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X Financial Reports First Quarter 2020 Unaudited Financial Results

June 30, 2020 TechENT Syndication Leave a comment

SHENZHEN, China, June 30, 2020 — X Financial (NYSE: XYF) (the “Company” or “we”), a leading technology-driven personal finance company in China, today announced its unaudited financial results for the first quarter ended March 31, 2020.

First Quarter 2020 Financial Highlights

Net revenues decreased by 31.9% to RMB529.0 million (US$74.5 million) from RMB776.4 million in the same period of 2019.
Loss from operations was RMB130.0 million (US$18.3 million), compared with income from operations of RMB279.1 million in the same period of 2019.
Net loss attributable to X Financial shareholders was RMB196.3 million (US$27.7 million), compared with net income attributable to X Financial shareholders of RMB209.0 million in the same period of 2019.
Non-GAAP^[1] adjusted net loss attributable to X Financial shareholders was RMB159.9 million (US$22.5 million), compared with non-GAAP adjusted net income attributable to X Financial shareholders of RMB251.2 million in the same period of 2019.
Net loss per basic and diluted American depositary share (“ADS”)^[2] were RMB1.22 (US$0.17) and RMB1.22 (US$0.17) respectively, compared with net income per basic and diluted American depositary share (“ADS”) of RMB1.36 and RMB1.30, respectively, in the same period of 2019.
Non-GAAP adjusted net loss per basic and adjusted diluted ADS were RMB1.00 (US$0.14) and RMB1.00 (US$0.14), respectively, compared with non-GAAP adjusted net income per basic and adjusted diluted ADS of RMB1.64 and RMB1.56, respectively, in the same period of 2019.

First Quarter 2020 Operational Highlights

The total loan facilitation amount^[3] was RMB6,823 million, representing a decrease of 29.1% from RMB9,629 million in the same period of 2019 and a decrease of 23.2% from RMB8,890 million in the fourth quarter of 2019.
The loan facilitation amount of Xiaoying Credit Loan^[4] was RMB4,631 million, representing a decrease of 41.6% from RMB7,932 million in the same period of 2019 and a decrease of 25.1% from RMB6,185 million in the fourth quarter of 2019. Xiaoying Credit Loan accounted for 67.9% of the Company’s total loan facilitation amount, compared with 82.4% in the same period of 2019.
The total outstanding loan balance^[5] as of March 31, 2020 was RMB14,370 million, compared with RMB20,187 million as of March 31, 2019 and RMB17,267 million as of December 31, 2019.
The average loan amount per transaction^[6] of Xiaoying Term Loan^[7] was RMB15,745, representing an increase of 37.7% from RMB11,434 in the same period of 2019 and an increase of 7.8% from RMB14,611 for the fourth quarter of 2019.
The average consumption amount per user^[8] of Xiaoying Revolving Loan^[9] was RMB 8,582, representing an increase of 3.8% from RMB8,268 for the fourth quarter of 2019.
The delinquency rates for all outstanding loans that are past due for 31-90 days and 91–180 days as of March 31, 2020 were 6.71% and 7.12%, respectively, compared with 4.05% and 5.11%, respectively, as of December 31, 2019, and 3.56% and 5.21%, respectively, as of March 31, 2019.
The number of cumulative borrowers, each of whom made at least one transaction on the Company’s lending platform, as of March 31, 2020 was 5,732,385.
Total cumulative registered users reached 42.6 million as of March 31, 2020.
Institutional funding accounted for 81.7% of the total loan facilitation amount, compared with 50.2% in the fourth quarter of 2019.
The Gross Merchandise Value (“GMV”)^[10] of Xiaoying Online Mall^[11] was RMB60.8 million, representing a decrease of 62.2% from RMB160.9 million in the fourth quarter of 2019.

Mr. Justin Tang, the Founder, Chief Executive Officer and Chairman of the Company, commented, “Despite challenges created by the Coronavirus Disease (the “COVID-19”) pandemic adversely impacting our operating environment, we made meaningful progress in expanding institutional funding for all new loan products originated on our platform during the quarter. Institutional funding accounted for 81.7% of the loans facilitated through our platform in the first quarter, representing an increase from 50.2% in the previous quarter. We rapidly built upon this with institutional funding which accounts for 100% of funding for the loans facilitated through our platform now.”

“Maintaining full compliance with current regulations and adapting to the ever changing macroeconomic environment have been critical to our success so far. We continued to diversify our institutional funding sources and deepen our relationships with financial partners. Building our platform out to scale and strengthening the confidence our funding partners have in us is an important part of our long-term strategy as we continue to provide the most user-friendly and convenient financial services to borrowers all over China.

“As of March 31, 2020, the total credit lines provided by our institutional partners expanded to RMB58.6 billion from RMB46.7 billion as of December 31, 2019. Given the current uncertainties in the market, this further proves that our asset quality and risk management capabilities continue to be well recognized by our institutional partners despite the impact from the pandemic. We are currently in discussions with a number of our partners about further reducing our funding costs.”

“We continue to adopt a strategic and disciplined approach to risk management and have implemented stricter criteria when assessing borrowers because we believe it is even more important now for the sustainability of our business. An adjustment period is therefore expected and is reflected in the lower number of active borrowers during the quarter. The number of active borrowers this quarter was 428,366, representing a decrease of 29.7% from 609,368 in the fourth quarter of 2019. Evaluating borrowers with stricter criteria is critical to reducing loan default rates at their later stages and strengthening our ability to generate stronger results when the market is expected to rebound during the second half of 2020”.

“In conclusion, there is no doubt that economic disruption from the COVID-19 pandemic will force all businesses that rely on consumption to once again adjust their strategies rapidly. Most importantly, the fundamental drivers underpinning the enormous growth opportunities in China’s personal finance industry have not changed. As we continue to evolve from a pure financial services provider to a more comprehensive business services provider, we are confident that we are well positioned to not just survive these challenging market conditions, but thrive when the market rebounds. We are committed to providing our customers the most user-friendly, convenient and comprehensive financial services, in addition to the best loan solutions on the market.”

Mr. Simon Cheng, President of the Company, added, “Over the past few quarters, we continued to ramp up our technology-driven risk infrastructure and strengthened customer acquisition. This solid foundation allowed us to successfully manage a rise in delinquency rates during the peak of the pandemic and has positioned us to emerge even stronger. The downturn in economic activity created by the pandemic has begun to gradually improve. While restrictions put in place to contain the pandemic continue to ease and life returns to normal, we have seen an improvement in delinquency rates in April 2020. We also saw a significant rebound of both loan facilitation amount and number of active borrowers of Xiaoying Credit Loan in April, which strengthens our confidence in the gradual recovery taking place in China.”

“Overall, the evolving health crisis and growing impact from COVID-19 have been weighing heavily on consumer sentiment in China, which is reflected in the performance of Yaoqianhua and Xiaoying Online Mall during the quarter. In order to control the impact of COVID-19, we have taken a more stringent risk policy. The GMV of Xiaoying Online Mall declined 62.2% from the fourth quarter of 2019 to RMB60.8 million. The number of active users of Yaoqianhua reached around 463,000 as of March 31,2020 as compared to approximately 408,000 as of December 31, 2019. Transaction volumes for Yaoqianhua, our revolving loan product previously known as Xiaoying Wallet, declined slightly to RMB2,192 million from RMB2,204 million last quarter. Yaoqianhua’s outstanding loan balance increased to RMB1,801 million as of March 31, 2020 from RMB1,503 million as of December 31, 2019 and now has an approved cumulative credit line of RMB11 billion with a credit utilization rate of around 28.0% as of March 31, 2020.”

“We believe the pandemic has significantly affected consumer behavior and at the same time created many more new opportunities for us to drive future growth. In addition, China’s central and local governments have recently begun rolling out a series of policies to guide businesses as they resume production and jump-start domestic consumption once again. Driven by supportive government policies in place and with consumer sentiment steadily recovering, we anticipate a strong but gradual recovery in Yaoqianhua and Xiaoying Online Mall.”

“We have also hit 100% of our institutional funding target. We remain in active negotiations with funding partners to further decrease funding costs and are in talks with other prospective financial partners which should bring down funding costs even further. At present, we have ample funding sources to meet growing demand as consumer sentiment improves.”

Mr. Kevin Zhang, Chief Financial Officer of the Company, added, “We delivered solid results in the first quarter relative to guidance as we anticipated that it would be a challenging quarter. The total loan facilitation amount was RMB6,823 million, representing a decline compared with our previously announced guidance.”

“We are taking decisive action to streamline expenses against weaker top-line growth, but remain confident that demand for our highly-customized personal finance solutions will once again strengthen as the recovery from the pandemic unfolds. Our revenue and net income decreased both quarter-over-quarter and year-over-year. Even though the total number of loans facilitated^[12] of Xiaoying Term Loan in the first quarter decreased year-over-year, the average loan amount per transaction was RMB15,745, an increase of 37.7% from the same period of 2019 and an increase of 7.8% sequentially. The average consumption amount per user of Xiaoying Revolving Loan also increased 3.8% from the fourth quarter of 2019 to RMB8,582.”

“We are also pleased to see total cumulative registered users on the platform reach 42.6 million as of March 31, 2020, demonstrating the continued value that we are able to offer borrowers, even during such challenging market conditions. The number of active borrowers during the quarter decreased by 29.7%. The delinquency rates for all outstanding loans that are past due for 31-90 days and 91–180 days as of March 31, 2020 were 6.71% and 7.12% respectively, compared with 4.05% and 5.11%, respectively as of December 31, 2019.

“The percentage of loan products we facilitated that were covered by ZhongAn Insurance decreased further to 67.7% during the quarter as we continue to reduce our insurance coverage rate to lower our customer borrowing costs. In its place, we have expanded our partnerships with additional third-party, high-quality financial guarantee companies to strengthen trust in the quality of our underlying assets and risk management systems.”

“We are squarely focused on our mission to create more value for our customers and shareholders. After successfully adapting to the regulatory changes in 2019, we are now navigating the ongoing impact of the health crisis is having on the industry in 2020. While regulatory and capital requirements continue to put pressure on the sustainability of the sector this year, we remain in full compliance with current regulations and are confident in our ability to stand out among our peers by capitalizing on market consolidation and increasing protection for our investors. We will continue to prioritize operational efficiency in driving long-term value for our shareholders.”

[1] The Company uses in this press release the following non-GAAP financial measures: (i) adjusted net income, (ii) adjusted net income attributable to X Financial shareholders, (iii) adjusted net income per basic ADS, and (iv) adjusted net income per diluted ADS, each of which excludes share-based compensation expense. For more information on non-GAAP financial measure, please see the section of “Use of Non-GAAP Financial Measures Statement” and the table captioned “Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.

[2] Each American depositary share (“ADS”) represents two Class A ordinary shares.

[3] Represents the total amount of loans that X Financial facilitated during the relevant period.

