Weyland Tech Provides Business Update

Weyland Tech (OTCQB:WEYL) has announced a shareholder update following its second quarter financial results.
As quoted in the press release:

The results may be found in the Company’s Form 10-Q filed with the Securities and Exchange Commission. A more comprehensive description of the Company’s business strategy is also discussed below.
Quarterly Highlights
Results of Operation
Service Revenue
Service Revenue was $6,476,022 and $6,394,984 for the six months ended June 30, 2017 and 2016, respectively. The increase is due to the service income from our customers.
Although only slightly higher than the previous reporting period, there was a pricing reduction by our partners that was designed to incentivize resellers to increase the number of subscribers renewing their subscriptions based on lower pricing. The company expects revenue to per subscriber to grow as additional transaction services currently in development are deployed.
Cost of Service
Cost of Service was $5,095,509 and $3,673,639 for the six months ended June 30, 2017 and 2016, respectively. Included are development costs of $ 390,772 (2016: $1,750,000). The increase during the period reflects our revised normal gross margins for our core subscription business.
Although booked as Cost of Service, our audit committee and our auditor, took a highly conservative approach and will reclassify as R&D in the coming quarters.
Operating Expenses
General and Administrative expenses were $478,893 and $493,188 and for the six months ended June 30, 2017 and 2016, respectively.
Net Profit (Loss)
The Company had a net profit of $745,536 and $2,259,327 for the six months ended June 30, 2017 and 2016, respectively. Gross margins decreased from 43% to 21% for six months ended June 30, 2017, decreased from 28% to -11% for three months ended June 30, 2017.

Click here to read the full press release.