Quarterly Cashflow Report for the Period Ending March 31, 2014
Shenzhen, April 24, 2014 AEST (ABN Newswire) - 99 Wuxian Ltd (
ASX:NNW) Quarterly Cashflow Report for the Period Ending March 31, 2014.
Item 1.1 As disclosed in the Appendix 4C for the December 2013 quarter, following payment of monies due to Shanghai Handpay Information & Technology Co. Ltd (Handpay) under the Handpay Services Agreement (refer to page 39 of the Company's Prospectus lodged with the ASIC on 23 August 2013) 99 Wuxian Ltd (the Company) secured beneficial entitlement to the net revenue earned from the operations of the 99wuxian.com mobile online marketplace (net revenue is defined to include Handpay's ongoing service fee of 10% of gross revenue).
The Company has commenced to generate cash from operations in its own right as some of the contracts with their business partners have been transferred from Handpay to the Company. However some of the Business Partners are significant Chinese enterprises so making changes to contracts will take some time. Handpay continues to collect those revenues on behalf of the Company. The Company's management believe that these transfers will not be completed until around the close of the June quarter of 2014. At that time the Company expects to have the five largest contracts transferred, together with many of the smaller contracts.
2. Item 1.2 During the time the matters referred to in note 1 above are being resolved, Handpay continues to fund some of the operational costs of the 99wuxian.com platform from revenue collected on behalf of the Company. These costs are identified in Handpay's records as belonging to the Company and will be deducted from amounts owed to the Company by Handpay. The Company has commenced to incur some costs directly, and these are the costs are disclosed at item 1.2. Amounts disclosed under Item 1.2 (e) are primarily purchases of items for supply to customers.
3. The definitions in, and provisions of, IAS 7: Statement of Cash Flows applies to this report except for any additional disclosure requirements requested by IAS 7 that are not already itemised in this report.
4. The Company has adopted accounting policies that comply with International Financial Reporting Standards (IFRS) and the figures in this report are prepared in accordance with all applicable IFRS. The figures disclosed in the report are in Chinese Renminbi (RMB), the official currency of The People's Republic of China, which is the home currency of the Company.
To view the quarterly cashflow report, please visit:
http://media.abnnewswire.net/media/en/docs/76973-ASX-NNW-793807.pdf
About 99 Wuxian Ltd
99 Wuxian Ltd (ASX:NNW) aggregates over 300 million high quality consumers and 155 leading merchants through a marketplace embedded within the mobile apps of China's leading banks, telecommunications and insurance companies. 99 Wuxian enables increased customer satisfaction, loyalty and retention for its business partners by offering consumers the lifestyle convenience of purchasing virtual and physical goods on a mobile device.
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