普普文化董事长及首席执行黄卓勤先生表示：“尽管新冠疫情对我们的部分业务造成了短期的影响，但2021财年我们仍保持了强劲的上升趋势。我们在 2021 财年的收入为2,550 万美元，较2020财年的1,570万美元同比增长了63%。作为一家从事嘻哈潮流业务的上市公司，我们的知识产权内容（‘IP内容’）是我们财务快速增长的关键驱动力。我们在2021财年的活动主办收入为 1,500万美元，较2020财年的760万美元同比增长96%。同时，归属于公司股东的净利润为430万美元，较2020财年的240万美元增长了75%。我们在2021财年的毛利率和营业利润率分别为28%和23%，较2020财年的29%和20%相比趋于平稳。”Revenue increased by 63% compared with the same period last year.
Net profit attributable to the company's shareholders increased by 75% compared with the same period last year.
Xiamen, November 10 / PRNewswire-Asianet /-- Chinese hip-hop company POP CULTURE GROUP CO LTD Group Co., Ltd. ("POP CULTURE GROUP CO LTD" or "the Company") (NASDAQ: CPOP) today announced its results for fiscal year 2021 ended June 30, 2021.
Mr. Huang Zhuoqin, Chairman and Chief Executive Officer of POP CULTURE GROUP CO LTD, said: "although the COVID-19 epidemic has had a short-term impact on some of our business, we have maintained a strong upward trend in fiscal year 2021. Our revenue in fiscal 2021 was $25.5 million, up 63% from $15.7 million in fiscal 2020. As a listed company engaged in hip-hop trend business, our intellectual property content ('IP content') is a key driver of our rapid financial growth. Our event hosting revenue in fiscal 2021 was $15 million, up 96% from $7.6 million in fiscal 2020. At the same time, net profit attributable to the company's shareholders was $4.3 million, up 75 per cent from $2.4 million in fiscal 2020. Our gross margin and operating margin in fiscal 2021 were 28% and 23%, respectively, compared with 29% and 20% in fiscal 2020. "
Mr. Huang continued, "We are very pleased to see POP CULTURE GROUP CO LTD achieved such excellent results in fiscal year 2021, and we are also very grateful to our customers and partners for their recognition and support. In the future, we will continue to focus on Chinese trend cultural content operation and cultural promotion. POP CULTURE GROUP CO LTD has determined the new five-year strategic policy, that is, the company will continue to take'IP content'as its business core, make use of big data's and capital market advantages, and strive to achieve sustained and rapid growth among the three major business groups, with the goal of becoming a leader in the industry. "
Fiscal year ended June 30 | |||||
(except for earnings per share, the other amounts are millions of US dollars) | 2021 | 2020 | % percentage change | ||
Income | 25.5 | 15.7 | 63% | ||
Event host | 15.0 | 7.6 | 96% | ||
Event planning and execution | 9.2 | 5.5 | 67% | ||
Brand promotion | 0.8 | 2.2 | -67% | ||
Other services | 0.6 | 0.3 | 87% | ||
Gross profit | 7.2 | 4.5 | 59% | ||
Gross profit margin | 28% | 29% | -1ppp * | ||
Operating profit | 5.8 | 3.2 | 84% | ||
Operating profit margin | 23% | 20% | 3ppp * | ||
Net profit | 4.3 | 2.6 | 63% | ||
Net profit attributable to shareholders of the company | 4.3 | 2.4 | 75% | ||
Earnings per share | 0.25 | 0.16 | 56% | ||
* Note: pp stands for percentage points | |||||
2021Financial highlights of the fiscal year
- Revenue was $25.5 million, up 63 per cent from $15.7 million in fiscal 2020.
- Gross profit was $7.2 million, up 59 per cent from $4.5 million in fiscal 2020.
- The gross profit margin is 28%. The fiscal year 2020 is 29%.
- Net profit attributable to shareholders was $4.3 million, up 75 per cent from $2.4 million in fiscal 2020.
- Basic and diluted earnings per share were $0.25, compared with $0.16 in fiscal year 2020.
2021Highlights of operation in the fiscal year
- In fiscal year 2021, the company held 35 dance competitions, 29 music festivals and promotions, and 4 online hip-hop shows.
- In fiscal year 2021, the company was responsible for implementing 60 activities.
- In fiscal year 2021, the company's hip-hop events attracted 159200 viewers and online hip-hop shows were viewed more than 314 million times.
2021Financial results for the fiscal year
Income
Revenue for fiscal 2021 was $25.5 million, up $9.8 million from $15.7 million in fiscal 2020, or 63% year-on-year.
