SHANGHAI, July 12, 2024 /PRNewswire/ — Nisun International Enterprise Development Group Co., Ltd. ("Nisun International" or the "Company") (NASDAQ: NISN), a technology and industry driven integrated supply chain solutions provider, today announced its financial results for the fiscal year ended December 31, 2023.
Financial Highlights:
Revenue: Total revenue for the year was $386.7 million, representing a 65% increase compared to $234.2 million in 2022. Gross Profit: Gross profit increased to $40.0 million from $37.0 million in the previous year. Net Income: Net income for 2023 was $17.7 million. Cash and Cash Equivalents: The Company ended the year with $114.5 million in cash and cash equivalents. Earnings per Share (EPS): The Company reported earnings of $4.46 per share, with a cash per share value of $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 65% is a testament to our robust supply chain solutions. We have made significant strides in expanding our supply chain capabilities, diversifying into other agricultural products. These efforts have positioned us well for sustained growth and profitability."
Mr. Liu continued, "Despite our strong financial performance, substantial cash reserves of $29.0 per share, and robust earnings, our stock trades at just over one times annual earnings by the end of June. We believe this significantly undervalues our company. The Board of Directors and I are actively considering strategic alternatives to unlock shareholder value and better align our market valuation with the intrinsic value of our company. Our strong cash position and ongoing growth initiatives provide a solid foundation for these efforts."
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 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.
For more information, please contact:
Nisun International Enterprise Development Group Co., Ltd
Investor Relations
Tel: +86 (21) 2357-0055
Email: [email protected]
Horizon Research Management Consultancy
Michael Wei
Email: [email protected]
NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(EXPRESSED IN US DOLLARS)
December 31,
2023
December 31,
2022
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, $0.01 par value, 30,000,000 and 30,000,000 shares
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, $0.01 par value, 1,000,000 shares authorized, no shares
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
assets
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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