99 Wuxian Limited Under Our Radar For ‘Everything App’

What’s this “Everything App”: There are many applications which have been doing the rounds on many media platforms since last year and have been known by the name of ‘Everything app’. One such application was identified in the food delivery segment in China wherein Meituan Dianping (a known food delivery company) was cited to raise an amount through IPO in relation to the app. But there is another application by the same name that finds some connection with Australian listed entity i.e. 99 Wuxian Limited (ASX: NNW) and appears to serve as a one-stop shop for many services but in a completely different sector. It can be said that the market participants are optimistic about the “Everything app.” The app appears to be under the umbrella of 99 Marketplace which happens to be one of the business offerings of 99 Wuxian Limited. 99 Marketplace happens to help users that utilise mobile applications of the financial institutions and it also gives precision marketing, comprehensive digital product mix as well as one-stop services. Even though the information about “Everything app” is limited, it seems like it would substantially support the daily activities.

99 Marketplace helps in the reduction of the expenses as well as it enhances efficiency. Moreover, it also helps in building the scale.

Robust Rise Witnessed in Revenues: In the six months ended June 30, 2018, 99 Wuxian Limited garnered revenues amounting to RMB 54,846,122 which implies the rise of 33% on the YoY basis because of the robust momentum in the revenues related to employee benefit redemption as well as rewards redemption business. However, marginal rise with regards to the commission rates as well as average transaction value or ATV also contributed to the YoY revenue growth. The company’s loss from the ordinary operations post income tax expense witnessed a fall of 46% in six months ended June 2018 to RMB 12,299,423 from RMB 22,825,887 witnessed in the six months ended June 2017 reflecting that the company has been efficient in managing the operations.


99 Marketplace (Source: Company Reports)

Look at Quarterly Cash Flow Report: 99 Wuxian had earlier released the cash flow report for the September 2018 quarter. As per the report, the company possesses cash balance amounting to RMB86.2 million as of December 2018 quarter and, during the same period, it witnessed net cash outflow from operating activity amounting to RMB49.34 million. The company witnessed cash outflow largely because of borrowings’ repayment with regards to financing activities. The company witnessed favourable momentum with respect to the engagement of the users as well as registered users. At the end of September 2018 quarter, the registered clocked in at 80.0 million which implies the rise of 1.1% as compared to the September 2018 quarter.

Today, 99 Wuxian Limited closed the session in red as the stock price closed at A$0.120 per share implying the fall of A$0.010 per share or 7.692%. The market capitalisation of 99 Wuxian Limited stood at ~$150.76 million. Talking about the past performance of the company’s stock, in the past three months, the stock had delivered the return of 56.63% while in the previous one month, it had delivered 38.30% return.  
 

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