PChome Online Announced Appointment of New CEO and Strategic Investment in MamiLove, and Reported Second Quarter 2022 Results

Taipei, Aug 8st, 2022 – PChome Online announced to appoint Alice Chang, the founder of MamiLove as the new CEO of PChome group, and invest NT$226 million to acquire 40% shareholdings of UPN information Co. Ltd., the holding company of MamiLove. MamiLove is the largest baby & kids vertical e-commerce in Taiwan with almost 900k members, 92% female between 25-50 year-old. MamiLove has rich product listings from more than one thousand global non-3C brands. This strategic investment will not only advance PChome Non-3C merchandising capability, but also broaden PChome’s user profile diversity by leveraging MamiLove’s strengths in niche marketing management and community marketing strategy.

Alice Chang has a broad and unique experience from both the e-commerce business management and strong technical skills as an entrepreneur and ex-google partner technology manager. In 2012, Alice moved back to Taiwan and founded MamiLove, which originated from her own needs as a parent. MamiLove is a customer-centric community that empowers moms and families. Alice’s mission is to build a great software company in Taiwan, and the company builds great products and services that users love.

Says Mr. Jan, chairman of PChome, “we are very pleased to welcome Alice as the new CEO of PChome, her entrepreneurship and diversified experiences will lead to transforming PChome, starting a new era of the group. We will embark on a journey together to bring new cultures and momentum into the company, establishing PChome as the brand that all customers can trust, with the best and most sincere service.”

More About Alice Yu-Shan Chang :

Alice grew up in Taiwan, and moved to the States for education and work for 10 years. After backpacking across South America, India, and Nepal, Alice realized that the greatest adventure of life is not globetrotting nor starting a business but becoming a mother. Alice moved back to Taiwan in 2012 and founded her own company, MamiLove. Before founding MamiLove, Alice was Partner Technology Manager at Google Mountain View. During her 4-year journey at Google, she was responsible for launching first-generation Chromebook, launching YouTube content ID to enable monetization of copyrighted videos, and developing the business intelligence tools to guide the local listing acquisition strategy for Google Maps. She received the Operating Committee award by executives. Alice received her master’s degrees of Computer Science, and Management Science from Stanford University and holds a BS in Computer Science from University of University of Illinois Urbana-Champaign.

More About MamiLove: https://mamilove.com.tw/

MamiLove is the largest vertical e-commerce for moms and families in Taiwan with almost 900k members, 92% female between 25-50 year-old, and has rich product listings from more than one thousand global non-3C brands. MamiLove aims to become the most trusted e[1]commerce community for moms and families. Data-driven and customer-centric are the core values of the company.

PChome Online announced financial results for the second quarter ended June 30st, 2022 today. We provided consolidated financial statements and standalone financial statements as follows. The consolidated financial statements reflect performance across all BUs, including B2C, Marketplace, Fintech, and Others. The standalone financial statements reflect a clearer picture of the B2C business.

Second Quarter 2022 Consolidated Financial Highlights:

  • The consolidated revenue was NT$11,180 million (-4.7% YoY) in 2Q 2022, with B2C sales of NT$10,415 million (-7.0% YoY), Marketplace sales of NT$354 million (-16.3% YoY), Fintech sales of NT$301 million (+329.6% YoY) and Other sales of NT$110 million (+168.2% YoY).

o B2C: 3C categories sales declined 7.7% YoY and accounted for 72.1% of total B2C sales in 2Q 2022 (vs. 72.1% in 1Q 2022 or 72.7% in 2Q 2021). Non-3C categories sales declined 5.0% YoY and accounted for 27.9% of total B2C sales in 2Q 2022 (vs. 27.9% in 1Q 2022 or 27.3% in 2Q 2021). All categories are affected by macro headwinds including pressures on consumer spending and normalized e-commerce demand. Moreover, the rebate policy adjustment of PChome’s banking partner also limited the sales growth and eroded B2C profitability.

  • The consolidated gross profit was NT$1,305 million(-5.3%YoY) in 2Q 2022, with a decrease of NT$74 million compared to 2Q 2021, owing to the decline in gross profit of B2C BU, which impacted by the normalization of online shopping demand and the inflationary environment that triggered stronger cost pressure in the sector.
  • The consolidated operating expenses ratio was 12.4% in 2Q 2022 (vs. 10.9% in 2Q 2021), with an increase of NT$108 million in total.

o Selling and Marketing expenses ratio was 8.6% (vs. 8.7% in 2Q 2021), with a decreasing amount of NT$61 million which reflected the budget control on B2C marketing and promotion activities.

o General and Administrative expense ratio was 1.7% (vs. 1.0% in 2Q 2021), with an increasing amount of NT$70 million, mostly due to the G&A expense from newly consolidated Fintech entities.

 o Research and Development expenses ratio was 1.5% (vs. 1.2% in 2Q 2021), with an increasing amount of NT$36 million, due to new IT investment for the B2C BU across cloud migration, and UI/UX optimization.

  • The consolidated operating loss was NT$84 million in 2Q 2022, with a decreasing amount of NT$182 million compared to 2Q 2021.

o B2C’s operating loss was NT$53 million in 2Q 2022, because the decrease in gross profit and larger IT investment compared to 2Q 2021.

o Marketplace’s operating profit was NT$21 million in 2Q 2022, owing to the decrease in Ruten’s transaction revenue. o Fintech BU’s operating loss narrowed down to NT$13 million, compared to NT$86 million in 2Q 2021, continued to show profitability improvement which thanks to synergies of the acquired Fintech arms.

o Other business, including cross-border business, consolidation adjustments, and eliminations, reported an operating loss of NT$38 million in 2Q 2022.

  • Consolidated Non-operating income was NT$237 million in 2Q 2022, reflected the investment revaluation gain of NT$193 million of Chunghwa PChome Fund I and the 3 recovery gain of NT$41 million of Fintech BU.
  • The tax expense was NT$71 million, consisted of one-time capital gain tax of NT$22 million due to the share exchange of 21CD & Pi Wallet in 1Q 2022 and the rest came from Marketplace and Fintech BU.
  • Consolidated net income was NT$82 million, net income attributed to minority interest was NT$84 million, net loss attributed to shareholders and EPS was NT$2 million and negative NT$0.01, respectively.