omniture

Cogobuy Announces 2015 Fourth Quarter and Annual Results

Cogobuy Group
2016-03-23 11:37 2059

HONG KONG, March 23, 2016 /PRNewswire/ --

Highlights of the annual results for the year ended December 31, 2015:

  • The Group's Gross Merchandise Value ("GMV") was RMB13.9 billion, an increase of 65.5% year-on-year ("YoY")
  • Online transaction customers[1] as at December 31, 2015 reached 10,131, up 100.6% YoY
  • Non-GAAP profit attributable to equity shareholders[2] of the Company was approximately RMB386.4 million, up 44.7% YoY
  • INGDAN.com platform registered over 7.4 million followers and more than 9,700 IoT project entries

Highlights of the fourth quarter of 2015 ended December 31, 2015:

  • The Group's GMV was RMB4,347.2 million, an increase of 66.7% YoY
  • Non-GAAP profit attributable to equity shareholders[2] of the Company was approximately RMB104.5 million, up 28.1% YoY

Cogobuy Group ("Cogobuy" or the "Company", stock code: 400.HK; with its subsidiaries (the ''Group'')), the largest e-commerce platform serving the electronics manufacturing industry in China, is pleased to announce its unaudited operation summary for the fourth quarter and audited consolidated results for the year ended December 31, 2015 (the "Period").

Full Year 2015 Financial Highlights

During the Period, the Company's three major businesses achieved robust growth. The total GMV of the Company's operations was approximately RMB13.9 billion, representing an increase of 65.5% YoY; with 67.5% derived from direct sales value, 21.7% from transaction value in online marketplace and 10.8% from loan value in supply chain financing business. In total, 40.9% of the GMV of our direct sales value was derived from blue chip customers while 59.1% was derived from small and medium enterprise ("SME") customers.

During the Period, increasing numbers of new customers, mainly from SMEs, contributed to the strong results. As at December 31, 2015, the number of online transaction customers[1] reached 10,131, of which approximately 1.6% are blue chip customers and 98.4% are SME customers. This was an increase of 100.6% from 5,050 as at December 31, 2014. The number of registered customers reached 52,016, an increase of 65.0% from 31,528 as at December 31, 2014.

During the Period, the Company recorded total revenue of RMB9,453.4 million, representing a YoY increase of 38.0%. Profit attributable to equity shareholders of the Company grew significantly to approximately RMB342.9 million, a YoY increase of 76.6%. Non-GAAP profit attributable to equity shareholders[2] of the Company was approximately RMB386.4 million. Earnings per share was RMB0.257. Non-GAAP earnings per share was RMB0.290. During the Period, the Company generated positive operating cash flow of approximately RMB349.7 million.

Fourth Quarter 2015 Financial Highlights

For the three months ended December 31, 2015, the Company's total GMV was RMB4,347.2 million, representing an increase of 66.7% YoY; with 61.2% derived from direct sales, 26.4% from online marketplace platform, and 12.4% from the supply chain financing business line. In total, 43.0% of the GMV was derived from blue chip customers while 57.0% was derived from SME customers.

INGDAN.com, the Company's full service Internet of Things ("IoT") platform for supply chain services, has attracted many new customers and generated good results during the Period. As at December 31, 2015, INGDAN.com attracted over 7.4 million followers and more than 9,700 IoT project entries. GMV contributed by the INGDAN.com platform was RMB376.8 million, 8.7% of the total GMV. As at March 14, 2016, the platform registered more than 7.5 million followers and over 10,400 IoT project entries.

For the three months ended December 31, 2015, the Company recorded total revenue of RMB2,679.7 million, a YoY increase of 30.5%. Gross margin improved to 8.1. Improvement in gross margin was due to growth in percentage of service revenue provided by our marketplace business and supply chain financing business. Net profit attributable to equity shareholders of the Company grew significantly to approximately RMB88.3 million, a YoY increase of 21.8%. Non-GAAP profit attributable to equity shareholders[2] of the Company was approximately RMB104.5 million, a YoY increase of 28.1%. Non-GAAP operating expenses[3] were RMB87.7 million. Non-GAAP operating margin[4] was 4.8%. The Group's effective tax rate was 14.2% and its non-GAAP effective tax rate[5] was 12.8%.

For the three months ended December 31, 2015, the Group generated positive operating cash flow of approximately RMB178.6 million. Cash and cash equivalents and pledged deposits amounted to RMB2,271.2 million. Inventory turnover days[6] and trade receivables turnover days[7] were 25.6 days and 39.1 days, respectively.

