TD Holdings, Inc. Reports Second Quarter 2021 Financial Results
TD Holdings, Inc. (Nasdaq: GLG) reported a substantial revenue surge of 2981%, reaching $59.84 million in Q2 2021, driven by its commodities trading operations. Despite challenges from the COVID-19 pandemic and previous losses in its used luxurious car leasing business, the company shifted focus to commodities trading after divesting the leasing arm in August 2020. Net income from continuing operations was $0.36 million, recovering from a net loss of $5.17 million in Q2 2020. The company plans to enhance its competitive position by expanding into e-commerce and blockchain solutions.
- Revenue increased by 2981% to $59.84 million for Q2 2021, up from $1.94 million in Q2 2020.
- Net income from continuing operations was $0.36 million, compared to a net loss of $5.17 million in Q2 2020.
- Plans for expansion include launching a blockchain payment platform and entering the Yangpu Economic Development Zone.
- Net loss from continuing operations was $1.18 million for the six months ended June 30, 2021, albeit improved from $5.26 million a year earlier.
- Selling, general, and administrative expenses rose by 368% to $2.05 million in Q2 2021.
SHENZHEN, China, Aug. 17, 2021 /PRNewswire/ -- TD Holdings, Inc. (Nasdaq: GLG) (the "Company"), a commodities trading service provider in China, today announced its financial results for the second quarter ended June 30, 2021.
Affected by the ongoing outbreak of the COVID-19, the Company expected its used luxurious car leasing business to be subject to continuous losses due to the closure of stores. As a result, the Company sold the used luxurious car leasing business in August 2020 and focused on the commodities trading and its complementary businesses.
Ms. Renmei Ouyang, the Chief Executive Officer of the Company, stated, "We are pleased to report our financial results for the second quarter of fiscal year 2021. Despite the setbacks caused by the COVID-19 outbreak and having just started our commodities trading business in late 2019, our revenue increased by
Financial Highlights
In the quarter ended June 30, 2021
- Total revenue was
$59.84 million , consisting of$59.51 million from sales of commodities products, and$0.33 million from supply chain management services for the quarter ended June 30, 2021, an increase of2981% from$1.94 million for the same quarter ended June 30, 2020. - Net income from continuing operation was
$0.36 million , as compared with net loss from continuing operations of$5.17 million for the same quarter ended June 30, 2020. Net income was$0.36 million , as compared with net loss of$5.46 million for the same quarter ended June 30, 2020. - Basic and diluted earnings per share from continuing operations was nil, compared with basic and diluted loss per share from continuing operations of
$0.11 for the same quarter ended June 30, 2020.
In the six months ended June 30, 2021
- Total revenue was
$89.42 million , consisting of$88.95 million from sales of commodities products, and$0.47 million from supply chain management services for the six months ended June 30, 2021, an increase of2740% from$3.15 million for the same period ended June 30, 2020. - Net loss from continuing operation was
$1.18 million , as compared with net loss from continuing operations of$5.26 million for the same period ended June 30, 2020. Net loss was$1.18 million , as compared with net loss of$5.82 million for the same period ended June 30, 2020. - Basic and diluted loss per share from continuing operations was
$0.01 , compared with basic and diluted loss per share from continuing operations of$0.17 for the same period ended June 30, 2020.
Financial Results
In the three months ended June 30, 2021
Revenues
For the three months ended June 30, 2021, the Company sold non-ferrous metals to two customers at fixed prices, and earned revenues when the product ownership was transferred to its customers. The Company earned revenues of
For the three months ended June 30, 2021, the Company earned commodity distribution commission fees of
Cost of revenue
Cost of revenue primarily consists of purchase costs of non-ferrous metal products. For the three months ended June 30, 2021, the Company purchased non-ferrous metal products of
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 relative fair value of warrants relating to service provider
For the three months ended June 30, 2020, the item represented the full amortization of beneficial conversion feature of
For the three months ended June 30, 2021, no such expenses incurred.
Net income from continuing operations
Net income was
Net loss from discontinued operations
During the three months ended June 30, 2020, net loss from discontinued operations was
In the six months ended June 30, 2021
Revenues
For the six months ended June 30, 2021, the Company sold non-ferrous metals to two related party customers at fixed prices, and earned revenues when the product ownership was transferred to its customers. The Company earned revenues of
For the six months ended June 30, 2021, the Company earned commodity distribution commission fees of
Cost of revenue
Cost of revenue primarily consists of purchase costs of non-ferrous metal products. For the six months ended June 30, 2021, the Company purchased non-ferrous metal products of
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
Share-based payment for service
On March 4, 2021, the Company issued 750,000 fully-vested warrants with an exercise price of
For the six months ended June 30, 2020, no such expenses incurred.
