SHENZHEN, China, Aug. 17,
2021 /PRNewswire/ -- TD Holdings, Inc. (Nasdaq: GLG) (the
"Company"), a commodities trading service provider
in China, today announced its financial results for the
second quarter ended June 30, 2021.
Affected by the ongoing outbreak of the COVID-19, the Company
expected its used luxurious car leasing business to be subject to
continuous losses due to the closure of stores. As a result, the
Company sold the used luxurious car leasing business in August
2020 and focused on the commodities trading and its
complementary businesses.
Ms. Renmei Ouyang, the Chief Executive Officer of the
Company, stated, "We are pleased to report our financial results
for the second quarter of fiscal year 2021. Despite the setbacks
caused by the COVID-19 outbreak and having just started our
commodities trading business in late 2019, our revenue increased by
2981% to $59.84 million for the
second quarter of fiscal year 2021 as compared to the second
quarter of fiscal year 2020. The growth figure demonstrates that we
are optimally situated to capture the opportunities in the market.
We remain focused on driving momentum in our business, and we
recently announced that we plan to commence our commodity trading
business in Yangpu Economic Development Zone and launch a
blockchain payment and settlement platform for online commodity
trading in Yangzhou Economic & Technological Development Zone
in China. Looking forward, we will
strengthen the Company's competitive position over the long-term,
including developing our global commodity e-commerce platform,
building our own digital cloud warehouse, improving our trading
settlement and payment system, creating a supply chain financial
ecosystem as well as acquiring large-scale overseas minerals. With
the visibility and validation afforded as a Nasdaq listed company,
we can now confidently focus on building profitable revenue growth
and creating value for our shareholders."
Financial Highlights
In the quarter ended June 30,
2021
- Total revenue was $59.84 million, consisting
of $59.51 million from sales of commodities products,
and $0.33 million from supply chain management services
for the quarter ended June 30, 2021,
an increase of 2981% from $1.94
million for the same quarter ended June 30, 2020.
- Net income from continuing operation was $0.36 million, as
compared with net loss from continuing operations of $5.17
million for the same quarter ended June
30, 2020. Net income was $0.36
million, as compared with net loss of $5.46 million for the same quarter ended
June 30, 2020.
- Basic and diluted earnings per share from continuing operations
was nil, compared with basic and diluted loss per share from
continuing operations of $0.11 for the same quarter ended
June 30, 2020.
In the six months ended June 30,
2021
- Total revenue was $89.42 million, consisting
of $88.95 million from sales of commodities products,
and $0.47 million from supply chain management services
for the six months ended June 30,
2021, an increase of 2740% from $3.15
million for the same period ended June 30, 2020.
- Net loss from continuing operation was $1.18 million, as compared with net loss from
continuing operations of $5.26
million for the same period ended June 30, 2020. Net loss was $1.18 million,
as compared with net loss of $5.82 million for the same
period ended June 30, 2020.
- Basic and diluted loss per share from continuing operations
was $0.01, compared with basic and diluted loss per share from
continuing operations of $0.17 for the same period ended
June 30, 2020.
Financial Results
In the three months ended June 30,
2021
Revenues
For the three months ended June 30,
2021, the Company sold non-ferrous metals to two customers
at fixed prices, and earned revenues when the product ownership was
transferred to its customers. The Company earned revenues of
$59.51 million from sales of
commodity products for the three months ended June 30, 2021, among which, $1.52 million generated from the related
party, compared with $1.56 million
from sales of commodity products for the three months ended
June 30, 2020.
For the three months ended June 30,
2021, the Company earned commodity distribution commission
fees of $0.33 million from eight
third party customers, compared with $0.35
million from two third party customers and $0.03 million from one related party customer for
the three months ended June 30,
2020.
Cost of revenue
Cost of revenue primarily consists of purchase costs of
non-ferrous metal products. For the three months ended June 30, 2021, the Company purchased
non-ferrous metal products of $57.93
million from fifteen third party vendors and $1.53 million from five related party vendors,
compared with $1.37 million from one
third party vendor and $0.20 million
from one related party vendor for the three months ended
June 30, 2020.
