SHISHI, China, July 26, 2018 /PRNewswire/ -- KBS Fashion Group
Limited ("KBS" or the "Company") (NASDAQ: KBSF), a leading
fully-integrated casual menswear company in China, today announced its unaudited financial
results for the second quarter and the first half of 2018.
|
For the Three
Months Ended June 30,
|
($ millions,
except per share data)
|
2018
|
|
2017
|
|
%
Change
|
Revenues
|
3.89
|
|
4.07
|
|
-4.3%
|
Distribution network
|
3.06
|
|
3.47
|
|
-11.8%
|
Corporate stores
|
0.13
|
|
0.13
|
|
0.1%
|
OEM
|
0.70
|
|
0.47
|
|
49.9%
|
Gross
profit
|
1.03
|
|
0.86
|
|
19.2%
|
Gross
margin
|
26.4%
|
|
21.2%
|
|
5.2 pp
|
Operating income
(loss)
|
-0.56
|
|
-2.93
|
|
-80.9%
|
Operating (loss)
margin
|
-14.4%
|
|
-72.1%
|
|
57.7 pp
|
GAAP net income
(loss)
|
-0.47
|
|
-2.24
|
|
-79.1%
|
GAAP Earnings (loss)
per share
|
-0.21
|
|
-1.26
|
|
-83.3%
|
Second Quarter of 2018 Financial Highlights
- Net revenues decreased by 4.3% to $3.89
million for the second quarter of 2018 from $4.07 million for the same period of last year.
The decrease was primarily due to the termination of bad contracts
with customers. In addition, we continuously liquidated our
previous excess inventory.
- Gross profit increased by 19.2% to $1.03
million for the second quarter of 2018 from $0.86 million for the same period of last year.
Gross margin was 26.4% for the second quarter of 2018, compared to
21.2% for the same period of last year.
- GAAP net loss was $0.47 million,
or $0.21 loss per basic and diluted
share, for the second quarter of 2018, compared to net loss of
$2.24 million, or $1.26 loss per basic and diluted share, for the
same period of last year.
- Non-GAAP net loss, which excludes the provision of the change
in fair value of warrants, was $0.47
million, or $0.21 loss per
basic and diluted share, for the second quarter of 2018, compared
to non-GAAP net loss of $2.24
million, or $1.26 loss per
basic and diluted share, for the same period of last year.
Mr. Keyan Yan, Chief Executive
Officer of the Company commented, "we continue our efforts to focus
on appropriate cost controls in order to improve operational
results while coping with the sluggish garment market. Although the
revenue for the second quarter declined slightly, the gross profits
increased 19%.We are pleased with our overall financial performance
in the second quarter, and the first half year of 2018 given the
industry challenges we are facing. The management team is working
towards the acceleration of our sales through leveraging our
network, and potential partnerships to generate additional sources
of revenue. We remain optimistic about our business."
Second Quarter of 2018 Financial Results
Revenues
Total revenues decreased by $0.18
million, or 4.3%, to $3.89
million for the second quarter of 2018 from $4.07 million for the same period of last year.
The decrease was related to the termination of bad contracts with
select customers as well as the closure of 10 distributors.
|
|
For the Three
Months Ended June 30,
|
|
|
2018
|
|
2017
|
($
millions)
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Margin
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Margin
|
Distribution
network
|
|
3.06
|
|
0.73
|
|
23.7%
|
|
3.47
|
|
0.66
|
|
19.1%
|
Corporate
stores
|
|
0.13
|
|
0.06
|
|
46.6%
|
|
0.13
|
|
0.06
|
|
47.7%
|
OEM
|
|
0.70
|
|
0.24
|
|
34.7%
|
|
0.47
|
|
0.14
|
|
29.5%
|
Total
|
|
3.89
|
|
1.03
|
|
26.5%
|
|
4.07
|
|
0.86
|
|
21.2%
|
Revenues from the Company's distribution network decreased
by $0.41 million, or 11.8%, to
$3.06million for the second quarter
of 2017 from $3.47.million for the
same period of last year. Distribution network contributed 78.7% of
total revenues for the second quarter of 2018, compared to 85.3%
for the same period of last year. The Company's distributor network
consisted of 19 distributors in 12 provinces during the second
quarter of 2018, compared to 24 distributors in 12 provinces during
the same period of last year. Most of these distributors, either
directly or through their sub-distributors, operate KBS-branded
stores. Some wholesale distributors sold the products to
multi-branded stores and online stores. As of June 30, 2018, the Company operated 38 branded
franchise stores, primarily in second and third tier cities. KBS
products distributed to the fourth and fifth tier cities are
primarily sold in multi-branded department stores and online shops.
