Transcription of Finance News Network Interview with 99wuxian Limited (ASX:NNW) Chairman, Ross BensonDonna Sawyer: Hello I’m Donna Sawyer from the Finance News Network and joining me from Chinese mobile marketplace operator, 99wuxian
(ASX:NNW) is Chairman, Ross Benson. Ross welcome back to FNN.
Ross Benson: Good morning Donna.
Donna Sawyer: Congratulations on the float, tell us about it, what did you list at?
Ross Benson: We’re obviously delighted to be listed now on the Australian stock market. The stock debuted at 55 cents. I think on the first day it traded between 50 and 60 cents. But obviously we’re now on the market; the market will take care of the price. Our, you know, from the management and the Board’s perspective, we just want to achieve the long term objectives of the business.
Donna Sawyer: Why did you decide to list in Australia?
Ross Benson: Three main reasons. One is there is very strong local investor demand for opportunities into China, particularly involving this consumer growth space. The second one is that the business was wanting to establish, a financial platform that facilitated the current and the future growth of the business. We’re in a very similar time zone to China and Chinese like the Australian culture.
Donna Sawyer: It seems Australian investors have a keen interest in M-commerce. Why is that?
Ross Benson: Well I think M-commerce; you could probably view it as the next resources boom in China. You know, you’ve got an industry sector that’s grown by close to 500 per cent in the year ended December 2012. We’re on target to grow another 500 per cent in the year ended December 2013. So in China with 1.1 billion mobile phones, the highest number of mobile internet users in the world and some very strong drivers obviously coming through the E-commerce sector, it’s a very exciting place to be investing.
Donna Sawyer: So do you have any plans to list in China as well?
Ross Benson: We don’t have plans to list in China at this stage.
Donna Sawyer: Now that 99wuxian is listed in Australia, what are you working towards next?
Ross Benson: Well I think the key objectives of the Board and management now are to drive continued registered user growth. Ultimately that drives increased transaction volume. And then from the shareholders’ perspective that obviously, we hope, drives future profits into the business. So from our perspective, the main objective is to achieve that continued very strong organic growth and see that continue, over the next coming years.
Donna Sawyer: The mobile commerce market continues to grow in China. What are you telling investors about your long term growth strategy?
Ross Benson: Well I think in China 99wuxian is quite unique, because we would say that today we have a very strong hold on this business model of B to B to C. So our long term strategy is really to maintain that market lead. Today we are the dominant B to B to C business model in M-commerce and in our case, the B in the middle is the banks. So we really do dominate that position. So I think long term if we can maintain that position, the change in consumer behaviour will drive very substantial growth in transaction value. So as long as we’re sitting there with the banks being our business partners, we’re really well poised for very strong growth.
Donna Sawyer: Finally Ross. Where do you expect 99wuxian to be in 12 months’ time from now?
Ross Benson: We would hope the business continues the growth that we’re experiencing organically, looking forward, which is both growth in registered users and transaction revenue. I think also the Company has an opportunity on the Australian market as the lists go, facing China to establish a new benchmark for best practise, both in transparency and corporate governance. And if we can deliver on those outcomes, then obviously the shareholders will be receiving a very good result.
Donna Sawyer: Ross Benson thanks for the update on 99wuxian.
Ross Benson: Thank you.
Ends
