Last10K.com

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

Entrepreneur Universe Bright Group

CIK: 1171326 Ticker: EUBG

Exhibit 99.1

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP Announces 2022 Q2 Financial Results

 

Xi’an, China, August 15, 2022 – ENTREPRENEUR UNIVERSE BRIGHT GROUP (“EUBG” or the “Company”) (OTCBB: EUBG), a digital marketing consulting company, announced its unaudited financial results for the second quarter ended June 30, 2022.

 

Mr. Guolin Tao, CEO of Entrepreneur Universe Bright Group commented, “Due to the government measures taken to contain COVID-19, the offline activities of the Company’s PRC subsidiary were restricted from late January to May 2020, resulting in cancellations or postponements of the marketing efforts of our customers. 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, Xi’an city, the PRC, went into lockdown following a coronavirus outbreak that officials attributed to the delta variant. From April 16, 2022 to April 19, 2022, the city was under temporary controls of social activities after reporting more than 40 infections in half month. This affected both the Company’s digital marketing consulting services and our KOL Training Related Services.”

 

Second Quarter 2022 Unaudited Financial Results

 

   Three months ended
June 30,
 
   2022   2021 
Revenue  $840,868   $873,084 
Cost of revenue   (113,332)   (199,451)
Gross profit   727,536    673,633 
Selling expenses   (8,319)   (85,760)
General and administrative expenses   (331,385)   (351,935)
Total other income, net   58,099    32,392 
Income before income tax   445,931    268,330 
Income tax expense   (180,081)   (146,289)
Net income  $265,850   $122,041 

 

Revenue decreased by 3.7% to $840,868

 

Gross profit increased by 8.0% to $727,536

 

Net income increased by 117.8% to $265,850

 

Revenue and cost of revenue: During the three months ended June 30, 2022, we generated revenue of $840,868 compared to $873,084 for the three months ended June 30, 2021, representing a decrease of $32,216 or 3.7% as compared with the prior period. For the three months ended June 30, 2022, our revenue from consultancy services and sourcing and marketing services were $680,606 and $160,262, respectively; while revenue for the three months ended June 30, 2021 was wholly generated from our consultancy services. Cost of revenue was $113,332 for the three months ended June 30, 2022 compared to $199,451 for the three months ended June 30, 2021. The decrease of cost of revenue for the three months ended June 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.

 

 

 

 

Selling expenses: During the three months ended June 30, 2022, we incurred $8,319 selling expenses compared to $85,760 for the three months ended June 30, 2021, representing a decrease of $77,441 or 90.3% 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 $42,974 or 90.5% for the three months ended June 30, 2022.

 

General and administrative expenses: During the three months ended June 30, 2022, we incurred $331,385 general and administrative expenses compared to $351,935 for the three months ended June 30, 2021, representing a decrease of $20,550 or 5.8% as compared with the prior period. The slight decrease for the three months ended June 30, 2022 was mainly due to less audit fees and professional fees charged by the professional parties. Our general and administrative expenses consisted mainly of audit fees, professional fees, payroll expenses and consultancy fees.

 

Total other income, net: During the three months ended June 30, 2022, we generated net other income of $58,099 compared to $32,392 for the three months ended June 30, 2021, representing an increase of $25,707 or 79.4% as compared with the prior period. Our other income mainly consisted of bank interest income, exchange rate differences and certain sundry incomes.

  

Income tax expense: During the three months ended June 30, 2022, we incurred income tax expense of $180,081 compared to $146,289 for the three months ended June 30, 2021, representing an increase of $33,792 or 23.1% as compared with the prior period. The income tax expenses were charged in China.

 

For the three months ended June 30, 2022, our income tax expenses comprised of current tax and deferred tax expenses of $131,409 and $48,672, respectively, compared to $122,745 and $23,544 for the three months ended June 30, 2021.

 

Net income: As a result of the above, we generated a net income of $265,850 and $122,041 for the three months ended June 30, 2022 and 2021, respectively, representing an increase of $ 143,809 or 117.8% as compared with the prior period.

 

Cash and cash equivalents. As of June 30, 2022 and December 31, 2021, $7.64 million and $7.65 million 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.