[4] X Financial integrated Xiaoying Card Loan and Xiaoying Preferred Loan into one general product category, Xiaoying Credit Loan, in 2018.

[5] Represents the total amount of loans outstanding for loans X Financial facilitated at the end of the relevant period. Loans that are delinquent for more than 180 days are charged-off and are excluded in the calculation of delinquency rate by balance, except for Xiaoying Housing Loan. Xiaoying Housing Loan is a secured loan product and the Company is entitled to payment by exercising its rights to the collateral. X Financial does not charge off the loans delinquent for more 180 days and such loans are included in the calculation of delinquency rate by balance.

[6] Calculated by dividing the total loan facilitation amount by the number of loans facilitated during the relevant period.

[7] Xiaoying Term Loan refers to the loan’s with fixed repayment periods including Xiaoying Credit Loan, Xiaoying Housing Loan, Internet Channel.

[8] Calculated by dividing the total amount of consumption by the number of active users during the relevant period.

[9] Xiaoying Revolving Loan refers to the loans with revolving credit, including Yaoqianhua which was previously named as Xiaoying Wallet.

[10] Gross Merchandise Volume (“GMV”) refers a total sales value for merchandise sold through Xiaoying Online Mall.

[11] Xiaoying Online Mall was launched in March 2019 and is a product that provides loan installments to our individual customers enabling them to purchase goods online

[12] Represents the total number of transactions of loan facilitation during the relevant period.

First Quarter 2020 Financial Results

Net revenues decreased by 31.9% to RMB529.0 million (US$74.5 million) from RMB776.4 million in the same period of 2019, primarily due to a decrease in transaction volumes as a more stringent risk policy been taken to address COVID-19 impact, which was also partially offset by an increase in the proportion of net revenue generated by the loans facilitated through the Consolidated Trusts which was recorded over the life of the underlying financing using the effective interest method.

Loan facilitation service fees under the direct model decreased by 60.7% to RMB246.0 million (US$34.6 million) from RMB626.4 million in the same period of 2019, primarily due to a decrease in the total transaction volumes under the direct model compared with the same period of 2019.

Loan facilitation service fees under the intermediary model increased by 5.3% to RMB37.0 million (US$5.2 million) from RMB35.2 million in the same period of 2019, primarily due to an increase in the total volume of products offered through the intermediary model as the Company continuing the main strategy to attract more institutional investors throughout 2020.

Post-origination service fees decreased by 12.2% to RMB64.1 million (US$9.0 million) from RMB73.0 million in the same period of 2019, as a result of the cumulative effect of decreased volume of loans facilitated in the previous quarters. Revenues from post-origination services are recognized on a straight-line basis over the term of the underlying loans as the services are being provided.

Financing income increased by 880.9% to RMB174.6 million (US$24.6 million) from RMB17.8 million in the same period of 2019, which was consistent with the increase of average loan balances held by the Consolidated Trusts due to the establishment of new trusts since the second half of 2019.

Other revenue decreased by 69.7% to RMB7.3 million (US$1.0 million) from RMB24.1 million in the same period of 2019, primarily due to a decrease in penalty fees.

Origination and servicing expenses increased by 26.2% to RMB424.9 million (US$59.9 million) from RMB336.5 million in the same period of 2019, primarily due to the following factors: (i) an increase in customer acquisition costs for the revolving credit product, Yaoqianhua, and (ii) an increase in interest expense related to loans facilitated through the Consolidated Trusts.

General and administrative expenses increased by 24.3% to RMB69.9 million (US$9.9 million) from RMB56.3 million in the same period of 2019, primarily due to an increase in management fee paid to third-party trusts companies compared with the same period of 2019.

Sales and marketing expenses decreased by 61.5% to RMB11.8 million (US$1.7 million) from RMB30.7 million in the same period of 2019, primarily due to a reduction in promotional and advertising expenses since the outbreak of COVID-19.

Provision for contingent guarantee liabilities was RMB17.9 million (US$2.5 million), primarily attributable to the increase, caused by the pandemic, in estimated default rate of the loans subject to guarantee liabilities facilitated in prior periods.

Provision for accounts receivable and contract assets increased by 23.7% to RMB82.1 million (US$11.6 million) from RMB66.4 million in the same period of 2019, primarily due to a combined effect of (a) the new current expected credit loss model that took into account the deterioration in the economic outlook caused by the COVID-19 pandemic, and (b) an increase in the estimated default rates since the COVID-19 outbreak.

Provision for loans receivable was RMB42.8 million (US$6.0 million), compared with RMB7.5 million in the same period of 2019, primarily due to the increase of expected credit loss for revolving loan product when compared with the first quarter of 2019.

Loss from operation was RMB130.0 million (US$18.3 million), compared with income from operation of RMB279.1 million in the same period of 2019.

Loss before income taxes and gain from equity in affiliates was RMB228.3 million (US$32.2 million), compared with income before income taxes and gain from equity in affiliates of RMB259.0 million in the same period of 2019.

Income tax benefit was RMB31.2 million (US$4.4 million), compared with income tax expense of RMB53.6 million in the same period of 2019, primarily arose from the net operating loss.

Net loss attributable to X Financial shareholders was RMB196.3 million (US$27.7 million), compared with net income attributable to X Financial shareholders of RMB209.0 million in the same period of 2019.

Non-GAAP adjusted net loss attributable to X Financial shareholders was RMB159.9 million (US$22.5 million), compared with non-GAAP adjusted net income attributable to X Financial shareholders of RMB251.2 million in the same period of 2019.

Net loss per basic and diluted ADS were RMB1.22 (US$0.17) and RMB1.22 (US$0.17), respectively, compared with net income per basic and diluted ADS of RMB1.36 and RMB1.30, respectively, in the same period of 2019.

Non-GAAP adjusted net loss per basic and diluted ADS were RMB1.00 (US$0.14) and RMB1.00 (US$0.14), respectively, compared with non-GAAP adjusted net income per basic and diluted ADS of RMB1.64 and RMB1.56, respectively, in the same period of 2019.

Cash and cash equivalents was RMB611.6 million (US$86.2 million) as of March 31, 2020, compared with RMB1,006.0 million as of December 31, 2019.

Business Outlook

As the Company continues to assess the impact of the COVID-19 outbreak and market indicators around the recovery in the first half of 2020, it is anticipated that the Company’s total loan facilitation amount for the second quarter of 2020 will also be negatively impacted and the Company expects a second-quarter loss with drop in revenue. The Company plans to provide a business update in the second quarter 2020 Earnings Release. This forecast reflects the Company’s current and preliminary views, which are subject to change.

Conference Call

X Financial’s management team will host an earnings conference call at 8:00 AM U.S. Eastern Time on Tuesday, June 30, 2020 (8:00 PM Beijing / Hong Kong Time on the same day).

Dial-in details for the earnings 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:	X Financial

Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the conference call may be accessed by phone at the following numbers until July 7, 2020:

United States:	1-877-344-7529
International:	1-412-317-0088
Passcode:	10145375

Additionally, a live and archived webcast of the conference call will be available at http://ir.xiaoyinggroup.com.

About X Financial

X Financial (NYSE: XYF) (the “Company”) is a leading technology-driven personal finance company in China focused on meeting the huge demand for credit from individuals and small-to-medium-sized enterprise owners. The Company’s proprietary big data-driven risk control system, WinSAFE, builds risk profiles of prospective borrowers using a variety data-driven credit assessment methodology to accurately evaluate a borrower’s value, payment capability, payment attitude and overall creditworthiness. X Financial has established a strategic partnership with ZhongAn Online P&C Insurance Co., Ltd. in multiple areas of its business operations to directly complement its cutting-edge risk management and credit assessment capabilities. ZhongAn Online P&C Insurance Co., Ltd. provides credit insurance on X Financial’s investment products which significantly enhances investor confidence and allows the Company to attract a diversified and low-cost funding base from individuals, enterprises and financial institutions to support its growth. X Financial leverages financial technology to provide convenient, efficient, and secure investment services to a wide range of high-quality borrowers and mass affluent investors which complements traditional financial institutions and helps to promote the development of inclusive finance in China.

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

Use of Non-GAAP Financial Measures Statement

In evaluating our business, we consider and use non-GAAP measures as supplemental measures to review and assess our operating performance. We present the non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of the non-GAAP financial measures facilitates investors’ assessment of our operating performance.

We use in this press release the following non-GAAP financial measures: (i) adjusted net income, (ii) adjusted net income attributable to X Financial shareholders, (iii) adjusted net income per basic ADS, and (iv) adjusted net income per diluted ADS, each of which excludes share-based compensation expense. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, investors should not consider them in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.

We mitigate these limitations by reconciling the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and Non-GAAP results” set forth at the end of this press release.

New Accounting Pronouncements

In June 2016, the FASB issued Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of the Group’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. The Company have adopted the new standard effective January 1, 2020, using a modified retrospective basis under which prior comparative periods are not restated. The impact of the adoption of this guidance on the Group’s consolidated statements of comprehensive income after tax amounts to RMB17.2 million as of January 1, 2020.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.0989 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of March 31, 2020.

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 and strategies; its future business development, financial condition and results of operations; the expected growth of the credit industry, and marketplace lending in particular, in China; the demand for and market acceptance of its marketplace’s products and services; its ability to attract and retain borrowers and investors on its marketplace; its relationships with its strategic cooperation partners; competition in its industry; and relevant government policies and regulations relating to the corporate structure, business and industry. 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 contact:

X Financial
Mr. Kevin Zhang
E-mail: ir@xiaoying.com

Christensen

In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com

In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com

X Financial
Unaudited Condensed Consolidated Balance Sheets

(In thousands, except for share and per share data)	As of December 31, 2019	As of March 31, 2020
	RMB	RMB	USD
ASSETS
Cash and cash equivalents	1,005,980	611,598	86,154
Restricted cash	514,323	964,185	135,822
Accounts receivable and contract assets, net of allowance for doubtful accounts	771,154	441,168	62,146
Loans receivable from Xiaoying Credit Loans and Revolving Loans, net	289,553	222,356	31,323
Loans at fair value	2,782,333	2,197,569	309,565
Prepaid expenses and other current assets	1,226,170	2,013,654	283,658
Financial guarantee derivative	719,962	498,980	70,290
Deferred tax assets, net	465,441	520,232	73,283
Long term investments	292,142	295,630	41,644
Property and equipment, net	20,139	18,027	2,539
Intangible assets, net	35,127	34,869	4,912
Loan receivable from Xiaoying Housing Loans, net	89,536	91,460	12,884
Other non-current assets	68,772	48,121	6,779
TOTAL ASSETS	8,280,632	7,957,849	1,120,999

