eFuture Holding Inc. (Nasdaq:EFUT) (the “Company” or “eFuture”), a
leading software and solution provider and a mobile business
enabler to China's rapidly growing retail and consumer goods
industries, today announced its unaudited financial results for the
fourth quarter and full year ended December 31, 2015.
Full Year
2015 Financial
and Operational Highlights
- Total revenue increased 1% year-over-year to RMB221.6 million
(US$34.2 million).
- Gross profit decreased 1% year-over-year to RMB92.1 million
(US$14.2 million).
- Adjusted EBITDA increased 2% year-over-year to RMB20.0 million
(US$3.1 million).
- Operating income decreased 27% year-over-year to RMB7.8 million
(US$1.2 million).
- Net income decreased 55% year-over-year to RMB3.3 million
(US$0.5 million)
- Adjusted net income decreased 5% year-over-year to RMB13.7
million (US$2.1 million), as compared to adjusted net income of
RMB14.5 million in 2014.
- Basic earnings per share decreased 61% year-over-year to
RMB0.69 (US$0.11), as compared to basic earnings per share of
RMB1.77 in 2014.
- Diluted earnings per share decreased 60% year-over-year to
RMB0.69 (US$0.11), as compared to diluted earnings per share of
RMB1.71 in 2014.
- Adjusted diluted earnings per share decreased 16%
year-over-year to RMB2.80 (US$0.43), as compared to adjusted
diluted earnings per share of RMB3.35 in 2014.
- Backlog as of December 31, 2015 decreased 5% year-over-year to
RMB138.7million (US$24.1 million).
Fourth Quarter
2015 Financial
Highlights
- Total revenue decreased 2% year-over-year to RMB129.0 million
(US$19.9 million).
- Gross profit decreased 6% year-over-year to RMB54.3 million
(US$8.4 million).
- Adjusted EBITDA decreased 2% year-over-year to RMB27.1 million
(US$4.2million), compared to RMB27.6 million in the fourth quarter
2014.
- Operating income decreased 5% year-over-year to RMB22.6 million
(US$3.5 million), compared to RMB23.8 million in the fourth quarter
2014.
- Net income decreased 1% year-over-year to RMB18.5 million
(US$2.9 million), compared to RMB18.7 million in the fourth quarter
2014.
- Adjusted net income remained level at 22.1 million (US$3.4
million), compared to adjusted net income of RMB22.1 million in the
fourth quarter 2014.
- Basic and diluted earnings per share decreased 17%
year-over-year to RMB3.60 (US$0.56), as compared to RMB4.35 in the
fourth quarter 2014.
- Adjusted diluted earnings per share decreased 19%
year-over-year to RMB4.17 (US$0.66), as compared to adjusted
diluted earnings per share of RMB5.12 in the fourth quarter
2014.
"In 2015, we focused on the company's management structure
realignment to better serve our core business--software and
services. We also selected, reviewed and adjusted our innovative
businesses for incubation. We fine-tuned the company's business
strategy rationally--build an open and cooperative software and
cloud service platform that forms the omni-channel sales loop by
connecting retailers, merchandises and consumers and provides an
O2O ("Online together with Offline") matchmaker service to help
internet platforms cooperate with physical retailers in different
real-world scenarios." Mr. David Ren, Chief Executive Officer of
eFuture, commented.
“As Shiji (Hong Kong) Limited acquired more than 50% of our
ordinary shares in November 2015 and is a wholly owned subsidiary
of Beijing Shiji Information Technology Co. Ltd. (Shenzhen Stock
Exchange:002153), the Company plans to work closely with Shiji in
developing a strategy relating to our omni-channel platform which
provides Chinese retailers and consumers with big data value-added
services, that benefits both companies. ” Mr. Ren added.
“We are pleased that we have successfully delivered on our
promise to maintain sustained profitable results for the fiscal
year 2015. The rapid increase of service revenue mix demonstrates
the potential for becoming the fundamental strength of our core
business. Our omni-channel solution business continues to gain
momentum through the support of those innovative retailers who seek
to provide their customers with a seamless shopping
experience. We will focus on R&D investment and product
optimization, as well as labor efficiency improvement.” Ms. Ping
Yu, Chief Financial Officer of eFuture, said.
FULL YEAR
2015 FINANCIAL
RESULTS
Revenue
Total revenue for full year of 2015 increased to RMB 221.6
million (US$34.2 million) from RMB219.5 million in 2014.
Revenue Breakdown
|
|
|
|
FY14 |
FY15 |
RMB ‘000 |
RMB ‘000 |
USD ‘000 |
Y-o-Y Change |
Software revenue |
83,693 |
73,393 |
11,330 |
|
-12 |
% |
Hardware revenue |
5,949 |
8,129 |
1,255 |
|
37 |
% |
Service fee revenue |
129,812 |
140,043 |
21,619 |
|
8 |
% |
Total |
219,454 |
221,565 |
34,204 |
|
1 |
% |
|
|
|
|
|
|
|
Software revenue for 2015 decreased 12%
year-over-year to RMB73.4 million (US$11.3 million) from RMB83.7
million in 2014. The decrease was primarily due to the continued
reduction of new physical retail stores under the current macro
economy condition.
