HANGZHOU, China, July 31, 2018 /PRNewswire/ -- Dragon Victory
International Limited ("LYL" or the "Company"), a company offering
reward-based crowdfunding opportunities and quality incubation
services to entrepreneurs in China, today announced its financial results
for the fiscal year ended March 31,
2018.
Mr. Jianjun Sun, Chairman and
Chief Executive Officer of Dragon Victory International Limited,
commented, "We are pleased to report our financial results for the
fiscal year ended March 31, 2018 with revenue increased by
19.2% to US$4.28 million. Revenue
generated from crowdfunding and incubation services increase by
21.6% and 18.1%. Our business has continued to strengthen its
reputation in business communities and among consumers following
our successful IPO. In total, 209 projects have initiated and
completed fundraising using our platform from its inception through
the end of the fiscal year, raising approximately US$120 million."
Mr. Jianjun Sun continued, "We
spent much of fiscal year 2018 laying the foundation for future
growth, including strengthening management and corporate governance
in addition to realizing our investment in research and development
to upgrade our platform, improve our business operations, and
launch of our auto-parts service platform in November 2017."
|
|
For the Twelve
Months Ended Mar 31
|
($ millions,
except per share Data)
|
|
2018
|
|
2017
|
|
%
Change
|
Revenue
|
|
4.28
|
|
3.59
|
|
19.18%
|
Crowdfunding
|
|
1.07
|
|
0.88
|
|
21.61%
|
Incubation
Service
|
|
3.20
|
|
2.71
|
|
18.13%
|
Finder's Fee
Service
|
|
0.00
|
|
0.00
|
|
0.00%
|
Procurement
Services
|
|
0.006
|
|
0.00
|
|
-
|
Income from
Operations
|
|
0.38
|
|
2.02
|
|
-80.94%
|
Income (Loss) before
Tax
|
|
0.76
|
|
2.18
|
|
-65.16%
|
Net income
attributable to Dragon Victory
|
0.19
|
|
1.71
|
|
-88.73%
|
EPS
|
|
0.02
|
|
0.171
|
|
-88.30%
|
Fiscal Year 2018 Financial Highlights
- Revenues was $4.28 million for
the twelve months ended March 31,
2018, an increase of 19.18% from the same period of last
year.
- Net income attributable to Dragon Victory was $0.19 million for the twelve months ended
March 31, 2018, a decrease of 88.73%
from the same period of last year.
- Basic and diluted earnings per share were $0.02 for the twelve months ended March 31, 2018, compared with $0.171 for the same period of last year.
Fiscal Year 2018 Operational Highlights
- Total funds raised was $120.37
million from April 12, 2015
through March 31, 2018.
- From April 12, 2015 through
March 31, 2018, 209 projects have
initiated and completed fundraising campaigns.
- Launched new auto-platform business in November 2017.
Fiscal Year 2018 Financial Results
Revenues
For the twelve months ended March 31,
2018, revenue increased by $0.69
million, or 19.18%, to $4.28
million from $3.59 million for
the same period of last year. The increase in revenue was mainly
due to the increase in revenue across all services and launch of
the new auto-platform business.
Revenue from crowdfunding increased by $0.19 million, or 21.61%, to $1.07 million and accounted for 25.10% of total
revenue for the twelve months ended March
31, 2018 from $0.88 million,
or 25% of total revenues, for the same period of last year. The
increase was primarily due to growth of our crowdfunding platform
service both in the number of projects and the number of registered
users, through active marketing and promotion.
Revenue from incubation service increased by $0.49 million, or 18.13%, to $3.20 million and accounted for 74.74% of total
revenue for the twelve months ended March
31, 2018 from $2.71 million,
or 75% of total revenues, for the same period of last year. The
increase was primarily due to a sustained and steady growing number
of successfully funded crowdfunding projects that have turned into
our incubation customers, as well as our higher work efficiency,
due to our greater experience in incubation services, in fulfilling
the increased client demand for the twelve months ended
March 31, 2018.
Revenue from new auto-platform business was $6,763 and accounted for 0.16% of total revenue
for the twelve months ended March 31,
2018.
Operating expenses
Selling, general and administrative expenses increased by
$2.32 million, or 147.27%, to
$3.89 million for the twelve months
ended March 31, 2018 from
$1.58 million for the same period of
last year. The increase in selling, general and administrative
expenses was primarily due to large amount of one-time IPO
professional fees, increased wages and benefits, and increased
operating expenses and administrative expenses resulting from
expanding our main business operation. Advertising costs are
expensed as incurred as selling expenses. Advertising expenses were
$19,769 and $8,808 for the twelve months ended March 31, 2018 and 2017, respectively.
