Logistic gold rush in China., page-23

I will put my hand up for that mix up, sorry. I was using receipts, not revenue for my quarterly breakdowns, but did not change the wording of revenue/operating margin that I had copied from NavyDiver's earlier analysis of the annual reports.

There was indeed $2.74m of new revenue generated in H1FY17. The $4.41m of cash collected in this half would largely have been generated in FY16. The SOEs all have 90-120 day payment terms with SMA, so all cash collections are deferred 1-2 quarters, which is one of the main reasons why receipts vs COGS often looked so bad during the hyper-expansion period.

I have to agree there is a lot of rubbish posted on these threads. A number of posters seem to have taken a firm disliking to each other and now blatantly antagonising comments infect the majority of posts here. Both sides of the isle are guilty of this. But there is also some valid research and a lot of interesting, if somewhat off-topic, articles.

I personally just wanted to start a discussion on the company's current status, and as there were already too many threads as it is, didn't bother creating a new one. All I will add to the subject of logistics is that it was a minor part (10%) of SMA in FY2016 and it appears that the company is in fact moving away from it in FY2017.

It also appears the big drop in logistics revenue - if you are talking about between Q2 & Q3 FY16 - was due to the company making a "significant sale" during Q2, which seems to have been a one-off. 3rd Party Apps & Subscriptions both look to be performing well, the company just needs to get its other expenses under control.

Here are some snippets from the Q1 report. I can't recall seeing any official mention of logistics since, suggesting SMA are no longer focusing on it:

"The company’s mix of products in FY2016 was 10% Logistics mobile and internet software, 74% 3rd Party App billing and 16% Subscription billing whilst in FY2017 the company is targeting for contribution of revenue to be more balanced between 3rd Party App billing and Subscription billing with a growing contribution from e-Commerce and other products and services."