Hardware revenue for 2015 increased 37% year-over-year to RMB8.1
million (US$1.3 million) from RMB5.9 million in 2014. The increase
was due to the completion of two one-off projects in the shopping
mall and logistics industry in 2015.
Service fee revenue for 2015 increased 8%
year-over-year to RMB140.0 million (US$21.6 million) from RMB129.8
million in 2014. The increase was primarily attributable to
completion of a large customizable service project for a key
customer in the grocery industry.
Cost of Revenue
Cost of revenue for 2015 increased 3% to
RMB129.5 million (US$20.0 million) from RMB126.1 million in 2014.
The primary reason was the increased amortization of software costs
associated with innovative projects development from previous
years.
Cost of Revenue Breakdown
|
|
|
|
FY14 |
FY15 |
|
RMB ‘000 |
RMB ‘000 |
USD ‘000 |
Y-o-Y Change |
Cost of software revenue |
19,600 |
19,175 |
2,960 |
|
-2 |
% |
Cost of hardware revenue |
6,033 |
6,827 |
1,054 |
|
13 |
% |
Cost of service fee revenue |
96,712 |
95,029 |
14,670 |
|
-2 |
% |
Amortization of software costs |
3,766 |
8,423 |
1,300 |
|
124 |
% |
Total |
126,111 |
129,453 |
19,984 |
|
3 |
% |
|
|
|
|
|
|
|
Gross Profit and Gross Margin
Gross profit decreased 1% year-over-year to RMB92.1 million
(US$14.2 million) from RMB93.3 million in 2014, and consolidated
gross margin for 2015 was 42%, compared with 43% in 2014.
Operating Expenses
Research and development (“R&D”) expenses
for 2015 increased 8% year-over-year to RMB8.7 million (US$1.3
million), or 4% of total revenue, compared with RMB8.0 million, or
4% of total revenue in 2014. The increase was primarily
attributable to expenditures on innovative projects.
General and administrative expenses (“G&A”) for 2015
increased 37% year-over-year to RMB37.5 million (US$5.8 million),
representing 17% of total revenue, compared with RMB27.4 million,
or 12% of total revenue in 2014. The increase was primarily
attributable to the increase in staff costs and an increased bad
debt provision resulting from a trade receivable that had not been
collected on schedule, as well as higher rental costs and expenses
resulting from moving into two new offices in Beijing.
Selling and distribution (“S&D”) expenses for 2015 was
RMB38.2 million (US$5.9 million), representing 17% of total
revenue, compared with RMB47.3 million, or 22% of total revenue in
2014. The decrease was primarily attributable to enhanced human
resource integration and improved management efficiency.
Operating Income
Operating income in 2015 was RMB7.8 million (US$1.2 million),
compared with an operating income RMB10.6 million in 2014. The
decrease of 27% was primarily due to the increased amortization of
software costs associated with innovative projects development from
previous years.
Net Income/Adjusted Net Income and
Earnings Per Share/Adjusted
Earnings Per Share
2015 net income decreased 55% to RMB3.3 million
(US$0.5 million), compared with net income RMB7.4 million in 2014.
Adjusted net income decreased 5% to RMB13.7 million (US$2.1
million) for 2015, compared with an adjusted net income RMB14.5
million in 2014.
Basic earnings per share in 2015 decreased 61%
to RMB0.69 (US$0.11), compared to basic earnings per share of
RMB1.77 in 2014. Diluted earnings per share decreased 60% to
RMB0.69(US$0.11), compared to diluted earnings per share of RMB1.71
in 2014. Adjusted diluted earnings per share was RMB2.80 (US$0.43),
compared to an adjusted diluted earnings per share RMB3.35 in
2014.
EBITDA
Adjusted EBITDA for 2015 was RMB20.0 million
(US$3.1 million), compared to RMB19.5 million in 2014, an increase
of 2%.
FOURTH QUARTER
2015 FINANCIAL
RESULTS
Revenue
Total revenue for the fourth quarter 2015
decreased 2% to RMB129.0 million (US$19.9 million) from RMB131.5
million in the fourth quarter 2014.
Revenue Breakdown
|
|
|
|
4Q14 |
4Q15 |
RMB ‘000 |
RMB ‘000 |
USD ‘000 |
Y-o-Y Change |
Software revenue |
54,929 |
41,649 |
6,429 |
|
-24 |
% |
Hardware revenue |
3,508 |
1,898 |
293 |
|
-46 |
% |
Service fee revenue |
73,112 |
85,463 |
13,194 |
|
17 |
% |
Total |
131,549 |
129,010 |
19,916 |
|
-2 |
% |
|
|
|
|
|
|
|
Software revenue for the fourth quarter 2015
decreased 24% year-over-year to RMB41.6 million (US$6.4 million)
from RMB54.9 million in the fourth quarter 2014. The decrease
of 24% was primarily attributable to the continued reduction of new
physical retail stores under the current macro economy
condition.
Hardware revenue in the fourth quarter 2015
decreased 46% year-over-year to RMB1.9 million (US$0.3 million)
from RMB3.5 million in the fourth quarter 2014. The decrease was
the completion of two one-off projects in the department store and
shopping mall industries in the fourth quarter in 2014.
