SHENZHEN, China, May 12, 2023
/PRNewswire/ -- TD Holdings, Inc. (Nasdaq: GLG) (the
"Company"), a commodities trading service provider
in China, today announced its unaudited financial results
for the first quarter ended March 31,
2023.
Ms. Renmei Ouyang, the Chief Executive Officer of the
Company, stated, "We continued to provide unparalleled services to
our clients and explore new partnerships to address the market
opportunities in the first quarter of fiscal year 2023. In the
remaining of 2023, we will continue to execute our development plan
to expand our business scale and improve our brand awareness. We
will remain focus on the optimization of our commodities trading
business and supply chain service business to expand our client
base. We believe our dedicated and experienced team is our
foundation to separate us from other competitors and enhance our
competitive market position. With the rapid resumption of business
activities, we expect to actively explore new corporations, provide
high-quality services to best serve our clients' demand and
generate additional revenue sources. In addition to the growth
plan, we expect to improve our efficiency by implementing necessary
measures. We remain confident about our future prospects with our
long-term development strategy on seeking growth opportunities in
our business."
First Quarter 2023 Financial Highlights
Total revenue was $34.58 million, consisting of $34.57
million from sales of commodity products, and $0.01
million from supply chain management services for the quarter
ended March 31, 2023, a decrease of
28% from $48.16 million for the same
quarter ended March 31, 2022.
Net income was $0.45 million for
the quarter ended March 31, 2023,
compared with $1.59 million for the
same quarter ended March 31,
2022.
Basic and diluted earnings per share were $0.00 respectively, for the quarter ended
March 31, 2023, compared with
$0.04 for the same quarter ended
March 31, 2022.
First Quarter 2023 Financial Results
Revenues
For the quarter ended March 31,
2023, the Company sold non-ferrous metals to 14 third-party
customers at fixed prices, and earned revenues when the product
ownership was transferred to its customers. The Company earned
revenues of $34.57 million from sales
of commodity products for the quarter ended March 31, 2023, compared with $47.58 million for the same quarter ended
March 31, 2022.
For the quarter ended March 31,
2023, the Company recorded revenue of $0.01 million from supply chain management
services to third-party customers, compared with $0.58 million to third-party vendors for the same
quarter ended March 31, 2022.
Cost of Revenue
Cost of revenue primarily includes cost of revenue associated
with commodity product sales and cost of revenue associated with
management services of supply chain. Total cost of revenue
decreased by $12.95 million, or 27%
to $34.65 million for the quarter
ended March 31, 2023, from
$47.60 million for the same quarter
ended March 31, 2022, primarily due
to the decrease in the cost of revenue associated with commodity
product sales.
Selling, General, and Administrative Expenses
Selling, general and administrative expenses increased by
$0.50 million or 22%, to $2.74 million for the quarter ended March 31, 2023, from $2.25
million for the same quarter ended March 31, 2022. Selling, general and
administrative expenses primarily consisted of salary and employee
benefits, office rental expenses, amortizations of intangible
assets and convertible promissory notes, professional service fees
and finance offering related fees. The increase was mainly
attributable to the amortization of intangible assets of
$2.05 million, as the company
acquired a software copyright of the original amount of RMB300
million in connection with the contractual arrangement with
Shenzhen Tongdow Internet Technology Co., Ltd. on October 25, 2022,
which contributed $1.10 million to selling, general, and
administrative expenses for the three months ended March 31,
2022.
Interest Income
Interest income was primarily generated from loans made to third
parties and related parties. Interest income increased by
$0.06 million or 1%, to $4.45 million for the quarter ended March 31, 2023, from $4.39
million for the same quarter ended March 31, 2022.
Amortization of Beneficial Conversion Feature and Relative
Fair Value of Warrants Relating to the Issuance of Convertible
Promissory Notes
For the quarter ended March 31,
2023, the item represented the amortization of beneficial
conversion feature of $0.22 million
of two convertible promissory notes issued on May 6, 2022 and March 13,
2023.
For the same quarter ended March 31,
2022, the item represented the amortization of beneficial
conversion feature of $0.21 million
of three convertible promissory notes issued on January 6, 2021, March 4,
2021 and October 4, 2021.
Net Income
Net income was $0.45 million for
the quarter ended March 31, 2023,
compared with $1.59 million for the
same quarter ended March 31,
2022.
