Sharing Economy International Inc.

Overview

Sharing Economy International Inc. develops sharing-economy platforms and related rental businesses. It owns and operates ECrent.com, an online rental classifieds platform that connects businesses and individuals who offer rental products and services with consumers. The platform includes a web portal, mobile apps, a central database, and a matching system that uses product/service criteria, geography, and browsing behavior to match supply and demand. The platform serves B2B, B2C, and C2C segments and aims to consolidate rental information across geographies and categories.

Revenue model

• Revenue is derived from the supply side.
• Supply-side listing fees:
  • HK$50,000 per month for unlimited postings.
  • US$2,500 per year for an online rental store (microsite) with unlimited postings and a branded storefront.
• Microsites are intended to provide recurring revenue through ongoing traffic and branding.
• The company also provides rental services for some rare tools/items and venue locations in Hong Kong.
• The company generated minimal revenues from its sharing-economy initiatives in 2021.

Corporate history and structure

• Incorporated in Nevada; previously named Malex, Inc. and renamed several times to Sharing Economy International Inc.
• Received a Nasdaq staff determination in 2018 and was delisted from Nasdaq; currently trades on OTC Markets under the symbol SEII.
• On December 27, 2019, the company entered a Share Exchange Agreement with Peak Equity International Limited. Peak Equity shareholders received 7,200,000,000 shares of common stock, and Peak Equity became the majority owner (approximately 99.7% of issued and outstanding shares).
• Following the exchange, Peak Equity became a wholly owned subsidiary. The company plans to amend its charter to authorize additional shares to issue to Peak Equity shareholders (approximately 7,018,360,787 shares) to complete the ownership transfer.
• On January 1, 2023, certain interests in the VUL group (excluding Vantage Ultimate Limited and Sharing Economy Investment Limited) were disposed of as part of a corporate restructuring; those entities were deconsolidated from the company’s consolidated financial statements.

Organization and subsidiaries

• Sharing Economy International Inc. (holding company)
• Vantage Ultimate Limited (British Virgin Islands) — 100% owned
• Sharing Economy Investment Limited (British Virgin Islands) — 100% owned by Vantage, provides management services

Geography and regulatory exposure

• Headquarters and primary executive operations are in Hong Kong. The parent company is incorporated in Nevada with operations in Hong Kong and the PRC.
• The company highlights regulatory, tax, currency, and foreign ownership risks related to doing business in Hong Kong and the PRC, and potential impacts from changes to holding structures or regulatory regimes.

People and facilities

• Employees: As of December 31, 2023, the company had two employees and several consultants engaged.
• Principal office: No. 85 Castle Peak Road, Castle Peak Bay, Tuen Mun, New Territories, Hong Kong.

Financial snapshot (as of December 31)

• Cash and cash equivalents: 2023: $1,557; 2022: $4,275
• Total assets: 2023 (restated): $18,080,853; 2022 (restated): $2,983,907
• Total liabilities: 2023: $3,933,360; 2022: $17,746,135
• Total stockholders’ equity (deficit): 2023: $14,147,493; 2022: $(14,762,228)
• Net income for year ended December 31, 2023: one-off net income of $25.6 million; management reports this as a non-recurring item
• Going concern: The auditors’ report expresses substantial doubt about the company’s ability to continue as a going concern for twelve months from the report date; the consolidated financial statements are prepared on a going-concern basis.
• Short-term debt: As of December 31, 2023, the company had no outstanding short-term bank loans due to the disposal of subsidiaries.

Intellectual property

The company develops and owns the intellectual property and know-how required to develop and operate the ECrent.com platform.

Online presence

• Corporate site: www.seii.com
• Platform site: www.ecrent.com

Current operations and capital needs

The company is pursuing growth opportunities in its sharing-economy initiatives, which are in early stages and capital-intensive. Near-term capital needs are estimated at approximately $2 million over 18–24 months. Funding is expected to come from existing shareholder loans or bank financing.