HANGZHOU, China, July 31, 2018 /PRNewswire/ -- Dragon Victory International Limited ("LYL" or the "Company"), a company offering reward-based crowdfunding opportunities and quality incubation services to entrepreneurs in China, today announced its financial results for the fiscal year ended March 31, 2018.

Mr. Jianjun Sun, Chairman and Chief Executive Officer of Dragon Victory International Limited, commented, "We are pleased to report our financial results for the fiscal year ended March 31, 2018 with revenue increased by 19.2% to US$4.28 million. Revenue generated from crowdfunding and incubation services increase by 21.6% and 18.1%. Our business has continued to strengthen its reputation in business communities and among consumers following our successful IPO. In total, 209 projects have initiated and completed fundraising using our platform from its inception through the end of the fiscal year, raising approximately US$120 million."

Mr. Jianjun Sun continued, "We spent much of fiscal year 2018 laying the foundation for future growth, including strengthening management and corporate governance in addition to realizing our investment in research and development to upgrade our platform, improve our business operations, and launch of our auto-parts service platform in November 2017."

Fiscal Year 2018 Financial Highlights

• Revenues was $4.28 million for the twelve months ended March 31, 2018, an increase of 19.18% from the same period of last year.
• Net income attributable to Dragon Victory was $0.19 million for the twelve months ended March 31, 2018, a decrease of 88.73% from the same period of last year.
• Basic and diluted earnings per share were $0.02 for the twelve months ended March 31, 2018, compared with $0.171 for the same period of last year.

Fiscal Year 2018 Operational Highlights

• Total funds raised was $120.37 million from April 12, 2015 through March 31, 2018.
• From April 12, 2015 through March 31, 2018, 209 projects have initiated and completed fundraising campaigns.
• Launched new auto-platform business in November 2017.

Fiscal Year 2018 Financial Results

Revenues

For the twelve months ended March 31, 2018, revenue increased by $0.69 million, or 19.18%, to $4.28 million from $3.59 million for the same period of last year. The increase in revenue was mainly due to the increase in revenue across all services and launch of the new auto-platform business.

Revenue from crowdfunding increased by $0.19 million, or 21.61%, to $1.07 million and accounted for 25.10% of total revenue for the twelve months ended March 31, 2018 from $0.88 million, or 25% of total revenues, for the same period of last year. The increase was primarily due to growth of our crowdfunding platform service both in the number of projects and the number of registered users, through active marketing and promotion.

Revenue from incubation service increased by $0.49 million, or 18.13%, to $3.20 million and accounted for 74.74% of total revenue for the twelve months ended March 31, 2018 from $2.71 million, or 75% of total revenues, for the same period of last year. The increase was primarily due to a sustained and steady growing number of successfully funded crowdfunding projects that have turned into our incubation customers, as well as our higher work efficiency, due to our greater experience in incubation services, in fulfilling the increased client demand for the twelve months ended March 31, 2018.

Revenue from new auto-platform business was $6,763 and accounted for 0.16% of total revenue for the twelve months ended March 31, 2018.

Operating expenses

Selling, general and administrative expenses increased by $2.32 million, or 147.27%, to $3.89 million for the twelve months ended March 31, 2018 from $1.58 million for the same period of last year. The increase in selling, general and administrative expenses was primarily due to large amount of one-time IPO professional fees, increased wages and benefits, and increased operating expenses and administrative expenses resulting from expanding our main business operation. Advertising costs are expensed as incurred as selling expenses. Advertising expenses were $19,769 and $8,808 for the twelve months ended March 31, 2018 and 2017, respectively.

Other Income and Expenses

Total other income increased by $0.21 million, or 129.77%, to $0.37 million for the twelve months ended March 31, 2018 from $0.16 million for the same period of last year. The increase was mainly due to the interest income generated from wealth management investment.

Taxes

Income tax increased by $0.17 million, or 36.46%, to $0.63 million for the twelve months ended March 31, 2018 from $0.46 million for the same period of last year, mainly due to the increase in the revenues.

Net income

Net income decreased by $1.59 million, or 92.69%, to $0.13 million for the twelve months ended March 31, 2018 from $1.71 million for the same period of last year. The decrease in net income was mainly due to the increase of selling, general and administrative expenses and deduction of net income attributable to non-controlling interest. After the deduction of non-controlling interests, net income attributable to Dragon Victory decreased by $1.52 million, or 88.73%, to $0.19 million for the twelve months ended March 31, 2018 from $1.71 million for the same period of last year.

Basic and diluted earnings per share were $0.02 for the twelve months ended March 31, 2018, compared with basic and diluted earnings per share of $0.171 for the same period of last year.

Financial Conditions

As of March 31, 2018, the Company had cash and cash equivalents of $3.94 million, compared with $3.22 million as of March 31, 2017. Working capital was $9.77 million, as of March 31, 2018, compared with $2.86 million, as of March 31, 2017.

Net cash used in operating activities was $1.01 million for the twelve months ended March 31, 2018, compared to net cash provided by operating activities of $2.68 million for the same period of last year.

Net cash used in investing activities was $6.27 million for the twelve months ended March 31, 2018, compared to net cash provided by investing activities of $0.80 million for the same period of last year.

Net cash provided by financing activities was $7.90 million for the twelve months ended March 31, 2018, compared to net cash used in financing activities of $0.17 million for the same period of last year.

About Dragon Victory International Limited

Incorporated in 2015 and headquartered in Hangzhou, Dragon Victory International Limited ("LYL" or the "Company") offers reward-based crowdfunding opportunities in China to entrepreneurs and funding sources through a fast-growing reward-based crowdfunding platform at www.5etou.cn.  5etou is designed to enable small- and medium-sized companies, start-ups and idea generators to raise funding from participants through the Internet. The Company also provides quality business incubation services and financial services to entrepreneurs and business entities with funding needs who utilize our crowdfunding platform. More information is available at www.dvintinc.com.

Forward-Looking Statements

This press release contains information about the Company's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. The Company encourages you to review other factors that may affect its future results in the Company's registration statement and in its other filings with the Securities and Exchange Commission.

For more information, please contact:

In China:

Bo Lyu, the Board Secretary
Dragon Victory International Limited
Email: lb@dvintinc.com
Phone: +86-15157527297

In the United States:

Tina Xiao, President
Ascent Investor Relations LLC
Email: tina.xiao@ascent-ir.com
Phone: +1-917-609-0333

 

 

 

 

 

 

 

 

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SOURCE Dragon Victory International Limited