Home > Overseas Investment News > ENTREPRENEUR UNIVERSE BRIGHT GROUP Announces 2023 Q1 Financial Results
ENTREPRENEUR UNIVERSE BRIGHT GROUP Announces 2023 Q1 Financial Results
2023-05-16

XI'AN, China, May 16, 2023 /PRNewswire/ -- ENTREPRENEUR UNIVERSE BRIGHT GROUP ("EUBG" or the "Company") (OTCQB: EUBG), a digital marketing consulting company, today announced its unaudited financial results for the first quarter ended March 31, 2023.

Mr. Guolin Tao, CEO and CFO of Entrepreneur Universe Bright Group commented, "In December 2022, China announced a nationwide loosening of its Covid-19 policy. We anticipate that the lingering effects of the pandemic on our business will not persist. We are dedicated to adapting and innovating our operations to meet the evolving needs of our customers. Moving forward, we remain committed to providing excellent products and services to our clients."

First Quarter of 2023 Unaudited Financial Results



Three Months Ended March 31,




2023



2022




$



% of
Revenues



$



% of
Revenues















Revenues


$

1,176,936




100

%


$

1,209,004




100

%

Cost of revenues



(114,554)




(10)

%



(312,479)




(26)

%

Gross profit



1,062,382




90

%



896,525




74

%

Selling Expenses:



(1,439)




0

%



(16,595)




(1)

%

General and administrative expenses



(423,502)




(36)

%



(311,288)




(26)

%

Total other income, net



86,289




7

%



101,822




8

%

Income before income tax



723,730




61

%



670,464




55

%

Income tax expense



(292,273)




(25)

%



(279,291)




(23)

%

Net income


$

431,457




37

%


$

391,173




32

%

Revenue and cost of revenue: During the three months ended March 31, 2023, we generated revenue of $1,176,936, which represents a slight decrease of $32,068 or 2.7% compared to the same period in the prior year. Because of a new income stream from a client engaged in live streaming business, the Company's operating revenue in RMB was actually increased compared to the prior period. Therefore, the decrease in operating revenue when measured in USD was due to exchange rate fluctuations.

Cost of revenue for the three months ended March 31, 2023 was $114,554, which represented a decrease of $197,925 or 63.3% compared to the same period in the prior year. The decrease in cost of revenue is mainly due to the absence of direct operating costs related to digital training services used in the current period. For the three months ended March 31, 2022, direct operating costs related to these services were $202,350.

Gross profit: The gross profit was $1,062,382 for the three months ended March 31, 2023, which represented an increase of $165,857 or 18.5% as compared to the same period in the prior year. The increase in gross profit was primarily due to the temporarily suspension of digital training services, which typically had lower profit margins in compared with other services offered by the company. As a result, the profit margin increased to 90% compared to 74% in the prior period, leading to an increase in gross profit.

Selling expenses: During the three months ended March 31, 2023, we incurred $1,439 selling expenses, which represented a decrease of $15,156 or 91.3% as compared to the same period in the prior year. The decrease of selling expenses was mainly due to the tightening of entertainment policies and no staff costs incurred in selling activities during the current period.

General and administrative expenses: During the three months ended March 31, 2023, we incurred $423,502 general and administrative expenses, which represented an increase of $112,214 or 36% as compared to the same period in the prior year. Our general and administrative expenses consisted mainly of audit fees, professional fees, payroll expenses and consultancy fees. The increase in general and administrative expenses was primarily due to an increase in audit and service fees related to the filing of a registration document during the period. Additionally, certain staff costs that were previously classified as selling expenses were reclassified as general and administrative expenses to better reflect their nature.

Total other income, net: During the three months ended March 31, 2023, we incurred net other income of $86,289, which represented a decrease of $15,533 or 15.3% as compared to the same period in the prior year. The different was mainly due to certain sundry income generated in the prior year that did not recur in the current period. Our net other income mainly consisted of bank interest income, exchange rate differences and sundry income.

Net income: As a result of the above, we generated a net income of $431,457 and $391,173 for the three months ended March 31, 2023 and 2022, respectively.

Cash and cash equivalents: As of March 31, 2023 and December 31, 2022, $7,089,325 and $7,193,591 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.

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: . 

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.  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 . 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:
Phone: +86-(029) 86100263

Investor Relations:
Tina Li
EverGreen Consulting Inc.
Email:
Mobile: (from China)
(from U.S.) 

