Borqs Announces Financial Results for the First Half of 2022; Revenues in 6 Months 2022 Higher than Full Year 2021
21 Outubro 2022 - 10:00AM
Borqs Technologies, Inc. (Nasdaq: BRQS, “Borqs”, or the “Company”),
a global provider of 5G wireless, Internet of Things (IoT)
solutions, and innovative clean energy, today announced its
financial results for the six months ended June 30, 2022.
Key Financial Results:
- Revenue for the 6 months ended June
30, 2022 increased by 141% to $30.1 million compared to $12.5
million for the 6 months ended June 30, 2021, driven by increased
IoT sales globally and revenues of $3.9 million from Holu Hou
Energy (HHE), our majority-owned solar & energy storage system
subsidiary.
- Gross profit for the 6 months ended
June 30, 2022 increased to $4.3 million compared to a gross profit
of $1.8 million for the 6 months ended June 30, 2021. Gross margin
was 14.2% for the 6 months ended June 30, 2022, flat as compared to
the prior year.
- U.S.-headquartered customers
contributed 71.1% of total revenue, while Europe represented 14.3%,
India represented 13.8% and the balance of the world represented
0.9%.
- Cash balance of $18.4 million
“We are very pleased with the results of the
first half and proud of the entire Borqs team who are executing on
our business plans, while addressing customers’ needs in a
challenging macro environment. We forecast the 2022 yearly revenue
to be $50-55 million, year-over-year growth of over 69%, compared
to revenue of $29.6 million for 2021,” stated Pat Chan, CEO of
Borqs Technologies. “It has also been exciting to see our Holu Hou
Energy subsidiary’s progress as it has been completing solar plus
energy storage projects during the first half of year in the state
of Hawaii. While we continue to grow our IoT business segment, we
are also very excited about the outlook of our solar and energy
storage business, given the fact that only 4% of the 77 million
addressable homes in the U.S. have solar in the wake of higher
demand for cleaner energy. By the first half of 2022, we have
achieved more than $50M backlog of orders. We anticipate the
backlog will continue to grow in the second half of this year.”
Chan concluded, “Finally, we applaud the passing of the Inflation
Reduction Act which will significantly stimulate the growth within
the entire clean energy sector and beyond. Borqs plans to
capitalize by providing sustainable and affordable energy to our
customers in the U.S. and remains excited about the projects in the
pipeline for the second half of the year in both States of Hawaii
and California. We are very optimistic about the growth potential
both in the U.S. and across world in the years to come.”
About Borqs Technologies,
Inc.Borqs Technologies is a global leader in software and
products for the IoT, providing customizable, differentiated and
scalable Android-based smart connected devices and cloud service
solutions. Borqs has achieved leadership and customer recognition
as an innovative end-to-end IoT solutions provider leveraging its
strategic chipset partner relationships as well as its broad
software and IP portfolio. Borqs’ unique strengths include its
Android and Android Wear Licenses which enabled the Company to
develop a software IP library covering chipset software, Android
enhancements, domain specific usage and system performance
optimization, suitable for large and low volume customized
products, and is also currently in development of 5G products for
phones and hotspots. The Company acquired controlling shares of the
solar energy storage system entity, Holu Hou Energy LLC, in October
2021.
About Holu Hou Energy, LLCHolu
Hou Energy, LLC, a Delaware Corporation, brings state-of-the-art
renewable energy and energy storage systems to the Single-Family
Residential, Multi-Dwelling Unit Residential and Commercial
building markets. With operations in California, Hawaii, Wisconsin
and Shanghai, HHE engineers proprietary storage system and control
platform solutions, including a breakthrough “HHE Energy Share”
technology that is key to development of the Multi-Dwelling Unit
Residential housing market. HHE is a vital partner for investors
and asset owners that are seeking ESG solutions. For more
information, visit www.holuhou.com.
