Last10K.com

Entrepreneur Universe Bright Group (EUBG) SEC Filing 8-K Material Event for the period ending Friday, April 15, 2022

Entrepreneur Universe Bright Group

CIK: 1171326 Ticker: EUBG

Exhibit 99.1

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP Announces 2021 Fiscal Year Financial Results

 

Xi’an, China, April 15, 2022 -- ENTREPRENEUR UNIVERSE BRIGHT GROUP (“EUBG” or the “Company”) (OTCBB: EUBG), a digital marketing consulting company, today announced its audited financial results for the fiscal year ended December 31, 2021.

 

Mr. Guolin Tao, CEO of Entrepreneur Universe Bright Group commented, “A new Delta variant of COVID-19 had been found in certain cities in China in the second quarter of 2021, which may cause another outbreak, thus increasing risks and possible further disruption to businesses. Therefore, certain of our consulting services were suspended from April 2021 to August 2021. We have resumed these consulting businesses from August 2021 in order to maintain diversified services for our customers.”

 

“As of December 31, 2021, the COVID-19 pandemic continues to be dynamic, and near-term challenges across the economy remain. Although vaccines are now being distributed and administered across many parts of the world, new variants of the virus have emerged and may continue to emerge that have shown to be more contagious. We continue to adhere to applicable governmental and commercial restrictions and to work to mitigate the impact of COVID-19 on our employees, customers, communities, liquidity and financial position. The extent to which the COVID-19 outbreak may impact the company’s business, operations and financial results from this point forward will depend on numerous evolving factors that the company cannot accurately predict. Those factors include the following: the duration and scope of the pandemic; governmental, business and individuals’ actions in response to the pandemic in the future; and any other further development of the COVID-19 outbreak.” Mr. Tao added.

 

2021 Financial Results:

 

   2021   2020 
Revenue  $5,637,396   $9,187,023 
Cost of revenue   (1,827,082)   (661,462)
Gross profit   3,810,314    8,525,561 
Selling expenses   (253,958)   (188,900)
General and administrative expenses   (1,668,432)   (935,302)
Total other income, net   187,392    71,556 
Income before income tax   2,075,316    7,472,915 
Income tax expense   (988,916)   (2,504,845)
Net income  $1,086,400   $4,968,070 

  

Revenue and cost of revenue: During the year ended December 31, 2021, we generated revenue of $5,637,396 compared to $9,187,023 for the year ended December 31, 2020, representing a decrease of $3,549,627 or 38.6% as compared with the prior year. The decrease in revenue was due to the Delta virus in China increased the inherent risk of the business and the realignment of our resources to focus on our KOL Training Related Services business, which resulted in the suspension of certain consulting services from April, 2021 to August, 2021 to maintain diversified services for our customers.

 

Cost of revenue was $1,827,082 for the year ended December 31, 2021 compared to $661,462 for year ended December 31, 2020. The cost of revenue for the year ended December 31, 2021 increased because we started the digital training related services during the year and incurred agency fees of $579,959 and direct operation costs of $391,125 for the services. For the year ended December 31, 2020, the cost of revenue mainly represented the staff costs for our consulting services.

 

Selling expenses: During the year ended December 31, 2021, we incurred $253,958 selling expenses compared to $188,900 for the year ended December 31, 2020, representing an increase of $65,058 or 34.4% as compared with the prior year. The increase of selling expenses was mainly due to more staff costs incurred in marketing our KOL Training Related Services for the year ended December 31, 2021.

 

 

 

 

General and administrative expenses: During the year ended December 31, 2021, we incurred $1,668,432 general and administrative expenses compared to $935,302 for the year ended December 31, 2020, representing an increase of $733,130 or 78.4% as compared with the prior year. Our general and administrative expenses consisted mainly of audit fees, professional fees, payroll expenses and consultancy fees.

 

For the year ended December 31, 2021, we incurred audit fees, professional fees and consultancy fees of $346,664, $270,400 and $226,807, respectively, to assist us in complying with the relevant reporting requirements. For the year ended December 31, 2020, we incurred audit fees, professional fees and consultancy fees of $204,942, $100,808 and $77,176, respectively because we engaged our new company lawyer and consultants during the year.

