Global Internet of People, Inc. (“SDH” or the “Company”) (NASDAQ:
SDH), today announced its financial results for the fiscal year
ended December 31, 2021.
|
For fiscal years ended December 31 |
($ millions, except per share
data, differences due to rounding) |
|
2021 |
|
|
|
2020 |
|
% Change |
Net Revenues |
$ |
7.41 |
|
|
$ |
23.18 |
|
(68.03 |
%) |
Total costs and operating
expenses |
$ |
14.82 |
|
|
$ |
8.46 |
|
75.18 |
% |
(Loss) profit from operation |
$ |
(7.41 |
) |
|
$ |
14.73 |
|
(150.31 |
%) |
Net (loss) income attributable to
controlling shareholders |
$ |
(8.40 |
) |
|
$ |
12.09 |
|
(169.48 |
%) |
(Loss) earnings per share – Basic
and Diluted |
$ |
(0.36 |
) |
|
$ |
0.72 |
|
(149.41 |
%) |
|
|
|
|
|
|
|
|
|
|
Mr. Haiping Hu, Chairman of the Board of the Directors and CEO
of SDH, commented: “During fiscal year 2021, our operations
continued to be affected by the Covid-19 pandemic, as the hosting
of large-scale events and activities was banned due to government
restrictions in China. In order to mitigate the negative impact of
the Covid-19 pandemic on our business, we managed to hold more
small forums and salons to provide consulting services and
facilitated sales of merchandises. As a result, our net revenues
decreased by 68.03% compared to that of fiscal year 2020, and the
Company also reported a net loss attributable to controlling
shareholders of $8.40 million for fiscal year 2021, as compared to
a net income of $12.09 million for fiscal year 2020, but our
revenues from consulting services and sales of merchandises grew by
over 280% and 40%, respectively, from a year earlier.”
“Meanwhile, we are also pursuing a major growth strategy to
enter into the new energy material market. We have formed a joint
venture with a number of parties, for the production of high-grade
lithium-ion power battery anode materials. The clean energy
initiatives around the world has led to rapid development of new
energy vehicles and a huge increase in the demand for lithium-ion
batteries. We believe that the new energy material market in
general and the production of lithium-iron power battery anode
materials have significant growth potential. We are very excited
about this growth opportunity and hope it will bring great returns
for our shareholders.”
Ms. Chao Liu, CFO of SDH, commented: “in fiscal year 2021, our
knowledge sharing and enterprise service operation continued to be
impacted by the Covid-19 pandemic. Although we expect the negative
impact of Covid-19 pandemic on our business will continue in fiscal
year 2022, we are currently executing a strategic plan to expand
our business into the new energy material market, which is expected
to diversify our business and create great growth for our company
in the future.”
Fiscal Year 2021 Financial Results
Revenue
Revenues for the year ended December 31, 2021 and 2020 were
derived from the following sources:
|
|
For the year ended December 31, |
|
($ millions, differences due to rounding) |
|
2021 |
|
|
% |
|
|
2020 |
|
|
% |
|
|
Change |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Member services |
|
$ |
0.50 |
|
|
|
6.73 |
% |
|
$ |
0.87 |
|
|
|
3.76 |
% |
|
$ |
(0.37 |
) |
|
|
(42.89 |
)% |
Enterprise
service |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Comprehensive tailored
services |
|
|
1.44 |
|
|
|
19.35 |
% |
|
|
13.35 |
|
|
|
57.57 |
% |
|
|
(11.91 |
) |
|
|
(89.26 |
)% |
-Sponsorship advertising
services |
|
|
1.73 |
|
|
|
23.41 |
% |
|
|
6.60 |
|
|
|
28.47 |
% |
|
|
(4.87 |
) |
|
|
(73.72 |
)% |
-Consulting services |
|
|
1.58 |
|
|
|
21.37 |
% |
|
|
0.42 |
|
|
|
1.80 |
% |
|
|
1.16 |
|
|
|
280.09 |
% |
Online
services |
|
|
0.04 |
|
|
|
0.55 |
% |
|
|
0.36 |
|
|
|
1.56 |
% |
|
|
(0.32 |
) |
|
|
(88.84 |
)% |
Sales of
merchandises |
|
|
2.11 |
|
|
|
28.41 |
% |
|
|
1.50 |
|
|
|
6.45 |
% |
|
|
0.61 |
|
|
|
40.75 |
% |
Other
services |
|
|
0.01 |
|
|
|
0.18 |
% |
|
|
0.09 |
|
|
|
0.39 |
% |
|
|
(0.08 |
) |
|
|
(84.50 |
)% |
Revenues,
net |
|
$ |
7.41 |
|
|
|
100.00 |
% |
|
$ |
23.19 |
|
|
|
100.00 |
% |
|
$ |
(15.78 |
) |
|
|
(68.04 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our revenues decreased by $15.78 million, or 68.04%, from $23.19
million for the year ended December 31, 2020, to $7.41 million for
the year ended December 31, 2021. Revenues from member services
accounted for 6.73% of our net revenues in year ended December 31,
2021, as compared to 3.76% in year ended December 31, 2020.
