Takung Art Co. Q1 2016 Revenue up 197% to $3.8 Million; Net Income Rises 122% to $1.1 Million
(firmenpresse) - HONG KONG, CHINA -- (Marketwired) -- 05/17/16 -- (OTCQB: TKAT), an online platform for acquiring shared ownership in Asian fine art, jewelry and precious gems, today reported that, for the first quarter of 2016 ended March 31, revenue was $3,788,770, a 197 percent improvement on revenue of $1,274,879 in the same quarter of 2015. Net income for Q1 2016 was $1,096,052, or $.10 per share, 122 percent higher than the net income of $494,095, or $.05 per share, reported for the first quarter of last year.
Weighted average number of common shares outstanding was 11,119,276 in the first quarter of 2016 and 9,332,267 for the same quarter in 2015.
The company''s strong improvement in revenue compared to Q1 2015 was primarily due to an increase of $1,691,431 in listing fee revenue, mainly produced by an increase in the number of artworks listed on the company''s online trading platform, the value of the artworks, and the corresponding higher listing fees charged to artwork owners. Takung''s first quarter 2016 revenue also improved due to a quarter-over-quarter increase of $416,863 in trading commission revenue, in turn the result of a significant rise in the number of traders utilizing the company''s platform and a corresponding 311 percent rise in the value of transactions processed.
Additionally, Takung''s overall Q1 2016 revenue was boosted by $321,583 in authorized agent subscription revenue, compared to none such revenue in Q1 2015.
The company''s improved profitability for Q1 2016 was offset by quarter-over-quarter increases of $1,094,880 in general and administrative expenses and $628,753 in selling expenses. The rise in Q1 2016 G&A expenses -- $1,561,373 versus $466,493 in Q1 2015 -- resulted mainly from increases in salaries, consultancy fees, legal and professional fees, and office and rental expenses. The company has amortized $384,730 in Q1 2016 for the issuance of 487,000 common shares as share-based compensation, and will amortize the remaining $256,487 in Q2 2016.
Takung said the significant increase in first quarter selling expenses to $638,209 from $9,456 in the like year-ago period can be attributed to the expansion of the company''s sales force and marketing activities, participation in industry trade shows, and international travel to promote its products to major global markets. To steadily increase its trader base, Takung now utilizes the services of outside organizations to stage ongoing events in major cites throughout China. The purpose of these events is to educate interested traders about the Takung shared-art investment model and how they can set up accounts and utilize the platform to buy and sell ownership units.
As of March 31, 2016, the company''s cash and cash equivalents totaled $11,668,639. Restricted cash, representing the cash deposited by traders into a specific Takung bank account for the purpose of buying and selling ownership units of artwork, was $17,791,375.
"We are very happy with our Q1 2016 results," said Takung chairman and CEO Mr. Di Xiao. "Once again, we achieved major increases in revenue and profitability, while greatly expanding the total dollar volume transacted on our platform.
"We are confident these milestones further validate the demand for our shared fine art ownership service, and we expect our business will continue to bring large numbers of middle-class Chinese investors into the fine art marketplace in the months and years to come."
As previously reported, Takung''s platform generated over $1.18 billion in trading transactions during the first four months of 2016 compared to $272.43 million recorded in the same period last year. In calendar 2015, the platform generated total trading transactions of about $2.33 billion.
Based in Hong Kong, Takung Art Co., Ltd. is an online trading platform for acquiring shared ownership in Asian fine art, jewelry and precious gems. This proprietary platform allows collectors and investors -- including those with modest financial resources -- to buy and sell units of these assets and participate in the booming Asian art market. The company''s shared-ownership business model significantly expands the number of interactions between sellers and buyers of fine art far beyond those generated by art galleries and auction houses alone.
Takung operates its online trading platform via three wholly-owned subsidiaries, Hong Kong Takung Assets and Equity of Artworks Exchange Co. Ltd., Takung (Shanghai) Co., Ltd., and Takung Cultural Development (Tianjin) Co., Ltd.
This press release may contain projections or other forward-looking statements regarding future events or our future financial performance. All statements other than present and historical facts and conditions contained in this release, including any statements regarding our future results of operations and financial positions, business strategy, plans and our objectives for future operations, are forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). These statements are only predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in the projections or forward-looking statements.
Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
Leslie Chow
+852 31580977
Jimmy Caplan
512-329-9505
Rick Eisenberg
212-496-6828
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Datum: 17.05.2016 - 05:00 Uhr
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