AB International Group Corp (OTCMKTS: ABQQ) reported total revenue of $1,043,817 for the nine months ended May 31, 2021, relative to $371,543 a year ago. The increase is attributable to $941,417 movie box officer revenue from “Ai Bian Quan Qui.”
AB International reported a gross profit of $165,216
Out of the total revenue for the nine months ended on May 31, 10% was from a single customer compared to last year when one customer contributed to around 62% of the revenue generated. The cost of revenues was $878,601 for the period compared to $137,217 last year, and the increase resulted from movie broadcast rights amortization which was not present in 2020.
As a result, gross profit was $165,216 this year compared to $234,326 for the nine months ending May 31, 2020. The decline in gross profit margin is a result of the high movie broadcast rights amortizing costs. However, the company hopes to continue generating more revenues for the rest of 2021 with the box office movie revenue of Ai Bian Quan Qui and also attaining adequate customers to commence ABQ.tv subscriptions.
AB International started paying its CEO cash salary this year
The company experienced G&A expenses in 2021 compared to last year due to the increase in preferred shares issuance costs, consulting fees, entertainment and travel, valuation, salaries, depreciation expense, and rent. In addition, there was an increase related to wages and salary as the company started paying its CEO a cash salary in fiscal 2021. The CEO received a salary of $135,000, bonus of $50,000.
AB International expects operating expenses to increase as the company undertakes its operations plan, including increased marketing costs and G7A expenses. In addition, professional fees related to COVID and SEC compliance will increase expenses as the company expands. In the future, the company expects COVID-19n restrictions to ease, but there could be setbacks due to new variants.