Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
Under the Securities Exchange Act of 1934

 

For the month of October 2024

 

Commission File Number: 001-37829

 

NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD

(Registrant’s name)

 

21F, 55 Loushanguan Rd.

Changning District Shanghai 200336

People’s Republic of China 

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.:

 

Form 20-F  ☒          Form 40-F  ☐

 

 

 

 

 

 

Explanatory Note:

 

The Registrant is furnishing this Report on Form 6-K to provide its unaudited interim financial statements for the six months ended June 30, 2024 and incorporate such financial statements into the Registrant’s registration statement referenced below.

 

This Form 6-K is hereby incorporated by reference into the registration statement of the Registrant on Form S-8 (Registration No. 333-281882) and into each prospectus outstanding under the foregoing registration statement, to the extent not superseded by documents or reports subsequently filed or furnished by the Registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

 

1

 

 

Financial Statements and Exhibits.

 

The following exhibit is attached.

 

Exhibit		Description
99.1		Unaudited Condensed Consolidated Financial Statements for the Six Months Ended June 30, 2024
99.2		Press Release, dated October 15, 2024, titled “Nisun International Reports Unaudited Financial Results for the First Half of 2024”
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File formatted as Inline XBRL and contained in Exhibit 101

 

2

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	Nisun International Enterprise Development Group Co., Ltd
Date: October 15, 2024	By:	/s/ Xin Liu
	Name:	Xin Liu
	Title:	Chief Executive Officer (Principal Executive Officer) and Duly Authorized Officer

 

 

3

 

 

Exhibit 99.1

  

NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

( IN US DOLLARS) 

 

		June 30, 2024				December 31, 2023
ASSETS		(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents		$	47,864,037			$	114,454,844
Restricted cash			-				197,096
Short-term investments			8,044,415				12,788,629
Accounts receivable, net			31,904,860				21,120,795
Advance to suppliers, net			85,801,726				38,602,304
Receivables from supply chain solutions			34,005,851				59,167,029
Inventories			25,321,304				30,953,583
Prepaid expenses and other current assets			14,575,029				16,018,778
TOTAL CURRENT ASSETS			247,517,222				293,303,058
NON-CURRENT ASSETS:
Property and equipment, net			721,621				881,276
Intangible assets, net			430,354				882,828
Right-of-use assets, net			2,182,671				2,384,590
Equity investments			319,275				368,528
Goodwill			17,253,427				17,659,983
Deferred tax assets, net			408,935				418,571
TOTAL NON-CURRENT ASSETS			21,316,283				22,595,776
TOTAL ASSETS		$	268,833,505			$	315,898,834
LIABILITIES
CURRENT LIABILITIES:
Accounts payable		$	15,371,048			$	45,463,753
Short-term bank loans			2,752,092				1,971,859
Accrued expenses and other current liabilities			2,948,837				7,245,358
Operating lease liabilities - current			976,889				861,087
Payables to supply chain solutions			4,295,683				12,947,708
Advances from customer			27,828,709				38,153,915
Taxes payable			4,126,779				4,145,920
Liabilities of financial guarantee			21,821				22,335
Due to related parties - current			268,329				274,652
TOTAL CURRENT LIABILITIES			58,590,187				111,086,587
Operating lease liabilities – non-current			1,386,557				1,643,076
Deferred tax liabilities			29,516				114,650
TOTAL NON-CURRENT LIABILITIES			1,416,073				1,757,726
TOTAL LIABILITIES			60,006,260				112,844,313
SHAREHOLDERS’ EQUITY:*
Class A common stock, $0.01 par value, 30,000,000 and 30,000,000 shares authorized, 4,017,596 and 4,017,596 shares issued, and 3,952,198 and 3,952,198 shares outstanding as of June 30, 2024 and December 31, 2023, respectively			40,176				40,176
Class B common stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding as of June 30, 2024 and December 31, 2023			-				-
Treasury shares			(228,240	)			(261,592	)
Additional paid-in capital			130,535,082				130,535,082
Retained earnings			78,009,782				68,395,637
Statutory reserves			12,253,635				11,564,250
Accumulated other comprehensive loss			(16,060,474	)			(11,474,682	)
COMMON SHAREHOLDERS’ EQUITY			204,549,961				198,798,871
Non-controlling interests			4,277,284				4,255,650
TOTAL SHAREHOLDERS’ EQUITY			208,827,245				203,054,521
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	268,833,505			$	315,898,834

