Market Newsdesk

BEIJING, Nov. 25, 2020 (GLOBE NEWSWIRE) — UP Fintech Holding Limited (NASDAQ: TIGR) (“UP Fintech” or the “Company”), a leading online brokerage firm focusing on global investors, today announced its unaudited financial results for the third quarter ended September 30, 2020.

“I am pleased to announce solid results across multiple lines of our business in the third quarter of 2020,” stated Mr. Wu Tianhua, CEO and Director of UP Fintech. “Total revenues were US$38.0 million, a 148.2% increase from the third quarter of 2019. Our platform attracted a record number of new clients as we continued to innovate and add new features to enhance the user experience. I am delighted to announce that in late October 2020 we opened our one millionth client account, a major milestone for our firm. In the third quarter, we added 46,800 funded accounts, 7X the quarterly growth rate in the same period last year. Total funded accounts reached 214,700, an increase of 110.7% over the same period last year. Clients also continued to allocate more of their assets to our platform, and as of September 30, 2020, total account balance reached US$10.9 billion, a 188.1% year-over-year increase.”

In the third quarter we expanded our brokerage capabilities as we began to facilitate clients trading equities listed in Singapore and Australia. We continued to increase our capability to self-clear U.S. cash equities, and user acquisition in the U.S. & Singapore proceeded at a nice rate. We now have licensed operations in the U.S., Singapore, New Zealand, and Australia and our internationalization strategy is demonstrating good progress; overseas clients now account for 20% of newly funded accounts.

On the investment banking side, spurred by favorable conditions in global capital markets, we continued to assist a wide range of China-based issuers raise financing in the U.S. & Hong Kong. In total, we participated in eight listings in the third quarter. Our ESOP management business continues to grow well, and we added 23 clients in the third quarter. Going forward we expect both of these businesses to further expand their diverse range of clients. We continued to invest in our asset management business and our “Fund Mall” now features over 100 mutual funds from notable global institutions. Finally, our integration of Marsco Investment Corporation (“Marsco”) is proceeding well, and over 10% of client accounts are now having their U.S. cash equities trades cleared by Marsco.

Some adjustments have been made to the board of directors of the Company. Mr. Lei Huang was approved by the board of the Company to serve as a director of the Company, effective on November 23, 2020. Mr. Lei Huang received his Master’s degree in Global Financial Analysis from Bentley University. He now serves as chief executive officer of our subsidiary US Tiger Securities, Inc; previously he has served as chief executive officer of Haitong Securities USA LLC, chief compliance officer & option manager of CICC US Securities, Inc, and regulatory supervisor of the National Association of Securities Dealers. Mr. Vincent Chun Hung Cheung has tendered his resignation as a director of the Company for personal reasons and his resignation was effective on November 23, 2020. He remains CEO and Director of our subsidiary Tiger Brokers (NZ) Limited.

The Company commenced its share repurchase program on April 1, 2020. As of November 24, 2020, the company had repurchased an aggregate of 695,287 ADSs for an approximate consideration of US$2.2 million.

Financial Highlights for Third Quarter 2020

• Total revenues increased 148.2% year-over-year to US$38.0 million.
• Total net revenues increased 151.9% year-over-year to US$35.2 million.
• Operating income increased to US$7.4 million from negative US$2.5 million in the same quarter of last year.
• Non-GAAP operating income increased to US$8.9 million from negative US$1.3 million in the same quarter of last year.
• Net income increased to US$4.9 million from negative US$1.4 million in the same quarter of last year.
• Net income attributable to UP Fintech increased to US$3.8 million from negative US$1.3 million in the same quarter of last year.
• Non-GAAP net income attributable to UP Fintech increased to US$5.3 million, from US$0.7 million in the same quarter of last year.
• A reconciliation of non-GAAP financial metrics to the most comparable GAAP metrics is set forth below.

Operating Highlights
for Third Quarter 2020

• Total account balance increased 188.1% year-over-year to US$10.9 billion.
• Total margin financing and securities lending balance increased 109.4% year-over-year to US$2.0 billion.
• Total number of customers with deposits increased 110.7% year-over-year to 214.7K.

Selected Operating Data for Third Quarter 2020

	As of and for the three months ended
	September 30,		June 30,		September 30,
	2019		2020		2020
In 000’s
Number of customer accounts	606.7		833.9		975.6
Number of customers with deposits	101.9		167.8		214.7
In USD millions
Trading volume	25,760.8		46,755.7		62,810.7
Total account balance	3,789.2		8,283.1		10,915.7

Third Quarter
2020 Financial Results

REVENUES

Total revenues were US$38.0 million, up 148.2% from US$15.3 million in same quarter of last year.

Commissions were US$19.5 million, up 211.9% from US$6.2 million in same quarter of last year, driven by an increase in our user base and market activities.

Financing service fees were US$1.7 million, down 9.3% from US$1.9 million in the same quarter of last year, primarily due to lower interest rates.

Interest income was US$8.1 million, up 36.8% from US$5.9 million in same period of last year. This was primarily due to higher margin and securities lending balance compared to the same quarter of last year.

Other revenues were US$8.8 million, up 585.6% from US$1.3 million in the same quarter of last year, primarily due to higher revenue from IPO distribution services.

Interest expense was US$2.9 million, an increase of 110.1% from US$1.4 million in the same quarter of last year as we have more consolidated account customers.

OPERATING COSTS AND EXPENSES

Total operating costs and expenses were US$27.8 million, an increase of 68.7% from US$16.5 million in the same quarter of last year.

Execution and clearing expenses were US$3.9 million, an increase of 424.6% from US$0.7 million in the same quarter of last year, due to an increase in the number of consolidated accounts as well as an increase in trading volume.

Employee compensation and benefits expenses were US$12.7 million, an increase of 37.1% from US$9.3 million in the same quarter of last year, primarily due to a headcount increase compared to the third quarter of last year.

Occupancy, depreciation, and amortization expenses were US$1.2 million, an increase of 12.9% from US$1.1 million in the same quarter last year, due to the increase in office space and relevant leasehold improvements.

Communication and market data expenses were US$2.5 million, an increase of 52.2% from US$1.6 million in the same quarter last year, due to rapid user growth and expanded market data usage.

Marketing and branding expenses were US$3.7 million, an increase of 146.8% from US$1.5 million in the same quarter last year, as our company had higher user growth this quarter compared to the same period last year.