Revenue from enterprise services accounted for 64.13% and 87.84%
of our net revenues for the years ended December 31, 2021 and 2020,
respectively. Revenue from sales of merchandises accounted for
28.41% and 6.45% of our net revenues for the years ended December
31, 2021 and 2020, respectively.
Revenues from member services decreased by
$0.37 million, or 42.89%, from $0.87 million for the year ended
December 31, 2020, to $0.50 million for the year ended December 31,
2021. Due to the government restrictions to prevent the further
spread of COVID-19, we were prevented from offering large offline
activities, which resulted in a decreased demand for member
services.
Revenues from comprehensive tailored services
decreased by $11.91 million, or 89.26%, from $13.35 million for the
year ended December 31, 2020, to $1.44 million for the year ended
December 31, 2021. Due to the Covid-19 pandemic, the demand of
comprehensive tailored services for large conference and salon
organization decreased.
Revenues from sponsorship advertising services
decreased by $4.87 million, or 73.72% from $6.60 million for the
year ended December 31, 2020, to $1.73 million for the year ended
December 31, 2021, primarily due to the fact that offline forums
and study tours were generally canceled because of the government
restrictions on public gatherings.
Revenues from consulting services increased by
$1.16 million, or 280.09% from $0.42 million for the year ended
December 31, 2020, to $1.58 million for the year ended December 31,
2021, primarily due to the fact that we managed to hold more small
forums and salons to provide consulting services instead of large
conferences.
Revenue from online services decreased by $0.32
million, or 88.84% from $0.36 million for the year ended December
31, 2020 to $0.04 million for the year ended December 31, 2021. The
decrease was primarily because we offered more free streaming
content to attract existing potential clients.
Revenues from sales of merchandises increased
by $0.61 million, or 40.75% from $1.50 million for the year ended
December 31, 2020 to $2.11 million for the year ended December 31,
2021. The increase was primarily due to the fact that we organized
more small trade conferences facilitating the sales of
merchandises.
The decrease in our revenues was primarily attributable to the
decrease in the revenue generated from comprehensive tailored
services, sponsorship advertising services, member services, which
was partially offset by the increase of revenue from consulting
services and sales of merchandises.
Costs and operating expenses
Costs and operating expenses are consisted of service costs,
cost of goods sold, selling expenses, general and administrative
expenses and research and development expenses.
Service costs decreased by $0.27 million or
12.65% from $2.09 million for the year ended December 31, 2020 to
$1.82 million for the year ended December 31, 2021. The decrease
was mainly due to cost control for outsource expenses and decrease
in video maintenance service fee, which was partially offset by
increase in conference cost as the Company held more small
conferences. Cost of goods sold were $2.06 million
and $0.89 million for the years ended December 31, 2021 and 2020,
respectively. The significant increase of the cost of goods sold
was due to a sale of electrolytic copper, which incurred cost of
goods sold of $2.00 million.
Selling expenses Selling was $0.95 million for
the year ended December 31, 2021, which remained stable compared
with $0.91 million for the year ended December 31, 2020.
General and administrative expenses increased
by $3.93 million or 101.03%, from $3.90 million for the year ended
December 31, 2020 to $7.83 for the year ended December 31, 2021.
