ENTREPRENEUR UNIVERSE BRIGHT GROUP Announces 2022 Q3 Financial Results

XI'AN, China, Nov. 15, 2022 /PRNewswire/ -- ENTREPRENEUR UNIVERSE BRIGHT GROUP ("EUBG" or the "Company") (OTCBB: EUBG), a digital marketing consulting company, today announced its unaudited financial results for the third quarter ended September 30, 2022.

Mr. Guolin Tao, CEO of Entrepreneur Universe Bright Group commented, "During the third quarter, our business and operations continued to be materially and negatively impacted by the COVID-19 situation in China. The decrease of our business was mainly due to the drop of our consultancy services income, generated from clients who engaged in online courses business. These end customers became more patient and cautious in choosing online courses. We are continuing to seek out different business opportunities to stabilize our income streams."

"As of September 30, 2022, the COVID-19 pandemic situation in China continues to be dynamic, and near-term challenges across the economy remain. Substantially all of our revenues and operations are concentrated in China and demand for our consulting services by small and medium-sized enterprises were adversely affected due to widespread economic disruptions during the COVID-19 outbreak. Specifically, as a result of government mandated closures of non-essential business in China, many of our customers' business were suspended while others permanently closed their businesses," Mr. Tao added.

Third Quarter 2022 Unaudited Financial Results



Three months ended
September 30,




2022



2021


Revenue


$

801,784



$

1,622,471


Cost of revenue



(140,009)




(870,967)


Gross profit



661,775




751,504


Selling expenses



(10,043)




(54,921)


General and administrative expenses



(423,931)




(326,090)


Total other (expenses) income, net



(124,016)




38,847


Income before income tax



103,785




409,340


Income tax expense



(135,784)




(201,789)


Net (loss) income


$

(31,999)



$

207,551


  • Revenue decreased by 50.6% to $801,784 due to the decrease our consultancy services and sourcing and marketing services income
  • Gross profit decreased by 11.9% to $661,775
  • Net income decreased by $239,550 to a net loss of $31,999

Revenue and cost of revenue: During the three months ended September 30, 2022, we generated revenue of $801,784 compared to $1,622,471 for the three months ended September 30, 2021, representing a decrease of $820,687 or 50.6% as compared with the prior period.

Cost of revenue was $140,009 for the three months ended September 30, 2022 compared to $870,967 for the three months ended September 30, 2021. The decrease of cost of revenue for the three months ended September 30, 2022 was mainly due to our senior management no longer directly involved in performing the services but focused on management work. Therefore, less direct senior management costs were incurred in the consultancy services and souring and marketing service.

Gross profit: We generated a gross profit of $661,775 and $751,504 for the three months ended September 30, 2022 and 2021, respectively.

Net (loss) income: As a result of the above, we resulted a net loss of $31,999 and generated a net income of $207,551 for the three months ended September 30, 2022 and 2021, respectively.

Cash and cash equivalents. As of September 30, 2022 and December 31, 2021, $6,330,431 and $7,649,129 of the Company's cash and cash equivalents, respectively were held at financial institutions and online payment platforms located in the PRC and Hong Kong that management believes to be of high credit quality.

Nine months ended September 30, 2022 Financial Results



Nine months ended
September 30,




2022



2021


Revenue


$

2,851,656



$

4,479,415


Cost of revenue



(565,820)




(1,289,739)


Gross profit



2,285,836




3,189,676


Selling expenses



(34,957)




(224,935)


General and administrative expenses



(1,066,604)




(905,391)


Total other income, net



35,905




108,941


Income before income tax



1,220,180




2,168,291


Income tax expense



(595,156)




(872,063)


Net income


$

625,024



$

1,296,228


  • Revenue decreased by 36.3% to $2,851,656 due to the decrease in our consultancy services income
  • Gross profit decreased by 28.3% to $2,285,836
  • Net income decreased by $671,204 to $625,024

Revenue and cost of revenue: During the nine months ended September 30, 2022, we generated revenue of $2,851,656 compared to $4,479,415 for the nine months ended September 30, 2021, representing a decrease of $1,627,759 or 36.3% as compared with the prior period. The decrease was mainly due to our consultancy services income, generated from clients who engaged in online courses business, dropped by $2,405,874 as compared with last period.