General and administrative expenses were US$3.8 million, an increase of 67.6% from US$2.3 million in the same quarter last year, primarily due to increased professional services expenses resulting from business expansion.

OPERATING


INCOME


/


LOSS AND NET IN


COM


E/LOSS ATTRIBUTABLE TO UP FINTECH HOLDING LIMITED

Operating income was US$7.4 million, as compared to an operating loss of US$2.5 million in the same quarter of last year. Non-GAAP operating income was US$8.9 million, as compared to a non-GAAP operating loss of US$1.3 million in the same quarter of last year. A reconciliation of non-GAAP financial metrics to the most comparable GAAP metrics is set forth below.

Net income attributable to UP Fintech was US$3.8 million, as compared to a net loss of US$1.3 million in the same quarter of last year. Net income per ADS – diluted was US$0.027, as compared to a net loss per ADS – diluted of US$0.009 in the same quarter of last year.

Non-GAAP net income attributable to UP Fintech, which excludes share-based compensation and impairment loss from equity investments, was US$5.3 million, as compared to a US$0.7 million non-GAAP net income attributable to UP Fintech in the same quarter of last year. Non-GAAP net income per ADS – diluted was US$0.037, as compared to a non-GAAP net income per ADS – diluted of US$0.005 in the same quarter of last year.

For the third quarter of 2020, the Company’s weighted average number of ADSs used in calculating diluted net income per ADS, was 144,070,136. As of September 30, 2020, the Company had a total of 2,114,364,861 Class A and B ordinary shares outstanding, or the equivalent of 140,957,657 ADSs.
        
CERTAIN BALANCE SHEET ITEMS

As of September 30, 2020, the Company’s cash and cash equivalents and term deposits were US$86.9 million, compared to US$125.0 million as of December 31, 2019.

Conference Call Information

UP Fintech’s management will hold an earnings conference call at 8:00 AM on November 25, 2020, U.S. Eastern Time (9:00 PM on November 25, 2020 Beijing/Hong Kong Time).

Participants may register for the conference call by navigating to http://apac.directeventreg.com/registration/event/6670949 . Once preregistration has been completed, participants will receive dial-in numbers, direct event passcode, and registrant ID. The conference ID is: 6670949.

To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your PIN, and you will join the conference instantly.

A telephone replay of the call will be available after the conclusion of the conference call through December 9, 2020.

Dial-in numbers for the replay are as follows:

International: +61-2-8199-0299
Passcode: 6670949

A live and archived webcast of the conference call will be available at https://ir.itiger.com.

Use of non-GAAP Financial Measures

In evaluating our business, we consider and use non-GAAP operating income or loss, non-GAAP net loss or income attributable to UP Fintech Holding Limited and non-GAAP net loss or income per ADS – diluted as supplemental measures to review and assess our operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with the United States Generally Accepted Accounting Principles (“U.S. GAAP”). We define non-GAAP operating income or loss as total net revenue minus total operating costs and expenses, plus shared-based compensation. Non-GAAP net loss or income attributable to UP Fintech Holding Limited is net loss or income attributable to UP Fintech Holding Limited excluding share-based compensation and impairment loss from equity investments. Non-GAAP net loss or income per ADS – diluted is non-GAAP net loss or income attributable to UP Fintech Holding Limited divided by weighted average number of diluted ADSs. Such adjustments have no impact on income tax.

We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. Non-GAAP net loss or income attributable to UP Fintech Holding Limited enables our management to assess our operating results without considering the impact of share-based compensation and impairment loss from equity investments. We also believe that the use of these non-GAAP financial measures facilitates investors’ assessment of our operating performance.

These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as an analytical tool. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expenses that affect our operations. Share-based compensation and impairment loss from equity investment has been and may continue to be incurred in our business and was not reflected in the presentation of non-GAAP net loss or income attributable to UP Fintech Holding Limited. Further, these non-GAAP financial measures may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited.

These non-GAAP financial measures should not be considered in isolation or construed as alternatives to total operating expenses, net loss attributable to UP Fintech Holding Limited or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review these historical non-GAAP financial measures in light of the most directly comparable GAAP measures. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting the usefulness of such measures when analyzing our data comparatively. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

About UP Fintech Holding Limited

UP Fintech Holding Limited is a leading online brokerage firm focusing on global investors. The Company’s proprietary mobile and online trading platform enables investors to trade in equities and other financial instruments on multiple exchanges around the world. The Company offers innovative products and services as well as a superior user experience to customers through its “mobile first” strategy, which enables it to better serve and retain current customers as well as attract new ones. The Company offers customers comprehensive brokerage and value-added services, including trade order placement and execution, margin financing, IPO subscription, ESOP management, investor education, community discussion and customer support. The Company’s proprietary infrastructure and advanced technology are able to support trades across multiple currencies, multiple markets, multiple products, multiple execution venues and multiple clearinghouses.

For more information on the Company, please visit: https://ir.itiger.com.

Safe Harbor Statement

This announcement contains forward−looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward−looking statements can be identified by terminology such as “may,” “might,” “aim,” “likely to,” “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements or expressions. Among other statements, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward−looking statements. The Company may also make written or oral forward−looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”) on Forms 20−F and 6−K, in its annual report 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 the Company’s beliefs 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 statement, including but not limited to the following: the cooperation with Interactive Brokers LLC and Xiaomi Corporation and its affiliates; the Company’s growth strategies; trends and competition in global financial markets; changes in the Company’s revenues and certain cost or expense accounting policies; the effects of the global COVID-19 pandemic; foreign and international regulations and policies and actions by foreign governmental or regulatory authorities that may affect our internationalization strategy; and governmental policies relating to the Company’s industry and general economic conditions in China and other countries. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. Further information regarding these and other risks is included in the Company’s filings with the SEC.

