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

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

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

 

 

 



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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):

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