Service fee revenue for the fourth quarter 2015
increased 17% year-over-year to RMB85.5 million (US$13.2 million)
from RMB73.1 million in the fourth quarter 2014. The increase was
primarily due to completion of a large customizable service project
from a key customer in grocery industry.
Cost of Revenue
Cost of revenue for the fourth quarter 2015
increased 1% to RMB74.8 million (US$11.5 million) from RMB73.8
million in the fourth quarter 2014.
Cost of Revenue Breakdown
|
|
|
|
4Q14 |
4Q15 |
|
RMB ‘000 |
RMB ‘000 |
USD ‘000 |
Y-o-Y Change |
Cost of software revenue |
12,131 |
12,030 |
1,857 |
|
-1 |
% |
Cost of hardware revenue |
3,728 |
1,501 |
232 |
|
-60 |
% |
Cost of service fee revenue |
57,012 |
58,341 |
9,006 |
|
2 |
% |
Amortization of software costs |
955 |
2,878 |
444 |
|
201 |
% |
Total |
73,826 |
74,750 |
11,539 |
|
1 |
% |
|
|
|
|
|
|
|
Gross Profit and Gross
Margin
Gross profit decreased 6% year-over-year to RMB54.3 million
(US$8.4 million) from RMB57.7 million in the fourth quarter 2014,
and consolidated gross margin for the fourth quarter 2015 was 42%,
compared with 44% in the fourth quarter 2014. The decrease in gross
margin was primarily due to the increased amortization of software
costs associated with innovative projects development from previous
years.
Operating Expenses
Research and development (“R&D”) expenses
for the fourth quarter 2015 decreased 33% year-over-year to RMB4.0
million (US$0.6 million), representing 3% of total revenue,
compared to RMB6.0 million, or 5% of total revenue in the fourth
quarter 2014. The decrease was primarily attributable to a
decreased option expense and related expenditure as employee
incentive plan granted in December 2014, as well as the expenditure
of some software projects in the fourth quarter 2014.
General and administrative expenses (“G&A”) for the fourth
quarter 2015 increased 40% year-over-year to RMB14.4 million
(US$2.2 million), representing 11% of total revenue, compared with
RMB10.3 million, or 8% of total revenue in the fourth quarter 2014.
The increase was primarily attributable to an increased bad debt
provision resulting from a trade receivable that had not been
collected on schedule, the increase in staff costs, as well as
higher rental costs and expenses resulting from moving into two new
offices in Beijing in the fourth quarter 2015.
Selling and distribution (“S&D”) expenses
for the fourth quarter 2015 decreased 25% year-over-year to RMB13.3
million (US$2.1 million), representing 10% of total revenue,
compared with RMB17.6 million, or 13% of total revenue in the
fourth quarter 2014. The decrease was primarily attributable to
improved management efficiency on investments in marketing events
in the fourth quarter 2015.
Operating
Income
Operating income in the fourth quarter 2015 was RMB22.6 million
(US$3.5 million), decreased by 5% from RMB23.8 million in the
fourth quarter 2014.
Net Income/Adjusted Net
Income and Earnings Per Share/Adjusted Earnings
Per Share
Fourth quarter 2015 net income decreased 1% to
RMB18.5 million (US$2.9 million), compared with net income of
RMB18.7 million in the fourth quarter 2014. Adjusted net income for
the fourth quarter 2015 remained level at RMB22.1 million (US$3.4
million), compared to RMB22.1 million in the fourth quarter
2014.
Basic and diluted earnings per share in the
fourth quarter 2015 decreased to RMB3.60 (US$0.56), or 17%,
compared to basic and diluted earnings per share of RMB4.35 in the
fourth quarter 2014. Adjusted diluted earnings per share was
RMB4.17 (US$0.66), compared to RMB5.12 in the fourth quarter 2014,
a decrease of 19%.
EBITDA
Adjusted EBITDA for the fourth quarter 2015
decreased 2% to RMB27.1 million (US$4.2 million), compared to
RMB27.6 million in the fourth quarter 2014.
Balance Sheet and Cash Flow
As of December 31, 2015, cash and cash equivalents were RMB106.7
million (US$16.5 million), an increase of RMB42.1 million from
RMB64.6 million as of December 31, 2014. The increase was mainly
attributable to increased cash flows from the exercise of options
by employees and cash flows from issuance of ordinary shares
through the private placement transaction in 2015.
Total accounts receivable as of December 31, 2015 increased 35%
to RMB55.2 million (US$8.5 million) from RMB40.9 million as of
December 31, 2014. This resulted from the completion of several
projects in the fourth quarter 2015, and it is expected that
customers will make payments over the next few months.
Inventory and work in processes as of December 31, 2015
increased 13% to RMB16.5 million (US$2.5 million) from RMB14.6
million as of December 31, 2014. The increase was primarily
attributable to a number of on-going large projects which had not
reached the point of revenue recognition.
For the full year ended December 31, 2015, net
cash provided by operating activities was RMB24.7 million (US$3.8
million). Net cash used in investing activities was RMB6.7 million
(US$1.0 million). Net cash provided by financing activities was
RMB23.4 (US$3.6 million).
FIRST QUARTER 2016
GUIDANCE
eFuture expects total revenue for the first
quarter 2016 to range between RMB19 million (US$2.9 million) to
RMB24million (US$3.7million), and adjusted EBITDA for the first
quarter 2016 is expected to range between negative RMB9 million
(US$1.4million) to negative RMB5 million (US$ 0.8 million).
