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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
Under the Securities Exchange Act of 1934
For the month of December 2023
Commission File Number: 001-37829
NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD
(Registrant’s name)
21F, 55 Loushanguan Rd
Changning District Shanghai 200336
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.:
Form 20-F ☒ Form 40-F ☐
Explanatory Note:
The Registrant is furnishing this Report on Form 6-K to provide its unaudited interim financial statements for the six months ended June 30, 2023 and incorporate such financial statements into the Registrant’s registration statement referenced below.
This Form 6-K is hereby incorporated by reference into the registration statement of the Registrant on Form F-3 (Registration No. 333-256550) and into each prospectus outstanding under the foregoing registration statement, to the extent not superseded by documents or reports subsequently filed or furnished by the Registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.
Financial Statements and Exhibits.
The following exhibit is attached.
| Exhibit | Description | |
| 99.1 | Unaudited Condensed Consolidated Financial Statements for the Six Months Ended June 30, 2023 | |
| 99.2 | Press Release, dated December 19, 2023, titled “Nisun International Reports Unaudited Financial Results for the First Half of 2023” | |
| 101.INS | Inline XBRL Instance Document | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File formatted as Inline XBRL and contained in Exhibit 101 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Nisun International Enterprise Development Group Co., Ltd |
||
| Date: December 19, 2023 | By: | /s/ Xiaoyun Huang |
| Name: | Xiaoyun Huang | |
| Title: |
Chief Executive Officer (Principal Executive Officer) and Duly Authorized Officer |
|
2
Exhibit 99.1
NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2023 AND DECEMBER 31, 2022
(EXPRESSED IN US DOLLARS)
| June 30, 2023 |
December 31, 2022 |
|||||||
| ASSETS | (Unaudited) | |||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 105,994,692 | $ | 63,901,329 | ||||
| Restricted cash | 643,020 | 3,417,244 | ||||||
| Short-term investments | 18,659,413 | 11,700,400 | ||||||
| Accounts receivable, net | 28,967,293 | 18,931,346 | ||||||
| Advance to suppliers, net | 17,406,052 | 46,968,549 | ||||||
| Receivables from supply chain solutions | 38,035,826 | 43,475,981 | ||||||
| Inventories | 48,819,585 | 31,609,877 | ||||||
| Prepaid expenses and other current assets | 29,629,649 | 10,890,083 | ||||||
| TOTAL CURRENT ASSETS | 288,155,530 | 230,894,809 | ||||||
| NON-CURRENT ASSETS: | ||||||||
| Property and equipment, net | 725,806 | 719,574 | ||||||
| Intangible assets, net | 1,302,682 | 1,795,234 | ||||||
| Right-of-use assets, net | 2,639,192 | 3,349,432 | ||||||
| Equity investments | 355,064 | 373,292 | ||||||
| Investment in limited partnership | 14,913,539 | |||||||
| Goodwill | 22,651,104 | 23,814,005 | ||||||
| Deferred tax assets, net | 14,852 | 310,577 | ||||||
| Long-term investments | 4,137,189 | 7,249,319 | ||||||
| TOTAL NON-CURRENT ASSETS | 31,825,889 | 52,524,972 | ||||||
| TOTAL ASSETS | $ | 319,981,419 | $ | 283,419,781 | ||||
| LIABILITIES | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 37,109,910 | $ | 40,925,155 | ||||
| Short-term bank loans | 551,625 | 434,959 | ||||||
| Accrued expenses and other current liabilities | 10,054,282 | 6,090,582 | ||||||
| Operating lease liabilities - current | 897,816 | 1,008,766 | ||||||
| Payables to supply chain solutions | 10,815,864 | 9,122,978 | ||||||
| Advances from customer | 61,733,220 | 21,827,387 | ||||||
| Taxes payable | 3,361,634 | 2,748,474 | ||||||
| Loan from related party | 28,965 | 8,028,965 | ||||||
| Due to related parties - current | 268,917 | 282,724 | ||||||
| TOTAL CURRENT LIABILITIES | 124,822,233 | 90,469,990 | ||||||
| Operating lease liabilities – non-current | 1,883,981 | 2,425,597 | ||||||
| Deferred tax liabilities | 360,280 | 727,326 | ||||||
| TOTAL LIABILITIES | 127,066,494 | 93,622,913 | ||||||
| SHAREHOLDERS’ EQUITY: | ||||||||
| Class A common stock, $0.01 par value, 30,000,000 and 30,000,000 shares authorized, 4,006,263 and 4,006,263 shares issued, and 3,940,865 and 3,944,075 shares outstanding as of June 30, 2023 and December 31, 2022, respectively | 40,063 | 40,063 | ||||||
