BEIJING, May 20, 2019 (GLOBE NEWSWIRE) -- China Bat Group, Inc. (GLG) (the "Company"), an emerging used luxurious car rental service provider headquartered in Beijing, China, today announced its financial results for the first quarter ended March 31, 2019.
Mr. Jiaxi Gao, CEO and President of China Bat Group, Inc., comments, “We are pleased to announce our financial results for the first quarter of fiscal year 2019. Our income from operating lease increased sequentially to $0.4 million for the first quarter of 2019 from $0.25 million in fourth quarter of 2018, as our luxury car leasing business has continued to expand since its inception in May 2018.”
Mr. Gao continued, “We will continue to execute our growth strategy to discover high growth opportunities in the luxurious car rental market to meet the demand for brand name luxurious cars while maintaining high standards of industry transparency and information privacy in our promotional efforts.”
First Quarter 2019 Financial Highlights
- Income from operating lease was $0.40 million, compared with nil for the first quarter of 2018.
- Net loss was $1.83 million, compared with $0.39 million for the first quarter of 2018.
- Net income from discontinued operations was nil, compared with $0.18 million for the first quarter of 2018.
- Basic and diluted loss per share was $0.354, compared with $0.097 for the first quarter of 2018.
First Quarter 2019 Financial Results
Income from operating lease
Income from operating lease was $0.40 million for the three months ended March 31, 2019. The operating lease income is recognized on a straight-line basis over the scheduled lease term. Because the Company just launched its new business of lease services of used luxury cars in May 2018, the Company did not generate any revenue for the three months ended March 31, 2018.
Cost of operating lease assets
The cost of operating lease assets was comprised of the depreciation expenses of used luxurious cars which were under operating lease and other car related expenses. The Company charged depreciation expenses of idle used luxurious cars into other operating expenses. For the three months ended March 31, 2019, the Company charged depreciation expenses of $23,588 and $23,270 to “cost of operating lease assets” and “other operating expenses”, respectively. The net depreciation expense on operating lease assets was nil for the three months ended March 31, 2018.
Operating expenses primarily consisted of salary and employee surcharge, office rental expense, business tax and surcharge, changes in fair value of other noncurrent liabilities, professional service fees, and other office supplies. Operating expenses increased by $1.44 million, or 256%, to $2.00 million for the three months ended March 31, 2019 from $0.56 million for the same period of last year. The increase was mainly attributable to combined effects of the increase of salary and employee surcharges as a result of the issuance of 502,391 restricted shares as compensations to the employees, increase of legal and consulting expenses of $0.32 million, provision of impairment loss on one operating lease asset of $0.10 million, and increase of other expenses of $0.10 million.
Net income from discontinued operations
For the three months ended March 31, 2019, the net income from discontinued operations was nil, compared with $0.18 million from discontinued operations of microcredit service for the same period of last year.
Net loss was $1.83 million for the three months ended March 31, 2019, compared with $0.39 million for the same period of last year. Basic and diluted loss per share was $0.354 for the three months ended March 31, 2019, compared with $0.097 for the same period of last year.
As of March 31, 2019, the Company had cash of $0.34 million, compared with $1.48 million as of December 31, 2018.
Net cash used in operating activities was $0.76 million for the three months ended March 31, 2019, compared to $0.61 million for the same period of last year.
Net cash used in investing activities was $1.00 million for the three months ended March 31, 2019, compared to net cash provided by investing activities of $0.15 million for the same period of last year.
Net cash provided by financing activities was $0.59 million for the three months ended March 31, 2019, compared to nil for the same period of last year.
About China Bat Group, Inc.
China Bat Group, Inc. (GLG) is an emerging used luxurious car rental service provider in China. The used luxurious car business is conducted under the brand name “BatCar” by the Company’s VIE entity, Tianxing Kunlun Technology Co. Ltd, from its headquarters in Beijing. Utilizing a streamlined, digital, transaction process, the Company endeavors to provide the best possible rental experience for its customers. For more information please visit ir.imbatcar.com
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Commercial Credit, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are 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 at 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.
