Earnings Snapshot of Recent Traded Stock: JMU Limited (NASDAQ:JMU)

JMU Limited (NASDAQ:JMU) the stock changed -7.41% to recent value of $1.2500. The Company has 11.48 million shares outstanding and 0.04 million shares were floated in market. The trading volume was recorded to 53,388 shares as compared to average traded volume of 429,746 shares.

JMU Limited (JMU) recently reported its audited financial results for the fiscal year ended December 31, 2018.

Fiscal Year 2018 Highlights

  • Revenues in 2018 were $36.5M, representing a decrease of 58.9% from $88.7M in 2017. The decrease was mainly Because of the Company re-examining its B2B platform business and re-developing and transforming its future positioning and strategy in 2018. During the year, the Company suspended businesses that were plannedally misaligned, products with lower gross profit, and a portion of business and services that involved third-party sellers and buyers.  
  • Gross profit was $876 thousand in 2018, an raise of $327 thousand from 2017.
  • B2B online platform recorded gross billing of RMB7.7B (US$1.1B) in 2018, measured in terms of gross merchandise value (“GMV”), decreasing 51.9% from gross billing of RMB16.0B (US$ 2.5B) in 2017. The decrease was mainly Because of the Company re-examining its B2B platform business and re-developing and transforming its future positioning and strategy in 2018.
  • Active consumer accounts were 10,304 as of December 31, 2018, decreasing 68.8% from 33,025 as of December 31, 2017.
  • Third-party sellers on the Company’s online marketplace reduced to 3,779 as of December 31, 2018, contrast to over 15,800 as of December 31, 2017.

Ms. Xiaoxia Zhu, Chairperson and Chief Executive Officer commented, “Through re-examining and adjusting our strategy and business, we hope to bring better growth opportunities for JMU and create better market service value for our consumers.”

Fiscal Year 2018 Financial Performance

Revenues were $36.5M for 2018, representing a decrease of 58.9% from $88.7M in 2017. The decrease of revenue in 2018 was mainly due the Company re-examining its B2B platform business and re-developing and transforming its future positioning and strategy in 2018. During the year, the Company suspended businesses that were plannedally misaligned, products with lower gross profit, and a portion of business and services that involved third-party sellers and buyers.

Cost of revenues were $35.6M in the year of 2018, representing a decrease of 59.6% from $88.2M in 2017.

Gross profit for 2018 was $876 thousand, representing a 59.6% raise from $549 thousand in 2017. Gross margin raised to 2.4% in 2018 from 0.62% in 2017.

Selling and marketing expenses in 2018 reduced 61.8% to $5.8M from $15.2Min 2017. As a percentage of total revenue, selling and marketing expense was 15.9% and 17.1% in fiscal years 2018 and 2017, respectively. The decrease was primarily attributable to the impairment of purchased intangible assets decreasing to zero, which resulted in the amortization of intangible assets decreasing by $7.2M. Marketing, advertising, and travel expenses also reduced.

General and administrative expenses in 2018 were $4.3M, representing a decrease of 35.8% from $6.7M in 2017. As a percentage of total revenues, general and administrative expenses were 9.6% and 7.6% in 2018 and 2017, respectively.

Impairment loss in 2018 was $115.2M, representing a decrease of 21.7% from $147.0M in 2017. As a percentage of total revenue, impairment loss were 315.9% and 165.7% in 2018 and 2017, respectively.

Loss from operations in 2018 was $124.4M, representing a decrease of 26.1% from $168.4M in 2017.

Net loss attributable to the Company in 2018 was $123.2M, representing a decrease of 23.9% from $161.9M in 2017. Non-GAAP net loss attributable to the Company, which excludes amortization of purchased intangible assets, impairment loss, share-based compensation and related provision for income tax benefits, was $9M in 2018 contrast to $12.3M in 2017. For the years ended December 31, 2018 and 2017, the Company’s weighted average number of ordinary shares used in computing loss per ordinary share was 1,476,801,177 and 1,476,144,194, respectively.

As of December 31, 2018, the Company’s cash and cash equivalents was $0.4M, representing a decrease of 92.7% from $4.9M as of December 31, 2017. Total shareholders’ deficit as of December 31, 2018 was $20.2M contrast to total shareholders’ equity of $103.6M as of December 31, 2017.

JMU gross profit margin was measured as 1.00%. The volatility in the previous week has experienced by 8.50% and observed of 8.43% in the previous month.1.30% ownership is held by institutional investors while insiders hold ownership of 0.02%. Beta factor, which measures the riskiness of the security was registered at -0.27.

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