Finance

Facilitating access to finance: alternative data is the key

Published

2 years ago

June 5, 2023

Despite the rapid expansion of financial services, a significant proportion of individuals and small businesses remain financially underserved. This group encompasses “thin file” customers, who have limited or no credit history, women, small and medium enterprises
(SMEs), and young demographics in emerging economies.

The key to ensuring fair and easy access to finance for these populations is through ethical acquisition and utilisation of alternative data, such as behaviour on previous mobile or small loans, telecom and utility data, data on related parties and self-reported
data, all ideally obtainable through credit bureaus. Coupling this with financial education initiatives for the underbanked populations and the development of unbiased predictive models, we can help to significantly enhance financial inclusion and expand access
to finance.

Why do emerging markets need greater access to finance?

57% of the African population don’t have access to a traditional bank account and large numbers of consumers can’t provide
the financial data required for a credit score. In most cases, women face further barriers when it comes to accessing loans. These populations often lack access to financial services because they don’t have enough formal data, they face bias, or they are discriminated
against.

SMEs form the backbone of the global business landscape, representing about
90% of businesses. Unfortunately, they are also less likely to have access to formal bank loans.

With rising inflation and the global economic challenges of recent years, countries should be putting the necessary measures in place to protect their economy. Providing individuals and small companies with easier access to finance means they can grow their
businesses and actively participate in the local economy, creating a healthier and stronger financial ecosystem.

Power of alternative data

Credit scores have traditionally been derived from data obtained from regular consumer bank transactions or prior payment records. Those without these financial facilities are inadvertently disadvantaged when applying for loans.

However, a wealth of alternative data can bridge this gap. The scope extends from someone’s ability to pay their phone and utility bills to data from fintech apps and even social media, each serving as a valuable indicator for lenders to determine loan eligibility.

We’ve already seen considerable progress with the use of mobile payment apps to provide this crucial data needed to make informed lending decisions. In Kenya, for example, financial inclusion has increased from

26% in 2006 to 83% in 2021 with the use of mobile banking apps as a gateway to financial inclusion. These methods can be used as an example to other countries to demonstrate how tapping into alternative data can widen access to finance in emerging economies.

Communication is key

Clear communication between credit bureaus and regulatory bodies is crucial to ensure the correct regulatory framework is in place to allow alternative data to be shared. There also need to be regulations in place to guarantee that alternative data is used
and shared in a safe and ethical manner. Through better communication between financial institutions and regulatory bodies, people’s data can be used in the right way to allow lenders to make informed lending decisions.

Harnessing the power of technology

With such a high volume of alternative data available, financial institutions also need the correct systems in place to organise and analyse data points in an efficient and accurate manner.

One way of doing this is through AI and machine learning models. They can be used to analyse and extract actionable insights from a wide range of unstructured data points drawn from alternative data sources. Moreover, financial institutions need to establish
robust model management frameworks to oversee, control and deploy a wide range of algorithms constructed on alternative data.

Empowering consumers through financial education

Organising financial education programmes designed specifically for underserved communities can enlighten consumers about their options and map a path to financial inclusion. With growing choices for consumers who have limited credit data, it is the responsibility
of governments and financial institutions to provide the correct information and advice to allow consumers to develop the skills and knowledge to make informed decisions.

The use of alternative data, accessible through credit bureaus, is a powerful tool to facilitate access to finance globally. However, there are several steps which need to be taken to ensure this data is securely collected through credit bureaus, correctly
harnessed and shared only with the right parties. By combining the latest AI and machine learning models with effective regulatory communication and education programmes for consumers, financial institutions can use this data more effectively to increase financial
inclusion and create more resilient economies.

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Finance

Vt. House Democrats to provide education finance update

Published

5 hours ago

March 27, 2025

Press Room

Vt. House Democrats to provide education finance update

MONTPELIER, Vt. (WCAX) – Vermont House Democrats are gathering at the statehouse on Thursday with updates on education finance policy.

Education funding is one of the main topics in this session after a double-digit property tax increase last year.

Democrats will gather at 10:30 on Thursday morning. You can watch it live here.

Finance

ALUULA Reports First Quarter 2025 Financial Results

Published

16 hours ago

March 26, 2025

Press Room

ALUULA Reports First Quarter 2025 Financial Results

Victoria, British Columbia–(Newsfile Corp. – March 26, 2025) – ALUULA Composites .Inc. (TSXV: AUUA) (“ALUULA” or the “Company“) today reported its financial results for the three-month period ended January 31, 2025 (“Q1 2025“). All currency amounts noted are in Canadian dollars.

