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Wowo Limited Reports Second Quarter 2016 Unaudited Financial Results
Second Quarter 2016 Highlights
- Revenues in the second quarter of 2016 were
$56.1 million, an increase of 26.8% from $44.3 millionin the first quarter of 2016.
- Gross loss was
$45,000in the second quarter 2016, improved from $156,000in the first quarter of 2016.
- B2B online platform recorded gross billing of
RMB1,598 million( US$240 million) in the second quarter of 2016, measured in terms of gross merchandise value (“GMV”).
- Active customer accounts reached 32,775 as of
June 30, 2016.
- Third-party sellers on the Company’s
JMUonline marketplace reached 14,085.
“Also during the second quarter, we changed our ticker to ‘JMU’ to better reflect the direction of our company as a leading B2B online e-commerce platform operating in China’s foodservice industry and also relocated our headquarters to a larger facility located in
Recent Corporate Highlights
July 2016, the Company relocated its corporate headquarters to Bay Valley, Shanghai.
- In July, JM Wowo’s consolidated affiliated entity in
China, Shanghai Zhongmin Supply Chain Management Co., Ltd., is among the first group of 94 Shanghai-based trading companies that received the ‘Regional Headquarters Certificate’ from the Shanghaigovernment, recognizing it as one of the key trading companies headquartered in Shanghai.
- In July, the Company entered into a strategic partnership with
Chongqing Haier Home Appliance Sales Co., Ltd. ShanghaiBranch. JM Wowo customers can purchase a full line of Haierproducts with supporting services on JM Wowo’s online marketplace.
July 18th, the Company entered into a strategic cooperation agreement with Taetea Group, a leading tea company that produces, distributes and sells Pu’er tea with over 2,200 retail outlets in Asia.
Second Quarter 2016 Financial Performances
As previously announced, in
Cost of revenues was
Gross loss for the second quarter of 2016 was
Selling and marketing expenses in the second quarter 2016 increased 29.4% to
General and administrative expenses in second quarter 2016 were
Loss from operations in the second quarter of 2016 was
Net loss attributable to the Company in the second quarter of 2016 was
Note 1: Non-GAAP measures
To supplement our consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), we use various non-GAAP financial measures that are adjusted from results based on U.S. GAAP to exclude amortization of acquired intangible assets, impairment of goodwill and related provision for income tax benefits.
Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.
Our non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the historical and current financial performance of our continuing operations and our prospects for the future. Our non-GAAP financial information should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for or superior to U.S. GAAP financial results. In addition, our calculation of this non-GAAP financial information may be different from the calculation used by other companies, and therefore comparability may be limited.
Our non-GAAP information (including non-GAAP loss from operations and net loss attributable to the Company) which is adjusted from results based on U.S. GAAP to exclude amortization of acquired intangible assets, impairment of goodwill and related provision for income tax benefits. A limitation of using these non-GAAP financial measures is that amortization of acquired intangible assets, impairment of goodwill and related provision for income tax benefits have been and may continue to be for the foreseeable future significant recurring expenses in our results of operations. We compensate for these limitations by providing reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures. Please see the reconciliation tables at the end of this earnings release.
About JM Wowo
JM Wowo currently operates China’s leading B2B online e-commerce platform that provides integrated services to suppliers and customers in the catering industry. With the help of Internet and cloud technologies, JM Wowo has the vision to reshape the procurement and distribution pattern and build a fair business ecosystem in the catering industry in
Through cooperation with national and local industry associations and reputable restaurant groups across
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”, “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 JM Wowo’s beliefs and expectations, the business outlook and quotations from management in this announcement, as well as JM Wowo’s strategic and operational plans, 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, including but not limited to the following: The general economic and business conditions in
|Unaudited Condensed Consolidated Statements of Operations|
|(US dollars in thousands, except share number and per share data)|
|Three months ended|
|March 31, 2016||June 30, 2016|
|Cost of revenues||44,419||56,179|
|Selling and marketing||1,650||2,135|
|General and administrative||3,041||3,469|
|Total operating expenses||4,691||5,604|
|Loss from operations||(4,847||)||(5,649||)|
|Other expenses, net||0||0|
|Loss before provision for income taxes||(4,834||)||(5,644||)|
|Provision for income tax benefits||540||540|
|Net loss attributable to Wowo Limited||(4,294||)||(5,104||)|
|Net loss attributable to holders of ordinary shares of Wowo Limited||(4,294||)||(5,104||)|
|Net loss per ordinary shares|
|Weighted average shares used in calculating net loss per ordinary shares|
|Unaudited Condensed Consolidated Balance Sheets|
|(US dollars in thousands)|
|December 31,||June 30,|
|Cash and cash equivalents||11,152||3,633|
|Accounts receivable, net||3,748||2,689|
|Prepaid expenses and other current assets||25,282||25,318|
|Amounts due from related parties||807||568|
|Total current assets||41,083||33,669|
|Property and equipment, net||478||1,684|
|Acquired intangible assets, net||50,563||42,144|
|Other non-current assets||-||-|
|Accrued expenses and other current liabilities||19,971||18,100|
|Advance from customers||828||1,817|
|Amounts due to related parties||320||1,477|
|Total current liabilities||24,950||25,768|
|Other non-current liabilities||502||502|
|Deferred tax liabilities-non-current||12,641||10,536|
|Additional paid-in capital||630,470||630,470|
|Accumulated other comprehensive (loss)/income||908||(9,566||)|
|Total Wowo Limited shareholders' equity||304,681||284,809|
|Total liabilities and equity||342,774||321,615|
|Reconciliation of Non-GAAP financial measures to comparable GAAP measures|
|(US Dollars in thousands)|
|Three Months Ended|
|March 31, 2016||June 30, 2016|
|Loss from operations||4,847||5,649|
|Net loss attributable to Wowo Ltd.||4,294||5,104|
|Amortization of acquired intangible assets||2,159||2,161|
|Impairment of goodwill||-||-|
|Provision for income tax benefits||(540||)||(540||)|
|Non-GAAP loss from operation (a)||2,688||3,488|
|Non-GAAP net loss attributable to Wowo Ltd.(a)(b)||2,675||3,483|
|(a) Adjustment to exclude amortization of acquired intangible assets|
|(b) Adjustment to exclude provision for income tax benefits|
Lichao Zhao, IR Director Wowo Limitedzhaolichao@ccjmu.com Tel: +86-183 2119 5582 Bill Zima ICR Inc.email@example.com Tel: +1(203)-682-8200