Business Highlights

  • In November 2015, Cogobuy was selected as a constituent stock of the Hang Seng Shenzhen Hong Kong Index and Hang Seng Shenzhen Hong Kong Information Technology Index. In March 2016, Cogobuy was also chosen as a constituent stock of the Hang Seng Composite LargeCap & MidCap Index. The inclusions make Cogobuy's shares eligible for the Shanghai-Hong Kong Stock Connect scheme, which will further diversify the Company's shareholder base.
  • INGDAN.com has established as the largest intelligent hardware innovation platform in China after two years development. Cogobuy participated in several key industry events including the Maker Faire Rome 3rd European Edition, Hong Kong's Startup Launchpad, and INGDAN.com's "Maker Fair - Projects Exhibition" in Hong Kong and overseas. The events helped establish key relationships to facilitate Cogobuy's overseas expansion and internationalization.
  • The launch of the IngDan Online Shop was the most significant step in closing the loop for INGDAN.com's intelligent hardware B2B2C model. Products featured on INGDAN.com can now reach consumers directly. The shop allows INGDAN.com to provide innovative startups with diversified sales channels in addition to its supply chain services. It also enables consumers to purchase the latest intelligent hardware products at attractive prices. The shop is expected to further support growth in the hardware sector.

Outlook

Mr. Jeffrey Kang, CEO of Cogobuy Group, said: "Despite both China and the global economy being shrouded in uncertainty, we are still very optimistic of our ability to deliver growth in 2016. The successful marketing efforts of INGDAN.com won us a large number of new customers. Last year, our client acquisition costs trended downward on higher market penetration and client conversion rates. On the other side, our platform's traction over SME also increased through the expansion of our supply chain financing business and the successful launch of 'Xinhuo +' strategic plan, which is intended to help bring traditional SME manufacturing online. In 2015, over 10,100 customers conducted online transactions with us. The number of online transaction customers at the beginning of 2016 increased by more than 100% from that recorded at the beginning of 2015. SME transactions also grew strongly which increased the proportion of SME sales to our income contribution. Rapid growth in the number of new customers and SMEs is an important growth driver that enables our business to maintain rapid development.

"Leveraging on our completed online transaction platform and huge customer base, we will continue to incorporate software, cloud-based services, supply chain financing and other corporate services for the IC components sector, and will build Cogobuy's capabilities as a true vertical sourcing industry platform for hardware products and services and a supply chain ecosystem for electronics manufacturing industry.

"INGDAN.com has already emerged as the largest intelligent hardware innovation platform in China. Our goal is for the site to become the world's largest platform serving intelligent hardware companies globally. We have already established a presence in global tech hubs, including the US, Hong Kong, Italy and Israel. Our goal is to help every startup around the world connect with the very best Chinese manufacturers. During this year, INGDAN.com will focus on implementing its monetization strategy. Meanwhile, we are also considering launching the process of seeking strategic investors who share our visionary strategy for the INGDAN.com platform. In addition to pushing forward our strategic plan for INGDAN.com's global intelligent hardware ecosystem, we believe INGDAN.com's fair market value will also be better reflected through the introduction of new strategic investment."


[1] 

Customers who had completed at least one online transaction during the current period and had completed at least one other online transaction in the previous fiscal year.

[2]

Non-GAAP net profit attributable to equity shareholders less share-based compensation costs, amortization of intangible assets and its related deferred taxation effect.

[3]

Total operating expenses less share-based compensation costs and amortization of intangible assets.

[4]

Non-GAAP operating margin is non-GAAP profit of the period divided by revenue for the period. Non-GAAP profit is gross profit less non-GAAP operating expenses of the period.

[5]

Non-GAAP effective tax rate is income tax expense less deferred taxation related to amortization of intangible assets divided by income before tax less share-based compensation costs and amortization of intangible assets.

[6]

The average of the opening and closing balances of inventories of the period divided by cost of sales of the period and multiplied by 92 days.

[7]

The average of the opening and closing balances of trade receivables for the period divided by revenue of the period and multiplied by 92 days.

Caution Statement

The information contained in this document has not been independently verified. No representation, warranty or undertaking, express or implied, is made by the Company or any of its affiliates, advisers or representatives as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions presented or contained herein. The information contained in this document should be considered in the context of the circumstances prevailing at the time, is subject to change without notice and the Company makes no undertaking to update the information in this document to reflect any developments that occur after the date of the presentation. It is not the Company's intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company, or its financial or trading position or prospects. Neither of the Company nor any of its affiliates, advisers or representatives accept any responsibility or have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.

This document may contain statements that reflect the Company's current intent, beliefs and expectations about the future as of the respective dates indicated herein. These forward-looking statements are not guarantees of future performance and are based on a number of assumptions about the Company's operations and factors beyond the Company's control and are subject to significant risks and uncertainties, and accordingly, actual results may differ materially from those described in these forward-looking statements. Neither the Company nor any of its affiliates, advisers or representatives has any obligation, nor do they undertake, to update these forward-looking statements for any events or developments including the occurrence of unanticipated events that occur subsequent to such dates.