As a comparison, the Company operated 49 branded franchise stores
as of June 30, 2017.
The following table lists by region the number of retail stores
operated by distributors and sub-distributors as of June 30, 2018:
Location
|
|
As of June 30,
2017
|
Fujian
|
|
7
|
Guangdong
|
|
2
|
Guangxi
|
|
3
|
Jiangsu
|
|
4
|
Anhui
|
|
1
|
Zhejiang
|
|
2
|
Chongqing
|
|
4
|
Inner
Mongolia
|
|
1
|
Tianjin
|
|
3
|
Hebei
|
|
4
|
Heilongjiang
|
|
3
|
Sichuan
|
|
4
|
Total
|
|
38
|
Revenues from corporate stores sales was $0.13 million for the second quarter of 2018
which is the same compared to the same period of last year.
Corporate stores accounted for 3.4% of total revenues for the
second quarter of 2018, compared to 3.3% for the same period of
last year. As of June 30, 2018, the
Company operated 1 corporate store, compared to 1 corporate store
as of June 30, 2017.
Revenues from OEM sales increased by $0.22 million, or 47.8%, to $0.70 million for the second quarter of 2018 from
$0.47 million for the same period of
last year. OEM accounted for 17.7% of total revenues for the second
quarter of 2018, compared to 11.5% for the same period of last
year. The OEM segment is comprised of products that are designed by
the customers and manufactured by the Company. The increase in
revenues from OEM sales was primarily due to the launch of newly
developed products and price advantages of our new products.
Cost of Sales and Gross Profit
Total cost of sales decreased by $0.34
million, 10.7%, to $2.86
million for the second quarter of 2018 from $3.21 million for the same period of last
year.
Total gross profit increased by $0.17
million, or 19.2%, to $1.03
million for the second quarter of 2018 from $0.86 million for the same period of last year.
Gross profits for distribution network, corporate stores and OEM
were $0.73 million, $0.06 million, and $0.24
million, respectively, for the second quarter of 2018,
compared to $0.66 million,
$0.06 million, and $0.14 million, respectively, for the same period
of last year.
Overall gross margin was 26.5% for the second quarter of 2018,
compared to 21.2% for the same period of last year. On a segment
basis, gross margins for distribution network, corporate stores and
OEM were 23.7%, 46.6%, and 34.7%, respectively, for the second
quarter of 2018, compared to 19.1%, 47.7%, and 29.5%, respectively,
for the same period of last year. The increase in gross margin was
due to the launch of newly developed products and price advantages
of new products. Additionally, we reduced product variety in styles
and increased order volume resulting in lower cost and improved
gross margin.
Operating Expenses and Operating Income (Loss)
Distribution and selling expenses decreased by $0.09 million, or 11.2%, to $0.68 million for the second quarter of 2018 from
$0.76 million for the same period of
last year. The decrease in distribution and selling expenses was
mainly due to the decrease in unnecessary expenses to increase the
company's profit target throughout the year. The sales team
improved the expense control in comparison to the previous
year.
Administrative expenses decreased by $0.046 million, or 4.6%, to $0.96 million for the second quarter of 2018 from
$1.01 million for same period of last
year The slight decrease in administrative expenses was mainly due
to our efforts in the expense control.
Other operating expenses, including other income and other gains
and loss, totaled $0.05 million for
the second quarter of 2018, compared to $2.02 million for the same period of last year.
Total operating expense decreased by $2.21
million, or 58.2%, to $1.59
million for the second quarter of 2018 from $3.80 million for the same period of last year.
The decrease was mainly due to the implementation of new accounting
policy on account receivable this year; we made a certain
percentage of bad debt provision on older account receivables as of
June 30, 2017.
Total loss from operations was $0.56
million for the second quarter of 2018, compared to
operating income of $2.93 million for
the same period of last year. Operating loss margin was 14.4% for
the second quarter of 2018, compared to 72.1% for the same period
of last year.
