NEW YORK, NY, Aug. 23, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Weyland Tech Inc. (WEYL) ("Weyland " or the "Company"), a provider of mobile business applications, today updates shareholders on its Q2 results and eWallet business.
Platform-as-a-Service Business Highlights:
Service Revenue has increased 36% year over year reaching $8,838,686 from $6,476,022 for the six months ended June 30, 2018 and 2017, respectively. Gross Margin remained healthy.
The quarter results contributed to a net loss of ($1,554,208) for the six months ended June 30, 2018 as compared to net profit $745,536 for the six months ended June 30, 2017. The $2.3M decrease in net income is the result of increased research & development costs associated with the AtoZPay platform, marketplace development associated with our DPEX relationship and integration of these same platforms with AtoZPay, legal and professional costs associated with the upcoming dividend and ongoing litigation as well as additional staff, travel cost, consultancy fee to support the start-up and expansion of the Indonesian business.
In emerging markets such as Indonesia, we expect that a cross-selling opportunity will develop over time to a growing merchant base there. In developed markets the potential exists for a ramp of a bundled marketplace solution to partners such as DPEX.
As growth has required substantial Market Development Funds reflected in Sales and Marketing, management is examining which markets warrant further investment given the substantial opportunity currently available in Indonesia and potentially other countries.
AtoZPay: Surpasses $7M Revenue-rate and Partners with Finnet
AtozPay’s gross transaction value (GTV) has grown to over a $7 Million run-rate up from the $5.0 Million attained in the first week of May.
With the sales force productivity improving, we believe we are well on our way to the $25-35 million in GTV run-rate targeted for year end. When combined with our 2019 targets of $80 Million GTV, the Company anticipates meeting or exceeding our target of approximately $100 Million in GTV within 18-months of launch.
Finnet Strategic Partnership Dramatically Expands Merchant Opportunity
Following the quarter Weyland announced a strategic partnership between its eWallet business and PT. Finnet Indonesia (“Finnet”). Finnet http://www.finnet-indonesia.com/home/en.
The Company’s eWallet business, AtoZPay, and Finnet have entered into a strategic partnership. Under the terms of the relationship consumers will be able to ‘top-up’ their mobile phones at Alfamart, the largest convenience store chain in Indonesia, with 13,477 locations. The Company is excited to have Finnet’s support in addressing Alfamart store base, which represents an order of magnitude opportunity from AtoZPay’s active merchant base.
Longer term, AtoZPay users will be able to make bill payments on household and business utilities on Finnet’s network of ~80,000 ATM machines within Indonesia.
Weyland expects the partnership to expand the eWallet share of the more than $10 Billion dollar mobile subscription (‘top-up’) market in Indonesia. Equally important is the opportunity the partnership provides to launch AtoZPay’s QR Code Merchant Payment service. Merchant payment commissions promise to add additional profitability to AtoZPay’s growing merchant base.
Weyland AtoZPay Spin-Off Record and Distribution Dates Set
Also following the quarter, the Company announced that its board of directors approved a pro-rata distribution to the Company’s shareholders of 90% of the outstanding shares of the Company’s subsidiary, Weyland AtoZ Pay Inc.” (“WAI”), through which the Company holds its ownership interest in its eWallet business (the “Spin-Off”).
The spin-off has been designed to reward Weyland shareholders in the event of a liquidity event involving the Indonesian AtoZPay platform. The current funding environment in Southeast Asia has produced investment rounds for companies such as Go-Jek, Grab, SEA Ltd., and other technology centric companies valued at 1.2X GTV or higher. Recent M&A activity in the region has valued eWallet businesses as high as 1.8X GTV. We would expect such valuations would form the basis for a liquidity event in the next 18 to 24 months.
Weyland AtoZPay Spin-off Procedure to be Processed Outside DTCC
As the Spin-Off will be processed outside of DTCC, the Company will provide further instructions to brokers, banks and shareholders regarding the procedures for receiving the distribution. Further details regarding WAI and its eWallet business will be provided in a Current Report on Form 8-K and an Information Statement, which will be filed on the SEC’s EDGAR reporting system prior to the distribution date for the Spin-Off.
About Weyland Tech Inc.
Weyland Tech is a global provider of mobile business applications. Its CreateApp platform offers a mobile presence to businesses in emerging markets, with partnerships on 3 continents and growing. This DIY mobile application platform, offered in 14 languages with over 35 integrated modules, enables small and medium sized businesses ("SMB's") to create native mobile applications ("apps") for Apple's iOS and Google Android without technical knowledge or background, empowering SMB's to increase sales, reach more customers and promote their products and services in an easy, affordable and efficient manner.
In May 2018, the Company expanded its portfolio to fintech applications with the launch of its AtozPay mobile payments platform. The mobile wallet launched in the worlds 4th most populous country, Indonesia, and is already experiencing rapid growth in transactions taking place on the platform.
Follow Weyland Tech online at:
Weyland Tech Facebook Page (https://www.facebook.com/weylandtech)
Weyland Tech Twitter Feed (https://twitter.com/weylandtechinc)
Weyland Tech LinkedIn Page (https://linkedin.com/company/weylandtech)
Brent Suen, CEO Public Facebook Page (https://www.facebook.com/BrentSuenWEYL)
Brent Suen, CEO Public Twitter Feed (https://www.twitter.com/BrentSuenWEYL)
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the continued growth of the e-commerce segment and the ability of the Company to continue its expansion into that segment; the ability of the Company to attract customers and partners and generate revenues; the ability of the Company to successfully execute its business plan; the business strategy, plans, and objectives of the Company; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions and involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume any duty to update these forward-looking statements.