08.08.2023 22:05:00

Nisun International Reports Financial Results for Fiscal Year 2022

SHANGHAI, Aug. 8, 2023 /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 fiscal year ended December 31, 2022.

Mr. Xiaoyun Huang, Chief Executive Officer of Nisun, commented, "We are pleased to end fiscal year 2022 with solid financial performance, despite the uncertain market conditions during this period. Our total revenue reached $234.2 million in fiscal year 2022, representing an increase of 46% from fiscal year 2021, demonstrating our strong capabilities to execute strategic initiatives successfully. In fiscal year 2022, we have been committed to scaling our supply chain trading business, particularly agricultural supply chain operations. While acknowledging the challenges in our existing business, we have been actively seeking qualified partners for new business opportunities. As mentioned in our recent press releases, many of our new business partnerships established beyond their infancy, we expect to distinguish ourselves from other industry participants by prioritizing the expansion of our business, providing quality supply chain services to our clients and improving our brand awareness. In the second half of 2023 and beyond, we will continue to deepen the comprehensive coverage and dynamic cycle of the agricultural supply chain to support China's grand strategy of rural revitalization. We will also continue to focus on enhancing our operating efficiency, aiming to sustain our long-term competitiveness in the market and creating long-term value for our shareholders." 

Financial Results for the Fiscal Year Ended December 31, 2022

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

Revenue

  • Total revenue increased by 46% to $234.2 million from $160.2 million in fiscal year 2021, primarily with increases in revenue from supply chain trading sales. The increase in total revenues was primarily due to the Company's ability to expand its business, attract higher quality customers, and achieve a higher customer retention.
  • Revenue from Supply Chain Trading Business increased by 110% to $143.4 million from $68.1 million in fiscal year 2021, primarily due to the Company's expansion of its supply chain trading business in various industries such as the agricultural industry and retail industry.
  • Revenue from Financing Services slightly decreased by 1% to $90.8 million from $92.1 million in the prior year period.
  • Revenues generated from the Small and Medium Enterprise (SME) financing solutions business increased modestly to $87.3 million from $87.1 million in the prior year period.
  • Revenue generated from supply chain financing solutions decreased by 28% to $3.5 million from $4.9 million in the prior year period, primarily due to the reason that the Company shifted the focus of business development from the supply chain financing solutions to supply chain trading.

 



For the Year ended December 31,



Changes




2022



%



021



%



($)



( %)


Revenue from Supply Chain
   Trading Business


$

143,361,714




61

%


$

68,132,237




43

%


$

75,229,477




110

%

Revenue from financing
   services:

























     SME financing solutions



87,269,959




37

%



87,133,963




54

%



135,996




0

%

     Supply chain financing
       solutions



3,542,592




2

%



4,930,289




3

%



(1,387,697)




(28)

%

     Other financing solutions



-




0

%



3,222




0

%



(3,222)




(100)

%

Total revenue from
   financing service



90,812,551




39

%



92,067,474




57

%



(1,254,923)




(1)

%

Total revenue


$

234,174,265




100

%


$

160,199,711




100

%


$

73,974,554




46

%

Cost of revenue

Cost of revenue was $197.1 million, compared to $106.2 million in the prior year period, representing an increase of 86%. The increase was primarily attributable to increases in cost of revenue from supply chain trading business.

Gross Profit

Gross profit decreased by 31% to $37.0 million, from $54.0 million in the prior year period. The decrease was primarily due to the significant increase in the costs of third-party channels for SME financing solution services, adjusted by an increase in the gross profit of the Company's supply chain trading business by 393%, which increase was primarily a result of the Company's ability to expand its business, attract higher quality customers, and achieve higher customer retention. Gross margin was 15.8% and 33.7% for the fiscal year ended December 31, 2022 and 2021, respectively. 

Operating Expenses 

Total operating expenses increased by 22% to $19.3 million from $15.9 million in the prior year period. The increase was primarily attributable to increases in bad debt expenses, offset by the decrease in selling expenses, general and administrative expenses and research and development ("R&D") expenses.