Selling, general, and administrative expenses
Selling, general and administrative expenses increased by
$1.61 million or 368%, to
$2.05 million for the three months
ended June 30, 2021, from
$0.44 million for the three months
ended June 30, 2020. Selling, general
and administrative expenses primarily consisted of salary and
employee benefits, office rental expense, amortizations of
intangible assets and convertible notes, professional service fees
and finance offering related fees. The increase was mainly
attributable to 1) amortization of intangible assets of
$1.01 million and, 2) amortization of
convertible notes of $0.12 million
for the three months ended June 30,
2021 while no such issuance for the three months ended
June 30, 2020.
Interest income
Interest income was primarily generated from loans made to third
parties and related parties. Interest income increased by
$1.14 million or 63%, to $2.94 million for the three months ended
June 30, 2021, from $1.80 million for the three months ended
June 30, 2020. The increase was
primarily due to loans made to Shenzhen Xinsuniao for the three
months ended June 30, 2020 to
$59.50 million made to additional 13
vendor customers, among which, $2.01
million was attributed to relate party and $0.94 million was generated from third party
vendors.
Amortization of relative fair value of warrants relating to
service provider
For the three months ended June 30,
2020, the item represented the full amortization of
beneficial conversion feature of $3.4
million and amortization of relative fair value of warrants
of $3.06 million relating to the
convertible notes which was exercised in May
2020.
For the three months ended June 30, 2021, no such expenses
incurred.
Net income from continuing operations
Net income was $0.36 million for
the three months ended June 30, 2021,
compared with net loss of $5.17
million for the three months ended June 30, 2020.
Net loss from discontinued operations
During the three months ended June 30,
2020, net loss from discontinued operations was $0.29 million from discontinued operations of
used luxurious car leasing business.
In the six months ended June 30,
2021
Revenues
For the six months ended June 30,
2021, the Company sold non-ferrous metals to two related
party customers at fixed prices, and earned revenues when the
product ownership was transferred to its customers. The Company
earned revenues of $88.95 million
from sales of commodity products for the six months ended
June 30, 2021, compared with
$2.62 million for the six months
ended June 30, 2020.
For the six months ended June 30,
2021, the Company earned commodity distribution commission
fees of $0.47 million from third
party vendors, compared with commission fees of $0.46 million from three third party customers
and distribution service fees of $0.07
million from one related party customer for the six months
ended June 30, 2020.
Cost of revenue
Cost of revenue primarily consists of purchase costs of
non-ferrous metal products. For the six months ended June 30, 2021, the Company purchased
non-ferrous metal products of $67.68
million from fifteen third party vendors and $21.20 million from five related party vendors,
compared with $1.36 million from on
third party vendor and $1.26 million
from one related party vendor for the six months ended June 30, 2020.
Selling, general, and administrative expenses
Selling, general and administrative expenses increased by
$2.88 million or 389%, to
$3.62 million for the six months
ended June 30, 2021, from
$0.74 million for the six months
ended June 30, 2020. Selling, general
and administrative expenses primarily consisted of salary and
employee benefits, office rental expense, amortizations of
intangible assets and convertible notes, professional service fees
and finance offering related fees. The increase was mainly
attributable to 1) amortization of intangible assets of
$1.89 million and, 2) amortization of
convertible notes of $0.16 million
for the six months ended June 30,
2021 while no such issuance for the three months ended
June 30, 2020, 3) professional fee
increased from $0.51 million to
$0.77 million.
Interest income
Interest income was primarily generated from loans made to third
parties and related parties. Interest income increased by
$3.16 million or 168%, to
$5.04 million for the six months
ended June 30, 2021, from
$1.88 million for the six months
ended June 30, 2020. The increase was
primarily due to loans made to Shenzhen Xinsuniao for the three
months ended June 30, 2020 to
$59.50 million made to additional 13
vendor customers, among which, $3.62
million was attributed to relate party and $1.42 million was generated from third party
vendors.
