Mon, May 20, 8:13 PM (304 days ago)
Fortune Valley Treasures, Inc. reported a significant decline in financial performance for the quarter ended March 31, 2024. Net revenues fell by 84% to $267,822, primarily due to reduced product sales volume and lower unit sales prices in a sluggish economic environment. Cost of revenues decreased by 69% to $212,889, resulting in a gross profit of $54,933, a steep 94% drop from the prior year. Operating expenses rose by 9% to $1,047,874, largely due to increased allowances for credit losses. Consequently, the company reported a net loss of $1,001,080, a substantial increase from the $89,176 loss in the same period last year. Cash and cash equivalents plummeted to $16,785 from $288,255 at year-end 2023, reflecting a working capital decrease to $277,204. The company highlighted the need for additional capital within six months to sustain operations, citing plans to boost revenues and improve cash inflows. The management acknowledged material weaknesses in internal controls and outlined steps for remediation. The report underscores significant uncertainties and potential impacts on future operations if additional financing is not secured.