NEW YORK, Aug. 14, 2019 (GLOBE NEWSWIRE) -- Weyland Tech (OTCQX: WEYL) a leading developer and global provider of mobile m-Commerce software solutions, reported results for the first quarter ended June 30, 2019. All quarterly comparisons are to the same period in 2018 unless otherwise noted.
Second Quarter 2019 Highlights
- Revenue, which is comprised of recurring subscription fees, increased 53% to $7.1 million.
- Launched a pilot program of the company’s CreateApp Platform-as-a-Service in Indonesia with the country’s second-largest telecommunications provider.
- Cash and equivalents totaled $5.3 million at June 30, 2019.
Management Commentary
“In Q2 2019, we dramatically expanded our recurring revenue stream, generating more than 50% growth,” said Brent Suen, CEO of Weyland Tech. “This was largely due to greater customer adoption of our CreateApp Platform-as-a-Service in our existing markets as driven by our channel partners. This progress has continued into the third quarter, keeping us on track for another year of record growth.”
“Also driving our growth is the fact that we are focused on the world’s most engaged mobile users, with more than 350 million ‘mobile-first’ internet users located in Southeast Asia. It’s also a region with the fastest growing adoption of m-Commerce solutions by businesses and consumers. Our more attractive pricing structure implemented during the quarter supported our ability to capture greater market share of the micro and small businesses that make up about 90% of the region’s economy.
“We expect our CreateApp platform to continue to gain traction due to its simplicity and versatility, similar to how Shopify provides e-Commerce enabled websites for small businesses. Our business enablement platform requires literally no technical understanding of programming or app design for mobile apps, allowing users to build their own m-Commerce-enabled mobile app in less than two hours.
“During the quarter, we also increased our market reach with the launch of a pilot program in Indonesia in partnership with Indosat, one of the country’s leading telecommunications providers. We see this partnership eventually becoming another strong revenue driver.
“Since the end of the quarter, we’ve been active in strengthening our team with the appointment to our advisory board of two seasoned executives in capital markets and e-Commerce, Sim Farrar and Andre Peschong. Along with his strong business acumen, Sim brings to us deep understanding of public policy across regional, national and global levels. Andre has already been instrumental in helping us attract significant growth capital from a number of strategic international investors.
“In partnership with our spin-off company, AtozPay, we recently launched AtozGo, a short-distance food delivery service in Jakarta, Indonesia powered by AtozPay’s mobile payment platform and our mobile app technology. AtozGo allows mobile users to browse local restaurants, order and pay for meals, and track delivery. Given Jakarta’s population of 30 million, with another 3.5 million commuting daily, the city was an ideal location to launch the AtozGo delivery service. Within two weeks from launch, AtozGo has gone from zero to over 1,200 deliveries per day. We expect this rapid ramp up in business to pave the way for greater visibility with potential acquirers.
“For the remainder of the year, we will continue to focus on supporting our channel partners and enhancing our platform offerings. We expect to see margin improvement as we introduce more value-added services, and will continue to evaluate a number of attractive M&A opportunities. Given our momentum coming out of the second quarter with proven, differentiated strategies, we believe Weyland Tech remains on track for another year of double-digit growth.”
Q2 2019 Financial Summary
Total revenues increased 53% to $7.1 million in the second quarter of 2019, as compared to $4.7 million in the same period last year. The increase was due to the service income from customers in targeted emerging markets at lower price points.
Gross profit decreased 69% to $1.3 million or 17.7% of revenues compared to $2.8 million or 87.7% of revenue in the year-ago quarter. The decrease was primarily due to a reclassification of certain research & development and sales & marketing expenses.
Total operating expenses decreased 49% to $2.9 million from $5.1 million in the same year-ago period. The decrease was primarily due to the aforementioned reclassification of certain expenses.
General and administrative expenses increased 127% to $1.3 million in the second quarter 2019 from $5.5 million in the same year-ago quarter, primarily due to $870,000 in non-cash stock-based compensation.
