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iClick Interactive Asia Group Limited Reports 2020 Second-Quarter Unaudited Financial Results

By | EN, PR

– Reached Another Record Quarter in Key Financials

HONG KONG, Aug. 24, 2020 /PRNewswire/ — iClick Interactive Asia Group Limited ("iClick" or the "Company") (NASDAQ: ICLK), an independent online marketing and enterprise data solutions provider in China, today announced unaudited financial results for the second quarter ended June 30, 2020.

Three Months Ended June 30,

2020

2019

Percentage
change

(US$ in thousands)

(Unaudited)

Financial Metrics:

Revenue

     Marketing solutions

52,969

46,590

14%

     Enterprise solutions

5,144

2,757

87%

Total revenue

58,113

49,347

18%

Gross profit

16,615

13,596

22%

Net loss

(21)

(3,244)

N/M

Adjusted EBITDA[1]

5,158

1,221

322%

Adjusted net income/(loss)[1]

2,495

(721)

N/M

Diluted adjusted net income/(loss) per ADS[1]

0.0307

(0.0126)

N/M

Operating Metrics:

Gross billing

132,793

140,871

(6)%

[1] For more details on these non-GAAP financial measures, please see the tables captioned
"Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this
press release.

"As China’s economy begins to recover from the coronavirus pandemic, I am pleased to report that our company delivered outstanding results in the second quarter of 2020, with record high revenue, substantially reduced net loss, record high adjusted EBITDA and adjusted net income, as well as the highest gross profit for any second quarter in the company’s history," said Jian "T.J." Tang, Chief Executive Officer and Co-Founder of iClick. "We reported total revenue of US$58.1 million for the quarter, an increase of 18% from the same period of last year, while our gross profit grew to US$16.6 million, up 22% from the second quarter of 2019. In the meantime, our net loss narrowed substantially to almost a break-even. Our adjusted EBITDA more than quadrupled to a new record of US$5.2 million. Our adjusted net income improved significantly to US$2.5 million in the second quarter of 2020, compared with adjusted net loss of US$0.7 million in the same period of 2019, reflecting greater economies of scale, enhanced operating efficiencies and improved cost controls."

"Amidst the macro challenges, our Enterprise Solutions business saw its third consecutive quarter of growth, generating US$5.1 million in revenue in the second quarter, an 87% increase from the second quarter of 2019. We remain confident in realizing a substantial increase in revenue from our Enterprise Solutions business in the second half of 2020. We are particularly encouraged to see our Enterprise Solutions business generate profit with a relatively high gross margin, which is set to support our overall growth and profitability for the long term."

"We are experiencing strong demand for our products and services, in particular our data analytics, which serve an important role in quickly understanding the rapidly changing online consumer behaviour, for which the coronavirus has brought additional uncertainty, not only in China, but worldwide. We are seeing that many brands are looking to China’s recovering economy to make up for business that may have been lost in other regions of the globe that continue to be affected by the pandemic. We are also beginning to see that sustained changes in consumer buying habits are causing marketers to require more comprehensive online-to-offline data integration to enhance customer loyalty and generate more sales opportunities. We will continue to closely monitor the outbreak’s impact on our operations but as of today we reiterate our 2020 full-year revenue guidance range, which is from US$240 million to US$260 million range, due to the consistency of demand from marketers."

Second Quarter 2020 Results:

Revenue for the second quarter of 2020 grew to US$58.1 million, up 18% from US$49.3 million for the same period of the prior year, attributable to the increase in contributions from existing marketing solutions and enterprise solutions, partially offset by a decrease in the average exchange rate of Renminbi to the US dollar for the second quarter of 2020 compared to the same period in 2019.

Revenue from marketing solutions grew to US$53.0 million for the second quarter of 2020, up 14% from US$46.6 million for the second quarter of 2019, primarily as the result of growing market demand from specified action marketing campaigns.

Revenue from enterprise solutions was US$5.1 million for the second quarter of 2020, up approximately 87% from US$2.8 million for the second quarter of 2019, which was driven primarily by the increasing need for online and offline consumers’ behavioural data integration.

Gross profit for the second quarter of 2020 was US$16.6 million, representing a 22% increase compared with US$13.6 million for the second quarter of 2019, mainly due to continual expansion of the Company’s marketing solutions and contribution from higher-margin enterprise solutions.

Total operating expenses were US$15.2 million for the second quarter of 2020, compared with US$16.0 million for the second quarter of 2019.

Operating income was US$1.4 million for the second quarter of 2020, compared with an operating loss of US$2.4 million for the second quarter of 2019, as a result of the strong growth in gross profit, which was in line with the Company’s business development.

Net loss totalled US$0.02 million for the second quarter of 2020, compared with net loss of US$3.2 million for the second quarter of 2019. This was mainly because the Company recorded an operating income and there was an increase in the other gains, net, by US$1.0 million. These factors were partially offset by the fair value losses of derivative liabilities and convertible notes of US$1.5 million and US$0.5 million, respectively, in the second quarter of 2020, compared to US$1.0 million fair value losses of convertible notes in the second quarter of 2019.

Net income attributable to the Company’s shareholders per basic and diluted ADS for the second quarter of 2020 were US$0.0051 and US$0.0047, respectively, compared with a net loss attributable to the Company’s shareholders per basic and diluted ADS of US$0.0600 for the second quarter of 2019.

Adjusted EBITDA for the second quarter of 2020 was US$5.2 million, compared with US$1.2 million for the second quarter of 2019, mainly resulting from the increase in gross profit by US$3.0 million and increase in other gains, net, by US$1.0 million. For a reconciliation of the Company’s adjusted EBITDA from net loss, its most comparable GAAP measure, please refer to "Unaudited Reconciliations of GAAP and Non-GAAP Results."

Adjusted net income for the second quarter of 2020 was US$2.5 million, compared with an adjusted net loss of US$0.7 million in the second quarter of 2019. For a reconciliation of the Company’s adjusted net income/(loss) from net loss, its most comparable GAAP measure, please refer to "Unaudited Reconciliations of GAAP and Non-GAAP Results."

Gross billing[2] was US$132.8 million for the second quarter of 2020, representing a 6% decrease compared with US$140.9 million for the second quarter of 2019, primarily a result of (i) a decrease in the average exchange rate of Renminbi to the US dollar for the second quarter of 2020 compared to the same period in 2019, and (ii) our efforts in optimizing our client base to achieve better credit control, retain and attract customers with strong financial position. The gross billing would be US$140.3 million on a currency-neutral basis for the second quarter of 2020.

