BEIJING, Oct. 30, 2021 /PRNewswire/ -- Puhui Wealth Investment Management Co., Ltd. (Nasdaq: PHCF) ("Puhui" or the "Company"), a third-party wealth management service provider with a focus on wealth management services for high net worth ("HNW") individuals and corporate clients, today announced its financial results for the year ended June 30, 2021. The Company also filed these results on Form 20-F with the Securities and Exchange Commission, which can be viewed at www.sec.gov. All amounts in this press release are in USD unless otherwise noted.
Financial and Operating Highlights
Mr. Zhe Ji, the Chairman and CEO of the Company, stated, "While COVID-19 pandemic impacted our business during fiscal year 2021, our team has done an outstanding job providing high quality wealth management service to our high net worth individuals and corporate clients. With the rapid recovery of the COVID-19 pandemic and resumption of business activities in China, our business that has been adversely affected by the pandemic is on the right track to return to normal operations. However, we will continue to monitor the potential impact by any regional resurgence of the pandemic on our business activities. In the meantime, we aim to focus on expanding our wealth and asset management services globally. The acquisition of Granville Financial Services Company Limited ("Granville"), has enriched our existing investment portfolios and allows us to assist our clients with more diversified investment products from international market. Granville is a registered exchange participant of The Stock Exchange of Hong Kong Ltd and a licensed corporation of The Securities and Futures Commission with Type 1 (Dealing in Securities), Type 2 (Dealing in Futures), and Type 9 (Asset Management), Granville's financial qualifications and licenses gives us confidence in our ability to achieve an accelerated business growth."
Mr. Ji continued, "In addition to our expansion strategy, we expect to manage our costs through implementing effective measures. The cost optimization will be an integral aspect of the Company's broad strategy to improve operating efficiency. We aim to continuing to provide high levels of services to our clients and invest in our business to capture the significant opportunities ahead of us. Looking forward, we will strive to increase our product offerings to our clients, create additional revenue sources, gain market share and provide higher returns to our shareholders."
Financial Review for the Fiscal Year Ended June 30, 2021
Wealth Management
Asset Management
Revenues
Cost of Revenues
Operating Expense
Net Loss Attributable to Puhui Wealth
Liquidity and Capital Resources
About Puhui Wealth Investment Management Co., Ltd.
Headquartered in Beijing, China and founded in 2013, Puhui is a third-party wealth management service provider focusing on marketing financial products (including private equity and other diversified products and services) to, and managing funds for, individuals and corporate clients in the PRC. On December 27, 2018, the Company's ordinary shares were listed and began trading listed on the Nasdaq Capital Market (ticker: PHCF).
Additional information about Puhui can be found at the Company's corporate website: www.puhuiwealth.com.
Additional Disclosure Concerning COVID-19
The impacts of COVID-19 on Puhui's business, financial condition, and results of operations include, but are not limited to, the following:
Forward Looking Statement
This news release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate", "believe", "expect", "estimate", "plan", "outlook", and "project" and other similar expressions that indicate future events or trends or are not statements of historical matters. These statements are based on our management's current expectations and beliefs, as well as a number of assumptions concerning future events.
Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of our control and all of which could cause actual results to differ materially from the results discussed in the forward-looking statements. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in our reports filed with the Securities and Exchange Commission, which are available, free of charge, on the SEC's website at www.sec.gov.
For more information, please contact Investor Relations:
Ascent Investor Relations LLC
Tina Xiao
Tel: +1 917-609-0333
Email: tina.xiao@ascent-ir.com
PUHUI WEALTH INVESTMENT MANAGEMENT CO., LTD AND SUBSIDIARIES |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
June 30, |
June 30, |
|||||||
2021 |
2020 |
|||||||
ASSETS |
||||||||
CURRENT ASSETS |
