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Ankura Appoints Anne Connolly to Senior Managing Director
Addition Bolsters Ankura's Construction Disputes & Advisory Expertise in the Asia-Pacific RegionSINGAPORE, Feb. 26, 2021 /PRNewswire/ -- Ankura, a global business advisory and expert services company, today announced the appointment of Anne Connolly as Senior Managing Director based in Singapore. The addition of Ms. Connolly highlights Ankura's commitment to serving clients across its global geographies, including the Asia-Pacific (APAC) region. With unique skills and comprehensive knowledge of contractual relationships and commercial risks, Ms. Connolly has experience as a sole expert determiner and an expert witness on various quantum-related issues and has been cross-examined in arbitration (domestic and international) and litigation. Ms. Connolly specializes in the detailed quantum analysis of construction claims. "Anne is known as one of the premier construction experts in the Asia-Pacific region, and we are incredibly excited to welcome her to our practice," said Steve Pitaniello, Senior Managing Director and Construction Business Group Leader. "Her experience guiding clients through some of the most difficult challenges in the construction industry and her detailed knowledge of quantum analysis will be invaluable to our clients as they navigate the risks inherent in the execution of capital projects." As a chartered quantity surveyor, Ms. Connolly has over 23 years of experience in the construction industry working in Asia, Australia, and Europe in a wide array of sectors, including mining, building, power, major infrastructure and oil and gas. Before moving into the consulting sector in 2006, Anne was a quantity surveyor and commercial manager for nearly a decade. Throughout her career, she has been actively involved in live projects and dispute resolution across Asia, Australia and the United Kingdom. She has a background in the formal study of construction law and is a member of the Academy of Experts and the Society of Construction Law in Australia and the UK. "At Ankura, we're focused on identifying individuals who can provide the expertise and counsel that our clients expect from us and who embrace our culture of working together," said Simon Michaels, Ankura's Chairman of EMEA and APAC. "Anne's proven expertise and many accolades deepen our client offerings and expertise in the Asia-Pacific region as we continue to expand our global presence." "I am excited to join the talented team at Ankura and to play a role in the expansion of the firm's capabilities in the APAC region, particularly its construction disputes and advisory offerings," said Ms. Connolly. "Together with my new colleagues, I look forward to leveraging my knowledge, experience and expertise to help our clients navigate a wide range of quantum-related issues." Ms. Connolly has been lauded by international publications as a prominent figure in the market for her talent in quantum analysis on international disputes. About Ankura Ankura is a global business advisory and expert services firm defined by HOW we solve challenges. Whether a client is facing an immediate business challenge, trying to increase the value of their company or protect against future risks, Ankura designs, develops, and executes tailored solutions by assembling the right combination of expertise, strategy and execution. We help clients navigate a wide range of corporate performance and risk management challenges, including those pertaining to compliance, investigations, forensics, technology, turnaround and restructuring, and corporate strategy. We build on this experience with every case, client, and situation, collaborating to create innovative, customized solutions, and strategies designed for today's ever-changing business environment. This gives our clients unparalleled insight and experience across a wide range of economic, governance, and regulatory challenges. At Ankura, we know that collaboration drives results. For more information, please visit: www.ankura.com.
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TSG and Clearent Merge to Form Xplor, a Global Platform Integrating Software, Payments and Commerce-Enabling Solutions
New company to serve five fast-growing verticals spanning everyday life activities.Transaction combines two Advent International portfolio companies.ATLANTA, Feb. 25, 2021 /PRNewswire/ -- Clearent, a full-service, integrated payment solutions provider based in the United States and Transaction Services Group (TSG), a global provider of business management software and integrated payments for the subscription economy, today announced that they have entered into a definitive merger agreement. TSG and Clearent, both portfolio companies of Advent International ("Advent"), one of the world's largest private equity firms and a leading investor in payments technology, are combining to create a superior global platform designed to integrate software, payments, and commerce-enabling solutions for specific vertical markets. The resulting company will be relaunched as Xplor Technologies serving over 82,000 businesses that processed over $27 billion in payments, operating across 158 countries in 2020. The group's offering combines enterprise software solutions for businesses in five industry verticals - Education, Health and Fitness, Boutique Wellness, Field Services and Personal Services - and a global, cloud-based processing platform that allows clients to seamlessly and securely process payments for their services. The new company will also provide a range of commerce-enabling solutions such as CRM and loyalty program applications, online learning and training software, consumer engagement mobile apps, employee service delivery mobile apps, and billing and account management services that help businesses thrive and prosper by maximizing customer engagement and optimizing operations. "This is a highly complementary combination of applications and platforms that are well positioned to empower businesses that operate in 'everyday life' verticals, which are growing rapidly because they are so important to consumers around the world," said Floris de Kort, CEO of TSG. "This transaction will enable us to better leverage the advantages of our global breadth with our hyper-local expertise. We will invest in and commercialize our product innovations more effectively, such as our suite of mobile apps, so that we can continue to help our clients eliminate friction and deliver better experiences to their consumers and small businesses." "Our cloud-based, technology platform allows clients and partners to 'plug and play' easily into our suite of software and payments solutions, speeding their time to market and helping them navigate the operational pain points that too often hold businesses back," said Pamela Joseph, Clearent CEO. "With intimate knowledge of building companies from the ground up, we have a passion for offering a personal and high-quality customer service approach that is lacking in the market today." "We have strong conviction in the compatibility of these two companies and their ability to create a category leader" said Chris Egan, Managing Partner at Advent. "We've been extremely pleased to see such significant growth in both Clearent and TSG over the past few years, and we believe this combination will further accelerate our expansion into new markets and geographies and better capitalize on the accelerating digitization in our end market verticals." "This merger brings together an all-star team of operators and industry entrepreneurs with an impressive track record in developing and operating software applications and payment services," said Jeff Paduch, Managing Partner at Advent. "Building on our success in creating other payment industry leaders, we are excited to form this platform to drive continued organic and inorganic growth globally." Xplor will be headquartered in the United States in Atlanta, GA, with operations across North America, Australasia, Europe, and the United Kingdom employing over 2,000 people. Clearent CEO Pamela Joseph will serve as Executive Chair of the new company and TSG CEO Floris de Kort will serve as Group CEO. The transaction is expected to close in the second quarter of 2021. Advisors Macquarie Capital served as financial advisors to TSG on the transaction. Citi served as financial advisors to Clearent. Proton Partners served as strategic advisor to Advent International and Xplor, and Goldman Sachs and UBS advised on the financing of the transaction. ABOUT TRANSACTION SERVICES GROUP (TSG) TSG is a leading global provider of software and integrated payments for the Education, Health and Fitness and Boutique Wellness markets. The company was founded in 1994 in Auckland, New Zealand with solutions tailored for the Health and Fitness industry. Since then, TSG has expanded into new geographies and verticals, leveraging its growing team of entrepreneurs, with a deep understanding of the daily friction points in these sectors, who joined together to build TSG's powerful and convenient suite of enterprise software, mobile apps and commerce-enabling technology solutions. TSG now helps business owners across Australasia, Europe, the United Kingdom and North America engage with their clients, manage their daily operations and optimize their billing and payments more effectively and efficiently. For more information visit: www.transactionservices.global ABOUT CLEARENT Clearent is a full-service payment solutions provider that helps small and medium-size businesses securely accept payments through its proprietary, omni-channel platform. Clearent is also a leader of software solutions in the Field and Personal Services markets. Independent software vendors (ISVs) and sales offices receive the tools they need to grow and scale through Clearent's partnership program, which delivers tailored payment solutions, sales models, and portfolio management technologies. With offices throughout the United States, Clearent has consistently been named in the Inc. 5000 list of fastest-growing companies, The Nilson Report's list of top U.S. acquirers, The St. Louis Post-Dispatch Top Workplaces award, and the St. Louis Business Journal's list of fastest growing private companies. To learn more, visit: www.clearent.com. ABOUT ADVENT INTERNATIONAL Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 350 private equity transactions in 41 countries, and as of September 30, 2020, had $66.2 billion in assets under management. With 15 offices in 12 countries, Advent has established a globally integrated team of over 200 investment professionals across North America, Europe, Latin America, and Asia. The firm focuses on investments in five core sectors, including business and financial services; health care; industrial; retail, consumer and leisure; and technology. After 35 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies. For more information, visit: Website: www.adventinternational.com LinkedIn: www.linkedin.com/company/advent-international
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Central Park Tower, World's Tallest Residential Building, Commences Closings
Landmark Tower Recognized With 2021 Award of Excellence by Council on Tall Buildings and Urban Habitat NEW YORK, Feb. 25, 2021 /PRNewswire/ -- Extell Development Company announced today that Central Park Tower – the tallest residential building in the world at 1,550 feet in height – has commenced closings and will be welcoming its first residents to the building. Central Park Tower offers breathtaking Central Park and skyline views, exquisite architecture, thoughtfully-designed floor plans and one of the world's most exclusive private clubs. This landmark skyscraper will set a new standard for resort-style luxury living in New York City and beyond. "Now that closings have commenced, residents will be able to experience the outstanding quality and unique lifestyle that is offered at Central Park Tower," said Gary Barnett, Founder and Chairman of Extell Development Company. "With first-class product and exceptional pricing that speaks to today's market, Central Park Tower is the very best you can buy on Central Park. There is truly no other building like it." Recently awarded the 2021 Award of Excellence by the Council on Tall Buildings and Urban Habitat (CTBUH) as "The Best Tall Building 400 meters and above," Central Park Tower was designed by Adrian Smith + Gordon Gill Architecture (AS+GG), a firm dedicated to the design of high-performance, energy-efficient, striking architecture on an international scale. Combining elements of glass, satin-finished stainless steel, and light-catching vertical and horizontal details, the building's façade accentuates the interplay of texture and light. Drawing on the striking exterior features, interior design firm Rottet Studio has created highly sophisticated interiors through unique and elegant custom finishes. The 179 two-to-eight-bedroom residences begin on the 32nd floor of the building and range in size from 1,435 square feet to over 17,500 square feet. Located within the tallest residential tower ever built is one of the world's most exclusive private clubs, Central Park Club. The Club offers approximately 50,000 square feet of thoroughly curated luxury amenities spread across three floors, each level providing a unique experience and complemented by five-star service. The defining feature of Central Park Club is the 100th Floor, the highest private residential club in the world. Additional amenities include an expansive outdoor terrace with a swimming pool and cabanas for entertaining; a private screening room, residents' lounge, and tween game lounge on the 14th floor; and a full floor of fitness and wellness amenities, including a state-of-the-art gym, training room, squash/basketball court, spa treatment room and more on the 16th floor. Additionally, while residents can enter through the dedicated private residential lobby on 57th Street, the building also features a discreet, gated valet entrance on 58th Street. At the base of Central Park Tower is Nordstrom's first full-line department store. This approximately 320,000-square-foot, seven-story store, which opened in 2019, represents the company's biggest statement for its brand. Residents of Central Park Tower will receive special access to Nordstrom's flagship store. A rare collaboration that marks a first for the retailer, this unique lifestyle program offers residents exclusive in-residence and in-store programming. Some of the privileges include guaranteed reservations for Nordstrom's three full service restaurants, as well as immediate access to the retailer's two bars and café. Resident-only services also include in-residence and in-club dining experiences, beauty and spa services, clinical skin care, personal stylists for wardrobes in the home and a variety of in-store perks, including advance access to new brands and collections, and priority access to invite-only style events. Extell is co-developing Central Park Tower with SMI USA (SMI), the US subsidiary of Shanghai Municipal Investment, a leading infrastructural investment company responsible for the esteemed Shanghai Tower, the second tallest building in the world. Lendlease, one of the world's largest property, infrastructure, development and construction management firms, served as construction manager for Central Park Tower. Extell Marketing Group and Corcoran Sunshine Marketing Group are the exclusive sales and marketing agents for Central Park Tower. Pricing for current availability at Central Park Tower starts at $6.5 million. For more information or to schedule a private appointment of the newly completed model residences, please call 212-957-5557 or visit www.centralparktower.com. Photo - https://mma.prnasia.com/media2/1444475/extell_development_company_new_york_skyline.jpg?p=medium600 Photo - https://mma.prnasia.com/media2/1444474/extell_development_company_central_park_tower.jpg?p=medium600 Related Links :http://www.centralparktower.com
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Hubilo Raises $23.5m to Redefine the Future of Event
BENGALURU, India, Feb. 25, 2021 /PRNewswire/ -- Hubilo's platform is growing exponentially, with over 50% month-over-month growth this past year Its global customer list includes the United Nations, Roche, Informa Markets, Tech in Asia, Fortune, AWS, Siemens Hubilo to invest in strengthening its product and design teams in India and building out its US and Europe-based go-to-market teams Hubilo, the global virtual and hybrid events platform, has announced a $23.5 million Series A investment led by Lightspeed Venture Partners and Balderton Capital, alongside several industry experts and luminaries, including John Thompson, Chairman of the Board at Microsoft, and Chris Schagen, Former CMO at Contentful. This funding comes just months after Hubilo's $4.5 million seed round in November 2020. It is a reflection of the exponential growth in Hubilo's business and investor belief in Hubilo's vision for a category that represents the largest fraction of marketing budgets globally. Exactly a year ago, Hubilo witnessed its revenue as a successful in-person events company begin to collapse as the pandemic took hold. Hubilo rose to the challenge by doubling down on its virtual events platform, adding hundreds of features in less than a month to support the needs of the largest and most demanding conferences in the world. As a result, Hubilo has emerged as one of the leading platforms serving the high end of the corporate virtual events and trade show market, growing its revenue by 50% month-over-month since enrolling the first customer for its virtual events platform in April 2020. CMOs widely acknowledge that Covid-19 has permanently disrupted the event landscape. Virtual events are now a key part of how businesses connect with their customers, attracting a far broader set of attendees and speakers than physical events. There's also an increased sense of urgency around ensuring that physical events become hybrid with a digital overlay that brings the benefits of virtual events to the physical world. Hubilo is at the forefront of this transition and plans to build on its momentum by expanding its leadership teams globally, with new offices in San Francisco and London and a rapid build-out of its sales, marketing and customer success teams out of those offices. The Series A funding will also help accelerate the development of Hubilo's platform. In the next few months, Hubilo plans on rolling out several features that will enable stronger attendee engagement and new monetization opportunities for organizers. Hubilo has already hosted more than a million attendees on its platform - without the all too common "Zoom fatigue". Organizers see increased attendee engagement through built-in networking features, including meeting tables, private rooms, meeting schedules, and gamification features such as leaderboards. Organizers also love the one-click integration with existing go-to-market platforms including HubSpot, SalesForce and Marketo, enabling them to demonstrate ROI through event data integrated with their existing workflows. Vaibhav Jain, Founder and CEO at Hubilo, says. "Our strategy, product features and platform intelligence are expanding the possibilities of what is achievable in the events space, and we're continually delivering greater value for event organizers, sponsors and other stakeholders. We're excited to welcome our investors onboard as we begin this next phase of global expansion." Guru Chahal, Partner at Lightspeed Venture Partners US, added, "In our research, some of the most demanding customers worldwide made it clear that Hubilo was their trusted partner in both these categories, virtual and hybrid. We are delighted to lead Hubilo's Series A funding and use Lightspeed's global resources to support their exponential growth." Hemant Mohapatra, Partner at Lightspeed Venture Partners India, further added "As Hubilo's first institutional backers, we are extremely pleased to welcome new world-class investors and board members to the team as we shift into an even higher gear to dominate virtual and hybrid events in a world that is emerging out of the pandemic." In March 2021, over 4000 marketing professionals, 40 CMOs and 400 event industry professionals from around the world will come together for Hubilo's two-day Restart 2021 virtual event to build a more vital collective understanding of the power of experiential digital events and their benefits. About Hubilo: Virtual and Hybrid Event Technology Company Hubilo is one of the fastest-growing SaaS companies today, globally. Hubilo has witnessed a growth rate of over 10,000% in less than a year and has raised a seed round of $4.5 million and a Series 'A' round of $23.5 million from leading Venture Capital firms like Lightspeed Venture Partners and Balderton Capital, and several renowned angel investors. Hubilo is headquartered out of San Francisco in the US, with offices in London in the UK and Bengaluru in India with clients in the United States, Europe, APAC, Middle East and Africa. Hubilo's customers include names like United Nations, Roche, Informa Markets, Tech in Asia, Fortune, AWS, Siemens, Cognizant, Veritas Technologies, GITEX and several others. Led by Founders Vaibhav Jain and Mayank Agarwal, Hubilo is building out the world's most comprehensive digital platform to help businesses strengthen their relationships with their customers and partners through virtual and hybrid events. About Lightspeed Venture Partners: Lightspeed is a multi-stage venture capital firm focused on accelerating disruptive innovations and trends in the Enterprise, Consumer, and Health sectors. Since 2000, Lightspeed has backed entrepreneurs and helped build companies of tomorrow, including Snap, AppDynamics, Affirm, OYO, Nutanix, Byju's, and Udaan. Lightspeed and its affiliates currently manage more than $10 Billion across the global Lightspeed platform, with investment professionals and advisors in India, Silicon Valley, Israel, China, Southeast Asia and Europe.
