Exhibit 99.2
Nisun International Reports Unaudited Financial Results for the First Half of 2024
SHANGHAI, China, October 15, 2024 /PRNewswire/ -- Nisun International Enterprise Development Group Co., Ltd (“Nisun” or the “Company”) (Nasdaq: NISN), a provider of innovative comprehensive supply chain solutions through an integration of technology, industry, and finance, today announced its unaudited financial results for the six months ended June 30, 2024.
Financial Results for the Six Months Ended June 30, 2024
All comparisons made on a year-over-year (“yoy”) basis.
Revenue
| ● | Total revenue increased by 52% to $192.5 million from $126.9 million for the six months ended June 30, 2023, with a significant increase in revenue from the supply chain trading business. |
| ● | Revenue from supply chain trading business increased by 114% to $142.1 million, from $66.2 million in the same period of the last fiscal year, primarily due to the growth of the Company’s market share in the gold trading business. |
| ● | Revenue from services decreased by 17% to $50.5 million from $60.7 million in the same period of the last fiscal year. |
| | ● | Revenues generated from the Small and Medium Enterprise (SME) financing solutions business decreased by 16% to $48.5 million from $58.0 million in the same period of the last fiscal year, primarily due to the challenging financial market conditions as a result of the slow-down in the Chinese economy. |
| ● | Revenue generated from supply chain financing solutions decreased by 30% to $1.9 million from $2.7 million in the same period of the last fiscal year, primarily due to the challenging financial market conditions as a result of the slow-down in the Chinese economy. The Company continues to actively look for other business market opportunities in China. |
| | | For the six months ended
June 30, | | | Changes | |
| | | 2024 | | | % | | | 2023 | | | % | | | ($) | | | (%) | |
| | | (Unaudited) | | | | | | (Unaudited) | | | | | | | | | | |
| Revenue generated from sales: | | | | | | | | | | | | | | | | | | |
| Revenue from supply chain trading business | | $ | 142,079,851 | | | | 74 | % | | $ | 66,249,853 | | | | 52 | % | | | 75,829,998 | | | | 114 | % |
| Revenue generated from services: | | | | | | | | | | | | | | | | | | | | | | | | |
| SME financing solutions | | | 48,527,509 | | | | 25 | % | | | 57,956,690 | | | | 46 | % | | | (9,429,181 | ) | | | (16 | )% |
| Supply chain financing solutions | | | 1,929,533 | | | | 1 | % | | | 2,737,265 | | | | 2 | % | | | (807,732 | ) | | | (30 | )% |
| Total revenue from financing services | | | 50,457,042 | | | | 26 | % | | | 60,693,955 | | | | 48 | % | | | (10,236,913 | ) | | | (17 | )% |
| Total revenue | | $ | 192,536,893 | | | | 100 | % | | $ | 126,943,808 | | | | 100 | % | | | 65,593,085 | | | | 52 | % |
Cost of revenue
Cost of revenue was $175.3 million for the six months ended June 30, 2024, compared to $107.1 million in the same period of the last fiscal year, representing an increase of 64%. This increase was primarily due to an increase in the purchase and sale volumes of certain supply chain products in line with the increase in revenue from the supply chain trading business, which has a higher cost of revenue as compared to that incurred in the financing services business.
Gross Profit
Gross profit decreased by 13% to $17.2 million for the six months ended June 30, 2024 from $19.8 million in the same period of the last fiscal year, due to an increase in the costs of revenue, which was partially offset by an increase in revenue. Gross margin as a percentage of revenue was 8.96% and 15.6% for the six months ended June 30, 2024 and 2023, respectively. The decrease in gross margin as a percentage of revenue was primarily due to the significant growth in the Company’s supply chain trading business and to a lesser extent, to a scale reduction in financing services business. Supply chain trading business generally has a lower gross margin as a percentage of revenue as compared to that of our financing services business.
