BEIJING, Oct. 27,
2022 /PRNewswire/ -- TIAN RUIXIANG Holdings Ltd
(Nasdaq: TIRX) (the "Company"), a China-based insurance
broker conducting business through its variable interest entity in
China, announced today its
unaudited financial results for the six months ended April 30,
2022.
Mr. Zhe Wang, Chairman of the board of the directors and
Chief Executive Officer of the Company, commented, "The challenging
macro environment and disruptions caused by the ongoing regional
Covid-19 pandemic restrictions in China has impacted our business. Our revenue
decreased by 42.2% for the six months ended April 30, 2022, which was primarily attributable
to a significant decrease in the commissions from liability
insurance. We executed our strategy to expand our business in
commercial property insurance and other insurances to partially
offset the decrease in the revenue from liability insurance. We
plan to continue attracting new customers and strengthening our
relationship with existing customers through our dedicated sales
team and high-quality customer services. Looking forward, we remain
committed in our business strategy to expand our market share and
growth opportunities in the insurance industry in China, while improving our operational
efficacy to achieve sustainable development goal and provide
long-term returns to our shareholders."
First Half of Fiscal Year 2022 Financial Highlights
|
For the Six Months
Ended April 30,
|
|
($ in millions,
except per share data)
|
2022
|
|
2021
|
|
%
Change
|
|
Revenue
|
0.95
|
|
1.64
|
|
(42.2) %
|
|
Operating
expenses
|
4.83
|
|
2.10
|
|
129.6 %
|
|
Loss from
operations
|
(3.88)
|
|
(0.47)
|
|
733.6 %
|
|
Net loss
|
(3.50)
|
|
(0.40)
|
|
767.4 %
|
|
Loss
per share
|
(0.28)
|
|
(0.06)
|
|
366.7 %
|
- Revenue decreased by 42.2% to $0.95
million for the six months ended April 30, 2022, from $1.64
million for the same period of fiscal year 2021, primarily
attributable to a significant decrease in commission from liability
insurance of approximately $1.03
million resulting from the loss of insurance company
partners, offset by an increase in commission from commercial
property insurance of approximately $0.25
million driven by our business expansion and an increase in
commission from other miscellaneous insurances of approximately
$0.09 million.
- Operating expenses increased by 129.6% to $4.83 million for the six months ended
April 30, 2022, from $2.10 million for the same period of fiscal year
2021.
- Net loss was $3.50 million for
the six months ended April 30, 2022,
compared to $0.40 million for the
same period of fiscal year 2021.
- Loss per share was $0.28 for the
six months ended April 30, 2022,
compared to $0.06 for the same period
of fiscal year 2021.
First Half of Fiscal Year 2022 Financial Results
Revenue
Revenue decreased by $0.69
million, or 42.2% to $0.95
million for the six months ended April 30, 2022, from $1.64
million for the same period of fiscal year 2021. This
decrease was primarily attributable to a significant decrease in
commission from liability insurance of approximately $1.03 million resulting from the loss of
insurance company partners, offset by an increase in commission
from commercial property insurance of approximately $0.25 million driven by our business expansion
and an increase in commission from other miscellaneous insurances
of approximately $0.09 million.
Operating Expenses
Third party and related party selling and marketing expenses
increased by $0.25 million, or 29.6%,
to $1.11 million for the six months
ended April 30, 2022, from
$0.86 million for the same period of
fiscal year 2021. The increase was mainly attributable to an
increase in the stock-based compensation of approximately
$0.58 million which reflected the
value of our ordinary shares granted to our sales professionals,
offset by a decrease in marketing fees of approximately
$0.33 million due to our decreased
marketing activities.
Third party and related party general and administrative
expenses increased by $2.47 million,
or 198.7%, to $3.71 million for the
six months ended April 30, 2022, from
$1.24 million for the same period of
fiscal year 2021. The increase in general and administrative
expenses was primarily attributable to the increased professional
fees, compensation and related benefits, rent and related
utilities, directors and officers' liability insurance premium
expenses, and partially offset by the decreased travel and
entertainment, and depreciation and amortization expenses.
Total operating expenses increased by $2.72 million,
or 129.6%, to $4.83 million for the six months ended
April 30, 2022, from $2.10
million for the same period of fiscal year 2021.
Loss from Operations
Loss from operations was $3.88
million for the six months ended April 30, 2022, compared to $0.47 million for the same period of fiscal year
2021.
Other Income
Other income primarily includes interest income generated by
notes receivable and miscellaneous income. Other income, net, was
$0.40 million for the six months
ended April 30, 2022, compared to
$0.07 million for the same period of
fiscal year 2021.
Loss before Income Tax
Loss before income tax was $3.48 million for the six months
ended April 30, 2022, compared
to $0.40 million for the same period of fiscal year
2021.
