XIAMEN, China, Nov. 10, 2021 /PRNewswire/ -- Pop Culture
Group Co., Ltd ("Pop Culture" or the "Company") (Nasdaq: CPOP), a
hip-pop culture company in China, today announced its
financial results for the fiscal year ended June 30, 2021.
Mr. Zhuoqin Huang, Chairman and Chief Executive Officer of Pop
Culture, commented, "Despite the short-term impact to some of our
businesses caused by the COVID-19 pandemic, we maintained solid
upward momentum in fiscal year 2021. Our revenue recorded
$25.5 million in fiscal year 2021,
representing a 63% year-on-year increase from $15.7 million in fiscal year 2020. As a public
company engaged in the hip-hop culture business, our intellectual
property content ('IP content') is the key driver for our rapid
financial growth. Our revenue from event hosting was $15.0 million in fiscal year 2021, an increase of
96% from $7.6 million in fiscal year
2020. At the same time, net income attributable to our shareholders
was $4.3 million, an increase of 75%
from $2.4 million in fiscal year
2020. Our gross margin and operating margin were 28% and 23%,
respectively, in fiscal year 2021, which remained stable as
compared to 29% and 20%, respectively, in fiscal year 2020."
Mr. Huang continued, "We are very pleased to see that Pop
Culture has achieved such outstanding results in fiscal year 2021,
and we are very grateful to our customers and partners for their
continued recognition and support. We will continue to focus on the
operation and promotion of Chinese hip-hop cultural content. We
have developed a new five-year strategic plan for our future
development. According to the strategic plan, we will continue to
put 'IP content' at the core of our business and strive to achieve
sustained high growth in our three major businesses by utilizing
the advantages of big data and capital markets, with a goal of
becoming an industry leader."
|
For the fiscal
year ended June 30,
|
|
($ millions,
except per share data and percentages)
|
2021
|
|
2020
|
|
%
Change
|
|
Revenue
|
25.5
|
|
15.7
|
|
63%
|
|
Event
hosting
|
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
Margin
|
28%
|
|
29%
|
|
-1pp*
|
|
Income from
Operations
|
5.8
|
|
3.2
|
|
84%
|
|
Operating
Margin
|
23%
|
|
20%
|
|
3pp*
|
|
Net
Income
|
4.3
|
|
2.6
|
|
63%
|
|
Net Income Attributable
to the Company's shareholders
|
4.3
|
|
2.4
|
|
75%
|
|
EPS
|
0.25
|
|
0.16
|
|
56%
|
*Notes: pp represents percentage points
Fiscal Year 2021 Financial Highlights
- Revenue was $25.5 million, an increase of 63%
from $15.7 million in fiscal year 2020.
- Gross profit was $7.2 million, an increase of 59%
from $4.5 million in fiscal year 2020.
- Gross margin was 28% compared with 29% in fiscal year
2020.
- Net income attributable to the Company's shareholders
was $4.3 million, an increase of 75% from $2.4 million in fiscal year 2020.
- Basic and diluted earnings per share were $0.25 compared with $0.16 in fiscal
year 2020.
Fiscal Year 2021 Operational Highlights
- The Company hosted 35 dance competition events, 29 music
festivals and promotional parties, and 4 online hip-hop programs
during fiscal year 2021.
- The Company executed 60 events during fiscal year 2021.
- The Company's hip-hop events attracted an aggregate of 159,200
attendance and online hip-hop programs generated over 314 million
views during fiscal year 2021.
Fiscal Year 2021 Financial Results
Revenue
Revenue increased by $9.8 million,
or 63%, to $25.5 million in fiscal year 2021, from
$15.7 million in fiscal year
2020.
Revenue from event hosting increased by $7.4 million, or
96%, to $15.0 million in fiscal year 2021, from $7.6 million in fiscal year 2020. The increase
was primarily due to the increased number of the Company's live
events (dance competitions, musical festivals, and promotional
parties) as well as increased average sponsorship fees, and
additional revenue from its new online hip-hop business, which
attracted more sponsors to promote their brands in the online
hip-hop videos.
Revenue from the event planning and execution increased
by $3.7 million, or 67%, to $9.2 million in fiscal year 2021,
from $5.5 million in fiscal year 2020. The increase was
primarily due to the increase in the number and size of the events
the Company undertook.
Revenue from the brand promotion decreased by $1.4 million, or 67%, to $0.8 million in fiscal year 2021, from $2.2
million in fiscal year 2020. The decrease was mainly due to
the sluggish demand for advertising or marketing activities.
Revenue from other services increased by $0.3 million, or 87%, to $0.6 million in fiscal year 2021, from $0.3
million in fiscal year 2020.
