TIAN RUIXIANG Holdings Ltd Reports Financial Results for the Six Months Ended April 30, 2021
Tian Ruixiang Holdings Ltd (Nasdaq: TIRX) reported a 131.3% revenue increase to $1.64 million for the first half of fiscal year 2021, driven by enhanced marketing in China. However, net loss rose 71.4% to $0.40 million due to higher professional fees linked to its IPO. Operating expenses surged 95.5% to $2.10 million, leading to an operating margin improvement to (28.4)% from (52.0)% year-on-year. The company holds cash and cash equivalents of $18.16 million. Management aims for sustainable growth by focusing on customer needs and operational efficiency.
- Revenue increased by 131.3% to $1.64 million.
- Operating margin improved to (28.4)% from (52.0)%.
- Cash and cash equivalents significant at $18.16 million.
- Net loss increased by 71.4% to $0.40 million.
- Operating expenses rose 95.5% to $2.10 million.
- Loss per share widened to $0.06.
BEIJING, Aug. 10, 2021 /PRNewswire/ -- TIAN RUIXIANG Holdings Ltd (Nasdaq: TIRX) (the "Company"), a China-based insurance broker, announced today its unaudited financial results for the six months ended April 30, 2021.
Mr. Zhe Wang, Chairman of the board of the directors and Chief Executive Officer of the Company, commented, "During the first half of the fiscal year 2021, we delivered significant growth as our revenue increased by
First Half of Fiscal Year 2021 Financial Highlights
For the Six Months Ended April 30, | |||||
($ in millions, except per share data) | 2021 | 2020 | % Change | ||
Revenue | 1.64 | 0.71 | |||
Operating expenses | 2.10 | 1.08 | |||
Loss from operations | (0.46) | (0.37) | |||
Operating margin | (28.4)% | (52.0)% | |||
Net loss | (0.40) | (0.24) | |||
Loss per share | (0.06) | (0.05) | |||
- Revenue increased by
131.3% to$1.64 million for the six months ended April 30, 2021, from$0.71 million for the same period of last year, primarily attributable to the growth of our business in China resulting from the increase in our marketing activities. - Operating expenses increased by
95.5% to$2.10 million for the six months ended April 30, 2021, from$1.08 million for the same period of last year. - Operating margin was (28.4)% for the six months ended April 30, 2021, compared to (52.0)% for the same period of last year.
- Net loss was
$0.40 million for the six months ended April 30, 2021, compared to$0.24 million for the same period of last year. - Loss per share was
$0.06 for the six months ended April 30, 2021, compared to$0.05 for the same period of last year.
First Half of Fiscal Year 2021 Financial Results
Revenue
Revenue increased by
Operating Expenses
Third party and related party selling and marketing expenses increased by
Third party and related party general and administrative expenses increased by
Total operating expenses increased by
Loss from Operations
Loss from operations was
The operating margin was (28.4)% for the six months ended April 30, 2021, compared to (52.0)% for the same period of last year.
Other Income (Expense)
Other income (expense) primarily includes interest income from notes receivable and bank deposits, and miscellaneous income. Other income, net, was
Loss before Income Tax
Loss before income tax was
Income tax expense was
Net Loss and Loss per Share
Net loss was
Financial Conditions
As of April 30, 2021, the Company had cash and cash equivalents of
Net cash provided by operating activities was
There were no investing activities for the six months ended April 30, 2021, net cash used in investing activities was
Net cash provided by financing activities was
About TIAN RUIXIANG Holdings Ltd
TIAN RUIXIANG Holdings Ltd, headquartered in Beijing, China, is an insurance broker operating in China. It distributes a wide range of insurance products, which are categorized into two major groups: (1) property and casualty insurance, such as automobile insurance, commercial property insurance, liability insurance; and (2) life insurance, such as individual and group life insurances. Additionally, the Company also provides risk management services to institutional customers. For more information, visit the company's website at http://ir.tianrx.com/.
Forward-Looking Statements
All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. 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 investors that actual results may differ materially from the anticipated results and encourages investors to review risk factors that may affect its future results in the Company's registration statement and in its other filings with the SEC.