Net loss was $1.7 million or $(0.04) per basic share, compared to net loss of $1.0 million or $(0.03) per basic share in the same year-ago period.
At June 30, 2019, cash, cash equivalents and marketable equity securities totaled $5.3 million, compared to $1.4 million on March 31, 2019. The increase was primarily the result of an equity raise generating $5.2 million in gross proceeds.
About Weyland Tech
Weyland Tech Inc. is a developer and global provider of mobile business software applications. The company operates its platform-as-a-service (PaaS) software platform across three continents and 10 countries, including some of the fastest-growing emerging markets in Southeast Asia. The platform provides a mobile presence for small-and-medium sized businesses (SMBs) that is supported locally by distributor partnerships.
Offered in 14 languages with more than 70 integrated modules, Weyland enables SMBs to create and deploy native mobile applications for Apple iOS and Google Android without technical knowledge or background. The technology empowers SMBs to increase sales, reach more customers, manage logistics, and promote their products and services in an easy, affordable and highly efficient way. For more information, visit www.weyland-tech.com.
Important Cautions Regarding Forward Looking Statements
This release contains certain “forward-looking statements” relating to the business of the Company. All statements, other than statements of historical fact included herein are “forward-looking statements” including statements regarding: the continued growth of the e-commerce segment and the ability of the Company to continue its expansion into that segment; the ability of the Company to attract customers and partners and generate revenues; the ability of the Company to successfully execute its business plan; the business strategy, plans, and objectives of the Company; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions and involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume any duty to update these forward-looking statements.
Company Contact
Brent Suen, CEO
Weyland Tech Inc.
Tel (808) 829-1057
Email contact
Media & Investor Contact
Ronald Both or Grant Stude
CMA
Tel (949) 432-7566
WEYL@cma.team
| WEYLAND TECH INC. |
| Consolidated Balance Sheets |
| | June 30 | | December 31 |
| | 2019 | | 2018 |
| ASSETS | (Unaudited) | | (Audited) |
| Intangible assets, net | 662,565 | | | 713,531 | |
| Investment in Associate | - | | | - | |
| Total non-current assets | 662,565 | | | 713,531 | |
| Current assets | | | |
| Amount due from Associate | 1,455,250 | | | 862,000 | |
| Prepayment, deposit and other receivables | 3,181,651 | | | 3,181,651 | |
| Cash and cash equivalents | 5,302,919 | | | 731,355 | |
| Total current assets | 9,939,820 | | | 4,775,006 | |
| Total assets | 10,602,385 | | | 5,488,537 | |
| | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | |
| Current liabilities | | | |
| Accounts payable | 87,016 | | | 18,000 | |
| Accruals and other payables | 257,987 | | | 283,795 | |
| Deposits received for share to be issued | 4,838,301 | | | - | |
| Loan from director | 19,000 | | | - | |
| Amount due to director | 77,500 | | | 77,500 | |
| Total current liabilities | 5,279,803 | | | 379,295 | |
| Total liabilities | 5,279,803 | | | 379,295 | |
| | | | |
| STOCKHOLDERS' EQUITY | | | |
| Common stock, $0.0001 par value, | | | |
| 250,000,000 shares authorized, 52,002,152 and | | |
| 36,915,343 shares issued and outstanding as of | | | |
| June 30, 2019 and December 31, 2018, respectively | 5,200 | | | 3,692 | |
| Additional paid-in capital | 48,087,318 | | | 46,177,521 | |
| Accumulated deficit brought forward | (42,769,937 | ) | | (41,071,971 | ) |