For investor and media inquiries please contact:

Investor Relations Contact

Clark S. Soucy
UP Fintech Holding Limited
Email: [email protected]

UP FINTECH HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in U.S. dollars (“US$”))
	As of December 31,			As of September 30,
	2019			2020
	US$			US$
Assets:
Cash and cash equivalents	59,408,555			61,276,054
Cash-segregated for regulatory purpose	317,915,092			640,420,617
Term deposits	65,601,207			25,663,017
Receivables from customers (net of allowance of nil and US$97,333 as of December 31, 2019 and September 30, 2020)	106,113,896			1,041,064,717
Receivables from brokers, dealers, and clearing organizations:
Related parties	185,047,211			300,608,412
Others	9,274,205			23,403,490
Financial instruments held, at fair value	14,881,240			18,010,384
Prepaid expenses and other current assets	8,020,192			8,756,305
Amounts due from related parties	3,484,434			2,987,404
Total current assets	769,746,032			2,122,190,400
Non-current assets:
Right-of-use assets	5,732,559			7,541,175
Property, equipment and intangible assets, net	9,535,541			9,759,990
Goodwill	2,421,403			2,421,403
Long-term investments	6,017,219			6,564,050
Other non-current assets	3,045,732			4,495,996
Deferred tax assets	12,561,461			11,248,924
Total non-current assets	39,313,915			42,031,538
Total assets	809,059,947			2,164,221,938
Current liabilities:
Payables to customers	512,481,679			980,301,566
Payables to brokers, dealers and clearing organizations:
Related party	53,774,882			839,119,524
Others	1,355,112			78,714,733
Accrued expenses and other current liabilities	16,881,957			23,513,422
Deferred income-current	697,330			872,853
Lease liabilities-current	2,401,566			3,236,366
Total current liabilities	587,592,526			1,925,758,464
Deferred income-non-current	1,552,595			846,215
Lease liabilities-non-current	3,440,092			4,276,392
Deferred tax liabilities	1,449,000			1,449,000
Total liabilities	594,034,213			1,932,330,071
Mezzanine equity:
Redeemable non-controlling interest of sponsored fund	3,084,122			8,488,810
Total Mezzanine equity	3,084,122			8,488,810
Shareholders’ equity:
Class A ordinary shares	17,772			17,872
Class B ordinary shares	3,376			3,376
Additional paid-in capital	285,767,622			290,210,538
Statutory reserve	724,008			724,008
Accumulated deficit	(73,704,745	)		(65,738,775	)
Treasury stock	–			(2,172,819	)
Accumulated other comprehensive (loss)/income	(866,421	)		358,857
Total equity	211,941,612			223,403,057
Total liabilities, mezzanine equity and equity	809,059,947			2,164,221,938

UP FINTECH HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
(All amounts in U.S. dollars (“US$”), except for number of shares (or ADSs) and per share (or ADS) data)
	For the three months ended									For the nine months ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	201 9			20 20			20 20			201 9			20 20
	US$			US$			US$			US$			US$
Revenues:
Commissions	6,244,408			18,839,234			19,476,916			19,371,324			52,589,105
Interest related income
Financing service fees	1,898,908			1,702,733			1,721,846			5,896,442			5,060,775
Interest income	5,907,741			7,057,303			8,083,718			9,886,349			19,914,068
Other revenues	1,277,766			2,497,323			8,760,515			3,538,866			13,763,476
Total revenues	15,328,823			30,096,593			38,042,995			38,692,981			91,327,424
Interest expense	(1,364,008	)		(1,905,671	)		(2,866,323	)		(2,588,199	)		(5,726,209	)
Total Net Revenues	13,964,815			28,190,922			35,176,672			36,104,782			85,601,215
Operating costs and expenses:
Execution and clearing	(738,576	)		(2,890,349	)		(3,874,452	)		(1,618,983	)		(8,589,428	)
Employee compensation and benefits	(9,268,130	)		(11,324,133	)		(12,710,444	)		(25,231,786	)		(34,492,811	)
Occupancy, depreciation and amortization	(1,052,067	)		(1,112,339	)		(1,187,789	)		(2,433,550	)		(3,460,742	)
Communication and market data	(1,626,599	)		(2,109,820	)		(2,475,302	)		(4,560,581	)		(6,414,874	)
Marketing and branding	(1,504,334	)		(2,885,653	)		(3,712,224	)		(5,370,956	)		(9,362,716	)
General and administrative	(2,291,945	)		(2,761,370	)		(3,840,737	)		(6,411,574	)		(8,893,723	)
Total operating costs and expenses	(16,481,651	)		(23,083,66 4	)		(27,800,948	)		(45,627,430	)		(71,214,294	)
Other income/(expense):
Others, net	501,453			(123,254	)		(1,341,968	)		1,491,317			1,315,458
(Loss)/income before income tax	(2,015,383	)		4,984,00 4			6,033,756			(8,031,331	)		15,702,379
Income tax benefits/(expenses)	609,845			(2,419,481	)		(1,175,333	)		2,320,505			(5,552,546	)
Net (loss ) /income	(1,405,538	)		2,564,52 3			4,858,423			(5,710,826	)		10,149,833
Less:
Net (loss)/income attributable to redeemable non-controlling interests	(125,799	)		1,474,312			1,015,266			321,637			2,183,863
Net (loss)/income attributable to UP Fintech Holding Limited	(1,279,739	)		1,090,21 1			3,843,157			(6,032,463	)		7,965,970
Other comprehensive (loss)/ income, net of tax:
Changes in cumulative foreign currency translation adjustment	(2,836,782	)		1,941,865			3,004,576			(2,913,797	)		1,225,278
Total Comprehensive (loss)/income	(4,242,320	)		4,506,388			7,862,999			(8,624,623	)		11,375,111
Net (loss)/income per ordinary share:
Basic	(0.001	)		0.001			0.002			(0.004	)		0.004
Diluted	(0.001	)		0.001			0.002			(0.004	)		0.004
Net (loss)/income per ADS (1 ADS represents 15 Class A ordinary shares):
Basic	(0.009	)		0.008			0.027			(0.056	)		0.056
Diluted	(0.009	)		0.008			0.027			(0.056	)		0.055
Weighted average number of ordinary shares used in calculating net (loss)/income per ordinary share:
Basic	2,102,723,986			2,118,493,263			2,114,362,687			1,629,477,798			2,117,194,830
Diluted	2,102,723,986			2,141,752,437			2,161,052,034			1,629,477,798			2,160,227,581

