Takung Art Co. Q2 2016 Revenue Up 400% to $4.68 Million; Net Income of $1.12 Million vs. $77,176 in Q2 2015
(firmenpresse) - HONG KONG, CHINA -- (Marketwired) -- 08/19/16 -- (OTCQB: TKAT), an online platform for acquiring shared ownership in Asian fine art, jewelry and precious gems, today reported that, for the second quarter of 2016 ended June 30, revenue was $4,683,273, a 400 percent improvement on revenue of $936,101 in the same quarter of 2015. Net income for Q2 2016 was $1,116,843, or $.11 per share, 1347 percent higher than the net income of $77,176, or $.01 per share, reported for the second quarter of last year.
For the first six months of 2016 ended June 30, revenue was $8,472,043, a 283 percent improvement on revenue of $2,210,980 in the same period of 2015. Net income for the first half of 2016 was $2,212,895, or $.21 per share, 287 percent higher than the net income of $571,271, or $.06 per share, reported for the first half of 2015.
Total platform transaction value for the first six months of 2016 reached US$2.09 billion, a 308 percent increase on the total transactions of $510.95 million recorded in the first half of 2015.
Weighted average number of common shares outstanding in the second quarter and first half of 2016 was 10,632,276 compared to 9,332,267 for the corresponding periods in 2015.
The company''s strong improvement in revenue compared to the second quarter of 2015 was primarily due to an increase of $2,396,331 in listing fee revenue, produced mainly by increases in the number of pieces listed, listing values and corresponding listing fees charged compared to the second quarter of last year. The company''s Q2 2016 revenue was also boosted by quarter-over-quarter increases of $625,407 in trading commission revenue, $403,148 in management fee revenue, and $322,158 in authorized agent subscription revenue (compared to none such revenue in Q2 2015).
Takung''s improved profitability for Q2 2016 was primarily due to the aforementioned increases in listing fees, trading commissions, management fees and authorized agent subscription revenue, offset by quarter-over-quarter increases of $1,169,165 in general and administrative expenses and $655,023 in selling expenses. The rise in quarterly G&A expenses resulted mainly from increases in salaries, office and rental expenses, stock based compensation, and legal and professional fees. Takung''s increase in second quarter selling expenses resulted from the expansion of the company''s sales force and marketing activities, participation in industry trade shows, and China-based and international travel and related training seminars, all of which were designed to introduce the company''s shared-art trading platform to potential customers in major Chinese and international markets.
"Our Q2 2016 results demonstrate that our unique shared art ownership business model is gaining significant traction," said Takung chairman and CEO Mr. Di Xiao. "Once again, we achieved major increases in revenue and profitability, while growing the total dollar volume transacted on our platform.
"Significant increases in G&A and selling expenses in the current year have been necessary to support the company''s rapid growth, attract and retain tens of thousands of new traders on the platform, and strengthen the Takung brand in China''s fine art market. While their impact will have a mild adverse effect on profitability in the near-term, we believe these investments will help secure even greater profitability on rising revenue in the months and years ahead."
Mr. Xiao noted that because of the company''s strong financial position, Takung has the ability to fund the expansion of its infrastructure and sales efforts from positive cash flow and earnings.
"Not only do we expect solid continued growth in China," he added, "but we also expect to soon see revenue contributions from customers in our four new international markets -- Russia, Mongolia, Australia and New Zealand -- as marketing, sales and training personnel are being deployed in these markets.
"Considering the distinct advantages we offer art investors -- reduced capital investment with liquidity and protection against fraud -- we are confident that our shared art ownership model will establish strong revenue footholds in each of these new markets, and, up the line, many others."
At June 30, 2016, the company''s cash position was $4,094,609, and short-term investments totaled $9,780,466. 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 $25,676,516.
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
Leslie Chow
+852 31580977
Jimmy Caplan
512-329-9505
Rick Eisenberg
212-496-6828
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Datum: 19.08.2016 - 14:16 Uhr
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