Nisun International Reports Fiscal Year 2021 Financial Results

SHANGHAI, May 17, 2022 /PRNewswire/ -- Nisun International Enterprise Development Group Co., Ltd. ("Nisun" or the "Company") (Nasdaq: NISN), a provider of innovative comprehensive solutions through an integration of technology, industry, and finance, today announced its financial results for the year ended December 31, 2021.

Mr. Xiaoyun Huang, Chairman and Chief Executive Officer of Nisun International, commented, "We are pleased to report strong overall performance in 2021, as revenue increased by 280% and net income from continuing operations more than tripled that of 2020. The Company's supply chain business played a major role in advancing our growth strategy, allowing us to leverage our technological advantages and integrate our resources to operate from a position of greater strength and unlock our full potential. In addition, we began to focus on the agricultural field in 2021 and cooperated with numerous enterprises, gradually working to improve the domestic agricultural supply chain by eliminating gaps between production and sales to boost efficiency."

"For 2022, we will maintain comprehensive coverage and dynamic circulation in the agricultural supply chain to support China's greater strategy for rural revitalization, while expanding our business internationally. We remain dedicated to providing our clients with effective, high-quality supply chain solutions and driving long-term value for our shareholders," Mr. Huang concluded.

Financial Results for the Full Year Ended December 31, 2021

(All comparisons made on a year-over-year ("yoy") basis)

Revenues

Total revenue increased by 280% to $160.2 million in 2021 from $42.2 million in 2020, with increases in revenue from both financial services and supply chain trading businesses. The increase in total revenues was primarily attributable to business expansion, higher-quality customers and an improved customer retention rate.

  • ·Revenue from Financial Services increased by 118% to $92.1 million from $42.2 million in prior year.
  • Revenues generated from the Small- and Medium-Enterprise ("SME") financing solutions business increased by 114% to $87.1 million from $40.8 million in the prior year, primarily due to increased demand from SME customers seeking alternative financing solutions to bank financing.
  • Revenue generated from supply chain financing solutions increased by 260% to $4.9 million from $1.4 million in the prior year, primarily due to the Company's expansion of its supply chain solutions business to various industries, including energy, retail and agriculture.
  • Revenue from Supply Chain Trading Business was $68.1 million. The Company launched its supply chain trading business in July 2021 after securing high-quality customers and resources through its supply chain financing solutions business. The Company expects revenue from its supply chain trading business will continue to grow.


Year ended December 31,



Changes



Changes




2021



%



2020



%



($)



(%)


Revenue from financial services:



















SME financing solutions


$

87,133,963




54

%


$

40,779,794




97

%



46,354,169




114

%

Supply chain financing solutions



4,930,289




3

%



1,369,859




3

%



3,560,430




260

%

Other financing solutions



3,222




0

%



40,538




0

%



(37,316)




(92)

%

Total revenue from financial service


$

92,067,474




57

%


$

42,190,191




100

%



49,877,283




118

%

Revenue from Supply Chain Trading Business



68,132,237




43

%



-




-

%



68,132,237




100

%

Total revenue



160,199,711




100

%



42,190,191




100

%



118,009,520




280

%

 

Cost of revenue

Cost of revenue was $106.2 million in 2021, compared to $20.0 million in 2020, representing an increase of 432%. The increase was primarily attributable to increases in revenue and additional operational and staff costs incurred in 2021.

Gross Profit

Gross profit from continuing operations increased by 143% to $54.0 million from $22.2 million in the prior year. The increase was primarily due to the fact that the Company commenced its financial services business in July 2019 and has experienced a significant increase in demand from SME enterprises in mainland China to seek standardized financing solutions as alternatives to bank financing.

Operating Expenses 

Total operating expenses increased by 30% to $15.9 million from $12.2 million in the prior year. The increase was primarily attributable to increases in general and administrative expenses and research and development ("R&D") expenses, offset by a decrease in selling expenses.

