UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
____________
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant
to Rule 13a-16 or 15d-16 under
the
Securities Exchange Act of 1934
For the month of December, 2015
Commission File Number: 1-35016
SGOCO Group, Ltd.
12/F,
TOWER BLDG #3
CHINA
ACADEMY OF SCIENCE & TECHNOLOGY DEVELOPMENT
GAOXIN
SOUTH AVE.1
NANSHAN
DISTRICT
SHENZHEN,
CHINA
(Address of principal
executive office)
Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F: Form 20-F x
Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
This report is hereby incorporated by reference to the Registration
Statement on Form F-3 (File No. 333-176437) of the Company.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
|
SGOCO Group, Ltd. |
|
|
Date: December 24, 2015 |
By: /s/ Shi-bin Xie |
|
Shi-bin Xie |
|
President and Chief Executive Officer |
Exhibit Index
Exhibit Number |
Description |
99.1 |
Press Release regarding SGOCO Group’s 2015
Unaudited Interim Financial Results |
Exhibit 99.1
SGOCO Group, Ltd. Announces 2015 Unaudited
Interim Financial Results
SHENZHEN, China,
December 24, 2015 /PRNewswire/ -- SGOCO Group, Ltd. (Nasdaq: SGOC) ("SGOCO" or the "Company"), a company
focused on product design, distribution and brand development in the Chinese display and computer product market, today
announced its unaudited operating results for the six months ended June 30, 2015.
2015 Interim
Results Overview
The interim results
of SGOCO were continually impacted by significant increases in competition and the overall weak industrial growth in the Chinese
display industry.
Interim revenues decreased
98.5% to $0.5 million for the first six months of this year (“1H”), as compared to $34.1 million for the first six
months of 2014.
Gross profit dropped 98.6% to $0.02 million
in the 1H 2015, from $1.7 million for the same period in 2014.
Net loss for the 1H
2015 was $0.9 million, compared to net loss of $1.6 million during the same period in 2014.
Basic and diluted loss
per share was $0.05 for the 1H 2015, as compared to $0.09 loss per share in the 1H 2014.
Revenue
Due to the increasing popularity of mobile
devices, the contraction of the personal computer market demand continued and it adversely impacted the market demand of our major
product, flat panel LCD and LED monitors. The drop in market demand also led to intense competition with our peers which has further
affected our revenue and gross margins. Our total revenues decreased by 98.5% to $0.5 million, as compared with
$34.1 million for the first six months of 2014.
Gross margin
In 1H 2015, the gross
profit of the Company decreased 98.6% to $0.02 million from $1.7 million for the same period in 2014. The overall gross margin
for the 1H 2015 was 4.8%, as compared with 5.1% during the same period of 2014.
Operating loss and expenses
The Company recorded a $0.8 million operating
loss in the 1H 2015, as compared to an operating loss of $1.9 million in the 1H 2014. Operating expenses in 1H 2015 decreased by
77.2% to $0.8 million, compared to operating expenses of $3.7 million in the first six months of 2014. The decrease of G&A
expenses was mainly due to tightened controls over expenses and decreased staff costs due to the number of employees reduced in
our Hong Kong, Shenzhen and Beijing offices.
Net loss and
loss per share
Net loss for the 1H
2015 was $0.9 million, compared to a net loss of $1.6 million for the same period in 2014. The net margin experienced a loss of
169.4% in the 1H of 2015, as compared to 4.8% during the same period of 2014. Basic and diluted loss per share was $0.05 in the
1H of 2015 based on 17,531,861 weighted average number of common shares, as compared to basic and diluted loss per share of $0.09
based on 17,397,082 weighted average number of common shares for the 1H 2014.
Cash and working
capital
SGOCO held $91.6 million
cash and cash equivalents at the end of June 30, 2015, compared to $0.1 million as of December 31, 2014. Working capital decreased
to $84.5 million from $85.2 million at the end of December 31, 2014. The receipt of Sales Price and Receivables from disposal of
our subsidiary, SGOCO (Fujian), were the major causes for the increase of cash flow.
About SGOCO Group, Ltd.
SGOCO Group, Ltd. is
focused on product design, brand development and distribution in the Chinese display market, including computer monitors, All-In-One
("AIO") and Parts-In-One ("PIO") computers and application specific products. SGOCO sells its products and
services in the China market and abroad. For more information about SGOCO, please visit our investor relations website:
http://www.sgocogroup.com
For investor and
media inquiries, please contact:
SGOCO Group, Ltd.
Tony Zhong
Vice President of Finance
Tel: (+86) 0755-26978199
ext: 7500
Email:ir@sgoco.com
Safe Harbor and
Informational Statement
This announcement contains
"forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation
Reform Act of 1995. All statements, other than statements of historical fact, including, without limitation, those with respect
to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe,"
"expect," "anticipate," "future," "will," "intend," "plan," "estimate"
or similar expressions, are "forward-looking statements". Forward-looking statements in this release include, without
limitation, the effectiveness of the Company's multiple-brand, multiple channel strategy and the transitioning of its product development
and sales focus and to a "light-asset" model, Although the Company's management believes that such forward-looking statements
are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward-looking statements involve a
number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated.
