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

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: ir@cnisun.com

Horizon Research Management Consultancy
Michael Wei
Email: hwey@horizonconsultancy.co


                                                              
            
              NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
                                                                                                CONSOLIDATED BALANCE SHEETS

                                                                                       
            
              (EXPRESSED IN US DOLLARS)




                                                                                                                                                                       December 31,                December 31,
                                                                                                                                                                       2023                 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                                                                                          40,176                 40,063


        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



     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                                                                                            35,499,780                (28,952,923)                  23,857,102


       
                   ACTIVITIES





       
                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                                                                                            19,815,569                  17,837,501                 (25,250,787)


       
                   ACTIVITIES





       
                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                                                                                           (6,747,302)                (8,344,324)                  70,527,541


       
                   ACTIVITIES





       
                EFFECT OF EXCHANGE RATE CHANGE ON CASH AND                                                                                         (1,234,680)                (4,848,722)                     294,928


       
                   CASH EQUIVALENTS



       
                NET (DECREASE) INCREASE IN CASH AND CASH                                                                                            47,333,367                (24,308,468)                  69,428,784


       
                   EQUIVALENTS





       
                CASH AND CASH EQUIVALENTS AND RESTRICTED CASH                                                                                       67,318,573                  91,627,041                   22,198,257


       
                   FROM CONTINUING OPERATIONS-BEGINNING





       
                CASH AND CASH EQUIVALENTS AND RESTRICTED CASH                                                             $
              
                114,651,940     $
     
             67,318,573     $
     
              91,627,041


       
                   FROM CONTINUING OPERATIONS-ENDING





       
                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                                                                                      295,220                   4,070,163
      assets



             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

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SOURCE Nisun International Enterprise Development Group Co., Ltd