TIAN RUIXIANG Holdings Ltd Reports Financial Results for the Half Year Ended April 30, 2024
August 16 2024 - 4:15PM
TIAN RUIXIANG Holdings Ltd (Nasdaq: TIRX) (the "Company"), a
China-based insurance broker conducting business through its
variable interest entity in China, today announced its financial
results for the half year ended April 30, 2024.
Ms. Sheng Xu, the Chief Executive Officer of the Company,
commented, "The Company reported a net loss of approximately $2.6
million for the six months ended April 30, 2024, primarily due to a
significant decline in revenue caused by the loss of a few key
insurance company partners. However, we are encouraged by the
increase in the commissions from liability insurance of
approximately $24,000 compared to the same period in 2023,
indicating our success in expanding our liability insurance
business.”
“We are actively pursuing strategies, such as expanding into the
Hong Kong insurance brokerage market and diversifying our client
base, to mitigate the impact of the lost partnerships and improve
the Company’s financial performance in the future.”
Selected Half Year 2024 Financial Metrics
|
|
Six Months Ended April 30, |
|
Changes in |
|
($ in millions, except per share data, differences due to
rounding.) |
|
2024 |
|
2023 |
|
Percentage |
|
Revenues |
|
$ |
0.2 |
|
$ |
0.7 |
|
(75.4) |
% |
Total operating expenses |
|
|
3.1 |
|
|
2.7 |
|
18.4 |
% |
Loss from operations |
|
|
(3.0) |
|
|
(1.9) |
|
53.7 |
% |
Net loss |
|
|
(2.6) |
|
|
(1.5) |
|
75.3 |
% |
Revenue
Revenue for the six months ended April 30, 2024 totaled $0.2
million, a decrease of $0.5 million, or 75.4%, compared with $0.7
million for the six months ended April 30, 2023. This significant
decrease was primarily attributable to the loss of certain
insurance company partners.
Operating Expenses
During the six months ended April 30, 2024 and 2023, operating
expenses included selling and marketing expenses and general and
administrative expenses.
- Selling and marketing expenses
amounted to $1.2 million for the six months ended April 30, 2024,
as compared to $1.6 million for the six months ended April 30,
2023, a decrease of $0.4 million, or 26.5%. The decrease was mainly
attributable to a decrease in advertising costs and other
miscellaneous items.
- General and administrative expenses
amounted to $2.0 million for the six months ended April 30, 2024,
as compared to $1.1 million for the six months ended April 30,
2023, an increase of $0.9 million, or 83.0%.
Loss from Operations
As a result of the foregoing, for the six months ended April 30,
2024, loss from operations amounted to $3.0 million, as compared to
$1.9 million for the six months ended April 30, 2023.
Net Loss
As a result of the factors described above, net loss was $2.6
million for the six months ended April 30, 2024, as compared to
$1.5 million for the six months ended April 30, 2023, a change of
$1.1 million, or 75.3%.
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 commercial property insurance,
liability insurance, accidental insurance, and automobile
insurance; and (2) other types of insurance, such as health
insurance, life insurance, and other miscellaneous 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
U.S. Securities and Exchange Commission.
For investor and media enquiries, please
contact:
TIAN RUIXIANG Holdings Ltd Investor Relations Department Email:
ir@tianrx.com
Wealth Financial Services LLC Connie Kang Partner Email:
ckang@wealthfsllc.comTel: +86 1381 185 7742 (CN)
TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIESCONDENSED CONSOLIDATED
BALANCE SHEETS(IN U.S. DOLLARS) |
|
|
|
|
|
|
|
|
|
As of |
|
|
April 30, 2024 |
|
October 31, 2023 |
|
|
|
(Unaudited) |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
Cash |
|
$ |
27,456,502 |
|
|
$ |
2,383 |
|
Restricted cash |
|
|
700,530 |
|
|
|
692,692 |
|
Short-term investments |
|
|
— |
|
|
|
26,797,081 |
|
Accounts receivable |
|
|
7,844 |
|
|
|
18,960 |
|
Other current assets |
|
|
90,333 |
|
|
|
107,508 |
|
|
|
|
|
|
|
|
Total Current Assets |
|
|
28,255,209 |
|
|
|
27,618,624 |
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
|
|
|
Right-of-use assets, operating
