Pop Culture Group Co., Ltd Reports Fiscal Year 2022 Financial Results
Pop Culture Group Co., Ltd (CPOP) reported a 26% increase in total revenue, reaching $32.28 million for the fiscal year ended June 30, 2022. Significant growth in brand promotion revenue, which surged 1,064% to $8.73 million, offset declines in event hosting and planning revenues. Net income fell to $0.69 million from $4.27 million year-over-year. The company faced a 42% rise in cost of revenue, leading to a gross profit decrease of 14%. Operating expenses also increased significantly, impacting overall profitability. Cash and cash equivalents rose substantially to $14.40 million.
- Total revenue increased by 26% to $32.28 million.
- Brand promotion revenue skyrocketed by 1,064% to $8.73 million.
- Cash and cash equivalents reached $14.40 million, up from $1.32 million.
- Net income decreased to $0.69 million from $4.27 million.
- Gross profit fell by 14%, totaling $6.25 million.
- Operating expenses rose 247% to $4.83 million.
XIAMEN, China, Oct. 28, 2022 /PRNewswire/ -- Pop Culture Group Co., Ltd ("Pop Culture" or the "Company") (Nasdaq: CPOP), a hip-pop culture company in China, today reported its financial results for the fiscal year ended June 30, 2022.
Fiscal Year 2022 Financial Highlights
- Total revenue was
$32.28 million , an increase of26% from$25.53 million in fiscal year 2021. - Revenue from event hosting was
$14.71 million , a decrease of2% from$14.98 million in fiscal year 2021. - Revenue from brand promotion was
$8.73 million , an increase of 1,064% from$0.75 million in fiscal year 2021. - Revenue from event planning and execution was
$8.42 million , a decrease of8% from$9.20 million in fiscal year 2021. - Gross profit was
$6.25 million , a decrease of14% from$7.22 million in fiscal year 2021. - Net income was
$0.69 million , compared with$4.27 million in fiscal year 2021. - Basic and diluted earnings per share were
$0.04 , compared with$0.25 in fiscal year 2021.
Fiscal Year 2022 Operational Highlights
- The Company's concerts and hip-hop events generated an aggregate attendance of 203,233 during the fiscal year ended June 30, 2022.
- The Company's online hip-hop programs generated over 210 million views during the fiscal year ended June 30, 2022.
- The Company served 21 clients in 56 events with respect to event planning and execution during the fiscal year ended June 30, 2022.
Mr. Zhuoqin Huang, Chairman and Chief Executive Officer of Pop Culture, commented, "We continued to deliver recorded performance during fiscal year 2022, as our revenue reached
Mr. Huang continued, "We developed several strategic initiatives to gain competitive edges on the market. We aim to benefit more street dance organizations through our software-as-a-service (SaaS) platform. There were over 60,000 students using the SaaS platform provided by our subsidiary, Shenzhen Jam Box Technology Co., Ltd., as of June 30, 2022, and we expect to continue to upgrade the SaaS platform, implement horizontal growth strategy, and further provide services to companies from the education and training industry. Also, the development of metaverse-related business remains our priority, we will continue to make investment in metaverse-related business to provide a comprehensive of hip-hop experience to users. Looking forward, we aim to leverage the strengths of our intellectual property portfolio and services to strengthen our existing customer base, attract new customers, and enhance our market position. We believe our solid business model and strategic development plan position us well to capture the growth opportunity in the market and maintain our momentum. As we look to fiscal year 2023, we are excited to deliver innovative content and experience to users and generate long-term value for our shareholders."
