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Vitaxel Group Reports First Quarter 2016 Financial Results
May 25, 2016 9:00 AM EDT | Source: Vitaxel Group Limited
- Q1 Revenue Increases 60.8% YoY to $860,240
- Q1 Gross Profit jumps166.3% YoY to $305,152
Kuala Lumpur, Malaysia--(Newsfile Corp. - May 25, 2016) - Vitaxel Group Limited (OTCQB: VXEL) (the "Company" or "Vitaxel"), on May 16, 2016 announced its financial results for the first quarter ended March 31, 2016.
First Quarter Highlights:
- Total revenues grew 60% to $860,240 for the first quarter of 2016 from $534,917 for the same period of last year
- Gross profit was $305,152, an increase of 166.3% compared to the same period of last year
- Growth margin increased significantly to 35.5% in the first quarter of 2016 from 21.4%in the same period of 2015
- Net Income grew 18.3% to $2,968 for the first quarter of 2016 from $2,509 for the same period of 2015
"We are very pleased to achieve excellent growth in revenue during the first quarter. We believe this is a strong indicator of the successful launched new program, which has been widely well-received in South East Asia. To keep the momentum and unlock the sales potential in the market worldwide, Vitaxel will continue the effort to expand its branches to other regions of Asia, such as China and Taiwan after a great success in opening the branches in Singapore and Thailand" Ryan Leong, CEO of Vitaxel commented.
"Currently we are promoting our product through seminars and road shows throughout our developed markets. We believe by educating our members with benefits of our products will further enhance our market exposure. Our product Amalaki is made from the Amla fruit, also known as the indian gooseberry. It is a great support and nutrition for the digestive tract, among other wonderful benefits including optimal function of the inner and outer skin, arteries, blood purification and liver rejuvenation hence promoting vitality and youth.
In the months to come we are also focusing on strengthening our presence in our newly developed market such as Thailand. By setting up Vitaxel Corp Thailand, an entity with direct selling licence, we believe the market has great potential for promoting our product and increasing our subsidiary Vitaxel Sdn Bhd's revenue in the second half of the year." according to Ryan Leong, CEO of Vitaxel.
Vitaxel Sdn Bhd is venturing into the China market by registering a company and setting up an office branch in Dongguan, Shenzhen. They intend to develop and launch a new program suited and compliant to the China market's regulatory demands. The China Market is one of Vitaxel Group Limited's main focus due to its large population and high density.
On the other hand, Vitaxel Online Mall has recently opened its services to the public. With the high competitiveness in the ecommerce marketplace, Vionmall differs itself from the crowded market by focusing in promoting entrepreneurship. In line with the trend today, Vionmall is expected to be popular marketplace platform for members and non-members alike. With the main focus on educating and helping small business to venture into ecommerce marketplace. Vitaxel Online Mall is fully committed in achieving stable users growth by fourth quarter of the year.
About Vitaxel Group Limited
Vitaxel Group Limited has three significant operating subsidiaries, Vitaxel SDN BHD (Vitaxel) and Vitaxel Online Mall SDN BHD (Vionmall), and the Vitaxel Singapore PTE. Ltd. ("Vitaxel Singapore"). Vitaxel is engaged in the direct selling industry utilizing a multilevel marketing model with an emphasis on travel, entertainment and lifestyle products and services. Vionmall is engaged in the development of online shopping platforms geared to Vitaxel and its members and third party providers of products and services.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving 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. You 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 the risk factors discussed in the Company's periodic and other reports that are filed with the Securities and Exchange Commission and available on the SEC's 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 risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Contacts:
Email: info@vitaxel.com
Phone: 03-2143 2889
- Tables Below -
Vitaxel Group Limited
CONSOLIDATED BALANCE SHEETS
As of March 31,2016 and December 31,2015
