eFuture Holding Inc. (Nasdaq:EFUT) (the “Company” or “eFuture”), a
leading software and solution provider and a mobile business
enabler to China's retail and consumer goods industries, today
announced its unaudited financial results for the first quarter
ended March 31, 2016.
First Quarter
2016 Financial Highlights
- Total revenue decreased 16% year-over-year to RMB19.8 million
(US$3.1 million).
- Gross profit decreased 52% year-over-year to RMB4.6 million
(US$0.7 million).
- Adjusted EBITDA was negative RMB8.2 million (US$1.3 million),
compared to an adjusted EBITDA of negative RMB3.4 million in the
first quarter 2015.
- Operating loss was RMB14.7 million (US$2.3 million), compared
to an operating loss of RMB5.5 million in the first quarter
2015.
- Net loss was RMB11.7 million (US$1.8 million), compared to a
net loss of RMB5.3 million in the first quarter 2015.
- Backlog as of March 31, 2016 decreased 11% year-over-year to
RMB137.0 million (US$21.2 million).
Mr. David Ren, CEO, said, “As the overall economic
situation in China is experiencing uncertainty, IT investment by
retailers is conservative. Although revenue and gross margin
decreased year-over-year, our innovative omni-channel solution
business continued to increase in the first quarter of 2016. As a
leading software solutions and services provider for China’s retail
industry, we plan to continue to optimize our software business,
and gradually increase cooperation with the world-famous software
vendors. In addition, we will continue to promote the omni-channel
payment and cloud service business to provide the best solutions
and services to our existing and potential clients in China’s
retail industry.”
“The first quarter has historically been our weakest quarter
because of the impact of the Chinese New Year. While this quarter's
software license revenue was greatly impacted by the micro retail
environment in China, the growth of service fee revenue remained
solid and continued to be a fundamental strength of our core
business,” commented Ms. Ping Yu, CFO.
FIRST QUARTER
2016 FINANCIAL RESULTS
Revenue
Total revenue for the first quarter 2016 decreased 16% to
RMB19.8 million (US$3.1 million) from RMB23.6 million in the first
quarter 2015.
Revenue Breakdown
|
1Q15 |
1Q16 |
RMB ‘000 |
RMB ‘000 |
USD ‘000 |
Y-o-Y Change |
Software revenue |
6,533 |
3,319 |
515 |
|
-49 |
% |
Hardware revenue |
1,913 |
646 |
100 |
|
-66 |
% |
Service fee revenue |
15,169 |
15,847 |
2,458 |
|
4 |
% |
Total |
23,615 |
19,812 |
3,073 |
|
-16 |
% |
Software revenue for the first quarter 2016 decreased 49%
year-over-year to RMB3.3 million (US$0.5 million) from RMB6.5
million in the first quarter 2015. The decrease was primarily
attributable to the continued reduction of new physical retail
stores under the current macro economy condition.
Hardware revenue for the first quarter 2016 decreased 66%
year-over-year to RMB0.6 million (US$0.1 million) from RMB1.9
million in the first quarter 2015. The decrease was a result of the
completion of a one-off project in the shopping mall industry in
the first quarter 2015.
Service fee revenue for the first quarter 2016 increased 4%
year-over-year to RMB15.8 million (US$2.5 million) from RMB15.2
million in the first quarter 2015. This was primarily attributable
to an increase in maintenance service fee revenue in the first
quarter 2016.
Cost of Revenue
Cost of revenue for the first quarter 2016 increased 9% to
RMB15.2 million (US$2.4 million) from RMB13.9 million in the first
quarter 2015. The increase was primarily attributable to the
increased amortization of software costs associated with innovative
project development from previous years.