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MINISO Announces Unaudited Results for the Second Quarter of Fiscal Year 2021
GUANGZHOU, China, Feb. 25, 2021 /PRNewswire/ -- MINISO Group Holding Limited (NYSE: MNSO) ("MINISO" or the "Company"), a fast-growing global value retailer offering a variety of design-led lifestyle products, today announced its unaudited financial results for the second quarter of fiscal year 2021 ended December 31, 2020. Financial Highlights for Second Quarter of Fiscal Year 2021 Revenue in the second quarter of fiscal year 2021 was RMB2,297.7 million (US$352.1 million), within the Company's guidance range of RMB2,200 million and RMB2,400 million, representing a decrease of 18.1% from the same period of the prior fiscal year and an increase of 10.9% from the previous quarter. Gross profit in the second quarter of fiscal year 2021 was RMB642.8 million (US$98.5 million), representing a decrease of 27.6% from the same period of the prior fiscal year and an increase of 23.0% from the previous quarter. Operating profit in the second quarter of fiscal year 2021 was RMB54.3 million (US$8.3 million), compared to RMB329.8 million in the same period of the prior fiscal year and an operating loss of RMB2.1 million in the previous quarter. Profit from continuing operations in the second quarter of fiscal year 2021 was RMB20.8 million (US$3.2 million), compared to a loss of RMB205.2 million in the same period of the prior fiscal year and a loss of RMB1,676.3 million in the previous quarter. Adjusted net profit[1] in the second quarter of fiscal year 2021 was RMB84.0 million (US$12.9 million), compared to RMB389.8 million in the same period of the prior fiscal year and RMB102.1 million in the previous quarter. Operational Highlights for Second Quarter of Fiscal Year 2021 Number of MINISO stores increased to 4,514 as of December 31, 2020, from 4,211 as of December 31, 2019 and 4,330 as of September 30, 2020. The Company expanded its business into two additional countries and regions in the second quarter of fiscal year 2021. The following table provides a breakdown of the number of MINISO stores as of the relevant dates: As of December 31, 2019 September 30, 2020 December 31, 2020 Number of MINISO stores[2] 4,211 4,330 4,514 China 2,543 2,633 2,768 —Directly operated stores 8 5 5 —Third-party stores 2,535 2,628 2,763 Overseas[3] 1,668 1,697 1,746 —Directly operated stores 126 115 105 —Third-party stores 1,542 1,582 1,641 [1] See the section titled "Non-IFRS Financial Measure" for more information about the non-IFRS financial measure referred to in this press release. [2] "MINISO stores" are any of the stores operated under the "MINISO" brand name, including those directly operated by the Company ("Directly operated stores"), and those operated by third parties under the MINISO Retail Partner model and the distributor model ("Third-party stores"). [3] Overseas stores exclude a small number of stores under certain overseas businesses that the Company had disposed of as of June 30, 2020. The Company completed such business disposal during the period from December 2019 to April 2020. Mr. Guofu Ye, Founder, Chairman, and Chief Executive Officer of MINISO, commented, "We are pleased to see our domestic operations delivered a well-rounded and encouraging quarterly performance, while our overseas operations also moved further along its path of recovery. During the quarter, we added 184 new stores to our global store network. While the pandemic hit off-line retailers globally in calendar year 2020, we added 303 new stores during the year, demonstrating our partners' confidence in our resilient business model and faster-than-average recovery speed." Mr. Ye continued, "In December, we announced our 'X' strategy, further illustrating our commitment to becoming a global leading new-retail platform. Our team has accumulated core strengths in supply chain management, retail know-how, asset-light business model and digitization, and we will leverage these strengths in our new initiatives such as TopToy." Mr. Saiyin Zhang, Chief Financial Officer and Executive Vice President of MINISO, commented, "We concluded calendar year on a positive note as both our top and bottom lines showed solid recovery trends. On a sequential basis, our revenue increased by 11%, with overseas revenue increasing by 32% and domestic revenue increasing by 7%. Our growth recovery was attributable to a 4% growth in our store count and a 7% growth in our average revenue per store quarter over quarter. In addition, we are delighted to report a substantial improvement in our operating profit, which we expect to normalize over the coming quarters as the pandemic abates. Looking ahead, we are highly confident in the strength of our underlying business model and remain steadfast in our commitment to solidifying our leadership at home, expanding our market share abroad, and delivering long-term shareholder value." Recent Developments Impact of COVID-19 As of December 31, 2020, there were (i) 2,768 MINISO stores in China, most of which had resumed their operations, although a few of them were closed temporarily due to regional cases of COVID-19 and (ii) 1,746 MINISO stores in overseas markets, 1,593 of which had resumed their operations. The majority of those stores that resumed operations were half-opened or had operating hours reduced due to regional resurgences of COVID-19 in many countries and areas. Unaudited Financial Results for Second Quarter of Fiscal Year 2021 Revenue was RMB2,297.7 million (US$352.1 million) in the second quarter of fiscal year 2021, representing a year-over-year decrease of 18.1% and a quarter-over-quarter increase of 10.9%. The year-over-year decrease in revenue was mainly attributable to the negative impact of COVID-19 on the Company's international operations during the period. Revenue generated from international operations decreased by 51.3% year over year to RMB463.0 million (US$71.0 million) in the second quarter of fiscal year 2021 as a result of temporary store closures, a reduction in store operating hours, and a decline in customer traffic, all of which were caused by the outbreak of COVID-19. Revenue generated from domestic market was flat year-over-year. The quarter-over-quarter increase in revenue was primarily driven by the recovery of the Company's international and domestic businesses in the second quarter of fiscal year 2021. On a sequential basis, revenue generated from international operations increased by 32.2%, and revenue generated from domestic market increased by 6.6%. Total number of MINISO stores was 4,514 as of December 31, 2020, representing a net increase of 303 stores year over year and 184 stores quarter over quarter. Revenue per MINISO store, which is calculated by dividing the revenue of MINISO brand (excluding Africa and Germany) by the average number of stores at the beginning and the end of the relevant period, was RMB503.7 thousand (US$77.2 thousand) in the second quarter of fiscal year 2021, compared to RMB665.8 thousand in the same period of the prior fiscal year and RMB469.9 thousand in the previous quarter. Cost of sales was RMB1,655.0 million (US$253.6 million) in the second quarter of fiscal year 2021, representing a decrease of 13.6% from RMB1,916.5 million in the same period of the prior fiscal year and an increase of 6.8% from RMB1,549.8 million in the previous quarter. Gross profit was RMB642.8 million (US$98.5 million) in the second quarter of fiscal year 2021, representing a decrease of 27.6% from RMB887.4 million in the same period of the prior fiscal year and an increase of 23.0% from RMB522.4 million in the previous quarter. Gross margin was 28.0% in the second quarter of fiscal year 2021, compared to 31.6% in the same period of the prior fiscal year and 25.2% in the previous quarter. The fluctuations in gross margin during these periods were primarily due to the fluctuations in revenue contributions from the Company's international operations, the gross margin of which is typically higher than that of the Company's domestic operations. International operations contributed 20.1% of revenue in the second quarter of fiscal year 2021, compared to 33.9% in the same period of the prior fiscal year and 16.9% in the previous quarter. Other income was RMB7.8 million (US$1.2 million) in the second quarter of fiscal year 2021, compared to RMB0.2 million in the same period of the prior fiscal year and RMB36.0 million in the previous quarter. Selling and distribution expenses were RMB340.8 million (US$52.2 million) in the second quarter of fiscal year 2021, remaining stable as compared to the same period of the prior fiscal year, but increasing by 18.8% quarter over quarter. Excluding share-based compensation expenses, selling and distribution expenses were RMB306.4 million (US$47.0 million), compared to RMB317.0 million in the same period of the prior fiscal year and RMB230.4 million in the previous quarter. The quarter-over-quarter increase was primarily attributable to increased logistics expenses, which were in line with the recovery of the Company's sales during the second quarter of fiscal year 2021, and the increase in marketing expenses as the Company continues to strengthen brand recognition for MINISO and TopToy. General and administrative expenses were RMB189.0 million (US$29.0 million) in the second quarter of fiscal year 2021, representing a year-over-year decrease of 17.2% and quarter-over-quarter decrease of 25.0%. Excluding share-based compensation expenses, general and administrative expenses were RMB160.2 million (US$24.6 million), compared to RMB168.3 million in the same period of the prior fiscal year and RMB155.3 million in the previous quarter. Other net loss was RMB55.1 million (US$8.4 million) in the second quarter of fiscal year 2021, compared to other net income of RMB23.9 million in the same period of the prior fiscal year and other net loss of RMB15.7 million in the previous quarter. The Company's other net loss in the second quarter of fiscal year 2021 was mainly comprised of a net foreign exchange loss of RMB66.9 million (US$10.3 million), which was in line with the appreciation of the Renminbi against the U.S. dollar in the period. Operating profit was RMB54.3 million (US$8.3 million) in the second quarter of fiscal year 2021, compared to an operating profit of RMB329.8 million in the same period of the prior fiscal year and an operating loss of RMB2.1 million in the previous quarter. Profit from continuing operations was RMB20.8 million (US$3.2 million) in the second quarter of fiscal year 2021, as compared to a loss of RMB205.2 million in the same period of the prior fiscal year and a loss of RMB1,676.3 million in the previous quarter. The fluctuations in profit or loss from continuing operations during these periods were mainly due to fair value changes of redeemable shares with other preferential rights, which were nil in the second quarter of fiscal year 2021 compared to a loss of RMB493.1 million in the same period of the prior fiscal year and a loss of RMB1,625.3 million in the previous quarter. The fluctuations in fair value changes of redeemable shares with other preferential rights were primarily due to the revaluation of the Company's equity value based on the offering price of the Company's Class A ordinary shares in its initial public offering (the "IPO"). After the completion of the IPO, all of the Company's redeemable shares with other preferential rights were converted to its Class A ordinary shares. The fair value of each of the Company's redeemable shares with other preferential rights approximated to the fair value of each of the Company's ordinary shares on the conversion date, which was the pricing day of the IPO. Adjusted net profit[1], which represents net profit excluding (i) fair value changes of paid-in capital subject to redemption and other preferential rights or redeemable shares with other preferential rights, (ii) loss from discontinued operations, net of tax, (iii) equity-settled share-based payment expenses, and (iv) employee compensation expenses related to non-forfeitable dividends related to unvested restricted shares, was RMB84.0 million (US$12.9 million) in the second quarter of fiscal year 2021, compared to RMB389.8 million in the same period of the prior fiscal year and RMB102.1 million in the previous quarter. [1] See the sections titled "Non-IFRS Financial Measure" and "Reconciliation of Non-IFRS Financial Measure" in this press release for more information about adjusted net profit. Basic and diluted earnings from continuing operations per American Depositary Share ("ADS") were RMB0.08 (US$0.01) in the second quarter of fiscal year 2021, compared to a loss of RMB0.80 in the same period of the prior fiscal year and a loss of RMB7.08 in the previous quarter. Each ADS represents four of the Company's Class A ordinary shares. Adjusted basic and diluted earnings per ADS were RMB0.28 (US$0.04) in the second quarter of fiscal year 2021, compared to RMB1.52 in the same period of the prior fiscal year and RMB0.40 in the previous quarter. As of December 31, 2020, the combined balance of the Company's cash, cash equivalents and restricted cash amounted to RMB6,841.0 million (US$1,048.4 million), compared to RMB2,964.8 million as of September 30, 2020. The increase in cash, cash equivalents and restricted cash was primarily due to proceeds received from the Company's IPO and the cash flow generated from operations. Business Outlook For the third quarter of fiscal year 2021 ended March 31, 2021, the Company currently estimates its revenue to be between RMB2,200 million and RMB2,400 million, representing an increase of 34.7% to 47.0% year over year. This estimate represents management's current and preliminary views on the market and operational conditions as of the date of this press release, which does not factor in any of the potential future impacts caused by the COVID-19 pandemic and is subject to change. Conference Call The Company's management will hold an earnings conference call at 7:00 A.M. Eastern Time on Thursday, February 25, 2021, (8:00 P.M. Beijing Time on the same day) to discuss the financial results. Listeners may access the call by dialing the following numbers: International: 1-412-317-6061 United States Toll Free: 1-888-317-6003 Mainland China Toll Free: 4001-206-115 Hong Kong, China Toll Free: 800-963-976 Access Code: 5981498 The replay will be accessible through March 4, 2021, by dialing the following numbers: International: 1-412-317-0088 United States Toll Free: 1-877-344-7529 Access Code: 10152644 A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.miniso.com/. About MINISO MINISO is a fast-growing global value retailer offering a variety of design-led lifestyle products. The Company serves consumers primarily through its large network of MINISO stores, and promotes a relaxing, treasure-hunting and engaging shopping experience full of delightful surprises that appeals to all demographics. Aesthetically pleasing design, quality and affordability are at the core of every product in MINISO's wide product portfolio, and the Company continually and frequently rolls out products with these qualities. Since the opening of its first store in China in 2013, the Company has built its flagship brand "MINISO" as a globally recognized retail brand and established a massive store network worldwide. For more information, please visit http://ir.miniso.com/. Exchange Rate The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of December 31, 2020, which was RMB6.5250 to US$1.00. The percentages stated in this press release are calculated based on the RMB amounts. Non-IFRS Financial Measure In evaluating the business, MINISO considers and uses adjusted net profit as a supplemental measure to review and assess its operating performance. The presentation of this non-IFRS financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. MINISO defines adjusted net profit as profit/(loss) excluding (i) fair value changes of paid-in capital subject to redemption and other preferential rights or redeemable shares with other preferential rights, (ii) loss from discontinued operations, net of tax, (iii) equity-settled share-based payment expenses, and (iv) employee compensation expenses related to non-forfeitable dividends related to unvested restricted shares. MINISO presents adjusted net profit because it is used by the management to evaluate its operating performance and formulate business plans. Adjusted net profit enables the management to assess its operating results without considering the impacts of the aforementioned non-cash and other adjustment items that MINISO does not consider to be indicative of its operating performance in the future. Accordingly, MINISO believes that the use of this non-IFRS financial measure provides useful information to investors and others in understanding and evaluating its operating results in the same manner as the management and board of directors. This non-IFRS financial measure is not defined under IFRS and is not presented in accordance with IFRS. The non-IFRS financial measure has limitations as an analytical tool. One of the key limitations of using adjusted net profit is that it does not reflect all items of income and expense that affect MINISO's operations. Further, this non-IFRS measure may differ from the non-IFRS information used by other companies, including peer companies, and therefore its comparability may be limited. The non-IFRS financial measure should not be considered in isolation or construed as an alternative to profit/(loss) or any other measure of performance or as an indicator of MINISO's operating performance. Investors are encouraged to review MINISO's historical non-IFRS financial measure in light of the most directly comparable IFRS measure, as shown below. The non-IFRS financial measure presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measures differently, limiting the usefulness of such measures when analyzing MINISO's data comparatively. MINISO encourages you to review its financial information in its entirety and not rely on a single financial measure. For more information on the non-IFRS financial measure, please see the table captioned "Reconciliation of Non-IFRS Financial Measure" set forth at the end of this press release. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. Among other things, the guidance for the fiscal year 2021's third quarter ended March 31, 2021 and quotations from management in this announcement, as well as MINISO's strategic and operational plans, contain forward-looking statements. MINISO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about MINISO's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: MINISO's mission, goals and strategies; future business development, financial conditions and results of operations; the expected growth of the retail market and the market of branded variety retail of lifestyle products in China and globally; expectations regarding demand for and market acceptance of MINISO's products; expectations regarding MINISO's relationships with consumers, suppliers, MINISO Retail Partners, local distributors, and other business partners; competition in the industry; proposed use of proceeds; and relevant government policies and regulations relating to MINISO's business and the industry. Further information regarding these and other risks is included in MINISO's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and MINISO undertakes no obligation to update any forward-looking statement, except as required under applicable law. Contact: Eason ZhangMINISO Group Holding LimitedEmail: ir@miniso.com Jack WangICR, Inc.Email: miniso.ir@icrinc.com Phone: +1 (212) 537-4056 MINISO GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in thousands) As at June 30, 2020 (Audited) As at December 31, 2020(Unaudited) RMB'000 RMB'000 US$'000 ASSETS Non-current assets Property, plant and equipment 88,062 81,144 12,436 Right-of-use assets 502,867 485,645 74,428 Intangible assets 69,091 70,445 10,796 Deferred tax assets 183,520 185,734 28,465 Prepayments 6,112 6,802 1,043 Interest in an associate - 356,000 54,559 849,652 1,185,770 181,727 Current assets Other investments - 100,437 15,393 Inventories 1,395,674 1,413,301 216,598 Trade and other receivables 729,889 766,387 117,454 Cash and cash equivalents 2,853,980 6,840,474 1,048,349 Restricted cash 7,056 538 83 4,986,599 9,121,137 1,397,877 Total assets 5,836,251 10,306,907 1,579,604 EQUITY Share capital 69 92 14 Additional paid-in capital 162,373 8,289,160 1,270,369 Other reserves 625,984 830,103 127,219 Accumulated losses (1,125,055) (2,794,665) (428,301) (Deficit) / equity attributable to equity shareholders of the Company (336,629) 6,324,690 969,301 Non-controlling interests 13,583 9,198 1,410 Total (deficit) / equity (323,046) 6,333,888 970,711 LIABILITIES Non-current liabilities Contract liabilities 74,226 65,988 10,113 Loans and borrowings 15,207 14,094 2,160 Lease liabilities 378,894 356,954 54,706 Deferred income - 23,240 3,562 Redeemable shares with other preferential rights 2,381,327 - - 2,849,654 460,276 70,541 Current liabilities Loans and borrowings 401,182 - - Trade and other payables 2,419,795 2,904,174 445,084 Contract liabilities 218,287 294,419 45,122 Lease liabilities 224,080 237,028 36,326 Deferred income - 6,120 938 Current taxation 46,299 71,002 10,882 3,309,643 3,512,743 538,352 Total liabilities 6,159,297 3,973,019 608,893
