TD Holdings, Inc. Reports Second Quarter 2021 Financial Results
08/17/2021 - 04:30 PM
SHENZHEN, China , Aug. 17, 2021 /PRNewswire/ -- TD Holdings, Inc. (Nasdaq: GLG) (the "Company"), a commodities trading service provider in China, today announced its financial results for the second quarter ended June 30, 2021.
Affected by the ongoing outbreak of the COVID-19, the Company expected its used luxurious car leasing business to be subject to continuous losses due to the closure of stores. As a result, the Company sold the used luxurious car leasing business in August 2020 and focused on the commodities trading and its complementary businesses.
Ms. Renmei Ouyang, the Chief Executive Officer of the Company, stated, "We are pleased to report our financial results for the second quarter of fiscal year 2021. Despite the setbacks caused by the COVID-19 outbreak and having just started our commodities trading business in late 2019, our revenue increased by 2981% to $59.84 million China . Looking forward, we will strengthen the Company's competitive position over the long-term, including developing our global commodity e-commerce platform, building our own digital cloud warehouse, improving our trading settlement and payment system, creating a supply chain financial ecosystem as well as acquiring large-scale overseas minerals. With the visibility and validation afforded as a Nasdaq listed company, we can now confidently focus on building profitable revenue growth and creating value for our shareholders."
Financial Highlights
In the quarter ended June 30, 2021
Total revenue was $59.84 million , consisting of $59.51 million from sales of commodities products, and $0.33 million from supply chain management services for the quarter ended June 30, 2021 , an increase of 2981% from $1.94 million June 30, 2020 . Net income from continuing operation was $0.36 million , as compared with net loss from continuing operations of $5.17 million for the same quarter ended June 30, 2020 . Net income was $0.36 million $5.46 million June 30, 2020 . Basic and diluted earnings per share from continuing operations was nil, compared with basic and diluted loss per share from continuing operations of $0.11 for the same quarter ended June 30, 2020 . In the six months ended June 30, 2021
Total revenue was $89.42 million , consisting of $88.95 million from sales of commodities products, and $0.47 million from supply chain management services for the six months ended June 30, 2021 , an increase of 2740% from $3.15 million June 30, 2020 . Net loss from continuing operation was $1.18 million $5.26 million June 30, 2020 . Net loss was $1.18 million , as compared with net loss of $5.82 million for the same period ended June 30, 2020 . Basic and diluted loss per share from continuing operations was $0.01 , compared with basic and diluted loss per share from continuing operations of $0.17 for the same period ended June 30, 2020 . Financial Results
In the three months ended June 30, 2021
Revenues
For the three months ended June 30, 2021 , the Company sold non-ferrous metals to two customers at fixed prices, and earned revenues when the product ownership was transferred to its customers. The Company earned revenues of $59.51 million June 30, 2021 , among which, $1.52 million $1.56 million June 30, 2020 .
For the three months ended June 30, 2021 , the Company earned commodity distribution commission fees of $0.33 million $0.35 million $0.03 million June 30, 2020 .
Cost of revenue
Cost of revenue primarily consists of purchase costs of non-ferrous metal products. For the three months ended June 30 , 2021, the Company purchased non-ferrous metal products of $57.93 million $1.53 million $1.37 million $0.20 million June 30, 2020 .
Selling, general, and administrative expenses
Selling, general and administrative expenses increased by $1.61 million 368% , to $2.05 million June 30, 2021 , from $0.44 million June 30, 2020 . Selling, general and administrative expenses primarily consisted of salary and employee benefits, office rental expense, amortizations of intangible assets and convertible notes, professional service fees and finance offering related fees. The increase was mainly attributable to 1) amortization of intangible assets of $1.01 million $0.12 million June 30, 2021 while no such issuance for the three months ended June 30 , 2020.
Interest income
Interest income was primarily generated from loans made to third parties and related parties. Interest income increased by $1.14 million 63% , to $2.94 million June 30, 2021 , from $1.80 million June 30, 2020 . The increase was primarily due to loans made to Shenzhen Xinsuniao for the three months ended June 30, 2020 to $59.50 million $2.01 million $0.94 million
Amortization of relative fair value of warrants relating to service provider
For the three months ended June 30, 2020 , the item represented the full amortization of beneficial conversion feature of $3.4 million $3.06 million May 2020 .
For the three months ended June 30, 2021, no such expenses incurred.
Net income from continuing operations
Net income was $0.36 million June 30, 2021 , compared with net loss of $5.17 million June 30, 2020 .
