BEIJING, May 29, 2020 /PRNewswire/ -- TD Holdings, Inc.
(Nasdaq: GLG) (the "Company")
(Formerly known as Bat Group, Inc.), a used luxurious car rental
and commodities trading service provider in China today announced its financial results
for the fiscal year ended December 31,
2019.
The Company began to operate its current used luxurious car
leasing business in China, after
it disposed its direct loans, loan guarantees and financial leasing
services in July 2018, and began to
operate commodities trading business in China in November
2019. In January 2020, we
changed the Company's name to TD Holdings, Inc., which better
represents our current focus on the new commodities trading
business. The letter "T" in the name representing Chinese character
for "Bronze," indicating the Company's focus on the commodities
trading business, and particularly on the trading of nonferrous
metals such as bronze as the main direction of the Company's
business in the future.
Mrs. Renmei Ouyang, the Chief
Executive Officer of the Company, stated, "We are pleased to report
our financial results for fiscal year 2019. We started our
commodity trading business in late 2019. The turnover of
China's commodity market has shown
a rapid upward trend, and I believe that entering into the
commodity trading business will bolster the Company's income and
increase shareholder value. We will focus on non-ferrous metal
commodities such as aluminum, copper, silver, and gold. We strive
to become an emerging platform in the non-ferrous metal e-commerce
industry by offering all participants in the non-ferrous metal
e-commerce industry a seamless, one-stop transaction
experience."
Fiscal Year 2019 Financial Highlights
- Income from commodities trading business was $0.66 million, consisting of $0.10 million from sales of commodities products,
and $0.56 million from supply chain
management services; Income from operating lease reached
$1.83 million, compared with
$0.49 million for the fiscal year
2018, representing an increase of $1.34
million or 275%.
- Net loss from continuing operations was $6.94 million, compared with net loss from
continuing operations of $2.32
million for the fiscal year 2018.
- Basic and diluted loss per share from continuing operations was
$0.89, compared with basic and
diluted loss per share of $0.50 for
the fiscal year 2018.
- Shareholders' equity was $5.80
million as of December 31,
2019, compared with shareholders' equity of $2.80 million as of December 31, 2018.
Fiscal Year 2019 Financial Results
Revenues
We generate revenue from commodities trading business and used
car leasing business.
Income from commodities trading business
In December 2019, we commenced our
commodities trading business and we generated revenues from sales
of commodity products and revenue from supply chain management
consulting services.
In December 2019, we sold 55 tons
of aluminum ingots to one customer and earned revenues of
$100,427 from the sales of commodity
products. There was no such revenue in fiscal year 2018.
We also launched supply chain management services to refer loans
and distribute commodity products for our customers. In
December 2019, we earned loan
recommendation service fees of $323,623 for facilitation of loan volume of
approximately 13.72 million (RMB 94.8
million) with two customers, and distribution service fees
of $238,963 for facilitation sales
for two customers. There was no such revenue in fiscal year
2018.
Income from used car leasing business
Income from used car leasing business was $1.83 million for the fiscal year ended
December 31, 2019, as compared with
$0.49 for the fiscal year 2018. The
increase was mainly driven by the increase in the number of our
self-owned used luxurious cars from 6 as of December 31, 2018 to 11 as of December 31, 2019 and expansion of our car
leasing business to more extended geographic areas such as
Shanghai and Chengdu in 2019 which attracted increased
number of contracts from 185 for the fiscal year 2018 to 1,067 for
the fiscal year 2019.
Operating costs
Cost associated with commodities trading business
The cost associated with commodities trading business was
$0.59 million for the fiscal year
2019, comprised of purchase costs of aluminum ingots of
$0.10 million from one related party,
and cost of supply chain fees of $0.49
million which was primarily charged by a related party who
assisted us with loan recommendation services. We did not incur
such costs for the fiscal year 2018.
Cost associated with used car leasing business
The cost associated with used car leasing business mainly
consisted of depreciation expenses on operating lease assets and
car related expenses arising from lease of cars. The cost
associated with used car leasing business was $1.54 million, as compared with $0.07 million for the fiscal year 2018,
representing an increase of $1.47
million.
