Cogobuy Group (Stock code: 400.HK), an e-commerce service platform for the enterprise procurement of electronics manufacturing industry in China, is pleased to announce its unaudited operation summary for the three months ended March 31st.
The total GMV of the Cogobuy’s operations was RMB2,491.0 million, representing an increase of 62.9% YoY; with 76.1% derived from direct sales, 16.3% from our online marketplace platforms and 7.7% from the new supply chain financing business line. In total, 52.0% of the GMV was derived from blue chip customers while 48.0% was derived from small and medium enterprise (“SME”) customers.
Cogobuy achieved robust growth driven by increasing numbers of new customers, mainly from SMEs as well as average GMV per customer growth. The number of online transaction customers reached 6,017 as at March 31, 2015, of which approximately 2.2% are blue chip customers and 97.8% are SME customers. This represents an increase of 91.6% as compared to that of 3,141 as at March 31, 2014. As at March 31, 2015, the number of registered customers reached 35,682, compare to 21,903 as at March 31, 2014.
Cogobuy recorded a total revenue of RMB1,906.4 million, representing an increase of 40.8% YoY. Net profit attributable to equity shareholders of the Company grew significantly to approximately RMB71.5 million, representing an increase of 188.3% YoY. Gross margin was 8.0%. Non-GAAP profit attributable to equity shareholders of the Company was approximately RMB77.0 million, representing an increase of 64.9% YoY. Non-GAAP operating expenses were RMB59.0 million. Non-GAAP operating margin was 4.9%. Effective tax rate of the Group was 13.0%.
Cogobuy also generated positive operating cash flow of approximately RMB41.2 million. Cash and cash equivalents and pledged deposits amounted to RMB1,871.5 million as at March 31, 2015. Inventory turnover days and account receivables turnover days were 30.5 days and 32.9 days respectively.
Looking forward, Jeffrey Kang, CEO of Cogobuy Group, revealed:
“Cogobuy Group is the largest e-commerce service platform for the enterprise procurement of China’s electronics manufacturing enterprise. By providing IC components procurement services, Cogobuy is addressing a market of more than 3 million electronic manufacturing SMEs. We believe the transaction based relations will enable us to establish an integrated procurement services platform, providing data collection and analysis, hardware, software, supply chain finance and other business related services.
“There are three key phases of building our full services platform: First, targeting the market of more than 3 million electronic manufacturers, we will continue to expand our customer base and maintain low new customer acquisition cost. As of the end of the first quarter, our transaction customers and registered customers growth rate were 91.6% and 62.9% respectively. Second, we will strive to further increase our GMV. While expanding customer base is an important driver for GMV growth, more service and product purchase from existing customers is also an important driver for sustainable growth.
“Our GMV in the first quarter of 2015 grew 62.9% YoY. Third, we will continue to explore new monetization opportunities. We believe the provision of more comprehensive services is an approach to increase profitability. The supply chain financing services, which launched in the third quarter last year, has recorded RMB191.2 million in GMV in the first quarter this year. Cogobuy’s supply chain financing business is a data driven Internet financing service mainly for SMEs underserved by commercial banks in China. We believe this new addition to our services will emerge as an important growth driver.
“We are confident in achieving our development goals for the year. The beginning of ‘Internet Plus’ age starts a new phase of business expansion for us, and for the development of both Internet and IoT startups. We remain open to working with other platforms. Together with companies like WeChat, Baidu, and JD.coms, we are devoted to building an intelligent hardware ecosystem with a focus on supply chain services and provide one-stop services to supply chain enterprises, from conceptual design to mass production.”