TD Holdings, Inc. Reports First Quarter 2023 Financial Results
Ms. Renmei Ouyang, the Chief Executive Officer of the Company, stated, "We continued to provide unparalleled services to our clients and explore new partnerships to address the market opportunities in the first quarter of fiscal year 2023. In the remaining of 2023, we will continue to execute our development plan to expand our business scale and improve our brand awareness. We will remain focus on the optimization of our commodities trading business and supply chain service business to expand our client base. We believe our dedicated and experienced team is our foundation to separate us from other competitors and enhance our competitive market position. With the rapid resumption of business activities, we expect to actively explore new corporations, provide high-quality services to best serve our clients' demand and generate additional revenue sources. In addition to the growth plan, we expect to improve our efficiency by implementing necessary measures. We remain confident about our future prospects with our long-term development strategy on seeking growth opportunities in our business."
First Quarter 2023 Financial Highlights
Total revenue was
Net income was
Basic and diluted earnings per share were
First Quarter 2023 Financial Results
Revenues
For the quarter ended March 31, 2023, the Company sold non-ferrous metals to 14 third-party customers at fixed prices, and earned revenues when the product ownership was transferred to its customers. The Company earned revenues of
For the quarter ended March 31, 2023, the Company recorded revenue of
Cost of Revenue
Cost of revenue primarily includes cost of revenue associated with commodity product sales and cost of revenue associated with management services of supply chain. Total cost of revenue decreased by
Selling, General, and Administrative Expenses
Selling, general and administrative expenses increased by
Interest Income
Interest income was primarily generated from loans made to third parties and related parties. Interest income increased by
Amortization of Beneficial Conversion Feature and Relative Fair Value of Warrants Relating to the Issuance of Convertible Promissory Notes
For the quarter ended March 31, 2023, the item represented the amortization of beneficial conversion feature of
For the same quarter ended March 31, 2022, the item represented the amortization of beneficial conversion feature of
Net Income
Net income was
Three Months Ended March 31, 2023 Cash Flows
As of March 31, 2023, the Company had cash and cash equivalents of
Net cash provided by operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
About TD Holdings, Inc.
TD Holdings, Inc. is a service provider currently engaging in the commodities trading business and supply chain service business in China. Its commodities trading business primarily involves purchasing non-ferrous metal products from upstream metal and mineral suppliers and then selling to downstream customers. Its supply chain service business primarily has served as a one-stop commodity supply chain service and digital intelligence supply chain platform integrating upstream and downstream enterprises, warehouses, logistics, information, and futures trading. For more information, please visit http://ir.tdglg.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of TD Holdings, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: there is uncertainty about the spread of the COVID-19 virus and the impact it will have on the Company's operations, the demand for the Company's products and services, global supply chains and economic activity in general. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
Ascent Investor Relations LLC
Ms. Tina Xiao
Email:tina.xiao@ascent-ir.com
Tel: +1 917 609 0333
TD HOLDINGS, INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
As of March 31, 2023 and December 31, 2022 | ||||||||
(Expressed in | ||||||||
March 31, | December 31, | |||||||
2023 | 2022 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 1,981,012 | $ | 893,057 | ||||
