China Bat Group, Inc.(NASDAQ: GLG), an emerging used luxurious car rental service provider, today announced its net income was $7.65 million, or 33 cents per American depositary share, compared with net loss of $10.70 million, or 60 cents for the fiscal year 2017, and this the first time to report profit in the past 5 years.
The change from net loss to net income was primarily due to its gained $0.49 million on income from operating lease. China Bat just offered lease services of used luxury cars in May 2018 and it did not have any operations in this business, it did not generate any revenue from this business in the year before.
The Beijing-based company also said its operating expenses representing a decreased of 37 percent to $2.82 million in 2018, compared to $4.50 in 2017.
Jiaxi Gao, the chief executive officer, said, “Over the past year we have worked hard to lay the groundwork to capitalize on the luxury car rental market in China as we improved our internal processes and focused on our operations.” Gao added, ”In 2018, the company, as the first luxurious car rental company listed on Nasdaq as far as we know, quickly gained brand awareness. Through the combination of online promotion search channels and our peer companies’ resources, we maintained rapid growth in quarterly revenue.”
Shares of China Bat dropped 3.43 percent to $2.25 in trading in New York today.
For 2019, Gao mentioned, “We plan to continue to increase our inventory and variety of luxurious cars and to expand our operations into other cities such as Chengdu, Shenzhen, Sanya, and Xiamen. We look forward to exploring the high growth opportunities in the car rental market and becoming the market leader of high-end car rental in China."