SHISHI, China, Dec. 19, 2017 /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 2017.
Second Quarter of 2017 Financial Highlights
|
For the Three
Months Ended June 30,
|
($ millions,
except per share data)
|
2017
|
|
2016
|
|
%
Change
|
Revenues
|
4.07
|
|
7.91
|
|
-48.6%
|
Distribution network
|
3.47
|
|
6.83
|
|
-49.2%
|
Corporate stores
|
0.13
|
|
0.48
|
|
-72.2%
|
OEM
|
0.47
|
|
0.61
|
|
-23.2%
|
Gross
profit
|
0.86
|
|
1.75
|
|
-50.6%
|
Gross
margin
|
21.2%
|
|
22.1%
|
|
-0.9 pp
|
Operating income
(loss)
|
-2.93
|
|
0.40
|
|
-840.6%
|
Operating (loss)
margin
|
-72.1%
|
|
5.0%
|
|
-77.1 pp
|
GAAP net income
(loss)
|
-2.24
|
|
0.08
|
|
-2959.9%
|
GAAP Earnings (loss)
per share
|
-1.26
|
|
0.05
|
|
-2897.0%
|
- Net revenues decreased by 48.6% to $4.07
million for the second quarter of 2017 from $7.91 million for the same period of last year.
The decrease was related to the reduction of sales from the
distribution network, corporate stores and OEM.
- Gross profit decreased by 50.6% to $0.86
million for the second quarter of 2017 from $1.75 million for the same period of last year.
Gross margin was 21.2% for the second quarter of 2017, compared to
22.1% for the same period of last year.
- GAAP net loss was $2.24 million,
or $1.262 per basic and diluted
share, for the second quarter of 2017, compared to net income of
$0.08 million, or $0.045 per basic and diluted share, for the same
period of last year.
- Non-GAAP net loss, which excludes the provision of the change
in fair value of warrants, was $2.24
million, or $1.26 per basic
and diluted share, for the second quarter of 2017, compared to
non-GAA net income of $0.07 million,
or $0.043 per basic and diluted
share, for the same period of last year.
Mr. Xiaowen Zheng, Chief
Executive Officer of the Company commented, "The garment industry
continued to face significant headwinds with slowdown of demand and
industry-wide inventory build-up this year, leading to continued
decline of our business in the second quarter. While we are
disappointed with the second quarter results, we are exploring
alternatives to reposition the KBS brands and believe that the
Company has the solid fundamentals to come out stronger from the
downturn."
Second Quarter of 2017 Financial Results
Revenues
Total revenues decreased by $3.84
million, or 48.6%, to $4.07
million for the second quarter of 2017 from $7.91 million for the same period of last year.
The decrease was related to decreased sales from distribution
network, corporate stores and OEM.
|
|
For the Three
Months Ended June 30,
|
|
|
2017
|
|
2016
|
($
millions)
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Margin
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Margin
|
Distribution
network
|
|
3.47
|
|
0.66
|
|
19.1%
|
|
6.83
|
|
1.37
|
|
20.0%
|
Corporate
stores
|
|
0.13
|
|
0.06
|
|
47.7%
|
|
0.48
|
|
0.16
|
|
34.3%
|
OEM
|
|
0.47
|
|
0.14
|
|
29.5%
|
|
0.61
|
|
0.22
|
|
35.9%
|
Total
|
|
4.07
|
|
0.86
|
|
21.2%
|
|
7.91
|
|
1.75
|
|
22.1%
|
Revenues from the Company's distribution network decreased by
$3.36 million, or 49.2%, to
$3.47 million for the second quarter
of 2017 from $6.83 million for the
same period of last year. Distribution network contributed 85.3% of
total revenues for the second quarter of 2017, compared to 86.3%
for the same period of last year. The Company's distributor network
consisted of 24 distributors in 12 provinces during the second
quarter of 2017, compared to 30 distributors in 15 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, 2017, the Company operated 49 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 Company operated 60 branded franchise stores
as of June 30, 2016.
