SHENZHEN, China, April 25,
2023 /PRNewswire/ -- Taoping Inc. (NASDAQ: TAOP,
the "Company" or "Taoping") today reported 25% revenue growth for
the year ended December 31, 2022. The
Company also announced the filing of its annual report on Form 20-F
for the year ended on December 31,
2022 with the U.S. Securities and Exchange Commission
("SEC").
Mr. Lin Jianghuai, Chairman and CEO of Taoping, commented,
"While we are pleased with the strong 25% revenue growth for the
full year 2022, we have much more room to drive improvements in
both revenue growth and profitability. The reality is we achieved
the higher revenue growth while navigating the adverse impacts of
ongoing COVID-19 shutdowns, and widespread supply chain, logistics
and inflationary issues that reduced customer demand due to rolling
business closures and led to higher costs. In addition, our results
reflect the absorption of costs related to our strategic decision
to pivot and shutter an evolving cryptocurrency mining
business. We believe we have put these adverse issues behind us,
which allowed us to enter 2023 in a much stronger position. We
continue to see extensive opportunities for growth in our core
competencies: the Taoping national sales network and the highly
scalable and compatible Cloud platform, and our strong software
development capabilities, which make Taoping a valued partner by
many other smart-community customers and solution providers. We
will continue to focus on leveraging our integrated ecosystem
solutions, well established brand, technology platform and industry
reputation along with strategic expansion into the smart community
and new energy business sectors."
"We are also very excited about the momentum we have been
building in our newer environmentally friendly and smart city
solutions business. For example, we recently announced an agreement
to provide Wuxuan County with customized intelligent, Cloud-based
product solutions, including Taoping's new Blue Box off-grid
wastewater treatment solution, IoT Smart Rest Station, fully
autonomous street sweeper and smart large screen displays. As we
previously indicated, that agreement allows us to enter into a
market with valuation of approximately US$80
million in Wuxuan alone, as we provide support to Wuxuan
County and contribute to its local economy through the provision of
environmentally friendly and smart city solutions. This follows an
earlier agreement in April for Taoping to provide similar services
to China's Zhaoyuan City. The two
combined cities have an estimated nearly 1 million residents.
Similar to our other core competencies, we have invested in the
development of innovative, scalable solutions, and offer
end-to-end, modular, Cloud-based solutions, which position us to
meet the diverse and evolving needs of rural areas, which are
crucial areas of focus for China's
government-supported initiatives in 2023. The above collaborations
are expected to bring significant revenue streams for the Company
in 2023 and beyond. Overall, we are excited about the growth
opportunities ahead of the Company, as we focus on building value
for shareholders."
Select Financial Results for the Year Ended December 31, 2022
Revenue for the year ended December 31,
2022 was $24.2 million,
compared to $19.4 million for the
year ended December 31, 2021, an
increase of $4.8 million, or 25.0%.
The increase was primarily due to an increase of $1.5 million revenue from products, an increase
of $2.8 million of advertising
revenue, an increase of $0.8 million
of other revenue, offset by a decrease of $0.3 million of software revenue.
Cost of revenue increased by $4.3
million, which was mainly attributed to increases in cost of
products of $1.2 million, cost of
advertising of $1.6 million, cost of
software of $0.1 million, and cost of
others of $1.4 million, or 33.7%, to
$17.0 million, for the year ended
December 31, 2022, from $12.7 million for the year ended December 31, 2021. As a percentage of revenue,
cost of revenue increased to 70.2% during the year ended
December 31, 2022, from 65.6% during
the year ended December 31, 2021.
Gross profit as a percentage of revenue decreased to 29.8% for
the year ended December 31, 2022 from
34.4% for the year ended December 31,
2021.
In December 2022, the Company
entered into a series of contracts with certain third parties to
sell its cryptocurrency mining and related equipment
for a total sale price of approximately $1.08 million. The Company also terminated the
leases for both the office facility and the storage rooms for most
mining machines that were used for the operation of
cryptocurrency mining business, and laid off relevant
employees. As a result, the Company had ceased its
cryptocurrency mining business by December 31, 2022. Net loss from discontinued
operations for the year ended December 31,
2022 was approximately $6.5
million, compared to net income of approximately
$1.8 million in 2021.
The Company incurred a net loss of approximately $7.1 million for year ended December 31, 2022, compared to a net loss of
$9.9 million for 2021. The improved
profitability was mainly due to the decrease of provision of
allowance of credit losses and the expenses of stock-based
compensation.
About Taoping Inc.
Taoping Inc. (Nasdaq: TAOP) has a long history of successfully
leveraging technology in the development of innovative solutions to
help customers in both the private and public sectors to more
effectively communicate and market to their desired targets. The
Company has built a far-reaching city partner ecosystem and
comprehensive portfolio of high-value, high-traffic areas for its
products, which are aligned together with Taoping's smart cloud
platform, cloud services and solutions, new media and artificial
intelligence. To learn more, please visit www.taop.com.
Safe Harbor Statement
This press release contains "forward-looking statements" that
involve substantial risks and uncertainties. All statements other
than statements of historical facts contained in this press
release, such as statements regarding our estimated future results
of operations and financial position, our strategy and plans, and
our objectives or goals, are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended
and Section 21E of the Securities Exchange Act of 1934, as amended.
We have attempted to identify forward-looking statements by
terminology including "anticipates," "believes," "can," "continue,"
"could," "estimates," "expects," "intends," "may," "plans,"
"potential," "predicts," "should," or "will" or the negative of
these terms or other comparable terminology. Our actual results may
differ materially or perhaps significantly from those discussed
herein, or implied by, these forward-looking statements.
There are a significant number of factors that could cause actual
results to differ materially from statements made in this press
release, including: our potential inability to achieve or sustain
profitability or reasonably predict our future results due to our
limited operating history of providing smart cloud services, the
effects of the global Covid-19 pandemic, the emergence of
additional competing technologies, changes in domestic and foreign
laws, regulations and taxes, uncertainties related to China's legal system and economic, political
and social events in China, the
volatility of the securities markets; and other risks including,
but not limited to, those that we discussed or referred to in the
Company's disclosure documents filed with the U.S. Securities and
Exchange Commission (the "SEC") available on the SEC's website at
www.sec.gov, including the Company's most recent Annual Report on
Form 20-F as well as in our other reports filed or furnished from
time to time with the SEC. The forward-looking statements included
in this press release are made as of the date of this press release
and TAOP undertakes no obligation to publicly update or revise any
forward-looking statements, other than as required by applicable
law.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/taoping-reports-25-revenue-growth-for-full-year-2022-301807514.html
SOURCE Taoping Inc.
