What Do ABQQ’s Risk Factors Tell Investors?

AB International Group (ABQQ) is an intellectual property (IP) and movie, TV show and music investment and licensing company. It is focused on the creation of a smartphone video mix application and social video sharing platform.

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Let’s take a look at the company’s financial performance and what has changed in its key risk factors that investors should be aware of.

On the back of higher movie box office revenue, its Q3 revenue increased to $192.5 thousand from $76.8 thousand a year ago. This jump in revenue was outpaced by costs and expenses.

Cost of revenue increased to $423.7 thousand against $42.2 thousand a year ago, mainly due to higher amortization of movie broadcast rights. Its general and administrative expenses increased to $443.3 thousand from $185.8 thousand a year ago due to increased consulting fees, costs of issuing preference shares, wages, and depreciation expenses.

Consequently, the net loss widened to $843.2 thousand against a net loss of $315.9 thousand a year ago. (See AB International stock chart on TipRanks)

Looking ahead, the company hopes to increase its top line by achieving higher subscriptions for ABQQ.tv, its video streaming service, and box office revenue.

Now, let’s look at what has changed in the company’s key risk factors.

According to the new Tipranks Risk Factors tool, ABQQ’s two main risk categories are Finance & Corporate and Legal & Regulatory, which account for 58% and 21%, respectively, of the total 19 risks identified. Since May, the company has added one new risk factor.

Under the Legal & Regulatory risk category, the company highlights that neither it is a party to any material legal proceeding at present nor aware of any pending legal proceedings in which its officers, directors, or any beneficial holders of 5% or more have a material interest against it.

The Finance & Corporate risk factor’s sector average is at 43%, compared to ABQQ’s 58%. Shares are up 8% over the past year.