The following table lists by region the number of retail stores
operated by distributors and sub-distributors as of June 30, 2017:
|
|
|
|
Location
|
|
As of June
30, 2017
|
|
Fujian
|
|
8
|
|
Guangdong
|
|
2
|
|
Guangxi
|
|
6
|
|
Jiangsu
|
|
4
|
|
Anhui
|
|
1
|
|
Zhejiang
|
|
2
|
|
Chongqing
|
|
5
|
|
Inner
Mongolia
|
|
1
|
|
Tianjin
|
|
3
|
|
Hebei
|
|
5
|
|
Heilongjiang
|
|
5
|
|
Sichuan
|
|
7
|
|
Total
|
|
49
|
|
Revenues from corporate stores sales decreased by $0.35 million, or 72.2%, to $0.13 million for the second quarter of 2017 from
$0.48 million for the same period of
last year. Corporate stores accounted for 3.3% of total revenues
for the second quarter of 2017, compared to 6.1% for the same
period of last year. The decrease in corporate stores sales was due
to the closure of more corporate stores. As of June 30, 2017, the Company operated 1 corporate
store, compared to 2 corporate stores as of June 30, 2016.
Revenues from OEM sales decreased by $0.14 million, or 23.2%, to $0.47 million for the second quarter of 2017 from
$0.61 million for the same period of
last year. OEM accounted for 11.5% of total revenues for the second
quarter of 2017, compared to 7.7% 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 decrease in revenues
from OEM sales was primarily due to competitive pressure.
Cost of Sales and Gross Profit
Total cost of sales decreased by $2.96
million, 48.0%, to $3.21
million for the second quarter of 2017 from $6.17 million for the same period of last
year.
Total gross profit decreased by $0.89
million, or 50.6%, to $0.86
million for the second quarter of 2017 from $1.75 million for the same period of last year.
Gross profits for distribution network, corporate stores and OEM
were $0.66 million, $0.06 million, and $0.14
million, respectively, for the second quarter of 2017,
compared to $1.37 million,
$0.16 million, and $0.22 million, respectively, for the same period
of last year.
Overall gross margin was 21.2% for the second quarter of 2017,
compared to 22.1% for the same period of last year. On a segment
basis, gross margins for distribution network, corporate stores and
OEM were 19.1%, 47.7%, and 29.5%, respectively, for the second
quarter of 2017, compared to 20.0%, 34.3%, and 35.9%, respectively,
for the same period of last year. The decrease in gross margin for
distribution network was due to decreases in average selling prices
per unit to our distributors while the increase in gross margin for
corporate stores was primarily due to the reduction of promotions
made by our corporate store.
Operating Expenses and Operating Income (Loss)
Distribution and selling expenses decreased by $0.18 million, or 19.5%, to $0.76 million for the second quarter of 2017 from
$0.95 million for the same period of
last year. The decrease in distribution and selling expenses was
mainly due to i) the reduction in the expenses attributable to
corporate stores, including staff salary, rental expense and other
corporate stores expense; ii) the decrease on subsidy to our
distributors.
Administrative expenses decreased by $0.30 million, or 23.0%, to $1.01 million for the second quarter of 2017 from
$1.31 million for same period of last
year. The decrease in administrative expenses was mainly due to the
reduction of design expenses.
Other operating expenses, including other income and other gains
and loss, totaled $2.02 million for
the second quarter of 2017, compared to negative $0.91 million for the same period of last year.
Total operating expense increased by $2.44
million, or 180.7%, to $3.80
million for the second quarter of 2017 from $1.35 million for the same period of last year.
The increase was mainly due to the implementation of new accounting
policy on account receivable this year as we made certain
percentage of bad debt provision on some long age account
receivables as of June 30,2017.
Total loss from operations was $2.93
million for the second quarter of 2017, compared to
operating income of $0.40 million for
the same period of last year. Operating loss margin was 72.1% for
the second quarter of 2017, compared to operating profit margin of
5.0% for the same period of last year.
Income (Loss) before Income Taxes
Loss before income taxes was $2.96
million for the second quarter of 2017, compared to income
before taxes of $0.38 million for the
same period of last year.