 

*	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 CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

UNAUDITED ( IN US DOLLARS)

 

		For the Six Months Ended June 30,
		2024				2023
REVENUES:
Revenues generated from sales:
Supply chain trading business		$	142,079,851			$	66,249,853
Revenues generated from services:
Small and Medium Enterprise financing solutions			48,527,509				57,956,690
Supply Chain financing solutions			1,929,533				2,737,265
Total revenue generated from services			50,457,042				60,693,955
TOTAL REVENUES			192,536,893				126,943,808
COST OF REVENUE:
Cost of revenue - sales			(140,743,9533	)			(67,342,086	)
Cost of revenue - services			(34,253,460	)			(39,529,203	)
Business and sales related taxes			(287,225	)			(231,103	)
GROSS PROFIT			17,252,255				19,841,416
OPERATING EXPENSES:
Selling expenses			(811,360	)			(2,637,517	)
General and administrative expenses			(4,718,918	)			(5,489,580	)
Research and development expenses			(446,877	)			(351,200	)
Expected credit income			262,584				235,377
Total operating expenses			(5,714,571	)			(8,242,920	)
INCOME FROM OPERATIONS			11,537,684				11,598,496
OTHER INCOME (EXPENSE):
Interest and investment income			801,987				1,498,856
Other income, net			425,839				880,144
Total other income, net			1,227,826				2,379,000
INCOME BEFORE PROVISION FOR INCOME TAXES			12,765,510				13,977,496
INCOME TAXE EXPENSES			(2,440,569	)			(2,610,535	)
NET INCOME			10,324,941				11,366,961
Net income attributable to non-controlling interests			(21,411	)			(47,574	)
NET INCOME - Nisun International’s shareholders		$	10,303,530			$	11,319,387
OTHER COMPREHENSIVE LOSS
Foreign currency translation loss			(4,585,569	)			(8,175,831	)
COMPREHENSIVE INCOME			5,717,961				3,143,556
Comprehensive loss attributable to non-controlling interests			(223	)			(1,487	)
COMPREHENSIVE INCOME		$	5,717,738			$	3,142,069
BASIC AND DILUTED EARNINGS PER COMMON SHARE:
NET EARNINGS PER COMMON SHARE		$	2.61			$	2.87
Weighted average number of shares outstanding-basic and diluted*			3,952,198				3,943,288

 

*	The financial statements give retroactive effect to the May 18, 2023 one-for-ten reverse share split.

 

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NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED (IN US DOLLARS)

 

		For the Six Months Ended June 30,
		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	10,324,941			$	11,366,961
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			847,585				1,294,166
Expected credit income			(262,584	)			(234,120	)
Property and equipment written off			1,807				4,178
Income from investments			(287,022	)			(7,296	)
Deferred tax benefit			(83,112	)			(51,609	)
Repurchase Treasury shares			33,352				-
Changes in operating assets and liabilities:
Accounts receivable			(11,262,419	)			(11,089,756	)
Advance to suppliers			(48,309,925	)			28,012,573
Prepaid expenses and other current assets			(976,429	)			(3,140,645	)
Receivables from supply chain solutions			24,053,943				3,411,356
Inventories			4,956,474				(18,988,807	)
Accounts payable			(29,263,247	)			(1,839,578	)
Advance from customers			(9,517,489	)			41,474,328
Taxes payable			75,614				754,075
Other payables			(1,514,377	)			4,016,393
Payable to supply chain solutions			(8,416,415	)			2,165,239
Operating lease liabilities			(83,690	)			(490,946	)
Accrued expenses and other current liabilities			334,742				567,503
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES			(69,348,251	)			57,224,015
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment			(11,673	)			(226,403	)
Purchase of intangible asset			(4,316	)			(43,534	)
Proceeds from sale of short-term investments			24,704,041				53,004,461
Proceeds from sale of long-term investment			-				2,792,763
Proceeds from investment in debt securities			-				14,204,625
Purchase of short-term investments			(19,892,871	)			(60,463,319	)
Repayments from loans to third parties			2,079,501				471,604
Payments made for loans to third parties			-				(16,756,578	)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES			6,874,682				(7,016,381	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term bank loans			1,386,334				139,638
Repayment of short-term bank loans			(624,198	)			(11,912	)
Proceeds from third party loans			-				1,954,934
Repayment to related party			-				(8,000,000	)
Repayment of third party loans			(2,911,302	)			(2,252,363	)
Capital contribution from non-controlling interest			-				37,116
Repurchase Treasury shares			-				(17,514	)
NET CASH USED IN FINANCING ACTIVITIES			(2,149,166	)			(8,150,101	)
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS			(2,165,168	)			(2,738,394	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS			(66,787,903	)			39,319,139
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-BEGINNING			114,651,940				67,318,573
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-ENDING		$	47,864,037			$	106,637,712
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid for income taxes		$	3,516,019			$	1,560,580
Cash paid for interest		$	69,664			$	11,912
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Lease liabilities arising from obtaining right-of-use assets		$	266,413			$	-
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS ARE COMPRISED OF THE FOLLOWING:
Cash and cash equivalents		$	47,864,037			$	105,994,692
Restricted cash			-				643,020
Total cash and cash equivalents and restricted cash		$	47,864,037			$	106,637,712

