EX-99.1 2 ea178572ex99-1_entrepre.htm PRESS RELEASE DATED MAY 15, 2023

Exhibit 99.1

 

ENTREPRENEUR UNIVERSE BRIGHT GROUP Announces 2023 Q1 Financial Results

 

Xi’an, China, May 15, 2023 -- 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: 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.  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.

 

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For more information, please contact:

 

The Company:

Jianyong Li

Email: [email protected]

Phone: +86-(029) 86100263

 

Investor Relations:

Tina Li
EverGreen Consulting Inc.
Email: [email protected]

Mobile: +86-13721971703 (from China)

+1-281-250-4349 (from U.S.)

 

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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 

 

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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

 

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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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