Ping An Announces the Closing of Global Mezzanine Fund
HONG KONG and SHANGHAI, Feb. 25, 2021 /PRNewswire/ -- Ping An Insurance (Group) Company of China, Ltd. (hereafter "Ping An" or the "Group", HKEX: 2318; SSE: 601318) is pleased to announce that its main offshore investment and asset management platform, China Ping An Insurance Overseas (Holdings) Limited (PAOH), has closed the Ping An Global Mezzanine Fund. The Ping An Global Mezzanine Fund raised USD307 million from clients' commitments and a credit facility provided by Goldman Sachs. Ping An Overseas Holdings is also an investor in the fund. The Mezzanine Fund's investments will focus on private corporate debts such as mezzanine and unitranche loans in overseas markets. It provides its limited partners the opportunity to invest alongside Ping An in a strong institutional asset class. The fund's investment strategy builds on Ping An's more than 10 years of successful private debt investment in China and overseas. Mr. Hoi Tung, Chairman & CEO of Ping An Overseas Holdings, said: "Despite the uncertainties in current global economic outlook, the closing of our new Mezzanine Fund is one more example of how PAOH strives to offer investment opportunities with compelling risk-adjusted returns to our investment partners. We are proud and grateful to our investors for their continuing trust in our Mezzanine Fund and we look forward to launching more products and services that meet global institutional investor demands." Mr. Bruce Pan, Managing Director and Head of Private Debt at Ping An Overseas Holdings, said: "The Mezzanine Fund provides investors with an investment opportunity in an asset class that is otherwise only accessible to large institutions. The interests of investors and Ping An are aligned as Ping An is also a significant investor in the Mezzanine Fund. By working with top tier private credit investment managers around the globe, we will find attractive opportunities to invest in companies that have strong cash flow and identified growth paths. The Mezzanine Fund aims to achieve solid returns and stable cash coupons for its investors." About Ping An Group Ping An Insurance (Group) Company of China, Ltd. ("Ping An") is a world-leading technology-powered retail financial services group. With over 218 million retail customers and 598 million Internet users, Ping An is one of the largest financial services companies in the world. Ping An focuses on two over-arching domains of activity, "pan financial assets" and "pan health care", covering the provision of financial and health care services through our integrated financial services platform and our ecosystems; in financial services, health care, auto services and smart city services. Our "finance + technology" and "finance + ecosystem" transformation strategies aim to provide customers and internet users with innovative and simple products and services using technology. As China's first joint stock insurance company, Ping An is committed to upholding the highest standards of corporate reporting and corporate governance. The Group is listed on the stock exchanges in Hong Kong and Shanghai. In 2020, Ping An ranked 7th in the Forbes Global 2000 list and ranked 21st in the Fortune Global 500 list. Ping An also ranked 38th in the 2020 WPP Kantar Millward Brown BrandZTM Top 100 Most Valuable Global Brands list. For more information, please visit www.group.pingan.com, and follow us on LinkedIn - PING AN. About Ping An Overseas Holdings China Ping An Insurance Overseas (Holdings) Limited ("PAOH") is a direct wholly-owned subsidiary of Ping An Insurance (Group) Company of China, Ltd. ("Ping An Group") (2318.HK). PAOH, together with its subsidiaries, acts as the overseas investments and asset management platform of the Ping An Group. We have strong offshore investment research and portfolio management capabilities and are committed to providing clients with a wide range of overseas investment products, asset management and consulting services. We offer capital markets investment services including open-/closed-end funds, ETFs and mandates in equity, fixed income, funds of hedge funds, and AI and quantitative investments, and alternative investment services including funds, co-investments and direct investments in global (mainly US and Europe) private equity, private debt, infrastructure and real estate.Related Links :http://www.pingan.cn
Youdao Reports Fourth Quarter and Fiscal Year 2020 Unaudited Financial Results
HANGZHOU, China, Feb. 25, 2021 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), a leading intelligent learning company in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2020. Fourth Quarter 2020 Financial Highlights Total net revenues were RMB1.1 billion (US$169.6 million), representing a 169.7% increase from the same period in 2019.- Net revenues from learning services were RMB731.6 million (US$112.1 million), representing a 198.8% increase from the same period in 2019. - Net revenues from learning products were RMB237.3 million (US$36.4 million), representing a 253.8% increase from the same period in 2019. - Net revenues from online marketing services were RMB137.8 million (US$21.1 million), representing a 39.9% increase from the same period in 2019. Gross billings of online courses[1] increased by 222.8% year-over-year to RMB1.1 billion (US$171.5 million) and gross billings of Youdao Premium Courses[2] increased by 268.8% year-over-year to RMB1.0 billion (US$158.8 million). Gross margin was 47.5%, compared with 29.8% for the same period in 2019. Deferred revenue from online courses was RMB1.4 billion (US$207.8 million), compared with RMB407.9 million as of December 31, 2019. [1] Gross billings is a non-GAAP financial measure. Gross billings for a specific period refers to the total amount of consideration for Youdao's online courses sold on Youdao Premium Courses, NetEase Cloud Classroom and China University MOOC, net of the total amount of refunds, in such period. See "Non-GAAP Measures" and "Unaudited Reconciliation of GAAP and non-GAAP Results" at the end of this press release. [2] Youdao Premium Courses are Youdao's flagship online learning offerings primarily focused on K-12 students, covering a wide spectrum of subject matters, learning goals and areas of interest. Fourth Quarter 2020 Key Operating and Financial Data For the three months ended December 31 (in millions, RMB) 2019 2020 % of Change Gross billings of online courses 346.7 1,119.3 222.8% Gross billings of Youdao Premium Courses 281.0 1,036.4 268.8% Paid student enrollments of Youdao Premium Courses (in thousands) 258.3 796.2 208.2% K-12 paid student enrollments 161.1 659.2 309.3% Adult paid student enrollments 97.2 137.0 40.8% Gross billings per paid student enrollment of Youdao Premium Courses(in RMB) 1,088 1,302 19.7% Fiscal Year 2020 Financial Highlights Total net revenues were RMB3.2 billion (US$485.4 million), representing a 142.7% increase from 2019. - Net revenues from learning services were RMB2.2 billion (US$330.2 million), representing a 207.9% increase from 2019. - Net revenues from learning products were RMB540.0 million (US$82.8 million), representing a 255.1% increase from 2019. - Net revenues from online marketing services were RMB472.9 million (US$72.5 million), representing a 4.4% increase from 2019. Gross billings of online courses increased by 233.7% year-over-year to RMB3.1 billion (US$480.5 million) and gross billings of Youdao Premium Courses increased by 275.9% year-over-year to RMB2.8 billion (US$431.7 million). Gross margin was 45.9%, compared with 28.4% for 2019. Fiscal Year 2020 Key Operating and Financial Data For the year ended December 31 (in millions, RMB) 2019 2020 % of Change Gross billings of online courses 939.5 3,135.4 233.7% Gross billings of Youdao Premium Courses 749.4 2,816.8 275.9% Paid student enrollments of Youdao Premium Courses (in thousands) 833.4 2,096.9 151.6% K-12 paid student enrollments 358.8 1,639.6 357.0% Adult paid student enrollments 474.6 457.3 -3.6% Gross billings per paid student enrollment of Youdao Premium Courses (in RMB) 899 1,343 49.4% "2020 was a banner year for Youdao. We made great financial and operational strides across our business, closing the year with excellent top line growth and positive operating cash flow in Q1, Q2 and Q4," said Dr. Feng Zhou, Chief Executive Officer and Director of Youdao. "Our learning services and learning products segments prospered in the fourth quarter, led by our robust K-12 segment. Total gross billings of online courses climbed to RMB1.1 billion in the fourth quarter, up by 223% year-over-year and 17% quarter-over-quarter. We also introduced our Youdao Dictionary Pen 3.0, driving our total learning products sales to RMB237.3 million in the fourth quarter, up by 254% year-over-year. "Retention rates remain strong. We continue to invest in our business and make great endeavors to drive sustainable and healthy growth. As we move into 2021, we will continue to refine the content of our online courses, upgrade our online learning products, and offer better and more comprehensive user experiences for our customers," Dr. Zhou concluded. Fourth Quarter 2020 Financial Results Net Revenues Net revenues for the fourth quarter of 2020 were RMB1.1 billion (US$169.6 million), representing a 169.7% increase from RMB410.4 million for the same period of 2019. Net revenues from learning services were RMB731.6 million (US$112.1 million) for the fourth quarter of 2020, representing a 198.8% increase from RMB244.8 million for the same period of 2019. The year-over-year growth from learning services was primarily attributable to the increased revenues generated from online courses, which were further driven by a substantial increase in both the paid student enrollments for K-12 courses of Youdao Premium Courses and gross billings per paid student enrollment of Youdao Premium Courses. The paid student enrollments for K-12 courses of Youdao Premium Courses increased by 309.3% year-over-year to 659,200 in the fourth quarter of 2020. Gross billings per paid student enrollment of Youdao Premium Courses increased by 19.7% year-over-year to RMB1,302 in the fourth quarter of 2020. Net revenues from learning products were RMB237.3 million (US$36.4 million) for the fourth quarter of 2020, a 253.8% increase from RMB67.1 million for the same period in 2019, which was primarily driven by the substantially increased sales volume of Youdao Dictionary Pen. Net revenues from online marketing services were RMB137.8 million (US$21.1 million) for the fourth quarter of 2020, representing a 39.9% increase from RMB98.5 million for the same period in 2019. The year-over-year increase in revenues from online marketing services was attributable to the increase in performance-based advertisement through third parties' internet properties. Gross Profit and Gross Margin Gross profit for the fourth quarter of 2020 was RMB525.5 million (US$80.5 million), representing a 329.2% increase from RMB122.4 million for the same period of 2019. Gross margin increased to 47.5% for the fourth quarter of 2020 from 29.8% for the same period of 2019. Gross margin for learning services increased to 53.9% for the fourth quarter of 2020 from 30.0% for the same period of 2019. The increase was due to improved economies of scale and the continuous optimization of Youdao's faculty compensation structure. Gross margin for learning products increased to 39.5% for the fourth quarter of 2020 from 26.7% for the same period of 2019. The improvement was mainly attributable to the substantially increased sales volume of Youdao Dictionary Pen, which carry a higher gross margin profile than other learning products. Gross margin for online marketing services was 26.9% for the fourth quarter of 2020, compared with 31.6% for the same period of 2019. The decrease was mainly attributable to the increase in performance-based advertisements through third parties' internet properties, which typically have a lower gross margin profile. Operating Expenses Total operating expenses for the fourth quarter of 2020 were RMB978.2 million (US$149.9 million), representing an increase of 199.7%, compared with RMB326.5 million for the same period of last year. Sales and marketing expenses for the fourth quarter of 2020 were RMB804.8 million (US$123.3 million), representing an increase of 291.1%, compared with RMB205.8 million for the same period of 2019. This increase was mainly driven by intensified sales and marketing efforts associated with student acquisition and branding enhancement, as well as increased compensation expenses incurred due to the expansion of the sales and marketing team for Youdao's online courses. Research and development expenses for the fourth quarter of 2020 were RMB128.1 million (US$19.6 million), representing an increase of 43.5%, compared with RMB89.3 million for the same period of 2019. The increase was primarily due to increased payroll-related expenses including share-based compensation expenses associated with an increased number of course development and technology professionals, as well as increased server and technical expenses due to the increased scale of online courses. General and administrative expenses for the fourth quarter of 2020 were RMB45.4 million (US$7.0 million), representing an increase of 44.4%, compared with RMB31.4 million for the same period of 2019. The increase was mainly attributable to the increase in employee headcount and related expenses in the fourth quarter of 2020. Loss from Operations Loss from operations for the fourth quarter of 2020 was RMB452.8 million (US$69.4 million), compared with RMB204.0 million for the same period in 2019. The margin of loss from operations was 40.9%, compared with 49.7% for the same period of last year. Net Loss Attributable to Youdao's Ordinary Shareholders Net loss attributable to Youdao's ordinary shareholders for the fourth quarter of 2020 was RMB447.8 million (US$68.6 million), compared with RMB205.7 million for the same period of last year. Non-GAAP net loss attributable to Youdao's ordinary shareholders for the fourth quarter of 2020 was RMB433.1 million (US$66.4 million), compared with RMB186.1 million for the same period of last year. Basic and diluted net loss per American Depositary Share ("ADS") attributable to ordinary shareholders for the fourth quarter of 2020 was RMB3.93 (US$0.60), compared with RMB1.95 for the same period of 2019. Non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders was RMB3.80 (US$0.58), compared with RMB1.76 for the same period of 2019. Balance Sheet As of December 31, 2020, Youdao's cash, cash equivalents, time deposits and short-term investments totaled RMB1.2 billion (US$183.1 million), compared with RMB1.6 billion as of December 31, 2019. For the fourth quarter of 2020, net cash provided by operating activities was RMB129.2 million (US$19.8 million), capital expenditures totaled RMB15.9 million (US$2.4 million), and depreciation and amortization expenses amounted to RMB4.8 million (US$0.7 million). As of December 31, 2020, the Company's contract liabilities, which mainly consisted of deferred revenues generated from Youdao's online courses, were RMB1.4 billion (US$220.8 million), representing an increase of 215.3% from RMB456.8 million as of December 31, 2019. Fiscal Year 2020 Financial Results Net Revenues Net revenues for 2020 were RMB3.2 billion (US$485.4 million), representing a 142.7% increase from RMB1.3 billion for 2019. Net revenues from learning services were RMB2.2 billion (US$330.2 million) for 2020, representing a 207.9% increase from RMB699.8 million for 2019. The increase was primarily attributable to the increased revenues generated from online courses, which were further driven by a substantial increase in both the paid student enrollments for K-12 courses of Youdao Premium Courses and gross billings per paid student enrollment of Youdao Premium Courses. The paid student enrollments for K-12 courses of Youdao Premium Courses increased by 357.0% year-over-year to 1.6 million in 2020. Gross billings per paid student enrollment of Youdao Premium Courses increased by 49.4% year-over-year to RMB1,343 in 2020. Net revenues from learning products were RMB540.0 million (US$82.8 million) for 2020, representing a 255.1% increase from RMB152.0 million for 2019. The increase was primarily attributable to the significant increase in sales volume of Youdao