BEIJING, Nov. 14, 2019
/PRNewswire/ -- Bat Group, Inc. (Nasdaq: GLG) (the "Company"), an
emerging used luxurious car rental service provider headquartered
in Beijing, China, today announced
its financial results for the three and nine months ended
September 30, 2019.
Mr. Jiaxi Gao, CEO and President
of Bat Group, Inc., comments, "We are pleased to report our
financial results for the three and nine months ended September 30, 2019. For the nine months ended
September 30, 2019, we generated
income of $1,505,508 from operating
lease, an increase of $1,267,931 from $237,577 for the nine months ended September 30, 2018. The increase was a result of
our continuous efforts in growing our luxurious car rental
business. We will continue to allocate our resources into our
growth as we plan to increase our inventory of high-end cars and
expand our operations into other cities in China. We are optimistic that customers will
respond positively to our brand and high-quality services as we
continue our expansion."
Three Months Ended September 30,
2019 Financial Highlights
- Income from operating lease increased by 301% to
$0.56 million, from $0.14 million for the three months ended
September 30, 2018.
- Net loss was $0.39
million, as compared with net loss of $0.64 million for the three months ended
September 30, 2018.
- Basic and diluted loss per share was $0.05, as compared with basic and diluted loss
per share of $0.13 for the three
months ended September 30, 2018.
Nine Months Ended September 30,
2019 Financial Highlights
- Income from operating lease increased by 534% to
$1.51 million, from $0.24 million for the nine months ended
September 30, 2018.
- Net income from discontinued operations was $nil, as
compared with $10.07 million for the
nine months ended September 30,
2018.
- Net loss was $3.26
million, as compared with net income of $8.48 million for the nine months ended
September 30, 2018.
- Basic and diluted loss per share was $0.46, compared with basic and diluted earnings
per share of $1.90 for the nine
months ended September 30, 2018.
Financial Results for the Three Months Ended September 30, 2019
Income from operating lease
Income from operating lease increased by $0.42 million, or 301% to $0.56 for the three months ended September 30, 2019 from $0.14 million for the three months ended
September 30, 2018. The increase was
mainly attributable to increased number of owned used luxurious
cars, and diversified lease income generated from both owned cars
and leased cars.
Operating lease expenses
The cost of operating lease was comprised of car related
expenses arising from lease of cars. With diversified lease income
generated from leased cars which was launched in January 2019, the Company recorded car related
expenses of $0.34 million.
Depreciation expenses on operating lease assets
The depreciation expenses on operating lease assets increased by
$0.05 million to $0.08 million for the three months ended
September 30, 2019. The increase was
mainly caused by the Company's continuous investments in used
luxurious cars. As of September 30,
2019, the Company had eleven used luxurious cars, as
compared with six cars as of September 30,
2018.
Selling, general, and administrative expenses
Selling, general, and administrative expenses decreased by
$0.18 million, or 25%, to
$0.56 million for the three months
ended September 30, 2019, from
$0.74 million for the three months
ended September 30, 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. The decrease was mainly attributable to
a decrease of legal and consulting expenses of $0.19 million, as the Company incurred less
financing and investing transactions during the period.
Net loss and basic and diluted loss per share
Net loss was $0.39 million for the
three months ended September 30,
3019, as compared with net loss of $0.64 million for three months ended September 30, 2018. Basic and diluted loss per
share was $0.05 for the three months
ended September 30, 2019, compared
with basic and diluted loss per share of $0.13 for three months ended September 30, 2019.
Financial Results for the Nine Months Ended September 30, 2019
Income from operating lease
Income from operating lease increased by $1.27 million, or 534% to $1.51 for the nine months ended September 30, 2019 from $0.24 million for the nine months ended
September 30, 2018. The increase was
mainly attributable to increased number of owned used luxurious
cars, and diversified lease income generated from both owned cars
and leased cars.
Operating lease expenses
The cost of operating lease was comprised of car related
expenses arising from lease of cars. With diversified lease income
generated from leased cars which was launched in January 2019, the Company recorded car related
expenses of $0.88 million for the
nine months ended September 30,
2019.
Depreciation expenses on operating lease assets
The depreciation expenses on operating lease assets increased by
$0.14 million, or 289% to
$0.19 million for the nine months
ended September 30, 2019, from
$0.05 million for the nine months
ended September 30, 2018. The
increase was mainly caused by the Company's continuous investments
in used luxurious cars. As of September 30,
2019, the Company had eleven used luxurious cars, as
compared with six cars as of September 30,
2018.