Building on momentum gained in fiscal 2024, the Company announces progression against strategic initiatives in Q1 2025. These initiatives include: closing an oversubscribed rights offering for gross proceeds of $2,506,156, realizing continued customer diversification, reporting gross margins at the top end of expectation, progressing against the expansion of manufacturing capabilities at a wider width and continuing to professionalize and strengthen the team.

The first quarter of 2025 saw a decrease in sales for ALUULA driven by the challenges that remain for the windsport market, which the Company believes can be attributed to post-pandemic inventory overstocking. While the windsport vertical market, as the first market entered, has underpinned the Company’s historical growth, and remains an important area for ALUULA, the Company believes that future growth opportunities will be driven by markets that have both higher growth rates and larger total addressable markets.

“Our Q1 2025 results underpinned the necessity of commercial diversification for ALUULA. The Company has been focused on bringing our unique composite textiles into new markets and essential to this is that we have the team required to execute our go to market strategies. This requires both driving revenue and ensuring we can deliver the quality products to support that revenue,” said Sage Berryman, President & CEO.

Berryman added, “With this, we are pleased to announce that Sven Sandahl is joining ALUULA as Chief Commercial Officer to help drive commercial and brand value. We are also pleased to welcome Peter Reid who is joining as Director of Manufacturing and Materials Engineering to help the continual improvement in our manufacturing process and quality of products. 2025 is a key year for ALUULA as we move from our internally focused execution to being more active in driving the growth of the business.”

As a seasoned entrepreneur and executive passionate about sustainability, Sven Sandahl has held many leadership roles in performance outdoor companies focused on circularity. Recently Sven helped launch ReJu, an international textile recycling company, as well as Cake, Karun World and Houdini Sportswear amongst others. He also has deep experience in building brand value and driving growth for ingredient brands including Cohesive, MIPS AB in their essential pre-IPO growth phase (where he advanced the uptake and understanding of this important helmet safety technology) and RECCO Systems Inc. Sven and his team will be responsible for leading the evolution of ALUULA’s brand and partner relations, helping to drive the growth for the business.

Peter Reid is a professional engineer who brings extensive experience in composites and materials engineering. Having worked in leadership roles at a number of companies including Mustang Survival and Arc’teryx, he and his team will work closely with the Company’s research and development team with a focus on the continuous improvement of ALUULA’s products and processes.

Key Q1 2025 Highlights

Sales: the Company progressed against its customer diversification goals by:
- Reducing sales concentration with the windsport vertical market from 89% in Q1 2024 to 80% in Q1 2025.
- Increasing the number of customers ordering material in prototype size batches by 10% in Q1 2025 compared to Q1 2025 with 95% of these orders came from non-windsport customers in Q1 2025 vs. 61% in Q1 2024.
- The importance of the Company’s initiative to diversify its customer base was highlighted in Q1 2025 as sales decreased by 37% to $1,261,529 from $1,997,279 in Q1 2024. This decrease was primarily due to the windsport vertical market which continues to recover from post pandemic overstocking issues that has altered customer ordering patterns.
Gross Margins: the Company reported gross margins of 45% in Q1 2025, which is at the top end of its expected range. Q1 2025 gross margins were consistent with Q1 2024.
Operating expenses were $819,530 in Q1 2025 compared to $683,032 in Q1 2024 representing a quarter over quarter increase of $136,498. The increase is primarily due to higher salaries and research & development costs as the Company invests in recruiting key hires and expanding manufacturing capabilities to a wider width, both of which are key to achieving its growth objectives.
Net and comprehensive loss from Ocean Rodeo’s discontinued operations was $5,395 in Q1 2025 compared to a net and comprehensive loss of $346,557 in Q1 2024 representing a quarter over quarter decrease of $341,162. This decrease is a direct result of cost cutting measures implemented in April 2024 after the decision was made to discontinue Ocean Rodeo’s operations.
Increase in cash and cash equivalents: the Company reported an increase in cash and cash equivalents of $2,061,967 in Q1 2025 compared to $412,459 in Q1 2024. The increase in cash and cash equivalents is due to the Company’s successful completion of an oversubscribed rights offering and sale of non-core assets which will provide sufficient working capital to execute on the fiscal 2025 plan.

