Sharing Economy International Reports Full Year 2018 Results

WUXI, Jiangsu Province, China, April 18, 2019 /PRNewswire/ — Sharing Economy International Inc. (“SEII” or “the Company”) (OTC Markets: SEII), a smooth technology and sharing economy employer 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 economy structures and condo associated agencies, today introduced its monetary consequences for yr ended December 31, 2018.
“In 2018, our legacy dyeing and completing business persisted to face numerous demanding situations including tough economic conditions, rising raw materials charges and compelled closures by way of the Chinese government which adversely impacted our monetary consequences for the 12 months. We additionally recorded $eight.6 million in impairment losses related to patent use rights and the disposition of producing the device in conjunction with an $8.Nine million loss on our solar farm equity approach investment following the Chinese government’s halt on new sun farm installations and reduced subsidies for sun farms already underneath production” stated Mr. Jianhua Wu, Chairman, and CEO of SEII. “Given the demanding situations dealing with our present production operations, we maintain to search for new boom possibilities for the Company. In 2018, we installed new sharing financial system organizations in peer-to-peer errand services, coworking, and 3-d virtual excursions, and are making appropriate development in growing our online rental sharing commercial enterprise in Asia.”
Mr. Parkson Yip, Vice President of SEII, commented, “While the improvement of our sharing economy groups is dependent on additional capital to fund their growth, we made high-quality strides over the last yr. In 2018 we launched BuddiGo, our sharing platform that offers on call for shipping of items which include programs, vegetation, cakes and meals shipping by way of ‘pals’ who can spare idle time to run errands in the Hong Kong market. During the year we had over 1, two hundred individuals formally registered as sell-side friends and that they finished over 500 shipping orders. Meanwhile, 3D Discovery generated over $zero.2 million in sales in 2018 and keeps its paintings on Autocap, a cellular app which allows customers to create an interactive virtual tour of a bodily space by using a cellular telephone digital camera. Finally, through our agreement with ECrent, we retain our prelaunch sports for our peer-to-peer rental sharing financial system in Asia. We remain positive approximately the destiny of this commercial enterprise and are hopeful it’ll make a meaningful contribution to our top line in 2019.”
The full Year 2018 Results
Revenue for 2018 reduced with the aid of 30.9% to $9.Five million, as compared to $13.Five million for 2017. The Company’s dying and completing business generated appreciably all revenue in 2018 because the forged rolled jewelry and related merchandise and petroleum and chemical equipment agencies have been discontinued in 2016 and the new sharing financial system companies are nevertheless in an early stage. Revenues declined because of an expected slowdown in shipments of low-emission airflow dyeing machines as many corporations inside the dyeing industry had already upgraded to new fashions and did not require extra system, and orders for brand new low-emission airflow dyeing machines bogged down in 2018 and 2017 as ability customers did no longer have the economic resources or credit score to purchase equipment. In addition, clothing factories and other factories were shut down at some point of the closing year by China’s environmental bureau, which has been reducing energy and gasoline delivery to decide compliance with China’s environmental laws, which contributed to the decline in revenues.
Gross loss for 2018 became $4.Four million, as compared to a gross loss of $156,000 for 2017. Gross margin turned into terrible 46.4% at some point of 2018 as compared to poor 1.2% for 2017. The gross margin for 2018 became in general impacted by using the reduced scale of operations due to lower revenues, that’s contemplated within the allocation of fixed expenses, mainly along with depreciation, to cost of sales, and a boom in hard work and raw fabric fees.
Operating costs extended via a hundred thirty-five.Zero% to $28.4 million, in comparison to $12.1 million in 2017. The boom was broadly speaking because of better professional charges in the shape of stock-based compensation related to enforcing a new marketing strategy with the goal of enhancing long-term growth, growth in salaries to aid new enterprise possibilities, transient lease fee and an increase in the allowance for doubtful debts. In addition, the Company recorded impairment losses of about $1.Nine million associated with the write-off it’s patent of use rights in September 2018 and about $6.Three million associated with the disposition of producing the device in December 2018.