus in the next 12-18 months, 79% of the respondents chose O2O, 64% chose social commerce and private domain traffic, and 57% chose deep penetration into lower-tier cities.

During the pandemic, O2O witnessed a spike in growth, as more and more brand owners leveraged the O2O channel to gain access to more market opportunities. The adoption of the O2O channel is also becoming a new normal at a very fast speed. However, how to play well in the new channel is a big challenge for the entire industry.

So where can we find O2O growth opportunities in China’s vast market? According to Nielsen’s study, O2O growth is mainly driven by lower-tier cities. In June, O2O orders in lower-tier cities grew 43% year-on-year, and O2O orders in lower-tier cities accounted for 41% of O2O orders nationwide, up from 33% in the same period last year. Besides, the performance of O2O in different provinces varies significantly. For example, Anhui and Sichuan are both provinces with a large population. However, in June, O2O orders in Anhui increased 69% year-on-year while Sichuan recorded zero growth. This was because in Sichuan, the growth in lower-tier cities were offset by the decline in upper-tier cities. Therefore, brand owners need to consider carefully about where is the best place to start O2O.

In addition, brand owners should consider these questions: Who are my target consumers? Which O2O platforms are suitable for me? Which category and product should I choose? For example, through data tracking, it was observed that the ordering time varies across different O2O platforms, which means that the user base also varies across different O2O platforms. In addition, the penetration rates of categories on O2O platform are not the same either. Some categories have a very high repeat purchase rate on O2O, but not all categories will perform equally well.

Justin said: "As we operate in a new normal, retailers and brand owners should focus on omni-channel development including emerging channels such as O2O and pursue innovations that address emerging consumer needs and shopping scenarios. At the same time, they should also leverage the power of data to gain real and valuable insights in order to refine their development strategies in a timely manner to achieve higher ROI resource allocation."

About Nielsen

Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Nielsen is divided into two business units. Nielsen Global Media provides media and advertising industries with unbiased and reliable metrics that create a shared understanding of the industry required for markets to function. Nielsen Global Connect provides consumer packaged goods manufacturers and retailers with accurate, actionable information and insights and a complete picture of the complex and changing marketplace that companies need to innovate and grow.

Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge.

An S&P 500 company, Nielsen has operations in over 90 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.

 

Related Links :

http://www.nielsen.com

PR Newswire

Xiaobai Maimai to Report Unaudited Financial Results for First Half of Fiscal Year 2021 on December 21, 2020

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BEIJING, Dec. 18, 2020 — Xiaobai Maimai Inc. (NASDAQ: HX), formerly known as Hexindai Inc., ("Xiaobai Maimai" or the "Company"), a social e-commerce platform in China, today announced that it will release its unaudited financial results for the six months ended September 30, 2020, on Monday, December 21, 2020, before the open of U.S. markets.

The Company will host a conference call to discuss the earnings at 8:00 a.m. Eastern Time on Monday, December 21, 2020 (9:00 p.m. Beijing/Hong Kong Time on the same day).

Dial-in numbers for the live conference call are as follows:

United States:

1-888-346-8982

Hong Kong:

852-301-84992

Mainland China:

4001-201203

International:

1-412-902-4272

Passcode:

Xiaobai Maimai

A telephone replay of the call will be available two hours after the conclusion of the conference call to December 28, 2020.

Dial-in numbers for the replay are as follows:

United States:

1-877-344-7529

International:

1-412-317-0088

Passcode:

10150609

A live and archived webcast of the conference call will be available on the Investor Relations section of Xiaobai Maimai’s website at http://ir.xiaobaimaimai.com.

About Xiaobai Maimai Inc.

Xiaobai Maimai Inc. (NASDAQ: HX), formerly known as Hexindai Inc., ("Xiaobai Maimai" or the "Company"), is a social e-commerce platform based in Beijing, China. The Company collaborates with domestic e-commerce platforms and offers users a wide selection of high-quality and affordable products on its social e-commerce platform. Leveraging its cooperation with mainstream e-commerce platforms and online service marketplaces, the Company continues to generate fast growth for the business by identifying and introducing cost-efficient products through its data analytics algorithm and operating system, and attracts users to its platform with excellent customer service.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets," "guidance" and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: the Company’s goals, strategies and expansion plans; its future business development, financial condition and results of operations; its ability to attract and retain new users and to increase revenues generated from repeat users; its expectations regarding demand for and market acceptance of its products and services; its relationships and cooperation with e-commerce platforms and services marketplaces; trends and competition in China’s e-commerce market; the expected growth of the Chinese e-commerce market; Chinese governmental policies relating to the Company’s corporate structure and the e-commerce industry; and general economic conditions in China. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this announcement is current as of the date of this announcement, and the Company does not undertake any obligation to update such information, except as required under applicable law.