Other Income and Expenses
Total other income increased by $0.21
million, or 129.77%, to $0.37
million for the twelve months ended March 31, 2018 from $0.16
million for the same period of last year. The increase was
mainly due to the interest income generated from wealth management
investment.
Taxes
Income tax increased by $0.17
million, or 36.46%, to $0.63
million for the twelve months ended March 31, 2018 from $0.46
million for the same period of last year, mainly due to the
increase in the revenues.
Net income
Net income decreased by $1.59
million, or 92.69%, to $0.13
million for the twelve months ended March 31, 2018 from $1.71
million for the same period of last year. The decrease in
net income was mainly due to the increase of selling, general and
administrative expenses and deduction of net income attributable to
non-controlling interest. After the deduction of non-controlling
interests, net income attributable to Dragon Victory decreased by
$1.52 million, or 88.73%, to
$0.19 million for the twelve months
ended March 31, 2018 from
$1.71 million for the same period of
last year.
Basic and diluted earnings per share were $0.02 for the twelve months ended March 31, 2018, compared with basic and diluted
earnings per share of $0.171 for the
same period of last year.
Financial Conditions
As of March 31, 2018, the Company
had cash and cash equivalents of $3.94
million, compared with $3.22
million as of March 31, 2017. Working capital was
$9.77 million, as of March 31, 2018, compared with $2.86 million, as of March
31, 2017.
Net cash used in operating activities was $1.01 million for the twelve months ended
March 31, 2018, compared to net cash
provided by operating activities of $2.68
million for the same period of last year.
Net cash used in investing activities was $6.27 million for the twelve months ended
March 31, 2018, compared to net cash
provided by investing activities of $0.80
million for the same period of last year.
Net cash provided by financing activities was $7.90 million for the twelve months ended
March 31, 2018, compared to net cash
used in financing activities of $0.17
million for the same period of last year.
About Dragon Victory International Limited
Incorporated in 2015 and headquartered in Hangzhou, Dragon Victory International Limited
("LYL" or the "Company") offers reward-based crowdfunding
opportunities in China to
entrepreneurs and funding sources through a fast-growing
reward-based crowdfunding platform at www.5etou.cn. 5etou is
designed to enable small- and medium-sized companies, start-ups and
idea generators to raise funding from participants through the
Internet. The Company also provides quality business incubation
services and financial services to entrepreneurs and business
entities with funding needs who utilize our crowdfunding platform.
More information is available at www.dvintinc.com.
Forward-Looking Statements
This press release contains information about the Company's
view of its future expectations, plans and prospects that
constitute forward-looking statements. Actual results may
differ materially from historical results or those indicated by
these forward-looking statements as a result of a variety of
factors including, but not limited to, risks and uncertainties
associated with its ability to raise additional funding, its
ability to maintain and grow its business, variability of operating
results, its ability to maintain and enhance its brand, its
development and introduction of new products and services, the
successful integration of acquired companies, technologies and
assets into its portfolio of products and services, marketing and
other business development initiatives, competition in the
industry, general government regulation, economic conditions,
dependence on key personnel, the ability to attract, hire and
retain personnel who possess the technical skills and experience
necessary to meet the requirements of its clients, and its ability
to protect its intellectual property. The Company encourages
you to review other factors that may affect its future results in
the Company's registration statement and in its other filings with
the Securities and Exchange Commission.