 

In addition, we incurred social insurance of $124,386 for the year ended December 31, 2021. There was only $4,911 incurred for the year ended December 31, 2020 because the PRC government waived employer obligations on social security contributions for a specified period of time to ease the burden of enterprises arising from COVID-19 in 2020 and our PRC subsidiary failed to deposit adequate contributions to the housing funds for the year ended December 31, 2020.

 

Total other income, net: During the year ended December 31, 2021, we generated net other income of $187,392 compared to $71,556 for the year ended December 31, 2020, representing an increase of $115,836 or 161.9% as compared with the prior year. Our other income mainly consisted of bank interest income, exchange rate differences and certain sundry incomes.

 

Income tax expense: During the year ended December 31, 2021, we incurred income tax expense of $988,916 compared to $2,504,845 for the year ended December 31, 2020, representing a decrease of $1,515,929 or 60.5% as compared with the prior year. The income tax expense consisted of income taxes charged in China and Hong Kong.

 

For the year ended December 31, 2021, our income tax expenses comprised of current tax and deferred tax expenses of $767,877 and $221,039, respectively, compared to $1,952,840 and $552,005 for the year ended December 31, 2020. The decrease of the current tax and deferred tax was mainly resulted from a lower profit caused by the realignment of our resources to focus on our KOL Training Related Services business.

 

Net income: As a result of the above, we generated a net income of $1,086,400 and $4,968,070 for the year ended December 31, 2021 and 2020, respectively.

 

Cash and cash equivalents: As of December 31, 2021, the company had cash and cash equivalents of $7,649,129 compared to $3,846,470 as of December 31, 2020.

 

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, KOL training coordination business and KOL training 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/.

 

2

 

 

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 OTC Pink 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:

Janice Wang
EverGreen Consulting Inc.
Email: IR@changqingconsulting.com

Phone: +1-908-510-2351 (from U.S.)

+86 13811768559 (from China)

 

3

 

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2021 AND 2020

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

 

   2021   2020 
ASSETS        
CURRENT ASSETS        
Cash and cash equivalents  $7,649,129   $3,846,470 
Debt products   -    3,058,041 
Accounts receivable   67,940    202,183 
Other receivables and prepayments   55,925    50,306 
Loan to a related company   -    186,796 
Total current assets   7,772,994    7,343,796 
           
NON-CURRENT ASSETS          
Plant and equipment, net   281,448    355,609 
Operating lease right-of-use assets, net   146,698    25,615 
Total non-current assets   428,146    381,224 
           
TOTAL ASSETS  $8,201,140   $7,725,020 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
CURRENT LIABILITIES          
Accounts payable  $115,833   $- 
Other payables and accrued liabilities   402,158    618,508 
Contract liabilities   216,142    - 
Receipt in advance   5,161    50,369 
Operating lease liabilities, current   59,370    29,933 
Tax payables   39,545    595,338 
Amount due to a shareholder   -    53,000 
Amount due to a director   171,443    51,309 
Borrowings   -    128,996 
Total current liabilities   1,009,652    1,527,453 
           
NON-CURRENT LIABILITY          
Deferred tax liabilities   342,546    626,546 
Operating lease liabilities, non-current   87,328    - 
Total non-current liabilities   429,874    626,546 
           
TOTAL LIABILITIES   1,439,526    2,153,999 
           
COMMITMENTS AND CONTINGENCIES          
           
STOCKHOLDERS’ EQUITY          
Preferred stock, par value $0.0001 per share, 1,100,000 shares authorized, Nil (December 31, 2020: Nil) shares issued and outstanding as of December 31, 2021   -    - 
Common stock, par value $0.0001 per share; 1,800,000,000 shares authorized, 1,701,181,423 (December 31, 2020: 1,701,181,423) shares issued and outstanding as of December 31, 2021   170,118    170,118 
Additional paid-in capital   6,453,048    6,453,048 
Statutory reserves   65,911    65,911 
Accumulated deficit   (357,403)   (1,443,803)
Accumulated other comprehensive income   429,940    325,747 
Total stockholders’ equity   6,761,614    5,571,021 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $8,201,140   $7,725,020 

 

4

 

