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

Rhea-AI Summary

Nisun International Enterprise Development Group Co., Ltd (Nasdaq: NISN) reported a remarkable 188.9% increase in total revenue, reaching $38.9 million for the first half of 2021 compared to $13.5 million in the prior year. The SME financing solutions segment saw a 176.1% revenue increase to $36.6 million, driven by growing demand. The company achieved a net income of $10.5 million, up from a net loss of $6.1 million in 2020. However, operating expenses rose by 66.4%, impacting gross margin, which decreased to 46.9%.

Positive

• Total revenue increased by 188.9% to $38.9 million.
• Net income reached $10.5 million, up from a net loss of $6.1 million.
• Revenue from SME financing solutions increased by 176.1%.

Negative

• Cost of revenue rose by 278.9% to $20.7 million, reducing gross margin to 46.9%.
• Operating expenses increased by 66.4% to $6.2 million.

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 http://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

 

 

 

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):
Interest and investment income			836,857				180,513
Other income (expense), net			460,187				2,941
Total other income (expense), net			1,297,044				183,454
INCOME BEFORE PROVISION FOR INCOME TAXES			13,324,643				4,455,647
PROVISION FOR INCOME TAXES			2,844,560				307,354
NET INCOME FROM CONTINUING OPERATIONS			10,480,083				4,148,293
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX			-				(10,294,489)
NET INCOME (LOSS)		$	10,480,083			$	(6,146,196)
Net (income) attributable to non-controlling interests			(93,855)
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTERESTS			10,386,228				(6,146,196)
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment			318,858				(679,291)
TOTAL COMPREHENSIVE INCOME (LOSS)		$	10,705,086			$	(6,825,487)
INCOME (LOSS) PER SHARE, BASIC AND DILUTED:
Income per share from continuing operations		$	0.51			$	0.23
Loss per share from discontinued operations			-				(0.57)
Total		$	0.51			$	(0.34)
Weighted average number of shares outstanding:
Basic and diluted			20,555,129				18,167,603

 

 

NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX MOTHS ENDED JUNE 30, 2021 AND 2020
(EXPRESSED IN US DOLLARS)
(Unaudited)
		For the Six Months Ended
		June 30,
		2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$	10,480,083		$	(6,146,196)
Net (loss) from discontinued operations			-			(10,294,489)
Net income from continuing operations			10,480,083			4,148,293
Adjustments to reconcile net (loss) to net cash provided by (used in) operating      activities:
Depreciation and amortization			1,105,022			622,812
Stock-based compensation			247,565			860,457
(Income) from investments			(725,519)			(114,930)
Deferred tax expense (benefit)			259,887			(85,246)
Changes in operating assets and liabilities:
Accounts receivable			(2,488,129)			(40,711)
Prepaid expenses and other current assets			(1,282,859)			(3,742,853)
Receivables from supply chain solutions			(25,141,298)			-
Accounts payable			31,284,968			347,340
Advance from customers			1,052,611			797,100
Taxes payable			(1,550,469)			231,784
Other payables			(140,420)			-
Deposit payable			1,108,934			-
Operating lease liabilities			(442,024)			(141,625)
Accrued expenses and other current liabilities			(261,322)			(511,492)
Net cash provided by operating activities from continuing operations			13,507,030			2,370,929
Net cash (used in) operating activities from discontinued operations						(510,306)
NET CASH PROVIDED BY OPERATING ACTIVITIES			13,507,030			1,860,623
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment			(154,155)			(25,768)
Purchase of intangible asset			(14,581)			(22,713)
Cash paid in connection with acquisition of Nami			(7,007,905)			-
Cash acquired with Nami acquisition			-			5,062,170
Cash received on disposal of discontinued operations			14,950,730			-
Purchase of short-term investment			(32,573,879)			-
Collection of loans to third parties			-			1,706,351
Loans to third parties			-			(284,392)
Net cash (used in) provided from investing activities from continuing operations			(24,799,790)			6,435,648
Net cash (used in) investing activities from discontinued operations						-
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES			(24,799,790)			6,435,648
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term bank loans			774,401			-
Proceeds from private placement			-			6,503,378
Repayment to related party			(1,399,602)			(6,678,943)
Capital contribution by shareholder			-			4,550,000
Net cash provided from (used in) investing activities from continuing operations			(625,201)			4,374,435
Net cash (used in) investing activities from discontinued operations			-			-
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES			(625,201)			4,374,435
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS			(333,090)			(40,002)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(12,251,051)			12,630,704
Cash and cash equivalents and restricted cash from continuing operations - beginning			22,198,257			2,781,506
Cash and cash equivalents and restricted cash from discontinued operations - beginning			-			696,157
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-BEGINNING			22,198,257			3,477,663
Cash and cash equivalents and restricted cash from continuing operations - ending			9,947,206			15,922,516
Cash and cash equivalents and restricted cash from discontinued operations - ending						185,851
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-ENDING		$	9,947,206		$	16,108,367
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid for income taxes		$	3,469,253		$	13,972
Cash paid for interest		$	19,606		$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Nami acquisition payable		$	-		$	25,477,346
Right of use assets and lease liabilities		$	-			1,679,556
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS     ARE COMPRISED OF THE FOLLOWING:
Cash and cash equivalents		$	9,790,363		$	15,916,743
Restricted cash			156,843			5,773
Total cash, cash equivalents and restricted cash		$	9,947,206		$	15,922,516

 

View original content:https://www.prnewswire.com/news-releases/nisun-international-reports-unaudited-financial-results-for-the-first-half-of-2021-301384613.html

SOURCE Nisun International Enterprise Development Group Co., Ltd

FAQ

What was Nisun's revenue for the first half of 2021?

Nisun reported total revenue of $38.9 million for the first half of 2021.

How much did Nisun's net income change in 2021?

Nisun's net income increased to $10.5 million in 2021, compared to a net loss of $6.1 million in 2020.

What were the main drivers of Nisun's revenue growth?

The growth was primarily driven by a 176.1% increase in revenue from Small and Medium Enterprise financing solutions.

What impact did increased expenses have on Nisun's financial results?

Nisun's operating expenses increased by 66.4%, which impacted its gross margin, reducing it to 46.9%.