Cost of Revenue Breakdown
|
1Q15 |
1Q16 |
|
RMB ‘000 |
RMB ‘000 |
USD ‘000 |
Y-o-Y Change |
Cost of software revenue |
2,065 |
370 |
57 |
|
-82 |
% |
Cost of hardware revenue |
1,584 |
547 |
85 |
|
-65 |
% |
Cost of service fee revenue |
9,314 |
11,364 |
1,762 |
|
22 |
% |
Amortization of software costs |
951 |
2,913 |
452 |
|
206 |
% |
Total |
13,914 |
15,194 |
2,356 |
|
9 |
% |
Gross Profit and Gross Margin
Gross profit for the first quarter 2016 was RMB4.6 million
(US$0.7 million), compared with RMB9.7 million for the first
quarter 2015, and consolidated gross margin for the first quarter
2016 was 23%, compared with 41% in the first quarter 2015. The
decrease was mainly due to a lower proportion of high-margin
software revenue, as well as increased amortization of software
costs associated with innovative project development from previous
years in the first quarter 2016.
Operating Expenses
Research and development (“R&D”) expenses remained stable
for the first quarter 2016 and 2015, both of which were RMB0.8
million.
General and administrative expenses (“G&A”) for the first
quarter 2016 increased 78% year-over-year to RMB11.1 million
(US$1.7 million), representing 56% of total revenue, compared with
RMB6.2 million, or 26% of total revenue in the first quarter 2015.
The increase was primarily attributable to the increase of
share-based compensation expense and related expenditure associated
with shares granted in January 2016 under share incentive plan, as
well as legal counsel’s service fee expenditure in the first
quarter 2016.
Selling and distribution (“S&D”) expenses for the first
quarter 2016 decreased 9% year-over-year to RMB7.4 million (US$1.1
million), representing 37% of total revenue, compared with RMB8.2
million, or 35% of total revenue in the first quarter 2015. The
decrease was in line with the decrease in software revenue.
Operating Loss
Operating loss in the first quarter 2016 was RMB14.7 million
(US$2.3 million), compared to operating loss of RMB5.5 million in
the first quarter 2015.
Net Loss/Adjusted
Net Loss and Loss Per
Share/Adjusted Loss Per
Share
First quarter 2016 net loss was RMB11.7 million (US$1.8
million), compared with a net loss of RMB5.3 million for the first
quarter 2015. Adjusted net loss for the first quarter 2016 was
RMB5.7 million (US$0.9 million), compared with an adjusted net loss
of RMB3.7 million for the first quarter 2015.
Basic loss per share in the first quarter 2016 was RMB2.20
(US$0.34), compared to basic loss per share of RMB1.25 in the first
quarter 2015. Diluted loss per share in the first quarter 2016 was
RMB2.10 (US$0.34), compared to diluted loss per share of RMB1.25 in
the first quarter 2015. Adjusted diluted loss per share was
RMB1.08 (US$0.17), compared to RMB0.87 in the first quarter
2015.
EBITDA
Adjusted EBITDA for the first quarter 2016 was negative RMB8.2
million (US$1.3 million), compared to negative RMB3.4 million in
the first quarter 2015.
Balance Sheet and Cash Flow
As of March 31, 2016, cash and cash equivalents were RMB31.6
million (US$4.9 million), a decrease of RMB65.0 million from
RMB96.6 million as of December 31, 2015. The decrease was primarily
attributable to the payment of annual bonuses, taxes and proceeds
from the exercise of stock options and restricted shares to
employees. Please refer to “Update on Tax Inspection” below for
more information regarding the payment of taxes.
Total trades receivable as of March 31, 2016 decreased 16% to
RMB45.8 million (US$7.1 million) from RMB54.7 million as of
December 31, 2015. This resulted from the completion of a number of
projects in the fourth quarter 2015, which payments were made by
customers in the first quarter 2016.
Inventory and work in process as of March 31, 2016 increased 65%
to RMB25.4 million (US$3.9 million) from RMB15.4 million as of
December 31, 2015. The increase was primarily attributable to an
increase in the number of on-going projects, which have not reached
the point of revenue recognition.
For the quarter ended March 31, 2016, net cash used in operating
activities was RMB61.3 million (US$9.5 million). Net cash used in
investing activities was RMB2.0 million (US$0.3 million). Net cash
used in financing activities was RMB1.4 million (US$0.2
million).