TAX INSPECTION
The Beijing tax authority has not made a
decision regarding the issue of underpayment of taxes as disclosed
in the 2015 third quarter earnings release.
CURRENCY CONVENIENCE
TRANSLATION
For the convenience of readers, certain RMB
amounts have been translated into US dollars at the rate of
RMB6.4778 to US$1.00, the noon buying rate for US dollars in effect
on December 31, 2015 for cable transfers of RMB per U.S. dollar as
certified for customs purposes by the Federal Reserve Bank of New
York.
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 rapidly growing retail and consumer goods industries.
eFuture's clients include over 1,000 active retailers with more
than 50,000 physical stores across China, of which approximately
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, 2013 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 March 4, 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. AND SUBSIDIARIES |
|
|
Exchange
rate |
|
6.4778 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
Chinese Yuan (Renminbi) |
U.S.
Dollars |
|
|
December 31, |
December 31, |
December 31, |
|
|
|
2014 |
|
|
2015 |
|
|
2015 |
|
|
|
(Audited) |
(Unaudited) |
(Unaudited) |
ASSETS |
|
|
|
|
Current
assets |
|
|
|
|
Cash and
cash equivalents |
|
|
64,558,916 |
|
|
106,654,067 |
|
|
16,464,551 |
|
Trade
receivables,net of allowance for doubtful accounts of ¥4,502,766
and ¥9,967,342($1,538,692), respectively |
|
|
40,889,759 |
|
|
55,237,392 |
|
|
8,527,184 |
|
Refundable value added tax |
|
|
6,765,916 |
|
|
2,179,123 |
|
|
336,399 |
|
Advances
to employees |
|
|
1,117,272 |
|
|
697,006 |
|
|
107,599 |
|
Other
receivables |
|
|
2,474,076 |
|
|
2,072,858 |
|
|
319,994 |
|
Prepaid
expenses |
|
|
1,554,052 |
|
|
1,275,727 |
|
|
196,938 |
|
Inventory and work in process,net of inventory provision of
¥4,356,091 and ¥4,026,525($621,588), respectively |
|
|
14,560,195 |
|
|
16,512,881 |
|
|
2,549,150 |
|
Deferred
tax assets, current portion |
|
|
7,046,782 |
|
|
7,637,587 |
|
|
1,179,040 |
|
Total current
assets |
|
|
138,966,968 |
|
|
192,266,641 |
|
|
29,680,855 |
|
Non-current
assets |
|
|
|
|
Long-term investments,net of impairment of ¥240,000 and
¥240,000($37,050), respectively |
|
|
- |
|
|
- |
|
|
- |
|
Property
and equipment, net of accumulated depreciation of ¥9,515,986 and
¥10,513,072($1,622,939), respectively |
|
|
3,279,483 |
|
|
3,473,877 |
|
|
536,274 |
|
Intangible assets, net of accumulated amortization of ¥80,190,029
and ¥88,612,659($13,679,437), respectively |
|
|
40,294,260 |
|
|
36,521,835 |
|
|
5,638,000 |
|
Goodwill |
|
|
80,625,667 |
|
|
80,625,667 |
|
|
12,446,458 |
|
Deferred
tax assets |
|
|
919,637 |
|
|
998,139 |
|
|
154,086 |
|
Total
non-current assets |
|
|
125,119,047 |
|
|
121,619,518 |
|
|
18,774,818 |
|
Total
assets |
|
|
264,086,015 |
|
|
313,886,159 |
|
|
48,455,673 |
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
Current
liabilities |
|
|
|
|
Short-term loans |
|
|
10,692,003 |
|
|
7,307,997 |
|
|
1,128,160 |
|
Trade
payables |
|
|
12,509,613 |
|
|
16,518,543 |
|
|
2,550,024 |
|
Other
payables |
|
|
17,978,021 |
|
|
36,988,223 |
|
|
5,709,998 |
|
Accrued
expenses |
|
|
24,685,555 |
|
|
24,860,304 |
|
|
3,837,770 |
|
Taxes
payable |
|
|
16,128,358 |
|
|
21,791,642 |
|
|
3,364,050 |
|
Advances
from customers |
|
|
51,661,078 |
|
|
43,935,067 |
|
|
6,782,406 |
|
Total current
liabilities |
|
|
133,654,628 |
|
|
151,401,776 |
|
|
23,372,408 |
|
|
|
|
|
|
Equity |
|
|
|
|
Ordinary
shares $0.0756 U.S. dollars par value; 6,613,756 shares,
authorized;3,989,626 shares and 5,218,615 shares issued and
outstanding, respectively |
|
|
2,357,978 |
|
|
2,934,894 |
|
|
453,070 |
|
Additional paid-in capital |
|
|
234,405,541 |
|
|
262,553,351 |
|
|
40,531,253 |
|
Statutory reserves |
|
|
8,574,634 |
|
|
8,574,634 |
|
|
1,323,695 |
|
Accumulated deficits |
|
|
(114,906,766 |
) |
|
(111,578,496 |
) |
|
(17,224,752 |
) |
Total
equity |
|
|
130,431,387 |
|
|
162,484,383 |
|
|
25,083,266 |
|
Total
liabilities and equity |
|
|
264,086,015 |
|
|
313,886,159 |
|
|
48,455,674 |
|
|
|
|
|
|
EFUTURE HOLDING INC. AND SUBSIDIARIES |
|
Exchange
rate |
|
6.4778 |
|
|
|
|
|
|
CONDENSED CONSOLIDATED INCOME STATEMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
Three months ended |
|
|
Chinese Yuan (Renminbi) |
U.S.
