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PR Newswire

Yiwugo Signed a Digital Strategic Cooperation with AfriChina Projects Limited

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YIWU, China, Aug. 27, 2020 — Yiwugo.com, the official website of the Yiwu Commodity Market, which is the largest commodity wholesale market in the world, and AfriChina Projects Limited have signed a digital cooperation agreement. Yiwugo hopes to provide better localized and quality services to overseas buyers through the cooperation, while AfriChina Projects aims to enable local buyers access to quality merchants and products from Yiwu.

AfriChina Projects is currently owner of a digital trading platform for Nigerian buyers. During the cooperation, Yiwugo will provide information about its products and shops to this online platform to help Nigerian buyers purchase commodities from Yiwu’s suppliers. In this way, most of the challenges of doing business between Nigeria and China (e.g. providing more convenient and localized services, building trust between Nigerian buyers and Chinese suppliers on the digital platform, etc.) can be addressed in order to facilitate the seamless free flow of goods.

In recent years, the economic and trade cooperation between China and Nigeria has been on a fast track, with bilateral trade between China and Nigeria reaching $19.27 billion in 2019, up 26.3 percent from the previous year, making Nigeria No. 1 among China’s top 40 trading partners in terms of growth rate. Nigeria has been paying close attention to China’s "Belt and Road Initiative" and has been strengthening its cooperation with China through it. Yiwu is one of the major cities of international trade along the "Belt and Road" and one of the largest export bases in China, with its small commodities are exported to 219 countries and regions around the world. In the context of the current global COVID-19 outbreak, digital international trade is undoubtedly the best choice.

Currently, Yiwugo has signed agreements on digital strategic cooperation with partners from more than ten countries and regions including Russia, Iran, Lebanon, Syria, Canada, Brazil, Egypt, Chile, Malaysia, Indonesia, to achieve win-win cooperation. Overseas partners provide local buyers with convenient and localized services by accessing the information of shops and products on the Yiwugo platform. By this way, Yiwugo strives to open up global digital trade channels for small commodities of Yiwu.

 

PR Newswire

China Distance Education Holdings Limited Reports Financial Results for Third Quarter Fiscal Year 2020

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– Third Quarter 2020 Net Revenue was $50.7 Million, within Guidance Range –

– Third Quarter 2020 Gross Profit was $24.1 Million, with Gross Margin of 47.5% –

– Third Quarter 2020 Operating Income was $2.5 Million, with Operating Margin of 4.9% –

– Third Quarter 2020 Net Income Attributable to CDEL was $3.0 Million, with Net Income Margin of 5.9% –

BEIJING, Aug. 27, 2020 — China Distance Education Holdings Limited (NYSE: DL) ("CDEL", or the "Company"), a leading provider of online education and value-added services for professionals and corporate clients in China, today announced unaudited financial results for the third quarter of fiscal year 2020 ended June 30, 2020.

Third Quarter Fiscal 2020 Financial and Operational Highlights

  • Net revenue decreased by 17.9% to $50.7 million from $61.7 million in the prior year period.
  • Total course enrollments were 738,300, an increase of 0.5% from the third quarter of fiscal 2019.
  • Cash receipts from online course registration were $34.6 million, a 31.3% decrease from the third quarter of fiscal 2019.
  • Gross profit decreased by 22.8% to $24.1 million from $31.2 million in the prior year period.
  • Non-GAAP[1] gross profit decreased by 22.7% to $24.1 million from $31.2 million in the prior year period.
  • Gross margin was 47.5%, compared with 50.5% in the prior year period. Non-GAAP[1] gross margin was 47.5%, compared with 50.5% in the prior year period.
  • Operating income decreased by 75.0% to $2.5 million from $9.9 million in the prior year period.
  • Non-GAAP[1] operating income decreased by 69.6% to $3.2 million from $10.4 million in the prior year period.
  • Net income attributable to CDEL was $3.0 million, compared with net income attributable to CDEL of $9.4 million in the prior year period.
  • Non-GAAP[1] net income attributable to CDEL was $3.7 million, compared with non- GAAP[1] net income attributable to CDEL of $10.0 million in the prior year period.
  • Basic and diluted net income per American Depositary Share ("ADS") attributable to CDEL were $0.089 and $0.088, respectively, compared with basic and diluted net income per ADS attributable to CDEL of $0.282 and $0.281, respectively, for the third quarter of fiscal 2019. Each ADS represents four ordinary shares.
  • Basic and diluted non-GAAP[1] net income per ADS attributable to CDEL were $0.111 and $0.109, respectively, compared with basic and diluted non-GAAP[1] net income per ADS attributable to CDEL of $0.299 and $0.296, respectively, for the third quarter of fiscal 2019.
  • Cash flow from operations decreased by 59.2% to $7.2 million from $17.6 million in the third quarter of fiscal 2019.

[1] For more information about the non-GAAP financial measures contained in this press release, please see "Use of Non-GAAP Financial Measures" below.

Mr. Zhengdong Zhu, Chairman and CEO of CDEL, said, "In the third quarter of fiscal 2020, we reported net revenue of $50.7 million, within our guidance range. During the onset of the COVID-19 pandemic, in order to support our students across China with high-quality online professional education at a time when offline classes were suspended, we provided free online courses to students in Hubei province and significant discounts for certain online exam preparation courses to students outside Hubei. Our socially responsive actions resulted in a surge in enrollment in our second fiscal quarter as previously disclosed, effectively pulling forward the demand for our courses and thus dampening enrollment and cash receipts growth in our third fiscal quarter."

"We believe in the long-term growth prospects of online professional education in China, and expect online education will continue to transform how knowledge is delivered and how students learn. We remain committed to serving students with our high-quality courseware and compelling online educational solutions during this challenging time. We are confident that our comprehensive lifelong learning ecosystem will enable us to reach a broad and growing student audience, and extend convenience, flexibility and engagement to their learning experience," Mr. Zhu concluded.

Mr. Mark Marostica, Co-Chief Financial Officer of CDEL, added, "As anticipated, the decrease in cash receipts for our courses due to our socially responsive actions, together with the postponement of certain professional certification examinations, negatively impacted our revenue growth for the third fiscal quarter. In addition, a delay in the publication of certain legal exam preparation books further weakened our third quarter revenue growth. Despite these headwinds, we maintained a disciplined cost structure and achieved a non-GAAP operating margin of 6.2% for the quarter. With our fourth fiscal quarter well underway, we are further impacted by the postponement of a number of core professional certification examinations held in Beijing and several other cities. We remain focused on balancing growth with a keen focus on profitability."

Third Quarter Fiscal 2020 Financial Results

Net Revenue. Total net revenue decreased by 17.9% to $50.7 million in the third quarter of fiscal 2020 from $61.7 million in the third quarter of fiscal 2019. Net revenue from online education services, books and reference materials, and other sources contributed 78.9%, 12.8% and 8.3%, respectively, of total net revenues for the third quarter of fiscal 2020.

Online education services. Net revenue from online education services decreased by 8.1% to $40.0 million in the third quarter of fiscal 2020 from $43.5 million in the third quarter of fiscal 2019, primarily attributable to the decrease in revenue from the Company’s healthcare and accounting verticals due to the impact of COVID-19, stemming from the postponement of certain professional certification examinations across China and the aforementioned socially responsive actions the Company adopted, which resulted in a significant decline in cash receipts from online course registration in both the second and third fiscal quarters of 2020.

Books and reference materials. Net revenue from books and reference materials decreased by 33.8% to $6.5 million in the third quarter of fiscal 2020 from $9.8 million in the third quarter of fiscal 2019, primarily attributable to the delay in the publication of certain Legal Professional Qualification Examination books, due to the promulgation of new laws.

Others. Net revenue from other sources decreased by 49.8% to $4.2 million in the third quarter of fiscal 2020 from $8.4 million in the third quarter of fiscal 2019, primarily due to a significant decrease in revenue from the sale of college-related learning simulation software, and a significant decrease in the provision of offline training courses, resulting from the impact of COVID-19.

Cost of Sales. Cost of sales decreased by 12.8% to $26.6 million in the third quarter of fiscal 2020, from $30.6 million in the third quarter of fiscal 2019. Non-GAAP[1] cost of sales decreased by 13.0% to $26.6 million in the third quarter of fiscal 2020, from $30.6 million in the third quarter of fiscal 2019. The decrease in cost of sales was primarily attributable to a decrease in cost of books and reference materials and lecture fees.

Gross Profit and Gross Margin. Gross profit was $24.1 million in the third quarter of fiscal 2020, down 22.8% from $31.2 million in the prior year period. Non-GAAP[1] gross profit was $24.1 million, decreasing by 22.7% from $31.2 million in the prior year period. Gross margin was 47.5% in the third quarter of fiscal 2020, compared with 50.5% in the third quarter of fiscal 2019. Non-GAAP[1] gross margin was 47.5% in the third quarter of fiscal 2020, compared with 50.5% in the third quarter of fiscal 2019.

Operating Expenses. Total operating expenses increased by 5.6% to $23.2 million in the third quarter of fiscal 2020, from $22.0 million in the prior year period. Non-GAAP[1] total operating expenses increased by 5.0% to $22.6 million in the third quarter of fiscal 2020, from $21.5 million in the prior year period.

Selling expenses. Selling expenses increased by 4.6% to $17.8 million in the third quarter of fiscal 2020 from $17.0 million in the prior year period. Non-GAAP[1] selling expenses increased by 4.5% to $17.8 million in the third quarter of fiscal 2020, from $17.0 million in the prior year period. The increase was primarily driven by higher advertising and promotional expenses, and the increase in commission to agents.

General and administrative expenses. General and administrative expenses increased by 8.8% to $5.4 million in the third quarter of fiscal 2020 from $4.9 million in the prior year period. Non-GAAP[1] general and administrative expenses increased by 7.0% to $4.8 million in the third quarter of fiscal 2020, from $4.4 million in the prior year period. The increase was mainly due to the increase in share-based compensation expenses.

Income Tax Expenses. Income tax expense decreased by 77.1% to $0.6 million in the third quarter of fiscal 2020 from $2.5 million in the prior year period, primarily due to the decrease in taxable income in the third quarter of fiscal 2020.

Net Income Attributable to CDEL. As a result of the foregoing, net income attributable to CDEL was $3.0 million in the third quarter of fiscal 2020, compared with net income attributable to CDEL of $9.4 million in the prior year period. Non-GAAP[1] net income attributable to CDEL was $3.7 million in the third quarter of fiscal 2020, compared with non-GAAP[1] net income attributable to CDEL of $10.0 million in the prior year period.

Operating Cash Flow. Net operating cash inflow decreased by 59.2% to $7.2 million in the third quarter of fiscal 2020 from $17.6 million in the prior year period. The operating cash inflow was mainly attributable to net income before non-cash items generated in the third quarter of fiscal 2020. The increase in accrued expenses and other liabilities also contributed to the operating cash inflow. The operating cash inflow was partially offset by the decrease in deferred revenue and the decrease/increase in amount due to/from related parties.

Cash and Cash Equivalents, Term Deposits, Restricted Cash and Short-term Investments. Cash and cash equivalents, term deposits, restricted cash and short-term investments as of June 30, 2020 increased by 2.7% to $133.7 million from $130.2 million as of March 31, 2020, mainly due to the operating cash inflow generated in the third quarter of fiscal 2020 and the drawdown of an offshore loan of $20.0 million. The increase was partially offset by (i) the dividend distribution of $19.6 million, (ii) the repayment of an onshore loan of $2.8 million, (iii) the payment of an investment of $0.7 million and (iv) the capital expenditure of $0.6 million.

First Nine Months of Fiscal 2020 Financial Results

Net Revenue. Total net revenue increased by 0.6% to $144.0 million in the first nine months of fiscal 2020 from $143.1 million in the first nine months of fiscal 2019. Net revenue from online education services, books and reference materials, and other sources contributed 75.0%, 10.9% and 14.1%, respectively, of total net revenues for the first nine months of fiscal 2020.

Online education services. Net revenue from online education services increased by 11.9% to $107.9 million in the first nine months of fiscal 2020 from $96.5 million in the first nine months of fiscal 2019.

Books and reference materials. Net revenue from books and reference materials decreased by 27.2% to $15.8 million in the first nine months of fiscal 2020 from $21.6 million in the first nine months of fiscal 2019.

Others. Net revenue from other sources decreased by 18.9% to $20.3 million in the first nine months of fiscal 2020 from $25.0 million in the first nine months of fiscal 2019.

Cost of Sales. Cost of sales decreased by 8.4% to $72.8 million in the first nine months of fiscal 2020 from $79.5 million in the first nine months of fiscal 2019. Non-GAAP[1] cost of sales decreased by 8.5% to $72.7 million in the first nine months of fiscal 2020, from $79.4 million in the first nine months of fiscal 2019.

