omniture

Roan Holdings Group Co., Ltd. Reports 2021 Financial Year Results

2022-04-23 04:14 5769

BEIJING and HANGZHOU, China, April 23, 2022 /PRNewswire/ -- Roan Holdings Group Co., Ltd. ("Roan" or the "Company") (OTC Pink Sheets: RAHGF and RONWF), a comprehensive solution provider for industrial operation and capital market services, today reported its financial results for the fiscal year ended December 31, 2021. All amounts are in U.S. dollars.

Fiscal year 2021 Highlights:

  • Net income increased to $0.76 million for the year ended December 31, 2021 from a net loss of $0.85 million for the year ended December 31, 2020.
  • Net earnings per share increased to $0.01 for the year ended December 31, 2021 from a net loss per share of $0.07 for the year ended December 31, 2020.
  • Net commission and fees on financial guarantee services was $0.40 million for the year ended December 31, 2021, as compared to $0.29 million for fiscal year 2020, reflecting an increase of 37.93% for business development.
  • Operating expenses in total decreased by $0.81 million, to $3.30 million for year ended December 31, 2021 compared to $4.11 million for the year ended December 31, 2020. The decreases were primarily the result of the Company's cost control strategies.

For fiscal years ended December 31

($ millions, except per share data, differences
due to rounding)

2021


2020



Change

Net revenues of services

$0.79


$2.13


(62.91%)

Net commission and fees on financial guarantee
services

$0.40


$0.29


37.93%

Total interest and fees income

$2.41


$2.48


(2.82%)

Operating income

$3.61


$4.90


(26.33%)

Net income

$0.76


($0.85)


N/A

Net earnings per share – Basic and Diluted

$0.01


($0.07)


N/A

Mr. Junfeng Wang, Chairman of the Board commented, "We are pleased to conclude fiscal year 2021 with sound financial performance. Although the external environment is full of challenges, through our service and extensive cooperation experience and resources accumulated over the past 10 years and with more than 500 customers and partners in various industries, the Company further optimized its strategic planning and business layout in 2021, and is in process of reforming operation structure, optimization of management team, integration of market resources, establishment of new business entities, and upgrading of our business services and products to meet Roan's future development needs. As a result, the Company not only achieved substantial improvement in financial performance in 2021, but also turned from a net loss of $0.85 million in fiscal year 2020 to a net profit of $0.76 million in fiscal year 2021. At the same time, Roan has successfully expanded its business into the field of new energy, new materials, and semiconductor related industries, and we obtained our first $0.14 million industrial operation service fee income."

"In the future, through our strategic business layout in industrial operation and capital market services, the Company plans to obtain long-term operation rights for new-generation technologies, products, and services in the fields of new energy, new materials, semiconductors, culture, tourism, and health so as to position ourselves to generate income from our services and products in order to share further the upward trend of these industries," Mr Wang said.

Mr. Wenhao Wang, Chief Financial Officer of Roan, commented: "In 2021, in line with our expectations, we became profitable, turning around from last year's losses. We grew our annual net income by $1.61 million to $0.76 million. We boosted our business development by upgrading our business ecosystem, and we applied cost-efficient strategies that helped us save $0.81 million in operating expenses for the past year. We also have a positive working capital balance of $51.94 million as of December 31, 2021, which makes us believe that the efforts we put in place and the strategic development we are taking will bring us significant improvements to profitability, creating long-term value for our shareholders."

Fiscal Year 2021 Financial Results

Services Revenues

The following table sets forth a breakdown of our revenue by services offered for the years ended December 31, 2021 and 2020:

($ millions, differences due to rounding) 


For the years
ended December
31,


Variance



2021



2020


Amount



%

Management and assessment service


$

0.44



$

0.02


$

0.42




2100%

Consulting services relating to debt collection



0.21




2.11



(1.90)




(90.05)%

Industrial operation services



0.14




-



0.14




100.00%

Revenues from services


$

0.79



$

2.13


$

(1.34)




(62.91)%

  • Management and assessment services

Revenue from management and assessment services was $0.44 million ended December 31, 2021, which was increased 0.42 million or 2100% compared with $0.02 million for the year ended December 31, 2020. The increase was caused by the new contracts of management and assessment services brought significant revenue and cashflow to the Company.