| | | | | | |
| Total stockholder’s equity | 5,322,582 | | | 5,109,242 | |
| Total liabilities and stockholders' equity | 10,602,385 | | | 5,488,537 | |
| WEYLAND TECH INC. |
| Condensed Consolidated Statements of Operations |
| | | | | | | | | | |
| | | Three Months
Ended June 30, | | | Six Months
Ended June 30, |
| | | 2019 | | 2018
| | | 2019 | | 2018 |
| | | (Unaudited) | | (Unaudited) | | | (Unaudited) | | (Unaudited) |
| | | | | | | | | | |
| Service Revenue | $ | 7,141,932 | | $ | 4,658,980 | | | $ | 15,633,624 | | $ | 8,838,686 | |
| Cost of Service | | 5,874,249 | | | 570,735 | | | | 12,858,676 | | | 1,082,758 | |
| Gross Profit | | 1,267,683 | | | 4,088,245 | | | | 2,774,948 | | | 7,755,928 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Operating Expenses | | | | | | | | | |
| | General and administrative | | 1,280,869 | | | 547,116 | | | | 1,921,791 | | | 1,543,790 | |
| | Research and development | | 1,242,833 | | | 2,403,854 | | | | 2,110,548 | | | 3,612,971 | |
| | Sales and marketing | | 389,610 | | | 2,096,541 | | | | 389,610 | | | 3,977,409 | |
| | Depreciation &amortization | | 25,483 | | | 87,983 | | | | 50,967 | | | 175,966 | |
| Total Operating Expenses | | 2,938,795 | | | 5,135,494 | | | | 4,472,915 | | | 9,310,136 | |
| | | | | | | | | | |
| (Loss) from Operations | | (1,671,112 | ) | | (1,047,249 | ) | | | (1,697,967 | ) | | (1,554,208 | ) |
| | | | | | | | | | |
| | | | | | | | | | |
| Provision for income taxes | | - | | | - | | | | - | | | - | |
| Net (Loss) | $ | (1,671,112 | ) | $ | (1,047,249 | ) | | $ | (1,697,967 | ) | $ | (1,554,208 | ) |
| | | | | | | | | | |
| Net (Loss) per common share - basic and fully diluted: | | (0.0352 | ) | | (0.0332 | ) | | | (0.0498 | ) | | (0.0623 | ) |
| | | | | | | | | | |
| Weighted average number of basic and fully diluted common shares outstanding | | 47,411,032 | | | 29,186,966 | | | | 34,086,114 | | | 24,951,557 | |
| | | | | | | | | | |
| WEYLAND TECH INC. |
| Consolidated Statements of Cash Flows |
| | | | | Six Months Ended June 30, |
| | | | | 2019 | | 2018 |
| | | (Unaudited) | | (Unaudited) |
| Cash flows from operations: | | | | |
| | (Loss) from continuing operations | $ | (1,697,967 | ) | $ | (1,554,208 | ) |
| | Adjustment to reconcile net profit to net cash used in operating activities: |
| | | Amortization of intangible assets | | 50,967 | | | 175,967 | |
| | | Impairment loss on associate | | - | | | - | |
| | Changes in operating assets and liabilities: | | | | |
| | | Amount due from Associates | | (593,250 | ) | | (542,000 | ) |
| | | Deposits and other receivables | | - | | | 86,195 | |
| | | Prepayments | | - | | | (876,567 | ) |
| | | Accounts payable, accruals and other payables | | 43,207 | | | (32,010 | ) |
| | | Stock subscription payables | | 4,838,301 | | | 1,753,438 | |
| | | Loan from director | | 19,000 | | | - | |
| Net cash from (used) in operations | | 2,660,258 | | | (989,185 | ) |
| | | | | |
| | | | | |
| | | | | |
| Cash flows from financing activities: | | | | |
| | Proceeds from stock issuance | | 1,911,306 | | | 699,877 | |
| Net cash provided by financing activities | | 1,911,306 | | | 699,877 | |
| Net increase/(decrease) in cash and cash equivalents | | 4,571,564 | | | (289,308 | ) |
| Cash and cash equivalents, beginning of year | | 731,355 | | | 1,056,399 | |
| Cash and cash equivalents, end of year | $ | 5,302,919 | | $ | 767,091 | |
| Supplemental cash flow disclosure: | | | | |
| Cash paid for interest expenses | $ | - | | $ | - | |
| Cash paid for income taxes | $ | - | | $ | - | |
| Non-cash transactions | | | | |
| | Issuance of shares for services received | $ | 1,2,47,056 | | | 699,877 | |
