CoAssets Limited, a leading crowdfunding platform and Fintech lender specialising in facilitating funding for businesses, reported its financial and operating results for the half year ended 31 December 2017 together with an update on the group's growth and capital strategy to the Australian Securities Exchange (ASX) on 22 February 2018.
HIGHLIGHTS OF HALF-YEAR RESULTS (July 2017 to December 2017)
- Total reported revenue increased by 471% from S$446,040 in 2016 to S$2,547,554 in 2017.
- Group's profits in year 2017 was S$2,046,013, from a loss of S$3,899,325 in 2016. This increase in profits was due to business activities as well as investment gains.
- Operating expenses decreased from S$3,570,287 in 2016 to S$2,577,013 in 2017. This represents about S$1million or 28% in cost savings.
- Registered investor base reached 433,805 as at 31 December 2017. This represents an 88.17% increase from 30 June 2017.
Pertinent statistics of the half-year report are depicted here: http://bit.ly/2Fwzg4v
Getty Goh, CEO and Co-Founder of CoAssets, said: "We had a strong finish towards the end of 2017 and I am pleased to report another great year with our total revenue growing by more than 471%. The double-digit growth in our group's profits reflects our investment gains which is supported by organic growth, as well as strategic acquisitions in our growing portfolio.
"This strong performance is also attributed to our S.M.A.R.T initiative implemented in end-2016, which saw us transforming our thinking and operations in the key areas of Strategy, Markets, Acquisitions, Revenue and Techchnology. This transformation helped fuel the company's growth and earnings not only in Singapore but also in our regional offices, especially in China and Hong Kong. This is a clear testament that our strategy has been effective and transformed our business to grow new streams of revenue. I am also pleased to announce for the first time that we have successfully delivered our full-year 2017 targets, which came in far ahead than what we have planned originally.
"As we look forward to celebrating our 5th year anniversary in September 2018, it is humbling to see how the company has grown from a 2-man Singapore start-up and an i.JAM recipient to what it is today. Moving ahead, we expect an even busier second half for the Group as we continue to grow our businesses around the region. The Board's vision for CoAssets remains to become the regional Fintech leader that delivers value through innovation, strategic partnerships and disruptive digitisation."
KEY REGIONAL DEVELOPMENTS
The group has forged strong partnerships around the region and rolled-out innovative fintech solutions, with strategic acquisitions including Da Xian Bing (a Chinese product crowdfunding platform), Fintech Pte Ltd (an online cash management platform in Hong Kong) as well as Brighten Finance Ltd (a licensed money lender in Hong Kong).Singapore - CoAssets Pte Ltd (CAPL)
- After receiving the Capital Market Services (CMS) licence from the Monetary Authority of Singapore (MAS) in June 2017, the company crowdfunded more than S$5.11million worth of deals from 1 July 2017 to 31 December 2017.
- The company also built upon the CoAssets Risk Assessment Model (CRAM) to strengthen due diligence and more comprehensively assess potential crowdfunding projects. The robust use of CRAM resulted in less than 17% of total projects considered passing.
- Looking ahead, the company will review lending conditions to serve a larger pool of businesses in Singapore while keeping non-performing rates in check.
- The company works with family offices and other financial institutions to offer corporate loans. In terms of funding, CAI relies on institutional and/or qualified investors with funds raised solely used for CAI's business activities and expansion.
- The company disbursed more than S$6.65million worth of loans over the last 6 months, with its loan book growing to more than S$16.21million as at 31 December 2017.
- This represents the group's fastest growing market, achieving remarkable growth in registered user base of more than 117% (from 173,000 to more than 375,000 members) from 1 July 2017 to 31 December 2017.
- The CoAssets platform in China funded more than RMB28.15million (S$5.94million) worth of crowdfunding projects over the last 6-months in 2017.
- Looking ahead, the Group will focus on securing regulatory clearance from the local Chinese authorities and ensure compliance with the new crowdfunding/Peer-to-Peer (P2P) lending regime that is expected to be rolled-out.
- In April 2017, the group acquired Fintech Pte Ltd, an online corporate cash management platform called "PiggieBank" in Hong Kong. Since then PiggieBank has successfully managed funds flow of more than S$21. 39million as at 9 February 2018.
- As part of the acquisition and working with our partner, Brighten Management Limited in Hong Kong, the group took over PiggieBank's operational management and devoted considerable efforts to revamp the platform; incorporating new functions such as instant funds transfer among users, as well as the ability to perform currency exchange.
- Looking ahead, the group will grow the platform's adoption in Hong Kong by securing the relevant licences with regulators, promoting PiggieBank through a broad-based outreach campaign and leveraging block chain technology to make the platform pervasive.
- In September 2017, the group acquired shares in Brighten Finance Limited (BFL), a licensed money-lender in Hong Kong.
- Looking ahead, the Group will take over the operational management of BFL and continue to grow its loan book. As at 31 December 2017, BFL's loan book was worth HK$36.91 million (S$6.27million).
- On the technological front, the Group will further develop its borrower database, as well as incorporate data analytics and strengthen risk management capabilities within BFL's operational systems.
Over the last six months, the CoAssets Group had undergone a period of transformation and witnessed a turnaround in its financial performance. With a growing registered investor base of more than 433,000 from around the region, the group's vision of becoming the regional Fintech leader and choice online financial platform in Asia is steadily taking shape.
For more information and full report of CoAssets' half-year report to the ASX, visit: https://www.asx.com.au/asxpdf/20180223/pdf/43rvcbsqk5hfws.pdf