Gross Profit and Gross Margin. Gross profit was $71.2 million in the first nine months of fiscal 2020, up 11.9% from $63.7 million in the prior year period. Non-GAAP[1] gross profit was $71.3 million, increasing by 12.0% from $63.7 million in the prior year period. Gross margin was 49.5% in the first nine months of fiscal 2020, compared with 44.5% in the first nine months of fiscal 2019. Non-GAAP[1] gross margin was 49.5% in the first nine months of fiscal 2020, compared with 44.5% in the first nine months of fiscal 2019.

Operating Expenses. Total operating expenses increased by 9.7% to $69.3 million in the first nine months of fiscal 2020, from $63.2 million in the prior year period. Non-GAAP[1] total operating expenses increased by 9.4% to $67.5 million in the first nine months of fiscal 2020, from $61.7 million in the prior year period.

Selling expenses. Selling expenses increased by 15.3% to $52.3 million in the first nine months of fiscal 2020 from $45.3 million in the prior year period. Non-GAAP[1] selling expenses increased by 15.3% to $52.2 million in the first nine months of fiscal 2020, from $45.3 million in the prior year period.

General and administrative expenses. General and administrative expenses decreased by 4.7% to $17.0 million in the first nine months of fiscal 2020 from $17.9 million in the prior year period. Non-GAAP[1] general and administrative expenses decreased by 7.0% to $15.2 million in the first nine months of fiscal 2020, from $16.4 million in the prior year period.

Income Tax Expenses. Income tax expense was $1.3 million in the first nine months of fiscal 2020, compared with income tax expense of $2.1 million in the prior year period.

Net Income Attributable to CDEL. As a result of the foregoing, net income attributable to CDEL was $5.6 million in the first nine months of fiscal 2020, compared with net income attributable to CDEL of $7.5 million in the prior year period. Non-GAAP[1] net income attributable to CDEL was $7.5 million in the first nine months of fiscal 2020, compared with non-GAAP[1] net income attributable to CDEL of $9.0 million in the prior year period.

Operating Cash Flow. Net operating cash inflow decreased by 33.8% to $41.0 million in the first nine months of fiscal 2020 from $61.9 million in the prior year period.

Recent Developments Regarding the Non-binding "Going Private" Proposal

On June 8, 2020, the board of directors of the Company (the "Board") received a preliminary non-binding proposal letter (the "Proposal Letter") from Mr. Zhengdong Zhu, co-founder, chairman of the Board and chief executive officer of the Company ("Mr. Zhu"), Ms. Baohong Yin, co-founder of the Company, deputy chairman of the Board and the spouse of Mr. Zhu and their affiliated entity (collectively, the "Buyer Group") to acquire all of the outstanding ordinary shares of the Company, including ordinary shares represented by American depositary shares (the "ADSs", each representing four ordinary shares), for $2.27 in cash per ordinary share, or $9.08 in cash per ADS (the "Proposal"). On June 22, 2020, the Company announced that the Board had formed a special committee of independent directors (the "Special Committee") consisting of Ms. Carol Yu and Ms. Annabelle Yu Long to review and evaluate the Proposal, and the Special Committee had retained Goulston & Storrs PC as its United States legal counsel in connection with its review and evaluation of the Proposal. On July 29, 2020, the Company announced that the Special Committee had retained Duff & Phelps, LLC as its financial advisor in connection with its review and evaluation of the Proposal.

The Company cautions its shareholders and others considering trading in its securities that neither the Board nor the Special Committee has made any decision with respect to the Company’s response to the Proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

Outlook

For the fourth quarter of fiscal 2020, the Company expects to generate total net revenue in the range of $58.4 million to $61.8 million, representing year-over-year decline of approximately 15% to 10%, respectively.

For fiscal year 2020, the Company expects to generate total net revenue in the range of $202.4 million to $205.8 million, representing year-over-year decline of approximately 4.4% to 2.8%, respectively.

The above guidance reflects the Company’s current and preliminary view, which is subject to change, particularly in consideration of uncertainties related to the impact of COVID-19, including the postponement of certain professional examinations, the schedule of reopening of schools, and the schedule of resumption of provision of offline training courses, among others.

Conference Call

Management will hold a conference call at 8:00 a.m. Eastern Time on Thursday, August 27, 2020 (8:00 p.m. Beijing Time on Thursday, August 27, 2020) to discuss financial results and answer questions from investors and analysts. Details for the conference call are as follows:

Event Title:

China Distance Education Holdings Limited Third Quarter of Fiscal Year 2020 Earnings Conference Call

Conference ID:

9952634

Registration Link:

http://apac.directeventreg.com/registration/event/9952634

All participants must use the link provided above to complete the online registration process at least 20 minutes in advance of the conference call. Upon registering, each participant will receive a participant dial-in number, Direct Event passcode, and a unique registrant ID, which will be used to join the conference call.

A telephone replay will be available two hours after the call until September 3, 2020 by dialing:

US Toll Free:

+1-855-452-5696

International:

+61-2-8199-0299

Mainland China:

400-632-2162

Hong Kong, China:

800-963-117

United Kingdom:

0808-234-0072

Replay Passcode:

9952634

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

About China Distance Education Holdings Limited

China Distance Education Holdings Limited is a leading provider of online education and value-added services for professionals and corporate clients in China. The courses offered by the Company through its websites are designed to help professionals seeking to obtain and maintain professional licenses and to enhance their job skills through our professional development courses in China in the areas of accounting, healthcare, engineering & construction, legal and other industries. The Company also offers online test preparation courses for self-taught learners pursuing higher education diplomas or degrees, and practical accounting training courses for college students and working professionals. In addition, the Company provides business services to corporate clients, including but not limited to tax advisory and accounting outsourcing services. For further information, please visit http://ir.cdeledu.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are 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," "may," "should," "potential," "continue," "expect," "predict," "anticipate," "future," "intend," "plan," "believe," "is/are likely to," "estimate" and similar statements. Among other things, the outlook for the fourth quarter and full fiscal year 2020 and quotations from management in this announcement, as well as the Company’s strategic and operational plans (in particular, the impact of COVID-19 on our businesses; the solutions we adopt to address such impact of COVID-19; balancing growth and profitability; the growth prospects of online professional education in China; as well as the anticipated benefits of our strategic growth initiatives, including the promotion of the Company’s life-long learning ecosystem) contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic and annual reports to the SEC, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the impact of the COVID-19 outbreak, the potential impact of the Proposal and any transaction in connection with the Proposal, our goals and growth strategies; future prospects and market acceptance of our courses and other products and services; our future business development and results of operations; projected revenues, profits, earnings and other estimated financial information; projected enrollment numbers; our plans to expand and enhance our courses and other products and services; anticipated benefits of acquisition or disposal of businesses, competition in the education and test preparation markets; and Chinese laws, regulations and policies, including those applicable to the Internet, Internet content providers, the education and telecommunications industries, mergers and acquisitions, taxation and foreign exchange. In addition, with respect to the "going private" Proposal, there can be no assurance that the Buyer Group will make any definitive offer to the Company, that any definitive agreement relating to the Proposal will be entered into between the Company and the Buyer Group or that a transaction based on the Proposal or any other similar transaction will be approved or consummated.

Further information regarding these and other risks is included in the Company’s annual report on Form 20-F and other documents filed or furnished with the SEC. All information provided in this press release is as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Statement Regarding Unaudited Financial Information

The unaudited financial information set forth in this press release is preliminary and subject to adjustments. Adjustments to the financial statements may be identified when audit work is performed for the year-end audit, which could result in significant differences from this preliminary unaudited financial information.

Use of Non-GAAP Financial Measures

To supplement the Company’s consolidated financial results presented in accordance with U.S. generally accepted accounting principles, or GAAP, the Company uses the following measures defined as non-GAAP financial measures: non-GAAP net income attributable to CDEL, operating income, gross profit, cost of sales, selling expenses, general and administrative expenses, net income margin attributable to CDEL, operating margin, gross profit margin, and basic and diluted earnings per ADS and per share attributable to CDEL. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to comparable GAAP measures" set forth at the end of this release.

The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding share-based compensation expenses. However, non-GAAP financial measures may not be indicative of the Company’s operating performance from a cash perspective. The Company believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance and liquidity. The Company computes its non-GAAP financial measures using the same consistent method from quarter to quarter. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of excluding share-based compensation expenses from the above-mentioned line items and presenting these non-GAAP measures is that such items may continue to be for the foreseeable future a significant recurring expense in our business. Management compensates for this limitation by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying table at the end of this release provides more detail on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

Contacts:

In China:

China Distance Education Holdings Limited
Jiao Jiao
Tel: +86-10-8231-9999 ext. 1826
Email: IR@cdeledu.com

The Piacente Group, Inc. 
Xi Zhang 
Tel: +86-10-6508-0677
E-mail: dl@tpg-ir.com

In the United States: 

The Piacente Group, Inc.    
Brandi Piacente
Tel: +1 212-481-2050
Email: dl@tpg-ir.com

 

 

(Financial Tables on Following Pages)

 

 

China Distance Education Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

(in thousands of US Dollars, except number of shares and per share data)

September 30, 2019

June 30, 2020

Assets:

Current assets:

Cash and cash equivalents

67,977

83,927

Term deposits

–

4,954

Restricted cash

38,358

20,241

Short-term investments

22,118

24,550

Accounts receivable, net of allowance for doubtful accounts of US$1,648 and
US$1,282 as of June 30, 2020 and September 30, 2019, respectively

7,330

6,182

Inventories

4,232

5,713

Prepayment and other current assets

26,732

30,143

Amounts due from related parties

515

908

Deferred cost

1,427

2,104

   Total current assets

168,689

178,722

Non-current assets:

Property, plant and equipment, net

37,935

40,732

Operating lease right of use asset

–

30,074

Goodwill, net

74,829

75,704

Long term investments

25,379

25,572

Other intangible assets, net

30,113

24,318

Deposit for purchase of non-current assets

4,448

1,552

Deferred tax assets

3,865

3,713

Other non-current assets

10,092

7,579

   Total non-current assets

186,661

209,244

   Total assets

355,350

387,966

Liabilities and equity:

Current liabilities:

Bank borrowings

38,502

7,199

Accrued expenses and other liabilities (including accrued expenses and other
liabilities of the consolidated VIE without recourse to China Distance Education
Holdings Limited of US$47,280 and US$35,491 as of June 30, 2020 and September
30, 2019, respectively)

38,267

49,950

Amount due to related parties

600

687

Income tax payable (including income tax payable of the consolidated VIE without
recourse to China Distance Education Holdings Limited of US$6,942 and US$8,188
as of June 30, 2020 and September 30, 2019, respectively)

10,899

8,579

Deferred revenue, current portion (including deferred revenue of the consolidated
VIE without recourse to China Distance Education Holdings Limited of US$71,477
and US$93,364 as of June 30, 2020 and September 30, 2019, respectively)

94,202

72,253

Refundable fees – current portion (including refundable fees of the consolidated VIE
without recourse to China Distance Education Holdings Limited of US$24 and
US$435 as of June 30, 2020 and September 30, 2019, respectively)

435

24

Operating lease liability – current portion (including operating lease liability of the
consolidated VIE without recourse to China Distance Education Holdings Limited
of US$3,614 and nil as of June 30, 2020 and September 30, 2019, respectively)

–

3,967

   Total current liabilities

182,905

142,659

Non-current liabilities:

Deferred revenue, non-current portion (including deferred revenue of the
consolidated VIE without recourse to China Distance Education Holdings Limited
of US$80,430 and US$33,564 as of June 30, 2020 and September 30, 2019,
respectively)

33,564

80,430

Refundable fees – non-current portion (including refundable fees of the consolidated
VIE without recourse to China Distance Education Holdings Limited of US$3,944
and US$2,440 as of June 30, 2020 and September 30, 2019, respectively)

2,440

3,944

Long-term bank borrowing

–

16,000

Deferred tax liabilities

12,695

6,410

Operating lease liability – non-current portion (including operating lease liability of
the consolidated VIE without recourse to China Distance Education Holdings
Limited of US$24,536 and nil as of June 30, 2020 and September 30, 2019,
respectively)

–

24,927

Total non-current liabilities

48,699

131,711

   Total liabilities

231,604

274,370

 

Equity:

Ordinary shares (par value of US$0.0001 per share; 500,000,000 shares authorized; 
135,320,433 and 134,210,745 shares issued and outstanding at June 30, 2020 and
September 30, 2019, respectively)

13

14

Additional paid-in capital

24,507

26,629

Accumulated other comprehensive loss

(12,357)

(8,805)

Retained earnings

60,668

46,612

   Total China Distance Education Holdings Limited shareholder’s equity

72,831

64,450

Noncontrolling interests

50,915

49,146

   Total equity

123,746

113,596

   Total liabilities and equity

355,350

387,966

 

 

China Distance Education Holdings Limited

Unaudited Condensed Consolidated Statements Of Operations

(in thousands of US dollars, except number of shares, per share and per ADS data)

Three Months Ended June 30,

2019

2020

Sales, net of business tax, value-added tax and related surcharges:

Online education services

43,529

39,996

Books and reference materials

9,826

6,507

Others

8,392

4,211

–  Sale of learning simulation software

2,665

833

–  Business start-up training services

886

175

–  Others

4,841

3,203

   Total net revenues

61,747

50,714

Cost of sales

Cost of services and others

(20,836)