Income (Loss) before Income Taxes
Loss before income taxes was $0.59
million for the second quarter of 2018, compared to
$2.96 million for the same period of
last year.
Income tax benefit was $0.12
million for the second quarter of 2018, compared to
$0.72 million for the same period of
last year.
Net Income (Loss) and Earnings (Loss) per Share
GAAP net loss was $0.47 million,
or $0.211 loss per basic and diluted
share, for the second quarter of 2018, compared to GAAP net loss of
$2.24 million, or $1.262 loss per basic and diluted share, for the
same period of last year.
Non-GAAP net loss, which excluded the provision of the change in
fair value of warrants, was $0.47
million, or $0.211 loss per
basic and diluted share, for the second quarter of 2018, compared
to Non-GAAP net loss of $2.24
million, or $1.262 loss per
basic and diluted share, for the same period of last year.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures.
A reconciliation of these non-GAAP measures to their nearest
comparable GAAP measures is included below. Management
believes the use of non-GAAP measures is an additional useful
method of evaluating our financial condition and results of
operations. The non-GAAP financial measures disclosed should
not be considered a substitute for, or superior to, financial
measures calculated in accordance with GAAP, and the expected
results calculated in accordance with GAAP and reconciliations to
those expected results should be carefully evaluated. The non-GAAP
financial measures we use may be calculated differently from, and
therefore may not be comparable to similarly titled measures used
by other companies.
Management uses this information to measure performance over
time on a consistent basis and to identify trends related to the
Company's financial condition and results of operations. Management
believes that these non-GAAP measures provide investors with
information regarding the underlying performance of the company's
core business operating results.
|
|
For the Three
Months Ended June 30,
|
|
|
2018
|
|
2017
|
|
|
USD
|
|
EPS
|
|
USD
|
|
EPS
|
GAAP net
income
|
|
$
(466,516)
|
|
$
(0.211)
|
|
$
(2,235,493)
|
|
$
(1.262)
|
Change in fair value of
warrants
|
|
-
|
|
$
-
|
|
$
-
|
|
$
-
|
Non-GAAP net
income
|
|
$
(466,516)
|
|
$
(0.211)
|
|
$
(2,235,493)
|
|
$
(1.262)
|
First Half of 2018 Financial Results
|
For the Six Months
Ended June 30,
|
($ millions,
except per share data)
|
2018
|
|
2017
|
|
%
Change
|
Revenues
|
8.35
|
|
9.58
|
|
-12.8%
|
Distribution network
|
6.96
|
|
8.33
|
|
-16.5%
|
Corporate stores
|
0.28
|
|
0.35
|
|
-18.1%
|
OEM
|
1.11
|
|
0.90
|
|
23.5%
|
Gross
profit
|
2.12
|
|
2.08
|
|
2.1%
|
Gross
margin
|
25.4%
|
|
21.7%
|
|
-3.7 pp
|
Operating income
(loss)
|
-2.56
|
|
-5.17
|
|
-50.4%
|
Operating (loss)
margin
|
-30.7%
|
|
-53.9%
|
|
-23.3 pp
|
GAAP net income
(loss)
|
-2.36
|
|
-3.97
|
|
-40.6%
|
GAAP Earnings (loss)
per share
|
-1.07
|
|
-2.24
|
|
-52.4%
|
Revenues
Total revenues decreased by $1.23
million, or 12.8%, to $8.35
million for the first half of 2018 from $9.58 million for the same period of last year.
The decrease was related to the liquidation of our previous excess
inventory, resulting in lower sales price and lower gross
margin.
|
|
For the Six Months
Ended June 30,
|
|
|
2018
|
|
2017
|
($
millions)
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Margin
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Margin
|
Distribution
network
|
|
6.96
|
|
1.62
|
|
23.3%
|
|
8.33
|
|
1.63
|
|
19.5%
|
Corporate
stores
|
|
0.28
|
|
0.12
|
|
42.6%
|
|
0.35
|
|
0.18
|
|
52.4%
|
OEM
|
|
1.11
|
|
0.38
|
|
34.2%
|
|
0.90
|
|
0.27
|
|
29.5%
|
Total
|
|
8.35
|
|
2.12
|
|
25.4%
|
|
9.58
|
|
2.08
|
|
21.7%
|
Revenues from the Company's distribution network decreased by
$1.37 million, or 16.5%, to
$6.96 million for the first half of
2018 from $8.33 million for the same
period of last year. Distribution network contributed 83.4% of
total revenues for the first half of 2018, compared to 87.0% for
the same period of last year. The decrease in revenues from the
distribution network was due to the discontinuation of select
branded franchise stores operated by our distributors this
year.
