WUXI, Jiangsu Province, China, April 18, 2019 /PRNewswire/ — Sharing Economy International Inc. (“SEII” or “the Company”) (OTC Markets: SEII), a clean era and sharing financial system business enterprise that designs, manufactures and distributes of proprietary high and coffee temperature dyeing and finishing machinery to the fabric industry, and is engaged within the development of sharing economic system platforms and condominium related agencies, today introduced its economic results for year ended December 31, 2018.
“In 2018, our legacy dyeing and finishing enterprise persevered to stand numerous challenges such as hard economic conditions, rising uncooked materials expenses and pressured closures by means of the Chinese authorities which adversely impacted our financial consequences for the 12 months. We additionally recorded $8.6 million in impairment losses associated with patent use rights and the disposition of producing equipment at the side of an $eight.9 million loss on our solar farm fairness approach funding following the Chinese government’s halt on new solar farm installations and reduced subsidies for sun farms already beneath construction,” said Mr. Jianhua Wu, Chairman and CEO of SEII. “Given the demanding situations dealing with our present production operations, we keep looking for new boom opportunities for the Company. In 2018, we installed new sharing economy organizations in peer-to-peer errand offerings, coworking, and 3-d digital tours, and are making accurate development in developing our online apartment sharing enterprise in Asia.”
Mr. Parkson Yip, Vice President of SEII, commented, “While the improvement of our sharing financial system companies is dependent on additional capital to fund their boom, we made awesome strides over the past yr. In 2018 we launched BuddiGo, our sharing platform that provides on call for transport of objects consisting of packages, flora, desserts and meals delivery by using ‘friends’ who can spare idle time to run errands inside the Hong Kong marketplace. During the yr we had over 1, two hundred people formally registered as promote-side pals and that they finished over 500 transport orders. Meanwhile, 3D Discovery generated over $zero.2 million in sales in 2018 and maintains its paintings on Autocap, a mobile app which permits users to create an interactive digital excursion of a bodily area with the aid of using a cell phone digital camera. Finally, via our agreement with ECrent, we preserve our pre-launch activities for our peer-to-peer rental sharing economic system in Asia. We continue to be constructive about the future of this enterprise and are hopeful it’s going to make a significant contribution to our top line in 2019.”
Full Year 2018 Results
Revenue for 2018 decreased by 30.Nine% to $nine.5 million, in comparison to $13.Five million for 2017. The Company’s dyeing and finishing business generated appreciably all revenue in 2018, for the reason that cast rolled earrings and associated products and petroleum and chemical equipment groups were discontinued in 2016 and the brand new sharing financial system agencies are nonetheless in an early level. Revenues declined due to an predicted slowdown in shipments of low-emission airflow dyeing machines as many corporations in the dyeing industry had already upgraded to new fashions and did now not require additional system, and orders for brand spanking new low-emission airflow dyeing machines slowed down in 2018 and 2017 as capability customers did no longer have the economic assets or credit to purchase equipment. In addition, apparel factories and different factories were shut down in the course of the closing 12 months via China’s environmental bureau, which has been reducing electricity and fuel delivery to determine compliance with China’s environmental legal guidelines, which contributed to the decline in sales.
Gross loss for 2018 changed into $4.4 million, compared to a gross lack of $156,000 for 2017. Gross margin turned into bad forty six.4% during 2018 compared to bad 1.2% for 2017. The gross margin for 2018 was typically impacted by means of the reduced scale of operations because of decreased revenues, which is mediated in the allocation of fixed expenses, mainly which include depreciation, to cost of sales, and growth in hard work and raw fabric prices.
Operating fees multiplied by way of a hundred thirty-five.Zero% to $28.Four million, in comparison to $12.1 million in 2017. The increase was basically because of higher expert costs inside the shape of stock-based repayment related to implementing a new business plan with the objective of enhancing lengthy-term increase, a boom in salaries to support new commercial enterprise opportunities, brief hire cost and an increase within the allowance for doubtful debts. In addition, the Company recorded impairment losses of approximately $1.9 million related to the write-off its patent of use rights in September 2018 and about $6.Three million associated with the disposition of manufacturing gadget in December 2018.
Other rate turned into $nine.Three million, compared to the different price of $188,000 in 2017. The increase was more often than not because of $eight.Nine million loss in equity investment in Shengxin, a developer and designer of solar farms in China. In April 2018, Shengxin secured and invested in a massive solar PV mission in Guizhou province, paid RMB40.0 million for the undertaking rights and also engaged a neighborhood contractor to proceed with building the challenge. However, on June 1, 2018, the Chinese government halted installation of recent solar farms for the rest of the year and reduced subsidies for projects already beneath construction. Due to big doubt about the repute of this assignment and recoverability of the Company’s investment, the Company fully impaired the price of its investment at some point of the third sector of 2018.
Loss from continuing operations turned into $forty two.1 million, or $(7.15) per simple and diluted percentage, compared to a loss from persevering with operations of $12.Eight million, or $(6.99) per fundamental and diluted proportion in 2017.
Gain from discontinued operations (Refer to “Discontinued Operations” discussion below) turned into $16,000, or $zero.00 in step with fundamental and diluted proportion. This compares to loss from discontinued operations of $ninety eight,000, or $(zero.05) in 2017.
Net loss for 2018 was $41.1 million, or $(7.15) according to a fundamental and diluted percentage, compared to internet lack of $12.9 million, or $(7.04) in step with primary and diluted share, in 2017.
Basic and diluted income consistent with percentage was based on 5,753,698 and 1,832,900 weighted common shares tremendous, respectively, for the years ended December 31, 2018, and 2017. All percentage and in keeping with share information has been adjusted to reflect a 1-for-four reverse inventory cut up powerful March 20, 2017.