Dollars |
|
|
Chinese Yuan (Renminbi) |
U.S.
Dollars |
|
|
|
December 31, |
December 31, |
December 31, |
|
|
December 31, |
December 31, |
December 31, |
|
|
|
|
2014 |
|
|
2015 |
|
|
2015 |
|
Y-o-Y
Change |
|
|
2014 |
|
|
2015 |
|
|
2015 |
|
Y-o-Y
Change |
|
|
(Audited) |
(Unaudited) |
(Unaudited) |
% |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
% |
Revenues |
|
|
|
|
|
|
|
|
|
|
Software
revenue |
|
|
83,693,264 |
|
|
73,392,666 |
|
|
11,329,875 |
|
|
-12 |
% |
|
|
54,929,148 |
|
|
41,648,880 |
|
|
6,429,479 |
|
|
-24 |
% |
Hardware
revenue |
|
|
5,948,379 |
|
|
8,129,266 |
|
|
1,254,942 |
|
|
37 |
% |
|
|
3,507,942 |
|
|
1,897,697 |
|
|
292,954 |
|
|
-46 |
% |
Service fee
revenue |
|
|
129,812,064 |
|
|
140,042,841 |
|
|
21,618,889 |
|
|
8 |
% |
|
|
73,111,448 |
|
|
85,463,047 |
|
|
13,193,221 |
|
|
17 |
% |
Total revenues |
|
|
219,453,707 |
|
|
221,564,773 |
|
|
34,203,706 |
|
|
1 |
% |
|
|
131,548,538 |
|
|
129,009,624 |
|
|
19,915,654 |
|
|
-2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
Cost of
software revenue |
|
|
19,599,743 |
|
|
19,174,966 |
|
|
2,960,105 |
|
|
-2 |
% |
|
|
12,130,816 |
|
|
12,030,260 |
|
|
1,857,152 |
|
|
-1 |
% |
Cost of
hardware revenue |
|
|
6,032,868 |
|
|
6,827,063 |
|
|
1,053,917 |
|
|
13 |
% |
|
|
3,728,198 |
|
|
1,501,176 |
|
|
231,742 |
|
|
-60 |
% |
Cost of
service fee revenue |
|
|
96,712,746 |
|
|
95,028,741 |
|
|
14,669,910 |
|
|
-2 |
% |
|
|
57,012,162 |
|
|
58,341,132 |
|
|
9,006,319 |
|
|
2 |
% |
Amortization of software costs |
|
|
3,765,833 |
|
|
8,422,630 |
|
|
1,300,230 |
|
|
124 |
% |
|
|
954,637 |
|
|
2,877,842 |
|
|
444,262 |
|
|
201 |
% |
Total cost of revenues |
|
|
126,111,190 |
|
|
129,453,400 |
|
|
19,984,162 |
|
|
3 |
% |
|
|
73,825,813 |
|
|
74,750,410 |
|
|
11,539,475 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
93,342,517 |
|
|
92,111,373 |
|
|
14,219,544 |
|
|
-1 |
% |
|
|
57,722,725 |
|
|
54,259,214 |
|
|
8,376,179 |
|
|
-6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
Research
and development expenses |
|
|
8,017,819 |
|
|
8,684,459 |
|
|
1,340,649 |
|
|
8 |
% |
|
|
5,987,184 |
|
|
4,003,153 |
|
|
617,980 |
|
|
-33 |
% |
General and
administrative expenses |
|
|
27,369,028 |
|
|
37,458,620 |
|
|
5,782,614 |
|
|
37 |
% |
|
|
10,294,982 |
|
|
14,387,456 |
|
|
2,221,040 |
|
|
40 |
% |
Selling and
distribution expenses |
|
|
47,339,529 |
|
|
38,185,022 |
|
|
5,894,752 |
|
|
-19 |
% |
|
|
17,617,431 |
|
|
13,283,146 |
|
|
2,050,564 |
|
|
-25 |
% |
Total operating expenses |
|
|
82,726,376 |
|
|
84,328,101 |
|
|
13,018,016 |
|
|
2 |
% |
|
|
33,899,597 |
|
|
31,673,755 |
|
|
4,889,585 |
|
|
-7 |
% |
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
10,616,141 |
|
|
7,783,272 |
|
|
1,201,528 |
|
|
|
|
23,823,128 |
|
|
22,585,459 |
|
|
3,486,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses) |
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
564,750 |
|
|
296,389 |
|
|
45,755 |
|
|
|
|
83,490 |
|
|
59,338 |
|
|
9,160 |
|
|
Interest expenses |
|
|
(164,171 |
) |
|
(822,860 |
) |
|
(127,028 |
) |
|
|
|
(139,146 |
) |
|
(114,102 |
) |
|
(17,614 |
) |
|
Other income |
|
|
587,836 |
|
|
503,677 |
|
|
77,754 |
|
|
|
|
23,355 |
|
|
201,523 |
|
|
31,110 |
|
|
Foreign currency exchange gain
(loss) |
|
|
7,649 |
|
|
746,505 |
|
|
115,241 |
|
|
|
|
(11,366 |
) |
|
615,762 |
|
|
95,057 |
|
|