Revenue from hosting events in fiscal year 2021 was $15 million, an increase of $7.4 million from $7.6 million in fiscal year 2020, and a year-on-year increase of 96 per cent. Mainly due to the increase in the number of company live events (dance competitions, music festivals and promotions) and the increase in average sponsorship fees, as well as additional revenue from the new online hip-hop business, this has attracted more sponsors to promote their brands in online hip-hop videos.
Revenue from event planning and execution in fiscal year 2021 was $9.2 million, up $3.7 million from $5.5 million in fiscal year 2020, or 67 per cent year-on-year. It is mainly due to the increase in the number and scale of activities undertaken by the company.
Brand promotion revenue in fiscal 2021 was $800000, down $1.4 million from $2.2 million in fiscal 2020 and 67 per cent year-on-year. This is mainly due to low demand for advertising or marketing activities.
Revenue from other services in fiscal 2021 was $600000, up $300000 from $300000 in fiscal 2020, and an 87% increase over the same period last year.
Income cost
Revenue and cost in fiscal year 2021 was $18.3 million, an increase of $7.1 million from $11.2 million in fiscal year 2020, or 64% year-on-year growth. The increase in revenue cost is proportional to the increase in revenue.
Gross profit and gross profit margin
Gross profit for fiscal 2021 was $7.2 million, up $2.7 million from $4.5 million in fiscal 2020, or 59 per cent year-on-year. Gross profit margin in fiscal 2021 was 28%, down 1 percentage point from 29% in fiscal 2020, mainly due to a decline in brand promotion with higher gross margins.
Operating expenses
Operating expenses for fiscal 2021 were $1392137, a slight increase of $25051 and 2 per cent year-on-year compared to $1367086 in fiscal 2020.
Sales expenses for fiscal 2021 were $133387, an increase of $23255, or 21 percent, from $110132 in fiscal 2020. This is mainly due to an increase of $20880 in advertising expenses to promote the development of the company's online business.
Administrative expenses for fiscal 2021 were $1258750, an increase of $1796 from $1256954 in fiscal 2020. This is mainly due to a slight increase in various items, including staff salaries and business hospitality expenses.
Income tax expense
Income tax expenses for fiscal years 2021 and 2020 were $1.4 million and $500000, respectively. This is mainly due to the increase in taxable income for the 2021 fiscal year ended June 30, 2021.
Net profit
Net profit for fiscal 2021 was $4.3 million, up 63 per cent from $2.6 million in fiscal 2020. Net profit attributable to shareholders in fiscal 2021 was $4.3 million, up 75 per cent from $2.4 million in fiscal 2020.
Basic and diluted earnings per share
Basic and diluted earnings per share were $0.25 for fiscal 2021 and $0.16 per share for fiscal 2020.
Cash flow
Net cash outflows from operating activities were $4 million in fiscal 2021 and $2.6 million in fiscal 2020. There was no investment activity in fiscal year 2021, and net cash inflows from investment activities in fiscal year 2020 were $3261. Net cash inflows from financial activities were $4 million in fiscal year 2021 and $3.3 million in fiscal year 2020.
Balance sheet
As of June 30, 2021, the company had $1.3 million in cash and $1.4 million as of June 30, 2020.
About POP CULTURE GROUP CO LTD Group Co., Ltd.
POP CULTURE GROUP CO LTD Group Co., Ltd. is headquartered in Xiamen, China, is a hip-hop trend company. The company is committed to promoting the hip-hop trend and its values of love, peace, unity, respect and joy, and promoting hip-hop cultural exchanges between China and the United States. With hip-hop cultural values as the core and the younger generation as the main target audience, the company organizes entertainment activities, operates hip-hop-related online programs, and provides event planning and execution services as well as marketing services for corporate customers. In recent years, the company has focused on developing and organizing its own hip-hop activities. For more information, please visit the company's website at http://ir.popinter.cn/.
Forward-looking statement
Some of the statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, including the further spread of novel coronavirus or his new variants, or the occurrence of another wave of cases and its possible impact on the Company's operations and needs, and based on current expectations and projections of future events and financial trends that the Company believes may affect its financial position, results of operations, business strategy and financial needs. Investors can use methods such as“Maybe.”、“将”、“Expectation”、“target”、“Estimation”、“Intend”、“plan”、“Potential”、“Go ahead”、“是”、“It might.”、“Believe”To identify these forward-looking statements. Except as required by law, the Company undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances or their expected changes. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that these expectations will be correct, and the Company reminds investors that actual results may differ materially from expected results, investors are encouraged to review other factors that may affect its future performance in the company's registration statement and other filings with the Securities and Exchange Commission.