As of June 30, 2020, the Company had cash and cash equivalents of US$39.4 million, compared with US$36.9 million as of December 31, 2019. Restricted cash and time deposits as of June 30, 2020 amounted to US$24.3 million and US$0.5 million, respectively, compared with US$23.8 million and US$0.4 million as of December 31, 2019, respectively.

[2] Gross billing is defined as the aggregate dollar amount that clients pay the Company after deducting rebates paid and discounts given to.

Share Repurchase Program

On January 15, 2020, we announced a share repurchase program in which we may purchase our own ADSs with an aggregate value of up to US$10.0 million over the 12-month period ending on December 29, 2020. As of June 30, 2020, we purchased an aggregate value of approximately US$0.7 million.

Outlook

Based on the information available as of the date of this press release, iClick provided the following outlook for the third quarter of 2020 and the following outlook for the 2020 full year:

Third Quarter 2020:

  • Revenue is estimated to be between US$66 million and US$70 million.
  • Revenue from Enterprise Solutions is estimated to be between US$7.5 million and US$9.5 million.
  • Gross profit is estimated to be between US$18 million and US$22 million.

Full Year 2020:

  • Revenue is estimated to be between US$240 million and US$260 million.
  • Gross profit is estimated to be between US$70 million and US$75 million.
  • Adjusted EBITDA is estimated to between US$9 million and US$12 million.

The above outlook is based on current market conditions and reflects the Company’s preliminary estimates of market and operating conditions, expected foreign exchange fluctuation, and customer demand, which are all subject to change. Please also refer to the factors set out under the section titled "Safe Harbor Statement."

We noted that the advertising budgets normalized during the second quarter, especially in the online-gaming area, as a result of the relaxation of restrictions on economic and social life due to a slowdown of COVID-19 cases in China. E-commerce and online education continued to experience resilient year-over-year growth, which is primarily attributable to the increased spending in promotional campaigns, such as "June 18 Shopping Festival," as well as summer courses. In the meantime, some other industry verticals such as automobile and consumer products began to gradually recover during the quarter. Based on the current commercial environment, we anticipate that brands may allocate more of their advertising budgets to mobile and online targeted marketing, with the potential to benefit our mobile and performance-focused Marketing Solutions business. Brands may also see the importance of online and offline consumer behavioural data integration and analysis, which may favour our Enterprise Solutions business in the long run.

With iClick’s diversified customer base of stable, top-tier brands, and the Chinese government’s efforts to contain the spread of the coronavirus, we remain cautiously optimistic for the second half of this year. However, outbreaks of COVID-19 around the world may continue to impact market conditions and potentially trigger a longer period of global economic slowdown. This could affect the overall sentiment and advertising budgets of our branding customers, which in turn may impact our Marketing Solution business in the short term. The rapid development and fluidity of the current situation precludes any prediction as to the ultimate adverse impact of COVID-19. Management will continue to closely monitor the outbreak’s impact on our operations and financial results this year and will particularly focus on business retention and accounts receivable recoverability.

Conference Call

The Company will host an earnings conference call at 8:00 AM U.S. Eastern Time on August 24, 2020 (8:00 PM Beijing/Hong Kong time on August 24, 2020). A live and archived webcast of the conference call will be available on iClick’s investor relations website at http://ir.i-click.com.

Dial-in details for the conference call are as follows:

United States:

+1-888-346-8982

International:

+1-412-902-4272

Hong Kong:

+852-800-905945

Mainland China:

+86-4001-201203

Participants please ask to join the iClick Interactive Asia Group Limited conference call.

A replay of the conference call will be accessible by phone one hour after the conclusion of the live call at the following numbers, until August 24, 2020:

United States:

+1-877-344-7529

International:

+1-412-317-0088

Canada:

+1-855-669-9658

Replay Access Code:

10147144

About iClick Interactive Asia Group Limited

iClick Interactive Asia Group Limited (NASDAQ: ICLK) is an independent online marketing and enterprise data solutions provider that connects worldwide marketers with audiences in China. Built on cutting-edge technologies, our proprietary platform possesses omni-channel marketing capabilities and fulfils various marketing objectives in a data-driven and automated manner, helping both international and domestic marketers reach their target audiences in China. Headquartered in Hong Kong, iClick was established in 2009 and is currently operating in ten locations worldwide including Asia and Europe. For more information, please visit ir.i-click.com.

Non-GAAP Financial Measures

The Company uses adjusted EBITDA, adjusted net income/(loss), and diluted adjusted net income/(loss) per ADS, each a non-GAAP financial measure, in evaluating the Company’s operating results and for financial and operational decision-making purposes.

The Company believes that adjusted EBITDA, adjusted net income/(loss), and diluted adjusted net income/(loss) per ADS help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of the expenses and gains that the Company includes in net loss. The Company believes that adjusted EBITDA and adjusted net income/(loss) provide useful information about the Company’s operating results, enhance the overall understanding of the Company’s past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

Adjusted EBITDA, adjusted net income/(loss), and diluted adjusted net income/(loss) per ADS should not be considered in isolation or construed as an alternative to net loss or any other measure of performance or as an indicator of the Company’s operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted EBITDA, adjusted net income/(loss), and diluted adjusted net income/(loss) per ADS presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. The Company encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure.

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

Additionally, currency-neutral gross billing is calculated using actual exchange rates in use during the comparative prior year period to enhance the visibility of the underlying business trends excluding the impact of translation arising from foreign currency exchange rate fluctuations. These non-GAAP financial measures were presented with the most directly comparable GAAP financial measures together for facilitating a more comprehensive understanding of operating performance between periods.

Safe Harbor Statement

This announcement contains forward-looking statements, including those related to the Company’s business strategies, operations and financial performance. These statements constitute "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," "confident" 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. 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 Company’s fluctuations in growth; its success in implementing its mobile and new retail strategies, including extending its solutions beyond its core online marketing business; its success in structuring a CRM & Marketing Cloud platform; relative percentage of its gross billing recognized as revenue under the gross and net models; its ability to retain existing clients or attract new ones; its ability to retain content distribution channels and negotiate favourable contractual terms; market competition, including from independent online marketing technology platforms as well as large and well-established internet companies; market acceptance of online marketing technology solutions and enterprise solutions; effectiveness of its algorithms and data engines; its ability to collect and use data from various sources; ability to integrate and realize synergies from acquisitions, investments or strategic partnership; the duration of the COVID-19 outbreak and its potential impact on the Company’s business and financial performance; fluctuations in foreign exchange rates; and general economic conditions in China and other jurisdictions where the Company operates; and the regulatory landscape in China and other jurisdictions where the Company operates. Further information regarding these and other risks is included in the Company’s annual report on Form 20-F and other filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