Share-based payment for service
On March 4, 2021, the Company
issued 750,000 fully-vested warrants with an exercise price of
$0.01, with a five-year life, to an
agent who was engaged to complete the warrant waiver and exercise
agreements. The Company applied Black-Scholes model and determined
the fair value of the warrants to be $ $1,695,042. Significant estimates and assumptions
used included stock price on March 4,
2021 of $2.27 per share,
risk-free interest rate of one year of 0.08%, life of 5 years, and
volatility of 71.57% for the six months ended June 30, 2021.
For the six months ended June 30,
2020, no such expenses incurred.
Amortization of beneficial conversion feature and relative
fair value of warrants relating to issuance of convertible notes
For the six months ended June 30,
2020, the item represented the full amortization of
beneficial conversion feature of $3.4
million and amortization of relative fair value of warrants
of $3.06 million relating to the
convertible notes which was exercised in May
2020.
For the six months ended June 30, 2021, no such expenses
incurred.
Net loss from continuing operations
Net loss was $1.18 million for the
six months ended June 30, 2021,
compared with net loss of $5.26
million for the six months ended June
30, 2020.
Net loss from discontinued operations
During the six months ended June 30,
2020, net loss from discontinued operations was $0.55 million from discontinued operations of
used luxurious car leasing business.
Six Months Ended June 30,
2021 Cash Flows
As of June 30, 2021, the Company had cash and cash
equivalents of $6.90 million, as compared with $2.70
million as of December 31, 2020.
Net cash used in operating activities from continuing operations
was $3.79 million for the six months ended June 30,
2021, compared with $2.74 million for the six months
ended June 30, 2020. Net cash used in operating activities
was $3.79 million for the six months ended June 30,
2021, compared with $2.72 million for the six months
ended June 30, 2020.
Net cash used in investing activities was $15.81
million for the six months ended June 30, 2021, 2020,
compared with $78.86 million for the six months
ended June 30, 2020.
Net cash provided by financing activities was $23.10
million for the six months ended June 30, 2021, compared
with $80.24 million the six months ended June 30,
2020.
About TD Holdings, Inc.
TD Holdings, Inc. is a service provider currently engaging in
commodity trading business and supply chain service business
in China. Its commodities trading business primarily involves
purchasing non-ferrous metal product from upstream metal and
mineral suppliers and then selling to downstream customers. Its
supply chain service business primarily has served as a one-stop
commodity supply chain service and digital intelligence supply
chain platform integrating upstream and downstream enterprises,
warehouses, logistics, information, and futures trading. For more
information, please visit http://ir.tdglg.com.
Safe Harbor Statement
This press release may contain certain "forward-looking
statements" relating to the business of TD Holdings, Inc. and its
subsidiary companies. All statements, other than statements of
historical fact included herein are "forward-looking statements."
These forward-looking statements are often identified by the use of
forward-looking terminology such as "believes," "expects" or
similar expressions, involve known and unknown risks and
uncertainties. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they
do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. The following factors,
among others, could cause actual results to differ materially from
those described in these forward-looking statements: there is
uncertainty about the spread of the COVID-19 virus and the impact
it will have on the Company's operations, the demand for the
Company's products and services, global supply chains and economic
activity in general. Investors should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. Investors should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. The Company's actual results could differ
materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those
discussed in the Company's periodic reports that are filed with the
Securities and Exchange Commission and available on its website
at http://www.sec.gov. All forward-looking statements
attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these factors. Other than
as required under the securities laws, the Company does not assume
a duty to update these forward-looking statements.