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

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

 

   2021   2020 
Revenue  $5,637,396   $9,187,023 
Cost of revenue   (1,827,082)   (661,462)
Gross profit   3,810,314    8,525,561 
Selling expenses   (253,958)   (188,900)
General and administrative expenses   (1,668,432)   (935,302)
Profit from operations   1,887,924    7,401,359 
Other income (expenses):          
Interest income   76,952    36,721 
Exchange loss   (476)   (813)
Sundry income   110,916    35,648 
Total other income, net   187,392    71,556 
Income before income tax   2,075,316    7,472,915 
Income tax expense   (988,916)   (2,504,845)
Net income  $1,086,400   $4,968,070 
Other comprehensive income          
Foreign currency translation adjustment   104,193    329,795 
Total comprehensive income  $1,190,593   $5,297,865 
           
Net income per share - Basic and diluted  $0.00*  $0.00*
Weighted average number of common shares outstanding          
- Basic and Diluted   1,701,181,423    1,701,181,423 

 

*Less than $0.01 per share

 

5

 

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

(In U.S. dollars)

 

   2021   2020 
Cash flows from operating activities        
Net income  $1,086,400   $4,968,070 
Adjustments to reconcile net income to cash used in operating activities:          
Depreciation   83,212    32,059 
Amortization of operating lease right-of-use assets   39,367    31,350 
Deferred tax   (293,366)   552,005 
Changes in operating assets and liabilities:          
Other receivables and prepayments   (5,186)   (27,577)
Accounts receivable   137,165    (28,585)
Amount due from a related company   -    235,930 
Amount due to a shareholder   (53,000)   53,000 
Accounts payable   115,561    (57,954)
Other payables and accrued liabilities   (220,493)   395,583 
Tax payables   (563,979)   415,984 
Contract liabilities   215,636    (87,490)
Receipt in advance   (45,909)   29,104 
Operating lease liabilities   (43,745)   (27,259)
Net cash generated from operating activities   451,663    6,484,220 
           
Cash flows from investing activities          
Purchase of property, plant and equipment   -    (369,021)
Acquisition of debt products   (2,789,855)   (2,897,689)
Redemption of debt products   5,889,695    - 
Loan to a related company   (123,994)   (147,912)
Repayment from a related company   313,343    - 
Net cash generated from (used in) investing activities   3,289,189    (3,414,622)
           
Cash flows from financing activities          
Proceed from borrowings   -    128,927 
Repayment of borrowings   (128,656)   - 
Advance from a director   121,090    41,271 
Net cash (used in) generated from financing activities   (7,566)   170,198 
           
Effect of exchange rates on cash   69,373    206,796 
           
Net increase in cash and cash equivalents   3,802,659    3,446,592 
Cash and cash equivalents at beginning of year   3,846,470    399,878 
Cash and cash equivalents at end of year  $7,649,129   $3,846,470 
           
Supplemental cash flow information          
Cash paid during the year for:          
Income taxes  $1,326,242   $1,536,857 
Withholding tax paid  $518,702   $- 
Non-cash financing activities Operating lease assets obtained in exchange for operating lease obligations  $171,419   $55,622 

 

 

6

 

 

 

View differences made from one to another to evaluate Entrepreneur Universe Bright Group's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Entrepreneur Universe Bright Group.

Continue

Assess how Entrepreneur Universe Bright Group's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Entrepreneur Universe Bright Group's Definitive Proxy Statement (Form DEF 14A) filed after their 2022 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Financial Statements, Disclosures and Schedules

Inside this 8-K Corporate News

Material Contracts, Statements, Certifications & more

Entrepreneur Universe Bright Group provided additional information to their SEC Filing as exhibits

Ticker: EUBG
CIK: 1171326
Form Type: 8-K Corporate News
Accession Number: 0001213900-22-020166
Submitted to the SEC: Fri Apr 15 2022 4:41:17 PM EST
Accepted by the SEC: Fri Apr 15 2022
Period: Friday, April 15, 2022
Industry: Motion Picture And Video Tape Production
Events:
  1. Earnings Release
  2. Financial Exhibit
  3. Regulated Disclosure

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/eubg/0001213900-22-020166.htm