Reconciliations of Non-GAAP Results of Operations Measures to the Nearest Comparable GAAP Measures
(All amounts in U.S. dollars (“US$”), except for number of ADSs and per ADS data)
	For the three months ended September 30, 2019									For the three months ended June 30, 2020							For the three months ended September 30 , 2020
				non-GAAP								non-GAAP							non-GAAP
	GAAP			Adjustments			non-GAAP			GAAP		Adjustments			non-GAAP		GAAP		Adjustments			non-GAAP
	US$			US$			US$			US$		US$			US$		US$		US$			US$
	Unaudited			Unaudited			Unaudited			Unaudited		Unaudited			Unaudited		Unaudited		Unaudited			Unaudited
(Loss)/Income from operations	(2,516,836	)		1,187,983	(1	)	(1,328,853	)		5,107,25 8		1,734,220	(1	)	6,841,478		7,375,724		1,486,460	(1	)	8,862,184
				1,187,983	(1	)						1,734,220	(1	)					1,486,460	(1	)
				755,524	(2	)						–	(2	)					–	(2	)
Net (loss)/income attributable to UP Fintech Holding Limited	(1,279,739	)		1,943,507			663,768			1,090,21 1		1,734,220			2,824,431		3,843,157		1,486,460			5,329,617
Net (loss)/ income per ADS -diluted	(0.009	)					0.0 05			0.00 8					0.0 20		0.027					0.037
Weighted average number of ADSs used in calculating diluted net (loss)/income per ADS	140,181,599						142,955,907			142,783,496					142,783,496		144,070,136					144,070,136
(1)   Share-based compensation.
(2)   Impairment loss from equity investments

Non-GAAP to GAAP reconciling items have no income tax effect.

SHENZHEN, China, Nov. 25, 2020 (GLOBE NEWSWIRE) — Aurora Mobile Limited (“Aurora Mobile” or the “Company”) (NASDAQ: JG), a leading mobile developer service provider in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 F
inancial Highlights
(SAAS Businesses

^#

only)

• Revenues were RMB65.6 million (US$9.7 million), an increase of 18% year-over-year.
• Gross profit was RMB49.0 million (US$7.2 million), an increase of 16% year-over-year.
• Gross margin was 75%, compared with 76% in the same quarter of 2019.

^#SAAS Businesses include both the Developer Services and Vertical Applications. SAAS Businesses will be the only business remaining starting from the first quarter of 2021.

Third Quarter 2020 Financial Hi
ghlights
(for the Group as
a
whole)

• Revenues were RMB108.6 million (US$16.0 million), a decrease of 46% year-over-year.
• Cost of revenues was RMB57.5 million (US$8.5 million), a decrease of 60% year-over-year.
• Gross profit was RMB51.1 million (US$7.5 million), a decrease of 10% year-over-year.
• Gross margin was 47%, compared with 28% in the same quarter of 2019.
• Total operating expenses were RMB97.7 million (US$14.4 million), a decrease of 12% year-over-year.
• Net loss was RMB43.7 million (US$6.4 million), compared with a net loss of RMB31.7 million for the same period last year.
• Adjusted net loss (non-GAAP) was RMB36.9 million (US$5.4 million), compared with a RMB37.6 million adjusted net loss for the same period last year.
• Adjusted EBITDA (non-GAAP) was negative RMB22.0 million (US$3.2 million), compared with negative RMB26.0 million for the same period last year.

Third Quarter 2020 Operational Highlights

• Number of mobile apps utilizing at least one of the Company’s developer services, or the cumulative app installations, increased to approximately 1,645,000 as of September 30, 2020 from approximately 1,386,000 as of September 30, 2019.
• Number of monthly active unique mobile dev
  ices increased to 1.39 billion in September 2020 from 1.34 billion in September 2019.
• Number of paying customers increased to 2,405 in the third quarter of 2020 from 2,312 in the third quarter of 2019.

Mr. Weidong Luo, Chairman and Chief Executive Officer of Aurora Mobile, commented, “From this quarter forward, we will focus on discussing the performance of the company on “SAAS Businesses” (which include only both the Developer Services and Vertical Applications) basis where we exclude the revenues of Targeted Marketing. We believe this discussion is more relevant and helpful for investors to understand how the underlying SAAS Businesses are performing and driving our future. Beginning with the quarter ending March 31, 2021, we will only have these SAAS Businesses remaining.”

“On SAAS Businesses basis, total revenue (which includes both the Developer Services and Vertical Applications) grew 18% year-over-year to RMB65.6 million mainly due to the very strong 99% growth in Developer Services, partially offset by the year-over-year decline in vertical applications, which have been impacted by COVID-19. It is worth noting that customer demand for Vertical Applications has gradually recovered since the second quarter of this year, and revenues from Vertical Applications have seen sequential growth for two consecutive quarters. On SAAS Businesses basis, gross profit has also shown solid growth of 16% year-over-year to RMB49.0 million for the quarter ended September 30, 2020, due to the strong performance of Developer Services. Also on SAAS Businesses basis, gross margin for this quarter was 75%; stable year-over-year and quarter-over-quarter.”

“In the third quarter of 2020, we continued to wind down our Targeted Marketing business according to plan. It contributed only 40% of revenue, down from 49% and 73% of revenue in the second quarter of 2020 and the same quarter last year respectively. In terms of total gross profit, its contribution was a mere 4% this quarter, down from 5% and 26% in the second quarter of 2020 and the same quarter last year respectively.”

“In benefiting from the continued strong growth in the high margin SAAS Businesses, and transitioning away from the low margin Targeted Marketing business, on a GAAP basis (which includes Targeted Marketing revenue), our overall Group gross margin was 47% in the third quarter, our highest gross margin ever throughout our operating history, as compared with 28% in the same period of last year and 41% in the prior quarter. We are very pleased with this growing trend in high gross margins over time as we continue shifting our focus to the SAAS Businesses. Following the exit of Targeted Marketing business by the fourth quarter of this year, our business will be 100% contributed by SAAS Businesses beginning 2021. The overall gross margin of the Group is expected to be above 70% by then.”

“In the third quarter, we continued to extensively explore various industry verticals, focusing on helping mobile APP developers with operations, growth and monetization by leveraging our professional, efficient, secure and stable services and great operational analysis capabilities. During the quarter, we launched a one-stop operational platform for APP developers, helping them to improve user engagement, retention, and conversion, as well as achieve greater efficiency, leverage on intelligent user acquisition tools to further refine their operations.”

“Recently, we also signed strategic cooperation agreements with leading platforms across multiple industry verticals such as finance, insurance, weather, internet tools, gaming, fresh food e-commerce, and online education to drive user growth and traffic, and improve user experience. For example, we have already signed agreements with Ping An Bank, Data Center of China Life, Moji Weather, WiFi Masterkey, Lilith Games, Missfresh, and 17zuoye, and other well-known companies.”

