ATIF Holdings Limited Releases Letter to Shareholders From The CEO and Director of The Board

Rhea-AI Summary

ATIF Holdings Limited (Nasdaq: ATIF) released a letter to shareholders outlining key developments and challenges stemming from the COVID-19 pandemic. Notable achievements include $7.8 million in consulting agreements, the successful Nasdaq listing of client Qilian International, and the launch of IPOEX.com, a financial consulting platform. In January 2021, ATIF relocated its headquarters to Los Angeles and adopted a new business model focusing on asset management. The company also disposed of its shares in Leaping Group Co., Ltd due to poor performance, aiming to enhance financial results and shareholder value.

Positive

• $7.8 million in consulting service agreements signed with multiple companies.
• Successful Nasdaq listing of client Qilian International with $25 million gross proceeds.
• Launch of IPOEX.com to provide investment advisory services with a database of over 62,000 institutions.
• Completion of a $4 million registered direct offering demonstrating investor confidence.
• Relocation to Los Angeles to enhance management efficiency and cost control, focusing on high-growth asset management.

Negative

• Disposed of shares in Leaping Group Co., Ltd due to its undesirable financial performance.

LOS ANGELES, Feb. 10, 2021 /PRNewswire/ -- ATIF Holdings Limited (Nasdaq: ATIF, the "Group", "ATIF" or "we"), a holding group providing business and financial consulting in Asia and North America, today released a letter to shareholders from the Chief Executive Officer and Director of the Company's board of directors.

Dear shareholders,

The 2020 COVID-19 global pandemic has brought negative impact and challenges to everyone. However, it brought opportunities for ATIF to think deeply about our development and to adjust ourselves to excel in light of the difficult time due to the pandemic. In reviewing our performance, we strive to continue to serve our customers in light of adversity, and had strategically transformed our business model to launch new main business sectors with high growth potential.

Highlights

1.73 million protective masks donation: At the end of January and early February 2020 during the outbreak of COVID-19 in Wuhan, China, we urgently purchased 1.7 million protective masks for donation and delivered the protective masks in batches to Wuhan. In April 2020, we further purchased and donated additional 30,000 protective masks and delivered to hospitals, government departments as well as local communities in Los Angeles and New York to help to fight against the epidemic. We strive to take social responsibility to be good corporate citizen.

A total of $7.8 million consulting service agreements: From February to November 2020, we had signed consulting service agreements totaling $7.8 million with four Chinese companies and four U.S. companies in anticipation of their entrance into the U.S. capital market. We customized the listing planning for companies and helped companies to obtain quality resources to provide business consulting, capital market advisory for business planning and strategy development, and investor and public relations services for companies entering into the U.S. capital market,

Our client successfully listing on the Nasdaq: In January 2021, our client Qilian International Holding Group Limited ("Qilian") announced its initial public offering on Nasdaq Global Market and had received aggregate gross proceeds of US$25 million from its Offering, before the deduction of underwriting discounts and other related expenses. Qilian made a strong debut on the U.S. stock market as the first Chinese Gansu stock to go public in the U.S., soaring 100% on the first day of trading.

Launch of IPOEX.com: In September 2020, we launched an online financial consulting service platform IPOEX.com to provide global market information and investment and financing advisory services. IPOEX.com has so far covered a database of more than 62,000 investment institutions around the world, and we have developed strategic collaborations with governmental institutions, chambers of commerce, associations and enterprises at all levels in China to continuously introduce companies to become paid members of the platform.

USD$4.0 Million Registered Direct Offering: In November 2020, ATIF successfully completed the closing of a registered direct offering for aggregate gross proceeds of approximately $4.0 million, before deducting placement agent fees and offering expenses payable by us with certain institutional accredited investors, demonstrating the high recognition from global institutional investors for our performance in the industry and market.

Relocated headquarters to Los Angeles, U.S., launching new business model: In January 2021, in order to streamline the management chain and to improve management control with lower costs, we officially relocated our operating headquarter to California, U.S. and launched new business model with asset management, investment holding and online financial information business, which we expected to have high revenue and strong profit growth potential. Asset management is the new main business of ATIF. With our unique investment trading strategy, our team had achieved ideal results in 2020. In February 2021, we have completed the filing of our private fund, ATIF-1, of which the first batch is expected to be USD 50 million.

In light of ATIF moving its headquarter to California and transitioning to a new business model focusing on asset management, investment holding and media services, we no longer believe that we have synergy with Leaping Group Co., Ltd ("LCG"). We  decided to dispose our shareholding in LGC due to LGC's undesirable financial performance, in order to focus on growing our business and improving our financial performance. We sold our shareholding of LGC and the transaction was completed on January 29, 2021 and LGC is no longer our subsidiary.

Moving Forward

In summary, we recognized that we were at a critical time in our development and maintained a strong sense of awareness. Despite the challenges that we faced in this period, we have continued to move our business forward, extending our business sectors building a more efficient enterprise.

We strive and adjusted ourselves in light of adversity and are well prepared to enter a whole new track. While making every effort to serve companies to enter the capital market smoothly, we are transforming with the aim to create more value, revenue returns for ATIF and to deliver long-term value for our shareholders.

In conclusion, we want to express our sincere gratitude to our clients and partners for their trust, to our shareholders for their continuous support, to our employees and their families for their faithfulness and incredible loyalty during a challenging time in light of the pandemic. 

Sincerely,

Pishan Chi
Chief Executive Officer and Director
ATIF Holdings Limited

About ATIF Holdings Limited

Headquartered in Los Angeles, California, ATIF Holdings Limited ("ATIF") is a holding group with asset management, investment holding and online financial information business and provide business consulting services to small and medium-sized enterprises in Asia and North America. ATIF operates an internet-based financial information service platform IPOEX.com, which provides prestige membership services including market information, pre-IPO education, IR media and matchmaking services between SMEs and financing institutions. ATIF's investment holding business is to provide going public consulting, M&A consulting and financial consulting services to SMEs. ATIF has advised several enterprises in China in their plans to become publicly listed in the U.S. ATIF plans to launch securities investment service and investment advisory in Q1 2021. For more information, please visit https://ir.atifchina.com/.

Forward-Looking Statements

Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantee of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: future financial and operating results, including revenues, income, expenditures, cash balances and other financial items; ability to manage growth and expansion; current and future economic and political conditions; ability to compete in an industry with low barriers to entry; ability to continue to operate through our VIE structure; ability to obtain additional financing in the future to fund capital expenditures; ability to attract new clients and further enhance brand recognition; ability to hire and retain qualified management personnel and key employees; trends and competition in the financial consulting services industry; a pandemic or epidemic; and other factors listed in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions you that actual results may differ materially from the anticipated results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made. These forward-looking statements are made as of the date of this news release.

 

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SOURCE ATIF Holdings Limited

FAQ

What major achievements did ATIF Holdings report in the shareholder letter?

ATIF reported $7.8 million in consulting agreements, the successful Nasdaq listing of client Qilian International, and the launch of their financial consulting platform IPOEX.com.

How much did ATIF Holdings raise in their last direct offering?

ATIF completed a registered direct offering raising approximately $4 million.

What was the reason for ATIF Holdings relocating their headquarters?

The relocation aimed to streamline management and improve cost control while focusing on a new asset management business model.

What impact did the pandemic have on ATIF Holdings?

The pandemic presented challenges but also opportunities for ATIF to transform its business model and continue serving clients.

What financial metrics indicate ATIF Holdings' growth?

ATIF achieved $7.8 million in consulting agreements and facilitated a successful IPO for a client, indicating strong financial growth.