Nisun International Reports Financial Results for Fiscal Year 2023: Nisun Achieves 65% Revenue Growth and Ends the Year with $29.0 Cash Per Share

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Nisun International Enterprise Development Group Co., Ltd

Jul 12, 2024, 09:25 ET

SHANGHAI, July 12, 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 financial results for the fiscal year ended December 31, 2023.

Financial Highlights:

Revenue: Total revenue for the year was $386.7 million, representing a 65% increase compared to $234.2 million in 2022.
Gross Profit: Gross profit increased to $40.0 million from $37.0 million in the previous year.
Net Income: Net income for 2023 was $17.7 million.
Cash and Cash Equivalents: The Company ended the year with $114.5 million in cash and cash equivalents.
Earnings per Share (EPS): The Company reported earnings of $4.46 per share, with a cash per share value of $29.0.

CEO's Comments:

Xin Liu, CEO of Nisun International, commented, "We are thrilled to report another year of outstanding financial performance, underscoring the success of our strategic initiatives and operational excellence. Our revenue growth of 65% is a testament to our robust supply chain solutions. We have made significant strides in expanding our supply chain capabilities, diversifying into other agricultural products. These efforts have positioned us well for sustained growth and profitability."

Mr. Liu continued, "Despite our strong financial performance, substantial cash reserves of $29.0 per share, and robust earnings, our stock trades at just over one times annual earnings by the end of June. We believe this significantly undervalues our company. The Board of Directors and I are actively considering strategic alternatives to unlock shareholder value and better align our market valuation with the intrinsic value of our company. Our strong cash position and ongoing growth initiatives provide a solid foundation for these efforts."

Operational Highlights:

Supply Chain Trading and Solutions: Nisun International continues to enhance its supply chain trading and financing solutions capabilities, leveraging state-of-the-art technology to streamline operations and reduce costs. The Company successfully managed the daily supply of 3.6 to 6 million eggs to major online platforms across key regions.
Geographical Expansion: The Company's supply chain operations now span multiple regions, enabling delivery of a diverse range of products. This extensive network ensures seamless operations and strengthens Nisun's market presence.
Diversification: Nisun has expanded its supply chain solutions to include other agricultural products, positioning the Company for substantial growth in the agricultural sector.

Looking Ahead:

Mr. Liu added, "Our commitment to innovation and excellence remains unwavering as we continue to drive growth and create value for our shareholders. The strategic expansion of our supply chain solution will enable us to meet the evolving needs of our customers and capitalize on new market opportunities. We are excited about the future and confident in our ability to achieve even greater success."

Investor Relations:

For more information, please visit the Investor Relations section of Nisun International's website at: www.nisun-international.com.

About Nisun International:

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. 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.

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 within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. 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.

For more information, please contact:

Nisun International Enterprise Development Group Co., Ltd

Investor Relations
Tel: +86 (21) 2357-0055
Email: [email protected]

Horizon Research Management Consultancy
Michael Wei
Email: [email protected]

NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (EXPRESSED IN US DOLLARS)

	December 31, 2023		December 31, 2022

ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	114,454,844	$	63,901,329
Restricted cash		197,096		3,417,244
Short-term investments		12,788,629		11,700,400
Accounts receivable, net		21,120,795		18,931,346
Advance to suppliers, net		38,602,304		46,968,549
Receivables from supply chain solutions		59,167,029		43,475,981
Inventories		30,953,583		31,609,877
Prepaid expenses and other current assets		16,018,778		10,890,083
TOTAL CURRENT ASSETS		293,303,058		230,894,809

NON-CURRENT ASSETS:
Property and equipment, net		881,276		719,574
Intangible assets, net		882,828		1,795,234
Right-of-use assets, net		2,384,590		3,349,432
Equity investments		368,528		373,292
Investment in limited partnership		-		14,913,539
Goodwill		17,659,983		23,814,005
Deferred tax assets, net		418,571		310,577
Long term investment		-		7,249,319
TOTAL NON-CURRENT ASSETS		22,595,776		52,524,972
TOTAL ASSETS	$	315,898,834	$	283,419,781