Fiscal Year 2022 Financial Results
Revenue
Following table presents the Company's revenue by revenue source and by proportion:
For the Fiscal Years Ended June 30, | Change | |||||||||||||||||||||||
2022 | % | 2021 | % | Amount | % | |||||||||||||||||||
Event Hosting | $ | 14,711,787 | 46 | % | $ | 14,978,643 | 59 | % | $ | (266,856) | (2) | % | ||||||||||||
Brand Promotion | 8,733,764 | 27 | % | 750,315 | 3 | % | 7,983,449 | 1,064 | % | |||||||||||||||
Event Planning and Execution | 8,420,328 | 26 | % | 9,196,773 | 36 | % | (776,445) | (8) | % | |||||||||||||||
Other Services | 415,664 | 1 | % | 600,826 | 2 | % | (185,162) | (31) | % | |||||||||||||||
Total revenue | $ | 32,281,543 | 100 | % | $ | 25,526,557 | 100 | % | $ | 6,754,986 | 26 | % | ||||||||||||
Total revenue increased by
Revenue from event hosting decreased by
Revenue from brand promotion increased by
Revenue from event planning and execution decreased by
In fiscal year 2022, other service revenue included music recording service income, digital collection sales income, and SaaS software service income. Other service revenue was
Cost of Revenue
The cost of revenue increased by
The cost of revenue was derived from the following sources:
For the Fiscal Years Ended June 30, | Change | |||||||||||||||||||||||
2022 | % | 2021 | % | Amount | % | |||||||||||||||||||
Event Hosting | $ | 9,853,996 | 38 | % | $ | 10,345,925 | 56 | % | $ | (491,929) | (5) | % | ||||||||||||
Brand Promotion | 1,358,040 | 5 | % | 366,433 | 2 | % | 991,607 | 271 | % | |||||||||||||||
Event Planning and Execution | 7,332,011 | 28 | % | 7,553,522 | 41 | % | (221,511) | (3) | % | |||||||||||||||
Other Services | 7,491,964 | 29 | % | 36,614 | 1 | % | 7,455,350 | 20,362 | % | |||||||||||||||
Total Cost of Revenue | $ | 26,036,011 | 100 | % | $ | 18,302,494 | 100 | % | $ | 7,733,517 | 42 | % | ||||||||||||
Gross Profit and Gross Margin
Gross profit decreased by
The following table displays the gross profit:
For the Fiscal Years Ended June 30, | ||||||||||||||||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||||||||||||||
Amount | % | GP% | Amount | % | GP % | Amount | % | |||||||||||||||||||||||||
Event Hosting | $ | 4,857,791 | 78 | % | 33 | % | $ | 4,632,718 | 64 | % | 31 | % | $ | 225,073 | 5 | % | ||||||||||||||||
Brand Promotion | 7,375,724 | 118 | % | 84 | % | 383,882 | 5 | % | 51 | % | 6,991,842 | 1821 | % | |||||||||||||||||||
Event Planning and Execution | 1,088,317 | 17 | % | 13 | % | 1,643,251 | 23 | % | 18 | % | (554,934) | (34) | % | |||||||||||||||||||
Other Services | (7,076,300) | (113) | % | (1702) | % | 564,212 | 8 | % | 94 | % | (7,640,512) | (1354) | % | |||||||||||||||||||
Total gross profit | $ | 6,245,532 | 100 | % | 19 | % | $ | 7,224,063 | 100 | % | 28 | % | $ | (978,531) | (14) | % | ||||||||||||||||
Operating Expenses
Total operating expenses increased by
Selling and marketing expenses increased by
General and administrative expenses increased by
Income from Operations
Income from operations was
Income Tax Expenses
Income tax expenses were
Net Income
Net income was
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were
Cash Flows
Net cash used in operating activities was
Cash and Cash Equivalents
As of June 30, 2022, the Company had cash and cash equivalents of
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, 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 brand promotion 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.cpop.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@cpop.cn
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, | ||||||||
2022 | 2021 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash | $ | 14,396,032 | $ | 1,319,977 | ||||
