June Quarterly Trading Update
Hong Kong, July 22, 2014 AEST (ABN Newswire) - Leading Chinese mobile commerce company 99 Wuxian Limited (
ASX:NNW) ("99 Wuxian" or the "Company") is pleased to provide an update of trading for the June 2014 quarter.
99 Wuxian operates a mobile online market place, 99wuxian.com, in China, providing value-added application services to banks and merchants. The mobile online market place offers a variety of physical and virtual goods to consumers via a mobile banking application available on a smart phone or tablet.
99 Wuxian is a market leader in the Chinese business to business to consumer (B2B2C) m-commerce segment with more than thirty million registered users.
The Company has consistently produced strong results across all key performance indicators (KPI) of its operating performance since listing in October 2013. This was again demonstrated in the continued outperformance during the June 2014 quarter through impressive growth in all KPI's compared to the corresponding quarter last year.
---------------------------------------------------------- June 2013 June 2014 % increase Quarter/end Quarter/end--------------------------------------------------------- Registered users (RU) 20,770,686 31,086,568 49.67%---------------------------------------------------------Gross Transaction Value (GTV) (RMB) 586,178,122 1,700,166,038 190.04%*AUD 100,602,077 291,788,841 ---------------------------------------------------------Total number of Transactions (TNT) 4,685,664 5,507,048 17.53%---------------------------------------------------------Average Value per Transaction (AVT)(RMB) 125.10 308.73 146.79%*AUD 21.47 52.99 ---------------------------------------------------------99wuxian.com Platform Revenue (PR) (RMB) 26,356,698 40,414,149 53.34% *AUD 4,523,435 6,936,027 ---------------------------------------------------------
* RMB converted to AUD at 21 July 2014 using RMB 5.8267 = AUD 1.00
Registered Users (RU)
- Growth in registered users (RU) continues in accordance with an established trend.
- Growth over the last 12 months of almost 50% is an average of almost 2.5 million new RU's per quarter.
- Growth continues to be driven by a combination of new Business Partners joining the platform, and current Business Partners' promotional activities.
- Registered user growth for the June 2014 quarter increased by 49.67% compared to June 2013 quarter.
Gross Transaction Value (GTV)
- GTV for the June 2014 quarter was more than triple the June 2013 quarter.
- Growth of 190.04% was driven by the significant 49.67% increase in registered users and an increase in Average Transaction Value (ATV) of 146.79%.
- The Company's strategy to drive higher spend per RU from the existing user base is producing the desired result.
Total Number of Transactions (TNT)
- TNT averaged 60,517 per day for the June 2014 quarter, compared with 51,490 per day in the June 2013 quarter.
- Increase of 17.53% in TNT is a direct result of the company focusing on increasing ATV versus TNT.
Average Transaction Value (ATV)
- ATV for the June 2014 quarter of RMB 308.73 was an increase of almost 146.79% over ATV for the June 2013 quarter.
- A key growth strategy for 99 Wuxian is to deepen relationships with users, thereby lifting the ATV. This process is enhanced through the company's programs with Business Partners in data mining initiatives.
- The B2B2C business model provides the company with access to well qualified users which the company believes will continue to enhance the ATV.
99wuxian.com Platform Revenue (PR)
- Platform revenue grew by a pleasing 53.34% compared with the corresponding quarter in 2013.
- During the period, the company implemented a number of joint marketing initiatives with Business Partners which accounted for the disproportionately higher rate of growth in Gross Transaction Value compared to overall Platform Revenue.
The majority of promotional activities are conducted on a "variable cost" basis, which results in a reduced margin on GTV.
The Company remains focused on acquiring high quality users who are expected to incur strong annuity-like expenditure, as mobile commerce evolves in China. In order to support Business Partners who are paying the majority of fixed costs associated with customer acquisition, the Company believes the variable contribution to promotional costs represents a risk managed customer acquisition strategy to drive growth in registered users.
To view the release, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-NNW-807591.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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