SHISHI, China, Sept. 3, 2021
/PRNewswire/ -- KBS Fashion Group Limited ("KBS" or the "Company")
(NASDAQ: KBSF), a leading fully-integrated casual menswear
company in China and through the brand of Luxventure, engaging
in cross-border merchandise, airfare and tourism business, today
announced its unaudited financial results for the first half of
fiscal year 2021 ended June 30,
2021.
Financial Highlights
Total revenues for the first half of 2021 were $12.7 million compared to $4.5 million for the same periods in 2020. It is
an increase of 183% from the same period in 2020 and exceeded the
full year revenue of 2020 by 17%.
Total revenue from tourism, airfare and cross-border merchandize
business segments for the first half of 2021 were $10.2 million compared to 0 million for the same
periods in 2020.
Gross margin for the first half of 2021 were 6% compared to 26%
for the same periods in 2020.
GAAP net loss and diluted loss per share for the first half year
of 2021 were $5.0 million and
$1.21, respectively, compared to net
loss and diluted loss per share of $3.1
million and $1.21,
respectively, for the same period in 2020.
Working capital was $13.3 million
as of June 30, 2021. Cash and
restricted cash totaled $14.1 million
as of June 30, 2021.
Ms. Sun Lei, Chief Executive
Officer of the Company, stated, "Our revenue for this period
exceeds revenue of the same period in 2020 by 183% and exceeds the
revenue of entire year of 2020 by 17%. The increase in revenue
is due to the acquisition of Flower Crown, which added three new
segments to our business through the Luxventure brand. Flower
Crown has been in full business operation for less than a year and
it has generated almost $12 million
revenue. We are more than pleased with the accelerated growth
of Flower Crown. We look forward to Flower Crown continuing
its revenue contribution, while our clothing business recovers from
the impact of COVID-19. "
|
As at June
30,
|
|
As at
December 31,
|
|
2021
|
|
2020
|
Non-current
assets
|
|
|
|
Property, plant and
equipment, net
|
2,778,426
|
|
2,837,609
|
Investment property,
net
|
8,091,037
|
|
8,274,195
|
Prepayments and
premiums under operating leases
|
2,828,252
|
|
2,339,406
|
Land use
rights
|
603,830
|
|
604,970
|
Deferred tax
assets
|
18,270,070
|
|
16,960,839
|
|
32,571,615
|
|
31,017,019
|
Current
assets
|
|
|
|
Inventories
|
2,199,904
|
|
1,854,997
|
Trade
receivables
|
9,279,256
|
|
11,352,617
|
Other receivables and
prepayments
|
784,833
|
|
1,549,002
|
Related party
receivables
|
298,218
|
|
-
|
Prepayments and
premiums under operating leases
|
87,837
|
|
80,494
|
Cash and cash
equivalents
|
14,104,354
|
|
16,621,290
|
|
26,754,402
|
|
31,458,400
|
Total
assets
|
59,326,017
|
|
62,475,419
|
|
|
|
|
Current
liabilities
|
|
|
|
Short term bank
loans
|
1,160,973
|
|
1,148,959
|
Trade and other
payables
|
2,027,930
|
|
5,356,542
|
Dividend
Payable
|
7,149,996
|
|
-
|
Due to related
parties
|
-
|
|
1,132,811
|
Contract
liabilities
|
186,627
|
|
257,529
|
Income tax
payable
|
2,958,083
|
|
47,916
|
|
13,483,609
|
|
7,943,757
|
Total
liabilities
|
13,483,609
|
|
7,943,757
|
|
|
|
|
Equity
|
|
|
|
Share
capital
|
575
|
|
341
|
Share
premium
|
14,160,013
|
|
11,312,643
|
Revaluation
reserve
|
184,272
|
|
184,272
|
Statutory surplus
reserve
|
6,084,836
|
|
6,084,836
|
Retained
profits
|
28,305,558
|
|
40,406,391
|
Foreign currency
translation reserve
|
(2,892,845)
|
|
(3,456,821)
|
|
45,842,409
|
|
54,531,662
|
Total liabilities
and equity
|
59,326,018
|
|
62,475,419
|
|
For the six months
ended
|
|
June 30,
2021
|
|
June 30,
2020
|
|
|
|
|
Revenue
|
12,709,722
|
|
4,488,527
|
Cost of
sales
|
(11,956,851)
|
|
(3,334,862)
|
Gross
profit
|
752,871
|
|
1,153,665
|
|
|
|
|
Other
income
|
24,159
|
|
195,703
|
Other
losses
|
(2,983,494)
|
|
(535,192)
|
Distribution and
selling expenses
|
(1,213,768)
|
|
(3,280,598)
|
Administrative
expenses
|
(2,622,510)
|
|
(1,593,570)
|
Loss from
operations
|
(6,042,742)
|
|
(4,059,992)
|
|
|
|
|
Finance
costs
|
(33,275)
|
|
(31,138)
|
|
|
|
|
Loss before
tax
|
(6,076,017)
|
|
(4,091,130)
|
|
|
|
|
Income tax
income
|
1,125,176
|
|
958,516
|
|
|
|
|
Loss for the
period
|
(4,950,841)
|
|
(3,132,614)
|
|
|
|
|
Other
comprehensive loss
|
|
|
|
- currency
translation differences
|
563,976
|
|
(1,848,413)
|
Total
comprehensive loss for the period
|
(4,386,865)
|
|
(4,981,027)
|
|
|
|
|
Loss per share of
common stock attributable to the Company
