SHISHI, China, Aug. 27, 2019 /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 2019.
Second Quarter of 2019 Financial Highlights
|
For the Three
Months Ended June 30,
|
($ millions,
except per share data)
|
2019
|
|
2018
|
|
%
Change
|
Revenues
|
4.42
|
|
3.89
|
|
13.6%
|
Distribution network
|
2.39
|
|
3.06
|
|
-21.8%
|
Corporate stores
|
0.12
|
|
0.13
|
|
-9.3%
|
OEM
|
1.91
|
|
0.70
|
|
172.4%
|
Gross
profit
|
1.71
|
|
1.03
|
|
66.1%
|
Gross
margin
|
38.6%
|
|
26.4%
|
|
-0.9 pp
|
Operating income
(loss)
|
0.62
|
|
-0.56
|
|
-209.8%
|
Operating (loss)
margin
|
13.9%
|
|
-14.4%
|
|
-77.1 pp
|
Net income
(loss)
|
0.36
|
|
-0.47
|
|
-177.9%
|
Earnings (loss) per
share
|
0.15
|
|
-0.21
|
|
-170.5%
|
- Net revenues increased by 13.6% to $4.42
million for the second quarter of 2019 from $3.89 million for the same period of last year.
The increase was primarily due to the increased OEM sales during
the quarter, up 172.4% compared to the same period of last
year.
- Gross profit increased by 66.1% to $1.71
million for the second quarter of 2019 from $1.03 million for the same period of last year.
Gross margin was 38.6% for the second quarter of 2019, compared to
26.4% for the same period of last year.
- Operating income was $0.62
million for the second quarter of 2019, compared to
operating loss of $0.56 million for
the same period of last year.
- Net income was $0.36 million, or
$0.15 earnings per basic and diluted
share, for the second quarter of 2019, compared to net loss of
$0.47 million, or $0.21 loss per basic and diluted share, for the
same period of last year.
Mr. Keyan Yan, Chief Executive
Officer of the Company commented, "we have made substantial
progress with our business strategy, resulting in a 66.1% and
56.8% gross profit increase for the second quarter and
the first half year compared to the same period of last year. We
were able to become profitable by earning $0.15 and $0.25 per
share for the second quarter and the first half of 2019,
respectively. Additionally, our collaboration with new partners has
considerably strengthened our product offerings to support our
growth. We are very satisfied with what we have accomplished so far
this year. The management team is continuing to broaden our
products' sales network throughout the marketplace to achieve a
successful future for our business."
Second Quarter of 2019 Financial Results
Revenues
Total revenues increased by $0.53
million, or 13.6%, to $4.42
million for the second quarter of 2019 from $3.89 million for the same period of last year.
The increase was related to the increased sales from OEM
division.
|
|
For the Three
Months Ended June 30,
|
|
|
2019
|
|
2018
|
($
millions)
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Margin
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Margin
|
Distribution
network
|
|
2.39
|
|
0.82
|
|
34.1%
|
|
3.06
|
|
0.73
|
|
23.7%
|
Corporate
stores
|
|
0.12
|
|
0.12
|
|
99.4%
|
|
0.13
|
|
0.06
|
|
46.6%
|
OEM
|
|
1.91
|
|
0.77
|
|
40.5%
|
|
0.70
|
|
0.24
|
|
34.7%
|
Total
|
|
4.42
|
|
1.71
|
|
38.6%
|
|
3.89
|
|
1.03
|
|
26.5%
|
Revenues from the Company's distribution network decreased by
$0.67 million, or 21.8%, to
$2.39 million for the second quarter
of 2018 from $3.06 million for the
same period of last year. Distribution network contributed 54.1% of
total revenues for the second quarter of 2019, compared to 78.7%
for the same period of last year. The Company's distributor network
consisted of 17 distributors in 9 provinces during the second
quarter of 2019, 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, 2019, the distributors operated 32
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 distributors operated 38 branded
franchise stores as of June 30,
2018.