Net loss from discontinued operations
During the three months ended June 30, 2020 , net loss from discontinued operations was $0.29 million
In the six months ended June 30, 2021
Revenues
For the six months ended June 30, 2021 , the Company sold non-ferrous metals to two related party customers at fixed prices, and earned revenues when the product ownership was transferred to its customers. The Company earned revenues of $88.95 million June 30, 2021 , compared with $2.62 million June 30, 2020 .
For the six months ended June 30, 2021 , the Company earned commodity distribution commission fees of $0.47 million $0.46 million $0.07 million June 30, 2020 .
Cost of revenue
Cost of revenue primarily consists of purchase costs of non-ferrous metal products. For the six months ended June 30 , 2021, the Company purchased non-ferrous metal products of $67.68 million $21.20 million $1.36 million $1.26 million June 30, 2020 .
Selling, general, and administrative expenses
Selling, general and administrative expenses increased by $2.88 million 389% , to $3.62 million June 30, 2021 , from $0.74 million June 30, 2020 . Selling, general and administrative expenses primarily consisted of salary and employee benefits, office rental expense, amortizations of intangible assets and convertible notes, professional service fees and finance offering related fees. The increase was mainly attributable to 1) amortization of intangible assets of $1.89 million $0.16 million June 30, 2021 while no such issuance for the three months ended June 30, 2020 , 3) professional fee increased from $0.51 million $0.77 million
Interest income
Interest income was primarily generated from loans made to third parties and related parties. Interest income increased by $3.16 million 168% , to $5.04 million June 30, 2021 , from $1.88 million June 30, 2020 . The increase was primarily due to loans made to Shenzhen Xinsuniao for the three months ended June 30, 2020 to $59.50 million $3.62 million $1.42 million
Share-based payment for service
On March 4, 2021 , the Company issued 750,000 fully-vested warrants with an exercise price of $0.01 $1,695,042 March 4, 2021 of $2.27 0.08% , life of 5 years, and volatility of 71.57% for the six months ended June 30, 2021 .
For the six months ended June 30, 2020 , no such expenses incurred.
Amortization of beneficial conversion feature and relative fair value of warrants relating to issuance of convertible notes
For the six months ended June 30, 2020 , the item represented the full amortization of beneficial conversion feature of $3.4 million $3.06 million May 2020 .
For the six months ended June 30, 2021, no such expenses incurred.
Net loss from continuing operations
Net loss was $1.18 million June 30, 2021 , compared with net loss of $5.26 million June 30, 2020 .
Net loss from discontinued operations
During the six months ended June 30, 2020 , net loss from discontinued operations was $0.55 million
Six Months Ended June 30 , 2021 Cash Flows
As of June 30, 2021, the Company had cash and cash equivalents of $6.90 million , as compared with $2.70 million as of December 31, 2020.
Net cash used in operating activities from continuing operations was $3.79 million for the six months ended June 30, 2021, compared with $2.74 million for the six months ended June 30, 2020. Net cash used in operating activities was $3.79 million for the six months ended June 30, 2021, compared with $2.72 million for the six months ended June 30, 2020.
Net cash used in investing activities was $15.81 million for the six months ended June 30, 2021, 2020, compared with $78.86 million for the six months ended June 30, 2020.
Net cash provided by financing activities was $23.10 million for the six months ended June 30, 2021, compared with $80.24 million the six months ended June 30, 2020.
About TD Holdings, Inc.
TD Holdings, Inc. is a service provider currently engaging in commodity trading business and supply chain service business in China. Its commodities trading business primarily involves purchasing non-ferrous metal product from upstream metal and mineral suppliers and then selling to downstream customers. Its supply chain service business primarily has served as a one-stop commodity supply chain service and digital intelligence supply chain platform integrating upstream and downstream enterprises, warehouses, logistics, information, and futures trading. For more information, please visit http://ir.tdglg.com .
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of TD Holdings, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: there is uncertainty about the spread of the COVID-19 virus and the impact it will have on the Company's operations, the demand for the Company's products and services, global supply chains and economic activity in general. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements .
For more information, please contact:
Ascent Investor Relations LLC Tina Xiao tina.xiao@ascent-ir.com
TD HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
June 30,
December 31,
ASSETS
Current Assets
Cash
$
6,896,515
$
2,700,013
Accounts receivable, net
2,523
-
Loans receivable from third parties
59,504,874
18,432,691
Prepayments
5,115,092
-
Due from related parties
20,366,043
55,839,045
Inventory
883,961
-
Other current assets
728,738
1,310,562
Total current assets
93,497,746
78,282,311
Property and equipment, net
2,205
-
Goodwill
70,088,377
69,322,325
Intangible assets
22,999,116
19,573,846
Total noncurrent assets
93,089,698
88,896,171
Total Assets
$
186,587,444
$
167,178,482
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable
$
2,301,057
$
-
Advances from customers
10,995,818
9,214,369
Third party loan payables
1,996,533
-
Due to related parties
1,349,180
7,346,021
Bank borrowings
1,300,068
1,653,247
Income tax payable
6,703,087
5,460,631
Convertible notes
5,219,360
-
Acquisition payable
-
15,384,380
Other current liabilities
2,930,193
3,197,147
Total Current Liabilities
32,795,296
42,255,795
Deferred tax liabilities
4,535,242
4,893,461
Total Non-current Liabilities
4,535,242
4,893,461
Total Liabilities
37,330,538
47,149,256
Commitments and Contingencies (Note 12)
Equity
Common stock (par value $0.00 1 per share, 100,000,000 shares authorized;
97,044
79,131
Additional paid-in capital
181,174,696
151,407,253
Statutory reserve
913,292
913,292
Accumulated deficit
(41,876,191)
(39,255,945)
Accumulated other comprehensive loss
8,948,065
6,885,495
Total Equity
149,256,906
120,029,226
Total Liabilities and Equity
$
186,587,444
$
167,178,482
TD HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Expressed in U.S. dollars, except for the number of shares)
For the Three Months Ended
For the Six Months Ended
2021
2020
2021
2020
Revenues
- Sales of commodity products – related parties
$
1,523,616
$
1,563,669
$
21,926,631
$
2,617,301
- Sales of commodity products – third parties
57,989,381
-
67,022,848
- Supply chain management services – related parties
26,949
70,596
- Supply chain management services – third parties
326,650
351,793
472,425
460,630
Total Revenue
59,839,647
1,942,411
89,421,904
3,148,527
Cost of revenue
- Commodity product sales-related parties
(1,531,336)
(1,369,669)
(21,917,517)
(1,256,218)
- Commodity product sales-third parties
(57,932,603)
(200,679)
(66,965,015)
(1,369,669)
- Supply chain management services – related parties
-
-
-
- Supply chain management services – third parties
(2,592)
(7,633)
(3,642)
(7,954)
Total cost of revenue
(59,466,531)
(1,577,981)
(88,886,174)
(2,633,841)
Gross profit
373,116
364,430
535,730
514,686
Operating expenses
Selling, general, and administrative expenses
(2,054,354)
(439,128)
(3,624,733)
(740,825)
Total operating cost and expenses
(2,054,354)
(439,128)
(3,624,733)
(740,825)
Other income (expenses), net
Interest income
2,946,236
1,804,743
5,045,093
1,884,923
Interest expenses
(155,825)
(31,610)
(283,248)
(54,480)
Share-based payment for service
-
-
(1,695,042)
-
Amortization of beneficial conversion feature relating to
-
(3,400,000)
-
(3,400,000)
Amortization of relative fair value of warrants relating to issuance of convertible notes
-
(3,060,000)
-
(3,060,000)
Other income (expense), net
(379,924)
-
(386,358)
-
Total other income (expenses), net
2,410,487
(4,686,867)
2,680,445
(4,629,557)
Net income (loss) from continuing operations before income taxes
729,249
(4,761,565)
(408,558)
(4,855,696)
Income tax expenses
(371,393)
(408,829)
(771,862)
(408,829)
Net income (loss) from continued operations, net of tax
357,856
(5,170,394)
(1,180,420)
(5,264,525)
Net loss from discontinued operations, net of tax
-
(292,091)
-
(552,445)
Net income (loss)
357,856
(5,462,485)
(1,180,420)
(5,816,970)
Less: Net loss attributable to non-controlling interests
-
2,804
-
7,073
Net income (loss) attributable to TD Holdings, Inc.'s Stockholders
$
357,856
(5,459,681)
(1,180,420)
(5,809,897)
Comprehensive Income (Loss)
Net income (loss)
$
357,856
(5,462,485)
(1,180,420)
(5,816,970)
Foreign currency translation adjustment
2,706,148
(85,670)
2,062,570
(87,972)
Comprehensive income (loss)
3,064,004
(5,548,155)
882,150
(5,904,942)
Less: Total comprehensive income - attributable to non-controlling interests
-
2,804
-
7,073
Comprehensive income (loss) attributable to TD Holdings, Inc.