 

 

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Exhibit 99.2

 

Nisun International Reports Unaudited Financial Results for the First Half of 2024

 

SHANGHAI, China, October 15, 2024 /PRNewswire/ -- Nisun International Enterprise Development Group Co., Ltd (“Nisun” or the “Company”) (Nasdaq: NISN), a provider of innovative comprehensive supply chain solutions through an integration of technology, industry, and finance, today announced its unaudited financial results for the six months ended June 30, 2024.

 

Financial Results for the Six Months Ended June 30, 2024

 

All comparisons made on a year-over-year (“yoy”) basis.

 

Revenue

 

●

Total revenue increased by 52% to $192.5 million from $126.9 million for the six months ended June 30, 2023, with a significant increase in revenue from the supply chain trading business.

 

●

Revenue from supply chain trading business increased by 114% to $142.1 million, from $66.2 million in the same period of the last fiscal year, primarily due to the growth of the Company’s market share in the gold trading business.

 

●

Revenue from services decreased by 17% to $50.5 million from $60.7 million in the same period of the last fiscal year.

 

●

Revenues generated from the Small and Medium Enterprise (SME) financing solutions business decreased by 16% to $48.5 million from $58.0 million in the same period of the last fiscal year, primarily due to the challenging financial market conditions as a result of the slow-down in the Chinese economy.

 

●

Revenue generated from supply chain financing solutions decreased by 30% to $1.9 million from $2.7 million in the same period of the last fiscal year, primarily due to the challenging financial market conditions as a result of the slow-down in the Chinese economy. The Company continues to actively look for other business market opportunities in China.

 

		For the six months ended June 30,																Changes
		2024				%				2023				%				($)				(%)
		(Unaudited)								(Unaudited)
Revenue generated from sales:
Revenue from supply chain trading business		$	142,079,851				74	%		$	66,249,853				52	%			75,829,998				114	%
Revenue generated from services:
SME financing solutions			48,527,509				25	%			57,956,690				46	%			(9,429,181	)			(16	)%
Supply chain financing solutions			1,929,533				1	%			2,737,265				2	%			(807,732	)			(30	)%
Total revenue from financing services			50,457,042				26	%			60,693,955				48	%			(10,236,913	)			(17	)%
Total revenue		$	192,536,893				100	%		$	126,943,808				100	%			65,593,085				52	%

 

 

 

 

Cost of revenue

 

Cost of revenue was $175.3 million for the six months ended June 30, 2024, compared to $107.1 million in the same period of the last fiscal year, representing an increase of 64%. This increase was primarily due to an increase in the purchase and sale volumes of certain supply chain products in line with the increase in revenue from the supply chain trading business, which has a higher cost of revenue as compared to that incurred in the financing services business.

 

Gross Profit

 

Gross profit decreased by 13% to $17.2 million for the six months ended June 30, 2024 from $19.8 million in the same period of the last fiscal year, due to an increase in the costs of revenue, which was partially offset by an increase in revenue. Gross margin as a percentage of revenue was 8.96% and 15.6% for the six months ended June 30, 2024 and 2023, respectively. The decrease in gross margin as a percentage of revenue was primarily due to the significant growth in the Company’s supply chain trading business and to a lesser extent, to a scale reduction in financing services business. Supply chain trading business generally has a lower gross margin as a percentage of revenue as compared to that of our financing services business.