For more information, please contact us.:
POP CULTURE GROUP CO LTD
Investor relations
Mailbox: ir@520pop.com
Eisende investor relations
Tina Xiao
President
Tel: 917609 0333
Mailbox: tina.xiao@ascent-ir.com
POP CULTURE GROUP CO., LTD | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(In dollars, except share data) | ||||||||
As of June 30 | ||||||||
2020 | 2021 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 1,359,137 | $ | 1,319,977 | ||||
Accounts receivable, net | 14,810,146 | 25,537,236 | ||||||
Advance to suppliers | 3,176,527 | 1,999,876 | ||||||
Prepaid expenses and other current assets | 1,177,947 | 3,553,028 | ||||||
TOTAL CURRENT ASSETS | 20,523,757 | 32,410,117 | ||||||
Property and equipment, net | 71,281 | 48,393 | ||||||
Intangible asset, net | 1,695,215 | 1,635,321 | ||||||
Operating right-of-use asset | 278,260 | 194,747 | ||||||
Deferred tax assets | 83,795 | 140,757 | ||||||
Other non-current assets | 251,464 | - | ||||||
TOTAL ASSETS | $ | 22,903,772 | $ | 34,429,335 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term bank loans | $ | 1,838,833 | $ | 5,140,990 | ||||
Accounts payable | 2,795,508 | 1,900,883 | ||||||
Deferred revenue | 1,764,608 | 1,648,847 | ||||||
Taxes payable | 2,374,093 | 4,232,391 | ||||||
Due to a related party | - | 225,000 | ||||||
Accrued liabilities and other payables | 119,573 | 77,567 | ||||||
Operating lease liability - current | 96,357 | 98,427 | ||||||
TOTAL CURRENT LIABILITIES | 8,988,972 | 13,324,105 | ||||||
Long-term bank loans | - | 1,672,370 | ||||||
Operating lease liability - non-current | 189,994 | 104,755 | ||||||
TOTAL LIABILITIES | 9,178,966 | 15,101,230 | ||||||
Commitments and contingencies | ||||||||
SHAREHOLDERS’ EQUITY | ||||||||
Ordinary shares (par value $0.001 per share; 44,000,000 Class A ordinary shares authorized as of June 30, 2020 and 2021; 11,021,834 and 12,086,923 Class A ordinary shares issued and outstanding as of June 30, 2020 and 2021, respectively; 6,000,000 Class B ordinary shares authorized, 5,763,077 Class B ordinary shares issued and outstanding as of June 30 2020 and 2021, respectively) * | 16,785 | 17,850 | ||||||
Subscription receivable | (15,441) | (15,441) | ||||||
Additional paid-in capital | 5,813,745 | 6,643,118 | ||||||
Statutory reserve | 779,094 | 1,241,573 | ||||||
Retained earnings | 6,693,120 | 10,498,183 | ||||||
Accumulated other comprehensive (loss) income | (367,581) | 942,822 | ||||||
TOTAL POP CULTURE GROUP CO., LTD SHAREHOLDERS’ EQUITY | 12,919,722 | 19,328,105 | ||||||
Non-controlling interests | 805,084 | - | ||||||
TOTAL SHAREHOLDERS’ EQUITY | 13,724,806 | 19,328,105 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 22,903,772 | $ | 34,429,335 | ||||
POP CULTURE GROUP CO., LTD | ||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||
(In U.S. dollars, except share data) | ||||||||||||
For the years ended June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
REVENUE, NET | $ | 19,031,766 | $ | 15,688,080 | $ | 25,526,557 | ||||||
Cost of revenue | 13,158,537 | 11,158,847 | 18,302,494 | |||||||||
GROSS PROFIT | 5,873,229 | 4,529,233 | 7,224,063 | |||||||||
Selling and marketing | 133,332 | 110,132 | 133,387 | |||||||||
General and administrative | 492,733 | 1,256,954 | 1,258,750 | |||||||||
Total operating expenses | 626,065 | 1,367,086 | 1,392,137 | |||||||||
INCOME FROM OPERATIONS | 5,247,164 | 3,162,147 | 5,831,926 | |||||||||
Other (expenses) income: | ||||||||||||
Interest expenses, net | (123,833) | (125,560) | (243,458) | |||||||||
Other (expenses) income, net | (2,591) | 46,235 | 95,946 | |||||||||
Total other expenses, net | (126,424) | (79,325) | (147,512) | |||||||||
INCOME BEFORE INCOME TAX PROVISION | 5,120,740 | 3,082,822 | 5,684,414 | |||||||||
PROVISION FOR INCOME TAXES | 1,288,982 | 457,005 | 1,416,872 | |||||||||
NET INCOME | 3,831,758 | 2,625,817 | 4,267,542 | |||||||||
