RooLife delivers another record quarter as it achieves net positive cashflow
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RooLife has posted consecutive record quarters, and is now well-funded after achieving net positive cashflow and receiving a cash injection from a strategic investor.
China-focused digital marketing and e-commerce company, RooLife Group (ASX: RLG), has delivered another record quarter, reporting $3.9 million in revenue for the June quarter.
The company also collected in excess of $5 million of cash receipts from customers, and achieved net positive cashflow of over $1 million during the quarter.
With this result, RLG is now well-funded with $3.8 million in the bank as of 30 June, which was further boosted by $1.7 million in July through an investment by a private strategic investor, Daniel Love.
That’s $5.5 million in cash to position RLG for its next phase of growth.
The record $3.9 million Q4 revenue today is a 15 per cent increase of its Q3 record results, where it reported revenues of $3.4 million.
The graph below shows the strong growth trajectory that RLG has been delivering year-on-year for the past three years.
RLG is a cross-border platform that matches Chinese consumer demand with international brands and products.
The company represents a growing number of quality products and international brands from Australia, New Zealand, US, Europe, UK and South America wanting to sell in China.
To drive sales, RLG identifies trends in Chinese consumer demand, and secures distribution rights for international products that fit consumers’ needs.
It also provides the technology and sales infrastructure necessary for brands to sell at scale in China.
The company offers a fully integrated offering which includes market research and data analysis, logistics and warehousing, as well as payment acceptance and remittance.
Clients are typically contracted on a 2-3 year term basis, with revenues earned from a combination of monthly marketing and service fees.
Increasingly, revenues are also earned from product sales, with RLG obtaining the exclusive rights to sell each brand into China both online and through traditional channels.
A selection of RLG’s clients include Remedy Drinks, Australia’s number one kombucha brand, Nuria (skincare), Colab (dry shampoo), and Murray River Organics (health food).
According to estimates, the Chinese online market is huge and is worth a whopping $2.2 trillion – almost double the entire Australian GDP.
With a team of expert online marketers sitting in the city of Guangzhou, the company has been driving sales through some of China’s biggest online marketplaces like TMall, Taobao, and JD.com.
This article was developed in collaboration with RooLife, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.