Cost of Revenue
Cost of revenue increased by $7.1 million, or 64%,
to $18.3 million in fiscal year 2021, from $11.2 million
in fiscal year 2020. The increase was proportionally in line with
the increase in revenue.
Gross Profit and Gross Margin
Gross profit increased by $2.7
million, or 59%, to $7.2
million in fiscal year 2021,
from $4.5 million in fiscal year 2020. Gross margin
slightly decreased by 1 percentage point to 28% in fiscal year
20201 from 29% in fiscal year 2020, primarily due to the decrease
in brand promotion business, which has a higher gross margin.
Operating Expenses
Operating expenses slightly increased by $25,051, or 2%, to $1,392,137 in fiscal year 2021, from $1,367,086 in fiscal year 2020.
Selling and marketing expenses increased by $23,255, or
21%, to $133,387 in fiscal year 2021,
from $110,132 in fiscal year 2020.
The increase was primarily due to increased advertising expenses in
the amount of $20,880, expended in
order to promote the Company's business online.
General and administrative expenses increased by $1,796 to
$1,258,750 in fiscal year 2021, from
$1,256,954 in fiscal year 2020. The
increase was primarily due to slight increases in various items,
including employees' salaries and business entertainment
expenses.
Income Tax Expenses
Income tax expenses were $1.4
million and $0.5 million in
fiscal year 2021 and 2020, respectively. The increase mainly
resulted from the increased taxable income for fiscal year
2021.
Net Income
Net income increased by 63% to $4.3 million in fiscal year
2021, from $2.6 million in fiscal year 2020. Net income
attributable to the Company's shareholders increased by 75%
to $4.3 million in fiscal year 2021, from $2.4
million in fiscal year 2020.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were $0.25 in fiscal
year 2021, compared with basic and diluted earnings per share
of $0.16 in fiscal year 2020.
Cash Flow
Net cash used in operating activities was $4.0 million in
fiscal year 2021, compared with $2.6 million in fiscal year
2020. Net cash provided by investing activities
was $nil in fiscal year 2021, compared to $3,261 in fiscal year 2020. Net cash provided by
financing activities was $4.0 million in fiscal year 2021,
compared with $3.3 million in fiscal year 2020.
Balance Sheet
As of June 30, 2021, the Company had cash of $1.3
million, compared with $1.4 million as of June 30,
2020.
About Pop Culture Group Co., Ltd
Headquartered in Xiamen, China, Pop Culture Group Co., Ltd is a hip-hop
culture company. The Company aims to promote hip-hop culture and
its values of love, peace, unity, respect, and having fun, and to
promote cultural exchanges with respect to hip-hop between the
United States and China. With the values of hip-hop
culture at its core and the younger generation as its primary
target audience, the Company hosts entertainment events, operates
hip-hop related online programs, and provides event planning and
execution services and marketing services to corporate clients. The
Company has in recent years focused on developing and hosting its
own hip-hop events. For more information, visit the Company's
website at http://ir.popinter.cn/.
Forward-Looking Statements
Certain statements made in this announcement are
forward-looking statements. These forward-looking statements
involve known and unknown risks and uncertainties, including the
further spread of the COVID-19 virus or new variants thereof, or
the occurrence of another wave of cases and the impact it may have
on the Company's operations and the demand for the Company's
services, and are based on current expectations and projections
about future events and financial trends that the Company believes
may affect its financial condition, results of operations, business
strategy, and financial needs. Investors can identify these
forward-looking statements by words or phrases such as "may,"
"will," "expect," "anticipate," "aim," "estimate," "intend,"
"plan," "believe," "potential," "continue," "is/are likely to," or
other similar expressions. The Company undertakes no obligation to
update forward-looking statements to reflect subsequent occurring
events or circumstances, or changes in its expectations, except as
may be required by law. Although the Company believes that the
expectations expressed in these forward-looking statements are
reasonable, it cannot assure you that such expectations will turn
out to be correct, and the Company cautions investors that actual
results may differ materially from the anticipated results and
encourages investors to review other factors that may affect its
future results in the Company's registration statement and its
other filings with the SEC.
For more information, please contact:
Pop Culture
Group Co., Ltd
Investor Relations Department
Email: ir@520pop.com
Ascent Investors Relations LLC
Tina Xiao
President
Phone: 917-609-0333
Email: tina.xiao@ascent-ir.com
|
POP CULTURE GROUP
CO., LTD
CONSOLIDATED
BALANCE SHEETS
(In U.S. 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
|
View original
content:https://www.prnewswire.com/news-releases/pop-culture-group-co-ltd-reports-fiscal-year-2021-financial-results-301420756.html
SOURCE Pop Culture Group Co., Ltd
