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Value Exchange International, Inc. Announces for First Quarter 2021:


HONG KONG–()–Value Exchange International, Inc. (OTCQB: VEII), a provider of information technology services for businesses in China, Hong Kong, Singapore and Manila, today announced improving select financial results for the first quarter of 2021. All financial numbers are in U.S. dollars.

First Quarter 2021 Highlights:

· Gross profit of $737,540 or 33.5% of net revenues, an increase of $249,384 or 51.1%. over first quarter 2020;

· Income from operations totaled $305,381, an increase of $251,895 or 471.0% over first quarter 2020;

· Net income of $376,611, an increase of $240,143 or 176.0% over first quarter 2020; and

· Basic and diluted net income per share was $0.01 for the three months ended March 31, 2021.

Chief Executive Officer Kenneth Tan said, “Our company continues to make progress in improving key financial results. With the recent investment by GigWorld, Inc., a public company affiliated with entrepreneur Heng Fai Ambrose Chan, in our company, we are exploring ways to expand strategic relationships as part of our ongoing efforts to improve our business and financial performance as well as expand our information technology offerings and geographic markets. The previously announced beta test for smart vending machines in a major Chinese gas service station chain is another example of our efforts to expand our customer base and service-product offerings.”

Financial Summary

  • Net revenue: Our net revenues were $2,203,772 for first quarter 2021, as compared to $8,202,911 for the same period in 2020, a decrease of $5,999,139 or 73.1%. This decrease was due in part to the Company focusing on higher profit work and not the pursuit of lower profit work that increased gross revenues without providing higher net revenues as well as the usual and customary fluctuations in customer demand for Company services. The Company is seeking to grow both its gross and net revenues, but with the emphasis on seeking higher profit margin work.
  • Gross profit: Gross profit for first quarter 2021 was $737,540 or 33.5% of net revenues, as compared to $488,156 or 6.0% of net revenues for the same period in 2020, an increase of $249,384 or 51.1%.
  • Income from operations: Our income from operations totaled $305,381 for first quarter 2021, as compared to $53,486 for the same period in 2020, an increase of $251,895 or 471.0%.
  • Net income: We had a net income of $376,611 for the first quarter of 2021, compared to $136,468 for the same period in 2020, an increase of $240,143 or 176.0%.
  • Basic and diluted net income per share was $0.01 for first quarter of 2021.
  • Key Financial Ratios:

March 31, 2021

 

December 31, 2020

Current ratio

1.31

 

1.14

Acid-test ratio

1.22

 

1.05

Debt ratio

0.64

 

0.71

Other News:

Conference Calls. We intend to commence web cast and conference calls to discuss quarterly and annual financial results with the second quarter financial results in 2021.

Dividend Payment Date. Expected Date for payment of previously announced and Company’s first payment of a cash dividend ($0.005 per share of Common Stock for record holders of Common Stock as of April 16, 2021) has been moved from an expected date of May 15, 2021, to the latter half of June 2021, due to the need to engage a new payment agent capable of handling the distribution of the cash dividend and related administrative requirements associated with the new payment agent. The expected new date for payment of the cash dividend will be announced as soon as arrangements with the payment agent have been finalized.

About Value Exchange: Company is a U.S. public holding company headquartered in Hong Kong, with offices in Shenzhen, Guangzhou, Shanghai, and Beijing China, Manila and Kuala Lumpur. Company provides integrating, market-leading Point-of-Sale/Point-of-Interaction (POS/POI), Merchandising, CRM & Reward, Locational Based (GPS & Indoor Positioning System (IPS)) Marketing, Customer Analytics, and Business Intelligence solutions. Company’s retail POS solutions process tens of millions of transactions per year at approximately 20,000 retail outlets in Asia.