Three Months Ended March 31,
2023 Cash Flows
As of March 31, 2023, the Company had cash and cash
equivalents of $1.98 million, as compared with $0.89
million as of December 31, 2022.
Net cash provided by operating activities was $2.77
million for the quarter ended March 31,
2023, compared with $3.75
million for the same quarter ended March 31, 2022.
Net cash used in investing activities was $46.69
million for the quarter ended March 31,
2023, compared with $50.00 million for the same
quarter ended March 31, 2022.
Net cash provided by financing activities was $45.91
million for the quarter ended March 31,
2023, compared with $45.50 million for the same
quarter ended March 31, 2022.
About TD Holdings, Inc.
TD Holdings, Inc. is a service provider currently engaging in
the commodities trading business and supply chain service business
in China. Its commodities trading
business primarily involves purchasing non-ferrous metal products
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. 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
|
|
As of March 31, 2023
and December 31, 2022
|
|
(Expressed in U.S.
dollars, except for the number of shares)
|
|
|
|
|
|
March
31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,981,012
|
|
|
$
|
893,057
|
|
Loans receivable from
third parties
|
|
|
191,630,240
|
|
|
|
143,174,634
|
|
Other current
assets
|
|
|
4,991,860
|
|
|
|
4,040,477
|
|
Inventories,
net
|
|
|
415,718
|
|
|
|
458,157
|
|
Total current
assets
|
|
|
199,018,830
|
|
|
|
148,566,325
|
|
|
|
|
|
|
|
|
|
|
Non-Current
Assets
|
|
|
|
|
|
|
|
|
Plant and equipment,
net
|
|
|
5,239
|
|
|
|
6,370
|
|
Goodwill
|
|
|
162,379,512
|
|
|
|
160,213,550
|
|
Intangible assets,
net
|
|
|
52,803,772
|
|
|
|
54,114,727
|
|
Right-of-use assets,
net
|
|
|
168,458
|
|
|
|
196,826
|
|
Total non-current
assets
|
|
|
215,356,981
|
|
|
|
214,531,473
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
414,375,811
|
|
|
$
|
363,097,798
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
-
|
|
|
$
|
1,269
|
|
Bank
borrowings
|
|
|
1,018,671
|
|
|
|
1,005,083
|
|
Third party loans
payable
|
|
|
472,842
|
|
|
|
460,587
|
|
Contract
liabilities
|
|
|
18,395
|
|
|
|
437,148
|
|
Income tax
payable
|
|
|
12,835,992
|
|
|
|
11,634,987
|
|
Lease
liabilities
|
|
|
109,977
|
|
|
|
116,170
|
|
Other current
liabilities
|
|
|
5,654,669
|
|
|
|
5,348,646
|
|
Convertible promissory
notes
|
|
|
4,635,456
|
|
|
|
4,208,141
|
|
Total current
liabilities
|
|
|
24,746,002
|
|
|
|
23,212,031
|
|
|
|
|
|
|
|
|
|
|
Non-Current
Liabilities
|
|
|
|
|
|
|
|
|
Due to related
party
|
|
|
39,291,587
|
|
|
|
38,767,481
|
|
Deferred tax
liabilities
|
|
|
2,907,489
|
|
|
|
3,059,953
|
|
Lease
liabilities
|
|
|
62,396
|
|
|
|
84,164
|
|
Total non-current
liabilities
|
|
|
42,261,472
|
|
|
|
41,911,598
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
67,007,474
|
|
|
|
65,123,629
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies (Note 16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Common stock (par value
$0.001 per share, 600,000,000 shares authorized;
144,841,328 and 106,742,117 shares issued and outstanding as of
March 31, 2023
and December 31, 2022, respectively)*
|
|
|
144,841
|
|
|
|
106,742
|
|
Additional paid-in
capital
|
|
|
390,154,966
|
|
|
|
344,295,992
|
|
Statutory surplus
reserve
|
|
|
2,602,667
|
|
|
|
2,602,667
|
|
Accumulated
deficit
|
|
|
(37,950,132)
|
|
|
|
(38,800,375)
|
|
Accumulated other
comprehensive income
|
|
|
(5,939,107)
|
|
|
|
(8,984,925)
|
|
Total TD
Shareholders' Equity
|
|
|
349,013,235
|
|
|
|
299,220,101
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest
|
|
|
(1,644,898)
|
|
|
|
(1,245,932)
|
|
Total Equity
|
|
|
347,368,337
|
|
|
|
297,974,169
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
|
414,375,811
|
|
|
$
|
363,097,798
|
|
|
|
* Retrospectively
restated due to five for one Reverse Stock Split, see Note 12 -
Reverse stock split of common stock.
|
|
TD HOLDINGS,
INC.
