UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE
ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of December
Commission File Number 001-37593
(Translation of registrant’s name into English)
Office B, 21/F, Legend Tower, 7 Shing Yip Street
Kwun Tong, Kowloon, Hong Kong
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
The Company hereby submits its interim balance sheet and income statement for its six months ended on June 30, 2023. This submission is made within six months following the end of said period. The consolidated financial statements herein are unaudited, prepared by the management of the Company and furnished to this Current Report on Form 6-K and incorporated herein by reference.
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BORQS TECHNOLOGIES, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of US dollar (“US$”), unless otherwise stated)
| December 31, 2022 | June 30, 2023 | |||||||
| US$ | US$ | |||||||
| ASSESTS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | ||||||||
| Restricted cash | ||||||||
| Time deposit | ||||||||
| Accounts receivable | ||||||||
| Inventories - net | ||||||||
| Other receivables, net | ||||||||
| Prepaid expenses and other current assets, net | ||||||||
| Total current assets | ||||||||
| Non-current assets: | ||||||||
| Property and equipment, net | ||||||||
| Right of Use Asset | ||||||||
| Deferred tax assets | ||||||||
| Total non-current assets | ||||||||
| Total assets | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Short-term borrowings | ||||||||
| Accounts payable | ||||||||
| Accrued expenses and other payables | ||||||||
| Advances from customers | ||||||||
| Accrued payroll and related liabilities | ||||||||
| Lease Liabilities- current | ||||||||
| Amount due to related parties-current | ||||||||
| Deferred revenues | ||||||||
| Income tax payable | ||||||||
| Other liabilities | ||||||||
| Total current liabilities | ||||||||
| Non-current liabilities: | ||||||||
| Deferred tax liability | ||||||||
| Other long-term liabilities | ||||||||
| Long-term payable | ||||||||
| Non-current liabilities | ||||||||
| Total non-current liabilities | ||||||||
| Total liabilities | ||||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Ordinary shares | ||||||||
| Additional paid-in capital | ||||||||
| Subscription receivables | ( | ) | ( | ) | ||||
| Statutory reserve | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Including :Minority interests | ( | ) | ( | ) | ||||
| Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
| Total shareholders’ equity | ( | ) | ( | ) | ||||
| Total liabilities and shareholders’ equity | ||||||||
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BORQS TECHNOLOGIES, INC.
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands of US dollar (“US$”), unless otherwise stated)
| For the six months ended June 30, | ||||||||
| 2022 | 2023 | |||||||
| US$ | US$ | |||||||
| Net revenues: | ||||||||
| Software | ||||||||
| Hardware | ||||||||
| Total net revenues | ||||||||
| Cost of revenues | ||||||||
| Software | ( | ) | ( | ) | ||||
| Hardware | ( | ) | ( | ) | ||||
| Total cost of revenues | ( | ) | ( | ) | ||||
| Total gross (loss) profit | ||||||||
| Operating expenses: | ||||||||
| Sales and marketing expenses | ( | ) | ( | ) | ||||
| General and administrative expenses | ( | ) | ( | ) | ||||
| Research and development expenses | ( | ) | ( | ) | ||||
| Total operating expenses | ( | ) | ( | ) | ||||
| Operating income (loss) | ( | ) | ( | ) | ||||
| Interest income | ||||||||
| Interest expense | ( | ) | ( | ) | ||||
| Other income | ||||||||
| Other expense | ( | ) | ( | ) | ||||
| Foreign exchange income (loss) | ||||||||
| Government grant | ||||||||
| Income (loss) from continuing operations, before income taxes | ( | ) | ( | ) | ||||
| Income tax expense | ||||||||
| Net income (loss) from continuing operations | ( | ) | ( | ) | ||||
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Summary discussions on the results of the first half of 2023.
Geographically, our customers were mainly from China, India, U.S, and Europe. For the interim period ended June 30, 2023, our revenue from customers with their headquarters located in China, India, U.S and Europe accounted for 30%, 29%, 24% and 16% respectively.
The table below shows the reconciliation of EBITDA and Adjusted EBITDA from the US-GAAP net losses for the interim period ended June 30, 2023 and June 30, 2022 respectively.
| For the six months ended June 30, | ||||||||
| 2022 | 2023 | |||||||
| Net income (loss) from continuing operations | (5,272 | ) | (28,801 | ) | ||||
| Interest | (154 | ) | (3,571 | ) | ||||
| Depreciation and Amortization | (649 | ) | (303 | ) | ||||
| EBITDA | (4,469 | ) | (24,927 | ) | ||||
| Litigation expenses | (999 | ) | (74 | ) | ||||
| Gains or losses on foreign exchange | 8 | 286 | ||||||
| Non-operating income or expense | (930 | ) | 17 | |||||
| Share-based compensation or expense | (970 | ) | (23,409 | ) | ||||
| Adjusted EBITDA | (1,578 | ) | (1,747 | ) | ||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| BORQS TECHNOLOGIES INC. | ||
| (registrant) | ||
| Dated: December 27, 2023 | By: | /s/ Henry Sun |
| Henry Sun | ||
| Chief Financial Officer | ||
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