TIAN RUIXIANG Holdings Ltd Reports Financial Results for the Six Months Ended April 30, 2021

BEIJING, Aug. 10, 2021 /PRNewswire/ -- TIAN RUIXIANG Holdings Ltd (Nasdaq: TIRX) (the "Company"), a China-based insurance broker, announced today its unaudited financial results for the six months ended April 30, 2021.

Mr. Zhe Wang, Chairman of the board of the directors and Chief Executive Officer of the Company, commented, "During the first half of the fiscal year 2021, we delivered significant growth as our revenue increased by 131.3% to $1.64 million, compared to the same period of the fiscal year 2020. Driven by positive results from our marketing activities and continuous economic recovery from the COVID-19 pandemic in China, we achieved our highest ever half year revenue. However, due to the increased professional fees related to the Company's initial public offering, our net loss increased by 71.4% to $0.40 million compared to the same period of the fiscal year 2020. Looking forward, we will continue to focus on customers' needs, expand our core service offerings, improve operational efficiency, and strive to achieve sustainable and high-quality growth to create significant value for our shareholders."

First Half of Fiscal Year 2021 Financial Highlights

	For the Six Months Ended April 30,
($ in millions, except per share data)	2021		2020		% Change
Revenue	1.64		0.71		131.3%
Operating expenses	2.10		1.08		95.5%
Loss from operations	(0.46)		(0.37)		26.6%
Operating margin	(28.4)%		(52.0)%		23.6%
Net loss	(0.40)		(0.24)		71.4%
Loss per share	(0.06)		(0.05)		20.0%

• Revenue increased by 131.3% to $1.64 million for the six months ended April 30, 2021, from $0.71 million for the same period of last year, primarily attributable to the growth of our business in China resulting from the increase in our marketing activities.
• Operating expenses increased by 95.5% to $2.10 million for the six months ended April 30, 2021, from $1.08 million for the same period of last year.
• Operating margin was (28.4)% for the six months ended April 30, 2021, compared to (52.0)% for the same period of last year.
• Net loss was $0.40 million for the six months ended April 30, 2021, compared to $0.24 million for the same period of last year.
• Loss per share was $0.06 for the six months ended April 30, 2021, compared to $0.05 for the same period of last year.

First Half of Fiscal Year 2021 Financial Results

Revenue

Revenue increased by $0.93 million, or 131.3%, to $1.64 million for the six months ended April 30, 2021, from $0.71 million for the same period of last year. This significant increase in revenue was primarily attributable to the growth of our business in China resulting from the increase in our marketing activities. We launched aggressive advertising campaigns to attract new customers.

Operating Expenses

Third party and related party selling and marketing expenses increased by $0.33 million, or 61.6%, to $0.86 million for the six months ended April 30, 2021, from $0.53 million for the same period of last year. The increase in selling and marketing expenses was mainly attributable to the increase in our marketing activities and the launch of aggressive advertising campaigns.

Third party and related party general and administrative expenses increased by $0.70 million, or 128.6%, to $1.24 million for the six months ended April 30, 2021, from $0.54 million for the same period of last year. The increase in general and administrative expenses was primarily attributable to the increased professional fees, compensation and related benefits and travel and entertainment expenses, and partially offset by the decreased rent and related utilities expenses.

Total operating expenses increased by $1.02 million, or 95.5%, to $2.10 million for the six months ended April 30, 2021 from $1.08 million for the same period of last year.

Loss from Operations

Loss from operations was $0.46 million for the six months ended April 30, 2021, compared to $0.37 million for the same period of last year.

The operating margin was (28.4)% for the six months ended April 30, 2021, compared to (52.0)% for the same period of last year.

Other Income (Expense)

Other income (expense) primarily includes interest income from notes receivable and bank deposits, and miscellaneous income. Other income, net, was $0.07 million for the six months ended April 30, 2021, compared to $0.14 million for the same period of last year.

Loss before Income Tax

Loss before income tax was $0.40 million for the six months ended April 30, 2021, compared to $0.23 million for the same period of last year.

Income tax expense was $6,917 for the six months ended April 30, 2021, compared to $4,631 for the same period of last year.

