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Vitaxel Group Reports Second Quarter 2016 Financial Results
August 17, 2016 9:00 AM EDT | Source: Vitaxel Group Limited
Kuala Lumpur, Malaysia--(Newsfile Corp. - August 17, 2016) - Vitaxel Group Limited (OTCQB: VXEL) (the "Company" or "Vitaxel"), announced its financial results for the second quarter ended June 30, 2016.
Second Quarter Highlights:
- Total revenues for the second quarter of 2016 was $435,030, a 21.3 decrease from $552,779 for the same period of last year
- Gross profit was $78,809, an increase of 43.8% compared to the same period of last year
- Growth margin increased significantly to 18.1% in the second quarter of 2016 from 9.9% in the same period of 2015
Ryan Leong, CEO of Vitaxel commented, "We had a challenging second quarter due to the weak GDP growth in Asia. However, from our perspective, we are satisfied with the results of Q2, especially our effort in reducing the cost to achieve over 40% growth in gross profit despite less revenue recorded in Q2. We are excited to continuously expand our international market to grow membership as well as enhance Vitaxel brand name in other regions. Recently, we signed a 3-year License Agreements with Vitaxel Private Limited, a Taiwan entity, and Vitaxel Corp Ltd, a Thailand entity to access the consumers in these two regions. We expect that more international opportunities will arise as the Company offers more products and comprehensive services to members' lifestyle."
"We are also proudly announce Vitaxel through its subsidiary Vitaxel SDN BHD donated to Rohnigya Refugee School (a UNHCR - United Nation High Commissioner of Refugees - registered school) in Malaysia to help provide an education for refugee children. Making a positive contribution to society is Vitaxel's goal in addition to maximizing shareholders' value via business execution excellence." Mr.Leong concluded.
About Vitaxel Group Limited
Vitaxel Group Limited is a market leader in MLM and e-commerce space, has over 5,000 distributors in 16 countries in Asia. With 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 primarily engaged in the direct selling industry utilizing a multi-level 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:
Vitaxel Group Limited
Email: info@vitaxel.com
Phone: 03-2143 2889
- Financial Tables Below -
Vitaxel Group Limited
CONSOLILDATED BALANCE SHEETS
As of June 30, 2016 and December 31,2015
(In U.S. dollars)
| As of June 30, | As of December 31, | |||||
| 2016 | 2015 | |||||
| (Unaudited) | ||||||
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents | $ | 210,825 | $ | 303,794 | ||
| Prepayment | - | 12,308 | ||||
| Deferred tax asset | 8,124 | - | ||||
| Inventories | 33,060 | 9,870 | ||||
| Other receivables and other assets | 31,875 | 53,324 | ||||
| Total Current Assets | 283,884 | 379,296 | ||||
| NON-CURRENT ASSETS | ||||||
| Property, plant and equipment, net | 208,509 | 104,857 | ||||
| Total Non-Current Assets | ||||||
| TOTAL ASSETS | $ | 492,393 | $ | 484,153 | ||
| CURRENT LIABILITIES | ||||||
| Amounts due to a related party | $ | 665,074 | $ | 233,100 | ||
| Amounts due to a director | 24,845 | - | ||||
| Commission payables | 351,969 | 537,655 | ||||
| Accounts payable | 2,109 | - | ||||
| Accruals and other payables | 1,031,916 | 735,143 | ||||
| Tax payable | 8,865 | 17,586 | ||||
| Total Current Liabilities | 2,084,777 | 1,523,484 | ||||
| NON-CURRENT LIABILITY | ||||||
| Deferred tax liability | 8,124 | - | ||||
| TOTAL LIABILITIES | 2,092,902 | 1,523,484 | ||||
| Commitments and Contingencies | ||||||
| STOCKHOLDERS' EQUITY | ||||||
| Common stock par value $0.000001: | ||||||