Less: net income attributable to non-controlling interests | 247,244 | 189,996 | - | |||||||||
NET INCOME ATTRIBUTABLE TO POP CULTURE GROUP CO., LTD SHAREHOLDERS | 3,584,514 | 2,435,821 | 4,267,542 | |||||||||
Other comprehensive (loss) income: | ||||||||||||
Foreign currency translation adjustment | (162,850) | (241,839) | 1,335,757 | |||||||||
COMPREHENSIVE INCOME | 3,668,908 | 2,383,978 | 5,603,299 | |||||||||
Less: comprehensive income attributable to non-controlling interest | 236,737 | 174,392 | - | |||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO POP CULTURE GROUP CO., LTD SHAREHOLDERS | $ | 3,432,171 | $ | 2,209,586 | $ | 5,603,299 | ||||||
Net income per share | ||||||||||||
Basic and diluted | $ | 0.27 | $ | 0.16 | $ | 0.25 | ||||||
Weighted average shares used in calculating net income per share * | ||||||||||||
Basic and diluted | 13,425,911 | 14,881,478 | 17,228,698 | |||||||||
POP CULTURE GROUP CO., LTD | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(In U.S. dollars) | ||||||||||||
For the years ended June 30, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net Income | $ | 3,831,758 | $ | 2,625,817 | $ | 4,267,542 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Allowance for doubtful accounts | 24,227 | 324,345 | 195,187 | |||||||||
Depreciation and amortization | 159,352 | 233,353 | 243,905 | |||||||||
Deferred tax benefit | (8,053) | (84,246) | (47,802) | |||||||||
Non-cash lease expense | 86,047 | 89,977 | 107,139 | |||||||||
Loss from disposal of property and equipment | 21,596 | 19,300 | - | |||||||||
Changes in assets and liabilities: | ||||||||||||
Accounts receivable | (6,123,120) | (5,672,992) | (9,259,862) | |||||||||
Advance to suppliers | (630,184) | (2,531,334) | 1,440,794 | |||||||||
Amounts due from related parties | (158,279) | 153,586 | - | |||||||||
Prepaid expenses and other current assets | 395,198 | (44,002) | (1,504,345) | |||||||||
Other non-current assets | - | (252,816) | 268,433 | |||||||||
Accounts payable | 2,166,329 | 49,588 | (1,130,593) | |||||||||
Deferred revenue | (247,929) | 1,762,730 | (275,888) | |||||||||
Taxes payable | 1,376,248 | 721,743 | 1,592,715 | |||||||||
Accrued liabilities and other payables | 14,057 | 54,234 | (52,007) | |||||||||
Due to a related party | - | - | 225,000 | |||||||||
Operating lease liability | (86,047) | (54,112) | (107,550) | |||||||||
Net cash provided by (used in) operating activities | 821,200 | (2,604,829) | (4,037,332) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Purchase of property and equipment | (11,436) | (1,716) | - | |||||||||
Proceed from disposal of property and equipment | 20,957 | 4,977 | - | |||||||||
Purchase of intangible asset | (2,086,819) | - | - | |||||||||
Net cash (used in) provided by investing activities | (2,077,298) | 3,261 | - | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from short-term bank loans | 1,905,209 | 1,838,833 | 6,341,729 | |||||||||
Repayments of short-term bank loans | (316,930) | (1,981,799) | (3,472,851) | |||||||||
Proceeds from long-term bank loans | - | -- | 1,811,922 | |||||||||
Repayments of long-term bank loans | (89,195) | - | - | |||||||||
Proceeds from issuance of shares | - | 3,817,842 | - | |||||||||
Payment for deferred offering costs | - | (409,743) | (729,977) | |||||||||
Net cash provided by financing activities | 1,499,084 | 3,265,133 | 3,950,823 | |||||||||
Effect of exchange rate changes | (16,984) | 40,083 | 47,349 | |||||||||
Net increase (decrease) in cash | 226,002 | 703,648 | (39,160) | |||||||||
Cash at beginning of year | 429,487 | 655,489 | 1,359,137 | |||||||||
Cash at end of year | $ | 655,489 | $ | 1,359,137 | $ | 1,319,977 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
Income tax paid | $ | 45,805 | $ | 17,408 | $ | 34,765 | ||||||
Interest expense paid | $ | 122,153 | $ | 126,095 | $ | 235,361 | ||||||
