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On Monday, Fintech Chain Limited (ASX:FTC) posted more than three-fold increase in revenue for the six months ended 30 September 2018 which translates an increase in revenue from RMB7.0 million for period ended 30 September 2017 to RMB 28.3 million for the six months ended 30 September 2018, representing 304.0% growth. During the financial period, FTC derived RMB14.8 million and RMB 8.3 million in income from provision of system development services and information technology services, respectively.
Fintech delivered an increase of RMB20.0 million in gross profit of the company driven by the implementation of blockchain technology. As a result, profit after tax of the company for the six month ended 30 September 2018 surged to RMB9.5 million, up RMB 21.0 million or 182.4% on previous corresponding period. Profit per share of the company was RMB1.49 cents compared to the loss of RMB0.02 cents per share in the previous period.Â
However, the company has experienced relatively immature market for its blockchain technical services in the sector that led to the fluctuation in token value. Subsequently, the demand for companyâs blockchain technical services has been slow during the reporting period but it expects to witness significant market recognition in future.
Net tangible assets backing has improved from -3.0 cents per share as at 30 September 2017 to -1.9 cents per share as at 30 September 2018. The Group has net current assets of RMB6.2 million as at 30 September 2018 compared to net current liabilities RMB9.8 million at 31 March 2018. As per the companyâs information no dividends were paid or declared by Fintech during the six months ended 30 September 2018.
On the business outlook front, the company aims to expand its T-linx related products and services and blockchain technology, both of which are expected to grow in future and generate substantial increase in revenue, gross profit and margin.
In the medium to long term period, the company aims to become one of the largest POS software providers in China. The management believes that Fintechâs Tlinx products and blockchain technology will have greater recognition and acceptance in the market going forward.
In todayâs trading session, Fintech shares traded flat. Its last traded price is $0.051. Moreover, in the past six months the stock has fallen by 66% and in the past 5-day trade, the stock price has tumbled 7.27%.
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