Forward-looking Statements: This press release may contain forward-looking statements regarding Value Exchange International, Inc. (the “Company”) within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are “forward-looking statements” including statements regarding: the likelihood that the Company will continue to deliver and financially benefit from its core information technology services business; the financial outlook of the Company; the general ability of the Company to achieve its commercial objectives, including the focus on higher profit work; the business strategy, plans and objectives of the Company and its subsidiaries, including its ability to mitigate the future impact of COVID-19 pandemic and any future mutations of the COVID-19 coronavirus on the Company’s business operations; ability of Company to find affordable, adequate funding for expansion of Company’s business and markets; ability of Company to properly manage and integrate any future acquisitions or manage any expanded operations; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects,” “hopes,” “anticipates,” “seeks,” “should,” “could,” “intends,” or “projects” or similar and variant expressions, and involve known and unknown risks and uncertainties. These statements are based upon the Company’s current expectations and speak only as of the date hereof. Financial performance in one period does not necessarily mean continued or better performance in the future. The Company’s actual results in any endeavor may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, which factors or uncertainties may be beyond our ability to foresee or control. Other risk factors include the status of the Company’s common stock as a “penny stock” and those listed in other reports posted on The OTC Markets Group, Inc. website and filed with the Securities and Exchange Commission.

VALUE EXCHANGE INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

 

 

March 31,

 

December 20,

 

 

2021

 

2020

 

 

US$

 

US$

ASSETS

 

(unaudited)

 

 

CURRENT ASSETS

 

 

 

 

  Cash

 

253,533

 

523,337

  Accounts receivable, less allowance for doubtful accounts

 

1,285,191

 

599,436

  Amounts due from a related party

 

1,254,587

 

1,343,466

  Other receivables and prepayments

 

412,357

 

414,342

  Inventories

 

244,547

 

238,147

Total current assets

 

3,450,215

 

3,118,728

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

  Plant and equipment, net

 

318,250

 

357,021

  Deferred tax assets

 

52,033

 

71,681

  Goodwill

 

206,812

 

206,812

  Operating lease right-of-use assets, net

 

550,846

 

585,057

Total non-current assets

 

1,127,941

 

1,220,571

 

 

 

 

 

Total assets

 

4,578,156

 

4,339,299

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

  Accounts payable

 

572,788

 

1,038,518

  Other payables and accrued liabilities

 

680,117

 

831,817

  Deferred income

 

815,532

 

254,937

  Amounts due to related parties

 

215,893

 

263,063

  Operating lease liabilities, current

 

301,611

 

303,687

  Short term bank loan

 

39,342

 

38,874

Total current liabilities

 

2,625,283

 

2,730,896

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

  Long term bank loan

 

52,613

 

62,949

  Operating lease liabilities, non-current

 

242,491

 

277,111

  Total non-current liabilities

 

295,104

 

340,060

 

 

 

 

 

Total liabilities

 

2,920,387

 

3,070,956

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

  Preferred stock, 100,000,000 shares authorized, $0.00001 par value;

  no shares issued and outstanding

 

 

  Common stock, 100,000,000 shares authorized, $0.00001 par value;

  29,656,130 and 29,656,130 shares issued and outstanding, respectively

 

297

 

297

 

 

 

 

 

  Additional paid-in capital

 

690,589

 

690,589

  Statutory reserves

 

11,835

 

11,835

  Retained earnings

 

790,078

 

414,225

  Accumulated other comprehensive losses

 

92,509

 

97,944

Total shareholders’ equity

 

1,585,308

 

1,214,890

  Non-controlling interest

 

72,461

 

53,453

 

 

1,657,769

 

1,268,343

 

 

 

 

 

Total liabilities and shareholders’ equity

 

4,578,156

 

4,339,299

VALUE EXCHANGE INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

 

 

Three Months

Ended

March 31,

2021

 

Three Months

Ended

March 31,

2020

 

 

US$

 

US$

 

 

(unaudited)

 

(unaudited)

NET REVENUES

 

 

 

 

  Service income

 

2,203,772

 

8,202,911

 

 

 

 

 

COST OF SERVICES

 

 

 