Update on Tax Inspection
In November, 2015, the Beijing tax authority conducted a tax
inspection on our wholly owned subsidiary, eFuture Beijing for the
period from 2004 to 2014. Due to the timing difference between
financial reporting and tax reporting regarding the realization of
income from revenue and advance payments from customers, the
Beijing tax authority has taken the position that eFuture Beijing
failed, under local tax regulations, to recognize income and,
therefore timely file tax payments. Based on our internal
estimates, eFuture Beijing may be required to pay the unpaid taxes
and possibly a fine and late payment fees, in the range RMB6.0
million (US$0.9 million) and RMB30.9 million (US$4.8
million). In our previously filed US financial statements, we have
provided adequate provisions for the unpaid taxes and there was no
significant impact on the financial position of the Company.
Although the Beijing tax authority has not yet issued any decision
regarding the payment deadline of any unpaid tax or the amount of
fine and late payment fees (if any), in first quarter 2016 eFuture
voluntarily paid RMB4.2 million (US$0.7 million) to the Beijing tax
authority to start to make up the unpaid tax.
SECOND QUARTER
2016 GUIDANCE
eFuture expects total revenue for the second quarter 2016 to be
in the range of RMB26 million (US$4 million) to RMB31 million
(US$4.8 million). Adjusted EBITDA for the second quarter 2016 is
expected to be in the range of negative RMB5 million (US$0.8
million) to negative RMB1 million (US$0.2 million).
CURRENCY CONVENIENCE
TRANSLATION
This announcement contains translations of certain RMB amounts
into U.S. dollars (“USD”) at specified rates, solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to USD were made at the rate of RMB6.4480 to
US$1.00, the noon buying rate in effect on March 31, 2016 in the
H.10 statistical release of the Federal Reserve Board. The Company
makes no representation that the RMB or USD amounts referred could
be converted into USD or RMB, as the case may be, at any particular
rate or at all. For analytical presentation, all percentages are
calculated using the numbers presented in the financial statements
contained in this earnings release.
USE OF NON-GAAP FINANCIAL
MEASURES
To supplement eFuture’s unaudited consolidated
financial results presented in accordance with U.S. GAAP, eFuture
uses the following non-GAAP measures defined as non-GAAP financial
measures by the U.S. Securities and Exchange Commission: (i)
adjusted EBITDA excluding amortization of acquired software
technology, amortization of intangibles, impairment of intangible
assets, share-based compensation expenses and depreciation; (ii)
adjusted net income excluding amortization of acquired software
technology, amortization of intangibles, impairment of intangible
assets, share-based compensation expenses and accretion on
convertible notes; and (iii) adjusted basic and diluted earnings
per share excluding amortization of acquired software technology,
amortization of intangibles, share-based compensation expenses and
accretion on convertible notes.
The presentation of these 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 U.S. GAAP.
eFuture believes that these non-GAAP financial
measures provide meaningful supplemental information regarding its
performance and liquidity by excluding expenses that may not be
indicative of its operating performance from a cash perspective or
be indicative of its operating performance. eFuture believes that
both management and investors benefit from referring to these
non-GAAP financial measures in assessing the Company’s performance
and when planning and forecasting future periods. These non-GAAP
financial measures also facilitate management’s internal
comparisons to eFuture’s historical performance and liquidity.
eFuture computes its non-GAAP financial measures using the same
consistent method from quarter to quarter. The Company believes
these non-GAAP financial measures are useful to investors in
allowing for greater transparency with respect to supplemental
information used by management in its financial and operational
decision-making. The accompanying paragraphs have more details on
the reconciliations between GAAP financial measures that are most
directly comparable to non-GAAP financial measures.
eFuture’s management also believes that EBITDA,
defined as earnings before interest, income tax expense,
depreciation and amortization is a useful financial metric to
assess its operating and financial performance before the impact of
investing and financing transactions and income taxes. In addition,
eFuture’s management believes that EBITDA is widely used by other
companies in the software industry and may be used by investors as
a measure of its financial performance. Given the significant
investments that eFuture has made in property, equipment,
depreciation and amortization expense comprises a meaningful
portion of the Company’s cost structure. eFuture’s management
believes that EBITDA will provide investors with a useful tool for
comparability between periods because it eliminates depreciation
and amortization expense attributable to capital expenditures. The
presentation of EBITDA should not be construed as an indication
that the Company’s future results will be unaffected by other
charges and gains eFuture considers to be outside the ordinary
course of its business.