  • Consulting services relating to debt collection

Revenue from consulting services relating to debt collection was $0.21 million for the year ended December 31, 2021, a decrease of $1.90 million, or 90.05%, as compared to $2.11 million for the year ended December 31, 2020, which was mainly due to the negative impact of the COVID pandemic. We had less contracts for debt collection service during the year ended December 31, 2021.

  • Industrial operation services

On December 31, 2021, Hangzhou Zeshi investment partnership ("Zeshi investment"), a wholly-owned subsidiary of the Company, entered into an agreement with ZhongTan Future New Energy Industry Development (Zhejiang) Co., Ltd. ("ZhongTan"). Revenue of $0.14 million was recognized during the year ended December 31, 2021 after the target customer was located, due diligence and initial negotiation was completed, and requirements of ZhongTan were met.

Revenue for commission and fees on financial guarantee services
Commission and fees on financial guarantee services was $0.46 million for the year ended December 31, 2021, an increase of $0.08 million, or 21.05% as compared to $0.38 million for fiscal year 2020, reflecting an increase for business development.
The provisions for financial guarantee services are related to financial guarantee service business as per the requirement of local government. Provisions for financial guarantee services was $0.06 million for the year ended December 31, 2021, as compared to $0.09 million for last fiscal year.

Interest and fee income
Interest and fee income primarily consisted of interest and fee income generated from loans due from third parties. Interest and fee income was $2.41 million, a decrease of $0.07 million, or 2.82% for the year ended December 31, 2021 as compared to $2.48 million for fiscal year 2020. The decrease was mainly due to a decrease of $0.02 million in interest income from loans due from third parties and a decrease of $0.05 million in interest income on provision deposits with banks.

Operating expenses
Operating expenses in total decreased by $0.81 million, or 19.70% to $3.30 million for year ended December 31, 2021 compared to $4.11 million for the year ended December 31, 2020. The decreases in these expenses were primarily the result of our cost control strategies.  

Net income
As a result of the foregoing, we had a net income of $0.76 million for the year ended December 31, 2021, as compared to a net loss of $0.85 million for the year ended December 31, 2020

Cash and cash equivalents
Cash and cash equivalents were $1.95 million as of December 31, 2021, reflecting a decrease of $2.98 million from $4.93 million as at December 31, 2020, primarily because of the repayment of bank loan of $2.94 million during the year ended December 31, 2021.

Working capital
Our working capital was $51.94 million as of December 31, 2021.

Recent developments

On February 28, 2022, the Company signed a five-year industrial operation cooperation agreement with Jiushang (Hangzhou) Semiconductor Technology Co., Ltd. ("Jiushang"). The Company will provide Jiushang with financing and operation services, and cooperate in the transformation and industrialization of Jiushang semiconductor's new technological achievements in the Chinese market.

On December 16, 2021, Hangzhou Zeshi invested RMB 2 million (approximately $0.31 million) in Medium Carbon Future New Energy Industry Development (Zhejiang) Co., Ltd. ("Medium Carbon"), and held 2% its equity. Future New Energy invested RMB 20 million (approximately $3.10 million) and held 20% its equity. The registered capital of Medium Carbon is RMB 100 million (approximately $15.49 million).

On November 24, 2021, Hangzhou Zeshi, a wholly owned subsidiary of the Company invested RMB100,000 (approximately $0.02 million) in Hangzhou Future New Energy Enterprise Management Partnership (Limited Partnership) ("Future New Energy") and held 1% of the equity of Future New Energy. The registered capital of Future New Energy is RMB 10 million (approximately $1.55 million).

About Roan Holdings Group Co., Ltd.

Founded in 2009, Roan Holdings Group Co., Ltd. (OTC Pink: RAHGF and RONWF) is a comprehensive solution provider for industrial operation and capital market services. Adhering to the platform strategy of "cross collaboration, technology empowerment, sustainability and stability, and combination of operation and finance resources", the Company's services focus on the  new energy, new materials, and semiconductor industries. At the same time, the Company focuses on the application of innovative technologies in the consumer industry with respect to financial consumption, cultural and tourism consumption, and great health ecosysystem. Roan aims to provide comprehensive solutions and supporting services for diversified institutuional and local government clients across the entire industry chain. Roan has offices in Hangzhou and Beijing and subsidiaries in Hangzhou, Ningbo, Shaoxing and Tianjin. For more information, please visit: www.roanholdingsgroup.com.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of 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. These forward-looking statements relate to, among others, the consummation of the proposed transaction, and can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Such statements are based upon management's current expectations of the consummation of the proposed transaction, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control. Further information regarding these and other risks, uncertainties or factors are included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

