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Nisun International Reports Unaudited Financial Results for the First Half of 2021

  • Friday, September 24, 2021, 8:00 pm
  • ACROFAN=PRNewswire
  • mediainquiries@prnewswire.com

SHANGHAI, Sept. 24, 2021 /PRNewswire/ -- Nisun International Enterprise Development Group Co., Ltd ("Nisun" or the "Company") (Nasdaq: NISN), a provider of innovative comprehensive solutions through the integration of technology, industry, and finance, today announced its unaudited financial results for the six months ended June 30, 2021.


Mr. Xiaoyun Huang, Chairman and Chief Executive Officer of Nisun International, commented, "We are pleased to announce our remarkable achievements in the first half of 2021. Cooperating with major players across various industries, we have extended and expanded our business into different fields while achieving positive results and receiving endorsements from the market. We are delighted to see the Company's total revenue increased almost twofold in the first half of this year. In addition, our record half-year operating performance also included new revenue records in two of our core business segments and net income reaching a new all-time high. As a result of our significant progress this year, we're optimistic about our growth and will continue our work while incorporating our values to provide efficient, flexible, and customized supply chain financing solutions to our clients."


Financial Results for the Six Months Ended June 30, 2021


All comparisons made on a year-over-year ("yoy") basis.


Revenues


In the first half of 2021, total revenue increased by 188.9% to $38.9 million from $13.5 million in the six months ended June 30, 2020.


  • Revenues generated from the Small and Medium Enterprise (SME) financing solutions business increased by 176.1% to $36.6 million from $13.3 million in the prior year period, primarily due to increased demand from SME customers seeking alternative financing solutions to bank financing.
  • Revenue generated from supply chain solutions was $2.3 million, compared to $0.2 million in the prior year period. The Company achieved total supply chain transaction volume of approximately $268.3 million (RMB1,783.9 million) in the first half of 2021, compared to $7.5 million (RMB52.4 million) in the prior year period. The Company expects this growth trend will continue in the second half of 2021.

For the six months ended June 30,






Changes



Changes




2021



%




2020



%




($)



(%)



Small and Medium Enterprise
   financing solutions


$


36,615,078



94


%



$


13,259,133



98


%



23,355,945



176


%


Supply chain financing solutions



2,313,136



6


%




193,783



2


%



2,119,353



1094


%


Other financing solutions



435



0


%




21,120



-


%



(20,685)



(98)


%


Total revenue


$


38,928,649



100


%



$


13,474,036



100


%



25,454,613



189


%


Cost of revenue


Cost of revenue was $20.7 million, compared to $5.5 million in the prior year period, representing an increase of 278.9%. The increase primarily attributable to increases in revenue and marketing and staff cost incurred in the first half of fiscal 2021.


Gross Profit


Gross profit increased by 127.7% to $18.3 million, from $8.0 million in the prior year period, consistent with growth in revenue. Gross margin was 46.9% and 59.5% for the six months ended June 30, 2021 and 2020, respectively. The decrease in gross margin was primarily due to the increases in direct cost and staff expenses incurred by the SME financing solutions business.


Operating Expenses 


Total operating expenses increased by 66.4% to $6.2 million from $3.7 million in the prior year period. This increase in operating expenses was primarily attributable to an increase of $1.3 million in selling expense as a result of more marketing and promotional activities in the first half of fiscal 2021 and an increase of $0.7 million in general and administrative expenses due to increased professional and staff compensation in the first half of fiscal 2021.


Net income


In the first half of fiscal 2021, the Company achieved a net income of $10.5 million, compared to net loss of $6.1 million in the same period of the prior year, primarily attributable to significant increases in revenue and gross profit from financing solution services. In the first half of 2020, the Company had a net loss of $6.1 million, mainly due to an impairment loss of $9.9 million from the discontinued equipment and engineering operations, which were subsequently disposed of in the second half of 2020.


Net income (loss) per common share


Net income per share was $0.51 in the six months ended June 30, 2021, compared to a net loss per share of $0.34 in the prior year period. The weighted average number of shares was 20,555,129 and 18,167,603 in the six months ended June 30, 2021 and 2020, respectively.


Financial Condition and Cash Flow


As of June 30, 2021, the Company had cash, cash equivalents and restricted cash of $9.9 million, a decrease from $22.2 million as of December 31, 2020. However, the Company's short-term investment was $37.7 million as of June 30, 2021, representing a significant increase from $4.7 million as of December 31, 2020.


