Jingbo Technology Reports Revenue Growth and Strategic Acquisition in Latest 10-Q Filing

Jingbo Technology Inc. reported significant financial developments in its latest 10-Q filing for the three and nine months ended November 30, 2024. The company generated net revenues of $784,206 for the third quarter, a substantial increase from $305,559 in the same period last year. For the nine-month period, revenues rose to $1,488,982, compared to $1,110,231 in the prior year. Despite the revenue growth, the company faced a gross loss of $57,233 for the quarter and $562,329 for the nine months, although these figures represent improvements from losses of $243,890 and $870,943, respectively, in the previous year.

The filing highlighted a notable reduction in operating expenses, which totaled $708,609 for the third quarter, down from $1,085,672 a year earlier. This decrease was primarily driven by lower selling and marketing expenses, which fell to $9,992 from $42,019, and a reduction in general and administrative expenses from $949,461 to $588,216. Research and development expenses increased slightly to $110,401 from $94,341, reflecting ongoing investment in product development. The net loss for the third quarter was reported at $726,432, a significant reduction from $1,352,372 in the same quarter of the previous year.

Strategically, Jingbo Technology has made significant organizational changes, including the acquisition of Hangdu, which has become the largest shareholder of the company, holding approximately 99% of the issued and outstanding shares. This acquisition, completed on December 9, 2024, is expected to enhance the company's capabilities in the smart parking sector, particularly through its subsidiary, Shaoxing Keqiao Zhuyi Technology Co., which specializes in intelligent parking projects. The company also reported a loss on the disposal of subsidiaries, contributing to the overall increase in net loss for the nine-month period.

Operationally, the company has seen an increase in customer engagement, particularly through its smart parking solutions. The revenue growth attributed to the acquisition of Leshan, which was not part of the previous year's operations, indicates a successful expansion into new markets. The company’s total deficit increased to $28,329,805 as of November 30, 2024, compared to $24,379,757 at the end of the previous fiscal year, raising concerns about its ability to continue as a going concern without additional financing.

Looking ahead, Jingbo Technology's management expressed optimism about future growth driven by its strategic acquisitions and operational improvements. However, they acknowledged the ongoing challenges related to liquidity and the need for additional financing to support operations. The company’s ability to generate sufficient recurring revenues remains critical to its long-term viability, and management is actively seeking ways to enhance its financial position.