Outlook

The Company continues to work with its growing list of brand partners, developing products that are lighter, stronger, and recycle-ready. These partnerships are built on the mutual understanding that performance and circularity can be synonymous in the outdoor industry and beyond. The products that are born from these partnerships work to change the industry for the better.

The windsports and performance outdoor categories are still the core drivers of ALUULA’s growth as more new companies move from concept into commercialization launching new ALUULA enabled products in these areas. Collaborative research and development programs with other industrial partners, such as Michelin Inflatable Solutions and AirSeas, continue to advance the materials’ development as these opportunities move closer to commercial viability.

Product innovation, strength, weight, and circularity are key areas of focus for ALUULA and its brand partners. Focusing on these areas, as well as continued improvements to the patented manufacturing process, will continue to improve efficiencies and profitability. The Company continues to focus on stabilizing the corporate foundation to enable a strong base for future sales pipeline, revenue and gross margin growth.

Financial Statements and Management’s Discussion and Analysis

This earnings press release should be read in conjunction with ALUULA’s unaudited interim condensed consolidated financial statements for the three months ended January 31, 2025 and the related management discussion and analysis, which can be found on ALUULA’s website and its issuer profile on the System for Electronic Document Analysis and Retrieval Plus at www.sedarplus.ca.

About ALUULA Composites

ALUULA is an ultra-light, high performance and recycle-ready composite materials brand that enhances the performance of outdoor gear. Proudly owned and manufactured on the Canadian west coast, ALUULA’s innovation is driven by a deep understanding that equipment does not need to sacrifice performance for sustainability. ALUULA’s materials are known for their unique construction capabilities and their ability to make products lighter, stronger, and more sustainable.

aluula.com | (TSXV: AUUA)

On behalf of the Board of Directors,
Sage Berryman
Chief Executive Officer
1-888-724-2470

For ALUULA investor inquiries, please contact:

1-888-724-2470, ext. 4
IR@aluula.com

For ALUULA media relations, please contact:

media@aluula.com

ALUULA’s Brand Partners

The term “brand partners” does not refer to formal partnerships with our customers. The term refers to marketing relationships with our customers who use ALUULA’s technology as a brand ingredient in their products.

TSX Venture Exchange

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

The information in this news release includes certain information and statements about management’s view of future events, expectations, plans, and prospects that constitute forward-looking statements, including, but not limited to: use of proceeds from the rights offering; the Company’s list of brand partners growing; the Company’s advancement of its materials development; and improved efficiencies and profitability. These statements are based on assumptions subject to significant risks and uncertainties as described in the Company’s management discussion and analysis. Because of these risks and uncertainties and as a result of a variety of factors, including the timing and receipt of all applicable regulatory, corporate third-party approvals, the actual results, expectations, achievements, or performance may differ materially from those anticipated and indicated by these forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246224

Finance

Bairong Inc. Announces 2024 Annual Financial Results

Published

1 day ago

March 26, 2025

Press Room

Bairong Inc. Announces 2024 Annual Financial Results

Solid Revenue Growth Coupled with High Gross Profit Margin (73%) and Non-IFRS Profit (RMB 376 Million)

BEIJING, March 26, 2025 /PRNewswire/ — Bairong Inc. (the “Company”, “we” , “us” or “our” ; HKEX: 6608), a leading cloud-based AI turnkey service provider, today announced the consolidated results of the Company for the year ended December 31, 2024.

Mr. Zhang Shaofeng, our founder, chief executive officer and chairman of the Board, commented:
“As a leading cloud-based AI turnkey service provider, Bairong achieved revenue growth and sustained profitability in 2024 when the industry as a whole was weak. We also generated an operating cash flow of RMB 303 million in 2024, which fully demonstrates the resilience of our business. In terms of technology and products, our VoiceGPT continues to iterate rapidly, and at the same time, new products such as the digital human All – in – One Machine AvatarGPT and Cybotstar Agent Platform have been further implemented. In 2025, we will increase our investment in new businesses and new scenarios, especially in the two fields of Pan-financial AI and Pan-industry AI, so as to achieve a vertical and horizontal business layout supported by AGI.”