| Class B common stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding as of June 30, 2023 and December 31, 2022 | ||||||||
| Treasury shares | (373,358 | ) | (355,844 | ) | ||||
| Additional paid-in capital | 130,503,387 | 130,503,387 | ||||||
| Retained earnings | 63,534,936 | 53,214,304 | ||||||
| Statutory reserves | 10,166,600 | 9,167,845 | ||||||
| Unearned compensation | ||||||||
| Accumulated other comprehensive (loss) income | (15,115,268 | ) | (6,937,950 | ) | ||||
| COMMON SHAREHOLDERS’ EQUITY | 188,756,360 | 185,631,805 | ||||||
| Non-controlling interests | 4,158,565 | 4,165,063 | ||||||
| TOTAL SHAREHOLDERS’ EQUITY | 192,914,925 | 189,796,868 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 319,981,419 | $ | 283,419,781 | ||||
NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022
(EXPRESSED IN US DOLLARS)
(Unaudited)
| For the Six Months Ended June 30, |
||||||||
| 2023 | 2022 | |||||||
| REVENUES: | ||||||||
| Revenues generated from sales: | ||||||||
| Supply chain trading business | $ | 66,249,853 | $ | 70,727,078 | ||||
| Revenues generated from services: | ||||||||
| Small and Medium Enterprise financing solutions | 57,956,690 | 44,822,386 | ||||||
| Supply Chain financing solutions | 2,737,265 | 2,498,446 | ||||||
| Total revenue generated from services | 60,693,955 | 47,320,832 | ||||||
| TOTAL REVENUES | 126,943,808 | 118,047,910 | ||||||
| COST OF REVENUE: | ||||||||
| Cost of revenue - services | (39,529,203 | ) | (26,451,468 | ) | ||||
| Cost of revenue - sales | (67,342,086 | ) | (69,854,217 | ) | ||||
| Business and sales related taxes | (231,103 | ) | (165,506 | ) | ||||
| GROSS PROFIT | 19,841,416 | 21,576,719 | ||||||
| OPERATING EXPENSES: | ||||||||
| Selling expenses | 2,637,517 | 261,590 | ||||||
| General and administrative expenses | 5,489,580 | 5,177,548 | ||||||
| Research and development expenses | 351,200 | 834,195 | ||||||
| Bad debt expenses | (235,377 | ) | ||||||
| Total operating expenses | 8,242,920 | 6,273,333 | ||||||
| INCOME FROM OPERATIONS | 11,598,496 | 15,303,386 | ||||||
| OTHER INCOME (EXPENSE): | ||||||||
| Interest and investment income | 1,498,856 | 1,249,509 | ||||||
| Other income, net | 880,144 | 1,512,562 | ||||||
| Total other income (expense), net | 2,379,000 | 2,762,071 | ||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 13,977,496 | 18,065,457 | ||||||
| PROVISION FOR INCOME TAXES | 2,610,535 | 3,414,449 | ||||||
| NET INCOME FROM CONTINUING OPERATIONS | 11,366,961 | 14,651,008 | ||||||
| DISCONTINUED OPERATIONS: | ||||||||
| (Loss) from discontinued operations, net of tax | (292,069 | ) | ||||||
| NET (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | (292,069 | ) | ||||||
| NET INCOME | 11,366,961 | 14,358,939 | ||||||
| Less: net income from continuing operations attributable to non-controlling interest | 47,574 | 330,620 | ||||||
| Less: net (loss) from discontinued operations attributable to non-controlling interest | (143,114 | ) | ||||||
| NET INCOME ATTRIBUTABLE TO SHAREHOLDERS’ | $ | 11,319,387 | $ | 14,171,433 | ||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||
| Foreign currency translation (loss) income | (8,175,831 | ) | (8,182,987 | ) | ||||
| COMPREHENSIVE INCOME | 3,143,556 | 5,988,446 | ||||||
| Comprehensive (loss) attributable to non-controlling interests | (1,487 | ) | 6,658 | |||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREHOLDERS’ | $ | 3,142,069 | $ | 5,995,104 | ||||
| BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE: | ||||||||
| Income from continuing operations | $ | 2.87 | $ | 3.67 | ||||
| (Loss) from discontinued operations | (0.07 | ) | ||||||
| TOTAL EARNINGS (LOSS) PER COMMON SHARE | $ | 2.87 | $ | 3.60 | ||||
| 3,943,288 | 3,991,263 | |||||||
NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX MOTHS ENDED JUNE 30, 2023 AND 2022
(EXPRESSED IN US DOLLARS)
(Unaudited)
| For the Six Months Ended June 30, |
||||||||
| 2023 | 2022 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 11,366,961 | $ | 14,358,939 | ||||
| Net (loss) from discontinued operations | - | (292,069 | ) | |||||
| Net income from continuing operations | 11,366,961 | 14,651,008 | ||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 1,294,166 | 639,002 | ||||||
| Stock-based compensation | 125,630 | |||||||
| Bad debt expense | (234,120 | ) | ||||||