Mr. Fei Chen, President of Aurora Mobile, added, “In building on the great momentum from the first and second quarters of this year, our Developer Services were once again the star performer during the quarter. Developer Services generated RMB43.7 million in revenue. This revenue, which includes both the Subscriptions and Value-Added-Services, resulted in an impressive 99% revenue growth year-over-year on the back of a continued increase in the number of paying customers in the Subscription business and strong adoption of our Value-Added-Services. Equally strong was the RMB32.6 million gross profit contribution from Developer Services, which grew by 95% year-over-year.”

“Value-added-Services, which include revenues from JG Alliance services and Advertisement SaaS, had another strong quarterly performance with RMB13.5 million in revenue for the quarter compared to NIL same quarter a year ago. As the app market becomes incrementally competitive and user growth becomes stagnant and costly, there’s urgent need for APP developers to find additional sources to monetize existing user bases. While our Developer Service Subscription business satisfies APP developer’s operational needs, our JG Alliance services help APP developers with their user traffic monetization needs. Recently a number of hero APPs, each with over 10 million DAUs in China, have joined our JG Alliance traffic network. The total number of DAUs within our network exceeded 100 million in the third quarter, reaching a major milestone since we launched the service less than a year ago. Endorsement by these hero apps has proved the great value and market acceptance of our JG Alliance products that help mobile APPs to further monetize their APP traffic.”

“On the demand side, mini program developers have become the largest traffic consumer of JG Alliance. With the increasingly expansion of the mini program ecosystem, mini program developers are no longer satisfied with limited traffic supply such as those within WeChat, and they urgently need additional external traffic to meet their huge user acquisition needs. Our JG Alliance’s massive traffic resource and innovative advertising formats can effectively meet their user acquisition needs. Therefore, whether it is from the supply side or the demand side, JG Alliance gives us full confidence that this business will become a growth engine to drive our overall growth in the foreseeable future.”

“The combined revenues from Vertical Applications, which include market intelligence, financial risk management and location-based intelligence, increased by 6% from RMB20.7 million sequentially to RMB21.9 million, as business continued to recover for customers who had been previously impacted by COVID-19. In particular, our location-based intelligence business has seen solid growth of 29% quarter-over-quarter driven by a 60% improvement in ARPU.”

Mr. Shan-Nen Bong, Chief Financial Officer of Aurora Mobile, added, “We are very pleased that the increased contribution percentage-wise, year-over-year and quarter-over-quarter by Developer Services and Vertical Applications, has pushed our gross margin for the quarter to an all-time high. This historic high gross margin of 47% in Q3 2020 is the result of our commitment and success in investing, growing and executing well on both the Developer Services and Vertical Applications businesses.”

“These solid operating and financial results are also reflected in our balance sheet. With our stringent credit policy and collection effort, accounts receivable turnover days have decreased significantly from 84 days in Q3 2019 to 45 days in Q3 2020. The deferred revenue balance, which represents cash collected in advance from customers, has increased by 29% year-over-year to RMB110 million as of September 30, 2020. Our operating cash flow has now been positive for two consecutive quarters, with cash inflows this quarter of more than RMB30 million. In addition, our cash and cash equivalents, restricted cash and short-term investment balance was at a healthy level of RMB437 million as of September 30, 2020. Thus, we believe we are in a very solid financial position to further invest in and expand our high-margin SAAS Businesses (include Developer Services and Vertical Applications) going forward.”

Third Quarter 2020 Financial Results
(for the Group
as a whole
)

Revenues were RMB108.6 million (US$16.0 million), a decrease of 46% from RMB202.0 million in the same quarter of last year, mainly due to the decrease in revenues from Targeted Marketing which decreased 71% year-over-year as we continued to wind down the Targeted Marketing business. This was partially offset by revenue growth from Developer Services which increased by 99% year-over-year.

Cost of revenues was RMB57.5 million (US$8.5 million), a decrease of 60% from RMB145.1 million in the third quarter of 2019. The decrease was mainly due to a RMB87.0 million decrease in media costs which is in line with reduced revenues from Targeted Marketing business and a RMB0.6 million decrease in personnel cost.

Gross profit was RMB51.1 million (US$7.5 million), a decrease of 10% from RMB56.9 million in the third quarter of 2019, primarily due to the decrease in gross profit from Targeted Marketing business as the Company strategically shifts its focus to Developer Services and Vertical Applications.

Gross margin was at 47%, a historic record high, compared to 28% in the third quarter of 2019, mainly due to our revenue mix shift from low margin Targeted Marketing business to high margin SAAS businesses which includes Developer Services and Vertical Applications.

Total operating expenses were RMB97.7 million (US$14.4 million), a decrease of 12% from RMB111.5 million in the same quarter of last year.

• Res
  earch and development expenses were RMB45.6 million (US$6.7 million), an increase of 5% from RMB43.3 million in the same quarter of last year, mainly due to a RMB2.8 million increase in technical service fees.
• Sales and marketing expenses were RMB28.0 million (US$4.1 million), a decrease of 8% from RMB30.5 million in the same quarter of last year, mainly due to a RMB1.4 million decrease in marketing expenses and a RMB1.3 million decrease in personnel costs.
• General and administrative expenses were RMB24.1 million (US$3.5 million), a decrease of 36% from RMB37.7 million in the same quarter of last year, mainly due to a RMB12.9 million decrease in bad debt allowance and a RMB2.0 million decrease in personnel costs.

Loss from operations was RMB46.6 million (US$6.9 million), compared with RMB54.6 million in the same quarter of last year.

Net Loss was RMB43.7 million (US$6.4 million), compared with RMB31.7 million in the same quarter of last year.

Adjusted net loss (non-GAAP) was RMB36.9 million (US$5.4 million), compared with RMB37.6 million adjusted net loss in the same period of last year.

Adjusted EBITDA (non-GAAP) was negative RMB22.0 million (US$3.2 million), compared with negative RMB26.0 million for the same period of last year.

The cash and cash equivalents, restricted cash and short-term investment increased from RMB431.6 million as of December 31, 2019 to RMB436.6 million (US$64.3 million) as of September 30, 2020.

