Q3 Financial Highlights:
- Total revenue of $15,116,369
- Adjusted EBITDA of $127,976
- Total assets of $48,687,541
Historical Revenue and adjusted EBITDA Summary
|Q3 2020||Q2 2020||Q1 2020||Q4 2019||Q3 2019|
2 Adjusted EBITDA equals net income (loss) before finance costs, taxes, depreciation, amortization and impairment of intangible assets, loss on extinction of debt, gain on bargain purchase and amortization
Q3 Operating Highlights:
- New Jinxiaoer Service Centres in Nanjing and Taiyuan
- Equipment financing program powered by Cubeler Lending Hub in Xi’An
- Launch of government-backed commercial lending Financial Centre powered by Cubeler Lending Hub in Jiangyin
- First supply-chain financing related services, previously outsourced, provided through Gold River 2.0 platform
Third Quarter Financial and Operating Results Summary
“As we expected, the demand for our services, particularly as it pertains to the supply-chain, reached a new level in the third quarter, but we’re still very much in the early stages of our client acquisition plan in that vertical,” commented Peak Group CEO, Johnson Joseph. “The vast majority of our supply-chain financing business is still financing purchase orders placed with a few raw material suppliers by 200 or so manufacturers. The objective is to work our way down the transactional supply-chain where we can finance purchase orders placed with thousands of manufacturers and distributors by tens of thousands of retailers, and we began to see some of those transactions in the latter part of the quarter”.
“The financing services related to transactions between material suppliers and manufacturers that took place in Q3 were bundled with logistics services. We outsourced those services because we didn’t have the software system through which the purchase orders could be placed and some of the logistics services provided. But that’s in the process of changing. We spent the better part of a year making adjustments to Gold River to be able to provide those services ourselves, which should dramatically reduce our outsourcing expenses,” concluded Mr. Joseph.
The continued geographic expansion of Peak’s services certainly played a role in the increase in the quarterly revenue, but it’s really the demand from the supply-chain vertical itself, mostly in the cities where the financing services were already being provided, that has had the biggest impact on the revenue growth.
The revenue trajectory on which the Company now finds itself, combined with the impact that the re-emergence of its Gold River platform is expected to have on future outsourcing expenses, bolstered the Company’s 2021 profit repatriation plans. Peak therefore engaged with consultants and advisors during the quarter to begin implementing the mechanisms prescribed by the Chinese government for foreign companies to repatriate profits from their Chinese subsidiaries. Other than the aforementioned outsourcing expenses, fees paid out to consultants and advisors represented the biggest expenses for the Company in Q3.
In summary, the Company generated revenue of $15,116,369 for the three-month period and $26,329,268 for the nine-month period ended September 30, 2020, compared to $4,499,953 for the three-month period and $7,351,186 for the nine-month period ended September 30, 2019.
Total expenses before taxes for the quarter amounted to $15,505,739, compared to $4,998,367 for the same period in 2019. The net (after tax) loss for Q3 was $512,874 compared to $777,316 for the same period of 2019.
Full details of the Company’s third quarter 2020 financial results can be found in the Unaudited Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis (MD&A) for the three-month and nine-month periods ended September 30, 2020 and 2019, which are available at www.sedar.com.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. is the parent company of a group of innovative financial technology (Fintech) subsidiaries operating in China’s commercial lending industry. Peak’s subsidiaries use technology, analytics and artificial intelligence to create an ecosystem of lenders, borrowers and other participants in China’s commercial lending space where lending operations are conducted rapidly, safely, efficiently and with the utmost transparency. For more information: http://www.peakpositioning.com.