- 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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