Income tax expense was $21,410 for the six months
ended April 30, 2022, compared
to $6,917 for the same period of fiscal year 2021.
Net Loss and Net Loss per Share
Net loss was $3.50 million for the six months ended
April 30, 2022, compared
to $0.40 million for the same period of fiscal year 2021.
After deduction of non-controlling interest, net loss attributable
to TIRX ordinary shareholders was $3.50 million, or net loss
per share of $0.28 for the six months ended April 30, 2022, compared to $0.40 million,
or net loss per share of $0.06 for the same period of fiscal
year 2021.
Financial Conditions
At April 30, 2022, the Company had
cash and cash equivalents of $29.02
million, compared to $30.02
million at October 31, 2021.
Total working capital was $36.52
million at April 30, 2022,
compared to $30.51 million at
October 31, 2021.
Net cash used in operating activities was $0.08 million for the six months ended
April 30, 2022, compared to net cash
provided by operating activities of $1.09
million for the same period of fiscal year 2021.
Net cash used in investing activities was $2,436 for the six months ended April 30, 2022, and there were no investing
activities for the same period of fiscal year 2021.
Net cash flow provided by financing activities was $0 for the six months ended April 30, 2022, and net cash provided by
financing activities was $10.71
million for the same period of fiscal year 2021.
About TIAN RUIXIANG Holdings Ltd
TIAN RUIXIANG Holdings Ltd, headquartered in Beijing, China, is an insurance broker
operating in China through its
China-based variable interest
entity. It distributes a wide range of insurance products, which
are categorized into two major groups: (1) property and casualty
insurance, such as automobile insurance, commercial property
insurance, liability insurance; and (2) other insurance, such as
life insurance and health insurance. For more information, visit
the company's website at http://ir.tianrx.com/.
Forward-Looking Statements
Certain statements in this announcement are forward-looking
statements. These forward-looking statements involve known and
unknown risks and uncertainties and are based on current
expectations and projections about future events and financial
trends that the Company believes may affect its financial
condition, results of operations, business strategy and financial
needs. Investors can identify these forward-looking statements by
words or phrases such as "may," "will," "expect," "anticipate,"
"aim," "estimate," "intend," "plan," "believe," "potential,"
"continue," "is/are likely to" or other similar expressions. The
Company undertakes no obligation to update forward-looking
statements to reflect subsequent occurring events or circumstances,
or changes in its expectations, except as may be required by law.
Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, it cannot assure
you that such expectations will turn out to be correct, and the
Company cautions investors that actual results may differ
materially from the anticipated results and encourages investors to
review risk factors that may affect its future results in the
Company's registration statement and in its other filings with the
SEC.
For investor and media enquiries, please
contact:
TIAN RUIXIANG Holdings Ltd
Investor Relations
Department
Email: ir@tianrx.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1 917-609-0333
Email: tina.xiao@ascent-ir.com
|
TIAN RUIXIANG HOLDINGS LTD AND
SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED
BALANCE SHEETS
|
|
(IN U.S.
DOLLARS)
|
|
|
As of
|
|
|
April 30, 2022
|
|
October 31, 2021
|
|
ASSETS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
29,015,368
|
|
$
|
30,024,372
|
|
Restricted
cash
|
|
|
795,044
|
|
|
819,269
|
|
Accounts
receivable
|
|
|
97,404
|
|
|
320,848
|
|
Note
receivable
|
|
|
7,500,000
|
|
|
—
|
|
Interest
receivable
|
|
|
186,986
|
|
|
—
|
|
Due from related
party
|
|
|
2,485
|
|
|
—
|
|
Other current
assets
|
|
|
245,007
|
|
|
465,650
|
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
|
37,842,294
|
|
|
31,630,139
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Note
receivable
|
|
|
—
|
|
|
7,500,000
|
|
Interest
receivable
|
|
|
—
|
|
|
113,014
|
|
Property and equipment,
net
|
|
|
10,825
|
|
|
11,265
|
|
Intangible assets,
net
|
|
|
133,404
|
|
|
147,538
|
|
Right-of-use assets,
operating leases, net
|
|
|
486,854
|
|
|
760,229
|
|
Other non-current
assets
|
|
|
90,807
|
|
|
188,281
|
|
|
|
|
|
|
|
|
Total Non-current
Assets
|
|
|
721,890
|
