NEW YORK, Aug. 14, 2020 (GLOBE NEWSWIRE) -- Weyland Tech, Inc. (OTCQX: WEYL), a leading global provider of eCommerce, mCommerce, and fintech business enablement solutions, reported results for the three and six months ended June 30, 2020. All quarterly and first half comparisons are to the same year-ago period unless otherwise noted.
Financial Highlights
- Revenue in the second quarter of 2020 increased 30% to a $9.3 million.
- Consolidated gross profit in the second quarter of 2020 decreased 4% to $1.2 million or 13.1% of consolidated revenue versus $1.3 million or 17.7% of consolidated revenue in the year-ago quarter. For the first half of 2020, consolidated gross profit increased 39% to $3.9 million or 15.9% of consolidated revenue versus $2.8 million or 17.7% of consolidated revenue in the first half of 2019.
- Cash and cash equivalents and restricted cash totaled $3.9 million at June 30, 2020.
Q2 2020 Operational Highlights
- Launched CreateApp m-Commerce platform-as-a-service in Italy as the country reopened following the COVID-19 lockdown. CreateApp allows the 172,000 small businesses across the country to easily and affordably establish a new mobile presence.
- Expanded popular food delivery service, AtozGo, to residential consumers in Jakarta and reached 800 deliveries per day being ordered by more than 2,300 registered residential users. Many new merchants have also signed up for AtozGo, now totaling more than 35,000, providing a broader selection of options available to AtozGo customers.
Subsequent Events
- Partnered with ShopeePay, Indonesia’s integrated e-money services, to launch a new marketing campaign for Weyland’s fast-growing AtozGo™ food delivery service in Jakarta.
- Reached an agreement to acquire Fixel AI, an award-winning innovator of digital marketing technology. Fixel’s audience engagement platform provides startups to Fortune 500 companies the ability to dramatically enhance their online marketing spend by segmenting and ranking website visitors based on their level of engagement.
- Launched new digital marketing campaign in Taiwan and Indonesia for CreateApp. The launch in Indonesia follows a successful pilot marketing program recently completed in Taiwan that included new online seminars hosted by CreateApp’s chief product officer and founder, Eddie Foong. This resulted in more than 1,000 new CreateApp customers, and generated a marketing ROI to Weyland of about 3-to-1 on the first month.
- Company’s new Logiq subsidiary reported a major turnaround in revenues and new eCommerce engagements over the last few months. Logiq on track to meet or exceed previous guidance of $13 million to $15 million in 2020, with margins improving to around 20%.
- Engaged leading U.S. investment bank, The Benchmark Company, to assist in the exploration and evaluation of strategic alternatives for enhancing shareholder value.
Management Commentary
“In Q2, despite the challenges created by the global pandemic, we made strong progress across every segment of our business around the world,” said Weyland Tech CEO, Brent Suen. “This included realizing major gains in revenues and new eCommerce engagements for our newly rebranded Logiq eCommerce operations. Logiq’s larger and higher profile U.S. customers stepped up their activity during the quarter, resulting in revenue gains in every month of the second quarter that has continued into the current quarter.
“In Southeast Asia, we expanded our popular food delivery service, AtozGo, from the commercial district to residents of Jakarta — a city that is expected to become the largest in the world by the end of the decade with a population of more than 35 million. We also expanded the reach of CreateApp to Italy, helping small businesses across the country easily create a mobile presence as the economy reopened following the COVID-19 lockdown.
“Subsequent to the quarter, we signed a major partnership with ShopeePay, one of Southeast Asia’s largest integrated e-money services. Together, we’re launching a new marketing campaign for AtozGo in Jakarta. We’re also completing a mutual technology integration of our mobile platforms that will allow AtozGo users to transact purchases in-app using ShopeePay. Through this integration, AtozGo will benefit from the hundreds of thousands of merchants and millions of users already on the ShopeePay platform.
“AtozGo has now attracted more than 1,000 delivery people in Jakarta, up from less than 700 in March, by offering flexible hours and unlimited income potential as the city recovers economically. Local merchants are also increasingly joining AtozGo, now totaling more than 35,000. The additional merchants provide our AtozGo customers a greater selection of household products and services, with this driving larger and more frequent orders. AtozPay, our mobile payments and e-wallet, has continued to log record transactions through its fintech platform.
“Our success with AtozGo, and the attention it has been receiving from companies like ShopeePay, is why we’re increasing our ownership of Weyland Indonesia Perkasa (WIP), the local operator of AtozGo and AtozPay. It will increase from around 31% to more than 51%, with this allowing us to consolidate WIP’s revenue for the current third quarter and going forward which currently exceeds $50 million on an annualized basis. This also puts us in a better position to control any strategic alternatives that might arise as M&As and business in general in this region of the world continue to heat up.