For more information, please visit http://ir.xiaobaimaimai.com.

For investor inquiries, please contact:

Xiaobai Maimai
Investor Relations
Ms. Zenabo Ma
Email: ir@xiaobaimaimai.com

Christensen

In China
Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: Eyuan@christensenir.com

In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com

Related Links :

https://ir.xiaobaimaimai.com/

PR Newswire

The “renewal” of a small Chinese town by e-commerce and live streaming

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DONGGUAN, China, Dec. 14, 2020 — Recently, the opening ceremony of the 7th Humen International E-commerce Festival was held at the Humen Convention and Exhibition Center in Dongguan city of Guangdong province. It is an industrial exchange and display platform for Humen, a Chinese town specialized in women clothing industry, to accelerate the digitalization of traditional industries, improve the efficiency of the supply chain and to optimize the image of the localbrands and products.

E-commerce development and live streaming help break through the bottleneck of traditional industrial, which has happened in Dongguan Humen town in China.

"This year’s epidemic only has little impact on the industry. As early as 2017, some clothing shops in Humen have started selling products through livestreaming platforms, a great way to tap the consuming potential of China’s third- and fourth-tier cities. That’s why the local industry can resist the risks brought by the epidemic and witness a growth in sales volume," said Wang Wei, chairman of Humen E-commerce Industrial Park. While China fosters a new development paradigm with domestic circulation as the mainstay and domestic and international circulations reinforcing each other, Humen of Dongguan is once again at the forefront of reform.

Yang Tao, executive director of the Shanghai United E-commerce Research Institute, believes that the epidemic has changed consumers’ shopping habits and the demand for online shopping has been increasing significantly. The data and technology of e-commerce platforms play a key role in ensuring the unimpeded flow between supply and demand sides, production and consumption, which helps China’s domestic circulation.

"In the past, manufacturers relied on business experience to judge the styles and production quantities of clothing products. Now, they can test and pre-sell on e-commerce platforms, and based on pre-sale data, analyze whether the styles are easy to sell and determine the quantity of production, reducing the stocking risks," said Li Dingru, president of the Humen E-commerce Association.

With this change, the supply-side structure of Humen’sapparel industry has been improving to meet the consumer demands of higher quality. Take Humen E-commerce Industrial Park as an example, it provides many producer services, including training for livestreaming hosts, e-commerce marketing, online shops operation and art design to suit for the demand of transformation and upgrading of companies.

Wang Yaoming, mayor of Humen town, said that the scale and quality of Humen’s e-commerce industry have continued to improve, with optimized structure benefits and accelerated innovative development. This year, the industry has been further developing, helping stimulate consumption, attract investment, and promote employment.

In 2019, Humen, with a permanent population of about 600,000, has more than 10,000 enterprises and self-employed individual businesses engaged in e-commerce and over 150,000 relevant employees, of which 90% are engaged in the apparel industry.The online sales reached to nearly 47.8 billion yuan through third-party platforms, and about 380 million parcels were delivered through express delivery, the amounts of which have been seeing an annual growth rate of 10%.

The rapid development of the new business model fosters new growth areas. However, it also brings new problems such as low access threshold and uneven quality of employees. The local industrial parks have also faced problems like buyer complaints, nonstandard product tags, and livestreaming in disorder.

In order to regulate deviant behavior and prevent follow-up problems, the Technical Committee for Standardization of Guangdong E-commerce Industrial Parkshas been officially established in Humenin 2019. Since then, it has successively participated in the formulation of four national standards and two industrial standards, to promote the healthy and sustainable development of the industry.

According to Li Dingru, the key in standardization also lies in the close integration of employees and the industry. The local shops in Humen cultivate their own livesteaming hosts who understand the products and the brands better and are able to truly impress consumers with their products, increasing the credibility of shops while avoiding the negative effects of false publicity brought by KOL hosts or celebrity hosts.

PR Newswire

Adyen and Microsoft Launch Network Token Optimization

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By collaborating with Adyen on Network Token Optimization, Microsoft saw positive growth in authorization rates

AMSTERDAM, Dec. 11, 2020 —  Adyen (AMS: ADYEN), the global payments platform of choice for many of the world’s leading companies, expands its collaboration with Microsoft to accelerate payments innovation for both companies with the launch of Adyen Network Token Optimization. Adyen is one of the first payment platforms to enable tokenized payments across multiple schemes and to offer automated optimization of the use of tokens to increase authorization rates. By adopting Network Token Optimization, merchants like Microsoft are able to realize significantly more revenue due to increased authorization rates.  