The following table lists by region the number of retail stores
operated by distributors and sub-distributors as of June 30, 2019:
|
|
|
Location
|
|
As of June 30,
2019
|
Fujian
|
|
7
|
|
Guangdong
|
|
2
|
|
Guangxi
|
|
2
|
|
Jiangsu
|
|
4
|
|
Anhui
|
|
2
|
|
Sichuan
|
|
4
|
|
Chongqing
|
|
4
|
|
Tianjin
|
|
3
|
|
Hebei
|
|
4
|
|
Total
|
|
32
|
|
Revenues from corporate stores sales was $0.12 million for the second quarter of 2019
compared to $0.13 million in the same
period of last year. Corporate stores accounted for 2.7% of total
revenues for the second quarter of 2019, compared to 3.4% for the
same period of last year. As of both June
30, 2019 and June 30, 2018,
the Company operated 1 corporate store.
Revenues from OEM sales increased by $1.21 million, or 172.4%, to $1.91 million for the second quarter of 2019 from
$0.70 million for the same period of
last year. OEM accounted for 43.1% of total revenues for the second
quarter of 2019, compared to 17.7% 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 additional sales
contracts from two new customers.
Cost of Sales and Gross Profit
Total cost of sales decreased by $0.15
million, 5.3%, to $2.71
million for the second quarter of 2019 from $2.86 million for the same period of last
year.
Total gross profit increased by $0.68
million, or 66.1%, to $1.71
million for the second quarter of 2019 from $1.03 million for the same period of last year.
Gross profits for distribution network, corporate stores and OEM
were $0.82 million, $0.12 million, and $0.77
million, respectively, for the second quarter of 2019,
compared to $0.73 million,
$0.06 million, and $0.24 million, respectively, for the same period
of last year.
Overall gross margin was 38.6% for the second quarter of 2019,
compared to 26.5% for the same period of last year. On a segment
basis, gross margins for distribution network, corporate stores and
OEM were 34.1%, 99.4%, and 40.5%, respectively, for the second
quarter of 2019, compared to 23.7%, 46.6%, and 34.7%, respectively,
for the same period of last year. The increase in gross margin was
due to the launch of newly developed OEM products and distributors'
wholesale price adjustment. Additionally, our domestic VAT rate
reduced to 13% from 16%.
Operating Expenses and Operating Income (Loss)
Distribution and selling expenses decreased by $0.41 million, or 60.3%, to $0.27 million for the second quarter of 2019 from
$0.68 million for the same period of
last year. The decrease in distribution and selling expenses
was mainly due to the decrease in unnecessary advertising
expenses, labor cost, and reduced subsidy to our distributors to
increase the company's profit target throughout the year.
Administrative expenses decreased by $0.10 million, or 10.7%, to $0.86 million for the second quarter of 2019 from
$0.96 million for same period of last
year The slight decrease in administrative expenses was mainly due
to our efforts in the expense control including reduced
compensation for senior executives and R&D expenses.
Other operating expenses, including other income and other gains
and loss, totaled $0.04 million for
the second quarter of 2019, compared to $0.05 million for the same period of last year.
Total operating expense decreased by $0.50
million, or 31.2%, to $1.09
million for the second quarter of 2019 from $1.59 million for the same period of last year.
The decrease was mainly due to the implementation of operational
strategy to improve profitability this year, as well as reduced
compensation expenses, R&D expenses, and external designing
cost. Lastly, after Anhui
property is impaired, the depreciation expenses are reduced
accordingly.
Total income from operations was $0.62
million for the second quarter of 2019, compared to
operating loss of $0.56 million for
the same period of last year. Operating income margin was 13.9% for
the second quarter of 2019, compared to operating loss margin of
14.4% for the same period of last year.
Income (Loss) before Income Taxes
Income before income taxes was $0.60
million for the second quarter of 2019, compared to loss
before tax of $0.59 million for the
same period of last year.
Income tax expense was $0.23
million for the second quarter of 2019, compared to income
tax benefit of $0.12 million for the
same period of last year.
