1H2022 Revenue of $113.6 million, up 209.5% sequentially
1H2022 Net Income of $14.6 million, up 313.6% sequentially
BEIJING, Dec. 19,
2022 /PRNewswire/ -- AGM Group Holdings Inc.
("AGMH" or the "Company") (NASDAQ: AGMH), an integrated technology
company focusing on providing fintech software services and
producing high-performance hardware and computing equipment, today
announced its unaudited financial results for the first half year
ended June 30, 2022.
First Half 2022 Operating and Financial Highlights
- Total computing power delivered was approximately 985,688 TH/S,
compared to 440,000 TH/S in the second half of 2021.
- Total revenues were $113.6
million, up 209.5% from $36.7
million in the second half of 2021.
- Gross profit was $21.6 million,
up 227.3% from $6.6 million in the
second half of 2021.
- Net income was $14.6 million, up
313.6% from $3.5 million in the
second half of 2021.
Mr. Chenjun Li, Chairman and Co-Chief Executive Officer of the
Company, commented, "We have experienced challenging time and
market volatility in the first half of 2022, under the combined
adverse effects of the Bitcoin price downward
trajectory and the COVID-19 lockdown in China. These disruptions are also forcing
customers to be more selective of competitive technology in
boosting their innovation and productivity, which is the driving
momentum in the continued sales of our advanced mining machines,
resulting in total revenue more than tripled from US$36.7 million in the second half of 2021 to
US$113.6 million in the first half of
2022. These results demonstrate the success and the sustainability
of our business strategy and execution, as we continue to expand
our customer base and improve supply chain capabilities. Looking
into the future, we will focus on expansion opportunities,
technological innovation, and product portfolio. We remain
confident that our endeavors in broadening business scope and
responsive adaption to advanced technologies will sustain our
growth trajectory in the ever-evolving cryptocurrency mining
market."
Mr. Steven Sim, Chief Financial
Officer of the Company, stated, "During the first half of 2022,
despite the COVID-19 containment lockdown in China and the overall significant price drop
within the Bitcoin market, we delivered a record total
revenue of US$113.6 million and net
profitability of US$14.6 million,
representing sequential growths of 209.5% and 313.6% respectively,
as well as a profit margin of 19%, which is the highest we have
ever achieved in the history of AGMH. These results are strong
testament to our capabilities in technology development and rapid
business transformation. Moving forward, we will continue focusing
on delivering mining machines, acquiring sound customers, and
improving supply chain while expanding additional growth
avenues."
First Half 2022 Financial Results
Revenues
Total revenues were $113.6
million, representing an increase of 209.5% from
$36.7 million in the second half of
2021. The increase was primarily due to the increased volume of
cryptocurrency mining machines and computing equipment sold.
Cost of Revenues
Cost of revenues was $91.9
million, representing an increase of 205.2% from
$30.1 million in the second half of
2021. The increase was mainly attributable to the increase in
procurement costs for cryptocurrency mining machines and computing
equipment.
Gross Profit
Gross profit was $21.6 million,
compared to $6.6 million in the
second half of 2021. The increase was primarily due to the
substantial increase in revenues.
Operating expenses
Total operating expenses were $1.7
million, remain flat from $1.7
million in the second half of 2021.
- Selling, general, and administrative expenses were $1.7 million, an increase of 4.3% from
$1.6 million in the second half of
2021. The increase was primarily due to the higher professional
service fees related to being a public-traded company.
- Research and development expenses were nil, compared with
$36,317 in the second half of 2021.
The decrease was mainly due to the decrease in FinTech
R&D. The Company has not invested in cryptocurrency mining
machine R&D yet.
Income from operations
Income from operations was $19.9
million, compared to $4.9
million in the second half of 2021.
Other expenses
Total other expenses, net of other income was $0.2 million, compared to total other expenses,
net of other income, of $3,996 in the
second half of 2021.
Net income
Net income was $14.6 million,
compared to net income of $3.5
million in the same half of 2021.
Earnings per share
Basic and diluted net income per common share were both
$0.68.
Cash and cash equivalents
Cash and cash equivalent were $9.7
million as of June 30, 2022,
compared to $18.4 million as of
December 31, 2021.
About AGM Group Holdings Inc.
Incorporated in April 2015 and
headquartered in Beijing, China,
AGM Group Holdings Inc. (NASDAQ: AGMH) is an integrated technology
company focusing on providing fintech software services and
producing high-performance hardware and computing equipment. AGMH's
mission is to become one of the key participants and contributors
in the global fintech and blockchain ecosystem. For more
information, please visit www.agmprime.com.
Forward Looking Statements
This news release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar
statements. All statements other than statements of historical fact
in this press release are forward-looking statements and involve
certain risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements.
These forward-looking statements are based on management's current
expectations, assumptions, estimates and projections about the
Company and the industry in which the Company operates, but involve
a number of unknown risks and uncertainties, Further information
regarding these and other risks is included in the Company's
filings with the U.S. Securities and Exchange Commission. The
Company undertakes no obligation to update forward-looking
statements to reflect subsequent occurring events or circumstances,
or changes in its expectations, except as may be required by law.
Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, it cannot assure
you that such expectations will turn out to be correct, and actual
results may differ materially from the anticipated results. You are
urged to consider these factors carefully in evaluating the
forward-looking statements contained herein and are cautioned not
to place undue reliance on such forward-looking statements, which
are qualified in their entirety by these cautionary statements.
For more information, please contact:
In China:
At the Company:
Email: ir@agmprime.com
Seaquant Consulting
Mr. Roye Zhang
Email: roye@sea-quant.com
|
AGM GROUP HOLDINGS,
INC.
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(Amounts in US$,
except for number of shares)
|
|
|
|
|
June
30,
|
|
|
December 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
9,652,146
|
|
$
|
18,426,622
|
|
Accounts receivable,
net
|
|
|
54,988,661
|
|
|
2,608,325
|
|
Inventories
|
|
|
3,565,417
|
|
|
22,433,140
|
|
Advances to
suppliers
|
|
|
63,262,135
|
|
|
40,485,521
|
|
Prepayment and other
current assets
|
|
|
3,117,680
|
|
|
2,926,425
|
|
Loan receivable from
third parties
|
|
|
1,580,000
|
|
|
400,000
|
|
Due from related
party
|
|
|
175,930
|
|
|
39,238
|
|
Total current
assets
|
|
|
136,341,969
|
|
|
87,319,271
|
|
NON - CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
188,305
|
|
|
322,397
|
|
Construction in
progress
|
|
|
394,805
|
|
|
-
|
|
Intangible assets,
net
|
|
|
7,893
|
|
|
8,633
|
|
Operating lease
right-of-use assets
|
|
|
187,800
|
|
|
241,554
|
|
Deferred tax
assets
|
|
|
221,195
|
|
|
129,034
|
|
Total non - current
assets
|
|
|
999,998
|
|
|
701,618
|
|
TOTAL
ASSETS
|
|
$
|
137,341,967
|
|
$
|
88,020,889
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
-
|
|
$
|
1,568,455
|
|
Accounts
payable
|
|
|
42,169,789
|
|
|
14,116,569
|
|
Accrued expenses and
other payables
|
|
|
12,062,493
|
|
|
3,597,440
|
|
Advances from
customers
|
|
|
38,568,323
|
|
|
42,231,914
|
|
Due to related
parties
|
|
|
8,972,893
|
|
|
1,215,573
|
|
Deferred government
grant - current
|
|
|
37,046
|
|
|
38,111
|
|
Operating lease
liabilities - current
|
|
|
24,655
|
|
|
51,239
|
|
Total current
liabilities
|
|
|
101,835,199
|
|
|
62,819,301
|
|
NON - CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Deferred government
grant - non current
|
|
|
121,927
|
|
|
147,812
|
|
Total non - current
liabilities
|
|
|
121,927
|
|
|
147,812
|
|
TOTAL
LIABILITIES
|
|
$
|
101,957,126
|
|
$
|
62,967,113
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
Class A Ordinary
Shares (200,000,000 shares
authorized with par value of $0.001, 24,254,842 and
24,254,842 shares issued and outstanding as of June
30, 2022 and December 31, 2021, respectively)
|
|
$
|
24,255
|
|
$
|
24,255
|
|
Class B Ordinary
Shares (200,000,000 shares
authorized with par value of $0.001, 2,100,000 and
2,100,000 shares issued and outstanding as of June
30, 2022 and December 31, 2021, respectively)
|
|
|
2,100
|
|
|
2,100
|
|
Additional paid-in
capital
|
|
|
26,010,366
|
|
|
26,010,366
|
|
Statutory
reserves
|
|
|
348,131
|
|
|
63,659
|
|
Retained
earnings/(Accumulated deficit)
|
|
|
12,822,783
|
|
|
(1,459,779)
|
|
Accumulated other
comprehensive (loss)/income
|
|
|
(3,822,794)
|
|
|
413,175
|
|
Total shareholders'
equity
|
|
|
35,384,841
|
|
|
25,053,776
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS'
EQUITY
|
|
$
|
137,341,967
|
|
$
|
88,020,889
|
|
AGM GROUP HOLDINGS,
INC.