Dictionary Pen due to its growing popularity. Net revenues from online marketing services were RMB472.9 million (US$72.5 million) for 2020, representing a 4.4% increase from RMB453.0 million for 2019. Gross Profit and Gross Margin Gross profit for 2020 was RMB1.5 billion (US$222.9 million), compared with RMB370.6 million for 2019. Gross margin for 2020 was 45.9%, compared with 28.4% for 2019. Gross margin for learning services increased to 53.1% for 2020 from 26.7% for 2019, primarily attributable to improved economies of scale and faculty compensation structure optimization. Gross margin for learning products increased to 34.1% for 2020 from 29.2% for 2019, primarily attributable to more revenue arising from the sales of Youdao Dictionary Pen, which carried a higher gross margin profile than other products. Gross margin for online marketing services was 26.6% for 2020, compared with 30.8% for 2019. The decrease was mainly attributable to the distribution of advertisements through third parties' internet properties, which had a lower gross margin than last year. Operating Expenses Total operating expenses for 2020 were RMB3.3 billion (US$499.6 million), compared with RMB971.5 million for 2019. Sales and marketing expenses for 2020 were RMB2.7 billion (US$413.3 million), compared with RMB622.9 million for 2019. The increase was mainly driven by intensified sales and marketing efforts associated with student acquisition and branding enhancement, as well as increased compensation expenses incurred by the expansion of the sales and marketing team for Youdao's online courses. Research and development expenses for 2020 were RMB424.6 million (US$65.1 million), an increase of 54.2%, compared with RMB275.4 million for 2019. The increase was primarily due to increased payroll-related expenses including share-based compensation expenses, as well as rental and facility expenses associated with an increased number of course development and technology professionals. General and administrative expenses for 2020 increased to RMB138.5 million (US$21.2 million) from RMB73.3 million for 2019. The increase was mainly attributable to increased payroll-related expenses, fees paid to third-party professional service providers and increased credit losses allowance on accounts receivable. Loss from Operations Loss from operations for 2020 was RMB1.8 billion (US$276.7 million), compared with RMB600.9 million for 2019. The margin of loss from operations was 57.0%, compared with 46.1% for 2019. Net Loss Attributable to Youdao's Ordinary Shareholders Net loss attributable to Youdao's ordinary shareholders for 2020 was RMB1.8 billion (US$268.6 million), compared with RMB637.4 million for 2019. Non-GAAP net loss attributable to Youdao's ordinary shareholders for 2020 was RMB1.7 billion (US$262.3 million), compared with RMB612.3 million for 2019. Basic and diluted net loss per ADS attributable to ordinary shareholders for 2020 was RMB15.53 (US$2.38), compared with RMB6.68 for 2019. Non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders was RMB15.16 (US$2.32), compared with RMB6.42 for 2019. Operating Cash Flow For 2020, net cash used in operating activities was RMB321.6 million (US$49.3 million), capital expenditures totaled RMB36.9 million (US$5.6 million), and depreciation and amortization expenses amounted to RMB16.1 million (US$2.5 million). Completion of public offering of ADSs The Company completed a public offering of 7,000,000 ADSs with a total net proceeds of approximately US$232 million after deducting the underwriter commissions and relevant offering expenses in February 2021. Change in Segment Reporting To better reflect management's perspective and match the segment presentation with recent business developments, the Company changed its segment disclosure to separately report the results of its learning products business. As a result, since the fourth quarter of 2020 the Company has reported the following segments: learning services, learning products and online marketing services. The Company has retrospectively revised prior period segment information to conform to current period presentation. This change in segment reporting aligns with the manner in which the Company's chief operating decision maker ("CODM") currently receives and uses financial information to allocate resources and evaluate the performance of the Company's reporting segments. Notes to Unaudited Financial Information The unaudited financial information disclosed in this press release is preliminary. The audit of the financial statements and related notes to be included in the Company's annual report on Form 20-F for the year ended December 31, 2020 is still in progress. In addition, because an audit of the Company's internal controls over financial reporting in connection with section 404 of the Sarbanes-Oxley Act of 2002 has not yet been completed, the Company makes no representation as to the effectiveness of those internal controls as of the end of fiscal year 2020. Adjustments to the financial statements may be identified when the audit work is completed, which could result in differences between the Company's audited financial statements and this preliminary unaudited financial information. Conference Call Youdao's management team will host a teleconference call with simultaneous webcast at 6:00 a.m. Eastern Time on Thursday, February 25, 2021 (Beijing/Hong Kong Time: 7:00 p.m., Thursday, February 25, 2021). Youdao's management will be on the call to discuss the financial results and answer questions. Dial-in details for the earnings conference call are as follows: United States (toll free): +1-888-346-8982 International: +1-412-902-4272 Mainland China (toll free): 400-120-1203 Hong Kong (toll free): 800-905-945 Hong Kong: +852-3018-4992 Conference ID: 10151994 A live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.youdao.com. A replay of the conference call will be accessible by phone one hour after the conclusion of the live call at the following numbers, until March 4, 2021: United States: +1-877-344-7529 International: +1-412-317-0088 Replay Access Code: 10151994 About Youdao, Inc. Youdao, Inc. (NYSE: DAO) is a leading intelligent learning company in China dedicated to developing and using technologies to provide learning content, applications and solutions to users of all ages. Building on the popularity of its online knowledge tools such as Youdao Dictionary and Youdao Translation, Youdao now offers online courses covering a wide spectrum of age groups, subject matters, learning goals and areas of interest. In addition, Youdao has developed a variety of interactive learning apps and smart learning devices. Youdao was founded in 2006 as part of NetEase, Inc. (NASDAQ: NTES; HKEX: 9999), a leading internet technology company in China. For more information, please visit: http://ir.youdao.com. Non-GAAP Measures Youdao considers and uses non-GAAP financial measures, such as gross billings and non-GAAP net income/(loss) attributable to the Company's ordinary shareholders and non-GAAP basic and diluted earnings/(loss) per ADS, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Youdao defines gross billings for a specific period as the total amount of consideration for online courses sold on Youdao Premium Courses, NetEase Cloud Classroom and China University MOOC, net of the total amount of refunds, in such period. The management uses gross billings as a performance measurement because the Company generally bills students for the entire course tuition at the time of sale of the courses and recognizes revenue proportionally over an average of the learning periods of different online courses. Youdao defines non-GAAP net income/(loss) attributable to the Company's ordinary shareholders as net income/(loss) attributable to the Company's ordinary shareholders excluding share-based compensation expenses. Non-GAAP net income/(loss) attributable to the Company's shareholders enables Youdao's management to assess its operating results without considering the impact of share-based compensation expenses, which are non-cash charges. Youdao believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating the Company's current operating performance and prospects in the same manner as management does, if they so choose. Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools, which possibly does not reflect all items of expense that affect our operations. Share-based compensation expenses have been and may continue to be incurred in our business and are not reflected in the presentation of non-GAAP net income/(loss) attributable to the Company's ordinary shareholders. In addition, the non-GAAP financial measures Youdao uses may differ from the non-GAAP measures uses by other companies, including peer companies, and therefore their comparability may be limited. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and non-GAAP Results" set forth at the end of this release. The accompanying tables have more details on the reconciliations between our GAAP financial measures that are most directly comparable to non-GAAP financial measures. Youdao encourages you to review its financial information in its entirety and not rely on a single financial measure. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.5250 to US$1.00, the exchange rate on December 31, 2020 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. Safe Harbor Statement This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding such risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law. For investor and media inquiries, please contact: In China:Jeffrey WangYoudao, Inc. Tel: +86-10-8255-8963E-mail: IR@rd.netease.com The Piacente Group, Inc.Emilie WuTel: +86-21-6039-8363E-mail: youdao@thepiacentegroup.com In the United States:The Piacente Group, Inc. Brandi PiacenteTel: +1-212-481-2050E-mail: youdao@thepiacentegroup.com YOUDAO, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (RMB and USD in thousands) As of December 31, As of December 31, As of December 31, 2019 2020 2020 RMB RMB USD(1) Assets Current assets: Cash and cash equivalents 173,328 609,199 93,364 Time deposits 1,325,737 263 40 Short-term investments 121,126 584,999 89,655 Accounts receivable, net 200,675 268,830 41,200 Inventories, net 73,225 148,662 22,783 Amounts due from NetEase Group 14,930 4,081 625 Prepayment and other current assets 120,891 235,532 36,098 Total current assets 2,029,912 1,851,566 283,765 Non-current assets: Property and equipment, net 24,551 45,636 6,994 Operating lease right-of-use assets, net 23,873 105,865 16,225 Other assets, net 8,128 67,181 10,295 Total non-current assets 56,552 218,682 33,514 Total assets 2,086,464 2,070,248 317,279 Liabilities and Shareholders' Equity/(Deficit) Current liabilities: Accounts payables 62,675 141,304 21,656 Payroll payable 94,488 209,603 32,123 Amounts due to NetEase Group 48,126 67,230 10,303 Contract liabilities 456,805 1,440,489 220,765 Taxes payable 25,977 54,895 8,413 Accrued liabilities and other payables 192,643 602,044 92,267 Short-term loans from NetEase Group 878,000 878,000 134,559 Total current liabilities 1,758,714 3,393,565 520,086
NetEase Reports Fourth Quarter and Fiscal Year 2020 Unaudited Financial Results
BEIJING, Feb. 25, 2021 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), one of China's leading internet and online game services providers, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2020. Fourth Quarter 2020 Financial Highlights Net revenues were RMB19.8 billion (US$3.0 billion), an increase of 25.6% compared with the fourth quarter of 2019. - Online game services net revenues were RMB13.4 billion (US$2.1 billion), an increase of 15.5% compared with the fourth quarter of 2019. - Youdao net revenues were RMB1.1 billion (US$169.6 million), an increase of 169.7% compared with the fourth quarter of 2019. - Innovative businesses and others net revenues were RMB5.3 billion (US$805.3 million), an increase of 41.3% compared with the fourth quarter of 2019. Gross profit was RMB9.9 billion (US$1.5 billion), an increase of 20.9% compared with the fourth quarter of 2019. Total operating expenses were RMB6.9 billion (US$1.1 billion), an increase of 32.1% compared with the fourth quarter of 2019. Net income from continuing operations attributable to the Company's shareholders was RMB975.7 million (US$149.5 million), which includes net exchange losses of RMB1.8 billion (US$276.2 million) and net investment loss of RMB271.9 million (US$41.7 million). Non-GAAP net income from continuing operations attributable to the Company's shareholders was RMB1.6 billion (US$244.9 million). [1] Basic net income from continuing operations was US$0.04 per share (US$0.22 per ADS). Non-GAAP basic net income from continuing operations was US$0.07 per share (US$0.36 per ADS). [1] [1] As used in this announcement, non-GAAP net income from continuing operations attributable to the Company's shareholders and non-GAAP basic and diluted net income from continuing operations per ADS and per share are defined to exclude share-based compensation expenses. See "Unaudited Reconciliation of GAAP and Non-GAAP Results" at the end of this announcement. Fourth Quarter 2020 and Early 2021 Operational Highlights Expanded user base and diversified portfolio with new games launched in the Chinese market including: - Revelation mobile game, which was released in January 2021 and topped China's iOS download chart soon after its launch, capturing wide interest from players.- Introduced new titles including For All Time, Unknown Future, Akasha Book and Yu-Gi-Oh! Duel Links. Continued the popularity of a number of mobile titles that climbed China's iOS top grossing chart in the past few months including Fantasy Westward Journey and Westward Journey Online mobile games, Invincible and Life-After. Deepened NetEase Games' international reach with Knives Out leading Japan's iOS top grossing chart several times in the fourth quarter. Advanced exciting game pipeline, including Elysium of Legends, Infinite Lagrange, Harry Potter: Magic Awakened, The Lord of the Rings: Rise to War, Nightmare Breaker, Ghost World Chronicle, Diablo® Immortal™ and Pokémon Quest. Continued strong growth from Youdao's learning services and learning products for the fourth quarter of 2020, with net revenues up 198.8% and 253.8% year-over-year, respectively and positive net operating cash flow of approximately RMB129.0 million (US$19.8 million). "We maintained steady development across our primary businesses, with total net revenues of RMB19.8 billion in the fourth quarter, up 25.6% year-over-year," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Our online games business continued its strong performance during 2020, propelled by the sustained and growing popularity of our diversified titles. At the beginning of 2021, we launched Revelation mobile game, which gave us a wonderful start to the first quarter. We are also very excited to introduce a number of other new titles later this year, paving the way for our solid growth in 2021. "2020 was a challenging year for many businesses around the world. Our ability to weather these obstacles and grow each of our online games, online education, music and e-commerce businesses speaks to the strength of our model, which is centered around content creation and user experience. We are committed to generating even more value for our shareholders and communities through our dedication to innovation that thrills our users, diversification and international expansion that drive our revenue streams, and high-quality products and services that are synonymous with the NetEase brand," Mr. Ding concluded. Fourth Quarter 2020 Financial Results Net Revenues Net revenues for the fourth quarter of 2020 were RMB19,761.7 million (US$3,028.6 million), compared to RMB18,658.2 million and RMB15,734.8 million for the preceding quarter and the fourth quarter of 2019, respectively. Net revenues from online game services were RMB13,400.2 million (US$2,053.7 million) for the fourth quarter of 2020, compared to RMB13,862.0 million and RMB11,604.3 million for the preceding quarter and the fourth quarter of 2019, respectively. Net revenues from mobile games accounted for approximately 72.4% of net revenues from online game services for the fourth quarter of 2020, compared to 72.7% and 70.4% for the preceding quarter and the fourth quarter of 2019, respectively. Net revenues from Youdao were RMB1,106.8 million (US$169.6 million) for the fourth quarter of 2020, compared to RMB896.0 million and RMB410.4 million for the preceding quarter and the fourth quarter of 2019, respectively. Net revenues from innovative businesses and others were RMB5,254.8 million (US$805.3 million) for the fourth quarter of 2020, compared to RMB3,900.1 million and RMB3,720.0 million for the preceding quarter and the fourth quarter of 2019, respectively. Gross Profit Gross profit for the fourth quarter of 2020 was RMB9,927.8 million (US$1,521.5 million), compared to RMB9,885.8 million and RMB8,210.4 million for the preceding quarter and the fourth quarter of 2019, respectively. The quarter-over-quarter decrease in online game services gross profit was mainly due to slightly decreased net revenues from certain mobile games. The year-over-year increase was primarily due to increased net revenues from mobile games such as Fantasy Westward Journey H5, Sky, Life-After and Invincible, as well as PC games such as Fantasy Westward Journey Online. The quarter-over-quarter and year-over-year increases in Youdao gross profit were primarily due to increased net revenues from its learning services and learning products. The quarter-over-quarter increase in innovative businesses and others gross profit was primarily due to increased gross profit from advertising services and Yanxuan. The year-over-year increase was primarily due to improved performances from Yanxuan and NetEase Cloud Music. Gross Profit Margin Gross profit margin for online game services for the fourth quarter of 2020 was 63.1%, compared to 63.6% and 63.1% for the preceding quarter and the fourth quarter of 2019, respectively. Gross profit margin for online game services was generally stable, fluctuating within a narrow band based on the revenue mix of mobile and PC games, as well as self-developed and licensed games. Gross profit margin for Youdao for the fourth quarter of 2020 was 47.5%, compared to 45.9% and 29.8% for the preceding quarter and the fourth quarter of 2019, respectively. The quarter-over-quarter and year-over-year increases were mainly due to improved economies of scale and the continuous optimization of Youdao's faculty compensation structure, as well as substantially increased sales volume of Youdao Dictionary Pen, which has a comparatively higher gross profit margin. Gross profit margin for innovative businesses and others for the fourth quarter of 2020 was 18.0%, compared to 16.8% and 20.6% for the preceding quarter and the fourth quarter of 