This Rise Compared to 2013/14

Whilst I jumped back in earlier in the rise and still hold I must admit I did not notice when jumping back on board that the current terminology and difference in revenue generation from China is quite interesting and makes me curious about how the quarterly will look.

Most notable is that this current rapid growth in Smarttrans revenue updates refers to SmartPay online platform rather then Mylife Revenues generated in the 2013/14 growth phase. What does this mean -

From what I understand, Mylife was a JV with Zhenya which generated revenues via www.mylifeonline.cn. This revenue generated in 2013/14 was a 50/50 split with Zhenya and therefore Smarttrans only received 50% of the net revenues. Of course we know the story where it was overshadowed by Bitcoin and ultimately saw revenue drop right off. Reference to the mylifeonline.cn connection can be found at - http://www.asx.com.au/asxpdf/20120130/pdf/423zzjrqdlh1nl.pdf.

This time around they refer to SmartPay platform and revenues are generated via their other website platform mylife365.cn which is a partnership with China Mobile. I cannot see any link to the JV at all with this platform and website. Also the information to date and half yearly all supports that SMA receives all revenue rather than 50%.

Recurring revenues, lower cost of retention, no JV arrangement, 70% retention rates, new billing agreements and province expansion....all point to a strong positive trend. Quarterly will be very interesting to see if they have finally got the cashflow heading in the right direction. Still a high market cap for current revenues but if this is the real deal this time then the market cap and further increases can be justified. Last time it hit close to $100m market cap at its peak. Next 2 quarterlies will paint a clearer picture and potentially reward risk. Interesting times