Nisun International Reports Financial Results for Fiscal Year 2023: Nisun Achieves 65% Revenue Growth and Ends the Year with $29.0 Cash Per Share
Nisun International reported a 65% increase in revenue for fiscal year 2023, reaching $386.7 million, up from $234.2 million in 2022. The gross profit rose to $40 million from $37 million, and net income reached $17.7 million. The company ended the year with $114.5 million in cash, equivalent to $29 per share. Earnings per share (EPS) were reported at $4.46. CEO Xin Liu emphasized the success of strategic initiatives and operational excellence for their significant growth. Despite strong financials, the stock trades at just over one times annual earnings, which the company believes undervalues it, and they are considering strategic alternatives to unlock shareholder value.
Nisun continues to enhance its supply chain trading and financing solutions, managing the supply of 3.6 to 6 million eggs daily across key regions. The company has also diversified into other agricultural products, expanding its geographical reach. Looking ahead, Nisun aims to drive further growth and capitalize on new market opportunities.
- Revenue increased by 65% to $386.7 million.
- Gross profit grew to $40 million from $37 million.
- Net income reached $17.7 million.
- Cash and cash equivalents stood at $114.5 million.
- Earnings per share (EPS) were reported at $4.46.
- Significant diversification into other agricultural products.
- Daily supply of 3.6 to 6 million eggs managed across key regions.
- Stock trades at just over one times annual earnings, potentially undervaluing the company.
Insights
Nisun International has reported a remarkable
Another key point is the company's net income of
Going forward, retail investors should watch how the company's strategic alternatives to unlock shareholder value unfold. Whether through share buybacks, dividends, or strategic partnerships, these moves could potentially enhance market valuation and investor returns. It's important to monitor how Nisun International manages its high cash reserves and ensures consistent growth in profitability.
Nisun International's foray into diversification within the agricultural sector and geographical expansion of its supply chain operations offer promising avenues for future growth. By extending its supply chain solutions to other agricultural products, Nisun is mitigating risks associated with over-reliance on a single segment, thus potentially stabilizing revenue streams.
The company's operational highlights, such as managing the daily supply of 3.6 to 6 million eggs to major online platforms, emphasize its logistical capabilities and efficiency. However, the key to sustained success will be maintaining and scaling this operational excellence across new product lines and regions.
Market researchers should consider the competitive landscape and potential market share Nisun can capture in these new ventures. Given their strong cash position and technological investments, they seem well-positioned, but it remains essential to track market responses and customer adoption rates for these new agricultural products.
Financial Highlights:
- Revenue: Total revenue for the year was
$386.7 million 65% increase compared to$234.2 million - Gross Profit: Gross profit increased to
$40.0 million $37.0 million - Net Income: Net income for 2023 was
$17.7 million - Cash and Cash Equivalents: The Company ended the year with
$114.5 million - Earnings per Share (EPS): The Company reported earnings of
$4.46 $29.0
CEO's Comments:
Xin Liu, CEO of Nisun International, commented, "We are thrilled to report another year of outstanding financial performance, underscoring the success of our strategic initiatives and operational excellence. Our revenue growth of
Mr. Liu continued, "Despite our strong financial performance, substantial cash reserves of
Operational Highlights:
- Supply Chain Trading and Solutions: Nisun International continues to enhance its supply chain trading and financing solutions capabilities, leveraging state-of-the-art technology to streamline operations and reduce costs. The Company successfully managed the daily supply of 3.6 to 6 million eggs to major online platforms across key regions.
- Geographical Expansion: The Company's supply chain operations now span multiple regions, enabling delivery of a diverse range of products. This extensive network ensures seamless operations and strengthens Nisun's market presence.
- Diversification: Nisun has expanded its supply chain solutions to include other agricultural products, positioning the Company for substantial growth in the agricultural sector.
Looking Ahead:
Mr. Liu added, "Our commitment to innovation and excellence remains unwavering as we continue to drive growth and create value for our shareholders. The strategic expansion of our supply chain solution will enable us to meet the evolving needs of our customers and capitalize on new market opportunities. We are excited about the future and confident in our ability to achieve even greater success."
Investor Relations:
For more information, please visit the Investor Relations section of Nisun International's website at: www.nisun-international.com.
About Nisun International:
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. 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.
