Press Release For

Immediate Release

 

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

 

·51% increase in Gross Profit;

·471% Increase in Income from Operations; and

·176% increase in Net Income.

 

Hong Kong, (May 21, 2021) – 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

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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.

 

Contact:

Value Exchange IR Contact:

Johan Pehrson

Email: ir@value-exch.com

www.value-exch.com

(852) 2950 4288

 

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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

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VALUE EXCHANGE INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

 

		Three Months		Three Months
		Ended		Ended
		March 31,		March 31,
		2021		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
Weighted average number of shares outstanding		29,656,130		29,656,130

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VALUE EXCHANGE INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

		Three Months		Three Months
		Ended		Ended
		March 31,		March 31,
		2021		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