Revenues from corporate stores sales decreased by $0.07 million, or 19.1%, to $0.28 million for the first half of 2018 from
$0.35 million for the same period of
last year. Corporate stores accounted for 3.4% of total revenues
for the first half of 2018, compared to 3.6% for the same period of
last year. The decrease in corporate stores sales were due to
reduced product orders in order to avoid the heavy backlog caused
by the weak market demand.
Revenues from OEM sales increased by $0.21 million, or 23.4%, to $1.11 million for the first half of 2018 from
$0.90 million for the same period of
last year. OEM accounted for 13.3% of total revenues for the first
half of 2018, compared to 9.4% for the same period of last year.
The OEM segment is comprised of products that are designed by the
customers and manufactured by the Company. The increase in revenues
from OEM sales was primarily due to the launch of newly developed
products and price advantage of the new products.
Cost of Sales and Gross Profit
As a result of the reduction of our sales, total cost of sales
decreased by $1.27 million, 16.9%, to
$6.23 million for the first half of
2018 from $7.50 million for the same
period of last year.
Total gross profit increased by $0.04
million, or 2.1%, to $2.12
million for the first half of 2018 from $2.08 million for the same period of last year.
Gross profits for distribution network, corporate stores and OEM
were $1.62 million, $0.12 million, and $0.38
million, respectively, for the first half of 2018, compared
to $1.63 million, $0.18 million, and $0.27
million, respectively, for the same period of last year.
Overall gross margin was 25.4% for the first half of 2018,
compared to 21.7% for the same period of last year. On a segment
basis, gross margins for distribution network, corporate stores and
OEM were 23.3%, 42.6%, and 34.2%, respectively, for the first half
of 2018, compared to 19.5%, 52.4%, and 29.5%, respectively, for the
same period of last year. The increase in gross margin for
distribution network was due to the launch of newly developed
products and price advantage of the new products. Additionally, we
reduced product variety styles and increased order volume,
resulting in lower cost and improved gross margin.
Operating Expenses and Operating Income (Loss)
Distribution and selling expenses decreased by $0.22 million, or 13.7%, to $1.41 million for the first half of 2018 from
$1.63 million for the same period of
last year. The decrease in distribution and selling expenses was
mainly due to i) the reduction in the expenses attributable to
corporate stores, including staff salary, rental expense, and other
corporate store expenses; ii) the decrease in subsidy to our
distributors.
Administrative expenses increased by $1.19 million, or 54.6%, to $3.35 million for the first half of 2018 from
$2.17 million for same period of last
year. The increase was due to the related expenses for board
members and executives' stock options.
Other operating expenses, including other income and other gains
and loss, totaled negative $0.81
million for the first half of 2018, compared to $3.44 million for the same period of last year.
Total operating expense decreased by $2.56
million, or 35.4%, to $4.68
million for the first half of 2018 from $7.24 million for the same period of last year.
The decrease was mainly due to the implementation of new accounting
policies on account receivable this year, as we made certain
percentage of bad debt provision on older account receivables.
Total loss from operations was $2.56
million for the first half of 2018, compared to operating
loss of $5.17 million for the same
period of last year. Operating loss margin was 30.7% for the first
half of 2018, compared to operating loss margin of 53.9% for the
same period of last year.
Income (Loss) before Income Taxes
Loss before income taxes was $2.61
million for the first half of 2018, compared to loss before
income taxes of $5.21 million for the
same period of last year.
Income tax benefit was $0.26
million for the first half of 2018, compared to income tax
benefit of $1.24 million for the same
period of last year.
Net Income (Loss) and Earnings (Loss) per Share
GAAP net loss was $2.36 million,
or $1.068 per basic and diluted
share, for the first half of 2018, compared to GAAP net loss of
$3.97 million, or $2.241 loss per basic and diluted share, for the
same period of last year.