| Loss on disposition of property and equipment | 4,178 | |||||||
| Loss (Income) from investments | (7,296 | ) | 218,929 | |||||
| Deferred tax (benefit) expense | (51,609 | ) | (92,798 | ) | ||||
| Issuance of stock for services | 185,000 | |||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (11,089,756 | ) | (4,310,119 | ) | ||||
| Advance to suppliers | 28,012,573 | (15,246,921 | ) | |||||
| Prepaid expenses and other current assets | (3,140,645 | ) | 1,444,248 | |||||
| Operating lease right-of-use assets | (3,115,440 | ) | ||||||
| Receivables from supply chain solutions | 3,411,356 | 32,564,078 | ||||||
| Inventories | (18,988,807 | ) | (17,968,203 | ) | ||||
| Accounts payable | (1,839,578 | ) | (25,094,299 | ) | ||||
| Advance from customers | 41,474,328 | 9,408,745 | ||||||
| Taxes payable | 754,075 | (6,205,647 | ) | |||||
| Other payables | 4,016,393 | (735,659 | ) | |||||
| Payable to supply chain solutions | 2,165,239 | (19,913,058 | ) | |||||
| Operating lease liabilities | (490,946 | ) | 3,041,808 | |||||
| Accrued expenses and other current liabilities | 567,503 | 340,313 | ||||||
| Net cash (used in) provided by operating activities from continuing operations | 57,224,015 | (30,063,383 | ) | |||||
| Net cash (used in) operating activities of discontinued operations | (356,347 | ) | ||||||
| NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | 57,224,015 | (30,419,730 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Acquisition of property and equipment | (226,403 | ) | (178,953 | ) | ||||
| Purchase of intangible asset | (43,534 | ) | ||||||
| Cash paid for acquisitions | (78,944 | ) | ||||||
| Purchase of long-term investment | (2,985,921 | ) | ||||||
| Cash received on disposal of discontinued operations | ||||||||
| Proceeds from sale of short-term investments | 53,004,461 | 49,210,720 | ||||||
| Proceeds from sale of Long-term investment | 2,792,763 | |||||||
| Proceeds from investment in debt securities | 14,204,625 | |||||||
| Purchase of short-term investments | (60,463,319 | ) | (21,825,681 | ) | ||||
| Repayments from loans to third parties | 471,604 | |||||||
| Payments made for loans to third parties | (16,756,578 | ) | ||||||
| Net cash provided by (used in) investing activities from continuing operations | (7,016,381 | ) | 24,141,221 | |||||
| Net cash (used in) investing activities from discontinued operations | ||||||||
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (7,016,381 | ) | 24,141,221 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from short-term bank loans | 139,638 | |||||||
| Repayment of short-term bank loans | (11,912 | ) | (773,960 | ) | ||||
| Proceeds from third party loans | 1,954,934 | 3,363,632 | ||||||
| Repayment to related party | (8,000,000 | ) | (1,010,517 | ) | ||||
| Repayment of third party loans | (2,252,363 | ) | ||||||
| Proceeds from related party | 8,049,187 | |||||||
| Capital contribution from non-controlling interest | 37,116 | |||||||
| Repurchase Treasury shares | (17,514 | ) | ||||||
| Net cash provided by (used in) financing activities from continuing operations | (8,150,101 | ) | 9,628,342 | |||||
| Net cash (used in) financing activities from discontinued operations | ||||||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (8,150,101 | ) | 9,628,342 | |||||
| EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | (2,738,394 | ) | (3,539,963 | ) | ||||
| NET (DECREASE) IN CASH AND CASH EQUIVALENTS | 39,319,139 | (190,130 | ) | |||||
| Add: decrease in cash and cash equivalents from discontinued operations | 356,347 | |||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS | 39,319,139 | 166,217 | ||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-BEGINNING | 67,318,573 | 91,627,041 | ||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-ENDING | $ | 106,637,712 | $ | 91,793,258 | ||||
| SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||||||||
| Cash paid for income taxes | $ | 1,560,580 | $ | 8,163,616 | ||||
| Cash paid for interest | $ | 11,912 | $ | 5,420 | ||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||||||||
| Accrued lease liabilities | $ | 2,781,797 | $ | 3,396,841 | ||||
| Issuance of shares for compensation | $ | $ | 185,000 | |||||
| CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS ARE COMPRISED OF THE FOLLOWING: | ||||||||
| Cash and cash equivalents | $ | 105,994,692 | $ | 90,988,227 | ||||
