Global Internet of People, Inc. (“SDH”, the “Company”, “we” or
“our”) (NASDAQ: SDH), today announced its unaudited financial
results for the six months ended June 30, 2021.
CEO Commentary
“We are grateful for the opportunity to serve
our clients and esteemed members,” commented Mr. Haiping Hu,
Chairman of the Board and Chief Executive Officer of SDH, “During
the first half of 2021, our revenue continued to be affected by the
Covid-19 pandemic, and as a result, our revenue was down by more
than 16% year-on-year, mainly because the hosting of major events
and activities was banned when reporting of newly infected cases
occurred. However, our revenues from sponsorship advertising
services grew by 44.2% to $1.7 million, because we were able to
organize smaller seminars that offered advertising and promotional
services, to hedge against the unpredictable and continuous impact
of the Covid-19 pandemic on our business operation. The revenue
from the sale of merchandises also grew by 70.4%, which was driven
by our live-streaming services that helped facilitate such sales.
Looking ahead, we intend to continue keeping abreast of industry
trends, supporting knowledge sharing resources and strengthening
our enterprise service capabilities, in order to meet the needs of
our existing and prospective clients, and lay the foundation for
sustainable growth in the future.”
Unaudited Financial Results for the Six
months Ended June 30, 2021
Revenue, net
For the six months ended June 30, 2021, net
revenue decreased by $1,064,505, or 16.36%, to $5,441,958, from
$6,506,463 for the same period of the prior fiscal year. The
decrease in revenue was mainly driven by the decrease of
comprehensive tailored services. Our revenues for the six months
ended June 30, 2021 and 2020 were derived from the following
sources:
|
|
For the Six Months Ended June 30, |
|
|
Change |
|
|
|
2021 |
|
|
% |
|
|
2020 |
|
|
% |
|
|
Amount |
|
|
% |
|
Member services |
|
$ |
217,374 |
|
|
|
3.99 |
|
|
$ |
491,806 |
|
|
|
7.56 |
|
|
$ |
(274,432 |
) |
|
|
(55.80 |
) |
Enterprise services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Comprehensive tailored services |
|
|
1,308,326 |
|
|
|
24.04 |
|
|
|
3,190,371 |
|
|
|
49.03 |
|
|
|
(1,882,045 |
) |
|
|
(58.99 |
) |
-Sponsorship advertising services |
|
|
1,732,402 |
|
|
|
31.83 |
|
|
|
1,201,415 |
|
|
|
18.47 |
|
|
|
530,987 |
|
|
|
44.20 |
|
-Consulting services |
|
|
64,641 |
|
|
|
1.19 |
|
|
|
199,198 |
|
|
|
3.06 |
|
|
|
(134,557 |
) |
|
|
(67.55 |
) |
Online services |
|
|
30,162 |
|
|
|
0.55 |
|
|
|
191,443 |
|
|
|
2.94 |
|
|
|
(161,281 |
) |
|
|
(84.24 |
) |
Sale of merchandises |
|
|
2,077,525 |
|
|
|
38.18 |
|
|
|
1,219,296 |
|
|
|
18.74 |
|
|
|
858,229 |
|
|
|
70.39 |
|
Other services |
|
|
11,528 |
|
|
|
0.22 |
|
|
|
12,934 |
|
|
|
0.20 |
|
|
|
(1,406 |
) |
|
|
(10.87 |
) |
Net revenues |
|
$ |
5,441,958 |
|
|
|
100.00 |
|
|
$ |
6,506,463 |
|
|
|
100.00 |
|
|
$ |
(1,064,505 |
) |
|
|
(16.36 |
) |
Revenues from member services
The Company offers three tiers of membership
services, Platinum, Diamond and Protégé, which differ in membership
fees as well as the level of the services provided. Members pay a
fixed fee for rights to participate in seven activities, including
study tours and forums, within a one-year membership period.
Revenues from member services decreased by
$274,432, or 55.80%, from $491,806 for the six months ended June
30, 2020, to $217,374 for the six months ended June 30, 2021,
primarily because we were prevented from offering large offline
activities since the outbreak of COVID-19, which resulted in a
decreased demand for member services.
Revenues from comprehensive tailored
services Revenues from comprehensive tailored services
decreased by $1,882,045, or 58.99%, from $3,190,371 for the six
months ended June 30, 2020, to $1,308,326 for the six months ended
June 30, 2021. With the continuous control of gatherings in 2021,
the demand of comprehensive tailored services for large conference
and salon organization decreased.
