WUXI, Jiangsu Province, China, April 18, 2019,/PRNewswire/ — Sharing Economy International Inc. (“SEII” or “the Company”) (OTC Markets: SEII), a clean era and sharing economy employer that designs, manufactures, and distributes proprietary excessive and occasional temperature dyeing and finishing machinery to the textile industry, and is engaged in the improvement of sharing economy systems and condominium associated businesses, nowadays introduced its monetary results for yr ended December 31, 2018.
“In 2018, our legacy dyeing and completing business continued to stand numerous demanding situations which include tough financial situations, rising raw materials expenses and compelled closures via the Chinese government which adversely impacted our financial consequences for the year. We additionally recorded $8.6 million in impairment losses related to patent use rights and the disposition of manufacturing device, along with an $8.9 million loss on our solar farm equity technique investment following the Chinese government’s halt on new solar farm installations and decreased subsidies for solar farms already below creation,” stated Mr. Jianhua Wu, Chairman, and CEO of SEII. “Given the demanding situations dealing with our present production operations, we continue to look for new growth possibilities for the Company. In 2018, we mounted new sharing economic system businesses in peer-to-peer errand offerings, coworking, and three-D digital tours, and are making exact progress in growing our online rental sharing enterprise in Asia.”
Mr. Parkson Yip, Vice President of SEII, commented, “While the development of our sharing financial system corporations is dependent on additional capital to fund their boom, we made extraordinary strides over the past year. In 2018 we released BuddiGo, our sharing platform that offers on-demand transport of gadgets including applications, flowers, cakes, and meal delivery via ‘buddies’ who can spare idle time to run errands inside the Hong Kong market. During the 12 months, we had over 1 two hundred individuals formally registered as promote-facet buddies, and that they completed over 500 shipping orders. Meanwhile, 3-d Discovery generated over $0.2 million in revenue in 2018 and continues its paintings on Autocap, a mobile app that lets customers to create an interactive digital excursion of a bodily space by using a cellular telephone digital camera. Finally, through our settlement with ECrent, we maintain our prelaunch sports for our peer-to-peer condo sharing financial system in Asia. We remain optimistic about the future of this business and are hopeful it’ll make a meaningful contribution to our top line in 2019.”
The full Year 2018 Results
Revenue for 2018 decreased utilizing 30—Nine% to $9.Five million, in comparison to $13.Five million for 2017. The Company’s dying and completing commercial enterprise generated substantially all sales in 2018 because the forged rolled earrings and associated merchandise and petroleum and chemical device organizations were discontinued in 2016. The new sharing economic system organizations are still in an early degree. Revenues declined because of an anticipated slowdown in shipments of low-emission airflow dyeing machines. Many agencies within the dyeing industry had already upgraded to new fashions and no longer required an extra device. Orders for brand new low-emission airflow dyeing machines bogged down in 2018 and 2017 as capability clients no longer had the financial sources or credit to purchase the system. Besides, clothing factories and different factories had been close down for the duration of the final yr by China’s environmental bureau, which has been cutting strength and gasoline supply to determine compliance with China’s environmental laws, contributing to the decline in sales.
Gross loss for 2018 becomes $four.4 million, as compared to a gross lack of $156,000 for 2017. Gross margin changed into poor forty-six—Four% all through 2018 compared to poor 1.2% for 2017. The gross margin for 2018 was more often than not impacted with the aid of the reduced scale of operations because of decreased revenues, which is pondered within the allocation of constant charges, mainly including depreciation, to the fee of sales, and growth in exertions and raw fabric costs.
Operating costs improved with the aid of 135.Zero% to $28.4 million, as compared to $12.1 million in 2017. In general, the boom was due to better professional prices within the form of stock-based total repayment associated with enforcing a brand new business plan to improve long-term boom, an increase in salaries to guide new business opportunities, temporary hire cost, and a boom inside the allowance for dubious bills. The Company also recorded impairment losses of about $1.9 million associated with the write-off of its patent of use rights in September 2018 and about $6.Three million associated with the disposition of the manufacturing device in December 2018.
Another expense was $9.3 million, as compared to a different rate of $188,000 in 2017. The boom changed into, in most cases due to an $eight—nine million loss in equity investment in Shengxin, a developer and dressmaker of solar farms in China. In April 2018, Shengxin secured and invested in a big solar PV assignment in Guizhou province, paid RMB40.0 million for the task rights, and engaged a neighborhood contractor to construct the venture. However, on June 1, 2018, the Chinese authorities halted installing new solar farms for the rest of the 12 months and reduced subsidies for projects already underneath creation. Due to significant doubt approximately the popularity of this mission and the recoverability of the Company’s funding, the Company fully impaired the price of its investment during the 1/3 area of 2018.