IR Contact:
At the Company:
Katrina Wu
Email: xiaoqing.wu@roanholdingsgroup.com
Phone: +86-571-8662 1775

Investor Relations Firm:
Janice Wang
EverGreen Consulting Inc.
Email: IR@changqingconsulting.com
Phone: +1 571-464-9470 (from U.S.)
+86 13811768559 (from China)

 

ROAN HOLDINGS GROUP CO., LTD.

CONSOLIDATED BALANCE SHEETS

As of December 31, 2021 and 2020

(Expressed in U.S. dollar, except for the number of shares)

















December 31,
2021



December 31,
2020









  ASSETS







Cash and cash equivalents


$

1,947,142



$

4,932,048


Restricted cash



29,693,689




25,875,556


Accounts receivable, net



6,929,529




6,939,352


Inventories



33,598




30,348


Loan receivables due from third parties, net



23,751,471




17,670,652


Due from related parties



5,941




94,023


Other current assets



70,910




3,502,550


Other receivables, net



656,835




3,545,753


   Total current assets



63,089,115




62,590,282











Pledged deposits



48,752




462,835


Property and equipment, net



77,073




65,073


Intangible assets, net



3,123,394




3,977,867


Right of use assets



37,313




346,017


Goodwill



267,331




261,087


   Total non-current assets



3,553,863




5,112,879











   Total Assets


$

66,642,978



$

67,703,161











LIABILITIES









Customer pledged deposits


$

7,846



$

7,664


Unearned income



72,523




130,772


Reserve for financial guarantee losses



651,341




579,364


Dividends payable



480,000




480,000


Tax payable



2,614,257




1,767,214


Due to related parties



123,117




281,369


Warrant liabilities



16,998




13,977


Operating lease liabilities, current portion



65,498




191,643


Accrued expenses and other liabilities



1,155,903




1,642,060


Bank loans



5,961,460




8,826,054


Total current liabilities



11,148,943




13,920,117











Operating lease liabilities, noncurrent portion



-




102,767


Deferred tax liabilities



544,355




793,848


Total non-current Liabilities



544,355




896,615











Total Liabilities


$

11,693,298



$

14,816,732











Commitments and Contingencies



-




-











Shareholders' Equity









Ordinary Share, no par value, unlimited shares authorized; 25,287,851 and
   25,287,851 shares issued and outstanding as of December 31, 2021 and December 
   31, 2020, respectively



-




-


Class A convertible preferred shares, no par value, unlimited shares authorized; 
   715,000 and 715,000 shares issued and outstanding as of December 31, 2021 and
   December 31, 2020, respectively


$

11,711,727



$

11,025,327


Class B convertible preferred shares, no par value, unlimited shares authorized; 
   291,795,150 and 291,795,150 shares issued and outstanding as of December 31, 2021 and 
   December 31, 2020, respectively



31,087,732




31,087,732


Additional paid-in capital



3,312,189




3,312,189


Statutory reserve



362,797




202,592


Accumulated deficit



(14,805,802)




(14,330,288)


Accumulated other comprehensive income



3,128,086




2,310,369


Total Roan Holdings Group Co., Ltd.'s Shareholders' Equity


$

34,796,729



$

33,607,921











Noncontrolling interests



20,152,951




19,278,508


Total Equity



54,949,680




52,886,429


Total Liabilities and Equity


$

66,642,978



$

67,703,161


 

 

 

ROAN HOLDINGS GROUP CO., LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Years Ended December 31, 2021, 2020 and 2019

(Expressed in U.S. dollar, except for the number of shares)











For the Years Ended
December 31,




2021



2020



2019












Revenues from services


$

793,291



$

2,128,153



$

639,220


Revenues from healthcare service packages



-




55,301




-


Cost of revenues



-




(50,774)




(8,080)


Net revenues of services



793,291




2,132,680




631,140















Commissions and fees on financial guarantee services



456,944




375,471




8,797


Provision for financial guarantee services



(57,417)




(89,865)




(5,008)