Income tax benefit was $0.72
million for the second quarter of 2017, compared to income
tax expense of $0.30 million for the
same period of last year.
Net Income (Loss) and Earning s(Loss) per Share
GAAP net loss was $2.24 million,
or $1.262 per basic and diluted
share, for the second quarter of 2017, compared to GAAP net income
of $0.08 million, or $0.045 per basic and diluted share, for the same
period of last year.
Non-GAAP net loss, which excluded the provision of the change in
fair value of warrants, was $2.24
million, or $1.262 per basic
and diluted share, for the second quarter of 2017, compared to
non-GAAP net income of $0.07 million,
or $0.043 per basic and diluted
share, for the same period of last year.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures.
A reconciliation of these non-GAAP measures to their nearest
comparable GAAP measures is included below. Management
believes the use of non-GAAP measures is an additional useful
method of evaluating our financial condition and results of
operations. The non-GAAP financial measures disclosed should
not be considered a substitute for, or superior to, financial
measures calculated in accordance with GAAP, and the expected
results calculated in accordance with GAAP and reconciliations to
those expected results should be carefully evaluated. The non-GAAP
financial measures we use may be calculated differently from, and
therefore may not be comparable to similarly titled measures used
by other companies.
Management uses this information to measure performance over
time on a consistent basis and to identify trends related to the
Company's financial condition and results of operations. Management
believes that these non-GAAP measures provide investors with
information regarding the underlying performance of the company's
core business operating results.
|
|
For the Three
Months Ended June 30,
|
|
|
2017
|
|
2016
|
|
|
USD
|
|
EPS
|
|
USD
|
|
EPS
|
GAAP net
income
|
|
$
(2,235,493)
|
|
$
(1.262)
|
|
$
78,166
|
|
$
0.045
|
Change in fair value of
warrants
|
|
-
|
|
$
-
|
|
$
3,409
|
|
$
0.002
|
Non-GAAP net
income
|
|
$
(2,235,493)
|
|
$
(1.262)
|
|
$
74,757
|
|
$
0.043
|
First Half of 2017 Financial Results
|
For the Six Months
Ended June 30,
|
($ millions,
except per share data)
|
2017
|
|
2016
|
|
%
Change
|
Revenues
|
9.58
|
|
16.91
|
|
-43.3%
|
Distribution network
|
8.33
|
|
14.72
|
|
-43.4%
|
Corporate stores
|
0.35
|
|
0.98
|
|
-64.6%
|
OEM
|
0.90
|
|
1.21
|
|
-25.7%
|
Gross
profit
|
2.08
|
|
4.11
|
|
-49.5%
|
Gross
margin
|
21.7%
|
|
24.3%
|
|
-2.6 pp
|
Operating income
(loss)
|
-5.17
|
|
1.06
|
|
-589.0%
|
Operating (loss)
margin
|
-53.9%
|
|
6.2%
|
|
-60.2 pp
|
GAAP net income
(loss)
|
-3.97
|
|
0.51
|
|
-877.4%
|
GAAP Earnings (loss)
per share
|
-2.24
|
|
0.29
|
|
-860.3%
|
Revenues
Total revenues decreased by $7.33
million, or 43.3%, to $9.58
million for the first half of 2017 from $16.91 million for the same period of last year.
The decrease was related to decreased sales from distribution
network, corporate stores and OEM.
|
|
For the Six Months
Ended June 30,
|
|
|
2017
|
|
2016
|
($
millions)
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Margin
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Margin
|
Distribution
network
|
|
8.33
|
|
1.63
|
|
19.5%
|
|
14.72
|
|
3.26
|
|
22.2%
|
Corporate
stores
|
|
0.35
|
|
0.18
|
|
52.4%
|
|
0.98
|
|
0.39
|
|
40.2%
|
OEM
|
|
0.90
|
|
0.27
|
|
29.5%
|
|
1.21
|
|
0.45
|
|
37.4%
|
Total
|
|
9.58
|
|
2.08
|
|
21.7%
|
|
16.91
|
|
4.11
|
|
24.3%
|
Revenues from the Company's distribution network decreased by
$6.39 million, or 43.4%, to
$8.33 million for the first half of
2017 from $14.72 million for the same
period of last year. Distribution network contributed 87.0% of
total revenues for the first half of 2017, compared to 87.1% for
the same period of last year. The decrease in revenues from
distribution network was due to the loss of the some of our
distributors and the closure of some of branded franchise stores
operated by our distributors this year.