LIABILITIES
Payable to investors at fair value of the Consolidated Trusts	3,006,349	2,510,839	353,694
Guarantee liabilities	17,475	32,305	4,551
Short-term bank borrowings	–	341,495	48,105
Accrued payroll and welfare	63,649	37,145	5,233
Other tax payable	58,086	68,675	9,674
Income tax payable	340,996	321,845	45,337
Deposit payable to channel cooperators	108,923	58,293	8,212
Accrued expenses and other liabilities	274,440	339,343	47,803
Other non-current liabilities	42,300	27,690	3,901
Deferred tax liabilities	1,309	649	91
TOTAL LIABILITIES	3,913,527	3,738,279	526,601

Commitments and Contingencies
Equity:
Common shares	201	201	28
Additional paid-in capital	2,987,363	3,024,054	425,989
Retained earnings	1,311,194	1,114,853	157,046
Other comprehensive income	67,101	79,216	11,159
Total X Financial shareholders’ equity	4,365,859	4,218,324	594,222
Non-controlling interests	1,246	1,246	176
TOTAL EQUITY	4,367,105	4,219,570	594,398

TOTAL LIABILITIES AND EQUITY	8,280,632	7,957,849	1,120,999

X Financial
Unaudited Condensed Consolidated Statements of Comprehensive Income

	Three Months Ended March 31,
(In thousands, except for share and per share data)	2019	2020	2020
	RMB	RMB	USD
Net revenues
Loan facilitation service-Direct Model	626,382	245,960	34,648
Loan facilitation service-Intermediary Model	35,162	37,012	5,214
Post-origination service	73,007	64,113	9,031
Financing income	17,801	174,617	24,598
Other revenue	24,066	7,290	1,027
Total net revenue	776,418	528,992	74,518

Operating costs and expenses:
Origination and servicing	336,539	424,875	59,851
General and administrative	56,268	69,929	9,851
Sales and marketing	30,685	11,813	1,664
Provision for contingent guarantee liabilities	–	17,876	2,518
Provision for accounts receivable and contract assets	66,404	82,116	11,567
Provision for loans receivable	7,460	42,831	6,033
Credit losses for other financial assets	–	9,597	1,352
Total operating costs and expenses	497,356	659,037	92,836

Income (loss) from operations	279,062	(130,045)	(18,318)
Interest income, net	763	6,453	909
Foreign exchange gain (loss)	(873)	(84)	(12)
Change in fair value of financial guarantee derivative	(52,991)	(77,522)	(10,920)
Fair value adjustments related to Consolidated Trusts	32,556	(32,352)	(4,557)
Other income (loss), net	456	5,236	738

Income (loss) before income taxes and gain from equity in affiliates	258,973	(228,314)	(32,160)

Income tax benefit (expense)	(53,605)	31,153	4,388
Gain from equity in affiliates	3,796	820	116
Net income (loss)	209,164	(196,341)	(27,656)
Less: net income (loss) attributable to non-controlling interests	200	–	–
Net income (loss) attributable to X Financial shareholders	208,964	(196,341)	(27,656)

Net income (loss)	209,164	(196,341)	(27,656)
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustments	(18,883)	12,115	1,707
Comprehensive income (loss)	190,281	(184,226)	(25,949)
Less: comprehensive income (loss) attributable to non controlling interests	200	–	–
Comprehensive income (loss) attributable to X Financial shareholders	190,081	(184,226)	(25,949)

Net income per share—basic	0.68	(0.61)	(0.09)
Net income per share—diluted	0.65	(0.61)	(0.09)

Net income per ADS—basic	1.36	(1.22)	(0.17)
Net income per ADS—diluted	1.30	(1.22)	(0.17)

Weighted average number of ordinary shares outstanding—basic	306,025,409	320,667,943	320,667,943
Weighted average number of ordinary shares outstanding—diluted	322,662,503	326,872,712	326,872,712

X Financial
Unaudited Reconciliations of GAAP and Non-GAAP Results

	Three Months Ended March 31,
(In thousands, except for share and per share data)	2019	2020	2020
	RMB	RMB	USD
GAAP net income (loss)	209,164	(196,341)	(27,656)
Add: Share-based compensation expenses (net of tax of nil)	42,199	36,402	5,128
Non-GAAP adjusted net income (loss)	251,363	(159,939)	(22,528)

Net income (loss) attributable to X Financial shareholders	208,964	(196,341)	(27,656)
Add: Share-based compensation expenses (net of tax of nil)	42,199	36,402	5,128
Non-GAAP adjusted net income (loss) attributable to X Financial shareholders	251,163	(159,939)	(22,528)

Non-GAAP adjusted net income (loss) per share—basic	0.82	(0.50)	(0.07)
Non-GAAP adjusted net income (loss) per share—diluted	0.78	(0.50)	(0.07)

Non-GAAP adjusted net income (loss) per ADS—basic	1.64	(1.00)	(0.14)
Non-GAAP adjusted net income (loss) per ADS—diluted	1.56	(1.00)	(0.14)

Weighted average number of ordinary shares outstanding—basic	306,025,409	320,667,943	320,667,943
Weighted average number of ordinary shares outstanding—diluted	322,662,503	326,872,712	326,872,712

Related Links :

http://www.xiaoyinggroup.com

PR Newswire

Tuniu Has Regained Compliance with Nasdaq’s Minimum Bid Price Requirement

June 29, 2020 TechENT Syndication Leave a comment

NANJING, China, June 29, 2020 — Tuniu Corporation (Nasdaq:TOUR) (“Tuniu” or the “Company”), a leading online leisure travel company in China, today announced that it received a notification letter (the “Compliance Notice”) from the Listing Qualifications Department of the Nasdaq Stock Market Inc. (“Nasdaq”) dated June 26, 2020, indicating that the Company has regained compliance with the Nasdaq Listing Rule 5450(a)(1) (the “Minimum Bid Price Requirement”) and the matter is closed.

On May 18, 2020, Tuniu received a notification letter (the Deficiency Notice”) from the Nasdaq indicating that the closing bid price for the Company’s American depositary shares (the “ADSs”), each representing three Class A ordinary shares of the Company, was below the minimum bid price of $1.00 required for continued listing under Nasdaq Listing Rule 5450(a)(1) for 30 consecutive business days. According to the Deficiency Notice, if at any time during the tolling period or 180 day compliance period, the closing bid price of the Company’s security is at least $1.00 for a minimum of ten consecutive business days, the Nasdaq will provide the Company written confirmation of compliance and the matter will be closed. According to the Compliance Notice, the closing bid price of the Company’s ADSs has been at $1.00 per ADS or greater for 10 consecutive business days from June 12 through June 25, 2020, and the Company has regained compliance with the Minimum Bid Price Requirement and the matter is closed.

About Tuniu

Tuniu (Nasdaq:TOUR) is a leading online leisure travel company in China that offers a large selection of packaged tours, including organized and self-guided tours, as well as travel-related services for leisure travelers through its website tuniu.com and mobile platform. Tuniu covers over 420 departing cities throughout China and all popular destinations worldwide. Tuniu provides one-stop leisure travel solutions and a compelling customer experience through its online platform and offline service network, including a dedicated team of professional customer service representatives, 24/7 call centers, extensive networks of offline retail stores and self-operated local tour operators. For more information, please visit http://ir.tuniu.com.

Safe Harbor Statement

This press release contains forward-looking statements made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Tuniu may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, 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 Tuniu’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 are not limited to the following: Tuniu’s goals and strategies; the growth of the online leisure travel market in China; the demand for Tuniu’s products and services; its relationships with customers and travel suppliers; the Company’s ability to offer competitive travel products and services; Tuniu’s future business development, results of operations and financial condition; competition in the online travel industry in China; relevant government policies and regulations relating to the Company’s structure, business and industry; the impact of the COVID-19 on Tuniu’s business operations, the travel industry and the economy of China and elsewhere generally; and the general economic and business condition in China and elsewhere. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tuniu does not undertake any obligation to update such information, except as required under applicable law.

PR Newswire

Carry Begins Offline Data Collection Campaign with South Korea’s largest SMB loyalty point platform

June 29, 2020 TechENT Syndication Leave a comment

SEOUL, South Korea, June 29, 2020 — On June 29th, South Korea’s Blockchain Project Carry Protocol announced that it started data collection from the offline market targeting roughly half of the South Korean population (23M users) with South Korea’s largest SMB loyalty platform, Dodo Point.

The data collection feature with rewards rolls out to all 23m Dodo Point users on June 29th. Whenever someone claims loyalty points at a Dodo store, he or she can rate the services provided by the store and be eligible for giveaways. The giveaway promotion campaign goes on for a full month until August 31st. AirPod Pros, Starbucks coffee coupons, and reward points will be given to those who participate.

As of May 2020, Dodo has over 20,000 cumulative stores and 23M registered users. Dodo is used by roughly half the population in Korea. Using Dodo as a platform to launch data collection is one of the best ways for Carry’s wide adoption.

Carry Protocol is a blockchain project that compensates consumers for sharing offline data and receiving ads, aiming to return control of data privacy and monetization rights back to the consumers. The launch campaign is the first step for Carry’s wide adoption in offline stores and consumers. Carry is also expanding its presence globally this year by having partnerships with global projects such as Pundi X and BananaTok.

Commenting on the launch of the data collection feature, the team mentioned “We are very excited to approach millions of monthly Dodo Point users through the campaign. We believe the first step to widespread adoption is to strip away complexities associated with blockchain technology so that any average person can use Carry. By closely monitoring usage and engagement metrics during the launch event, we will learn about the product market fit and flexibly respond to additional features and benefits that might be needed in future.”

Carry Official Website: https://carryprotocol.io/

Carry Official Medium: https://medium.com/carryprotocol

Carry Official Twitter: https://twitter.com/carryprotocol

Media Contact: contact@carryprotocol.io

Related Links :

https://carryprotocol.io

PR Newswire

58.com Reports First Quarter 2020 Unaudited Financial Results

June 26, 2020 TechENT Syndication Leave a comment

BEIJING, June 26, 2020 — 58.com Inc. (NYSE: WUBA) ("58.com" or the "Company"), China’s largest online classifieds marketplace, today reported its unaudited financial results for the first quarter ended March 31, 2020.

First Quarter 2020 Highlights

Total revenues were RMB2,560.3 million (US$361.4 million[1]), a 15.5% decrease from RMB3,028.3 million in the same quarter of 2019.
Total number of paying business users[2] was approximately 2.7 million in the first quarter of 2020, a 20.7% decrease from the same quarter of 2019.
Gross margin was 87.9% compared with 90.2% in the same quarter of 2019.
Loss from operations was RMB55.8 million (US$7.9 million), compared with income from operations of RMB281.3 million in the same quarter of 2019.
Non-GAAP income from operations[3] was RMB144.0 million (US$20.3 million), a 69.0% decrease from RMB465.1 million in the same quarter of 2019.
Net income attributable to 58.com Inc. ordinary shareholders was RMB1,638.6 million (US$231.3 million), a 134.7% increase from RMB698.2 million in the same quarter of 2019. This includes a net gain picked up from 58 Home of RMB2,683.2 million.
Non-GAAP net income attributable to 58.com Inc. ordinary shareholders [4] was RMB2,243.6 million (US$316.7 million), a 414.7% increase from RMB435.9 million in the same quarter of 2019. This includes a net gain picked up from 58 Home of RMB2,683.2 million.
Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB10.95 (US$1.54) and RMB10.82 (US$1.53), respectively, representing 132.6% and 132.6% increases from RMB4.71 and RMB4.65, respectively, in the same quarter of 2019. One ADS represents two Class A ordinary shares.
Non-GAAP basic and diluted earnings per ADS[5] attributable to ordinary shareholders were RMB14.99 (US$2.12) and RMB14.81 (US$2.09), respectively, representing 410.0% and 410.1% increases from RMB2.94 and RMB2.90, respectively, in the same quarter of 2019.

