Moxian Inc (MOXC)

[NetworkNewsWire]

MOXC Shifts to Joint Venture Strategy in Effort to Penetrate Key Markets in China

- Crystal Equity Research, encouraged by new joint venture strategy, forecasts rising revenue for Moxian (http://nnw.fm/8GWgi)
- Key to market growth is UnionPay’s payment module in Moxian+ app
- MOXC now targets larger $2-4 million businesses for Moxian+ Merchant app sales

Moxian, Inc. (NASDAQ: MOXC) has changed its business strategy to grow more quickly within China, targeting the nation’s top four markets while also beginning to utilize a joint venture strategy in order to penetrate these markets more efficiently with the aid of entrenched businesses. MOXC’s marketing and sales team members are now acting as sales managers, working with independent agents to secure higher volume.

MOXC, an integrated platform operator focused on processing digital payments, is converting its unpaid platforms to paid platforms. Key to its new strategy is MOXC’s relationship with China’s dominant payment processor, UnionPay. A UnionPay processing module on the Moxian+ platform is critical in allowing MOXC to attract new joint venture partners in China and neighboring Asian markets. Now, the Moxian+ Merchant platform offers digital processing modules for UnionPay, Alipay, and WeChatPay.

“We anticipate revising our revenue estimates upward when Moxian confirms the formalization of the joint venture with Shewn International,” the Crystal Equity Research report said. It now projects MOXC revenues at $2.3 million by FY2018.

Crystal Equity Research sees the joint ventures as strengthening and making more efficient Moxian’s plans to penetrate the markets of Beijing, Shanghai, Shenzhen, and Guangzhou. “We view it as an important catalyst for valuation,” the report said. It added that such joint ventures could raise investor confidence in the company and result in higher valuation of shares.

The joint venture with Shewn International Group of Shanghai gives MOXC a new revenue stream from a percentage earned on all its processing of payments from Shewn. Further, Crystal Equity Research notes that MOXC is burning less cash with the new joint venture strategy. It noted that the company used only $1.3 million in cash during the quarter ended June 2017 versus the $5.4 million the company spent in the prior quarter. The reduction was attributed to reduced selling, general and administrative (SG&A) costs with the new tactics.

Shewn International, in addition to its fine wine sales in wine clubs, also plans to open as many as 500,000 new vending machines across China to sell its fine wines. Affluent residents of luxury apartment complexes, Shewn believes, will react positively to the convenience of buying its upscale wines, offered at the correct temperature and humidity, from these machines.

For more information, visit the company’s website at www.Moxian.com