(19,767)

Cost of tangible goods sold

(9,735)

(6,882)

   Total cost of sales

(30,571)

(26,649)

Gross profit

31,176

24,065

Operating expenses

Selling expenses

(17,043)

(17,828)

General and administrative expenses

(4,947)

(5,383)

   Total operating expenses

(21,990)

(23,211)

Other operating income

665

1,607

Operating income 

9,851

2,461

Interest income

526

582

Interest expense

(703)

(216)

Gain from disposal of an investment

318

–

Exchange gain/(loss)

1,996

(243)

Income before income taxes

11,988

2,584

Income tax expense

(2,460)

(564)

Loss from equity method investments

(656)

(570)

Net income

8,872

1,450

Net loss attributable to noncontrolling interest

575

1,566

Net income attributable to China Distance Education Holdings Limited

9,447

3,016

 

Net income per share attributable to China Distance Education Holdings
Limited:

Net income attributable to China Distance Education Holdings Limited 
shareholders

Basic

0.070

0.022

Diluted

0.070

0.022

 

Net income per ADS attributable to China Distance Education Holdings
Limited:

Net income attributable to China Distance Education Holdings Limited 
shareholders

Basic

0.282

0.089

Diluted

0.281

0.088

Weighted average shares used in calculating net income per share
attributable to China Distance Education Holdings Limited:

Basic

133,037,866

134,005,063

Diluted

134,342,150

135,441,737

 

 

China Distance Education Holdings Limited

Unaudited Condensed Consolidated Statements Of Operations

 (in thousands of US dollars, except number of shares, per share and per ADS data)

Nine Months Ended June 30,

2019

2020

Sales, net of business tax, value-added tax and related surcharges:

Online education services

96,450

107,939

Books and reference materials

21,632

15,751

Others

25,049

20,322

–  Sale of learning simulation software

9,630

7,295

–  Business start-up training services

2,258

1,826

–  Others

13,161

11,201

   Total net revenues

143,131

144,012

Cost of sales

Cost of services and others

(62,461)

(57,938)

Cost of tangible goods sold

(16,997)

(14,840)

   Total cost of sales

(79,458)

(72,778)

Gross profit

63,673

71,234

Operating expenses

Selling expenses

(45,327)

(52,273)

General and administrative expenses

(17,855)

(17,016)

Total operating expenses

(63,182)

(69,289)

Change in fair value of contingent consideration payable

695

–

Other operating income

2,434

3,932

Operating income 

3,620

5,877

Interest income

1,714

1,952

Interest expense

(2,294)

(901)

Gain from disposal of an investment

318

–

Gain from deconsolidation of a subsidiary

6,869

–

Exchange loss

(104)

(1,154)

Income before income taxes

10,123

5,774

Income tax expense

(2,077)

(1,259)

Loss from equity method investments

(1,019)

(847)

Net income

7,027

3,668

Net loss attributable to noncontrolling interest

457

1,897

Net income attributable to China Distance Education Holdings Limited

7,484

5,565

 

Net income per share attributable to China Distance Education Holdings
Limited:

Net income attributable to China Distance Education Holdings Limited 
shareholders

Basic

0.056

0.041

Diluted

0.056

0.041

 

Net income per ADS attributable to China Distance Education Holdings
Limited:

Net income attributable to China Distance Education Holdings Limited 
shareholders

Basic

0.224

0.165

Diluted

0.223

0.165

Weighted average shares used in calculating net income per share
attributable to China Distance Education Holdings Limited:

Basic

132,946,829

133,808,589

Diluted

134,072,148

135,124,141

 

 

China Distance Education Holdings Limited

Reconciliations of non-GAAP measures to comparable GAAP measures

(In thousands of US Dollars, except number of shares, per share and per ADS data)

Three Months Ended June 30,

2019

2020

(Unaudited)

(Unaudited)

Cost of sales

30,571

26,649

Share-based compensation expense in cost of sales

–

45

Non-GAAP cost of sales

30,571

26,604

Selling expenses

17,043

17,828

Share-based compensation expense in selling expenses

–

19

Non-GAAP selling expenses

17,043

17,809

General and administrative expenses

4,947

5,383

Share-based compensation expense in general and administrative expenses

503

626

Non-GAAP general and administrative expenses

4,444

4,757

Gross profit

31,176

24,065

Share-based compensation expenses

–

45

Non-GAAP gross profit

31,176

24,110

Gross profit margin

50.5%

47.5%

Non-GAAP gross profit margin

50.5%

47.5%

Operating income

9,851

2,461

Share-based compensation expenses

503

690

Non-GAAP operating income

10,354

3,151

Operating margin

16.0%

4.9%

Non-GAAP operating margin

16.8%

6.2%

Net income attributable to CDEL

9,447

3,016

Share-based compensation expense

503

690

Non-GAAP net income attributable to CDEL

9,950

3,706

Net income margin attributable to CDEL

15.3%

5.9%

Non-GAAP net income margin attributable to CDEL

16.1%

7.3%

Net income per share attributable to CDEL—basic

0.070

0.022

Net income per share attributable to CDEL—diluted

0.070

0.022

Non-GAAP net income per share attributable to CDEL—basic

0.075

0.028

Non-GAAP net income per share attributable to CDEL—diluted

0.074

0.027

Net income per ADS attributable to China Distance Education Holdings Limited
      shareholders—basic (note 1)

0.282

0.089

Net income per ADS attributable to China Distance Education Holdings Limited
      shareholders—diluted (note 1)

0.281

0.088

Non-GAAP net income per ADS attributable to China Distance Education Holdings
      Limited shareholders—basic (note 1)

 

0.299

0.111

Non-GAAP net income per ADS attributable to China Distance Education Holdings
      Limited shareholders—diluted (note 1)

 

0.296

0.109

Weighted average shares used in calculating basic net income per share attributable
      to China Distance Education Holdings Limited

133,037,866

134,005,063

Weighted average shares used in calculating diluted net income per share
      attributable to China Distance Education Holdings Limited

134,342,150

135,441,737

Weighted average shares used in calculating basic non-GAAP net income per share
      attributable to China Distance Education Holdings Limited

133,037,866

134,005,063

Weighted average shares used in calculating diluted non-GAAP net income per share
      attributable to China Distance Education Holdings Limited

134,342,150

135,441,737

Note 1: Each ADS represents four ordinary shares

 

 

China Distance Education Holdings Limited

Reconciliations of non-GAAP measures to comparable GAAP measures

(In thousands of US Dollars, except number of shares, per share and per ADS data)

Nine Months Ended June 30,

2019

2020

(Unaudited)

(Unaudited)

Cost of sales

79,458

72,778

Share-based compensation expense in cost of sales

23

95

Non-GAAP cost of sales

79,435

72,683

Selling expenses

45,327

52,273

Share-based compensation expense in selling expenses

10

39

Non-GAAP selling expenses

45,317

52,234

General and administrative expenses

17,855

17,016

Share-based compensation expense in general and administrative expenses

1,482

1,795

Non-GAAP general and administrative expenses

16,373

15,221

Gross profit

63,673

71,234

Share-based compensation expenses

23

95

Non-GAAP gross profit

63,696

71,329

Gross profit margin

44.5%

49.5%

Non-GAAP gross profit margin

44.5%

49.5%

Operating income

3,620

5,877

Share-based compensation expenses

1,515

1,929

Non-GAAP operating income

5,135

7,806

Operating margin

2.5%

4.1%

Non-GAAP operating margin

3.6%

5.4%

Net income attributable to CDEL

7,484

5,565

Share-based compensation expense

1,515

1,929

Non-GAAP net income attributable to CDEL

8,999

7,494

Net income margin attributable to CDEL

5.2%

3.9%

Non-GAAP net income margin attributable to CDEL

6.3%

5.2%

Net income per share attributable to CDEL—basic

0.056

0.041

Net income per share attributable to CDEL—diluted

0.056

0.041

Non-GAAP net income per share attributable to CDEL—basic

0.068

0.056

Non-GAAP net income per share attributable to CDEL—diluted

0.067

0.055

Net income per ADS attributable to China Distance Education Holdings Limited
      shareholders—basic (note 1)

0.224

0.165

Net income per ADS attributable to China Distance Education Holdings Limited
      shareholders—diluted (note 1)

0.223

0.165

Non-GAAP net income per ADS attributable to China Distance Education Holdings
      Limited shareholders—basic (note 1)

 

0.271

0.224

Non-GAAP net income per ADS attributable to China Distance Education Holdings
      Limited shareholders—diluted (note 1)

 

0.269

0.222

Weighted average shares used in calculating basic net income per share attributable
      to China Distance Education Holdings Limited

132,946,829

133,808,589

Weighted average shares used in calculating diluted net income per share
      attributable to China Distance Education Holdings Limited

134,072,148

135,124,141

Weighted average shares used in calculating basic non-GAAP net income per share
      attributable to China Distance Education Holdings Limited

132,946,829

133,808,589

Weighted average shares used in calculating diluted non-GAAP net income per
      share attributable to China Distance Education Holdings Limited

134,072,148

135,124,141

 Note 1: Each ADS represents four ordinary shares

 

PR Newswire

Bitauto Announces Second Quarter 2020 Results

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BEIJING, Aug. 24, 2020 — Bitauto Holdings Limited ("Bitauto" or the "Company") (NYSE: BITA), a leading provider of internet content & marketing services, and transaction services for China’s automotive industry, today announced its unaudited financial results for the second quarter ended June 30, 2020[1].

Bitauto Second Quarter 2020 Highlights

  • Revenue in the second quarter of 2020 was RMB1.96 billion (US$276.9 million), compared to RMB2.79 billion (US$395.1 million) in the corresponding period in 2019.
  • Gross profit in the second quarter of 2020 was RMB1.30 billion (US$184.4 million), compared to RMB1.67 billion (US$236.9 million) in the corresponding period in 2019.
  • Net loss in the second quarter of 2020 was RMB536.4 million (US$75.9 million), compared to net loss of RMB136.2 million (US$19.3 million) in the corresponding period in 2019.
    Non-GAAP net loss in the second quarter of 2020 was RMB447.3 million (US$63.3 million), compared to Non-GAAP net income of RMB216.0 million (US$30.6 million) in the corresponding period in 2019.
  • Net loss attributable to Bitauto in the second quarter of 2020 was RMB368.8 million (US$52.2 million), compared to net loss attributable to Bitauto of RMB145.5 million (US$20.6 million) in the corresponding period in 2019.
    Non-GAAP net loss attributable to Bitauto in the second quarter of 2020 was RMB333.6 million (US$47.2 million), compared to Non-GAAP net income attributable to Bitauto of RMB155.3 million (US$22.0 million) in the corresponding period in 2019.

Mr. Andy Zhang, chief executive officer of Bitauto, said, "Despite China’s gradual economic recovery following the COVID-19 outbreak, the domestic automobile industry remained challenged during the second quarter of 2020 with sluggish retail passenger vehicle sales and rising dealer inventory levels. The macro situation presents both challenges and opportunities for our business."

"While weak vehicle sales and increasingly fierce competition in China’s online automobile advertising sector put pressure on our advertising business, Bitauto’s paying subscriber base increased slightly during the quarter, helping to drive mild revenue growth in our subscription business. In our transaction services business, due to its conservative risk control approach, Yixin recorded about 69,000 total transactions in the second quarter, representing a year-over-year decrease of approximately 49.9%."

"In the months ahead, in response to the uncertainties in China’s overall economic environment and particularly the automobile sector, we will stay focused on our core strategic initiatives. First, our continued efforts to upgrade our content and product offerings will provide better value to automobile customers, car owners, automakers and dealer customers. Second, we will further raise Bitauto’s brand recognition through our on-going strategic brand building campaign, which we expect will help further expand our user base and enhance user engagement. Third, Yixin will continue to optimize its conservative risk assessment methodology and strengthen its dealer and financial institution partnerships to explore opportunities as China’s automobile market recovers. We believe our efforts will help strengthen Bitauto’s position as the leading provider of Internet content and marketing services and transaction services for China’s automobile industry."

Mr. Ming Xu, chief financial officer of Bitauto, said, "The weakness in China’s automobile sector in the second quarter of 2020 continued to impact our top line results. We also continued to experience margin pressure this quarter due to our branding and marketing initiatives as well as our on-going investments in user acquisition. In the long run, we expect these efforts will form a solid foundation to attract users and enhance our value proposition for our business partners."

Bitauto Second Quarter 2020 Results 

Bitauto reported revenue of RMB1.96 billion (US$276.9 million) in the second quarter of 2020, compared to RMB2.79 billion (US$395.1 million) in the corresponding period in 2019.