Operating Expenses
Total operating expenses decreased by 31% to $5.7 million for the six months ended June 30, 2024 from $8.2 million in the same period of the last fiscal year. The decrease was primarily attributable to the significant decrease in selling expenses as a result of the decrease in demand in the SME financing solutions services, which led to a reduction in the corresponding channel promotion expenses.
| ● | Selling expenses decreased by 69% to $0.8 million for the six months ended June 30, 2024 from $2.6 million in the same period of the last fiscal year. The decrease in selling expenses was primarily due to less channel promotion expenses related to the SME financing solution services, as the Company maintained its existing sales channels without adding costs associated with new channel creation. |
| | ● | General and administrative expenses decreased by 14% to $4.7 million for the six months ended June 30, 2024 from $5.5 million in the same period of the last fiscal year. The decrease in general and administrative expenses was primarily a result of management’s enhanced cost control measures, including a reduction in unnecessary travel and entertainment costs. |
| | ● | R&D expenses increased by 27% to $0.45 million for the six months ended June 30, 2024 from $0.35 million in same period of the last fiscal year. The increase in the R&D expenses was primarily due to the amortization expenses associated with the platform technology purchased by the Company in June 2023. |
| ● | Expected credit income increased by 12% to $(0.3) million from $(0.2) million in the prior year period. The increase in the expected credit income was primarily due to the recovery of accounts receivable that were previously provided for in the allowance for credit losses as of December 31, 2023, and the absence of new expected credit loss in the first half of the year. |
Other Income net
The Company had a net other income of $1.2 million for the six months ended June 30, 2024, compared to $2.4 million in the same period of the last fiscal year. The decrease was primarily due to a decrease in interest and investment income as the result of a reduction in short-term investments during the first six months of 2024.
Net Income
In the six months ended June 30, 2024, the Company had a net income of $10.3 million, compared to $11.4 million in the same period of the last fiscal year. The decrease was primarily attributable to the decrease in gross profit as discussed above.
Net Income per Share
Net income per share was $2.61 for the six months ended June 30, 2024, a slight decrease compared to $2.87 in the same period of the last fiscal year. The weighted average number of shares outstanding was 3,952,198 and 3,943,288 in the six months ended June 30, 2024 and 2023, respectively.
Financial Condition and Cash Flow
As of June 30, 2024, the Company had cash, cash equivalents and restricted cash of $47.8 million, compared to $114.6 million as of December 31, 2023. This decrease was primarily attributable to $69.4 million used in operating activities during the six months ended June 30, 2024.
Net cash used in operating activities increased by $126.6 million to $69.4 million for the six months ended June 30, 2024, compared to net cash provided by operating activities of $57.2 million for the prior fiscal year. The increase in net cash used in operating activities was primarily due to an increase in cash outflows from advances to suppliers of $76.3 million, advances to customers of $51.0 million, payment of other payables related to the supply chain solution business of $10.6 million, which was partially offset by an increase in cash inflow from inventory of $23.9 million.
Net cash provided by investing activities increased by $13.9 million to $6.9 million for the six months ended June 30, 2024, compared to a cash outflow from investing activities of $7.0 million for the same period of the prior fiscal year. The increase in net cash provided by investing activities was primarily due to a decrease in payments made for short-term investment of $40.6 million, and a decrease in payments for loans to third parties of $16.8 million. The decrease was partially offset by a decrease in cash inflows of $28.3 million from proceeds from sale of short-term investments and a decrease in cash proceeds from investments in debt securities of $14.2 million.