Revenues from sponsorship advertising services
Sponsorship advertising is a special form of
advertising, generally referring to a publicity strategy adopted by
enterprises in order to enhance their corporate and product image,
as well as brand awareness and influence. We provide sponsorship
advertising services for our enterprise clients at events we hold,
such as forums and study tours.
Revenues from sponsorship advertising services
increased by $530,987, or 44.20%, from $1,201,415 for the six
months ended June 30, 2020, to $1,732,402 for the six months ended
June 30, 2021, due to the fact that we held more small conferences
with sponsorship advertising in the first half of
2021. Revenues from consulting services
We provide consulting services to small and
medium-sized enterprises to develop strategies and solutions for
the following: corporate reorganization, product promotion and
marketing, industry supply chain integration, corporate governance,
financing and capital structure, etc. Revenues from consulting
services decreased by $134,557, or 67.55%, from $199,198 for the
six months ended June 30, 2020, to $64,641 for the six months ended
June 30, 2021, primarily because the continuous government
restrictions due to the Covid-19 pandemic negatively impacted the
demand for our consulting services.
Revenues from online services
Revenue from online services decreased by
$161,281, or 84.24%, from $191,443 for the six months ended June
30, 2020 to $30,162 for the six months ended June 30, 2021,
primarily because we offered more free streaming content to attract
potential clients.
Revenues from sale of merchandises
Our revenues from sale of merchandises for the
six months ended June 30, 2021 was mainly generated from sale of
electrolytic copper. Revenues from sale of merchandises increased
by $858,229, or 70.39%, from $1,219,296 for the six months ended
June 30, 2020, to $2,077,525 for the six months ended June 30,
2021, primarily because we organized more small trade conferences
facilitating the sales of merchandises in the first half of
2021.
Costs and operating
expenses Service costs
Our service costs primarily include (1) the cost
of holding activities, such as venue rental fees, conference
equipment fees, (2) professional and consulting fees paid to third
parties for our activities; (3) the fees paid to mentors and
experts; (4) labor costs; and (5) the amortization of costs
associated with copyright maintenance.
Service costs of $708,719, increased by $74,405,
or 11.73%, for the six months ended June 30, 2021, compared to same
period in 2020 of $634,314, mainly due to the increase of $53,427
in labor costs. Due to the impact of COVID-19, for the six months
ended June 30, 2021, we transformed our strategy from holding large
conferences to holding smaller conferences and salons, which
necessitated higher labor costs.
Cost of goods sold
Cost of goods sold were $2,050,253 and $749,485
for the six months ended June 30, 2021 and 2020, respectively. The
significant increase of the cost of goods sold was due to the sale
of electrolytic copper, which incurred cost of goods sold of
$1,994,058 in the first half of 2021.
Selling expenses
Our selling expenses decreased by $59,635, or
12.54%, from $475,496 for the six months ended June 30, 2020 to
$415,861 for the six months ended June 30, 2021. The decrease in
our selling expenses for the six months ended June 30, 2021 was
primarily attributable to a $214,275 decrease in salaries and
bonuses, which was partially offset by the increase of labor costs
of $145,845. We outsourced more services and paid fewer bonuses to
sales staff, as we had significantly less offline activities for
the six months ended June 30, 2021 as compared to the same period
in 2020.
General and administrative expenses
Our general and administrative expenses
increased by $566,839, or 30.29%, from $1,871,146 for the six
months ended June 30, 2020 to $2,437,985 for the six months ended
June 30, 2021. Such increase was primarily due to an increase in
professional fees of $416,085 and welfare expense of $85,470. In
order to meet our public company reporting and corporate governance
requirements associated with being a public company, our
professional fees increased in the first half of 2021.
Research and development expenses (“R&D
expenses”)
Research and development expenses for our mobile
application, the APP, increased by $608,341, or 139.90%, from
$434,836 for the six months ended June 30, 2020 to $1,043,177 for
the six months ended June 30, 2021, primarily because we hired more
personnel to upgrade the APP to meet users’ needs.
Other (expenses) income,
net
Total net other income for the six months ended
June 30, 2020 and net other expenses for the six months ended June
30, 2021 were $148,889 and $774,732, respectively. The total net
other expenses for the six months ended June 30, 2021 was primarily
due to investment losses of overseas investment funds of $919,404
recognized for such period, while investment income of $8,563 was
recognized for the six months ended June 30, 2020.
Income taxes (benefit)
provision
Our income tax benefits for the six months ended
June 30, 2021 and income tax provisions for the six months ended
June 30, 2020 were $547,357 and $271,220, respectively. The income
tax benefits for the six months ended June 30, 2021 were primarily
generated by the taxable loss for the six months ended June 30,
2021.