Our depreciation expenses increased from $0.07 million for the fiscal year 2018 to
$0.30 million for the fiscal year
2019, representing an increase of $0.23
million, or 315%. The increase was a result of our
continuous investment in used luxurious cars from 6 cars as of
December 31, 2018 to 11 cars as of
December 31, 2019.
We incurred car-related expenses of $1.07
million for the fiscal year 2019 as we launched sub-lease of
luxurious car business through leasing cars from both third parties
and one related party, over which we owned 40% equity interest. We
had no car related expenses for the fiscal year 2018.
Selling, general, and administrative expenses
Selling, general and administrative expenses was $3.83 million for the fiscal year 2019, as
compared with $2.47 million for the
fiscal year 2018, representing an increase of $1.36 million, or 55%. Selling, general and
administrative expenses primarily consisted of salary and employee
benefits, office rental expense, business tax and surcharge,
professional service fees, office supplies. The increase was mainly
attributable to combined effects of an increase of salary and
welfare expenses of $0.41 million as
a result of increase of sales commissions to salespersons when we
extended our car lease business to Shanghai and Chengdu market and when we started the
commodity trading business in 2019, an increase of legal and
consulting expenses of $0.76 million
as a result of 1) issuance of 502,391 restricted shares as
compensation to service providers, and 2) an increase in expenses
incurred for the registered direct offerings in April and
May 2019, including an increase of
audit related fees of $0.16 million,
an increase of commission of $0.1
million to a third party vendor for referral of
underwriters.
Other expenses, net
Other expenses, net primarily consisted of impairment of
investment securities of $200,000,
impairment on investment in financial products of $1,000,000, and impairment on investment in two
equity investees of $2,098,737 for
the year ended December 31, 2019, as
compared with interest expenses of $20,157 for the year ended December 31, 2018.
Net loss from continuing operations
Our net loss from continuing for the year ended December 31, 2019 was $6.94 million, representing an increase of
$4.62 million, or 199% from net loss
from continuing operations of $2.32
million for the year ended December
31, 2018.
Fiscal Year 2019 Cash Flows
As of December 31, 2019, the
Company had cash and cash equivalents of $2.45 million, compared with $1.48 million as of December 31, 2018.
Net cash used in operating activities was $2.17 million for the fiscal year ended
December 31, 2019, as compared with
$0.09 million as of December 31, 2018.
Net cash used in investing activities was $8.87 million for the fiscal year ended
December 31, 2019, compared to
$3.27 million as of December 31, 2018.
Net cash provided by financing activities was $11.83 million for the fiscal year ended
December 31, 2019, compared to
$3.81 million as of December 31, 2018.
About TD Holdings, Inc.
TD Holdings, Inc. (Nasdaq: TD) (Formerly known as Bat Group,
Inc.) is a used luxurious car rental and commodities trading
service provider in China. The
used luxurious car business is conducted under the brand name
"BatCar" by the Company's VIE entity, Tianxing Kunlun Technology
Co. Ltd, from its headquarters in Beijing. The commodities trading business is
conducted under the brand name "Huamucheng" by the Company's VIE
entity, Shenzhen Huamucheng Trading Co., Ltd. For more information
please visit https://www.imbatcar.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. 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.
TD HOLDINGS, INC.
(Formerly Bat Group, Inc.)