During the nine months ended September 30, 2022, we generated $267,874 from our new digital training related services and $911,733 from our consultancy services to a customer who engaged in live streaming business. However, these new income streams only compensated a part of the revenue reduction in current period. The digital training related services with Jade Bird remain suspended as of today. Therefore, we expected the new revenue will not be available to compensate the revenue reduction until further notice.

Cost of revenue was $565,820 for the nine months ended September 30, 2022 compared to $1,289,739 for the nine months ended September 30, 2021. For the nine months ended September 30, 2022, the cost of revenue mainly represented the staff costs for our consulting services and the agency fees for our digital training related services.

Gross profit: We generated a gross profit of $2,285,836 and $3,189,676 for the nine months ended September 30, 2022 and 2021, respectively. 

Net income: As a result of the above, we generated a net income of $625,024 and $1,296,228 for the nine months ended September 30, 2022 and 2021, respectively.

About ENTREPRENEUR UNIVERSE BRIGHT GROUP

ENTREPRENEUR UNIVERSE BRIGHT GROUP is a digital marketing consultation company with its main operation in China, providing marketing consulting services to Chinese start-up companies. The company provides consulting services, sourcing and marketing services in China through its PRC subsidiary with support from its HK subsidiary. Its PRC subsidiary provides services aimed at connecting businesses with e-commerce platforms.  The integrated service platform focuses on strategic marketing and consulting. The company's mission is to help start-up companies and small-size companies and guide these companies' founders in utilizing the company's digital marketing consulting plan to reach their business goals. For more information about the Company, please visit: http://www.eubggroup.com/

Safe Harbor Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements.  Specifically, the Company's statements regarding trading on the OTCBB market and closing the initial public offering are forward-looking statements.  Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following:  the Company's goals and strategies; the Company's future business development; financial condition and results of operations; product and service demand and acceptance; reputation and brand; the impact of competition and pricing; changes in technology; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC.  For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

The Company:

Jianyong Li
Email: lijianyong@eubggroup.com
Phone: +86-(029) 86100263

Investor Relations:

Hana Yin
EverGreen Consulting Inc.
Email: IR@changqingconsulting.com
Phone: +1-949-416-8888 (from U.S.)
+86 185-0119-2929 (from China)

 

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In U.S. dollars except for number of shares)




September 30,
2022



December 31,
2021









ASSETS







CURRENT ASSETS







Cash and cash equivalents


$

6,330,431



$

7,649,129


Accounts receivable



287,436




67,940


Loan and interest receivables



983,699




-


Other receivables and prepayments



41,068




55,925


Total current assets



7,642,634




7,772,994











NON-CURRENT ASSETS









Plant and equipment, net



202,431




281,448


Operating lease right-of-use assets, net



93,387




146,698


Total non-current assets



295,818




428,146











TOTAL ASSETS


$

7,938,452



$

8,201,140











LIABILITIES AND STOCKHOLDERS' EQUITY









CURRENT LIABILITIES









Accounts payable


$

-



$

115,833


Other payables and accrued liabilities



225,119




402,158


Contract liabilities



-




216,142


Receipt in advance



-




5,161


Operating lease liabilities, current



51,119




59,370


Tax payables



133,931




39,545


Amount due to a director



167,935




171,443


Total current liabilities



578,104




1,009,652











NON-CURRENT LIABILITY









Deferred tax liabilities



297,200




342,546


Operating lease liabilities, non-current



42,269




87,328


Total non-current liabilities



339,469




429,874











TOTAL LIABILITIES



917,573




1,439,526











COMMITMENTS AND CONTINGENCIES


















STOCKHOLDERS' EQUITY









Preferred stock, par value $0.0001 per share, 1,100,000 shares authorized, Nil (December 31, 2021: Nil)
shares issued and outstanding as of September 30, 2022 



-




-


Common stock, par value $0.0001 per share; 1,800,000,000 shares authorized, 1,701,181,423
(December 31, 2021: 1,701,181,423) shares issued and outstanding as of September 30, 2022



170,118




170,118


Additional paid-in capital



6,453,048




6,453,048


Statutory reserves



65,911




65,911


Retained earnings (accumulated deficit)