In the United States:

iClick Interactive Asia Group Limited

Core IR

Lisa Li

John Marco

Phone: +86-21-3230-3931 #892

Tel: +1-516-222-2560

 

(financial tables follow)

 

ICLICK INTERACTIVE ASIA GROUP LIMITED

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(US$’000, except share data and per share data, or otherwise noted, unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

Revenue

58,113

49,347

107,148

88,565

Cost of revenue

(41,498)

(35,751)

(77,270)

(62,579)

Gross profit

16,615

13,596

29,878

25,986

Operating expenses

Research and development expenses

(1,126)

(1,505)

(2,300)

(2,849)

Sales and marketing expenses

(8,768)

(10,872)

(17,116)

(20,868)

General and administrative expenses

(5,320)

(3,600)

(11,127)

(6,838)

Total operating expenses

(15,214)

(15,977)

(30,543)

(30,555)

Operating income/(loss)

1,401

(2,381)

(665)

(4,569)

Interest expense

(580)

(332)

(1,015)

(537)

Interest income

154

115

362

214

Other gains, net

1,483

440

1,388

1,212

Fair value losses on derivative liabilities

(1,567)

(5,123)

Fair value losses on convertible notes

(480)

(991)

(3,007)

(1,992)

Income/(loss) before income tax expense

411

(3,149)

(8,060)

(5,672)

Share of losses from an equity investee

(28)

(14)

(69)

(14)

Income tax expense

(404)

(81)

(320)

(27)

Net loss

(21)

(3,244)

(8,449)

(5,713)

Net loss attributable to noncontrolling interests

403

103

1,097

437

Net income/(loss) attributable to iClick Interactive Asia 

   Group Limiteds ordinary shareholders

382

(3,141)

(7,352)

(5,276)

Net loss

(21)

(3,244)

(8,449)

(5,713)

Other comprehensive (loss)/income:

  Foreign currency translation adjustment, net of

   US$nil tax

(504)

(836)

612

89

Comprehensive loss

(525)

(4,080)

(7,837)

(5,624)

Comprehensive loss attributable to noncontrolling

   interests

403

103

1,115

437

Comprehensive loss attributable to iClick Interactive

   Asia Group Limited

(122)

(3,977)

(6,722)

(5,187)

Net income/(loss) per ADS attributable to iClick Interactive

   Asia Group Limited

—Basic

0.0051

(0.0600)

(0.1056)

(0.0900)

—Diluted

0.0047

(0.0600)

(0.1056)

(0.0900)

Weighted average number of ADS used in per

   share calculation:

—Basic

74,804,895

57,021,120

69,590,308

56,700,646

—Diluted

80,592,538

57,021,120

69,590,308

56,700,646

 

 

ICLICK INTERACTIVE ASIA GROUP LIMITED 

Unaudited Condensed Consolidated Balance Sheets

(US$’000, except share data and per share data, or otherwise noted, unaudited)

As of

As of

June 30, 2020

December 31, 2019

Assets

Current assets

Cash and cash equivalents

39,355

36,854

Time deposits

473

410

Restricted cash

24,379

23,852

Accounts receivable, net of allowance for doubtful receivables of US$7,147 and US$3,469 as of

   June 30, 2020 and December 31, 2019 respectively[3]

123,245

143,971

Prepaid media costs

17,337

25,565

Short-term investments

4,952

Amount due from an equity investee

199

155

Rebate receivable

5,971

5,603

Other current assets

13,747

8,983

Total current assets

229,658

245,393

Non-current assets

Goodwill

65,710

65,710

Intangible assets, net

55,175

4,418

Prepayment for long-term investments

6,785

1,000

Other long-term investments

3,445

1,503

Right-of-use assets

1,199

1,656

Deferred tax assets

1,091

1,033

Property and equipment, net

511

536

Investment in an equity investee

502

158

Other assets

185

109

Total non-current assets

134,603

76,123

Total assets

364,261

321,516

Liabilities and equity

Current liabilities

Accounts payable (including accounts payable of the consolidated variable interest entity ("VIE") and its subsidiaries

   without recourse to the Company of US$3,460 and US$27 as of June 30, 2020 and December 31, 2019, respectively)

36,131

66,161

Deferred revenue (including deferred revenue of the consolidated VIE and its subsidiaries without recourse to the

   Company of US$750 and US$866 as of June 30, 2020 and December 31, 2019, respectively)

25,785

27,089

Accrued liabilities and other current liabilities (including accrued liabilities and other current liabilities of the consolidated VIE
and its subsidiaries without recourse to the Company of US$1,417 and US$1,802 as of June 30, 2020 and December 31, 2019,
respectively)

30,974

19,937

Bank borrowings

41,980

36,851

Convertible notes at fair value

4,653

49,008

Derivative liabilities

5,123

Income tax payable

4,171

3,780

Lease liabilities

452

1,114

Total current liabilities

149,269

203,940

Non-current liabilities

Deferred tax liabilities (including deferred tax liabilities of the consolidated VIE and its subsidiaries without recourse to the
Company of US$166 and US$187 as of June 30, 2020 and December 31, 2019, respectively)

14,276

1,865

Lease liabilities

841

706

Other liabilities

512

449

Total non-current liabilities

15,629

3,020

Total liabilities

164,898

206,960

Equity

Ordinary shares – Class A (US$0.001 par value; 80,000,000 shares authorized as of June 30, 2020 and

   December 31, 2019, respectively; 34,467,143 and 23,870,027 shares issued and outstanding as of

   June 30, 2020 and December 31, 2019, respectively)

34

24

Ordinary shares – Class B (US$0.001 par value; 20,000,000 shares authorized as of June 30, 2020 and

   December 31, 2019, respectively; 4,820,608 shares issued and outstanding as of June 30, 2020 and

   December 31, 2019, respectively)

5

5

Treasury shares (1,542,400 shares and 1,744,873 shares as of June 30, 2020 and

   December 31, 2019, respectively)

(5,429)

(4,858)

Additional paid-in capital

394,533

305,344

Statutory reserves

81

81

Accumulated other comprehensive losses

(6,849)

(7,479)

Accumulated deficit[3]

(202,339)

(191,016)

Total iClick Interactive Asia Group Limited shareholders’ equity

180,036

102,101

Noncontrolling interests

19,327

12,455

Total equity

199,363

114,556

Total liabilities and equity

364,261

321,516

[3] The Company adopted ASC 326 using the modified retrospective method started from January 1, 2020, which changes the impairment model for financial assets
measured at amortized costs by using a new forward-looking "expected loss" model that replaced the "incurred loss" model and resulted in the earlier recognition of
allowances for losses. The adoption of ASC 326 resulted in recognition of allowance for doubtful accounts receivable of US$4.0 million and a corresponding increase
in accumulated losses of US$4.0 million on January 1, 2020, for the cumulative effect of adopting ASC 326. The consolidated financial information related to periods
prior to January 1, 2020 were not restated, and continue to be reported in accordance with previously applicable GAAP.