Net Loss and Loss per Share

Net loss was $0.40 million for the six months ended April 30, 2021, compared to $0.24 million for the same period of last year. After deduction of non-controlling interest, net loss attributable to TIRX ordinary shareholders was $0.40 million, or loss per share of $0.06 for the six months ended April 30, 2021, compared to $0.24 million, or loss per share of $0.05 for the same period of last year.

Financial Conditions

As of April 30, 2021, the Company had cash and cash equivalents of $18.16 million, compared to $6.14 million as of October 31, 2020. Total working capital was $18.10 million as of April 30, 2021, compared to $8.27 million as of October 31, 2020.

Net cash provided by operating activities was $1.09 million for the six months ended April 30, 2021, compared to net cash used in operating activities of $0.13 million for the same period of last year.

There were no investing activities for the six months ended April 30, 2021, net cash used in investing activities was $5,935 for the same period of last year.

Net cash provided by financing activities was $10.71 million for the six months ended April 30, 2021, compare to net cash used in financing activities of $0.34 million for the same period of last year.

About TIAN RUIXIANG Holdings Ltd

TIAN RUIXIANG Holdings Ltd, headquartered in Beijing, China, is an insurance broker operating in China. It distributes a wide range of insurance products, which are categorized into two major groups: (1) property and casualty insurance, such as automobile insurance, commercial property insurance, liability insurance; and (2) life insurance, such as individual and group life insurances. Additionally, the Company also provides risk management services to institutional customers. For more information, visit the company's website at http://ir.tianrx.com/.

Forward-Looking Statements

All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review risk factors that may affect its future results in the Company's registration statement and in its other filings with the SEC.

For investor and media enquiries, please contact:

TIAN RUIXIANG Holdings Ltd
Investor Relations Department
Email: [e-mail] 

Ascent Investor Relations LLC
Tina Xiao
Phone: [phone]
Email: [e-mail] 

TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN U.S. DOLLARS)
		As of
		April 30, 2021				October 31, 2020
		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	18,160,102			$	6,137,689
Restricted cash			810,279				785,806
Accounts receivable			359,268				1,247,059
Deferred offering costs			-				895,567
Prepaid expenses and other current assets			370,584				494,476
Total Current Assets			19,700,233				9,560,597
NON-CURRENT ASSETS:
Security deposit - noncurrent portion			7,813				7,419
Property and equipment, net			11,824				15,097
Intangible assets, net			155,791				160,219
Right-of-use assets, operating leases, net			268,992				317,141
Total Non-current Assets			444,420				499,876
Total Assets		$	20,144,653			$	10,060,473
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Note payable		$	75,689			$	-
VAT and other taxes payable			525,120				548,630
Salary payable			353,139				129,711
Accrued liabilities and other payables			436,906				180,394
Due to related parties			46,547				241,097
Operating lease liabilities			144,485				170,082
Operating lease liabilities - related party			23,213				18,737
Total Current Liabilities			1,605,099				1,288,651
NON-CURRENT LIABILITIES:
Operating lease liabilities - noncurrent portion			91,547				123,404
Operating lease liabilities - related party - noncurrent portion			-				9,705
Total Non-current Liabilities			91,547				133,109
Total Liabilities			1,696,646				1,421,760
EQUITY:
TIAN RUIXIANG Holdings Ltd Shareholders' Equity:
Ordinary shares: $0.001 par value; 50,000,000 shares authorized;
Class A ordinary shares: $0.001 par value; 47,500,000 shares authorized;  6,825,000 and 3,750,000 shares issued and outstanding at April 30, 2021 and October 31, 2020, respectively			6,825				3,750
Class B ordinary shares: $0.001 par value; 2,500,000 shares authorized; 1,250,000 shares issued and outstanding at April 30, 2021 and October 31, 2020			1,250				1,250
Additional paid-in capital			17,609,386				7,696,468
Retained earnings			480,141				884,076
Statutory reserve			170,066				170,066
Accumulated other comprehensive income (loss) - foreign currency translation adjustment			179,828				(117,392)
Total TIAN RUIXIANG Holdings Ltd shareholders' equity			18,447,496				8,638,218
Non-controlling interest			511				495
Total Equity			18,448,007				8,638,713
Total Liabilities and Equity		$	20,144,653			$	10,060,473