Amortization of beneficial conversion feature and relative fair value of warrants relating to issuance of convertible notes
For the six months ended June 30, 2020, the item represented the full amortization of beneficial conversion feature of
For the six months ended June 30, 2021, no such expenses incurred.
Net loss from continuing operations
Net loss was
Net loss from discontinued operations
During the six months ended June 30, 2020, net loss from discontinued operations was
Six Months Ended June 30, 2021 Cash Flows
As of June 30, 2021, the Company had cash and cash equivalents of
Net cash used in operating activities from continuing operations 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 commodity trading business and supply chain service business in China. Its commodities trading business primarily involves purchasing non-ferrous metal product 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. 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 | ||||||||
June 30, | December 31, | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash | $ | 6,896,515 | $ | 2,700,013 | ||||
Accounts receivable, net | 2,523 | - | ||||||
Loans receivable from third parties | 59,504,874 | 18,432,691 | ||||||
Prepayments | 5,115,092 | - | ||||||
Due from related parties | 20,366,043 | 55,839,045 | ||||||
Inventory | 883,961 | - | ||||||
Other current assets | 728,738 | 1,310,562 | ||||||
Total current assets | 93,497,746 | 78,282,311 | ||||||
Property and equipment, net | 2,205 | - | ||||||
Goodwill | 70,088,377 | 69,322,325 | ||||||
Intangible assets | 22,999,116 | 19,573,846 | ||||||
Total noncurrent assets | 93,089,698 | 88,896,171 | ||||||
Total Assets | $ | 186,587,444 | $ | 167,178,482 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 2,301,057 | $ | - | ||||
Advances from customers | 10,995,818 | 9,214,369 | ||||||
Third party loan payables | 1,996,533 | - | ||||||
Due to related parties | 1,349,180 | 7,346,021 | ||||||
Bank borrowings | 1,300,068 | 1,653,247 | ||||||
Income tax payable | 6,703,087 | 5,460,631 | ||||||
Convertible notes | 5,219,360 | - | ||||||
Acquisition payable | - | 15,384,380 | ||||||
Other current liabilities | 2,930,193 | 3,197,147 | ||||||
Total Current Liabilities | 32,795,296 | 42,255,795 | ||||||
Deferred tax liabilities | 4,535,242 | 4,893,461 | ||||||
Total Non-current Liabilities | 4,535,242 | 4,893,461 | ||||||
Total Liabilities | 37,330,538 | 47,149,256 | ||||||
Commitments and Contingencies (Note 12) | ||||||||
Equity | ||||||||
Common stock (par value | 97,044 | 79,131 | ||||||
Additional paid-in capital | 181,174,696 | 151,407,253 | ||||||
Statutory reserve | 913,292 | 913,292 | ||||||
Accumulated deficit | (41,876,191) | (39,255,945) | ||||||
Accumulated other comprehensive loss | 8,948,065 | 6,885,495 | ||||||
Total Equity | 149,256,906 | 120,029,226 | ||||||
Total Liabilities and Equity | $ | 186,587,444 | $ | 167,178,482 | ||||
TD HOLDINGS, INC. | ||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
(Expressed in U.S. dollars, except for the number of shares) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues | ||||||||||||||||
- Sales of commodity products – related parties | $ | 1,523,616 | $ | 1,563,669 | $ | 21,926,631 | $ | 2,617,301 | ||||||||
- Sales of commodity products – third parties | 57,989,381 | - | 67,022,848 | |||||||||||||
- Supply chain management services – related parties | 26,949 | 70,596 | ||||||||||||||
- Supply chain management services – third parties | 326,650 | 351,793 | 472,425 | 460,630 | ||||||||||||
Total Revenue | 59,839,647 | 1,942,411 | 89,421,904 | 3,148,527 | ||||||||||||
Cost of revenue | ||||||||||||||||
- Commodity product sales-related parties | (1,531,336) | (1,369,669) | (21,917,517) | (1,256,218) | ||||||||||||
- Commodity product sales-third parties | (57,932,603) | (200,679) | (66,965,015) | (1,369,669) | ||||||||||||
- Supply chain management services – related parties | - | - | - | |||||||||||||
- Supply chain management services – third parties | (2,592) | (7,633) | (3,642) | (7,954) | ||||||||||||
Total cost of revenue | (59,466,531) | (1,577,981) | (88,886,174) | (2,633,841) | ||||||||||||
