Revenue growth and new sales channels mark a strong half year for RooLife Group
RooLife Group closed out the December half year with net assets of $7.6 million.
E-commerce and digital marketing company RooLife Group (ASX: RLG) continued its investment in technology and customer acquisitions during the six months to December, driving growth in sales revenue and establishing new channels to market.
The company’s half-yearly report shows revenue from operations of $8.1 million, reflecting a growth of 304% on the $2 million revenue recorded for the previous corresponding period.
Total cash receipts increased to $5.65 million, compared to $1.66 million in the previous period.
A loss of $865,000 represented a 41% improvement on the previous year and included non-operational expenses associated with performance shares and options, as well as technical development and launch costs for new e-commerce stores in China and southeast Asia.
RooLife’s working capital position also improved with net assets during the period of $7.6 million and net current assets of $5 million.
Direct-to-consumer platforms
RooLife continued the expansion of its direct-to-consumer sales platforms, delivering a 723% growth in product sales from the same employee and contractor cost base as the previous corresponding period.
The company’s new food store launched on the Pinduoduo social e-commerce platform in October achieved good sales growth and customer acquisition, reaching Top 10 Store status for its category within the first quarter of operation.
Pinduoduo is China’s largest online shopping platform with over 850 million active users.
Capital raising
In December, shareholders approved a $1 million capital raising via a share placement with newly-appointed sales channel China Cross Border Trading Group.
The consortium will market, sell and introduce RooLife’s portfolio of products to Chinese retailers, with first sales orders processed in December and expected to convert to revenue and cash receipts in the second half of this year.
It will also identify and advise RooLife of products requested by channels which RooLife will then endeavour to supply.
Food sales platforms
RooLife’s technology and services platforms manage the sale of food, beverages and health and wellbeing products by connecting global producers and brands directly to consumers.
Its marketplace facilitates transaction control via a cloud-based dashboard with real-time visibility of inventory, purchases and preferences, and links consumers to brands showing sales data and managing orders through direct-to-consumer online store integration.
RooLife represents products and brands from Australia, New Zealand, US, Europe, UK and South America, selling online and directly to consumers using technology and infrastructure to sell at scale.