  • Selling expenses decreased by 15% to $2.0 million from $2.3 million in the prior year period. The decrease in selling expenses was mainly due to the Company's building up its network in supply chain trading business in various industries and cutting its marketing expenses.
  • General and administrative expenses decreased by 3% to $11.3 million from $11.6 million in the prior year period. The decrease in general and administrative expenses was mainly because the Company paid a one-time agreement cancellation fee of $2.5 million in 2021, adjusted by the impairment loss on goodwill incurred in 2022 and increased expenses on business expansion.
  • R&D expenses was $1.6 million, unchanged from fiscal year 2021.
  • Bad debts expenses were $4.5 million, as compared to $0.3 million in the prior year period. The bad debts expenses incurred in 2022 were primarily because certain suppliers were not be able to fulfill their contractual obligations due to the COVID outbreaks in 2022.

Other Income (Expense), net

The Company had a net other income of $4.8 million, compared to $2.6 million in the prior year period. The increase was due to an increase in investment income from the short-term investments and investment in limited partnership.  

Net Income

In fiscal year 2022, the Company achieved a net income of $17.8 million, compared to $30.5 million in the prior year. The decrease was primarily due to the significant increase in the costs of third-party channels.

Net Income per Share

Net income per share was $4.42 in fiscal year 2022, compared to $14.13 in the prior year period. The weighted average number of shares was 3,986,359 and 2,150,683 in the fiscal year ended December 31, 2022 and 2021, respectively.

Financial Condition and Cash Flow

As of December 31, 2022, the Company had cash, cash equivalents and restricted cash of $67.3 million, compared to $91.6 million as of December 31, 2021.

In the fiscal year ended December 31, 2022, net cash used in operating activities was approximately $29.0 million, net cash provided by investing activities was $17.8 million, and net cash used in financing activities was $8.3 million.

In the fiscal year ended December 31, 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.

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, 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 https://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. 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

Ascent Investor Relations LLC
Tina Xiao
Email: tina.xiao@ascent-ir.com
Tel: +1 (917) 609-0333

 

 

 

NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(EXPRESSED IN US DOLLARS)






December 31,
2022



December 31,
2021


ASSETS







CURRENT ASSETS:







Cash and cash equivalents


$

63,901,329



$

91,447,620


Restricted cash



3,417,244




179,421


Short-term investments



11,700,400




40,666,617


Accounts receivable, net



18,931,346




18,516,150


Advance to suppliers, net



46,968,549




9,213,279


Receivables from supply chain solutions



43,475,981




59,792,613


Inventories



31,609,877




3,979,653


Prepaid expenses and other current assets



10,890,083




4,002,675


TOTAL CURRENT ASSETS



230,894,809




227,798,028











NON-CURRENT ASSETS:









Property and equipment, net



719,574




464,156


Intangible assets, net



1,795,234




2,850,853


Right-of-use assets, net



3,349,432




479,473


Equity investments



373,292




404,022


Investment in limited partnership



14,913,539




16,207,152


Goodwill



23,814,005




25,774,402


Deferred tax assets, net



310,577




-


Long term investment



7,249,319




-


TOTAL NON-CURRENT ASSETS



52,524,972




46,180,058


TOTAL ASSETS


$

283,419,781



$

273,978,086











LIABILITIES









CURRENT LIABILITIES:









Accounts payable


$

40,925,155



$

34,997,401


Short-term bank loans



434,959




784,609


Accrued expenses and other current liabilities



6,090,582




3,575,836


Operating lease liabilities - current



1,008,766




337,698


Payables to supply chain solutions



9,122,978




25,922,931


Advances from customers



21,827,387




3,429,103


Taxes payable



2,748,474




8,851,898


Loan from related party



8,028,965




10,528,965


Due to related parties - current



282,724




295,336


TOTAL CURRENT LIABILITIES



90,469,990




88,723,777











Operating lease liabilities – non-current



2,425,597




148,988


Deferred tax liabilities



727,326




504,033


TOTAL LIABILITIES



93,622,913




89,376,798











SHAREHOLDERS' EQUITY*:









Class A common stock, $0.01 par value, 30,000,000 and 4,000,000 shares
   authorized, 4,006,263 and 3,981,263 shares issued, and 3,944,075 and
   3,981,263 shares outstanding as of December 31, 2022 and 2021, respectively



40,063




39,813


Class B common stock, $0.01 par value, 1,000,000 shares authorized, no shares
   issued and outstanding as of December 31, 2022 and 2021



-




-


Treasury shares



(355,844)




-


Additional paid-in capital



130,503,387




130,318,637


Retained earnings



53,214,304




37,819,226


Statutory reserves



9,167,845




6,942,111


Unearned compensation



-




(125,630)


Accumulated other comprehensive income



(6,937,950)