$
3,064,064
(5,545,351)
882,150
(5,897,869)
Income (Loss) per share - basic and diluted
Continuing Operation- Income (loss) per share – Basic and diluted
(0.00)
(0.11)
(0.01)
(0.17)
Continuing Operation- Income (loss) per share – Diluted
(0.00)
-
-
-
Discontinuing Operation-Net loss per share –Basic and diluted
$
-
(0.01)
-
(0.02)
Weighted Average Shares Outstanding-Basic
96,821,039
47,486,210
95,025,014
30,579,616
Weighted Average Shares Outstanding- Diluted
102,312,155
-
-
-
TD HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. dollar)
For the Six Months Ended
2021
2020
Cash Flows from Operating Activities:
Net loss
$
(1,180,420)
(5,816,970)
Less: Net income (loss) from discontinued operations
-
(552,445)
Net income (loss) from continuing operations
-
(5,264,525)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization of intangible assets
1,895,871
-
Depreciation of fixed assets
130
-
Amortization of discount on convertible notes
163,333
-
Amortization of right of use assets
-
146,890
Amortization of beneficial conversion feature relating to issuance of convertible notes
-
3,400,000
Amortization of relative fair value of warrants relating to issuance of convertible notes
-
3,060,000
Share-based payment for service
1,695,042
-
Standstill fee relating to convertible notes
356,934
-
Interest expense for convertible notes
199,093
-
Deferred tax liabilities
(411,736)
-
Changes in operating assets and liabilities:
Other current assets
601,683
(138,596)
Account receivables
(2,520)
(1,927,299)
Inventory
(882,764)
-
Prepayments
(5,108,162)
(2,843,373)
Advances from customers
1,677,349
63,976
Accounts payable
2,297,940
-
Due to related parties
(5,518,273)
(300,549)
Due from related parties
(457,032)
-
Income tax payable
1,175,327
408,829
Other current liabilities
(297,177)
820,815
Lease liabilities
-
(166,242)
Net cash provided by (used in) operating activities from continuing operations
(3,789,382)
(2,740,074)
Net cash provided by operating activities from discontinued operations
-
19,213
Net cash provided by (used in) operating activities
(3,789,382)
(2,720,861)
Cash Flows from Investing Activities:
Purchases of intangible assets
(5,100,490)
-
Purchases of fixed assets
(2,332)
-
Final payment of acquisition of a subsidiary
(15,533,312)
-
Payment made on loan to related parties
(7,174,955)
-
Payment made on loans to third parties
(45,057,871)
(78,559,027)
Collection of loans from related parties
43,687,593
-
Collection of loans from third parties
13,370,395
-
Net cash used in investing activities from continuing operations
(15,810,972)
(78,559,027)
Net cash used in investing activities from discontinued operations
-
(300,711)
Net cash used in investing activities
(15,810,972)
(78,859,738)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock under ATM transaction
2,192,989
-
Proceeds from issuance of common stock under private placement transactions
24,450,000
13,500,000
Proceeds from exercise of warrants
7,500
36,000,000
Proceeds from issuance of convertible promissory notes
4,500,000
30,000,000
Proceeds from borrowings from related parties
1,121,770
Proceeds from borrowings from third parties
1,993,828
-
Repayments made on loans to related parties
(550,930)
-
Payments made on loans to third parties
(9,496,586)
-
Net cash provided by financing activities from continuing operations
23,096,801
80,621,770
Net cash used in financing activities from discontinuing operations
-
(381,554)
Net cash provided by financing activities
23,096,801
80,240,216
Effect of exchange rate changes on cash and cash equivalents
700,055
381,294
Net increase/(decrease)in cash and cash equivalents
4,196,502
(959,089)
Cash at beginning of period
2,700,013
2,446,683
Cash at end of period
$
6,896,515
1,487,594
Less: Cash from discontinued operations
-
84
Cash from continuing operations
6,896,515
1,487,510
Supplemental Cash Flow Information
Cash paid for interest expense
-
-
Cash paid for income tax
$
75,416
$
-
Supplemental disclosure of Non-cash investing and financing activities
Right-of-use assets obtained in exchange for operating lease obligations
$
-
$
455,635
Issuance of common stocks in connection with conversion of convertible notes
$
-
$
30,000,000
Issuance of common stocks in connection with private placements, net of issuance costs with proceeds collected in advance in November 2019
$
-
$
1,600,000
Issuance of common stocks in connection with warrant cashless exercise in March 2021
$
1,439,826
$
-
https://www.prnewswire.com/news-releases/td-holdings-inc-reports-second-quarter-2021-financial-results-301357245.html
SOURCE TD Holdings, Inc.