The use of EBITDA and adjusted EBITDA has
certain limitations. Depreciation and amortization expense for
various long-term assets, income tax expense, interest expense and
interest income have been and will be incurred and are not
reflected in the presentation of EBITDA. Further, share-based
compensation expenses have been and will be incurred and are not
reflected in the presentation of adjusted EBITDA. Each of these
items should also be considered in the overall evaluation of
eFuture’s financial results. The term EBITDA or adjusted EBITDA is
not defined under U.S. GAAP, and EBITDA or adjusted EBITDA is not a
measure of net income, operating income, operating performance or
liquidity presented in accordance with U.S. GAAP. When assessing
eFuture’s operating and financial performance, you should not
consider this data in isolation or as a substitute for its net
income, operating income or any other operating performance measure
that is calculated in accordance with U.S. GAAP. In addition, the
Company’s EBITDA and adjusted EBITDA may not be comparable to
EBITDA or similarly titled measures utilized by other companies
since such other companies may not calculate EBITDA in the same
manner as eFuture does.
STATEMENT REGARDING UNAUDITED FINANCIAL
INFORMATION
The unaudited financial information set forth
above is subject to adjustments that may be identified when audit
work is performed on the Company’s year-end financial statements,
which could result in significant differences from this unaudited
financial information.
ABOUT EFUTURE HOLDING
INC.
eFuture Holding Inc. (Nasdaq:EFUT) is a leading
software and solution provider and a mobile business enabler to
China's retail and consumer goods industries. eFuture's clients
include 1,000+ active retailers with more than 50,000 physical
stores across China, of which about 45% were ranked among the top
100 chain retailers during 2014. For more information about
eFuture, please visit http://www.e-future.com.cn.
SAFE HARBOR
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, 2016 financial outlook and quotations from
management in this announcement, as well as strategic and
operational plans, contain forward-looking statements. eFuture may
also make written or oral forward-looking statements in periodic
reports to the 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 second 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: eFuture’s anticipated growth strategies;
eFuture’s future business development, results of operations and
financial condition; expected changes in the Company’s revenue and
certain cost or expense items; eFuture’s ability to attract clients
and leverage its brand; trends and competition in the software
industry; the Company’s ability to control expenses and maintain
profit margins; the Company’s ability to hire, train and retain
qualified managerial and other employees; the Company’s ability to
develop new software and pilot new business models at desirable
locations in a timely and cost-effective manner; the performance of
third parties under contracts with the Company; the expected growth
of the Chinese economy software market in retail and consumer goods
industries; and Chinese governmental policies relating to private
managers and operators of software and applicable tax rates.
Further information regarding these and other
risks will be included in eFuture’s annual report on Form 20-F and
other documents filed with the SEC. All information provided in
this press release and in the attachments is as of May 20, 2016,
and the Company undertakes no duty to update such information or
any other forward-looking information, except as required under
applicable law.
– FINANCIAL TABLES TO FOLLOW –
|
|
|
|
|
|
|
|
|
|
EFUTURE HOLDING INC. |
|
|
Exchange
rate |
|
6.4480 |
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chinese Yuan (Renminbi) |
U.S.