(In U.S.dollars)
| As of March 31, | As of December 31, | |||||
| 2016 | 2015 | |||||
| (Unaudited) | ||||||
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents | $ | 767,241 | $ | 303,794 | ||
| Prepayment | 13,538 | 12,308 | ||||
| Inventories | 21,653 | 9,870 | ||||
| Other receivables and other assets | 61,663 | 53,324 | ||||
| Total Current Assets | 864,095 | 379,296 | ||||
| NON-CURRENT ASSETS | ||||||
| Property, plant and equipment, net | 192,905 | 104,857 | ||||
| Total Non-Current Assets | ||||||
| TOTAL ASSETS | $ | 1,057,000 | $ | 484,153 | ||
| CURRENT LIABILITIES | ||||||
| Amounts due to a related party | $ | 435,897 | $ | 233,100 | ||
| Amounts due to a director | 25,641 | - | ||||
| Commission payables | 661,948 | 537,655 | ||||
| Accruals and other payables | 1,033,818 | 735,143 | ||||
| Tax payable | 41,884 | 17,586 | ||||
| Total Current Liabilities | 2,199,188 | 1,523,484 | ||||
| TOTAL LIABILITIES | 2,199,188 | 1,523,484 | ||||
| Commitments and Contingencies | - | |||||
| STOCKHOLDERS' EQUITY | ||||||
| Common stock par value $0.000001: 99,975,000,000 shares authorized; | ||||||
| 5,098,725,000 and 3,999,000,000 shares issued and outstanding, respectively | 5,099 | 3,999 | ||||
| Additional paid-in capital | 509,348 | 510,448 | ||||
| Accumulated deficit | (1,730,665 | ) | (1,733,633 | ) | ||
| Accumulated other comprehensive income | 74,030 | 179,855 | ||||
| Total Stockholders' Equity | (1,142,188 | ) | (1,039,331 | ) | ||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,057,000 | $ | 484,153 | ||
Vitaxel Group Limited
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS
(In U.S. dollars)
(Unaudited)
| For the period ended | ||||||
| March 31, | ||||||
| 2016 | 2015 | |||||
| REVENUE | $ | 860,240 | $ | 534,917 | ||
| COST OF REVENUE | 555,088 | 420,330 | ||||
| GROSS PROFIT | 305,152 | 114,587 | ||||
| OPERATING EXPENSES | ||||||
| Selling expenses | (867 | ) | (5,686 | ) | ||
| General and administrative expenses | (357,754 | ) | (105,505 | ) | ||
| Total Operating Expenses | (358,621 | ) | (111,191 | ) | ||
| (LOSS)/INCOME FROM OPERATIONS | (53,469 | ) | 3,396 | |||
| OTHER INCOME/(EXPENSE), NET | ||||||
| Other Income | 56,750 | - | ||||
| Other Expense | (313 | ) | (887 | ) | ||
| Total Other Income/(Expense), net | 56,437 | (887 | ) | |||
| NET INCOME BEFORE TAXES | 2,968 | 2,509 | ||||
| Income tax expense | - | - | ||||
| NET INCOME | 2,968 | 2,509 | ||||
| OTHER COMPREHENSIVE LOSS)/INCOME | ||||||
| Foreign currency translation gain/(loss) | (105,825 | ) | 181,266 | |||
| TOTAL COMPREHENSIVE (LOSS)/INCOME | $ | (102,857 | ) | $ | 183,775 | |
Vitaxel Group Limited
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In U.S. dollars)
(Unaudited)
| For the Period Ended March 31, | ||||||
| 2016 | 2015 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| Net income/(loss) | $ | 2,968 | $ | 2,509 | ||
| Adjustments to reconcile net loss to cash used in operating activities: | ||||||
| Depreciation – property, plant and equipment | 5,000 | 887 | ||||
| Accounts receivable | ||||||
| Prepayment | (1,230 | ) | - | |||
| Other receivables and other assets | (8,339 | ) | (163,171 | ) | ||
| Inventories | (11,783 | ) | 11,046 | |||
| Trade creditor | - | (36,078 | ) | |||
| Commission payables | 124,293 | - | ||||
| Other payables and accrued expenses | 298,675 | 331,610 | ||||
| Tax payable | 24,298 | - | ||||
| Net cash generated from operating activities | 433,882 | 146,803 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
| Purchase of property, plant and equipment | (93,048 | ) | (7,039 | ) | ||
| Net cash used in investing activities | (93,048 | ) | (7,039 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Proceeds /(Repayments to) from directors | 25,641 | (11,131 | ) | |||
| Proceeds from related parties | 202,797 | - | ||||
| Repayments to from stockholders | - | (85,614 | ) | |||
| Net cash provided by (used in) financing activities | 228,438 | (96,745 | ) | |||
| EFFECT OF EXCHANGE RATES ON CASH | (105,825 | ) | (6,528 | ) | ||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 463,447 | 36,491 | ||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 303,794 | 29,224 | ||||
| CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 767,241 | $ | 65,715 | ||
| SUPPLEMENTAL OF CASH FLOW INFORMATION | ||||||
| Cash paid for interest expenses | $ | - | $ | - | ||
| Cash paid for income tax | $ | - | $ | - | ||