OpenDNA partners with Perth Airport to offer online and mobile shopping solution to Chinese travellers

OpenDNA Limited (ASX: OPN) is a fully integrated digital marketing and customer acquisition services company, focusing on driving online sales of products and services for its clients across Australia and China. Through its hyper personalisation and profiling Artificial Intelligence (AI) System, OpenDNA is able to offer personalised, real-time targeted marketing.

OpenDNA’s Roolife online e-Commerce marketplace enables businesses to sell directly to Chinese consumers, based on their profiles and purchasing behaviours, and process payments via the Wechat and Alipay mobile payments platforms. Besides, the Group’s other product offerings include Daishu e-commerce recommendation engine, Mimoto conversational analytics, and Synapse business intelligence dashboard.

New Agreement with Perth Airport: On 6th August 2019, OpenDNA announced to have established a partnership with Perth Airport Pty Ltd to enhance Perth Airport’s service and retail offering to Chinese travellers in Australia and China.

Pursuant to the agreement, OpenDNA would be assisting Perth Airport in expanding its sales to Chinese consumers through the RooLife platform, providing its suite of services including online licencing for China, system hosting, marketing design, translation, sales promotion and management services to support and drive e-Commerce sales to Chinese shoppers.

Perth Airport Pty Ltd is a wholly owned subsidiary of Perth Airport Development Group Pty Ltd and acts as a Western Hub to Australia, providing the primary link to the rest of Australia and the world. It has ~ 14 million passengers travelling through its terminals every year and is currently serviced by over 30 international and domestic airlines that operate to more than 50 destinations globally. Also, around 14 direct flights from China and Hong Kong currently operate per week, providing a capacity of nearly 350k seats per year.

The e-commerce marketing and AI company would develop a customised version of its RooLife e-commerce platform, incorporating its AI hyper-personalisation and recommendation engine with RooLife’s WeChat Pay and Alipay payment processing facilities, that would be promoted under the Perth Airport brand.

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Subsequently, the Perth Airport branded platform will be marketed to and offer fast and convenient access to Chinese shoppers to purchase high-quality, authentic Australian products directly from Perth Airport through their mobile phones while in the airport, travelling around Australia or from their home country.

OpenDNA Managing Director, Mr Bryan Carr, pleased with the latest development, stated that the newly formed partnership with Perth Airport would drive customer engagement and enhance the airport offering to Australia’s largest inbound tourism sector of 1.43 million Chinese tourists, that are presently spending over $ 10 billion per annum (as per the Australia Bureau of Statistics).

Moreover, according to Tourism Research Australia, the number of tourists from China visiting Australia is projected to grow at 11.9% per annum over the next decade and reach an estimated 3.9 million visitors spending $ 26 billion p.a. by 2026–27.

The figures mentioned above present a lucrative economic landscape and provide significant future growth prospects for Perth Airport and its RooLife online shopping platform. Besides, it is also an opportunity for Perth Airport’s retail partners who may consider diversifying their businesses by promoting and selling local Australian goods in the Chinese market.

June 2019 Quarterly Report: Recently, OpenDNA disclosed its quarterly results for the three months to 30 June 2019 (Q4 2019), reporting a strong performance achieved with third consecutive Quarter of 300%+ growth in cash receipts which amounted to $ 763k.

In April 2019, the Group completed the acquisition of digital marketing company, Blackglass, for a value consideration of $ 300k and also completed an oversubscribed capital raising of $ 2 million. The takeover expanded the group’s operating capabilities and geographic footprint with a Sydney office added to Perth, Singapore and China offices.

Besides, OpenDNA also improved its China payment processing capability to cater to Chinese tourists, business travellers, students and Chinese living in Australia with the integration of Novatti Group Limited’s (ASX: NOV) China Payments functionality into the Company’s RooLife portals. With this collaboration, OpenDNA is able to smoothly process the purchases (A$ dominated) from Alipay and WeChat and made by Chinese in Australia, thereby optimising the company’s position with foreign exchange transactions.

OpenDNA has been actively building a diverse, high-quality customer base with multiple revenue streams that are expected to drive the company’s growth and market penetration in both Australia and China.

 

During the concerned period, the company launched its RooLife services in China with Vitamins, Minerals & Supplements, skincare and health products based on the high demand for these product ranges. Further in June 2019, OpenDNA was also assigned to exclusively distribute Petrus Pharmaceutical’s well-known products in China.

Petrus Pharmaceuticals is an Australia-based company specialising in the R&D, manufacturing, distribution and marketing of pharmaceutical products which are sold through over 5,000 pharmacies in Australia and expected to have a strong appeal in China. The distribution agreement is initially for a year with the first product sales expected in the next Quarter.

Another key highlight from the quarter was the development, delivery and integration of OpenDNA’s new e-commerce Artificial Intelligence Recommendation Engine, Daishu, with its RooLife e-Commerce platform. Daishu is a collaborative filtering-based Recommendation Engine with strong e-Commerce applications designed to drive an uplift in sales revenue. On 29 May 2019, OpenDNA announced to have appointed QEdge Technology for the sale and distribution of Daishu in China.

Business Outlook: OpenDNA is aspiring to develop and grow its customer base across multiple industry verticals, expanding the application of its digital marketing, AI and e-Commerce capabilities both in Australia and China, as evident from the recent developments.

Stock Performance: OpenDNA has a market capitalisation of around AUD 10.33 million with approximately 258.26 million outstanding shares. On 6 August 2019, the OPN stock is  trading at a market price of AUD 0.040 (as at 1:27 PM AEST). Also, the OPN has generated positive returns of 20% on a YTD basis and 10.53% in the last six months.


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