Loans receivable from third parties | 191,630,240 | 143,174,634 | ||||||
Other current assets | 4,991,860 | 4,040,477 | ||||||
Inventories, net | 415,718 | 458,157 | ||||||
Total current assets | 199,018,830 | 148,566,325 | ||||||
Non-Current Assets | ||||||||
Plant and equipment, net | 5,239 | 6,370 | ||||||
Goodwill | 162,379,512 | 160,213,550 | ||||||
Intangible assets, net | 52,803,772 | 54,114,727 | ||||||
Right-of-use assets, net | 168,458 | 196,826 | ||||||
Total non-current assets | 215,356,981 | 214,531,473 | ||||||
Total Assets | $ | 414,375,811 | $ | 363,097,798 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | - | $ | 1,269 | ||||
Bank borrowings | 1,018,671 | 1,005,083 | ||||||
Third party loans payable | 472,842 | 460,587 | ||||||
Contract liabilities | 18,395 | 437,148 | ||||||
Income tax payable | 12,835,992 | 11,634,987 | ||||||
Lease liabilities | 109,977 | 116,170 | ||||||
Other current liabilities | 5,654,669 | 5,348,646 | ||||||
Convertible promissory notes | 4,635,456 | 4,208,141 | ||||||
Total current liabilities | 24,746,002 | 23,212,031 | ||||||
Non-Current Liabilities | ||||||||
Due to related party | 39,291,587 | 38,767,481 | ||||||
Deferred tax liabilities | 2,907,489 | 3,059,953 | ||||||
Lease liabilities | 62,396 | 84,164 | ||||||
Total non-current liabilities | 42,261,472 | 41,911,598 | ||||||
Total liabilities | 67,007,474 | 65,123,629 | ||||||
Commitments and Contingencies (Note 16) | ||||||||
Equity | ||||||||
Common stock (par value | 144,841 | 106,742 | ||||||
Additional paid-in capital | 390,154,966 | 344,295,992 | ||||||
Statutory surplus reserve | 2,602,667 | 2,602,667 | ||||||
Accumulated deficit | (37,950,132) | (38,800,375) | ||||||
Accumulated other comprehensive income | (5,939,107) | (8,984,925) | ||||||
Total TD Shareholders' Equity | 349,013,235 | 299,220,101 | ||||||
Non-controlling interest | (1,644,898) | (1,245,932) | ||||||
Total Equity | 347,368,337 | 297,974,169 | ||||||
Total Liabilities and Equity | $ | 414,375,811 | $ | 363,097,798 | ||||
* Retrospectively restated due to five for one Reverse Stock Split, see Note 12 - Reverse stock split of common stock. | ||||||||
TD HOLDINGS, INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND | ||||||||
COMPREHENSIVE INCOME (LOSS) | ||||||||
For the Three Months Ended March 31, 2023 and 2022 | ||||||||
(Expressed in | ||||||||
For the Three Months | ||||||||
2023 | 2022 | |||||||
Revenues | ||||||||
- Sales of commodity products – third parties | $ | 34,571,288 | $ | 47,583,965 | ||||
- Supply chain management services – third parties | 6,350 | 575,151 | ||||||
Total revenue | 34,577,638 | 48,159,116 | ||||||
Cost of revenues | ||||||||
- Commodity product sales-third parties | (34,653,239) | (47,590,576) | ||||||
- Supply chain management services-third parties | (40) | (11,602) | ||||||
Total operating costs | (34,653,279) | (47,602,178) | ||||||
Gross (loss)/profit | (75,641) | 556,938 | ||||||
Operating expenses | ||||||||
Selling, general, and administrative expenses | (2,743,061) | (2,247,707) | ||||||
Total operating expenses | (2,743,061) | (2,247,707) | ||||||
Net Operating Loss | (2,818,702) | (1,690,769) | ||||||
Other income (expenses), net | ||||||||
Interest income | 4,449,000 | 4,390,341 | ||||||
Interest expenses | (109,987) | (110,326) | ||||||
Amortization of beneficial conversion feature relating to issuance of convertible | (220,652) | (213,367) | ||||||
Other income, net | 4,523 | 95,709 | ||||||
Total other income, net | 4,122,884 | 4,162,357 | ||||||
Net income before income taxes | 1,304,182 | 2,471,588 | ||||||
Income tax expenses | (852,905) | (877,731) | ||||||
Net income | 451,277 | 1,593,857 | ||||||
Less: Net loss attributable to non-controlling interests | (398,966) | - | ||||||
Net income attributable to TD Holdings, Inc.'s Stockholders | 850,243 | 1,593,857 | ||||||
Comprehensive Income | ||||||||
Net income | 451,277 | 1,593,857 | ||||||
Foreign currency translation adjustments | 3,045,818 | 881,196 | ||||||
Comprehensive Income | $ | 3,497,095 | $ | 2,475,053 | ||||