Non-GAAP net loss, which excluded the provision of the change in
fair value of warrants, was $2.36
million, or $1.068 per basic
and diluted share, for the first half of 2018, compared to Non-GAAP
net loss of $3.97 million, or
$2.241 loss per basic and diluted
share, for the same period of last year.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures.
A reconciliation of these non-GAAP measures to their nearest
comparable GAAP measures is included below. Management
believes the use of non-GAAP measures is an additional useful
method of evaluating our financial condition and results of
operations. The non-GAAP financial measures disclosed should
not be considered a substitute for, or superior to, financial
measures calculated in accordance with GAAP, and the expected
results calculated in accordance with GAAP and reconciliations to
those expected results should be carefully evaluated. The non-GAAP
financial measures we use may be calculated differently from, and
therefore may not be comparable to similarly titled measures used
by other companies.
Management uses this information to measure performance over
time on a consistent basis and to identify trends related to the
Company's financial condition and results of operations. Management
believes that these non-GAAP measures provide investors with
information regarding the underlying performance of the company's
core business operating results.
|
|
For the Six Months
Ended June 30,
|
|
|
2018
|
|
2017
|
|
|
USD
|
|
EPS
|
|
USD
|
|
EPS
|
GAAP net
income
|
|
$
(2,355,794)
|
|
$
(1.068)
|
|
$
(3,969,079)
|
|
$
(2.241)
|
Change in fair value of warrants
|
|
-
|
|
0.00
|
|
-
|
|
$
-
|
Non-GAAP net
income
|
|
$
(2,355,794)
|
|
$
(1.068)
|
|
$
(3,969,079)
|
|
$
(2.241)
|
Financial Conditions
As of June 30, 2018, the Company
had cash and cash equivalents of $24.12
million, working capital of $32.14
million and stockholders' equity of $72.07 million, compared to $25.22 million, $33.06
million, and $74.03 million,
respectively, at December 31,
2017.
Net cash used in operating activities was $4.42 million for the six months ended
June 30, 2018, compared to net cash
used in operating activities of $1.91
million for the same period of last year. Net cash provided
by investing activities was $0.02
million for the six months ended June
30, 2018, compared to net cash provided by investing
activities of $0.04 million for the
same period of last year. Net cash provided by financing activities
was $0.22 million for the six months
ended June 30, 2018, compared to
$0.05 million for the same period of
last year.
About KBS Fashion Group Limited
Headquartered in Shishi, China,
KBS Fashion Group Limited, through its subsidiaries, is engaged in
the business of designing, manufacturing, selling and distributing
its own casual menswear brand, KBS, through a network of 38 KBS
branded stores (as of June 30, 2018)
and over a number of multi-brand stores. To learn more about the
Company, please visit its corporate website
at www.kbsfashion.com.
Safe Harbor Statement
This press release may contain certain "forward-looking
statements" relating to the business of KBS Fashion Group Limited,
and its subsidiary companies. All statements, other than statements
of historical fact included herein, are "forward-looking
statements" in nature within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements,
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 (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.
KBS Fashion
Group Limited
|
UNAUDITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME(LOSS)