 

Six Months Ended June 30, 2022 Unaudited Financial Results

 

   Six months ended
June 30,
 
   2022   2021 
Revenue  $2,049,872   $2,856,944 
Cost of revenue   (425,811)   (418,772)
Gross profit   1,624,061    2,438,172 
Selling expenses   (24,914)   (170,014)
General and administrative expenses   (642,673)   (579,301)
Total other income, net   159,921    70,094 
Income before income tax   1,116,395    1,758,951 
Income tax expense   (459,372)   (670,274)
Net income  $657,023   $1,088,677 

 

Revenue decreased by 28.2% to $2,049,872

 

Gross profit decreased by 33.4% to $1,624,061

 

Net income decreased by 39.7% to $657,023

 

2

 

 

Revenue and cost of revenue: During the six months ended June 30, 2022, we generated revenue of $2,049,872 compared to $2,856,944 for the six months ended June 30, 2021, representing a decrease of $807,072 or 28.2% 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 $1,950,347 as compared with last period. This was because the end customers became more patient and cautious in choosing online courses. We continued to seek for different business opportunities to stabilize our income streams. During the six months ended June 30, 2022, we generated $272,962 from our new digital training related services and $576,582 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. As of the date of this filing, the digital training related services with Jade Bird remain suspended. Therefore, we expected the new revenue will not be available to compensate the revenue reduction until further notice. Cost of revenue was $425,811 for the six months ended June 30, 2022 compared to $418,772 for the six months ended June 30, 2021. For the six months ended June 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.

 

Selling expenses: During the six months ended June 30, 2022, we incurred $24,914 selling expenses compared to $170,014 for the six months ended June 30, 2021, representing a decrease of $145,100 or 85.3% 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 $70,200 or 80.0% for the six months ended June 30, 2022.

 

General and administrative expenses: During the six months ended June 30, 2022, we incurred $642,673 general and administrative expenses compared to $579,301 for the six months ended June 30, 2021, representing an increase of $63,372 or 10.9% as compared with the prior period. The increase for the six months ended June 30, 2022 was mainly due certain senior management no longer directly involved in performing the services but focused on management work. Therefore, more senior management costs were incurred during the period. Our general and administrative expenses consisted mainly of audit fees, professional fees, payroll expenses and consultancy fees.

  

Total other income, net: During the six months ended June 30, 2022, we generated net other income of $159,921 compared to $70,094 for the six months ended June 30, 2021, representing an increase of $89,827 or 128.2% as compared with the prior period. Our other income mainly consisted of bank interest income, exchange rate differences and certain sundry incomes.

  

Income tax expense: During the six months ended June 30, 2022, we incurred income tax expense of $459,372 compared to $670,274 for the six months ended June 30, 2021, representing a decrease of $210,902 or 31.5% as compared with the prior period. The income tax expenses were charged in China.

 

For the six months ended June 30, 2022, our income tax expenses comprised of current tax and deferred tax expenses of $335,479 and $123,893, respectively, compared to $521,510 and $148,764 for the six months ended June 30, 2021. The decrease of the current tax and deferred tax was mainly aligned with the reduction of revenue and gross profit during the period.

 

Net income: As a result of the above, we generated a net income of $657,023 and $1,088,677 for the six months ended June 30, 2022 and 2021, respectively.

 

3

 

 

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:

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

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

+86 13811768559 (from China)

 

4

 

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2022 AND DECEMBER 31, 2021

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

 

   June 30,
2022
   December 31,
2021
 
   (unaudited)     
ASSETS        
CURRENT ASSETS        
Cash and cash equivalents  $7,637,260   $7,649,129 
Accounts receivable   270,939    67,940 
Other receivables and prepayments   35,369    55,925 
Total current assets   7,943,568    7,772,994 
           
NON-CURRENT ASSETS          
Plant and equipment, net   234,194    281,448 
Operating lease right-of-use assets, net   112,683    146,698 
Total non-current assets   346,877    428,146 
           
TOTAL ASSETS  $8,290,445   $8,201,140 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
CURRENT LIABILITIES          
Accounts payable  $-   $115,833 
Other payables and accrued liabilities   222,279    402,158 
Contract liabilities   -    216,142 
Receipt in advance   -    5,161 
Operating lease liabilities, current   54,964    59,370 
Tax payables   158,269    39,545 
Amount due to a director   170,713    171,443 
Total current liabilities   606,225    1,009,652 
           
