eCargo Holdings Limited (ASX: ECG) (ECG, eCargo or the Group) today announced its interim financial results for the six months ended 30 June 2021.
Results Overview
-- Strong improvement in Gross Margin to 46%, up 16% p.p following shift in product mix to higher margin products for FMCG and higher margins from online-enabling services
-- Revenue of HK$87.3m (A$14.9m) decreased 5% from 1H20: HK$91.0m (A$15.6m)
-- Stable outlook for EBITDA with a moderate loss of HK$0.4m (A$75k), up 54% compared to same period last year
-- Net Loss After Tax of HK$6.0m (A$1.0m) improvement of 78% compared to HK$26.9m (A$5.0m) in 1H20
Commenting on the results, eCargo Chief Executive Officer Lawrence Lun stated: “Throughout this period, we continued to reposition the business and revise our product offering to facilitate our shift from trading and services provider to a technology and datadriven business, and address the growing demand from Chinese consumers for high quality international brands. Additionally, we have made significant improvements in our operational efficiencies and are starting to see this demonstrated in our underlying numbers. The prior period saw our first EBITDA profit and although this first half recorded an EBITDA loss, we remain well positioned to benefit from our repositioning and opportunities established for the second half.
“The Group’s revised strategy has seen us launch a number of new initiatives including our online B2B Marketplace JuJiaXuan (JJX), and our B2C online wine sales platform PJF Wines – both which are built upon our proprietary eCoreOS platform which is integrated with functions across the supply chain. Over the coming months we expect to see the realisation of revenue from these initiatives that will complement our existing business segments and further drive revenue growth.”
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