Selling, general, and administrative expenses
Selling, general, and administrative expenses increased by
$1.99 million, or 123% to
$3.60 million for the nine months
ended September 30, 2019, from
$1.61 million for the nine months
ended September 30, 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. The increase was mainly attributable to
the combined effects of an increase of promotion expenses of
$0.14 million, an increase of
car-related expenses of $0.11
million, an increase of legal and consulting expenses of
$0.21 million as a result of the
issuance of 502,391 restricted shares as compensation to service
providers, and expenses incurred for the registered direct
offerings in April and May 2019,
consisting of an increase of audit related fees of $0.18 million, an increase of commission of
$0.1 million to a third party vendor
for referral of underwriters, and other expenses of $0.34 million.
Net income from discontinued operations
During the nine months ended September
30, 2018, the net income was comprised of a net income of
$0.28 million from discontinued
operations of microcredit service and a gain of $9.79 million from disposal of the discontinued
operations of microcredit service.
Net (loss) income and basic and diluted (loss) earnings per
share
Net loss was $3.26 million for the
nine months ended September 30, 3019,
as compared with net income of $8.48
million for the nine months ended September 30, 2018.
Basic and diluted loss per share was $0.46 for the nine months ended September 30, 2019, as compared with basic and
diluted earnings per share of $1.90
for the nine months ended September 30,
2018, which was the net effect of basic and diluted loss per
share of $0.36 attributable to
continuing operations, and basic and diluted earnings per share of
$2.26 attributable to discontinued
operations.
Cash Flows
As of September 30, 2019, the
Company had cash and cash equivalents of $1.50 million, as compared with $1.48 million as of December 31, 2018.
Net cash used in operating activities was $1.98 million for the nine months ended
September 30, 2019, as compared to
$0.63 million for the nine months
ended September 30, 2018.
Net cash used in investing activities was $5.38 million for the nine months ended
September 30, 2019, compared to
$4.51 million for the nine months
ended September 30, 2018.
Net cash provided by financing activities was $7.40 million for the nine months ended
September 30, 2019, as compared to
$4.89 million for the nine months
ended September 30, 2018.
About Bat Group, Inc.
Bat Group, Inc. (Nasdaq: 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 Bat Group, 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.
BAT GROUP,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
2019
|
|
|
2018
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash
|
|
$
|
1,496,797
|
|
|
$
|
1,484,116
|
Loans receivable from
third parties
|
|
|
1,451,608
|
|
|
|
-
|
Due from related
parties
|
|
|
476,975
|
|
|
|
-
|
Other current
assets
|
|
|
177,345
|
|
|
|
87,922
|
Total current
assets
|
|
|
3,602,725
|
|
|
|
1,572,038
|
|
|
|
|
|
|
|
|
Investment
security
|
|
|
200,000
|
|
|
|
-
|
Investments in equity
investees
|
|
|
840,536
|
|
|
|
-
|
Investments in
financial products
|
|
|
1,000,000
|
|
|
|
-
|
Loan receivable from
a third party, noncurrent
|
|
|
49,031
|
|
|
|
-
|
Property and
equipment, net
|
|
|
4,320
|
|
|
|
5,524
|
Right-of-use lease
assets, net
|
|
|
55,283
|
|
|
|
-
|
Operating lease
assets, net
|
|
|
2,529,976
|
|
|
|
1,634,018
|
Total noncurrent
assets
|
|
|
4,679,146
|
|
|
|
1,639,542
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
8,281,871
|
|
|
$
|
3,211,580
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Advances from
customers
|
|
$
|
101,640
|
|
|
$
|
6,208
|
Third parties
loans
|
|
|
2,136,363
|
|
|
|
218,100
|
Due to related
parties
|
|
|
16,345
|
|
|
|
-
|
Advance of
subscription from shareholders
|
|
|
588,000
|
|
|
|
-
|
Other current
liabilities
|
|
|
288,407
|
|
|
|
185,049
|
Total current
liabilities
|
|
|
3,130,755
|
|
|
|
409,357
|
|
|
|
|
|
|
|
|
Related party loan,
noncurrent
|
|
|
148,495
|
|
|
|
-
|
Total noncurrent
liabilities
|
|
|
148,495