Net cash used in financing activities for the six months ended June 30, 2024 was $2.1 million, compared to $8.2 million for the same period in the prior fiscal year. Net cash used in financing activities decreased mainly due to a decrease in payments for loans from related parties of $8 million, which was partially offset by a decrease in proceeds from third party loans of $2.0 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
NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN US DOLLARS)
| | | June 30,
2024 | | | December 31,
2023 | |
| ASSETS | | (Unaudited) | | | | |
| CURRENT ASSETS: | | | | | | |
| Cash and cash equivalents | | $ | 47,864,037 | | | $ | 114,454,844 | |
| Restricted cash | | | - | | | | 197,096 | |
| Short-term investments | | | 8,044,415 | | | | 12,788,629 | |
| Accounts receivable, net | | | 31,904,860 | | | | 21,120,795 | |
| Advance to suppliers, net | | | 85,801,726 | | | | 38,602,304 | |
| Receivables from supply chain solutions | | | 34,005,851 | | | | 59,167,029 | |
| Inventories | | | 25,321,304 | | | | 30,953,583 | |
| Prepaid expenses and other current assets | | | 14,575,029 | | | | 16,018,778 | |
| TOTAL CURRENT ASSETS | | | 247,517,222 | | | | 293,303,058 | |
| | | | | | | | | |
| NON-CURRENT ASSETS: | | | | | | | | |
| Property and equipment, net | | | 721,621 | | | | 881,276 | |
| Intangible assets, net | | | 430,354 | | | | 882,828 | |
| Right-of-use assets, net | | | 2,182,671 | | | | 2,384,590 | |
| Equity investments | | | 319,275 | | | | 368,528 | |
| Goodwill | | | 17,253,427 | | | | 17,659,983 | |
| Deferred tax assets, net | | | 408,935 | | | | 418,571 | |
| TOTAL NON-CURRENT ASSETS | | | 21,316,283 | | | | 22,595,776 | |
| TOTAL ASSETS | | $ | 268,833,505 | | | $ | 315,898,834 | |
| | | | | | | | | |
| LIABILITIES | | | | | | | | |
| CURRENT LIABILITIES: | | | | | | | | |
| Accounts payable | | $ | 15,371,048 | | | $ | 45,463,753 | |
| Short-term bank loans | | | 2,752,092 | | | | 1,971,859 | |
| Accrued expenses and other current liabilities | | | 2,948,837 | | | | 7,245,358 | |
| Operating lease liabilities - current | | | 976,889 | | | | 861,087 | |
| Payables to supply chain solutions | | | 4,295,683 | | | | 12,947,708 | |
| Advances from customer | | | 27,828,709 | | | | 38,153,915 | |
| Taxes payable | | | 4,126,779 | | | | 4,145,920 | |
| Liabilities of financial guarantee | | | 21,821 | | | | 22,335 | |
| Due to related parties - current | | | 268,329 | | | | 274,652 | |
| TOTAL CURRENT LIABILITIES | | | 58,590,187 | | | | 111,086,587 | |
| | | | | | | | | |
| Operating lease liabilities – non-current | | | 1,386,557 | | | | 1,643,076 | |
| Deferred tax liabilities | | | 29,516 | | | | 114,650 | |
| TOTAL NON-CURRENT LIABILITIES | | | 1,416,073 | | | | 1,757,726 | |
| TOTAL LIABILITIES | | | 60,006,260 | | | | 112,844,313 | |
| | | | | | | | | |
| SHAREHOLDERS’ EQUITY:* | | | | | | | | |
| Class A common stock, $0.01 par value, 30,000,000 and 30,000,000 shares authorized, 4,017,596 and 4,017,596 shares issued, and 3,952,198 and 3,952,198 shares outstanding as of June 30, 2024 and December 31, 2023, respectively | | | 40,176 | | | | 40,176 | |
| Class B common stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding as of June 30, 2024 and December 31, 2023 | | | - | | | | - | |
| Treasury shares | | | (228,240 | ) | | | (261,592 | ) |
| Additional paid-in capital | | | 130,535,082 | | | | 130,535,082 | |
| Retained earnings | | | 78,009,782 | | | | 68,395,637 | |
| Statutory reserves | | | 12,253,635 | | | | 11,564,250 | |
| Accumulated other comprehensive loss | | | (16,060,474 | ) | | | (11,474,682 | ) |
| COMMON SHAREHOLDERS’ EQUITY | | | 204,549,961 | | | | 198,798,871 | |
