A Record Performing Year in 2022 for eCargo

Rhea-AI Summary

eCargo Holdings Limited (ASX: ECG) reported its FY22 financial results, showcasing record growth across key metrics. Revenue from continuing operations rose by 43.2% to HK$125.4 million, largely due to increased demand for imported products in China. The statutory NPAT reached HK$28.1 million, a significant improvement from HK$0.9 million in FY21. Excluding the sale of Amblique, NPAT surged 422% to HK$4.7 million. This success is attributed to exclusive brand partnerships and the expansion of proprietary technology platforms like JuJiaXuan, positioning the company for continued growth in 2023.

Positive

• Revenue from continuing operations rose 43.2% to HK$125.4 million.
• Statutory NPAT increased to HK$28.1 million from HK$0.9 million in FY21.
• NPAT excluding Amblique sale surged 422% to HK$4.7 million.
• Strong balance sheet to self-fund operations and growth.
• Successful exclusive brand partnerships driving revenue growth.

Negative

• None.

2022 Full Year Financial Results

SYDNEY--(BUSINESS WIRE)-- eCargo Holdings Limited (ASX: ECG) (ECG, eCargo or the Group) is pleased to announce today its financial results for the 12 months ended 31 December 2022 (FY22).

FY22 Results Highlights¹:

• Record growth achieved across all key business metrics, driven by new exclusive brand partnerships and growth of eCargo’s proprietary technology platforms;

• Revenue from continuing operations² of HK$125.4 million, up 43.2%, attributable to the significant uplift in demand for high quality imported products in China and sales through the Group’s proprietary B2B technology platform;

• Statutory NPAT of HK$28.1 million (FY21: HK$0.9 million); excluding the sale of Amblique, NPAT² was up 422% to HK$4.7 million, representing significant growth in scale and profitability;

• The sale of Amblique recapitalised the Group, bringing focus to growing brands in Asia and investments in proprietary technology platforms;

• Strong balance sheet in place to self-fund operations and further grow profitability;

• Well placed to continue to connect in-demand brands to Chinese consumers in 2023, developing a 360 digital ecosystem and delivering improved profitability.

The results were primarily driven by a growing portfolio of strategically-selected brands that are in demand by Chinese consumers, and sourcing services for brands in new categories through the Group’s B2B platform, JuJiaXuan.

Commenting on the FY22 results, eCargo Chief Executive Officer Lawrence Lun said: “We are incredibly proud of the results we achieved this year, which were done with the backdrop of severe lockdowns in China for much of the year. The results demonstrate not only the resilience of our business model, but also shows the decisions we are making with respect to brand partnerships and investment into our proprietary technology platforms are yielding strong results.”

“Over the year, we signed on strategically-selected brands with exclusive distribution rights. As demand for high quality imported products in Health & Wellness, Personal Care, and Maternal & Baby categories continue to grow in China, we are helping our brands to grow sales in the China’s vast market, which in turn is growing eCargo’s revenue.”

“Additionally, our proprietary technology platforms continue to grow. Platforms like PinJiuFang Wines (PJF Wines) and JuJiaXuan (JJX) are helping our brand partners penetrate the eCommerce and retail market in China through establishing a stronger digital presence and expanding their distribution network. Off the back of this success, we will continue to build our technology platforms in 2023 to better provide our brands with a one-stop commerce solution for the Asian market, empowered by technology and data.”

Full report on ASX: ECG

About eCargo Holdings Limited

eCargo Holdings Limited (“eCargo”) helps brands sell more in Asia as a full-service commerce partner providing end-to-end supply chain solutions, distribution, and marketing services. eCargo drives omnichannel growth for brands through its fully-integrated services, supply chain management technology and data-driven approach. It has served over 80 brands in the Health & Wellness, Personal Care, Food & Beverage, and Fashion categories.

eCargo is listed on the Australian Securities Exchange and is headquartered in Hong Kong, with offices in Shanghai, Shenzhen, and Sydney.

¹ All percentage changes are based on HK$ change from prior corresponding period (pcp).
² Excludes Amblique business which was sold during the period.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230227005494/en/

For further information, please contact:



Corporate Marketing

Jesse Lun

eCargo Holdings Limited

jesselun@ecargo.com

+852 2233 2721



Investor Relations

Eric Kuret

Automic Group

eric.kuret@automicgroup.com.au

+61 417 311 335

Source: eCargo Holdings Limited

FAQ

What are the key highlights of eCargo's FY22 results?

eCargo's FY22 results highlighted a 43.2% revenue increase to HK$125.4 million and a statutory NPAT of HK$28.1 million.

How did eCargo's NPAT change in FY22 compared to FY21?

eCargo's NPAT increased significantly from HK$0.9 million in FY21 to HK$28.1 million in FY22.

What contributed to eCargo's revenue growth in FY22?

The revenue growth was driven by high demand for imported products in China and new exclusive brand partnerships.

Is eCargo well-positioned for future growth?

Yes, eCargo has a strong balance sheet and a growing portfolio of brand partnerships, positioning it well for continued growth.

What technology platforms is eCargo expanding to enhance its business?

eCargo is expanding its proprietary technology platforms, including JuJiaXuan, to improve its digital presence in the Asian market.