|
(Stated in
US dollars)
|
|
|
Three months
ended June 30
|
|
Six months
ended June 30
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
3,893,045
|
|
4,069,815
|
|
8,352,070
|
|
9,579,568
|
Cost of
sales
|
|
(2,864,645)
|
|
(3,206,800)
|
|
(6,232,435)
|
|
(7,503,626)
|
Gross
profit
|
|
1,028,400
|
|
863,016
|
|
2,119,635
|
|
2,075,942
|
GP ratio
|
|
26%
|
|
22%
|
|
26%
|
|
22%
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
40,113
|
|
361,160
|
|
66,877
|
|
403,462
|
Other gains and
losses
|
|
12,797
|
|
(2,384,432)
|
|
13,819
|
|
(3,846,439)
|
Distribution and
selling expenses
|
|
(677,537)
|
|
(763,040)
|
|
(1,406,499)
|
|
(1,629,197)
|
Administrative
expenses
|
|
(963,980)
|
|
(1,010,216)
|
|
(3,354,952)
|
|
(2,169,787)
|
Operating
profit
|
|
(560,208)
|
|
(2,933,512)
|
|
(2,561,121)
|
|
(5,166,018)
|
|
|
|
|
|
|
|
|
|
Finance
costs
|
|
(25,670)
|
|
(23,361)
|
|
(51,185)
|
|
(47,342)
|
Change in fair value
of warrant liabilities
|
|
-
|
|
-
|
|
-
|
|
-
|
Profit before
tax
|
|
(585,878)
|
|
(2,956,872)
|
|
(2,612,306)
|
|
(5,213,360)
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
119,362
|
|
721,379
|
|
256,512
|
|
1,244,281
|
Profit for the
year
|
|
(466,516)
|
|
(2,235,493)
|
|
(2,355,794)
|
|
(3,969,079)
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
-Currency translation
differences
|
|
(14,470,360)
|
|
2,039,888
|
|
(14,058,817)
|
|
1,257,618
|
Total
comprehensive income
|
|
(14,936,876)
|
|
(195,605)
|
|
(16,414,611)
|
|
(2,711,461)
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Owner of the
Company
|
|
(14,936,876)
|
|
(195,605)
|
|
(16,414,611)
|
|
(2,711,461)
|
Minority
interests
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
Outstanding
shares
|
|
2,206,741
|
|
1,771,132
|
|
2,206,741
|
|
1,771,132
|
|
|
|
|
|
|
|
|
|
Profit per share -
basic and diluted
|
|
(0.2114)
|
|
(1.2622)
|
|
(1.07)
|
|
(2.24)
|
|
|
|
|
|
|
|
|
|
NON-GAAP Profit
per share-basic and diluted
|
|
(0.2114)
|
|
(1.2622)
|
|
(1.07)
|
|
(2.24)
|
KBS Fashion Group
Limited
|
Unaudited
Consolidated Statements of Financial Position
|
(Stated in US
dollars)
|
|
|
|
|
|
6/30/2018
|
|
12/31/2017
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
24,123,110
|
|
26,050,456
|
Trade and other
receivables
|
11,794,590
|
|
10,501,543
|
Other receivables and
prepayments
|
452,367
|
|
1,901,268
|
Related parties
receivables
|
-
|
|
-
|
Inventories
|
2,882,333
|
|
1,806,212
|
Subsidies prepaid to
distributors
|
-
|
|
-
|
Prepayments and
premiums under operating leases
|
87,850
|
|
83,907
|
Prepaid lease
payments
|
|
|
|
Total current
assets
|
39,340,251
|
|
40,343,386
|
|
|
|
|
Non-current
assets
|
|
|
|
Prepayments and
premiums under operating leases
|
2,516,645
|
|
2,568,199
|
Prepayment for
construction of new plant
|
-
|
|
-
|
Prepayment for
acquisition of land use right
|
-
|
|
-
|
Construction in
progress
|
-
|
|
-
|
Property, plant and
equipment
|
26,733,098
|
|
27,824,523
|
Prepaid lease
payments
|
633,285
|
|
648,652
|
Deferred tax
asset
|
10,048,882
|
|
9,924,944
|
Total non-current
assets
|
39,931,910
|
|
40,966,319
|
|
|
|
|
Total
assets
|
79,272,161
|
|
81,309,705
|
|
|
|
|
Current
liabilities
|
|
|
|
Short-term
loans
|
1,586,918
|
|
1,606,930
|
Trade and other
payables
|
5,187,624
|
|
5,521,442
|
Related parties
payables
|
425,638
|
|
154,137
|
Income tax
payable
|
-
|
|
-
|
Total current
liabilities
|
7,200,180
|
|
7,282,509
|
|
|
|
|
Warrant
liabilities
|
-
|
|
-
|
|
|
|
|
Total
liabilities
|
7,200,180
|
|
7,282,509
|
|
|
|
|
Equity
|
|
|
|
Common
stock
|
227
|
|
198
|
Additional paid-in
capital