Net Income (Loss) and Earnings (Loss) per Share
Net income was $0.36 million, or
$0.15 earnings per basic and diluted
share, for the second quarter of 2019, compared to GAAP net loss of
$0.47 million, or $0.21 loss per basic and diluted share, for the
same period of last year.
|
|
For the Three
Months Ended June 30,
|
|
|
2019
|
|
2018
|
|
|
USD
|
|
EPS
|
|
USD
|
|
EPS
|
Net
income
|
|
$
363,603
|
|
$
0.149
|
|
$
(2,235,493)
|
|
$
(1.262)
|
Change in fair value of
warrants
|
|
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
|
|
|
|
|
|
|
|
First Half of 2019 Financial Results
|
For the Six Months
Ended June 30,
|
($ millions,
except per share data)
|
2019
|
|
2018
|
|
%
Change
|
Revenues
|
9.04
|
|
8.35
|
|
8.2%
|
Distribution network
|
5.43
|
|
6.96
|
|
-22.0%
|
Corporate stores
|
0.30
|
|
0.28
|
|
4.2%
|
OEM
|
3.31
|
|
1.11
|
|
198.3%
|
Gross
profit
|
3.32
|
|
2.12
|
|
56.8%
|
Gross
margin
|
36.8%
|
|
25.4%
|
|
-2.6 pp
|
Operating income
(loss)
|
1.09
|
|
-2.56
|
|
-142.7%
|
Operating (loss)
margin
|
12.1%
|
|
-30.7%
|
|
-60.2 pp
|
Net income
(loss)
|
0.61
|
|
-2.36
|
|
-125.9%
|
Earnings (loss) per
share
|
0.25
|
|
-1.07
|
|
-123.4%
|
Revenues
Total revenues increased by $0.69
million, or 8.2%, to $9.04
million for the first half of 2019 from $8.35 million for the same period of last year.
The increase was due to the increasing sales from corporate stores
and OEM.
|
|
For the Six Months
Ended June 30,
|
|
|
2019
|
|
2018
|
($
millions)
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Margin
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Margin
|
Distribution
network
|
|
5.43
|
|
1.78
|
|
32.9%
|
|
6.96
|
|
1.62
|
|
23.3%
|
Corporate
stores
|
|
0.30
|
|
0.19
|
|
63.1%
|
|
0.28
|
|
0.12
|
|
42.6%
|
OEM
|
|
3.31
|
|
1.35
|
|
40.8%
|
|
1.11
|
|
0.38
|
|
34.2%
|
Total
|
|
9.04
|
|
3.32
|
|
36.8%
|
|
8.35
|
|
2.12
|
|
25.4%
|
Revenues from the Company's distribution network decreased by
$1.53 million, or 22.0%, to
$5.43 million for the first half of
2019 from $6.96 million for the same
period of last year. Distribution network contributed 60.1% of
total revenues for the first half of 2019, compared to 83.4% for
the same period of last year. The decrease in revenues from the
distribution network was due to the discontinuation of
selected branded franchise stores operated by our
distributors. Our distributors integrated underperformed stores in
order to manage the cost and avoid the heavy backlog.
Revenues from corporate stores sales increased by $0.01 million, or 4.2%, to $0.30 million for the first half of 2019 from
$0.28 million for the same period of
last year. Corporate stores accounted for 3.3% of total revenues
for the first half of 2019, compared to 3.4% for the same period of
last year. The slight increase in corporate stores sales
was due to the improved products with higher sales prices.
Revenues from OEM sales increased by $2.20 million, or 198.3%, to $3.31 million for the first half of 2019 from
$1.11 million for the same period of
last year. OEM accounted for 36.7% of total revenues for the first
half of 2019, compared to 13.3% 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 newly signed sales
contracts with two new customers.
Cost of Sales and Gross Profit
As a result of cost management, total cost of sales decreased by
$0.52 million, 8.3%, to $5.72 million for the first half of 2019 from
$6.23 million for the same period of
last year.
Total gross profit increased by $1.20
million, or 56.8%, to $3.32
million for the first half of 2019 from $2.12 million for the same period of last year.
Gross profits for distribution network, corporate stores and OEM
were $1.78 million, $0.19 million, and $1.35
million, respectively, for the first half of 2019, compared
to $1.62 million, $0.12 million, and $0.38
million, respectively, for the same period of last year.