For investor and media enquiries, please contact:
TIAN RUIXIANG Holdings Ltd
Investor Relations Department
Email: ir@tianrx.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1 917-609-0333
Email: tina.xiao@ascent-ir.com
TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(IN U.S. DOLLARS) | ||||||||
As of | ||||||||
April 30, 2021 | October 31, 2020 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 18,160,102 | $ | 6,137,689 | ||||
Restricted cash | 810,279 | 785,806 | ||||||
Accounts receivable | 359,268 | 1,247,059 | ||||||
Deferred offering costs | - | 895,567 | ||||||
Prepaid expenses and other current assets | 370,584 | 494,476 | ||||||
Total Current Assets | 19,700,233 | 9,560,597 | ||||||
NON-CURRENT ASSETS: | ||||||||
Security deposit - noncurrent portion | 7,813 | 7,419 | ||||||
Property and equipment, net | 11,824 | 15,097 | ||||||
Intangible assets, net | 155,791 | 160,219 | ||||||
Right-of-use assets, operating leases, net | 268,992 | 317,141 | ||||||
Total Non-current Assets | 444,420 | 499,876 | ||||||
Total Assets | $ | 20,144,653 | $ | 10,060,473 | ||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Note payable | $ | 75,689 | $ | - | ||||
VAT and other taxes payable | 525,120 | 548,630 | ||||||
Salary payable | 353,139 | 129,711 | ||||||
Accrued liabilities and other payables | 436,906 | 180,394 | ||||||
Due to related parties | 46,547 | 241,097 | ||||||
Operating lease liabilities | 144,485 | 170,082 | ||||||
Operating lease liabilities - related party | 23,213 | 18,737 | ||||||
Total Current Liabilities | 1,605,099 | 1,288,651 | ||||||
NON-CURRENT LIABILITIES: | ||||||||
Operating lease liabilities - noncurrent portion | 91,547 | 123,404 | ||||||
Operating lease liabilities - related party - noncurrent portion | - | 9,705 | ||||||
Total Non-current Liabilities | 91,547 | 133,109 | ||||||
Total Liabilities | 1,696,646 | 1,421,760 | ||||||
EQUITY: | ||||||||
TIAN RUIXIANG Holdings Ltd Shareholders' Equity: | ||||||||
Ordinary shares: | ||||||||
Class A ordinary shares: | 6,825 | 3,750 | ||||||
Class B ordinary shares: | 1,250 | 1,250 | ||||||
Additional paid-in capital | 17,609,386 | 7,696,468 | ||||||
Retained earnings | 480,141 | 884,076 | ||||||
Statutory reserve | 170,066 | 170,066 | ||||||
Accumulated other comprehensive income (loss) - foreign currency | 179,828 | (117,392) | ||||||
Total TIAN RUIXIANG Holdings Ltd shareholders' equity | 18,447,496 | 8,638,218 | ||||||
Non-controlling interest | 511 | 495 | ||||||
Total Equity | 18,448,007 | 8,638,713 | ||||||
Total Liabilities and Equity | $ | 20,144,653 | $ | 10,060,473 | ||||
TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIES | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||
(IN U.S. DOLLARS) | ||||||||
For the Six Months Ended April 30, | ||||||||
2021 | 2020 | |||||||
REVENUES | ||||||||
Commissions | $ | 1,636,835 | $ | 707,794 | ||||
Total Revenues | 1,636,835 | 707,794 | ||||||
OPERATING EXPENSES | ||||||||
Selling and marketing | 858,448 | 518,734 | ||||||
Selling and marketing - related parties | 940 | 13,038 | ||||||
General and administrative - professional fees | 656,534 | 49,240 | ||||||
General and administrative - compensation and related benefits | 424,225 | 355,710 | ||||||
General and administrative - related parties | 10,139 | 4,716 | ||||||
General and administrative - other | 152,044 | 134,141 | ||||||
Total Operating Expenses | 2,102,330 | 1,075,579 | ||||||
LOSS FROM OPERATIONS | (465,495) | (367,785) | ||||||
OTHER INCOME (EXPENSE) | ||||||||
Interest income | 1,038 | 87,886 | ||||||
Interest income - related party | - | 6,390 | ||||||
Other income | 67,438 | 42,431 | ||||||
Total Other Income, net | 68,476 | 136,707 | ||||||
LOSS BEFORE INCOME TAXES | (397,019) | (231,078) | ||||||
INCOME TAXES | 6,917 | 4,631 | ||||||
NET LOSS | $ | (403,936) | $ | (235,709) | ||||
LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | (1) | (2) | ||||||