Loss from continuing operations turned into $42.1 million, or $(7.15) in line with basic and diluted proportion, compared to a loss from persevering with operations of $12.8 million, or $(6.99) per primary and diluted proportion in 2017.
Gain from discontinued operations (Refer to “Discontinued Operations” dialogue below) become $sixteen,000, or $0.00 according to simple and diluted percentage. This compares to loss from discontinued operations of $ninety eight,000, or $(0.05) in 2017.
Net loss for 2018 becomes $ forty-one. 1 million, or $(7.15) in step with simple and diluted proportion, compared to internet lack of $12.9 million, or $(7.04) in step with basic and diluted proportion, in 2017.
Basic and diluted profits in step with proportion were based on 5,753,698 and 1,832,900 weighted average shares fantastic, respectively, for the years ended December 31, 2018, and 2017. All proportion and per proportion information has been adjusted to reflect a 1-for-4 opposite inventory break up effective March 20, 2017.
Financial Condition
As of December 31, 2018, SEII held cash and coins equivalents of $zero.Nine million in comparison to $1.Zero million on December 31, 2017. Accounts receivable were $four.Three million compared to $nine.1 million on December 31, 2017. Inventories were $6—four million compared to $four.6 million on December 31, 2017. The Company had $2.Three million in brief-time period bank loans payable at December 31, 2018, down barely from $2.Five million on December 31, 2017. Working capital becomes $10.6 million on December 31, 2018, as compared to $thirteen.Five million on December 31, 2017. Stockholders’ fairness turned into $35—four million on December 31, 2017.
In 2018, the Company used $2.Five million in cash drift from operations. The Company used $ seventy-two 000 in cash flow from investing activities and generated $2.Zero million in coins drift from financing activities, usually due to proceeds $zero.Nine million in from the sale of a convertible note proceeds from the sale of common inventory of $0.3 million and advances from an associated party of $1.Four million.
Discontinued Operations
On December 30, 2016, the Company sold and transferred 100% of the stock of Wuxi Full and Wind Energy Equipment Co., Ltd. (“Full and Wind”) to an unrelated birthday celebration and discontinued the Company’s solid rolled rings and associated additives business. Additionally, the Company’s control was determined to discontinue its petroleum and chemical gadget phase due to great declines in sales and the lack of its most important patron. As such, these segments’ belongings and liabilities were categorized at the consolidated balance sheet as belongings and liabilities of discontinued operations as of December 31, 2018, and 2017. The working outcomes have been categorized as discontinued operations in the consolidated operations statements for all years presented.
About Sharing Economy International Inc.
Sharing Economy International Inc., through its affiliated groups, designs, manufactures, and distributes a line of proprietary excessive and low-temperature dyeing and finishing machinery to the textile industry. The Company’s modern-day commercial enterprise initiatives are targeted at concentrating on the era and international sharing economy markets by developing online systems and condominium enterprise partnerships to force the worldwide development of sharing thru in your price range condominium business models. Moreover, the Company will actively pursue blockchain technology in its current and to-be-received commercial enterprise, allowing the majority to comprehend the beauty of useful resource sharing. For more records, go to www.Seii.Com.
Safe Harbor Statement
This release incorporates sure “forward-looking statements” regarding the business of the Company and its subsidiary and affiliated agencies and certain capability transactions that they will input into. These forward-looking statements are frequently identified by using ahead-looking terminology such as “believes,” “expects,” or comparable expressions. Such ahead-looking statements involve recognized and unknown risks and uncertainties, which can motive actual consequences to be materially extraordinary from those defined herein as anticipated, believed, envisioned, or predicted. The Company’s actual outcomes may want to differ materially from those anticipated in these ahead-looking statements as a result of a diffusion of factors, which includes those mentioned within the Company’s periodic reviews which can be filed with the Securities and Exchange Commission and to be had on its website, including factors defined in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Form 10-K for the year ended December 31, 2018. All ahead-searching statements resulting from the Company or to persons performing on its behalf are expressly certified of their entirety by using those elements other than as required underneath the securities legal guidelines. The Company does now not assume a responsibility to replace those forward-searching statements.