CONSOLIDATED
BALANCE SHEETS
|
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
ASSETS
|
|
|
|
Cash
|
$
|
2,446,683
|
|
$
|
1,484,116
|
Loans receivable from
third parties
|
|
1,955,697
|
|
|
-
|
Due from related
parties
|
|
3,310,883
|
|
|
-
|
Other current
assets
|
|
166,617
|
|
|
87,922
|
Total current
assets
|
|
7,879,880
|
|
|
1,572,038
|
|
|
|
|
|
|
Investments in equity
investees
|
|
972,807
|
|
|
-
|
Deposit in investment
in equity investee
|
|
14,351
|
|
|
-
|
Loan receivable from
a third party, noncurrent
|
|
50,230
|
|
|
-
|
Property and
equipment, net
|
|
3,835
|
|
|
5,524
|
Right-of-use lease
assets, net
|
|
41,188
|
|
|
-
|
Operating lease
assets, net
|
|
2,426,109
|
|
|
1,634,018
|
Total noncurrent
assets
|
|
3,508,520
|
|
|
1,639,542
|
|
|
|
|
|
|
Total
Assets
|
$
|
11,388,400
|
|
$
|
3,211,580
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Advances from
customers
|
$
|
15,249
|
|
$
|
6,208
|
Third party loans
payable
|
|
2,367,967
|
|
|
218,100
|
Due to related
parties
|
|
1,017,362
|
|
|
-
|
Stock subscription
advance
|
|
1,600,000
|
|
|
-
|
Income tax
payable
|
|
14,735
|
|
|
-
|
Other current
liabilities
|
|
420,101
|
|
|
185,049
|
Total current
liabilities
|
|
5,435,414
|
|
|
409,357
|
|
|
|
|
|
|
Related party loan,
noncurrent
|
|
152,124
|
|
|
-
|
Total noncurrent
liabilities
|
|
152,124
|
|
|
-
|
|
|
|
|
|
|
Total
Liabilities
|
|
5,587,538
|
|
|
409,357
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
Series A Preferred
Stock (par value $0.001 per share, 1,000,000 shares authorized at
December 31, 2019 and 2018, respectively; nil shares issued and
outstanding at December 31, 2019 and 2018, respectively)
|
|
-
|
|
|
-
|
Series B Preferred
Stock (par value $0.001 per share, 5,000,000 shares authorized at
December 31, 2019 and 2018, respectively; nil shares issued and
outstanding at December 31, 2019 and 2018, respectively)
|
|
-
|
|
|
-
|
Common stock (par
value $0.001 per share, 100,000,000 shares authorized; 11,585,111
and 5,023,906 shares issued and outstanding at December 31, 2019
and 2018, respectively)*
|
|
11,585
|
|
|
5,024
|
Additional paid-in
capital
|
|
38,523,170
|
|
|
28,765,346
|
Accumulated
deficit
|
|
(32,391,040)
|
|
|
(25,457,090)
|
Accumulated other
comprehensive loss
|
|
(334,281)
|
|
|
(511,057)
|
Total TD Holdings,
Inc.'s Stockholders' Equity
|
|
5,809,434
|
|
|
2,802,223
|
|
|
|
|
|
|
Non-controlling
interest
|
|
(8,572)
|
|
|
-
|
Total
Equity
|
|
5,800,862
|
|
|
2,802,223
|
Total Liabilities
and Equity
|
$
|
11,388,400
|
|
$
|
3,211,580
|
TD HOLDINGS, INC.
(Formerly Bat Group, Inc.)
