QINGDAO, China, Sept. 10, 2021 /PRNewswire/ -- SOS Limited ("SOS"
or the "Company") (NYSE: SOS) today reported its unaudited interim
financial results for the six-months ended June 30, 2021.
Our net revenue was $184.5
million, up 17 times over the six-months ended
June 30, 2020. Gross Profit improved
to $17.2 million from $0.08 million and gross margin increased to 9.3%
from 0.8% comparing to the period ended June
30, 2020.
Results from Operations
Revenue
Net revenue was $184.5 million, up
17 times over the prior period. The robust growth of revenue
demonstrated the strong and effective execution of the Company's
strategy, mainly due to rapid market expansion from regional to
national, and the addition of cryptomining and commodity trading
operations, both of which took advantage of our blockchain
expertise.
Unaudited interim
condensed consolidated Statements of comprehensive of
loss
|
(US$ thousands,
except share data and per share data, or otherwise
noted)
|
|
Six months
ended
|
|
30-Jun-20
|
|
30-Jun-21
|
|
US$
|
|
US$
|
Revenue
|
9,917
|
|
184,489
|
Business taxes
and surcharges
|
(8)
|
|
(11)
|
Net
revenue
|
9,909
|
|
184,479
|
Operating
costs
|
(9,830)
|
|
(167,238)
|
Gross
profit
|
79
|
|
17,240
|
Gross margin
ratio
|
0.8%
|
|
9.3%
|
As of June 30, 2021, SOS focused
on six product lines and services, including insurance marketing,
telecom call center, bankcard call center, SaaS services,
cryptocurrency mining and commodity trading. Insurance marketing
represents 7.23% of our total revenue, and the remaining consists
of 0.18% from our telecom call center, 0.15% from our bankcard call
center, 0.14% from our SaaS services, 8.2% from our cryptocurrency
mining operations and 84.11% from our commodity trading.
Product
lines
|
US$"000"
|
Percentage
|
Insurance
marketing
|
13,338
|
7.23%
|
Cyptocurrency
mining
|
15,126
|
8.20%
|
Telecom Call
center
|
324
|
0.18%
|
Bank call
center
|
278
|
0.15%
|
SaaS
|
253
|
0.14%
|
Comodity
trading
|
155,170
|
84.11%
|
Total
|
184,489
|
100%
|
We begun generating revenue from our cryptocurrency mining
operations since February 2021. We
have mined an aggregate of 132.1 units of BTC and 1,853.1 units of
ETH as of June 30, 2021 from our
mining pools as compared to 42.2 units of BTC and 916.9 units of
ETH as of March 31, 2021, which
represents a 213% increase in BTC and 102% increase in ETH.
There are three major reasons which explain why production
output increased: (i) The first quarter of 2021 is a short quarter
for production as it took approximately the first two months of the
year to set up our first batch of mining rigs, and we only began to
generate revenue from the end of February
2021; (ii) We increased our hash rates as more rigs were
installed; and (iii) The Chinese government's announcement on the
ban of certain types of cryptocurrency mining in mainland
China only came into effect at the
end of June 2021, which made minimal
impact on our operating results for the second quarter of
2021.
Operating Costs and Expenses
Operating costs were $167.2
million for the period ended June 30,
2021, representing an increase of approximately 17 times
compared to operating costs of $9.8
million for the period ended June 30,
2020. The increase in operating costs and expenses includes
data acquisition costs for our insurance marketing business,
landline telephone expenses for call centers, maintenance expense
and hardware depreciation for our cryptocurrency mining rigs, and
costs of goods sold for commodity trading.
General and Administrative Expenses
General and administrative expenses were $37.4 million for the period ended June 30, 2021, representing an increase of
approximately 14 times compared to general and administrative
expenses of $2.7 million for the
period ended June 30, 2020. The
increase in general and administrative expenses was mainly
associated with share-based compensation expenses of $17.9 million and significant increases in legal
expenses related to class action lawsuit against the Company and
its management.
