Jingbo Technology Reports Increased Net Loss Despite Revenue Growth and Strategic Acquisitions

Jingbo Technology, Inc. reported a net loss of $6.02 million for the fiscal year ending February 28, 2025, an increase from a net loss of $5.48 million in the previous year. The company's total revenues rose to $2.14 million, up from $1.58 million in the prior year, primarily driven by increased parking fee revenues and the introduction of winery sales, which generated $420,180. Despite the revenue growth, the company faced a gross loss of $396,198, an improvement from the previous year's gross loss of $538,292, attributed to stable cost of revenues amid expanding business operations.

The company underwent significant changes during the fiscal year, including a reverse stock split at a ratio of 1-for-200, which reduced the number of outstanding shares from approximately 1 billion to 5.31 million. Additionally, Jingbo completed a share exchange agreement with Intellegence Parking Group Limited, which resulted in Intellegence becoming a wholly-owned subsidiary. This acquisition is expected to enhance Jingbo's capabilities in the smart parking sector, as Intellegence specializes in smart parking application software and technology development.

Operationally, Jingbo's total assets decreased to $12.22 million from $12.87 million, while total liabilities increased to $35.23 million from $31.57 million. The company reported a working capital deficit of $6.58 million, raising concerns about its ability to continue as a going concern. Management is exploring various financing options, including equity financing and loans from related parties, to address liquidity challenges. As of the end of the reporting period, the company had a total employee count of 154, reflecting its ongoing commitment to expanding its workforce in line with business growth.

Looking ahead, Jingbo Technology anticipates continued revenue growth from its smart parking and winery operations, although it acknowledges the risks associated with its variable interest entity (VIE) structure and regulatory environment in China. The company is subject to scrutiny under the new Trial Administrative Measures for overseas listings, which could impact its ability to raise capital in the future. Management remains focused on implementing strategies to improve financial performance and mitigate risks associated with its operations in the Chinese market.