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)
INCOME
|
|
|
For the Years
Ended
December 31,
|
|
2019
|
|
2018
|
|
|
|
|
Revenues
|
|
|
|
Revenue from sales of
commodity products
|
$
|
100,427
|
|
$
|
-
|
Revenue from supply
chain management services (including loan recommendation service
fee of $323,623 and distribution service fee of
$238,963)
|
|
562,586
|
|
|
-
|
Income from operating
leases
|
|
1,830,148
|
|
|
488,062
|
Total
Revenues
|
|
2,493,161
|
|
|
488,062
|
|
|
|
|
|
|
Operating
costs
|
|
|
|
|
|
Cost of revenue -
commodity product sales - related party
|
|
(100,180)
|
|
|
-
|
Cost of revenue -
supply chain management services - related party
|
|
(489,231)
|
|
|
-
|
Cost of operating
lease
|
|
(1,544,120)
|
|
|
(71,252)
|
Total operating
costs
|
|
(2,133,531)
|
|
|
(71,252)
|
|
|
|
|
|
|
Gross
profit
|
|
359,630
|
|
|
416,810
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
|
(3,828,412)
|
|
|
(2,469,964)
|
Changes in fair value
of noncurrent liabilities
|
|
-
|
|
|
(166,540)
|
Impairment of
operating lease assets
|
|
(148,143)
|
|
|
(184,645)
|
Total
operating expenses
|
|
(3,976,555)
|
|
|
(2,821,149)
|
|
|
|
|
|
|
Other expenses,
net
|
|
|
|
|
|
Interest expenses,
net
|
|
(657)
|
|
|
(20,157)
|
Impairment of
investment securities
|
|
(200,000)
|
|
|
-
|
Equity investment
loss
|
|
(11,342)
|
|
|
-
|
Impairment of
investment in financial products
|
|
(1,000,000)
|
|
|
-
|
Impairment of
investment in equity investees
|
|
(2,098,737)
|
|
|
-
|
Total other
expenses, net
|
|
(3,310,736)
|
|
|
(20,157)
|
|
|
|
|
|
|
Net loss from
continuing operations before income taxes
|
|
(6,927,661)
|
|
|
(2,424,496)
|
|
|
|
|
|
|
Income tax (expenses)
benefits
|
|
(14,861)
|
|
|
104,024
|
Net loss from
continuing operations
|
|
(6,942,522)
|
|
|
(2,320,472)
|
|
|
|
|
|
|
Net income from
discontinued operations
|
|
-
|
|
|
9,967,629
|
|
|
|
|
|
|
Net income
(loss)
|
|
(6,942,522)
|
|
|
7,647,157
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to non-controlling interests
|
|
(8,572)
|
|
|
-
|
|
|
|
|
|
|
Net income (loss)
attributable to TD Holdings, Inc.'s Stockholders
|
$
|
(6,933,950)
|
|
$
|
7,647,157
|
|
|
|
|
|
|
Comprehensive income (loss)
|
|
|
|
|
|
Net income
(loss)
|
$
|
(6,942,522)
|
|
$
|
7,647,157
|
Foreign currency
translation adjustment
|
|
176,776
|
|
|
(5,329,710)
|
Reclassified to net
income from discontinued operations
|
|
-
|
|
|
4,912,715
|
Total
comprehensive income (loss)
|
|
(6,765,746)
|
|
|
7,230,162
|
Less: Total
comprehensive loss attributable to non-controlling
interests
|
|
(8,572)
|
|
|
-
|
Comprehensive
income (loss) attributable to TD Holdings, Inc.
|
$
|
(6,757,174)
|
|
$
|
7,230,162
|
Income (loss)per
share - basic and diluted
|
$
|
(0.89)
|
|
$
|
1.67
|
Net loss per share
from continuing operations – basic and diluted
|
$
|
(0.89)
|
|
$
|
(0.50)
|
Net income per share
from discontinued operations – basic and diluted
|
$
|
-
|
|
$
|
2.17
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding-Basic and Diluted
|
|
7,776,306
|
|
|
4,596,116
|
TD HOLDINGS, INC.
(Formerly Bat Group, Inc.)
