Jason. I found the news that you were talking about. It is exactly about Financial Statement as of 30/06/2015. If you click into the thread, you will read the whole story. As of 30/06/2015, we all know that, the turnover is up by 28 % and gross profit up by 82%. However, the company is still under a strong stage of expansion and development and it has to invest into marketing, sales, logistics etc. That is why, the Selling and Distribution expenses have gone up by more than 100%, so as Admin. That is the reason why the total profit is down 71 %. But these expenses necessary for long term development and it reflects the company's strategy stated in the previous announcement.
Also, the company is developing a new cloud-based POS with UNION PAY. This project requires large amount of initial investment and the cost of the development is split between UNION PAY and WUXIAN. I think, the expansion in selling and distribution and admin expense is strongly related to the project with UNION PAY. I have personally contacted Wuxian 99 about the status of the development and in an email, they replied that, the POS with UNION PAY is on track, they are testing and implementing it before introduction into the market. I expect the POS with UNION PAY will be up and running in the month of OCT 15.
So, in a nutshell, the half year report is within market anticipation.
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