"Customer experience is at the center of everything we do, and when it comes to the payments process it’s about making it faster, simple and secure," said Matt Rossmeissl, Vice President of Commerce Engineering Operations at Microsoft. "Product innovation is at the core of what we do at Microsoft and Adyen’s Network Token Optimization is a factor in driving better authorization rates and customer satisfaction."

Adyen and Microsoft have been working together since July 2015, starting with European acquiring. Today, Adyen processes payments for Microsoft globally, across all Microsoft products and services. Microsoft utilizes multiple Adyen products in addition to Network Token Optimization, including Real-time Account Updater to ensure a seamless consumer shopping experience by always charging the most up to date card. Adyen also supports various local payment methods in a number of countries for Microsoft, including U.S.-based debit networks, a more recent Adyen development.

"We always build products with a focus on our merchants and their end customers, and Microsoft pushes us to help create better global solutions. We have benefited from Microsoft’s consistent desire to provide better experiences for their customers," said Kamran Zaki, COO at Adyen. "At the forefront of innovation, the Microsoft team is always willing to act as an early adopter for many of our new products and features. We work together every day to create positive shopping experiences for Microsoft customers, and are excited to see what we will create next."

About Adyen

Adyen (AMS: ADYEN) is the payments platform of choice for many of the world’s leading companies, providing a modern end-to-end infrastructure connecting directly to Visa, Mastercard, and consumers’ globally preferred payment methods. Adyen delivers frictionless payments across online, mobile, and in-store channels. With offices across the world, Adyen serves customers including Facebook, Uber, Spotify, Casper, Bonobos and L’Oreal. The cooperation with Microsoft as described in this merchant update underlines Adyen’s continuous growth with current and new merchants over the years.

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BPC expands offering with SmartVista digital banking app solution

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White label solution empowers banks and fintechs to roll out app-based digital and mobile banking services fast

Solution boasts chatbot text-to-speech feature to boost customer engagement in the digital era

LONDON, Dec. 11, 2020 — BPC, the leading provider of digital payment solutions, has unveiled its new mobile and digital banking app solution, designed to provide banks and fintechs with a comprehensive set of features that go beyond traditional banking. The app solution offers ease of use and fast implementation for banks that wish to accelerate their digital transformation and fintechs that need to go to market fast.  

Developed in house, the new app ultimately fulfils BPC’s promise to ‘bridge real life to digital’ in a contactless manner for its customers. In response to the digital banking boom during the pandemic, the app is built to serve all segments from retail customers and merchants, to agents in both mature and emerging markets, allowing them to quickly access the digital economy. The app comes with white label UX templates for institutions to style and brand the user interface as well as configurable process flows, making for a true end-to-end digital experience.

BPC’s SmartVista app is built to give financial institutions the tools to boost customer engagement, drive customer loyalty and generate new revenue streams from cross and up selling.  

Key features of the new SmartVista mobile banking app include:

  1. Chatbot with Speech-to-Text Features: enabling customers to securely transact voicing queries or give instructions to the app, creating conversational, frictionless interactions that boost engagement.
  2. Personal Financial Management: taken to the next level with management on a daily, weekly or monthly basis, using personalised alerts and limits, built to offer personalised control of financial health for customers.
  3. QR Code Payments: available to customers and merchants, offering static and dynamic QR support and the ability to handle multiple QR codes, a feature in rising demand since the start of the COVID-19 pandemic.
  4. A unified merchant and agent banking app: which creates a dual experience, from accepting payments for retail purchases to offering agent banking services on behalf of a financial institution.
  5. Trading and Investment: delivered through open APIs, to integrate with any third-party investment app or local exchange house to gather trade information within one single banking app. Customers can grow their earning capabilities, while providing new revenue generation activity for financial institutions.
  6. Goals and Loyalty: help customers make the most out of their money. Customer goals such as saving for a dream car, house, education or holiday destination are smartly blended with loyalty features, making it possible for financial institutions to expand their business models and expose partners at the right time and location, while staying relevant to the customer and their needs.

