RooLife Reports 78% Revenue Growth For December 2019 Quarter And Expanding Business Partnerships

RooLife Reports 78% Revenue Growth For December 2019 Quarter And Expanding Business Partnerships

RooLife Group Ltd (ASX: RLG), offering fully-integrated e-Commerce, digital marketing and customer acquisition services, recently released its Quarterly Activities Report for the three months to 31 December 2019, posting a 78% increase in the revenue from $1.03 million as compared to $ 580k in the September 2019 quarter.

The Company, powered by the RooLife hyper-personalization and profiling Artificial Intelligence (AI) System, helps businesses to sell more effectively online in the Australian and Chinese markets through personalized real-time and targeted marketing. In China, products are sold directly to Chinese consumers and payment are processed via the WeChat and Alipay mobile payments platforms.

Good Read: RooLife Group Tapping Rising E-commerce Opportunities in Australia And China

RooLife has stated that it does not expect any material adverse effects on sales revenue as a result of the Coronavirus outbreak, the Company's China-focused revenue comes from online ordering and delivering of products to consumers. These Chinese consumers are seeking safe, high-quality products from countries such as Australia, New Zealand and the USA.

Besides, the Company derives revenue from a diversified range of products and does not have a heavy reliance on any one product sold into the Chinese markets. The very nature of being an e-commerce focused business means the Company is positioned to take up extra demand for products from any downturn in sales from bricks and mortar outlets.

The Perth Airport RooLife shopping platform has only recently launched and while sales are aligned to Chinese tourism numbers, the revenue contribution to the group’s reported numbers is yet to commence and the Company is well positioned for future growth in this sector.

Key Business Activities

  • The company acquired the China market entry and digital marketing company, Quality Brands International Direct (QBID) in December 2019, expanding its China-focused digital marketing capability, e-commerce platforms expertise and sales outlets for International products in the Asian country.

The acquisition was completed with the payment of $50,000 in cash and the issue of 12,938,605 shares which are escrowed for 12 months, with $125,000 agreed to be applied to working capital of the business. QBID has been successfully driving e-Commerce sales in China for four (4) years across a range of well-established e-Commerce platforms and e-Retailers in China including traditional B2B distribution for registered imported products in China.

Source: Company Quarterly report

  • The Perth Airport RooLife e-Commerce platform was also launched ahead of the Christmas and Chinese New Year travel periods to sell Perth Airport’s retail products online to Chinese travelers both in Australia as well as China. RooLife Group is providing all assistance including online licensing for China, system hosting, marketing design, translation, sales promotion and management services to services to Perth Airport for generating and driving sales to Chinese shoppers.
  • RooLife became the official partner and supplier for WMall, the new China e-Commerce platform connecting western brands to China’s powerful Daigou shopping network, for providing brand management, product sourcing and procurement assistance.

WMall is backed by several foundation strategic partners such as the powerful JD Logistics group Jing Xi Da in China, Chinese social e-commerce platform Feng Xiang to drive engagement between brands and the Daigou (shoppers outside China who purchase products for customers in China) social networks in China.

RooLife's services to VMall include product selection, recommendation, pricing and market entry services, making products available in China by supplying to WMall to sell to its customers while also retain a margin on all sales.

Record Revenue and Cash Position

The December 2019 quarter marked the 4th consecutive Quarter of revenue growth as the revenue shot up to $1.03 million, up 78% from $580k in the September 2019 quarter. The revenue for Quarter 1 and Quarter 2 of FY2020 stands at $1.61 million compared with the total full FY2019 revenue of $705k, up 128% with 6 months of the financial year remaining.

Around $772k were collected in cash receipts and the cash at hand stood at ~$2.72 million as of 31 December 2019.

In addition, RooLife undertook a strategic placement to the Thompson Family, founders of the Lobster Shack restaurant and Indian Ocean Rock Lobster, raising $300,000. Then in December, the Company accepted subscriptions to raise $1,931,498 before costs through the issue of 55,185,650 new fully paid ordinary shares at $0.035 each with a free attaching Listed Option on a 1 for 2 basis. The issue of the Listed Options is subject to shareholder approval.

Stock Performance: RooLife has a market capitalization of around 10.22 million with ~ 340.62 million shares outstanding. On 30 January 2020, the RLG stock settled the day's trade at $ 0.030 with ~ 46k shares traded. 


Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

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