| Restricted cash | 643,020 | 805,031 | ||||||
| Total cash, cash equivalents and restricted cash | $ | 106,637,712 | $ | 91,793,258 | ||||
3
Exhibit 99.2
Nisun International Reports Unaudited Financial Results for the First Half of 2023
SHANGHAI, China, December 19, 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 unaudited financial results for the six months ended June 30, 2023.
Mr. Xiaoyun Huang, Chief Executive Officer of Nisun, commented, “We are pleased to announce our revenues remained resilient for the six months ended June 30, 2023, with an increase of 8% to $126.9 million from the same period of the prior year, despite the downward pressure and widespread business contraction across industries in China. Our cash and cash equivalents experienced an aggregate growth of 66%, as compared to December 31, 2022, which reflected our robust operational results. We have continued to proactively rebalance our business portfolio to optimize our resources and bolster our competitiveness in the supply chain sector. Leveraging our innovative solutions and integrated resources, we are committed to actively exploring business opportunities through strategic collaborations to broaden our market presence, diversify our product and service offerings, and boost our profitability. In addition, we will continue to implement the marketing strategies that we believe will allow us to develop our brand awareness and better position ourselves within the market. Moving forward, we will continue to align our business model and operations with our core value for greater performance and remain dedicated to providing our clients with effective and high-quality supply chain solutions. We firmly believe that our strategic business optimization and expansion will enhance our competitive edges, establish a strong foundation for future growth and bring long-term benefits for our shareholders.”
Financial Results for the Six Months Ended June 30, 2023
All comparisons made on a year-over-year (“yoy”) basis.
Revenue
| ● | Total revenue increased by 8% to $126.9 million from $118.0 million in the six months ended June 30, 2022, with increases in revenues from financing services offset by a decrease in revenue from supply chain trading business. |
| ● | Revenue from Supply Chain Trading Business decreased by 6% to $66.2 million from $70.7 million in prior year period, primarily due to the reduction of the Company’s the chemical products supply chain business and its further focus on agricultural products supply chain trading and services as a result of the changes in its business strategies. |
| ● | Revenue from Financing Services increased by 28% to $60.7 million from $47.3 million in prior year period. |
| ● | Revenues generated from the Small and Medium Enterprise (SME) financing solutions business increased by 29% to $58.0 million from $44.8 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 financing solutions increased by 10% to $2.7 million from $2.5 million in the prior year period, primarily due to extended business lines and increased supply chain transaction volume. |
| For the six months ended June 30, | Changes | |||||||||||||||||||||||
| 2023 | % | 2022 | % | ($) | (%) | |||||||||||||||||||
| Revenue from Supply Chain Trading Business | $ | 66,249,853 | 52 | % | $ | 70,727,078 | 60 | % | (4,477,225 | ) | (6 | )% | ||||||||||||
| Revenue from financing services: | ||||||||||||||||||||||||
| SME financing solutions | 57,956,690 | 46 | % | 44,822,386 | 38 | % | 13,134,304 | 29 | % | |||||||||||||||
| Supply chain financing solutions | 2,737,265 | 2 | % | 2,498,446 | 2 | % | 238,819 | 10 | % | |||||||||||||||
| Total revenue from financing service | 60,693,955 | 51 | % | 47,320,832 | 40 | % | 13,373,123 | 28 | % | |||||||||||||||
| Total revenue | $ | 126,943,808 | 100 | % | $ | 118,047,910 | 100 | % | 8,895,898 | 8 | % | |||||||||||||
Cost of revenue
Cost of revenue was $107.1 million, compared to $96.5 million in the prior year period, representing an increase of 11%. The increase was primarily attributable to the increase in personnel costs as a result of the growth in the scale of the SME financing solutions business and the increase in the cost of sales of the supply chain trading business primarily due to the increase in the sales costs incurred by a subsidiary acquired in 2022, Qingdao Sailang International Trade Co., Ltd.
