Sharing Economy International Reports Full Year 2018 Results

WUXI, Jiangsu Province, China, April 18, 2019 /PRNewswire/ — Sharing Economy International Inc. (“SEII” or “the Company”) (OTC Markets: SEII), a clean era and sharing economic system business enterprise that designs, manufactures and distributes of proprietary excessive and coffee temperature dyeing and finishing machinery to the fabric industry, and is engaged inside the improvement of sharing financial system systems and condominium associated agencies, these days announced its economic consequences for year ended December 31, 2018.
“In 2018, our legacy dyeing and completing business endured facing numerous challenges including tough economic conditions, growing uncooked substances charges and compelled closures by means of the Chinese authorities which adversely impacted our monetary results for the year. We additionally recorded $eight.6 million in impairment losses associated with patent use rights and the disposition of manufacturing equipment at the side of an $eight.Nine million loss on our sun farm equity technique funding following the Chinese government’s halt on new solar farm installations and reduced subsidies for sun farms already under production” stated Mr. Jianhua Wu, Chairman, and CEO of SEII. “Given the demanding situations dealing with our existing production operations, we retain to search for new growth possibilities for the Company. In 2018, we set up new sharing economy corporations in peer-to-peer errand services, coworking, and three-D virtual excursions, and are making good development in growing our online condo sharing enterprise in Asia.”
Mr. Parkson Yip, Vice President of SEII, commented, “While the development of our sharing economic system agencies is dependent on extra capital to fund their increase, we made splendid strides over the last year. In 2018 we released BuddiGo, our sharing platform that gives on call for shipping of items which include applications, flowers, cakes, and food shipping via ‘buddies’ who can spare idle time to run errands in the Hong Kong marketplace. During the 12 months, we had over 1,200 people officially registered as promote-side pals and that they finished over 500 shipping orders. Meanwhile, 3D Discovery generated over $0.2 million in sales in 2018 and keeps its paintings on Autocap, a mobile app which lets in customers to create an interactive digital tour of a physical area by using using a mobile phone camera. Finally, via our settlement with ECrent, we retain our prelaunch sports for our peer-to-peer condo sharing economy in Asia. We remain positive approximately the destiny of this commercial enterprise and are hopeful it’ll make a meaningful contribution to our top line in 2019.”
The full Year 2018 Results
Revenue for 2018 decreased by means of 30.9% to $nine.Five million, in comparison to $13.5 million for 2017. The Company’s dying and completing commercial enterprise generated drastically all revenue in 2018 because the forged rolled jewelry and related merchandise and petroleum and chemical device organizations had been discontinued in 2016 and the brand new sharing economy corporations are nonetheless in an early stage. Revenues declined because of an expected slowdown in shipments of low-emission airflow dyeing machines as many businesses inside the dyeing industry had already upgraded to new models and did now not require additional device, and orders for new low-emission airflow dyeing machines slowed down in 2018 and 2017 as capacity clients did now not have the economic assets or credit to buy equipment. In addition, apparel factories and different factories had been shut down during the last year by using China’s environmental bureau, which has been reducing electricity and fuel supply to decide compliance with China’s environmental laws, which contributed to the decline in sales.
Gross loss for 2018 turned into $four.Four million, in comparison to a gross lack of $156,000 for 2017. Gross margin becomes poor forty-six.Four% at some stage in 2018 as compared to poor 1.2% for 2017. The gross margin for 2018 was normally impacted with the aid of the decreased scale of operations due to lower revenues, that’s contemplated within the allocation of fixed expenses, especially such as depreciation, to value of revenues, and a boom in hard work and raw cloth charges.
Operating charges elevated by way of 135.0% to $28.4 million, as compared to $12.1 million in 2017. The boom becomes often because of better professional expenses within the form of inventory-primarily based compensation associated with imposing a new marketing strategy with the objective of improving lengthy-time period growth, an increase in salaries to aid new business opportunities, temporary lease price and a boom within the allowance for dubious bills. In addition, the Company recorded impairment losses of about $1.Nine million associated with the write-off it’s patent of use rights in September 2018 and approximately $6.Three million related to the disposition of producing a system in December 2018.
Other fee changed into $9.3 million, compared to the different price of $188,000 in 2017. The growth turned into typically due to an $eight.9 million loss in fairness investment in Shengxin, a developer and dressmaker of solar farms in China. In April 2018, Shengxin secured and invested in a massive solar PV challenge in Guizhou province, paid RMB40. Zero million for the mission rights and also engaged a neighborhood contractor to continue with constructing the venture. However, on June 1, 2018, the Chinese government halted set up of latest sun farms for the rest of the 12 months and decreased subsidies for projects already beneath creation. Due to tremendous doubt approximately the status of this assignment and recoverability of the Company’s investment, the Company fully impaired the price of its funding at some stage in the 0.33 zone of 2018.
Loss from continuing operations became $forty two.1 million, or $(7.15) per simple and diluted share, compared to a loss from continuing operations of $12.8 million, or $(6.Ninety nine) in step with a primary and diluted share in 2017.
Gain from discontinued operations (Refer to “Discontinued Operations” dialogue below) was $16,000, or $zero.00 in keeping with basic and diluted percentage. This compares to loss from discontinued operations of $98,000, or $(zero.05) in 2017.
Net loss for 2018 changed into $ forty-one.1 million, or $(7.15) in keeping with basic and diluted proportion, in comparison to internet lack of $12.Nine million, or $(7.04) according to a basic and diluted percentage, in 2017.
Basic and diluted income according to proportion had been based totally on five,753,698 and 1,832,900 weighted common shares fantastic, respectively, for the years ended December 31, 2018, and 2017. All percentage and in line with share information has been adjusted to mirror a 1-for-four opposite inventory split powerful March 20, 2017.
Financial Condition
As of December 31, 2018, SEII held coins and cash equivalents of $zero.Nine million as compared to $1.Zero million on December 31, 2017. Accounts receivable had been $four.3 million in comparison to $nine.1 million at December 31, 2017. Inventories were $6.4 million in comparison to $4.6 million at December 31, 2017. The Company had $2.Three million in short-time period bank loans payable at December 31, 2018, down barely from $2.5 million at December 31, 2017. Working capital turned into $10.6 million at December 31, 2018, compared to $13.Five million on December 31, 2017. Stockholders’ fairness becomes $35.Four million on December 31, 2017.
In 2018, the Company used $2.5 million in cash waft from operations. The Company used $72,000 in coins go with the flow from investing sports and generated $2.Zero million in coins waft from financing activities, typically because of proceeds $0.9 million in from the sale of a convertible word, proceeds from the sale of not unusual inventory of $zero.3 million and advances from a belated birthday party of $1.Four million.