Revenues from corporate stores sales decreased by $0.63 million, or 64.6%, to $0.35 million for the first half of 2017 from
$0.98 million for the same period of
last year. Corporate stores accounted for 3.6% of total revenues
for the first half of 2017, compared to 5.8% for the same period of
last year. The decrease in corporate stores sales was due to the
closure of more corporate stores in 2017.
Revenues from OEM sales decreased by $0.31 million, or 25.7%, to $0.90 million for the first half of 2017 from
$1.21 million for the same period of
last year. OEM accounted for 9.4% of total revenues for the first
half of 2017, compared to 7.7% 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 decrease in revenues
from OEM sales was primarily due to competitive pressure.
Cost of Sales and Gross Profit
As a result of the reduction of our sales, total cost of sales
decreased by $5.30 million, 41.4%, to
$7.50 million for the first half of
2017 from $12.80 million for the same
period of last year.
Total gross profit decreased by $2.03
million, or 49.5%, to $2.08
million for the first half of 2017 from $4.11 million for the same period of last year.
Gross profits for distribution network, corporate stores and OEM
were $1.63 million, $0.18 million, and $0.27
million, respectively, for the first half of 2017, compared
to $3.26 million, $0.39 million, and $0.45
million, respectively, for the same period of last year.
Overall gross margin was 21.7% for the first half of 2017,
compared to 24.3% for the same period of last year. On a segment
basis, gross margins for distribution network, corporate stores and
OEM were 19.5%, 52.4%, and 29.5%, respectively, for the first half
of 2017, compared to 22.2%, 40.2%, and 37.4%, respectively, for the
same period of last year. The decrease in gross margin for
distribution network was due to the decreases in average selling
prices per unit to our distributors while the increase in gross
margin for corporate stores was primarily due to the reduction of
promotions made by our corporate stores.
Operating Expenses and Operating Income (Loss)
Distribution and selling expenses decreased by $0.29 million, or 15.1%, to $1.63 million for the first half of 2017 from
$1.92 million for the same period of
last year. The decrease in distribution and selling expenses was
mainly due to i) the reduction in the expenses attributable to
corporate stores, including staff salary, rental expense and other
corporate stores expense; ii) the decrease on subsidy to our
distributors.
Administrative expenses decreased by $0.01 million, or 0.6%, to $2.17 million for the first half of 2017 from
$2.18 million for same period of last
year.
Other operating expenses, including other income and other gains
and loss, totaled $3.44 million for
the first half of 2017, compared to negative $1.05 million for the same period of last year.
Total operating expense increased by $4.19
million, or 137.3%, to $7.24
million for the first half of 2017 from $3.05 million for the same period of last year.
The increase was mainly due to the implementation of new accounting
policy on account receivable this year as we made certain
percentage of bad debt provision on some long age account
receivables as of June 30, 2017.
Total loss from operations was $5.17
million for the first half of 2017, compared to operating
income of $1.06 million for the same
period of last year. Operating loss margin was 53.9% for the first
half of 2017, compared to operating profit margin of 6.2% for the
same period of last year.
Income (Loss) before Income Taxes
Loss before income taxes was $5.21
million for the first half of 2017, compared to income
before taxes of $1.04 million for the
same period of last year.
Income tax benefit was $1.24
million for the first half of 2017, compared to income tax
expense of $0.53 million for the same
period of last year.
Net Income (Loss) and Earning s(Loss) per Share
GAAP net loss was $3.97 million,
or $2.241 per basic and diluted
share, for the first half of 2017, compared to GAAP net income of
$0.51 million, or $0.295 per basic and diluted share, for the same
period of last year.