Overall gross margin was 36.8% for the first half of 2019,
compared to 25.4% for the same period of last year. On a segment
basis, gross margins for distribution network, corporate stores and
OEM were 32.9%, 63.1%, and 40.8%, respectively, for the first half
of 2019, compared to 23.3%, 42.6%, and 34.2%, respectively, for the
same period of last year. The increase in gross margin for all
three divisions was due to additional customers, price adjustment
for increasing OEM products, and reduced domestic VAT resulting
improved gross margin.
Operating Expenses and Operating Income (Loss)
Distribution and selling expenses decreased by $0.84 million, or 59.7%, to $0.57 million for the first half of 2019 from
$1.41 million for the same period of
last year. The decrease in distribution and selling expenses
was mainly due to the decrease in unnecessary advertising
expenses, labor cost, and reduced subsidy to our distributors to
increase the company's profit target throughout the year.
Administrative expenses decreased by $1.56 million, or 46.6%, to $1.79 million for the first half of 2019 from
$3.35 million for same period of last
year. The decrease was due to reduced compensation for senior
executives and R&D expenses.
Other operating expenses, including other income and other gains
and loss, totaled negative $0.13
million for the first half of 2019, compared to $0.08 million for the same period of last year.
Total operating expense decreased by $2.45
million, or 52.4%, to $2.23
million for the first half of 2019 from $4.68 million for the same period of last year.
The decrease was mainly due to the implementation of operational
strategy to improve profitability this year, as well as reduced
compensation expenses, R&D expenses, and external designing
cost. Lastly, after Anhui property
is impaired, the depreciation expenses are reduced accordingly.
Total income from operations was $1.09
million for the first half of 2019, compared to operating
loss of $2.56 million for the same
period of last year. Operating income margin was 12.1% for the
first half of 2019, compared to operating loss margin of 30.7% for
the same period of last year.
Income (Loss) before Income Taxes
Income before income taxes was $1.01
million for the first half of 2019, compared to loss before
income taxes of $2.61 million for the
same period of last year.
Income tax expense was $0.45
million for the first half of 2019, compared to income tax
benefit of $0.26 million for the same
period of last year.
Net Income (Loss) and Earnings (Loss) per Share
Net income was $0.61 million, or
$0.25 earnings per basic and diluted
share, for the first half of 2019, compared to net loss of
$2.36 million, or $1.07 loss per basic and diluted share, for the
same period of last year.
|
|
For the Six Months
Ended June 30,
|
|
|
2019
|
|
2018
|
|
|
USD
|
|
EPS
|
|
USD
|
|
EPS
|
Net
income
|
|
$
609,649
|
|
$
0.250
|
|
$
(3,969,079)
|
|
$
(2.241)
|
Change
in fair value of warrants
|
|
-
|
|
-
|
|
-
|
|
$
-
|
|
|
|
|
|
|
|
|
|
Financial Conditions
As of June 30, 2019, the Company
had cash and cash equivalents of $20.20
million, working capital of $26.46
million and stockholders' equity of $55.34 million, compared to $21.03 million, $26.46
million, and $54.30 million,
respectively, at December 31,
2018.
Net cash provided by operating activities was $0.22 million for the six months ended
June 30, 2019, compared to net cash
used in operating activities of $4.42
million for the same period of last year. Net cash provided
by investing activities was $0.03
million for the six months ended June
30, 2019, compared to net cash provided by investing
activities of $0.02 million for the
same period of last year. Net cash provided by financing activities
was $0.03 million for the six months
ended June 30, 2019, compared to net
cash provided by financing activities was $0.22 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
32 KBS branded stores (as of June
30, 2019) 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.