To view a video clip of a recently completed HHE
Multi-Unit Residential project go to:
https://www.youtube.com/watch?v=kakbynGM-fQ
Forward-Looking Statements and
Additional InformationThis press release includes
“forward-looking statements” that involve risks and uncertainties
that could cause actual results to differ materially from what is
expected. Words such as “forecasts”, “expects”, “believes”,
“anticipates”, “intends”, “estimates”, “predicts”, “seeks”, “may”,
“might”, “plan”, “possible”, “should”, “estimates” and variations
and similar words and expressions are intended to identify such
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. Such forward-looking
statements relate to future events or future results, based on
currently available information and reflect our management’s
current beliefs. Many factors could cause actual events or results
to differ materially from the events and results discussed in the
forward-looking statements, including the possibility that the
positive financial results from business activities as described
herein may not be reached or at all, and the negative impact of the
COVID-19 pandemic on the Company’s supply chain, revenues and
overall results of operations, so the reader is advised to refer to
the Risk Factors sections of the Company’s filings with the
Securities and Exchange Commission for additional information
identifying important factors that could cause actual results to
differ materially from those anticipated in the forward-looking
statements. Except as expressly required by applicable securities
law, the Company disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor Contact:
Borqs Technologies, Inc.IR@borqs.com
www.borqs.com
BORQS TECHNOLOGIES,
INC.UNAUDITED CONSOLIDATED BALANCE
SHEETS(Amounts in thousands of US dollar (“US$”),
unless otherwise stated)
|
|
December 31, 2021 |
|
|
June 30, 2022 |
|
|
|
US$ |
|
|
US$ |
|
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
7,925 |
|
|
|
18,445 |
|
Accounts receivable |
|
|
2,262 |
|
|
|
3,338 |
|
Inventories - net |
|
|
7,190 |
|
|
|
6,583 |
|
Prepaid expenses and other current assets, net |
|
|
13,833 |
|
|
|
12,052 |
|
Total current
assets |
|
|
31,210 |
|
|
|
40,418 |
|
Non-current
assets: |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
827 |
|
|
|
2,962 |
|
Intangible assets, net |
|
|
5,377 |
|
|
|
4,916 |
|
Right of Use Asset |
|
|
1,674 |
|
|
|
2,045 |
|
Goodwill |
|
|
12,208 |
|
|
|
12,207 |
|
Deferred tax assets |
|
|
471 |
|
|
|
440 |
|
Non-current assets |
|
|
1,485 |
|
|
|
614 |
|
Total non-current
assets |
|
|
22,042 |
|
|
|
23,184 |
|
Total
assets |
|
|
53,252 |
|
|
|
63,602 |
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
10,203 |
|
|
|
9,052 |
|
Accrued expenses and other payables |
|
|
27,221 |
|
|
|
28,398 |
|
Advances from customers |
|
|
8,403 |
|
|
|
8,472 |
|
Lease Liabilities- current |
|
|
1,032 |
|
|
|
1,590 |
|
Amount due to related parties-current |
|
|
2,512 |
|
|
|
1,552 |
|
Income tax payable |
|
|
399 |
|
|
|
150 |
|
Long-term institution borrowings - current portion |
|
|
1,250 |
|
|
|
- |
|
Short-term borrowings |
|
|
1,275 |
|
|
|
1,106 |
|
Other liabilities |
|
|
714 |
|
|
|
- |
|
Contingent consideration |
|
|
1,392 |
|
|
|
1,391 |
|
Convertible notes |
|
|
9,990 |
|
|
|
8,423 |
|
Total current
liabilities |
|
|
64,391 |
|
|
|
60,134 |
|
Non-current
liabilities: |
|
|
|
|
|
|
|
|
Deferred tax liability |
|
|
2,154 |
|
|
|
2,086 |
|
Long-term payable |
|
|
661 |
|
|
|
1,283 |
|
Non-current liabilities |
|
|
3,332 |
|
|
|
2,549 |
|
