PLEASANTON, CA / ACCESSWIRE / April 3, 2019 / Jakroo Inc. (OTCQB: JKRO) (''Jakroo,'' or the '' Company''), a company specializing in the custom design, manufacture and direct sale of customized technical endurance apparel for the Cycling, Triathlon, Active and Nordic Skiing markets, today reported financial results for fiscal year ended December 31, 2018. For the year, double-digit revenue and income growth was driven by increases in revenue and income across all business units of the company globally.
''Our investments in 3D design and manufacturing technology continue to create greater workflow efficiencies allowing us to expand our production capacities and lower production costs'', said Wayne Du, President and CEO of the Company. ''These efficiencies ultimately enable us to maximize value for our customers with a highly engaging collaborative design and shopping experience, top quality product, and the fastest delivery times at scale for customized technical endurance apparel''.
''The popularity and demand for customization continues to expand and our mission is to deliver the most personalized end-to-end experience to our customers by changing the way customization gets done'', said Derek Wiseman, COO, JAKROO. ''By leveraging our global resources, we are able to deliver a rich experience, customized to each individual customer''.
For the fiscal year ended December 31, 2018
- Net revenue increased approximately $1.50 million or 15.9% to approximately $10.98 million for the year ended December 31, 2018.
- Net revenue from our North America operations increased $981, 570 or approximately 15%
- Net revenue from our Chinese operations increased $438,547 or approximately 17%
- Net revenue from our European operations increased $84,623 or approximately 25%
- Gross profit was $6.45 million, an increase of $1.01 million or 18.3% compared to $5.45 million during the year ended December 31, 2017.
- Gross margin was 58.8%, an increase of 1.31% compared to the year ended December 31, 2017.
- Cost of revenues was approximately $4.52 million or 41.2% of total revenues, compared to $4.02 million or 42.5% of total revenues in 2017.
- Net income increased $649,815 or approximately 1025% and was primarily driven by increased revenues across our North American and Chinese operating units.
- Selling and administrative expense increased $318,392 or 5.8% to approximately $5.80 million. Increases were primarily attributed to increases in professional fees in connection with the OTC listing. In addition, we have continued to invest in product development, technology infrastructure and our employees, the most valuable assets of the Company.
- Provisions for income taxes increased $34,072 or 21.4% to $193,606 in line with the increase in net income. Our effective tax rate was 33% for the year ended December 31, 2018.
- Inventories of finished goods and raw materials were approximately $1.86 million for the year ended December 31, 2018, compared to $1.54 million in 2017. The increase of inventory was primarily attributed to the purchase of raw materials in the fourth quarter of 2018 in anticipation of the production peak in the first half of 2019.
- Cash and cash equivalents were $1.79 million, compared to $2.35 million in 2017.
About Jakroo Inc.
Jakroo, Inc. specializes in the design, manufacture and direct sale of customized technical endurance apparel for the cycling, triathlon, active and nordic skiing markets across Asia, Europe and North America. Our made-to-order, just-in-time (known as JIT) manufacturing process and vertical integration of design, sales and distribution minimizes risk, provides autonomous control of quality across all stages of our vertically integrated supply chain and maximizes value to our customers.
Our business model is based on the concept of leveraging the global resources across the organization to create and deliver a rich, collaborative, and highly customizable experience for each individual customer.
For more information about Jakroo, visit Jakroo's website ( https://www.jakroo.com/us ) or connect with us via:
Facebook: https://www.facebook.com/jakroo
Instagram: https://www.instagram.com/jakroousa/
Twitter: https://twitter.com/jakroousa
YouTube: https://www.youtube.com/user/jakroousa
The contents found at Jakroo's website address, Facebook, Instagram, Twitter, and YouTube accounts are not incorporated herein by reference and should not be considered part of this press release. The addresses for Jakroo's website, Facebook, Instagram, Twitter, and YouTube accounts are included in this document as inactive textual references only.
Company Contact:
Jakroo Inc.
5906 Stoneridge Mall Road
Pleasanton, CA 94588
Tel: 800-485-7067
Investor Relations Contact:
Derek Wiseman
COO
Phone: (800) 485-7067 ext. 103
Email: [email protected]
Safe Harbor Statement
This press release and any statements of representatives and partners of Jakroo Inc. (the "Company") related thereto contain, or may contain, among other things, certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, expectations and intentions and other statements identified by words such as "projects," "may," "will," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," "potential" or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Actual future results (including, without limitation, the statements made in this press release as described herein) may differ significantly from those set forth or implied in the forward-looking statements. These forward-looking statements involve numerous risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE: Jakroo Inc.