Net cash provided by operating activities was $13.5 million in the first half of fiscal 2021, compared to $1.8 million in the first of fiscal 2020. The increase was primarily attributable to significant growth of revenue and net income in the first half of fiscal 2021.


Net cash used in investing activities was $24.8 million in the first half of 2021, primarily attributable to a net increase of $32.6 million short-term investments in wealth management products and structure deposits issued by financial institutions and commercial banks. For the first half of fiscal 2020, the Company had net cash provided by investing activities of $6.4 million, primarily due to cash acquired from business acquisition.


Net cash used in financing activities was $0.6 million in the first half of 2021, primarily due to repayments to related parties of $1.4 million. Net cash provided by financing activities was $4.4 million in the first half of 2020, primarily due to additional shareholder contribution of $4.6 million.


Recent Developments


On July 20, 2021, the Company announced that Fanlunke Supply Chain Management (Shanghai) Co., Ltd ("Fanlunke"), a subsidiary of Fintech Shanghai, has entered into a strategic collaboration agreement with Shanxi Zhongneng Shanhua Energy Co., Ltd ("Zhongneng Shanhua") to jointly develop supply chain services targeting the coal industry and accelerate the digital transformation of Zhongneng Shanhua's upstream and downstream supply chain.


On July 22, 2021, the Company announced that Fanlunke has entered into a cooperation agreement with Beijing Digital Telecom Co., Ltd. (HKEX: 06188), a subsidiary of state-owned enterprise Zhuhai Huafa Group Co., Ltd.. The two parties will cooperate in the area of retail supply chain management services to improve the efficiency and safety of the upstream and downstream retail consumer supply chain across multiple industries.


On July 27, 2021, the Company announced that Fanlunke has signed a partnership agreement with Beijing Jingdong Century Information Technology Co., Ltd, a subsidiary of JD.com, a leading technology-driven e-commerce company in China. Under this agreement, the two groups will jointly develop integrated supply chain solution services targeting the e-commerce industry.


On August 5, 2021, the Company announced that Jilin Lingang Supply Chain Management Co., Ltd,, a subsidiary of Fintech Shanghai, has entered into a cooperation agreement with the Changchun branch of China Everbright Bank Co., Ltd. ("Everbright Bank"). Under this agreement, Everbright Bank will provide comprehensive bank credit support to us for a one-year period from 2021 to 2022, fully supporting the execution of our long-term supply chain operational strategy.


On September 16, 2021, the Company announced that it has entered into a strategic cooperation agreement with Qingdao Sunshine Chengyang Financial Holding Group Co., Ltd to jointly develop supply chain services targeting the finance industry and build the "Qingdao Sunshine Nisun Supply Chain Platform."


On September 21, 2021, the Company announced that Fanlunke has entered into a strategic collaboration agreement with Shanxi Guoxin Energy Corporation Shengda Coal Co., Ltd. to jointly develop supply chain services targeting the coal industry.


About Nisun International Enterprise Development Group Co., Ltd


Nisun International Enterprise Development Group Co., Ltd (NASDAQ: NISN) is a technology-driven, integrated supply chain solutions provider focused on transforming the corporate finance industry. Leveraging its industry experience, Nisun is dedicated to providing professional supply chain solutions to Chinese and foreign enterprises and financial institutions. Through its subsidiaries, Nisun provides users with professional solutions for technology supply chain management, technology asset routing, and digital transformation of tech and finance institutions, enabling the industry to strengthen and grow. At the same time, Nisun continues to deepen the field of industry segmentation through industrial and financial integration, by cultivating/creating an ecosystem of openness and empowerment. Nisun has built a linked platform that incorporates supply chain, banking, securities, trust, insurance, funds, state-owned enterprises, among other businesses. Focusing on industry-finance linkages, Nisun aims to serve the upstream and downstream of the industrial supply chain while also assisting with supply-side sub-sector reform. For more information, please visit https://ir.nisun-nasdaq.com/index.html.


Cautionary Note Regarding Forward-Looking Statements


This press release contains information about Nisun's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Nisun encourages you to review other factors that may affect its future results in Nisun's registration statement and in its other filings with the Securities and Exchange Commission. Nisun assumes no obligation to update or revise its forward-looking statements as a result of new information, future events or otherwise, except as expressly required by applicable law.


