Company Reports 52% Revenue Growth, Initiates $15 Million Share Buyback Program
SHANGHAI, Oct. 15,
2024 /PRNewswire/ -- Nisun International Enterprise
Development Group Co., Ltd. ("Nisun International" or the
"Company") (Nasdaq: NISN), a technology and industry driven
integrated supply chain solutions provider, today announced its
reviewed but unaudited financial results for the six months ended
June 30, 2024.
First Half 2024 Financial Highlights:
- Total revenue increased by 52% to $192.5 million, compared to $126.9 million for the first half of 2023.
- Supply chain trading business revenue increased by
114% to $142.1 million, up from
$66.2 million in the prior-year
period, driven primarily by growth in the gold trading sector.
- Small and medium-sized enterprises ("SME") financing
services revenue declined by 16% to $48.5 million due to the challenging market
conditions, but the Company is optimistic about the future growth
as recent government stimulus measures in China begin to take effect.
- Supply chain financing solutions revenue decreased
by 30% to $1.9 million, also impacted
by market conditions, but is expected to recover alongside broader
economic improvements.
- Net income was $10.3
million, compared to $11.4
million for the first half of 2023.
- Earnings per share were $2.61, compared to $2.87 in the prior-year period.
Operational Highlights:
- Cash Position: As of June 30,
2024, The Company's cash and cash equivalents
were $47.8 million, compared to
$114.4 million at the end of 2023.
This decline was primarily driven by an increase in advances to
suppliers, a strategic investment expected to fund future growth in
sales and earnings. Additionally, a decrease in accounts payable
contributed to the cash reduction.
- Cost Control: Operating expenses decreased by 31% to
$5.7 million, reflecting effective
cost management and efficiency improvements. Selling expenses fell
by 69% as the Company maintained existing sales channels without
expanding into new ones, and general and administrative expenses
were reduced by 14% due to enhanced cost controls.
- Buyback Program: Nisun International has approved a
$15 million share buyback program,
which underscores the Company's confidence in its future growth and
commitment to enhancing shareholder value. The program will begin
as soon as the trading window opens in the coming days.
Management Commentary:
Mr. Xin Liu, Chief Executive
Officer of Nisun International, commented:
"We are very pleased with our strong financial performance in the
first half of 2024, marked by a significant 52% increase in total
revenue. Our supply chain trading business continues to grow at an
impressive rate, particularly in the gold trading sector, which
underscores the effectiveness of our business model and
technology-driven approach. While the challenging economic
conditions impacted our SME financing services, we are beginning to
see signs of a turnaround following the government's recent
stimulus measures, and we are optimistic about the future of this
segment.
Looking ahead, we remain committed to enhancing operational
efficiency and seeking new growth opportunities. We also believe
our stock is significantly undervalued, which is why we are excited
to announce a $15 million share
buyback program. Our largest shareholder has already demonstrated
confidence in our future by increasing their stake by approximately
$1 million during the first half of
the year. We are confident that our growth initiatives and the
share repurchase program will create additional value for our
shareholders in the near term and beyond."
2024 Outlook:
Nisun International expects the momentum in its supply chain
trading business to continue through the second half of 2024 and
into 2025. With the Chinese government's stimulus measures
beginning to take effect, the Company anticipates a more favorable
environment for its SME financing and supply chain financing
solutions, positioning Nisun International for sustained growth in
the coming periods.
Details of the conference call, including dial-in
information, will be announced in the coming days.
About Nisun International Enterprise Development Group Co.,
Ltd
Nisun International Enterprise Development Group Co., Ltd.
(NASDAQ: NISN) is a technology-driven, integrated supply chain
solutions provider focused on transforming the corporate finance
industry. Leveraging its industry experience, Nisun International
is dedicated to providing professional supply chain solutions to
Chinese and foreign enterprises and financial institutions. Through
its subsidiaries, Nisun International provides users with
professional solutions for technology supply chain management,
technology asset routing, and digital transformation of tech and
finance institutions, enabling the industry to strengthen and grow.
At the same time, Nisun International continues to deepen the field
of industry segmentation through industrial and financial
integration. Focusing on industry-finance linkages, Nisun
International aims to serve the upstream and downstream of the
industrial supply chain while also assisting with supply-side
sub-sector reform. For more information, please visit
http://ir.nisun-international.com/
Cautionary Note Regarding Forward-Looking
Statements
This press release contains information about
Nisun International 's view of its future
expectations, plans and prospects that constitute forward-looking
statements. Actual results may differ materially from historical
results or those indicated by these forward-looking statements as a
result of a variety of factors including, but not limited to, risks
and uncertainties associated with its ability to raise additional
funding, its ability to maintain and grow its business, variability
of operating results, its ability to maintain and enhance its
brand, its development and introduction of new products and
services, the successful integration of acquired companies,
technologies and assets into its portfolio of products and
services, marketing and other business development initiatives,
competition in the industry, general government regulation,
economic conditions, dependence on key personnel, the ability to
attract, hire and retain personnel who possess the technical skills
and experience necessary to meet the requirements of its clients,
and its ability to protect its intellectual property. Nisun
encourages you to review other factors that may affect its future
results in Nisun's registration statement and in its other filings
with the Securities and Exchange Commission. Nisun assumes no
obligation to update or revise its forward-looking statements as a
result of new information, future events or otherwise, except as
expressly required by applicable law.
Contacts
Nisun International Enterprise Development Group Co.,
Ltd
Investor Relations
Tel: +86 (21) 2357-0055
Email: ir@cnisun.com
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SOURCE Nisun International Enterprise Development Group Co.,
Ltd