GAAP Operating Loss
Our net loss for the period ended June
30, 2021 was $20.4 million
according to GAAP, representing an increase of approximately 2.5
times compared to a net loss of $8.8
million for the period ended June
30, 2020. The loss resulted from increased expenses
related to class action against the Company and its management and
share-based compensation expenses.
However, overall gross margin which reflects the performance of
our operating businesses and excluding the foregoing expenses
increased from 0.8% to 7.9% for the periods ended June 30, 2021 and June 30,
2020, respectively, showing improvement in our earning
ability.
Income Tax
The company paid $0.58 million in
corporate income tax for the current period.
Non-GAAP adjusted loss before income tax expenses was
$1.9 million for the period ended
June 30, 2021, as compared to
$1.3 million loss before income tax
expenses for the period ended June
30, 2020. Compared to GAAP results, this loss excludes
$17.9 million in share-based
compensation.
GAAP net loss attributable to ordinary shareholders was
$20.4 million for the period ended
June 30, 2021, as compared to a net
loss of $8.8 million for the period
ended June 30, 2020.
GAAP EPS was $(0.04) per share for
the period ended June 30, 2021, as
compared to $(0.17) per share for the
period ended June 30, 2020.
Balance Sheet and Cash Flow
As of June 30, 2021, the Company
had cash and cash equivalents of $185.5
million, compared to $0.61
million for the period ended June
30, 2020. The net increase in cash flow was mainly due
to financing through registered
direct offerings. The Company believes that its cash resources are
adequate to fund its current operations and short-term growth
initiatives.
Unaudited condensed
consolidated statement of cash flow
|
(US$ thousands,
except share data and per share data, or otherwise
noted)
|
|
|
|
Cash flows from
operating activities:
|
|
30-Jun-20
|
|
30-Jun-21
|
Net
(loss)
|
|
(8,768)
|
|
(20,411)
|
Adjustments:
|
|
|
|
|
Depreciation
and amortization
|
|
3
|
|
5,509
|
Share-based
compensation
|
|
737
|
|
17,927
|
Loss on
acquisition
|
|
5,679
|
|
-
|
Inventory
|
|
-
|
|
(102,566)
|
Receivables,
prepayments and other assets
|
|
(12,393)
|
|
(196,620)
|
Due from
RPTs
|
|
-
|
|
(10,183)
|
Intangible
assets
|
|
|
|
(12,221)
|
Accrued
liabilities
|
|
14,678
|
|
24
|
Accounts
payable
|
|
-
|
|
(13,118)
|
Tax
payable
|
|
(15)
|
|
(6,024)
|
Other
payables
|
|
|
|
(8,339)
|
Due to RPTs
|
|
|
|
2,406
|
|
|
|
|
|
Contract liability
and lease liability
|
|
|
|
4,450
|
Net cash used in
operating activities from discontinued operation
|
|
545
|
|
-
|
Net cash used in
operating activities
|
|
466
|
|
(339,165)
|
Cash flows from
investing activities:
|
|
|
|
|
Purchase of
property, equipment and software
|
|
(202)
|
|
(34,205)
|
Disposition of assets
P2P
|
|
-
|
|
3,500
|
Investment in
equity
|
|
(593)
|
|
-
|
Net cash used in
investing activities
|
|
(795)
|
|
(30,705)
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
share issuance
|
|
898
|
|
551,824
|
Proceeds from
private equity placement
|
|
|
|
-
|
Net cash provided by
financing activities
|
|
898
|
|
551,824
|
Exchange
gain/(loss)
|
|
-
|
|
2,887
|
Net
increase/(decrease), effect of exchange rate changes on cash
and
cash equivalent
|
|
569
|
|
184,841
|
Cash and cash
equivalent at beginning of the period
|
|
41
|
|
610
|
Cash and cash
equivalent at end of the period
|
|
610
|
|
185,451
|
Cash Flow Used In Investing Activities
The Company, through its subsidiaries, SOS Information
Technology New York Inc. and China SOS Ltd., purchased BTC and ETH
mining equipment for an aggregate cost of approximately
$34.2 million.