Gross profit | 373,116 | 364,430 | 535,730 | 514,686 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling, general, and administrative expenses | (2,054,354) | (439,128) | (3,624,733) | (740,825) | ||||||||||||
Total operating cost and expenses | (2,054,354) | (439,128) | (3,624,733) | (740,825) | ||||||||||||
Other income (expenses), net | ||||||||||||||||
Interest income | 2,946,236 | 1,804,743 | 5,045,093 | 1,884,923 | ||||||||||||
Interest expenses | (155,825) | (31,610) | (283,248) | (54,480) | ||||||||||||
Share-based payment for service | - | - | (1,695,042) | - | ||||||||||||
Amortization of beneficial conversion feature relating to | - | (3,400,000) | - | (3,400,000) | ||||||||||||
Amortization of relative fair value of warrants relating to issuance of convertible notes | - | (3,060,000) | - | (3,060,000) | ||||||||||||
Other income (expense), net | (379,924) | - | (386,358) | - | ||||||||||||
Total other income (expenses), net | 2,410,487 | (4,686,867) | 2,680,445 | (4,629,557) | ||||||||||||
Net income (loss) from continuing operations before income taxes | 729,249 | (4,761,565) | (408,558) | (4,855,696) | ||||||||||||
Income tax expenses | (371,393) | (408,829) | (771,862) | (408,829) | ||||||||||||
Net income (loss) from continued operations, net of tax | 357,856 | (5,170,394) | (1,180,420) | (5,264,525) | ||||||||||||
Net loss from discontinued operations, net of tax | - | (292,091) | - | (552,445) | ||||||||||||
Net income (loss) | 357,856 | (5,462,485) | (1,180,420) | (5,816,970) | ||||||||||||
Less: Net loss attributable to non-controlling interests | - | 2,804 | - | 7,073 | ||||||||||||
Net income (loss) attributable to TD Holdings, Inc.'s Stockholders | $ | 357,856 | (5,459,681) | (1,180,420) | (5,809,897) | |||||||||||
Comprehensive Income (Loss) | ||||||||||||||||
Net income (loss) | $ | 357,856 | (5,462,485) | (1,180,420) | (5,816,970) | |||||||||||
Foreign currency translation adjustment | 2,706,148 | (85,670) | 2,062,570 | (87,972) | ||||||||||||
Comprehensive income (loss) | 3,064,004 | (5,548,155) | 882,150 | (5,904,942) | ||||||||||||
Less: Total comprehensive income - attributable to non-controlling interests | - | 2,804 | - | 7,073 | ||||||||||||
Comprehensive income (loss) attributable to TD Holdings, Inc. | $ | 3,064,064 | (5,545,351) | 882,150 | (5,897,869) | |||||||||||
Income (Loss) per share - basic and diluted | ||||||||||||||||
Continuing Operation- Income (loss) per share – Basic and diluted | (0.00) | (0.11) | (0.01) | (0.17) | ||||||||||||
Continuing Operation- Income (loss) per share – Diluted | (0.00) | - | - | - | ||||||||||||
Discontinuing Operation-Net loss per share –Basic and diluted | $ | - | (0.01) | - | (0.02) | |||||||||||
Weighted Average Shares Outstanding-Basic | 96,821,039 | 47,486,210 | 95,025,014 | 30,579,616 | ||||||||||||
Weighted Average Shares Outstanding- Diluted | 102,312,155 | - | - | - | ||||||||||||
TD HOLDINGS, INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Expressed in U.S. dollar) | ||||||||
For the Six Months Ended | ||||||||
2021 | 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (1,180,420) | (5,816,970) | |||||
Less: Net income (loss) from discontinued operations | - | (552,445) | ||||||
Net income (loss) from continuing operations | - | (5,264,525) | ||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Amortization of intangible assets | 1,895,871 | - | ||||||
Depreciation of fixed assets | 130 | - | ||||||
Amortization of discount on convertible notes | 163,333 | - | ||||||
Amortization of right of use assets | - | 146,890 | ||||||
Amortization of beneficial conversion feature relating to issuance of convertible notes | - | 3,400,000 | ||||||
Amortization of relative fair value of warrants relating to issuance of convertible notes | - | 3,060,000 | ||||||
Share-based payment for service | 1,695,042 | - | ||||||
Standstill fee relating to convertible notes | 356,934 | - | ||||||
Interest expense for convertible notes | 199,093 | - | ||||||
Deferred tax liabilities | (411,736) | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Other current assets | 601,683 | (138,596) | ||||||