Dollars |
|
|
|
|
December 31, |
March 31, |
March 31, |
|
|
|
|
|
2015 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
(Audited) |
(Unaudited) |
(Unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and
cash equivalents |
|
|
96,654,067 |
|
|
31,617,739 |
|
|
4,903,496 |
|
|
|
Term
deposit |
|
|
10,000,000 |
|
|
10,000,000 |
|
|
1,550,868 |
|
|
|
Trade
receivables, net of allowance for doubtful accounts of ¥9,497,995
and ¥10,499,704($1,628,366), respectively |
|
|
54,665,671 |
|
|
45,843,791 |
|
|
7,109,769 |
|
|
|
Refundable value added tax |
|
|
2,179,123 |
|
|
2,444,148 |
|
|
379,055 |
|
|
|
Advances
to employees |
|
|
697,006 |
|
|
578,473 |
|
|
89,714 |
|
|
|
Other
receivables |
|
|
3,115,018 |
|
|
5,303,765 |
|
|
822,544 |
|
|
|
Prepaid
expenses |
|
|
1,275,727 |
|
|
4,477,282 |
|
|
694,368 |
|
|
|
Inventory and work in process, net of inventory provision of
¥4,240,846 and ¥3,886,426($602,734), respectively |
|
|
15,370,905 |
|
|
25,414,245 |
|
|
3,941,415 |
|
|
|
Deferred
tax assets, current portion |
|
|
6,862,407 |
|
|
10,139,358 |
|
|
1,572,481 |
|
|
|
Total current
assets |
|
|
190,819,924 |
|
|
135,818,801 |
|
|
21,063,710 |
|
|
|
Non-current
assets |
|
|
|
|
|
|
Long-term investments, net of impairment of net of impairment of
¥240,000 and ¥240,000($38,716), respectively |
|
|
- |
|
|
- |
|
|
- |
|
|
|
Property
and equipment, net of accumulated depreciation of ¥8,197,906 and
¥8,728,997($1,353,753), respectively |
|
|
3,473,877 |
|
|
3,579,798 |
|
|
555,180 |
|
|
|
Intangible assets, net of accumulated amortization of ¥88,606,442
and ¥91,519,132($14,193,414), respectively |
|
|
36,247,511 |
|
|
34,573,796 |
|
|
5,361,941 |
|
|
|
Goodwill |
|
|
80,625,667 |
|
|
80,625,667 |
|
|
12,503,981 |
|
|
|
Deferred
tax assets |
|
|
998,139 |
|
|
986,744 |
|
|
153,031 |
|
|
|
Total
non-current assets |
|
|
121,345,194 |
|
|
119,766,005 |
|
|
18,574,132 |
|
|
|
Total
assets |
|
|
312,165,118 |
|
|
255,584,806 |
|
|
39,637,842 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Short-term loans |
|
|
7,307,997 |
|
|
5,543,097 |
|
|
859,661 |
|
|
|
Trade
payables |
|
|
16,733,672 |
|
|
12,179,935 |
|
|
1,888,948 |
|
|
|
Other
payables |
|
|
37,778,286 |
|
|
14,850,850 |
|
|
2,303,172 |
|
|
|
Accrued
expenses |
|
|
24,860,304 |
|
|
8,125,863 |
|
|
1,260,214 |
|
|
|
Taxes
payable |
|
|
18,008,279 |
|
|
7,277,794 |
|
|
1,128,690 |
|
|
|
Deferred
revenue |
|
|
40,784,536 |
|
|
49,181,891 |
|
|
7,627,464 |
|
|
|
Total current
liabilities |
|
|
145,473,074 |
|
|
97,159,430 |
|
|
15,068,149 |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
Ordinary
shares $0.0756 U.S. dollars par value; 6,613,756 shares,
authorized; 5,218,615 shares and 5,240,365 shares issued and
outstanding, respectively |
|
|
2,934,894 |
|
|
2,946,113 |
|
|
456,903 |
|
|
|
Additional paid-in capital |
|
|
262,553,349 |
|
|
265,992,496 |
|
|
41,251,939 |
|
|
|
Statutory reserves |
|
|
9,114,319 |
|
|
9,114,319 |
|
|
1,413,511 |
|
|
|
Accumulated deficits |
|
|
(107,910,518 |
) |
|
(119,627,552 |
) |
|
(18,552,660 |
) |
|
|
Total
equity |
|
|
166,692,044 |
|
|
158,425,376 |
|
|
24,569,693 |
|
|
|
Total
liabilities and equity |
|
|
312,165,118 |
|
|
255,584,806 |
|
|
39,637,842 |
|
|
|
|
|
|
|
|
|
|
|
|
EFUTURE HOLDING INC. |
|
|
|
Exchange
rate |
|
6.4480 |
|
|
CONDENSED CONSOLIDATED INCOME STATEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
Chinese Yuan (Renminbi) |
U.S.