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
For the Years
Ended December 31,
|
|
2019
|
|
2018
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
Net (loss)
income
|
$
|
(6,942,522)
|
|
$
|
7,647,157
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation of
operating lease assets
|
|
296,933
|
|
|
101,654
|
Depreciation of
property and equipment
|
|
2,326
|
|
|
1,001
|
Amortization of right
of use assets
|
|
60,128
|
|
|
-
|
Impairment on
operating lease assets
|
|
148,143
|
|
|
184,645
|
(Gain) loss on
disposal of operating lease asset
|
|
(6,165)
|
|
|
10,875
|
Impairment on
investment securities
|
|
200,000
|
|
|
-
|
Equity investment
loss
|
|
11,342
|
|
|
-
|
Impairment on
investment in financial products
|
|
1,000,000
|
|
|
|
Impairment on
investment in equity investees
|
|
2,098,737
|
|
|
-
|
Stock-based
compensation to service providers
|
|
884,208
|
|
|
-
|
Gain on disposal of
discontinued operations
|
|
-
|
|
|
(9,967,629)
|
Income tax benefits
from intra-period tax allocation
|
|
-
|
|
|
(105,000)
|
Changes in fair value
of noncurrent liabilities
|
|
-
|
|
|
166,540
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Other current
assets
|
|
(80,202)
|
|
|
(91,395)
|
Advances from
customers
|
|
9,198
|
|
|
6,454
|
Income tax
payable
|
|
14,861
|
|
|
-
|
Other current
liabilities
|
|
239,050
|
|
|
189,100
|
Lease
liabilities
|
|
(101,669)
|
|
|
-
|
Net cash provided by
operating activities from discontinued operations
|
|
-
|
|
|
1,769,566
|
Net Cash Used in
Operating Activities
|
|
(2,165,632)
|
|
|
(87,032)
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(695)
|
|
|
(6,743)
|
Purchases of
operating lease assets
|
|
(2,065,453)
|
|
|
(2,117,477)
|
Proceeds from
disposal of operating lease assets
|
|
332,909
|
|
|
121,752
|
Investment in one
investment security
|
|
(200,000)
|
|
|
-
|
Investments in equity
investees
|
|
(868,458)
|
|
|
-
|
Deposit for
investment in an equity investee
|
|
(14,474)
|
|
|
-
|
Investments in
financial products
|
|
(1,000,000)
|
|
|
-
|
Payment made on loan
to related parties
|
|
(2,865,879)
|
|
|
-
|
Payment made on loans
to third parties
|
|
(2,191,866)
|
|
|
-
|
Proceeds from
disposal of discontinued operations
|
|
-
|
|
|
500,000
|
Cash paid in
connection with discontinued operations
|
|
-
|
|
|
(499,496)
|
Net cash used in
investing activities from discontinued operations
|
|
-
|
|
|
(1,270,070)
|
Net Cash Used in
by Investing Activities
|
|
(8,873,916)
|
|
|
(3,272,034)
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
Proceeds from third
party borrowings
|
|
2,695,545
|
|
|
226,713
|
Repayments of
borrowings to third parties
|
|
(289,486)
|
|
|
-
|
Proceeds from
borrowings from related parties
|
|
1,162,719
|
|
|
-
|
Stock subscription
advance received from shareholders
|
|
1,600,000
|
|
|
|
Proceeds from
registered direct offering, net of transaction costs
|
|
4,653,440
|
|
|
-
|
Proceeds from
issuance of common stock under private placement
transactions
|
|
589,750
|
|
|
3,265,370
|
Capital contribution
from shareholders of a variable interest entity
|
|
1,417,736
|
|
|
-
|
Proceeds from
convertible promissory notes
|
|
-
|
|
|
314,352
|
Net Cash Provided
by Financing Activities
|
|
11,829,704
|
|
|
3,806,435
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash
|
|
172,411
|
|
|
(322,883)
|
|
|
|
|
|
|
Net Increase in
Cash
|
|
962,567
|
|
|
124,486
|
Cash, Beginning of
Year
|
|
1,484,116
|
|
|
1,359,630
|
Cash, End of
Year
|
$
|
2,446,683
|
|
$
|
1,484,116
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information
|
|
|
|
|
|
Cash paid for
interest expenses
|
$
|
41,053
|
|
$
|
-
|
Cash paid for income
tax expenses
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
Supplemental
disclosure of Non-cash investing and financing
activities
|
|
|
|
|
|
Issuance of common
stocks in exchange of investments in one equity investee
|
$
|
410,000
|
|
$
|
-
|
Right-of-use assets
obtained in exchange for operating lease obligations
|
$
|
61,648
|
|
$
|
-
|
View original
content:http://www.prnewswire.com/news-releases/td-holdings-inc-reports-fiscal-year-2019-financial-results-301067861.html
SOURCE TD Holdings, Inc.