Account receivables | (2,520) | (1,927,299) | ||||||
Inventory | (882,764) | - | ||||||
Prepayments | (5,108,162) | (2,843,373) | ||||||
Advances from customers | 1,677,349 | 63,976 | ||||||
Accounts payable | 2,297,940 | - | ||||||
Due to related parties | (5,518,273) | (300,549) | ||||||
Due from related parties | (457,032) | - | ||||||
Income tax payable | 1,175,327 | 408,829 | ||||||
Other current liabilities | (297,177) | 820,815 | ||||||
Lease liabilities | - | (166,242) | ||||||
Net cash provided by (used in) operating activities from continuing operations | (3,789,382) | (2,740,074) | ||||||
Net cash provided by operating activities from discontinued operations | - | 19,213 | ||||||
Net cash provided by (used in) operating activities | (3,789,382) | (2,720,861) | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchases of intangible assets | (5,100,490) | - | ||||||
Purchases of fixed assets | (2,332) | - | ||||||
Final payment of acquisition of a subsidiary | (15,533,312) | - | ||||||
Payment made on loan to related parties | (7,174,955) | - | ||||||
Payment made on loans to third parties | (45,057,871) | (78,559,027) | ||||||
Collection of loans from related parties | 43,687,593 | - | ||||||
Collection of loans from third parties | 13,370,395 | - | ||||||
Net cash used in investing activities from continuing operations | (15,810,972) | (78,559,027) | ||||||
Net cash used in investing activities from discontinued operations | - | (300,711) | ||||||
Net cash used in investing activities | (15,810,972) | (78,859,738) | ||||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from issuance of common stock under ATM transaction | 2,192,989 | - | ||||||
Proceeds from issuance of common stock under private placement transactions | 24,450,000 | 13,500,000 | ||||||
Proceeds from exercise of warrants | 7,500 | 36,000,000 | ||||||
Proceeds from issuance of convertible promissory notes | 4,500,000 | 30,000,000 | ||||||
Proceeds from borrowings from related parties | 1,121,770 | |||||||
Proceeds from borrowings from third parties | 1,993,828 | - | ||||||
Repayments made on loans to related parties | (550,930) | - | ||||||
Payments made on loans to third parties | (9,496,586) | - | ||||||
Net cash provided by financing activities from continuing operations | 23,096,801 | 80,621,770 | ||||||
Net cash used in financing activities from discontinuing operations | - | (381,554) | ||||||
Net cash provided by financing activities | 23,096,801 | 80,240,216 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 700,055 | 381,294 | ||||||
Net increase/(decrease)in cash and cash equivalents | 4,196,502 | (959,089) | ||||||
Cash at beginning of period | 2,700,013 | 2,446,683 | ||||||
Cash at end of period | $ | 6,896,515 | 1,487,594 | |||||
Less: Cash from discontinued operations | - | 84 | ||||||
Cash from continuing operations | 6,896,515 | 1,487,510 | ||||||
Supplemental Cash Flow Information | ||||||||
Cash paid for interest expense | - | - | ||||||
Cash paid for income tax | $ | 75,416 | $ | - | ||||
Supplemental disclosure of Non-cash investing and financing activities | ||||||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | - | $ | 455,635 | ||||
Issuance of common stocks in connection with conversion of convertible notes | $ | - | $ | 30,000,000 | ||||
Issuance of common stocks in connection with private placements, net of issuance costs with proceeds collected in advance in November 2019 | $ | - | $ | 1,600,000 | ||||
Issuance of common stocks in connection with warrant cashless exercise in March 2021 | $ | 1,439,826 | $ | - | ||||
View original content:https://www.prnewswire.com/news-releases/td-holdings-inc-reports-second-quarter-2021-financial-results-301357245.html
SOURCE TD Holdings, Inc.
FAQ
What were TD Holdings' earnings results for Q2 2021?
What is the future outlook for TD Holdings after the recent press release?
What is the stock symbol for TD Holdings?
How much net income did TD Holdings report for Q2 2021?
What significant changes did TD Holdings make to its business model?