Net loss (income)
As a result of the foregoing, we reported a net
loss of $1,441,412 for the six months ended June 30, 2021, as
compared to a net income of $2,218,855 for the six months ended
June 30, 2020.
(Losses) earnings per share-basic and
diluted
Loss per share attributable to controlling
shareholders was $0.06 per basic and diluted share, for the six
months ended June 30, 2021, compared to earnings per share of $0.14
per basic and diluted share, for the same period of the prior
fiscal year.
Weighted average number of shares outstanding
was 22,767,733 for the six months ended June 30, 2021, compared to
16,800,000 for the same period of last fiscal year.
Financial Condition
As of June 30, 2021, cash and cash
equivalents totaled $21.03 million, compared to $10.97
million as of December 31, 2020.
Net accounts receivable
was $12.87 million as of June 30, 2021, compared
to $12.22 million as of December 31, 2020.
Inventories were $2.64 million as of June 30, 2021,
compared to $2.71 million as of December 31, 2020.
Short-term investment was $7.08 million as of June 30,
2021, compared to $nil as of December 31, 2020.
As of June 30, 2021, total current assets and
current liabilities were $49.98 million
and $2.63 million, respectively, leading to a current
ratio of 18.99. As of December 31, 2020, total current assets
and current liabilities were $28.26
million and $5.58 million, respectively, leading to a
current ratio of 5.06.
Cash Flow
Net cash outflow from operating activities in
the first six months of 2021 was $7.5 million. Net cash outflow
from investing activities of $9.34 million in the first half of
2021 was mainly due to the purchase of short-term investments of
$8.0 million, and purchase of long-term investments of $1.24
million. Net cash inflow from financing activities in the first
half of 2021 was $27.5 million, representing issuance of common
stocks in connection with our initial public offering, net of
issuance cost.
Net cash inflow from operating activities in the
first six months of 2020 was $0.4 million for the six months ended
June 30, 2020. Net cash outflow from investing activities in the
first half of 2020 was $4.1 million for the six months ended June
30, 2020, due to purchase of property and equipment and intangible
assets of $4.1 million. Net cash inflow from financing activities
in the first half of 2020 was $0.1 million, representing capital
contributions from the controlling shareholders.
About Global Internet of People,
Inc.
Headquartered in Beijing and Shanghai, Global
Internet of People, Inc. operates knowledge sharing and enterprise
service platforms, 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 SDH offers to App users are (1)
Questions and Answers Sessions and (2) streaming of audio and video
courses and programs. The offline services SDH offers to its
members are study tours and forums. For more information about the
Company, please visit: www.sdh365.com.
Forward-looking statement
The 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,
and the related risks and assumptions disclosed in the Company's
filings with the U.S. Securities and Exchange Commission (the
"SEC"). We urge investors to visit the SEC website to review the
Company's relevant disclosures that may affect the Company's future
operating results. All information provided in this press release
is as of the date of this press release, and the Company undertakes
no obligation to update any forward-looking statements, except as
may be required under applicable law.
For more information, please
contact:
The Company:IR DepartmentEmail:
IR@sdh365.com
Investor Relations:Janice
Wang EverGreen
Consulting Inc.Email: IR@changqingconsulting.comPhone: +1
571-464-9470 (from U.S.)+86 13811768559 (from China)
|
GLOBAL INTERNET OF PEOPLE, INC. |
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In
U.S. dollars except for number of shares) |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
(Audited) |
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
21,029,237 |
|
|
10,966,012 |
|
Accounts receivable, net |
|
12,874,972 |
|
|
12,218,473 |
|
Inventories |
|
2,635,872 |
|
|
2,706,896 |
|
Due from related parties |
|
80,131 |
|
|
172,730 |
|
Short-term investment, net |
|
7,080,596 |
|
|
- |