Oleg Patsiansky – Head of Digital Banking at BPC commented: "A free card and a bank account are not sufficient to attract new customers. Relevance is the new ‘killer app’ and we are proud of our new mobile banking app, which has been inspired by our eclectic experience in serving tier one banks to fintechs in over ninety countries. The app blends all of our expertise in banking, mobility and commerce into a contextual experience wrapped around each individual customer and his or her private/business needs. Today’s modern technology makes it possible to create contextual and thus relevant experiences for BPC clients and their end users around the world."

Find out more about BPC’s SmartVista digital banking app solution here.

 

PR Newswire

Standard Commended by Frost & Sullivan for Ensuring a Frictionless Payment Process with its Checkout-Free Platform for Retailers

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Standard seamlessly integrates AI and computer vision technology into the retailer’s existing infrastructure, providing an enhanced shopping experience for customers

SANTA CLARA, Calif., Dec. 9, 2020 — Based on its recent analysis of the North American autonomous retail checkout market, Frost & Sullivan recognizes Standard with the 2020 North American Technology Innovation Leadership Award. Through a first-of-its-kind AI- and computer vision-powered checkout-free solution, the Standard platform enables a frictionless shopping experience for customers, enabling them to walk into a store, grab what they need, and walk out without having to stand in line or scan anything. The Standard platform also helps retailers autonomously capture product data and track customer movement in a store. It leverages deep-learning-based product segmentation and an identification technique to provide real-time intelligence to retailers for improved customer retention, smooth purchase experiences, and higher profits.

Standard
Standard

"Unlike competing solutions that require a gamut of custom hardware systems, shelving, sensors, and scanning software that drive up the cost and complexity of implementation at the store, Standard’s retail checkout infrastructure consists of nothing more than AI-based ceiling-mounted cameras. This setup enables simple integration of the company’s infrastructure into the store’s existing layout, thereby eliminating the need for reconfiguration," said Dhiraj Badgujar, industry analyst at Frost & Sullivan. "Standard has also created an alternative checkout-free model that can be utilized by all brick-and-mortar retailers, irrespective of store size."

Standard’s computer vision cameras track customers based on their shape and movement, eliminating the need for scanning, facial recognition, and other biometric identification processes while ensuring customer privacy and security. Customers within the store are connected through the Standard mobile app (which can be white labeled by retailers) that enables in-store cameras to map them to their payment methods. The data captured by the cameras is transferred to the AI platform installed at the checkout counter, where machine learning algorithms process it in real time to instantly recognize which items the person has, provide insights and enable a smooth payment experience, thereby eliminating the long wait time at the payment counter.

Standard’s technology is less expensive than competing solutions and can be easily retrofitted; it leverages cameras that are cost-effective and flexible enough for easy deployment within stores. Other solutions, in contrast, utilize sensors installed on multiple shelves, involve scanning, and require the store to adjust to the solution. Standard’s technology can recognize thousands of different products within a 20-foot range, even in a very crowded store.

"The company uses a software-as-a-service (SaaS) model to successfully demonstrate its platform for global retail customers. Initially focused on securing a strong foothold in the United States, Standard has expanded into Europe, Japan, and other markets around the world," noted Badgujar. "The combination of resources, proven expertise, and affordable technology development has enabled Standard to achieve commercial success and position itself as a trusted partner in the North American autonomous retail checkout industry."

"With the ability to now safely shop in seconds without waiting in line, our customers around the world tell us that the Standard platform has transformed the retail experience," said Jordan Fisher, Founder and CEO, Standard. "We are honored to receive this award, the result of the tireless and groundbreaking work of the entire Standard team."    

Each year, Frost & Sullivan presents the Technology Innovation Leadership Award to the company that has demonstrated uniqueness in developing and leveraging new technologies that deliver significant customer value.

Frost & Sullivan Best Practices awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research to identify best practices in the industry.

About Frost & Sullivan

For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion. Contact us: Start the discussion.

Contact:

Lindsey Whitaker
P: +1 (210) 477-8457
E: lindsey.whitaker@frost.com

About Standard Cognition

Standard is transforming retail as we know it, with the first autonomous checkout solution that works in any existing store and allows customers to walk in, grab what they need, and walk out without waiting in line or stopping to scan or pay. The company’s machine vision and AI-powered solution is the only one that can be quickly and easily installed in retailers’ existing stores, representing a giant leap forward for retail tech and enabling retailers to rapidly deliver an amazing new shopping experience to customers. The first and best-funded startup in this space, Standard has launched multiple operational stores with customers, and is working with retailers around the world. Learn more at https://standard.ai/

Contact:

Alex Plant
Marketing at Standard
plant@standard.ai 

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Adyen to partner with Hungry Jack’s to improve its customer service with payment-led updates

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AMSTERDAM, Dec. 9, 2020 — Adyen (AMS: ADYEN), the global payments platform of choice for many of the world’s leading companies, today announced it has partnered with Hungry Jack’s, the Australia-based quick-service restaurant, to improve its point-of-sale (POS) terminal fleet and help unify its in-store and ecommerce channels – driving cost savings, while improving revenues and customer experience.