NET LOSS ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD | $ | (403,935) | $ | (235,707) | ||||
COMPREHENSIVE LOSS: | ||||||||
NET LOSS | (403,936) | (235,709) | ||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||
Unrealized foreign currency translation gain (loss) | 297,237 | (23,551) | ||||||
COMPREHENSIVE LOSS | $ | (106,699) | $ | (259,260) | ||||
LESS: COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NON- | 16 | (4) | ||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO TIAN RUIXIANG | $ | (106,715) | $ | (259,256) | ||||
NET LOSS PER ORDINARY SHARE ATTRIBUTABLE TO TIAN RUIXIANG | ||||||||
Basic and diluted | $ | (0.06) | $ | (0.05) | ||||
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING: | ||||||||
Basic and diluted | 6,560,497 | 5,000,000 | ||||||
TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIES | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(IN U.S. DOLLARS) | ||||||||
For the Six Months Ended April 30, | ||||||||
2021 | 2020 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (403,936) | $ | (235,709) | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating | ||||||||
Depreciation expense and amortization of intangible assets | 13,492 | 13,679 | ||||||
Amortization of right-of-use assets | 132,622 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 923,218 | (92,021) | ||||||
Security deposit | 4,495 | 1,626 | ||||||
Prepaid expenses and other current assets | 134,880 | 32,093 | ||||||
Due from related parties | - | (15,245) | ||||||
VAT and other taxes payable | (41,633) | (4,307) | ||||||
Salary payable | 218,031 | 76,746 | ||||||
Accrued liabilities and other payables | 250,097 | 10,923 | ||||||
Due to related parties | 10,071 | 57,711 | ||||||
Operating lease liabilities - related party | (6,141) | 25,331 | ||||||
Operating lease liabilities | (141,073) | - | ||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 1,094,123 | (129,173) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchase of property and equipment | - | (5,935) | ||||||
NET CASH USED IN INVESTING ACTIVITIES | - | (5,935) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds received from note payable | 75,165 | - | ||||||
Proceeds received from related parties' borrowings | 1,652,137 | - | ||||||
Repayments made for related parties' borrowings | (1,863,143) | - | ||||||
Proceeds received from equity offering | 12,300,000 | 5,000 | ||||||
Disbursements for equity offering costs | (1,449,770) | (349,345) | ||||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 10,714,389 | (344,345) | ||||||
EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS AND | 238,374 | (19,561) | ||||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND | 12,046,886 | (499,014) | ||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - beginning of period | 6,923,495 | 6,966,586 | ||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - end of period | $ | 18,970,381 | $ | 6,467,572 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
Cash paid for: | ||||||||
Interest | $ | - | $ | - | ||||
Income taxes | $ | 597 | $ | - | ||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
Payments made by related parties on the Company's behalf | $ | 267,610 | $ | - | ||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED | ||||||||
Cash and cash equivalents at beginning of period | $ | 6,137,689 | $ | 6,243,029 | ||||
Restricted cash at beginning of period | 785,806 | 723,557 | ||||||
Total cash, cash equivalents and restricted cash at beginning of period | $ | 6,923,495 | $ | 6,966,586 | ||||
Cash and cash equivalents at end of period | $ | 18,160,102 | $ | 5,743,827 | ||||
Restricted cash at end of period | 810,279 | 723,745 | ||||||
Total cash, cash equivalents and restricted cash at end of period | $ | 18,970,381 | $ | 6,467,572 | ||||
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SOURCE TIAN RUIXIANG Holdings Ltd
FAQ
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