For further information, please contact:
Lixia Tu
Chief Financial Officer
T: +86 158-5972-2469
E: lingsantu@hotmail.com
KBS Fashion Group
Limited
|
Unaudited
Consolidated Statements of Financial Position
|
(Stated in US
dollars)
|
|
|
|
|
|
|
|
|
|
2019/06/30
|
|
2018/12/31
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
11,746,885
|
|
12,173,808
|
Prepayments and
premiums under operating leases
|
|
|
1,029,190
|
|
2,371,735
|
Prepayment for
construction of new plant
|
|
|
-
|
|
-
|
Prepayment for
acquisition of land use right
|
|
|
-
|
|
-
|
Land use
right
|
|
|
595,478
|
|
603,503
|
Deferred tax
asset
|
|
|
14,449,560
|
|
14,688,829
|
Total non-current
assets
|
|
27,821,112
|
|
29,837,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Inventories
|
|
|
1,382,031
|
|
1,245,800
|
Trade
receivables
|
|
|
11,385,708
|
|
8,122,223
|
Other receivables and
prepayments
|
|
|
(165,284)
|
|
855,473
|
Prepayments and
premiums under operating leases
|
|
|
1,384,684
|
|
78,532
|
Cash and cash
equivalents
|
|
|
20,198,685
|
|
21,026,103
|
Total current
assets
|
|
34,185,824
|
|
31,328,132
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
62,006,936
|
|
61,166,007
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
loans
|
|
1,090,957
|
|
1,092,785
|
Trade and other
payables
|
|
4,930,906
|
|
5,278,460
|
Related parties
payables
|
|
521,363
|
|
445,614
|
Income tax
payable
|
|
122,634
|
|
47,828
|
Total current
liabilities
|
|
6,665,859
|
|
6,864,685
|
|
|
|
|
|
|
Warrant
liabilities
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
6,665,859
|
|
6,864,685
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Share
capital
|
|
|
259
|
|
227
|
Share
premium
|
|
|
9,199,779
|
|
8,000,561
|
Revaluation
reserve
|
|
|
184,272
|
|
184,272
|
Statutory surplus
reserve
|
|
|
6,084,836
|
|
6,084,836
|
Retained
profits
|
|
|
46,787,863
|
|
46,178,214
|
Foreign currency
translation reserve
|
(6,915,931)
|
|
(6,146,787)
|
Total
equity
|
|
|
55,341,077
|
|
54,301,321
|
|
|
|
|
|
|
Total liabilities
and equity
|
62,006,936
|
|
61,166,007
|
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
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
4,421,408
|
|
3,893,045
|
|
9,038,280
|
|
8,352,070
|
Cost of
sales
|
|
(2,712,832)
|
|
(2,864,645)
|
|
(5,715,026)
|
|
(6,232,435)
|
Gross
profit
|
|
|
1,708,576
|
|
1,028,400
|
|
3,323,254
|
|
2,119,635
|
GP ratio
|
|
|
39%
|
|
26%
|
|
37%
|
|
25%
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
77,537
|
|
40,113
|
|
144,108
|
|
66,877
|
Other gains and
losses
|
|
(41,173)
|
|
12,797
|
|
(13,729)
|
|
13,819
|
Distribution and
selling expenses
|
(268,958)
|
|
(677,537)
|
|
(566,960)
|
|
(1,406,499)
|
Administrative
expenses
|
|
(860,959)
|
|
(963,980)
|
|
(1,792,258)
|
|
(3,354,952)
|
Operating
profit
|
|
615,024
|
|
(560,208)
|
|
1,094,414
|
|
(2,561,121)
|
|
|
|
|
|
|
|
|
|
|
Finance
costs
|
|
(16,894)
|
|
(25,670)
|
|
(34,101)
|
|
(51,185)
|
Change in fair value
of warrant liabilities
|
|
|
-
|
|
-
|
|
-
|
|
-
|
Profit before
tax
|
|
|
598,130
|
|
(585,878)
|
|
1,060,313
|
|
(2,612,306)
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(234,527)
|
|
119,362
|
|
(450,664)
|
|
256,512
|
Profit for the
year
|
|
|
363,603
|
|
(466,516)
|
|
609,649
|
|
(2,355,794)