Accounts receivable, net | 26,278,634 | 25,537,236 | ||||||
Advance to suppliers | 9,351,431 | 1,999,876 | ||||||
Prepaid expenses and other current assets | 805,427 | 3,553,028 | ||||||
TOTAL CURRENT ASSETS | 50,831,524 | 32,410,117 | ||||||
Property and equipment, net | 71,763 | 48,393 | ||||||
Intangible asset, net | 2,204,411 | 1,635,321 | ||||||
Operating right-of-use asset | 461,399 | 194,747 | ||||||
Prepaid Taxes | 332,022 | - | ||||||
Deferred tax assets | 457,649 | 140,757 | ||||||
Other non-current assets | 10,009,200 | - | ||||||
TOTAL ASSETS | $ | 64,367,968 | $ | 34,429,335 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Short-term bank loans | $ | 3,792,121 | $ | 5,140,990 | ||||
Accounts payable | 966,822 | 1,900,883 | ||||||
Deferred revenue | 47,710 | 1,648,847 | ||||||
Taxes payable | 4,697,267 | 4,232,391 | ||||||
Due to a related party | 149,296 | 225,000 | ||||||
Accrued liabilities and other payables | 229,209 | 77,567 | ||||||
Operating lease liability – current | 208,926 | 98,427 | ||||||
TOTAL CURRENT LIABILITIES | 10,091,351 | 13,324,105 | ||||||
Long-term bank loans | 1,254,087 | 1,672,370 | ||||||
Operating lease liability - non-current | 250,178 | 104,755 | ||||||
TOTAL LIABILITIES | 11,595,616 | 15,101,230 | ||||||
Commitments and contingencies | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares (par value | 24,050 | 17,850 | ||||||
Subscription receivable | (15,441) | (15,441) | ||||||
Additional paid-in capital | 40,158,643 | 6,643,118 | ||||||
Statutory reserve | 1,499,369 | 1,241,573 | ||||||
Retained earnings | 11,028,345 | 10,498,183 | ||||||
Accumulated other comprehensive (loss) income | 69,019 | 942,822 | ||||||
TOTAL POP CULTURE GROUP CO., LTD SHAREHOLDERS' EQUITY | 52,763,985 | 19,328,105 | ||||||
Non-controlling interests | 8,367 | - | ||||||
TOTAL SHAREHOLDERS' EQUITY | 52,772,352 | 19,328,105 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 64,367,968 | $ | 34,429,335 | ||||
* | Certain shares are related to the reorganization for the founding shareholders and are presented on a retroactive |
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, | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
REVENUE, NET | $ | 32,281,543 | $ | 25,526,557 | $ | 15,688,080 | ||||||
Cost of revenue | 26,036,011 | 18,302,494 | 11,158,847 | |||||||||
GROSS PROFIT | 6,245,532 | 7,224,063 | 4,529,233 | |||||||||
Selling and marketing | 380,723 | 133,387 | 110,132 | |||||||||
General and administrative | 4,448,342 | 1,258,750 | 1,256,954 | |||||||||
Total operating expenses | 4,829,065 | 1,392,137 | 1,367,086 | |||||||||
INCOME FROM OPERATIONS | 1,416,467 | 5,831,926 | 3,162,147 | |||||||||
Other (expenses) income: | ||||||||||||
Interest expenses, net | (235,327) | (243,458) | (125,560) | |||||||||
Other (expenses) income, net | 377,979 | 95,946 | 46,235 | |||||||||
Total other expenses, net | 142,652 | (147,512) | (79,325) | |||||||||
INCOME BEFORE INCOME TAX PROVISION | 1,559,119 | 5,684,414 | 3,082,822 | |||||||||
PROVISION FOR INCOME TAXES | 871,231 | 1,416,872 | 457,005 | |||||||||
NET INCOME | 687,888 | 4,267,542 | 2,625,817 | |||||||||
Less: net income attributable to non-controlling interests | (100,070) | - | 189,996 | |||||||||
NET INCOME ATTRIBUTABLE TO POP CULTURE GROUP | 787,958 | 4,267,542 | 2,435,821 | |||||||||
Other comprehensive (loss) income: | ||||||||||||
Foreign currency translation adjustment | (873,803) | 1,335,757 | (241,839) | |||||||||
COMPREHENSIVE INCOME | (185,915) | 5,603,299 | 2,383,978 | |||||||||
Less: comprehensive income attributable to non-controlling interest | (100,070) | - | 174,392 | |||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO POP | $ | (85,845) | $ | 5,603,299 | $ | 2,209,586 | ||||||
