Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

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
OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of December 2023

Commission File Number 001-37593

BORQS TECHNOLOGIES, INC.

(Translation of registrant’s name into English)

Office B, 21/F, Legend Tower, 7 Shing Yip Street

Kwun Tong, Kowloon, Hong Kong

(Address of principal executive offices)

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 ☒ Form 40-F ☐

INFORMATION CONTAINED IN THIS FORM 6-K REPORT

The Company hereby submits its interim balance sheet and income statement for its six months ended on June 30, 2023. This submission is made within six months following the end of said period. The consolidated financial statements herein are unaudited, prepared by the management of the Company and furnished to this Current Report on Form 6-K and incorporated herein by reference.

BORQS TECHNOLOGIES, INC.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of US dollar (“US$”), unless otherwise stated)

	December 31, 2022			June 30, 2023
	US$			US$
ASSESTS
Current assets:
Cash and cash equivalents		11,305			8,281
Restricted cash		32			32
Time deposit		1,436
Accounts receivable		3,482			1,001
Inventories - net		4,235			5,515
Other receivables, net		6,619			9,163
Prepaid expenses and other current assets, net		882			687
Total current assets		27,991			24,679
Non-current assets:
Property and equipment, net		1,024			846
Right of Use Asset		704			399
Deferred tax assets		424			427
Total non-current assets		2,152			1,672
Total assets		30,143			26,351
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings					415
Accounts payable		7,071			6,807
Accrued expenses and other payables		21,581			20,099
Advances from customers		3,942			2,631
Accrued payroll and related liabilities		2,356			1,641
Lease Liabilities- current		536			217
Amount due to related parties-current		746			752
Deferred revenues		9			8
Income tax payable		7			177
Other liabilities		1,691			1,346
Total current liabilities		37,940			34,094
Non-current liabilities:
Deferred tax liability		909			916
Other long-term liabilities		39			37
Long-term payable		417			-
Non-current liabilities		1,990			1,918
Total non-current liabilities		3,355			2,872
Total liabilities		41,295			36,966
Commitments and contingencies
Shareholders’ equity
Ordinary shares		-			-
Additional paid-in capital		310,267			337,296
Subscription receivables		(14,378	)		(14,378	)
Statutory reserve		1,901			1,901
Accumulated deficit		(305,073	)		(333,874	)
Including :Minority interests		(357	)		(357	)
Accumulated other comprehensive loss		(3,512	)		(1,203	)
Total shareholders’ equity		(11,152	)		(10,615	)
Total liabilities and shareholders’ equity		30,143			26,351

BORQS TECHNOLOGIES, INC.

UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS

(Amounts in thousands of US dollar (“US$”), unless otherwise stated)

	For the six months ended June 30,
	2022			2023
	US$			US$
Net revenues:
Software		5,065			5,662
Hardware		21,196			9,330
Total net revenues		26,261			14,992

Cost of revenues
Software		(4,453	)		(3,915	)
Hardware		(19,530	)		(8,165	)
Total cost of revenues		(23,983	)		(12,080	)

Total gross (loss) profit		2,279			2,912

Operating expenses:
Sales and marketing expenses		(107	)		(226	)
General and administrative expenses		(3,665	)		(10,408	)
Research and development expenses		(1,953	)		(1,362	)
Total operating expenses		(5,725	)		(11,996	)

Operating income (loss)		(3,447	)		(9,084	)

Interest income		1			59
Interest expense		(788	)		(3,571	)
Other income		369			3
Other expense		(1,415	)		(16,508	)
Foreign exchange income (loss)		8			286
Government grant		-			14
Income (loss) from continuing operations, before income taxes		(5,272	)		(28,801	)

Income tax expense		-			-

Net income (loss) from continuing operations		(5,272	)		(28,801	)

Summary discussions on the results of the first half of 2023.

