PChome Online today announced its financial results for the first quarter ended March 31st, 2021.
We provided the consolidated financial statement and standalone financial statement as follows. The standalone financial statement reflects a clearer picture of the B2C business.
Financial Highlights:
• The consolidated revenue grew 7.6% YoY to NT$11.5 billion in 1Q 2021, driven by the B2C business (up 8.7% YoY) and Fintech & Other businesses (up 61.5% YoY), more than offsetting the decline in Market Place (down 19.6% YoY).
• Within the B2C business:
o The 3C categories grew 13% YoY, thanks to a wide range of new electronic products launched and promoted collectively with brands in the quarter. On the other hand, the non-3C categories stayed broadly flattish on a YoY basis, as the introduction of new life style brands (e.g. MUJI) merely offset the decline in consumer staples such as hygiene products, a result of higher base effect from the pandemic last year.
o As a result, the non-3C categories’ weighting decreased slightly to 27% in 1Q 2021 from 30% in 1Q 2020, but still higher than level 25% in 4Q 2020.
o Despite the decline in higher-margin non-3C categories’ weighting on a YoY comparison, the B2C business managed to deliver a gross margin of 12.3% in 1Q 2021 (down 0.1% points YoY but up 0.7% points QoQ).
o With the expanding scale benefits, the B2C business’ operating profit increased by 21.5% YoY in 1Q 2021, with an improved operating profit margin at 2.3% vs. 2.0% in the same period last year.
• On Market Place business, the ~20% YoY sales decline, mostly attributed to PChome Store, reflects a continued heightened competition from the rival. However, the margin impact is more manageable, as its operating margin declined by 8% YoY.
• On Fintech & Other businesses, the strong 60+% YoY sales growth was mainly driven by the wider usage of Pi Wallet and our cross-border business initiatives, both more than doubled in terms of revenues in 1Q 2021 vs. the same period last year.
• The non-operating income of NT$36 million in 1Q 2021 (vs. NT$1 million in 1Q 2020) was mainly due to a revaluation gain from Chunghwa PChome Fund I’s portfolio companies.
• In 1Q 2021, Net income reached NT$142 million, up 38% YoY, while EPS reached NT$1.17, up 33% YoY.
Other Business Highlights:
• Marketplace
o Ruten announced a policy change on April 1st to increase take rate and payment service fee.
o PChomeStore reached a milestone of 120,000 merchants on the platform in early April.
• Payment
o Pi is working with Rakuten International Commercial Bank to provide payment solution on its app.
o Pi Wallet has accumulated 1.1m registered users in 1Q 2021.
• Other
o MiTCH, the group’s selected apparel platform, has on boarded more than 100 official licensed brands and launched MiTCH Global, a global site to serve customers in Hong Kong, Macau, Singapore and Malaysia, in this quarter.
o Bibian, the group’s cross-border ecommerce platform, continued its strong growth and showed a positive bottom line in this quarter.