 

Operating Expenses 

 

Total operating expenses decreased by 31% to $5.7 million for the six months ended June 30, 2024 from $8.2 million in the same period of the last fiscal year. The decrease was primarily attributable to the significant decrease in selling expenses as a result of the decrease in demand in the SME financing solutions services, which led to a reduction in the corresponding channel promotion expenses.

 

●

Selling expenses decreased by 69% to $0.8 million for the six months ended June 30, 2024 from $2.6 million in the same period of the last fiscal year. The decrease in selling expenses was primarily due to less channel promotion expenses related to the SME financing solution services, as the Company maintained its existing sales channels without adding costs associated with new channel creation.

 

●

General and administrative expenses decreased by 14% to $4.7 million for the six months ended June 30, 2024 from $5.5 million in the same period of the last fiscal year. The decrease in general and administrative expenses was primarily a result of management’s enhanced cost control measures, including a reduction in unnecessary travel and entertainment costs.

 

●

R&D expenses increased by 27% to $0.45 million for the six months ended June 30, 2024 from $0.35 million in same period of the last fiscal year. The increase in the R&D expenses was primarily due to the amortization expenses associated with the platform technology purchased by the Company in June 2023.

 

●

Expected credit income increased by 12% to $(0.3) million from $(0.2) million in the prior year period. The increase in the expected credit income was primarily due to the recovery of accounts receivable that were previously provided for in the allowance for credit losses as of December 31, 2023, and the absence of new expected credit loss in the first half of the year.

 

Other Income net

  

The Company had a net other income of $1.2 million for the six months ended June 30, 2024, compared to $2.4 million in the same period of the last fiscal year. The decrease was primarily due to a decrease in interest and investment income as the result of a reduction in short-term investments during the first six months of 2024.

 

Net Income

  

In the six months ended June 30, 2024, the Company had a net income of $10.3 million, compared to $11.4 million in the same period of the last fiscal year. The decrease was primarily attributable to the decrease in gross profit as discussed above.

 

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Net Income per Share

 

Net income per share was $2.61 for the six months ended June 30, 2024, a slight decrease compared to $2.87 in the same period of the last fiscal year. The weighted average number of shares outstanding was 3,952,198 and 3,943,288 in the six months ended June 30, 2024 and 2023, respectively.

 

Financial Condition and Cash Flow

 

As of June 30, 2024, the Company had cash, cash equivalents and restricted cash of $47.8 million, compared to $114.6 million as of December 31, 2023. This decrease was primarily attributable to $69.4 million used in operating activities during the six months ended June 30, 2024.

 

Net cash used in operating activities increased by $126.6 million to $69.4 million for the six months ended June 30, 2024, compared to net cash provided by operating activities of $57.2 million for the prior fiscal year. The increase in net cash used in operating activities was primarily due to an increase in cash outflows from advances to suppliers of $76.3 million, advances to customers of $51.0 million, payment of other payables related to the supply chain solution business of $10.6 million, which was partially offset by an increase in cash inflow from inventory of $23.9 million.

 

Net cash provided by investing activities increased by $13.9 million to $6.9 million for the six months ended June 30, 2024, compared to a cash outflow from investing activities of $7.0 million for the same period of the prior fiscal year. The increase in net cash provided by investing activities was primarily due to a decrease in payments made for short-term investment of $40.6 million, and a decrease in payments for loans to third parties of $16.8 million. The decrease was partially offset by a decrease in cash inflows of $28.3 million from proceeds from sale of short-term investments and a decrease in cash proceeds from investments in debt securities of $14.2 million.

 

Net cash used in financing activities for the six months ended June 30, 2024 was $2.1 million, compared to $8.2 million for the same period in the prior fiscal year. Net cash used in financing activities decreased mainly due to a decrease in payments for loans from related parties of $8 million, which was partially offset by a decrease in proceeds from third party loans of $2.0 million.

 

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About Nisun International Enterprise Development Group Co., Ltd

 

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, by cultivating/creating an ecosystem of openness and empowerment. Nisun has built a linked platform that incorporates supply chain, banking, securities, trust, insurance, funds, state-owned enterprises, among other businesses. 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. For more information, please visit http://ir.nisun-international.com.