267,621




(357,403)


Accumulated other comprehensive income



64,181




429,940


Total stockholders' equity



7,020,879




6,761,614


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$

7,938,452



$

8,201,140


 

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(UNAUDITED)

(In U.S. dollars except for number of shares)




For the three months ended
September 30,



For the nine months ended
September 30,




2022



2021



2022



2021


Revenue



801,784




1,622,471



$

2,851,656



$

4,479,415


Cost of revenue



(140,009

)



(870,967

)



(565,820

)



(1,289,739

)

Gross profit



661,775




751,504




2,285,836




3,189,676


Selling expenses



(10,043

)



(54,921

)



(34,957

)



(224,935

)

General and administrative expenses



(423,931

)



(326,090

)



(1,066,604

)



(905,391

)

Profit from operations



227,801




370,493




1,184,275




2,059,350


Other income (expenses):

















Interest income



10,522




15,934




33,489




66,213


Exchange gain (loss)



(135,842

)



8,957




(107,920

)



(3,088

)

Sundry income



1,304




13,956




110,336




45,816


Total other income (expenses), net



(124,016

)



38,847




35,905




108,941


Income before income tax



103,785




409,340




1,220,180




2,168,291


Income tax expense



(135,784

)



(201,789

)



(595,156

)



(872,063

)

Net (loss) income


$

(31,999

)



207,551



$

625,024



$

1,296,228


Other comprehensive (loss) income







-










Foreign currency translation adjustment



(128,843

)



(2,946

)



(365,759

)



63,036


Total comprehensive (loss) income


$

(160,842

)



204,605



$

259,265



$

1,359,264



















Net (loss) income per share - Basic and diluted


$

0.00

*



0.00

*


$

0.00

*


$

0.00

*

Weighted average number of common shares outstanding

















- Basic and Diluted



1,701,181,423




1,701,181,423




1,701,181,423




1,701,181,423


 

*

Less than $0.01 per share

 

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

(In U.S. dollars)




Nine months ended
September 30,




2022



2021


Cash flows from operating activities







Net income


$

625,024



$

1,296,228


Adjustments to reconcile net income to cash used in operating activities:









Depreciation



62,516




62,222


Amortization of operating lease right-of-use assets



40,575




39,248


Deferred tax



(33,117)




(319,660)


Changes in operating assets and liabilities:









Other receivables and prepayments



11,128




(179,961)


Accounts receivable



(244,432)




95,800


Accounts payable



(111,527)




431,690


Other payables and accrued liabilities



(159,123)




(284,226)


Tax payables



106,699




(445,713)


Contract liabilities



(208,106)




4,158


Receipt in advance



(4,969)




(34,318)


Operating lease liabilities



(40,574)




(43,614)


Net cash generated from operating activities



44,094




621,854











Cash flows from investing activities









Purchase of property, plant and equipment



(9,746)




-


Acquisition of debt products



-




(2,781,482)


Redemption of debt products



-




5,872,017


Loan receivables to unrelated third parties



(1,060,394)




(499,554)


Loan to a related company



-




(123,621)


Repayment from a related company



-




312,401


Repayment from a unrelated third party



-




499,554


Net cash (used in) generated from investing activities



(1,070,140)




3,279,315











Cash flows from financing activities









Repayment of borrowings from a director



(3,490)




(128,751)


Advance from a director



-




67,882


Net cash used in financing activities



(3,490)




(60,869)











Effect of exchange rates on cash



(289,162)




37,171











Net (decrease) increase in cash and cash equivalents



(1,318,698)




3,877,471


Cash and cash equivalents at beginning of period



7,649,129




3,846,470


Cash and cash equivalents at end of period


$

6,330,431



$

7,723,941











Supplemental cash flow information









Cash paid during the period for:









Income taxes


$

369,878



$

1,115,659


Withholding tax paid


$

151,485



$

517,145


 

View original content:https://www.prnewswire.com/news-releases/entrepreneur-universe-bright-group-announces-2022-q3-financial-results-301677368.html


Source: ENTREPRENEUR UNIVERSE BRIGHT GROUP Related Stocks: OTC:EUBG
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