RooLife recorded strong growth for FY22 as it continues to build on its reputation as a global leader in helping businesses grow in China.
China-focused digital marketing and e-commerce company RooLife Group (ASX:RLG) saw +118% growth in platform and product sales to ~$13m, from ~$6m in 2021.
Platform product sales accounted for more than 76% of the company’s total revenue for fiscal 2022, with RLG attributing the growth to significant ongoing investment in its proprietary technology and market development.
During the year, RLG significantly expanded its global business operations with customers and product sales in seven countries, supported by its technology platforms.
RLG said the company’s expanded global customer base has significantly boosted its revenue growth.
Offer a “global vision”
RLG Managing Director Bryan Carr said that over the past three years, RLG has invested heavily in developing its technology and platforms connecting brands and suppliers to customers around the world.
“In fiscal year 2022, the company’s management executed its global vision, increasing platform product sales by 118% and providing its services in 7 countries with marquee clients in 8 segments. major industrialists,” he said.
Carr said access to new markets continues to be a priority with Santander UK’s recently announced appointment as China’s gateway supplier for its customers.
“With Santander’s established global banking footprint and over 150 million customers, the Santander Navigator portal and technology perfectly complements RLG’s Marketplace platform, which is designed to match consumer demand with global vendors. whole and is an integral part of driving the next phase of our growth strategy. he said.
Reduction of losses for FY22
Revenue growth consequently led to a 50% reduction in overall net loss to $2.5 million in fiscal 2022, which was achieved despite COVID lockdowns in its key market of China and global supply chain delays with increased costs.
Sustainable income now allows the business to be cash flow self-sufficient if the status quo remains.
However, RLG said the board is of the view that further growth is feasible, and indeed necessary to realize the economies of scale from the existing cost base.
Positive growth outlook for FY23
RLG has a strong net asset position of approximately $6 million to continue its business expansion in FY23.
RooLife also continues to build its reputation as a global leader by helping businesses grow in China, one of the largest and fastest growing middle-class markets in the world.
In July, RLG announced that it had joined AFT Pharmaceuticals (ASX:AFP) to launch New Zealand’s first OTC online pharmacy in China, instantly reaching China’s burgeoning middle class and aging population, who both share a passion for online shopping and genuine products Kiwi.
Following its registration under China’s OTC Cross-Border E-Commerce (CBEC) Pilot Program, the store has become the first dedicated direct-to-consumer OTC online drug marketplace for New Zealand-registered drugs.
RLG’s stock price is up 50% in the past six months to 1.5 cents.
This article was developed in conjunction with Roolife, a Stockhead advertiser at the time of publication.
This article does not constitute advice on financial products. You should consider obtaining independent advice before making any financial decisions.