LIABILITIES
CURRENT LIABILITIES:
Accounts payable	$	45,463,753	$	40,925,155
Short-term bank loans		1,971,859		434,959
Accrued expenses and other current liabilities		7,245,358		6,090,582
Operating lease liabilities - current		861,087		1,008,766
Payables to supply chain solutions		12,947,708		9,122,978
Advances from customers		38,153,915		21,827,387
Taxes payable		4,145,920		2,748,474
Loan from related party		-		8,028,965
Liabilities of financial guarantee		22,335		-
Due to related parties - current		274,652		282,724
TOTAL CURRENT LIABILITIES		111,086,587		90,469,990

Operating lease liabilities – non-current		1,643,076		2,425,597
Deferred tax liabilities		114,650		727,326
TOTAL NON-CURRENT LIABILITIES		1,757,726		3,152,923
TOTAL LIABILITIES		112,844,313		93,622,913

*SHAREHOLDERS' EQUITY:**
Class A common stock, $0.01 par value, 30,000,000 and 30,000,000 shares authorized, 4,017,596 and 4,006,263 shares issued, and 3,952,198 and 3,944,075 shares outstanding as of December 31, 2023 and 2022, respectively		40,176		40,063
Class B common stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding as of December 31, 2023 and 2022		-		-
Treasury shares		(261,592)		(355,844)
Additional paid-in capital		130,535,082		130,503,387
Retained earnings		68,395,637		53,214,304
Statutory reserves		11,564,250		9,167,845
Accumulated other comprehensive loss		(11,474,682)		(6,937,950)
COMMON SHAREHOLDERS' EQUITY		198,798,871		185,631,805
Non-controlling interests		4,255,650		4,165,063
TOTAL SHAREHOLDERS' EQUITY		203,054,521		189,796,868
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	315,898,834	$	283,419,781

* 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 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (EXPRESSED IN US DOLLARS)

	For the Year Ended December 31,
	2023		2022		2021

REVENUES:
Revenue generated from services:
Small and Medium Enterprise financing solutions	$	101,823,899	$	87,269,959	$	87,133,963
Supply Chain financing solutions		6,153,645		3,542,592		4,930,289
Other financing solutions		-		-		3,222
Total revenue generated from services		107,977,544		90,812,551		92,067,474
Revenue generated from sales:
Supply chain trading business		278,693,355		143,361,714		68,132,237
Total revenues		386,670,899		234,174,265		160,199,711

COST OF REVENUE:
Cost of revenue - services		(68,154,833)		(55,472,076)		(37,989,001)
Cost of revenue - sales		(278,002,800)		(140,880,063)		(67,628,806)
Business and sales related taxes		(527,336)		(772,830)		(533,760)
GROSS PROFIT		39,985,930		37,049,296		54,048,144

OPERATING EXPENSES:
Selling expenses		(1,525,692)		(1,977,617)		(2,323,403)
General and administrative expenses		(10,859,011)		(10,511,542)		(11,641,567)
Research and development expenses		(1,093,457)		(1,563,718)		(1,599,728)
Bad debt expense		(2,215,016)		(4,509,634)		(294,536)
Goodwill Impairment Loss		(5,488,816)		(777,329)		-
Total operating expenses		(21,181,992)		(19,339,840)		(15,859,234)
INCOME FROM OPERATIONS		18,803,938		17,709,456		38,188,910

OTHER INCOME :
Interest and investment income		2,557,588		2,790,768		2,122,903
Other income , net		2,159,301		2,021,688		464,210
Total other income, net		4,716,889		4,812,456		2,587,113

INCOME BEFORE PROVISION FOR INCOME TAXES		23,520,827		22,521,912		40,776,023

PROVISION FOR INCOME TAXES		(5,817,147)		(4,741,854)		(10,269,501)

NET INCOME		17,703,680		17,780,058		30,506,522
Net income attributable to non-controlling interests		(125,942)		(159,246)		(126,161)
NET INCOME - Nisun International's shareholders	$	17,577,738	$	17,620,812	$	30,380,361

OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation (loss) income		(4,536,797)		(12,576,380)		2,039,011
COMPREHENSIVE INCOME		13,040,941		5,044,432		32,419,372
Comprehensive loss attributable to non-controlling interests		65		6,231		2,051
COMPREHENSIVE INCOME	$	13,041,006	$	5,050,663	$	32,421,423

BASIC AND DILUTED EARNINGS PER COMMON SHARE:
NET EARNINGS PER COMMON SHARE	$	4.46	$	4.42	$	14.13

Weighted average number of shares outstanding-basic and diluted*		3,943,793		3,986,359		2,150,683