 

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. 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.

 

Contacts:

 

Nisun International Enterprise Development Group Co., Ltd

Investor Relations

Tel: [phone]

Email: [e-mail]

 

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NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN US DOLLARS)

 

		June 30, 2024				December 31, 2023
ASSETS		(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents		$	47,864,037			$	114,454,844
Restricted cash			-				197,096
Short-term investments			8,044,415				12,788,629
Accounts receivable, net			31,904,860				21,120,795
Advance to suppliers, net			85,801,726				38,602,304
Receivables from supply chain solutions			34,005,851				59,167,029
Inventories			25,321,304				30,953,583
Prepaid expenses and other current assets			14,575,029				16,018,778
TOTAL CURRENT ASSETS			247,517,222				293,303,058
NON-CURRENT ASSETS:
Property and equipment, net			721,621				881,276
Intangible assets, net			430,354				882,828
Right-of-use assets, net			2,182,671				2,384,590
Equity investments			319,275				368,528
Goodwill			17,253,427				17,659,983
Deferred tax assets, net			408,935				418,571
TOTAL NON-CURRENT ASSETS			21,316,283				22,595,776
TOTAL ASSETS		$	268,833,505			$	315,898,834
LIABILITIES
CURRENT LIABILITIES:
Accounts payable		$	15,371,048			$	45,463,753
Short-term bank loans			2,752,092				1,971,859
Accrued expenses and other current liabilities			2,948,837				7,245,358
Operating lease liabilities - current			976,889				861,087
Payables to supply chain solutions			4,295,683				12,947,708
Advances from customer			27,828,709				38,153,915
Taxes payable			4,126,779				4,145,920
Liabilities of financial guarantee			21,821				22,335
Due to related parties - current			268,329				274,652
TOTAL CURRENT LIABILITIES			58,590,187				111,086,587
Operating lease liabilities – non-current			1,386,557				1,643,076
Deferred tax liabilities			29,516				114,650
TOTAL NON-CURRENT LIABILITIES			1,416,073				1,757,726
TOTAL LIABILITIES			60,006,260				112,844,313
SHAREHOLDERS’ EQUITY:*
Class A common stock, $0.01 par value, 30,000,000 and 30,000,000 shares authorized, 4,017,596 and 4,017,596 shares issued, and 3,952,198 and 3,952,198 shares outstanding as of June 30, 2024 and December 31, 2023, respectively			40,176				40,176
Class B common stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding as of June 30, 2024 and December 31, 2023			-				-
Treasury shares			(228,240	)			(261,592	)
Additional paid-in capital			130,535,082				130,535,082
Retained earnings			78,009,782				68,395,637
Statutory reserves			12,253,635				11,564,250
Accumulated other comprehensive loss			(16,060,474	)			(11,474,682	)
COMMON SHAREHOLDERS’ EQUITY			204,549,961				198,798,871
Non-controlling interests			4,277,284				4,255,650
TOTAL SHAREHOLDERS’ EQUITY			208,827,245				203,054,521
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	268,833,505			$	315,898,834

 

*	The financial statements give retroactive effect to the May 18, 2023 one-for-ten reverse share split.

 

5

 

 

NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

UNAUDITED (IN US DOLLARS)

 