Commission and fee income on guarantee services, net



399,527




285,606




3,789















Interest and fees income













Interest and fees on direct loans



-




-




1,153


Interest income on loans due from third parties



2,113,918




2,131,447




34,707


Interest income from factoring business



-




-




2,782,332


Interest income on deposits with banks



300,749




348,389




64,636


Total interest and fee income



2,414,667




2,479,836




2,882,828















Interest expense













Interest expenses and fees on secured loans



-




-




(2,218,815)















Net interest income



2,414,667




2,479,836




664,013















Provision for loan losses



-




-




(2,244,601)















Net interest income (loss) after provision for loan losses



2,414,667




2,479,836




(1,580,588)















Operating income (loss)



3,607,485




4,898,122




(945,659)















Total operating expenses













Salaries and employee surcharges



(1,054,509)




(1,116,482)




(512,314)


Other operating expenses



(2,241,069)




(2,995,098)




(1,385,259)


Changes in fair value of warrant liabilities



(3,021)




5,961




530,863


Total operating expenses



(3,298,599)




(4,105,619)




(1,366,710)















Other income (expenses)













Deconsolidation gain (loss)



490,283




(1,953,248)




-


Interest income (expenses), net



(267,184)




-




-


Other income (expense), net



554,167




76,406




-


Total other income (expenses)



777,266




(1,876,842)




-















Income (Loss) before income taxes



1,086,152




(1,084,339)




(2,312,369)















Income tax (expenses) recovery



(328,851)




229,733




(244,741)















Net income (loss) from continuing operations



757,301




(854,606)




(2,557,110)















Net income from discontinued operations, net of income tax



-




-




26,846,018















Net income (loss)



757,301




(854,606)




24,288,908


Dividend – convertible redeemable Class A preferred share



-




-




(686,400)


Net income attributable to noncontrolling interests



(386,210)




(838,048)




(76,108)


Net income (loss) attributable to Roan Holding Group Co., Ltd.'s
shareholders


$

371,091



$

(1,692,654)



$

23,526,400


Other comprehensive (loss) income













Foreign currency translation adjustment



1,308,444




3,461,980




1,435,262


Reclassified to net gain from discontinued operations



-




-




2,691,969





1,308,444




3,461,980




4,127,231















Comprehensive income



2,065,745




2,607,374




28,416,139















Other comprehensive income attributable to noncontrolling interests



(488,233)




(1,334,101)




(97,733)


Dividend – convertible redeemable Class A preferred share



-




-




(686,400)


Net income attributable to noncontrolling interests



(386,210)




(838,048)




(76,108)


Total comprehensive income attributable to Roan Holdings Group 
    Co., Ltd.'s shareholders


$

1,191,302



$

435,226



$

27,555,898















Weighted average number of ordinary share outstanding













Basic and Diluted*



25,287,887




25,287,887




25,287,887















Earnings (Loss) per share













Net earnings (loss) per share – Basic and Diluted


$

0.01



$

(0.07)



$

0.93


Net earnings (loss) per share from continuing operations - Basic and
Diluted


$

0.01



$

(0.07)



$

(0.13)


Net earnings per share from discontinued operations - Basic and Diluted


$

-



$

-



$

1.06


 

 

 

ROAN HOLDINGS GROUP CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2021, 2020 and 2019

(Expressed in U.S. dollar, except for the number of shares)











For the Years Ended
December 31,




2021



2020



2019


Cash Flows from Operating Activities:










Net income (loss)


$

757,301



$

(854,606)



$

24,288,908


Less: Net loss from discontinued operations



-




-




26,846,018


Net loss from continuing operations



757,301




(854,606)




(2,557,110)


Adjustments to reconcile net income to net cash used in operating
activities:













Depreciation and amortization expenses



1,134,738




1,102,298




55,498


Provision for credit losses



48,518




316,014




-


Provision for loan losses



-




-




2,244,601


Provision for financial guarantee losses



57,417




89,865




5,008


Deferred tax expenses



(265,421)




(1,001,372)




57,674


Changes in fair value of warrant liabilities



3,021




(5,961)




(530,863)


Net gain from disposal of fixed assets



(33,246)




(136,682)




-


Gain from lease modification



(603)




22,257




-


Accretion of finance leases



7,605




14,757




-


Gain (loss) from deconsolidation of subsidiaries



(490,283)