 

 

ICLICK INTERACTIVE ASIA GROUP LIMITED

Unaudited Reconciliations of GAAP and Non-GAAP Results

(US$’000, except share data and per share data, or otherwise noted, unaudited)

Adjusted EBITDA represents net loss before (i) depreciation and amortization, (ii) interest expense, (iii) interest
income, (iv) income tax expense, (v) share-based compensation, (vi) fair value losses on derivative liabilities, (vii)
fair value losses on convertible notes, (viii) other gains, net, (ix) convertible notes issuance cost, (x) net loss
attributable to noncontrolling interests, (xi) share of losses from an equity investee, (xii) cost related to new business
setup or acquisitions, and (xiii) cost related to filing of Form F-3.

The table below sets forth a reconciliation of the Company’s adjusted EBITDA from net loss for the periods indicated:

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

Net loss

(21)

(3,244)

(8,449)

(5,713)

Add/(less):

     Depreciation and amortization

1,833

1,644

3,487

3,378

     Interest expense

580

332

1,015

537

     Interest income

(154)

(115)

(362)

(214)

     Income tax expense

404

81

320

27

EBITDA

2,642

(1,302)

(3,989)

(1,985)

Add/(less):

     Share-based compensation

692

568

2,267

1,226

     Fair value losses on derivative liabilities

1,567

5,123

     Fair value losses on convertible notes

480

991

3,007

1,992

     Other gains, net[4],[6]

(717)

(59)

(173)

(538)

     Convertible notes issuance cost[5]

44

     Net loss attributable to noncontrolling interests

403

103

1,097

437

     Share of losses from an equity investee

28

14

69

14

     Cost related to new business setup or acquisitions[7]

63

397

63

397

     Cost related to filing of Form F-3[8]

509

509

Adjusted EBITDA[7]

5,158

1,221

7,508

2,052

Adjusted net income/(loss) represents net loss before (i) share-based compensation, (ii) fair value losses on
derivative liabilities, (iii) fair value losses on convertible notes, (iv) other gains, net, (v) convertible notes issuance
cost, (vi) net loss attributable to noncontrolling interests, (vii) share of losses from an equity investee, (viii) cost
related to new business setup or acquisitions, and (ix) cost related to filing of Form F-3. There is no material tax
effects on these non-GAAP adjustments.

The table below sets forth a reconciliation of the Company’s adjusted net income/(loss) from net loss for the periods
indicated:

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

Net loss

(21)

(3,244)

(8,449)

(5,713)

Add/(less):

     Share-based compensation

692

568

2,267

1,226

     Fair value losses on derivative liabilities

1,567

5,123

     Fair value losses on convertible notes

480

991

3,007

1,992

     Other gains, net[4],[6]

(717)

(59)

(173)

(538)

     Convertible notes issuance cost[5]

44

     Net loss attributable to noncontrolling interests

403

103

1,097

437

     Share of losses from an equity investee

28

14

69

14

     Cost related to new business setup or acquisitions[7]

63

397

63

397

     Cost related to filing of Form F-3[8]

509

509

Adjusted net income/(loss)[6]

2,495

(721)

3,048

(1,676)

The diluted adjusted net income/(loss) per ADS for the periods indicated are calculated as follows:

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

Net loss:

(21)

(3,244)

(8,449)

(5,713)

Add: Non-GAAP adjustments to net loss[6]

2,516

2,523

11,497

4,037

Adjusted net income/(loss)[6]

2,495

(721)

3,048

(1,676)

Denominator for net loss per ADS – Weighted average

   ADS outstanding

74,804,895

57,021,120

69,590,308

56,700,646

Denominator for diluted adjusted net income/(loss) per

   ADS – Weighted average ADS outstanding

81,336,689

57,021,120

76,122,102

56,700,646

Diluted net loss per ADS

(0.0003)

(0.0569)

(0.1214)

(0.1008)

Add: Non-GAAP adjustments to net loss per ADS

0.0310

0.0443

0.1614

0.0712

Diluted adjusted net income/(loss) per ADS

0.0307

(0.0126)

0.0400

(0.0296)

[4] Other gains, net, have been adjusted out, except for amounts of US$766 thousand, US$381 thousand, US$1,215 thousand,
and US$674 thousand in relation to government grants for the three months ended June 30, 2020 and 2019 and for the six
months ended June 30, 2020 and 2019, respectively.

[5] Convertible notes issuance cost represents legal and professional fee for the issue of convertible notes.

[6] The comparative figures for the three months ended June 30, 2019 and six months ended June 30, 2019 were restated to
conform to the presentation of the figures for the same periods of 2020.

[7] Cost related to new business setup or acquisition represents transaction cost for setting up Thailand business and other
acquisitions, including audit, legal and professional fee.

[8] It represents cost related to the filing of Form F-3, such as audit, legal and professional fee.

 

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Bitauto Announces Second Quarter 2020 Results

By | EN, PR

BEIJING, Aug. 24, 2020 /PRNewswire/ — 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
[email protected]

Philip Lisio
Foote Group
Phone: +86-10-8429-9544
[email protected]

 

 

 

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/

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Ucommune and Orisun Entered Into Backstop Agreements for $53 Million Funding Including Investment From Green Better Limited, a Subsidiary of Xiaomi (HKEX: 1810), and Sunshine 100 China (HKEX: 2608)

By | EN, PR
  • Ucommune is the largest agile office space manager and co-working community operator in China. Its early investors include Sequoia Capital China, Matrix Partners China, Sinovation Ventures, and ZhenFund.
  • Ucommune and Orisun entered into a merger agreement in June 2020. The transaction is expected to close in Q4 2020.
  • On August 18, 2020, Ucommune and Orisun received $53 million of backstop investment commitments from 14 investors, including leading technology companies and prominent entrepreneurs in China.
  • Backstop investors have the option to either acquire Orisun’s common stock in open market purchases prior to the closing of the business combination, or to purchase common shares in a private placement from the combined company at $10.10 per share at the time of the merger closing.