leases, net |
|
|
61,518 |
|
|
|
54,870 |
|
Note receivable |
|
|
7,800,000 |
|
|
|
7,800,000 |
|
Interest receivable |
|
|
78,000 |
|
|
|
— |
|
Property and equipment, net |
|
|
5,605 |
|
|
|
6,280 |
|
Intangible assets, net |
|
|
1,766,961 |
|
|
|
— |
|
|
|
|
|
|
|
|
Total Non-current Assets |
|
|
9,712,084 |
|
|
|
7,861,150 |
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
37,967,293 |
|
|
$ |
35,479,774 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
Acquisition payable |
|
$ |
1,875,002 |
|
|
$ |
— |
|
Operating lease liabilities |
|
|
24,892 |
|
|
|
57,402 |
|
Taxes payable |
|
|
626,150 |
|
|
|
623,825 |
|
Salary payable |
|
|
815,449 |
|
|
|
726,330 |
|
Accrued liabilities and other
payables |
|
|
932,295 |
|
|
|
481,801 |
|
Due to related parties |
|
|
1,310,545 |
|
|
|
1,173,510 |
|
|
|
|
|
|
|
|
Total Current Liabilities |
|
|
5,584,333 |
|
|
|
3,062,868 |
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
|
Operating lease liabilities -
noncurrent portion |
|
|
39,872 |
|
|
|
— |
|
|
|
|
|
|
|
|
Total Non-current
Liabilities |
|
|
39,872 |
|
|
|
— |
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
5,624,205 |
|
|
|
3,062,868 |
|
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
|
TIAN RUIXIANG Holdings Ltd
Shareholders' Equity: |
|
|
|
|
|
|
Ordinary shares: $0.025 par
value; 40,000,000 shares authorized; |
|
|
|
|
|
|
Class A ordinary shares: $0.025
par value; 36,000,000 shares authorized; 1,372,949 and 674,949
shares issued and outstanding at April 30, 2024 and October 31,
2023, respectively |
|
|
34,324 |
|
|
|
16,874 |
|
Class B ordinary shares: $0.025
par value; 4,000,000 shares authorized; 50,000 shares issued and
outstanding at April 30, 2024 and October 31, 2023 |
|
|
1,250 |
|
|
|
1,250 |
|
Additional paid-in capital |
|
|
46,361,339 |
|
|
|
44,108,774 |
|
Accumulated deficit |
|
|
(10,909,039 |
) |
|
|
(8,303,691 |
) |
Statutory reserve |
|
|
275,150 |
|
|
|
275,150 |
|
Accumulated other comprehensive
loss |
|
|
(3,420,333 |
) |
|
|
(3,681,845 |
) |
Total TIAN RUIXIANG Holdings Ltd
shareholders' equity |
|
|
32,342,691 |
|
|
|
32,416,512 |
|
Non-controlling interest |
|
|
397 |
|
|
|
394 |
|
|
|
|
|
|
|
|
Total Equity |
|
|
32,343,088 |
|
|
|
32,416,906 |
|
|
|
|
|
|
|
|
Total Liabilities and Equity |
|
$ |
37,967,293 |
|
|
$ |
35,479,774 |
|
TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIESUNAUDITED CONDESNSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(IN
U.S. DOLLARS) |
|
|
|
|
|
|
|
(IN U.S. DOLLARS) |
|
|
|
|
|
|
|
|
For the Six Months Ended April 30, |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
REVENUES |
|
$ |
178,345 |
|
|
$ |
724,859 |
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
Selling and marketing |
|
|
1,149,083 |
|
|
|
1,564,353 |
|
General and administrative - professional fees |
|
|
390,503 |
|
|
|
735,314 |
|
General and administrative - compensation and related benefits |
|
|
1,521,846 |
|
|
|
290,810 |
|
General and administrative - other |
|
|
79,743 |
|
|
|
62,368 |
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
3,141,175 |
|
|
|
2,652,845 |
|
|
|
|
|
|
|
|
LOSS FROM OPERATIONS |
|
|
(2,962,830 |
) |
|
|
(1,927,986 |
) |
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
Interest income |
|
|
348,639 |
|
|
|
468,200 |
|
Other income (expense) |
|
|
22,940 |
|
|
|
(6,464 |
) |
|
|
|
|
|
|
|
Total Other Income, net |
|
|
371,579 |
|
|
|
461,736 |
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAXES |
|
|
(2,591,251 |
) |
|
|
(1,466,250 |
) |
|
|
|
|
|
|
|
INCOME TAXES |
|
|
14,098 |
|
|
|
20,003 |
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(2,605,349 |
) |
|
$ |
(1,486,253 |
) |
|
|
|
|
|
|
|
LESS: NET LOSS ATTRIBUTABLE TO
NON-CONTROLLING INTEREST |
|
|
(1 |
) |
|
|
— |
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE TO TIAN
RUIXIANG HOLDINGS LTD ORDINARY SHAREHOLDERS |
|
$ |
(2,605,348 |
) |
|
$ |
(1,486,253 |
) |
|
|
|
|
|
|
|
NET LOSS PER ORDINARY SHARE
ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD ORDINARY
SHAREHOLDERS: |
|
|
|
|
|
|
Basic and diluted |
|
$ |
(2.68 |
) |
|
$ |
(2.50 |
) |
|
|
|
|
|
|
|
WEIGHTED AVERAGE ORDINARY
SHARES OUTSTANDING: |
|
|
|
|
|
|
Basic and diluted |
