Stock in Focus: Secoo Holding Limited (NASDAQ: SECO)

On Tuesday, Shares of Secoo Holding Limited (NASDAQ: SECO) inclined 1.15% to $9.67. The stock recorded $9.50 as its minimum price and hit the max level of $9.87, during its most recent trading session. It traded total volume of 17,444 shares lower than the average volume of 171.82K shares.

Secoo Holding Limited (SECO), Asia’s leading online integrated upscale products and services platform, recently declared its unaudited financial results for the second quarter ended June 30, 2018.

Second Quarter 2018 Financial Results:

GMV increased by 44.7% to RMB 1,653.40M (US$249.90M) for the second quarter of 2018, from RMB 1,142.60M for the second quarter of 2017.

Total number of orders increased 49.7% to 455.90K for the second quarter of 2018 from 304.6.0K for the second quarter of 2017.

Total net revenues for the second quarter of 2018 increased by 55.5% to RMB 1,220.10M (US$184.40M) from RMB784.70M in the second quarter of 2017, mainly driven by the growth in our total active customers and total number of orders served during the period.

Cost of revenues increased by 52.1% to RMB996.40M (US$150.60M) for the second quarter of 2018 from RMB655.00M for the second quarter of 2017, which was in line with the increase of total net revenues.

Operating expenses increased by 63.8% to RMB167.10M (US$25.30M) for the second quarter of 2018 from RMB102.00M for the second quarter of 2017.

Fulfillment expenses increased 48.0% to RMB30.20M (US$4.60M) for the second quarter of 2018 from RMB20.40M for the second quarter of 2017. The increase was mainly attributable to the increase in sales volume and total number of orders fulfilled which resulted in the increased delivery expenses, packaging costs and third-party payment commissions.

Marketing expenses increased by 79.4% to RMB89.00M (US$13.50M) for the second quarter of 2018 from RMB49.60M for the second quarter of 2017. The increase was mainly because of the increase in our marketing promotions as well as staff compensation and benefits expenses.

Technology and content development expenses increased 40.0% to RMB20.30M (US$3.10M) for the second quarter of 2018 from RMB14.50M for the second quarter of 2017. The increase was mainly because of the increase in staff compensation and benefit expenses.

General and administrative expenses increased by 58.6% to RMB27.60M (US$4.20M) for the second quarter of 2018 from RMB17.40M for the second quarter of 2017. The increase was mainly attributable to the increase in staff compensation and benefit expenses, as well as professional consulting fees incurred during the period.

Operating income increased by 104.3% to RMB56.60M (US$8.60M) for the second quarter of 2018, contrast to RMB27.70M for the second quarter of 2017.

Income tax expenses were RMB10.30M (US$1.60M) in the second quarter of 2018 contrast with nil for the second quarter of 2017.

Net income was RMB36.40M (US$5.50M) for the second quarter of 2018, increased by 26.4% from RMB28.80M for the second quarter of 2017.

Non-GAAP net income, which excludes share-based compensation expenses, increased by 42.4% to RMB41.00M (US$6.20M) in the second quarter of 2018 from RMB28.80M in the second quarter of 2017.

Net income attributable to ordinary shareholders of Secoo Holding Limited for the second quarter of 2018 was RMB35.80M (US$5.40M) contrast to RMB142.00M for the second quarter of 2017, which was mainly because of the accretion of preferred shares in the second quarter of 2017, comparing to nil in the second quarter of 2018.

Cash, Time deposits, and Restricted Cash:

As of June 30, 2018, the Company had cash, time deposits, and restricted cash of RMB444.20M (US$67.10M).

SECO has the market capitalization of $492.54M and its EPS growth ratio for the past five years was -23.70%. The return on assets ratio of the Company was 4.70% while its return on investment ratio stands at 8.00%. Price to sales ratio was 0.77 while 7.50% of the stock was owned by institutional investors.

Chad Pitman

Chad Pitman

I am Chad Pitman and I focus on breaking news stories and ensuring we (“Stocks Market Cap”) offer timely reporting on some of the most recent stories released through market wires about “Emerging Stocks”. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for stocksmarketcap.com specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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