NEW YORK, Aug. 24, 2020 /PRNewswire/ — Orisun Acquisition Corp. ("Orisun") (NASDAQ: ORSN, ORSNU, ORSNW, ORSNR), a special purpose acquisition company, announced today that, together with Ucommune International Ltd, it has entered into backstop agreements with 14 investors. The investors agreed to invest no less than $53 million by either (i) acquiring Orisun’s common stock in the open market or in private transactions prior to the closing of the business combination at the then prevailing market price of the shares, or (ii) acquiring common shares in a private placement concurrently with the closing of the business combination at $10.10 per share.

"Securing the backstop commitment is an important milestone. It will allow us to execute our growth strategy and strengthen our market leading position," said Dr. Daqing Mao, founder of Ucommune Group Holdings Limited.

Wei Chen, Chairwoman of Orisun commented, "With the $53 million backstop investment commitment, we look forward to working with Ucommune team towards a smooth closing in Q4 2020."

About Ucommune

Founded in 2015, Ucommune has created a large-scale intelligent agile office ecosystem where its members can leverage its network to reach their full potential and collectively create maximum value. As of June 30, 2020, Ucommune had successfully built an agile office space network consisting of 185 (153 spaces in operation) spaces across 47 cities in Greater China and Singapore with approximately 28,700 enterprise members and 822,600 individual members. Ucommune’s offline agile office space services include self-operated models of U Space, U Studio and U Design, as well as asset-light models U Brand and U Partner.

About Orisun Acquisition Corp.

Orisun Acquisition Corp. is incorporated in the State of Delaware as a blank check company for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The Company’s efforts to identify a prospective target business have not been limited to a particular industry or geographic region.

Forward-Looking Statements

This press release contains, and certain oral statements made by representatives of Orisun, Ucommune, and their respective affiliates, from time to time may contain, "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Orisun’s and Ucommune’s actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "might" and "continues," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, Orisun’s and Ucommune’s expectations with respect to future performance and anticipated financial impacts of the business combination, the satisfaction of the closing conditions to the business combination and the timing of the completion of the business combination. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside the control of Orisun or Ucommune and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the share exchange agreement relating to the proposed business combination; (2) the outcome of any legal proceedings that may be instituted against Orisun or Ucommune following the announcement of the share exchange agreement and the transactions contemplated therein; (3) the inability to complete the business combination, including due to failure to obtain approval of the shareholders of Orisun or other conditions to closing in the share exchange agreement; (4) delays in obtaining or the inability to obtain necessary regulatory approvals (including approval from insurance regulators) required to complete the transactions contemplated by the share exchange agreement; (5) the occurrence of any event, change or other circumstance that could give rise to the termination of the share exchange agreement or could otherwise cause the transaction to fail to close; (6) the inability to obtain or maintain the listing of the post-acquisition company’s ordinary shares on NASDAQ following the business combination; (7) the risk that the business combination disrupts current plans and operations as a result of the announcement and consummation of the business combination; (8) the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably and retain its key employees; (9) costs related to the business combination; (10) changes in applicable laws or regulations; (11) the possibility that Ucommune or the combined company may be adversely affected by other economic, business, and/or competitive factors; and (12) other risks and uncertainties to be identified in Orisun’s proxy statement (when available) relating to the business combination, including those under "Risk Factors" therein, and in other filings with the Securities and Exchange Commission ("SEC") made by Orisun and Ucommune. Orisun and Ucommune caution that the foregoing list of factors is not exclusive. Orisun and Ucommune caution readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Neither Orisun or Ucommune undertakes or accepts any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, subject to applicable law. The information contained in any website referenced herein is not, and shall not be deemed to be, part of or incorporated into this press release.

Important Information

Ucommune Group Holdings Limited ("Ucommune"), Orisun Acquisition Corp. ("Orisun"), Ucommune International Ltd, a wholly owned subsidiary of Orisun, and their respective directors, executive officers and employees and other persons may be deemed to be participants in the solicitation of proxies from the holders of Orisun ordinary shares in respect of the proposed transaction described herein. Information about Orisun’s directors and executive officers and their ownership of Orisun’s ordinary shares is set forth in Orisun’s Annual Report on Form 10-K filed with the SEC, as modified or supplemented by any Form 3 or Form 4 filed with the SEC since the date of such filing. Other information regarding the interests of the participants in the proxy solicitation will be included in the registration statement and proxy statement pertaining to the proposed transaction when they become available. These documents can be obtained free of charge from the sources indicated below.

In connection with the transaction described herein, Ucommune International Ltd has filed a registration statement on Form F-4 with SEC, which includes a preliminary proxy statement. Promptly after the registration statement is declared effective by the SEC, Orisun will mail the definitive proxy statement and a proxy card to each stockholder entitled to vote at the special meeting relating to the transaction. INVESTORS AND SECURITY HOLDERS OF ORISUN ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT ORISUN WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT ORISUN, UCOMMUNE AND THE TRANSACTION. The registration statement and proxy statement and other relevant materials in connection with the transaction (when they become available), and any other documents filed by Orisun with the SEC, may be obtained free of charge at the SEC’s website (www.sec.gov) or by writing to Orisun at 555 Madison Avenue, Room 543 New York, NY.

 

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Farmmi Receives Additional Customer Orders for Export to the U.S. and Canada

By | EN, PR

LISHUI, China, Aug. 24, 2020 /PRNewswire/ — Farmmi, Inc. ("Farmmi" or the "Company") (NASDAQ: FAMI), an agriculture products supplier in China, today announced its subsidiary Zhejiang Forest Food Co., Ltd., has received additional orders from an existing customer for its dried whole mushrooms and dried mushroom slices. The customer, a trading company, will export the mushrooms to the U.S. and Canada.

Ms. Yefang Zhang, Farmmi’s Chairwoman and CEO, commented, "Our commitment to ensuring premium food quality and safety across our supply chain continues to resonate with customers and help us win new and repeat orders. Demand for our mushrooms and broader agricultural product offerings is also benefiting from an increased global push for healthier food options. We believe we are well positioned to drive accelerated growth as we leverage our global trading platform, extensive supply chain relationships and many long-term customer relationships."

About Farmmi, Inc.

Headquartered in Lishui, Zhejiang, Farmmi, Inc. (NASDAQ: FAMI), is a leading agricultural products supplier, processor and retailer of Shiitake mushrooms, Mu Er mushrooms, other edible fungi, and many other sought-after agricultural products. The Company’s Farmmi Liangpin Market serves as a global trading platform for Chinese geographical indication agricultural products and is one of the largest platforms for consumers to access locally sourced agricultural products. For further information about the Company, please visit: http://ir.farmmi.com.cn/.

Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including the potential impact of COVID-19 on our business within and outside of China. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.

Related Links :

http://www.farmmi88.com

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Mercurity Fintech Holding Inc. Announces Appointment of Chief Financial Officer

By | EN, PR

BEIJING, Aug. 24, 2020 /PRNewswire/ — Mercurity Fintech Holding Inc. (the "Company" or "MFH") (Nasdaq: MFH) today announced that Mr. Erez Simha has been appointed as chief financial officer of the Company, effective August 24, 2020. Concurrently, Mr. Frank Zhigang Zhao has resigned as the chief financial officer of the Company for personal reasons.

Mr. Erez Simha brings to the Company rich experience in global finance, operations management and executive leadership in public companies, private companies and the road from private to public company Before joining MFH, he served as chief financial officer and chief operating officer of two private technology companies Roo Inc. from 2019 to 2020, and Just Inc. from 2017 -2019 where he directed all aspects of executive leadership. Prior to that, from 2004 to 2017, Mr. Erez Simha held senior leadership positions at two Nasdaq-listed companies: SSYS Ltd. (Nasdaq: SSYS) as company global COO and CFO and Orbotech Ltd. (Nasdaq: ORBK) as Company CFO. During Mr. Simha’s careers executive management with various global technology companies, mainly in hyper growth environment, he has assumed broad responsibilities in all aspect of global finance, Global operations, M&A, IT infrastructure, Human resources, SEC reporting, Sarbanes-Oxley compliance, risk management, operational excellence, legal and investor relations. Mr. Simha received his bachelor’s degree in economics and accounting and master’s degree in business administration and finance from Tel Aviv University. He is a certified public accountant.

Ms. Alva Zhou, Chairperson of the Board of Directors and Chief Executive Officer of the Company, commented, "We are delighted to welcome Mr. Erez Simha to join the Company. His extensive executive leadership and financial and operational management experience will make a strong impact to the Company as we focus our business to provide blockchain-based digital asset infrastructure solutions services. We are thankful for Mr. Frank Zhigang Zhao’s many years of dedication and service to the Company and wish him success in his future endeavors."

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 "aim," "anticipate," "believe," "estimate," "expect," "hope," "going forward," "intend, " "ought to, " "plan, " "project," "potential," "seek," "may," "might," "can," "could," "will," "would," "shall," "should," "is likely to" and the negative form of these words and other similar expressions. Among other things, statements that are not historical facts, including statements about the Company’s beliefs and expectations are or contain 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 is based on assumptions that the Company believes to be reasonable as of this date, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Contact:

Xingyan Gao
Mercurity Fintech Holding Inc.
[email protected]
Tel: +86 (10) 5360 6428 

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Daqo New Energy Announces A Long-Term High-Purity Polysilicon Supply Agreement with Wuxi Shangji Automation

By | EN, PR

SHIHEZI, China, Aug. 24, 2020 /PRNewswire/ — Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy", the "Company" or "we"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced that it signed a long-term high-purity polysilicon supply agreement with Wuxi Shangji Automation (SSE: 603158) ("Shangji"), a leading high-end intelligent equipment provider for manufacturing industries including the solar PV industry. Shangji started its mono-wafer manufacturing business in 2019 and has quickly been recognized as a high-quality mono-wafer provider. 

Under the supply agreement, Daqo New Energy will provide Shangji with high-purity mono-grade polysilicon in a total amount of 21,600 ~ 32,000 MT with 2,400 ~ 3,200 MT in the period from September to December 2020, 9,600 ~ 14,400 MT in 2021 and 9,600 ~ 14,400 MT in 2022. Actual prices will be negotiated by both parties on a monthly basis according to market conditions. As part of the supply agreement, Shangji will make an advance payment to Daqo New Energy.

Mr. Jianliang Yang, Chairman of Wuxi Shangji Automation, commented, "We are full of confidence in the consistent growth of the solar PV market and the fast growing demand for high-efficiency mono wafer products. We are very pleased to establish a strategic relationship with Daqo New Energy, one of the most important high-purity mono-grade polysilicon providers in the industry. We will continue to execute our capacity expansion plan in the mono-wafer sector, with Daqo New Energy as one of our key raw material providers, to produce more high-efficiency mono wafer products to address fast growing demand."

Mr. Longgen Zhang, Chief Executive Officer of Daqo New Energy, commented, "We are very excited to strengthen our partnership with Wuxi Shangji Automation, a very important new customer with a visionary strategy in the mono-wafer sector. Mono-crystalline solar products have already dominated the solar PV market thanks to their high-efficiency and competitive overall costs. We will continue to work closely with leading mono wafer manufacturers with our first-class quality and fast-growing capacity to make solar PV a cost competitive, clean, sustainable, and revolutionary energy resource."

About Wuxi Shangji Automation

Wuxi Shangji Automation Co., Ltd. (SSE: 603185), established in 2002, is a leading high-tech intelligent equipment and technology provider specialized in the R&D, design, integration, manufacturing and service of the cutting process of solar PV, sapphire and semiconductor materials. In 2019, Wuxi Shangji started its business in R&D and manufacturing of mono wafer, which is an intermediate product of widely used high-efficiency mono-crystalline solar PV modules.

About Daqo New Energy Corp.

Daqo New Energy Corp. (NYSE: DQ) ("Daqo" or the "Company") is a leading manufacturer of high-purity polysilicon for the global solar PV industry. Founded in 2008, the Company is one of the world’s lowest cost producers of high-purity polysilicon. Daqo’s highly-efficient and technically advanced manufacturing facility in Xinjiang, China currently has an annual polysilicon nameplate capacity of 70,000 metric tons.

For more information, please visit http://www.dqsolar.com 

Daqo New Energy Corp.
Investor Relations
Phone: +86-18716585553
Email: [email protected]

Christensen

In China
Mr. Rene Vanguestaine
Phone: +8617817490483
Email: [email protected]

In the U.S.
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: [email protected]

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 quotations from management in this announcement, as well as Daqo New Energy’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports 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. 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 demand for photovoltaic products and the development of photovoltaic technologies; global supply and demand for polysilicon; alternative technologies in cell manufacturing; the Company’s ability to significantly expand its polysilicon production capacity and output; the reduction in or elimination of government subsidies and economic incentives for solar energy applications; the Company’s ability to lower its production costs; and the duration of COVID-19 outbreaks in China and many other countries and the impact of the outbreaks and the quarantines and travel restrictions instituted by relevant governments on economic and market conditions, including potentially weaker global demand for solar PV installations that could adversely affect the Company’s business and financial performance. Further information regarding these and other risks is included in the reports or documents that the Company has filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date hereof, and the Company undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.