|
|
970,721 |
|
|
|
594,901 |
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS: |
|
|
|
|
|
|
NET LOSS |
|
$ |
(2,605,349 |
) |
|
$ |
(1,486,253 |
) |
OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
|
Unrealized foreign currency translation gain |
|
|
261,516 |
|
|
|
1,485,978 |
|
COMPREHENSIVE LOSS |
|
|
(2,343,833 |
) |
|
|
(275 |
) |
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING
INTEREST |
|
|
3 |
|
|
|
23 |
|
COMPREHENSIVE LOSS ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD
ORDINARY SHAREHOLDERS |
|
$ |
(2,343,836 |
) |
|
$ |
(298 |
) |
TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIESUNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(IN U.S. DOLLARS) |
|
|
|
|
|
|
|
|
|
For the Six Months Ended April 30, |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
|
Net loss |
|
$ |
(2,605,349 |
) |
|
$ |
(1,486,253 |
) |
Adjustments to reconcile net
loss to |
|
|
|
|
|
|
net cash provided by operating
activities: |
|
|
|
|
|
|
Depreciation expense and
amortization of intangible assets |
|
|
30,896 |
|
|
|
1,017 |
|
Amortization of right-of-use
assets |
|
|
36,835 |
|
|
|
55,334 |
|
Stock-based compensation and
service expense |
|
|
2,270,015 |
|
|
|
1,068,000 |
|
Bad debt provision |
|
|
18,073 |
|
|
|
25 |
|
Loss on disposal of property
and equipment |
|
|
— |
|
|
|
735 |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
11,423 |
|
|
|
(60,321 |
) |
Security deposit |
|
|
— |
|
|
|
4,402 |
|
Interest receivable |
|
|
(78,000 |
) |
|
|
262,192 |
|
Due from related party |
|
|
— |
|
|
|
1,444 |
|
Other assets |
|
|
397 |
|
|
|
55,340 |
|
Taxes payable |
|
|
(4,086 |
) |
|
|
24,428 |
|
Salary payable |
|
|
91,969 |
|
|
|
204,189 |
|
Accrued liabilities and other
payables |
|
|
518,567 |
|
|
|
(8,959 |
) |
Due to related parties |
|
|
3,611 |
|
|
|
683,003 |
|
Operating lease
liabilities |
|
|
(36,141 |
) |
|
|
(42,993 |
) |
|
|
|
|
|
|
|
NET CASH PROVIDED BY OPERATING
ACTIVITIES |
|
|
258,210 |
|
|
|
761,583 |
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
Proceeds from note
receivable |
|
|
— |
|
|
|
7,500,000 |
|
Cash acquired on
acquisition |
|
|
77,893 |
|
|
|
— |
|
Proceeds from sale of
short-term investments |
|
|
27,336,938 |
|
|
|
27,615,075 |
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY INVESTING
ACTIVITIES |
|
|
27,414,831 |
|
|
|
35,115,075 |
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
|
|
|
Proceeds from related parties'
borrowings |
|
|
93,794 |
|
|
|
— |
|
Repayments of related parties'
borrowings |
|
|
(35,807 |
) |
|
|
— |
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY FINANCING
ACTIVITIES |
|
|
57,987 |
|
|
|
— |
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE ON
CASH AND RESTRICTED CASH |
|
|
(269,071 |
) |
|
|
84,307 |
|
|
|
|
|
|
|
|
NET INCREASE IN CASH AND
RESTRICTED CASH |
|
|
27,461,957 |
|
|
|
35,960,965 |
|
|
|
|
|
|
|
|
CASH AND RESTRICTED CASH -
beginning of period |
|
|
695,075 |
|
|
|
695,242 |
|
|
|
|
|
|
|
|
CASH AND RESTRICTED CASH - end
of period |
|
$ |
28,157,032 |
|
|
$ |
36,656,207 |
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION: |
|
|
|
|
|
|
Cash paid for: |
|
|
|
|
|
|
Interest |
|
$ |
— |
|
|
$ |
— |
|
Income taxes |
|
$ |
1,423 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
NON-CASH INVESTING AND
FINANCING ACTIVITIES |
|
|
|
|
|
|
Reissuance of treasury
stock |
|
$ |
— |
|
|
$ |
25,000 |
|
Payments made by related
parties on the Company's behalf |
|
$ |
75,333 |
|
|
$ |
— |
|
Accrued purchase price related
to acquisition |
|
$ |
1,875,002 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
RECONCILIATION OF CASH AND
RESTRICTED CASH |
|
|
|
|
|
|
Cash at beginning of
period |
|
$ |
2,383 |
|
|
$ |
2,508 |
|
Restricted cash at beginning
of period |
|
|
692,692 |
|
|
|
692,734 |
|
Total cash and restricted cash
at beginning of period |
|
$ |
695,075 |
|
|
$ |
695,242 |
|
|
|
|
|
|
|
|
Cash at end of period |
|
$ |
27,456,502 |
|
|
$ |
35,923,605 |
|
Restricted cash at end of
period |
|
|
700,530 |
|
|
|
732,602 |
|
Total cash and restricted cash
at end of period |
|
$ |
28,157,032 |
|
|
$ |
36,656,207 |
|
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