CoAssets Reports Q4, Fiscal Year End Results

CoAssets Limited  (ASX: CA8), a crowdfunding platform specializing in facilitating funding for real estate and small to medium-sized enterprises, reported its financial results for the fourth quarter of fiscal year 2016, ended 30 June 2017. CoAssets said that Q4 was a break even quarter and the company ended with a “healthy cash balance of S$1.9 million.

CoAssets said that cost reductions improved results. Net cash used in operating activities by CoAssets decreased by 17.9% from S$1.29 million for the quarter that ended on 31 March 2017 to S$1.06 million for the quarter that ended on 30 June 2017. This was largely in part due to a staff reduction that saw a drop of 37% from S$756,000 to S$476,000.

Additionally, CoAssets said it channeled S$5.07 million into corporate loans. The fees and accrued interests from these loans increased the Company’s revenue.

Recent corporate events include the shift into Hong Kong with a $9.8m investment to grow “Piggiebank”, an online platform that provides investment opportunities to registered users in Hong Kong.

CoAssets reported that Da Xiang Bing (DXB), a Chinese product crowdfunding platform that CoAssets invested in, has registered another quarter of strong user growth, increasing by 309.61% from 42,248 to 173,054. CoAssets is continuing to invest in its Chinese operations, through the collaboration with Joint Venture partner, the Linca Group.
the quarter, the number of registered users on the Australian platform remained at 2,337.

Overall, CoAssets said it increased the number of registered users across the Group by 75% (from 131,162 to 230,541), with China registering a strong growth of 309.61%.

Getty Goh, CEO and Co-Founder of CoAssets, commented on the results;

“We are pleased with our results. This is a quarter of change for us as we expand our services and start working with strategic partners to offer corporate loans. Coupled with strict cost control, the group managed to turn things around and break-even for the quarter via accrued interest income and referral fees, from the corporate lending business. This is a very encouraging development as it shows that we have the right team in place. At the same time, it also adds as a boosted confidence for our investors that CoAssets is operating a viable business.”

During the last half of the year, CoAssets said it would roll out new initiatives to continue to grow the user base, refresh its platform, as well as offer new products to investors and borrowers.

“With revenue growth and strict expense control the cash balance is deemed to be sufficient to sustain the company’s business activities.”

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