Contacts:


Nisun International Enterprise Development Group Co., Ltd
Investor Relations
Tel: +86 (21) 2357-0055
Email: ir@cnisun.com


ICR, LLC
Tel: +1 203 682 8233
Email: nisun@icrinc.com


NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES


CONDENSED CONSOLIDATED BALANCE SHEETS


AS OF JUNE 30, 2021 AND DECEMBER 31, 2020


(EXPRESSED IN US DOLLARS)




June 30,



December 31,



2021



2020


ASSETS


(Unaudited)





CURRENT ASSETS:







     Cash and cash equivalents


$


9,790,363



$


22,135,310


     Restricted cash



156,843




62,947


     Short-term investments



37,670,691




4,680,843


     Accounts receivable, net



7,485,606




4,939,912


     Receivables from supply chain solutions



36,049,943




10,741,981


     Prepaid expenses and other current assets



2,267,690




971,839


     Loans to third parties - current portion



1,937,114




1,915,709


     Receivable from sale of discontinued operations



-




14,950,730


     TOTAL CURRENT ASSETS



95,358,250




60,399,271








NON-CURRENT ASSETS:







     Property and equipment, net



609,457




655,643


     Intangible assets, net



3,295,350




3,726,602


     Right-of-use assets, net



1,065,870




1,464,745


     Equity investments



440,108




484,864


     Investment in limited partnership



16,382,693




15,736,927


     Goodwill



25,439,078




25,172,407


     Deferred tax assets, net



107,920




456,370


TOTAL NON-CURRENT ASSETS



47,340,476




47,697,558


TOTAL ASSETS


$


142,698,726



$


108,096,829








LIABILITIES







CURRENT LIABILITIES:







     Accounts payable


$


32,613,092



$


1,312,560


     Short-term loans



774,401




-


     Accrued expenses and other current liabilities



1,619,642




2,001,031


     Operating lease liabilities - current



673,414




736,854


     Deposit payable



1,111,266




-


     Advances from customer



1,066,571




11,624


     Taxes payable



1,612,500




3,133,038


     Loan from related party



10,642,426




10,528,965


     Due to related parties - current



695,387




2,071,309


     Purchase price payable for acquisition of NAMI



-




7,007,905


TOTAL CURRENT LIABILITIES



50,808,699




26,803,286








Operating lease liabilities – non-current



315,628




680,130


Deferred tax liabilities



590,326




676,015


TOTAL LIABILITIES



51,714,653




28,159,431








SHAREHOLDERS' EQUITY:







     Class A common stock, $0.001 par value, 40,000,000 shares authorized,
          20,555,129 and 20,555,129 shares issued and outstanding as of June 30, 2021
          and December 31, 2020, respectively



20,555




20,555


     Class B common stock, $0.001 par value, 10,000,000 shares authorized, no shares
          issued and outstanding as of June 30, 2021 and December 31, 2020, respectively



-




-


     Additional paid-in capital



59,472,255




59,472,255


     Retained earnings



24,767,204




14,380,976


     Unearned compensation



(376,890)




(624,455)


     Accumulated other comprehensive income



3,912,046




3,593,188


COMMON SHAREHOLDERS' EQUITY



87,795,170




76,842,519


Non-controlling interests



3,188,903




3,094,879


TOTAL SHAREHOLDERS' EQUITY



90,984,073




79,937,398


TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$


142,698,726



$


108,096,829


 


 


 


NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) 


FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020


(EXPRESSED IN US DOLLARS)


(Unaudited)





For the Six Months Ended
June 30,




2021




2020




(Unaudited)




(Unaudited)


REVENUE:







SME financing solutions



$


36,615,078




$


13,259,133


Supply chain solutions




2,313,136





193,783


Other financing solutions




435





21,120


TOTAL REVENUE




38,928,649





13,474,036










COST OF REVENUE AND RELATED TAX:









Cost of revenue




(20,446,726)





(5,386,009)


Business and sales related tax




(218,238)





(68,391)


GROSS PROFIT




18,263,685





8,019,636










OPERATING EXPENSES:









Selling expenses




1,769,400





450,426


General and administrative expenses




3,830,198





3,084,253


Research and development expenses




636,488





212,764


Total operating expenses




6,236,086





3,747,443


INCOME FROM OPERATIONS




12,027,599





4,272,193










OTHER INCOME (EXPENSE):