Akso Health Group
NASDAQ:AHG
Akso Health Group
Akso Health Group is a holding company, which engages in the operation of online marketplace connecting borrowers and investors. The company is headquartered in Beijing, Beijing and currently employs 113 full-time employees. The company went IPO on 2017-11-03. The firm provides services through the Xiaobai Maimai application (APP), a one-stop e-commerce platform. The firm provides products covering food and beverage, wine, cosmetic products, fashion and apparel, entertainment, houseware, home appliances and others.
Akso Health Group is a holding company, which engages in the operation of online marketplace connecting borrowers and investors. The company is headquartered in Beijing, Beijing and currently employs 113 full-time employees. The company went IPO on 2017-11-03. The firm provides services through the Xiaobai Maimai application (APP), a one-stop e-commerce platform. The firm provides products covering food and beverage, wine, cosmetic products, fashion and apparel, entertainment, houseware, home appliances and others.
Business shift: Management is transitioning from a P2P-led model toward a loan assistance business that partners with licensed financial institutions to fund microloans.
Revenue decline: Net revenue was USD 4.9 million, down 90.5% year‑over‑year, but sequentially improved (net revenue up 18.6% QoQ).
Institutional funding ramp: Institutional partners funded ~20% of loan volume in the quarter and management expects ~80% institutional funding for loans in calendar 2020.
Loss reported: Net loss was USD 7.2 million this quarter versus net income of USD 29.7 million a year earlier; basic and diluted loss per share were USD 0.15.
Cost control: Operating costs fell to USD 12.6 million (down 18.9% YoY), led by a 35.5% YoY cut in sales and marketing to USD 7.5 million.
Partnership traction: Early institutional partners include Bohai International Trust (~RMB 40 million funded), Kunming Aotou (~RMB 30 million), and a Phoenix Finance partnership targeting ~RMB 10 billion over 3 years.
Share repurchases: Company repurchased ~1.2 million ADS for ~USD 4 million at an average price of USD 3.4, and intends to continue buybacks as part of capital allocation.