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
3,279,250
|
|
|
|
409,357
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
Series A Preferred
Stock (par value $0.001 per share, 1,000,000 shares authorized
at
September 30, 2019 and December 31, 2018,
respectively; nil shares issued and
outstanding at September 30, 2019 and
December 31, 2018, respectively)
|
|
|
-
|
|
|
|
-
|
Series B Preferred
Stock (par value $0.001 per share, 5,000,000 shares authorized
at
September 30, 2019 and December 31, 2018,
respectively; nil shares issued and
outstanding at September 30, 2019 and
December 31, 2018, respectively)
|
|
|
-
|
|
|
|
-
|
Common stock (par
value $0.001 per share, 100,000,000 shares authorized;
8,646,297
and 5,023,906 shares issued and
outstanding at September 30, 2019 and December 31,
2018, respectively)*
|
|
|
8,646
|
|
|
|
5,024
|
Additional paid-in
capital
|
|
|
34,299,372
|
|
|
|
28,765,346
|
Accumulated
deficit
|
|
|
(28,719,598)
|
|
|
|
(25,457,090)
|
Accumulated other
comprehensive loss
|
|
|
(585,313)
|
|
|
|
(511,057)
|
Total BAT Group,
Inc.'s Shareholders' Equity
|
|
|
5,003,107
|
|
|
|
2,802,223
|
|
|
|
|
|
|
|
|
Non-controlling
loss
|
|
|
(486)
|
|
|
|
-
|
Total
Equity
|
|
|
5,002,621
|
|
|
|
2,802,223
|
Total Liabilities
and Equity
|
|
$
|
8,281,871
|
|
|
$
|
3,211,580
|
BAT GROUP,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
|
COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
For
the
Three
Months Ended
September
30,
|
|
|
For
the
Nine Months
Ended
September
30,
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operating lease
|
|
$
|
564,614
|
|
|
$
|
140,856
|
|
|
$
|
1,505,508
|
|
|
$
|
237,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
expenses
|
|
|
344,310
|
|
|
|
-
|
|
|
|
877,320
|
|
|
|
-
|
Depreciation expenses
on operating lease assets
|
|
|
83,806
|
|
|
|
35,336
|
|
|
|
185,985
|
|
|
|
47,794
|
Total lease
expenses
|
|
|
428,116
|
|
|
|
35,336
|
|
|
|
1,063,305
|
|
|
|
47,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
|
|
556,430
|
|
|
|
741,762
|
|
|
|
3,596,706
|
|
|
|
1,615,039
|
Changes in fair value
of noncurrent liabilities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
166,540
|
Impairment on
operating lease assets
|
|
|
-
|
|
|
|
-
|
|
|
|
96,318
|
|
|
|
-
|
Total operating
expenses
|
|
|
984,546
|
|
|
|
777,098
|
|
|
|
4,756,329
|
|
|
|
1,829,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses), net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expenses)
|
|
|
27,089
|
|
|
|
2,216
|
|
|
|
(12,173)
|
|
|
|
2,531
|
Total other income
(expenses), net
|
|
|
27,089
|
|
|
|
2,216
|
|
|
|
(12,173)
|
|
|
|
2,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations before income taxes
|
|
|
(392,843)
|
|
|
|
(634,026)
|
|
|
|
(3,262,994)
|
|
|
|
(1,589,265)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
|
-
|
|
|
|
(991)
|
|
|
|
-
|
|
|
|
(1,011)
|
Net loss from
continuing operations
|
|
|
(392,843)
|
|
|
|
(635,017)
|
|
|
|
(3,262,994)
|
|
|
|
(1,590,276)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from
discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,072,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
|
(392,843)
|
|
|
|
(635,017)
|
|
|
|
(3,262,994)
|
|
|
|
8,482,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to non-controlling interests
|
|
|
5
|
|
|
|
-
|
|
|
|
(486)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to BAT Group, Inc.'s Shareholders
|
|
$
|
(392,848)
|
|
|
$
|
(635,017)
|
|
|
$
|
(3,262,508)
|
|
|
$
|
8,482,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
(loss) income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(392,843)
|
|
|
$
|
(635,017)
|
|
|
$
|
(3,262,994)
|
|
|
$
|
8,482,353
|
Foreign currency
translation adjustment
|
|
|
(57,232)
|
|
|
|
211,638
|
|
|
|
(74,256)
|
|
|
|
94,553
|
Reclassified to net
income from discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(125,220)
|
Total
comprehensive (loss) income
|
|
|
(450,075)
|
|
|
|
(423,379)
|
|
|
|
(3,337,250)
|
|
|
|
8,451,686
|
Less: Total
comprehensive loss attributable to non-controlling
interests
|
|
|
5
|
|
|
|
-
|
|
|
|
(486)
|
|
|
|
-
|
Comprehensive
(loss) income attributable to BAT Group, Inc.
