publishes full year and fourth quarter 2019 financial results; divestiture of Bebitus to be explored; change in management board related to Chinese business

• Revenues of EUR 23.0 million in Q4 2019; +24.5% revenue increase compared to Q3 2019 due to strong sales events in China; revenues of EUR 82.3 million in FY 2019
• Adj. EBIT EUR -1.8 (-7.8% margin) in Q4 2019; positive effect from VAT correction of EUR 1.7 million; adj. EBIT EUR -13.8 (-16.8% margin) in FY 2019
• Total cash available EUR 8.4 million as of Dec 31, 2019; lower cash burn of EUR 1.3 million in Q4 2019 due to better operating result, VAT correction and lower net working capital
• Successful completion of capital increase in February 2020; gross issue

Revenue growth in China due to sales events in Q4 2019; stable revenues in Europe

Revenues of the China business in FY 2019 amounted to EUR 51.3 million (2018: EUR 56.7 million). In Q4 2019, the business in China grew 45.8% to EUR 15.6 million compared to Q3 2019 (EUR 10.7 million) but was below the Group's original targets. The reasons for this were, among others, the later opening of the second bonded warehouse in China, setting up a marketing cooperation with the Langtao company, and a lower purchasing volume for liquidity reasons. Revenues in China accounted for 62% of Group revenues in 2019.
Revenues in the DACH region (Germany, Austria and Switzerland) amount

Improved adj. EBIT and lower cash burn in Q4 2019; positive impact of VAT correction for China business

The Group generated an adj. EBIT of EUR -1.8 million in Q4 2019, which corresponds to an adj. EBIT margin of -7.8%. In FY 2019, achieved an adj. EBIT of EUR -13.8 million (-16.8% adj. EBIT margin). This is a significant improvement compared to the previous quarter (Q3 2019: EUR -4.7 million and -25.5% adj. EBIT margin) due to better operational performance and the recorded Value Added Tax (VAT) correction of EUR 1.7 million (adj. EBIT effect EUR 1.4 million) related to deliveries by to Chinese customers via so-called freight forwarders in the previous years.

Completion of subscription rights capital increase in February 2020 with gross issue proceeds of EUR 6.2 million; cooperation with Bodyguard and Holland at Home has completed its subscription rights capital increase in February 2020 with gross issue proceeds of EUR 6.2 million. The proceeds shall be used to strengthen the Group’s liquidity position in order to cover negative cash flows until reaching break-even on basis of adj. EBIT in Q1 2021, as well as to invest in efficiency and growth projects. In order to generate additional revenues from the Chinese business in 2020, the Company has recently signed two term sheets to cooperate with the two companies Holland at Home B.V. (“Holland at Home”) and bodyguardpharm GmbH (“Bodygua

Significant revenue growth and improvement in adj. EBIT expected for 2020; break-even on the basis of adj. EBIT targeted for Q1 2021; potential divestiture of Bebitus Shops to be explored

For 2020, expects to achieve significant double-digit revenue growth and a significant improvement of adjusted EBIT. This shall be achieved among others through the cooperations with Bodyguard and Holland at Home as well as other efficiency projects such as the move of the warehouse in Germany and the outsourcing of the IT shop system. Due to lower than targeted revenues for the Chinese market in 2019 and the associated lower starting point for 2020,'s goal of reaching break-even at the beginning of 2020 on the basis of adjusted EBIT changed to Q1 2021. To support that

Sean (Xiaowei) Wei appointed to Management Board

The Supervisory Board of the Company appointed Mr. Xiaowei (Sean) Wei as member to the Management Board of the Company. In his function, Mr. Wei is responsible for new business in China, driving further growth projects in the Company’s attractive and important Chinese market. Mr. Wei has many years of experience in e-commerce in China and has been appointed for 3 years.
Chairman of the Supervisory Board Willi Schwerdtle comments on the appointment Sean Wei as management board member: “With Mr. Wei’s appointment, we have gained a very experienced manager with pronounced Chinese e

Select key figures for the fourth quarter 2019 and financial year 2019

Q4 2019Q3 2019Q4 201820192018
Revenues (EUR million)23.018.526.382.3104.8
Adjusted EBIT (EUR million)-1.8-4.7-2.5-13.8-18.5
in % of revenues-7.8%-25.5%-9.7%-16.8%-17.8%
Total cash available (at the end of the period)8.49.711.18.4%11.1