Dollars |
|
|
|
|
March 31, |
March 31, |
March 31, |
|
|
|
|
|
2015 |
|
|
2016 |
|
|
2016 |
|
Y-o-Y
Change |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
% |
|
Revenues |
|
|
|
|
|
|
Software
revenue |
|
|
6,533,153 |
|
|
3,318,713 |
|
|
514,689 |
|
|
-49 |
% |
|
Hardware
revenue |
|
|
1,912,436 |
|
|
646,366 |
|
|
100,243 |
|
|
-66 |
% |
|
Service fee
revenue |
|
|
15,169,133 |
|
|
15,846,905 |
|
|
2,457,647 |
|
|
4 |
% |
|
Total revenues |
|
|
23,614,722 |
|
|
19,811,984 |
|
|
3,072,579 |
|
|
-16 |
% |
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
Cost of
software revenue |
|
|
2,064,250 |
|
|
370,625 |
|
|
57,479 |
|
|
-82 |
% |
|
Cost of
hardware revenue |
|
|
1,584,200 |
|
|
547,118 |
|
|
84,851 |
|
|
-65 |
% |
|
Cost of
service fee revenue |
|
|
9,314,081 |
|
|
11,363,731 |
|
|
1,762,365 |
|
|
22 |
% |
|
Amortization of software costs |
|
|
951,221 |
|
|
2,912,690 |
|
|
451,720 |
|
|
206 |
% |
|
Total cost of revenues |
|
|
13,913,752 |
|
|
15,194,164 |
|
|
2,356,415 |
|
|
9 |
% |
|
|
|
|
|
|
|
|
Gross profit |
|
|
9,700,970 |
|
|
4,617,820 |
|
|
716,164 |
|
|
-52 |
% |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Research
and development expenses |
|
|
799,651 |
|
|
792,645 |
|
|
122,929 |
|
|
-1 |
% |
|
General and
administrative expenses |
|
|
6,210,782 |
|
|
11,071,096 |
|
|
1,716,981 |
|
|
78 |
% |
|
Selling and
distribution expenses |
|
|
8,171,021 |
|
|
7,407,266 |
|
|
1,148,770 |
|
|
-9 |
% |
|
Total operating expenses |
|
|
15,181,454 |
|
|
19,271,007 |
|
|
2,988,680 |
|
|
27 |
% |
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(5,480,484 |
) |
|
(14,653,187 |
) |
|
(2,272,516 |
) |
|
|
|
|
|
|
|
|
|
Other income (expenses) |
|
|
|
|
|
|
Interest income |
|
|
134,607 |
|
|
74,198 |
|
|
11,507 |
|
|
|
Interest expenses |
|
|
(245,170 |
) |
|
(100,811 |
) |
|
(15,634 |
) |
|
|
Other income |
|
|
37,748 |
|
|
56,320 |
|
|
8,734 |
|
|
|
Foreign currency exchange gain(loss) |
|
|
7,772 |
|
|
(359,110 |
) |
|
(55,693 |
) |
|
|
Loss before income tax |
|
|
(5,545,527 |
) |
|
(14,982,590 |
) |
|
(2,323,602 |
) |
|
|
Less:
Income tax expense |
|
|
(251,781 |
) |
|
(3,265,556 |
) |
|
(506,445 |
) |
|
|
Net
Loss |
|
|
(5,293,746 |
) |
|
(11,717,034 |
) |
|
(1,817,157 |
) |
|
|
Loss per share |
|
|
|
|
|
|
Basic |
|
|
(1.25 |
) |
|
(2.20 |
) |
|
(0.34 |
) |
|
|
Diluted |
|
|
(1.25 |
) |
|
(2.10 |
) |
|
(0.34 |
) |
|
|
Basic weighted average shares outstanding |
|
|
4,219,540 |
|
|
5,335,363 |
|
|
5,335,363 |
|
|
|
Fully diluted weighted average shares
outstanding |
|
|
4,352,384 |
|
|
5,590,567 |
|
|
5,590,567 |
|
|
|
|
|
|
|
|
|
|
EFUTURE HOLDING INC. |
|
Exchange
rate |
|
6.4480 |
|
|
NON-GAAP
MEASURES OF PERFORMANCE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
Chinese Yuan (Renminbi) |
U.S.
