READEN HOLDING CORPORATION (OTC PINK: RHCO), a Venture Capital Corporation active in the Fintech, Online Payment, and E-commerce industries shared exciting results for the period ending December 31, 2022. With revenues up 1,414%, not investing in the company appears to be something you would regret. We analyze for you why these results are outstanding and why investing in the company should be more than just an idea.
Company Overview
Listed venture capital company Readen Holding (OTC: RHCO) has been in operation for more than 30 years. The company, which has its headquarters in Singapore, is up against stiff opposition. With a global market share of 55.3% for e-commerce in 2019, Asia Pacific is the market leader and is expected to grow at the fastest rate going forward. The regional market is anticipated to grow fully as a result of the increase in internet users and the growing preference among companies to conduct business through the B2B e-commerce platform. It may be viewed as a burden by many businesses, but Readen Holding chose to use the market’s momentum to drive its growth, so it doesn’t have any impact on the company’s operations. The company in Singapore will have a challenging task to overcome the fierce competition. With a 55.3% global market share in 2019, Asia Pacific was the market leader for e-commerce, and during the forecasted period we mentioned earlier, the region is anticipated to grow at the fastest rate. The growth of the regional market is anticipated to be driven by the expansion of infrastructure facilities, the increase in internet users, and the growing preference among businesses for conducting business through B2B e-commerce platforms.
Financial Statements
Readen Holding witnessed significant growth, shown in its filing of December 31, 2022. The company marked revenues up 152% and earnings up 1,414%. These results are boosted thanks to Oke Partners and Oke Club, which brought significant income. More revenue was returned thanks to the ease in Covid restrictions relaxing in Q4 2022, bringing travel and retail sectors back on track to normal.
Oke Club’s paid membership grew subsequently thanks to the resume of traveling, while Oke Partners saw growth in members and merchants, which has increased the consumer spending through OkeApp.
In the meantime, the company’s B2C e-commerce platform named Neckermann Direct, contributed profits significantly. The 70-year-old Neckermann Direct, one of the most recognizable retail brands in Europe, was brought back to life by RHCO last year, becoming a leader in global e-commerce and offering a platform for Asian vendors and goods to enter the European market. As e-commerce behemoth Amazon blocked a number of Chinese merchant accounts and forced many Chinese businesses to look for alternative direct selling channels, the company was able to seize the market opportunity. In an effort to bridge the gap between European customers and Asian merchants, Neckermann Direct welcomes cross-border Asian merchants to sell their products directly to customers in Europe. The company has already added more than 150,000 products online. As a result, sales on the Neckermann Direct platform have increased dramatically.
“The management team of RHCO is thrilled to present our stockholders this good news at the beginning of 2023. For many companies, the past two years have been very difficult due to Covid situations. Our Company managed to keep on building, developing and exploring under the same circumstances, because we always believe in the future of Fintech and E-Commerce and would not give in easily. This profitable Q4 2022 was the result of our hard work and strong resilience. Our team has a high spirit, and we expect to sustain the percentage of growth in revenue and profit for the next quarter.”
Richard Klitsie, CEO of RHCO
In numbers, the company had $1M in total current assets and $20.5M in total assets ($12.2M in goodwill, $2.5M investment in Angelo Mermer, and $3.7M in loan receivables). Readen Holding generated $4.3M in revenue, up 152% compared to the previous quarter, $1,6M in gross profit, and a net income of $822k, up $1,414% compared to the last quarter. Operating expenses augmented too to reach $680k, but it is not a worry because this data is absorbed by the company’s profit.
Thanks to this release, the stock price was up 12.6% to reach $0.04, with a 38% peak early in the morning. YoY, the company’s stock price remained relatively steady, with a 52-week range variating between $0.016 to $0.07. With the company’s operations ramping up, Readen’s market cap appears to be more and more undervalued. Investors should definitely consider investing Readen Holding as the board aims to keep constant growth.
Bottom Line
Readen Holding (OTC: RHCO)’s road to success isn’t a secret anymore, and we highlighted the company’s achievements several times. Its growth is translated in 3 to 4 digits per quarter, and it already reports a positive income. How many tech companies show positive growth in every aspect?
Marc has been involved in the Stock Market Media Industry for the last +4 years. After obtaining a college degree in engineering in France, he moved to Canada, where he created Money,eh?, a personal finance website. He then contributed to building Guerilla Capital, a Capital Markets company and FirstPhase Media where he is head of research. At10xAlerts, he writes articles and conducts interviews on many sectors, including technology, metals & mining markets.