These forward-looking statements can change as a result of many possible events or factors not all of which are known to the Company,
which may include, without limitation, requirements or changes adversely affecting the LCD and LED market in China; fluctuations
in customer demand for LCD and LED products generally; our success in promoting our brand of LCD and LED products in China and
elsewhere; our ability to have effective internal control over financial reporting; our success in designing and distributing products
under brands licensed from others; management of sales trend and client mix; possibility of securing loans and other financing
without efficient fixed assets as collaterals; changes in government policy in China; the fluctuations and competition in sales
and sale prices of LCD and LED products in China; China's overall economic conditions and local market economic conditions; our
ability to expand through strategic acquisitions and establishment of new locations; compliance with government regulations; legislation
or regulatory environments; geopolitical events, and other events and/or risks outlined in SGOCO's filings with the U.S. Securities
and Exchange Commission, including its annual report on Form 20-F and other filings. All information provided in this press release
and in the attachments is as of the date of the issuance, and SGOCO does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
SGOCO
GROUP, LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR
THE SIX MONTHS ENDED JUNE 30, 2015 AND 2014
(Unaudited)
(In
thousands of U.S. dollars except share and per share data)
| |
2015 | | |
2014 | |
REVENUES: | |
| | | |
| | |
Revenues | |
| 504 | | |
| 34,141 | |
| |
| | | |
| | |
COST OF GOODS SOLD: | |
| | | |
| | |
Cost of goods sold | |
| 480 | | |
| 32,396 | |
| |
| | | |
| | |
GROSS PROFIT | |
| 24 | | |
| 1,745 | |
| |
| | | |
| | |
OPERATING EXPENSES: | |
| | | |
| | |
Selling expenses | |
| 42 | | |
| 240 | |
General and administrative expenses | |
| 798 | | |
| 3,441 | |
Total operating expenses | |
| 840 | | |
| 3,681 | |
| |
| | | |
| | |
LOSS FROM OPERATIONS | |
| (816 | ) | |
| (1,936 | ) |
| |
| | | |
| | |
OTHER INCOME (EXPENSES): | |
| | | |
| | |
Interest income | |
| 46 | | |
| 338 | |
Interest expense | |
| - | | |
| (171 | ) |
Other expense, net | |
| (86 | ) | |
| (8 | ) |
Change in fair value of warrant derivative liability | |
| 2 | | |
| 15 | |
Total other income (expenses), net | |
| (38 | ) | |
| 174 | |
| |
| | | |
| | |
LOSS BEFORE PROVISION FOR INCOME TAXES | |
| (854 | ) | |
| (1,762 | ) |
| |
| | | |
| | |
PROVISION FOR INCOME TAXES | |
| - | | |
| (113 | ) |
| |
| | | |
| | |
NET LOSS | |
| (854 | ) | |
| (1,649 | ) |
| |
| | | |
| | |
OTHER COMPREHENSIVE LOSS: | |
| | | |
| | |
Foreign currency translation adjustment | |
| (1 | ) | |
| (592 | ) |
| |
| | | |
| | |
COMPREHENSIVE LOSS | |
| (855 | ) | |
| (2,241 | ) |
| |
| | | |
| | |
LOSS PER SHARE: | |
| | | |
| | |
Basic | |
| (0.05 | ) | |
| (0.09 | ) |
Diluted | |
| (0.05 | ) | |
| (0.09 | ) |
| |
| | | |
| | |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | |
| | | |
| | |
Basic | |
| 17,531,861 | | |
| 17,397,082 | |
Diluted | |
| 17,531,861 | | |
| 17,397,082 | |
SGOCO
GROUP, LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
AS
OF JUNE 30, 2015 AND DECEMBER 31, 2014
(Unaudited)
(In
thousands of U.S. dollars except share and per share data)
| |
June 30, | | |
December 31, | |
| |
2015 | | |
2014 | |
| |
| | |
| |
ASSETS | |
| | | |
| | |
| |
| | | |
| | |
CURRENT ASSETS | |
| | | |
| | |
Cash | |
| 91,642 | | |
| 92 | |
Accounts receivable, trade | |
| 134 | | |
| 910 | |
Other receivables | |
| 34 | | |
| 51 | |
Other Receivable-shareholder | |
| 135 | | |
| - | |
Receivable from sale of a subsidiary | |
| - | | |
| 91,379 | |
Inventories | |
| 174 | | |
| 1 | |
Advances to suppliers | |
| - | | |
| 33 | |
Prepaid income tax | |
| 17 | | |
| 17 | |
Other current assets | |
| 55 | | |
| 56 | |
Total current assets | |
| 92,191 | | |
| 92,539 | |
| |
| | | |
| | |
PLANT AND EQUIPMENT, NET | |
| 13 | | |
| 14 | |
| |