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND
|
|
COMPREHENSIVE INCOME
(LOSS)
|
|
For the Three Months
Ended March 31, 2023 and 2022
|
|
(Expressed in U.S.
dollars, except for the number of shares)
|
|
|
|
|
|
For the Three
Months
Ended
March 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
- Sales
of commodity products – third parties
|
|
$
|
34,571,288
|
|
|
$
|
47,583,965
|
|
- Supply
chain management services – third parties
|
|
|
6,350
|
|
|
|
575,151
|
|
Total
revenue
|
|
|
34,577,638
|
|
|
|
48,159,116
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
- Commodity product sales-third parties
|
|
|
(34,653,239)
|
|
|
|
(47,590,576)
|
|
- Supply
chain management services-third parties
|
|
|
(40)
|
|
|
|
(11,602)
|
|
Total operating
costs
|
|
|
(34,653,279)
|
|
|
|
(47,602,178)
|
|
|
|
|
|
|
|
|
|
|
Gross
(loss)/profit
|
|
|
(75,641)
|
|
|
|
556,938
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative expenses
|
|
|
(2,743,061)
|
|
|
|
(2,247,707)
|
|
Total
operating expenses
|
|
|
(2,743,061)
|
|
|
|
(2,247,707)
|
|
|
|
|
|
|
|
|
|
|
Net Operating
Loss
|
|
|
(2,818,702)
|
|
|
|
(1,690,769)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses), net
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
4,449,000
|
|
|
|
4,390,341
|
|
Interest
expenses
|
|
|
(109,987)
|
|
|
|
(110,326)
|
|
Amortization of
beneficial conversion feature relating to issuance of
convertible
promissory notes
|
|
|
(220,652)
|
|
|
|
(213,367)
|
|
Other income,
net
|
|
|
4,523
|
|
|
|
95,709
|
|
Total other income,
net
|
|
|
4,122,884
|
|
|
|
4,162,357
|
|
|
|
|
|
|
|
|
|
|
Net
income before income taxes
|
|
|
1,304,182
|
|
|
|
2,471,588
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
|
(852,905)
|
|
|
|
(877,731)
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
451,277
|
|
|
|
1,593,857
|
|
Less: Net loss
attributable to non-controlling interests
|
|
|
(398,966)
|
|
|
|
-
|
|
Net income
attributable to TD Holdings,
Inc.'s Stockholders
|
|
|
850,243
|
|
|
|
1,593,857
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
Income
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
451,277
|
|
|
|
1,593,857
|
|
Foreign currency
translation adjustments
|
|
|
3,045,818
|
|
|
|
881,196
|
|
Comprehensive Income
|
|
$
|
3,497,095
|
|
|
$
|
2,475,053
|
|
Less: Total
comprehensive loss attributable to non-controlling
interests
|
|
|
(398,966)
|
|
|
|
-
|
|
Comprehensive income
attributable to TD Holdings,
Inc.'s Stockholders
|
|
$
|
3,896,061
|
|
|
$
|
2,475,053
|
|
|
|
|
|
|
|
|
|
|
Income per share -
basic and diluted
|
|
|
|
|
|
|
|
|
Continuing
Operation- income per share – basic*
|
|
$
|
0.00
|
|
|
$
|
0.04
|
|
Continuing
Operation- income per share –diluted*
|
|
$
|
0.00
|
|
|
$
|
0.04
|
|
Weighted Average
Shares Outstanding-Basic*
|
|
|
140,045,132
|
|
|
|
39,688,232
|
|
Weighted Average
Shares Outstanding- Diluted*
|
|
|
148,121,900
|
|
|
|
42,710,590
|
|
|
|
* Retrospectively
restated due to five for one Reverse Stock Split, see Note 12 -
Reverse stock split of common stock
|
|
TD HOLDINGS,
INC.