First Quarter 2020 Financial Results

Revenues

Total revenues were RMB2,560.3 million (US$361.4 million), representing a decrease of 15.5% from RMB3,028.3 million in the same quarter of 2019.

Membership revenues were RMB815.6 million (US$115.1 million), a decrease of 16.9% from RMB982.0 million in the same quarter of 2019.

Online marketing services revenues were RMB1,595.4 million (US$225.2 million), a decrease of 17.8% from RMB1,940.9 million in the same quarter of 2019.

The decreases were mainly due to the adverse impact from the outbreak of COVID-19. To control the spread of COVID-19, the PRC government implemented a series of strict measures, including travel restrictions, quarantines, and a temporary shutdown of businesses which resulted in a decrease in activity level among paying business users. In particular, paying business users that require in-person meetings to conduct their business, including those in the secondary housing and rental real estate sector, used auto dealers, local service providers, and recruiters, have been adversely and materially affected by these interruptions and delayed business resumption. The Company’s revenues are generated primarily from these paying business users, most of whom are small and medium-sized local businesses, and the outbreak of COVID-19 and subsequent prevention and control measures have adversely affected their business operations and financial conditions in the first quarter of 2020. As a result, the Company’s revenues during the first quarter of 2020 declined significantly when compared with the same period in 2019.

Cost of Revenues

Cost of revenues was RMB309.3 million (US$43.7 million), an increase of 4.2% from RMB296.9 million in the same quarter of 2019.

The year-over-year increase was primarily driven by increases in the costs associated with "Premium Home Services" (到家精选), enhanced services that focus on partnering with high quality providers to further standardize their service quality and integrate service protection plans while establishing closed-loop transactions through the Company’s platforms, and an increase in the costs of goods sold and services provided on the Zhuan Zhuan platform which were partially offset by a decrease in traffic acquisition cost paid to advertising union partners.

Gross Profit and Gross Margin

Gross profit was RMB2,251.0 million (US$317.7 million), a decrease of 17.6% from RMB2,731.4 million during the same quarter of 2019.

Gross margin was 87.9% in the first quarter of 2020, compared with 90.2% during the same quarter of 2019.

Operating Expenses

Operating expenses were RMB2,306.8 million (US$325.6 million), a decrease of 5.8% from RMB2,450.1 million in the same quarter of 2019.

Sales and marketing expenses in the first quarter of 2020 were RMB1,577.5 million (US$222.7 million), a decrease of 12.0% from RMB1,793.0 million in the same quarter of 2019.

Within sales and marketing expenses, advertising expenses in the first quarter of 2020 were RMB712.2 million (US$100.5 million), a decrease of 19.7% from RMB886.5 million in the same quarter of 2019 as a result of the spread of COVID-19 which caused a decrease in advertising activities.

Non-advertising sales and marketing expenses in the first quarter of 2020 were RMB865.3 million (US$122.1 million), a decrease of 4.5% from RMB906.5 million in the same quarter of 2019.

Non-advertising sales and marketing expenses include salaries and benefits, commissions and share-based compensation expenses for the Company’s sales, sales support, customer service, marketing dealer management personnel, online and offline promotional expenses, and other operating expenses that are associated with sales and marketing activities.

Research and development expenses in the first quarter of 2020 were RMB497.0 million (US$70.1 million), essentially flat with RMB495.0 million in the same quarter of 2019.

General and administrative expenses in the first quarter of 2020 were RMB232.4 million (US$32.8 million), an increase of 43.3% from RMB162.2 million in the same quarter of 2019. The increase was mainly due to the adoption of the current expected credit losses methodology in estimating allowances for credit losses in the first quarter of 2020.

Income/(Loss) from Operations

Loss from operations was RMB55.8 million (US$7.9 million) in the first quarter of 2020, compared with income from operations of RMB281.3 million in the same quarter of 2019.

Operating margin, defined as income/(loss) from operations divided by total revenues, was negative 2.2% in the first quarter of 2020, compared with 9.3% in the same quarter of 2019.

Non-GAAP income from operations was RMB144.0 million (US$20.3 million) in the first quarter of 2020, a decrease of 69.0% from RMB465.1 million in the same quarter of 2019.

Non-GAAP operating margin, defined as non-GAAP income from operations divided by total revenues, was 5.6% in the first quarter of 2020, compared with 15.4% in the same quarter of 2019.

Other Income/(Expenses), net

Net other income in the first quarter of 2020 was RMB1,680.7 million (US$237.2 million), compared with net other income of RMB554.3 million in the same quarter of 2019.

Net other income in the first quarter of 2020 was primarily comprised of a RMB2,654.8 million gain in share of results of equity investees and RMB30.9 million in tax refunds and other government subsidies, offset by RMB1,054.3 million in a net investment loss.

Share of results of equity investees in the first quarter of 2020 was mainly attributed to RMB2,683.2 million net gain pick-up from 58 Home, which was mainly due to the Company’s proportionate share of one-time non-cash gain recognized by 58 Home for its deconsolidation of 58 Daojia Limited, a majority owned subsidiary of 58 Home, which was partially offset by the Company’s proportionate share of net loss attributable to 58 Home’s ordinary shareholders. 58 Home lost its control over 58 Daojia Limited and started to deconsolidate its financial statements when 58 Daojia Limited completed its Series B round of equity financing in February 2020, as certain Series B investors have substantive participating rights in the operational decision making of 58 Daojia Limited.

Net investment loss mainly included RMB683.3 million in impairment losses in long-term investments and RMB446.1 million losses in change in fair value of long-term investments and investments in convertible notes as the market value of certain fair value measured investments suffered downward adjustments in the first quarter of 2020.

There would have been net other expenses of RMB1,002.5 million (US$141.5 million) in the first quarter of 2020 if the RMB2,683.2 million net gain picked up from 58 Home was excluded.

Net Income Attributable to 58.com Inc. Ordinary Shareholders

Net income attributable to 58.com Inc. ordinary shareholders was RMB1,638.6 million (US$231.3 million) in the first quarter of 2020, an increase of 134.7% from RMB698.2 million in the same quarter of 2019. Excluding the RMB2,683.2 million net gain picked up from 58 Home, net loss attributable to 58.com Inc. ordinary shareholders in the first quarter of 2020 was RMB1,044.5 million (US$147.4 million).

Net margin, defined as net income attributable to 58.com Inc. ordinary shareholders divided by total revenues, was 64.0% in the first quarter of 2020, compared with 23.1% in the same quarter of 2019. Excluding the net gain picked up from 58 Home, net margin in the first quarter of 2020 was negative 40.8%.

Non-GAAP net income attributable to 58.com Inc. ordinary shareholders was RMB2,243.6 million (US$316.7 million) in the first quarter of 2020, an increase of 414.7% from RMB435.9 million in the same quarter of 2019. Excluding the net gain picked up from 58 Home, non-GAAP net loss attributable to 58.com Inc. ordinary shareholders in the first quarter of 2020 was RMB439.6 million (US$62.0 million).

Non-GAAP net margin, defined as non-GAAP net income attributable to 58.com Inc. ordinary shareholders divided by total revenues, was 87.6% in the first quarter of 2020, compared with 14.4% in the same quarter of 2019. Excluding the net gain picked up from 58 Home, non-GAAP net margin in the first quarter of 2020 was negative 17.2%.

Basic and Diluted Earnings per ADS

Basic and diluted earnings per ADS attributable to ordinary shareholders in the first quarter of 2020 were RMB10.95 (US$1.54) and RMB10.82 (US$1.53), respectively, representing 132.6% and 132.6% increases from RMB4.71 and RMB4.65, respectively, in the same quarter of 2019.

Non-GAAP basic and diluted earnings per ADS attributable to ordinary shareholders in the first quarter of 2020 were RMB14.99 (US$2.12) and RMB14.81 (US$2.09), respectively, representing 410.0% and 410.1% increases from RMB2.94 and RMB2.90, respectively, in the same quarter of 2019.

Cash Flow

Net cash used in operating activities was RMB379.4 million (US$53.6 million) in the first quarter of 2020, compared to net cash provided by operating activities of RMB564.9 million in the same quarter of 2019.

Cash and Cash Equivalents, Term Deposits, Restricted Cash and Short-term Investments

As of March 31, 2020, the Company had cash and cash equivalents, term deposits, restricted cash and short-term investments of RMB12,547.3 million (US$1,770.9 million).

Shares Outstanding

As of March 31, 2020, the Company had a total of 299,728,769 ordinary shares (including 254,496,649 Class A and 45,232,120 Class B ordinary shares) issued and outstanding.

Non-GAAP Financial Measures

To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP income/(loss) from operations, non-GAAP operating margin, non-GAAP net income/(loss) attributable to 58.com Inc. ordinary shareholders, non-GAAP net margin and non-GAAP basic and diluted earnings/(loss) per share and per ADS by excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, change in fair value of long-term investments and investments in convertible notes, share-based compensation expenses included in share of results of equity investees, income tax effects of above GAAP to non-GAAP reconciling items. The Company believes these non-GAAP financial measures are important to help investors understand the Company’s operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company’s core operating results, as they exclude certain expenses/gains that are not expected to result in cash payments/receipts. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, non-cash gain or loss and income tax effects resulting from GAAP to non-GAAP reconciling items have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of the Company’s results. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, change in fair value of long-term investments and investments in convertible notes, share-based compensation expenses included in share of results of equity investees, income tax effects of above GAAP to non-GAAP reconciling items, all of which should be considered when evaluating the Company’s performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.

[1] This press release contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) solely for the convenience of the readers. Unless otherwise specified, all translations of Renminbi amounts into US$ amounts in this press release are made at RMB7.0851 to US$1.00, which was the U.S. dollars middle rate announced by the PRC State Administration of Foreign Exchange on March 31, 2020. The percentages stated in this press release are calculated based on the Renminbi amounts. On June 24, 2020, such exchange rate was RMB7.0555 to US$1.00.

[2] Paying business users refer to users who are identified as business users with unique identity information such as business licenses or personal identification information and who used the Company’s subscription-based membership services or purchased at least one type of online marketing services in a given period. One paying business user can open up several paying user accounts on one or multiple online platforms. The number and the percentage calculation does not include paying business users on Ganji as the Company stopped selling stand-alone Ganji subscription-based membership services in 2018 or earlier in all of its content categories.

