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 the year ended December 31, 2018.
“In 2018, our legacy dyeing and finishing enterprise persevered in standing numerous challenges such as hard economic conditions, rising uncooked materials expenses, and pressured closures using 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 the transport of objects consisting of packages, flora, desserts, and meal delivery by using ‘friends’ who can spare idle time to run errands inside the Hong Kong marketplace. We had over 1 two hundred people formally registered as promote-side pals during the yr, and that 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.”
The 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 all revenue appreciably 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 a 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 the additional system. Orders for brand spanking new low-emission airflow dyeing machines slowed down in 2018 and 2017 as capability customers no longer had the economic assets or credit to purchase equipment. Also, apparel factories and different factories were shut down in the closing 12 months via China’s environmental bureau, 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 to $4.4 million, compared to a gross lack of $156,000 for 2017. The 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 using the reduced scale of operations because of decreased revenues, mediated by the allocation of fixed expenses, mainly depreciation, 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 to enhance 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. Also, the Company recorded impairment losses of approximately $1.9 million related to the write-off of its patent of use rights in September 2018 and about $6.Three million associated with the disposition of manufacturing gadgets in December 2018.
Another rate turned into $nine—three million. Compared to the different price of $188Morerease was monot; the increase was re often than not because of the $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 engaged a neighborhood contractor to build the challenge. However, on June 1, 2018, the Chinese government halted the 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 its investment price at some point in 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 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.