|
|
$
|
(450,080)
|
|
|
$
|
9,386,183
|
|
|
$
|
(3,336,764)
|
|
|
$
|
8,451,686
|
(Loss) income per
share - basic and diluted
|
|
$
|
(0.05)
|
|
|
$
|
(0.13)
|
|
|
$
|
(0.46)
|
|
|
$
|
1.90
|
Net loss per share
from continuing operations – basic and diluted
|
|
$
|
(0.05)
|
|
|
$
|
(0.13)
|
|
|
$
|
(0.46)
|
|
|
$
|
(0.36)
|
Net income per share
from discontinued operations – basic and diluted
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
2.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding-Basic and Diluted
|
|
|
8,646,297
|
|
|
|
4,919,122
|
|
|
|
7,122,560
|
|
|
|
4,458,093
|
BAT GROUP,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
For
the
Nine Months
Ended
September
30,
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(3,262,994)
|
|
|
$
|
8,482,353
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation of
operating lease assets
|
|
|
185,985
|
|
|
|
58,854
|
Depreciation of
property and equipment
|
|
|
1,741
|
|
|
|
572
|
Impairment on an
operating lease asset
|
|
|
96,318
|
|
|
|
12,202
|
Gain on disposal of
operating lease asset
|
|
|
(7,851)
|
|
|
|
-
|
Restricted shares
issued to service providers
|
|
|
884,209
|
|
|
|
-
|
Gain on disposal of
discontinued operations
|
|
|
-
|
|
|
|
(9,794,873)
|
Shares issued for
settlement against legal proceedings
|
|
|
-
|
|
|
|
943,860
|
Changes in fair value
of noncurrent liabilities
|
|
|
-
|
|
|
|
166,540
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Other current
assets
|
|
|
(95,824)
|
|
|
|
(1,047,300)
|
Right-of-use lease
assets, net
|
|
|
(57,497)
|
|
|
|
-
|
Advances from
customers
|
|
|
99,490
|
|
|
|
-
|
Due to related
parties
|
|
|
17,000
|
|
|
|
-
|
Other current
liabilities
|
|
|
155,561
|
|
|
|
92,668
|
Other noncurrent
liabilities
|
|
|
-
|
|
|
|
(1,311,000)
|
Net cash provided by
operating activities from discontinued operations
|
|
|
-
|
|
|
|
1,769,566
|
Net Cash Used in
Operating Activities
|
|
|
(1,983,862)
|
|
|
|
(626,558)
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(707)
|
|
|
|
(5,945)
|
Purchases of
operating lease assets
|
|
|
(2,079,115)
|
|
|
|
(1,882,476)
|
Proceeds from
disposal of operating lease assets
|
|
|
335,111
|
|
|
|
122,481
|
Investment in one
investment security
|
|
|
(200,000)
|
|
|
|
-
|
Investments in equity
investees
|
|
|
(884,225)
|
|
|
|
-
|
Investments in
financial products
|
|
|
(1,000,000)
|
|
|
|
-
|
Due from a related
party
|
|
|
(18,299)
|
|
|
|
|
Loans to third
parties
|
|
|
(1,540,758)
|
|
|
|
(1,473,458)
|
Proceeds from
disposal of discontinued operations
|
|
|
-
|
|
|
|
500,000
|
Cash in connection
with discontinued operations
|
|
|
-
|
|
|
|
(499,496)
|
Net cash used in
investing activities from discontinued operations
|
|
|
-
|
|
|
|
(1,270,070)
|
Net Cash Used in
by Investing Activities
|
|
|
(5,387,993)
|
|
|
|
(4,508,964)
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Borrowings from third
parties
|
|
|
2,294,781
|
|
|
|
1,473,458
|
Repayments of
borrowings to third parties
|
|
|
(291,401)
|
|
|
|
-
|
Borrowings from a
related party
|
|
|
154,482
|
|
|
|
153,485
|
Advance of
subscription fees from shareholders
|
|
|
588,000
|
|
|
|
-
|
Cash raised in
registered direct offering, net of transaction costs
|
|
|
4,653,440
|
|
|
|
-
|
Cash raised in
private placement of common stocks
|
|
|
-
|
|
|
|
3,265,370
|
Net Cash Provided
by Financing Activities
|
|
|
7,399,262
|
|
|
|
4,892,313
|
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash
|
|
|
(14,726)
|
|
|
|
(277,787)
|
|
|
|
|
|
|
|
|
Net (Decrease)
Increase in Cash
|
|
|
12,681
|
|
|
|
(520,996)
|
Cash at Beginning of
Period
|
|
|
1,484,116
|
|
|
|
1,359,630
|
Cash at End of
Period
|
|
$
|
1,496,797
|
|
|
$
|
838,634
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information
|
|
|
|
|
|
|
|
Cash paid for
interest expense
|
|
$
|
20,621
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of Non-cash financing activities
|
|
|
|
|
|
|
|
Right-of-use assets
obtained in exchange for operating lease obligations
|
|
$
|
64,241
|
|
|
$
|
-
|
View original
content:http://www.prnewswire.com/news-releases/bat-group-inc-reports-third-quarter-2019-financial-results-300957987.html
SOURCE China Bat Group, Inc.