(Image source: Visual China)
After the market on January 2, Eastern time, Kingway Technology announced its financial results for the six months ended September 30, 2023. During the reporting period, Kingway Technology achieved revenue of 1.4937 million US dollars, a year-on-year decrease of 79.52%. The company's net loss for the first six months of fiscal 2023 was $367,000, compared to a loss of $2,984,100 in 2022, a decrease of 87.7%.
Revenue Falls 80%, Stock Price Plunges 9%
In the first six months of fiscal year 2023, Kingway Technology's revenue was $1.4937 million, down nearly 80%. The main source of income of Kingway Technology is online membership income, accounting for more than 98%, of which online VIP membership income accounts for 76.02%, and online SVIP membership income accounts for 22.96%.
In addition, in this financial report, Wangdao Technology said that it expects to recognize revenue related to the remaining performance obligations of $551,000 in the next 12 months.
Wangdao Technology mainly provides cloud services for users in villages and towns across the country, Central Agricultural Radio and Television School, higher vocational colleges, secondary vocational secondary schools, technical schools, training institutions, etc., and provides vocational skills training video courseware for blue-collar migrant workers, as well as non-agricultural skills training.
However, with the development of urbanization, the demand for rural labor training has decreased, and the fierce market competition in the field of vocational education has reduced the number of members, and the membership income for the fiscal year was US$1.4785 million, compared with US$6.6801 million in the same period in 2022, a year-on-year decline of nearly 78%.
After the release of the financial report, as of the close of trading on January 2, Eastern time, the share price of Wangdao Technology closed at $1.14 per share, down 9.52%, with a market value of only $17.61 million, and it was far from listing.
After two and a half years of losses, the loss narrowed
In terms of expenses, it was disclosed in this financial report that the total operating expenses of Kingway Technology in the first six months of fiscal year 2023 were US$1.3541 million, compared with US$2.1414 million in the same period of 2022, a decrease of 36.77%.
Sales and marketing expenses decreased from $279,000 in 2022 to $127,600 in 2023, and general and administrative expenses decreased from $1,862,400 in 2022 to $1,226,500 in 2023.
In terms of gross profit, during the reporting period, the gross profit of Kingway Technology was 549,400 US dollars, a year-on-year increase of 1416.63%.
In terms of net profit, from the second half of fiscal year 2021 to the first half of fiscal year 2023, the net profit attributable to the parent company of Wangdao Technology continued to lose.
As of September 30, 2023, the cash and its equivalents held by Kingway Technology were US$19.7247 million, a decrease of US$1.2741 million compared with US$20.9988 million as of March 31, 2023.
Last year, Wangdao Technology made frequent moves. In February, the concept of AIGC was hot, and Kingway Technology announced that the company is developing Class Bot products based on Open AI technology, which are used to help schools and training institutions quickly build online learning Xi courses, and improve the learning efficiency and graduation rate of online education students through the adaptive learning Xi Xi mode.
In March, Kingway Technology announced that it would issue convertible bonds for PIPE financing, and issue and sell notes with a principal amount of $1 million to specific investors, and the transaction was completed on March 2. The Notes mature within one year of issuance and carry an interest rate of 7% per annum.
In the same month, Wangdao Technology and Haibao Intelligent Manufacturing Technology reached a strategic cooperation agreement, and the two parties agreed to develop a smart factory skills training platform based on metaverse technology Meta-Factory, which provides multi-person collaboration and multi-scenario simulation training base for vocational colleges and manufacturing customers, aiming to help them effectively cater to the rapidly developing labor market of manufacturing factories;