Related Links :

http://www.dqsolar.com

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Vakrangee Limited Publishes First Integrated Annual Report With Assurance From Independent Auditor Grant Thornton

By | EN, PR

MUMBAI, India, Aug. 24, 2020 /PRNewswire/ — Vakrangee Limited (VL) is proud to present its first Integrated Annual Report for FY2019-20 along with Assurance from Independent auditor Grant Thornton India LLP (GT).

The Vakrangee’s Board’s decision to seek Assurance reflects its determination to follow the principles of highest standards of corporate governance, as it works to build robust, transparent and effective reporting framework for its stakeholders. Assurance is also an effective tool for ensuring the company’s key stakeholders can have confidence in the company’s value creation story. For the Report, Vakrangee has adopted the Integrated Reporting <IR> framework of the International Integrated Reporting Council (IIRC).

Commenting on same, Mr. Dinesh Nandwana, MD & CEO said, "We are pleased to present our first Annual Integrated Report. This year, we have reinforced our belief of service through a holistic and thriving viewpoint of ‘value’. It provides us an opportunity to understand on what the organisation is doing and what it needs to do to recalibrate and align itself with the expectation of its stakeholders."

"In Integrated Report, we aim to present how Vakrangee creates and sustain value for all its stakeholders through expanding network, new partnerships, leveraging technology or supporting employees across the country. We have mapped our Business strategy with the sustainability initiatives along with the United Nation’s Sustainable Development Goals. The UN SDG goals are interconnected, and we intend to implement them in order to make the world a better place."

"While we are proud of the achievement, we also recognise that we have a lot more to do. As part of our culture of continuous improvement, we will continue to strive for even better report and disclosures in years to come."

The Reporting Framework is aligned to leading frameworks. It adheres to reporting requirements of Companies Act, 2013 and rules thereunder, the Securities Exchange Board of India (SEBI), Indian Accounting Standards (IndAS), the Global Reporting Initiative (GRI), the National Voluntary Guidelines (NVGs) for Business Responsibility Report (BRR) and UN-Sustainable Development Goals (UN-SDGs).

About Vakrangee Limited (BSE Code: 511431) (NSE Code: VAKRANGEE)

Vakrangee is a unique technology driven company focused on building India’s largest network of last-mile retail outlets to deliver real-time BFSI, ATM, E-Commerce and logistics services to the unserved rural, semi-urban and urban markets. (www.vakrangee.in)

Media Contact:
Ammeet Sabarwal
Chief Corporate Communications & Strategy Officer
[email protected]   
Ph no: 02267765100
Vakrangee Limited – www.vakrangee.in 

 

Related Links :

http://www.vakrangeesoftwares.com/

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TCL Brings Newest Intelligent Processor to IFA 2020 with Theme of #SwitchOnPossibility

By | EN, PR

Come experience TCL’s AIxIoT lifestyle with intelligent advancement, impressive overview of smart connected home devices and highly anticipated sponsorship announcements

HONG KONG, Aug. 24, 2020 /PRNewswire/ — TCL Electronics (1070.HK), one of the dominant players in the global TV industry and a leading consumer electronics company who has launched assorted QLED TVs in 2020 with a mission to make life Intelligent with innovative technology, will arrive at IFA 2020 Global Press Conference (GPC) with the newest intelligent audiovisual processor among a full range of smart home appliances and highly anticipated sponsorships under a theme of "Switch on Possibility".


Already a fast-growing consumer electronics brands thanks to its advanced TV solutions, awarded soundbars, smart MDA products and preferred mobile devices driven by the on-going AIxIoT strategy, TCL continues to improve and push the boundary of its display and audio technology to offer users supreme entertainment experience in a more connected and engaging way. TCL will raise the bar once again and unveil an intelligent audiovisual processor at IFA 2020 Global Press Conference on 3 September 2020 where media and industrial attention will be drawn.

"At IFA 2020, we will witness the power of intelligent technology as a tool to unite, educate and share during challenging times. The industry has grown and adapted together with consumers as we discover new and innovative ways to stay connected. Moving forward we are committed to providing the best smart products and services to global users," said Kevin Wang, CEO of TCL Industrial Holdings and TCL Electronics.

TCL’s IFA2020 announcements will take place at Messedamm 22, 14055 Berlin and be livestreamed at https://www.tcl.com/exhibition/ifa2020.html

TCL IFA 2020 Global Press Conference:

Date: 3 September 2020
Time: 1:00pm – 1:45pm (CEST)
Live at: Messedamm 22, 14055 Berlin or https://www.tcl.com/exhibition/ifa2020.html

Social Media Updates:

Facebook – @tclTV
Twitter – @TCL_TV_Global
Instagram – @tclelectroincs
YouTube – @TCL Electronics

About TCL Electronics

TCL Electronics (1070.HK) is a fast-growing consumer electronics company and leading player in the global TV industry. Founded in 1981, it now operates in over 160 markets globally. According to Sigmaintell, TCL ranked 2nd in the global TV market in terms of sales volume in 2019. TCL specializes in the research, development and manufacturing of consumer electronics products ranging from TVs, audio and smart home appliances.

Photo – https://photos.prnasia.com/prnh/20200824/2895163-1?lang=0

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Greeting China Social E-Commerce Explosive Growth, WeTrade Group is Ready for New Challenges

By | EN, PR

BEIJING, Aug. 24, 2020 /PRNewswire/ — WeTrade Group INC (US: WETG) ("WeTrade Group" or "the Company"), a company providing technical services and solutions to membership-based social e-commerce platform through big-data, social recommendation relationships, multichannels App data statistics, etc., today announced that because experts believe that social e-commerce will become a new growth approach of the online economy to unleash people’s consumption desire, so WeTrade Group looks forward to experiencing an opportunity for explosive growth.

It is destined to be an extraordinary year as the booming prosperity has been affected severely. The sudden outbreak of the pandemic has caused a huge impact on the domestic and international economy. Crowded people avoided from going to the shopping mall and tourist spots are closed or have limitations on attendance, numerous small and medium-sized enterprises have to declare bankruptcy due to the worse revenue. In the first quarter of 2020, China’s retail sales of consumer goods dropped to RMB 7.858 trillion, decreased sharply by 19% year-on-year, according to data released by China’s National Bureau of Statistics.