||||||||
Cash |
$ |
581,289 |
$ |
744,436 |
||||
Short-term investments |
394,767 |
515,729 |
||||||
Accounts receivables |
- |
454,411 |
||||||
Accounts receivables - related parties |
222,907 |
1,138,498 |
||||||
Other receivables |
117,848 |
100,302 |
||||||
Other receivables - related parties |
887,955 |
1,284,676 |
||||||
Prepaid expenses |
1,047,712 |
1,122,164 |
||||||
Total current assets |
3,252,478 |
5,360,216 |
||||||
PROPERTY AND EQUIPMENT, NET |
190,895 |
436,325 |
||||||
OTHER ASSETS |
||||||||
Long-term security deposits |
234,819 |
422,783 |
||||||
Right-of-use assets, net |
1,049,069 |
1,285,145 |
||||||
Long-term prepaid expenses |
837,829 |
1,599,647 |
||||||
Deferred tax assets, net |
179,310 |
159,720 |
||||||
Intangible asset, net |
821,012 |
918,787 |
||||||
Goodwill |
1,864,053 |
1,864,053 |
||||||
Total other assets |
4,986,092 |
6,250,135 |
||||||
Total assets |
$ |
8,429,465 |
$ |
12,046,676 |
||||
LIABILITIES AND EQUITY |
||||||||
CURRENT LIABILITIES |
||||||||
Acquisition payable |
$ |
368,439 |
$ |
368,439 |
||||
Deferred revenue |
377,161 |
1,061,162 |
||||||
Other payables and accrued liabilities |
1,133,895 |
630,457 |
||||||
Other payables - related party |
- |
6,334 |
||||||
Operating lease liabilities - current |
508,501 |
841,041 |
||||||
Financing lease liabilities - current |
52,492 |
44,791 |
||||||
Taxes payable |
25,097 |
86,656 |
||||||
Current portion of long-term debt |
1,255,687 |
25,835 |
||||||
Total current liabilities |
3,721,272 |
3,064,715 |
||||||
NON-CURRENT LIABILITIES |
||||||||
Operating lease liabilities - noncurrent |
516,262 |
486,970 |
||||||
Financing lease liabilities - noncurrent |
22,933 |
68,826 |
||||||
Other payable - related parties |
909,382 |
- |
||||||
Long-term debt |
- |
1,145,825 |
||||||
Total non-current liabilities |
1,448,577 |
1,701,621 |
||||||
Total liabilities |
5,169,849 |
4,766,336 |
||||||
COMMITMENTS AND CONTINGENCIES |
||||||||
EQUITY |
||||||||
Preferred shares, $0.001 par value, 1,000,000 shares authorized, 0 shares issued and |
- |
- |
||||||
Ordinary shares, $0.001 par value, 49,000,000 shares authorized, 11,507,558 shares |
11,508 |
11,508 |
||||||
Additional paid-in capital |
21,911,045 |
21,911,045 |
||||||
Accumulated deficit |
(18,321,053) |
(13,267,289) |
||||||
Accumulated other comprehensive loss |
289,443 |
(83,012) |
||||||
Total equity attributable to controlling shareholders |
3,890,943 |
8,572,252 |
||||||
Noncontrolling interest |
(631,327) |
(1,291,912) |
||||||
Total equity |
3,259,616 |
7,280,340 |
||||||
Total liabilities and equity |
$ |
8,429,465 |
$ |
12,046,676 |
PUHUI WEALTH INVESTMENT MANAGEMENT CO., LTD AND SUBSIDIARIES |
||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
||||||||||||
For the Years Ended |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
REVENUES |
||||||||||||
Revenues |
$ |
1,006,000 |
$ |
1,481,980 |
$ |
3,052,371 |
||||||
Revenues - related parties |
1,025,016 |
697,500 |
128,263 |
|||||||||
Total revenues |
2,031,016 |
2,179,480 |
3,180,634 |
|||||||||
OPERATING EXPENSES |
||||||||||||
Cost of revenues |
(260,358) |
(202,637) |
(316,718) |
|||||||||
Selling expenses |
(735,402) |
(1,517,968) |
(2,005,367) |
|||||||||
General and administrative expenses |
(4,962,114) |
(4,977,537) |
(3,427,040) |
|||||||||
Total operating expenses |
(5,957,874) |
(6,698,142) |
(5,749,125) |
|||||||||
LOSS FROM OPERATIONS |
(3,926,858) |
(4,518,662) |
(2,568,491) |
|||||||||
OTHER INCOME (EXPENSES) |
||||||||||||
Interest income |
219 |
74,824 |
62,967 |
|||||||||
Other finance expenses |
(181,276) |
(191,238) |
(206,081) |
|||||||||
Loss from disposal of subsidiaries |
(953,959) |
- |
(32,641) |
|||||||||
Other income (expenses), net |
(67,830) |
126,858 |
33,449 |
|||||||||
Total other income (expenses), net |
(1,202,846) |
10,444 |
(142,306) |
|||||||||
LOSS BEFORE INCOME TAXES |
(5,129,704) |
(4,508,218) |
(2,710,797) |
|||||||||
PROVISION FOR INCOME TAXES |
||||||||||||
Current |
- |
- |
11,803 |
|||||||||
Deferred |
(11,065) |
179,449 |
380,302 |
|||||||||
Total income tax provision |
(11,065) |
179,449 |
392,105 |
|||||||||
NET LOSS |
(5,118,639) |
(4,687,667) |
(3,102,902) |
|||||||||
Less: Net loss attributable to noncontrolling interest |
(382,839) |
(641,719) |
(645,716) |
|||||||||
NET LOSS ATTRIBUTABLE TO PUHUI WEALTH |
$ |
(4,735,800) |
$ |
(4,045,948) |
$ |
(2,457,186) |
||||||
NET LOSS |
$ |
(5,118,639) |
$ |
(4,687,667) |
$ |
(3,102,902) |
||||||
OTHER COMPREHENSIVE INCOME (LOSS) |
||||||||||||
Foreign currency translation adjustment |
408,485 |
159,935 |
(271,194) |
|||||||||
COMPREHENSIVE LOSS |
