eCargo delivers Group’s first EBITDA profit in FY20

Highlights:

• Revenue of HK$218.5 million [A$36.6 million], up 23% year-on-year;
• EBITDA of HK$7.6 million [A$1.3 million] (FY19: loss of HK$6.7 million);
• Non-cash operating expenses of HK$42 million [A$7.0 million], resulting in Net Loss After Tax of HK$39.5 million [A$6.6 million], improvement of 47% (FY19: Net Loss After Tax of HK$74.6 million);
• Strong growth in FMCG  category, with both Online and Offline revenue up 103.5% and 31.0%, respectively

February 24, 2021 (Sydney): eCargo Holdings Limited (ASX: ECG) (ECG, eCargo or the Group) today announced its financial results for the year ending December 31, 2020, demonstrating a strong recovery in the second half of the year.

The results were primarily driven by the implementation of operational efficiencies and a focus on channel management to further leverage the growing consumer demand for online retail.

Group revenue grew by 23% to HK$218.5 million, and ECG as a Group, achieved its first EBITDA profit of HK$7.6 million (FY19: loss of HK$6.7 million) since inception.

The FY20 statutory net loss of HK$39.5 million (FY19: net loss of HK$74.6 million) included a HK$33.5 million impairment of goodwill and intangible assets for FMCG and Amblique, fair value gain on contingent liabilities of HK$0.4 million, and depreciation and amortisation of HK$8.9 million.

Commenting on the FY20 results, eCargo’s Chief Executive Officer Lawrence Lun said: “Despite a challenging year due to COVID, we were able to leverage the continued shift in Chinese consumer behaviour towards eCommerce and the need for brands to enhance their online presence. We delivered a strong final quarter, having created better synergies across key functions, and a renewed targeted approach to distribution trading and B2B eCommerce enabling business by being more selective on brands we engage with. With a number of changes in the second half of 2020, ECG’s China business has now delivered a positive full-year EBITDA. We are looking forward to building on this strong foundation in the coming year.”

About eCargo Holdings Ltd

eCargo Holdings Limited (ASX: ECG) is a “One-stop Shop” Online-to-Offline enabler servicing
international brands and retailers entering the China market. With operating companies in China and Australia trading under the brand names of eCargo, Jessica’s Suitcase, Amblique and Metcash Asia.

eCargo is unique because it is the only business operating in the Chinese market that can provide all
of these services in a “one stop shop” service offering.

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