At the same time, consumers’ lifestyle has also undergone a dramatic change, and even people who had never shopped online before have learned to buy everything online. Affected by the pandemic, the proportion of online consumption in China’s economy is getting higher and higher, pushing e-commerce platforms to think out of the traditional way and to seek for upgrading. It can be seen that not only some emerging social e-commerce platforms, but also e-commerce giants have joined the social e-commerce trend to seize the opportunity.

At present, the social e-commerce industry has formed three kinds of business mainly, including WeChat social community micro-business, burgeoning social e-commerce platforms and the challenges from traditional e-commerce giants. Meanwhile the social e-commerce has developed to the third phase.

The development of group buying platforms is repesented by Pinduoduo; the development of social + e-commerce model platforms is repesented by Yunji. With the change of the industry and the upgrading of mass consumption, the social e-commerce technology service platform represented by WeTrade Group has been formed in recent years. Relying on its own advantages and keen perception of the market, WeTrade Group has grown rapidly and gained recognition from the market.

WeTrade Group provides technical services and solutions as a listed SaaS business to support micro-business online stores and social e-commerce platforms. Through big-data, social recommendation relationships and multichannel APP data statistics, the Company developed a social e-commerce revenue management system in 2019. The main functions of the system are user marketing relationship implementation, CPS commission profit management, multichannel APP data statistics, etc.

China social e-commerce has been marketing, the transaction scale has surpassed RMB 1 trillion, becoming a significant and high growth market. According to the 2019 China Social E-Commerce Development Report, issued by China Internet Association, the size of 2019 social e-commerce’s market is expected to surpass two trillion RMB this year, increased by 63.2% year-on-year, demonstrating the rapid development and the tremendous potential. Benefiting from the e-commerce prosperity, in 2019, WeTrade Group has developed rapidly with its core revenue management system "WePay" in the Chinese market. WeTrade Group leverages its technology and premium services to cooperate with other platforms in China, including Yuetao APP, Daren APP, JD zhiding APP, Lvyue APP, Yuebei APP, etc., covering retail, tourism, hospitality and beauty industries and operating in Mainland China, Hong Kong SAR, Singapore and other regions.

The severe hitting of offline economy by the pandemic has affected users’ consumption concept. Even industries have fully resumed work and production, the relevant data show that people’s suppressed consumption desire has not been unleashed fully, for dining out and shopping as well as going to movie theaters, and tourist spots. Therefore, experts believe that social e-commerce will become a new growth approach of the online economy to unleash people’s consumption desire. In addition, as a company providing SaaS technology services and solutions for membership social e-commerce, WeTrade Group looks forward to experiencing an opportunity for explosive growth.

About WeTrade Group Inc.

WeTrade Group Inc. provides technical services and solutions based on membership social e-commerce. Through big-data, social recommendation relationships, multichannel APP data statistics, etc., the Company developed a social e-commerce revenue management system, The main functions of the system are user marketing relationship implementation, CPS commission profit management, multichannel APP data statistics, etc. the system has been applied in the retail, tourism, hospitality and beauty industries, focusing on 100 million micro-business users in China. WeTrade conducts its business operations in mainland China and trial-operations in Hong Kong SAR, and Singapore etc.

For more information and product demos:
http://www.wetradegroup.net

 

Related Links :

http://www.wetradegroup.net

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Future FinTech Enters into Letter of Intent (“LOI”) with Asen Tech Group Limited

By | EN, PR

BEIJING, Aug. 24, 2020 /PRNewswire/ — Future FinTech Group Inc. (NASDAQ: FTFT) ("Future FinTech", "FTFT" or "the Company"), a leading blockchain e-commerce company and a service provider for financial technology, today announced it entered into a SHARE EXCHANGE Letter of Intent ("LOI")  with Asen Tech Group Limited on Aug 18 , 2020.

Pursuant to the LOI, the Company’s 100% owned subsidiary, DigiPay FinTeh Limited (BVI), plans to acquire 60% equity interest in Asen Maneuvre Group Limited (BVI) in Indonesia ("Asen") from Asen Tech Group Limited. Through this acquisition, FTFT will obtain the Indonesian OJK and KSP financial licenses and enter into the financial technology business in Indonesian. The LOI is non-binding except for the "Confidentiality and Exclusivity" and "Applicable Law and Dispute Resolution" sections.

Asen owns an OJK Fintech Lending license and a Koperasi Simpan Pinjam financial license, which are issued by Indonesian Financial Services Authority, Indonesian Ministry of Law and SME Regulatory Authority, respectively. Asen develops consumer finance business in Indonesia, through cooperation with Shopee, Tokopedia, Lazada, Bukalapak and other e-commerce companies. It provides loan services for consumers with its online service platform and currently has more than 3 million registered members of which more than 1 million are active members.

According to the LOI, the acquisition price for 60% equity interest of Asen is expected to be approximately US$5.4 million. FTFT plans to issue approximately 2.16 million shares of its Common Stock to Asen Tech Group Limited for the acquisition price. The acquisition also expects to have an earn-out clause based on Asen’s performance for the next two years, which will require Asen to achieve a pre-tax profit for no less than $1 million and $1.4 million in 2020 and 2021, respectively, in order to receive the full share payment.

FTFT is determined to implement its transformation strategy and enter into the financial technology industry. It entered into a Share Exchange Agreement on July 13, 2020 to acquire 90% ownership of Nice Talent Asset Management in Hong Kong, which is expected to close in the next couple weeks. The Company plans to improve the customers’ experience in the consumer investment and financial management industry through the use of online platform whilst also saving costs and improving the company’s profitability.

Shanchun Huang, CEO of FTFT stated: "Asen has a strong financial and banking background, and has a solid business foundation in the Indonesian market. I believe that the Indonesian market with a population of 260 million will provide us with growth opportunities. It will also provide us with the experience we need to enter and compete in other Southeast Asia markets."

Xujun Ji, Chairman of Asen, said: "We have the same vision and mission as FTFT. We believe that the challenger banking and online service fields that FTFT plans to enter into will become a competitive advantage for our consumer finance business and provide better service to our customers."

About Future FinTech Group Inc.

Future FinTech Group Inc. ("Future FinTech", "FTFT" or the "Company") is a leading blockchain e-commerce company and a service provider for financial technology incorporated in Florida. The Company’s operations include a blockchain-based online shopping mall platform, Chain Cloud Mall ("CCM"), a cross-border e-commerce platform (NONOGIRL), an incubator for blockchain based application projects and technical service and support for real name and blockchain based assets and their operating entities "DCON". The Company is also engaged in development of blockchain based e-Commerce technology as well as financial technology. For more information, please visit http://www.ftftex.com/.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2019 and our other reports and filings with SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC’s Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

Related Links :

http://www.ftftex.com

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