Preliminary Final Report
Brisbane, Sep 3, 2018 AEST (ABN Newswire) - Your Directors submit the preliminary final report for Byte Power Group Limited (
ASX:BPG) ("the group") and the entities it controlled at the end of, or during, the year ended 30 June 2018.
Review of Operations
Summary
For the year ended 30 June 2018, the group reports a net loss before tax of $10,202K compared with last year's reported profit of $697K. Revenues across all the business segments fell. Management was actively involved in the litigation suit with Soar Labs Pte Ltd and discussions with ASX and ASIC queries. Correspondingly, professional expenses in the form of legal costs increased significantly year on year from $31k for the year ended 30 June 2017 to $540K for the year ended 30 June 2018. The Group also incurred other expenses of $4.579M as a result of the impairment incurred due to the disposal of soar coins pursuant to the settlement with Soar Labs Pte Ltd and foreign exchange gains and losses.
EBITDA loss for the year was $5.094M which excludes the impairment and is compared to an EBITDA profit of $1.11M the previous year.
Revenues from ordinary activities in the financial year ended 30 June 2018 were $1.16M compared to $4.06M in the financial year ended 30 June 2017. This is largely due to the IT&T segment which did not contribute any sales this financial year as compared to $2.4M in the financial year ended 30 June 2017. There were no sales of the Wimobilize's Big Data solution during the period.
For the year ended 30 June 2018, sales revenue generated from the Asian Business Division contributed to over 99% of total revenue for the group (30 June 2017: 40.4%). These sales revenues ($1.15M) represented a decline of 29.6% on the sales revenue for the Asian Business Division for the year ended 30 June 2017 ($1.64M). This decline was due in part to the continued austerity drive in China, one of our key markets affecting our wine sales. The group is looking at strengthening its distribution network and expanding its focus in other markets in Asia.
On 1st January 2018, Byte Power Group Ltd ("BPG") was notified by Soar Labs Pte Ltd ("Soar Labs") that the current balance of 179,183,168 Soar Coins held by BPG and its subsidiary, Byte Power Pty Ltd ("BPPL") and 34,602,426 Soar Coins held by Mr Alvin Phua, a Director of the Company, had been temporarily suspended based on a number of allegations which were posted by Soar Labs on its website. The Board of BPG subsequently started legal action against Soar Labs for the recovery of the Soar Coins in Singapore where Soar Labs was based.
On the 24th May 2018 Byte Power Group Ltd, its subsidiary Byte Power Pty Ltd, Mr Alvin Phua and Soar Labs reached an amicable settlement. As part of the settlement Soar Labs transferred the 49 shares it had previously acquired in BPPL for US$5M, to BPG for no consideration. Soar Labs Pte Ltd are also required to pay a total of US$1.85M in cash and cryptocurrency to BPPL, BPG and Mr Phua in three tranches over a twelve-month period. The settlement proceeds distribution was agreed between BPG, BPPL and Mr Phua and was based on the percentage of Soar Coins suspended. BPG, BPPL and Mr Phua have received the first tranche of settlement proceeds from Soar Labs Pte Ltd which included US$97,000, 372 Ether and 3,000,000 Soar Coins. The second settlement payment in the sum of US$579,800 is due on or before 24th November 2018 and the final settlement payment, consisting of US$800,000 and 2,000,000 Soar Coins is due on or before 24th May 2019.
The Group incurred an impairment expense on settlement of $4.73M.
The Group made significant progress on the development of its Cryptocurrency Exchange. Discussions with banking institutions are still ongoing in relation to the provision of pairing facilities. In August 2018, the Group opened registration for users of the Exchange.
Outlook
The Group is targeting the completion of the Cryptocurrency Exchange user interface developments and is expecting to launch its Cryptocurrency Exchange in Q4.
BPG will continue to explore new and existing business opportunities for the wine distribution business in Asian Pacific with its 8 Eagles range.
The Group continues to build its company profile and management team to support the opportunities in Asia to further develop the Asian Business Division and its Asian presence.
This report is made in accordance with a resolution of the Directors.
To view the full report, please visit:
http://abnnewswire.net/lnk/S5Y871XP
About Byte Power Group Limited
Byte Power Group Limited (ASX:BPG) is a diversified technology solutions group with a particular emphasis on securing Asian business opportunities.
Through Wimobilize, the Group has a new cutting edge technology solution, a proprietary Advance Hybrid Artificial Intelligence Big Data Technology Platform consisting of 31 Advance Analysis Engines, 4 levels of Hybrid Correlation and Al Profiling Algorithms customised for governmental, healthcare, banking, telco and tourism industries. This proprietary Big Data technology platform elevated the AI Predictive Analysis and deep insight intelligence to a new paradigm, applicable to any market segment.
This Wimobilize Big Data technology powered e-commerce ecosystem will provide the next generation innovative trading platform for distributing the Company's Australian wine, organic honey and honeycomb.
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