Greenpro Capital(GRNQ) - 2020 Q4 - Annual Report

Revenue Performance - Total revenue decreased to $2,254,811 in 2020 from $4,484,822 in 2019, a decline of approximately 49.7% primarily due to reduced business service revenue [203]. - Service revenue was $1,876,954 in 2020, down from $4,201,601 in 2019, reflecting a decrease of about 55.3% attributed to fewer service orders during the COVID-19 pandemic [204]. - Rental revenue increased to $124,128 in 2020 from $93,699 in 2019, representing a growth of approximately 32.5% [205]. - Revenue from the sale of properties was $253,729 in 2020, up from $189,522 in 2019, indicating an increase of about 33.8% [206]. Operating Expenses and Losses - Total operating expenses were $5,160,386 in 2020, down from $6,075,907 in 2019, a reduction of approximately 15.1% [208]. - Loss from operations increased to $2,905,575 in 2020 compared to $1,591,085 in 2019, reflecting a worsening of approximately 82.7% [202]. - Net loss for 2020 was $3,752,953, significantly higher than the net loss of $1,349,478 in 2019, marking an increase of about 177.5% [219]. - General and administrative expenses were $4,560,973 in 2020, slightly decreased from $4,675,050 in 2019, a decline of about 2.4% [213]. - Interest expenses rose sharply to $1,144,530 in 2020 from $103,396 in 2019, an increase of approximately 1003.5% [215]. - Related party service income decreased to $250,246 in 2020 from $1,977,186 in 2019, a decline of about 87.4% [222]. Financial Position - As of December 31, 2020, the company reported a working capital deficiency of $3,411,175, an increase from $2,078,026 as of December 31, 2019 [229]. - The company's total current assets decreased to $1,612,113 as of December 31, 2020, down from $1,798,245 in 2019, with cash and cash equivalents at $1,086,753 [229]. - The company incurred a net loss of $3,752,953 for the year ended December 31, 2020, compared to a net loss of $1,349,478 in 2019, primarily due to a decrease in service revenue of $2,324,647 [230]. - Net cash used in operating activities was $1,567,758 for the year ended December 31, 2020, compared to $1,433,371 in 2019 [234]. - The company reported net cash provided by financing activities of $1,502,735 for the year ended December 31, 2020, significantly up from $381,798 in 2019 [237]. - The company’s total current liabilities increased to $5,023,288 as of December 31, 2020, compared to $3,876,271 in 2019 [229]. Asset Management and Concerns - The company conducted its annual impairment evaluation for long-lived assets, which include real estate and equipment, in accordance with ASC 360 [226]. - The company issued 4,444,444 shares of restricted Common Stock at a price of $0.90 per share, totaling $4,000,000, to acquire a 4% interest in a natural blue sapphire [239]. - The company has raised substantial doubt about its ability to continue as a going concern due to ongoing operating losses and cash usage [230]. - Non-cash expenses totaled $2,060,955 for the year ended December 31, 2020, primarily from depreciation and amortization [234].