• 51% increase in Gross Profit;
• 471% Increase in Income from Operations; and
• 176% increase in Net Income.

Value Exchange International, Inc. (OTCQB: VEII), a provider of information technology services for businesses in China, Hong Kong, Singapore and Manila, today announced improving select financial results for the first quarter of 2021. All financial numbers are in U.S. dollars.

First Quarter 2021 Highlights:

· Gross profit of $737,540 or 33.5% of net revenues, an increase of $249,384 or 51.1%. over first quarter 2020;

· Income from operations totaled $305,381, an increase of $251,895 or 471.0% over first quarter 2020;

· Net income of $376,611, an increase of $240,143 or 176.0% over first quarter 2020; and

· Basic and diluted net income per share was $0.01 for the three months ended March 31, 2021.

Chief Executive Officer Kenneth Tan said, “Our company continues to make progress in improving key financial results. With the recent investment by GigWorld, Inc., a public company affiliated with entrepreneur Heng Fai Ambrose Chan, in our company, we are exploring ways to expand strategic relationships as part of our ongoing efforts to improve our business and financial performance as well as expand our information technology offerings and geographic markets. The previously announced beta test for smart vending machines in a major Chinese gas service station chain is another example of our efforts to expand our customer base and service-product offerings.”

Financial Summary

• Net revenue: Our net revenues were $2,203,772 for first quarter 2021, as compared to $8,202,911 for the same period in 2020, a decrease of $5,999,139 or 73.1%. This decrease was due in part to the Company focusing on higher profit work and not the pursuit of lower profit work that increased gross revenues without providing higher net revenues as well as the usual and customary fluctuations in customer demand for Company services. The Company is seeking to grow both its gross and net revenues, but with the emphasis on seeking higher profit margin work.

• Gross profit: Gross profit for first quarter 2021 was $737,540 or 33.5% of net revenues, as compared to $488,156 or 6.0% of net revenues for the same period in 2020, an increase of $249,384 or 51.1%.

• Income from operations: Our income from operations totaled $305,381 for first quarter 2021, as compared to $53,486 for the same period in 2020, an increase of $251,895 or 471.0%.

• Net income: We had a net income of $376,611 for the first quarter of 2021, compared to $136,468 for the same period in 2020, an increase of $240,143 or 176.0%.

• Basic and diluted net income per share was $0.01 for first quarter of 2021.
  
  
• Key Financial Ratios:

Other News:

Conference Calls. We intend to commence web cast and conference calls to discuss quarterly and annual financial results with the second quarter financial results in 2021.

Dividend Payment Date. Expected Date for payment of previously announced and Company’s first payment of a cash dividend ($0.005 per share of Common Stock for record holders of Common Stock as of April 16, 2021) has been moved from an expected date of May 15, 2021, to the latter half of June 2021, due to the need to engage a new payment agent capable of handling the distribution of the cash dividend and related administrative requirements associated with the new payment agent. The expected new date for payment of the cash dividend will be announced as soon as arrangements with the payment agent have been finalized.

About Value Exchange: Company is a U.S. public holding company headquartered in Hong Kong, with offices in Shenzhen, Guangzhou, Shanghai, and Beijing China, Manila and Kuala Lumpur. Company provides integrating, market-leading Point-of-Sale/Point-of-Interaction (POS/POI), Merchandising, CRM & Reward, Locational Based (GPS & Indoor Positioning System (IPS)) Marketing, Customer Analytics, and Business Intelligence solutions. Company’s retail POS solutions process tens of millions of transactions per year at approximately 20,000 retail outlets in Asia.

Forward-looking Statements: This press release may contain forward-looking statements regarding Value Exchange International, Inc. (the "Company") within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the likelihood that the Company will continue to deliver and financially benefit from its core information technology services business; the financial outlook of the Company; the general ability of the Company to achieve its commercial objectives, including the focus on higher profit work; the business strategy, plans and objectives of the Company and its subsidiaries, including its ability to mitigate the future impact of COVID-19 pandemic and any future mutations of the COVID-19 coronavirus on the Company's business operations; ability of Company to find affordable, adequate funding for expansion of Company’s business and markets; ability of Company to properly manage and integrate any future acquisitions or manage any expanded operations; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," “hopes,” "anticipates," "seeks," "should," "could," "intends," or "projects" or similar and variant expressions, and involve known and unknown risks and uncertainties. These statements are based upon the Company's current expectations and speak only as of the date hereof. Financial performance in one period does not necessarily mean continued or better performance in the future. The Company's actual results in any endeavor may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, which factors or uncertainties may be beyond our ability to foresee or control. Other risk factors include the status of the Company's common stock as a "penny stock" and those listed in other reports posted on The OTC Markets Group, Inc. website and filed with the Securities and Exchange Commission.

VALUE EXCHANGE INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

VALUE EXCHANGE INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

VALUE EXCHANGE INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

View source version on businesswire.com: https://www.businesswire.com/news/home/20210521005310/en/