Snapshot: On Tuesday, Sky-mobi Ltd (ADR) (NASDAQ:MOBI) showed bearish trend with lower momentum of -1.09% to close at $1.84. The company traded total volume of 36,757.00 shares as contrast to its average volume of 31,132.00 shares. The company has a market value of $53.06 Million and about 225.85 Million shares outstanding. During the 52-week trading session the minimum price at which share price traded, registered at $1.75 and reached to max level of $6.60.
News: Sky-mobi Limited (NASDAQ:MOBI), a mobile application platform and game publisher in China, today declared its unaudited financial results for the first quarter ended March 31, 2016.
First Quarter 2016 Financial Results
Total Revenue: The Company’s price to sale ratio was 0.56 while price to book ratio was 0.51. Total revenue was RMB83.7 million (US$13.0 million), contrast to RMB98.1 million in the previous quarter and RMB233.0 million during the same period last year. The stock is currently trading -9.99% down its SMA 50. The sequential decrease was mainly a result of (1) the three mobile carriers’ continued tightening of security policies governing payment transactions, and (2) tighter control measures on payment transactions implemented by the three mobile carriers during the weeks surrounding China’s annual consumer rights day on March 15, 2016.
Shares of company were moving below of 50 days simple moving average with -9.99% while 200 days simple moving average with -24.84%. Revenue from the smartphone business was RMB81.7 million (US$12.7 million), or 97.6% of total revenue, contrast to RMB96.6 million in the previous quarter, or 98.5% of total revenue, and RMB219.3 million during the same period last year, or 94.1% of total revenue. The decreases were mainly because of the continued tightening of payment security policies by the three mobile carriers.
Revenue can be further broken down into three categories: “revenue from single-player games”, “revenue from multiplayer games” and “other revenue”.
Revenue from single-player games was RMB67.6 million (US$10.5 million), contrast to RMB79.1 million in the previous quarter and RMB194.9 million during the same period last year. ARPU1 for single-player games was RMB11.3, contrast to RMB10.3 in the previous quarter as the depreciate in the paying user base was faster than the reduction in revenue from single-player games.
Cost of Revenue and Gross Profit: Net profit margin of corporation was 7.10%. Total cost of revenue was RMB61.9 million (US$9.6 million), contrast to RMB74.7 million in the previous quarter and RMB185.3 million during the same period last year.
The negotiation and analysis below focuses on non-IFRS cost of revenue, which the Company believes more accurately reflects its operating performance than the IFRS cost of revenue.
Non-IFRS gross profit was RMB21.9 million (US$3.4 million), contrast to RMB23.3 million in the previous quarter and RMB48.1 million during the same period last year. Non-IFRS gross margin was 26.2%, contrast to 23.8% in the previous quarter and 20.6% during the same period last year. The sequential increase in non-IFRS gross margin was mainly because of the mostly feature phone related multiplayer games and feature phone business, which generally have higher margins, accounting for a higher proportion of total revenue.
Net Profit: In the first quarter of 2016, there was no gain from disposal of associates, contrast to RMB9.0 million in the previous quarter and nil during the same period last year. Share of results of associates was a loss of RMB0.9 million (US$0.1million), contrast to profit of RMB2.2 million in the previous quarter and RMB4.7 million during the same period last year.
Net profit was RMB3.5 million (US$0.5 million), contrast to RMB21.6 million in the previous quarter and RMB14.2 million during the same period last year. Basic and diluted earnings per common share were RMB0.01 (US$0.002) and RMB0.01 (US$0.002), respectively, which represents the equivalent of RMB0.12 (US$0.02) and RMB0.12 (US$0.02) per ADS, respectively.
Conference Call and Webcast: The Company will hold a conference call on Tuesday, May 24, 2016 at 8:00 am Eastern Time, or 8:00 pm Beijing Time, to discuss the financial results.
Technical Analysis: The company offered net profit margin of 7.10% while its gross profit margin was 20.20%. ROE was recorded as 6.80% while beta factor was 3.90. The stock, as of recent close, has shown weekly downbeat performance of -7.54% which was maintained at -20.69% in this year.