2019, respectively. The quarter-over-quarter increase was primarily due to increased gross profit margin from advertising services. The year-over-year decrease was primarily due to decreased gross profit margin from NetEase CC live streaming platform. Operating Expenses Total operating expenses for the fourth quarter of 2020 were RMB6,915.8 million (US$1,059.9 million), compared to RMB7,015.7 million and RMB5,234.0 million for the preceding quarter and the fourth quarter of 2019, respectively. The quarter-over-quarter decrease was mainly due to decreased marketing expenditures related to Youdao. The year-over-year increase was mainly due to increased marketing expenditures related to online game services and Youdao, as well as higher staff-related costs and research and development investments. Other Income Other income consisted of investment income/ (loss), interest income, exchange losses and others. The quarter-over-quarter and year-over-year decreases were mainly due to higher unrealized exchange losses arising from the Company's U.S. dollar-denominated bank deposits and short-term loan balances as the exchange rate of the U.S. dollar against the RMB fluctuated over the periods, as well as investment loss arising from fair value changes of equity investments with readily determinable fair value. Income Taxes The Company recorded a net income tax charge of RMB552.7 million (US$84.7 million) for the fourth quarter of 2020, compared to RMB342.7 million and RMB876.3 million for the preceding quarter and the fourth quarter of 2019, respectively. The effective tax rate for the fourth quarter of 2020 was 37.2%, compared to 10.9% and 22.1% for the preceding quarter and the fourth quarter of 2019, respectively. The effective tax rate represents certain estimates by the Company regarding the tax obligations and benefits applicable to it in each quarter. Net Income and Non-GAAP Net Income Net income from continuing operations attributable to the Company's shareholders for the fourth quarter of 2020 totaled RMB975.7 million (US$149.5 million) which includes net exchange losses of RMB1,801.9 million (US$276.2 million) and net investment loss of RMB271.9 million (US$41.7 million), compared to RMB2,998.2 million and RMB3,053.7 million for the preceding quarter and the fourth quarter of 2019, respectively. Non-GAAP net income from continuing operations attributable to the Company's shareholders for the fourth quarter of 2020 totaled RMB1,597.9 million (US$244.9 million), compared to RMB3,669.2 million and RMB3,662.3 million for the preceding quarter and the fourth quarter of 2019, respectively. NetEase reported basic and diluted net income from continuing operations per share of US$0.04 each for the fourth quarter of 2020, compared to US$0.14 and US$0.13, respectively, for the preceding quarter, and US$0.15 and US$0.14, respectively, for the fourth quarter of 2019. NetEase reported basic and diluted net income from continuing operations per ADS of US$0.22 each for the fourth quarter of 2020, compared to US$0.68 and US$0.67, respectively, for the preceding quarter, and US$0.72 each for the fourth quarter of 2019. Non-GAAP basic and diluted net income from continuing operations per share were US$0.07 each for the fourth quarter of 2020, compared to US$0.17 and US$0.16, respectively, for the preceding quarter and US$0.17 each for the fourth quarter of 2019. Non-GAAP basic and diluted net income from continuing operations per ADS were US$0.36 each for the fourth quarter of 2020, compared to US$0.83 and US$0.82, respectively, for the preceding quarter, and US$0.87 and US$0.86, respectively, for the fourth quarter of 2019. Fiscal Year 2020 Financial Results Net Revenues Net revenues for fiscal year 2020 were RMB73,667.1 million (US$11,290.0 million), compared to RMB59,241.1 million for fiscal year 2019. Net revenues from online game services were RMB54,608.7 million (US$8,369.2 million) for fiscal year 2020, compared to RMB46,422.6 million for fiscal year 2019. Net revenues from mobile games accounted for approximately 71.9% of net revenues from online game services for fiscal year 2020, compared to 71.4% for fiscal year 2019. Net revenues from Youdao were RMB3,167.5 million (US$485.4 million) for fiscal year 2020, compared to RMB1,304.9 million for fiscal year 2019. Net revenues from innovative businesses and others were RMB15,890.9 million (US$2,435.4 million) for fiscal year 2020, compared to RMB11,513.6 million for fiscal year 2019. Gross Profit Gross profit for fiscal year 2020 was RMB38,983.4 million (US$5,974.5 million), compared to RMB31,555.3 million for fiscal year 2019. The year-over-year increase in online game services gross profit was primarily attributable to increased revenue contribution from self-developed games such as Fantasy Westward Journey H5 and Fantasy Westward Journey 3D. The year-over-year increase in Youdao gross profit was primarily attributable to increased gross profit from its learning services and learning products. The year-over-year increase in innovative businesses and others gross profit was primarily due to improved performances from NetEase Cloud Music. Operating Expenses Total operating expenses for fiscal year 2020 were RMB24,445.0 million (US$3,746.4 million), compared to RMB17,764.6 million for fiscal year 2019. The year-over-year increase was primarily due to increased marketing expenditures related to online game services and Youdao, as well as higher research and development investments and staff-related costs. Other Income Other income consisted of investment income, interest income, exchange gains/ (losses) and others. The year-over-year decrease in other income was mainly due to higher net exchange losses recorded. Income Taxes The Company recorded a net income tax charge of RMB3,041.8 million (US$466.2 million) for fiscal year 2020, compared to RMB2,914.7 million for fiscal year 2019. The effective tax rate was 19.8% for fiscal year 2020, compared to 17.8% for fiscal year 2019. The higher effective tax rate for fiscal year 2020 was mainly due to increased losses from certain subsidiaries of the Company. Net Income and Non-GAAP Net Income Net income from continuing operations attributable to the Company's shareholders for fiscal year 2020 totaled RMB12,062.8 million (US$1,848.7 million), which includes net exchange losses of RMB3,112.2 million (US$477.0 million), compared to RMB13,275.0 million for fiscal year 2019. Non-GAAP net income from continuing operations attributable to the Company's shareholders for fiscal year 2020 totaled RMB14,706.0 million (US$2,253.8 million), compared to RMB15,662.7 million for fiscal year 2019. NetEase reported basic and diluted net income from continuing operations per share of US$0.56 and US$0.55, respectively, for fiscal year 2020, compared to US$0.63 each for fiscal year 2019. NetEase reported basic and diluted net income from continuing operations per ADS of US$2.80 and US$2.76, respectively, for fiscal year 2020, compared to US$3.16 and US$3.13, respectively, for fiscal year 2019. Non-GAAP basic and diluted net income from continuing operations per share were US$0.68 and US$0.67, respectively, for fiscal year 2020, compared to US$0.74 each for fiscal year 2019. Non-GAAP basic and diluted net income from continuing operations per ADS were US$3.41 and US$3.36, respectively, for fiscal year 2020, compared to US$3.73 and US$3.69, respectively, for fiscal year 2019. Quarterly Dividend The board of directors has approved a dividend of US$0.0120 per share (US$0.0600 per ADS) for the fourth quarter of 2020, to holders of ordinary shares and holders of ADSs as of the close of business on March 12, 2021, Hong Kong Time and New York Time, respectively, payable in U.S. dollars. For holders of ordinary shares, in order to qualify for the dividend, all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company's Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong no later than 4:30 p.m. on March 12, 2021 (Hong Kong Time). The payment date is expected to be on March 23, 2021 for holders of ordinary shares and on or around March 26, 2021 for holders of ADSs. NetEase paid a dividend of US$0.0464 per share (US$0.2320 per ADS) for the first quarter of 2020 in June 2020, a dividend of US$0.0594 per share (US$0.2970 per ADS) for the second quarter of 2020 in September 2020 and a dividend of US$0.0390 per share (US$0.1950 per ADS) for the third quarter of 2020 in December 2020. Starting in the second quarter of 2019, the Company's policy has been to set quarterly dividends at an amount equivalent to approximately 20%-30% of the Company's anticipated net income after tax in each fiscal quarter. The determination to make dividend distributions and the amount of such distributions in any particular quarter will be made at the discretion of the board of directors and will be based upon the Company's operations and earnings, cash flow, financial condition and other relevant factors. Other Information As of December 31, 2020, the Company's total cash and cash equivalents, current and non-current time deposits and short-term investments balance totaled RMB100,099.6 million (US$15,340.9 million), compared to RMB74,406.0 million as of December 31, 2019. Cash flow generated from continuing operating activities was RMB24,888.2 million (US$3,814.3 million) for fiscal year 2020, compared to RMB16,911.0 million for fiscal year 2019. Share Purchase / Repurchase Program On November 20, 2019, the Company announced that its board of directors had approved a share purchase program of up to US$20.0 million of Youdao's outstanding ADSs for a period not to exceed 12 months beginning on November 25, 2019. Under the terms of this program, NetEase may purchase Youdao's ADSs in open-market transactions on the New York Stock Exchange. At the end of this program on November 24, 2020, approximately 198,000 ADSs had been purchased for a total cost of US$3.4 million. On February 26, 2020, the Company announced that its board of directors had approved a share repurchase program of up to US$1.0 billion of the Company's outstanding ADSs for a period not to exceed 12 months beginning on March 2, 2020. On May 19, 2020, the Company announced that its board of directors had approved an amendment to such program to increase the total authorized repurchase amount to US$2.0 billion. Under the terms of this program, NetEase may repurchase its issued and outstanding ADSs in open-market transactions on the NASDAQ Global Select Market. As of December 31, 2020, approximately 21.1 million ADSs had been repurchased under this program for a total cost of US$1.6 billion. The Company also announced today that its board of directors has approved a new share repurchase program of up to US$2.0 billion of the Company's outstanding ADSs and ordinary shares in open market transactions for a period not to exceed 24 months beginning on March 2, 2021. The extent to which NetEase repurchases its ADSs and ordinary shares will depend upon a variety of factors, including market conditions. This program may be suspended or discontinued at any time. ** The United States dollar (US$) amounts disclosed in this announcement are presented solely for the convenience of the reader. Translations of amounts from RMB into United States dollars for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB6.5250 on December 31, 2020 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 31, 2020, or at any other certain date. The percentages stated are calculated based on RMB. Other Announcement The Company also announced today that Mr. Michael Tong has resigned from its board of directors for personal reasons, effective immediately. Mr. Tong's resignation did not result from any disagreement with the Company on any matter relating to the Company's operations, policies or practices. The Company's board now consists of six directors, five of whom are independent directors. Mr. William Ding stated, "Michael has been an important contributor to our board. Having joined our board in December 1999, he is our second longest serving director after myself, and we will miss him." Notes to Unaudited Financial Information The unaudited financial information disclosed in this announcement is preliminary. The audit of the financial statements and related notes to be included in the Company's annual report to shareholders for the year ended December 31, 2020 is still in progress. In addition, because an audit of the Company's internal controls over financial reporting in connection with section 404 of the Sarbanes-Oxley Act of 2002 has not yet been completed, the Company makes no representation as to the effectiveness of those internal controls as of the end of fiscal year 2020. Adjustments to the financial statements may be identified when the audit work is completed, which could result in significant differences between the Company's audited financial statements and this preliminary unaudited financial information. Conference Call NetEase's management team will host a teleconference call with simultaneous webcast at 7:00 a.m. New York Time on Thursday, February 25, 2021 (Beijing/Hong Kong Time: 8:00 p.m., Thursday, February 25, 2021). NetEase's management will be on the call to discuss the quarterly results and answer questions. Interested parties may participate in the conference call by dialing 1-646-828-8193 and providing conference ID: 1965811, 15 minutes prior to the initiation of the call. A replay of the call will be available by dialing 1-719-457-0820 and entering passcode 1965811#. The replay will be available through March 10, 2021. This call will be webcast live and the replay will be available for 12 months. Both will be available on NetEase's Investor Relations website at http://ir.netease.com/. About NetEase, Inc. As a leading internet technology company based in China, NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase") is dedicated to providing premium online services centered around innovative and diverse content, community, communication and commerce. NetEase develops and operates some of China's most popular mobile and PC games. In more recent years, NetEase has expanded into international markets including Japan and North America. In addition to its self-developed game content, NetEase partners with other leading game developers, such as Blizzard Entertainment and Mojang AB (a Microsoft subsidiary), to operate globally renowned games in China. NetEase's other innovative service offerings include the intelligent learning services of its majority-controlled subsidiary, Youdao (NYSE: DAO); music streaming through its leading NetEase Cloud Music business; and its private label e-commerce platform, Yanxuan. For more information, please visit: http://ir.netease.com/. Forward Looking Statements This announcement contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. In addition, statements that are not historical facts, including statements about NetEase's strategies and business plans, its expectations regarding the growth of its business and its revenue and the quotations from management in this announcement are or contain forward-looking statements. NetEase may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that the online game market will not continue to grow or that NetEase will not be able to maintain its position in that market in China or globally; the risk that COVID-19 or other health risks in China or globally could adversely affect the Company's operations or financial results; risks associated with NetEase's business and operating strategies and its ability to implement such strategies; NetEase's ability to develop and manage its operations and business; competition for, among other things, capital, technology and skilled personnel; potential changes in government regulation that could adversely affect the industry and geographical markets in which NetEase operates; the risk that NetEase may not be able to continuously develop new and creative online services or that NetEase will not be able to set, or follow in a timely manner, trends in the market; competition in NetEase's existing and potential markets; and the risk that fluctuations in the value of the Renminbi with respect to other currencies could adversely affect NetEase's business and financial results. Further information regarding these and other risks is included in NetEase's filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. NetEase does not undertake any obligation to update this forward-looking information, except as required under the applicable law. Non-GAAP Financial Measures NetEase considers and uses non-GAAP financial measures, such as non-GAAP net income from continuing operations attributable to the Company's shareholders and non-GAAP basic and diluted net income from continuing operations per ADS and per share, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). NetEase defines non-GAAP net income from continuing operations attributable to the Company's shareholders as net income from continuing operations attributable to the Company's shareholders excluding share-based compensation expenses. Non-GAAP net income from continuing operations attributable to the Company's shareholders enables NetEase's management to assess its operating results without considering the impact of share-based compensation expenses, which are non-cash charges. NetEase believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating the Company's current operating performance and prospects in the same manner as management does, if they so choose. NetEase also believes that the use of this non-GAAP financial measure facilitates investors' assessment of its operating performance. Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP net income from continuing operations attributable to the Company's shareholders is that it does not reflect all items of expense/ income that affect our operations. Share-based compensation expenses have been and may continue to be incurred in NetEase's business and are not reflected in the presentation of non-GAAP net income from continuing operations attributable to the Company's shareholders. In addition, the non-GAAP financial measures NetEase uses may differ from the non-GAAP measures used by other companies, including peer companies, and therefore their comparability may be limited. NetEase compensates for these limitations by reconciling non-GAAP net income from continuing operations attributable to the Company's shareholders to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. See "Unaudited Reconciliation of GAAP and Non-GAAP Results" at the end of this announcement. NetEase encourages you to review its financial information in its entirety and not rely on a single financial measure. Contact for Media and Investors: Margaret Shi Email: ir@service.netease.comTel: (+86) 571-8985-3378Twitter: https://twitter.com/NetEase_Global Brandi PiacenteEmail: netease@thepiacentegroup.comTel: (+1) 212-481-2050 NETEASE, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) December 31, December 31, December 31, 2019 2020 2020 RMB RMB USD (Note 1) Assets Current assets: Cash and cash equivalents 3,246,373 9,117,219 1,397,275 Time deposits 53,487,075 71,079,327 10,893,383 Restricted cash 3,150,354 3,051,386 467,645 Accounts receivable, net 4,169,358 4,576,445 701,371 Inventories, net 650,557 621,207 95,204 Prepayments and other current assets 4,817,422 6,112,433 936,771 Short-term investments 15,312,595 13,273,026 2,034,180 Assets held for sale 271,278 - - Total current assets 85,105,012 107,831,043 16,525,829 Non-current assets: Property, equipment and software, net 4,621,712 4,555,406 698,147 Land use right, net 3,707,179 4,178,257 640,346 Deferred tax assets 903,904 1,086,759 166,553 Time deposits 2,360,000 6,630,000 1,016,092 Other long-term assets 15,424,166 17,593,117 2,696,263 Assets held for sale 2,398 - - Total non-current assets 27,019,359 34,043,539 5,217,401 Total assets 112,124,371 141,874,582 21,743,230 Liabilities, Redeemable Noncontrolling Interests and Shareholders' Equity Current liabilities: Accounts payable 1,212,303 1,134,413 173,856 Salary and welfare payables 2,957,360 3,538,732 542,334 Taxes payable 3,156,513 4,282,835 656,373 Short-term loans 16,828,226 19,504,696 2,989,225 Deferred revenue 8,602,227 10,945,143 1,677,417 Accrued liabilities and other payables 5,484,228 7,337,672 1,124,548 Liabilities held for sale 2,156 - - Total current liabilities 38,243,013 46,743,491 7,163,753 Non-current liabilities: Deferred tax liabilities 382,030 713,439 109,339 Other long-term payable 456,912 623,728 95,590 Liabilities held for sale 961 - - Total non-current liabilities 839,903 1,337,167 204,929 Total liabilities 39,082,916 48,080,658 7,368,682