Total non-current
liabilities |
|
|
6,147 |
|
|
|
5,918 |
|
Total
liabilities |
|
|
70,538 |
|
|
|
66,052 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
|
|
|
|
|
|
Ordinary shares |
|
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
|
262,271 |
|
|
|
286,056 |
|
Subscription receivables |
|
|
(15,287 |
) |
|
|
(18,970 |
) |
Statutory reserve |
|
|
1,901 |
|
|
|
1,901 |
|
Accumulated deficit |
|
|
(272,131 |
) |
|
|
(277,397 |
) |
Total Borqs
Technologies, Inc. shareholders’ equity |
|
|
(23,246 |
) |
|
|
(8,410 |
) |
Non-controlling interest |
|
|
5,960 |
|
|
|
5,960 |
|
Total shareholders’
equity |
|
|
(17,286 |
) |
|
|
(2,450 |
) |
Total liabilities and
shareholders’ equity |
|
|
53,252 |
|
|
|
63,602 |
|
|
|
|
|
|
|
|
|
|
BORQS TECHNOLOGIES,
INC.UNAUDITED CONSOLIDATED STATEMENT OF
OPERATIONS(Amounts in thousands of US dollar
(“US$”), unless otherwise stated)
|
|
For the six months endedJune
30, |
|
|
|
2021 |
|
|
2022 |
|
|
|
US$ |
|
|
US$ |
|
Net
revenues: |
|
|
|
|
|
|
IoT |
|
|
12,497 |
|
|
|
26,261 |
|
Software |
|
|
5,490 |
|
|
|
5,065 |
|
Hardware |
|
|
7,007 |
|
|
|
21,196 |
|
Solar &
ESS |
|
|
- |
|
|
|
3,886 |
|
Total net
revenues |
|
|
12,497 |
|
|
|
30,147 |
|
|
|
|
|
|
|
|
|
|
Cost of
revenues |
|
|
|
|
|
|
|
|
IoT |
|
|
(10,717 |
) |
|
|
(23,983 |
) |
Software |
|
|
(4,216 |
) |
|
|
(4,453 |
) |
Hardware |
|
|
(6,501 |
) |
|
|
(19,530 |
) |
Solar &
ESS |
|
|
- |
|
|
|
(1,883 |
) |
Total cost of
revenues |
|
|
(10,717 |
) |
|
|
(25,866 |
) |
|
|
|
|
|
|
|
|
|
Total gross (loss)
profit |
|
|
1,780 |
|
|
|
4,281 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
|
(218 |
) |
|
|
(233 |
) |
General and administrative expenses |
|
|
(24,743 |
) |
|
|
(5,351 |
) |
Research and development expenses |
|
|
(3,285 |
) |
|
|
(2,002 |
) |
Total operating
expenses |
|
|
(28,246 |
) |
|
|
(7,586 |
) |
|
|
|
|
|
|
|
|
|
Operating income
(loss) |
|
|
(26,466 |
) |
|
|
(3,305 |
) |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
3 |
|
|
|
4 |
|
Interest expense |
|
|
(2,694 |
) |
|
|
(927 |
) |
Other income |
|
|
31 |
|
|
|
369 |
|
Other expense |
|
|
(219 |
) |
|
|
(1,415 |
) |
Foreign exchange income (loss) |
|
|
(222 |
) |
|
|
8 |
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, before income taxes |
|
|
(29,567 |
) |
|
|
(5,266 |
) |
|
|
|
|
|
|
|
|
|
Less: Net income (loss)
attributable to non-controlling interest |
|
|
1 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Borqs Technologies, Inc. |
|
|
(29,568 |
) |
|
|
(5,266 |
) |
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to ordinary shareholders |
|
|
(29,568 |
) |
|
|
(5,266 |
) |
|
|
|
|
|
|
|
|
|
BORQS TECHNOLOGIES,
INC.EBITDA & ADJUSTED EBITDA
RECONCILIATION(Amounts in thousands of US dollar
(“US$”), unless otherwise stated)
|
|
For the six months endedJune
30, |
|
|
|
2021 |
|
|
2022 |
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations |
|
|
(29,567 |
) |
|
|
(5,266 |
) |
|
|
|
|
|
|
|
|
|
Interest |
|
|
(2,691 |
) |
|
|
(151 |
) |
Depreciation |
|
|
(66 |
) |
|
|
(248 |
) |
Amortization |
|
|
(639 |
) |
|
|
(401 |
) |
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
(26,171 |
) |
|
|
(4,466 |
) |
Litigation expenses |
|
|
(76 |
) |
|
|
(999 |
) |
Gains or losses on foreign exchange |
|
|
(222 |
) |
|
|
8 |
|
Non-operating income or expense |
|
|
(188 |
) |
|
|
(930 |
) |
Share-based compensation or expense |
|
|
(22,883 |
) |
|
|
(970 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
(2,802 |
) |
|
|
(1,575 |
) |
|
|
|
|
|
|
|
|
|
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