		For the Six Months Ended June 30,
		2024				2023
REVENUES:
Revenues generated from sales:
Supply chain trading business		$	142,079,851			$	66,249,853
Revenues generated from services:
Small and Medium Enterprise financing solutions			48,527,509				57,956,690
Supply Chain financing solutions			1,929,533				2,737,265
Total revenue generated from services			50,457,042				60,693,955
TOTAL REVENUES			192,536,893				126,943,808
COST OF REVENUE:
Cost of revenue - sales			(140,743,953	)			(67,342,086	)
Cost of revenue - services			(34,253,460	)			(39,529,203	)
Business and sales related taxes			(287,225	)			(231,103	)
GROSS PROFIT			17,252,255				19,841,416
OPERATING EXPENSES:
Selling expenses			(811,360	)			(2,637,517	)
General and administrative expenses			(4,718,918	)			(5,489,580	)
Research and development expenses			(446,877	)			(351,200	)
Expected credit income			262,584				235,377
Total operating expenses			(5,714,571	)			(8,242,920	)
INCOME FROM OPERATIONS			11,537,684				11,598,496
OTHER INCOME (EXPENSE):
Interest and investment income			801,987				1,498,856
Other income, net			425,839				880,144
Total other income, net			1,227,826				2,379,000
INCOME BEFORE PROVISION FOR INCOME TAXES			12,765,510				13,977,496
PROVISION FOR INCOME TAXES			(2,440,569	)			(2,610,535	)
NET INCOME			10,324,941				11,366,961
Net income attributable to non-controlling interests			(21,411	)			(47,574	)
NET INCOME - Nisun International’s shareholders		$	10,303,530			$	11,319,387
OTHER COMPREHENSIVE LOSS
Foreign currency translation loss			(4,585,569	)			(8,175,831	)
COMPREHENSIVE INCOME			5,717,961				3,143,556
Comprehensive (loss) attributable to non-controlling interests			(223	)			(1,487
COMPREHENSIVE INCOME		$	5,717,738			$	3,142,069
BASIC AND DILUTED EARNINGS PER COMMON SHARE:
NET EARNINGS PER COMMON SHARE		$	2.61			$	2.87
Weighted average number of shares outstanding-basic and diluted*			3,952,198				3,943,288

 

*	The financial statements give retroactive effect to the May 18, 2023 one-for-ten reverse share split.

 

6

 

 

NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED (IN US DOLLARS)

 

		For the Six Months Ended June 30,
		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	10,324,941			$	11,366,961
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			847,585				1,294,166
Expected credit income			(262,584	)			(234,120	)
Property and equipment written off			1,807				4,178
Income from investments			(287,022	)			(7,296	)
Deferred tax benefit			(83,112	)			(51,609	)
Repurchase Treasury shares			33,352				-
Changes in operating assets and liabilities:
Accounts receivable			(11,262,419	)			(11,089,756	)
Advance to suppliers			(48,309,925	)			28,012,573
Prepaid expenses and other current assets			(976,429	)			(3,140,645	)
Receivables from supply chain solutions			24,053,943				3,411,356
Inventories			4,956,474				(18,988,807	)
Accounts payable			(29,263,247	)			(1,839,578	)
Advance from customers			(9,517,489	)			41,474,328
Taxes payable			75,614				754,075
Other payables			(1,514,377	)			4,016,393
Payable to supply chain solutions			(8,416,415	)			2,165,239
Operating lease liabilities			(83,690	)			(490,946	)
Accrued expenses and other current liabilities			334,742				567,503
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES			(69,348,251	)			57,224,015
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment			(11,673	)			(226,403	)
Purchase of intangible asset			(4,316	)			(43,534	)
Proceeds from sale of short-term investments			24,704,041				53,004,461
Proceeds from sale of long-term investment			-				2,792,763
Proceeds from investment in debt securities			-				14,204,625
Purchase of short-term investments			(19,892,871	)			(60,463,319	)
Repayments from loans to third parties			2,079,501				471,604
Payments made for loans to third parties			-				(16,756,578	)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES			6,874,682				(7,016,381	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term bank loans			1,386,334				139,638
Repayment of short-term bank loans			(624,198	)			(11,912	)
Proceeds from third party loans			-				1,954,934
Repayment to related party			-				(8,000,000	)
Repayment of third party loans			(2,911,302	)			(2,252,363	)
Capital contribution from non-controlling interest			-				37,116
Repurchase Treasury shares			-				(17,514	)
NET CASH USED IN FINANCING ACTIVITIES			(2,149,166	)			(8,150,101	)
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS			(2,165,168	)			(2,738,394	)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS			(66,787,903	)			39,319,139
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-BEGINNING			114,651,940				67,318,573
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-ENDING		$	47,864,037			$	106,637,712
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid for income taxes		$	3,516,019			$	1,560,580
Cash paid for interest		$	69,664			$	11,912
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Lease liabilities arising from obtaining right-of-use assets		$	266,413			$	-
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS ARE COMPRISED OF THE FOLLOWING:
Cash and cash equivalents		$	47,864,037			$	105,994,692
Restricted cash			-				643,020
Total cash, cash equivalents and restricted cash		$	47,864,037			$	106,637,712

