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 second fiscal
quarter ended June 30, 2019.
Mr. Jiaxi Gao, CEO and President of Bat Group,
Inc., comments, “We are pleased to report our financial results for
the second quarter of 2019. For the six months ended June 30, 2019
we increased our income from operating lease from $96,721 to
$940,894 as we grew our luxurious car rental business. We will
continue to allocate our resources into growth as we plan to
increase our inventory of high-end cars and expand our operations
into other cities in China for the remaining two quarters of 2019.
We are optimistic that customers will respond positively to our
brand and high-quality services as we continue our expansion.”
Second Quarter of 2019 Financial Highlights
- Income from operating lease increased by 456%
to $0.54 million, from $0.10 million for the second quarter of
2018.
- Net income from discontinued operations was
nil, compared with $9.90 million for the second quarter of
2018.
- Net loss was $1.04 million, compared with net
income of $9.50 million for the second quarter of 2018.
- Basic and diluted loss per share was $0.14,
compared with basic and diluted earnings per share of $2.14 for the
second quarter of 2018.
Six Months Ended June 30, 2019 Financial
Highlights
- Income from operating lease increased by 873%
to $0.94 million, from $0.10 million for the six months ended June
30, 2018.
- Net income from discontinued operations was
nil, compared with $10.07 million for the six months ended June 30,
2018.
- Net loss was $2.87 million, compared with net
income of $9.12 million for the six months ended June 30,
2018.
- Basic and diluted loss per share was $0.45,
compared with basic and diluted earnings per share of $2.16 for the
six months ended June 30, 2018.
Second Quarter of 2019 Financial Results
Income from operating lease
Income from operating lease increased by $0.44
million, or 456% to $0.54 for the three months ended June 30, 2019
from $0.10 million for the same period of last year. 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 $0.32
million.
Depreciation expenses on operating lease assets
The depreciation expenses on operating lease
assets increased by $42,863, or 344% to $55,321 for the three
months ended June 30, 2019, from $12,458 for the same period of
last year. The increase was mainly caused by the Company’s
continuous investments in used luxurious cars. As of June 30, 2019,
the Company had thirteen used luxurious cars, as compared with six
cars as of June 30, 2018.
Selling, general, and administrative expenses
Selling, general, and administrative expenses
increased by $0.70 million, or 152% to $1.16 million for the three
months ended June 30, 2019, from $0.46 million for the same period
of last year. 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 combined effects of an increase in
promotion expenses of $53,129, an increase in car-related expenses
of $97,091 and expenses incurred for direct offering in April and
May 2019, consisting of an increase of audit related fees of
$161,815, an increase of commission of $100,000 to a third party
vendor for referral of underwriters, and other expenses of
$132,575.
Net income from discontinued operations
During the three months ended June 30, 2018, the
net income was comprised of a net income of $0.10 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
Net loss was $1.04 million for the three months
ended June 30, 3019, compared with net income of $9.50 million for
the same period of last year. Basic and diluted loss per share was
$0.14 for the three months ended June 30, 2019, compared with basic
and diluted earnings per share of $2.14 for the same period of last
year.
Six Months Ended June 30, 2019 Financial
Results
Income from operating lease
Income from operating lease increased by $0.84
million, or 873% to $0.94 for the six months ended June 30, 2019
from $0.10 million for the same period of last year. 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 $0.53 million
for the six months ended June 30, 2019.
Depreciation expenses on operating lease assets
The depreciation expenses on operating lease
assets increased by $89,721, or 720% to $102,179 for the three
months ended June 30, 2019, from $12,458 for the same period of
last year. The increase was mainly caused by the Company’s
continuous investments in used luxurious cars. As of June 30, 2019,
the Company had thirteen used luxurious cars, as compared with six
cars as of June 30, 2018.
Selling, general, and administrative expenses
Selling, general, and administrative expenses
increased by $2.17 million, or 248% to $3.04 million for the six
months ended June 30, 2019, from $0.87 million for the same period
of last year. 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 combined effects The increase was mainly
attributable to combined effects of an increase of promotion
expenses of $96,250, an increase of car-related expenses of
$143,485, an increase of legal and consulting expenses of
$1,284,101 as a result of issuance of 502,391 restricted shares as
compensations to service providers, and expenses incurred for
direct offering in April and May 2019, consisting of an increase of
audit related fees of $192,378, an increase of commission of
$100,000 to a third party vendor for referral of underwriters, and
other expenses of $194,004.