| Non-controlling interests | | | 4,277,284 | | | | 4,255,650 | |
| TOTAL SHAREHOLDERS’ EQUITY | | | 208,827,245 | | | | 203,054,521 | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ | 268,833,505 | | | $ | 315,898,834 | |
| * | 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 CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
UNAUDITED (IN US DOLLARS)
| | | For the Six Months Ended
June 30, | |
| | | 2024 | | | 2023 | |
| REVENUES: | | | | | | |
| Revenues generated from sales: | | | | | | |
| Supply chain trading business | | $ | 142,079,851 | | | $ | 66,249,853 | |
| Revenues generated from services: | | | | | | | | |
| Small and Medium Enterprise financing solutions | | | 48,527,509 | | | | 57,956,690 | |
| Supply Chain financing solutions | | | 1,929,533 | | | | 2,737,265 | |
| Total revenue generated from services | | | 50,457,042 | | | | 60,693,955 | |
| TOTAL REVENUES | | | 192,536,893 | | | | 126,943,808 | |
| | | | | | | | | |
| COST OF REVENUE: | | | | | | | | |
| Cost of revenue - sales | | | (140,743,953 | ) | | | (67,342,086 | ) |
| Cost of revenue - services | | | (34,253,460 | ) | | | (39,529,203 | ) |
| Business and sales related taxes | | | (287,225 | ) | | | (231,103 | ) |
| GROSS PROFIT | | | 17,252,255 | | | | 19,841,416 | |
| | | | | | | | | |
| OPERATING EXPENSES: | | | | | | | | |
| Selling expenses | | | (811,360 | ) | | | (2,637,517 | ) |
| General and administrative expenses | | | (4,718,918 | ) | | | (5,489,580 | ) |
| Research and development expenses | | | (446,877 | ) | | | (351,200 | ) |
Expected credit income | | | 262,584 | | | | 235,377 | |
| Total operating expenses | | | (5,714,571 | ) | | | (8,242,920 | ) |
| INCOME FROM OPERATIONS | | | 11,537,684 | | | | 11,598,496 | |
| | | | | | | | | |
| OTHER INCOME (EXPENSE): | | | | | | | | |
| Interest and investment income | | | 801,987 | | | | 1,498,856 | |
| Other income, net | | | 425,839 | | | | 880,144 | |
Total other income, net | | | 1,227,826 | | | | 2,379,000 | |
| | | | | | | | | |
| INCOME BEFORE PROVISION FOR INCOME TAXES | | | 12,765,510 | | | | 13,977,496 | |
| | | | | | | | | |
| PROVISION FOR INCOME TAXES | | | (2,440,569 | ) | | | (2,610,535 | ) |
| | | | | | | | | |
| NET INCOME | | | 10,324,941 | | | | 11,366,961 | |
| Net income attributable to non-controlling interests | | | (21,411 | ) | | | (47,574 | ) |
| NET INCOME - Nisun International’s shareholders | | $ | 10,303,530 | | | $ | 11,319,387 | |
| | | | | | | | | |
| OTHER COMPREHENSIVE LOSS | | | | | | | | |
| Foreign currency translation loss | | | (4,585,569 | ) | | | (8,175,831 | ) |
| COMPREHENSIVE INCOME | | | 5,717,961 | | | | 3,143,556 | |
| Comprehensive (loss) attributable to non-controlling interests | | | (223 | ) | | | (1,487 | |
| COMPREHENSIVE INCOME | | $ | 5,717,738 | | | $ | 3,142,069 | |
| BASIC AND DILUTED EARNINGS PER COMMON SHARE: | | | | | | | | |
| NET EARNINGS PER COMMON SHARE | | $ | 2.61 | | | $ | 2.87 | |
| Weighted average number of shares outstanding-basic and diluted* | | | 3,952,198 | | | | 3,943,288 | |
| * | 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 CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED (IN US DOLLARS)
| | | For the Six Months Ended
June 30, | |
| | | 2024 | | | 2023 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | |
| Net income | | $ | 10,324,941 | | | $ | 11,366,961 | |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | | | | | | | |
| Depreciation and amortization | | | 847,585 | | | | 1,294,166 | |
| Expected credit income | | | (262,584 | ) | | | (234,120 | ) |
| Property and equipment written off | | | 1,807 | | | | 4,178 | |
| Income from investments | | | (287,022 | ) | | | (7,296 | ) |
| Deferred tax benefit | | | (83,112 | ) | | | (51,609 | ) |