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 within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the
For more information, please contact:
Nisun International Enterprise Development Group Co., Ltd
Investor Relations
Tel: +86 (21) 2357-0055
Email: ir@cnisun.com
Horizon Research Management Consultancy
Michael Wei
Email: hwey@horizonconsultancy.co
NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES (EXPRESSED IN US DOLLARS) | ||||||||
December 31, | December 31, | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 114,454,844 | $ | 63,901,329 | ||||
Restricted cash | 197,096 | 3,417,244 | ||||||
Short-term investments | 12,788,629 | 11,700,400 | ||||||
Accounts receivable, net | 21,120,795 | 18,931,346 | ||||||
Advance to suppliers, net | 38,602,304 | 46,968,549 | ||||||
Receivables from supply chain solutions | 59,167,029 | 43,475,981 | ||||||
Inventories | 30,953,583 | 31,609,877 | ||||||
Prepaid expenses and other current assets | 16,018,778 | 10,890,083 | ||||||
TOTAL CURRENT ASSETS | 293,303,058 | 230,894,809 | ||||||
NON-CURRENT ASSETS: | ||||||||
Property and equipment, net | 881,276 | 719,574 | ||||||
Intangible assets, net | 882,828 | 1,795,234 | ||||||
Right-of-use assets, net | 2,384,590 | 3,349,432 | ||||||
Equity investments | 368,528 | 373,292 | ||||||
Investment in limited partnership | - | 14,913,539 | ||||||
Goodwill | 17,659,983 | 23,814,005 | ||||||
Deferred tax assets, net | 418,571 | 310,577 | ||||||
Long term investment | - | 7,249,319 | ||||||
TOTAL NON-CURRENT ASSETS | 22,595,776 | 52,524,972 | ||||||
TOTAL ASSETS | $ | 315,898,834 | $ | 283,419,781 | ||||
LIABILITIES | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 45,463,753 | $ | 40,925,155 | ||||
Short-term bank loans | 1,971,859 | 434,959 | ||||||
Accrued expenses and other current liabilities | 7,245,358 | 6,090,582 | ||||||
Operating lease liabilities - current | 861,087 | 1,008,766 | ||||||
Payables to supply chain solutions | 12,947,708 | 9,122,978 | ||||||
Advances from customers | 38,153,915 | 21,827,387 | ||||||
Taxes payable | 4,145,920 | 2,748,474 | ||||||
Loan from related party | - | 8,028,965 | ||||||
Liabilities of financial guarantee | 22,335 | - | ||||||
Due to related parties - current | 274,652 | 282,724 | ||||||
TOTAL CURRENT LIABILITIES | 111,086,587 | 90,469,990 | ||||||
Operating lease liabilities – non-current | 1,643,076 | 2,425,597 | ||||||
Deferred tax liabilities | 114,650 | 727,326 | ||||||
TOTAL NON-CURRENT LIABILITIES | 1,757,726 | 3,152,923 | ||||||
TOTAL LIABILITIES | 112,844,313 | 93,622,913 | ||||||
SHAREHOLDERS' EQUITY*: | ||||||||
Class A common stock, authorized, 4,017,596 and 4,006,263 shares issued, and 3,952,198 and 3,944,075 shares outstanding as of December 31, 2023 and 2022, respectively | 40,176 | 40,063 | ||||||
Class B common stock, issued and outstanding as of December 31, 2023 and 2022 | - | - | ||||||
Treasury shares | (261,592) | (355,844) | ||||||
Additional paid-in capital | 130,535,082 | 130,503,387 | ||||||
Retained earnings | 68,395,637 | 53,214,304 | ||||||
Statutory reserves | 11,564,250 | 9,167,845 | ||||||
Accumulated other comprehensive loss | (11,474,682) | (6,937,950) | ||||||
COMMON SHAREHOLDERS' EQUITY | 198,798,871 | 185,631,805 | ||||||
Non-controlling interests | 4,255,650 | 4,165,063 | ||||||
TOTAL SHAREHOLDERS' EQUITY | 203,054,521 | 189,796,868 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 315,898,834 | $ | 283,419,781 | ||||
* The financial statements give retroactive effect to the May 18, 2023 one-for-ten reverse share split. | ||||||||
NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (EXPRESSED IN US DOLLARS) | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
REVENUES: | ||||||||||||
Revenue generated from services: | ||||||||||||
Small and Medium Enterprise financing solutions | $ | 101,823,899 | $ | 87,269,959 | $ | 87,133,963 | ||||||
Supply Chain financing solutions | 6,153,645 | 3,542,592 | 4,930,289 | |||||||||
Other financing solutions | - | - | 3,222 | |||||||||
