Exhibit 99.1
ENTREPRENEUR UNIVERSE BRIGHT GROUP Announces 2023 Q3 Financial Results
Xi’an, China, November 14, 2023 -- ENTREPRENEUR UNIVERSE BRIGHT GROUP (“EUBG” or the “Company”) (OTCBB: EUBG), a digital marketing consulting company, announced its unaudited financial results for the third quarter ended September 30, 2023.
Mr. Guolin Tao, CEO of Entrepreneur Universe Bright Group commented, “Over the course of the three months concluding on September 30, 2023, our company achieved noteworthy financial results. During this period, our total revenue amounted to $1,714,786, reflecting a remarkable growth rate of 113.9% when compared to the same period in the preceding year. This notable upturn in revenue can be primarily attributed to our highly valued consultation services, which we provided to a key client actively involved in the dynamic and rapidly expanding field of live streaming.
“Our commitment to excellence and our dedication to delivering tailored solutions have not only fostered strong client relationships but have also enabled us to position ourselves as a trusted and reliable partner within the competitive live streaming market. The impressive increase in revenue for the mentioned three-month period is a testament to our team's hard work, expertise, and ability to drive results for our clients. This expanded passage offers more context and detail about the company's performance and the factors contributing to its revenue growth.” Mr. Tao added.
Third Quarter 2023 Unaudited Financial Results
Unaudited Condensed Consolidated Statement of Operations for the Three Months Ended September 30, 2023 and 2022
| | | Three Months Ended September 30, | |
| | | 2023 | | | 2022 | |
| | | $ | | | % of
Revenues | | | $ | | | % of
Revenues | |
| | | | | | | | | | | | | |
| Revenues | | $ | 1,714,786 | | | | 100 | % | | $ | 801,784 | | | | 100 | % |
| Cost of revenues | | | (114,040 | ) | | | (7 | )% | | | (140,009 | ) | | | (17 | )% |
| Gross profit | | | 1,600,746 | | | | 93 | % | | | 661,775 | | | | 83 | % |
| Selling Expenses: | | | (9,277 | ) | | | (1 | )% | | | (10,043 | ) | | | (1 | )% |
| General and administrative expenses | | | (380,211 | ) | | | (22 | )% | | | (423,931 | ) | | | (53 | )% |
| Total other income (expenses), net | | | 9,447 | | | | 1 | % | | | (124,016 | ) | | | (15 | )% |
| Income before income tax | | | 1,220,705 | | | | 71 | % | | | 103,785 | | | | 13 | % |
| Income tax expense | | | (479,535 | ) | | | (28 | )% | | | (135,784 | ) | | | (17 | )% |
| Net income | | $ | 741,170 | | | | 43 | % | | $ | (31,999 | ) | | | (4 | )% |
Revenue and cost of revenue: During the three months ended September 30, 2023, we generated revenue of $1,714,786, which represents an increase of $913,002 or 113.9% compared to the same period in the prior year. The increase was mainly contributed by our consultation services to a client engaged in live streaming business.
Cost of revenue for the three months ended September 30, 2023 was $114,040, which represented a slight decrease of $25,969 or 18.5% compared to the same period in the prior year.
Profit margin for the three months ended September 30, 2023 was 93.3%, which represents an increase of 10.8% compared to the same period in the prior year. By closing managing the number of employees, we were able to effectively control our labour costs. As a result, the cost of revenues, which primarily consisted of direct labour costs, did not increase in alignment with the revenue growth, resulting in an increase in profit margin.
Gross profit: The gross profit was $1,600,746 for the three months ended September 30, 2023, which represented an increase of $938,971 or 141.9% as compared to the same period in the prior year.
Net income (loss): We generated a net income of $741,170 and net loss of $31,999 for the three months ended September 30, 2023 and 2022, respectively.
Cash and cash equivalents. As of September 30, 2023 and December 31, 2022, $8,706,694 and $7,193,591 of the Company’s cash and cash equivalents, respectively were held at financial institutions and online payment platforms located in the PRC and Hong Kong that management believes to be of high credit quality.
Unaudited Condensed Consolidated Statement of Operations for the Nine months ended September 30, 2023 and 2022
| | | Nine months ended September 30, | |
| | | 2023 | | | 2022 | |
| | | $ | | | % of
Revenues | | | $ | | | % of
Revenues | |
| | | | | | | | | | | | | |
| Revenues | | $ | 4,597,664 | | | | 100 | % | | $ | 2,851,656 | | | | 100 | % |
| Cost of revenues | | | (337,175 | ) | | | (7 | )% | | | (565,820 | ) | | | (20 | )% |
| Gross profit | | | 4,260,489 | | | | 93 | % | | | 2,285,836 | | | | 80 | % |
| Selling Expenses: | | | (15,995 | ) | | | 0 | % | | | (34,957 | ) | | | (1 | )% |
| General and administrative expenses | | | (1,194,007 | ) | | | (26 | )% | | | (1,066,604 | ) | | | (37 | )% |
| Total other income, net | | | 40,260 | | | | 1 | % | | | 35,905 | | | | 1 | % |
| Income before income tax | | | 3,090,747 | | | | 67 | % | | | 1,220,180 | | | | 43 | % |
| Income tax expense | | | (1,227,673 | ) | | | (27 | )% | | | (595,156 | ) | | | (21 | )% |
| Net income | | $ | 1,863,074 | | | | 41 | % | | $ | 625,024 | | | | 22 | % |
Revenue and cost of revenue: During the nine months ended September 30, 2023, we generated revenue of $4,597,664, which represents an increase of $1,746,008 or 61.2% compared to the same period in the prior year. The increase was mainly contributed by our consultation services to a client engaged in live streaming business.