Business Outlook

Beginning from this quarter, we will start providing the quarterly SAAS Businesses revenue guidance. For the fourth quarter of 2020, the Company expects the SAAS Businesses revenue to be between RMB74 million and RMB78 million, representing quarter-over-quarter growth of approximately 13% to 19%. The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

Update on Share Repurchase


As of September 30, 2020, the Company had repurchased a total of 920,606 ADS. No ADS were repurchased during third quarter of 2020.

Conference Call

The Company will host an earnings conference call on Wednesday, November 25, 2020 at 6:00 a.m. U.S. Eastern Time (7:00 p.m. Hong Kong time on the same day).

Due to the outbreak of COVID-19, operator assisted conference calls are not available at the moment. All participants must register in advance to join the conference using the link provided below. Please dial in 15 minutes before the call is scheduled to begin. Conference access information will be provided upon registration.

Participant Online Registration:
http://apac.directeventreg.com/registration/event/8990716  
A telephone replay of the call will be available after the conclusion of the conference call through 9:00 p.m. U.S. Eastern Time, December 1, 2020.

The dial-in details for the replay are as follows:

International:	+61 2 8199 0299
U.S. Toll Free:	1-855-452-5696
Passcode:	8990716

A live and archived webcast of the conference call will be available on the Investor Relations section of Aurora Mobile’s website at http://ir.jiguang.cn/.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses three non-GAAP measures, adjusted net loss, adjusted EBITDA and SAAS Businesses revenue, as a supplemental measure to review and assess its operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines adjusted net loss as net loss excluding share-based compensation and fair value loss/(gain) of long-term investment. The Company defines adjusted EBITDA as net loss excluding interest expense, depreciation of property and equipment, amortization of intangible assets, income tax expense/(benefit), share-based compensation and fair value loss/(gain) of long-term investment. The Company defines SAAS Businesses revenue as the total Group revenue excluding Targeted Marketing revenue.

The Company believes that adjusted net loss and adjusted EBITDA help identify underlying trends in its business that could otherwise be impacted by the effect of certain expenses that it includes in loss from operations and net loss.

The Company believes that adjusted net loss and adjusted EBITDA provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the management in their financial and operational decision-making.

The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using adjusted net loss, adjusted EBITDA and SAAS Businesses revenue is that they do not reflect all items of income and expense that affect the Company’s operations. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of the non-GAAP financial measures to the most comparable U.S. GAAP measure are included at the end of this press release.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as Aurora Mobile’s strategic and operational plans, contain forward-looking statements. Aurora Mobile may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report 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 but not limited to statements about Aurora Mobile’s beliefs 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 statement, including but not limited to the following: Aurora Mobile’s strategies; Aurora Mobile’s future business development, financial condition and results of operations; Aurora Mobile’s ability to attract and retain customers; its ability to develop and effectively market data solutions, and penetrate the existing market for developer services; its ability to transition to the new advertising-driven SaaS-model; its ability maintain or enhance its brand; the competition with current or future competitors; its ability to continue to gain access to mobile data in the future; the laws and regulations relating to data privacy and protection; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and Aurora Mobile undertakes no duty to update such information, except as required under applicable law.

About Aurora Mobile Limited

Founded in 2011, Aurora Mobile is a leading mobile developer service provider in China. Aurora Mobile is committed to providing efficient and stable push notification, one-click verification, and APP traffic monetization services to help developers improve operational efficiency, grow and monetize. Meanwhile, Aurora Mobile’s vertical applications have expanded to market intelligence, financial risk management, and location-based intelligence, empowering various industries to improve productivity and optimize decision-making.

For more information, please visit http://ir.jiguang.cn/.

For investor and media inquiries, please contact:

Aurora Mobile
Limited

[email protected]

Christensen

In China
Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: eyuan@ChristensenIR.com
In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: [email protected]

Footnote:
This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7896 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2020.

AURORA MOBILE LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

		Three months ended												Nine Months ended
		September 30,		June 30,			September 30,							September 30,		September 30，
		2019		2020			2020							2019		2020
		RMB		RMB			RMB			US$				RMB		RMB			US$
Revenues		201,951			130,794			108,601			15,995			723,695			365,619			53,850
Cost of revenues		(145,076	)		(77,130	)		(57,536	)		(8,474	)		(527,218	)		(219,550	)		(32,336	)
Gross profit		56,875			53,664			51,065			7,521			196,477			146,069			21,514
Operating expenses
Research and development		(43,295	)		(46,977	)		(45,623	)		(6,720	)		(132,302	)		(133,994	)		(19,735	)
Sales and marketing		(30,478	)		(26,782	)		(27,981	)		(4,121	)		(88,041	)		(79,978	)		(11,780	)
General and administrative		(37,679	)		(25,046	)		(24,050	)		(3,542	)		(80,468	)		(75,570	)		(11,130	)
Total operating expenses		(111,452	)		(98,805	)		(97,654	)		(14,383	)		(300,811	)		(289,542	)		(42,645	)
Loss from operations		(54,577	)		(45,141	)		(46,589	)		(6,862	)		(104,334	)		(143,473	)		(21,131	)
Foreign exchange (loss) gain, net		499			(31	)		(2	)		–			495			7			1
Interest income		1,395			1,390			1,568			231			4,966			4,562			672
Interest expense		(2,858	)		(2,998	)		(2,972	)		(438	)		(8,213	)		(8,903	)		(1,311	)
Other income		23,308			5,923			4,147			611			35,347			11,594			1,707
Change in fair value of derivative liability/asset		662			421			155			23			2,231			1,075			158
Loss before income taxes		(31,571	)		(40,436	)		(43,693	)		(6,435	)		(69,508	)		(135,138	)		(19,904	)
Income tax(expense)/benefit		(162	)		–			–			–			(162	)		–			–
Net loss		(31,733	)		(40,436	)		(43,693	)		(6,435	)		(69,670	)		(135,138	)		(19,904	)

AURORA MOBILE LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS (continued)