Income before income tax |
|
|
11,612,205 |
|
|
8,506,983 |
|
|
1,313,252 |
|
|
|
|
23,779,461 |
|
|
23,347,980 |
|
|
3,604,307 |
|
|
Less:
Income tax expense |
|
|
4,225,049 |
|
|
5,178,713 |
|
|
799,456 |
|
|
|
|
5,052,970 |
|
|
4,808,589 |
|
|
742,318 |
|
|
Net
Income |
|
|
7,387,156 |
|
|
3,328,270 |
|
|
513,796 |
|
|
|
|
18,726,491 |
|
|
18,539,391 |
|
|
2,861,989 |
|
|
Income per share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
1.77 |
|
|
0.69 |
|
|
0.11 |
|
|
|
|
4.35 |
|
|
3.60 |
|
|
0.56 |
|
|
Diluted |
|
|
1.71 |
|
|
0.69 |
|
|
0.11 |
|
|
|
|
4.35 |
|
|
3.60 |
|
|
0.56 |
|
|
Basic weighted average shares outstanding |
|
|
4,173,014 |
|
|
4,842,727 |
|
|
4,842,727 |
|
|
|
|
4,309,234 |
|
|
5,156,553 |
|
|
5,156,553 |
|
|
Fully diluted weighted average shares
outstanding |
|
|
4,308,516 |
|
|
4,888,023 |
|
|
4,888,023 |
|
|
|
|
4,309,234 |
|
|
5,303,463 |
|
|
5,303,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EFUTURE HOLDING INC. AND SUBSIDIARIES |
|
Exchange
rate |
|
6.4778 |
|
|
|
|
|
NON-GAAP
MEASURES OF PERFORMANCE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
Three months ended |
|
Chinese Yuan (Renminbi) |
U.S.
Dollars |
|
Chinese Yuan (Renminbi) |
U.S.
Dollars |
|
December 31, |
December 31, |
December 31, |
|
December 31, |
December 31, |
December 31, |
|
|
2014 |
|
|
2015 |
|
|
2015 |
|
|
|
2014 |
|
|
2015 |
|
|
2015 |
|
|
(Audited) |
(Unaudited) |
(Unaudited) |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
NON-GAAP OPERATING INCOME AND ADJUSTED
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income(GAAP basis) |
|
10,616,141 |
|
|
7,783,272 |
|
|
1,201,528 |
|
|
|
23,823,128 |
|
|
22,585,459 |
|
|
3,486,594 |
|
|
|
|
|
|
|
|
|
Adjustments for non-GAAP measures of
performance: |
|
|
|
|
|
|
|
Add back amortization of
intangibles |
|
3,765,833 |
|
|
8,422,630 |
|
|
1,300,230 |
|
|
|
954,637 |
|
|
2,877,842 |
|
|
444,262 |
|
Add back
share-based compensation expenses |
|
3,298,602 |
|
|
1,951,097 |
|
|
301,197 |
|
|
|
2,397,094 |
|
|
683,603 |
|
|
105,530 |
|
Adjusted non-GAAP operating income |
|
17,680,576 |
|
|
18,156,999 |
|
|
2,802,955 |
|
|
|
27,174,859 |
|
|
26,146,904 |
|
|
4,036,386 |
|
Add back depreciation |
|
1,804,164 |
|
|
1,812,863 |
|
|
279,858 |
|
|
|
421,035 |
|
|
951,665 |
|
|
146,912 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (Earnings before interest, taxes,
depreciation and amortization) |
|
19,484,740 |
|
|
19,969,862 |
|
|
3,082,813 |
|
|
|
27,595,894 |
|
|
27,098,569 |
|
|
4,183,298 |
|
|
|
|
|
|
|
|
|
NON-GAAP OPERATING INCOME AND ADJUSTED EBITDA, as a
percentage of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (GAAP BASIS) |
|
5 |
% |
|
4 |
% |
|
4 |
% |
|
|
18 |
% |
|
18 |
% |
|
18 |
% |
|
|
|
|
|
|
|
|
Adjustments for non-GAAP measures of
performance: |
|
|
|
|
|
|
|
Amortization of intangibles |
|
2 |
% |
|
4 |
% |
|
4 |
% |
|
|
1 |
% |
|
2 |
% |
|
2 |
% |
Share-based
compensation expenses |
|
2 |
% |
|
1 |
% |
|
1 |
% |
|
|
2 |
% |
|
1 |
% |
|
1 |
% |
Adjusted non-GAAP operating income |
|
8 |
% |
|
8 |
% |
|
8 |
% |
|
|
21 |
% |
|
20 |
% |
|
20 |
% |
Depreciation |
|
1 |
% |
|
1 |
% |
|
1 |
% |
|
|
0 |
% |
|
1 |
% |
|
1 |
% |
|
|
|
|
|
|
|
|
Adjusted EBITDA (Earnings before interest, taxes,
depreciation and amortization) |
|
9 |
% |
|
9 |
% |
|
9 |
% |
|
|
21 |
% |
|
21 |
% |
|
21 |
% |
|
|
|
|
|
|
|
|