Net income from discontinued operations
During the six months ended June 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
Net loss was $2.87 million for the six months
ended June 30, 3019, compared with net income of $9.12 million for
the same period of last year. Basic and diluted loss per share was
$0.45 for the six months ended June 30, 2019, compared with basic
and diluted earnings per share of $2.16 for the same period of last
year.
Financial Conditions
As of June 30, 2019, the Company had cash and cash equivalents
of $1.31 million, compared with $1.48 million as of
December 31, 2018.
Net cash used in operating activities was $1.74 million for the
six months ended June 30, 2019, compared to $0.03 million for the
same period of last year.
Net cash used in investing activities was $5.10 million for the
six months ended June 30, 2019, compared to $3.23 million for the
same period of last year.
Net cash provided by financing activities was $6.72 million for
the six months ended June 30, 2019, compared to $3.27 million for
the same period of last year.
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 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 XiaoAscent Investor Relations LLCEmail:
tina.xiao@ascent-ir.com
BAT GROUP, INC.UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
| |
|
June 30, |
|
|
December 31, |
|
| |
|
2019 |
|
|
2018 |
|
| |
|
(Unaudited) |
|
|
|
|
| ASSETS |
|
|
|
|
|
|
| Cash |
|
$ |
1,307,186 |
|
|
$ |
1,484,116 |
|
| Loans receivable from third
parties |
|
|
1,103,769 |
|
|
|
- |
|
| Other current assets |
|
|
159,753 |
|
|
|
87,922 |
|
| Total current
assets |
|
|
2,570,708 |
|
|
|
1,572,038 |
|
| |
|
|
|
|
|
|
|
|
| Investment security |
|
|
200,000 |
|
|
|
- |
|
| Deposits for investments in
equity investees |
|
|
582,513 |
|
|
|
|
|
| Investment in an equity
investee |
|
|
291,256 |
|
|
|
- |
|
| Investments in financial
products |
|
|
1,000,000 |
|
|
|
- |
|
| Property and equipment,
net |
|
|
5,090 |
|
|
|
5,524 |
|
| Right-of-use lease assets,
net |
|
|
63,481 |
|
|
|
- |
|
| Prepayments for operating
lease assets |
|
|
235,918 |
|
|
|
- |
|
| Operating lease assets,
net |
|
|
3,085,073 |
|
|
|
1,634,018 |
|
| Total noncurrent
assets |
|
|
5,463,331 |
|
|
|
1,639,542 |
|
| |
|
|
|
|
|
|
|
|
| Total
Assets |
|
$ |
8,034,039 |
|
|
$ |
3,211,580 |
|
| |
|
|
|
|
|
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
| Advances from customers |
|
$ |
39,319 |
|
|
$ |
6,208 |
|
| Third parties loans |
|
|
2,257,237 |
|
|
|
218,100 |
|
| Operating lease
liabilities |
|
|
63,481 |
|
|
|
- |
|
| Due to a related party |
|
|
8,254 |
|
|
|
- |
|
| Other current liabilities |
|
|
213,052 |
|
|
|
185,049 |
|
| Total
Liabilities |
|
|
2,581,343 |
|
|
|
409,357 |
|
| |
|
|
|
|
|
|
|
|
| Commitments and
Contingencies |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Shareholders’
Equity |
|
|
|
|
|
|
|
|
| Series A Preferred Stock (par
value $0.001 per share, 1,000,000 shares authorized at June 30,
2019 and December 31, 2018, respectively; nil shares issued and
outstanding at June 30, 2019 and December 31, 2018,
respectively) |
|
$ |
- |
|
|
$ |
- |
|
| Series B Preferred Stock (par
value $0.001 per share, 5,000,000 shares authorized at June 30,
2019 and December 31, 2018, respectively; nil shares issued and
outstanding at June 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 June 30, 2019 and December 31,