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
For the Three
Months Ended March 31, 2023 and 2022
|
|
(Expressed in U.S.
dollar)
|
|
|
|
|
|
For the Three
Months
|
|
Ended
March 31,
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net
income
|
|
$
|
451,277
|
|
|
$
|
1,593,857
|
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation of plant
and equipment
|
|
|
1,215
|
|
|
|
3,217
|
|
Amortization of
intangible assets
|
|
|
2,049,732
|
|
|
|
1,029,186
|
|
Amortization of right
of use assets
|
|
|
30,846
|
|
|
|
76,983
|
|
Amortization of
discount on convertible promissory notes
|
|
|
93,333
|
|
|
|
111,000
|
|
Interest expense for
convertible promissory notes
|
|
|
101,330
|
|
|
|
93,285
|
|
Amortization of
beneficial conversion feature of convertible promissory
notes
|
|
|
220,652
|
|
|
|
213,367
|
|
Monitoring fee relating
to convertible promissory notes
|
|
|
-
|
|
|
|
69,685
|
|
Deferred tax
liabilities
|
|
|
(194,515)
|
|
|
|
(209,744)
|
|
Inventories
impairment
|
|
|
(17,229)
|
|
|
|
-
|
|
Escrow account
receivable
|
|
|
-
|
|
|
|
(54,985)
|
|
Inventories
|
|
|
66,033
|
|
|
|
(133,810)
|
|
Other current
assets
|
|
|
(24,222)
|
|
|
|
(29,775)
|
|
Prepayments
|
|
|
447,960
|
|
|
|
(1,891,842)
|
|
Contract
liabilities
|
|
|
(426,158)
|
|
|
|
1,900,456
|
|
Due to related
parties
|
|
|
-
|
|
|
|
(21,259)
|
|
Due from third
parties
|
|
|
(628,474)
|
|
|
|
(481,816)
|
|
Due from related
parties
|
|
|
(685,488)
|
|
|
|
28,897
|
|
Accounts
payable
|
|
|
(1,291)
|
|
|
|
(116,078)
|
|
Income tax
payable
|
|
|
1,047,382
|
|
|
|
1,085,694
|
|
Other current
liabilities
|
|
|
259,083
|
|
|
|
499,661
|
|
Lease
liabilities
|
|
|
(30,476)
|
|
|
|
(19,734)
|
|
Due to third party
loans payable
|
|
|
6,050
|
|
|
|
6,523
|
|
Net cash provided by
operating activities
|
|
|
2,767,040
|
|
|
|
3,752,768
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Purchases of plant and
equipment
|
|
|
-
|
|
|
|
(5,039)
|
|
Purchases of operating
lease assets
|
|
|
-
|
|
|
|
(58,617)
|
|
Loans made to third
parties
|
|
|
(46,678,620)
|
|
|
|
(60,177,853)
|
|
Collection of loans
from related parties
|
|
|
-
|
|
|
|
11,066,822
|
|
Investments in other
investing activities
|
|
|
(10,707)
|
|
|
|
(828,601)
|
|
Net cash used in
investing activities
|
|
|
(46,689,327)
|
|
|
|
(50,003,288)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of common stock under ATM transaction
|
|
|
559,073
|
|
|
|
-
|
|
Proceeds from issuance
of common stock under private placement transactions
|
|
|
42,350,000
|
|
|
|
45,500,000
|
|
Proceeds from
convertible promissory notes
|
|
|
3,000,000
|
|
|
|
-
|
|
Net cash provided by
financing activities
|
|
|
45,909,073
|
|
|
|
45,500,000
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
(898,831)
|
|
|
|
13,794
|
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease)
in cash and cash equivalents
|
|
|
1,087,955
|
|
|
|
(736,726)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
893,057
|
|
|
|
4,311,068
|
|
Cash and cash
equivalents at end of period
|
|
$
|
1,981,012
|
|
|
$
|
3,574,342
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
|
|
|
|
|
Cash paid for interest
expenses
|
|
$
|
19,934
|
|
|
$
|
22,109
|
|
Cash paid for income
taxes
|
|
$
|
-
|
|
|
$
|
1,781
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of Non-cash investing and financing
activities
|
|
|
|
|
|
|
|
|
Right-of-use assets
obtained in exchange for operating lease obligations
|
|
$
|
-
|
|
|
$
|
58,617
|
|
Issuance of common
stocks in connection with conversion of convertible promissory
notes
|
|
$
|
2,988,000
|
|
|
$
|
1,804,820
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/td-holdings-inc-reports-first-quarter-2023-financial-results-301823138.html
SOURCE TD Holdings, Inc.