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Daqo New Energy to Announce Unaudited Fourth Quarter and Fiscal Year 2020 Results on March 9, 2021
SHANGHAI, Feb. 25, 2021 /PRNewswire/ -- Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced it plans to release its unaudited financial results for the fourth quarter and fiscal year 2020 ended December 31, 2020 before U.S. markets open on Tuesday, March 9, 2021. The Company has scheduled a conference call to discuss the results at 8:00 AM U.S. Eastern Time on March 9, 2021 (9:00 PM Beijing / Hong Kong time on the same day). The dial-in details for the earnings conference call are as follows: Participant dial in (U.S. toll free): +1-888-346-8982Participant international dial in: +1-412-902-4272China mainland toll free: 4001-201203Hong Kong toll free: 800-905945Hong Kong local toll: +852-301-84992 Please dial in 10 minutes before the call is scheduled to begin and ask to join the Daqo New Energy Corp. call. Webcast link: https://services.choruscall.com/links/dq210309.html A replay of the call will be available 1 hour after the conclusion of the conference call through March 16, 2021. The dial in details for the conference call replay are as follows: U.S. toll free: +1-877-344-7529International toll: +1-412-317-0088Canada toll free: 855-669-9658Replay access code: 10152748 To access the replay through an international dial-in number, please select the link below. https://services.choruscall.com/ccforms/replay.html Participants will be asked to provide their name and company name upon entering the call. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, Daqo's strategic and operational plans in this announcement contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the demand for photovoltaic products and the development of photovoltaic technologies; global supply and demand for polysilicon; alternative technologies in cell manufacturing; the Company's ability to significantly expand its polysilicon production capacity and output; the reduction in or elimination of government subsidies and economic incentives for solar energy applications; the Company's ability to lower its production costs; and the duration of the coronavirus outbreak and its impact on the Company's business and financial performance. Further information regarding these and other risks is included in the reports or documents that the Company has filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date hereof, and the Company undertakes no duty to update such information or any forward-looking statement, except as required under applicable law. About Daqo New Energy Corp. Daqo New Energy Corp. (NYSE: DQ) ("Daqo" or the "Company") is a leading manufacturer of high-purity polysilicon for the global solar PV industry. Founded in 2007, the Company is one of the world's lowest cost producers of high-purity polysilicon. Daqo's highly-efficient and technically advanced manufacturing facility in China currently has an annual polysilicon nameplate capacity of 70,000 metric tons. For more information, please visit http://www.dqsolar.com Daqo New Energy Corp.Investor RelationsPhone: +86-187 1658 5553Email: dqir@daqo.com ChristensenIn ChinaMr. Rene VanguestainePhone: +86 178 1749 0483Email: rvanguestaine@christensenir.com In the U.S. Mr. Tip Fleming Phone: +1-917-412-3333 Email: tfleming@Christensenir.com Related Links :http://www.dqsolar.com
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Wisers Co-Creates A Big Data Trade Sentiment Index That Quantifies the Impact of China/US Trade Situations on Global Equity Markets
Analysis reveals that 9% of model's capacity to explain stock price movements can be attributed to sentiment about China/US trade in Chinese social mediaHONG KONG, Feb. 25, 2021 /PRNewswire/ -- A big data trade sentiment index (TSI) created by data and AI experts and economists from Wisers Information Limited, the Bank of International Settlement, and Harvard University's Kennedy School reveals the impact of China/US trade situations on 60 global equity markets. Textual analysis and deep learning were applied to determine the sentiment of Chinese social media and online news articles regarding China/US trade over a 2.5 year period and evaluate its capacity to explain stock price variability at country, sectoral and firm levels. The analysis revealed that sentiment about China/US trade had a broad and significant impact on global equity markets, specifically 10% of the model's capacity to explain stock market movements in countries that are more exposed to the China-US value chain. Sentiments from social media contributed 9% of the total impact, whereas sentiments from traditional media (i.e. magazines and newspapers) accounted for just 1%. The TSI analysis identified stock price influences that extended beyond the traditional drivers of equity markets such as changes in the value of the US dollar, oil prices, measures of risk aversion and monetary policy. Looking at the effects across jurisdictions, no equity markets benefited from deteriorated trade sentiment and Asian markets tended to be particularly affected. As would be expected, the equity returns of US firms with larger revenue from China were more sensitive to trade sentiment changes, as were the sectors most affected by tariffs – such as telecommunications and IT. "Clearly trade situations between China and US played an important role in swinging global stock markets but the effects are difficult to quantify. Our study breaks new ground in several ways," said Dr. Chao He, Vice President and Head of AI of Wisers Information Limited. "We used our proprietary deep learning sentiment analysis model to analyse the positive or negative tone of the media coverage instead of just counting keywords and articles, we looked at a large variety of data sources beyond news media coverage and single media channels, and we extended our analysis over years instead of days." The pool of approximately 3.5 billion articles from 74,020 media sources provided by Wisers spanned January 2018 to June 2019. The enormous size and variety of sources in the data base enabled the deployment of big data solutions. The research team selected a broad spectrum of media outlets, of which more than 97% were social media (web media articles, Weibo and WeChat posts, and discussion boards and other microblogs) and 2.6% were traditional media. Only 9% of the total sources directly focus on finance and economics. 92% of the articles originated from publishers in Greater China including 72% from Mainland China and 9% from Hong Kong and 11% from Taiwan. Among other countries, 4% of data are from the USA, while the residual 4% comes from 81 other countries (Pakistan, India, UAE and UK sources account for half, around 2%). A newer class of sentiment analysis technique was deployed that uses deep learning techniques to capture the semantic context for analysing the positive or negative tone of an article, instead of using predefined keywords. The research was conducted by an international team including Marlene Amstad, Harvard University Kennedy School and Asian Bureau of Finance and Economic Research (ABFER); Leonardo Gambacorta, Bank for International Settlements (BIS) and Centre for Economic Policy Research (CEPR); Chao He, Wisers Information Limited; and Dora Xia (BIS), and published as a BIS and CEPR Working Paper, ABFER members paper and Harvard Kennedy School M-RCBG Associate Working Paper. The full text of the working paper is available here. About Wisers Information Founded in Hong Kong in 1998, Wisers is the world's leading expert in all-media big data smart business intelligence solutions. Wisers has specialised expertise to help financial services companies make smart decisions. Clients from equities, insurance, investment banking, private and many other financial sectors turn to Wisers for data-driven solutions tailored to their needs. Wisers AI Labs applies specialized AI models and leading NLP technologies across a range of risk Identification and management solutions. Based on the intrinsic risk control factors embedded in news and social media, Wisers monitors and discovers potential risks through relevancy, sentiments, topics, and upstream and downstream relationships, etc. and leverages knowledge graph and massive media data to dig out explicit and implicit relationships between companies, senior executives, shareholders and other business entities and people to helps financial clients to gain a panoramic view of their customers and automatically identify important and risky ones. https://www.wisers.com/
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IT Tech Packaging, Inc. Announces Pricing of Approximately $20.0 Million Offering of Common Stock and Warrants
BAODING, China, Feb. 25, 2021 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE MKT: ITP) ("IT Tech Packaging" or "the Company"), a leading manufacturer and distributor of diversified paper products in North China, announced today the pricing of an underwritten offering of 26,666,666 shares of its common stock and warrants to purchase up to an aggregate of 13,333,333 shares of its common stock. Each share of common stock is being sold together with a warrant to purchase one half share of common stock at a combined price to the public of $0.75. Gross proceeds before underwriting discounts and commissions and estimated offering expenses, are expected to be $20.0 million. The warrants will be immediately exercisable at a price of $0.75 per share of common stock and will expire five years from the date of issuance. The shares of common stock and the accompanying warrants can only be purchased together in the offering but will be issued separately and will be immediately separable upon issuance. The offering is expected to close on or about March 1, 2021, subject to customary closing conditions. Maxim Group LLC is acting as the sole book-running manager for the offering. The Company also has granted to the underwriter a 45-day option to purchase up to an additional 2,611,200 shares of common stock and/or warrants to purchase up to 1,305,600 shares of common stock, at the public offering price less discounts and commissions. The securities described above are being offered by IT Tech Packaging pursuant to a registration statement (File No. 333-223160) that was filed with the U.S. Securities and Exchange Commission (SEC) on February 22, 2018 and declared effective on June 19, 2018 and a registration statement (File No. 333-.253476) that was filed on February 24, 2021 and became effective upon filing with the SEC. The securities are being offered by means of a prospectus supplement and accompanying prospectus, forming part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to this offering have been filed with the SEC. Electronic copies of the preliminary prospectus supplement and the accompanying prospectus relating to this offering may be obtained from Maxim Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, at 212-895-3745. Electronic copies of the preliminary prospectus supplement and accompanying prospectus are also available on the website of the SEC at www.sec.gov. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. About IT Tech Packaging, Inc. Founded in 1996, IT Tech Packaging, Inc. is a leading manufacturer and distributor of diversified paper products in North China. Using recycled paper as its primary raw material (with the exception of its tissue paper products), ITP produces and distributes three categories of paper products: corrugating medium paper, offset printing paper and tissue paper products. With production based in Baoding and Xingtai in North China's Hebei Province, ITP is located strategically close to the Beijing and Tianjin region, home to a growing base of industrial and manufacturing activities and one of the largest markets for paper products consumption in the country. ITP has been listed on the NYSE MKT since December 2009. Safe Harbor Statement This press release may contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's latest annual report on Form 10-K. All information provided in this press release speaks as of the date hereof. Except as otherwise required by law, the Company undertakes no obligation to update or revise its forward-looking statements. For further information, please contact: At the CompanyEmail: ir@itpackaging.cn Tel: +86-312-8698215 Investor Relations: Janice Wang+86-138-1176-8559EverGreen Consulting Inc.Email: ir@changqingconsulting.com Related Links :http://www.itpackaging.cn/
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Wellington Management Expands Private Investing Capabilities with New Climate-Focused Senior Investors
HONG KONG and SINGAPORE, Feb. 25, 2021 /PRNewswire/ -- Wellington Management, one of the world's largest independent investment management firms, today announced it has hired two senior investors focused on private market sustainable investing. This additional investment in resources builds on the firm's 14 years in climate investing, 27 years in alternatives investing and close to US$5 billion in dedicated committed capital in the private markets. The new investors include Greg Wasserman, who brings 20 years of venture and growth investment experience across energy transformation, mobility, enterprise digitization, infrastructure, and fintech, the majority of which has been focused on climate solutions and sustainability, and Sean Petersen, who brings 15 years of global venture investing experience focused on climate, e-logistics, education and health. The new investors bring significant venture capital background with deep experience leading rounds of financing in companies targeting climate change. Michael Carmen, senior managing director, and co-head of Private Investments at Wellington, said, "Greg and Sean's skill and experience investing in private companies developing products and services that address climate change will augment Wellington's deal flow and strengthen the value we bring to our partners." Prior to joining Wellington, Mr. Wasserman invested in technology, innovation and climate-related strategies at Generation Investment Management, Goldman Sachs and Galaxy Digital. He holds a bachelor's degree from The George Washington University. Mr. Petersen joins Wellington from AI Fund, an early-stage venture capital fund, where he served as a General Partner. Prior to that, he held roles with the International Finance Corporation (IFC) where he focused on making direct venture investments globally, and with Good Energies, where he served as a Director focusing on clean energy venture capital investments. Sean holds a B.Sc. in Chemical Engineering from Rensselaer Polytechnic Institute and an MBA from the Wharton School of the University of Pennsylvania. "Climate change is a defining issue of our time, and the capital markets will play a critical role in meeting this challenge," said Greg Wasserman, Lead Private Climate Investor. "I'm excited to join Wellington and focus on investing in disruptive private companies that are developing tech-enabled solutions to address climate change. I think the firm is a leader in climate and sustainability, with exceptional global investment capabilities. The Wellington team has built an impressive and differentiated private market investment platform that leverages the firm's strengths, and Sean and I look forward to being part of the continued growth." The hiring of Mr. Wasserman and Mr. Petersen's is another example of Wellington's private equity and climate investing leadership, in addition to the firm's partnership with the Woodwell Climate Research Center and its commitment as a founding member of the Net Zero Asset Managers initiative. For more information, please visit https://www.wellington.com/. About Wellington Management Tracing its history to 1928, Wellington Management is one of the world's largest independent investment management firms, serving as a trusted adviser to over 2,200 clients in more than 60 countries. The firm manages more than US$1 trillion for pensions, endowments and foundations, insurers, family offices, fund sponsors, global wealth managers, and other clients. As a private partnership whose only business is investment management, the firm is able to align its long-term views and interests with those of its clients. The firm offers comprehensive investment management capabilities that span nearly all segments of the global capital markets, including equity, fixed income, multi-asset, and alternative strategies. With more than 800 investment professionals located in offices around the world, Wellington pairs deep multi-disciplinary research resources with independent investment teams operating in an entrepreneurial "boutique" environment. For more information, please visit https://www.wellington.com/. Media Contact Belmont Communications on behalf of Wellington Management APAC Holly Huangwmc.asia@belmontcomms.co+65 6832 5070 Related Links :http://www.wellington.com
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Global Cord Blood Corporation Reports Financial Results for the Third Quarter and First Nine Months of Fiscal 2021