NON-CURRENT LIABILITY          
Deferred tax liabilities   444,780    342,546 
Operating lease liabilities, non-current   57,719    87,328 
Total non-current liabilities   502,499    429,874 
           
TOTAL LIABILITIES   1,108,724    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 June 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 June 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)   299,620    (357,403)
Accumulated other comprehensive income   193,024    429,940 
Total stockholders’ equity   7,181,721    6,761,614 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $8,290,445   $8,201,140 

 

5

 

 

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021 (UNAUDITED)

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

 

   For the three months ended
June 30,
   For the six months ended
June 30,
 
   2022   2021   2022   2021 
Revenue   840,868    873,084   $2,049,872   $2,856,944 
Cost of revenue   (113,332)   (199,451)   (425,811)   (418,772)
Gross profit   727,536    673,633    1,624,061    2,438,172 
Selling expenses   (8,319)   (85,760)   (24,914)   (170,014)
General and administrative expenses   (331,385)   (351,935)   (642,673)   (579,301)
Profit from operations   387,832    235,938    956,474    1,688,857 
Other income (expenses):                    
Interest income   12,637    34,039    22,967    50,279 
Exchange gain (loss)   27,862    (7,432)   27,922    (12,045)
Sundry income   17,600    5,785    109,032    31,860 
Total other income, net   58,099    32,392    159,921    70,094 
Income before income tax   445,931    268,330    1,116,395    1,758,951 
Income tax expense   (180,081)   (146,289)   (459,372)   (670,274)
Net income  $265,850    122,041   $657,023   $1,088,677 
Other comprehensive income (loss)                    
Foreign currency translation adjustment   (231,781)   41,517    (236,916)   65,982 
Total comprehensive income  $34,069    163,558   $420,107   $1,154,659 
                     
Net 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

 

6

 

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2022 AND 2021(UNAUDITED)

(In U.S. dollars)

 

   Six months ended
June 30,
 
   2022   2021 
Cash flows from operating activities        
Net income  $657,023   $1,088,677 
Adjustments to reconcile net income to cash used in operating activities:          
Depreciation   42,322    41,479 
Amortization of operating lease right-of-use assets   27,395    25,886 
Deferred tax   123,894    (367,854)
Changes in operating assets and liabilities:          
Other receivables and prepayments   19,049    (82,283)
Accounts receivable   (213,535)   118,772 
Accounts payable   (113,645)   - 
Other payables and accrued liabilities   (170,904)   (303,307)
Tax payables   125,057    (460,122)
Contract liabilities   (212,060)   - 
Receipt in advance   (5,064)   (8,289)
Operating lease liabilities   (27,395)   (45,555)
Net cash generated from operating activities   252,137    7,404 
           
Cash flows from investing activities          
Purchase of property, plant and equipment   (8,381)   - 
Acquisition of debt products   -    (2,781,346)
Redemption of debt products   -    5,717,211 
Loan receivables to a unrelated third party   -    (499,908)
Loan to a related company   -    (123,615)
Repayment from a related company   -    312,386 
Net cash (used in) generated from investing activities   (8,381)   2,624,728 
           
Cash flows from financing activities          
Repayment of borrowings   -    (128,842)
Advance from a director   -    69,532 
Net cash used in financing activities   -    (59,310)
           
Effect of exchange rates on cash   (255,625)   38,660 
           
Net (decrease) increase in cash and cash equivalents   (11,869)   2,611,482 
Cash and cash equivalents at beginning of period   7,649,129    3,846,470 
Cash and cash equivalents at end of period  $7,637,260   $6,457,952 
           
Supplemental cash flow information          
Cash paid during the period for:          
Income taxes  $224,055   $981,886 
Withholding tax paid  $-   $517,120 

 

 

7

 

 

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: 0001213900-22-047937
Submitted to the SEC: Mon Aug 15 2022 2:35:51 PM EST
Accepted by the SEC: Mon Aug 15 2022
Period: Monday, August 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/0001213900-22-047937.htm