- ChineseInvestors.com reports a total year-over-year revenue increase of 70 percent for the first fiscal quarter of 2019
- The company’s current assets have nearly doubled, and its share price touched $0.90 per share as of October 17, 2018
- The agreement entered between CBD Biotechnology Co. Ltd. and Tmall is likely to boost industrial hemp CBD sales
- With products on Tmall, CBD Biotechnology Co. Ltd is positioned to cash in on Double 11 and Double 12 shopping festivals
ChineseInvestors.com, Inc. (OTCQB: CIIX) recorded impressive first quarter financial results for its fiscal year 2019. Its total revenue, comprising product sales revenue and subscription revenue, is on the uptrend.
According to Chief Executive Officer Warren Wang, cannabidiol (CBD) hemp sales in China are a major contributor to the growth in the product revenue. On the subscription services front, the company recorded a revenue increase of close to 100 percent. The steady revenues are expected to continue, buoyed by the company’s newly-introduced cryptocurrency market educational services.
In terms of liquidity, the company reported a two-fold increase in cash and cash equivalents from $1.4 million to $3 million. This pushed up the company’s total current assets to $5.5 million. On the equity side, the closing market value of common stock as of October 17, 2018, was $0.90 per share.
The outlook according to Wang is positive, thanks to the evolving business, regulatory and political landscapes of the Chinese industrial hemp CBD market. The company plans to increase its product distribution in both the U.S. and Chinese markets.
To widen the distribution network for its industrial hemp CBD products, ChineseInvestors.com, through subsidiary CBD Biotechnology Co. Ltd., signed an agreement with Alibaba Group’s Tmall. This will see the subsidiary leverage Tmall’s e-commerce marketplace to reach a wider market.
Alibaba Group (NYSE: BABA) has a total of 500 million registered customers across Tmall and Taobao. By listing its CBD skincare products on the Tmall platform, CBD Biotechnology Co. Ltd. will automatically expand its footprint.
The move comes at just the right time to take advantage of Double 11 and Double 12 shopping festivals, which take place between November and December. During this period, China records the highest volume of sales through online retailers. In 2017, the Double 11 shopping festival recorded a hopping 168.2 billion RMB ($24.2 billion) in sales in a single day.
While CBD Biotechnology Co. Ltd. isn’t the only company that produces and markets CBD skincare products in the Chinese market, it is the first to enter Tmall. The main target market for the CBD skincare products is the cosmetics industry, which is coming up strongly in China.
To further boost sales and strengthen its brand influence, the company plans to spend 2.5 million RMB ($360,000) in advertising and online marketing. This will cover all of its CBD skincare product lines.
Tmall is regarded highly as an e-commerce platform, and hundreds of companies are always applying to be authorized. Therefore, CBD Biotechnology Co. Ltd. considers itself successful for getting this opportunity. The company’s projections for total sales from October 2018 to September 2019 is 12 million RMB ($1.7 million).
ChineseInvestors.com is a financial news media platform, with headquarters in San Gabriel, California, catering to the Chinese-speaking community, not just in China, but in the United States, Canada and other parts of the world. Leveraging the platform, the company is regularly introducing other products and services such as industrial hemp CBD that are of benefit to its target market. It is also the first publicly traded company in the United States that promotes hemp-derived CBD products for the Chinese market.
For more information, visit the company’s website at www.ChineseInvestors.com
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