Net income per share | ||||||||||||
Basic and diluted | $ | 0.04 | $ | 0.25 | $ | 0.16 | ||||||
Weighted average shares used in calculating net income per share * | ||||||||||||
Basic and diluted | 20,950,000 | 17,228,698 | 14,881,478 | |||||||||
* | Certain shares are related to the reorganization for the founding shareholders and are presented on a retroactive |
POP CULTURE GROUP CO., LTD | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(In U.S. dollars) | ||||||||||||
For the years ended June 30, | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net Income | $ | 687,888 | $ | 4,267,542 | $ | 2,625,817 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Allowance for doubtful accounts | 1,307,518 | 195,187 | 324,345 | |||||||||
Depreciation and amortization | 310,343 | 243,905 | 233,353 | |||||||||
Deferred tax benefit | (334,045) | (47,802) | (84,246) | |||||||||
Non-cash lease expense | 84,552 | 107,139 | 89,977 | |||||||||
Loss/(gain) from disposal of property and equipment | (1,237) | - | 19,300 | |||||||||
Changes in assets and liabilities: | ||||||||||||
Accounts receivable | (3,001,954) | (9,259,862) | (5,672,992) | |||||||||
Advance to suppliers | (7,542,591) | 1,440,794 | (2,531,334) | |||||||||
Amounts due from related parties | - | - | 153,586 | |||||||||
Prepaid expenses and other current assets | 1,533,471 | (1,504,345) | (44,002) | |||||||||
Operating lease right-of-use assets | (563,300) | - | - | |||||||||
Other non-current assets | (10,050,789) | 268,433 | (252,816) | |||||||||
Accounts payable | (898,452) | (1,130,593) | 49,588 | |||||||||
Deferred revenue | (1,599,990) | (275,888) | 1,762,730 | |||||||||
Taxes payable | 295,333 | 1,592,715 | 721,743 | |||||||||
Accrued liabilities and other payables | 156,840 | (52,007) | 54,234 | |||||||||
Due to a related party | (225,000) | 225,000 | - | |||||||||
Operating lease liability | 476,367 | (107,550) | (54,112) | |||||||||
Net cash provided by (used in) operating activities | (19,365,046) | (4,037,332) | (2,604,829) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Purchase of property and equipment | (82,733) | - | (1,716) | |||||||||
Proceed from disposal of property and equipment | - | - | 4,977 | |||||||||
Purchase of intangible asset | (720,000) | - | - | |||||||||
Net cash (used in) provided by investing activities | (802,733) | - | 3,261 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from short-term bank loans | 3,433,810 | 6,341,729 | 1,838,833 | |||||||||
Repayments of short-term bank loans | (4,956,629) | (3,472,851) | (1,981,799) | |||||||||
Proceeds from long-term bank loans | (245,791) | 1,811,922 | - | |||||||||
Repayments of long-term bank loans | - | - | ||||||||||
Proceeds from issuance of shares | 33,630,162 | - | 3,817,842 | |||||||||
Payment for deferred offering costs | 1,197,380 | (729,977) | (409,743) | |||||||||
Net cash provided by financing activities | 33,058,932 | 3,950,823 | 3,265,133 | |||||||||
Effect of exchange rate changes | 184,902 | 47,349 | 40,083 | |||||||||
Net increase (decrease) in cash | 13,076,055 | (39,160) | 703,648 | |||||||||
Cash at beginning of year | 1,319,977 | 1,359,137 | 655,489 | |||||||||
Cash at end of year | $ | 14,396,032 | $ | 1,319,977 | $ | 1,359,137 | ||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
Income tax paid | $ | 398,370 | $ | 34,765 | $ | 17,408 | ||||||
Interest expense paid | $ | 56,733 | $ | 235,361 | $ | 126,095 | ||||||
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SOURCE Pop Culture Group Co., Ltd
FAQ
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