[3] Non-GAAP income from operations is defined as income from operations excluding share-based compensation expenses and amortization of intangible assets resulting from business acquisitions. See "Reconciliation of GAAP and Non-GAAP Results" at the end of this press release.

[4] Non-GAAP net income attributable to 58.com Inc. ordinary shareholders is defined as net income attributable to 58.com Inc. ordinary shareholders excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, change in fair value of long-term investments and investments in convertible notes, share-based compensation expenses included in share of results of equity investees, and income tax effects of GAAP to non-GAAP reconciling items. See "Reconciliation of GAAP and Non-GAAP Results" at the end of this press release.

[5] Non-GAAP basic and diluted earnings per ADS is defined as non-GAAP net income attributable to 58.com Inc. ordinary shareholders divided by weighted average number of basic and diluted ADSs.

About 58.com Inc.

58.com Inc. (NYSE: WUBA) operates China’s largest online classifieds marketplace, as measured by monthly unique visitors on both its www.58.com website and mobile applications. The Company’s online marketplace enables local business users and consumer users to connect, share information and conduct business. 58.com’s broad, in-depth and high quality local information, combined with its easy-to-use website and mobile applications, has made it a trusted marketplace for consumers. 58.com’s strong brand recognition, large and growing user base, merchant network and massive database of local information create a powerful network effect. For more information on 58.com, please visit http://www.58.com.

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. 58.com may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, 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 58.com’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: 58.com’s goals and strategies; its future business development, financial condition and results of operations; its ability to retain and grow its user base and network of local merchants for its online marketplace; the growth of, and trends in, the markets for its services in China; the outbreak of COVID-19 or other health epidemics in China or globally; the demand for and market acceptance of its brand and services; competition in its industry in China; its ability to maintain the network infrastructure necessary to operate its website and mobile applications; relevant government policies and regulations relating to the corporate structure, business and industry; and its ability to protect its users’ information and adequately address privacy concerns. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and 58.com does not undertake any obligation to update such information, except as required under applicable law.

For more information, please contact:

58.com Inc.
ir@58.com

Christensen

In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com

In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com

58.com Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data, unless otherwise)

	As of
	December 31, 2019	March 31, 2020	March 31, 2020
	RMB	RMB	US$
ASSETS
Current assets:
Cash and cash equivalents…………………………………………………………………………………………………………………………………..	5,293,206	4,876,057	688,213
Restricted cash-current……………………………………………………………………………………………………………………………………….	477,099	538,724	76,036
Term deposits……………………………………………………………………………………………………………………………………………………	70,000	70,000	9,880
Short-term investments……………………………………………………………………………………………………………………………………….	8,414,348	7,062,554	996,818
Accounts receivable, net……………………………………………………………………………………………………………………………………..	1,209,251	1,105,326	156,007
Prepayments and other current assets……………………………………………………………………………………………………………………	2,326,920	2,830,994	399,570
Total current assets………………………………………………………………………………………………………………………………………….	17,790,824	16,483,655	2,326,524
Non-current assets:
Property and equipment, net………………………………………………………………………………………………………………………………..	1,305,793	1,285,024	181,369
Intangible assets, net…………………………………………………………………………………………………………………………………………..	886,565	840,901	118,686
Right-of-use assets, net………………………………………………………………………………………………………………………………………	275,459	253,408	35,766
Land use rights, net……………………………………………………………………………………………………………………………………………	3,532	3,512	496
Goodwill………………………………………………………………………………………………………………………………………………………….	15,874,220	15,874,220	2,240,508
Long-term investments……………………………………………………………………………………………………………………………………….	6,086,511	8,249,490	1,164,343
Investments in convertible notes…………………………………………………………………………………………………………………………..	669,715	817,270	115,351
Long-term prepayments and other non-current assets……………………………………………………………………………………………..	469,592	803,450	113,400
Total non-current assets…………………………………………………………………………………………………………………………………..	25,571,387	28,127,275	3,969,919
Total assets……………………………………………………………………………………………………………………………………………………..	43,362,211	44,610,930	6,296,443
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable………………………………………………………………………………………………………………………………………………	1,042,697	1,387,244	195,797
Deferred revenues……………………………………………………………………………………………………………………………………………..	2,154,920	1,691,080	238,681
Customer advances…………………………………………………………………………………………………………………………………………….	1,986,108	1,970,655	278,141
Taxes payable……………………………………………………………………………………………………………………………………………………	698,104	362,025	51,097
Salary and welfare payable………………………………………………………………………………………………………………………………….	753,267	560,843	79,158
Operating lease liabilities, current…………………………………………………………………………………………………………………………	137,310	114,304	16,133
Accrued expenses and other current liabilities………………………………………………………………………………………………………..	1,053,007	1,082,811	152,829
Total current liabilities……………………………………………………………………………………………………………………………………..	7,825,413	7,168,962	1,011,836
Non-current liabilities:
Deferred tax liabilities…………………………………………………………………………………………………………………………………………	389,719	324,514	45,802
Operating lease liabilities, non-current…………………………………………………………………………………………………………………..	138,554	157,195	22,187
Total non-current liabilities………………………………………………………………………………………………………………………………	528,273	481,709	67,989
Total liabilities…………………………………………………………………………………………………………………………………………………	8,353,686	7,650,671	1,079,825
Mezzanine equity:
Mezzanine classified noncontrolling interests…………………………………………………………	3,668,876	3,815,512	538,526
Total mezzanine equity…………………………………………………………………………………………………………………………………….	3,668,876	3,815,512	538,526
Shareholders’ equity:
58.com Inc. shareholders’ equity:
Ordinary shares (US$0.00001 par value, 4,800,000,000 Class A and 200,000,000 Class B shares authorized, 254,045,293 Class A and 45,232,120 Class B shares issued and outstanding as of December 31, 2019 and 254,496,649 Class A and 45,232,120 Class B shares issued and outstanding as of March 31, 2020, respectively)	19	19	3
Additional paid-in capital…………………………………………………………………………………………………………………………………….	21,942,829	22,026,581	3,108,860
Retained earnings………………………………………………………………………………………………………………………………………………	8,892,773	10,529,706	1,486,176
Accumulated other comprehensive income…………………………………………………………………………………………………………….	95,903	178,710	25,223
Total 58.com Inc. shareholders’ equity……………………………………………………………………………………………………………..	30,931,524	32,735,016	4,620,262
Noncontrolling interests…………………………………………………………………………………………………………………………………..	408,125	409,731	57,830
Total shareholders’ equity……………………………………………………………………………………………………………………………….	31,339,649	33,144,747	4,678,092
Total liabilities, mezzanine equity and shareholders’ equity	43,362,211	44,610,930	6,296,443

58.com Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share, per share and per ADS data, unless otherwise noted)

	For the Three Months Ended
	March 31, 2019	December 31, 2019	March 31, 2020	March 31, 2020
	RMB	RMB	RMB	US$
Revenues:
Membership……………………………………………………………………………..	982,028	1,112,362	815,624	115,118
Online marketing services…………………………………………………………	1,940,900	2,713,807	1,595,421	225,180
E-commerce services………………………………………………………………..	28,023	53,722	8,744	1,234
Other revenues………………………………………………………………………….	77,302	275,643	140,553	19,838
Total revenues……………………………………………………………………………..	3,028,253	4,155,534	2,560,342	361,370
Cost of revenues⁽¹⁾………………………………………………………………………..	(296,851)	(565,985)	(309,344)	(43,661)
Gross profit………………………………………………………………………………….	2,731,402	3,589,549	2,250,998	317,709
Operating expenses⁽¹⁾:
Sales and marketing expenses⁽²⁾……………………………………………….	(1,792,950)	(2,023,502)	(1,577,510)	(222,652)
Research and development expenses……………………………………….	(494,977)	(560,746)	(496,970)	(70,143)
General and administrative expenses……………………………………….	(162,168)	(264,172)	(232,361)	(32,796)
Total operating expenses…………………………………………………………….	(2,450,095)	(2,848,420)	(2,306,841)	(325,591)
Income/(loss) from operations……………………………………………………	281,307	741,129	(55,843)	(7,882)
Other income/(expenses):
Interest income, net…………………………………………………………………..	8,462	27,841	31,783	4,486
Investment income/(loss), net…………………………………………………..	544,570	1,924,195	(1,054,274)	(148,802)
Share of results of equity investees…………………………………………..	(10,571)	9,806	2,654,755	374,695
Foreign currency exchange gain/(loss), net……………………………….	2,949	(8,601)	9,900	1,397
Others, net…………………………………………………………………………………	8,928	134,871	38,488	5,432
Income before tax………………………………………………………………………..	835,645	2,829,241	1,624,809	229,326
Income tax benefit/(expenses)…………………………………………………	(106,109)	(158,122)	75,700	10,684
Net income……………………………………………………………………………………	729,536	2,671,119	1,700,509	240,010
Net loss attributable to noncontrolling interests………………………..	2,314	4,075	4,069	574
Net income attributable to 58.com Inc.………………………………………	731,850	2,675,194	1,704,578	240,584
Deemed dividend to mezzanine classified noncontrolling interests……………………………………………………………………………………..	(33,700)	(65,428)	(65,955)	(9,309)
Net income attributable to 58.com Inc. ordinary shareholders..	698,150	2,609,766	1,638,623	231,275
Net earnings per ordinary share attributable to ordinary shareholders – basic……………………………………………………………………….	2.35	8.72	5.47	0.77
Net earnings per ordinary share attributable to ordinary shareholders – diluted…………………………………………………………………….	2.33	8.64	5.41	0.76
Net earnings per ADS attributable to ordinary shareholders – basic (1 ADS represents 2 Class A ordinary shares)……………………………….	4.71	17.45	10.95	1.54
Net earnings per ADS attributable to ordinary shareholders – diluted (1 ADS represents 2 Class A ordinary shares)……………………………….	4.65	17.28	10.82	1.53
Weighted average number of ordinary shares used in computing basic earnings per share………………………………………………………………..	296,690,552	299,155,358	299,427,404	299,427,404
Weighted average number of ordinary shares used in computing diluted earnings per share……………………………………………………………..	300,250,567	302,001,274	302,932,654	302,932,654

Note:
(1) Share–based compensation expenses were allocated in cost of revenues and operating expenses as follows:


Cost of revenues……………………………………………………………………….	1,833	2,895	3,322	469
Sales and marketing expenses……………………………………………………..	28,520	31,612	29,909	4,221
Research and development expenses……………………………………………	51,220	62,520	65,681	9,270
General and administrative expenses……………………………………………	51,732	61,935	59,567	8,407

(2) Amortization of intangible assets resulting from business acquisitions were allocated in operating expenses as follows:

Sales and marketing expenses………………………………………………..	42,954	43,087	42,954	6,063
Research and development expenses……………………………………….	11,997	12,015	2,433	343