ENTREPRENEUR UNIVERSE BRIGHT GROUP 


CONDENSED CONSOLIDATED BALANCE SHEETS


AS OF MARCH 31, 2023 AND DECEMBER 31, 2022


(UNAUDITED)


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






March 31,
2023



December 31,
2022









ASSETS







CURRENT ASSETS







Cash and cash equivalents


$

7,089,325



$

7,193,591


Accounts receivable



701,326




234,978


Other receivables and prepayments



77,656




73,069


Other receivables and prepayments – related party



2,068




-


Total current assets



7,870,375




7,501,638











NON-CURRENT ASSETS









Plant and equipment, net



171,333




188,889


Operating lease right-of-use assets, net



69,942




83,077


Total non-current assets



241,275




271,966











TOTAL ASSETS


$

8,111,650



$

7,773,604











LIABILITIES AND STOCKHOLDERS' EQUITY









CURRENT LIABILITIES









Other payables and accrued liabilities


$

273,806



$

369,727


Receipt in advance



-




1,710


Operating lease liabilities, current



55,610




54,705


Tax payables



214,571




94,758


Amount due to a director



3,490




167,936


Total current liabilities



547,477




688,836











NON-CURRENT LIABILITY









Deferred tax liabilities



249,678




172,196


Operating lease liabilities, non-current



14,332




28,372


Total non-current liabilities



264,010




200,568











TOTAL LIABILITIES



811,487




889,404











COMMITMENTS AND CONTINGENCIES


















STOCKHOLDERS' EQUITY









Preferred stock, par value $0.0001 per share, 1,100,000 shares authorized, Nil (December 31, 2022:
   Nil) shares issued and outstanding as of March 31, 2023



-




-


Common stock, par value $0.0001 per share; 1,800,000,000 shares authorized, 1,701,181,423
   (December 31, 2022: 1,701,181,423) shares issued and outstanding as of March 31, 2023



170,118




170,118


Additional paid-in capital



6,453,048




6,453,048


Statutory reserves



65,911




65,911


Retained earnings



478,672




47,215


Accumulated other comprehensive income



132,414




147,908


Total stockholders' equity



7,300,163




6,884,200


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$

8,111,650



$

7,773,604


 

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME


FOR THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022


(UNAUDITED)


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






Three months ended
March 31,




2023



2022


Revenue


$

1,176,936



$

1,209,004


Cost of revenue



(114,554)




(312,479)


Gross profit



1,062,382




896,525


Selling expenses



(1,439)




(16,595)


General and administrative expenses



(423,502)




(311,288)


Profit from operations



637,441




568,642


Other income (expenses):









Interest income



7,736




10,330


Exchange loss



20,548




60


Sundry income



58,005




91,432


Total other income, net



86,289




101,822


Income before income tax



723,730




670,464


Income tax expense



(292,273)




(279,291)


Net income


$

431,457



$

391,173


Other comprehensive income









Foreign currency translation adjustment



(15,494)




(5,135)


Total comprehensive income


$

415,963



$

386,038











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


 

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS


FOR THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022


(UNAUDITED)


(In U.S. dollars)






Three months ended
March 31,




2023



2022


Cash flows from operating activities









Net income


$

431,457



$

391,173


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









Depreciation



20,320




21,370


Amortization of operating lease right-of-use assets



13,535




13,894


Deferred tax



78,542




76,023


Changes in operating assets and liabilities:









Other receivables and prepayments



(6,397)




(11,678)


Accounts receivable



(467,163)




(266,748)


Accounts payable



-




(99,336)


Other payables and accrued liabilities



(96,320)




(93,952)


Tax payables



119,878




159,941


Contract liabilities



-




(70,034)


Receipt in advance



(1,724)




(5,162)


Operating lease liabilities



(13,536)




(13,895)


Net cash generated from operating activities



78,592




101,596











Cash flows used in investing activities









Purchase of property, plant and equipment



(1,893)




(8,554)











Cash flows used in financing activities









Repayment to a director



(164,440)




-











Effect of exchange rates on cash



(16,525)




(6,298)











Net (decrease) increase in cash and cash equivalents



(104,266)




86,744


Cash and cash equivalents at beginning of period



7,193,591




7,649,129


Cash and cash equivalents at end of period


$

7,089,325



$

7,735,873











Supplemental cash flow information









Cash paid during the period for:









Income taxes


$

95,524



$

44,397


 

 


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