58. In the first quarter of 2020, the revenue of the same city was 2.560 billion yuan, down 15.5% year on year

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Sina science and technology news in the evening of June 26, Beijing time news, 58 Tongcheng (NYSE: Wuba) today announced its financial report for the first quarter of 2020 as of March 31, with a total revenue of 2.560 billion yuan (361.4 million US dollars), down 15.5% from 3.028 billion yuan in the same period of 2019. The net profit attributable to the shareholders of 58 common shares in the same city was RMB 1.638.6 billion (about US $231.3 million), an increase of 134.7% compared with RMB 698.2 million in the same period of 2019. In violation of the general accounting standards of the United States, the net profit attributable to the common shareholders in 58 cities was RMB 2243.6 million (about USD 316.7 million), an increase of 414.7% compared with RMB 435.9 million in the same period of 2019.
First quarter results:
revenue
Total revenue was 2.5603 billion yuan (US $361.4 million), down 15.5% from 3.028.3 billion yuan in the same period of 2019, mainly affected by the new coronavirus epidemic.
Member business revenue was 815.6 million yuan (US $151.1 million), down 16.9% from 982 million yuan in the same period in 2019.
Online marketing revenue was RMB 1.595.4 billion (US $225.2 million), down 17.8% from RMB 1.940.9 billion in the same period of 2019.
Revenue cost
The cost of revenue was rmb309.3 million (US $43.7 million), up 4.2% from rmb296.9 million in the same period in 2019.
Gross profit and gross profit margin
Gross profit was RMB 2251 million (US $317.7 million), down 17.6% from RMB 2731.4 million in the same period in 2019. The gross profit margin is 87.9% and 90.2% in the same period of 2019.
operation costs
Operating expenses were rmb2306.8 million (US $325.6 million), down 5.8% from rmb2451.0 million in the same period in 2019.
Sales and marketing spending was rmb1577.5 million (US $227.7 million), down 12.0% from rmb1793.0 million in the same period in 2019.
R & D spending was rmb497 million (US $70.1 million), compared with rmb495 million in the same period in 2019.
General and administrative expenses amounted to RMB 232.4 million (US $32.8 million), an increase of 43.3% compared with RMB 162.2 million in the same period of 2019.
Operating profit / loss
The operating loss was rmb55.8 million (US $7.9 million), while the operating profit for the same period in 2019 was rmb281.3 million. Operating profit margin was – 2.2%, compared with 9.3% in the same period in 2019.
Not in accordance with U.S. GAAP, operating profit was 1.440 yuan (US $20.3 million), down 69.0% from 465.1 million yuan in the same period in 2019. Operating profit margin was 5.6%, compared with 15.4% in the same period in 2019.
Other income / expenses
Other net income was rmb1680.7 million (US $237.2 million), compared with rmb554.3 million in the same period in 2019.
Net profit
The net profit attributable to the shareholders of 58 common shares in the same city was RMB 1.638.6 billion (about US $231.3 million), an increase of 134.7% compared with RMB 698.2 million in the same period of 2019. The net profit margin was 64.0%, compared with 23.1% in the same period in 2019.
In violation of the general accounting standards of the United States, the net profit attributable to the common shareholders in 58 cities was RMB 2243.6 million (about USD 316.7 million), an increase of 414.7% compared with RMB 435.9 million in the same period of 2019. The net profit margin was 87.6%, compared with 14.4% in the same period in 2019.
Basic and diluted earnings per share of ADS
The basic and diluted earnings per ads attributable to common shareholders are 10.95 yuan (about $1.54) and 10.82 yuan (about $1.53), respectively, an increase of 132.6% and 132.6% compared with 4.71 and 4.65 yuan in the same period of 2019.
Not in accordance with the general accounting standards of the United States, the basic and diluted earnings per ads attributable to common shareholders are 14.99 yuan (about $2.12) and 14.81 yuan (about $2.09), respectively, an increase of 410.0% and 410.1% compared with 2.94 and 2.90 yuan in the same period of 2019.
cash flow
In the first quarter of 2020, net cash from operating activities was rmb379.4 million (US $53.6 million), compared with rmb564.9 million in the same period of 2019.
As of March 31, 2020, the cash and cash equivalents, time deposits, restricted cash and short-term investments held by 58 Tongcheng were RMB 12547.3 million (about USD 1770.9 million).
Privatization:
On June 15, 58 cities announced that they had signed a merger agreement with quantum bloom Group Ltd. According to the terms of the merger agreement, the buyer’s investment consortium will purchase all the issued common shares in 58 cities in cash of $28 per common share (equivalent to $56 per ads), with a total transaction value of about $8.7 billion.
Members of the buyer’s investment consortium include: Huaping investment, general Atlantic, gulling investment, and Yao Jinbo, chairman and CEO of 58 Tongcheng. The privatization of the same city is expected to be completed in the second half of this year. At that time, 58 Tongcheng will become a private holding company, and its ADSS will be delisted from the New York Stock Exchange. (Li Ming)