5,632,199


COMMON SHAREHOLDERS' EQUITY



185,631,805




180,626,356


Non-controlling interests



4,165,063




3,974,932


TOTAL SHAREHOLDERS' EQUITY



189,796,868




184,601,288


TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$

283,419,781



$

273,978,086


*

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,




2022



2021



2020


REVENUES:










Revenue generated from services:










    Small and Medium Enterprise financing solutions


$

87,269,959



$

87,133,963



$

40,779,794


    Supply Chain financing solutions



3,542,592




4,930,289




1,369,859


    Other financing solutions



-




3,222




40,538


Total revenue generated from services



90,812,551




92,067,474




42,190,191


Revenue generated from sales:













    Supply chain trading business



143,361,714




68,132,237




-


Total revenues



234,174,265




160,199,711




42,190,191















COST OF REVENUE:













Cost of revenue - services



(55,472,076)




(37,989,001)




(19,740,267)


Cost of revenue - sales



(140,880,063)




(67,628,806)




-


Business and sales related taxes



(772,830)




(533,760)




(233,389)


GROSS PROFIT



37,049,296




54,048,144




22,216,535















OPERATING EXPENSES:













Selling expenses



1,977,617




2,323,403




3,181,810


General and administrative expenses



11,288,871




11,641,567




8,188,736


Research and development expenses



1,563,718




1,599,728




817,770


Bad debt expense



4,509,634




294,536




-


      Total operating expenses



19,339,840




15,859,234




12,188,316


INCOME FROM OPERATIONS



17,709,456




38,188,910




10,028,219















OTHER INCOME (EXPENSE):













Interest and investment income



2,790,768




2,122,903




585,177


Other income (expense), net



2,021,688




464,210




244,274


      Total other income, net



4,812,456




2,587,113




829,451















INCOME BEFORE PROVISION FOR INCOME TAXES



22,521,912




40,776,023




10,857,670















PROVISION FOR INCOME TAXES



4,741,854




10,269,501




941,064


NET INCOME FROM CONTINUING OPERATIONS



17,780,058




30,506,522




9,916,606















DISCONTINUED OPERATIONS:













(Loss) from discontinued operations, net of tax



-




-




(23,107,066)


Net gain on sale of discontinued operations, net of tax



-




-




136,050


NET (LOSS) FROM DISCONTINUED OPERATIONS, NET OF
TAX



-




-




(22,971,016)


NET INCOME (LOSS)



17,780,058




30,506,522




(13,054,410)


Net (income) attributable to non-controlling interests



(159,246)




(126,161)




(37,380)


NET INCOME (LOSS) - Nisun International's shareholders


$

17,620,812



$

30,380,361



$

(13,091,790)















OTHER COMPREHENSIVE INCOME (LOSS)













Foreign currency translation (loss) income



(12,576,380)




2,039,011




5,507,420


COMPREHENSIVE INCOME (LOSS)



5,044,432




32,419,372




(7,584,370)


Comprehensive loss attributable to non-controlling interests



6,231




2,051




2,172


COMPREHENSIVE INCOME (LOSS)


$

5,050,663



$

32,421,423



$

(7,582,198)















BASIC AND DILUTED EARNINGS (LOSS) PER COMMON
SHARE:













Income from continuing operations


$

4.42



$

14.13



$

5.32


Income (loss) from discontinued operations



-




-




(12.36)


NET EARNINGS (LOSS) PER COMMON SHARE


$

4.42



$

14.13



$

(7.04)















Weighted average number of shares outstanding-basic and diluted*



3,986,359




2,150,683




1,858,767


*

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, 2022, 2021 AND 2020

(EXPRESSED IN US DOLLARS)




2022



2021



2020


CASH FLOWS FROM OPERATING ACTIVITIES:










Net income (loss)


$

17,780,058



$

30,506,522



$

(13,054,410)


Net (loss) from discontinued operations



-




-




(22,971,016)


Net income from continuing operations



17,780,058




30,506,522




9,916,606


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













      Depreciation and amortization



2,113,732




2,180,038




1,686,518


      Stock-based compensation



125,630




498,825




1,097,415


      Shares issued for compensation



185,000




71,175




-


      Bad debt expense



4,509,634




294,536




-


      Impairment of goodwill



777,329




-




-


      Loss on disposition of property and equipment



1,385




190,301




42,534


      (Income) from investments



(541,578)




(808,464)




(169,720)


      Deferred tax (benefit) expense



271,907




275,749




(584,760)


      Changes in operating assets and liabilities:













Accounts receivable



(2,075,274)




(13,294,924)




573,418


Advance to suppliers, net



(39,859,386)




(9,213,279)




-


Prepaid expenses and other current assets



(4,734,501)




(3,464,939)




16,009


Receivables from supply chain solutions



11,372,841




(48,202,128)




(10,741,981)


Inventories



(25,530,993)




(3,931,400)




-


Accounts payable



7,693,011




33,620,611




1,014,227


Advance from customers



19,085,377




3,375,769




(17,977)


Taxes payable



(5,574,048)




5,575,502




1,609,498


Other payables



-




2,576,570




(2,112,886)


Payable to supply chain solutions



(15,198,883)




25,608,622




-


Operating lease liabilities



(855,242)




(952,495)




(580,628)


Accrued expenses and other current liabilities



1,501,078




(1,049,489)




502,100


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



(28,952,923)




23,857,102




2,250,373


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



-




-




436,389


NET CASH (USED IN) PROVIDED BY OPERATING
ACTIVITIES



(28,952,923)




23,857,102




2,686,762















CASH FLOWS FROM INVESTING ACTIVITIES:













Acquisition of property and equipment



(652,585)




(186,705)




(204,904)


Purchase of intangible assets



(74,710)




(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


Cash paid in connection with acquisition, net of cash received



(530,322)




-




-


Investment in limited partnership



-




-




(15,589,966)


Cash received on disposal of discontinued operations



-




14,950,730




-


Proceeds from sale of short-term investments



78,595,280




4,894,270




-


Purchase of short-term investments



(51,567,746)




(39,526,099)




(3,065,134)


Purchase of Long-term investments



(7,430,511)




-




-


Collection of loans to third parties



-




1,643,203




11,019,545


Loans to third parties



(501,905)




-




(1,810,495)


Net cash provided by (used in) investing activities from
      continuing operations



17,837,501




(25,250,787)




(4,712,912)


Net cash (used in) investing activities from discontinued operations



-




-




(6,713)


NET CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES



17,837,501




(25,250,787)




(4,719,625)















CASH FLOWS FROM FINANCING ACTIVITIES:













Proceeds from short-term bank loans



445,831




784,609




-


Proceeds from issuance of common shares and pre-funded warrants



-




70,794,465




-


Proceeds from private placement



-




-




6,503,378


Proceeds from third-party loans



36,770,626




-




-


Repayment of short-term bank loans



(1,239,983)




-




-


Repayment of third-party loans



(41,491,973)




-




-


Repayment to related parties



(10,097)




(1,803,374)




(6,803,115)


Advances from related parties



-




-




1,303,556


Loan from related parties



-




-




10,528,965


Repayment of loan from related parties



(2,500,000)




-




-


Purchase of treasury shares



(355,844)




-




-


Capital contribution from non-controlling interest



37,116




751,841




3,065,134


Capital contribution by shareholder



-




-




4,550,000


Net cash (used in) provided by financing activities from continuing
      operations



(8,344,324)




70,527,541




19,147,918


Net cash (used in) financing activities from discontinued operations



-




-




(788,599)


NET CASH (USED IN) PROVIDED BY FINANCING
ACTIVITIES



(8,344,324)




70,527,541




18,359,319)















      EFFECT OF EXCHANGE RATE CHANGE ON CASH AND
        CASH EQUIVALENTS



(4,848,722)




294,928




2,806,981


NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS



(24,308,468)




69,428,784




19,133,437


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







-




(283,314)


      NET (DECREASE) INCREASE IN CASH AND CASH
         EQUIVALENTS FROM CONTINUING OPERATIONS



(24,308,468)




69,428,784




19,416,751















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



91,627,041




22,198,257




2,781,506















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


$

67,318,573



$

91,627,041



$

22,198,257















SUPPLEMENTAL CASH FLOW DISCLOSURES:













Cash paid for income taxes


$

10,385,495



$

5,546,082



$

552,783


Cash paid for interest


$

496,932



$

370,356



$

124,778















SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:













Amount payable to related parties for business acquisition


$

-



$

-



$

7,007,905


Issuance of shares for business acquisition


$

-



$

-



$

18,330,776


Receivable from disposal of subsidiary


$

289,973



$

-



$

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


$

63,901,329



$

91,447,620



$

22,135,310


Restricted cash



3,417,244




179,421




62,947


Total cash, cash equivalents and restricted cash


$

67,318,573



$

91,627,041



$

22,198,257


 

 

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