 
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

		Three months ended												Nine months ended
		September 30,		June 30,			September 30,							September 30,		September 30,
		2019		2020			2020							2019		2020
		RMB		RMB			RMB			US$				RMB		RMB			US$
Net loss attributable to Aurora Mobile Limited’s shareholders		(31,733	)		(40,436	)		(43,693	)		(6,435	)		(69,670	)		(135,138	)		(19,904	)
Net loss attributable to common shareholders		(31,733	)		(40,436	)		(43,693	)		(6,435	)		(69,670	)		(135,138	)		(19,904	)
Net shares per for, Class A and Class B common shares
Class A Common Shares – basic and diluted		(0.41	)		(0.52	)		(0.56	)		(0.08	)		(0.91	)		(1.75	)		(0.26	)
Class B Common Shares – basic and diluted		(0.41	)		(0.52	)		(0.56	)		(0.08	)		(0.91	)		(1.75	)		(0.26	)
Shares used in net loss per share computation:
Class A Common Shares – basic and diluted		59,688,158			60,234,587			60,461,343			60,461,343			59,641,495			60,281,670			60,281,670
Class B Common Shares – basic and diluted		17,000,189			17,000,189			17,000,189			17,000,189			17,000,189			17,000,189			17,000,189
Other comprehensive loss
Foreign currency translation adjustments		(5,641	)		47			2,360			348			(21,903	)		1,627			240
Total other comprehensive loss, net of tax		(5,641	)		47			2,360			348			(21,903	)		1,627			240
Comprehensive loss		(37,374	)		(40,389	)		(41,333	)		(6,087	)		(91,573	)		(133,511	)		(19,664	)
Comprehensive loss attributable to Aurora Mobile Limited		( 37 , 374	)		( 40 ,389	)		(41,333	)		( 6,087	)		（ 91,573	)		( 133,511	)		( 19,664	)

    

AURORA MOBILE LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

		As of
		December 31, 2019	September 30, 2020
		RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents		431,459		336,505		49,562
Restricted cash		115		115		17
Derivative assets		–		11		2
Short-term investment		–		100,000		14,728
Accounts receivable		135,417		42,434		6,250
Prepayments and other current assets		86,087		65,111		9,590
Amounts due from related parties		521		505		74
Total current assets		653 , 599		5 44,681		80,223
Non-current assets:
Other non-current assets		2,642		4,857		715
Long-term investments		168,637		210,013		30,932
Property and equipment, net		106,235		89,688		13,210
Intangible assets, net		8,810		9,882		1,455
Total non-current assets		286,324		314,440		46,312
Total assets		939,923		8 59,121		1 26,535
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		19,996		15,758		2,321
Deferred revenue and customer deposits		77,561		110,096		16,215
Accrued liabilities and other current liabilities		96,277		94,616		13,935
Convertible Notes		–		232,398		34,229
Amounts due to related parties		56		27		4
Total current liabilities		1 93 , 890		4 52,895		6 6,704
Non-current liabilities:
Other non-current liabilities		64		1,317		194
Deferred revenue		8,150		6,914		1,018
Convertible notes		230,031		–
Total non-current liabilities		238,245		8,231		1 ,212
Total liabilities		432,135		4 61,126		6 7,916

AURORA MOBILE LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (continued)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)

		As of
		December 31, 2019		September 30, 2020
		RMB		RMB			US$
Shareholders’ e quity
Common shares		48			48			7
Treasury shares		(1,999	)		–			–
Additional paid-in capital		956,735			978,453			144,111
Accumulated deficit		(453,359	)		(588,496	)		(86,676	)
Accumulated other comprehensive loss		6,363			7,990			1,177
Total shareholders’ equity		507,788			3 97,9 9 5			5 8,619
Total liabilities and shareholders’ equity		9 39 , 923			859,121			1 26,535

AURORA MOBILE LIMITED

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

		Three months ended												Nine months ended
		September 30,		June 30,			September 30,							September 30,			September 30,
		2019		2020			2020							2019			2020
		RMB		RMB			RMB			US$				RMB			RMB			US$
Reconciliation of Net Loss to  Adjusted Net Loss:
Net loss		(31,733	)		(40,436	)		(43,693	)		(6,435	)			(69,670	)		(135,138	)		(19,904	)
Add:
Share-based compensation		8,384			8,292			6,835			1,007				34,169			22,946			3,380
Fair value gain of long-term investment		(14,255	)		–			–			–				(17,231	)		–			–
Adjusted net loss		(37,604	)		(32,144	)		(36,858	)		(5,428	)			(52,732	)		(112,192	)		(16,524	)
Reconciliation of Net Loss to  Adjusted EBITDA:
Net loss		(31,733	)		(40,436	)		(43,693	)		(6,435	)			(69,670	)		(135,138	)		(19,904	)
Add:
Interest expense		2,858			2,998			2,972			438				8,213			8,903			1,311
Depreciation of property and equipment		7,976			9,768			10,770			1,586				21,883			29,418			4,333
Amortization of intangible assets		604			1,094			1,128			166				1,594			3,285			484
Income tax expense		162			–			–			–				162			–			–
EBITDA		(20,133	)		(26,576	)		(28,823	)		(4,245	)			(37,818	)		(93,532	)		(13,776	)
Add:
Share-based compensation		8,384			8,292			6,835			1,007				34,169			22,946			3,380
Fair value loss gain of long-term investment		(14,255	)		–			–			–				(17,231	)		–			–
Adjusted EBITDA		(26,004	)		(18,284	)		(21,988	)		(3,238	)			(20,880	)		(70,586	)		(10,396	)

AURORA MOBILE LIMITED

UNAUDITED SAAS BUSINESS
ES
REVENUE

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

		Three months ended
		September 30,		June 30,			September 30,
		2019		2020			2020
R econciliation of SAAS Business es Revenue to Total Revenue		RMB		RMB			RMB			US$
Developer Service		21,930			45,775			43,709			6,438
Subscription		21,930			30,724			30,160			4,442
Value-Added Service		–			15,051			13,549			1,996
V ertical Application		33,585			20,711			21,886			3,224
Total SAAS Businesses Revenue		55,515			66,486			65,595			9,662
Add:
Targeted Marketing Revenue		146,436			64,308			43,006			6,333
Total Revenue		201,951			130,794			108,601			15,995
SAAS Businesses Gross Profits1		42,231			50,783			48,975			7,213
SAAS Businesses Gross Margin2		76.1	%		76.4	%		74.7	%		74.7	%

¹ Our SAAS Businesses Gross Profit is calculated after excluding the Targeted Marketing gross profit (which is calculated as revenue less media cost) from the Group’s total gross profit.

² Our SAAS Businesses Gross Margin is calculated by dividing the SAAS Business Gross Profit by SAAS Business Revenue. 