Total revenue generated from services | 107,977,544 | 90,812,551 | 92,067,474 | |||||||||
Revenue generated from sales: | ||||||||||||
Supply chain trading business | 278,693,355 | 143,361,714 | 68,132,237 | |||||||||
Total revenues | 386,670,899 | 234,174,265 | 160,199,711 | |||||||||
COST OF REVENUE: | ||||||||||||
Cost of revenue - services | (68,154,833) | (55,472,076) | (37,989,001) | |||||||||
Cost of revenue - sales | (278,002,800) | (140,880,063) | (67,628,806) | |||||||||
Business and sales related taxes | (527,336) | (772,830) | (533,760) | |||||||||
GROSS PROFIT | 39,985,930 | 37,049,296 | 54,048,144 | |||||||||
OPERATING EXPENSES: | ||||||||||||
Selling expenses | (1,525,692) | (1,977,617) | (2,323,403) | |||||||||
General and administrative expenses | (10,859,011) | (10,511,542) | (11,641,567) | |||||||||
Research and development expenses | (1,093,457) | (1,563,718) | (1,599,728) | |||||||||
Bad debt expense | (2,215,016) | (4,509,634) | (294,536) | |||||||||
Goodwill Impairment Loss | (5,488,816) | (777,329) | - | |||||||||
Total operating expenses | (21,181,992) | (19,339,840) | (15,859,234) | |||||||||
INCOME FROM OPERATIONS | 18,803,938 | 17,709,456 | 38,188,910 | |||||||||
OTHER INCOME : | ||||||||||||
Interest and investment income | 2,557,588 | 2,790,768 | 2,122,903 | |||||||||
Other income , net | 2,159,301 | 2,021,688 | 464,210 | |||||||||
Total other income, net | 4,716,889 | 4,812,456 | 2,587,113 | |||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 23,520,827 | 22,521,912 | 40,776,023 | |||||||||
PROVISION FOR INCOME TAXES | (5,817,147) | (4,741,854) | (10,269,501) | |||||||||
NET INCOME | 17,703,680 | 17,780,058 | 30,506,522 | |||||||||
Net income attributable to non-controlling interests | (125,942) | (159,246) | (126,161) | |||||||||
NET INCOME - Nisun International's shareholders | $ | 17,577,738 | $ | 17,620,812 | $ | 30,380,361 | ||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
Foreign currency translation (loss) income | (4,536,797) | (12,576,380) | 2,039,011 | |||||||||
COMPREHENSIVE INCOME | 13,040,941 | 5,044,432 | 32,419,372 | |||||||||
Comprehensive loss attributable to non-controlling interests | 65 | 6,231 | 2,051 | |||||||||
COMPREHENSIVE INCOME | $ | 13,041,006 | $ | 5,050,663 | $ | 32,421,423 | ||||||
BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ||||||||||||
NET EARNINGS PER COMMON SHARE | $ | 4.46 | $ | 4.42 | $ | 14.13 | ||||||
Weighted average number of shares outstanding-basic and diluted* | 3,943,793 | 3,986,359 | 2,150,683 | |||||||||
* The financial statements give retroactive effect to the May 18, 2023 one-for-ten reverse share split. | ||||||||||||
NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 and 2021 (EXPRESSED IN US DOLLARS) | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | $ | 17,703,680 | $ | 17,780,058 | $ | 30,506,522 | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 2,238,222 | 2,113,732 | 2,180,038 | |||||||||
Stock-based compensation | - | 125,630 | 498,825 | |||||||||
Shares issued for compensation | 31,808 | 185,000 | 71,175 | |||||||||
Bad debt expense | 2,215,016 | 4,509,634 | 294,536 | |||||||||
Impairment of goodwill | 5,488,816 | 777,329 | - | |||||||||
Loss on disposition of property and equipment | - | 1,385 | 190,301 | |||||||||
Income from investments | (365,359) | (541,578) | (808,464) | |||||||||
Deferred tax (benefit) expense | (710,672) | 271,907 | 275,749 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | (3,086,600) | (2,075,274) | (13,294,924) | |||||||||
Advance to suppliers, net | 7,282,068 | (39,859,386) | (9,213,279) | |||||||||
Prepaid expenses and other current assets | (5,511,142) | (4,734,501) | (3,464,939) | |||||||||
Receivables from supply chain solutions | (18,651,357) | 11,372,841 | (48,202,128) | |||||||||
Inventories | (246,818) | (25,530,993) | (3,931,400) | |||||||||
Accounts payable | 5,722,300 | 7,693,011 | 33,620,611 | |||||||||
Advance from customers | 16,986,750 | 19,085,377 | 3,375,769 | |||||||||
Taxes payable | 1,478,316 | (5,574,048) | 5,575,502 | |||||||||