About Cogobuy Group

Cogobuy Group is the largest e-commerce service platform serving the electronics manufacturing industry in China. Through the e-commerce platform, which includes a direct sales platform, an online marketplace, and a dedicated team of technical consultants and professional sales representatives, the Company provides customers with comprehensive online and offline services across pre-sale, sale, and post-sale stages. The Company serves mainly SME electronics manufacturers.

For further information, please refer to the Company's website at http://www.cogobuy.com

About INGDAN.com

INGDAN.com is a platform dedicated to connecting global intelligent hardware entrepreneurs and China-based supply chain resources. The platform provides information on hardware innovation, supply chain data, and supply chain demand docking for global IoT innovators and entrepreneurs. It is a one-stop hardware innovation business platform with its core being the "supply chain."

For further information, please refer to the Company's website at http://www.ingdan.com

FINANCIAL INFORMATION

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended December 31, 2015






December 31,

2015


December 31,

2014


RMB'000


RMB'000





Revenue

9,453,389


6,848,365

Cost of revenue

(8,688,638)


(6,315,247)





Gross Profit

764,751


533,118

Other revenue

24,813


6,383

Other net income/(loss)

1,043


(2)

Selling and distribution expenses

(151,597)


(97,879)

Research and development expenses

(55,874)


(41,815)

Administrative and other operating expenses

(129,697)


(131,640)





Profit from operations

453,439


268,165

Finance costs

(30,070)


(31,160)





Profit before taxation

423,369


237,005

Income tax

(56,888)


(27,035)





Profit for the year

366,481


209,970





Attributable to:




Equity shareholders of the Company

342,875


194,118

Non-controlling interests

23,606


15,852





Profit for the year

366,481


209,970





Other comprehensive income for the year, net of nil tax




Item that may be reclassified subsequently to profit or loss:




- Exchange differences on translation of financial statements of entities
  with functional currency other than Renminbi

34,680


10,840





Total comprehensive income for the year

401,161


220,810





Attributable to:




Equity shareholders of the Company

377,450


203,241

Non-controlling interests

23,711


17,569





Total comprehensive income for the year

401,161


220,810





Earnings per share




Basic (RMB)

0.257


0.168





Diluted (RMB)

0.253


0.166





 


UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE HKFRS MEASURES

For the year ended December 31, 2015 and 2014






For the

year ended

December 31,

2015


For the

year ended

December 31,

2014


RMB in million


RMB in million

Net income




GAAP profit attributable to Cogobuy Group

342.9


194.2

Share-based compensation expense

32.0


35.0

Amortization of intangible assets and related deferred taxation

11.5


6.3

Expenses in relation to Global Offering

--


31.6

Non-GAAP profit attributable to equity shareholders of Cogobuy Group

386.4


267.1










RMB


RMB

Earnings per share - basic




GAAP profit attributable to Cogobuy Group per share

0.257


0.168

Share-based compensation expense per share

0.024


0.030

Amortization of intangible assets and related deferred taxation per share

0.009


0.005

Expenses in relation to Global Offering per share

--


0.027

Non-GAAP profit attributable to equity shareholders of Cogobuy Group per share

0.290


0.230










RMB


RMB

Earnings per share - diluted




GAAP profit attributable to Cogobuy Group per share

0.253


0.166

Share-based compensation expense per share

0.024


0.030

Amortization of intangible assets and related deferred taxation per share

0.009


0.005

Expenses in relation to Global Offering per share

--


0.027

Non-GAAP profit attributable to equity shareholders of Cogobuy Group per share

0.286


0.228









CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at December 31, 2015






December 31,

2015


December 31,

2014


RMB'000


RMB'000

Non-current assets




Property, plant and equipment

5,653


1,635

Intangible assets

63,508


23,703

Goodwill

184,260


154,136

Available-for-sale investments

114,330


--

Other non-current assets

670


14,803


368,421


194,277





Current assets




Inventories

609,172


501,340

Trade and other receivables

1,430,191


748,507

Loans to third parties

276,754


208,629

Amount due from a related party

--


11,478

Short term deposits

11,000


11,000

Pledged deposits

1,246,977


742,152

Cash and cash equivalents

1,024,269


1,222,700


4,598,363


3,445,806





Current liabilities




Trade and other payables

749,574


565,564

Bank loans

2,125,876


1,411,424

Amount due to a related party

35,687


12,434

Current taxation

43,334


21,792


2,954,471


2,011,214





Net current assets

1,643,892


1,434,592





Total assets less current liabilities

2,012,313


1,628,869

Non-current liabilities




Deferred tax liabilities

10,762


3,912

NET ASSETS

2,001,551


1,624,957





CAPITAL AND RESERVES




Share capital

1


1

Reserves

1,921,199


1,603,149





Total equity attributable to equity shareholders

of the Company

1,921,200


1,603,150

Non-controlling interests

80,351


21,807

TOTAL EQUITY

2,001,551


1,624,957

Source: Cogobuy Group
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