Financial Summary

	Year ended December 31, Advertisement
	2024	2023	Change
	(RMB in thousands, except percentages)

Revenue Advertisement	2,929,267	2,680,915	9 %
Model as a service (“MaaS“)	932,473 Advertisement	891,248	5 %
Business as a service (“BaaS“)	1,996,794	1,789,667 Advertisement	12 %
BaaS – Financial Scenario	1,410,695	1,184,728	19 % Advertisement
BaaS – Insurance Scenario	586,099	604,939	(3 %)
Gross profit Advertisement	2,141,712	1,954,532	10 %
Operating profit	285,234 Advertisement	346,886	(18 %)
Profit for the period	266,029	335,259 Advertisement	(21 %)

Non-IFRS measures
Non-IFRS profit for the period	376,051	375,064 Advertisement	—
Non-IFRS EBITDA	486,176	463,782	5 % Advertisement

Revenue

Our total revenue increased by 9% from RMB2,680.92 million for the year ended December 31, 2023 to RMB2,929.27 million for the year ended December 31, 2024, primarily attributable to our enhanced capabilities of providing products and services despite a challenging macroeconomic and consumption environment.

For the year ended December 31, 2024, our MaaS business reported revenue of RMB932.47 million, representing an increase of 5% year-over-year. During the Reporting Period, the number of Key Clients reached 211, while average revenue per Key Client was RMB3.37 million. Our Key Client retention rate was 97%.

Key metrics of MaaS

	Year ended December 31, Advertisement
	2024	2023	Change (%)
	(unaudited)	(unaudited) Advertisement
	(RMB in thousands, except percentages)

Revenue from MaaS	932,473	891,248	5 Advertisement
Revenue from Key Clients^(Note)	711,328	744,489	(4)
Number of Key Clients Advertisement	211	213	(1)
Average revenue per Key Client	3,371 Advertisement	3,495	(4)
Retention rate of Key Clients	97 %	99 % Advertisement	(2) pct

Note:“Key Clients” are defined as paying clients that each contributes more than RMB300,000 total revenue to the Company year-to-date.

In 2024, our BaaS – Financial Scenario business reported revenue of RMB1,410.70 million, representing a year-over-year increase of 19% from RMB1,184.73 million for the year ended December 31, 2023. During the Reporting Period, we maintained growth against the industry’s downturn, with our brand gaining increasing recognition from more and more partners. A significant number of institutions prioritize choosing us as their partner of choice, indicating that the brand effect has been established.

In 2024, our BaaS – Insurance Scenario reported revenue decrease by 3% year-over-year to RMB586.10 million. Total premiums increased by 63% year-over-year to RMB5,442.43 million, with first year premiums increasing by 86% year-over-year to RMB3,641.10 million and renewal premiums increasing by 31% year-over-year to RMB1,801.34 million. The persistency rate of life insurance premiums continued to exceed 90%, ranking among the top in the industry.

Key metrics of BaaS – Insurance Scenario

	Year ended December 31,
	2024	2023	Change (%) Advertisement
	(unaudited)	(unaudited)
	(RMB in thousands, except percentages)

Revenue from BaaS – Insurance Scenario	586,099 Advertisement	604,939	(3)
Revenue from first year premiums	486,964	508,207 Advertisement	(4)
First year premiums	3,641,095	1,952,887	86 Advertisement
Revenue from renewal premiums	99,136	96,732	2
Renewal premiums Advertisement	1,801,335	1,377,605	31

Cost of sales

Our cost of sales increased by 8% from RMB726.38 million for the year ended December 31, 2023 to RMB787.56 million for the year ended December 31, 2024, in line with the growth of our business scale.

Gross profit and gross margin

As a result of the foregoing, the Group’s gross profit increased by 10% from RMB1,954.53 million for the year ended December 31, 2023 to RMB2,141.71 million for the year ended December 31, 2024. The Group’s gross margin were approximately 73% for both the year ended December 31, 2024 and 2023.

Research and development expenses

The Group’s research and development expenses increased by 34% from RMB378.79 million for the year ended December 31, 2023 to RMB509.29 million for the year ended December 31, 2024, primarily attributable to the increase in the staff costs of our research and development personnel to support product offerings and technology development about various AI application technology, algorithm-driven machine learning platform and underlying database performance. Research and development expenses as a percentage of revenue increased by 3pct to 17%.

General and administrative expenses

The Group’s general and administrative expenses increased by 26% from RMB259.28 million for the year ended December 31, 2023 to RMB327.72 million for the year ended December 31, 2024, primarily attributable to the increase in share-based compensation expenses from the grant of share options and restricted share units by the Company during the year ended December 31, 2024. General and administrative expenses as a percentage of revenue increased slightly by 1pct to 11%.

