9 May 2023
Readen Holding Corporation (OTC Pink: RHCO) Announces Filing of March 31, 2023 Financial Statements with OTC Markets, Revenue Up 72%, Earnings Up 129%
READEN HOLDING CORPORATION (OTC PINK: RHCO), a Venture Capital Corporation which is active in the Fintech, Online Payment, and E-commerce industries, today announced the submission of its financial statements for the quarter ending March 2023 to OTC Markets Disclosure & News Service. The Company reported strong financial results, with a revenue increase of 72% as compared to the previous quarter, which reflects a remarkable year-over-year increase of 2,733%. In addition, RHCO achieved a profit of $1,886,501 for this period, representing a significant increase of 129% compared to the last quarter.
The strong performance was primarily driven by the growing activities of Neckermann Direct (www.neckermanndirect.eu), RHCO’s B2C E-commerce Platform. The Company successfully relaunched Neckermann Direct last year, transforming one of the most well-known retail brands in Europe, with a 70-year legacy, into a global E-commerce front-runner. This platform offers a gateway for Asian merchants and products to enter the European markets, and with over 150,000 products available, the platform has experienced tremendous growth in sales. Furthermore, in 2Q 2023, Neckermann Direct started penetrating the American markets, and the Company anticipates further growth in the coming months.
In addition to Neckermann Direct, another key contributor to RHCO in 1Q 2023 was Readies, the eVoucher payment system developed and operated by Ares Technology Limited, a subsidiary of RHCO. Since its initial launch in late 2021, Readies has gained popularity among online merchants across Europe, as it provides a secure and convenient payment platform that meets the needs of both merchants and customers. The Company has announced that a new version of Readies 3.0, which incorporates blockchain technologies, will be launched this month. With advanced security and enhanced features, the Company anticipates a significant increase in the number of merchants and customers utilizing Readies. It is projected that in 12 months, Readies will generate between 50M to 100M EUR in revenue per month, with an average profit margin of 1% to 2%.
The Company also announced that, in accordance with new accounting standards, 10M USD of goodwill was written off in Q1 2023. This non-cash write-off reflects the Company's commitment to complying with the latest accounting regulations and maintaining transparency in its financial reporting. The Company's management team is confident that this adjustment will not have a significant impact on RHCO's long-term financial performance and remains optimistic about the Company's growth prospects.
Richard Klitsie, CEO of RHCO stated, “We are delighted to report that the first quarter of 2023 has yielded outstanding results. After dedicating significant time and resources in Neckermann Direct and Readies, our efforts have finally borne fruit. However, we are not resting on our laurels. Our upcoming release of Readies 3.0 will provide a significant upgrade to the platform and lead to even greater business success. We remain committed to enhancing Neckermann Direct and our next objective in the realm of e-commerce is the relaunch of Two Percent. I believe RHCO is well-positioned for continued growth and success in the coming quarters.”