|
|
CONSOLIDATED
STATEMENTS OF OPEATIONS AND COMPREHENSIVE INCOME
|
|
(Amounts in US$,
except for number of shares)
|
|
|
|
For the Six Months
Ended
|
|
|
June
30,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Revenues
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
113,528,876
|
|
$
|
-
|
|
Total
Revenues
|
|
|
113,528,876
|
|
|
-
|
|
Cost of
Revenues
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
(91,924,102)
|
|
|
-
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
21,604,774
|
|
|
-
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling, general &
administrative expenses
|
|
|
1,675,355
|
|
|
480,495
|
|
Research and
development expenses
|
|
|
-
|
|
|
22,505
|
|
Total operating
expenses
|
|
|
1,675,355
|
|
|
503,000
|
|
|
|
|
|
|
|
|
Income/(Loss) from
operations
|
|
|
19,929,419
|
|
|
(503,000)
|
|
|
|
|
|
|
|
|
Other
income/(expenses)
|
|
|
|
|
|
|
|
Other
income
|
|
|
22,983
|
|
|
177
|
|
Other
expenses
|
|
|
(252,974)
|
|
|
(5,002)
|
|
Total other
expenses
|
|
|
(229,991)
|
|
|
(4,825)
|
|
|
|
|
|
|
|
|
Income/(Loss) before
provision of income taxes
|
|
|
19,699,428
|
|
|
(507,825)
|
|
Provision for income
taxes expenses
|
|
|
(5,132,394)
|
|
|
-
|
|
Net
income/(loss)
|
|
|
14,567,034
|
|
|
(507,825)
|
|
|
|
|
|
|
|
|
Comprehensive
income/(loss)
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
$
|
14,567,034
|
|
$
|
(507,825)
|
|
Other comprehensive
loss
|
|
|
-
|
|
|
-
|
|
Foreign currency
translation adjustment
|
|
|
(4,235,969)
|
|
|
(92,173)
|
|
Total comprehensive
income/(loss)
|
|
$
|
10,331,065
|
|
$
|
(599,998)
|
|
|
|
|
|
|
|
|
Income/(Loss)
earnings per common share
|
|
|
|
|
|
|
|
Net income/(loss) per
common share - basic
|
|
$
|
0.68
|
|
$
|
(0.02)
|
|
Net income/(loss) per
common share - diluted
|
|
$
|
0.68
|
|
$
|
(0.02)
|
|
Weighted average Class
A ordinary shares
outstanding, basic
|
|
|
21,491,291
|
|
|
21,356,290
|
|
Weighted average Class
A ordinary shares
outstanding, diluted
|
|
|
21,491,291
|
|
|
21,356,290
|
|
AGM GROUP HOLDINGS,
INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Amounts in
US$)
|
|
|
|
For the Six Months
Ended
|
|
|
June
30,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
$
|
14,567,034
|
|
$
|
(507,825)
|
|
|
|
|
|
|
|
|
Adjustment to
reconcile net income to net cash
used in operating activities
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
211,435
|
|
|
8,283
|
|
Amortization of
operating lease right-of-use
asset
|
|
|
53,754
|
|
|
-
|
|
Other
income
|
|
|
(22,009)
|
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(52,380,336)
|
|
|
-
|
|
Advances to
suppliers
|
|
|
(22,776,614)
|
|
|
-
|
|
Prepayment and other
current assets
|
|
|
(191,255)
|
|
|
2,498
|
|
Loan receivable from
third parties
|
|
|
(1,180,000)
|
|
|
|
|
Inventories
|
|
|
18,867,723
|
|
|
-
|
|
Deferred tax
assets
|
|
|
(92,161)
|
|
|
-
|
|
Accounts
payable
|
|
|
28,053,220
|
|
|
(3,376)
|
|
Accrued expenses and
other payables
|
|
|
8,465,054
|
|
|
152,233
|
|
Advances from
customers
|
|
|
(3,663,591)
|
|
|
-
|
|
Deferred government
grant
|
|
|
(4,941)
|
|
|
-
|
|
Operating lease
liabilities
|
|
|
(26,584)
|
|
|
-
|
|
Net cash used in
operating activities
|
|
|
(10,119,271)
|
|
|
(348,187)
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(85,575)
|
|
|
-
|
|
Purchase of
construction in progress
|
|
|
(394,805)
|
|
|
-
|
|
Net cash used in
investing activities
|
|
|
(480,380)
|
|
|
-
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Proceeds from related
parties
|
|
|
8,000,000
|
|
|
152,454
|
|
Repayment of
short-term borrowings
|
|
|
(1,568,455)
|
|
|
-
|
|
Repayments to related
parties
|
|
|
(2,086)
|
|
|
(9,707)
|
|
Net cash (used
in)/provided by financing activities
|
|
|
6,429,459
|
|
|
142,747
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash
equivalents
|
|
|
(4,604,284)
|
|
|
1,845
|
|
Net change in cash and
cash equivalents
|
|
|
(8,774,476)
|
|
|
(203,595)
|
|
Cash and cash
equivalents, beginning of the year
|
|
|
18,426,622
|
|
|
664,605
|
|
Cash and cash
equivalents, end of the year
|
|
$
|
9,652,146
|
|
$
|
461,010
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
7,198
|
|
$
|
-
|
|
Income taxes
paid
|
|
$
|
29,900
|
|
$
|
-
|
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
Expense paid by
related party
|
|
$
|
-
|
|
$
|
3,092
|
View original
content:https://www.prnewswire.com/news-releases/agm-group-announces-first-half-2022-unaudited-financial-results-with-record-revenue-and-profitability-301706049.html
SOURCE AGM Group Holdings Inc.