Dollars |
|
|
March 31, |
March 31, |
March 31, |
|
|
|
2015 |
|
|
2016 |
|
|
2016 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
NON-GAAP OPERATING LOSS AND ADJUSTED
EBITDA |
|
|
|
|
|
|
|
|
|
Operating Loss(GAAP basis) |
|
(5,480,484 |
) |
|
(14,653,187 |
) |
|
(2,272,516 |
) |
|
|
|
|
|
|
Adjustments for non-GAAP measures of
performance: |
|
|
|
|
Add back amortization of
intangibles |
|
951,221 |
|
|
2,912,690 |
|
|
451,720 |
|
|
Add back share-based compensation
expenses |
|
691,188 |
|
|
3,055,492 |
|
|
473,867 |
|
|
Adjusted non-GAAP operating loss |
|
(3,838,075 |
) |
|
(8,685,005 |
) |
|
(1,346,929 |
) |
|
Add back depreciation |
|
408,375 |
|
|
531,723 |
|
|
82,463 |
|
|
|
|
|
|
|
Adjusted EBITDA (Loss before interest, taxes, depreciation
and amortization) |
|
(3,429,700 |
) |
|
(8,153,282 |
) |
|
(1,264,466 |
) |
|
|
|
|
|
|
NON-GAAP OPERATING LOSS AND ADJUSTED EBITDA, as a
percentage of revenue |
|
|
|
|
|
|
|
|
|
Operating loss (GAAP BASIS) |
|
-23 |
% |
|
-74 |
% |
|
-74 |
% |
|
|
|
|
|
|
Adjustments for non-GAAP measures of
performance: |
|
|
|
|
Amortization of intangibles |
|
4 |
% |
|
15 |
% |
|
15 |
% |
|
Share-based compensation
expenses |
|
3 |
% |
|
15 |
% |
|
15 |
% |
|
Adjusted non-GAAP operating loss |
|
-16 |
% |
|
-44 |
% |
|
-44 |
% |
|
Depreciation |
|
2 |
% |
|
3 |
% |
|
3 |
% |
|
|
|
|
|
|
Adjusted EBITDA (Loss before interest, taxes, depreciation
and amortization) |
|
-15 |
% |
|
-41 |
% |
|
-41 |
% |
|
|
|
|
|
|
NON-GAAP LOSS PER SHARE |
|
|
|
|
Net loss |
|
(5,293,746 |
) |
|
(11,717,034 |
) |
|
(1,817,157 |
) |
|
Amortization of intangibles |
|
951,221 |
|
|
2,912,690 |
|
|
451,720 |
|
|
Share-based compensation
expenses |
|
691,188 |
|
|
3,055,492 |
|
|
473,867 |
|
|
Adjusted net loss |
|
(3,651,337 |
) |
|
(5,748,852 |
) |
|
(891,570 |
) |
|
|
|
|
|
|
Adjusted non-GAAP diluted loss per share |
|
(0.87 |
) |
|
(1.08 |
) |
|
(0.17 |
) |
|
Shares
used to compute non-GAAP diluted loss per share |
|
4,219,540 |
|
|
5,335,363 |
|
|
5,335,363 |
|
|
|
|
|
|
|
EFUTURE HOLDING INC. |
|
|
Exchange
rate |
|
6.4480 |
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
Chinese Yuan (Renminbi) |
U.S.