Added 17,802 New Subscribers in 3Q21Conference Call to be Held on February 25, 2021, at 8:00 a.m. ETHONG KONG, Feb. 25, 2021 /PRNewswire/ -- Global Cord Blood Corporation (NYSE: CO) ("GCBC" or the "Company"), China's leading provider of cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services, today announced its unaudited financial results for the third quarter and first nine months of fiscal 2021, ended December 31, 2020. Third Quarter Fiscal 2021 Highlights Revenues decreased by 13.1% year-over-year ("YoY") to RMB290.8 million ($44.6 million). New subscribers and accumulated subscriber base were 17,802 and 882,982[1], respectively. Gross profit decreased by 13.1% YoY to RMB245.9 million ($37.7 million). Gross margin remained at 84.6%, same as the prior year period. Operating income decreased by 18.9% YoY to RMB124.0 million ($19.0 million). Operating margin decreased to 42.6% from 45.7% in the prior year period. Operating income before depreciation and amortization ("non-GAAP operating income"[2]) decreased by 17.4% YoY to RMB136.3 million ($20.9 million). Net income attributable to the Company's shareholders decreased by 19.6% to RMB116.6 million ($17.9 million). Net cash provided by operating activities was RMB145.0 million ($22.2 million). Nine Month Fiscal 2021 Highlights Revenues decreased by 7.0% YoY to RMB857.3 million ($131.4 million). New subscribers and accumulated subscriber base were 52,678 and 882,982[1], respectively. Gross profit decreased by 6.7% YoY to RMB724.3 million ($111.0 million). Operating income decreased by 3.2% YoY to RMB396.6 million ($60.8 million). Non-GAAP operating income[2] decreased by 3.0% YoY to RMB433.5 million ($66.4 million). Net income attributable to the Company's shareholders increased by 1.8% to RMB380.5 million ($58.3 million), mainly due to the increase in fair value of equity securities ("mark-to-market gains"). Net cash provided by operating activities was RMB419.6 million ($64.3 million). "Despite the ongoing challenges due to COVID-19, lower newborn numbers, and cautious consumer sentiment, we managed to recruit 17,802 new subscribers in the third quarter, keeping us on track to meet our annual target," said Ms. Ting Zheng, Chief Executive Officer and Chairperson of GCBC. "Although the National Health Commission announced a new policy that no cord blood banking license applications would be accepted in 2021, new developments on industry regulations remain largely uncertain. As such, we must continue to communicate with regulatory bodies and remain vigilant regarding other changes that may arise within the industry. We intend to leverage our advantages as the industry leader to increase penetration in existing markets and seize available opportunities to expand our business and services." Summary – Third Quarter and Nine Months Ended December 31, 2019 and 2020 Three Months Ended December 31, Nine Months Ended December 31, 2019 2020 2019 2020 (in thousands) RMB RMB US$ RMB RMB US$ Revenues 334,733 290,798 44,567 921,572 857,318 131,389 Gross Profit 283,127 245,920 37,689 775,902 724,279 111,000 Operating Income[3] 152,873 123,957 18,997 409,694 396,627 60,785 Change in Fair Value of Equity Securities 8,047 6,003 920 10,983 30,107 4,614 Net Income Attributable to the Company's Shareholders 145,013 116,570 17,865 373,710 380,513 58,315 Earnings per Ordinary Share (RMB/US$) – Basic 1.19 0.96 0.15 3.07 3.13 0.48 – Diluted 1.19 0.96 0.15 3.07 3.13 0.48 Revenues Breakdown (%) Processing Fees and Other Services 65.3% 56.8% 63.6% 57.3% Storage Fees 34.7% 43.2% 36.4% 42.7% New Subscribers (persons) 23,387 17,802 65,753 52,678 Total Accumulated Subscribers (persons) 815,000 882,982[1] 815,000 882,982[1] Summary – Selected Cash Flow Statement Items Three Months Ended December 31, Nine Months Ended December 31, 2019 2020 2019 2020 (in thousands) RMB RMB US$ RMB RMB US$ Net cash provided by operating activities 156,031 144,988 22,222 534,042 419,631 64,313 Net cash used in investing activities (139,806) (5,996) (919) (145,035) (17,316) (2,654) Net cash used in financing activities - - - (4,039) (6,074) (931) Third Quarter Fiscal 2021 Financial Results REVENUES. Revenues decreased by 13.1% YoY to RMB290.8 million ($44.6 million) in the third quarter of fiscal 2021, mainly due to a drop in new subscribers which resulted in lower revenues from processing fees and other services. During the reporting quarter, the 2019 novel coronavirus ("COVID-19") pandemic continued to affect the Company's hospital channels and business operations. In addition, newborn numbers in the Company's operating markets remained on a downward trend. These factors led to a 23.9% YoY decrease in new subscribers to 17,802. Revenues generated from processing fees and other services in the reporting quarter decreased by 24.4% YoY to RMB165.2 million ($25.3 million), representing 56.8% of total revenues compared to 65.3% in the prior year period. As of December 31, 2020, the accumulated subscriber base had expanded to 882,982[1]. Revenues generated from storage fees increased by 8.0% YoY to RMB125.6 million ($19.3 million) in the reporting quarter. GROSS PROFIT. Gross profit for the third quarter decreased by 13.1% YoY to RMB245.9 million ($37.7 million). As general cost reductions resulting from lower volumes were offset by higher costs associated with raw material and labor, gross margin remained at 84.6%, same as in the prior year period. OPERATING INCOME. Operating income for the reporting quarter decreased by 18.9% YoY to RMB124.0 million ($19.0 million). Operating margin was 42.6% compared to 45.7% in the prior year period. Depreciation and amortization expenses for the third quarter were RMB12.3 million ($1.9 million), compared to RMB12.1 million in the prior year period. Non-GAAP operating income[2] decreased by 17.4% YoY to RMB136.3 million ($20.9 million) in the reporting quarter. Research and Development Expenses. As the Company continued to support science and technology advancement related to the utilization of cord blood stem cells through old and new collaborations, research and development expenses in the third quarter increased to RMB9.0 million ($1.4 million) from RMB6.4 million in the prior year period. Sales and Marketing Expenses. During the reporting quarter, the Company enhanced its marketing and promotional efforts, resulting in higher advertising and promotional expenses. The impact was, however, partially offset by lower staff renumeration on the back of a smaller salesforce. As a result, sales and marketing expenses decreased by 9.1% YoY to RMB69.0 million ($10.6 million). General and Administrative Expenses. General and administrative expenses decreased by 8.2% YoY to RMB44.0 million ($6.7 million) due to reduced staff costs and professional fees while partially offset by higher provisions. General and administrative expenses as a percentage of revenues was 15.1% compared to 14.3% in the prior year period. OTHER INCOME. Change in fair value of equity securities. In the reporting period, the Company recognized a mark-to-market gain of RMB6.0 million ($0.9 million), compared to a mark-to-market gain of RMB8.0 million in the prior year period. The changes were mainly attributable to the Company's investments in equity securities. NET INCOME ATTRIBUTABLE TO THE COMPANY'S SHAREHOLDERS. Income before income tax for the third quarter decreased by 18.9% YoY to RMB139.4 million ($21.4 million). Income tax expense for the third quarter was RMB21.2 million ($3.3 million). Net income attributable to the Company's shareholders for the reporting quarter decreased by 19.6% YoY to RMB116.6 million ($17.9 million). Net margin for the reporting quarter was 40.1%. EARNINGS PER SHARE. Basic and diluted earnings per ordinary share for the third quarter of fiscal 2021 was RMB0.96 ($0.15). Nine Month Fiscal 2021 Financial Results Total revenues for the first nine months of fiscal 2021 decreased by 7.0% YoY to RMB857.3 million ($131.4 million). The decrease was mainly due to the decline in new subscribers. Revenues from processing fees and other services decreased by 16.3% YoY to RMB491.1 million ($75.3 million), whereas revenues from storage fees increased by 9.2% YoY to RMB366.2 million ($56.1 million). Gross profit decreased by 6.7% YoY to RMB724.3 million ($111.0 million). Operating income decreased by 3.2% YoY to RMB396.6 million ($60.8 million). Non-GAAP operating income[2] decreased by 3.0% YoY to RMB433.5 million ($66.4 million). Net income attributable to the Company's shareholders improved by 1.8% to RMB380.5 million ($58.3 million). Basic and diluted earnings per ordinary share increased to RMB3.13 ($0.48). Net cash provided by operating activities in the first nine months of fiscal 2021 was RMB419.6 million ($64.3 million). Corporate Developments On June 4, 2019, the Board of Directors of the Company (the "Board") received a non-binding proposal letter (the "Cordlife Proposal") from Cordlife Group Limited ("Cordlife"), a company listed on the Mainboard of the Singapore Exchange Securities Trading Limited ("SGX"), pursuant to which Cordlife proposed to combine its business with that of the Company, by way of a statutory merger. According to the Cordlife Proposal, Cordlife would issue approximately 2,497.9 million ordinary shares at an issue price of SGD0.5 per ordinary share in exchange for all of the Company's outstanding ordinary shares at $7.50 per ordinary share. Upon completion of the proposed transaction, the Company's ordinary shares would be delisted from the New York Stock Exchange, and Cordlife ordinary shares would continue to trade on the SGX. On June 5, 2019, the Board formed a special committee of independent directors (the "Special Committee"), unaffiliated with Cordlife, to evaluate such proposal. On November 11, 2019, the Company appointed Mr. Jack Chow as an independent non-executive director ("INED") of the Board. Mr. Chow has extensive professional experience and a broad network in the finance and investment industry. He replaced Mr. Mark Chen as a member of the Audit Committee and Ms. Jennifer Weng as a member of the Special Committee. Mr. Chow also joined the Board's Compensation Committee and Nominating and Corporate Governance Committee. On February 6, 2020, the Company appointed Mr. Jacky Cheng as an INED of the Board. Mr. Cheng has extensive professional experience and knowledge of legal and compliance as well as Chinese laws. He joined as a member of both the Board's Compensation Committee and the Company's Special Committee. Currently, the Special Committee is composed of four members, including Mr. Mark Chen, Dr. Ken Lu, Mr. Jack Chow, and Mr. Jacky Cheng. On February 11, 2021, the Company announced that the Board and the board of Cordlife have mutually agreed to discontinue any further discussions regarding the Cordlife Proposal. Conference Call The Company will host a conference call at 8:00 a.m. ET on Thursday, February 25, 2021, to discuss its financial performance and give a brief overview of the Company's recent developments, followed by a question-and-answer session. Interested parties can access the audio webcast through the Company's IR website at http://ir.globalcordbloodcorp.com. A replay of the webcast will be accessible two hours after the conference call and available for seven days at the same URL above. Listeners can also access the call by dialing 1-646-722-4977 or 1-855-824-5644 for US callers, or +852-3027-6500 for Hong Kong callers, access code: 28530146#. [1] During the three months and nine months ended December 31, 2020, 17,802 and 52,678 new subscribers were recruited, respectively. During the three months and nine months ended December 31, 2020, the Company determined that the recoverability of 2,000 and 2,790 private cord blood units was remote; therefore, the Company terminated their subscription services according to the subscription contracts. Out of these prior private cord blood units, 1,600 and 2,390 prior private cord blood units were being treated as if they were donated cord blood units and will be part of the Company's non-current inventories. Hence, the net accumulated subscriber base was 882,982 as of December 31, 2020. [2] See exhibit 3 to this press release for a reconciliation of non-GAAP operating income to exclude the non-cash items related to the depreciation and amortization expenses to the comparable financial measure prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). [3] The reported operating income for the three months ended December 31, 2019 and 2020 included depreciation and amortization expenses related to property, plant and equipment and intangible assets of RMB12.1 million and RMB12.3 million ($1.9 million), respectively. The reported operating income for the nine months ended December 31, 2019 and 2020 included depreciation and amortization expenses related to property, plant and equipment and intangible assets of RMB37.0 million and RMB36.9 million ($5.7 million), respectively. Use of Non-GAAP Financial Measures GAAP results for the three months and nine months ended December 31, 2020, include non-cash items related to depreciation and amortization expenses. To supplement the Company's unaudited condensed consolidated financial statements presented on a U.S. GAAP basis, the Company has provided adjusted financial information excluding the impact of these items in this press release. The non-GAAP financial measure represents non-GAAP operating income. Such adjustment is a departure of U.S. GAAP; however, the Company's management believes that these adjusted measures provide investors with a better understanding of how the results relate to the Company's historical performance. Also, management uses non-GAAP operating income as a measurement tool for evaluating actual operating performance compared to budget and prior periods. These adjusted measures should not be considered an alternative to operating income, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. These measures are not necessarily comparable to a similarly titled measure of another company. A reconciliation of the adjustments to U.S. GAAP results appears in exhibit 3 accompanying this press release. This additional adjusted information is not meant to be considered in isolation or as a substitute for U.S. GAAP financials. The adjusted financial information that the Company provides also may differ from the adjusted information provided by other companies. About Global Cord Blood Corporation Global Cord Blood Corporation is the first and largest umbilical cord blood banking operator in China in terms of geographical coverage and the only cord blood banking operator with multiple licenses. Global Cord Blood Corporation provides cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services. For more information, please visit the Company's website at: http://www.globalcordbloodcorp.com. Safe Harbor Statement This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or the Company's future financial performance. The Company has attempted to identify forward-looking statements by terminology including "anticipates", "believes", "expects", "can", "continue", "could", "estimates", "intends", "may", "plans", "potential", "predict", "should" or "will" or the negative of these terms or other comparable terminology. These statements are only predictions, uncertainties and other factors may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The information in this press release is not intended to project future performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company does not guarantee future results, levels of activity, performance or achievements. The Company expectations are as of the date this press release is issued, and the Company does not intend to update any of the forward-looking statements after the date this press release is issued to conform these statements to actual results, unless required by law. The forward-looking statements included in this press release are subject to risks, uncertainties and assumptions about the Company's businesses and business environments. These statements reflect the Company's current views with respect to future events and are not a guarantee of future performance. Actual results of the Company's operations may differ materially from information contained in the forward-looking statements as a result of risk factors some of which include, among other things: the effects of the current COVID-19 outbreak, including the inability of the Company's salesforce to return to work due to current lockdowns implemented in various cities in the PRC and the imposition by some hospitals in the PRC of restrictions on entrance to solely to hospital staff and patients; levels of consumer confidence in the healthcare services sector generally in the PRC as a result of the outbreak; the length of the COVID-19 outbreak and severity of such outbreak across the globe; the pace of recovery following the COVID-19 outbreak; continued compliance with government regulations regarding cord blood banking in the People's Republic of China, or PRC and any other jurisdiction in which the Company conducts its operations; changing legislation or regulatory environments in the PRC and any other jurisdiction in which the Company conducts its operations; the acceptance by subscribers of the Company's different pricing and payment options and reaction to the introduction of the Company's premium-quality pricing strategy; demographic trends in the regions of the PRC in which the Company is the exclusive licensed cord blood banking operator; labor and personnel relations; the existence of a significant shareholder able to influence and direct the corporate policies of the Company; credit risks affecting the Company's revenue and profitability; changes in the healthcare industry, including those which may result in the use of stem cell therapies becoming redundant or obsolete; the Company's ability to effectively manage its growth, including maintaining effective controls and procedures and attracting and retaining key management and personnel; changing interpretations of generally accepted accounting principles; the availability of capital resources, including in the form of capital markets financing opportunities, in light of legislative developments in the U.S. affecting listed issuers whose independent registered public accounting firms are based in China and not subject to U.S. Public Company Accounting Oversight Board inspections, international pressure on trade and currency against the PRC and its potential impact on the PRC consumer behavior, as well as general economic conditions, and other relevant risks detailed in the Company's filings with the Securities and Exchange Commission in the United States. This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars as of and for the period ended December 31, 2020 were made at the noon buying rate of RMB6.5250 to $1.00 on December 31, 2020 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York. Global Cord Blood Corporation makes no representation that the Renminbi or U.S. dollar amounts referred to in this press release could have been or could be converted into U.S. dollars or Renminbi, at any particular rate or at all. For more information, please contact: Global Cord Blood CorporationInvestor Relations DepartmentTel: (+852) 3605-8180Email: ir@globalcordbloodcorp.com ICR, Inc.William ZimaTel: (+86) 10-6583-7511U.S. Tel: (646) 405-5185Email: William.zima@icrinc.com EXHIBIT 1 GLOBAL CORD BLOOD CORPORATION UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS As of March 31 and December 31, 2020 March 31, December 31, 2020 2020 RMB RMB US$ (in thousands except share data) ASSETS Current assets Cash and cash equivalents 5,473,373 5,867,754 899,274 Accounts receivable, less allowance for doubtful accounts (March 31, 2020: RMB111,869; December 31, 2020: RMB124,205 (US$19,035)) 104,251 128,962 19,765 Inventories 43,758 57,095 8,750 Prepaid expenses and other receivables 44,785 57,231 8,771 Total current assets 5,666,167 6,111,042 936,560 Property, plant and equipment, net 522,679 508,924 77,996 Operating lease right-of-use assets 4,548 5,573 854 Non-current deposits 347,360 343,006 52,568 Non-current accounts receivable, less allowance for doubtful accounts (March 31, 2020: RMB71,421; December 31, 2020: RMB70,125 (US$10,747)) 160,031 202,658 31,059 Inventories 85,109 90,132 13,813 Intangible assets, net 92,823 89,357 13,695 Investment in equity securities at fair value 101,306 121,951