 

 

7

 

 

Document And Entity Information	6 Months Ended
	Jun. 30, 2024
Document Information Line Items
Entity Registrant Name	NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD
Document Type	6-K
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0001603993
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity File Number	001-37829

Condensed Consolidated Balance Sheets - USD ($)		Jun. 30, 2024	Dec. 31, 2023
CURRENT ASSETS:
Cash and cash equivalents		$ 47,864,037	$ 114,454,844
Restricted cash			197,096
Short-term investments		8,044,415	12,788,629
Accounts receivable, net		31,904,860	21,120,795
Advance to suppliers, net		85,801,726	38,602,304
Receivables from supply chain solutions		34,005,851	59,167,029
Inventories		25,321,304	30,953,583
Prepaid expenses and other current assets		14,575,029	16,018,778
TOTAL CURRENT ASSETS		247,517,222	293,303,058
NON-CURRENT ASSETS:
Property and equipment, net		721,621	881,276
Intangible assets, net		430,354	882,828
Right-of-use assets, net		2,182,671	2,384,590
Equity investments		319,275	368,528
Goodwill		17,253,427	17,659,983
Deferred tax assets, net		408,935	418,571
TOTAL NON-CURRENT ASSETS		21,316,283	22,595,776
TOTAL ASSETS		268,833,505	315,898,834
CURRENT LIABILITIES:
Accounts payable		15,371,048	45,463,753
Short-term bank loans		2,752,092	1,971,859
Accrued expenses and other current liabilities		2,948,837	7,245,358
Operating lease liabilities - current		976,889	861,087
Payables to supply chain solutions		4,295,683	12,947,708
Advances from customer		27,828,709	38,153,915
Taxes payable		4,126,779	4,145,920
Liabilities of financial guarantee		21,821	22,335
TOTAL CURRENT LIABILITIES		58,590,187	111,086,587
Operating lease liabilities – non-current		1,386,557	1,643,076
Deferred tax liabilities		29,516	114,650
TOTAL NON-CURRENT LIABILITIES		1,416,073	1,757,726
TOTAL LIABILITIES		60,006,260	112,844,313
SHAREHOLDERS’ EQUITY:*
Treasury shares	[1]	(228,240)	(261,592)
Additional paid-in capital	[1]	130,535,082	130,535,082
Retained earnings	[1]	78,009,782	68,395,637
Statutory reserves	[1]	12,253,635	11,564,250
Accumulated other comprehensive loss	[1]	(16,060,474)	(11,474,682)
COMMON SHAREHOLDERS’ EQUITY	[1]	204,549,961	198,798,871
Non-controlling interests	[1]	4,277,284	4,255,650
TOTAL SHAREHOLDERS’ EQUITY	[1]	208,827,245	203,054,521
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	[1]	268,833,505	315,898,834
Related Party
CURRENT LIABILITIES:
Due to related parties - current		268,329	274,652
Class A Common Stock
SHAREHOLDERS’ EQUITY:*
Common stock	[1]	40,176	40,176
Class B Common Stock
SHAREHOLDERS’ EQUITY:*
Common stock	[1]
[1] The financial statements give retroactive effect to the May 18, 2023 one-for-ten reverse share split.

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Class A Common Stock
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	4,017,596	4,017,596
Common stock, shares outstanding	3,952,198	3,952,198
Class B Common Stock
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued
Common stock, shares outstanding