NON-GAAP EARNINGS PER SHARE |
|
|
|
|
|
|
|
Net income |
|
7,387,156 |
|
|
3,328,270 |
|
|
513,796 |
|
|
|
18,726,491 |
|
|
18,539,391 |
|
|
2,861,989 |
|
Amortization of intangibles |
|
3,765,833 |
|
|
8,422,630 |
|
|
1,300,230 |
|
|
|
954,637 |
|
|
2,877,842 |
|
|
444,262 |
|
Share-based
compensation expenses |
|
3,298,602 |
|
|
1,951,097 |
|
|
301,197 |
|
|
|
2,397,094 |
|
|
683,603 |
|
|
105,530 |
|
Adjusted net income |
|
14,451,591 |
|
|
13,701,997 |
|
|
2,115,223 |
|
|
|
22,078,222 |
|
|
22,100,836 |
|
|
3,411,781 |
|
|
|
|
|
|
|
|
|
Adjusted non-GAAP diluted earning per share |
|
3.35 |
|
|
2.80 |
|
|
0.43 |
|
|
|
5.12 |
|
|
4.17 |
|
|
0.66 |
|
Shares
used to compute non-GAAP diluted income per share |
|
4,308,516 |
|
|
4,888,023 |
|
|
4,888,023 |
|
|
|
4,309,234 |
|
|
5,303,463 |
|
|
5,156,553 |
|
|
|
|
|
|
|
|
|
EFUTURE HOLDING INC. AND
SUBSIDIARIES |
|
|
Exchange
rate |
|
6.4778 |
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
Three months ended |
|
|
Chinese Yuan (Renminbi) |
U.S.
Dollars |
|
Chinese Yuan (Renminbi) |
U.S.
Dollars |
|
|
December 31, |
December 31, |
December 31, |
|
December 31, |
December 31, |
December 31, |
|
|
|
2014 |
|
|
2015 |
|
|
2015 |
|
|
|
2014 |
|
|
2015 |
|
|
2015 |
|
|
|
(Audited) |
(Unaudited) |
(Unaudited) |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
|
7,387,156 |
|
|
3,328,270 |
|
|
513,796 |
|
|
|
18,726,491 |
|
|
18,539,391 |
|
|
2,861,989 |
|
Adjustments to
reconcile net income to net cash flows used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation of property and equipment |
|
|
1,804,164 |
|
|
1,812,863 |
|
|
279,858 |
|
|
|
421,035 |
|
|
465,172 |
|
|
71,810 |
|
Amortization of intangible assets |
|
|
3,765,833 |
|
|
8,422,630 |
|
|
1,300,230 |
|
|
|
954,637 |
|
|
2,877,842 |
|
|
444,262 |
|
Loss on
disposal of property and equipment |
|
|
26,165 |
|
|
13,180 |
|
|
2,035 |
|
|
|
2,230 |
|
|
5,056 |
|
|
781 |
|
Allowance for doubtful accounts |
|
|
1,962,403 |
|
|
6,107,799 |
|
|
942,882 |
|
|
|
727,892 |
|
|
3,071,991 |
|
|
474,234 |
|
Provision for loss in inventory and work in process |
|
|
8,302,435 |
|
|
(329,566 |
) |
|
(50,876 |
) |
|
|
4,980,051 |
|
|
2,063,723 |
|
|
318,584 |
|
Compensation expenses |
|
|
3,298,602 |
|
|
1,951,097 |
|
|
301,197 |
|
|
|
2,397,094 |
|
|
314,021 |
|
|
48,476 |
|
Deferred
income taxes |
|
|
509,041 |
|
|
(669,307 |
) |
|
(103,323 |
) |
|
|
1,336,962 |
|
|
(639,431 |
) |
|
(98,711 |
) |
Foreign
exchange loss |
|
|
(7,649 |
) |
|
(746,505 |
) |
|
(115,241 |
) |
|
|
(13,925 |
) |
|
(615,762 |
) |
|
(95,057 |
) |
Other
noncash expense |
|
|
|
- |
|
|
- |
|
|
|
(891,945 |
) |
|
(3,042,653 |
) |
|
(469,705 |
) |
Changes
in assets and liabilities: |
|
|
|
|
|
|
|
|
Trade
receivables |
|
|
(16,765,678 |
) |
|
(21,110,432 |
) |
|
(3,258,889 |
) |
|
|
(15,883,442 |
) |
|
(23,475,419 |
) |
|
(3,623,980 |
) |
Refundable value added tax |
|
|
(4,718,654 |
) |
|
4,586,793 |
|
|
708,079 |
|
|
|
(2,134,888 |
) |
|
999,680 |
|
|
154,324 |
|
Advances
to employees |
|
|
331,470 |
|
|
420,266 |
|
|
64,878 |
|
|
|
421,059 |
|
|
299,369 |
|
|
46,215 |
|
Advances
to suppliers |
|
|
- |
|
|
- |
|
|
- |
|
|
|
30,667 |
|
|
- |
|
|
- |
|
Other
receivables |
|
|
(29,794 |
) |
|
1,056,218 |
|
|
163,052 |
|
|
|
(140,799 |
) |
|
447,205 |
|
|
69,037 |
|
Prepaid
expenses |
|
|
(316,705 |
) |
|
278,325 |
|
|
42,966 |