"Adyen’s POS offering has had a significant impact on the business. The last thing you want is your payment system failing on a busy night. A reliable payments set-up allows for quick, seamless customer experiences, and thus improves our turnover," said Hungry Jack’s CIO Bruce Nolte. "We want to make it as easy as possible to pay and focus on having a preferred option for everybody across channels. Integrating to the Adyen platform has unlocked this for us. Furthermore, Adyen’s unified commerce solution enabled us to utilize online, delivery, and drive-through options while the dining room was closed throughout the COVID-19 pandemic," Nolte concluded.

"Offering smooth customer experiences are crucial for QSRs – especially during peak service times and for drive-through and delivery," said Michel von Aalten, Adyen Country Manager of Australia and New Zealand. "We’re excited by the results Hungry Jack’s has already achieved and look forward to supporting them further on their unified commerce journey."

About Hungry Jack’s

Hungry Jack’s has been the home of the famous flame-grilled Whopper in Australia for almost 50 years. Australians enjoy visiting Hungry Jack’s network of more than 440 restaurants nationwide for great tasting, fresh food. From delicious flame grilled 100% Aussie beef burgers, the plant-based range, the succulent chicken menu items, brekky wraps or the barista made coffee, Hungry Jack’s is the destination for classic favorites, innovative new menu items and that famous flame grilled smoky BBQ flavor. To learn more about Hungry Jack’s, please visit www.hungryjacks.com.au or follow us on Facebook and Twitter.

About Adyen

Adyen (AMS: ADYEN) is the payments platform of choice for many of the world’s leading companies, providing a modern end-to-end infrastructure connecting directly to Visa, Mastercard, and consumers’ globally preferred payment methods. Adyen delivers frictionless payments across online, mobile, and in-store channels. With offices across the world, Adyen serves customers including Facebook, Uber, Spotify, Microsoft, Singapore Airlines, and L’Oréal. The cooperation with Hungry Jack’s as described in this merchant update underlines Adyen’s continuous growth with current and new merchants over the years.

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Gubagoo Releases Revolutionary Automotive Digital Retailing Platform

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Powering Asbury Automotive’s new eCommerce offering ‘Clicklane’, Virtual Retailing 2.0 is now available to dealers nationwide.

BOCA RATON, Fla., Dec. 3, 2020 — Gubagoo – the leading provider of digital retailing, conversational commerce, chat, and messaging solutions for Automotive Dealerships – announced a powerful new release of its industry-leading Virtual Retailing platform.

With online car sales soaring across the nation, there has never been a more compelling time for automotive dealers to embrace digital retailing. The industry is quickly moving from early adopters to the tipping point of wide adoption, with the pandemic having accelerated dealerships’ demand for online eCommerce tools.

Built on a conversational commerce platform, Gubagoo’s Virtual Retailing has been a market leader since its introduction in 2019. The platform allows customers to purchase a vehicle online, and arrange delivery to their door.

The new release provides real-time, data-driven trade-in values, VIN-specific F&I products personalized to the driver, and is the only retail platform offering an automotive loan marketplace with more than 30 lenders including online contracting and signature.

"The entire process of purchasing a vehicle can be completed in the same amount of time as it takes to purchase groceries, online," said Brad Title, CEO of Gubagoo. "With an integrated, seamless transition between online and in-store, any dealer, anywhere in the country, can now offer the ultimate frictionless car-buying experience for their customers."

Asbury Automotive Group, one of the nation’s largest dealership groups, has launched Clicklane, their full eCommerce solution, powered by Gubagoo’s Virtual Retailing 2.0 platform. Close collaboration between Asbury and Gubagoo was key to the innovation leaps made in this new release.

"Gubagoo’s new release of Virtual Retailing was the only solution that could meet our demanding standards for the end-to-end eCommerce experience we envisioned for Clicklane," said David Hult, CEO of Asbury. "Their execution and support have been flawless, and their product is positively a game-changer."

Asbury Automotive’s press event can be viewed online: https://www.asburyauto.com/clicklane/watch

From the beginning, Gubagoo’s approach to automotive eCommerce has been to ensure that consumers enjoy a fast, fun, and easy purchasing experience.

