JX Luxventure Limited Reported a 35% Increase in Revenue Reaching $79.90 Million for the Fiscal Year Ended December 31, 2022
HAIKOU, China, May 15, 2023 /PRNewswire/ -- JX Luxventure Limited (NASDAQ:JXJT) (the "Company"), a company that engages in tourism with business segments covering tourism, tourism duty-free cross-border merchandise and tourism technology solutions, today announced that on May 12, 2023, it filed its annual report on Form 20-F for the fiscal year ended December 31, 2022 with the U.S. Securities and Exchange Commission (the "SEC"), which was amended today solely to include the Interactive Data File disclosure ("XBRL") required by the SEC (collectively, the "2022 Report"). The 2022 Report can be accessed on the SEC's website at http://www.sec.gov.
As disclosed in the 2022 Report, the Company's total revenue increased from $54.01 million reported for the fiscal year ended December 31, 2021, to $79.9 million reported for the fiscal year ended December 31, 2022, constituting a 35% increase. The Company also maintained a substantial shareholders' equity of $12.33 million.
Ms. Sun "Ice" Lei, Chief Executive Officer of the Company, said, "During 2022, the Company consistently focused its business operations on growing its revenue in the revenue-generating business segments, such as tourism, tourism technology solutions and tourism cross-border merchandise, and divested its unprofitable menswear business in October 2022. In our second year of implementing our growth strategy, we've seen a successful 35% rise in revenue in 2022 relative to the total earnings from the three revenue-generating business segments in 2021. This growth is further highlighted when considering the revenue of $1.33 million for the same segments in 2020, which represents a striking 5900% increase over the period. This was the second year of our growth strategy and we have succeeded.
In pursuit of revenue growth, we experienced a significant net loss of $73.49 million for the fiscal year ended December 31, 2022, compared to $37.21 million net loss for the fiscal year ended December 31, 2021. However, approximately 97% of the Company's reported net loss for the fiscal year ended December 31, 2022, are non-cash expenses or discounted operation loss, including (i) approximately 12% attributed to the discontinued operation of our menswear business and (ii) approximately 85% related to the fair value of the stock-based compensation to essential key employees. This issuance of stock-based compensation to our essential employees enabled us to retain key talent while preserving and conserving cash for our business operations, an important element of the Company's business strategy. Excluding these two factors, the actual loss from the Company's business operations for the fiscal year ended December 31, 2022, is $2.13 million or 2.9%, a significant improvement from the $2.95 million net loss reported for the fiscal year ended December 31, 2021.
Since launching our three-year turnaround strategy, we believe that we accomplished the following three milestones:
- Revenue growth in performance of our revenue-generating tourism segments of operations;
- Significant reduction in the Company's operating losses, indicating a shift towards profitability;
- Successful divestiture of the unprofitable men's clothing division, and
- Maintaining the shareholders' equity at $12.33 million.
Our objective for 2023 is to focus on profitability, increasing the total shareholders' equity, and maintaining cost control. I believe that the investments we have made in our technology solution products will enable us to achieve this."
About JX Luxventure Limited
Headquartered in Haikou, China, JX Luxventure Limited is a company that engages in tourism with business segments covering tourism, tourism duty-free cross-border merchandise and tourism technology solutions. To learn more about the Company, please visit its corporate website at en.jxluxventure.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of JX Luxventure Limited, and its subsidiary companies. All statements, other than statements of historical fact included herein, are "forward-looking statements" in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements due to a variety of factors, including those discussed in the Company's periodic reports filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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