|
|
|
97,526 |
|
|
303,144 |
|
|
46,797 |
|
Inventory and work in process |
|
|
(2,962,248 |
) |
|
(1,623,120 |
) |
|
(250,568 |
) |
|
|
21,428,131 |
|
|
25,665,002 |
|
|
3,961,994 |
|
Trade
payables |
|
|
510,352 |
|
|
4,008,930 |
|
|
618,872 |
|
|
|
4,598,371 |
|
|
4,683,038 |
|
|
722,936 |
|
Other
payables |
|
|
(403,860 |
) |
|
19,010,202 |
|
|
2,934,669 |
|
|
|
(863,024 |
) |
|
23,391,690 |
|
|
3,611,055 |
|
Accrued
expenses |
|
|
2,448,355 |
|
|
174,749 |
|
|
26,977 |
|
|
|
16,837,389 |
|
|
17,010,405 |
|
|
2,625,954 |
|
Taxes
payable |
|
|
683,881 |
|
|
5,720,055 |
|
|
883,024 |
|
|
|
10,857,594 |
|
|
12,822,610 |
|
|
1,979,470 |
|
Advances
from customers |
|
|
(2,409,613 |
) |
|
(7,726,011 |
) |
|
(1,192,692 |
) |
|
|
(43,464,582 |
) |
|
(34,490,702 |
) |
|
(5,324,447 |
) |
Net
cash provided by operating
activities |
|
|
3,415,656 |
|
|
24,686,436 |
|
|
3,810,926 |
|
|
|
20,424,524 |
|
|
50,695,372 |
|
|
7,826,018 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(1,789,314 |
) |
|
(2,131,596 |
) |
|
(329,062 |
) |
|
|
(244,654 |
) |
|
(31,699 |
) |
|
(4,893 |
) |
Payments
for intangible assets |
|
|
(10,458,286 |
) |
|
(4,650,204 |
) |
|
(717,869 |
) |
|
|
955,818 |
|
|
2,788,555 |
|
|
430,479 |
|
Cash
received from disposal of property and equipment |
|
|
14,751 |
|
|
54,388 |
|
|
8,396 |
|
|
|
11,451 |
|
|
54,594 |
|
|
8,428 |
|
Net cash
provided by(used in) investing activities |
|
|
(12,232,849 |
) |
|
(6,727,412 |
) |
|
(1,038,534 |
) |
|
|
722,615 |
|
|
2,811,450 |
|
|
434,014 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Proceeds from
short-term loans |
|
|
10,692,003 |
|
|
(3,384,006 |
) |
|
(522,401 |
) |
|
|
7,692,003 |
|
|
(2,692,003 |
) |
|
(415,574 |
) |
Proceeds from exercise
of options by employees |
|
|
55,805 |
|
|
7,023,416 |
|
|
1,084,229 |
|
|
|
- |
|
|
6,844,536 |
|
|
1,056,614 |
|
Issurance of ordinary
shares |
|
|
- |
|
|
19,750,212 |
|
|
3,048,907 |
|
|
|
- |
|
|
- |
|
|
- |
|
Net
cash provided
by financing
activities |
|
|
10,747,808 |
|
|
23,389,622 |
|
|
3,610,735 |
|
|
|
7,692,003 |
|
|
4,152,533 |
|
|
641,040 |
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and cash equivalents |
|
|
7,649 |
|
|
746,505 |
|
|
115,241 |
|
|
|
13,925 |
|
|
615,762 |
|
|
95,057 |
|
|
|
|
|
|
|
|
|
|
Net
increase in cash
and cash equivalents |
|
|
1,938,264 |
|
|
42,095,151 |
|
|
6,498,368 |
|
|
|
28,853,067 |
|
|
58,275,117 |
|
|
8,996,128 |
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period |
|
|
62,620,652 |
|
|
64,558,916 |
|
|
9,966,179 |
|
|
|
35,705,849 |
|
|
48,378,950 |
|
|
7,468,423 |
|
Cash and cash
equivalents at end of period |
|
|
64,558,916 |
|
|
106,654,067 |
|
|
16,464,551 |
|
|
|
64,558,916 |
|
|
106,654,067 |
|
|
16,464,551 |
|
|
|
|
|
|
|
|
|
|
Supplemental
cash flow information |
|
|
|
|
|
|
|
|
Interest paid |
|
|
164,171 |
|
|
810,609 |
|
|
125,136 |
|
|
|
139,146 |
|
|
120,601 |
|
|
18,618 |
|
Income tax paid |
|
|
3,736,424 |
|
|
3,042,230 |
|
|
469,639 |
|
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTOR CONTACT:
Troe Wen, Company Secretary
eFuture Holding Inc.
+86 10 50916128
ir@e-future.com.cn
eFuture Holding Inc. (NASDAQ:EFUT)
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From Jun 2024 to Jul 2024
eFuture Holding Inc. (NASDAQ:EFUT)
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From Jul 2023 to Jul 2024