Gubagoo’s Virtual Retailing and messaging tools empower dealers to monitor, engage, and connect with consumers in real-time, through chat, text, Messenger, or video conferencing. Providing guided assistance online and offline is key to staying connected to consumers through the buying journey.

"Websites by-and-large are cold and lonely," said Title. "Consumers need guided assistance without the sales pressure."

Virtual Retailing 2.0 was previewed to dealerships at the Automotive Analytics and Attribution Summit, hosted by author, speaker, and automotive influencer Brian Pasch. In a recent podcast, Pasch emphasized the importance of being able to serve customers in real-time, rather than "chasing leads" after customers leave the website, as critical to seeing success from digital retailing.

"Our data shows that when you engage and serve customers while they’re in your online showroom, you will sell more cars at a lower cost," said Pasch.

Many dealerships who have adopted Gubagoo’s Virtual Retailing, or switched from another digital retailing provider, have seen exciting results.

"Our results from Virtual Retailing have been very strong," shared Nate Sato, Director of Digital Marketing at Ken Garff Automotive Group. "There’s no question – our customers love the experience, and our team is thrilled."

"Creating a comfortable, enjoyable experience is the key to winning the hearts of consumers," added Title. "We are very excited to partner with dealerships across the country to help future-proof their online strategy. With Gubagoo’s Virtual Retailing 2.0, dealers’ can expect a significant increase in their online sales."

For a demo of the new release of Virtual Retailing, have a chat with the team at Gubagoo.com, or email hello@gubagoo.com.

About Gubagoo

Gubagoo is the leading provider of conversational commerce and retail solutions for both automotive dealerships and OEMs. Used by more than 7,000 dealerships worldwide, and over 90% of the top 150 dealer groups in America, Gubagoo’s messaging platform instantly connects consumers to dealerships through live chat, text, video, Facebook Messenger, and other digital messaging channels, converting high quality leads, appointments, and sales for dealerships.

Gubagoo’s Virtual Retailing platform provides an end-to-end buying experience on dealership websites. Customers are able to buy a car online with real-time support from dealership personnel, and have the vehicle delivered at the dealership or their door. For more information, visit gubagoo.com.

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WeTrade Group Inc. Reports Third Quarter 2020 Unaudited Financial Results

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BEIJING, Dec. 3, 2020 — WeTrade Group Inc. ("Wetrade" or the "Company") (US: WETG), an emerging growth company engaged in the business of providing technical services and solutions via its membership-based social e-commerce platform, today reports its unaudited financial results for the third quarter ended September 30, 2020.

Mr. Pijun Liu, Chief Executive Officer of Wetrade, commented, "We are very pleased to report our markets and businesses continue to prove resilient in the face of a challenging macro-environment of COVID-19. Our third quarter results were above our expectations across the group from the top line to the bottom line. Revenue and net income were recorded $2.01 million and $0.74 million respectively. Our Q3 gross margin reached 78.7%, proving our strong profitability." 

Mr. Liu continued, "The competition among merchants on mainstream ecommerce platforms in China is intensifying, which creates opportunities for WeChat e-commerce(micro-business) and benefits its service providers like us. As a new decentralized model, WeChat e-commerce is the inevitable development of the next era and small and medium-sized merchants are the inevitable choice to seize traffic. Our customers are adapting to a new cadence in this environment, and we continue to adapt to support them in their evolving ways of working. The number of WeChat e-commerce users is expected to reach 100 million, 200 million and 360 million by the end of 2020, 2021 and 2022 respectively, demonstrating micro-business is a high-growth industry with a large total addressable market. To address this market, we independently developed a cloud intelligent system ("YCloud") for WeChat e-commerce through big data learning, social connection building, multi-channel data analysis, etc. We are engaging in providing better cloud intelligent solutions for micro-business users."

Mr. Kean Tat Che, Chief Financial Officer of Wetrade, commented, "We are very pleased to see that the Company maintains a sustained and rapid development. The revenue growth this quarter mainly comes from the Company’s technology and supply chain empowerment which enables customers to rapidly expand their consumer groups and establishing solid consumer base form a stable repurchase. YCloud in Q3 has served many customers including 12 million individuals, 60,000 Wechat group owners and over 2,000 hotels. Looking forward, we will focus on in-depth empowerment of new applications in the vertical field of WeChat e-commerce business, providing more scene-based applications and seeking new partnerships to explore new opportunities."