Non-GAAP net loss, which excluded the provision of the change in
fair value of warrants, was $3.97
million, or $2.241 per basic
and diluted share, for the first half of 2017, compared to non-GAAP
net income of $0.51 million, or
$0.293 per basic and diluted share,
for the same period of last year.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures.
A reconciliation of these non-GAAP measures to their nearest
comparable GAAP measures is included below. Management
believes the use of non-GAAP measures is an additional useful
method of evaluating our financial condition and results of
operations. The non-GAAP financial measures disclosed should
not be considered a substitute for, or superior to, financial
measures calculated in accordance with GAAP, and the expected
results calculated in accordance with GAAP and reconciliations to
those expected results should be carefully evaluated. The non-GAAP
financial measures we use may be calculated differently from, and
therefore may not be comparable to similarly titled measures used
by other companies.
Management uses this information to measure performance over
time on a consistent basis and to identify trends related to the
Company's financial condition and results of operations. Management
believes that these non-GAAP measures provide investors with
information regarding the underlying performance of the company's
core business operating results.
|
|
For the Six Months
Ended June 30,
|
|
|
2017
|
|
2016
|
|
|
USD
|
|
EPS
|
|
USD
|
|
EPS
|
GAAP net
income
|
|
$
(3,969,079)
|
|
$
(2.241)
|
|
$
510,553
|
|
$
0.295
|
Change in fair value
of warrants
|
|
-
|
|
$
-
|
|
$
3,409
|
|
$
0.002
|
Non-GAAP net
income
|
|
$
(3,969,079)
|
|
$
(2.241)
|
|
$
507,144
|
|
$
0.293
|
Financial Conditions
As of June 30, 2017, the Company
had cash and cash equivalents of $23.33
million, working capital of $44.64
million and stockholders' equity of $80.69 million, compared to $24.58 million, $48.65
million, and $83.40 million,
respectively, at December 31,
2016.
Net cash used in operating activities was $1.91 million for the six months ended
June 30, 2017, compared to net cash
provided by operating activities of $3.23
million for the same period of last year. Net cash provided
by investing activities was $0.04
million for the six months ended June
30, 2017, compared to net cash used in investing activities
of $0.07 million for the same period
of last year. Net cash provided by financing activities was
$0.05 million for the six months
ended June 30, 2017, compared to
$1.58 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 49 KBS
branded stores (as of June 30, 2017)
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
Tony Tian, CFA
Weitian Group LLC
T: +1 732-910-9692
E: tony.tian@weitian-ir.com
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
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
4,069,815
|
|
7,914,299
|
|
9,579,568
|
|
16,909,670
|
Cost of
sales
|
|
|
(3,206,800)
|
|
(6,165,681)
|
|
(7,503,626)
|
|
(12,802,096)
|
Gross
profit
|
|
|
863,016
|
|
1,748,618
|
|
2,075,942
|
|
4,107,574
|
GP ratio
|
|
|
22%
|
|
22%
|
|
22%
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
361,160
|
|
22,858
|
|
403,462
|
|
168,010
|
Other gains and
losses
|
|
|
(2,384,432)
|
|
884,226
|
|
(3,846,439)
|
|
882,883
|