For more information, please contact:
Ascent Investor Relations LLC
Ms. Tina Xiao
Email:tina.xiao@ascent-ir.com
Tel: +1 917 609 0333
TD HOLDINGS,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
June 30,
2021
|
|
|
December 31,
2020
|
|
ASSETS
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash
|
|
$
|
6,896,515
|
|
|
$
|
2,700,013
|
|
Accounts receivable,
net
|
|
|
2,523
|
|
|
|
-
|
|
Loans receivable from
third parties
|
|
|
59,504,874
|
|
|
|
18,432,691
|
|
Prepayments
|
|
|
5,115,092
|
|
|
|
-
|
|
Due from related
parties
|
|
|
20,366,043
|
|
|
|
55,839,045
|
|
Inventory
|
|
|
883,961
|
|
|
|
-
|
|
Other current
assets
|
|
|
728,738
|
|
|
|
1,310,562
|
|
Total current
assets
|
|
|
93,497,746
|
|
|
|
78,282,311
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
2,205
|
|
|
|
-
|
|
Goodwill
|
|
|
70,088,377
|
|
|
|
69,322,325
|
|
Intangible
assets
|
|
|
22,999,116
|
|
|
|
19,573,846
|
|
Total noncurrent
assets
|
|
|
93,089,698
|
|
|
|
88,896,171
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
186,587,444
|
|
|
$
|
167,178,482
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
2,301,057
|
|
|
$
|
-
|
|
Advances from
customers
|
|
|
10,995,818
|
|
|
|
9,214,369
|
|
Third party loan
payables
|
|
|
1,996,533
|
|
|
|
-
|
|
Due to related
parties
|
|
|
1,349,180
|
|
|
|
7,346,021
|
|
Bank
borrowings
|
|
|
1,300,068
|
|
|
|
1,653,247
|
|
Income tax
payable
|
|
|
6,703,087
|
|
|
|
5,460,631
|
|
Convertible
notes
|
|
|
5,219,360
|
|
|
|
-
|
|
Acquisition
payable
|
|
|
-
|
|
|
|
15,384,380
|
|
Other current
liabilities
|
|
|
2,930,193
|
|
|
|
3,197,147
|
|
Total Current
Liabilities
|
|
|
32,795,296
|
|
|
|
42,255,795
|
|
|
|
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
|
4,535,242
|
|
|
|
4,893,461
|
|
Total Non-current
Liabilities
|
|
|
4,535,242
|
|
|
|
4,893,461
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
37,330,538
|
|
|
|
47,149,256
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies (Note 12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Common stock (par
value $0.001 per share, 100,000,000 shares authorized;
97,043,566 and 79,131,207 shares issued and outstanding
at June 30, 2021
and December 31, 2020, respectively)
|
|
|
97,044
|
|
|
|
79,131
|
|
Additional paid-in
capital
|
|
|
181,174,696
|
|
|
|
151,407,253
|
|
Statutory
reserve
|
|
|
913,292
|
|
|
|
913,292
|
|
Accumulated
deficit
|
|
|
(41,876,191)
|
|
|
|
(39,255,945)
|
|
Accumulated other
comprehensive loss
|
|
|
8,948,065
|
|
|
|
6,885,495
|
|
Total
Equity
|
|
|
149,256,906
|
|
|
|
120,029,226
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
|
186,587,444
|
|
|
$
|
167,178,482
|
|
TD HOLDINGS,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)
|
(Expressed in U.S.