* 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 STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 and 2021 (EXPRESSED IN US DOLLARS)

	2023		2022		2021

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	17,703,680	$	17,780,058	$	30,506,522
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		2,238,222		2,113,732		2,180,038
Stock-based compensation		-		125,630		498,825
Shares issued for compensation		31,808		185,000		71,175
Bad debt expense		2,215,016		4,509,634		294,536
Impairment of goodwill		5,488,816		777,329		-
Loss on disposition of property and equipment		-		1,385		190,301
Income from investments		(365,359)		(541,578)		(808,464)
Deferred tax (benefit) expense		(710,672)		271,907		275,749
Changes in operating assets and liabilities:
Accounts receivable		(3,086,600)		(2,075,274)		(13,294,924)
Advance to suppliers, net		7,282,068		(39,859,386)		(9,213,279)
Prepaid expenses and other current assets		(5,511,142)		(4,734,501)		(3,464,939)
Receivables from supply chain solutions		(18,651,357)		11,372,841		(48,202,128)
Inventories		(246,818)		(25,530,993)		(3,931,400)
Accounts payable		5,722,300		7,693,011		33,620,611
Advance from customers		16,986,750		19,085,377		3,375,769
Taxes payable		1,478,316		(5,574,048)		5,575,502
Other payables		3,232,387		-		2,576,570
Payable to supply chain solutions		4,096,141		(15,198,883)		25,608,622
Operating lease liabilities		(834,381)		(855,242)		(952,495)
Accrued expenses and other current liabilities		(1,569,395)		1,501,078		(1,049,489)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES		35,499,780		(28,952,923)		23,857,102

CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment		(503,957)		(652,585)		(186,705)
Purchase of intangible assets		(44,029)		(74,710)		(18,281)
Cash (paid) received in connection with Nami acquisition		-		-		(7,007,905)
Cash paid in connection with acquisition, net of cash received		-		(530,322)		-
Cash received on disposal of discontinued operations		-		-		14,950,730
Proceeds from sale of short-term investments		103,458,984		78,595,280		4,894,270
Proceeds from sale of Long-term investment		7,061,233		-		-
Proceeds from investment in debt securities		14,366,013		-		-
Purchase of short-term investments		(104,365,028)		(51,567,746)		(39,526,099)
Purchase of Long-term investments		-		(7,430,511)		-
Collection of loans to third parties		-		-		1,643,203
Proceeds from disposal of subsidiary		71,514		-		-
Loans to third parties		(229,161)		(501,905)		-
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		19,815,569		17,837,501		(25,250,787)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term bank loans		1,553,471		445,831		784,609
Proceeds from issuance of common shares and pre-funded warrants		-		-		70,794,465
Proceeds from third-party loans		1,977,145		36,770,626		-
Repayment of short-term bank loans		(29,961)		(1,239,983)		-
Repayment of third-party loans		(2,277,954)		(41,491,973)		-
Repayment to related parties		-		(10,097)		(1,803,374)
Repayment of loan from related parties		(8,028,965)		(2,500,000)		-
Purchase of treasury shares		94,252		(355,844)		-
Capital contribution from non-controlling interest		(35,290)		37,116		751,841
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(6,747,302)		(8,344,324)		70,527,541

EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS		(1,234,680)		(4,848,722)		294,928
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		47,333,367		(24,308,468)		69,428,784

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH FROM CONTINUING OPERATIONS-BEGINNING		67,318,573		91,627,041		22,198,257

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH FROM CONTINUING OPERATIONS-ENDING	$	114,651,940	$	67,318,573	$	91,627,041

SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid for income taxes	$	4,530,963	$	10,385,495	$	5,546,082
Cash paid for interest	$	29,961	$	496,932	$	370,356

SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Repayment payable for business disposition		279,037		-		-
Receivable from disposal of subsidiary	$	-	$	289,973	$	-
Lease liabilities arising from obtaining right-of-use assets		295,220		4,070,163		-
Issuance of shares for share-based compensation	$	-	$	-	$	71,175

CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS ARE COMPRISED OF THE FOLLOWING:
Cash and cash equivalents	$	114,454,844	$	63,901,329	$	91,447,620
Restricted cash		197,096		3,417,244		179,421
Total cash, cash equivalents and restricted cash	$	114,651,940	$	67,318,573	$	91,627,041