Cost of revenue for the nine months ended September 30, 2023 was $337,175, which represented a decrease of $228,645 or 40.4% 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 nine months ended September 30, 2022, direct operating costs related to these services were $185,220.
Profit margin for the three months ended September 30, 2023 was 92.6%, which represents an increase of 12.5% compared to the same period in the prior year. By closing managing the number of employees, we were able to effectively control our labor costs. As a result, the cost of revenues, which primarily consisted of direct labor costs, did not increase in alignment with the revenue growth, resulting in an increase in profit margin.
Gross profit: The gross profit was $4,260,489 for the nine months ended September 30, 2023, which represented an increase of $1,974,653 or 86.4% as compared to the same period in the prior year.
Net income: As a result of the above, we generated a net income of $1,863,074 and $625,024 for the nine months ended September 30, 2023 and 2022, respectively.
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 projections and “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 related to the Company’s business. 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.
For more information, please contact:
The Company:
Jianyong Li
Email: lijianyong@eubggroup.com
Phone: +86-(029) 86100263
Investor Relations:
Tina Li
EverGreen Consulting Inc.
Email: IR@changqingconsulting.com
Mobile: +86-13721971703 (from China)
+1-281-250-4349 (from U.S.)
ENTREPRENEUR UNIVERSE BRIGHT GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In U.S. dollars except for number of shares)
| | | September 30,
2023 | | | December 31,
2022 | |
| | | | | | | |
| ASSETS | | | | | | |
| CURRENT ASSETS | | | | | | |
| Cash and cash equivalents | | $ | 8,706,694 | | | $ | 7,193,591 | |
| Accounts receivable | | | 643,424 | | | | 234,978 | |
| Other receivables and prepayments | | | 40,231 | | | | 73,069 | |
| Total current assets | | | 9,390,349 | | | | 7,501,638 | |
| | | | | | | | | |
| NON-CURRENT ASSETS | | | | | | | | |
| Plant and equipment, net | | | 122,988 | | | | 188,889 | |
| Operating lease right-of-use assets, net | | | 39,999 | | | | 83,077 | |
| Total non-current assets | | | 162,987 | | | | 271,966 | |
| | | | | | | | | |
| TOTAL ASSETS | | $ | 9,553,336 | | | $ | 7,773,604 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
| CURRENT LIABILITIES | | | | | | | | |
| Other payables and accrued liabilities | | $ | 194,204 | | | $ | 369,727 | |
| Other payables and accrued liabilities – related party | | | 1,940 | | | | - | |
| Receipt in advance | | | - | | | | 1,710 | |
| Operating lease liabilities, current | | | 39,999 | | | | 54,705 | |
| Tax payables | | | 379,933 | | | | 94,758 | |
| Amount due to a director | | | 3,498 | | | | 167,936 | |
| Total current liabilities | | | 619,574 | | | | 688,836 | |
| | | | | | | | | |
| NON-CURRENT LIABILITY | | | | | | | | |
| Deferred tax liabilities | | | 302,205 | | | | 172,196 | |
| Operating lease liabilities, non-current | | | - | | | | 28,372 | |
| Total non-current liabilities | | | 302,205 | | | | 200,568 | |
| | | | | | | | | |
| TOTAL LIABILITIES | | | 921,779 | | | | 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 September 30, 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 September 30, 2023 | | | 170,118 | | | | 170,118 | |
| Additional paid-in capital | | | 6,453,048 | | | | 6,453,048 | |
| Statutory reserves | | | 65,911 | | | | 65,911 | |
| Retained earnings | | | 1,910,289 | | | | 47,215 | |
| Accumulated other comprehensive income | | | 32,191 | | | | 147,908 | |
| Total stockholders’ equity | | | 8,631,557 | | | | 6,884,200 | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 9,553,336 | | | $ | 7,773,604 | |
ENTREPRENEUR UNIVERSE BRIGHT GROUP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
(In U.S. dollars except for number of shares)
| | | For the three months ended
September 30, | | | For the nine months ended
September 30, | |
| | | 2023 | | | 2022 | | | 2023 | | | 2022 | |