Less: Total comprehensive loss attributable to non-controlling interests | (398,966) | - | ||||||
Comprehensive income attributable to TD Holdings, Inc.'s Stockholders | $ | 3,896,061 | $ | 2,475,053 | ||||
Income per share - basic and diluted | ||||||||
Continuing Operation- income per share – basic* | $ | 0.00 | $ | 0.04 | ||||
Continuing Operation- income per share –diluted* | $ | 0.00 | $ | 0.04 | ||||
Weighted Average Shares Outstanding-Basic* | 140,045,132 | 39,688,232 | ||||||
Weighted Average Shares Outstanding- Diluted* | 148,121,900 | 42,710,590 | ||||||
* Retrospectively restated due to five for one Reverse Stock Split, see Note 12 - Reverse stock split of common stock | ||||||||
TD HOLDINGS, INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
For the Three Months Ended March 31, 2023 and 2022 | ||||||||
(Expressed in | ||||||||
For the Three Months | ||||||||
Ended March 31, | ||||||||
2023 | 2022 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 451,277 | $ | 1,593,857 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Depreciation of plant and equipment | 1,215 | 3,217 | ||||||
Amortization of intangible assets | 2,049,732 | 1,029,186 | ||||||
Amortization of right of use assets | 30,846 | 76,983 | ||||||
Amortization of discount on convertible promissory notes | 93,333 | 111,000 | ||||||
Interest expense for convertible promissory notes | 101,330 | 93,285 | ||||||
Amortization of beneficial conversion feature of convertible promissory notes | 220,652 | 213,367 | ||||||
Monitoring fee relating to convertible promissory notes | - | 69,685 | ||||||
Deferred tax liabilities | (194,515) | (209,744) | ||||||
Inventories impairment | (17,229) | - | ||||||
Escrow account receivable | - | (54,985) | ||||||
Inventories | 66,033 | (133,810) | ||||||
Other current assets | (24,222) | (29,775) | ||||||
Prepayments | 447,960 | (1,891,842) | ||||||
Contract liabilities | (426,158) | 1,900,456 | ||||||
Due to related parties | - | (21,259) | ||||||
Due from third parties | (628,474) | (481,816) | ||||||
Due from related parties | (685,488) | 28,897 | ||||||
Accounts payable | (1,291) | (116,078) | ||||||
Income tax payable | 1,047,382 | 1,085,694 | ||||||
Other current liabilities | 259,083 | 499,661 | ||||||
Lease liabilities | (30,476) | (19,734) | ||||||
Due to third party loans payable | 6,050 | 6,523 | ||||||
Net cash provided by operating activities | 2,767,040 | 3,752,768 | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchases of plant and equipment | - | (5,039) | ||||||
Purchases of operating lease assets | - | (58,617) | ||||||
Loans made to third parties | (46,678,620) | (60,177,853) | ||||||
Collection of loans from related parties | - | 11,066,822 | ||||||
Investments in other investing activities | (10,707) | (828,601) | ||||||
Net cash used in investing activities | (46,689,327) | (50,003,288) | ||||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from issuance of common stock under ATM transaction | 559,073 | - | ||||||
Proceeds from issuance of common stock under private placement transactions | 42,350,000 | 45,500,000 | ||||||
Proceeds from convertible promissory notes | 3,000,000 | - | ||||||
Net cash provided by financing activities | 45,909,073 | 45,500,000 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (898,831) | 13,794 | ||||||
Net increase/(decrease) in cash and cash equivalents | 1,087,955 | (736,726) | ||||||
Cash and cash equivalents at beginning of period | 893,057 | 4,311,068 | ||||||
Cash and cash equivalents at end of period | $ | 1,981,012 | $ | 3,574,342 | ||||
Supplemental Cash Flow Information | ||||||||
Cash paid for interest expenses | $ | 19,934 | $ | 22,109 | ||||
Cash paid for income taxes | $ | - | $ | 1,781 | ||||
Supplemental disclosure of Non-cash investing and financing activities | ||||||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | - | $ | 58,617 | ||||
Issuance of common stocks in connection with conversion of convertible promissory | $ | 2,988,000 | $ | 1,804,820 | ||||
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SOURCE TD Holdings, Inc.