IT Tech Packaging, Inc. Announces Proposed Public Offering of Common Stock and Warrants
BAODING, China, Feb. 24, 2021 /PRNewswire/ -- IT Tech Packaging, Inc. (NYSE MKT: ITP) ("IT Tech Packaging" or "the Company"), a leading manufacturer and distributor of diversified paper products in North China, today announced it has commenced an underwritten public offering of shares of its common stock and warrants to purchase shares of its common stock. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. Maxim Group LLC is acting as the sole book-running manager for the offering. The public offering is being made pursuant to an effective shelf registration statement on Form S-3 that was filed with the U.S. Securities and Exchange Commission (SEC) on August 31, 2020 and declared effective on February 25, 2021. A preliminary prospectus supplement describing the terms of the public offering will be filed with the SEC and will form a part of the effective registration statement. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the public offering may be obtained, when available, by contacting Maxim Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, or by telephone at (212) 895-3745. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. About IT Tech Packaging, Inc. Founded in 1996, IT Tech Packaging, Inc. is a leading manufacturer and distributor of diversified paper products in North China. Using recycled paper as its primary raw material (with the exception of its tissue paper products), ITP produces and distributes three categories of paper products: corrugating medium paper, offset printing paper and tissue paper products. With production based in Baoding and Xingtai in North China's Hebei Province, ITP is located strategically close to the Beijing and Tianjin region, home to a growing base of industrial and manufacturing activities and one of the largest markets for paper products consumption in the country. ITP has been listed on the NYSE MKT since December 2009. Safe Harbor Statement This press release may contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's latest annual report on Form 10-K. All information provided in this press release speaks as of the date hereof. Except as otherwise required by law, the Company undertakes no obligation to update or revise its forward-looking statements. For further information, please contact: At the CompanyEmail: ir@itpackaging.cn Tel: +86 0312 8698215 Investor Relations: Janice Wang+86-138-1176-8559EverGreen Consulting Inc.Email: ir@changqingconsulting.com Related Links :http://www.itpackaging.cn/
CASETiFY Introduces its First Customizable Water Bottle
The collection is a huge leap forward for the lifestyle brand, as it's known for providing alternatives to single-use plastics and working towards a more sustainable future.HONG KONG and LOS ANGELES, Feb. 24, 2021 /PRNewswire/ -- Today, CASETiFY announced its first customizable water bottle, kicking off a new product vertical for the popular global lifestyle brand. Best known for an iconic selection of personalized accessories, CASETiFY also expands customization options to include a wide range of colorways and sporty fonts for customers to get creative with their one-of-a-kind bottle. The CASETiFY Water Bottle is available to order now, shipping worldwide from www.casetify.com/product/water-bottle. The collection is a huge leap forward for the lifestyle brand, as it’s known for providing alternatives to single-use plastics and working towards a more sustainable future. The anticipated product launch joins the best-selling sustainable collection, CASETiFY CONSCiOUS, which provides alternatives to single-use plastics. Engineered for best-in-class insulation to keep beverages at the perfect temperature—CASETiFY's lightweight stainless steel bottle includes a scratch-resistant coating and a twist-on lid with an extendable ring. The CASETiFY Water Bottle is available in two sizes (760ml / 26oz, 550ml / 18.6oz), retailing for $45 - $49 USD. As a proud partner of Earth Day Network, the brand also supports the Canopy's Project's initiative to plant 7.8 billion trees this year by planting a tree for every bottle sold. Collection Images Specs for the new CASETiFY Water Bottle include: Engineered with proprietary Hydrafy™ technology, to provide leak-resistant double-wall vacuum insulation. Keeps beverages cold up to 24 hours and hot up to 12 hours. Made from 18/8 (18% chromium, 8% nickel) professional-grade stainless steel and finished with a sleek matte coating, for easy gripping and condensation-free coverage. Wide mouth design to fit ice cubes and allow for comfortable hand washing. BPA/BPS/Phthalate-Free and Mercury-Free Slip-free silicone base and lid outfitted with CASETiFY's Signature Ring. The collection launches with eight colorways (including Black, Dirty Peach, White Sand, Olive, Sky, Azure, Sand Ombré, and Sunset Ombré), in addition to an exciting selection of hand-picked fonts for printed and engraved customization. To shop the new collection, and to learn more about CASETiFY and its products, please visit www.casetify.com. About CASETiFY Founded in 2011, CASETiFY is recognized as the first and largest global platform for custom tech accessories. The leading Gen Z casemaker not only delivers high quality products to millions of customers around the world, but every case is inspected top to bottom for a stylishly slim, drop-proof accessory. Fans of the brand often look to CASETiFY for special edition collaborations with top creatives and talents across industries. Members of the CASETiFY Co-Lab program include Moncler Genius, Vetements, DHL, Coca-Cola, The Pokémon Company, streetwear label BAPE, and global K-Pop group BTS. For more information on CASETiFY, its stores, partners and products, visit www.CASETiFY.com.
LexisNexis Risk Solutions Cybercrime Report Finds Young Adults and Adults Over 75 Most Vulnerable to Fraud Attacks
ATLANTA, Feb. 24, 2021 /PRNewswire/ -- LexisNexis® Risk Solutions released its biannual Cybercrime Report covering July 2020 through December 2020, which details how the evolving threat landscape created new opportunities for cybercriminals around the world, particularly as they targeted new online users. Analysis shows that the under 25 age group is most vulnerable to fraud attacks while the oldest age group is second most vulnerable and loses the most money. The stark risk at both ends of the age spectrum emphasizes the importance for companies to protect both new-to-digital and vulnerable customers when transacting online in 2021. The report also provides a full year review which highlights how 2020 saw an overall decline in human-initiated attacks, while bot attacks accelerated. The Cybercrime report analyzes transaction data from the LexisNexis® Digital Identity Network®, a repository of global shared intelligence gained from billions of consumer interactions including logins, payments and new account applications. The Digital Identity Network® processed 47.1 billion transactions in 2020, an increase of almost 12 billion year-over-year. The fraud attack rate observed in the Digital Identity Network decreased on average across all digital businesses year-over-year, although media companies saw an increase in the overall attack rate at account opening. Malicious attack vectors persist despite reduced attack rates recorded across businesses as automated bot attacks offer fraudsters a cheap, quick and effective method of initial attack. The study analyzed 24.6 billion transactions July through December 2020 and found that mass automated bots used to test identity credentials remain widespread. The Digital Identity Network recorded bot attacks across global regions and within a wide variety of industries and use cases. Likewise, new account creations continue to see high attack rates, representing a key point of entry for fraudsters looking to monetize credentials harvested from data breaches. Key Findings from the LexisNexis Risk Solutions Cybercrime Report: 2020 in Review: Rapid Growth in Digital Transactions Sees Human-Initiated Attacks Drop While Bot Attacks Increase – The number of human-initiated attacks dropped in 2020 by roughly 184 million while the number of bot attacks grew by 100 million. In both cases, the largest number of fraud attacks by volume originated from fraudsters located in the United States, with countries like Canada, the United Kingdom and Germany also fitting into the top ten countries for each attack method. Notably, growth economies increasingly contributed to the number of fraud attacks with rises in human-initiated attacks originating from Guatemala, Bahrain and Zimbabwe and a larger number of bot attacks coming from the Isle of Man, United Arab Emirates and Nigeria. Sixty seven percent of all transactions were via mobile channels, with much of the transaction growth coming from trusted customers. July through December 2020: Cybercrime Across Generations – With many new-to-digital customers coming online for the first time, the youngest age group of online users – were found to be the most susceptible to fraud attacks over the six month period. Analysis found that there was a 10% growth in new customers among the under 25 age group. The oldest age group – 75 and older – experienced the next highest attack rate. This group generally has less familiarity with the latest digital technologies and may be more susceptible to scams and phishing attempts. While millennials and Gen Z are most susceptible to fraud attacks, the average fraud loss per customer increases progressively with age, likely influenced by larger disposable incomes later in life.The paradox of why fraudsters choose to target the younger age group in proportionally higher volumes is perhaps explained by the fact that higher success rates can offset lower monetary gains. July through December 2020: The Cybercrime Landscape Across Industries –The Digital Identity Network found a 29% growth in global transaction volume in the second half of 2020 compared to the second half of 2019. This growth came in the financial services (29%), e-commerce (38%) and media (9%) sectors. Financial services saw low overall attack rates, driven by a high volume of repeat login transactions from trusted customers, with the exception of payment transactions, which saw attacks at a higher rate than any other industry. This presents a key opportunity for fraudsters to cash out. E-commerce saw the largest growth in bot volume in comparison to other industries. The 2.7% attack rate for mobile app e-commerce payments is higher than any other industry. This represents an evident point of risk for these businesses.New account creations for media companies were attacked at a higher rate than any other industry with fraudsters often using media organizations like streaming services, gaming and gambling sites and apps to test stolen identity data. "Cybercriminals are opportunists first and masters of disguise second. They are always on the lookout for a new target whether this is new lines of credit, new online businesses or new-to-digital consumers," said Rebekah Moody, director of fraud and identity for LexisNexis Risk Solutions. "While digital businesses are working hard to better provide for new and existing customers, they must identify and mitigate potential risks moment by moment in order to protect consumers from becoming victims of fraud. "Building a layered defense is key," Moody continued. "Uniting the best digital identity intelligence with physical identity solutions and behavioral biometrics intelligence can be the gamechanger that organizations need to lessen the unpredictable tides of fraud. "Digital identity intelligence in particular is crucial for businesses to understand the behavior, transaction history and device intelligence of each identity entering their environment. When we can crowdsource real time intelligence across global digital businesses, it offers an unparalleled view of trust and risk. This creates a low-friction online experience because businesses can better recognize trusted, returning consumers." Download a copy of the LexisNexis Risk Solutions Cybercrime Report, July through December 2020. Join a global webinar at 10:00 AM on Tuesday, March 30, 2021, Hong Kong Time, with Rebekah Moody, director of fraud and identity, highlighting the latest Cybercrime Report findings. About LexisNexis Risk SolutionsLexisNexis® Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit www.risk.lexisnexis.com and www.relx.com. Media Contact:Marcy Theobald678.694.6681Marcy.Theobald@lexisnexisrisk.com Related Links :http://www.lexisnexis.com
Proxtera and Tazapay Partner to Propel Cross-Border Trade for SMEs
Two leaders in small-medium enterprise trade unite to launch Proxtera Protect, streamlining business-to-business transactions and boosting opportunities for small and medium-sized companies in India and SingaporeSINGAPORE, Feb. 24, 2021 /PRNewswire/ -- Proxtera, a network of business-to-business (B2B) marketplaces that facilitates cross-border trade for small-medium enterprises (SME), and Tazapay, a digital escrow service for cross-border trade, today announce their partnership to launch Proxtera Protect, Powered by Tazapay to provide international buyers and sellers with a secure and protected payment service to streamline global trade. Proxtera and Tazapay Partner to Propel Cross-Border Trade for SMEs In partnership with Proxtera, Tazapay will provide a digital escrow service for both buyers and sellers connected via participating platforms on the Proxtera network. Many businesses already use Proxtera to identify new trade partners and connect to discuss, negotiate and finalize trade terms. Through Proxtera Protect, Powered by Tazapay, SMEs will be able to complete transactions through the secure escrow payments service, providing both buyers and sellers with a critical layer of protection and confidence when doing business with a new partner. "Tazapay is committed to solving a long-term problem for SMEs, which is that they are often restricted from growing their number of trading partners due to lack of trust around shipments and payments," said Rahul Shinghal, CEO of Tazapay. "This hinders business success, and Proxtera is similarly focused on providing SMEs with options and tools that allow them to work with a wide range of business partners and drive growth. We're pleased to power Proxtera Protect and grow alongside Proxtera as both entities focus on their missions to elevate the local economy by empowering SMEs with global trade opportunities." The first trading corridor to be activated for Proxtera Protect is between India and Singapore. The global pandemic has exacerbated the challenge for SMEs with regard to cross-border payments. Over the last year, new trading partners have not been able to meet to build trust, causing an increased number of deals to fall through and lost time and resources on both sides. Tazapay solves this problem by offering secure digital background checks and an escrow service to hold funds until such time that both parties have confirmed delivery and receipt of the goods. Proxtera Protect also ensures that monies are returned should shipments not arrive. "Proxtera's mission is to unlock new trade and business opportunities for SMEs around the world, and Proxtera Protect, Powered by Tazapay is a critical component to bridge the trust gap that hinders cross-border trade," said Shirish Jain, program director at Proxtera. "With the addition of trusted partners such as Tazapay, Proxtera can deliver on its promise to provide SMEs a wealth of business tools and opportunities at their fingertips, opening up pathways to growth and driving economic recovery to help businesses thrive in the 'New Normal'." Proxtera has already helped to connect approximately 300,000 SMEs to new trading partners across Singapore, Philippines, India, and Kenya; and offers a host of digital tools and services that help SMEs more quickly access, evaluate and act on business opportunities. SMEs can join the Proxtera network via its eCommerce platform partners to benefit from new business opportunities. Upon identifying a potential opportunity, they can leverage Proxtera Protect, Powered by Tazapay's market leading infrastructure to finalise the escrow terms and subsequently make and receive payments securely. About Proxtera Proxtera is on a mission to connect the small and medium enterprises of the world by creating an open connector for B2B marketplaces, trade associations, and providers that service SMEs. Proxtera was launched in 2020 and is the commercialisation of Business sans Borders (BSB) an initiative of the Monetary Authority of Singapore (MAS) and Infocomm Media Development Authority ("IMDA") that was launched in 2018. Proxtera enjoys support from corporate investors, professional investors, and Singapore government agencies. Find out more at www.proxtera.com or via email contact@proxtera.com. About Tazapay Tazapay is a secure digital payments platform for SMEs engaging in cross-border trade. It provides secure digital escrow to help reduce risk and increase confidence for both parties in a transaction and offers background to ensure more transparent trading. Founded in 2020 by former executives from companies including Stripe, PayPal, Grab and Standard Chartered, Tazapay has raised more than $3 million in funding from partners including Sequoia and Saison Capital. Find out more at www.tazapay.com.