|
8,000,561
|
|
6,686,170
|
Capital
reserve
|
184,272
|
|
184,272
|
Surplus
reserve
|
6,084,836
|
|
6,084,836
|
Retained
earnings
|
61,795,406
|
|
64,146,811
|
Foreign currency
translation reserve
|
(3,993,319)
|
|
(3,075,090)
|
Total
equity
|
72,071,982
|
|
74,027,196
|
|
|
|
|
Total liabilities
and equity
|
79,272,161
|
|
81,309,705
|
KBS Fashion Group
Limited
|
Unaudited
Consolidated Statements of Cash Flow
|
For the Six Months
ended June 30, 2018 and 2017
|
USD
|
|
2018
|
|
2017
|
Operating
activities
|
USD
|
|
USD
|
Profit before
tax
|
(2,355,794)
|
|
(3,969,079)
|
Adjustments
for:
|
|
|
|
adjust
statutory reserve for year 2013
|
51,185
|
|
-
|
Finance
costs
|
-
|
|
(47,342)
|
change in fair value
of warrant liabilities
|
(39,111)
|
|
-
|
Interest
income
|
-
|
|
(42,538)
|
Bad debt
allowance
|
1,314,420
|
|
(3,831,436)
|
Depreciation of
property, plant and equipment
|
792,939
|
|
740,257
|
Amortisation of
prepaid lease payments
|
7,554
|
|
7,030
|
Amortisation of
subsidies prepaid to distributors
|
-
|
|
432,787
|
Amortisation of
prepayments and premiums under operating leases
|
27,432
|
|
51,761
|
Provision (Reversal)
of inventory obsolescence
|
(28,616)
|
|
(2,045)
|
Loss (gain) on
disposal of property, plant and equipment
|
-
|
|
(2,463)
|
|
|
|
|
Operating cash
flows before movements in working capital
|
(229,992)
|
|
(6,663,068)
|
|
|
|
|
(Increase) / Decrease
in trade and other receivables
|
(1,475,024)
|
|
4,731,162
|
(Increase) / Decrease
in prepayments and deferred expenses
|
1,464,010
|
|
4,102,502
|
Subsidies prepaid to
distributors
|
-
|
|
-
|
(Increase) / Decrease
in related parties receivables
|
(1,109,509)
|
|
-
|
(Increase) / Decrease
in inventories
|
(292,727)
|
|
(958,547)
|
Increase / (Decrease)
in trade and other payables
|
-
|
|
57,122
|
Increase / (Decrease)
in related parties payables
|
108,615
|
|
(1,126,397)
|
Cash generated
from operations
|
(4,163,269)
|
|
142,774
|
Deferred income
tax
|
(256,512)
|
|
(1,244,281)
|
Income taxes
paid
|
-
|
|
(805,076)
|
Net cash from
operating activities
|
(4,419,781)
|
|
(1,906,583)
|
|
|
|
|
Investing
activities
|
|
|
|
Interest
received
|
42,538
|
|
42,538
|
Prepayments and
premiums paid under operating leases
|
-
|
|
-
|
withdraw the
prepayments and premiums paid under operating leases
|
-
|
|
-
|
Subsidies prepaid to
distributors
|
-
|
|
-
|
Prepayment for
construction of new plant
|
-
|
|
-
|
Prepayment for
acquisition of land use right
|
-
|
|
-
|
Purchase of property,
plant and equipment and construction in process
|
(21,022)
|
|
(2,230)
|
Prepayment on prepaid
lease payments
|
-
|
|
-
|
Proceeds on disposal
of property, plant and equipment
|
-
|
|
-
|
Net cash used in
investing activities
|
21,517
|
|
40,308
|
|
|
|
|
Financing
activities
|
|
|
|
Advances from related
parities
|
271,837
|
|
-
|
Repayment to related
parties
|
-
|
|
-
|
Interest
paid
|
(51,185)
|
|
47,342
|
New bank loans
raised
|
1,644,448
|
|
-
|
Payment of bank
loans
|
(1,644,448)
|
|
-
|
Shares
issued
|
-
|
|
-
|
Net cash used in
financing activities
|
220,652
|
|
47,342
|
|
|
|
|
Net increase in
cash and cash equivalent
|
(4,177,613)
|
|
(1,818,932)
|
Effects of currency
translation
|
3,079,400
|
|
574,848
|
|
|
|
|
Cash and cash
equivalents at beginning of year
|
25,221,323
|
|
24,576,341
|
|
|
|
|
Cash and cash
equivalents at end of year
|
24,123,110
|
|
23,332,257
|
View original
content:http://www.prnewswire.com/news-releases/kbs-fashion-group-limited-announces-financial-results-for-the-second-quarter-and-first-half-of-2018-300687083.html
SOURCE KBS Fashion Group Limited