 

  Cost of service income

 

(1,466,232)

 

(7,714,755)

 

 

 

 

 

GROSS PROFIT

 

737,540

 

488,156

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

  General and administrative expenses

 

(434,878)

 

(438,891)

  Foreign exchange loss

 

2,719

 

4,221

TOTAL OPERATING EXPENSES

 

(432,159)

 

(434,670)

 

 

 

 

 

PROFIT FROM OPERATIONS

 

305,381

 

53,486

 

 

 

 

 

OTHER INCOME (EXPENSES):

 

 

 

 

  Interest income

 

165

 

115

  Finance cost

 

(4,308)

 

(3,505)

VAT refund

 

2,213

 

43,942

  Management fee income

 

46,326

 

7,547

  Others

 

30,731

 

28,745

Total other income (expenses), net

 

75,127

 

76,844

 

 

 

 

 

PROFIT BEFORE PROVISION FOR INCOME TAXES

 

380,508

 

130,330

 

 

 

 

 

INCOME TAXES (EXPENSES) CREDIT

 

(3,897)

 

6,138

NET PROFIT

 

376,611

 

136,468

 

 

 

 

 

OTHER COMPREHENSIVE INCOME:

 

 

 

 

  Foreign currency translation adjustment

 

(5,435)

 

(14,755)

 

 

 

 

 

COMPREHENSIVE INCOME

 

371,176

 

121,713

 

 

 

 

 

ATTRIBUTABLE TO:

 

 

 

 

  Equity holders of the Company

 

370,418

 

125,512

  Non-controlling interests

 

758

 

(3,799)

 

 

 

 

 

 

 

371,176

 

121,713

 

 

 

 

 

Earnings per share, basic and diluted

 

0.01

 

0.00

 

 

 

 

 

Weighted average number of shares outstanding

 

29,656,130

 

29,656,130

 

 

 

 

 

VALUE EXCHANGE INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

Three Months

Ended

March 31,

2021

 

Three Months

Ended

March 31,

2020

 

 

US$

 

US$

 

 

(unaudited)

 

(unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net profit

 

376,611

 

136,468

Adjustments to reconcile net profit to cash (used in) provided by operating activities:

 

 

 

 

  Depreciation

 

33,663

 

38,770

  Amortization

 

90,515

 

99,613

  Interest income

 

(165)

 

(115)

  Finance costs on Right-of-use assets

 

4,308

 

  Deferred income taxes

 

19,648

 

2,136

Changes in operating assets and liabilities

 

 

 

 

  Accounts receivable

 

(685,755)

 

206,673

  Other receivables and prepayments

 

1,985

 

16,225

  Amounts due from related parties

 

88,879

 

(894,440)

  Inventories

 

(6,400)

 

(2,524)

  Accounts payable

 

(465,730)

 

830,190

  Other payables and accrued liabilities

 

(151,700)

 

(62,616)

  Deferred income

 

560,595

 

(9,150)

  Amounts due to related parties

 

(47,170)

 

  Net cash (used in) provided by operating activities

 

(180,716)

 

361,230

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

  Purchase of plant and equipment

 

(2,916)

 

(1,824)

  Interest received

 

165

 

115

Net cash used in investing activities

 

(2,751)

 

(1,709)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

  Proceeds from non-controlling interests

 

18,600

 

7,012

  Principal payments on operating leases

 

(89,368)

 

(3,505)

  Repayment of bank loan

 

(9,544)

 

Net cash (used in) provided by financing activities

 

(80,312)

 

3,507

 

 

 

 

 

EFFECT OF EXCHANGE RATE ON CASH

 

(6,025)

 

(116,256)

(DECREASE) INCREASE IN CASH

 

(269,804)

 

246,772

CASH, beginning of period

 

523,337

 

234,089

CASH, end of period

 

253,533

 

480,861

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

 

 

 

 

  Cash (paid) refund for income taxes

 

(3,897)

 

6,138

 



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