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Entrepreneur Universe Bright Group (EUBG) SEC Filing 8-K Material Event for the period ending Wednesday, March 16, 2022

Entrepreneur Universe Bright Group

CIK: 1171326 Ticker: EUBG

Exhibit 99.1

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP Announces 2022 Q1 Financial Results

 

Xi’an, China, May 16, 2022 -- ENTREPRENEUR UNIVERSE BRIGHT GROUP (“EUBG” or the “Company”) (OTCBB: EUBG), a digital marketing consulting company, today announced its unaudited financial results for the first quarter ended March 31, 2022.

 

Mr. Guolin Tao, CEO of Entrepreneur Universe Bright Group commented, “As of December 31, 2021 and March 31, 2022, 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.”

 

“Substantially all of the Company’s revenues and operations are concentrated in China. Consequently, our results of operations and financial performances have been affected since 2020 and into the first quarter of 2022. Due to widespread economic disruptions during the outbreak, demand for the Company’s consulting services by small and medium-sized enterprises were also adversely affected. Specifically, as a result of government mandated closures of non-essential business in China, many of the Company’s customers’ business were suspended while others permanently closed their businesses. From December 22, 2021 to January 24, 2022, Xian city, the PRC, went into lockdown following a coronavirus outbreak that officials attributed to the delta variant. This affected both the Company’s digital marketing consulting services and our KOL Training Related Services. As such, our revenue and net income decreased by 39.1% and 59.5%, respectively, from Q1 2021 to Q1 2022 ” Mr. Tao added.

 

First Quarter 2022 Unaudited Financial Results

 

   Three months ended
March 31,
 
   2022   2021 
Revenue  $1,209,004   $1,983,860 
Cost of revenue   (312,479)   (219,321)
Gross profit   896,525    1,764,539 
Selling expenses   (16,595)   (84,254)
General and administrative expenses   (311,288)   (227,366)
Total other income, net   101,822    37,702 
Income before income tax   670,464    1,490,621 
Income tax expense   (279,291)   (523,985)
Net income  $391,173   $966,636 

Revenue and cost of revenue: During the three months ended March 31, 2022, we generated revenue of $1,209,004 compared to $1,983,860 for the three months ended March 31, 2021, representing a decrease of $774,856 or 39.1% 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 $1,243,700 as compared with last period. This was because the end customers became more patience and cautious in choosing online courses. We continued to seek for different business opportunities to stabilize our income streams. During the three months ended March 31, 2022, we generated $278,573 from our new digital training related services and $259,473 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. Cost of revenue was $312,479 for the three months ended March 31, 2022 compared to $219,321 for the three months ended March 31, 2021. The cost of revenue for the three months ended March 31, 2022 increased because we incurred agency fees of $202,350 for the digital training related services during the period. No such service was provided in prior period. For the three months ended March 31, 2021, the cost of revenue mainly represented the staff costs for our consulting services.

Selling expenses: During the three months ended March 31, 2022, we incurred $16,595 selling expenses compared to $84,254 for the three months ended March 31, 2021, representing a decrease of $67,659 or 80.3% as compared with the prior period. The decrease of selling expenses was mainly due to the tightening of entertainment policies during the period and the staff costs incurred in selling activities were dropped by US$25,230 or 61.4% for the three months ended March 31, 2022.

General and administrative expenses: During the three months ended March 31, 2022, we incurred $311,288 general and administrative expenses compared to $227,366 for the three months ended March 31, 2021, representing an increase of $83,922 or 36.9% as compared with the prior period. Our general and administrative expenses consisted mainly of audit fees, professional fees, payroll expenses and consultancy fees.

For the three months ended March 31, 2022, we incurred audit fees, professional fees and consultancy fees of $15,086, $88,331 and $21,686, respectively, to assist us in complying with the relevant reporting requirements. For the three months ended March 31, 2021, we incurred audit fees, professional fees and consultancy fees of $3,755, $16,995 and $18,357, respectively.

Total other income, net: During the three months ended March 31, 2022, we generated net other income of $101,822 compared to $37,702 for the three months ended March 31, 2021, representing an increase of $64,120 or 170.1% as compared with the prior period. Our other income mainly consisted of bank interest income, exchange rate differences and certain sundry incomes

 

Net income: As a result of the above, we generated a net income of $391,173 and $966,636 for the three months ended March 31, 2022 and 2021, respectively.

 

Cash and cash equivalents. As of March 31, 2022 and December 31, 2021, $7,735,873 and $7,649,129 of the Company’s cash and cash equivalents, respectively were held at financial institutions located in the PRC and Hong Kong that management believes to be of high credit quality.

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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/.

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: +1-571-464-9470 (from U.S.)

