Executive Summary

Q3 2016 was a transition quarter with no continuing revenue and a small operating loss as ALTB pivoted from its former U.S. used-auto business to skincare/cross‑border e‑commerce via the acquisition of BKG International (BKGI) on Oct 27, 2016 .
Reported Q3 total net loss was $0.01M (–$14.7K), vs. –$69.5K in Q2 (driven by discontinued operations) and –$6.3K in Q3’15; diluted EPS was $(0.00) in Q3, $(0.02) in Q2, and $(0.00) in Q3’15 .
The 8‑K details BKGI as the operating platform: 9M’16 revenue of $0.0006M and net loss of –$0.47M as operations ramped, with pro forma consolidated 9M’16 loss –$0.56M, highlighting early-stage investment needs .
Going‑concern risk persists given minimal revenues and accumulated deficits; management emphasizes focus on skincare/e‑commerce and expects low margins in the development stage .
No earnings call transcript or sell‑side consensus estimates were available; near‑term stock narrative hinges on successful integration and funding following the Oct 27 acquisition and small post‑quarter $40.5K raise .

What Went Well and What Went Wrong

What Went Well
- Strategic pivot completed: ALTB acquired 100% of BKGI for $35K on Oct 27, 2016, ending shell status and establishing an operating base in HK/China beauty and cross‑border e‑commerce .
- Defined go‑to‑market: Retail shop in a prime Hong Kong area targeting mid‑to‑upper segment; China online channel via WeChat with zero‑inventory model to limit fixed costs .
- Management commitment to sector: “In view of great potential of the skincare, cosmetics and healthcare products business, ALTB will dedicate efforts to focus on these products. The management expects that the sale of these products will contribute good profits” .
What Went Wrong
- No continuing revenue in Q3 and ongoing losses; Q3’16 net loss –$14.7K, with 9M BKGI net loss –$466.1K as operations ramped .
- Going‑concern flag and internal control weaknesses; accumulated deficit and minimal cash at 9/30/16 ($0 cash, $(14.7)K equity) raise financing risk .
- Highly competitive markets (HK beauty retail, China e‑commerce) with entrenched incumbents and need for significant promotion; management guides to “very low profit margins” in early stages .

Financial Results

Headline quarterly results (Total company basis)

Metric	Q3 2015	Q2 2016	Q3 2016
Revenue ($USD)	$0	$0	$0
Net Income (Loss) ($USD)	$(6,251)	$(69,451)	$(14,704)
Diluted EPS ($USD)	$(0.00)	$(0.02)	$(0.00)
Operating Expenses – Continuing ($USD)	—	$0	$14,704

Balance sheet snapshots

Metric	Mar 31, 2016	Jun 30, 2016	Sep 30, 2016
Cash ($USD)	$64,821	$0	$0
Inventory ($USD)	$59,640	$0	$0
Current Liabilities ($USD)	$54,810	$0	$14,704
Stockholders’ Equity ($USD)	$69,651	—	$(14,704)

BKGI (acquired operating entity) KPIs (unaudited)

Metric	9M 2015	9M 2016
Revenue ($USD)	$0	$640
Cost of Sales ($USD)	$0	$453
SG&A ($USD)	$94,039	$456,827
Net Loss ($USD)	$(94,039)	$(466,070)
Cash at Period End ($USD)	$207 (12/31/15)	$37,429 (9/30/16)
Current Liabilities ($USD)	$281,717 (12/31/15)	$803,513 (9/30/16)

Pro forma consolidated (ALTB + BKGI) – 9M

Metric	9M 2015	9M 2016
Revenues ($USD)	$0	$640
Net Loss ($USD)	$(125,290)	$(561,985)

Notes: “—” indicates not disclosed. Q2 and Q3 2016 reflect cessation of legacy auto business (discontinued operations) and limited continuing ops activities .

Guidance Changes

No formal quantitative guidance was provided in the Q3 2016 10‑Q or the Nov 2, 2016 8‑K.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2016/2017	None	None	Maintained (no guidance)
Margins	FY 2016/2017	None	“Very low profit margins in the development stage” (qualitative)	—
Capex/OpEx	FY 2016/2017	None	Expect significant advertising/promotion to build user base (qualitative)	—

Earnings Call Themes & Trends

(No earnings call transcript was located for Q3 2016; themes below draw from 10‑Qs and the 8‑K.)

Topic	Previous Mentions (Q1 2016, Q2 2016)	Current Period (Q3 2016)	Trend
Business model transition	Q1: U.S. used‑auto operations ongoing; Q2: Disposed of sole subsidiary June 1, 2016	Pivot completed; Oct 27 acquisition of BKGI; no longer a shell	Transition executed
Financing/Going concern	Q1/Q2: Accumulated deficit; going‑concern risk	Persisting; zero cash at 9/30/16; post‑quarter $40.5K Reg S raise	Needs capital
Market strategy (HK/China beauty/e‑com)	Q2: WeChat channel, zero‑inventory strategy	Reiterated; prime HK retail location; social‑media led marketing	Consistent execution plan
Profitability outlook	—	Expect “very low profit margins” in development stage	Margin pressure near‑term
Internal controls/corporate governance	Q1/Q2: Disclosure controls not effective	Not effective in Q3; auditor change noted earlier	Ongoing remediation needed

Management Commentary

Strategic focus: “In view of great potential of the skincare, cosmetics and healthcare products business, ALTB will dedicate efforts to focus on these products. The management expects that the sale of these products will contribute good profits” .
Early‑stage margin profile: “As a new entrant to this e‑commerce industry, we expect to incur significant… advertising and promotion… As a result, we expect to operate with very low profit margins in the development stage” .
Go‑to‑market approach: HK retail in prime area; China e‑commerce through WeChat with zero‑inventory and third‑party logistics to keep fixed costs low .

Q&A Highlights

No earnings call transcript was filed or found for Q3 2016. All commentary above derives from the Q3 2016 10‑Q and the Nov 2, 2016 8‑K .

Estimates Context

Wall Street consensus estimates (S&P Global) were not available for ALTB for Q3 2016 (micro‑cap OTC issuer with limited coverage). As a result, no comparisons versus consensus EPS or revenue can be made at this time.

Key Takeaways for Investors

This is a restructuring story: legacy U.S. auto operations exited in June; the Oct 27 acquisition of BKGI establishes a new cosmetics/e‑commerce platform in HK/China .
Near‑term financials will reflect start‑up dynamics: minimal revenue, heavy SG&A, and negative earnings as customer acquisition ramps; BKGI 9M’16 net loss was –$0.47M on $0.0006M revenue .
Liquidity is tight: $0 cash and $(14.7)K equity at 9/30/16; a $40.5K post‑quarter equity raise is small relative to needs, and going‑concern risk remains elevated .
Execution priorities: prove product‑market fit (WeChat channel), scale traffic with efficient CAC, and secure larger financing to support marketing and working capital .
Monitoring catalysts: additional capital raises, HK store performance, China online GMV traction, and any improvements in disclosure controls/internal controls .
Valuation currently lacks support from earnings; the narrative/stock reaction will hinge on evidence of revenue ramp and funding visibility rather than quarterly beats/misses (no estimates available).

Sources

Q3 2016 Form 10‑Q (filed Oct 28, 2016) .
8‑K (filed Nov 2, 2016) including Item 2.01/2.02, BKGI historicals, and pro forma financials .
Q2 2016 Form 10‑Q (filed Aug 19, 2016) .
Q1 2016 Form 10‑Q (filed May 20, 2016) .

Alpine Auto Brokers Inc. (ALTB)·Q3 2016 Earnings Summary