dollars, except for the number of shares)
|
|
|
|
For the Three
Months Ended
June 30,
|
|
|
For the Six Months
Ended
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
- Sales of commodity
products – related parties
|
|
$
|
1,523,616
|
|
|
$
|
1,563,669
|
|
|
$
|
21,926,631
|
|
|
$
|
2,617,301
|
|
- Sales of commodity
products – third parties
|
|
|
57,989,381
|
|
|
|
-
|
|
|
|
67,022,848
|
|
|
|
|
|
- Supply chain
management services – related parties
|
|
|
|
|
|
|
26,949
|
|
|
|
|
|
|
|
70,596
|
|
- Supply chain
management services – third parties
|
|
|
326,650
|
|
|
|
351,793
|
|
|
|
472,425
|
|
|
|
460,630
|
|
Total
Revenue
|
|
|
59,839,647
|
|
|
|
1,942,411
|
|
|
|
89,421,904
|
|
|
|
3,148,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Commodity product
sales-related parties
|
|
|
(1,531,336)
|
|
|
|
(1,369,669)
|
|
|
|
(21,917,517)
|
|
|
|
(1,256,218)
|
|
- Commodity product
sales-third parties
|
|
|
(57,932,603)
|
|
|
|
(200,679)
|
|
|
|
(66,965,015)
|
|
|
|
(1,369,669)
|
|
- Supply chain
management services – related parties
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
- Supply chain
management services – third parties
|
|
|
(2,592)
|
|
|
|
(7,633)
|
|
|
|
(3,642)
|
|
|
|
(7,954)
|
|
Total cost of
revenue
|
|
|
(59,466,531)
|
|
|
|
(1,577,981)
|
|
|
|
(88,886,174)
|
|
|
|
(2,633,841)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
373,116
|
|
|
|
364,430
|
|
|
|
535,730
|
|
|
|
514,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
|
|
(2,054,354)
|
|
|
|
(439,128)
|
|
|
|
(3,624,733)
|
|
|
|
(740,825)
|
|
Total operating
cost and expenses
|
|
|
(2,054,354)
|
|
|
|
(439,128)
|
|
|
|
(3,624,733)
|
|
|
|
(740,825)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses), net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
2,946,236
|
|
|
|
1,804,743
|
|
|
|
5,045,093
|
|
|
|
1,884,923
|
|
Interest
expenses
|
|
|
(155,825)
|
|
|
|
(31,610)
|
|
|
|
(283,248)
|
|
|
|
(54,480)
|
|
Share-based payment
for service
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,695,042)
|
|
|
|
-
|
|
Amortization of
beneficial conversion feature relating to
issuance of convertible notes
|
|
|
-
|
|
|
|
(3,400,000)
|
|
|
|
-
|
|
|
|
(3,400,000)
|
|
Amortization of
relative fair value of warrants relating to issuance of convertible
notes
|
|
|
-
|
|
|
|
(3,060,000)
|
|
|
|
-
|
|
|
|
(3,060,000)
|
|
Other income
(expense), net
|
|
|
(379,924)
|
|
|
|
-
|
|
|
|
(386,358)
|
|
|
|
-
|
|
Total other income
(expenses), net
|
|
|
2,410,487
|
|
|
|
(4,686,867)
|
|
|
|
2,680,445
|
|
|
|
(4,629,557)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations before income taxes
|
|
|
729,249
|
|
|
|
(4,761,565)
|
|
|
|
(408,558)
|
|
|
|
(4,855,696)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
|
(371,393)
|
|
|
|
(408,829)
|
|
|
|
(771,862)
|
|
|
|
(408,829)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continued operations, net of tax
|
|
|
357,856
|
|
|
|
(5,170,394)
|
|
|
|
(1,180,420)
|
|
|
|
(5,264,525)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
discontinued operations, net of tax
|
|
|
-
|
|
|
|
(292,091)
|
|
|
|
-
|
|
|
|
(552,445)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
357,856
|
|
|
|
(5,462,485)
|
|
|
|
(1,180,420)
|
|
|
|
(5,816,970)
|
|
Less: Net loss
attributable to non-controlling interests
|
|
|
-
|
|
|
|
2,804
|
|
|
|
-
|
|
|
|
7,073
|
|
Net income (loss)
attributable to TD Holdings, Inc.'s Stockholders
|
|
$
|
357,856
|
|
|
|
(5,459,681)
|
|
|
|
(1,180,420)
|
|
|
|
(5,809,897)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
357,856
|
|
|
|
(5,462,485)
|
|
|
|
(1,180,420)
|
|
|
|
(5,816,970)
|
|
Foreign currency
translation adjustment
|
|
|
2,706,148
|
|
|
|
(85,670)
|
|
|
|
2,062,570
|
|
|
|
(87,972)
|
|
Comprehensive
income (loss)
|
|
|
3,064,004
|
|
|
|
(5,548,155)
|
|
|
|
882,150
|
|
|
|
(5,904,942)
|
|
Less: Total
comprehensive income - attributable to non-controlling
interests
|
|
|
-
|
|
|
|
2,804
|
|
|
|
-
|
|
|
|
7,073
|
|
Comprehensive income (loss) attributable to
TD Holdings, Inc.