  • Revenue from the advertising and subscription business in the second quarter of 2020 was RMB1.03 billion (US$145.5 million), representing a 2.2% increase from RMB1.01 billion (US$142.4 million) in the corresponding period in 2019.
  • Revenue from the transaction services business in the second quarter of 2020 was RMB737.6 million (US$104.4 million), compared to RMB1.49 billion (US$211.0 million) in the corresponding period in 2019, mainly due to weak passenger vehicle sales following the COVID-19 outbreak and more cautious underwriting standards imposed by Yixin.
  • Revenue from the digital marketing solutions business in the second quarter of 2020 was RMB190.3 million (US$26.9 million), compared to RMB294.7 million (US$41.7 million) in the corresponding period in 2019.

Cost of revenue in the second quarter of 2020 was RMB653.5 million (US$92.5 million), compared to RMB1.12 billion (US$158.2 million) in the corresponding period in 2019. Cost of revenue as a percentage of revenue in the second quarter of 2020 was 33.4%, compared to 40.0% in the corresponding period in 2019.

Gross profit in the second quarter of 2020 was RMB1.30 billion (US$184.4 million), compared to RMB1.67 billion (US$236.9 million) in the corresponding period in 2019.

Selling and administrative expenses in the second quarter of 2020 were RMB1.80 billion (US$255.1 million), representing a 10.1% increase from the corresponding period in 2019. This increase was primarily due to the increase in provision for credit losses of receivables related to Yixin and the increase in marketing expenses associated with the Company’s branding and marketing efforts, partially offset by the decrease in amortization of intangible assets related to the strategic cooperation with JD.com, and decrease in expenses related to personnel.

Product development expenses in the second quarter of 2020 were RMB147.2 million (US$20.8 million), representing a 3.7% increase from the corresponding period in 2019.

Share-based compensation, which was allocated to related operating expense line items, was RMB55.0 million (US$7.8 million) in the second quarter of 2020, compared to RMB99.9 million (US$14.1 million) in the corresponding period in 2019.

Loss from operations in the second quarter of 2020 was RMB670.0 million (US$94.8 million), compared to loss from operations of RMB48.9 million (US$6.9 million) in the corresponding period in 2019.

Non-GAAP loss from operations in the second quarter of 2020 was RMB594.3 million (US$84.1 million), compared to Non-GAAP income from operations of RMB215.4 million (US$30.5 million) in the corresponding period in 2019.

Income tax benefit in the second quarter of 2020 was RMB148.0 million (US$20.9 million), compared to income tax expense of RMB6.7 million (US$1.0 million) in the corresponding period in 2019.

Net loss in the second quarter of 2020 was RMB536.4 million (US$75.9 million), compared to net loss of RMB136.2 million (US$19.3 million) in the corresponding period in 2019.

Non-GAAP net loss in the second quarter of 2020 was RMB447.3 million (US$63.3 million), compared to Non-GAAP net income of RMB216.0 million (US$30.6 million) in the corresponding period in 2019.

Net loss attributable to Bitauto in the second quarter of 2020 was RMB368.8 million (US$52.2 million), compared to net loss attributable to Bitauto of RMB145.5 million (US$20.6 million) in the corresponding period in 2019.

Non-GAAP net loss attributable to Bitauto in the second quarter of 2020 was RMB333.6 million (US$47.2 million), compared to Non-GAAP net income attributable to Bitauto of RMB155.3 million (US$22.0 million) in the corresponding period in 2019.

Basic and diluted net loss per ADS, each representing one ordinary share, in the second quarter of 2020 amounted to RMB5.15 (US$0.73) and RMB5.15 (US$0.73), respectively.

Non-GAAP basic and diluted net loss per ADS in the second quarter of 2020 amounted to RMB4.65 (US$0.66) and RMB4.65 (US$0.66), respectively.

As of June 30, 2020, the Company had cash and cash equivalents and restricted cash of RMB8.61 billion (US$1.22 billion). Cash used in operating activities, cash provided by investing activities, and cash used in financing activities in the second quarter of 2020 were RMB830.5 million (US$117.5 million), RMB3.33 billion (US$471.4 million), and RMB2.19 billion (US$309.9 million), respectively.

The number of employees totaled 6,837 as of June 30, 2020, including employees of entities in which Bitauto has acquired and holds controlling interests as of such date. This represented an 18.6% year-over-year decrease, as Yixin optimized its team to improve operational efficiency.

As of June 30, 2020, the Company had a total of 73,761,089 ordinary shares. Non-GAAP basic and diluted per ADS figures for the second quarter of 2020 were calculated using a weighted average of 71,796,549 and 71,796,549 ADSs, respectively. Each ADS represents one ordinary share of the Company.

Yixin Second Quarter 2020 Highlights

Bitauto’s controlled subsidiary Yixin, the primary operator of the Company’s transaction services business, facilitated approximately 69,000 financed transactions for the three months ended June 30, 2020, representing a year-over-year decrease of approximately 49.9%. The decrease was primarily driven by Yixin’s more conservative risk control methodology. The total aggregate financing amount facilitated through Yixin’s loan facilitation services and self-operated financing business was approximately RMB5.38 billion (US$761.3 million).

Amid the challenging macroeconomic environment, Yixin continued to adopt conservative risk control methodology and to focus on its loan facilitation services. For the three months ended June 30, 2020, Yixin facilitated approximately 53,000 financed transactions, representing a year-over-year decrease of 20.8% and approximately 76.9% of Yixin’s total financed transactions.

In the second quarter of 2020, under U.S. GAAP, Yixin’s total revenues were RMB745.2 million (US$105.5 million), representing a year-over-year decrease of 50.3%; new core services revenues, which include revenues from loan facilitation transactions and new self-operated financing lease transactions facilitated by Yixin during the period, were RMB254.7 million (US$36.0 million), representing a year-over-year decrease of 56.8%.

As of June 30, 2020, 90+ days (including 180+ days) past due ratio and 180+ days past due ratio for all financed transactions (including third-party loan facilitations) were 2.46% and 1.40%, respectively.

Under U.S. GAAP, Yixin’s provision for credit losses of finance receivables in the second quarter of 2020 was RMB321.4 million (US$45.5 million).

As Bitauto’s controlled subsidiary listed on the Hong Kong Stock Exchange, Yixin announced its consolidated financial statements under IFRS for the first half of 2020. In order to help investors to understand the difference between IFRS and U.S. GAAP for Yixin’s operation results, a reconciliation of the IFRS data to U.S. GAAP is presented at the end of this earnings release.

Changes to Board of Directors

Bitauto today also announced the appointment of Mr. Chenkai Ling, Vice President of JD.com Inc. ("JD.com") as a director to its board of directors ("the board"). Mr. Ling replaces Mr. Sidney Huang as JD.com’s designated director on Bitauto’s board due to Mr. Huang’s upcoming retirement from JD.com in September 2020. The appointment and the resignation became effective as of August 21, 2020.

"We are delighted to welcome Mr. Chenkai Ling to Bitauto’s board and we look forward to drawing on his experience and knowledge as we execute on our long-term growth strategy," Mr. Andy Zhang said. "We would also like to sincerely thank Mr. Sidney Huang for his service and dedication to Bitauto’s board of directors. Over the past 10 years, Sidney has consistently drawn upon his deep knowledge of China’s e-commerce and internet industries as well as his experience as a corporate leader to make invaluable contributions to Bitauto. We wish him all the best in his upcoming retirement."

Mr. Chenkai Ling is vice president of JD.com, head of strategy and the chief of staff to the CEO of JD Retail. He joined JD.com in July 2016. He is responsible for JD Retail’s strategic planning, M&A and post-merger integration, as well as public affairs. Mr. Ling has almost two decades of experience in strategic planning, consultancy and operations, having worked for multinational companies in various roles. Prior to joining JD.com, he worked at Bain & Company as a principal. Mr. Ling earned his master’s degree in Business Administration from the Amos Tuck School of Business Administration at Dartmouth College and his MIS from Tongji University.

Conference Call Information 

Bitauto’s management will hold an earnings conference call at 8:15 AM on August 24, 2020 U.S. Eastern Time (8:15 PM on August 24, 2020 Beijing/Hong Kong Time).

Conference Call Pre-registration:

Please register in advance of the conference using the link provided below and dial in 10 minutes prior to the call. Once pre-registration has been completed, participants will receive dial-in numbers, direct event passcode, and registrant ID.

To join the conference, simply dial the number you receive, enter the event passcode followed by your unique registrant ID, and you will join the conference instantly.

PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/9674115

A replay of the conference call may be accessed by phone at the following number until September 1, 2020:

US:

+1-855-452-5696 or +1-646-254-3697

International:

+61-2-8199-0299

Conference ID:

9674115

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

[1] This announcement contains translations of certain amounts in Renminbi into U.S. dollars at specified rates solely for the convenience of the readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars are made at a rate of RMB7.0651 to US$1.00, the effective noon buying rate as of June 30, 2020 in The City of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York. 

About Bitauto Holdings Limited

Bitauto Holdings Limited (NYSE: BITA) is a leading provider of internet content & marketing services, and transaction services for China’s automotive industry. Bitauto’s business consists of three segments: advertising and subscription business, transaction services business and digital marketing solutions business.

Bitauto’s advertising and subscription business provides a variety of advertising services to automakers through the bitauto.com website and corresponding mobile apps which provide consumers with up-to-date automobile pricing and promotional information, specifications, reviews and consumer feedback. Bitauto also provides transaction-focused online advertisements and services for promotional activities to its business partners, including automakers, automobile dealers, auto finance partners and insurance companies. Bitauto offers subscription services via its SaaS platform, which provides web-based and mobile-based integrated digital marketing solutions to new car automobile dealers in China. The SaaS platform enables automobile dealer subscribers to create their own online showrooms, list pricing and promotional information, provide automobile dealer contact information, place advertisements and manage customer relationships to help them reach a broad set of purchase-minded customers and effectively market their automobiles to consumers online.

Bitauto’s transaction services business is primarily conducted by its controlled subsidiary, Yixin Group Limited (SEHK: 2858), a leading online automobile finance transaction platform in China, which provides transaction platform services as well as self-operated financing services.

Bitauto’s digital marketing solutions business provides automakers with one-stop digital marketing solutions, including website creation and maintenance, online public relations, online marketing campaigns, advertising agent services, big data applications and digital image creation.

For more information, please visit ir.bitauto.com.

Safe Harbor Statement 

This announcement contains forward-looking statements. These statements are 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. Among other things, the business outlook of the Company and the quotations from management in this announcement, as well as Bitauto’s strategic and operational plans, contain forward-looking statements. Bitauto may also make written or oral forward-looking statements in its periodic reports 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. Statements that are not historical facts, including statements about Bitauto’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and strategies; our future business development, financial condition and results of operations; the expected growth of the automobile industry and the internet marketing industry in China; our expectations regarding demand for and market acceptance of our services and service delivery model; our expectations regarding enhancing our brand recognition; our expectations regarding keeping and strengthening our relationships with major customers, partner websites and media vendors; relevant government policies and regulations relating to our businesses, automobile purchases and ownership in China; our ability to attract and retain quality employees; our ability to stay abreast of market trends and technological advances; competition in our industry in China and internationally; general economic and business conditions in China; and our ability to effectively protect our intellectual property rights and not infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Bitauto’s filings with the Securities and Exchange Commission, including its annual report on Form 20-F. Bitauto does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and Bitauto undertakes no duty to update such information, except as required under applicable law.

Use of Non-GAAP Financial Measures 

To supplement Bitauto’s consolidated financial results presented in accordance with U.S. GAAP, Bitauto uses Non-GAAP income/(loss) from operations, Non-GAAP net income/(loss), Non-GAAP net income/(loss) attributable to Bitauto and Non-GAAP basic and diluted net income/(loss) per ADS as Non-GAAP financial measures , and uses Yixin’s Non-GAAP income/(loss) from operations and Yixin’s Non-GAAP net income/(loss) as Non-GAAP financial measures to supplement the disclosure of financial performance of Yixin. Non-GAAP income/(loss) from operations is defined as income/(loss) from operations excluding (i) share-based compensation; and (ii) amortization of intangible assets resulting from asset and business acquisitions. Non-GAAP net income/(loss) and Non-GAAP net income/(loss) attributable to Bitauto, respectively, are defined as net income/(loss) and net income/(loss) attributable to Bitauto excluding (i) share-based compensation; (ii) amortization of intangible assets resulting from asset and business acquisitions; (iii) investment loss/(income) associated with the share of equity method investments; (iv) investment loss/(income) associated with non-cash investment matters; (v) amortization of the BCF discount on the convertible notes; and (vi) tax effect of Non-GAAP line items. Non-GAAP basic and diluted net income/(loss) per ADS is defined as Non-GAAP net income/(loss) attributable to ordinary shareholders of the parent company divided by basic and diluted weighted average number of ADS. Yixin’s Non-GAAP income/(loss) from operations is defined as income/(loss) from operations excluding (i) share-based compensation; and (ii) amortization of intangible assets resulting from asset and business acquisitions. Yixin’s Non-GAAP net income/(loss) is defined as net income/(loss) excluding (i) share-based compensation; (ii) amortization of intangible assets resulting from asset and business acquisitions; and (iii) tax effect of Non-GAAP line items. These Non-GAAP financial measures provide Bitauto’s management with the ability to assess its operating results by excluding certain items that may not be indicative of the performance of its business such as non-cash and non-recurring items. Bitauto believes these Non-GAAP financial measures are useful to investors by understanding supplemental information used by management in its assessment of operating results.