Dollars |
|
|
|
|
|
March 31, |
March 31, |
March 31, |
|
|
|
|
|
|
2015 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
Net loss |
|
|
(5,293,746 |
) |
|
(11,717,034 |
) |
|
(1,817,157 |
) |
|
|
|
Adjustments to
reconcile net loss to net cash flows used in operating
activities: |
|
|
|
|
|
|
|
Depreciation of property and equipment |
|
|
408,375 |
|
|
531,723 |
|
|
82,463 |
|
|
|
|
Amortization of intangible assets |
|
|
951,221 |
|
|
2,912,690 |
|
|
451,720 |
|
|
|
|
Loss on
disposal of property and equipment |
|
|
239 |
|
|
(3 |
) |
|
- |
|
|
|
|
Allowance for doubtful accounts |
|
|
2,488,835 |
|
|
1,035,335 |
|
|
160,567 |
|
|
|
|
Provision for loss in inventory and work in process |
|
|
- |
|
|
(354,420 |
) |
|
(54,966 |
) |
|
|
|
Compensation expenses |
|
|
691,188 |
|
|
3,055,492 |
|
|
473,867 |
|
|
|
|
Deferred
income taxes |
|
|
(251,781 |
) |
|
(3,265,556 |
) |
|
(506,445 |
) |
|
|
|
Foreign
exchange loss |
|
|
(7,772 |
) |
|
359,110 |
|
|
55,693 |
|
|
|
|
Changes
in assets and liabilities: |
|
|
|
|
|
|
|
Trade
receivables |
|
|
2,299,221 |
|
|
7,786,545 |
|
|
1,207,591 |
|
|
|
|
Refundable value added tax |
|
|
5,694,643 |
|
|
(265,025 |
) |
|
(41,102 |
) |
|
|
|
Advances
to employees |
|
|
(505,057 |
) |
|
118,533 |
|
|
18,383 |
|
|
|
|
Other
receivables |
|
|
(425,716 |
) |
|
(2,188,747 |
) |
|
(339,446 |
) |
|
|
|
Prepaid
expenses |
|
|
(1,605,599 |
) |
|
(3,201,555 |
) |
|
(496,519 |
) |
|
|
|
Inventory and work in process |
|
|
(14,216,844 |
) |
|
(9,688,920 |
) |
|
(1,502,625 |
) |
|
|
|
Trade
payables |
|
|
(912,482 |
) |
|
(4,553,737 |
) |
|
(706,225 |
) |
|
|
|
Other
payables |
|
|
(4,819,796 |
) |
|
(22,927,436 |
) |
|
(3,555,744 |
) |
|
|
|
Accrued
expenses |
|
|
(11,207,711 |
) |
|
(16,734,441 |
) |
|
(2,595,292 |
) |
|
|
|
Taxes
payable |
|
|
(3,753,732 |
) |
|
(10,632,524 |
) |
|
(1,648,965 |
) |
|
|
|
Deferred
revenue |
|
|
1,864,366 |
|
|
8,397,355 |
|
|
1,302,319 |
|
|
|
|
Net cash used
in operating activities |
|
|
(28,602,148 |
) |
|
(61,332,615 |
) |
|
(9,511,883 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(88,585 |
) |
|
(737,401 |
) |
|
(114,361 |
) |
|
|
|
Payments
for intangible assets |
|
|
(2,432,197 |
) |
|
(1,238,975 |
) |
|
(192,149 |
) |
|
|
|
Cash
received from disposal of property and equipment |
|
|
50 |
|
|
1,799 |
|
|
279 |
|
|
|
|
Net cash used
in investing activities |
|
|
(2,520,732 |
) |
|
(1,974,577 |
) |
|
(306,231 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
Proceeds from
short-term loans |
|
|
1,764,900 |
|
|
- |
|
|
- |
|
|
|
|
Repayment of short-term
loans |
|
|
|
(1,764,900 |
) |
|
(273,713 |
) |
|
|
|
Proceeds from exercise
of options by employees |
|
|
|
394,874 |
|
|
61,240 |
|
|
|
|
Net
cash provided by (used in)
financing activities |
|
|
1,764,900 |
|
|
(1,370,026 |
) |
|
(212,473 |
) |
|
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
|
7,772 |
|
|
(359,110 |
) |
|
(55,693 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net decrease in
cash and cash equivalents |
|
|
(29,350,208 |
) |
|
(65,036,328 |
) |
|
(10,086,280 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period |
|
|
64,558,916 |
|
|
96,654,067 |
|
|
14,989,775 |
|
|
|
|
Cash and cash
equivalents at end of period |
|
|
35,208,708 |
|
|
31,617,739 |
|
|
4,903,496 |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
cash flow information |
|
|
|
|
|
|
|
Interest paid |
|
|
216,398 |
|
|
91,084 |
|
|
14,126 |
|
|
|
|
Income tax paid |
|
|
285,767 |
|
|
216,855 |
|
|
33,631 |
|
|
|
|
|
|
|
|
|
|
|
Investor Contact:
Troe Wen, Company Secretary
eFuture Holding Inc.
+86 10 50916128
ir@e-future.com.cn
eFuture Holding Inc. (NASDAQ:EFUT)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
eFuture Holding Inc. (NASDAQ:EFUT)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024