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Newegg Commerce, Inc. Provides Information In Accordance With Disclosures Made By Controlling Shareholder Hangzhou Lianluo

LOS ANGELES–(COMMERCIAL THREAD) – On July 14, 2021, Hangzhou Lianluo Interactive Information Technology Co., Ltd. (“Hangzhou Lianluo”) issued a statement via a public filing in China stating that it believes the gross value of the goods (“GMV”), Newegg Commerce, Inc. (the “Company”, “we”, “us” or “us”) net sales and net income for the six-month period ended June 30, 2021 are expected to increase relative to GMV, net sales and to net profit. for the same period in 2020. Hangzhou Lianluo is the Company’s majority shareholder and is listed on the Shenzhen Stock Exchange. Hangzhou Lianluo made this deposit in order to comply with the rules and regulations of the Shenzhen Stock Exchange. The Company therefore provides this information in accordance with the rules and regulations applicable to the Company and to ensure wide dissemination of the disclosures made by Hangzhou Lianluo concerning the Company.

Note regarding preliminary estimated financial results

The preliminary estimates of the Company’s financial performance included in this press release are based solely on information available to the Company at the date hereof and are inherently uncertain and subject to change. The Company has not yet completed its financial accounting closing procedures for the first half of 2021. The preliminary estimates contained in this press release are forward-looking statements. The actual results of the Company remain subject to the completion of the final management review, other closing procedures of the Company and review procedures performed by the registered independent accounting firm of the Company. Therefore, you should not place undue reliance on preliminary estimated financial data, which may differ materially from actual results for the first half of 2021.

These preliminary estimates do not constitute a complete statement of the Company’s consolidated financial results for the first half of 2021 and should not be considered a substitute for the complete financial statements prepared in accordance with GAAP (as defined below). In addition, these preliminary estimates for the first half of 2021 are not necessarily indicative of the results to be achieved in a future period. The actual financial results of the Company for the first half of 2021 may differ from these preliminary estimates due to the completion of its financial close procedures, final adjustments and other developments that may arise between the date hereof and the time when financial information for the first half of 2021 is finalized.

The preliminary estimated financial data included in this press release has been prepared by the management of the Company and is the responsibility of the latter. The Company’s independent registered public accounting firm has not audited, reviewed, examined, compiled or applied the agreed procedures with respect to these preliminary estimated financial data, and has expressed no opinion or in any other way. insurance against them.

Note on equity volatility

The share price of the Company may undergo rapid and substantial increases or decreases in the foreseeable future which may not coincide with the disclosure of news or developments by or affecting us. As a result, the market price of our common shares can fluctuate significantly and can rise or fall rapidly, regardless of how our business evolves. Overall, there are various factors, many of which are beyond our control, that could adversely affect the price of our common shares or cause the price or trading volume of our common shares to fluctuate, including:

  • the impacts and ongoing developments related to the COVID-19 pandemic;

  • actual or expected changes in our results of operations, including earnings estimates and whether we are meeting market expectations for our earnings;

  • our current intention not to pay dividends or other distributions;

  • publication of research reports by analysts, the press, our shareholders and other market observers concerning us or the e-commerce industry or IT / CE segments, which may be unfavorable, inaccurate, inconsistent or not regularly disseminated;

  • changes in market interest rates which may cause buyers of our shares to demand different returns;

  • changes in market valuations of similar businesses;

  • the market reaction to any stock, debt or other additional security that we may issue in the future, which may or may not dilute the holdings of our existing shareholders;

  • additions or departures of key personnel;

  • shares of institutional or significant shareholders;

  • short-term interest in our stocks and the market’s response to such short-term interest;

  • the dramatic increase in the number of individual holders of our shares and their participation in social media platforms targeting speculative investing;

  • speculation in the press or the investment community about our business or industry;

  • strategic actions on our part or that of our competitors, such as acquisitions or other investments;

  • legislative, administrative, regulatory or other actions affecting our business, our industry, including positions taken by the Internal Revenue Service;

  • investigations, proceedings or disputes that involve or affect us;

  • the occurrence of one of the other risk factors mentioned in our registration statement on forms F-1 and 20-F; and

  • general market and economic conditions.

About Newegg Commerce, Inc.

Newegg Commerce, Inc. (NASDAQ: NEGG), headquartered in City of Industry, Calif., Is a leading technology-focused online retailer in North America and serves a global customer base in Europe, Asia -Pacific, Latin America and the Middle East. . Founded in 2001, the company provides direct sales and an online marketplace platform for computer and computer hardware, consumer electronics, automotive, gaming products and finished products. Newegg also offers a broad portfolio of technology, marketing, logistics and other partner services to help companies grow their businesses. For more information, please visit https://www.newegg.com/.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This communication contains “forward-looking statements” which involve risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections regarding the industry, business, strategy, strategic acquisitions and investments, dividend policy, financial results and condition as well as the anticipated impacts of, and the Company’s responses to, the COVID-19 pandemic. Forward-looking statements often include words such as “will”, “should”, “anticipates”, “believes”, “expects”, “plans”, “intention”, “plans”, “believes” and words and similar terms in substance in discussions of future operational or financial performance. As with any projection or forecast, forward-looking statements are inherently sensitive to uncertainty and changes in circumstances. The actual results of the Company may differ materially from those expressed or implied in its forward-looking statements. Therefore, one should not place undue reliance on forward-looking statements made by or on behalf of the Company. Important factors that could cause the Company’s actual results to differ materially from those of its forward-looking statements include government regulations, economic, strategic, political and social conditions and the following factors, which are discussed in the latest annual report of the Company on Form 20-F as filed with the Securities and Exchange Commission (the “SEC”):

  • the duration and severity of the COVID-19 pandemic and its effects on the Company’s business, financial condition, results of operations and cash flow;

  • increasing levels of competition from historical and new entrants into the Company’s markets;

  • recent and future technological changes;

  • the Company’s ability to continue to grow its business;

  • the Company’s ability to obtain hardware, software and operational support from suppliers;

  • the integrity and security of the Company’s network and information systems;

  • the impact of possible security breaches and other disruptions, including cyber attacks;

  • the inability of the Company to obtain the intellectual and property rights necessary for the operation of its activities and the risk of intellectual property claims and litigation against the Company;

  • legislative or regulatory efforts to impose new requirements on the Company’s operations and the products and services we offer;

  • provisions of the Company’s Charter, Articles of Association and British Virgin Islands law which could discourage takeovers and limit the legal forum for certain disputes;

  • unfavorable economic conditions;

  • fluctuations in the price of the Company’s shares;

  • dilution of share awards, convertible debt and potential future issues of convertible bonds and shares;

  • damage to the reputation or brand image of the Company;

  • the Company’s ability to retain key employees;

  • the Company’s ability to incur future debts;

  • the provisions of the Company’s charter which could limit the responsibilities of directors; and

  • other risks and uncertainties detailed from time to time in documents filed by the Company with the SEC, including, but not limited to, the Company’s latest annual report on Form 20-Fas filed with the SEC.

All forward-looking statements made by the Company in this communication speak only as of the date on which they are made. The Company has no obligation and expressly disclaims any obligation, except as required by law, to update or modify its forward-looking statements, whether as a result of new information, subsequent events or otherwise.


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