The use of Non-GAAP financial measures has certain limitations. These Non-GAAP measures exclude certain items that have been and will continue to be incurred in the future and are not reflected in the presentation of the Non-GAAP financial measures. These Non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, and should not be considered a substitute for or superior to U.S. GAAP results. In addition, these Non-GAAP financial measures may not be comparable to similarly titled measures utilized by other companies since such other companies may not calculate such measures in the same manner as Bitauto or Yixin does.

Reconciliation of these Non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure is set forth at the end of this release.

For investor and media inquiries, please contact: 
China

Suki Li
Bitauto Holdings Limited
Phone: +86-10-6849-2145
ir@bitauto.com

Philip Lisio
Foote Group
Phone: +86-10-8429-9544
bitauto@thefootegroup.com

 

 

 

SELECTED CONSOLIDATED FINANCIAL DATA

Unaudited Condensed Consolidated Statements of Operations

For the Three Months Ended

For the Six Months Ended

June 30, 2019

June 30, 2020

June 30, 2020

RMB

RMB

RMB

(in thousands, except for per share data)

(in thousands, except for per share data)

Revenue 

2,791,586

1,956,260

3,694,477

Cost of revenue

(1,117,951)

(653,468)

(1,282,566)

Gross profit

1,673,635

1,302,792

2,411,911

Selling and administrative expenses

(1,637,159)

(1,802,355)

(4,255,383)

Product development expenses

(142,052)

(147,245)

(294,219)

Other gains/(losses), net

56,703

(23,237)

(70,959)

Loss from operations

(48,873)

(670,045)

(2,208,650)

Interest income

38,627

23,565

49,777

Interest expense

(90,487)

(9,955)

(15,703)

Share of results of equity investees

(21,328)

(18,938)

(32,812)

Investment loss

(7,384)

(9,000)

(7,604)

Loss before tax

(129,445)

(684,373)

(2,214,992)

Income tax (expense)/benefit

(6,740)

147,969

399,948

Net loss

(136,185)

(536,404)

(1,815,044)

Net income/(loss) attributable to noncontrolling interests

1,710

(175,784)

(630,526)

Accretion to redeemable noncontrolling interests

7,586

8,204

16,408

Net loss attributable to Bitauto Holdings Limited

(145,481)

(368,824)

(1,200,926)

Non-GAAP financial data

Non-GAAP net income/(loss)

216,044

(447,329)

(1,485,260)

Non-GAAP net income/(loss) attributable to noncontrolling interests

53,110

(121,966)

(524,603)

Accretion to redeemable noncontrolling interests

7,586

8,204

16,408

Non-GAAP net income/(loss) attributable to Bitauto Holdings Limited

155,348

(333,567)

(977,065)

Reconciliation of GAAP to Non-GAAP results

For the Three Months Ended

For the Six Months Ended

June 30, 2019

June 30, 2020

June 30, 2020

RMB

RMB

RMB

(in thousands, except for per share data)

(in thousands, except for per share data)

Loss from operations

(48,873)

(670,045)

(2,208,650)

Share-based compensation

99,881

54,957

133,108

Amortization of intangible assets resulting from asset and business acquisitions

164,390

20,783

185,039

Non-GAAP income/(loss) from operations

215,398

(594,305)

(1,890,503)

Net loss

(136,185)

(536,404)

(1,815,044)

Share-based compensation

99,881

54,957

133,108

Amortization of intangible assets resulting from asset and business acquisitions

164,390

20,783

185,039

Investment loss associated with the share of equity method investments

1,541

5,969

5,905

Investment loss associated with non-cash investment matters

7,384

9,000

9,000

Amortization of the BCF discount on the convertible notes

80,701

–

–

Tax effect of Non-GAAP line items

(1,668)

(1,634)

(3,268)

Non-GAAP net income/(loss)

216,044

(447,329)

(1,485,260)

Non-GAAP net income/(loss) per ADS

Basic

2.17

(4.65)

(13.62)

Diluted

2.12

(4.65)

(13.62)

 

 

SELECTED CONSOLIDATED FINANCIAL DATA

Unaudited Condensed Consolidated Balance Sheets

December 31, 2019

June 30, 2020

RMB

RMB

(in thousands)

Assets

Current assets

  Cash and cash equivalents

4,260,533

4,963,823

  Restricted cash

3,136,926

3,467,575

  Accounts receivable, net

3,792,641

3,881,598

  Uncollateralized finance receivables – current portion, net

4,451,575

2,932,424

  Collateralized finance receivables – current portion, net

12,301,329

8,950,691

  Other current assets

2,720,558

2,936,796

30,663,562

27,132,907

Non-current assets

  Restricted cash

114,318

181,858

  Investments in equity investees

1,912,803

1,881,535

  Investment in convertible notes

2,153,790

2,185,682

  Property, plant and equipment, net

205,394

618,559

  Intangible assets, net

381,749

189,679

  Goodwill

861,583

861,609

  Uncollateralized finance receivables – non-current portion, net

2,906,280

1,838,716

  Collateralized finance receivables – non-current portion, net

7,330,610

3,941,436

  Other non-current assets

1,846,955

1,901,850

17,713,482

13,600,924

Total assets

48,377,044

40,733,831

Liabilities

Current liabilities

  Short term borrowings

10,860,862

9,256,192

  Asset-backed securitization debt

6,201,021

3,884,712

  Accounts payable

3,081,405

3,247,919

  Other current liabilities

3,499,449

3,438,106

23,642,737

19,826,929

Non-current liabilities

  Long term borrowings

2,263,614

1,088,815

  Asset-backed securitization debt

1,167,910

466,487

  Other non-current liabilities

1,546,562

1,492,226

4,978,086

3,047,528

Total liabilities

28,620,823

22,874,457

Redeemable noncontrolling interests

390,437

406,845

Total equity *

19,365,784

17,452,529

Total liabilities, redeemable noncontrolling interests
and equity 

48,377,044

40,733,831

* The Company has adopted ASU No. 2016-13 Financial Instruments – Credit Losses ("ASC 326") beginning January 1, 2020
by applying the modified retrospective method with the cumulative effect of initially applying the guidance recognized at the
date of initial application. The new guidance would mainly have impact on credit losses in connection with finance receivables,
accounts receivables, and guarantee liabilities. The cumulative effect on the opening balance of accumulated deficit upon
adoption of ASC 326 is RMB267.4 million.

 

 

Yixin

Unaudited Condensed Consolidated Statements of Operations

(in thousands)

For the Six Months Ended

June 30, 2020

June 30, 2020

June 30, 2020

RMB

RMB

RMB

IFRS

Reconcilation

U.S. GAAP

Revenue 

1,623,834

(16,640)

1,607,194

Cost of revenue

(888,734)

–

(888,734)

Gross profit

735,100

(16,640)

718,460

Selling and administrative expenses

(2,114,153)

53,259

(2,060,894)

Product development expenses

(82,023)

(85)

(82,108)

Other gains/(losses), net

88,772

(122,486)

(33,714)

Loss from operations

(1,372,304)

(85,952)

(1,458,256)

Interest income

15,004

–

15,004

Interest expense

(17,902)

624

(17,278)

Share of results of equity investees

(833)

–

(833)

Loss before tax

(1,376,035)

(85,328)

(1,461,363)

Income tax benefit

323,123

21,707

344,830

Net loss

(1,052,912)

(63,621)

(1,116,533)

Reconciliation of GAAP to Non-GAAP results

For the Six Months Ended

June 30, 2020

June 30, 2020

June 30, 2020

RMB

RMB

RMB

IFRS

Reconcilation

U.S. GAAP

Loss from operations

(1,372,304)

(85,952)

(1,458,256)

Share-based compensation

63,409

–

63,409

Amortization of intangible assets resulting from asset and business acquisitions

119,041

(1,755)

117,286

Non-GAAP loss from operations

(1,189,854)

(87,707)

(1,277,561)

Net loss

(1,052,912)

(63,621)

(1,116,533)

Share-based compensation

63,409

–

63,409

Amortization of intangible assets resulting from asset and business acquisitions

119,041

(1,755)

117,286

Tax effect of Non-GAAP line items

(83)

–

(83)

Non-GAAP net loss

(870,545)

(65,376)

(935,921)

 

 

Related Links :

http://ir.bitauto.com/

PR Newswire

Tuniu to Report Second Quarter 2020 Financial Results on August 28, 2020

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NANJING, China, Aug. 21, 2020 — Tuniu Corporation (NASDAQ: TOUR) ("Tuniu" or the "Company"), a leading online leisure travel company in China, today announced that it plans to release its unaudited financial results for the second quarter ended June 30, 2020, before the market opens on August 28, 2020.

Tuniu’s management will hold an earnings conference call at 8:00 am U.S. Eastern Time on August 28, 2020 (8:00 pm Beijing/Hong Kong Time on August 28, 2020).

Listeners may access the call by dialing the following numbers:

US

+1-888-346-8982

Hong Kong

+852-301-84992

Mainland China

4001-201203

International

+1-412-902-4272

Conference ID:

Tuniu 2Q 2020 Earnings Call 

A telephone replay will be available one hour after the end of the conference call through September 3, 2020. The dial-in details are as follows:

US

+1-877-344-7529

International

+1-412-317-0088

Replay Access Code:

10147497

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

About Tuniu Corporation

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.

Related Links :

https://www.tuniu.com/

PR Newswire

500.com Limited to Report Second Quarter 2020 Financial Results on August 28, 2020

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SHENZHEN, China, Aug. 20, 2020 — 500.com Limited (NYSE: WBAI) ("500.com" or the "Company"), an online sports lottery service provider in China, today announced that it plans to release its financial results for the second quarter ended June 30, 2020 after the close of U.S. markets on Friday, August 28, 2020.

About 500.com Limited

500.com Limited (NYSE: WBAI) is an online sports lottery service provider in China. The Company offers a comprehensive and integrated suite of online lottery services, information, user tools and virtual community venues to its users. 500.com was among the first companies to provide online lottery services in China, and is one of two entities that have been approved by the Ministry of Finance to provide online lottery sales services on behalf of the China Sports Lottery Administration Center, which is the government authority that is in charge of the issuance and sale of sports lottery products in China.

Safe Harbor Statements

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in 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," "target," "going forward," "outlook" and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance or achievements to differ materially from those in the forward-looking statements. 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. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

For more information, please contact:

500.com Limited
ir@500wan.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

Related Links :

http://ir.500.com/

PR Newswire

Vipshop Reports Unaudited Second Quarter 2020 Financial Results

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Conference Call to Be Held at 7:30 A.M. U.S. Eastern Time on August 19, 2020

GUANGZHOU, China, Aug. 19, 2020 — Vipshop Holdings Limited (NYSE: VIPS), a leading online discount retailer for brands in China ("Vipshop" or the "Company"), today announced its unaudited financial results for the second quarter ended June 30, 2020.

Second Quarter 2020 Highlights

  • Total net revenue for the second quarter of 2020 increased by 6.0% year over year to RMB24.1 billion (US$3.4 billion) from RMB22.7 billion in the prior year period.
  • GMV[1] for the second quarter of 2020 increased by 9% year over year to RMB38.4 billion from RMB35.1 billion in the prior year period.
  • Gross profit for the second quarter of 2020 was RMB4.9 billion (US$699.2 million), as compared with RMB5.1 billion in the prior year period.
  • Net income attributable to Vipshop’s shareholders for the second quarter of 2020 increased by 88.9% year over year to RMB1.5 billion (US$217.5 million) from RMB813.5 million in the prior year period.
  • Non-GAAP net income attributable to Vipshop’s shareholders[2] for the second quarter of 2020 increased by 24.3% year over year to RMB1.3 billion (US$186.9 million) from RMB1.1 billion in the prior year period.
  • The number of active customers[3] for the second quarter of 2020 increased by 17% year over year to 38.8 million from 33.1 million in the prior year period.
  • Total orders[4] for the second quarter of 2020 increased by 15% year over year to 170.5 million from 147.8 million in the prior year period.

Mr. Eric Shen, Chairman and Chief Executive Officer of Vipshop, stated, "We are delighted to have delivered solid financial and operational results in the second quarter of 2020, driven by our strong merchandising capability. In particular, our number of active customers during the quarter increased by 17% year over year to 38.8 million from 33.1 million in the same period last year. We have seen strong recovery in demand for apparel since early May and ran a successful promotional campaign in June after daily life in China has returned to normal. Looking ahead, we will continue to focus on enhancing our product offerings, working more effectively with our suppliers to provide our customers with top-notch apparel assortments. We believe that we are well positioned to continue to gain market share in China’s discount retail segment."