For more information, please contact:
Ms. Tina Xiao
Ascent Investor Relations LLC
CHINA BAT GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
|March 31,||December 31,|
|Other current assets||656,569||87,922|
|Total current assets||997,264||1,572,038|
|Property and equipment, net||5,106||5,524|
|Operating lease assets, net||1,939,377||1,634,018|
|LIABILITIES AND SHAREHOLDERS’ EQUITY|
|Other current liabilities||178,290||185,049|
|Series A Preferred Stock (par value $0.001 per share, 1,000,000 shares authorized at December 31, 2018 and 2017, respectively; nil shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively)||$||-||$||-|
|Series B Preferred Stock (par value $0.001 per share, 5,000,000 shares authorized at March 31, 2019 and December 31, 2018, respectively; nil shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively)||-||-|
|Common stock (par value $0.001 per share, 100,000,000 shares authorized; 5,526,297 and 5,023,906 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively)*||5,526||5,024|
|Additional paid-in capital||29,649,052||28,765,346|
|Accumulated other comprehensive loss||(453,314||)||(511,057||)|
|Total Shareholders’ Equity||1,914,348||2,802,223|
|Total Liabilities and Shareholders’ Equity||$||2,941,747||$||3,211,580|
CHINA BAT GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|For the Three Months Ended |
|Income from operating lease||$||399,999||$||-|
|Cost of operating lease||(237,651||)||-|
|Salaries and employee surcharge||(1,059,551||)||(121,653||)|
|Business taxes and surcharge||(1,368||)||-|
|Changes in fair value of noncurrent liabilities||-||(147,540||)|
|Other operating expenses||(925,094||)||(281,095||)|
|Total operating expenses||(2,002,637||)||(562,427||)|
|Net loss from continuing operations before income taxes||(1,829,826||)||(562,427||)|
|Income tax expense||-||-|
|Net loss from continuing operations||$||(1,829,826||)||$||(562,427||)|
|Net income from discontinued operations||-||176,529|
|Other comprehensive income (loss)|
|Foreign currency translation adjustment||57,743||-|
|Reclassified to net income from discontinued operations||-||(125,220||)|
|Weighted Average Shares Outstanding-Basic and Diluted*||5,169,041||3,966,933|
|Loss per share- basic and diluted||$||(0.354||)||$||(0.097||)|
|Net loss per share from continuing operations – basic and diluted||$||(0.354||)||$||(0.142||)|
|Net income per share from discontinued operations – basic and diluted||$||-||$||0.045|
CHINA BAT GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|For the Three Months Ended |
|Cash Flows from Operating Activities:|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Depreciation of operating lease assets||46,858||-|
|Depreciation of property and equipment||551||-|
|Impairment loss on one operating lease asset||96,318||-|
|Restricted shares issued to employees||884,208||-|
|Gain on disposal of discontinued operations||-||(176,529||)|
|Changes in fair value of noncurrent liabilities||-||147,540|
|Changes in operating assets and liabilities:|
|Other current assets||29,320||-|
|Other current liabilities||(9,242||)||-|
|Net cash used in operating activities from discontinued operations||-||(193,759||)|
|Net Cash Used in Operating Activities||(758,633||)||(608,646||)|
|Cash Flows from Investing Activities:|
|Cash in connection with discontinued operations||-||(181,838||)|
|Purchases of operating lease assets||(406,757||)||-|
|Loan disbursed to third parties||(592,724||)||-|
|Net cash provided by investing activities from discontinued operations||-||332,966|
|Net Cash (Used in) Provided by Investing Activities||(999,481||)||151,128|
|Cash Flows from Financing Activities:|
|Borrowings from third parties||592,724||-|
|Net Cash Provided by Financing Activities||592,724||-|
|Effect of Exchange Rate Changes on Cash||21,969||42,631|
|Net Decrease in Cash||(1,143,421||)||(414,887||)|
|Cash at Beginning of Period||1,484,116||1,359,630|
|Cash at End of Period||$||340,695||$||944,743|