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive(loss) income
|
|
|
|
|
|
|
|
|
|
-Currency translation
differences
|
|
|
(3,746,542)
|
|
(14,470,360)
|
|
(3,840,841)
|
|
(14,058,817)
|
Total
comprehensive income for the year
|
|
|
(3,382,939)
|
|
(14,936,876)
|
|
(3,231,192)
|
|
(16,414,611)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
2,441,299
|
|
2,206,741
|
|
2,441,299
|
|
2,206,741
|
loss per share of
common stock attibutable to the company
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
|
0.15
|
|
-0.21
|
|
0.25
|
|
-1.07
|
-Diluted
|
|
|
0.15
|
|
-0.21
|
|
0.25
|
|
-1.07
|
KBS Fashion Group
Limited
|
Unaudited
Consolidated Statements of Cash Flow
|
For the Six Months
ended June 30, 2019 and 2018
|
|
|
|
2019
|
|
2018
|
Operating
activities
|
USD
|
|
USD
|
Profit before
tax
|
609,649
|
|
(2,355,794)
|
Adjustments
for:
|
|
|
|
Adjust statutory
reserve for year 2013
|
-
|
|
51,185
|
Share based
payment
|
1,199,250
|
|
-
|
Finance
costs
|
34,101
|
|
-
|
Change in fair value
of warrant liabilities
|
-
|
|
(39,111)
|
Interest
income
|
(31,800)
|
|
-
|
Depreciation of
property, plant and equipment
|
413,560
|
|
792,939
|
Amortisation of
prepaid lease payments
|
7,123
|
|
7,554
|
Amortisation of
subsidies prepaid to distributors
|
-
|
|
-
|
Amortisation of
prepayments and premiums under operating leases
|
104,887
|
|
27,432
|
Provision (Reversal)
of inventory obsolescence
|
-
|
|
(28,616)
|
Bad debt
allowance
|
-
|
|
1,314,420
|
Gain on
disposal of property, plant and equipment
|
(801)
|
|
-
|
Operating cash
flows before movements in working capital
|
2,335,968
|
|
(229,992)
|
|
|
|
|
|
(Increase) / Decrease
in trade and other receivables
|
(3,328,397)
|
|
(2,584,533)
|
(Increase) / Decrease
in inventories
|
(140,425)
|
|
(292,727)
|
Increase / (Decrease)
in trade and other payables
|
260,014
|
|
108,615
|
Prepayment and
premiums paid under operating leases
|
303,274
|
|
(1,464,010)
|
Subsidies preaid to
distributors
|
|
|
|
Cash generated
from operations
|
(569,566)
|
|
(1,534,821)
|
DTA
|
|
217,972
|
|
(256,512)
|
Income taxes
paid
|
-
|
|
-
|
Net cash from
operating activities
|
(351,594)
|
|
(1,791,333)
|
|
|
|
|
|
Investing
activities
|
|
|
|
Interest
received
|
31,800
|
|
42,538
|
Purchase of property,
plant and equipment
|
-
|
|
(21,022)
|
Net cash providing
in investing activities
|
31,800
|
|
21,517
|
|
|
|
|
|
Financing
activities
|
|
|
|
Interest
paid
|
(34,101)
|
|
(51,185)
|
New bank loans
raised
|
1,107,594
|
|
1,644,448
|
Repayment of
borrowings
|
(1,107,594)
|
|
(1,644,448)
|
Advances from related
parities
|
71,833
|
|
271,837
|
Repayment to related
parties
|
-
|
|
-
|
Net cash providing
in financing activities
|
37,732
|
|
220,652
|
|
|
|
|
|
Net increase in
cash and cash equivalent
|
(282,061)
|
|
(4,177,613)
|
Effects of currency
translation
|
(545,356)
|
|
3,079,400
|
|
|
|
|
|
Cash and cash
equivalents at beginning of year
|
21,026,103
|
|
25,221,323
|
|
|
|
|
|
Cash and cash
equivalents at end of year
|
20,198,685
|
|
24,123,110
|
View original
content:http://www.prnewswire.com/news-releases/kbs-fashion-group-limited-posts-strong-revenues-growth-and-positive-operating-income-for-the-second-quarter-and-the-first-half-of-2019-300907653.html
SOURCE KBS Fashion Group Limited