 

 

TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(IN U.S. DOLLARS)
		For the Six Months Ended April 30,
		2021				2020
REVENUES
Commissions		$	1,636,835			$	707,794
Total Revenues			1,636,835				707,794
OPERATING EXPENSES
Selling and marketing			858,448				518,734
Selling and marketing - related parties			940				13,038
General and administrative - professional fees			656,534				49,240
General and administrative - compensation and related benefits			424,225				355,710
General and administrative - related parties			10,139				4,716
General and administrative - other			152,044				134,141
Total Operating Expenses			2,102,330				1,075,579
LOSS FROM OPERATIONS			(465,495)				(367,785)
OTHER INCOME (EXPENSE)
Interest income			1,038				87,886
Interest income - related party			-				6,390
Other income			67,438				42,431
Total Other Income, net			68,476				136,707
LOSS BEFORE INCOME TAXES			(397,019)				(231,078)
INCOME TAXES			6,917				4,631
NET LOSS		$	(403,936)			$	(235,709)
LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST			(1)				(2)
NET LOSS ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD ORDINARY SHAREHOLDERS		$	(403,935)			$	(235,707)
COMPREHENSIVE LOSS:
NET LOSS			(403,936)				(235,709)
OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized foreign currency translation gain (loss)			297,237				(23,551)
COMPREHENSIVE LOSS		$	(106,699)			$	(259,260)
LESS: COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NON- CONTROLLING INTEREST			16				(4)
COMPREHENSIVE LOSS ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD ORDINARY SHAREHOLDERS		$	(106,715)			$	(259,256)
NET LOSS PER ORDINARY SHARE ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD ORDINARY SHAREHOLDERS:
Basic and diluted		$	(0.06)			$	(0.05)
WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:
Basic and diluted			6,560,497				5,000,000

 

 

TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN U.S. DOLLARS)
		For the Six Months Ended April 30,
		2021				2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(403,936)			$	(235,709)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense and amortization of intangible assets			13,492				13,679
Amortization of right-of-use assets			132,622				-
Changes in operating assets and liabilities:
Accounts receivable			923,218				(92,021)
Security deposit			4,495				1,626
Prepaid expenses and other current assets			134,880				32,093
Due from related parties			-				(15,245)
VAT and other taxes payable			(41,633)				(4,307)
Salary payable			218,031				76,746
Accrued liabilities and other payables			250,097				10,923
Due to related parties			10,071				57,711
Operating lease liabilities - related party			(6,141)				25,331
Operating lease liabilities			(141,073)				-
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES			1,094,123				(129,173)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment			-				(5,935)
NET CASH USED IN INVESTING ACTIVITIES			-				(5,935)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds received from note payable			75,165				-
Proceeds received from related parties' borrowings			1,652,137				-
Repayments made for related parties' borrowings			(1,863,143)				-
Proceeds received from equity offering			12,300,000				5,000
Disbursements for equity offering costs			(1,449,770)				(349,345)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES			10,714,389				(344,345)
EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH			238,374				(19,561)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH			12,046,886				(499,014)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - beginning of period			6,923,495				6,966,586
CASH, CASH EQUIVALENTS AND RESTRICTED CASH - end of period		$	18,970,381			$	6,467,572
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for:
Interest		$	-			$	-
Income taxes		$	597			$	-
NON-CASH INVESTING AND FINANCING ACTIVITIES
Payments made by related parties on the Company's behalf		$	267,610			$	-
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents at beginning of period		$	6,137,689			$	6,243,029
Restricted cash at beginning of period			785,806				723,557
Total cash, cash equivalents and restricted cash at beginning of period		$	6,923,495			$	6,966,586
Cash and cash equivalents at end of period		$	18,160,102			$	5,743,827
Restricted cash at end of period			810,279				723,745
Total cash, cash equivalents and restricted cash at end of period		$	18,970,381			$	6,467,572

  

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SOURCE TIAN RUIXIANG Holdings Ltd

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