JMU Hopes to Cut Losses, Transition From B2B E-commerce
The stock in JMU Ltd. (Nasdaq: JMU) closed up 1 percent Thursday in New York, at $1.11 per share, despite reported revenue decline and mounting losses.
The B2B e-commerce platform, based in Shanghai, provides integrated services to suppliers and customers in the foodservice industry. JMU said today that its revenue in the first half of 2019 fell to $762,000, down 96 percent from $19.5 million a year ago.
"Due to the increasing competition in the market, we have gradually exited from our costly and loss-making B2B business while actively seeking a new direction for the development of our business,” Hua Zhou, the chairwoman and chief executive of JMU, said in a statement today.
She added, “Our efforts have been proven to be effective as we significantly reduced our cost and net loss for the first half of 2019 despite the decreased revenue.”
Costs in JMU for the six months through June dropped 96 percent to $723, 000. Expenses in sales and marketing, as well as in general and administrative departments decreased 90 and 63 percent, respectively, according to the report.
Going forward, JMU said it plans on looking for new business partners and opportunities to “narrow our losses ” according to Zhou. In order to cut its losses, the company said it plans to enhance customer experience, upgrade infrastructure and increase service offerings.
JMU also announced changes to the board and management team on Thursday. Xiaoxia Zhu stepped down as the chief executive director and chairperson of the board due to personal reasons. Feng Pan resigned as a director of the company due to personal reasons. Haohan Xu and Longming Wu will serve as new directors of the company.
(By Anthony Russo)