2018, respectively)* |
|
|
8,646 |
|
|
|
5,024 |
|
| Additional paid-in
capital |
|
|
34,299,372 |
|
|
|
28,765,346 |
|
| Accumulated deficit |
|
|
(28,326,750 |
) |
|
|
(25,457,090 |
) |
| Accumulated other
comprehensive loss |
|
|
(528,081 |
) |
|
|
(511,057 |
) |
| Total BAT Group,
Inc.’s Shareholders’ Equity |
|
|
5,453,187 |
|
|
|
2,802,223 |
|
| |
|
|
|
|
|
|
|
|
| Non-controlling interests |
|
|
(491 |
) |
|
|
- |
|
| Total
Equity |
|
|
5,452,696 |
|
|
|
2,802,223 |
|
| Total Liabilities and
Equity |
|
$ |
8,034,039 |
|
|
$ |
3,211,580 |
|
BAT GROUP, INC.UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
ANDCOMPREHENSIVE (LOSS) INCOME
|
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from operating
lease |
|
$ |
540,895 |
|
|
$ |
96,721 |
|
|
$ |
940,894 |
|
|
$ |
96,721 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating lease expenses |
|
|
318,947 |
|
|
|
- |
|
|
|
533,010 |
|
|
|
- |
|
| Depreciation expenses on
operating lease assets |
|
|
55,321 |
|
|
|
12,458 |
|
|
|
102,179 |
|
|
|
12,458 |
|
| Selling, general, and
administrative expenses |
|
|
1,157,227 |
|
|
|
458,390 |
|
|
|
3,040,276 |
|
|
|
873,277 |
|
| Changes in fair value of
noncurrent liabilities |
|
|
- |
|
|
|
19,000 |
|
|
|
- |
|
|
|
166,540 |
|
| Impairment on operating lease
assets |
|
|
- |
|
|
|
- |
|
|
|
96,318 |
|
|
|
- |
|
| Total operating
expenses |
|
|
1,531,495 |
|
|
|
489,848 |
|
|
|
3,771,783 |
|
|
|
1,052,275 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other (expenses)
income, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest (expenses)
income |
|
|
(49,725 |
) |
|
|
315 |
|
|
|
(39,262 |
) |
|
|
315 |
|
| Total other (expenses)
income, net |
|
|
(49,725 |
) |
|
|
315 |
|
|
|
(39,262 |
) |
|
|
315 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss from
continuing operations before income taxes |
|
|
(1,040,325 |
) |
|
|
(392,812 |
) |
|
|
(2,870,151 |
) |
|
|
(955,239 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expenses |
|
|
- |
|
|
|
(20 |
) |
|
|
- |
|
|
|
(20 |
) |
| Net loss from
continuing operations |
|
$ |
(1,040,325 |
) |
|
$ |
(392,832 |
) |
|
$ |
(2,870,151 |
) |
|
$ |
(955,259 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income from
discontinued operations |
|
|
- |
|
|
|
9,896,100 |
|
|
|
- |
|
|
|
10,072,629 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss)
income |
|
$ |
(1,040,325 |
) |
|
$ |
9,503,268 |
|
|
$ |
(2,870,151 |
) |
|
$ |
9,117,370 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less: Net loss
attributable to non-controlling interests |
|
|
491 |
|
|
|
- |
|
|
|
491 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income
attributable to BAT Group, Inc.’s Shareholders |
|
$ |
(1,039,834 |
) |
|
$ |
9,503,268 |
|
|
$ |
(2,869,660 |
) |
|
$ |
9,117,370 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive (loss)
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss)
income |
|
$ |
(1,040,325 |
) |
|
$ |
9,503,268 |
|
|
$ |
(2,870,151 |
) |
|
$ |
9,117,370 |
|
| Foreign currency translation
adjustment |
|
|
(74,767 |
) |
|
|
8,135 |
|
|
|
(17,024 |
) |
|
|
(117,085 |
) |
| Reclassified to net income
from discontinued operations |
|
|
- |
|
|
|
(125,220 |
) |
|
|
- |
|
|
|
(125,220 |
) |
| Total comprehensive
(loss) income |
|
|
(1,115,092 |
) |
|
|
9,386,183 |
|
|
|
(2,887,175 |
) |
|
|
8,875,065 |
|
| Less: Total comprehensive loss
attributable to non-controlling interests |