Gross Profit
Gross profit decreased by 8% to $19.8 million from $21.6 million in the prior year period, due to the increases in the costs of revenue. Gross margin was 15.6% and 18.3% for the six months ended June 30, 2023 and 2022, respectively. The decrease in gross margin was primarily due to the increase in direct cost of revenue from supply chain trading business.
Operating Expenses
Total operating expense increased by 31% to $8.2 million from $6.3 million in the prior year period. The increase was primarily attributable to the significant increases in selling expenses as a result of the addition of sales channels for marketing and distribution purposes.
| ● | Selling expenses increased by 908% to $2.6 million from $0.3 million in the prior year period. The increase in selling expenses was mainly due to increased advertising channels. |
| ● | General and administrative expenses increased by 6% to $5.5 million from $5.2 million in the prior year period. The increase in general and administrative expenses was mainly because of increased professional fees and company personnel compensation in the first half of fiscal 2023. |
| ● | R&D expenses decreased by 58% to $0.3 million from $0.8 million in the prior year period. The decrease in the R&D expenses was primarily due to the fact that there was no new R&D projects during the six months ended June 30, 2023. |
| ● | Bad debt expenses were $(0.2) million for the first half of 2023. There were no bad debt expenses in the relevant periods. The decrease in the bad debt expenses was because in the six months ended June 30, 2023, we recovered the bad debts accrued during the second half of fiscal 2022. |
Other Income (Expense), net
The Company had a net other income of $2.4 million, compared to $2.8 million in the prior year period. The decrease was due to foreign exchange gain realized from capital injection into PRC operating entities in the first half of 2022, whereas there was no related exchange gain in the same period of 2023.
Net Income
In the six months ended June 30, 2023, the Company achieved a net income of $11.4 million, compared to $14.4 million in the same period of the prior year, primarily attributable to the decrease in gross profit from the supply chain business.
Net Income per Share
Net income per share was $2.87 in the six months ended June 30, 2023, compared to $3.55 in the prior year period. The weighted average number of shares was 3,943,288 and 3,991,263 in the six months ended June 30, 2023 and 2022, respectively.
Financial Condition and Cash Flow
As of June 30, 2023, the Company had cash, cash equivalents and restricted cash of $106.6 million, compared to $67.3 million as of December 31, 2022. However, the Company’s short-term investment was $18.7 million as of June 30, 2023, compared to $11.7 million as of December 31, 2022.
In the six months ended June 30, 2023, net cash provided by operating activities was approximately $57.2 million, net cash used in investing activities was $7.0 million, and net cash used in financing activities was $8.2 million.