The increase was mainly due to increase in bad debt expenses that
were led by a slow-down in collection of accounts receivable during
the Covid-19 pandemic. Other fees such as directors’ and officers’
liability insurance, training consulting fee, lawyer fee,
independent director fee and other miscellaneous service fee also
increased for the year ended December 31, 2021.
In order to meet public company reporting and corporate
governance requirements to meet all of the demands associated with
being a public company, audit fee, management insurance and
miscellaneous service fee, including training and general
consulting services, too, increased for the year ended December 31,
2021.
Research and development expenses for our
mobile application, the APP, increased by $1.48 million or 220.50%
from $0.67 million for the year ended December 31, 2020 to $2.15
million for the year ended December 31, 2021, primarily due to the
fact that we hired more personnel to maintain the APP to meet our
Users’ increasing need.
Other expenses (income), net
Total net other expenses were $1.54 million for the year ended
December 31, 2021, and the net other income was $0.29 million for
the year ended December 31, 2020. The net other expenses for the
year ended December 31, 2021 was primarily consisted of the
investment loss of $2.12 million, which was mainly attributed by
the investment loss in a trust fund of $2.04 million, and partially
offsetting by the government subsidies received amounted to $0.41
million. Total net other income for the year ended December 31,
2020 was primarily consisted of interest income of $0.21
million.
Income taxes provision
The PRC income taxes benefit was $0.24 million for the year
ended December 31, 2021, primarily generated by the annual taxable
loss. The income tax provision was $3.05 million for the year ended
December 31, 2020.
Net loss (income) attributable to the Company
Net loss attributable to the Company was $8.40 million for the
year ended December 31, 2021, and net income was $12.09 million for
the year ended December 31, 2020.
Basic and diluted (loss) earnings per share
Basic and diluted loss per share were $0.36 in 2021, compared to
earnings per share of $0.72 in the same period of 2020.
Cash and cash equivalents
As of December 31, 2021, our cash and cash equivalents amounted
to $13.92 million as compared to $10.97 million and $9.44 million
as of December 31, 2020 and 2019.
Working capital
As of December 31, 2021 and December 31, 2020, our working
capital was $32.62 million and $22.67 million, respectively.
Recent Development
On April 2, 2022, SDH announced that Zhuhai (Zibo) Investment
Co., Ltd., a wholly-owned subsidiary of SDH, entered into an
investment agreement (the “Agreement”) with other parties to form a
joint venture dedicated to the production of high-grade lithium-ion
power battery anode materials.
On April 1, 2022, SDH announced it held an extraordinary general
meeting of shareholders on April 1, 2022, and the the shareholders
voted to approve the proposal to 1) form a joint venture by the
Company, Guizhou Yilong District Industrial Development Investment
Co., Ltd., and certain other entities and individuals, for the
purposes of producing anode materials for lithium-ion batteries
(the “Joint Venture”); and 2) the entry into an investment
agreement in connection with the formation of the Joint
Venture.
About Global Internet of People, Inc.
Headquartered in Beijing and Shanghai, Global Internet of
People, Inc., through its China-based variable interest entity,
operates an online knowledge sharing and enterprise service
platform, both online, via a mobile application “Shidonghui App”
(the “APP”), and offline, through local offices in Beijing,
Shanghai and Hangzhou, as well as 51 local centers operated by some
of the Company’s members in 35 cities throughout the PRC. The main
services The Company offers to App users are (1) Questions and
Answers Sessions and (2) streaming of audio and video courses and
programs. The main offline services the Company offers to its
members are study tours and forums. The Company also offers
enterprise services, including comprehensive tailored services,
Sponsorship advertising services, and Consulting services, to small
and medium-sized enterprises in China. In 2022, the Company started
pursuing its new strategic plan to enter into the new energy
material market. For more information about the Company, please
visit: www.sdh365.com.