$ |
(4,710,154) |
$ |
(4,527,732) |
$ |
(3,374,096) |
||||||
Less: Comprehensive loss attributable to noncontrolling interest |
(346,809) |
(650,730) |
(672,272) |
|||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO PUHUI WELATH |
$ |
(4,363,345) |
$ |
(3,877,002) |
$ |
(2,701,824) |
||||||
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES |
||||||||||||
Basic and diluted |
11,507,558 |
11,507,558 |
10,793,017 |
|||||||||
EARNINGS PER SHARE |
||||||||||||
Basic and diluted |
$ |
(0.41) |
$ |
(0.35) |
$ |
(0.23) |
PUHUI WEALTH INVESTMENT MANAGEMENT CO., LTD AND SUBSIDIARIES |
||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||
For the Years Ended |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||
Net loss |
$ |
(5,118,639) |
$ |
(4,687,667) |
$ |
(3,102,902) |
||||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||||||
Depreciation and amortization |
375,947 |
269,812 |
135,939 |
|||||||||
Amortization of operating lease right-of-use assets |
690,749 |
795,912 |
- |
|||||||||
Loss on disposal of property and equipment |
- |
- |
78 |
|||||||||
Impairment loss on equity securities |
- |
- |
5,628 |
|||||||||
Loss from disposal of subsidiaries |
956,371 |
- |
32,641 |
|||||||||
Gain from disposal of marketable securities |
- |
(5,271) |
- |
|||||||||
Loss from equity method investment |
7,513 |
3,547 |
- |
|||||||||
Deferred tax provision (benefits) |
(11,065) |
179,449 |
380,302 |
|||||||||
Change in operating assets and liabilities |
||||||||||||
Accounts receivables |
485,416 |
1,356,454 |
(242,674) |
|||||||||
Accounts receivables - related parties |
998,897 |
(155,986) |
- |
|||||||||
Other receivables |
211,321 |
93,383 |
(402,174) |
|||||||||
Prepaid expenses |
102,575 |
60,961 |
(932,928) |
|||||||||
Long-term prepaid expenses |
771,510 |
644,554 |
(2,248,912) |
|||||||||
Accounts payable |
- |
(1,413) |
- |
|||||||||
Deferred revenue |
(765,922) |
847,265 |
(298,954) |
|||||||||
Other payables and accrued liabilities |
453,020 |
41,609 |
156,724 |
|||||||||
Other payables - related parties |
- |
6,384 |
(190,666) |
|||||||||
Operating lease liabilities |
(760,233) |
(752,682) |
- |
|||||||||
Taxes payable |
(68,106) |
165,353 |
(426,597) |
|||||||||
Net cash used in operating activities |
(1,670,646) |
(1,138,336) |
(7,134,495) |
|||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||||
Proceeds from sales of short-term investments |
150,900 |
178,237 |
365,462 |
|||||||||
Purchases of short-term investments |
- |
(1,425) |
(24,347) |
|||||||||
Loans receivable to related party |
- |
- |
(1,661,514) |
|||||||||
Repayment from related parties |
506,779 |
318,194 |
- |
|||||||||
Acquisition prepayment |
- |
- |
(2,042,460) |
|||||||||
Purchases of property and equipment |
- |
(288,372) |
(159,514) |
|||||||||
Proceeds from sale of property and equipment |
- |
- |
990 |
|||||||||
Cash acquired from Granville, net of purchase price paid |
- |
125,365 |
- |
|||||||||
Purchase of intangible asset |
- |
- |
(12,644) |
|||||||||
Net cash provided by (used in) investing activities |
657,679 |
331,999 |
(3,534,027) |
|||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||||
Proceeds from issuance of ordinary shares through IPO, net |
- |
- |
8,032,912 |
|||||||||
Payments of financing lease liabilities |
(47,847) |
(24,984) |
- |
|||||||||
Principal payments of long-term debt |
(27,598) |
(309,450) |
- |
|||||||||
Proceeds from other payable related parties |
884,290 |
- |
- |
|||||||||
Net cash provided by (used in) financing activities |
808,845 |
(334,434) |
8,032,912 |
|||||||||
EFFECT OF EXCHANGE RATE ON CASH |
40,975 |
(119,418) |
(168,805) |
|||||||||
DECREASE IN CASH |
(163,147) |
(1,260,189) |
(2,804,415) |
|||||||||
CASH, beginning of year |
744,436 |
2,004,625 |
4,809,040 |
|||||||||
CASH, end of year |
$ |
581,289 |
$ |
744,436 |
$ |
2,004,625 |
||||||
SUPPLEMENTAL CASH FLOW INFORMATION: |
||||||||||||
Cash paid for income tax |
$ |
- |
$ |
- |
$ |
240,508 |
||||||
Cash paid for interest |
$ |
- |
$ |
192,312 |
$ |
197,999 |
||||||
NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES |
||||||||||||
Prepaid IPO costs to be net against IPO proceeds |
$ |
- |
$ |
- |
$ |
733,478 |
||||||
Initial recognition of right-of-use assets and lease liabilities, net of |
$ |
340,518 |
$ |
2,091,977 |
$ |
- |
||||||
Acquisition of Granville offset with prepayment |
$ |
- |
$ |
2,447,259 |
$ |
- |
||||||
Acquisition of Granville with payables |
$ |
- |
$ |
368,439 |
$ |
|||||||
Purchase of fixed asset with financing lease |
$ |
- |
$ |
139,566 |
$ |
- |
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