For more information, please contact:
In China:
Bo Lyu, the Board Secretary
Dragon Victory International Limited
Email: lb@dvintinc.com
Phone: +86-15157527297
In the United
States:
Tina Xiao, President
Ascent Investor Relations LLC
Email: tina.xiao@ascent-ir.com
Phone: +1-917-609-0333
DRAGON VICTORY
INTERNATIONAL LIMITED AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
3,937,490
|
$
|
3,222,361
|
|
|
Trade accounts
receivable,net
|
|
1,610,865
|
|
673,678
|
|
|
Other receivables and
prepayments
|
|
1,233,425
|
|
90,413
|
|
|
Related party
receivables
|
|
266,959
|
|
67,145
|
|
|
Short-term
investments
|
|
4,744,328
|
|
-
|
|
Total current
assets
|
|
11,793,067
|
|
4,053,597
|
|
Non-current
assets
|
|
|
|
|
|
|
Investment
|
|
75,547
|
|
72,563
|
|
|
Property, plant and
equipment, net
|
|
1,060,376
|
|
32,824
|
|
|
Intangible assets,
net
|
|
1,369
|
|
812
|
|
|
Other
assets
|
|
87,339
|
|
52,739
|
TOTAL
ASSETS
|
|
13,017,698
|
|
4,212,535
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
52,957
|
|
63,483
|
|
|
Taxes
payable
|
|
1,670,273
|
|
830,606
|
|
|
Accrued liabilities
and other current liabilities
|
|
236,277
|
|
253,913
|
|
|
Related party
payable
|
|
64,698
|
|
42,960
|
|
Total current
liabilities
|
|
2,024,205
|
|
1,190,962
|
TOTAL
LIABILITIES
|
|
2,024,205
|
|
1,190,962
|
|
|
|
|
|
COMMITMENTS &
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Dragon Victory
Stockholders' Equity
|
|
|
|
|
|
|
Ordinary Shares,
$0.0001 par value, 500,000,000 shares authorized; 11,421,393 and
10,000,000 shares issued and outstanding, respectively
|
|
1,142
|
|
1,000
|
|
|
Additional paid-in
capital
|
|
8,929,968
|
|
1,053,607
|
|
|
Statutory
reserves
|
|
433,479
|
|
65,331
|
|
|
Retained
earnings
|
|
1,876,235
|
|
2,051,252
|
|
|
Accumulated other
comprehensive income
|
|
(168,541)
|
|
(149,617)
|
|
Total Dragon
Victory stockholders' equity
|
|
11,072,283
|
|
3,021,573
|
|
Noncontrolling
interest
|
|
(78,790)
|
|
-
|
TOTAL
EQUITY
|
|
10,993,493
|
|
3,021,573
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
13,017,698
|
$
|
4,212,535
|
DRAGON VICTORY
INTERNATIONAL LIMITED AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME
(LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years
Ended
|
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
|
|
2018
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
4,278,729
|
$
|
3,590,217
|
$
|
1,662,406
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
3,894,688
|
|
1,575,069
|
|
983,783
|
Total operating
expenses
|
|
3,894,688
|
|
1,575,069
|
|
983,783
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
384,041
|
|
2,015,148
|
|
678,623
|
|
|
|
|
|
|
|
|
Other income
(expenses):
|
|
|
|
|
|
|
|
Gain on sale of
investments
|
|
-
|
|
-
|
|
230,202
|
|
Impairment on
investments
|
|
-
|
|
-
|
|
(30,118)
|
|
Other
income
|
|
93,639
|
|
118,935
|
|
1,141
|
|
Other
expenses
|
|
(31,617)
|
|
(24,946)
|
|
(459)
|
|
Interest
income
|
|
312,855
|
|
69,161
|
|
163
|
|
Interest
expense
|
|
-
|
|
-
|
|
(61,883)
|
Total other income
(expenses)
|
|
374,877
|
|
163,150
|
|
139,046
|
|
|
|
|
|
|
|
|
Income before
tax
|
|
758,918
|
|
2,178,298
|
|
817,669
|
|
Income tax
|
|
(633,614)
|
|
(464,327)
|
|
(164,817)
|
Net income
including noncontrolling interest
|
|
125,304
|
|
1,713,971
|
|
652,852
|
|
|
|
|
|
|
|
Less: loss
attributable to noncontrolling interest
|
|
(67,827)
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Net income
attributable to Dragon Victory
|
$
|
193,131
|
$
|
1,713,971
|
$
|
652,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
including noncontrolling interest
|
$
|
125,304
|
$
|
1,713,971
|
$
|
652,852
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
|
Foreign currency
translation loss
|
|
(29,887)
|
|
(146,008)
|
|
(2,643)
|
Comprehensive