|
|
8,720,327
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
38,564,184
|
|
$
|
40,350,466
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Taxes
payable
|
|
$
|
499,094
|
|
$
|
493,196
|
|
Salary
payable
|
|
|
207,301
|
|
|
103,168
|
|
Accrued liabilities and
other payables
|
|
|
275,600
|
|
|
95,664
|
|
Due to related
party
|
|
|
—
|
|
|
2,564
|
|
Operating lease
liabilities
|
|
|
343,547
|
|
|
423,124
|
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
|
1,325,542
|
|
|
1,117,716
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Operating lease
liabilities - noncurrent portion
|
|
|
106,551
|
|
|
237,848
|
|
|
|
|
|
|
|
|
Total Non-current
Liabilities
|
|
|
106,551
|
|
|
237,848
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
1,432,093
|
|
|
1,355,564
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
TIAN RUIXIANG Holdings
Ltd Shareholders' Equity:
|
|
|
|
|
|
|
|
Ordinary shares: $0.001
par value; 50,000,000 shares authorized;
|
|
|
|
|
|
|
|
Class A ordinary
shares: $0.001 par value; 47,500,000 shares authorized; 12,236,000
and 10,100,000 shares issued and outstanding
at April 30, 2022 and October 31, 2021
respectively
|
|
|
12,236
|
|
|
10,100
|
|
Class B ordinary
shares: $0.001 par value; 2,500,000 shares authorized; 1,250,000
shares issued and outstanding at April 30, 2022
and October 31, 2021
|
|
|
1,250
|
|
|
1,250
|
|
Additional paid-in
capital
|
|
|
42,363,453
|
|
|
39,776,761
|
|
Less: ordinary stock
held in treasury, at cost; 450,000 and 0 shares at
April 30, 2022 and October 31, 2021
respectively
|
|
|
—
|
|
|
—
|
|
Accumulated
deficit
|
|
|
(4,593,767)
|
|
|
(1,090,060)
|
|
Statutory
reserve
|
|
|
199,653
|
|
|
199,653
|
|
Accumulated other
comprehensive (loss) income
|
|
|
(851,189)
|
|
|
96,709
|
|
Total TIAN RUIXIANG
Holdings Ltd shareholders'equity
|
|
|
37,131,636
|
|
|
38,994,413
|
|
Non-controlling
interest
|
|
|
455
|
|
|
489
|
|
|
|
|
|
|
|
|
Total
Equity
|
|
|
37,132,091
|
|
|
38,994,902
|
|
|
|
|
|
|
|
|
Total Liabilities and
Equity
|
|
$
|
38,564,184
|
|
$
|
40,350,466
|
|
TIAN RUIXIANG HOLDINGS LTD AND
SUBSIDIARIES
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
|
(IN U.S.
DOLLARS)
|
|
|
|
For the Six Months
Ended April 30,
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
REVENUE
|
|
$
|
945,645
|
|
$
|
1,636,835
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Selling and
marketing
|
|
|
1,113,896
|
|
|
859,388
|
|
General and
administrative - professional fees
|
|
|
930,873
|
|
|
656,534
|
|
General and
administrative - compensation and related benefits
|
|
|
2,346,067
|
|
|
424,225
|
|
General and
administrative - other
|
|
|
435,233
|
|
|
162,183
|
|
|
|
|
|
|
|
|
Total Operating
Expenses
|
|
|
4,826,069
|
|
|
2,102,330
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
|
|
(3,880,424)
|
|
|
(465,495)
|
|
|
|
|
|
|
|
|
OTHER INCOME
|
|
|
|
|
|
|
|
Interest
income
|
|
|
75,326
|
|
|
1,038
|
|
Other income
|
|
|
322,781
|
|
|
67,438
|
|
|
|
|
|
|
|
|
Total Other
Income
|
|
|
398,107
|
|
|
68,476
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAXES
|
|
|
(3,482,317)
|
|
|
(397,019)
|
|
|
|
|
|
|
|
|
INCOME TAXES
|
|
|
21,410
|
|
|
6,917
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(3,503,727)
|
|
$
|
(403,936)
|
|
|
|
|
|
|
|
|
LESS: NET LOSS
ATTRIBUTABLE TO NON-CONTROLLING INTEREST
|
|
|
(20)
|
|
|
(1)
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE
TO TIAN RUIXIANG HOLDINGS LTD ORDINARY
SHAREHOLDERS
|
|
$
|
(3,503,707)
|
|
$
|
(403,935)
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
LOSS:
|
|
|
|
|
|
|
|
NET LOSS
|
|
|
(3,503,727)
|
|
|
(403,936)
|
|
OTHER COMPREHENSIVE
(LOSS) INCOME
|
|
|
|
|
|
|
|
Unrealized foreign
currency translation (loss) gain
|
|
|
(947,912)
|
|
|
297,237
|
|
COMPREHENSIVE
LOSS
|
|
$
|
(4,451,639)
|
|
$
|
(106,699)
|
|
LESS: COMPREHENSIVE
(LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING
INTEREST
|
|
|
(34)
|
|
|
16
|
|
COMPREHENSIVE LOSS
ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS
LTD ORDINARY SHAREHOLDERS
|
|
$
|
(4,451,605)
|
|
$
|
(106,715)
|
|
|
|
|
|
|
|
|
NET LOSS PER ORDINARY
SHARE ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS
LTD ORDINARY SHAREHOLDERS:
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.28)
|
|
$
|
(0.06)
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
ORDINARY SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
12,298,929
|
|
|
6,560,497
|
|
TIAN RUIXIANG HOLDINGS LTD AND
SUBSIDIARIES
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(IN U.S.