Mr. Donghao Yang, Chief Financial Officer of Vipshop, further commented, "We finished the second quarter of 2020 with healthy topline growth and improved year-over-year net margin attributable to Vipshop’s shareholders. During the quarter, repeat customers as a percentage of total active customers increased to 90% from 87% in the prior year period, representing a meaningful enhancement in our customer stickiness. These successes were made possible by our team’s solid execution in optimizing our product assortment to meet our customers’ needs. Looking ahead, we will continue to execute on our merchandising strategy, aiming to deliver strong topline growth balanced with solid profitability."

Second Quarter 2020 Financial Results

REVENUE

Total net revenue for the second quarter of 2020 increased by 6.0% year over year to RMB24.1 billion (US$3.4 billion) from RMB22.7 billion in the prior year period, primarily driven by the growth in the number of total active customers.

GROSS PROFIT

Gross profit for the second quarter of 2020 was RMB4.9 billion (US$699.2 million), as compared with 5.1 billion in the prior year period. Gross margin for the second quarter of 2020 was 20.5%, as compared with 22.4% in the prior year period, primarily attributable to the Company’s strategy to reinvest into discounts and coupons during this year’s June promotional event.

OPERATING EXPENSES

Total operating expenses for the second quarter of 2020 decreased to RMB3.8 billion (US$540.0 million) from RMB4.2 billion in the prior year period. As a percentage of total net revenue, total operating expenses for the second quarter of 2020 decreased to 15.8% from 18.5% in the prior year period.

  • Fulfillment expenses for the second quarter of 2020 decreased to RMB1.7 billion (US$237.3 million) from RMB2.2 billion in the prior year period. As a percentage of total net revenue, fulfillment expenses for the second quarter of 2020 decreased to 7.0% from 9.7% in the prior year period, primarily attributable to the change in fulfillment logistic arrangement.
  • Marketing expenses for the second quarter of 2020 were RMB1.0 billion (US$145.6 million), as compared with RMB877.6 million in the prior year period. As a percentage of total net revenue, marketing expenses for the second quarter of 2020 were 4.3%, as compared with 3.9% in the prior year period.
  • Technology and content expenses for the second quarter of 2020 decreased to RMB305.4 million (US$43.2 million) from RMB422.3 million in the prior year period. As a percentage of total net revenue, technology and content expenses for the second quarter of 2020 decreased to 1.3% from 1.9% in the prior year period.
  • General and administrative expenses for the second quarter of 2020 were RMB804.6 million (US$113.9 million), as compared with RMB706.3 million in the prior year period. As a percentage of total net revenue, general and administrative expenses for the second quarter of 2020 were 3.3%, as compared with 3.1% in the prior year period.

INCOME FROM OPERATIONS

Income from operations for the second quarter of 2020 increased by 28.4% year over year to RMB1.2 billion (US$175.5 million) from RMB965.4 million in the prior year period. Operating margin for the second quarter of 2020 increased to 5.1% from 4.2% in the prior year period.

Non-GAAP income from operations[5] for the second quarter of 2020, which excluded share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, increased by 27.1% year over year to RMB1.5 billion (US$211.4 million) from RMB1.2 billion in the prior year period. Non-GAAP operating income margin[6] for the second quarter of 2020 increased to 6.2% from 5.2% in the prior year period.

NET INCOME

Net income attributable to Vipshop’s shareholders for the second quarter of 2020 increased by 88.9% year over year to RMB1.5 billion (US$217.5 million) from RMB813.5 million in the prior year period. Net margin attributable to Vipshop’s shareholders for the second quarter of 2020 increased to 6.4% from 3.6% in the prior year period. Net income attributable to Vipshop’s shareholders per diluted ADS[7] for the second quarter of 2020 increased to RMB2.24 (US$0.32) from RMB1.21 in the prior year period.

Non-GAAP net income attributable to Vipshop’s shareholders for the second quarter of 2020, which excluded (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from business acquisitions, (iii) tax effect of amortization of intangible assets resulting from business acquisitions, (iv) investment gain and revaluation of investments excluding dividends, (v) tax effect of investment gain and revaluation of investments excluding dividends, and (vi) share of loss in investment of limited partnership that is accounted for as an equity method investee, increased by 24.3% year over year to RMB1.3 billion (US$186.9 million) from RMB1.1 billion in the prior year period. Non-GAAP net margin attributable to Vipshop’s shareholders[8] for the second quarter of 2020 increased to 5.5% from 4.7% in the prior year period. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS[9] for the second quarter of 2020 increased to RMB1.92 (US$0.27) from RMB1.58 in the prior year period.

For the quarter ended June 30, 2020, the Company’s weighted average number of ADSs used in computing diluted income per ADS was 686,613,335.

BALANCE SHEET AND CASH FLOW

As of June 30, 2020, the Company had cash and cash equivalents and restricted cash of RMB8.1 billion (US$1.1 billion) and short term investments of RMB5.9 billion (US$840.7 million).

For the quarter ended June 30, 2020, net cash from operating activities was RMB5.1 billion (US$720.3 million), and free cash flow[10], a non-GAAP measurement of liquidity, was as follows:

For the three months ended

Jun 30, 2019

RMB’000

Jun 30, 2020

RMB’000

Jun 30, 2020

US$’000

Net cash from operating activities

3,438,809

5,088,869

720,283

Add: Net impact from Internet financing
activities[11]

(1,254,977)

(311,652)

(44,111)

Less: Capital expenditures

(936,124)

(452,630)

(64,066)

Free cash inflow

1,247,708

4,324,587

612,106

For the trailing twelve months ended

Jun 30, 2019

RMB’000

Jun 30, 2020

RMB’000

Jun 30, 2020

US$’000

Net cash from operating activities

10,207,552

11,549,627

1,634,744

Add: Net impact from Internet financing
activities[11]

(1,829,324)

(4,027,419)

(570,044)

Less: Capital expenditures

(3,954,839)

(3,375,199)

(477,728)

Free cash inflow

4,423,389

4,147,009

586,972

Recent Development

Mr. Donghao Yang will step down from the Company’s Chief Financial Officer position for personal reasons in November 2020, and the Company’s Board of Directors has appointed Mr. Yang as a new Non-Executive Director, effective simultaneously with the change of his position. Mr. Yang has served as the Company’s Chief Financial Officer since 2011 and made significant contributions to the Company’s growth and transformation from a privately held company into a publicly listed company with effective internal control and compliance systems in the past nine years. The Company has already commenced a search process for a new Chief Financial Officer. 

Business Outlook

For the third quarter of 2020, the Company expects its total net revenue to be between RMB20.6 billion and RMB21.6 billion, representing a year-over-year growth rate of approximately 5% to 10%. These forecasts reflect the Company’s current and preliminary view on the market and operational conditions, which is subject to change.

Exchange Rate

The Company’s business is primarily conducted in China and the significant majority of revenues generated are denominated in Renminbi. This announcement contains currency conversions of Renminbi amounts into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars are made at a rate of RMB7.0651 to US$1.00, the effective noon buying rate on June 30, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is made that the Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollars at that rate on June 30, 2020, or at any other rate.

Conference Call Information

The Company will hold a conference call on Wednesday, August 19, 2020 at 7:30 am Eastern Time or 7:30 pm Beijing Time to discuss its financial results and operating performance for the second quarter of 2020.

All participants wishing to join the conference call must pre-register online using the link provided below. Once pre-registration has been complete, participants will receive dial-in numbers, a passcode, and a unique registrant ID. To join the conference, simply dial the number in the calendar invite you receive after pre-registration, enter the passcode followed by your PIN, and you will join the conference instantly.

Conference ID

#2094639

Registration Link

http://apac.directeventreg.com/registration/event/2094639

The replay will be accessible through August 27, 2020 by dialing the following numbers:

United States Toll Free:

+1-855-452-5696

International:

+61-2-8199-0299

Conference ID:

#2094639

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.vip.com.

About Vipshop Holdings Limited

Vipshop Holdings Limited is a leading online discount retailer for brands in China. Vipshop offers high quality and popular branded products to consumers throughout China at a significant discount to retail prices. Since it was founded in August 2008, the Company has rapidly built a sizeable and growing base of customers and brand partners. For more information, please visit www.vip.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are 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" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Vipshop’s strategic and operational plans, contain forward-looking statements. Vipshop 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. Statements that are not historical facts, including statements about Vipshop’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Vipshop’s goals and strategies; Vipshop’s future business development, results of operations and financial condition; the expected growth of the online discount retail market in China; Vipshop’s ability to attract customers and brand partners and further enhance its brand recognition; Vipshop’s expectations regarding demand for and market acceptance of flash sales products and services; competition in the discount retail industry; the potential impact of the COVID-19 to Vipshop’s business operations and the economy in China and elsewhere generally; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Vipshop’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Vipshop does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Use of Non-GAAP Financial Measures

The condensed consolidated financial information is derived from the Company’s unaudited interim condensed consolidated financial statements prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that comparative consolidated statements of income and cash flows for the period presented and detailed footnote disclosures required by Accounting Standards Codification 270, Interim Reporting ("ASC270"), have been omitted. Vipshop uses non-GAAP net income attributable to Vipshop’s shareholders, non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS, non-GAAP income from operations, non-GAAP operating income margin, non-GAAP net margin attributable to Vipshop’s shareholders, and free cash flow, each of which is a non-GAAP financial measure. Non-GAAP net income attributable to Vipshop’s shareholders is net income attributable to Vipshop’s shareholders excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from business acquisitions, (iii) tax effect of amortization of intangible assets resulting from business acquisitions, (iv) investment gain and revaluation of investments excluding dividends, (v) tax effect of investment gain and revaluation of investments excluding dividends, and (vi) share of loss in investment of limited partnership that is accounted for as an equity method investee. Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS is computed using non-GAAP net income attributable to Vipshop’s shareholders divided by weighted average number of diluted ADS outstanding for computing diluted earnings per ADS. Non-GAAP income from operations is income from operations excluding share-based compensation expenses and amortization of intangible assets resulting from business acquisitions. Non-GAAP operating income margin is non-GAAP income from operations as a percentage of total net revenue. Non-GAAP net margin attributable to Vipshop’s shareholders is non-GAAP net income attributable to Vipshop’s shareholders as a percentage of total net revenue. Free cash flow is net cash from operating activities adding back the impact from Internet financing activities and less capital expenditures, which include purchase and deposits of property and equipment and land use rights, and purchase of other assets. Impact from Internet financing activities added back or deducted from free cash flow contains changes in the balances of financial products, which are primarily consumer financing and supplier financing that the Company provides to customers and suppliers. The Company believes that separate analysis and exclusion of the non-cash impact of (a) share-based compensation, (b) amortization of intangible assets resulting from business acquisitions, (c) investment gain and revaluation of investments excluding dividends, and (d) share of loss in investment of limited partnership that is accounted for as an equity method investee adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses these non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of (1) non-cash share-based compensation expenses, (2) amortization of intangible assets resulting from business acquisitions, (3) investment gain and revaluation of investments excluding dividends, and (4) share of loss in investment of limited partnership that is accounted for as an equity method investee. Free cash flow enables the Company to assess liquidity and cash flow, taking into account the impact from Internet financing activities and the financial resources needed for the expansion of fulfillment infrastructure and technology platform. Share-based compensation expenses and amortization of intangible assets have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. One of the key limitations of free cash flow is that it does not represent the residual cash flow available for discretionary expenditures.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Vipshop Holdings Limited Reconciliations of GAAP and Non-GAAP Results" at the end of this release.

[1] "Gross merchandise value (GMV)" is defined as the total Renminbi value of all products and services sold through the Company’s online sales business, online marketplace platform, offline stores, and Shan Shan Outlets during the relevant period, including through the Company’s websites and mobile apps, third-party websites and mobile apps, Vipshop offline stores and Vipmaxx offline stores, as well as Shan Shan Outlets that were fulfilled by either the Company or its third-party merchants, regardless of whether or not the goods were delivered or returned. GMV includes shipping charges paid by buyers to sellers. For prudent considerations, the Company does not consider products or services to be sold if the relevant orders were placed and canceled pre-shipment and only included orders that left the Company’s or other third-party vendors’ warehouses.

[2] Non-GAAP net income attributable to Vipshop’s shareholders is a non-GAAP financial measure, which is defined as net income attributable to Vipshop’s shareholders excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from business acquisitions, (iii) tax effect of amortization of intangible assets resulting from business acquisitions, (iv) investment gain and revaluation of investments excluding dividends, (v) tax effect of investment gain and revaluation of investments excluding dividends, and (vi) share of loss in investment of limited partnership that is accounted for as an equity method investee.

[3] "Active customers" is defined as registered members who have purchased from the Company’s online sales business or the Company’s online marketplace platforms at least once during the relevant period.

[4] "Total orders" is defined as the total number of orders placed during the relevant period, including the orders for products and services sold through the Company’s online sales business and the Company’s online marketplace platforms (excluding, for the avoidance of doubt, orders from the Company’s offline stores and outlets), net of orders returned.

[5] Non-GAAP income from operations is a non-GAAP financial measure, which is defined as income from operations excluding share-based compensation expenses and amortization of intangible assets resulting from business acquisitions.

[6] Non-GAAP operating income margin is a non-GAAP financial measure, which is defined as non-GAAP income from operations as a percentage of total net revenues.

