Company Overview

Greenpro Capital Corp. (the “Company” or “Greenpro”) was incorporated in the State of Nevada on July 19, 2013. The company provides cross-border business solutions and accounting outsourcing services to small and medium-sized businesses located in Asia, with a focus on Hong Kong, China, and Malaysia. Greenpro offers a range of services as a package solution to its clients, which it believes can help them reduce business costs and improve revenues.

In addition to its business solution services, Greenpro also operates a venture capital business through Greenpro Venture Capital Limited. This segment focuses on (1) establishing a business incubator for start-up and high-growth companies to provide support during critical growth periods, and (2) investing in selected start-up and high-growth companies, primarily located in Southeast and East Asia.

Results of Operations

Comparison of the three months ended June 30, 2024 and 2023:

Total revenue

• Total revenue decreased from $600,885 in Q2 2023 to $361,174 in Q2 2024, a decrease of $239,711. This was primarily due to a decrease in business services revenue.

Business services revenue

• Revenue from business services decreased from $580,390 in Q2 2023 to $342,630 in Q2 2024, as fewer listing service obligations were completed.

Real estate business

• Rental revenue decreased slightly from $20,495 in Q2 2023 to $18,544 in Q2 2024.
• There was no revenue from the sale of real estate properties in either period.

Total operating costs and expenses

• Total operating costs and expenses increased from $911,944 in Q2 2023 to $962,794 in Q2 2024, an increase of $50,850.
• This was mainly due to an increase in general and administrative (G&A) expenses from $817,259 to $920,070.

Loss from operations

• Loss from operations increased from $311,059 in Q2 2023 to $601,620 in Q2 2024, primarily due to the decrease in revenue and increase in G&A expenses.

Net income/loss

• The company recorded a net loss of $565,753 in Q2 2024, compared to a net income of $6,662,516 in Q2 2023. The 2023 net income was mainly due to one-time reversals of impairment and write-offs.

Comparison of the six months ended June 30, 2024 and 2023:

Total revenue

• Total revenue decreased from $1,238,620 in H1 2023 to $1,019,573 in H1 2024, a decrease of $219,047, again primarily due to lower business services revenue.

Business services revenue

• Revenue from business services decreased from $1,195,994 in H1 2023 to $976,422 in H1 2024, as fewer listing advisory services were rendered.

Real estate business

• Rental revenue remained relatively stable at around $43,000 in both periods.
• There was no revenue from the sale of real estate properties in either period.

Total operating costs and expenses

• Total operating costs and expenses increased from $1,881,692 in H1 2023 to $2,094,906 in H1 2024, an increase of $213,214.
• This was mainly due to an increase in G&A expenses from $1,708,823 to $1,971,308.

Loss from operations

• Loss from operations increased from $643,072 in H1 2023 to $1,075,333 in H1 2024, due to the decrease in revenue and increase in G&A expenses.

Net income/loss

• The company recorded a net loss of $838,663 in H1 2024, compared to a net income of $6,684,452 in H1 2023, again due to the lack of one-time reversals in 2024.

Liquidity and Capital Resources

• As of June 30, 2024, the company had $1,189,489 in cash, down from $2,223,197 as of December 31, 2023.
• The company incurred a net loss of $838,663 and used $1,040,865 in net cash from operations during the first half of 2024.
• These factors raise substantial doubt about the company’s ability to continue as a going concern within the next 12 months.
• Management believes additional financing from shareholders or external sources will be needed to meet the company’s obligations.

Key Strengths and Weaknesses

Strengths:

• Established presence in key Asian markets like Hong Kong, China, and Malaysia
• Diversified service offerings including business solutions and venture capital investments
• Relationships with various related parties that provide revenue and other benefits

Weaknesses:

• Declining revenue, especially in the business services segment
• Increasing operating costs, particularly general and administrative expenses
• Reliance on one-time gains and reversals to achieve profitability
• Substantial doubt about the company’s ability to continue as a going concern

Outlook

• Management expects revenue from both the business services and real estate segments to steadily improve in the coming years.
• However, the company will need to address its rising costs, especially in G&A, in order to return to profitability on a sustainable basis.
• Securing additional financing will be crucial for the company to meet its obligations and continue operations in the near term.

Overall, Greenpro Capital Corp. faces significant challenges in maintaining its financial performance and long-term viability. Addressing the root causes of its declining revenue and increasing expenses will be critical for the company’s future success.