“On the CreateApp front, we completed a successful pilot marketing campaign in Taiwan designed to increase gross margins to 35-40% by reducing R&D spend and dependence on resellers that has long been a drag on profitability. This has now been expanded to Indonesia.
“Earlier this week, we entered an agreement to acquire Fixel AI, a leading innovator in AI-powered digital marketing technology. Fixel’s technology greatly complements and enhances our LogiqX AI-powered consumer intent engine. This proprietary data system captures and directs consumers from multiple sources who are in the market to purchase a particular product or service, and then promotes engagement and conversion for major enterprises and brands.
“Looking ahead, we remain optimistic that the demand for our products and services will continue to drive revenue growth and market expansion, as we continue to focus on making Weyland an evermore commercially successful and profitable business.”
Q2 2020 Financial Summary
Revenue increased 30% to a $9.3 million in the second quarter of 2020, as compared to $7.1 million in the same year-ago quarter. The increase was due to inclusion of $3.7 million from its new Logiq subsidiary acquired in January 2020.
Gross profit decreased 4% to $1.2 million or 13.1% of revenue in Q2 2020 compared to $1.3 million or 17.7% of revenue in the same year ago period.
Total operating expenses decreased 11% to $2.6 million in Q2 2020 from $2.9 million in the same year ago period. The decrease was primarily due to a decrease in G&A expenses, R&D, and sales and marketing, partially offset by an increase in depreciation and amortization expenses.
Net loss was $1.7 million or $(0.14) per basic and fully diluted share in Q2 2020, compared to net loss of $1.7 million or $(0.48) per basic and fully diluted share in the same year-ago period.
At June 30, 2020, cash and cash equivalents totaled $3.9 million, compared to cash and cash equivalents of $3.0 million at March 31, 2020. The increase was primarily the result of additional cash as a result of the Logiq acquisition.
First Half 2020 Financial Summary
Revenue increased 55% to a record $24.3 million in the first half of 2020, as compared to $15.6 million in the same year-ago period. The increase was due to inclusion of $6.9 million from its new Logiq subsidiary acquired in January 2020.
Gross profit increased 39% to $3.9 million or 15.9% of revenue in first half of 2020 compared to $2.8 million or 17.7% of revenue in the same year ago period.
Total operating expenses increased 81% to $8.1 million in first half of 2020 from $4.5 million in the same year ago period. The increase was primarily due to inclusion of $2.0 million in G&A expenses from its new Logiq subsidiary, as well as due to an increase in R&D and depreciation and amortization. The increase was partially offset by a decrease in sales and marketing expenses.
Net loss was $4.5 million or $(0.38) per basic and fully diluted share in the first half of 2020, compared to net loss of $1.7 million or $(0.52) per basic and fully diluted share in the same year-ago period.
Conference Call
Weyland management will host a conference call later today to discuss the company’s second quarter 2020 results, followed by a question and answer period.
Date: Friday, August 14, 2020
Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time)
Toll-free dial-in number: 1-866-548-4713
International dial-in number: 1-323-794-2093
Conference ID: 5079047
Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact CMA at 1-949-432-7566.
A replay of the call will be available after 2:00 p.m. Eastern time on the same day through Friday, August 28, 2020, as well as available for replay via the Investors section of the Weyland Tech website at weyland-tech.com/ir/.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 5079047
About Weyland Tech
Weyland Tech, Inc. (OTCQX: WEYL) is a U.S.-based leading global provider of eCommerce, mCommerce, and fintech business enablement solutions. Its CreateApp™ platform-as-a-service enables small-and-medium sized businesses worldwide to easily create and deploy a native mobile app for their business without technical knowledge or background. CreateApp empowers businesses to reach more customers, increase sales, manage logistics, and promote their products and services in an easy, affordable, and highly efficient way. CreateApp is offered in 14 languages across 10 countries and three continents, including some of the fastest-growing emerging markets in Southeast Asia.
Weyland’s subsidiary, Logiq Inc., provides a data-driven, end-to-end eCommerce marketing solution for enterprises and major U.S. brands, like Home Advisor, QuinStreet and Sunrun. The AI-powered LogiqX™ data engine delivers valuable consumer insights that enhance the ROI of online marketing spend. The company’s AtozPay™ subsidiary offers mobile payments, e-wallet, and the AtozGo™ hyper-local food delivery services in Indonesia, which has the fastest-growing mobile economy in Southeast Asia. For more information about Weyland Tech, go to weyland-tech.com.
Important Cautions Regarding Forward Looking Statements
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 ability of the Company to successfully integrate Push, the continued growth of the eCommerce 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 (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.
Company Contact
Brent Suen, CEO
Weyland Tech Inc.
Email contact
Media & Investor Contact
Ronald Both or Grant Stude
CMA Investor & Media Relations
Tel (949) 432-7566
WEYL@cma.team
WEYLAND TECH INC.