Distribution and
selling expenses
|
|
|
(763,040)
|
|
(947,766)
|
|
(1,629,197)
|
|
(1,918,295)
|
Administrative
expenses
|
|
|
(1,010,216)
|
|
(1,311,825)
|
|
(2,169,787)
|
|
(2,183,832)
|
Operating
profit
|
|
|
(2,933,512)
|
|
396,112
|
|
(5,166,018)
|
|
1,056,340
|
|
|
|
|
|
|
|
|
|
|
Finance
costs
|
|
|
(23,361)
|
|
(23,260)
|
|
(47,342)
|
|
(23,326)
|
Change in fair value
of warrant liabilities
|
|
|
-
|
|
3,409
|
|
-
|
|
3,409
|
Profit before
tax
|
|
|
(2,956,872)
|
|
376,260
|
|
(5,213,360)
|
|
1,036,423
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
721,379
|
|
(298,094)
|
|
1,244,281
|
|
(525,870)
|
Profit for the
year
|
|
|
(2,235,493)
|
|
78,166
|
|
(3,969,079)
|
|
510,553
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
-Currency translation
differences
|
|
|
2,039,888
|
|
(2,683,709)
|
|
1,257,618
|
|
(2,175,404)
|
Total
comprehensive income
|
|
|
(195,605)
|
|
(2,605,543)
|
|
(2,711,461)
|
|
(1,664,851)
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
Owner of the
Company
|
|
|
(195,605)
|
|
(2,605,543)
|
|
(2,711,461)
|
|
(1,664,851)
|
Minority
interests
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Outstanding
shares
|
|
|
1,771,132
|
|
1,732,168
|
|
1,771,132
|
|
1,732,168
|
|
|
|
|
|
|
|
|
|
|
Profit per share -
basic and diluted
|
|
|
(1.2622)
|
|
0.0451
|
|
(2.24)
|
|
0.29
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP Profit
per share-basic and diluted
|
(1.2622)
|
|
0.0432
|
|
(2.24)
|
|
0.29
|
KBS Fashion Group
Limited
|
Unaudited
Consolidated Statements of Financial Position
|
(Stated in US
dollars)
|
|
|
|
|
|
2017/06/30
|
|
2016/12/31
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
23,332,257
|
|
24,576,341
|
Trade and other
receivables
|
23,135,529
|
|
23,483,465
|
Other receivables and
prepayments
|
1,281,077
|
|
5,364,120
|
Related parties
receivables
|
-
|
|
-
|
Inventories
|
3,482,514
|
|
2,450,866
|
Subsidies prepaid to
distributors
|
-
|
|
389,996
|
Prepayments and
premiums under operating leases
|
87,043
|
|
79,035
|
Prepaid lease
payments
|
-
|
|
-
|
Total current
assets
|
51,318,421
|
|
56,343,823
|
|
|
|
|
Non-current
assets
|
|
|
|
Prepayments and
premiums under operating leases
|
2,511,146
|
|
2,491,647
|
Prepayment for
construction of new plant
|
-
|
|
-
|
Prepayment for
acquisition of land use right
|
-
|
|
-
|
Construction in
progress
|
-
|
|
-
|
Property, plant and
equipment
|
26,656,087
|
|
26,758,749
|
Prepaid lease
payments
|
632,773
|
|
624,894
|
Deferred tax
asset
|
6,256,897
|
|
4,879,652
|
Total non-current
assets
|
36,056,903
|
|
34,754,942
|
|
|
|
|
Total
assets
|
87,375,324
|
|
91,098,765
|
|
|
|
|
Current
liabilities
|
|
|
|
Short-term
loans
|
1,549,953
|
|
1,513,623
|
Trade and other
payables
|
3,418,027
|
|
4,774,628
|
Related parties
payables
|
761,837
|
|
1,150,129
|
Income tax
payable
|
952,465
|
|
258,259
|
Total current
liabilities
|
6,682,282
|
|
7,696,639
|
|
|
|
|
Warrant
liabilities
|
-
|
|
-
|
|
|
|
|
Total
liabilities
|
6,682,282
|
|
7,696,639
|
|
|
|
|
Equity
|
|
|
|
Common
stock
|
177
|
|
177
|
Additional paid-in
capital
|
6,056,241
|
|
6,056,241
|
Capital
reserve
|
184,272
|
|
184,272
|
Surplus
reserve
|
6,084,836
|
|
6,084,836
|
Retained
earnings
|
74,995,705
|
|
78,962,407
|
Foreign currency
translation reserve
|
(6,628,188)
|
|
(7,885,806)
|
Total
equity