|
Prepaid expenses and other current assets, net |
|
5,580,325 |
|
|
2,193,494 |
|
Total current assets |
|
49,281,133 |
|
|
28,257,605 |
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Restricted cash |
|
700,000 |
|
|
- |
|
Property and equipment, net |
|
3,422,869 |
|
|
3,397,273 |
|
Intangible assets, net |
|
3,942,446 |
|
|
4,293,813 |
|
Long-term investments, net |
|
4,347,397 |
|
|
3,085,247 |
|
Operating lease right-of-use assets |
|
313,363 |
|
|
100,099 |
|
Deferred tax assets, net |
|
1,302,079 |
|
|
602,806 |
|
Total non-current assets |
|
14,028,154 |
|
|
11,479,238 |
|
|
|
|
|
|
|
|
Total assets |
|
63,309,287 |
|
|
39,736,843 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
53,638 |
|
|
33,697 |
|
Deferred revenue |
|
309,756 |
|
|
250,309 |
|
Income tax payable |
|
1,772,937 |
|
|
4,706,972 |
|
Operating lease liabilities, current |
|
151,382 |
|
|
63,301 |
|
Accrued expenses and other current liabilities |
|
344,883 |
|
|
529,184 |
|
Total current liabilities |
|
2,632,596 |
|
|
5,583,463 |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Operating lease liabilities, non-current |
|
78,462 |
|
|
3,196 |
|
Total non-current liabilities |
|
78,462 |
|
|
3,196 |
|
|
|
|
|
|
|
|
Total liabilities |
|
2,711,058 |
|
|
5,586,659 |
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
Ordinary shares (par value of $0.001 per share; 16,800,000 shares
authorized as of December 31, 2020; 24,528,000 shares issued and
outstanding as of June 30, 2021, respectively) |
|
2,453 |
|
|
1,680 |
|
Additional paid-in capital |
|
32,018,153 |
|
|
4,462,177 |
|
Statutory reserve |
|
2,593,070 |
|
|
2,473,797 |
|
Retained earnings |
|
24,153,173 |
|
|
25,663,240 |
|
Accumulated other comprehensive income |
|
1,768,598 |
|
|
1,438,140 |
|
Total Global Internet of People, Inc.’s shareholders’
equity |
|
60,535,447 |
|
|
34,039,034 |
|
Non-controlling interests |
|
62,782 |
|
|
111,150 |
|
Total equity |
|
60,598,229 |
|
|
34,150,184 |
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
63,309,287 |
|
|
39,736,843 |
|
|
|
|
|
|
|
|
GLOBAL INTERNET OF PEOPLE, INC. |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE (LOSS) INCOME(In U.S. dollars except
for number of shares) |
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, net |
|
|
5,441,958 |
|
|
|
6,506,463 |
|
|
|
|
|
|
|
|
|
|
Costs and operating expenses |
|
|
|
|
|
|
|
|
Service costs |
|
|
708,719 |
|
|
|
634,314 |
|
Cost of goods sold |
|
|
2,050,253 |
|
|
|
749,485 |
|
Selling expenses |
|
|
415,861 |
|
|
|
475,496 |
|
General and administrative expenses |
|
|
2,437,985 |
|
|
|
1,871,146 |
|
Research and development expenses |
|
|
1,043,177 |
|
|
|
434,836 |
|
Total costs and operating expenses |
|
|
6,655,995 |
|
|
|
4,165,277 |
|
|
|
|
|
|
|
|
|
|
(Loss) profit from operations |
|
|
(1,214,037 |
) |
|
|
2,341,186 |
|
|
|
|
|
|
|
|
|
|
Other (expenses) income |
|
|
|
|
|
|
|
|
Investment (losses) gains |
|
|
(926,560 |
) |
|
|
8,563 |
|
Interest income |
|
|
17,808 |
|
|
|
129,549 |
|
Other income, net |
|
|
134,020 |
|
|
|
10,777 |
|
Total other (expenses) income, net |
|
|
(774,732 |
) |
|
|
148,889 |
|
|
|
|
|
|
|
|
|
|
(Losses) profit before income taxes |
|
|
(1,988,769 |
) |
|
|
2,490,075 |
|
|
|
|
|
|
|
|
|
|
Income taxes (benefit) provision |
|
|
(547,357 |
) |
|
|
271,220 |
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
|
(1,441,412 |
) |
|
|
2,218,855 |
|
Less: net loss attributable to non-controlling interests |
|
|
(50,618 |
) |
|
|
(73,099 |
) |
Net (loss) income |
|
|
(1,390,794 |
) |
|
|
2,291,954 |
|
|
|
|
|
|
|
|
|
|
Other comprehensive (loss) income |
|
|
|
|
|
|
|
|
Total foreign currency translation adjustment |
|
|
332,708 |
|
|
|
(306,674 |
) |
Total comprehensive (loss) income |
|
|
(1,108,704 |
) |
|
|
1,912,181 |
|
Less: Comprehensive loss attributable to non-controlling
interests |
|
|
(8,818 |
) |
|
|
(73,875 |
) |
Comprehensive (loss) income attributable to controlling
shareholders |
|
|
(1,099,886 |
) |
|
|
1,986,056 |
|
|
|
|
|
|
|
|
|
|
(Losses) earnings per share |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
(0.06 |
) |
|
|
0.14 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
22,767,733 |
|
|
|
16,800,000 |
|
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