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


    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

     

    Related Links :

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