| 7,000,000,000 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 | (2,219,975 | ) | (1,733,633 | ) | ||
| Accumulated other comprehensive income | 105,019 | 179,855 | ||||
| Total Stockholders' Equity | (1,600,509 | ) | (1,039,331 | ) | ||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 492,393 | $ | 484,153 |
Vitaxel Group Limited
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS
(In U.S. dollars)
(Unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||
| REVENUE | $ | 435,030 | $ | 552,779 | $ | 1,294,912 | $ | 1,087,696 | ||||
| COST OF REVENUE | (356,221 | ) | (497,980 | ) | (911,309 | ) | (918,310 | ) | ||||
| GROSS PROFIT | 78,809 | 54,799 | 383,603 | 169,386 | ||||||||
| OPERATING EXPENSES | | | | | ||||||||
| Selling expense | (648 | ) | - | (1,515 | ) | (1,724 | ) | |||||
| General and administrative expenses | (572,549 | ) | (194,731 | ) | (930,303 | ) | (304,198 | ) | ||||
| Total Operating Expenses | (573,197 | ) | (194,731 | ) | (931,818 | ) | (305,922 | ) | ||||
| (LOSS)/INCOME FROM OPERATIONS | (494,388 | ) | (139,932 | ) | (548,215 | ) | (136,536 | ) | ||||
| OTHER INCOME/(EXPENSE), NET | | | | | ||||||||
| Other Income | 14,879 | - | 71,629 | 38 | ||||||||
| Other Expense | (9,443 | ) | (86,066 | ) | (9,756 | ) | (86,991 | ) | ||||
| Total Other Income / (Expense), net | 5,436 | (86,066 | ) | 61,873 | (86,953 | ) | ||||||
| NET LOSS BEFORE TAXES | (488,952 | ) | (225,998 | ) | (486,342 | ) | (223,489 | ) | ||||
| Income tax expense | - | - | - | - | ||||||||
| Net loss | $ | (488,952 | ) | $ | (225,998 | ) | $ | (486,342 | ) | $ | (223,489 | ) |
| OTHER COMPREHENSIVE INCOME/(LOSS) | | | | | ||||||||
| Foreign currency translation adjustment | 31,577 | - | (74,248 | ) | - | |||||||
| TOTAL COMPREHENSIVE LOSS | $ | (457,375 | ) | $ | (225,998 | ) | $ | (560,590 | ) | $ | (223,489 | ) |
Vitaxel Group Limited
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In U.S. dollars)
(Unaudited)
| For the Period Ended June 30, | ||||||
| 2016 | 2015 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | | | ||||
| Net loss | $ | (486,342 | ) | $ | (223,489 | ) |
| Adjustments to reconcile net loss to cash used in operating activities: | | | ||||
| Depreciation - property, plant and equipment | 9,784 | 1,894 | ||||
| Prepayment | 12,308 | 518,048 | ||||
| Other receivables and other assets | 21,449 | 14,097 | ||||
| Deferred tax asset | (8,124 | ) | - | |||
| Inventories | (23,190 | ) | 10,605 | |||
| Trade creditor | 2,109 | - | ||||
| Commission payables | (185,686 | ) | - | |||
| Other payables and accrued expenses | 296,773 | - | ||||
| GST on payment | - | (90 | ) | |||
| Deferred tax liability | 8,124 | - | ||||
| Tax payable | (8,721 | ) | 10,732 | |||
| Net cash (used in) provided by operating activities | (361,516 | ) | 331,797 | |||
| CASH FLOWS FROM INVESTING ACTIVITIES | | | ||||
| Purchase of property, plant and equipment | (105,543 | ) | (19,734 | ) | ||
| Net cash used in investing activities | (105,543 | ) | (19,734 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | | | ||||
| Proceeds from directors | 24,845 | - | ||||
| (Decrease) in amount due to holding company | - | (54,785 | ) | |||
| Proceeds from related parties | 431,974 | - | ||||
| Net cash provided by (used in) financing activities | 456,819 | (54,785 | ) | |||
| EFFECT OF EXCHANGE RATES ON CASH | (82,728 | ) | - | |||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (92,969 | ) | 257,278 | |||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 303,794 | 28,056 | ||||
| CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 210,825 | 285,334 | |||
| SUPPLEMENTAL OF CASH FLOW INFORMATION | | | ||||
| Cash paid for interest expenses | $ | - | - | |||
| Cash paid for income tax | $ | - | $ | - | ||