Ann: Corporate Presentation, page-27

Growing is exactly right.

It was interesting to get confirmation in the CEO interview that we "clip the ticket" on EVERY sale. This is great confirmation. From the other presentations, it's clear to me that when we win a new contract - we book a new stream of "service" income from Day 1, and then the expectation is that we get the ramp up of volume after, say, 12 months of the store being active (word-of-mouth, repeat customers, etc.).

When we think about it this way, based on the numbers I've been tracking (very loose, and based on Tmall stores) - we had sales of around CNY 280k (Q1), CNY 1.7m (Q2) and we are tracking at around CNY 1.3m (Q3).

If we are forecasting $2.5m revenue in Q3, I'd be suggesting this is majority service fees that would continue (unless we lose a customer). The best thing here is that the business model is like a snowball - once we reach $2.5m of revenue in a quarter, then that's the baseline for the next quarter.

So - new customers = new revenue
No new customers = revenue still continues to grow by virtue of service fees (baseline) and commission on tmall growth (upside).

Only a matter of time before investors figure this out and start trading this on a proper growth multiple.