| | | |
| | |
Total assets | |
| 92,204 | | |
| 92,553 | |
| |
| | | |
| | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |
| | | |
| | |
| |
| | | |
| | |
CURRENT LIABILITIES | |
| | | |
| | |
Accounts payable, trade | |
| 851 | | |
| 606 | |
Short-term loan - shareholder | |
| - | | |
| 100 | |
Other payables and Accrued liabilities | |
| 355 | | |
| 209 | |
Customer deposits | |
| 85 | | |
| 198 | |
Taxes payable | |
| 6,241 | | |
| 6,241 | |
Convertible debt | |
| 204 | | |
| - | |
Warrant derivative liability | |
| - | | |
| 2 | |
Total liabilities | |
| 7,736 | | |
| 7,356 | |
| |
| | | |
| | |
COMMITMENT AND CONTINGENCIES | |
| | | |
| | |
| |
| | | |
| | |
SHAREHOLDERS' EQUITY | |
| | | |
| | |
Preferred stock, $0.001 par value, 1,000,000 shares authorized, | |
| | | |
| | |
nil issued and outstanding as of June 30, 2015 and December 31, 2014 | |
| | | |
| | |
| |
| - | | |
| - | |
Common stock, $0.001 par value, 50,000,000 shares authorized, | |
| | | |
| | |
17,594,861 and 17,414,861 issued and outstanding as of | |
| | | |
| | |
June 30, 2015 and December 31, 2014, respectively | |
| 18 | | |
| 18 | |
Additonal paid-in-capital | |
| 25,715 | | |
| 25,589 | |
Statutory reserves | |
| - | | |
| - | |
Retained earnings | |
| 58,747 | | |
| 59,601 | |
Accumulated other comprehensive income | |
| (12 | ) | |
| (11 | ) |
Total shareholders' equity | |
| 84,468 | | |
| 85,197 | |
| |
| | | |
| | |
Total liabilities and shareholders' equity | |
| 92,204 | | |
| 92,553 | |
SGOCO GROUP, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2015
AND 2014
(Unaudited)
(In thousands of U.S. dollars)
| |
June 30 | |
| |
2015 | | |
2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |
| | | |
| | |
Net (loss) income | |
| (855 | ) | |
| (1,649 | ) |
Adjustments to reconcile net (loss) income to cash provided by (used in) operating activities: | |
| | | |
| | |
Depreciation and amortization | |
| - | | |
| 41 | |
Bad debt provision | |
| - | | |
| 1,339 | |
Change in fair value of warrant derivative liability | |
| (2 | ) | |
| (15 | ) |
Share-based compensation expenses | |
| 126 | | |
| 538 | |
Change in operating assets – (increase) decrease | |
| | | |
| | |
Accounts receivable, trade | |
| 775 | | |
| (3,969 | ) |
Deferred tax assets | |
| - | | |
| (353 | ) |
Other receivables and prepayments | |
| 17 | | |
| 385 | |
Notes Receivable | |
| - | | |
| 1,316 | |
Inventories | |
| (173 | ) | |
| 928 | |
Advances to suppliers | |
| 32 | | |
| (12,782 | ) |
Prepaid income tax | |
| - | | |
| - | |
Other current assets | |
| (9 | ) | |
| (53 | ) |
Change in operating liabilities – increase (decrease) | |
| | | |
| | |
Accounts payables, trade | |
| 244 | | |
| 4,457 | |
Other payables and accrued liabilities | |
| 149 | | |
| 138 | |
Customer deposits | |
| (113 | ) | |
| (354 | ) |
Taxes payable | |
| (1 | ) | |
| 247 | |
Net cash provided by (used in) operating activities | |
| 190 | | |
| (9,785 | ) |
| |
| | | |
| | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |
| | | |
| | |
Proceeds from disposal of subsidiaries, net of cash disposed of $25 | |
| 91,241 | | |
| - | |
Net cash provided by investing activities | |
| 91,241 | | |
| - | |
| |
| | | |
| | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |
| | | |
| | |
Payments on short-term loan | |
| - | | |
| (2,617 | ) |
Proceeds from shareholder loan | |
| 270 | | |
| 100 | |
Payments on shareholder loan | |
| (505 | ) | |
| - | |
Proceeds from convertible debt | |
| 204 | | |
| - | |
Net cash used in financing activities | |
| (31 | ) | |
| (2,517 | ) |
| |
| | | |
| | |
EFFECT OF EXCHANGE RATE ON CASH | |
| 150 | | |
| (87 | ) |
| |
| | | |
| | |
(DECREASE) INCREASE IN CASH | |
| 91,550 | | |
| (12,389 | ) |
| |
| | | |
| | |
CASH, beginning of year | |
| 92 | | |
| 13,497 | |
| |
| | | |
| | |
CASH, end of year | |
| 91,642 | | |
| 1,108 | |
| |
| | | |
| | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |
| | | |
| | |
Cash paid for interest | |
| - | | |
| 171 | |
Cash paid for income taxes | |
| - | | |
| 43 | |
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