(3) Breakdown of sales and marketing expenses was as follows:

Advertising expenses……………………………………………………………	886,470	865,144	712,239	100,526
Non-advertising sales and marketing expenses…………………………	906,480	1,158,358	865,271	122,126

58.com Inc.
Reconciliation of GAAP and Non-GAAP Results
(in thousands, except share, ADS, per share and per ADS data, unless otherwise noted)

	For the Three Months Ended
	March 31, 2019	December 31, 2019	March 31, 2020	March 31, 2020
	RMB	RMB	RMB	US$
GAAP income/(loss) from operations…………………………………………	281,307	741,129	(55,843)	(7,882)
Share-based compensation expenses[6]………………………………………	128,875	154,244	154,451	21,799
Amortization of intangible assets resulting from business acquisitions………………………………………………………………………………..	54,951	55,102	45,387	6,406
Non-GAAP income from operations…………………………………………..	465,133	950,475	143,995	20,323

GAAP net income attributable to 58.com Inc.…………………………….	698,150	2,609,766	1,638,623	231,275
Share-based compensation expenses………………………………………..	128,875	154,244	154,451	21,799
Amortization of intangible assets resulting from business acquisitions………………………………………………………………………………..	54,951	55,102	45,387	6,406
Change in fair value of long-term investments and investments in convertible notes[7]…………………………………………………………………..	(508,950)	2,258,544	446,081	62,960
Share-based compensation expenses included in share of results of equity investees…………………………………………………………………….	9	–	–	–
Income tax effects of GAAP to non-GAAP reconciling items[8]…..	62,878	(200,057)	(40,949)	(5,780)
Non-GAAP net income attributable to 58.com Inc.…………………….	435,913	4,877,599	2,243,593	316,660

GAAP operating margin……………………………………………………………..	9.3%	17.8%	(2.2)%	(2.2)%
Share-based compensation expenses………………………………………..	4.3%	3.7%	6.0%	6.0%
Amortization of intangible assets resulting from business acquisitions………………………………………………………………………………..	1.8%	1.4%	1.8%	1.8%
Non-GAAP operating margin……………………………………………………..	15.4%	22.9%	5.6%	5.6%

GAAP net margin…………………………………………………………………………	23.1%	62.8%	64.0%	64.0%
Share-based compensation expenses………………………………………..	4.3%	3.7%	6.0%	6.0%
Amortization of intangible assets resulting from business acquisitions………………………………………………………………………………..	1.8%	1.4%	1.8%	1.8%
Change in fair value of long-term investments and investments in convertible notes……………………………………………………………………	(16.8)%	54.4%	17.4%	17.4%
Share-based compensation expenses included in share of results of equity investees…………………………………………………………………….	0.0%	0.0%	0.0%	0.0%
Income tax effects of GAAP to non-GAAP reconciling items……	2.0%	(4.9)%	(1.6)%	(1.6)%
Non-GAAP net margin…………………………………………………………………	14.4%	117.4%	87.6%	87.6%

Weighted average number of ordinary shares used in computing non-GAAP basic earnings per share………………………..	296,690,552	299,155,358	299,427,404	299,427,404
Weighted average number of ordinary shares used in computing non-GAAP diluted earnings per share……………………..	300,250,567	302,001,274	302,932,654	302,932,654
Weighted average number of ADS used in computing non-GAAP basic earnings per ADS…………………………………………………..	148,345,276	149,577,679	149,713,702	149,713,702
Weighted average number of ADS used in computing non-GAAP diluted earnings per ADS………………………………………………..	150,125,284	151,000,637	151,466,327	151,466,327

Non-GAAP net earnings per ordinary share attributable to ordinary shareholders – basic…………………………………………………….	1.47	16.30	7.49	1.06
Non-GAAP net earnings per ordinary share attributable to ordinary shareholders – diluted………………………………………………….	1.45	16.15	7.41	1.05
Non-GAAP net earnings per ADS attributable to ordinary shareholders – basic……………………………………………………………………	2.94	32.61	14.99	2.12
Non-GAAP net earnings per ADS attributable to ordinary shareholders – diluted…………………………………………………………………	2.90	32.30	14.81	2.09

[6] Since the third quarter of 2017, certain share-based awards with redemption features granted to the Company’s employees were expected to be settled in cash and were classified as liabilities. The share-based compensation expenses recognized for this type of awards amounted to RMB4.4 million, RMB4.7 million and RMB4.0 million for the first and fourth quarter of 2019 and the first quarter of 2020, respectively, which were excluded from the GAAP to non-GAAP reconciliation accordingly.

[7] The purpose of this reconciliation is to exclude the unrealized gain or loss relating to changes in fair value of long-term investments and investments in convertible notes. The amount of realization of any previously recognized unrealized gain or loss in a given period is also included in this line item so that the non-GAAP net income would only include cumulative realized gain or loss.

[8] This is to exclude the income tax effects related to amortization of intangible assets resulting from business acquisitions and change in fair value of long-term investments and investments in convertible notes. Other GAAP to non-GAAP reconciling items have no income tax effect.

Related Links :

http://www.58.com

PR Newswire

Indonesia Focused East Ventures Raises New Seed Fund for Tech Startups in Aftermath of Pandemic

June 26, 2020 TechENT Syndication Leave a comment

The new vehicle will be East Ventures’ eighth fund, as the firm remains bullish on the ASEAN’s digital economy and predicts that innovative startups will transform the region’s post-lockdown landscape for the better.

Quick Facts:

Southeast Asia’s most active early-stage tech investor has reached a first close on its latest seed fund, designed for Southeast Asian innovation in a post-COVID-19 era.
The new fund will be East Ventures’ eighth tech investment vehicle to date, with the firm aiming to raise US$88 million from limited partners.
The capital is being raised from institutional investors, global funds, and family offices.
East Ventures was recently named the most consistent top performing VC fund globally by Preqin.
In addition to funding new startups in Southeast Asia, the firm is also working closely with existing portfolio companies and advising on how best to implement wartime leadership.

JAKARTA, Indonesia, June 26, 2020 — Earlier today, Southeast Asia’s most active early-stage tech investment firm East Ventures announced that it has reached the first close on a new venture fund for innovative startups in the region. The new seed fund is designed for digital companies emerging in the post-lockdown aftermath of the COVID-19 pandemic.

Willson Cuaca, Co-founder and Managing Partner East Ventures.

The fund is East Ventures’ eighth investment vehicle to date, and the firm aims to raise no more than US$88 million from limited partners.

As the world has slowed down in the time of COVID-19, businesses in the region continue to struggle and lives have been changed forever. Local entrepreneurs are forced to rethink how they operate, understand what is truly essential, and learn how to live with less physical contact. As a result, many are now accelerating to the point where they’re leap-frogging into digital transformation and bypassing years of the usual adoption process.

East Ventures’ latest fund is attracting global and regional institutional investors.

“We are excited to continue our partnership with East Ventures. The firm is well-positioned in Southeast Asia to guide entrepreneurs to achieve their full potential,” said Tow Heng Tan, CEO of Pavilion Capital.

Sunil Mishra, Partner of Adams Street Partners added, “Adams Street is pleased to be committing to the new East Ventures fund. We are impressed with the track record of the team, their local market reputation, ability to work with young founders to guide them and hope that they will continue to generate strong returns.”

Crisis Brings Clarity

East Ventures’ management team believes new global conditions have provided unprecedented clarity for startup decision-makers.

“The pandemic has created a chance for a new breed of entrepreneurs to think about new problems and how to solve them in efficient ways via technology,” says East Ventures’ Managing Partner Willson Cuaca. “We remain optimistic about the future of Southeast Asia’s digital economy, and we’re particularly bullish on the Indonesian market. We feel the current situation proves our core hypothesis that great founders will find a way to make their companies thrive, even in times of crisis. Great people withstand the test of time.”

Cuaca adds that East Ventures’ eighth fund will remain sector agnostic, as exceptional founders exist across the board, in a multitude of industries.

According to East Ventures, the team intentionally seeks to keep its latest fund under US$100 million, as this makes it easier to deploy money into early-stage companies. In turn, the fund is designed to help East Ventures more quickly achieve its key objective of being the best asset class for its limited partners.

Investment Focus

East Ventures’ management team believes the main objective in early-stage investing is to find product-market fit as quickly as possible. As such, it makes a point of working with fledgling founders to navigate the market and neutralize biases.

By having full teams in multiple cities and understanding both Singapore and Indonesia deeply, East Ventures is able to bridge geographic and cultural biases. This is useful for Singapore-based startups looking to expand to Indonesia. It’s also useful for Indonesia-based startups that need to use global practices to become locally dominant.

The same principle can also extend beyond Southeast Asia. Over the past 11 years, East Ventures has formed a knowledge-base and playbook for tech investment success, born from one of the most advanced emerging markets for digital innovation.

East Ventures has developed a concise theory of Indonesia having a “flywheel effect.” The firm works closely with all stakeholders — local industry players, family offices, entrepreneurs, early-stage startups, and growth companies — to build a frictionless flywheel. It has formed a complete startup life cycle from investing at the early-stage, finding product-market fit, creating value and scaling, and finally exits and re-investing.

COVID-19 Response

“We realized that the majority of our CEOs have never been in crisis before,” explains Cuaca. “Because of this, we are doing health checks with our portfolio companies. Instead of immediately advising on tactical business plans, we first try to help the founder understand the crisis and how severely it is impacting their company. Only after founders understand these things can they begin to cultivate their own strategy and implement it tactically. In this respect, we’re trying to convey the importance of wartime leadership.”

The Bigger the Market, the Bigger the Flywheel

Representing approximately 40% of the region’s economy, Indonesia’s internet economy has progressed rapidly — starting as a humble e-commerce-based game and blooming into an everyday staple that touches all industries.

Regionally, venture capital has become a relatively new asset class for investors. East Ventures has established an outstanding track record as one of the first movers. The firm has grown its portfolio value significantly and assisted in the successful exits of multiple companies.

Some of the firm’s deals have reached 1,000x in terms of Multiple on Invested Capital (MOIC). East Ventures claims a Distributions to Paid-in Capital (DPI) rate as high as 7x, with notable exits including Grab’s acquisition of Kudo in 2017, as well as GoJek’s more recent purchases of Loket and Moka POS. Two out of four East Ventures funds have returned beyond the amount of capital invested by limited partners.

About East Ventures

Founded in 2009, East Ventures is an early-stage sector-agnostic venture capital firm. The firm has supported more than 170 companies in the Southeast Asian region that are present across Indonesia, Singapore, Japan, Malaysia, Thailand, and Vietnam.

An early believer in the startup ecosystem in Indonesia, East Ventures is the first investor of Indonesia’s unicorn companies, namely Tokopedia and Traveloka. Other notable companies in the portfolio include Mercari, Ruangguru, Warung Pintar, Fore Coffee, Kudo (acquired by Grab), Loket (acquired by Gojek), Tech in Asia, Xendit, IDN Media, MokaPOS, ShopBack, CoHive, Koinworks, Waresix, and Sociolla.