Press Release

Nokia, A1 provide private wireless connectivity for Siemens renewable energy microgrid

• Industrial-grade private wireless network deployed on Siemens campus in Vienna, Austria
• Renewables smartly managed within a microgrid are making an impact by offering energy cost savings and security of supply to industrial campuses
• Private wireless provides critical connectivity for control of all microgrid assets, helping to manage energy loads and lower the environmental footprint

       

25 November 2020

Espoo, Finland – Nokia and A1 have joined forces to provide a private wireless network for Siemens’ microgrid, which is deployed at its Austrian headquarters in Vienna. The A1 campus solution demonstrates the advantages of using a private wireless solution to operate critical applications such as enterprise or utility microgrids, and how they can be efficiently implemented with secure, reliable and fast connectivity.

Renewable energy sources, storage and microgrids are being adopted by industries worldwide to help enterprises minimize their environmental footprint and reach their sustainability objectives. Smartly managed renewables within a microgrid are making an impact on many industrial applications by offering energy cost savings and supplying security to industrial campuses.

Nokia is providing the industrial-grade private wireless network, while A1 is providing spectrum along with hosting and management of the newly deployed campus network. The private wireless network is connecting the microgrid assets on the Siemens campus, enabling secure communication between the microgrid controllers and the metering or charging points at guaranteed data rates and with low latency.

The Siemens Vienna campus microgrid project includes solar generation, electric vehicle (EV) charging, building management and battery storage. Initially, Siemens has implemented 320kW of solar generation and 500kWh battery storage, all to support around 50 EV charging stations.

Wolfgang Hesoun, CEO Siemens Austria: “One of the challenges of the future is a reliable and at the same time clean supply, transmission and use of energy. Microgrids can significantly contribute to this. Our campus project, in combination with the infrastructure of an existing industrial plant, is the first of its kind – and offers many opportunities for innovative research and concrete new solutions.”

Intelligence by connectivity

Despite their size, microgrids are complex systems with many elements which need reliable connectivity because they integrate distributed energy sources such as solar cells and battery storage. Voltage levels across the grid are in a constant state of flux with load balancing and optimization between different sources and loads requiring direct control. With private wireless, the microgrid controller easily connects to all assets to manage the grid, ensuring optimal load balancing between energy demand and availability of local distributed energy resources.

Avoiding the need to deploy cabling to connect sensors and other devices associated with managing the microgrid results in speeding up its deployment and enables an easier expansion. A1 network slicing, together with edge cloud processing, is able to achieve the reliable low latency needed for automated microgrid control responses to manage instantaneous load fluctuations. This infrastructure can be used for additional industrial use cases where wireless connectivity and high reliability are critical.

Marcus Grausam, CEO A1 Austria, said: “Network slicing in A1’s mobile networks allows organizations to operate private wireless networks which not only offer the best possible security, but also enable completely new applications thanks to lowest possible latency and high reliability. By using this private campus network as the foundation of the Siemens microgrid, we are demonstrating how 5G technologies enable the optimal control of energy facilities.”

Peter Wukowits, Head of Nokia Austria, said: “Managing microgrids is another example where both utilities and enterprises, such as Siemens, can benefit from the reliable wireless connectivity provided by private wireless networks. Nokia brings its experience of supporting more than 200 utility customers in mission-critical networking to this microgrid project. Our private wireless LTE/4.9G solutions contain many of the capabilities required for today’s Industry 4.0 applications, as the Siemens microgrid deployment demonstrates. And additional capabilities for future industrial use cases will follow with 5G.”

As announced earlier this month, Nokia is providing its industrial-grade private wireless technology and services for all existing and new A1 Austria LTE and 5G enterprise campus network deployments accelerating the digital transformation of A1’s enterprise customers. 

To learn more about Nokia’s industrial-grade private wireless solutions, please visit https://www.nokia.com/networks/solutions/private-wireless. With more than 220 large enterprise customers across industries worldwide, and an extensive ecosystem of key vertical partners, Nokia has recently been named leader in private wireless by GlobalData.

Resources:

Siemens microgrid images: https://press.siemens.com/at/de/feature/microgrid

Nokia Industrial Grade Private Wireless images: Nokia Industrial-grade private wireless | Nokia

About Siemens Austria

Siemens is one of the country’s leading technology companies. Around 8,800 employees work for Siemens in Austria in total. Sales in the fiscal year 2020 amounted to roughly 2.6 billion euros. Siemens combines the physical and the digital world — and aims at creating benefits for customers and society. The company focuses on the fields intelligent infrastructure in buildings, decentralized energy systems, automation and digitalization in the process and manufacturing industry as well as on intelligent mobility solutions for rail and road traffic. Automation, software and data analytics play an important role in this context. With its plants, globally active centers of competence and regional expertise in every Federal Province, Siemens AG Österreich significantly contributes to local value creation. Furthermore, Siemens Austria has the overall business responsibility for its own market as well as for an additional 20 countries (region Central and Southeast Europe as well as Israel). Additional information can be found here: www.siemens.at

A1 – Internet, Voice, TV and IT-Services from One Source

A1 is Austria’s leading communications provider, encompassing more than 5.1 million mobile communications customers and over 2 million fixed access lines. The customers benefit from a global package of offers from one source: voice telephony, Internet access, digital cable television, data and IT solutions, wholesale services, and mobile business and payment solutions. A1 Telekom Austria AG is part of A1 Telekom Austria Group (ATX:TKA) – a leading digital services and communications provider in the CEE region with around 25 million customers across seven countries. Offering communications, payment and entertainment services as well as integrated business solutions Telekom Austria Group achieved revenues of 4.57 billion Euros, with A1 contributing more than 2.65 billion Euros, by in the year 2019. Around 18,000 employees and state of the art broadband infrastructure make digital business and lifestyle possible and enable people, companies and things to connect everywhere anytime. As European unit of América Móvil, one of the largest wireless services provider in the world, Telekom Austria Group is headquartered in Vienna and gives access to global solutions.

About
Nokia

We create the technology to connect the world. Only Nokia offers a comprehensive portfolio of network equipment, software, services and licensing opportunities across the globe. With our commitment to innovation, driven by the award-winning Nokia Bell Labs, we are a leader in the development and deployment of 5G networks.

Our communications service provider customers support more than 6.4 billion subscriptions with our radio networks, and our enterprise customers have deployed over 1,300 industrial networks worldwide. Adhering to the highest ethical standards, we transform how people live, work and communicate. For our latest updates, please visit us online www.nokia.com and follow us on Twitter: @nokia

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