[7] "ADS" means American depositary share, each of which represents 0.2 Class A ordinary share.

[8] Non-GAAP net margin attributable to Vipshop’s shareholders is a non-GAAP financial measure, which is defined as non-GAAP net income attributable to Vipshop’s shareholders, as a percentage of total net revenues.

[9] Non-GAAP net income attributable to Vipshop’s shareholders per diluted ADS is a non-GAAP financial measure, which is defined as non-GAAP net income attributable to Vipshop’s shareholders, divided by the weighted average number of diluted ADS outstanding for computing diluted earnings per ADS.

[10] Free cash flow is a non-GAAP financial measure, which is defined as net cash from (used in) operating activities adding back the impact from Internet financing activities and less capital expenditures, which include purchase and deposits of property and equipment and land use rights, and purchase of other assets.

[11] Net impact from Internet financing activities represents net cash flow relating to the Company’s financial products, which are primarily consumer financing and supplier financing that the Company provides to its customers and suppliers.

 

 

Vipshop Holdings Limited

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income 

(In thousands, except for share and per share data)

Three Months Ended

June 30, 2019

March 31, 2020

June 30, 2020

June 30, 2020

RMB’000

RMB’000

RMB’000

USD’000

Product revenues 

21,721,951

17,964,195

23,213,007

3,285,588

Other revenues(1)

1,021,767

828,660

897,660

127,055

Total net revenues

22,743,718

18,792,855

24,110,667

3,412,643

Cost of revenues

(17,654,577)

(15,175,739)

(19,170,864)

(2,713,460)

Gross profit

5,089,141

3,617,116

4,939,803

699,183

Operating expenses:

Fulfillment expenses(2)

(2,198,543)

(1,393,690)

(1,676,229)

(237,255)

Marketing expenses

(877,573)

(412,305)

(1,028,903)

(145,632)

Technology and content expenses

(422,314)

(338,398)

(305,381)

(43,224)

General and administrative expenses

(706,252)

(839,220)

(804,619)

(113,886)

Total operating expenses

(4,204,682)

(2,983,613)

(3,815,132)

(539,997)

Other operating income

80,904

148,688

115,336

16,325

Income from operations

965,363

782,191

1,240,007

175,511

Investment gain and revaluation of investments

15,012

42,553

551,443

78,052

Impairment loss of investments

0

(5,046)

0

0

Interest expense

(12,194)

(35,395)

(21,070)

(2,982)

Interest income

41,732

81,190

100,286

14,195

Foreign exchange gain (loss)

30,920

48,754

(14,272)

(2,020)

Income before income tax expense and share of (loss) gain of equity method investees

1,040,833

914,247

1,856,394

262,756

Income tax expenses 

(213,392)

(172,716)

(324,883)

(45,984)

Share of (loss) gain of equity method investees

(9,572)

(60,639)

7,588

1,074

Net income

817,869

680,892

1,539,099

217,846

Net (gain) loss attributable to non-controlling interests

(4,351)

3,933

(2,179)

(308)

Net income attributable to Vipshop’s shareholders

813,518

684,825

1,536,920

217,538

Shares used in calculating earnings per share(3):

Weighted average number of Class A and Class B ordinary shares:

—Basic

133,403,777

134,326,928

134,956,142

134,956,142

—Diluted

134,648,293

136,909,242

137,322,667

137,322,667

Net earnings per Class A and Class B ordinary share

Net income attributable to Vipshop’s shareholders–Basic

6.10

5.10

11.39

1.61

Net income attributable to Vipshop’s shareholders–Diluted

6.04

5.00

11.19

1.58

Net earnings per ADS (1 ordinary share equals to 5 ADSs)

Net income attributable to Vipshop’s shareholders–Basic

1.22

1.02

2.28

0.32

Net income attributable to Vipshop’s shareholders–Diluted

1.21

1.00

2.24

0.32

(1) Other revenues primarily consist of revenues from third-party logistics services, product promotion and online advertising, fees
charged to third-party merchants which the Company provides platform access for sales of their products, interest income from
microcredit and consumer financing services, and inventory and warehouse management services to certain suppliers.

(2) Fulfillment expenses include shipping and handling expenses, which amounted RMB 1.21 billion, RMB 0.8 billion, and RMB 1.1
billion in the three month periods ended June 30,2019, March 31,2020 and June 30,2020, respectively.

(3) Authorized share capital is re-classified and re-designated into Class A ordinary shares and Class B ordinary shares, with each Class
A ordinary share being entitled to one vote and each Class B ordinary share being entitled to ten votes on all matters that are subject to
shareholder vote.

Three Months Ended

June 30, 2019

March 31, 2020

June 30, 2020

June 30, 2020

RMB’000

RMB’000

RMB’000

USD’000

Share-based compensation expenses included are as follows

Fulfillment expenses

37,497

27,215

25,905

3,667

Marketing expenses

10,970

3,939

4,661

660

Technology and content expenses

58,010

44,402

45,201

6,398

General and administrative expenses

103,048

171,455

172,136

24,364

Total

209,525

247,011

247,903

35,089

Vipshop Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

(In thousands, except for share and per share data)

December 31, 2019

June 30, 2020

June 30, 2020

RMB’000

RMB’000

USD’000

ASSETS

CURRENT ASSETS

Cash and cash equivalents

6,573,808

7,395,029

1,046,698

Restricted cash 

1,145,477

704,630

99,734

Short term investments

3,052,726

5,939,873

840,734

Accounts receivable, net

1,295,766

537,530

76,082

Amounts due from related parties

47,964

359,327

50,859

Other receivables and prepayments,net

2,897,893

2,480,658

351,114

Loan receivables,net

306,115

90,401

12,795

Inventories

7,708,292

5,764,895

815,968

Total current assets

23,028,041

23,272,343

3,293,984

NON-CURRENT ASSETS

Property and equipment, net

11,256,810

12,391,200

1,753,860

Deposits for property and equipment

101,800

62,283

8,816

Land use rights, net

5,541,108

5,874,963

831,547

Intangible assets, net

337,310

360,309

50,998

Investment in equity method investees

3,112,952

2,119,858

300,046

Other investments

2,002,756

2,502,921

354,265

Other long-term assets

608,073

488,708

69,172

Amounts due from related party-non current

102,000

59,446

8,414

Goodwill

236,711

369,902

52,356

Deferred tax assets, net

539,561

612,344

86,672

Operating lease right-of-use assets

1,715,556

1,988,535

281,459

Total non-current assets

25,554,637

26,830,469

3,797,605

TOTAL ASSETS

48,582,678

50,102,812

7,091,589

LIABILTIES AND  EQUITY 

CURRENT LIABILITIES

Short term loans

1,093,645

1,850,828

261,968

Accounts payable

13,792,200

11,901,904

1,684,605

Advance from customers 

1,233,165

1,053,406

149,100

Accrued expenses and other current liabilities 

6,534,575

5,872,404

831,185

Amounts due to related parties 

532,788

337,595

47,784

Deferred income 

405,994

324,510

45,931

Operating lease liabilities

333,268

291,701

41,288

Total current liabilities

23,925,635

21,632,348

3,061,861

NON-CURRENT LIABILITIES

Long term loans

64,515

197,858

28,005

Deferred tax liability 

165,098

388,251

54,953

Deferred income-non current 

782,068

926,827

131,184

Operating lease liabilities

1,395,665

1,737,726

245,959

Other long term liabilities 

0

40,085

5,674

Total non-current liabilities

2,407,346

3,290,747

465,775

TOTAL LIABILITIES

26,332,981

24,923,095

3,527,636

EQUITY:

Class A ordinary shares (US$0.0001 par value, 483,489,642 shares authorized, and
117,584,362 and 118,686,997 shares issued and outstanding as of December 31,
2019 and June 30,2020, respectively) 

76

77

11

Class B ordinary shares (US$0.0001 par value, 16,510,358 shares authorized, and
16,510,358 and 16,510,358 shares issued and outstanding as of December 31, 2019
and June 30,2020, respectively) 

11

11

2

Additional paid-in capital

9,959,497

10,443,055

1,478,119

Retained earnings

11,924,228

14,055,203

1,989,385

Accumulated other comprehensive loss

(56,656)

(34,342)

(4,867)

Non-controlling interests

422,541

715,713

101,303

Total shareholders’ equity

22,249,697

25,179,717

3,563,953

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 

48,582,678

50,102,812

7,091,589

Vipshop Holdings Limited

 Reconciliations of GAAP and Non-GAAP Results

Three Months Ended

June 30, 2019

June 30, 2020

June 30, 2020

RMB’000

RMB’000

USD’000

Income from operations

965,363

1,240,007

175,511

Share-based compensation expenses

209,525

247,903

35,089

Amortization of intangible assets resulting from business acquisitions 

511

5,896

835

Non-GAAP income from operations

1,175,399

1,493,806

211,435

Net income

817,869

1,539,099

217,846

Share-based compensation expenses

209,525

247,903

35,089

Investment gain and revaluation of investments excluding dividends

(2,198)

(551,443)

(78,052)

Share of loss in investment of limited partnership that is accounted for as an equity
method investee

24,218

27,739

3,926

Tax effect of investment gain and revaluation of investments excluding dividends

17,150

55,044

7,791

Amortization of intangible assets resulting from business acquisitions

511

5,896

835

Tax effect of amortization of intangible assets resulting from business acquisitions

(128)

(1,474)

(209)

Non-GAAP net income

1,066,947

1,322,764

187,226

Net income attributable to Vipshop’s shareholders

813,518

1,536,920

217,538

Share-based compensation expenses

209,525

247,903

35,089

Investment gain and revaluation of investments excluding dividends

(2,198)

(551,443)

(78,052)

Share of loss in investment of limited partnership that is accounted for as an equity
method investee

24,218

27,739

3,926

Tax effect of investment gain and revaluation of investments excluding dividends

17,150

55,044

7,791

Amortization of intangible assets resulting from business acquisitions 

501

5,896

835

Tax effect of amortization of intangible assets resulting from business acquisitions 

(125)

(1,474)

(209)

Non-GAAP net income attributable to Vipshop’s shareholders

1,062,589

1,320,585

186,918

Shares used in calculating earnings per share:

Weighted average number of Class A and Class B ordinary shares:

–Basic

133,403,777

134,956,142

134,956,142

–Diluted

134,648,293

137,322,667

137,322,667

Non-GAAP net income per Class A and Class B ordinary share

Non-GAAP net income attributable to Vipshop’s shareholders–Basic

7.97

9.79

1.39

Non-GAAP net income attributable to Vipshop’s shareholders–Diluted

7.89

9.62

1.36

Non-GAAP net income per ADS (1 ordinary share equal to 5 ADSs)

Non-GAAP net income attributable to Vipshop’s shareholders–Basic

1.59

1.96

0.28

Non-GAAP net income attributable to Vipshop’s shareholders–Diluted

1.58

1.92

0.27

Related Links :

http://www.vip.com

PR Newswire

SINA Special Committee Retains Financial Advisor and Legal Counsel

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BEIJING, Aug. 7, 2020 — SINA Corporation (the "Company" or "SINA") (NASDAQ: SINA), a leading online media company serving China and the global Chinese communities, today announced that the independent special committee (the "Special Committee") of the Company’s Board of Directors (the "Board") has retained Morgan Stanley Asia Limited as its financial advisor, and Gibson, Dunn & Crutcher LLP as its U.S. legal counsel to assist the Special Committee in its evaluation and consideration of the previously announced preliminary non-binding proposal from New Wave MMXV Limited ("New Wave") that the Board received on July 6, 2020, proposing to acquire all the outstanding ordinary shares of the Company not already owned by New Wave for US$41 per share in cash in a going private transaction (the "Proposed Transaction"). New Wave is a company incorporated in the British Virgin Islands and controlled by Mr. Charles Chao, Chairman and Chief Executive Officer of the Company.

The Board cautions the Company’s shareholders and others considering trading in its securities that no decisions have been made by the Special Committee with respect to the Company’s response to the Proposed Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be entered into or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to the Proposed Transaction, except as required under applicable law.

About SINA

SINA is a leading online media company serving China and the global Chinese communities. Its digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile apps) and Weibo (social media) enables internet users to access professional media and user generated content in multi-media formats from personal computers and mobile devices and share their interests with friends and acquaintances.

SINA.com offers distinct and targeted professional content on each of its region-specific websites and a full range of complementary offerings. SINA mobile provides news information, professional and entertainment content customized for mobile users through mobile applications and mobile portal site SINA.cn.

Weibo is a leading social media platform for people to create, distribute and discover content. Based on an open platform architecture, Weibo provides unprecedented and simple way for people and organizations to publicly express themselves in real time, interact with others on a massive global platform and stay connected with the world.