+86 138-1176-8559 (from China)

 

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ENTREPRENEUR UNIVERSE BRIGHT GROUP

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2022 AND DECEMBER 31, 2021

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

 

   March 31,
2022
   December 31,
2021
 
    (unaudited)      
ASSETS          
CURRENT ASSETS          
Cash and cash equivalents  $7,735,873   $7,649,129 
Accounts receivable   334,766    67,940 
Other receivables and prepayments   67,616    55,925 
Total current assets   8,138,255    7,772,994 
           
NON-CURRENT ASSETS          
Plant and equipment, net   269,322    281,448 
Operating lease right-of-use assets, net   133,155    146,698 
Total non-current assets   402,477    428,146 
           
TOTAL ASSETS  $8,540,732   $8,201,140 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
CURRENT LIABILITIES          
Accounts payable  $16,524   $115,833 
Other payables and accrued liabilities   308,246    402,158 
Contract liabilities   146,180    216,142 
Receipt in advance   -      5,161 
Operating lease liabilities, current   58,795    59,370 
Tax payables   199,536    39,545 
Amount due to a director   170,721    171,443 
Total current liabilities   900,002    1,009,652 
           
NON-CURRENT LIABILITY          
Deferred tax liabilities   418,719    342,546 
Operating lease liabilities, non-current   74,359    87,328 
Total non-current liabilities   493,078    429,874 
           
TOTAL LIABILITIES   1,393,080    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 March 31, 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 March 31, 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)   33,770    (357,403)
Accumulated other comprehensive income   424,805    429,940 
Total stockholders’ equity   7,147,652    6,761,614 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $8,540,732   $8,201,140 

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ENTREPRENEUR UNIVERSE BRIGHT GROUP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021 (UNAUDITED)

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

 

   Three months ended March 31, 
   2022   2021 
Revenue  $1,209,004   $1,983,860 
Cost of revenue   (312,479)   (219,321)
Gross profit   896,525    1,764,539 
Selling expenses   (16,595)   (84,254)
General and administrative expenses   (311,288)   (227,366)
Profit from operations   568,642    1,452,919 
Other income (expenses):          
Interest income   10,330    16,240 
Exchange gain (loss), net   60    (4,613)
Sundry income   91,432    26,075 
Total other income, net   101,822    37,702 
Income before income tax   670,464    1,490,621 
Income tax expense   (279,291)   (523,985)
Net income  $391,173   $966,636 
Other comprehensive income          
Foreign currency translation adjustment   (5,135)   24,465 
Total comprehensive income  $386,038   $991,101 
           
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

 

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ENTREPRENEUR UNIVERSE BRIGHT GROUP

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021(UNAUDITED)

(In U.S. dollars)

 

   Three months ended
March 31,
 
   2022   2021 
Cash flows from operating activities          
Net income  $391,173   $966,636 
Adjustments to reconcile net income to cash used in operating activities:          
Depreciation   21,370    20,699 
Amortization of operating lease right-of-use assets   13,894    12,828 
Deferred tax   76,023    (385,686)
Changes in operating assets and liabilities:          
Other receivables and prepayments   (11,678)   (67,730)
Accounts receivable   (266,748)   (44,332)
Accounts payable   (99,336)   -   
Other payables and accrued liabilities   (93,952)   (88,520)
Tax payables   159,941    (154,088)
Contract liabilities   (70,034)   -   
Receipt in advance   (5,162)   (42,602)
Operating lease liabilities   (13,895)   (15,005)
Net cash generated from operating activities   101,596    202,200 
           
Cash flows from investing activities          
Purchase of property, plant and equipment   (8,554)   -   
Acquisition of debt products   -      (2,775,970)
Redemption of debt products   -      5,706,160 
Loan to a related company   -      (500,165)
Repayment from a related company   -      (63,526)
Net cash (used in) generated from investing activities   (8,554)   2,366,499 
           
Cash flows from financing activities          
Repayment of borrowings   -      (128,908)
Net cash used in financing activities   -      (128,908)
           
Effect of exchange rates on cash   (6,298)   7,849 
           
Net increase in cash and cash equivalents   86,744    2,447,640 
Cash and cash equivalents at beginning of period   7,649,129    3,846,470 
Cash and cash equivalents at end of period  $7,735,873   $6,294,110 
           
Supplemental cash flow information          
Cash paid during the period for:          
Income taxes  $44,397   $547,640 
Withholding tax paid  $-     $516,120 

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Ticker: EUBG
CIK: 1171326
Form Type: 8-K Corporate News
Accession Number: 0001213900-22-027077
Submitted to the SEC: Mon May 16 2022 4:03:53 PM EST
Accepted by the SEC: Mon May 16 2022
Period: Wednesday, March 16, 2022
Industry: Motion Picture And Video Tape Production
Events:
  1. Earnings Release
  2. Financial Exhibit
  3. Regulated Disclosure

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