Other payables | 3,232,387 | - | 2,576,570 | |||||||||
Payable to supply chain solutions | 4,096,141 | (15,198,883) | 25,608,622 | |||||||||
Operating lease liabilities | (834,381) | (855,242) | (952,495) | |||||||||
Accrued expenses and other current liabilities | (1,569,395) | 1,501,078 | (1,049,489) | |||||||||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | 35,499,780 | (28,952,923) | 23,857,102 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Acquisition of property and equipment | (503,957) | (652,585) | (186,705) | |||||||||
Purchase of intangible assets | (44,029) | (74,710) | (18,281) | |||||||||
Cash (paid) received in connection with Nami acquisition | - | - | (7,007,905) | |||||||||
Cash paid in connection with acquisition, net of cash received | - | (530,322) | - | |||||||||
Cash received on disposal of discontinued operations | - | - | 14,950,730 | |||||||||
Proceeds from sale of short-term investments | 103,458,984 | 78,595,280 | 4,894,270 | |||||||||
Proceeds from sale of Long-term investment | 7,061,233 | - | - | |||||||||
Proceeds from investment in debt securities | 14,366,013 | - | - | |||||||||
Purchase of short-term investments | (104,365,028) | (51,567,746) | (39,526,099) | |||||||||
Purchase of Long-term investments | - | (7,430,511) | - | |||||||||
Collection of loans to third parties | - | - | 1,643,203 | |||||||||
Proceeds from disposal of subsidiary | 71,514 | - | - | |||||||||
Loans to third parties | (229,161) | (501,905) | - | |||||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 19,815,569 | 17,837,501 | (25,250,787) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from short-term bank loans | 1,553,471 | 445,831 | 784,609 | |||||||||
Proceeds from issuance of common shares and pre-funded warrants | - | - | 70,794,465 | |||||||||
Proceeds from third-party loans | 1,977,145 | 36,770,626 | - | |||||||||
Repayment of short-term bank loans | (29,961) | (1,239,983) | - | |||||||||
Repayment of third-party loans | (2,277,954) | (41,491,973) | - | |||||||||
Repayment to related parties | - | (10,097) | (1,803,374) | |||||||||
Repayment of loan from related parties | (8,028,965) | (2,500,000) | - | |||||||||
Purchase of treasury shares | 94,252 | (355,844) | - | |||||||||
Capital contribution from non-controlling interest | (35,290) | 37,116 | 751,841 | |||||||||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (6,747,302) | (8,344,324) | 70,527,541 | |||||||||
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | (1,234,680) | (4,848,722) | 294,928 | |||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 47,333,367 | (24,308,468) | 69,428,784 | |||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH FROM CONTINUING OPERATIONS-BEGINNING | 67,318,573 | 91,627,041 | 22,198,257 | |||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH FROM CONTINUING OPERATIONS-ENDING | $ | 114,651,940 | $ | 67,318,573 | $ | 91,627,041 | ||||||
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||||||||||||
Cash paid for income taxes | $ | 4,530,963 | $ | 10,385,495 | $ | 5,546,082 | ||||||
Cash paid for interest | $ | 29,961 | $ | 496,932 | $ | 370,356 | ||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||||||||||||
Repayment payable for business disposition | 279,037 | - | - | |||||||||
Receivable from disposal of subsidiary | $ | - | $ | 289,973 | $ | - | ||||||
Lease liabilities arising from obtaining right-of-use | 295,220 | 4,070,163 | - | |||||||||
Issuance of shares for share-based compensation | $ | - | $ | - | $ | 71,175 | ||||||
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS ARE COMPRISED OF THE FOLLOWING: | ||||||||||||
Cash and cash equivalents | $ | 114,454,844 | $ | 63,901,329 | $ | 91,447,620 | ||||||
Restricted cash | 197,096 | 3,417,244 | 179,421 | |||||||||
Total cash, cash equivalents and restricted cash | $ | 114,651,940 | $ | 67,318,573 | $ | 91,627,041 | ||||||
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SOURCE Nisun International Enterprise Development Group Co., Ltd
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