income (loss) including noncontrolling interest
|
$
|
95,417
|
$
|
1,567,963
|
$
|
650,209
|
Comprehensive
income (loss) attributable to noncontrolling
interest
|
$
|
(78,790)
|
$
|
-
|
|
-
|
Comprehensive
income (loss) attributable to Dragon Victory
|
$
|
174,207
|
$
|
1,567,963
|
$
|
650,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Dragon Victory common stockholders
|
|
|
|
|
|
|
|
Basic
|
$
|
0.02
|
$
|
0.17
|
|
0.07
|
|
Diluted
|
$
|
0.02
|
$
|
0.17
|
|
0.07
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding-Dragon Victory
|
|
|
|
|
|
|
|
Basic
|
|
10,771,058
|
|
10,000,000
|
|
10,000,000
|
|
Diluted
|
|
10,771,058
|
|
10,000,000
|
|
10,000,000
|
DRAGON VICTORY
INTERNATIONAL LIMITED AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
For the Years
Ended
|
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
|
|
2018
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Net income (loss)
including noncontrolling interest
|
$
|
125,303
|
$
|
1,713,971
|
|
652,852
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
19,895
|
|
19,006
|
|
26,358
|
|
Gain on sale of
investments
|
|
-
|
|
-
|
|
(230,202)
|
|
Impairment on
investments
|
|
-
|
|
-
|
|
30,118
|
Changes in assets and
liabilities
|
|
|
|
|
|
|
|
Increase in accounts
receivables
|
|
(925,091)
|
|
(634,405)
|
|
(59,040)
|
|
(Increase)/decrease
in other receivables and prepayments
|
|
(825,169)
|
|
148,487
|
|
(225,253)
|
|
(Increase)/decrease
in related party receivables
|
|
(207,505)
|
|
516,904
|
|
(529,875)
|
|
(Increase)/decrease
in deferred tax asset
|
|
-
|
|
(13,746)
|
|
64,713
|
|
Decrease in other
current assets
|
|
33,042
|
|
-
|
|
481
|
|
(Decrease)/increase
in accounts payables
|
|
(33,206)
|
|
-
|
|
14,257
|
|
Increase in taxes
payable
|
|
819,336
|
|
703,448
|
|
192,006
|
|
(Decrease)/increase
in accrued liabilities and other current liabilities
|
|
(18,486)
|
|
225,824
|
|
20,337
|
Net
cash (used in)/provided by operating activities
|
|
(1,011,881)
|
|
2,679,489
|
|
(43,248)
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Investment in
affiliated entities
|
|
-
|
|
-
|
|
(34,331)
|
(Acquisitions)/disposals of investments
|
|
(4,825,706)
|
|
-
|
|
253,253
|
Increase in related
party receivables
|
|
-
|
|
842,544
|
|
(615,395)
|
Purchase of equipment
and improvements
|
|
(1,447,870)
|
|
(1,682)
|
|
(16,976)
|
Decrease in rent and
utility deposits
|
|
-
|
|
(43,572)
|
|
-
|
Purchase of
intangible assets
|
|
-
|
|
-
|
|
(541)
|
Net cash (used
in)/provided by investing activities
|
|
(6,273,576)
|
|
797,290
|
|
(413,990)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Proceeds from
issuance of ordinary shares
|
|
7,731,271
|
|
-
|
|
1,076,324
|
Capital contribution
from owners
|
|
145,232
|
|
-
|
|
-
|
Repayment of capital
lease
|
|
-
|
|
(15,975)
|
|
(20,419)
|
Increase (decrease)
in related party payable
|
|
27,075
|
|
(155,448)
|
|
(640,406)
|
Net cash provided
by/(used in) financing activities
|
|
7,903,578
|
|
(171,423)
|
|
415,499
|
|
|
|
|
|
|
|
Net
Increase/(decrease) of Cash and Cash Equivalents
|
|
618,121
|
|
3,305,356
|
|
(41,739)
|
Effect of foreign
currency translation on cash and cash equivalents
|
|
97,008
|
|
(85,475)
|
|
(2,114)
|
Cash and cash
equivalents–beginning of year
|
|
3,222,361
|
|
2,480
|
|
46,333
|
Cash and cash
equivalents–end of year
|
$
|
3,937,490
|
$
|
3,222,361
|
|
2,480
|
|
|
|
|
|
|
|
Supplemental cash
flow disclosures
|
|
|
|
|
|
|
|
Interest
received
|
$
|
312,856
|
$
|
69,161
|
$
|
-
|
|
Interest
paid
|
$
|
-
|
$
|
-
|
$
|
66,548
|
|
Income taxes
paid
|
$
|
285,749
|
$
|
-
|
$
|
-
|
View original
content:http://www.prnewswire.com/news-releases/dragon-victory-international-limited-reports-fiscal-year-2018-financial-results-300689468.html
SOURCE Dragon Victory International Limited