  • Selling expenses decreased by 27% to $2.3 million from $3.2 million in the prior year. The decrease in expenses was mainly a result of the Company's efforts in cutting marketing costs.
  • General and administrative expenses increased by 46% to $11.9 million from $8.2 million in the prior year. The increase in general and administrative expenses was mainly because: (i) more labor and managerial expenses incurred in 2021 as a result of the Company's expansion in its supply chain business in 2021, and (ii) the Company spent approximately $2.5 million more in professional fees for financing activities and public company compliance.
  • R&D expenses increased by 96% to $1.6 million from $0.8 million in the prior year. The increased R&D expenses were primarily used to enhance and develop the functionalities of the Company's supply chain solutions and other financing service apps and platforms.


Year ended December 31,



Changes



Changes




2021



%



2020



%



($)



(%)


Selling expenses


$

2,323,403




15

%


$

3,181,810




26

%



(858,407)




(27)

%

General and administrative expenses



11,936,103




75

%



8,188,736




67

%



3,747,367




46

%

Research and development expenses



1,599,728




10

%



817,770




7

%



781,958




96

%

Total operating expenses


$

15,859,234




100

%


$

12,188,316




100

%



3,670,918




30

%




























 

Other income (expense), net

In 2021, the Company had a net other income of $2.6 million, compared to $0.8 million in 2020. The increase was due to an increase in investment income from short-term investments and investment in limited partnerships.

Net income (loss)

In 2021, the Company achieved net income of $30.5 million, compared to net loss of approximately $13.1 million in 2020. The increase was primarily attributable to a significant increase in revenue from the financial services business and disposal of the equipment and engineering business in 2020.

Net income from continuing operations increased by 208% to $30.5 million from $9.9 million in prior year, primarily due to the significant increase in revenue and related gross profit from financing solution services.

Net income (loss) per share

Net income per share was $1.41 for fiscal year 2021, compared to a net loss per share of $0.71 for fiscal year 2020. Net income per share from continuing operations was $1.41 for fiscal 2021, compared to $0.53 for fiscal 2020.

The weighted average number of shares was 21,506,828 and 18,587,674 for the years ended December 31, 2021 and 2020, respectively.

Financial Condition and Cash Flow

As of December 31, 2021, the Company had cash, cash equivalents and restricted cash of $91.6 million, compared to $22.2 million as of December 31, 2020.

In 2021, net cash provided by operating activities was approximately $23.9 million, net cash used in investing activities was $25.3 million, and net cash provided by financing activities was $70.5 million.

In 2020, net cash provided by operating activities was approximately $2.3 million, net cash used in investing activities was $4.7 million, and net cash provided by financing activities was $19.1 million.

Recent Development and Updates

Strategic Collaborations to further expand the supply chain business: 

The Company cooperated with enterprises in various industries to further expand its supply chain business. These collaborations are expected to enhance the Company's development advantages in its five core industries of agriculture, e-commerce, gold, coal and chemicals, connecting innovative resources to facilitate value-sharing.

  • The Company started to focus on agricultural industries in 2021 and entered into strategic collaborations with renowned domestic enterprises, such as Henan Wanbang International Agricultural Product Logistics Park and Henan Fulushi Industrial Co., Ltd., cooperating on supply chain solution services to support the trade of agricultural products.
  • The Company held an investment cooperation ceremony with Gansu Silu Huixiang Trading Co., Ltd., a wholly-owned subsidiary of Jiuquan Jingtou Group. During the ceremony, the two parties entered into an agreement to establish a supply chain joint venture company in Jiuquan City, Gansu Province, to provide specialized supply chain services to local enterprises.
  • The Company entered into a strategic cooperation agreement with Shanghai Bailian Group to procure intelligent appliances, such as computer, communication and consumer electronics ("3C Products"). The two parties will share resources and create an effective bridge between supply and demand to establish a new supply chain model and further develop new communication channels in China's retail industry. In addition, the two parties will join together to promote ongoing expansion and transformation of the 3C Products market in China.
  • The Company entered into a strategic cooperation with Zhumadian Industry Investment Group, a state-owned enterprise located in south Henan Province. Under this cooperation, the two parties will establish a new company, Zhumadian City Industry Investment Nisun Supply Chain Co., Ltd. with RMB 500 million in registered capital. This newly established company will serve as a link between the local government and enterprises to further growth of the local economy and small businesses.