Sales and marketing expenses

Our sales and marketing expenses increased by 4% from RMB1,072.99 million for the year ended December 31, 2023 to RMB1,118.94 million for the year ended December 31, 2024, primarily due to an increase of RMB74.62 million of promotion, advertising, information technology services and other related expenses, which was mainly due to the increased branding and business promotion to enhance our brand recognition and our continuous efforts to obtain high-quality traffic to improve conversion efficiency. Sales and marketing expenses as a percentage of revenue decreased by 2pct to 38%.

Other income

Our other income decreased by 28% from RMB183.01 million for the year ended December 31, 2023 to RMB130.90 million for the year ended December 31, 2024. This is primarily due to a decrease of RMB37.00 million of government grants.

Profit for the year

As a result of the foregoing, the Group’s profit for the year decreased by 21% from RMB335.26 million for the year ended December 31, 2023 to RMB266.03 million for the year ended December 31, 2024.

Cash, cash equivalents and time deposits

The Group had cash and cash equivalents and time deposits of RMB3,176.39 million and RMB3,301.84 million as at December 31, 2024 and December 31, 2023, respectively.

Purchase, sale or redemption of the Company’s listed securities

During the Reporting Period, the Company repurchased a total of 25,490,000 Class B Shares on the Stock Exchange at an aggregate consideration (including transaction cost) of approximately HK$237.51 million including expenses. In addition, 10,331,500 Class B Shares were purchased by trustees of the Company‘s share award schemes on the market during the year ended December 31, 2024 to satisfy share awards to be vested in subsequent periods.

Conference Call

Our management will hold a conference call at 17:30p.m. Beijing / Hong Kong Time on Wednesday, March 26, 2025 to discuss the financial results and answer questions from investors and analysts.

For participants who wish to join the call, please complete online registration using the link provided below prior to the scheduled call start time.

Participant Online Registration:
https://webcast.roadshowchina.cn/b2hMVjJranVjWXRBMVR4R1ExcWIwdz09/meet

Dial-in details for the earnings conference call are as follows:

International: +86-23-62737100
Mainland China: 023-63623333/4008-063-263
HK China: +852-30183602/+800-961505

English Dial-in Password: 290534058
Chinese Dial-in Password: 297236054

Please scan the QR code in the poster below to register for the conference:

Bairong Invitation to the 2024 Annual Results Presentation

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.brgroup.com/earnings

About Bairong Inc.

Bairong Inc. is a leading artificial intelligence (AI) technology services company. The Company applies natural language processing (NLP), privacy computing, machine learning, cloud computing and other technologies to provide services to enterprises through model-as-a-service (MaaS) and business-as-a-service (BaaS). The MaaS services leverage discriminant AI to digitalize the know-your-customer (KYC) and know-your-product (KYP) process for enterprises, by analyzing users’ risk, willingness, and capability. The BaaS services use discriminant AI to analyze and stratify users into groups and develops generative AI-powered VoiceGPT using human natural languages to interact with users. The Company’s products and services are widely used by enterprise customers in banking, consumer finance, insurance, e-commerce, automobiles, logistics, ticketing, energy, construction and other industries.

For more information, please visit: http://ir.brgroup.com

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements. These forward-looking statements can be identified by terminologies such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and the negative of these words and other similar expressions or statements. Bairong may also make written or oral forward-looking statements in its periodic reports to the HKEx, in its annual and interim reports to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about Bairong’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statements, including but not limited to the following: Bairong’s strategies, future business development, and financial condition and results of operations; Bairong’s limited operating history; risks associated with the financial service industry, Bairong’s ability to develop and deliver services of high quality and appeal to clients; Bairong’s ability to generate positive cash flow and profits; Bairong’s ability to compete successfully; Bairong’s ability to build its brand and withstand negative publicity; and changes in client demand and government incentives, subsidies, or other favorable government policies. Further information regarding these and other risks is included in Bairong’s filings with the HKEX. All information provided in this press release is as of the date of this press release, and Bairong does not undertake any obligation to update any forward-looking statements, except as required under applicable laws.

For investor inquiries, please contact:
Bairong Inc.
Ms. Sandy Qin, CFA, CMA, FCG HKFCG
Email: ir@brgroup.com

For media inquiries, please contact:
Bairong Inc.
Email: brmarketing@brgroup.com

Cision

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SOURCE Bairong Inc.