In the six months ended June 30, 2022, net cash used in operating activities was approximately $30.4 million, net cash provided by investing activities was $24.1 million, and net cash provided by financing activities was $9.6 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 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-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: investors@ascent-ir.com
Tel: +1 (646) 932-7242
NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2023 AND DECEMBER 31, 2022
(EXPRESSED IN US DOLLARS)
| June 30, 2023 |
December 31, 2022 |
|||||||
| ASSETS | (Unaudited) | |||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 105,994,692 | $ | 63,901,329 | ||||
| Restricted cash | 643,020 | 3,417,244 | ||||||
| Short-term investments | 18,659,413 | 11,700,400 | ||||||
| Accounts receivable, net | 28,967,293 | 18,931,346 | ||||||
| Advance to suppliers, net | 17,406,052 | 46,968,549 | ||||||
| Receivables from supply chain solutions | 38,035,826 | 43,475,981 | ||||||
| Inventories | 48,819,585 | 31,609,877 | ||||||
| Prepaid expenses and other current assets | 29,629,649 | 10,890,083 | ||||||
| TOTAL CURRENT ASSETS | 288,155,530 | 230,894,809 | ||||||
| NON-CURRENT ASSETS: | ||||||||
| Property and equipment, net | 725,806 | 719,574 | ||||||
| Intangible assets, net | 1,302,682 | 1,795,234 | ||||||
| Right-of-use assets, net | 2,639,192 | 3,349,432 | ||||||
| Equity investments | 355,064 | 373,292 | ||||||
| Investment in limited partnership | - | 14,913,539 | ||||||
| Goodwill | 22,651,104 | 23,814,005 | ||||||
| Deferred tax assets, net | 14,852 | 310,577 | ||||||
| Long-term investments | 4,137,189 | 7,249,319 | ||||||
| TOTAL NON-CURRENT ASSETS | 31,825,889 | 52,524,972 | ||||||
| TOTAL ASSETS | $ | 319,981,419 | $ | 283,419,781 | ||||
| LIABILITIES | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 37,109,910 | $ | 40,925,155 | ||||
| Short-term bank loans | 551,625 | 434,959 | ||||||
| Accrued expenses and other current liabilities | 10,054,282 | 6,090,582 | ||||||
| Operating lease liabilities - current | 897,816 | 1,008,766 | ||||||
| Payables to supply chain solutions | 10,815,864 | 9,122,978 | ||||||
| Advances from customer | 61,733,220 | 21,827,387 | ||||||
| Taxes payable | 3,361,634 | 2,748,474 | ||||||
| Loan from related party | 28,965 | 8,028,965 | ||||||
| Due to related parties - current | 268,917 | 282,724 | ||||||
| TOTAL CURRENT LIABILITIES | 124,822,233 | 90,469,990 | ||||||
| Operating lease liabilities – non-current | 1,883,981 | 2,425,597 | ||||||
| Deferred tax liabilities | 360,280 | 727,326 | ||||||
| TOTAL LIABILITIES | 127,066,494 | 93,622,913 | ||||||
| SHAREHOLDERS’ EQUITY: | ||||||||
| Class A common stock, $0.01 par value, 30,000,000 and 30,000,000 shares authorized, 4,006,263 and 4,006,263 shares issued, and 3,940,865 and 3,944,075 shares outstanding as of June 30, 2023 and December 31, 2022, respectively | 40,063 | 40,063 | ||||||
| Class B common stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding as of June 30, 2023 and December 31, 2022 | - | - | ||||||
| Treasury shares | (373,358 | ) | (355,844 | ) | ||||
| Additional paid-in capital | 130,503,387 | 130,503,387 | ||||||
| Retained earnings | 63,534,936 | 53,214,304 | ||||||
| Statutory reserves | 10,166,600 | 9,167,845 | ||||||
| Unearned compensation | - | - | ||||||
| Accumulated other comprehensive (loss) income | (15,115,268 | ) | (6,937,950 | ) | ||||
| COMMON SHAREHOLDERS’ EQUITY | 188,756,360 | 185,631,805 | ||||||
| Non-controlling interests | 4,158,565 | 4,165,063 | ||||||
| TOTAL SHAREHOLDERS’ EQUITY | 192,914,925 | 189,796,868 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 319,981,419 | $ | 283,419,781 | ||||
NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022
(EXPRESSED IN US DOLLARS)
(Unaudited)
| For the Six Months Ended June 30, |
||||||||
| 2023 | 2022 | |||||||
| REVENUES: | ||||||||
| Revenues generated from sales: | ||||||||
| Supply chain trading business | $ | 66,249,853 | $ | 70,727,078 | ||||