| Repurchase Treasury shares | | | 33,352 | | | | - | |
| Changes in operating assets and liabilities: | | | | | | | | |
| Accounts receivable | | | (11,262,419 | ) | | | (11,089,756 | ) |
| Advance to suppliers | | | (48,309,925 | ) | | | 28,012,573 | |
| Prepaid expenses and other current assets | | | (976,429 | ) | | | (3,140,645 | ) |
| Receivables from supply chain solutions | | | 24,053,943 | | | | 3,411,356 | |
| Inventories | | | 4,956,474 | | | | (18,988,807 | ) |
| Accounts payable | | | (29,263,247 | ) | | | (1,839,578 | ) |
| Advance from customers | | | (9,517,489 | ) | | | 41,474,328 | |
| Taxes payable | | | 75,614 | | | | 754,075 | |
| Other payables | | | (1,514,377 | ) | | | 4,016,393 | |
| Payable to supply chain solutions | | | (8,416,415 | ) | | | 2,165,239 | |
| Operating lease liabilities | | | (83,690 | ) | | | (490,946 | ) |
| Accrued expenses and other current liabilities | | | 334,742 | | | | 567,503 | |
| NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | | | (69,348,251 | ) | | | 57,224,015 | |
| | | | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | |
| Acquisition of property and equipment | | | (11,673 | ) | | | (226,403 | ) |
| Purchase of intangible asset | | | (4,316 | ) | | | (43,534 | ) |
| Proceeds from sale of short-term investments | | | 24,704,041 | | | | 53,004,461 | |
| Proceeds from sale of long-term investment | | | - | | | | 2,792,763 | |
| Proceeds from investment in debt securities | | | - | | | | 14,204,625 | |
| Purchase of short-term investments | | | (19,892,871 | ) | | | (60,463,319 | ) |
| Repayments from loans to third parties | | | 2,079,501 | | | | 471,604 | |
| Payments made for loans to third parties | | | - | | | | (16,756,578 | ) |
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | | | 6,874,682 | | | | (7,016,381 | ) |
| | | | | | | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | |
| Proceeds from short-term bank loans | | | 1,386,334 | | | | 139,638 | |
| Repayment of short-term bank loans | | | (624,198 | ) | | | (11,912 | ) |
| Proceeds from third party loans | | | - | | | | 1,954,934 | |
| Repayment to related party | | | - | | | | (8,000,000 | ) |
| Repayment of third party loans | | | (2,911,302 | ) | | | (2,252,363 | ) |
| Capital contribution from non-controlling interest | | | - | | | | 37,116 | |
| Repurchase Treasury shares | | | - | | | | (17,514 | ) |
| NET CASH USED IN FINANCING ACTIVITIES | | | (2,149,166 | ) | | | (8,150,101 | ) |
| | | | | | | | | |
| EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | | | (2,165,168 | ) | | | (2,738,394 | ) |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | | | (66,787,903 | ) | | | 39,319,139 | |
| | | | | | | | | |
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-BEGINNING | | | 114,651,940 | | | | 67,318,573 | |
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-ENDING | | $ | 47,864,037 | | | $ | 106,637,712 | |
| | | | | | | | | |
| SUPPLEMENTAL CASH FLOW DISCLOSURES: | | | | | | | | |
| Cash paid for income taxes | | $ | 3,516,019 | | | $ | 1,560,580 | |
| Cash paid for interest | | $ | 69,664 | | | $ | 11,912 | |
| | | | | | | | | |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | | | | | | | | |
| Lease liabilities arising from obtaining right-of-use assets | | $ | 266,413 | | | $ | - | |
| | | | | | | | | |
| CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS ARE COMPRISED OF THE FOLLOWING: | | | | | | | | |
| Cash and cash equivalents | | $ | 47,864,037 | | | $ | 105,994,692 | |
| Restricted cash | | | - | | | | 643,020 | |
| Total cash, cash equivalents and restricted cash | | $ | 47,864,037 | | | $ | 106,637,712 | |
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