Forward-looking statement
Certain statements in this press release regarding the Company's
future expectations, plans and prospects constitute forward-looking
statements as defined by Private Securities Litigation Reform Act
of 1995. Forward-looking statements include statements about plans,
goals, objectives, strategies, future events, expected results,
assumptions and any other factual statements that have not
occurred. Any words that refer to "may", "will", "want", "should",
"believe", "expect", "expect", "estimate", "estimate" or similar
non-factual words, shall be regarded as forward-looking statements.
Due to various factors, the actual results may differ materially
from the historical results or the contents expressed in these
forward-looking statements. These factors include, but are not
limited to, the company's strategic objectives, the company's
future plans, market demand and user acceptance of the company's
products or services, technological updates, economic trends, the
company's reputation and brand, the impact of industry competition
and bidding, relevant policies and regulations, the ups and downs
of China's macroeconomic conditions, the international market
conditions served by the company, and the related risks and
assumptions disclosed in the prospectus. In view of the above and
other related reasons, we advise investors not to blindly rely on
these forward-looking statements, and we urge investors to visit
the SEC website to consult the company's relevant documents for
other factors that may affect the company's future operating
results. The company is under no obligation to make public
amendments to changes in these forward-looking statements due to
specific events or reasons after the declaration of these
documents.
For more information, please contact:The Company:IR
DepartmentEmail: IR@sdh365.com
Investor Relations:Janice Wang, Managing PartnerEverGreen
Consulting Inc.Email: IR@changqingconsulting.comPhone: +1
571-464-9470 (from U.S.)
+86 13811768559 (from China)
GLOBAL INTERNET OF PEOPLE,
INC.CONSOLIDATED BALANCE SHEETS
|
|
As of December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
13,916,155 |
|
|
$ |
10,966,012 |
|
Accounts receivable, net |
|
|
6,861,672 |
|
|
|
12,218,473 |
|
Inventories |
|
|
3,105,673 |
|
|
|
2,706,896 |
|
Due from related parties |
|
|
65,278 |
|
|
|
172,730 |
|
Short-term investment |
|
|
5,961,605 |
|
|
|
- |
|
Prepaid expenses and other current assets |
|
|
4,435,175 |
|
|
|
2,193,494 |
|
TOTAL CURRENT ASSETS |
|
|
34,345,558 |
|
|
|
28,257,605 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
|
Restricted cash |
|
|
700,060 |
|
|
|
- |
|
Long term prepayments and other non-current assets |
|
|
10,244,917 |
|
|
|
- |
|
Property and equipment, net |
|
|
3,351,321 |
|
|
|
3,397,273 |
|
Intangible assets, net |
|
|
3,594,977 |
|
|
|
4,293,813 |
|
Long-term investments |
|
|
5,381,441 |
|
|
|
3,085,247 |
|
Operating lease right-of-use assets |
|
|
224,773 |
|
|
|
100,099 |
|
Deferred tax assets |
|
|
852,037 |
|
|
|
602,806 |
|
TOTAL NON-CURRENT ASSETS |
|
|
24,349,526 |
|
|
|
11,479,238 |
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
58,695,084 |
|
|
|
39,736,843 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
34,486 |
|
|
|
33,697 |
|
Deferred revenue |
|
|
179,407 |
|
|
|
250,309 |
|
Income taxes payable |
|
|
1,076,518 |
|
|
|
4,706,972 |
|
Operating lease liabilities, current |
|
|
99,569 |
|
|
|
63,301 |
|
Accrued expenses and other current liabilities |
|
|
330,902 |
|
|
|
529,184 |
|
TOTAL CURRENT LIABILITIES |
|
|
1,720,882 |
|
|
|
5,583,463 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Operating lease liabilities, non-current |
|
|
- |
|
|
|
3,196 |
|
TOTAL NON-CURRENT LIABILITIES |
|
|
- |
|
|
|
3,196 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITES |
|
|
1,720,882 |
|
|
|
5,586,659 |
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
Ordinary shares (500,000,000 shares authorized; $0.0001 par value,
24,528,000 shares issued and outstanding as of December 31, 2021;
16,800,000 shares issued and outstanding as of December 31,
2020) |
|
|
2,453 |
|
|
|
1,680 |
|
Additional paid-in capital |
|
|
31,966,816 |
|
|
|
4,462,177 |
|
Statutory reserves |
|
|
2,473,801 |
|
|
|
2,473,797 |
|
Retained earnings |
|
|
17,259,976 |
|
|
|
25,663,240 |
|
Accumulated other comprehensive income |
|
|
2,148,906 |
|
|
|
1,438,140 |
|
Total shareholders’ equity attributable to controlling
shareholders |
|
|
53,851,952 |
|
|
|
34,039,034 |
|
Non-controlling interests |
|
|
3,122,250 |
|
|
|
111,150 |
|
TOTAL EQUITY |
|
|
56,974,202 |
|
|
|
34,150,184 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
58,695,084 |
|
|
$ |
39,736,843 |
|
GLOBAL INTERNET OF PEOPLE,
INC.CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
|
|
For the years endedDecember
31, |
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
REVENUE, NET |
|
$ |
7,409,272 |
|
|
$ |
23,181,084 |
|
|
$ |
17,925,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND OPERATING
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
Service costs |
|
|
1,823,358 |
|
|
|
2,087,425 |
|
|
|
2,109,649 |
|
Cost of goods sold |
|
|
2,063,296 |
|
|
|
892,791 |
|
|
|
- |
|
Selling expenses |
|
|
946,775 |
|
|
|
906,456 |
|
|
|
1,350,894 |
|
General and administrative expenses |
|
|
7,834,291 |
|
|
|
3,897,040 |
|
|
|
2,897,079 |
|
Research and development expenses |
|
|
2,151,565 |
|
|
|
671,312 |
|
|
|
795,540 |
|
Total costs and operating expenses |
|
|
14,819,285 |
|
|
|
8,455,024 |
|
|
|
7,153,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) PROFIT FROM
OPERATIONS |
|
|
(7,410,013 |
) |
|
|
14,726,060 |
|
|
|
10,772,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSES)
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
Investment losses |
|
|
(2,118,453 |
) |
|
|
(1,087 |
) |
|
|
(23,799 |
) |
Interest income |
|
|
173,173 |
|
|
|
214,460 |
|
|
|
212,285 |
|
Other income, net |
|
|
404,380 |
|
|
|
72,837 |
|
|
|
9,069 |
|
Total other (expenses) income |
|
|
(1,540,900 |
) |
|
|
286,210 |
|
|
|
197,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) PROFIT BEFORE
INCOME TAXES |
|
|
(8,950,913 |
) |
|
|
15,012,270 |
|
|
|
10,969,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (benefit)
provision |
|
|
(236,581 |
) |
|
|
3,054,983 |
|
|
|
1,589,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME |
|
|
(8,714,332 |
) |
|
|
11,957,287 |
|
|
|
9,380,768 |
|
Less: net loss attributable to non-controlling interests |
|
|
(311,072 |
) |
|
|
(130,240 |
) |
|
|
(365,617 |
) |
NET (LOSS) INCOME
ATTRIBUTABLE TO CONTROLLING SHAREHOLDERS |
|
$ |
(8,403,260 |
) |
|
$ |
12,087,527 |
|
|
|
9,746,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
700,316 |
|
|
|
2,076,303 |
|
|
|
(283,074 |
) |
TOTAL COMPREHENSIVE
(LOSS) INCOME |
|
|
(8,014,016 |
) |
|
|
14,033,590 |
|
|
|
9,097,694 |
|
Less: comprehensive loss
attributable to non-controlling interest |
|
|
(321,522 |
) |
|
|
(91,862 |
) |
|
|
(366,392 |
) |
COMPREHENSIVE (LOSS)
INCOME ATTRIBUTABLE TO CONTROLLING SHAREHOLDERS |
|
$ |
(7,692,494 |
) |
|
$ |
14,125,452 |
|
|
|
9,464,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS PER
SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.36 |
) |
|
$ |
0.72 |
|
|
$ |
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted * |
|
|
23,638,751 |
|
|
|
16,800,000 |
|
|
|
16,800,000 |
|
Global Internet of People (NASDAQ:SDH)
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From Mar 2024 to Apr 2024
Global Internet of People (NASDAQ:SDH)
Historical Stock Chart
From Apr 2023 to Apr 2024