DOLLARS)
|
|
|
|
For the Six Months
Ended April 30,
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(3,503,727)
|
|
$
|
(403,936)
|
|
Adjustments to
reconcile net loss to
|
|
|
|
|
|
|
|
net cash (used in)
provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation expense
and amortization of intangible assets
|
|
|
12,497
|
|
|
13,492
|
|
Amortization of
right-of-use assets
|
|
|
168,618
|
|
|
132,622
|
|
Stock-based
compensation and service expense
|
|
|
2,588,828
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
221,522
|
|
|
923,218
|
|
Security
deposit
|
|
|
16,880
|
|
|
4,495
|
|
Interest
receivable
|
|
|
(73,972)
|
|
|
—
|
|
Due from related
party
|
|
|
(2,578)
|
|
|
—
|
|
Other
assets
|
|
|
292,661
|
|
|
134,880
|
|
Taxes
payable
|
|
|
21,814
|
|
|
(41,633)
|
|
Salary
payable
|
|
|
109,129
|
|
|
218,031
|
|
Accrued liabilities
and other payables
|
|
|
182,255
|
|
|
250,097
|
|
Due to related
parties
|
|
|
(2,578)
|
|
|
10,071
|
|
Operating lease
liabilities - related party
|
|
|
—
|
|
|
(6,141)
|
|
Operating lease
liabilities
|
|
|
(106,957)
|
|
|
(141,073)
|
|
|
|
|
|
|
|
|
NET CASH (USED IN)
PROVIDED BY OPERATING ACTIVITIES
|
|
|
(75,608)
|
|
|
1,094,123
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(2,436)
|
|
|
—
|
|
|
|
|
|
|
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
|
|
(2,436)
|
|
|
—
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Proceeds from note
payable
|
|
|
—
|
|
|
75,165
|
|
Proceeds from related
parties' borrowings
|
|
|
233,811
|
|
|
1,652,137
|
|
Repayments for related
parties' borrowings
|
|
|
(233,811)
|
|
|
(1,863,143)
|
|
Proceeds from initial
public offering
|
|
|
—
|
|
|
12,300,000
|
|
Disbursements for
initial public offering costs
|
|
|
—
|
|
|
(1,449,770)
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY
FINANCING ACTIVITIES
|
|
|
—
|
|
|
10,714,389
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE
ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
|
(955,185)
|
|
|
238,374
|
|
|
|
|
|
|
|
|
NET (DECREASE) INCREASE
IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
|
(1,033,229)
|
|
|
12,046,886
|
|
|
|
|
|
|
|
|
CASH, CASH EQUIVALENTS
AND RESTRICTED CASH - beginning of period
|
|
|
30,843,641
|
|
|
6,923,495
|
|
|
|
|
|
|
|
|
CASH, CASH EQUIVALENTS
AND RESTRICTED CASH - end of period
|
|
$
|
29,810,412
|
|
$
|
18,970,381
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE
OF CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
Cash paid
for:
|
|
|
|
|
|
|
|
Interest
|
|
$
|
22
|
|
$
|
—
|
|
Income
taxes
|
|
$
|
—
|
|
$
|
597
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING AND
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Payments made by
related parties on the Company's behalf
|
|
$
|
—
|
|
$
|
267,610
|
|
|
|
|
|
|
|
|
RECONCILIATION OF CASH,
CASH EQUIVALENTS AND RESTRICTED CASH
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
$
|
30,024,372
|
|
$
|
6,137,689
|
|
Restricted cash at
beginning of period
|
|
|
819,269
|
|
|
785,806
|
|
Total cash, cash
equivalents and restricted cash at beginning of period
|
|
$
|
30,843,641
|
|
$
|
6,923,495
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at end of period
|
|
$
|
29,015,368
|
|
$
|
18,160,102
|
|
Restricted cash at end
of period
|
|
|
795,044
|
|
|
810,279
|
|
Total cash, cash
equivalents and restricted cash at end of period
|
|
$
|
29,810,412
|
|
$
|
18,970,381
|
View original
content:https://www.prnewswire.com/news-releases/tian-ruixiang-holdings-ltd-reports-financial-results-for-the-six-months-ended-april-30-2022-301661610.html
SOURCE TIAN RUIXIANG Holdings Ltd