|
|
(491 |
) |
|
|
- |
|
|
|
(491 |
) |
|
|
- |
|
| Comprehensive (loss)
income attributable to BAT Group, Inc. |
|
$ |
(1,114,601 |
) |
|
$ |
9,386,183 |
|
|
$ |
(2,886,684 |
) |
|
$ |
8,875,065 |
|
| Loss (income) per
share - basic and diluted |
|
$ |
(0.14 |
) |
|
$ |
2.14 |
|
|
$ |
(0.45 |
) |
|
$ |
2.16 |
|
| Net loss per share from
continuing operations – basic and diluted |
|
$ |
(0.14 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.45 |
) |
|
$ |
(0.23 |
) |
| Net income per share from
discontinued operations – basic and diluted |
|
$ |
- |
|
|
$ |
2.23 |
|
|
$ |
- |
|
|
$ |
2.39 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted Average
Shares Outstanding-Basic and Diluted |
|
|
7,530,693 |
|
|
|
4,442,320 |
|
|
|
6,348,064 |
|
|
|
4,216,133 |
|
BAT GROUP,
INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
| |
|
For the Six Months Ended June 30, |
|
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
| Cash Flows from
Operating Activities: |
|
|
|
|
|
|
| Net (loss) income |
|
$ |
(2,870,151 |
) |
|
$ |
9,117,370 |
|
|
| Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
| Depreciation of operating
lease assets |
|
|
102,179 |
|
|
|
12,458 |
|
|
| Depreciation of property and
equipment |
|
|
1,155 |
|
|
|
98 |
|
|
| Impairment on an operating
lease asset |
|
|
96,318 |
|
|
|
- |
|
|
| Restricted shares issued to
service providers |
|
|
884,208 |
|
|
|
- |
|
|
| 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 |
|
|
(72,394 |
) |
|
|
(931,176 |
|
) |
|
Advances from customers |
|
|
33,497 |
|
|
|
- |
|
|
|
Due to a related party |
|
|
8,352 |
|
|
|
- |
|
|
|
Other current liabilities |
|
|
72,590 |
|
|
|
(1,460 |
|
) |
|
Other noncurrent liabilities |
|
|
- |
|
|
|
(1,311,000 |
|
) |
|
Net cash provided by operating activities from discontinued
operations |
|
|
- |
|
|
|
1,769,566 |
|
|
| Net Cash Used in
Operating Activities |
|
|
(1,744,246 |
) |
|
|
(28,617 |
|
) |
| |
|
|
|
|
|
|
|
|
| Cash Flows from
Investing Activities: |
|
|
|
|
|
|
|
|
| Purchases of property and
equipment |
|
|
(707 |
) |
|
|
(5,376 |
|
) |
| Purchases of operating lease
assets |
|
|
(1,902,529 |
) |
|
|
(1,957,391 |
|
) |
| Investment in one investment
security |
|
|
(200,000 |
) |
|
|
|
|
| Investments in equity
investees |
|
|
(884,225 |
) |
|
|
- |
|
|
| Investments in financial
products |
|
|
(1,000,000 |
) |
|
|
- |
|
|
| Loans to third parties |
|
|
(1,114,225 |
) |
|
|
- |
|
|
| 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 |
|
|
(5,101,686 |
) |
|
|
(3,232,333 |
|
) |
| |
|
|
|
|
|
|
|
|
| Cash Flows from
Financing Activities: |
|
|
|
|
|
|
|
|
| Borrowings from third
parties |
|
|
2,063,193 |
|
|
|
- |
|
|
| 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 |
|
|
6,716,633 |
|
|
|
3,265,370 |
|
|
| |
|
|
|
|
|
|
|
|
| Effect of Exchange
Rate Changes on Cash |
|
|
(47,631 |
) |
|
|
(1,332 |
) |
|
| |
|
|
|
|
|
|
|
|
| Net (Decrease) Increase in
Cash |
|
|
(176,930 |
) |
|
|
3,088 |
|
|
| Cash at Beginning of
Period |
|
|
1,484,116 |
|
|
|
1,359,630 |
|
|
| Cash at End of
Period |
|
$ |
1,307,186 |
|
|
$ |
1,362,718 |
|
|
| Non-cash financing
activities |
|
|
|
|
|
|
|
|
| Right-of-use assets obtained
in exchange for operating lease obligations |
|
$ |
64,241 |
|
|
$ |
- |
|
|
TD (NASDAQ:GLG)
Historical Stock Chart
From Mar 2024 to Apr 2024
TD (NASDAQ:GLG)
Historical Stock Chart
From Apr 2023 to Apr 2024