| Revenues generated from services: | ||||||||
| Small and Medium Enterprise financing solutions | 57,956,690 | 44,822,386 | ||||||
| Supply Chain financing solutions | 2,737,265 | 2,498,446 | ||||||
| Total revenue generated from services | 60,693,955 | 47,320,832 | ||||||
| TOTAL REVENUES | 126,943,808 | 118,047,910 | ||||||
| COST OF REVENUE: | ||||||||
| Cost of revenue - services | (39,529,203 | ) | (26,451,468 | ) | ||||
| Cost of revenue - sales | (67,342,086 | ) | (69,854,217 | ) | ||||
| Business and sales related taxes | (231,103 | ) | (165,506 | ) | ||||
| GROSS PROFIT | 19,841,416 | 21,576,719 | ||||||
| OPERATING EXPENSES: | ||||||||
| Selling expenses | 2,637,517 | 261,590 | ||||||
| General and administrative expenses | 5,489,580 | 5,177,548 | ||||||
| Research and development expenses | 351,200 | 834,195 | ||||||
| Bad debt expenses | (235,377 | ) | - | |||||
| Total operating expenses | 8,242,920 | 6,273,333 | ||||||
| INCOME FROM OPERATIONS | 11,598,496 | 15,303,386 | ||||||
| OTHER INCOME (EXPENSE): | ||||||||
| Interest and investment income | 1,498,856 | 1,249,509 | ||||||
| Other income, net | 880,144 | 1,512,562 | ||||||
| Total other income (expense), net | 2,379,000 | 2,762,071 | ||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 13,977,496 | 18,065,457 | ||||||
| PROVISION FOR INCOME TAXES | 2,610,535 | 3,414,449 | ||||||
| NET INCOME FROM CONTINUING OPERATIONS | 11,366,961 | 14,651,008 | ||||||
| DISCONTINUED OPERATIONS: | ||||||||
| (Loss) from discontinued operations, net of tax | - | (292,069 | ) | |||||
| NET (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | - | (292,069 | ) | |||||
| NET INCOME | 11,366,961 | 14,358,939 | ||||||
| Less: net income from continuing operations attributable to non-controlling interest | 47,574 | 330,620 | ||||||
| Less: net (loss) from discontinued operations attributable to non-controlling interest | - | (143,114 | ) | |||||
| NET INCOME ATTRIBUTABLE TO SHAREHOLDERS’ | $ | 11,319,387 | $ | 14,171,433 | ||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||
| Foreign currency translation (loss) income | (8,175,831 | ) | (8,182,987 | ) | ||||
| COMPREHENSIVE INCOME | 3,143,556 | 5,988,446 | ||||||
| Comprehensive (loss) attributable to non-controlling interests | (1,487 | ) | 6,658 | |||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREHOLDERS’ | $ | 3,142,069 | $ | 5,995,104 | ||||
| BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE: | ||||||||
| Income from continuing operations | $ | 2.87 | $ | 3.67 | ||||
| (Loss) from discontinued operations | - | (0.07 | ) | |||||
| TOTAL EARNINGS (LOSS) PER COMMON SHARE | $ | 2.87 | $ | 3.60 | ||||
| Weighted average number of shares outstanding-basic and diluted | 3,943,288 | 3,991,263 | ||||||
NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX MOTHS ENDED JUNE 30, 2023 AND 2022
(EXPRESSED IN US DOLLARS)
(Unaudited)
| For the Six Months Ended June 30, |
||||||||
| 2023 | 2022 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 11,366,961 | $ | 14,358,939 | ||||
| Net (loss) from discontinued operations | - | (292,069 | ) | |||||
| Net income from continuing operations | 11,366,961 | 14,651,008 | ||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 1,294,166 | 639,002 | ||||||
| Stock-based compensation | - | 125,630 | ||||||
| Bad debt expense | (234,120 | ) | - | |||||
| Loss on disposition of property and equipment | 4,178 | - | ||||||
| Loss (Income) from investments | (7,296 | ) | 218,929 | |||||
| Deferred tax (benefit) expense | (51,609 | ) | (92,798 | ) | ||||
| Issuance of stock for services | - | 185,000 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (11,089,756 | ) | (4,310,119 | ) | ||||
| Advance to suppliers | 28,012,573 | (15,246,921 | ) | |||||
| Prepaid expenses and other current assets | (3,140,645 | ) | 1,444,248 | |||||
| Operating lease right-of-use assets | - | (3,115,440 | ) | |||||
| Receivables from supply chain solutions | 3,411,356 | 32,564,078 | ||||||
