Jingbo Technology, Inc. SEC 10-K Report

Jingbo Technology, Inc., a Nevada holding company operating primarily in mainland China through its subsidiaries and variable interest entities (VIEs), has released its annual Form 10-K report. The company specializes in smart parking solutions, leveraging modern technologies to enhance urban parking management. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the evolving regulatory environment.

Financial Highlights

• Net Revenues: $2.14 million, reflecting an increase from the previous year due to the introduction of winery sales.
• Gross Loss: $0.40 million, a decrease from the prior year, primarily due to increased revenue from new income streams.
• Operating Loss: $5.49 million, increased from the previous year, driven by higher selling and marketing expenses.
• Net Loss: $6.02 million, compared to $5.48 million in the previous year, attributed to increased operating expenses.
• Loss per Common Share: Basic and Diluted: $0.05, reflecting the impact of the reverse stock split and increased net loss.

Business Highlights

• Corporate Structure and Operations: Jingbo Technology operates as a Nevada holding company with its primary operations conducted in mainland China through its subsidiaries and VIEs. The company uses a VIE structure to comply with Chinese regulations, allowing it to control and receive economic benefits from its operations in China without direct equity ownership.
• Smart Parking Solutions: The company specializes in smart parking projects, mobile applications, and cloud platform innovations. Its platform supports online payment of parking fees and seamless access to parking spaces, enhancing the user experience. The company leverages modern technologies such as the Internet of Things, big data, and cloud computing to manage urban parking resources.
• Geographical Performance: Jingbo Technology's operations are primarily based in Zhejiang, China, with projects in multiple cities. The company has expanded its smart parking projects to more than twenty cities, with over 5,000 parking lots and 4 million users.
• Business Model and Revenue Streams: The company derives revenue from parking operations, business model design, platform user accumulation, hardware sales, and software development. It also engages in e-commerce and membership sales through its Any-e platform, which integrates various services for car owners.
• New Product and Platform Developments: The Any-e Life platform includes a smart city cloud platform, parking management system, and merchant system, among others. The platform aims to create a digital ecosystem for smart parking and urban management.
• Future Outlook: Jingbo Technology aims to expand its smart parking solutions globally, with plans to enter Asian and European markets within the next three years. The company is focused on building a smart digital parking cloud platform and constructing intelligent cities worldwide.
• Franchising and Partnership Policies: The company has established franchising policies for regional partners, joint parking lot operations, platform merchant franchising, and VIP user engagement. These policies are designed to expand its market presence and enhance user engagement.
• Competitive Advantages: Jingbo Technology boasts significant advantages in development strategy, technology, and business model. It has proprietary smart parking software and a professional team to support its operations and growth.

Strategic Initiatives

• Share Exchange Agreement: Jingbo Technology has undertaken a share exchange agreement with Intellegence Parking, resulting in the acquisition of 100% ownership interest in Intellegence. This transaction was accounted for as a recapitalization, positioning Intellegence as the accounting acquirer.
• Acquisition of Xinghe: The company completed the acquisition of Xinghe, issuing 550,000,000 shares of common stock to Hangdu Technology Limited in exchange for all issued and outstanding shares of Xinghe. These strategic moves are aimed at expanding the company's footprint in smart parking projects and digital content creation.
• Capital Management: The company conducted a reverse stock split at a ratio of 1-for-200, reducing the number of issued and outstanding shares to 5,315,412. This was followed by a change in the fiscal year end from May 31 to the last day of February. Jingbo Technology also engaged in equity financing and secured interest-free loans from related parties to support its working capital needs. The company reported a net cash used in operating activities of $1,325,190 and net cash provided by financing activities of $512,117 for the year ended February 28, 2025.
• Future Outlook: Management has expressed substantial doubt about the company's ability to continue as a going concern due to significant net losses and a working capital deficit. To address these challenges, the company plans to implement strategies to grow its business and generate substantial revenue, while controlling operating costs. The company is exploring equity financing, other available sources of financing, and financial support from related parties to meet its liquidity needs. There is no assurance that these plans will be successful or that additional financing will be available on commercially reasonable terms.

Challenges and Risks

• Regulatory Risks: Jingbo Technology operates through a VIE structure in mainland China, which poses significant risks due to the uncertainty of the interpretation and application of Chinese Mainland laws and regulations. The company does not have direct ownership of its operating entities in China but relies on contractual arrangements to control and receive economic benefits. This structure is subject to risks of non-compliance with Chinese regulations, potential sanctions, and the possibility of the Chinese government disallowing the VIE structure, which could materially affect operations and the value of securities.
• Regulatory Scrutiny: The company faces substantial regulatory risks due to its operations in China. The Chinese government has significant oversight and discretion over business operations, and recent regulatory actions have increased scrutiny on data security, foreign investment, and overseas listings. The VIE structure may be deemed illegal, leading to loss of control over operations. Additionally, changes in Chinese laws, such as the PRC Foreign Investment Law, could require restructuring of corporate governance, affecting business operations and financial conditions.
• Foreign Exchange Controls: The company is exposed to risks related to foreign exchange controls and currency conversion restrictions, which may limit its ability to use proceeds from overseas offerings to fund operations in China. Furthermore, the potential for increased scrutiny by Chinese tax authorities on contractual arrangements could result in additional tax liabilities.
• Market Risks: The company is subject to market risks related to foreign currency exchange rate fluctuations, which could adversely affect financial results. The Renminbi's value against the U.S. dollar is unpredictable, and significant revaluation could impact the company's financial position and the value of its securities. Additionally, the company faces risks from potential delisting in the U.S. if the PCAOB is unable to inspect its auditors, which could affect its ability to raise capital and the liquidity of its securities.

SEC Filing: Jingbo Technology, Inc. [ SVMB ] - 10-K - Jun. 12, 2025