In 2019, East Ventures remains the most active startup investor in Southeast Asia and the firm was recently named the most consistent top performing VC fund globally by Preqin.

Photo – https://photos.prnasia.com/prnh/20200626/2841728-1?lang=0

PR Newswire

Huawei officially launches Huawei Pay mobile payment in Thailand

June 26, 2020 TechENT Syndication Leave a comment

BANGKOK, June 26, 2020 — Huawei Mobile Services (HMS) collaborates with UnionPay to launch the Huawei Pay in Thailand. Huawei Pay is a mobile payment tool that provides contactless, cashless payment service for HUAWEI device users. In Thailand, Industrial and Commercial Bank of China (Thai) Public Company Limited is the first bank to support this service.

First introduced to the China market in August 2016, Huawei Pay is a mobile payment service rooted on HUAWEI Wallet, which provides contactless, cashless payment service for HUAWEI device users, as part of the Huawei Mobile Services (HMS).

“We are pleased to extend our partnership with UnionPay and Industrial and Commercial Bank of China to introduce Huawei Pay to the Thailand market. With Huawei Pay, users can turn their devices into an e-wallet to enjoy secure, easy and convenient payment experience,” said the Director of Huawei Asia Pacific Consumer Cloud Service, Shane Shan.

Huawei Pay is one of the key services under the HUAWEI Wallet app that supports the Near Field Communication (NFC) payments in retail stores. Users can enable Huawei Pay by adding their bank cards to HUAWEI Wallet app and transact conveniently by tapping their Huawei devices to the payment terminal.

Huawei Pay is designed with security in mind — it uses PIN or biometric authentication methods such as fingerprint recognition to authenticate customers for retail purchases. The HUAWEI Wallet app comes pre-installed in the newly launched HUAWEI P40 series, while for the existing HUAWEI smartphone models, the app can be downloaded from HUAWEI AppGallery, Huawei’s official app marketplace.

In Thailand, the local merchandises support Huawei Pay including Boots, Emporium, Jaymart, Major Cineplex, Mr. D.I.Y, Sushi Hiro, Swarovski, Tesco Lotus, The Face Shop and more.

About Huawei Mobile Services:

Huawei Mobile Services is part of HUAWEI Consumer Business Group which aims to provide complete mobile experience to HUAWEI device users. Our services include HUAWEI AppGallery, Mobile Cloud, Video, Themes, ScreenMagazine and more. Huawei Mobile Services covers 600 million users in over 170 countries, enabling a smart living for every HUAWEI device users. In the era of fully connected world, we continue to provide better user experience and fulfil our commitment to bring the world closer together.

To learn more about Huawei Mobile Services, please visit our official website: https://consumer.huawei.com/th/mobileservices/

PR Newswire

KPMG and Planon Extend Cooperation to Support Organisations in the Digitalisation of Lease-, Real Estate- and Portfolio Management Processes

June 26, 2020 TechENT Syndication Leave a comment

NIJMEGEN and AMSTELVEEN, Netherlands, June 26, 2020 — KPMG and Planon today announced moving their collaboration to the next level, by signing a partnership agreement. Over the past two years the parties have been successfully working together on helping companies to comply with IFRS 16 standards by implementing Planon’s Lease Accounting solution across Europe.

Thanks to this partnership organisations can achieve a stronger ‘end-to-end transformation’ from lease accounting towards strategic portfolio management. The combination of Planon’s innovative software solutions with KPMG’s extensive knowledge around process optimisation and performance improvements creates synergy. It will enable building owners and users to plan and execute a smart portfolio management strategy, using innovative technologies managed from a single-source-of-truth.

Gerben de Roest, Partner at KPMG Enterprise Solutions, said, ‘I am very happy that we have found a global software provider that helps building owners and occupiers to streamline business processes for buildings, people and workplaces and that puts innovation first. I am looking forward to continuing our successful collaboration by helping our mutual and new clients to get the most value out of their Planon investments, by providing value added expertise and controlled implementation of Planon solutions and related technology.’

Sander Grunewald, Partner at KPMG Real Estate Advisory, added, ‘The extended cooperation in a partnership between Planon and KPMG emphasises our global firm’s focus to support corporate organisations with optimising and digitising their real estate portfolios and further align real estate within its key business strategy. Many of our corporate clients are looking to embrace the opportunities that technology brings. We aim to support them in gaining the full potential from digital and innovative technology. Planon is one of the established technology providers in this domain that can fulfill a bridging role to connect the technology solutions and bring additional value to the corporate clients.

About Planon

With over 35 years of experience, Planon is the leading global provider of innovative software, proven best practices and professional services that help building owners and occupiers, commercial service providers, and financial controllers to streamline business processes.

About KPMG Netherlands

KPMG has offered high-quality accountancy and advice services in the Netherlands since 1917.

Related Links :

https://planonsoftware.com

PR Newswire

Planful Raises Equity Round to Meet Increasing Demand for Its Cloud-Based FP&A Solution

June 25, 2020 TechENT Syndication Leave a comment

Additional Funds from Majority Shareholder Vector Capital and Other Leading Investment Firms Position Planful to Seize Market Opportunities, Invest in Product, and Drive Go-to-Market Initiatives

REDWOOD CITY, California, June 25, 2020 — Planful Inc. (formerly Host Analytics), a leading financial planning and analysis (FP&A) cloud platform provider, today announced that the company has raised an equity round led by Vector Capital, a leading global private equity firm that specializes in transformational investments in established technology businesses. The equity round also included existing investors StarVest Partners and Monroe Capital. Planful expects to use the proceeds to meet growing global demand for its cloud-based FP&A solution and interest in its Continuous Planning vision.

Planful has seen a marked increase in the use of its platform by existing customers, including Bose, the Boston Red Sox, and Del Monte, as businesses rapidly analyze various factors affecting performance and run more frequent forecasting scenarios using Planful’s intuitive platform. With a Continuous Planning approach, Planful customers can compress cycle times and facilitate faster collaboration with increased process and data connectivity throughout every corner of the organization, increasing agility and enabling faster, more confident planning and decision-making.

“We live in an increasingly dynamic world and the traditional planning process with spreadsheets and annual budgets no longer works for modern businesses,” said Luis Martinez Luna, Senior Financial & Business Analyst at Bose, a manufacturing company that predominantly sells audio equipment. “With Planful, we’re able to ensure there is connectedness across the business throughout the planning process, giving us a single source of truth that is flexible enough to serve all units of our business, regardless of the economic climate.”

Planful CEO Grant Halloran said, “The COVID-19 pandemic has been a stark realization for many businesses that the need to modernize the back office is critical. We’ve seen a significant increase in demand for our platform over the past several months and have the capital backing to expand our team and go-to-market capabilities, as well as accelerate our product roadmap. Our recently announced Planful Now offering enables businesses to be up and running in 30 days or less, realizing the value of our solution more quickly than ever before.”

About Planful
Planful is a leading financial planning and analysis (FP&A) cloud platform. Planful delivers a vision of Continuous Planning by accelerating the end-to-end FP&A process and fostering business-wide participation in agile planning and decision-making. More than 800 customers including Bose, Boston Red Sox, Del Monte, TGI Friday’s, and 23andMe rely on Planful for financial planning and budgeting, dynamic operational planning, financial consolidations, reporting, and visual analytics. Planful is a private company backed by Vector Capital, a leading global private equity firm specializing in transformational investments in established technology businesses. Learn more at www.planful.com.

Additional Resources
View on-demand content from the Planful Virtual Tour
View FP&A resources to navigate an uncertain world
Learn more about Planful customers
Join the conversation on social media: LinkedIn, Twitter, or Facebook.

Contact
press@planful.com

PR Newswire

ICE71 powers cyber start-ups to raise S$18 million to strengthen cyber ecosystem

June 25, 2020 TechENT Syndication Leave a comment

ICE71 has helped 16 cyber security start-ups from previous cohorts raise funding since 2018
Nine start-ups from the latest cohort pitched to over 300 potential investors, partners and customers via a virtual Demo Day

SINGAPORE, June 25, 2020 — ICE71, the region’s first hub for cyber security entrepreneurs and start-ups, has strengthened start-ups’ ability to secure funding through ICE71 Accelerate, a three-month accelerator programme for early-stage cyber security start-ups. Since the programme’s inception in July 2018, 16 of the start-ups from the previous cohorts have collectively raised S$18 million, including funding from ICE71’s founding partners Singtel Innov8 and NUS Enterprise.

ICE71 presents 9 cybersecurity start-ups at its fourth ICE71 Accelerate Demo Day

Today, nine cyber security start-ups from ICE71’s (Innovation Cybersecurity Ecosystem at BLOCK71) latest cohort were given the opportunity to pitch their companies and solutions to potential investors, partners and customers via a virtual Demo Day (view here). The event is particularly relevant given the increasing cyber threats related to data security and privacy as companies accelerate their digitalisation and more people study or work from home during and after the COVID-19 pandemic. These challenges have driven even greater demand globally for cyber security solutions that can help mitigate these risks.

Given the cautious investment climate during this COVID-19 pandemic, cyber security start-ups face greater challenges in getting investors to fund their ventures. With ICE71’s resources, start-ups can leverage its capabilities in mentoring and connecting them to an ecosystem of investors, partners and customers.

Mr Edgar Hardless, CEO of Singtel Innov8, said, "The COVID-19 pandemic has upended the start-up ecosystem, making it extremely difficult for start-ups to connect to investors to get funding and grow their businesses. This underscores the value of the cyber security community and network of start-ups, investors, partners and customers that Innov8 has helped ICE71 create over the past two years. ICE71’s virtual Demo Day provides our Cohort 4 start-ups a great way to showcase their technology and solutions to potential customers and investors, both locally and internationally."

Professor Freddy Boey, NUS Deputy President (Innovation and Enterprise), said, "The emergence of new challenges in these unprecedented times has presented ample opportunity for cyber security entrepreneurs to create innovative solutions. As cyber security is even more crucial than before, we need strong synergy in our ecosystem to collectively address sophisticated cyber threats. NUS and Singtel have been working closely to help strengthen our defences, having made a breakthrough under the NUS-Singtel Cyber Security Lab last year. Through ICE71’s programmes, we continue our efforts in developing industry-relevant programmes and platforms to help our start-ups go to market more quickly. We will continue to offer the resources to help cyber security entrepreneurs accelerate in their growth and expand our ecosystem with support from the Government and our industry partners."

Hailing from Singapore, Australia, Israel, the UK, the US and Poland, the current cohort of nine start-ups has developed a range of cyber security solutions that are applicable to businesses, governments and consumers. Please refer to the fact sheet in Annex A for more information on each of these start-ups.

To deliver the ICE71 Accelerate programme, ICE71 partnered with CyLon, a dedicated cybersecurity accelerator from London, UK.