Condensed Consolidated Statements of Income and Comprehensive Income Unaudited - USD ($)		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023
Revenues generated from sales:
Supply chain trading business		$ 142,079,851	$ 66,249,853
Revenues generated from services:
Small and Medium Enterprise financing solutions		48,527,509	57,956,690
Supply Chain financing solutions		1,929,533	2,737,265
Total revenue generated from services		50,457,042	60,693,955
TOTAL REVENUES		192,536,893	126,943,808
COST OF REVENUE:
Cost of revenue - sales		(1,407,439,533)	(67,342,086)
Cost of revenue - services		(34,253,460)	(39,529,203)
Business and sales related taxes		(287,225)	(231,103)
GROSS PROFIT		17,252,255	19,841,416
OPERATING EXPENSES:
Selling expenses		(811,360)	(2,637,517)
General and administrative expenses		(4,718,918)	(5,489,580)
Research and development expenses		(446,877)	(351,200)
Expected credit income		262,584	235,377
Total operating expenses		(5,714,571)	(8,242,920)
INCOME FROM OPERATIONS		11,537,684	11,598,496
OTHER INCOME (EXPENSE):
Interest and investment income		801,987	1,498,856
Other income, net		425,839	880,144
Total other income, net		1,227,826	2,379,000
INCOME BEFORE PROVISION FOR INCOME TAXES		12,765,510	13,977,496
INCOME TAXE EXPENSES		(2,440,569)	(2,610,535)
NET INCOME		10,324,941	11,366,961
Net income attributable to non-controlling interests		(21,411)	(47,574)
NET INCOME - Nisun International’s shareholders		10,303,530	11,319,387
OTHER COMPREHENSIVE LOSS
Foreign currency translation loss		(4,585,569)	(8,175,831)
COMPREHENSIVE INCOME		5,717,961	3,143,556
Comprehensive loss attributable to non-controlling interests		(223)	(1,487)
COMPREHENSIVE INCOME		$ 5,717,738	$ 3,142,069
BASIC AND DILUTED EARNINGS PER COMMON SHARE:
NET EARNINGS PER COMMON SHARE BASIC (in Dollars per share)		$ 2.61	$ 2.87
NET EARNINGS PER COMMON SHARE DILUTED (in Dollars per share)		$ 2.61	$ 2.87
Weighted average number of shares outstanding-basic (in Shares)	[1]	3,952,198	3,943,288
Weighted average number of shares outstanding-diluted (in Shares)	[1]	3,952,198	3,943,288
[1] The financial statements give retroactive effect to the May 18, 2023 one-for-ten reverse share split.

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 10,324,941	$ 11,366,961
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	847,585	1,294,166
Expected credit income	(262,584)	(234,120)
Property and equipment written off	1,807	4,178
Income from investments	(287,022)	(7,296)
Deferred tax benefit	(83,112)	(51,609)
Repurchase Treasury shares	33,352
Changes in operating assets and liabilities:
Accounts receivable	(11,262,419)	(11,089,756)
Advance to suppliers	(48,309,925)	28,012,573
Prepaid expenses and other current assets	(976,429)	(3,140,645)
Receivables from supply chain solutions	24,053,943	3,411,356
Inventories	4,956,474	(18,988,807)
Accounts payable	(29,263,247)	(1,839,578)
Advance from customers	(9,517,489)	41,474,328
Taxes payable	75,614	754,075
Other payables	(1,514,377)	4,016,393
Payable to supply chain solutions	(8,416,415)	2,165,239
Operating lease liabilities	(83,690)	(490,946)
Accrued expenses and other current liabilities	334,742	567,503
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES	(69,348,251)	57,224,015
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(11,673)	(226,403)
Purchase of intangible asset	(4,316)	(43,534)
Proceeds from sale of short-term investments	24,704,041	53,004,461
Proceeds from sale of long-term investment		2,792,763
Proceeds from investment in debt securities		14,204,625
Purchase of short-term investments	(19,892,871)	(60,463,319)
Repayments from loans to third parties	2,079,501	471,604
Payments made for loans to third parties		(16,756,578)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	6,874,682	(7,016,381)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term bank loans	1,386,334	139,638
Repayment of short-term bank loans	(624,198)	(11,912)
Proceeds from third party loans		1,954,934
Repayment to related party		(8,000,000)
Repayment of third party loans	(2,911,302)	(2,252,363)
Capital contribution from non-controlling interest		37,116
Repurchase Treasury shares		(17,514)
NET CASH USED IN FINANCING ACTIVITIES	(2,149,166)	(8,150,101)
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS	(2,165,168)	(2,738,394)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(66,787,903)	39,319,139
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-BEGINNING	114,651,940	67,318,573
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-ENDING	47,864,037	106,637,712
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid for income taxes	3,516,019	1,560,580
Cash paid for interest	69,664	11,912
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Lease liabilities arising from obtaining right-of-use assets	266,413
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS ARE COMPRISED OF THE FOLLOWING:
Cash and cash equivalents	47,864,037	105,994,692
Restricted cash		643,020
Total cash and cash equivalents and restricted cash	$ 47,864,037	$ 106,637,712

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