Geographically, our customers were mainly from China, India, U.S, and Europe. For the interim period ended June 30, 2023, our revenue from customers with their headquarters located in China, India, U.S and Europe accounted for 30%, 29%, 24% and 16% respectively.

The table below shows the reconciliation of EBITDA and Adjusted EBITDA from the US-GAAP net losses for the interim period ended June 30, 2023 and June 30, 2022 respectively.

	For the six months ended June 30,
	2022			2023
Net income (loss) from continuing operations		(5,272	)		(28,801	)

Interest		(154	)		(3,571	)
Depreciation and Amortization		(649	)		(303	)
EBITDA		(4,469	)		(24,927	)

Litigation expenses		(999	)		(74	)
Gains or losses on foreign exchange		8			286
Non-operating income or expense		(930	)		17
Share-based compensation or expense		(970	)		(23,409	)

Adjusted EBITDA		(1,578	)		(1,747	)

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.

	BORQS TECHNOLOGIES INC.
	(registrant)

Dated: December 27, 2023	By:	/s/ Henry Sun
		Henry Sun
		Chief Financial Officer

Document And Entity Information	6 Months Ended
Document And Entity Information	Jun. 30, 2023
Document Information Line Items
Entity Registrant Name	BORQS TECHNOLOGIES, INC.
Document Type	6-K
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0001650575
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 8,281	$ 11,305
Restricted cash	32	32
Time deposit		1,436
Accounts receivable	1,001	3,482
Inventories - net	5,515	4,235
Other receivables, net	9,163	6,619
Prepaid expenses and other current assets, net	687	882
Total current assets	24,679	27,991
Non-current assets:
Property and equipment, net	846	1,024
Right of Use Asset	399	704
Deferred tax assets	427	424
Total non-current assets	1,672	2,152
Total assets	26,351	30,143
Current liabilities:
Short-term borrowings	415
Accounts payable	6,807	7,071
Accrued expenses and other payables	20,099	21,581
Advances from customers	2,631	3,942
Accrued payroll and related liabilities	1,641	2,356
Lease Liabilities- current	217	536
Deferred revenues	8	9
Income tax payable	177	7
Other liabilities	1,346	1,691
Total current liabilities	34,094	37,940
Non-current liabilities:
Deferred tax liability	916	909
Other long-term liabilities	37	39
Long-term payable		417
Non-current liabilities	1,918	1,990
Total non-current liabilities	2,872	3,355
Total liabilities	36,966	41,295
Commitments and contingencies
Shareholders’ equity
Ordinary shares
Additional paid-in capital	337,296	310,267
Subscription receivables	(14,378)	(14,378)
Statutory reserve	1,901	1,901
Accumulated deficit	(333,874)	(305,073)
Including :Minority interests	(357)	(357)
Accumulated other comprehensive loss	(1,203)	(3,512)
Total shareholders’ equity	(10,615)	(11,152)
Total liabilities and shareholders’ equity	26,351	30,143
Related Party
Current liabilities:
Amount due to related parties-current	$ 752	$ 746

Unaudited Consolidated Statement of Operations - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Net revenues:
Software	$ 5,662	$ 5,065
Hardware	9,330	21,196
Total net revenues	14,992	26,261
Cost of revenues
Software	(3,915)	(4,453)
Hardware	(8,165)	(19,530)
Total cost of revenues	(12,080)	(23,983)
Total gross (loss) profit	2,912	2,279
Operating expenses:
Sales and marketing expenses	(226)	(107)
General and administrative expenses	(10,408)	(3,665)
Research and development expenses	(1,362)	(1,953)
Total operating expenses	(11,996)	(5,725)
Operating income (loss)	(9,084)	(3,447)
Interest income	59	1
Interest expense	(3,571)	(788)
Other income	3	369
Other expense	(16,508)	(1,415)
Foreign exchange income (loss)	286	8
Government grant	14
Income (loss) from continuing operations, before income taxes	(28,801)	(5,272)
Income tax expense
Net income (loss) from continuing operations	$ (28,801)	$ (5,272)