|SEVEN STARS CLOUD GROUP, INC. filed this Form 10-Q on 11/13/2017|
Revenue for the nine months ended September 30, 2017 was approximately $106.7 million, as compared to $4.4 million for the same period in 2016. The increase in revenue of approximately $102.3 million was attributable to the new consumer electronics business line acquired in January 2017, and to a lesser extent, one-time consulting services that we provided to certain customers. These revenues were partially offset by the decrease of our legacy YOD business, which is in line with our business strategy transition.
Our gross profit for the nine months ended September 30, 2017 was approximately $5.8 million, as compared to $1.8 million during the same period in 2016. Gross profit ratio for the six months ended September 30, 2017 was 5.5%, a decrease from 40.4%, as the Wecast Services business, which currently is engaged mostly in lower margin electronics, is still in its relative infancy and the business service offerings as well as profit-sharing arrangements with a growing range of suppliers are in transition.
Selling, general and administrative expenses
Our selling, general and administrative expenses for the nine months ended September 30, 2017 increased approximately $1.5 million, or 23%, as compared with the amount for the nine months ended September 30, 2016.
The majority of the increase was due to 1) the increase of our sales and marketing expense to introduce and promote of our business models to various potential investors and business partners, as well as to promote Wecast Services business; and 2) financial advisory expenses that were paid to independent professional companies to assist us in being able to contact and negotiate with more business partners.