To date, ICE71 Accelerate has supported a total of 34 cyber security start-ups through four cohorts, with the aim of strengthening Singapore’s growing cyber security ecosystem by attracting and developing cybersecurity start-ups with innovative competencies and new technologies. ICE71 will continue to support these start-ups through both the ICE71 Scale programme and ICE71 Community initiatives, giving them access to incubation facilities, leadership development and expert speaker programmes, networking events and the region’s leading cyber security community of investors, strategic partners, enterprises, government agencies and cyber security experts.

About ICE71

Innovation Cybersecurity Ecosystem at BLOCK71 (ICE71) is the region’s first cybersecurity entrepreneur hub. Based in Singapore, ICE71 is a partnership between Singtel Innov8, the venture capital arm of the Singtel Group, and the National University of Singapore (NUS) through its entrepreneurial arm NUS Enterprise. ICE71 is strengthening the region’s growing cybersecurity ecosystem by attracting and developing competencies and deep technologies to help mitigate the rapidly increasing cybersecurity risks in the region.

Supported by the Cyber Security Agency of Singapore (CSA) and Info-Communications Media Development Authority (IMDA), ICE71 is focused on developing and supporting early and growth stage cybersecurity entrepreneurs and start-ups from around the world. ICE71 runs a range of programmes designed to support cybersecurity individuals and start-ups from idea development to the creation, acceleration and scaling of cybersecurity start-ups. The ICE71 Inspire and ICE71 Accelerate programmes are run by CyLon, the leading global cybersecurity accelerator and active investor in early stage cybersecurity start-ups. CyLon’s global cybersecurity network and expertise, combined with ICE71’s regional knowledge and ecosystem, provides entrepreneurs and start-ups with the support and go-to-market access required to scale a successful cybersecurity business in the region.

For more information, please visit: https://ICE71.sg.

For the latest overview of Singapore’s cybersecurity start-up ecosystem, please see ICE71’s map here.

About Singtel Innov8

Singtel Innov8, the venture capital arm of the Singtel Group, invests in and partners with innovative technology start-ups globally. It has a fund size of US$250 million and its own set of decision making, approval and investment processes. Beyond funding, Singtel Innov8 is a gateway for start-ups to leverage the resources, expertise and customers of the Singtel Group, while enabling the Group to gain access to insights and emerging technologies through the global innovation and start-up ecosystems. Singtel Innov8 focuses its investments on technologies and solutions to support Singtel Group’s strategy. Headquartered in Singapore, Singtel Innov8 also has offices in San Francisco, Tel Aviv, Beijing and presence in Sydney.

For more information, please visit: http://innov8.singtel.com.

About NUS Enterprise

NUS Enterprise, the entrepreneurial arm of the National University of Singapore (NUS), plays a pivotal role in advancing innovation and entrepreneurship at NUS and beyond. It actively promotes entrepreneurship and cultivates global mind-sets and talents through the synergies of experiential entrepreneurial education, active industry partnerships, holistic entrepreneurship support and catalytic entrepreneurship outreach. Its initiatives and global connections support a range of entrepreneurial journeys and foster ecosystem building in new markets. These initiatives augment and complement the University’s academic programmes and act as a unique bridge to industry well beyond Singapore’s shores.

For more information, please visit: https://enterprise.nus.edu.sg.

Annex A: Fact Sheet on ICE71 Accelerate Cohort 4 Start-ups (in alphabetical order):

1. Assimil8 (from Australia): The global COVID-19 pandemic has forced businesses – especially small- and medium-sized enterprises (SMEs) – to operate remotely without the usual IT support. This renders them vulnerable to sophisticated cyber attacks. To enable SMEs to protect themselves in a cost-efficient manner, Assimil8 is developing a solution that can help them recognise and handle raw threat data without relying on external specialists. Assimi8’s solution, the Intuitive Data Relationship Inference System (IDRIS), uses graph technologies to provide easy-to-read visual network views for decision makers to make sense of large complex data sets. This means users can spot anomalies and identify potential network risks quickly. The solution is suitable for SMEs and their managed service providers.

2. Chainkit (from the US and originally known as PencilData): As cyber attackers switch to using more sophisticated stealth tactics to become untraceable, organisations face greater risks of such undetected attacks. Chainkit’s solution, Cyber Stealth Radar, uses military-grade tamper detection for security, forensics and compliance to expose cyber attacks in real time, preventing cyber attackers from hiding their tracks or dwelling within a network or system. Chainkit’s solution can mitigate insider threats, contain damage and immediately isolate all tampered code or data. The product is relevant to government agencies and industries like IT, the Internet of Things (IoT), financial services and healthcare.

3. GamaSec (from Israel): The recent rise of cybercrime like data breaches has driven demand for enterprises to take up cyber insurance for protection against damage, theft or corruption of electronic data. However, insurers’ expertise is inadequate to help businesses safeguard themselves from cyber attacks and restore hacked systems and lost data. GamaSec’s solution combines cybersecurity and cyber insurance, using virtual hacker technologies to identify and prevent cyber attacks via websites. Through proactive minimisation of cyber exposure and loss prevention for cyber insurance policyholders, GamaSec significantly reduces risk and helps them prevent potential cyber attacks. GamaSec’s solution is relevant to insurance providers and brokers providing cyber insurance policies to SMEs. Recently, GamaSec was chosen to be a finalist in Insurtech Hartford’s Innovation Challenge held on 18 June 2020.

4. Guardara (from the UK) focuses on fuzz testing, a software testing technique for discovering coding errors and security loopholes. Its solution, Fuzzlabs, helps product security teams discover such loopholes early by identifying software, operating and network issues in a quick and integrated manner. Fuzzlabs is able to identify software flaws and exploitable security vulnerabilities that were previously unknown, test web applications and services, and secure code. The solution is targeted at enterprise product security teams that work on industrial control systems, IoT technologies, medical devices, telecommunications, defence, aerospace, and automotive.

5. Kapalya (from the US): Kapalya’s Encryption Management Platform (EMP) addresses organisational needs for files and folders to be encrypted across multiple platforms, like desktops, portable devices (including laptops, smartphones and tablets), cloud storage and servers, especially when some of these are used remotely with more people working from home during COVID-19. This means that file sharing must be encrypted end-to-end across entire organisations regardless of where their data resides. EMP provides organisations with a seamless method to do so and can help counter attacks by ransomware. One major use for this is in recovering lost data after a ransomware breach. The platform can be integrated with any network and device, and is industry-agnostic.

6. Kinnami (from the US): Migrating data to cloud storage raises concerns over data security, impact on users of the initial migration and cost management. Furthermore, as more people work or study from home during the COVID-19 pandemic, there is a greater demand for security solutions to help them secure sensitive data. Kinnami’s solution, AmiShare, enables organisations to manage data security by defining dynamic policies that decide who can access the data and where the data should be stored – in the cloud, data centres, or end-user devices. This is done via fragmented and encrypted storage to secure confidential data across devices and users everywhere, even as the data moves along on data-sharing applications. The product is relevant to the financial services, healthcare, professional services like legal services, and supply chain management industries, academia, and national defence.

7. neoEYED (from the US): neoEYED has developed an Artificial Intelligence (AI) solution that helps banks, fintech applications and e-commerce businesses secure their digital identities and accounts from unauthorised users to prevent fraud. Its solution uses AI to learn and recognise users’ behaviour, based on how they interact with web and mobile applications and use their devices, and raises an alert if there is suspicious activity on an account. It is unobtrusive as it continuously monitors user behaviour without seeking additional permissions or personal information from the user. The solution is suitable for any industry.

8. Olympus Sky Technologies (from Poland) provides secure communication and credential management for IoT-related hardware and virtual (concerning software and electronic images, etc.) assets. Its solution, Autonomous Key Management (AKM), enables enterprises to efficiently create and authenticate credentials for IoT applications, facilitating the adoption of these advanced technologies across industries. As IoT technologies are often connected in complex supply chains that need authentication at each point, it was costly to implement and maintain traditional security solutions which cannot be scaled for these needs. Olympus Sky’s solution, Autonomous Key Management (AKM), simplifies this and significantly decreases the total number of vulnerabilities that unauthorised users can access and steal data from. Users thus get security in a cost- and time-efficient manner. Although this solution is primarily for industrial IoT applications, it also has considerable traction in transport and mobility.

9. Scantist (from Singapore) finds and addresses vulnerabilities in software applications and products which have been the preferred target for hackers worldwide in recent years. Scantist’s solution, Scantist Software Composition Analysis (SCA), secures apps by scanning all software codes and binaries in a single platform with high accuracy. The solution is relevant to SMEs and large enterprises in Singapore, Southeast Asia and China that need to maintain or develop software applications.

Photo – https://photos.prnasia.com/prnh/20200625/2841275-1?lang=0

Related Links :

https://ICE71.sg

PR Newswire

JCET Group Subsidiary Recognized for Excellence by Texas Instruments

June 25, 2020 TechENT Syndication Leave a comment

SHANGHAI, June 25, 2020 — Jiangyin Changdian Advanced Packaging Co., LTD. (JCAP), subsidiary of JCET Group has received the Texas Instruments (TI) 2019 Supplier Excellence Award. The annual award honors companies whose dedication and commitment in supplying products and services meet TI’s high standards for excellence. Recipients are an elite group of suppliers chosen for their exemplary performance in the areas of Cost, Environmental & Social Responsibility, Technology, Responsiveness, Assurance of Supply, and Quality.

TI uses the products and services of more than 10,000 suppliers throughout the world. The “TI Supplier Excellence Award” is the highest TI award issued to their best preforming global suppliers. JCAP is the only packaging and test company in mainland China that is receiving this award for 2019. JCET Group has provided its services to TI for many years, and has established a close partnership. This award is the result of the long term cooperation between the two companies and the recognition of JCAP’s continued excellent performance in 2019.

Mr. Jerry Zhang, General Manager of JCAP stated, “It is our great honor to receive this award for the fourth time. The supplier excellence award represents TI’s confirmation and recognition of JCAP’s Bump & WLP technologies and high volume production services. Being a global leading packaging and testing company, JCET Group always promotes innovation, assures the highest quality, and on-time delivery with advanced patented technologies. JCET Group will continue to concentrate on research, development and innovation to add more high-end packaging technologies to our portfolio, and work closely together with our customers for continuous improvement and excellence.”

the Texas Instruments (TI) 2019 Supplier Excellence Award

About JCET Group:

JCET Group is a leading global semiconductor system integration packaging and test provider, offering a full range of turnkey services that include semiconductor package integration design and characterization, R&D, wafer probe, wafer bumping, package assembly, final test and drop shipment to vendors around the world.

About JCAP

As one of the core business units of JCET Group, Jiangyin Changdian Advanced Packaging Co., LTD. (JCAP) is focused on mid-end semiconductor packaging and test technologies and providing the highest quality service for our global customers.

Photo – https://photos.prnasia.com/prnh/20200625/2841096-1?lang=0

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