|
80,693,042
|
|
83,402,126
|
|
|
|
|
Total liabilities
and equity
|
87,375,324
|
|
91,098,765
|
KBS Fashion Group
Limited
|
Unaudited
Consolidated Statements of Cash Flow
|
For the Six Months
ended June 30, 2017 and 2016
|
USD
|
|
2017
|
|
2016
|
Operating
activities
|
USD
|
|
USD
|
Profit before
tax
|
(3,969,079)
|
|
510,553
|
Adjustments
for:
|
|
|
|
adjust
statutory reserve for year 2013
|
|
|
|
Finance
costs
|
(47,342)
|
|
23,326
|
change in fair value
of warrant liabilities
|
-
|
|
(3,409)
|
Interest
income
|
(42,538)
|
|
(42,379)
|
Bad debt
allowance
|
(3,831,436)
|
|
-
|
Depreciation of
property, plant and equipment
|
740,257
|
|
1,002,309
|
Amortisation of
prepaid lease payments
|
7,030
|
|
8,142
|
Amortisation of
subsidies prepaid to distributors
|
432,787
|
|
516,232
|
Amortisation of
prepayments and premiums under operating leases
|
51,761
|
|
77,548
|
Provision (Reversal)
of inventory obsolescence
|
(2,045)
|
|
(449)
|
Loss (gain) on
disposal of property, plant and equipment
|
(2,463)
|
|
1,752
|
|
|
|
|
|
Operating cash
flows before movements in working capital
|
(6,663,068)
|
|
2,093,625
|
|
|
|
|
|
(Increase) / Decrease
in trade and other receivables
|
4,731,162
|
|
3,969,567
|
(Increase) / Decrease
in prepayments and deferred expenses
|
4,102,502
|
|
(363,913)
|
Subsidies prepaid to
distributors
|
-
|
|
(516,232)
|
(Increase) / Decrease
in related parties receivables
|
-
|
|
-
|
(Increase) / Decrease
in inventories
|
(958,547)
|
|
(236,497)
|
Increase / (Decrease)
in trade and other payables
|
57,122
|
|
(1,075,709)
|
Increase / (Decrease)
in related parties payables
|
(1,126,397)
|
|
198,579
|
Cash generated
from operations
|
142,774
|
|
4,069,420
|
Deferred income
tax
|
(1,244,281)
|
|
260,058
|
Income taxes
paid
|
(805,076)
|
|
(1,098,083)
|
Net cash from
operating activities
|
(1,906,583)
|
|
3,231,395
|
|
|
|
|
|
Investing
activities
|
|
|
|
Interest
received
|
42,538
|
|
42,379
|
Prepayments and
premiums paid under operating leases
|
-
|
|
-
|
withdraw the
prepayments and premiums paid under operating leases
|
-
|
|
-
|
Subsidies prepaid to
distributors
|
-
|
|
-
|
Prepayment for
construction of new plant
|
-
|
|
-
|
Prepayment for
acquisition of land use right
|
-
|
|
-
|
Purchase of property,
plant and equipment and construction in process
|
(2,230)
|
|
(114,528)
|
Prepayment on prepaid
lease payments
|
-
|
|
-
|
Proceeds on disposal
of property, plant and equipment
|
-
|
|
-
|
Net cash used in
investing activities
|
40,308
|
|
(72,149)
|
|
|
|
|
|
Financing
activities
|
|
|
|
Waiver of payable to
Bay Peak
|
-
|
|
-
|
Interest
paid
|
47,342
|
|
(23,326)
|
New bank loans
raised
|
-
|
|
1,606,033
|
Repayment of
borrowings
|
-
|
|
-
|
Reverse
acquisition
|
-
|
|
-
|
Net cash used in
financing activities
|
47,342
|
|
1,582,707
|
|
|
|
|
|
Net increase in
cash and cash equivalent
|
(1,818,932)
|
|
4,741,953
|
Effects of currency
translation
|
574,848
|
|
(96,482)
|
|
|
|
|
|
Cash and cash
equivalents at beginning of year
|
24,576,341
|
|
21,214,080
|
|
|
|
|
|
Cash and cash
equivalents at end of year
|
23,332,257
|
|
25,859,551
|
View original
content:http://www.prnewswire.com/news-releases/kbs-fashion-group-limited-announces-financial-results-for-the-second-quarter-and-first-half-of-2017-300573025.html
SOURCE KBS Fashion Group Limited