Through these properties and other product lines, SINA offers an array of online media and social media services to its users to create a rich canvas for businesses and advertisers to effectively connect and engage with their targeted audiences.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. SINA may also make forward-looking statements in the Company’s periodic reports 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. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "confidence," "estimates" and similar statements. SINA assumes no obligation to update the forward-looking statements in this press release and elsewhere. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Potential risks and uncertainties include, but are not limited to failure to meet internal or external expectations of future performance given the rapidly evolving markets; condition of the global financial and credit market; the uncertain regulatory landscape in China; fluctuations in the Company’s quarterly operating results; the Company’s reliance on online advertising sales and value-added services for a majority of its revenues; failure to successfully develop, introduce, drive adoption of or monetize new features and products, including portal, Weibo and Fintech products; failure to enter and develop the small and medium enterprise market by the Company or through cooperation with other parties, such as Alibaba; failure to successfully integrate acquired businesses; risks associated with the Company’s investments, including adverse impacts on our financial results from equity pick-up, fair value changes and impairment; and failure to compete successfully against new entrants and established industry competitors. Further information regarding these and other risks is included in SINA’s 2019 annual reports on Form 20-F and other filings with the Securities and Exchange Commission.

Contact:

Investor Relations
SINA Corporation
Phone: +86 10 5898 3336
Email: ir@staff.sina.com.cn

Related Links :

http://www.sina.com

PR Newswire

58.com to Hold Extraordinary General Meeting of Shareholders

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BEIJING, Aug. 7, 2020 — 58.com Inc. (NYSE: WUBA) ("58.com" or the "Company"), China’s largest online market place for classifieds, today announced it has called an extraordinary general meeting of shareholders (the "EGM"), to be held on September 7, 2020 at 10:30 a.m. (Beijing time), at Building 105, 10 Jiuxianqiao North Road Jia, Chaoyang District, Beijing, China, to consider and vote on, among other things, the proposal to authorize and approve the previously announced agreement and plan of merger (the "Merger Agreement") , dated June 15, 2020, among the Company, Quantum Bloom Group Ltd, an exempted company with limited liability incorporated under the law of the Cayman Islands ("Parent"), and Quantum Bloom Company Ltd, an exempted company with limited liability incorporated under the law of the Cayman Islands and a wholly-owned subsidiary of Parent ("Merger Sub"), the plan of merger required to be filed with the Registrar of Companies of the Cayman Islands (the "Plan of Merger") and the transactions contemplated thereby, including the Merger (as defined below).

Pursuant to the Merger Agreement and the Plan of Merger, at the effective time of the Merger, Merger Sub will merge with and into the Company and cease to exist, with the Company being the surviving company and becoming a wholly-owned subsidiary of Parent (the "Merger"). If consummated, the Merger would result in the Company becoming a privately held company and its American depositary shares (each representing two Class A ordinary shares, par value US$0.00001 per share) (the "ADSs") would no longer be listed or traded on any stock exchange, including the New York Stock Exchange and the Company’s ADS program would be terminated. In addition, the Company’s ADSs and Class A ordinary shares represented by the ADSs will cease to be registered under Section 12 of the Securities Exchange Act of 1934 following the consummation of the Merger.

The Company’s board of directors (the "Board"), acting upon the unanimous recommendation of a committee of the Board, composed solely of directors who are unaffiliated to the management of the Company, or to any person participating as a buyer or rollover shareholder in the Merger, authorized and approved the execution, delivery and performance of the Merger Agreement, the Plan of Merger and the consummation of the transactions contemplated thereby, including the Merger,  and  recommends that the Company’s shareholders and ADS holders vote FOR, among other things, the proposal to authorize and approve the execution, delivery and performance of the Merger Agreement, the Plan of Merger and the consummation of the transactions contemplated thereby, including the Merger.

Shareholders of record at the close of business in the Cayman Islands on August 14, 2020 will be entitled to attend and vote at the EGM and any adjournment thereof. ADS holders as of the close of business in New York City on August 10, 2020 will be entitled to instruct Citibank, N.A., the ADS depositary, to vote the Class A ordinary shares represented by the ADSs at the EGM.

Additional information regarding the EGM and the Merger Agreement can be found in the transaction statement on Schedule 13E-3 and the definitive proxy statement attached as Exhibit (a)-(1) thereto, as amended, filed with the U.S. Securities and Exchange Commission (the "SEC"), which can be obtained, along with other filings containing information about the Company, the proposed Merger and related matters, without charge, from the SEC’s website www.sec.gov. Requests for additional copies of the definitive proxy statement should be directed to Morrow Sodali, the proxy solicitor, at +1 (800) 662-5200 (U.S. Toll-Free) or +1 (203) 658-9400 (Non-U.S. Direct), or by email at 58@investor.morrowsodali.com.

SHAREHOLDERS AND ADS HOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THESE MATERIALS AND OTHER MATERIALS FILED WITH OR FURNISHED TO THE SEC WHEN THEY BECOME AVAILABLE, AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, THE PROPOSED MERGER AND RELATED MATTERS.

The Company and certain of its directors and executive officers may, under SEC rules, be deemed to be "participants" in the solicitation of proxies from the shareholders with respect to the proposed Merger. Information regarding the persons who may be considered "participants" in the solicitation of proxies is set forth in the Schedule 13E-3 transaction statement relating to the proposed Merger and the definitive proxy statement attached thereto. Further information regarding persons who may be deemed participants, including any direct or indirect interests they may have, is also set forth in the definitive proxy statement.

This announcement is for information purposes only and does not constitute an offer to purchase or the solicitation of an offer to sell any securities or a solicitation of any proxy, vote or approval with respect to the proposed transaction or otherwise, nor shall it be a substitute for any proxy statement or other filings that have been or will be made with the SEC.

About 58.com Inc.

58.com Inc. (NYSE: WUBA) operates China’s largest online market place for classifieds, 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.

Forward-looking 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. 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: uncertainties as to how the Company’s shareholders will vote at the meeting of shareholders; the possibility that competing offers will be made; the possibility that financing may not be available; the possibility that various closing conditions for the transaction may not be satisfied or waived; and other risks and uncertainties discussed in documents filed with the SEC by the Company, as well as the Schedule 13E-3 transaction statement and the proxy statement filed by the Company. 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 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. Eric Yuan
Phone: +86-10-5900-1548
E-mail: Eyuan@christensenir.com

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

Related Links :

http://www.58.com

PR Newswire

E-House to Become Leju’s Majority Shareholder; E-House, Alibaba and Leju to Jointly Build Online Real Estate Platform; Alibaba to Increase Stake in E-House

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BEIJING, July 31, 2020 — Leju Holdings Limited ("Leju" or the "Company") (NYSE: LEJU), a leading e-commerce and online media platform for real estate and home furnishing industries in China, today announced that it has become aware that E-House (China) Enterprise Holdings Limited ("E-House") (Stock Code: 2048), listed on The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), has entered into definitive agreements with Mr. Xin Zhou, Leju’s executive chairman, and certain of his affiliated entities ("Zhou Parties"), and SINA Corporation and its affiliated entity ("SINA Parties"), to acquire an aggregate of 56.19% interest in the issued share capital of Leju. 

To Leju’s knowledge, pursuant to the agreements, E-House has conditionally agreed to purchase (i) 49,686,192 ordinary shares and 2,239,804 ADSs (each representing one ordinary share) of Leju from the Zhou Parties by issuing to the Zhou Parties 166,918,440 of its ordinary shares ("E-House Shares"), and (ii) 24,438,564 ordinary shares and 36,687 ADSs (each representing one ordinary share) of Leju from the SINA Parties by issuing to the SINA Parties 78,676,790 E-House Shares. The completion of these transactions is subject to certain closing conditions, including the approval by the requisite majority of shareholders or independent shareholders of E-House and the granting of the approval for the listing of, and permission to deal in, the E-House Shares by the Hong Kong Stock Exchange. Upon completion of these transactions, Leju will become a subsidiary of E-House and its financial results will be consolidated into the accounts of E-House.

In addition, E-House announced the establishment of strategic cooperation with Alibaba Group Holding Limited (NYSE, BABA, 09988.HK) ("Alibaba"). According to a business cooperation agreement entered into between E-House and a subsidiary of Alibaba, the two parties will cooperate in areas including online-offline real estate transaction, digital marketing and after-sale services with the goal of enhancing the digital and intellectual capabilities of the real estate service industry. Alibaba will closely collaborate with E-House and Leju to build an online real estate marketing platform and digital transaction network, with E-House being the operator of online transaction services on the platform and Leju being the operator of digital marketing services.

Also to Leju’s knowledge, Alibaba has agreed to (i) subscribe for E-House Shares to be issued by E-House, which will increase Alibaba’s stake in E-House to approximately 8.32%, and (ii) subscribe for a convertible note to be issued by E-House that is convertible into E-House Shares. Assuming full conversion of the convertible note, Alibaba will own a total 13.26% of the issued share capital of E-House, making it the second largest shareholder of E-House.  

"The cooperation between E-House and Alibaba is not only a key milestone in E-House’s and Leju’s development, but also a significant event in China’s real estate service industry," said Mr. Xin Zhou, Leju’s executive chairman. "In the process of collaborating with E-House and Alibaba to build an online real estate marketing and transaction platform, Leju will leverage its experience in online marketing and transaction service and become the service provider for digital marketing and operation on the platform. This will greatly enhance Leju’s core value and competitiveness."

About Leju

Leju Holdings Limited ("Leju") (NYSE: LEJU) is a leading e-commerce and online media platform for real estate and home furnishing industries in China, offering real estate e-commerce, online advertising and online listing services. Leju’s integrated online platform comprises various mobile applications along with local websites covering more than 380 cities, enhanced by complementary offline services to facilitate residential property transactions. In addition to the Company’s own websites, Leju operates the real estate and home furnishing websites of SINA Corporation, and maintains a strategic partnership with Tencent Holdings Limited. For more information about Leju, please visit http://ir.leju.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are 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" and similar statements. Statements that are not historical facts, including statements about Leju’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement All information provided in this press release is as of the date of this press release, and Leju does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

Ms. Christina Wu
Leju Holdings Limited
Phone: +86 (10) 5895-1062
E-mail: ir@leju.com

Philip Lisio
Foote Group
Phone: +86 135-0116-6560
E-mail: phil@thefootegroup.com

PR Newswire

Sohu.com to Report Second Quarter 2020 Financial Results on August 10, 2020

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BEIJING, July 27, 2020 — Sohu.com Limited (NASDAQ: SOHU), China’s leading online media, video, search and gaming business group, will report its second quarter 2020 unaudited financial results on Monday, August 10, 2020, before U.S. market hours.

 

Sohu’s management team will host a conference call on the same day at 7:30 a.m. U.S. Eastern Time, August 10, 2020 (7:30 p.m. Beijing/Hong Kong time, August 10, 2020) following the quarterly results announcement.

Due to the outbreak of COVID-19, operator assisted conference calls are not available at the moment. All participants must preregister online prior to the call to receive the dial-in details.

Conference Call Preregistration

Participants can register for the conference call by navigating to https://apac.directeventreg.com/registration/event/8993497. Once preregistration has been completed, participants will receive dial-in numbers, an event passcode, and a unique registrant ID.

To join the conference, please dial the number you receive, enter the event passcode followed by your unique registrant ID, and you will be joined to the conference instantly.

A telephone replay of the call will be available after the conclusion of the conference call at 10:30 a.m. Eastern Time on August 10 through August 18, 2020. The dial-in details for the telephone replay are:

International:

+1-646-254-3697

Passcode:

8993497

The live webcast and archive of the conference call will be available on the Investor Relations section of Sohu’s website at http://investors.sohu.com/.

About Sohu.com

Sohu.com Limited (NASDAQ: SOHU) is China’s premier online brand and indispensable to the daily life of millions of Chinese, providing a network of web properties and community based/web 2.0 products which offer the vast Sohu user community a broad array of choices regarding information, entertainment and communication. Sohu has built one of the most comprehensive matrices of Chinese language web properties and proprietary search engines, consisting of the mass portal and leading online media destination www.sohu.com; interactive search engine www.sogou.com; developer and operator of online games www.changyou.com/en/ and online video website tv.sohu.com .

Sohu’s corporate services consist of online brand advertising on Sohu’s matrix of websites as well as bid listing and home page on its in-house developed search directory and engine. Sohu also provides multiple news and information services on mobile platforms, including Sohu News App and the mobile news portal m.sohu.com. Sohu’s online game subsidiary Changyou develops and operates a diverse portfolio of PC and mobile games, such as Tian Long Ba Bu (“TLBB”), one of the most popular PC games in China. Changyou also owns and operates the 17173.com Website, a game information portal in China. Sohu’s online search subsidiary Sogou (NYSE: SOGO) has grown to become the second largest search engine by mobile queries in China. It also owns and operates Sogou Input Method, the largest Chinese language input software. Sohu, established by Dr. Charles Zhang, one of China’s internet pioneers, is in its twenty-fourth year of operation.

For investor and media inquiries, please contact:

In China:

Ms. Pu Huang

Sohu.com Limited

Tel:

+86 (10) 6272-6645

E-mail:

ir@contact.sohu.com

In the United States:

Ms. Linda Bergkamp

Christensen

Tel:

+1 (480) 614-3004

E-mail:

lbergkamp@christensenir.com
 

Related Links :

https://www.sohu.com/