| Inventories | (18,988,807 | ) | (17,968,203 | ) | ||||
| Accounts payable | (1,839,578 | ) | (25,094,299 | ) | ||||
| Advance from customers | 41,474,328 | 9,408,745 | ||||||
| Taxes payable | 754,075 | (6,205,647 | ) | |||||
| Other payables | 4,016,393 | (735,659 | ) | |||||
| Payable to supply chain solutions | 2,165,239 | (19,913,058 | ) | |||||
| Operating lease liabilities | (490,946 | ) | 3,041,808 | |||||
| Accrued expenses and other current liabilities | 567,503 | 340,313 | ||||||
| Net cash (used in) provided by operating activities from continuing operations | 57,224,015 | (30,063,383 | ) | |||||
| Net cash (used in) operating activities of discontinued operations | - | (356,347 | ) | |||||
| NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | 57,224,015 | (30,419,730 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Acquisition of property and equipment | (226,403 | ) | (178,953 | ) | ||||
| Purchase of intangible asset | (43,534 | ) | - | |||||
| Cash paid for acquisitions | - | (78,944 | ) | |||||
| Purchase of long-term investment | - | (2,985,921 | ) | |||||
| Cash received on disposal of discontinued operations | - | - | ||||||
| Proceeds from sale of short-term investments | 53,004,461 | 49,210,720 | ||||||
| Proceeds from sale of Long-term investment | 2,792,763 | - | ||||||
| Proceeds from investment in debt securities | 14,204,625 | - | ||||||
| Purchase of short-term investments | (60,463,319 | ) | (21,825,681 | ) | ||||
| Repayments from loans to third parties | 471,604 | - | ||||||
| Payments made for loans to third parties | (16,756,578 | ) | - | |||||
| Net cash provided by (used in) investing activities from continuing operations | (7,016,381 | ) | 24,141,221 | |||||
| Net cash (used in) investing activities from discontinued operations | - | - | ||||||
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (7,016,381 | ) | 24,141,221 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from short-term bank loans | 139,638 | - | ||||||
| Repayment of short-term bank loans | (11,912 | ) | (773,960 | ) | ||||
| Proceeds from third party loans | 1,954,934 | 3,363,632 | ||||||
| Repayment to related party | (8,000,000 | ) | (1,010,517 | ) | ||||
| Repayment of third party loans | (2,252,363 | ) | - | |||||
| Proceeds from related party | - | 8,049,187 | ||||||
| Capital contribution from non-controlling interest | 37,116 | - | ||||||
| Repurchase Treasury shares | (17,514 | ) | - | |||||
| Net cash provided by (used in) financing activities from continuing operations | (8,150,101 | ) | 9,628,342 | |||||
| Net cash (used in) financing activities from discontinued operations | - | - | ||||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (8,150,101 | ) | 9,628,342 | |||||
| EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | (2,738,394 | ) | (3,539,963 | ) | ||||
| NET (DECREASE) IN CASH AND CASH EQUIVALENTS | 39,319,139 | (190,130 | ) | |||||
| Add: decrease in cash and cash equivalents from discontinued operations | - | 356,347 | ||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS | 39,319,139 | 166,217 | ||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-BEGINNING | 67,318,573 | 91,627,041 | ||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-ENDING | $ | 106,637,712 | $ | 91,793,258 | ||||
| SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||||||||
| Cash paid for income taxes | $ | 1,560,580 | $ | 8,163,616 | ||||
| Cash paid for interest | $ | 11,912 | $ | 5,420 | ||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||||||||
| Accrued lease liabilities | $ | 2,781,797 | $ | 3,396,841 | ||||
| Issuance of shares for compensation | $ | - | $ | 185,000 | ||||
| CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS ARE COMPRISED OF THE FOLLOWING: | ||||||||
| Cash and cash equivalents | $ | 105,994,692 | $ | 90,988,227 | ||||
| Restricted cash | 643,020 | 805,031 | ||||||
| Total cash, cash equivalents and restricted cash | $ | 106,637,712 | $ | 91,793,258 | ||||
7