| Revenue | | $ | 1,714,786 | | | $ | 801,784 | | | $ | 4,597,664 | | | $ | 2,851,656 | |
| Cost of revenue | | | (114,040 | ) | | | (140,009 | ) | | | (337,175 | ) | | | (565,820 | ) |
| Gross profit | | | 1,600,746 | | | | 661,775 | | | | 4,260,489 | | | | 2,285,836 | |
| Selling expenses | | | (9,277 | ) | | | (10,043 | ) | | | (15,995 | ) | | | (34,957 | ) |
| General and administrative expenses | | | (380,211 | ) | | | (423,931 | ) | | | (1,194,007 | ) | | | (1,066,604 | ) |
| Income from operations | | | 1,211,258 | | | | 227,801 | | | | 3,050,487 | | | | 1,184,275 | |
| Other income (expenses): | | | | | | | | | | | | | | | | |
| Interest income | | | 3,068 | | | | 10,522 | | | | 21,568 | | | | 33,489 | |
| Exchange loss | | | (2,936 | ) | | | (135,842 | ) | | | (56,566 | ) | | | (107,920 | ) |
| Sundry income | | | 9,315 | | | | 1,304 | | | | 75,258 | | | | 110,336 | |
| Total other income(expenses), net | | | 9,447 | | | | (124,016 | ) | | | 40,260 | | | | 35,905 | |
| Income before income tax | | | 1,220,705 | | | | 103,785 | | | | 3,090,747 | | | | 1,220,180 | |
| Income tax expense | | | (479,535 | ) | | | (135,784 | ) | | | (1,227,673 | ) | | | (595,156 | ) |
| Net income (loss) | | $ | 741,170 | | | $ | (31,999 | ) | | $ | 1,863,074 | | | $ | 625,024 | |
| Other comprehensive loss | | | | | | | | | | | | | | | | |
| Foreign currency translation adjustment | | | (22,896 | ) | | | (128,843 | ) | | | (115,717 | ) | | | (365,759 | ) |
| Total comprehensive income (loss) | | $ | 718,274 | | | $ | (160,842 | ) | | $ | 1,747,357 | | | $ | 259,265 | |
| | | | | | | | | | | | | | | | | |
| 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 |
ENTREPRENEUR UNIVERSE BRIGHT GROUP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
(In U.S. dollars)
| | | For the nine months ended
September 30, | |
| | | 2023 | | | 2022 | |
| Cash flows from operating activities | | | | | | |
| Net income | | $ | 1,863,074 | | | $ | 625,024 | |
| Adjustments to reconcile net income to cash generated from operating activities: | | | | | | | | |
| Depreciation | | | 59,558 | | | | 62,516 | |
| Amortization of operating lease right-of-use assets | | | 40,003 | | | | 40,575 | |
| Deferred tax liabilities | | | 129,523 | | | | (33,117 | ) |
| Changes in operating assets and liabilities: | | | | | | | | |
| Other receivables and prepayments | | | 30,257 | | | | 11,128 | |
| Accounts receivable | | | (437,017 | ) | | | (244,432 | ) |
| Accounts payable | | | - | | | | (111,527 | ) |
| Other payables and accrued liabilities | | | (164,298 | ) | | | (159,123 | ) |
| Tax payables | | | 301,211 | | | | 106,699 | |
| Contract liabilities | | | - | | | | (208,106 | ) |
| Receipt in advance | | | (1,678 | ) | | | (4,969 | ) |
| Operating lease liabilities | | | (40,003 | ) | | | (40,574 | ) |
| Net cash generated from operating activities | | | 1,780,630 | | | | 44,094 | |
| | | | | | | | | |
| Cash flows from investing activities | | | | | | | | |
| Purchase of property, plant and equipment | | | (1,849 | ) | | | (9,746 | ) |
| Loan receivables from an unrelated third party | | | - | | | | (1,060,394 | ) |
| Net cash used in investing activities | | | (1,849 | ) | | | (1,070,140 | ) |
| | | | | | | | | |
| Cash flows used in financing activities | | | | | | | | |
| Repayment to a director | | | (164,439 | ) | | | (3,490 | ) |
| Net cash used in financing activities | | | (164,439 | ) | | | (3,490 | ) |
| | | | | | | | | |
| Effect of exchange rates on cash | | | (101,239 | ) | | | (289,162 | ) |
| | | | | | | | | |
| Net increase (decrease) in cash and cash equivalents | | | 1,513,103 | | | | (1,318,698 | ) |
| Cash and cash equivalents at beginning of period | | | 7,193,591 | | | | 7,649,129 | |
| Cash and cash equivalents at end of period | | $ | 8,706,694 | | | $ | 6,330,431 | |
| | | | | | | | | |
| Supplemental cash flow information | | | | | | | | |
| Cash paid during the period for: | | | | | | | | |
| Income taxes | | $ | 650,101 | | | $ | 369,878 | |
| Withholding tax paid | | | - | | | | 151,485 | |
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