1,953,248




-


Changes in operating assets and liabilities:













Accounts receivable



(7,495)




(3,116,533)




(206,442)


Inventory



(3,250)




(30,348)




-


Interest and fees receivable



-




-




(149,013)


Other current assets



3,431,640




(3,215,702)




(289,694)


Other receivables



2,425,003




(3,268,571)




-


Pledged deposits and other non-current assets



414,265




359,202




-


Advances from customers



(58,249)




7,915




(6,702)


Tax payable



847,043




1,029,919




273,589


Accrued expenses and other liabilities



449,971




(727,211)




28,875


Net Cash Provided by (Used in) Operating Activities from 
Continuing Operations



8,717,975




(7,461,511)




(1,074,579)


Net Cash Used in Operating Activities from Discontinued 
Operations



-




-




(26,564)


Net Cash Provided by (Used in) Operating Activities



8,717,975




(7,461,511)




(1,101,143)















Cash Flows from Investing Activities:













Repayment of loans from factoring customers



-




-




107,833,488


Proceeds of loans from third parties



20,499,442




-




-


Loans disbursement to third parties



(26,100,286)




(3,467,607)




-


Loans disbursement to factoring customers



-




-




(43,422,881)


Purchases of property and equipment



(54,569)




-




(833)


Acquisition of a subsidiary



-




-




(427,318)


Acquisition of cash from acquired subsidiary



-




-




21,442,122


Proceeds from disposal of discontinued operations



-




-




504,713


Net inflow related to deconsolidation of subsidiaries



788




61,121




-


Redemption of short-term investment



-




8,690,374




-


Due to (from) related party



(70,169)




210,774




-


Proceeds from sale of property and equipment



40,305




837,969




-


Net Cash (Used in) Provided by Investing Activities from Continuing 
Operations



(5,684,489)




6,332,631




85,929,291


Net Cash Provided by Investing Activities from Discontinued

Operations



-




-




35,765


Net Cash (Used in) Provided by Investing Activities



(5,684,489)




6,332,631




85,965,056















Cash Flows from Financing Activities:













Borrowing from a related party



-




-




279,020


Proceeds from bank loans



5,889,179




8,341,311




-


Repayment of bank loans



(8,927,555)




-




-


Proceeds from secured loans



-




-




43,422,881


Repayment of secured loans



-




-




(107,833,488)


Repayment of third-party loans



-




(280,268)




-


Repayment of lease liabilities



(76,102)




(207,891)




-


Net Cash (Used in) Provided by Financing Activities from 
Continuing Operations



(3,114,478)




7,853,152




(64,131,587)


Net Cash Used in Financing Activities from Discontinued
Operations



-




-




(7,251)


Net Cash (Used in) Provided by Financing Activities



(3,114,478)




7,853,152




(64,138,838)




























Effect of exchange rate changes on cash, cash equivalents, and restricted
   cash in banks



914,219




1,937,807




119,326















Net increase in cash, cash equivalents, and restricted cash in banks



833,227




8,662,079




20,844,401


Cash, cash equivalents, and restricted cash in banks at beginning of year



30,807,604




22,145,525




1,301,124


Cash, cash equivalents, and restricted cash in banks at end of year


$

31,640,831



$

30,807,604



$

22,145,525















Supplemental Cash Flow Information













Cash paid for interest expense


$

269,400



$

-



$

-


Cash paid for income tax


$

-



$

-



$

-















Noncash investing activities













Acquisition of a subsidiary by issuance of Class B Preferred Shares


$

-



$

-



$

31,087,732


Receivable from disposal of discontinued operations


$

-



$

-



$

940,829


Right of use assets obtained in exchange for operating lease obligations


$

-



$

-



$

615,000













The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the
statement of financial position that sum to the total of the same amounts shown in the consolidated statements of cash
flows:


















December 31,
2021



December 31,
2020


Cash and cash equivalents






$

1,947,142



$

4,932,048


Restricted cash in banks







29,693,689




25,875,556


Total cash, cash equivalents and restricted cash






$

31,640,831



$

30,807,604


 

 

 

Cision View original content:https://www.prnewswire.com/news-releases/roan-holdings-group-co-ltd-reports-2021-financial-year-results-301531269.html

Source: Roan Holdings Group Co., Ltd.
collection