Acquisition: 

On January 14, 2022, Fintech (Henan) Supply Chain Management Co., Ltd, a subsidiary of Fintech (Shanghai) Digital Technology Co., Ltd and a controlled affiliate of the Company, entered into a share acquisition agreement with Henan Youjiatian Agricultural Technology Co., Ltd. ("Youjiatian") and its sole shareholder to acquire a 51% equity interest in Youjiatian. This acquisition is expected to further facilitate Nisun's expansion into the agricultural 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 rich industry experience, Nisun is dedicated to providing professional supply chain solutions to Chinese and foreign enterprises and financial institutions. Through its subsidiaries and controlled companies, 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-international.com.

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 U.S. Private Securities Litigation Reform Act of 1995. 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

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2021 AND 2020

(EXPRESSED IN US DOLLARS)




December 31,
2021



December 31,
2020


ASSETS







CURRENT ASSETS:







Cash and cash equivalents


$

91,447,620



$

22,135,310


Restricted cash



179,421




62,947


Short-term investments



40,666,617




4,680,843


Accounts receivable, net



18,516,150




4,939,912


Advance to suppliers, net



9,213,279




-


Receivables from supply chain solutions



59,792,613




10,741,981


Inventories



3,979,653




-


Prepaid expenses and other current assets



4,002,675




971,839


Loans to third parties - current portion



-




1,915,709


Receivable from sale of discontinued operations



-




14,950,730


TOTAL CURRENT ASSETS



227,798,028




60,399,271











NON-CURRENT ASSETS:









Property and equipment, net



464,156




655,643


Intangible assets, net



2,850,853




3,726,602


Right-of-use assets, net



479,473




1,464,745


Equity investments



404,022




484,864


Investment in limited partnership and other investments



16,207,152




15,736,927


Goodwill



25,774,402




25,172,407


Deferred tax assets, net



-




456,370


TOTAL NON-CURRENT ASSETS



46,180,058




47,697,558


TOTAL ASSETS


$

273,978,086



$

108,096,829











LIABILITIES









CURRENT LIABILITIES:









Accounts payable


$

34,997,401



$

1,312,560


Short-term bank loans



784,609




-


Accrued expenses and other current liabilities



3,575,836




2,001,031


Operating lease liabilities - current



337,698




736,854


Payables to supply chain solutions



25,922,931




-


Advances from customer



3,429,103




11,624


Taxes payable



8,851,898




3,133,038


Loan from related party



10,528,965




10,528,965


Due to related parties - current



295,336




2,071,309


Purchase price payable for acquisition of NAMI



-




7,007,905


TOTAL CURRENT LIABILITIES



88,723,777




26,803,286











Operating lease liabilities – non-current



148,988




680,130


Deferred tax liabilities



504,033




676,015


TOTAL LIABILITIES



89,376,798




28,159,431











SHAREHOLDERS' EQUITY:









Class A common stock, $0.001 par value, 40,000,000 shares authorized, 39,812,629 and 20,555,129 shares
issued and outstanding as of December 31, 2021 and 2020, respectively



39,813




20,555


Class B common stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding
as of December 31, 2021 and 2020



-




-


Additional paid-in capital



130,318,637




59,472,255


Retained earnings



37,819,226




9,629,712


Statutory reserves



6,942,111




4,751,264


Unearned compensation



(125,630)




(624,455)


Accumulated other comprehensive income



5,632,199




3,593,188


COMMON SHAREHOLDERS' EQUITY



180,626,356




76,842,519


Non-controlling interests



3,974,932




3,094,879


TOTAL SHAREHOLDERS' EQUITY



184,601,288




79,937,398


TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$

273,978,086



$

108,096,829


 

 

 

NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

FOR THE YEAR ENDED DECEMBER 31, 2021, 2020 AND 2019

(EXPRESSED IN US DOLLARS)




For the Year Ended December 31,




2021



2020



2019


REVENUES:










Revenue generated from services:










Small and Medium Enterprise financing solutions


$

87,133,963



$

40,779,794



$

2,522,143


Supply Chain financing solutions



4,930,289




1,369,859




-


Other financing solutions



3,222




40,538




3,381


Total revenue generated from services



92,067,474




42,190,191




2,525,524


Revenue generated from sales:













Supply chain trading business



68,132,237




-




-


Total revenues



160,199,711




42,190,191




2,525,524















COST OF REVENUE:













Cost of revenue - services



(37,989,001)




(19,740,267)




-


Cost of revenue - sales



(67,628,806)




-




-


Business and sales related taxes



(533,760)




(233,389)




(19,492)


GROSS PROFIT



54,048,144




22,216,535




2,506,032















OPERATING EXPENSES:













Selling expenses



2,323,403




3,181,810




93,620


General and administrative expenses



11,936,103




8,188,736




1,082,631


Research and development expenses



1,599,728




817,770




155,216


Total operating expenses



15,859,234




12,188,316




1,331,467


INCOME FROM OPERATIONS



38,188,910




10,028,219




1,174,565















OTHER INCOME (EXPENSE):













Interest and investment income



2,122,903




585,177




-


Other income (expense), net



464,210




244,274




1,371


Total other income (expense), net



2,587,113




829,451




1,371















INCOME BEFORE PROVISION FOR INCOME TAXES



40,776,023




10,857,670




1,175,936















PROVISION (BENEFIT) FOR INCOME TAXES



10,269,501




941,064




(55,731)


NET INCOME FROM CONTINUING OPERATIONS



30,506,522




9,916,606




1,231,667















DISCONTINUED OPERATIONS:













(Loss) income from discontinued operations, net of tax



-




(23,107,066)




1,508,323


Net gain on sale of discontinued operations, net of tax



-




136,050




-


NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX



-




(22,971,016)




1,508,323


NET INCOME (LOSS)



30,506,522




(13,054,410)




2,739,990


 Net income attributable to non-controlling interests



126,161




37,380




-


NET INCOME (LOSS)


$

30,380,361



$

(13,091,790)



$

2,739,990















OTHER COMPREHENSIVE INCOME (LOSS)













Foreign currency translation income (loss)



2,039,011




5,507,420




(561,091)


COMPREHENSIVE INCOME (LOSS)



32,419,372




(7,584,370)




2,178,899


Comprehensive loss attributable to non-controlling interests



(2,051)




(2,172)




-


COMPREHENSIVE INCOME (LOSS)


$

32,421,423



$

(7,582,198)



$

2,178,899















BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE:


























Income from continuing operations


$

1.41



$

0.53



$

0.08


Income (loss) from discontinued operations



-




(1.24)




0.09


TOTAL EARNINGS (LOSS) PER COMMON SHARE


$

1.41



$

(0.71)



$

0.17















Weighted average number of shares outstanding-basic and diluted



21,506,828




18,587,674




16,269,577


 

 

 

NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019

(EXPRESSED IN US DOLLARS)




2021



2020



2019


CASH FLOWS FROM OPERATING ACTIVITIES:










Net income (loss)


$

30,506,522



$

(13,054,410)



$

2,739,990


Net (loss) income from discontinued operations



-




(22,971,016)




1,508,323


Net income from continuing operations



30,506,522




9,916,606




1,231,667


Adjustments to reconcile net income to net cash provided by (used in) operating
activities:













Depreciation and amortization



2,180,038




1,686,518




242,409


Stock-based compensation



498,825




1,097,415




-


Shares issued for compensation



71,175




-




-


Provision for doubtful accounts



294,536




-




-


Loss on disposition of property and equipment



190,301




42,534




-


(Income) from investments



(808,464)




(169,720)




-


Deferred tax expense (benefit)



275,749




(584,760)




(55,731)


Changes in operating assets and liabilities:













Accounts receivable



(13,294,924)




573,418




(815,534)


Advance to suppliers



(9,213,279)




-




-


Prepaid expenses and other current assets



(3,464,939)




16,009




(108,150)


(Increase) in operating lease right-of-use assets



-




(56,831)




-


Receivables from supply chain solutions



(48,202,128)




(10,741,981)




-


Inventories



(3,931,400)




-




-


Accounts payable



33,620,611




1,014,227




-


Advance from customers



3,375,769




(17,977)




-


Taxes payable



5,575,502




1,609,498




54,474


Other payables



2,576,570




(2,112,886)




-


Payable to supply chain solutions



25,608,622




-




-


Operating lease liabilities



(952,495)




(523,797)