|
|
|
|
- Basic
|
(1.21)
|
|
(1.21)
|
- Diluted
|
(1.21)
|
|
(1.21)
|
Weighted average
shares outstanding:
|
|
|
|
- Basic
|
4,100,257
|
|
2,591,299
|
- Diluted
|
4,100,257
|
|
2,591,299
|
|
For the six months
ended
|
|
June 30,
2021
|
|
June 30,
2020
|
OPERATING
ACTIVITIES
|
|
|
|
Loss for the
period
|
(4,950,840)
|
|
(3,132,614)
|
Adjustments
for:
|
|
|
|
Share-based
payment
|
708,053
|
|
-
|
Finance
cost
|
33,275
|
|
31,138
|
Interest
income
|
(22,591)
|
|
(29,293)
|
Depreciation of
property, plant and equipment & investment property
|
586,235
|
|
349,161
|
Amortization of
prepayments and premiums under operating leases
|
50,512
|
|
42,825
|
Provision/ (reversal)
of inventory obsolescence
|
1,779
|
|
(14,827)
|
Bad debt provision of
trade receivables
|
2,981,680
|
|
777,847
|
Gain on disposal of
property, plant and equipment
|
-
|
|
6,900
|
Operating cash flows
before movements in working capital
|
(611,897)
|
|
(1,968,863)
|
|
|
|
|
Increase in trade and
other receivables
|
(486,463)
|
|
(572,964)
|
Increase in
inventories
|
(326,883)
|
|
(595,369)
|
Increase in other
current assets
|
(260,330)
|
|
-
|
Increase in deferred
tax assets
|
(1,130,469)
|
|
(958,516)
|
Decrease in trade and
other payables
|
(416,675)
|
|
(194,502)
|
Decrease in other
current liabilities
|
(73,503)
|
|
-
|
Decrease in income
tax payable
|
(44,515)
|
|
-
|
CASH USED IN
OPERATING ACTIVITIES
|
(3,350,735)
|
|
(4,290,214)
|
NET CASH USED IN
OPERATING ACTIVITIES
|
(3,350,735)
|
|
(4,290,214)
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
Interest
received
|
22,591
|
|
29,293
|
Proceeds on disposal
of property, plant and equipment
|
-
|
|
31,829
|
Purchase of property,
plant and equipment
|
(14,141)
|
|
-
|
NET CASH FROM
INVESTING ACTIVITIES
|
8,450
|
|
61,122
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
Proceeds from
issuance of preferred shares
|
1,500,000
|
|
-
|
Interest
paid
|
(33,275)
|
|
(31,138)
|
New bank loans
raised
|
1,159,525
|
|
1,065,152
|
Repayment of
borrowings
|
(1,159,525)
|
|
(1,065,152)
|
Advance from related
party
|
2,826
|
|
249,485
|
NET CASH FROM
FINANCING ACTIVITIES
|
1,469,551
|
|
218,347
|
|
|
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(1,872,734)
|
|
(4,010,745)
|
Effects of foreign
currency translation
|
(644,202)
|
|
(234,788)
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
16,621,290
|
|
20,620,478
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
14,104,354
|
|
16,374,945
|
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, nor may there be any sale of these
securities in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About KBS Fashion Group Limited
Headquartered in Shishi, China, KBS Fashion Group Limited,
through its subsidiaries, is engaged in the business of i)
designing, manufacturing, selling and distributing its own casual
menswear brand, KBS, through a network of 30 KBS branded
stores (as of Dec 31, 2019) and over a number of
multi-brand stores. Through the brand of Luxventure, it also
engages in cross-border merchandise, airfare and tourism
business. To learn more about the Company, please visit its
corporate website at www.kbsfashion.com.
Safe Harbor Statement
This press release may contain certain "forward-looking
statements" relating to the business of KBS Fashion Group Limited,
and its subsidiary companies. All statements, other than statements
of historical fact included herein, are "forward-looking
statements" in nature within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements,
often identified by the use of forward-looking terminology such as
"believes," "expects" or similar expressions, involve known and
unknown risks and uncertainties. Although the Company believes that
the expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. Investors should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including those discussed in the Company's periodic
reports that are filed with the Securities and Exchange Commission
and available on its website (http://www.sec.gov).
All forward-looking statements attributable to the Company or
persons acting on its behalf are expressly qualified in their
entirety by these factors. Other than as required under the
securities laws, the Company does not assume a duty to update these
forward-looking statements.
Related Links
http://www.kbsfashion.com
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SOURCE KBS Fashion Group Limited