Financing Activities
The Company received aggregate net proceeds of US$513.1 million from registered direct offerings
from December 22, 2020 to
March 31, 2021.
About SOS Limited
SOS is an emerging blockchain-based and big data-driven
marketing solution provider, with a nationwide membership base of
approximately 20 million in China.
SOS is also engaged in blockchain and cryptocurrencies operations,
which currently include cryptocurrency mining and maybe expand
into.cryptocurrency security and insurance in the future Since
April] 2021, we launched commodity trading via our subsidiary SOS
International Trading Co. Ltd, The core infrastructure of SOS'
marketing data, technology and solutions to insurance and emergency
rescue services is built on big data, blockchain-based technology,
cloud computing, AI, satellite, and 5G network, etc. SOS has
created a cloud "software as a service (SaaS)" platform for
emergency rescue services, with three major product categories:
basic cloud, cooperative cloud, and information cloud. This system
provides innovative marketing solutions to clients such as
insurance companies, financial institutions, medical institutions,
healthcare providers, auto manufacturers, security providers,
senior living assistance providers, and other service providers in
the emergency rescue services industry. For more information,
please visit: http://www.sosyun.com/.
Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the federal
securities laws, including, but not limited to, our expectations
for future financial performance, business strategies or
expectations for our business. These statements constitute
projections, forecasts and forward-looking statements, and are not
guarantees of performance. SOS cautions that forward-looking
statements are subject to numerous assumptions, risks and
uncertainties, which change over time. Words such as "may," "can,"
"should," "will," "estimate," "plan," "project," "forecast,"
"intend," "expect," "anticipate," "believe," "seek," "target,"
"look" or similar expressions may identify forward-looking
statements. Specifically, forward-looking statements may include
statements relating to the Company's:
- expected hash rate for its mining rigs;
- intention to grow and install more mining rigs;
- ability to execute its business plan;
- changes in the market for SOS' products and services; and
- expansion plans and opportunities.
These forward-looking statements are based on information
available as of the date of this press release and our management's
current expectations, forecasts and assumptions, and involve a
number of judgments, risks and uncertainties that may cause actual
results or performance to be materially different from those
expressed or implied by these forward-looking statements.
These risks and uncertainties include, but not are limited to,
the risk factors described by SOS in its filings with the
Securities and Exchange Commission ("SEC"). These risk factors and
those identified elsewhere in this press release, among others,
could cause actual results to differ materially from historical
performance and include, but are not limited to:
- Chinese government's policies and regulatory oversight of
crypto currency mining operation and our other operations;
- SOS's cryptocurrency mining, commodity trading and marketing
solutions businesses are still under development, with many
uncertainties in the future direction and integration of these
various business segments;
- Failure to manage the newly launched commodities trading
business effectively;
- Loss of key customers in the commodity trading business;
- failure to access a large quantity of power at reasonable costs
could significantly increase SOS operating expenses and adversely
affect our demand for SOS's mining activities;
- shortages in, or rises in the prices of mining machines may
adversely affect the Company's business;
- any significant or prolonged failure in the data warehouse
facilities and data mining facilities that SOS operates or services
it provides, including events beyond its control, would lead to
significant costs and disruptions and would reduce the
attractiveness of its facilities, harm its business reputation and
have a material adverse effect on its results of operation;
- security breaches or alleged security breaches of our data
warehouses could disrupt SOS operations and have a material adverse
effect on its business, financial condition and results of
operation; and
- other risks and uncertainties indicated in SOS's SEC reports or
documents filed or to be filed with the SEC by SOS.
Accordingly, forward-looking statements should not be relied
upon as representing our views as of any subsequent date, and you
should not place undue reliance on these forward-looking statements
in deciding whether to invest in our securities. We do not
undertake any obligation to update forward-looking statements to
reflect events or circumstances after the date they were made,
whether as a result of new information, future events or otherwise,
except as may be required under applicable securities laws.
View original
content:https://www.prnewswire.com/news-releases/sos-limited-reports-2021-six-months-interim-financial-results-301373139.html
SOURCE SOS Limited