-


Accrued expenses and other current liabilities



(1,049,489)




502,100




49,574


Net cash provided by operating activities from continuing operations



23,857,102




2,250,373




598,709


Net cash provided by (used in) operating activities from discontinued operations



-




436,389




(263,476)


NET CASH PROVIDED BY OPERATING ACTIVITIES



23,857,102




2,686,762




335,233















CASH FLOWS FROM INVESTING ACTIVITIES:













Acquisition of property and equipment



(186,705)




(204,904)




(237,548)


Purchase of intangible asset



(18,281)




(94,400)




-


Proceeds from disposal of equipment



-




41,688




-


Cash (paid) received in connection with Nami acquisition



(7,007,905)




4,990,754




2,043,176


Investment in limited partnership and other investments



-




(15,589,966)




-


Cash received on disposal of discontinued operations



14,950,730




-




-


Proceeds from sale of short-term investments



4,894,270




-




-


Purchase of short-term investments



(39,526,099)




(3,065,134)




-


Collection of loans to third parties



1,643,203




11,019,545




-


Loans to third parties



-




(1,810,495)




(3,611,682)


Net cash (used in) investing activities from continuing operations



(25,250,787)




(4,712,912)




(1,806,054)


Net cash (used in) investing activities from discontinued operations



-




(6,713)




(157,440)


NET CASH (USED IN) INVESTING ACTIVITIES



(25,250,787)




(4,719,625)




(1,963,494)















CASH FLOWS FROM FINANCING ACTIVITIES:













Proceeds from short-term bank loans



784,609




-




-


Proceeds from issuance of common shares and pre-funded warrants



70,794,465




-




-


Proceeds from private placement



-




6,503,378




-


Repayment to related party



(1,803,374)




(6,803,115)




-


Advances from related parties



-




1,303,556




566,360


Loan from related parties



-




10,528,965




-


Capital contribution from non-controlling interest



751,841




3,065,134




-


Capital contribution by shareholder



-




4,550,000




3,582,781


Net cash provided by financing activities from continuing operations



70,527,541




19,147,918




4,149,141


Net cash (used in) financing activities from discontinued operations



-




(788,599)




(996,355)


NET CASH PROVIDED BY FINANCING ACTIVITIES



70,527,541




18,359,319




3,152,786















EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH
EQUIVALENTS



294,928




2,806,981




(184,449)


NET INCREASE IN CASH AND CASH EQUIVALENTS



69,428,784




19,133,437




1,340,076


Less: (decrease) in cash and cash equivalents from discontinued operations



-




(283,314)




(1,440,823)


NET INCREASE IN CASH AND CASH EQUIVALENTS FROM
CONTINUING OPERATIONS



69,428,784




19,416,751




2,780,899















CASH AND CASH EQUIVALENTS AND RESTRICTED CASH FROM
CONTINUING OPERATIONS-BEGINNING



22,198,257




2,781,506




607















CASH AND CASH EQUIVALENTS AND RESTRICTED CASH FROM
CONTINUING OPERATIONS-ENDING


$

91,627,041



$

22,198,257



$

2,781,506















SUPPLEMENTAL CASH FLOW DISCLOSURES:













Cash paid for income taxes


$

5,546,082



$

552,783



$

5,158


Cash paid for interest


$

370,356



$

124,778



$

147,900















SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:













Payment payable to related parties for business acquisition


$

-



$

7,007,905



$

7,000,000


Issuance of shares for business acquisition


$

-



$

18,330,776



$

11,426,289


Receivable from sale of discontinued operations


$

-



$

14,950,730



$

-


Issuance of shares for share-based compensation


$

71,175



$

1,721,870



$
















CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS
ARE COMPRISED OF THE FOLLOWING:













Cash and cash equivalents


$

91,447,620



$

22,135,310



$

2,756,490


Restricted cash



179,421




62,947




25,016


Total cash, cash equivalents and restricted cash


$

91,627,041



$

22,198,257



$

2,781,506


 

 

 

View original content:https://www.prnewswire.com/news-releases/nisun-international-reports-fiscal-year-2021-financial-results-301548638.html


Source: Nisun International Enterprise Development Group Co., Ltd Related Stocks: NASDAQ:NISN
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