Third Quarter of 2020 Financial Results

For the Three Months Ended September 30,

($ millions, except per share data)

2020

2019

% Change

Revenue

2.01

–

NM

Gross Profit

1.58

–

NM

Gross Margin

78.7%

-%

NM

Operations Profit/(Loss)

1.18

(0.11)

NM

Net Income/(Loss)

0.74

(0.11)

NM

Earnings/(Loss) Per Share

0.00

(0.00)

NM

*Notes: pp represents percentage points

Revenue

Total revenue was $2.01 million for the three months ended September 30, 2020, compared with nil for the same period of last year, which was mainly due to increase in service revenue generated from auto-billing management system from micro-business users.

Cost of Sales

Total cost of sales was $0.43 million for the three months ended September 30, 2020, compared with nil for the same period of last year.

Gross profit and gross margin

Gross profit was $1.58 million for three months ended September 30, 2020, compared with nil for the same period of last year. 

Gross margin was 78.7% for the three months ended September 30, 2020, compared with nil for the same period of last year.

Operations Profit/(Loss)

General and administrative expenses increased by $0.30 million, or 267.0%, to $0.41 million for the three months ended September 30, 2020 from $0.11 million for the same period of last year. The increase was mainly due to increase in the payroll expenses as a result of 77 new staffs were recruited during the period.

Operations profit was $1.18 million for the three months ended September 30, 2020, compared with operations loss of $0.11 million for the same period of last year.

Net Income (loss)

Net income was $0.74 million for the three months ended September 30, 2020, compared with net loss of $0.11 million for the same period of last year. Basic and diluted earnings per share was nil for the three months ended September 30, 2020, compared with nil for the same period of last year.

Nine months ended September 30, 2020 Financial Results

For the Nine Months Ended September 30,

($ millions, except per share data)

2020

2019

% Change

Revenue

2.89

–

NM

Gross Profit

2.37

–

NM

Gross Margin

82.2%

-%

NM

Operations Profit/(Loss)

1.76

(0.26)

NM

Net Income/(Loss)

1.31

(0.26)

NM

Earnings/(Loss) Per Share

0.00

(0.00)

NM

*Notes: pp represents percentage points

Revenue

Total revenue was $2.89 million for the nine months ended September 30, 2020, compared with nil for the same period of last year, which was mainly from the service revenue generated from auto-billing management system from customers.

Cost of Sales

Total cost of sales was $0.52 million for the nine months ended September 30, 2020, compared with nil for the same period of last year.

Gross profit and gross margin

Gross profit was $2.37 million for nine months ended September 30, 2020, compared with nil for the same period of last year. 

Gross margin was 82.2% for the nine months ended September 30, 2020, compared with nil for the same period of last year.

Operations Profit/(Loss)

General and administrative expenses increased by $0.36 million, or 142.0%, to $0.62 million for the nine months ended September 30, 2020 from $0.26 million for the same period of last year. The increase was mainly due to increase in the payroll expenses as a result of 77 new staffs were recruited during the period.

Operations profit was $1.76 million for the nine months ended September 30, 2020, compared with operations loss of $0.26 million for the same period of last year.

Net Income/(loss)

Net income was $1.31 million for the nine months ended September 30, 2020, compared with net loss of $0.26 million for the same period of last year. Basic and diluted earnings per share was nil for the nine months ended September 30, 2020, compared with nil for the same period of last year.

Financial Condition

As of September 30, 2020, the Company had cash and cash equivalents for $6.79 million, compared to $6.59 million as of December 31, 2019. Net cash used in operating activities was $1,042,610 for the nine months ended September 30, 2020, compared to $509 for the same period of last year. Net cash provided by financing activities was $0.84 million for the nine months ended September 30, 2020, compared to $0.22 million for the same period of last year.

About WeTrade Group Inc.

WeTrade Group Inc. is an emerging growth company engaged in the business of providing technical services and solutions via its membership-based social e-commerce platform and the Company targets to provide technical and auto-billing management services for 100 million micro-business users in China. Wetrade has conducted its business operations in mainland China and trial operation in Hong Kong, Philippines and Singapore.  WeTrade has also formed the long-term technical cooperation with Yuetao App, Daren App, Yuebei App, Jingdong App, Yuedian App and Lvyue App. For more information, please visit http://www.wetradegroup.net.

Forward-Looking Statements

This press release contains information about the Company’s view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. The Company’s encourages you to review other factors that may affect its future results in the Company’s annual reports and in its other filings with the Securities and Exchange Commission.

