Nisun International Reports Financial Results for the First Half of 2024

Rhea-AI Summary

Nisun International (Nasdaq: NISN) reported strong financial results for the first half of 2024, with total revenue increasing by 52% to $192.5 million. The company's supply chain trading business saw a 114% revenue increase to $142.1 million, driven primarily by growth in the gold trading sector. However, SME financing services revenue declined by 16% to $48.5 million, and supply chain financing solutions revenue decreased by 30% to $1.9 million due to challenging market conditions.

Net income was $10.3 million, with earnings per share at $2.61. The company's cash position decreased to $47.8 million, primarily due to increased advances to suppliers. Nisun International approved a $15 million share buyback program to enhance shareholder value. The company remains optimistic about future growth, expecting continued momentum in its supply chain trading business and anticipating a more favorable environment for its financing solutions.

Positive

• Total revenue increased by 52% to $192.5 million
• Supply chain trading business revenue grew by 114% to $142.1 million
• Net income of $10.3 million
• Operating expenses decreased by 31% to $5.7 million
• Approved $15 million share buyback program

Negative

• SME financing services revenue declined by 16% to $48.5 million
• Supply chain financing solutions revenue decreased by 30% to $1.9 million
• Cash and cash equivalents decreased from $114.4 million to $47.8 million
• Earnings per share decreased from $2.87 to $2.61

Insights

Financial Analyst

Nisun International's first half 2024 results demonstrate strong revenue growth, primarily driven by its supply chain trading business. The 52% increase in total revenue to $192.5 million is impressive, particularly the 114% growth in supply chain trading to $142.1 million. However, the decline in SME financing and supply chain financing solutions revenues indicates challenges in these segments.

The company's net income of $10.3 million and EPS of $2.61 show a slight decrease from the previous year, likely due to the revenue mix shift towards lower-margin trading activities. The 31% reduction in operating expenses reflects effective cost management, which is important in maintaining profitability.

The $15 million share buyback program signals management's confidence in the company's future and could potentially support the stock price. However, the significant decrease in cash and cash equivalents from $114.4 million to $47.8 million warrants careful monitoring of liquidity and working capital management.

Market Research Analyst

Nisun International's performance in H1 2024 reflects both opportunities and challenges in the Chinese market. The robust growth in the gold trading sector indicates a strong demand for precious metals, possibly driven by economic uncertainties. This aligns with broader market trends where investors seek safe-haven assets.

The decline in SME financing services revenue by 16% highlights the ongoing challenges faced by small businesses in China. However, the company's optimism about future growth in this segment, based on recent government stimulus measures, suggests potential for recovery. This could be a key area to watch, as improvements in SME lending often precede broader economic upturns.

The initiation of a share buyback program amid undervaluation claims is a strategic move that could boost investor confidence. It's particularly noteworthy given the largest shareholder's recent $1 million increase in stake, signaling strong insider belief in the company's prospects.

Company Reports 52% Revenue Growth, Initiates $15 Million Share Buyback Program

SHANGHAI, Oct. 15, 2024 /PRNewswire/ -- Nisun International Enterprise Development Group Co., Ltd. ("Nisun International" or the "Company") (Nasdaq: NISN), a technology and industry driven integrated supply chain solutions provider, today announced its reviewed but unaudited financial results for the six months ended June 30, 2024.

First Half 2024 Financial Highlights:

• Total revenue increased by 52% to $192.5 million, compared to $126.9 million for the first half of 2023.
• Supply chain trading business revenue increased by 114% to $142.1 million, up from $66.2 million in the prior-year period, driven primarily by growth in the gold trading sector.
• Small and medium-sized enterprises ("SME") financing services revenue declined by 16% to $48.5 million due to the challenging market conditions, but the Company is optimistic about the future growth as recent government stimulus measures in China begin to take effect.
• Supply chain financing solutions revenue decreased by 30% to $1.9 million, also impacted by market conditions, but is expected to recover alongside broader economic improvements.
• Net income was $10.3 million, compared to $11.4 million for the first half of 2023.
• Earnings per share were $2.61, compared to $2.87 in the prior-year period.

Operational Highlights:

• Cash Position: As of June 30, 2024, The Company's  cash and cash equivalents  were $47.8 million, compared to $114.4 million at the end of 2023. This decline was primarily driven by an increase in advances to suppliers, a strategic investment expected to fund future growth in sales and earnings. Additionally, a decrease in accounts payable contributed to the cash reduction.
• Cost Control: Operating expenses decreased by 31% to $5.7 million, reflecting effective cost management and efficiency improvements. Selling expenses fell by 69% as the Company maintained existing sales channels without expanding into new ones, and general and administrative expenses were reduced by 14% due to enhanced cost controls.
• Buyback Program: Nisun International has approved a $15 million share buyback program, which underscores the Company's confidence in its future growth and commitment to enhancing shareholder value. The program will begin as soon as the trading window opens in the coming days.

Management Commentary:

Mr. Xin Liu, Chief Executive Officer of Nisun International, commented:
"We are very pleased with our strong financial performance in the first half of 2024, marked by a significant 52% increase in total revenue. Our supply chain trading business continues to grow at an impressive rate, particularly in the gold trading sector, which underscores the effectiveness of our business model and technology-driven approach. While the challenging economic conditions impacted our SME financing services, we are beginning to see signs of a turnaround following the government's recent stimulus measures, and we are optimistic about the future of this segment.

Looking ahead, we remain committed to enhancing operational efficiency and seeking new growth opportunities. We also believe our stock is significantly undervalued, which is why we are excited to announce a $15 million share buyback program. Our largest shareholder has already demonstrated confidence in our future by increasing their stake by approximately $1 million during the first half of the year. We are confident that our growth initiatives and the share repurchase program will create additional value for our shareholders in the near term and beyond."

2024 Outlook:

Nisun International expects the momentum in its supply chain trading business to continue through the second half of 2024 and into 2025. With the Chinese government's stimulus measures beginning to take effect, the Company anticipates a more favorable environment for its SME financing and supply chain financing solutions, positioning Nisun International for sustained growth in the coming periods.

Details of the conference call, including dial-in information, will be announced in the coming days.

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 International is dedicated to providing professional supply chain solutions to Chinese and foreign enterprises and financial institutions. Through its subsidiaries, Nisun International 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 International continues to deepen the field of industry segmentation through industrial and financial integration. Focusing on industry-finance linkages, Nisun International 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 International '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 

View original content:https://www.prnewswire.com/news-releases/nisun-international-reports-financial-results-for-the-first-half-of-2024-302276120.html

SOURCE Nisun International Enterprise Development Group Co., Ltd

FAQ

What was Nisun International's (NISN) revenue growth in the first half of 2024?

Nisun International (NISN) reported a 52% increase in total revenue, reaching $192.5 million for the first half of 2024.

How much did Nisun International's (NISN) supply chain trading business revenue grow in H1 2024?

Nisun International's (NISN) supply chain trading business revenue increased by 114% to $142.1 million in the first half of 2024.

What was Nisun International's (NISN) net income for the first half of 2024?

Nisun International (NISN) reported a net income of $10.3 million for the first half of 2024.

Has Nisun International (NISN) announced any share buyback programs?

Yes, Nisun International (NISN) has approved a $15 million share buyback program to enhance shareholder value.

How did Nisun International's (NISN) SME financing services perform in H1 2024?

Nisun International's (NISN) SME financing services revenue declined by 16% to $48.5 million in the first half of 2024 due to challenging market conditions.