|
|
$
|
3,064,064
|
|
|
|
(5,545,351)
|
|
|
|
882,150
|
|
|
|
(5,897,869)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) per
share - basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operation-
Income (loss) per share – Basic and diluted
|
|
|
(0.00)
|
|
|
|
(0.11)
|
|
|
|
(0.01)
|
|
|
|
(0.17)
|
|
Continuing Operation-
Income (loss) per share – Diluted
|
|
|
(0.00)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Discontinuing
Operation-Net loss per share –Basic and diluted
|
|
$
|
-
|
|
|
|
(0.01)
|
|
|
|
-
|
|
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding-Basic
|
|
|
96,821,039
|
|
|
|
47,486,210
|
|
|
|
95,025,014
|
|
|
|
30,579,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding- Diluted
|
|
|
102,312,155
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
TD HOLDINGS,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Expressed in U.S.
dollar)
|
|
|
|
For the Six Months
Ended
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(1,180,420)
|
|
|
|
(5,816,970)
|
|
Less: Net income
(loss) from discontinued operations
|
|
|
-
|
|
|
|
(552,445)
|
|
Net income (loss)
from continuing operations
|
|
|
-
|
|
|
|
(5,264,525)
|
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
|
|
1,895,871
|
|
|
|
-
|
|
Depreciation of fixed
assets
|
|
|
130
|
|
|
|
-
|
|
Amortization of
discount on convertible notes
|
|
|
163,333
|
|
|
|
-
|
|
Amortization of right
of use assets
|
|
|
-
|
|
|
|
146,890
|
|
Amortization of
beneficial conversion feature relating to issuance of convertible
notes
|
|
|
-
|
|
|
|
3,400,000
|
|
Amortization of
relative fair value of warrants relating to issuance of convertible
notes
|
|
|
-
|
|
|
|
3,060,000
|
|
Share-based payment
for service
|
|
|
1,695,042
|
|
|
|
-
|
|
Standstill fee
relating to convertible notes
|
|
|
356,934
|
|
|
|
-
|
|
Interest expense for
convertible notes
|
|
|
199,093
|
|
|
|
-
|
|
Deferred tax
liabilities
|
|
|
(411,736)
|
|
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Other current
assets
|
|
|
601,683
|
|
|
|
(138,596)
|
|
Account
receivables
|
|
|
(2,520)
|
|
|
|
(1,927,299)
|
|
Inventory
|
|
|
(882,764)
|
|
|
|
-
|
|
Prepayments
|
|
|
(5,108,162)
|
|
|
|
(2,843,373)
|
|
Advances from
customers
|
|
|
1,677,349
|
|
|
|
63,976
|
|
Accounts
payable
|
|
|
2,297,940
|
|
|
|
-
|
|
Due to related
parties
|
|
|
(5,518,273)
|
|
|
|
(300,549)
|
|
Due from related
parties
|
|
|
(457,032)
|
|
|
|
-
|
|
Income tax
payable
|
|
|
1,175,327
|
|
|
|
408,829
|
|
Other current
liabilities
|
|
|
(297,177)
|
|
|
|
820,815
|
|
Lease
liabilities
|
|
|
-
|
|
|
|
(166,242)
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
|
|
(3,789,382)
|
|
|
|
(2,740,074)
|
|
Net cash provided by
operating activities from discontinued operations
|
|
|
-
|
|
|
|
19,213
|
|
Net cash provided
by (used in) operating activities
|
|
|
(3,789,382)
|
|
|
|
(2,720,861)
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Purchases of
intangible assets
|
|
|
(5,100,490)
|
|
|
|
-
|
|
Purchases of fixed
assets
|