For more information, please contact:

WeTrade Group Inc.
ir@wetradegroup.net

Ascent Investor Relations LLC
Tina Xiao
+1-917-609-0333
tina.xiao@ascent-ir.com  

 

WETRADE GROUP INC

BALANCE SHEETS

(All amounts shown in U.S. Dollars)

September 30,
2020

December 31,
2019

(unaudited)

(audited)

ASSETS

Current Assets:

Cash and Cash Equivalents

$

6,787,535

$

6,591,128

Accounts Receivables

1,030,920

–

Other receivables

276,400

–

Prepayments

197,097

–

Non current Assets:

Right of use assets

2,832,007

–

Intangible asset, net

77,196

–

Prepaid expense

10,327

–

Total Assets:

11,211,481

6,591,128

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Accrued expenses

220,412

32,000

Tax payables

556,802

–

Amount due to related parties

416,500

1,754,515

Lease liabilities, current

304,973

–

Total Current Liabilities

1,498,687

1,786,515

Lease liabilities, non- current

2,581,882

–

Total Liabilities

4,080,569

1,786,515

Stockholders’ Equity:

Common Stock; $0.00 per share par value; 305,451,498 issued and outstanding at September 30,

2020 and 300,222,000 issued and outstanding at December 31, 2019*

–

–

Additional Paid in Capital

6,057,520

222,020

Share to be issued

–

5,000,000

Accumulated other comprehensive income (loss)

183,673

–

Retained Earning/ (Accumulated Deficit)

889,719

(417,407)

Total Stockholders’ Equity

7,130,912

4,804,613

Total Liabilities and Stockholders’ Equity

$

11,211,481

$

6,591,128

*Share and per share amounts have been retroactively adjusted to reflect the increased number of shares resulting from a 1:3 stock split. 

 

WETRADE GROUP INC

STATEMENTS OF OPERATIONS

Unaudited

Three

 Months

ended S

eptember

30

2020

Three

Months

 ended

September

30

2019

Nine

 Months

 ended

September

 30,

2020

 From

 inception to

 September 30, 2019

Revenue:

Service revenue, non-related party

518,269

–

$

518,269

–

Service revenue, related party

1,493,829

2,370,192

Total Revenue:

2,012,098

2,888,461

Cost of revenue

(427,647)

(515,195)

Gross Profit

1,584,451

–

2,373,266

–

Operating Costs and expenses:

General and Administrative

407,067

110,921

617,216

255,010

Operations Profit/ (Loss)

1,177,384

(110,921)

1,756,050

(255,010)

Other income/ (loss)

38,939

–

39,060

Net Profit/ (Loss) before Income Tax

1,216,323

(110,921)

1,795,110

(255,010)

Income tax expense

475,431

–

487,984

–

Net income (loss) attributable to noncontrolling interest

740,893

(110,921)

1,307,126

(255,010)

Other Comprehensive Income (Loss)

Foreign currency translation adjustment

244,292

–

183,826

–

Total comprehensive Income (Loss)

985,185

(110,921)

1,490,952

(255,010)

Basic and Diluted Net Income (Loss) per share:

0.00

(0.00)

0.00

(0.00)

Weighted average number of shares outstanding*; Basic and

Diluted

308,704,888

300,073,998

304,166,073

300,024,666

*Share and per share amounts have been retroactively adjusted to reflect the increased number of shares resulting from a 1:3 stock split.

 

WETRADE GROUP INC

STATEMENTS OF CASH FLOWS

 From the

period

March 28,

2019

For the

Period

September

30, 2020

 (Inception)

to

September 

30,2019

(unaudited)  

(unaudited) 

Cash Flows from Operating Activities:

Net Income/ (Loss)

$

1,307,126

(255,010)

Changes in Operating Assets and Liabilities:

Trade Receivables

(1,028,044)

–

Other receivables

(275,629)

–

Prepaid expenses

(206,845)

–

Amount due to related parties

(560,020)

144,501

Intangible assets

(76,980)

–

Accrued expenses

187,839

110,000

Tax payables

555,248

–

Right of use assets

(824,106)

–

Lease liabilities

878,801

–

Net Cash Flows Used in Operating Activities:

(1,042,610)

(509)

Cash flow from financing activities:

Proceeds from issuance of common stock

835,500

222,020

Net cash provided by financing activities:

835,500

222,020

Effect of exchange rate changes on cash

403,517

–

Change in Cash and Cash Equivalents:

196,407

221,511

Cash and Cash Equivalents, Beginning of Period

6,591,128

–

Cash and Cash Equivalents, End of Period

$

6,787,535

221,511

Supplemental Cash Flow Information:

Cash paid for interest

$

–

–

Cash paid for taxes

–

–