Consolidated Balance Sheets
| June 30 | December 31 | |||||||
| 2020 | 2019 | |||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Intangible assets, net | 7,985,632 | 611,598 | ||||||
| Property and equipment, net | 201,843 | - | ||||||
| Goodwill | 4,781,208 | - | ||||||
| Total non-current assets | 12,968,683 | 611,598 | ||||||
| Current assets | ||||||||
| Amount due from associate | 4,323,700 | 2,825,700 | ||||||
| Account receivable | 1,622,674 | - | ||||||
| Other amount recoverable | 49,550 | 549,550 | ||||||
| Prepayment, deposit and other receivables | 1,794,456 | 1,641,684 | ||||||
| Financial assets held for resale | - | 2,730,363 | ||||||
| Cash and cash equivalents | 3,859,783 | 2,972,649 | ||||||
| Total current assets | 11,650,163 | 10,719,946 | ||||||
| Total assets | $ | 24,618,846 | $ | 11,331,544 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | 1,057,629 | - | ||||||
| Accruals and other payables | 824,966 | 298,453 | ||||||
| Deposits received for shares to be issued | 1,482,485 | - | ||||||
| Amount due to director | 77,500 | 77,500 | ||||||
| Total current liabilities | 3,442,580 | 375,953 | ||||||
| Non-current liabilities | ||||||||
| Long term loan | 10,000 | - | ||||||
| Bank loan | - | 500,000 | ||||||
| Notes payable | 503,700 | - | ||||||
| Total non-current liabilities | 513,700 | 500,000 | ||||||
| Total liabilities | $ | 3,956,280 | $ | 875,953 | ||||
| Stockholders’ Equity | ||||||||
| Common stock, $0.0001 par value, 250,000,000 shares authorized, 12,195,973 and 8,561,704 shares issued and outstanding as of June 30, 2020 and December 31, 2019 respectively* | 15,855 | 11,130 | ||||||
| Additional paid-in capital | 58,466,864 | 58,058,118 | ||||||
| Capital reserves | 14,282,143 | - | ||||||
| Accumulated deficit carried forward | (52,102,296 | ) | (47,613,657 | ) | ||||
| Total stockholder’s equity | 20,662,566 | 10,455,591 | ||||||
| Total liabilities and stockholders’ equity | $ | 24,618,846 | $ | 11,331,544 | ||||
| * | The number of shares of common stock has been retroactively restated to reflect the 1 for 13 reverse stock-split on February 25, 2020 |
WEYLAND TECH INC.
Consolidated Statements of Operations
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Service Revenue | $ | 9,315,060 | $ | 7,141,932 | $ | 24,296,454 | $ | 15,633,624 | ||||||||
| Cost of Service | 8,095,406 | 5,874,249 | 20,431,668 | 12,858,676 | ||||||||||||
| Gross Profit | 1,219,654 | 1,267,683 | 3,864,786 | 2,774,948 | ||||||||||||
| Other income/(expenses),net | (265,223 | ) | - | (261,415 | ) | - | ||||||||||
| Gross Income | 954,431 | 1,267,683 | 3,603,371 | 2,774,948 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| General and administrative | 1,180,246 | 1,280,869 | 4,382,288 | 1,921,791 | ||||||||||||
| Research and development | 900,844 | 1,242,833 | 2,658,195 | 2,110,548 | ||||||||||||
| Sales and marketing | 99,262 | 389,610 | 152,277 | 389,610 | ||||||||||||
| Depreciation and amortization | 449,625 | 25,483 | 899,249 | 50,967 | ||||||||||||
| Total Operating Expenses | 2,629,977 | 2,938,795 | 8,092,009 | 4,472,916 | ||||||||||||
| (Loss) from Operations | (1,675,546 | ) | (1,671,112 | ) | (4,488,638 | ) | (1,697,968 | ) | ||||||||
| Net (Loss) before income tax | (1,675,546 | ) | (1,671,112 | ) | (4,488,638 | ) | (1,697,968 | ) | ||||||||
| Income tax (Corporate tax) | - | - | - | - | ||||||||||||
| Net (Loss) | (1,675,546 | ) | (1,671,112 | ) | $ | (4,488,638 | ) | $ | (1,697,968 | ) | ||||||
| Net (loss) profit per common share - basic and fully diluted | (0.1369 | ) | (0.4776 | ) | (0.3764 | ) | (0.5232 | ) | ||||||||
| Weighted average number of basic and fully diluted common share outstanding* | 12,241,835 | 3,499,259 | 11,926,020 | 3,245,491 | ||||||||||||
| * | The weighted average number of shares of common stock has been retroactively restated to reflect the 1 for 13 reverse stock-split on February 25, 2020 |