|
|
(2,332)
|
|
|
|
-
|
|
Final payment of
acquisition of a subsidiary
|
|
|
(15,533,312)
|
|
|
|
-
|
|
Payment made on loan
to related parties
|
|
|
(7,174,955)
|
|
|
|
-
|
|
Payment made on loans
to third parties
|
|
|
(45,057,871)
|
|
|
|
(78,559,027)
|
|
Collection of loans
from related parties
|
|
|
43,687,593
|
|
|
|
-
|
|
Collection of loans
from third parties
|
|
|
13,370,395
|
|
|
|
-
|
|
Net cash used in
investing activities from continuing operations
|
|
|
(15,810,972)
|
|
|
|
(78,559,027)
|
|
Net cash used in
investing activities from discontinued operations
|
|
|
-
|
|
|
|
(300,711)
|
|
Net cash used in
investing activities
|
|
|
(15,810,972)
|
|
|
|
(78,859,738)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock under ATM transaction
|
|
|
2,192,989
|
|
|
|
-
|
|
Proceeds from
issuance of common stock under private placement
transactions
|
|
|
24,450,000
|
|
|
|
13,500,000
|
|
Proceeds from
exercise of warrants
|
|
|
7,500
|
|
|
|
36,000,000
|
|
Proceeds from
issuance of convertible promissory notes
|
|
|
4,500,000
|
|
|
|
30,000,000
|
|
Proceeds from
borrowings from related parties
|
|
|
|
|
|
|
1,121,770
|
|
Proceeds from
borrowings from third parties
|
|
|
1,993,828
|
|
|
|
-
|
|
Repayments made
on loans to related parties
|
|
|
(550,930)
|
|
|
|
-
|
|
Payments made on
loans to third parties
|
|
|
(9,496,586)
|
|
|
|
-
|
|
Net cash
provided by financing activities from continuing
operations
|
|
|
23,096,801
|
|
|
|
80,621,770
|
|
Net cash used in
financing activities from discontinuing operations
|
|
|
-
|
|
|
|
(381,554)
|
|
Net cash provided
by financing activities
|
|
|
23,096,801
|
|
|
|
80,240,216
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
700,055
|
|
|
|
381,294
|
|
Net
increase/(decrease)in cash and cash equivalents
|
|
|
4,196,502
|
|
|
|
(959,089)
|
|
Cash at beginning of
period
|
|
|
2,700,013
|
|
|
|
2,446,683
|
|
Cash at end of
period
|
|
$
|
6,896,515
|
|
|
|
1,487,594
|
|
Less: Cash from
discontinued operations
|
|
|
-
|
|
|
|
84
|
|
Cash from
continuing operations
|
|
|
6,896,515
|
|
|
|
1,487,510
|
|
Supplemental Cash
Flow Information
|
|
|
|
|
|
|
|
|
Cash paid for
interest expense
|
|
|
-
|
|
|
|
-
|
|
Cash paid for income
tax
|
|
$
|
75,416
|
|
|
$
|
-
|
|
Supplemental
disclosure of Non-cash investing and financing
activities
|
|
|
|
|
|
|
|
|
Right-of-use assets
obtained in exchange for operating lease obligations
|
|
$
|
-
|
|
|
$
|
455,635
|
|
Issuance of common
stocks in connection with conversion of convertible
notes
|
|
$
|
-
|
|
|
$
|
30,000,000
|
|
Issuance of common
stocks in connection with private placements, net of issuance costs
with proceeds collected in advance in November 2019
|
|
$
|
-
|
|
|
$
|
1,600,000
|
|
Issuance of common
stocks in connection with warrant cashless exercise in March
2021
|
|
$
|
1,439,826
|
|
|
$
|
-
|
|
View original
content:https://www.prnewswire.com/news-releases/td-holdings-inc-reports-second-quarter-2021-financial-results-301357245.html
SOURCE TD Holdings, Inc.