Peak Files Q2 2019 Results, Reports Revenue of Double Q1 2019 Results
Montreal, Quebec--(Newsfile Corp. - August 29, 2019) - Peak Positioning Technologies Inc. (CSE: PKK) ("Peak" or the "Company"), an innovative Fintech service provider to the Chinese commercial lending sector, today announced its financial results and operating highlights for the three-month and six-month periods ended June 30, 2019. The results mark the Company's fifth consecutive quarter of revenue growth and put it in positive EBITDA territory for the first time since it began its transition to becoming a Fintech company in early 2017. All amounts expressed are in Canadian dollars.
Q2 Financial Highlights:
- Total revenue of $1,901,723
- EBITDA of $339,732
- Net loss before taxes of $139,774
- $280,000 of capital raised
Historical Revenue and EBITDA Summary
|Q2 2019||Q1 2019||Q4 2018||Q3 2018||Q2 2018|
1 Expenses do not include interest, taxes, depreciation (including impairment of intangible asset in Q4 2018) and amortization
2 EBITDA equals net loss before finance costs, taxes, depreciation and amortization
Q2 Operating Highlights:
- Creation of new Asia Synergy Supply Chain ("ASSC") subsidiary to help address specific financial needs of supply-chain participants
- New credit analysis report service offering provided by Asia Synergy Data Solutions ("ASDS") and ASSC
- Service offering expansion to the cities of Xian and Jiangyin
- Service agreement between Asia Synergy Credit Solutions ("ASCS") and Hua Xia Bank
- First loans serviced by ASCS on behalf of Hua Xia Bank
Second Quarter Financial and Operating Results Summary
Peak continued to make inroads with its service offering to the Chinese commercial lending space during the second quarter, which was reflected in the noticeable increase of its revenue compared to the previous quarter. The Company's ASDS and ASSC subsidiaries both contributed to that increase by using Peak's Cubeler Lending Hub platform to launch a new credit analysis report service offering. In less than one full month of operation, ASSC accounted for nearly 20% of the Company's revenue in Q2.
ASCS and Asia Synergy Financial Capital ("ASFC") also had strong performances during the quarter. The average interest rate on ASFC's loans increased for the fourth consecutive quarter to reach an average of 17.1% in Q2, while its revenue increased by 20.8% compared to Q1 revenue. The second quarter marked the first full quarter of operation for ASCS, which saw an increase in revenue compared to Q1.
In summary, the Company generated revenue of $1,901,723 for the three-month period and $2,851,233 for the six-month period ended June 30, 2019, compared to $224,611 for the three-month period and $229,758 for the six-month period ended June 30, 2018.
Total expenses for the quarter amounted to $2,041,497, compared to $1,129,448 for the same period in 2018. The net loss for Q2 was $295,987 compared to $971,895 for the same period of 2018.
Full details of the Company's second quarter 2019 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 six-month periods ended June 30, 2019 and 2018, which are available at www.sedar.com.
About Peak Positioning Technologies Inc.:
Peak Positioning Technologies Inc. is an IT portfolio management company whose mission is to assemble, finance and manage a portfolio of promising companies and assets in some of the fastest-growing tech sectors in China, including fintech, e-commerce and cloud-computing. Peak provides a bridge for North American investors who wish to participate in the continued digitization of China's industrial sectors through the latest advancements in technology. For more information: http://www.peakpositioning.com.
For more information, please contact:
CHF Capital Markets
Cathy Hume, CEO
416-868-1079 ext.: 231
Peak Positioning Technologies Inc.
Johnson Joseph, President and CEO
514-340-7775 ext.: 501
Forward-Looking Statements / Information:
This news release may include certain forward-looking information, including statements relating to business and operating strategies, plans and prospects for revenue growth, using words including "anticipate", "believe", "could", "expect", "intend", "may", "plan", "potential", "project", "seek", "should", "will", "would" and similar expressions, which are intended to identify a number of these forward-looking statements. Forward-looking information reflects current views with respect to current events and is not a guarantee of future performance and is subject to risks, uncertainties and assumptions. The Company undertakes no obligation to publicly update or review any forward-looking information contained in this news release, except as may be required by applicable laws, rules and regulations. Readers are urged to consider these factors carefully in evaluating any forward-looking information.
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