TIAN RUIXIANG Holdings Ltd Reports Financial Results for Fiscal Year Ended October 31, 2023
17 Juillet 2024 - 11:42PM
TIAN RUIXIANG Holdings Ltd (Nasdaq: TIRX) (the "Company"), a
China-based insurance broker conducting business through its
variable interest entity in China, today announced its financial
results for the fiscal year ended October 31, 2023.
Ms. Sheng Xu, the Chief Executive Officer of the Company,
commented, “For the year ended October 31, 2023, the Company
generated revenue of about $1.2 million, representing an 8.0%
decrease compared to the prior year's revenue. This decline was
primarily attributable to the lower commissions from several
insurance products and loss of certain insurance company partners
amid an increasingly competitive market and challenging
macroeconomic environment in China.”
“However, we achieved a significant increase of approximately
$612,000 in the commissions from our liability insurance products,
driven by our efforts to expand our liability insurance
business.”
“Despite the revenue decline, we were able to reduce the
net loss by 47.6% to $2.5 million, down from $4.7 million in the
prior year. Overall, while we faced headwinds in certain insurance
products, we were able to drive substantial growth in the liability
insurance commissions, which is a positive indicator for the
Company's strategic focus. Additionally, the reduction in the net
loss demonstrates improved financial performance and operational
efficiency compared to the prior year.”
Selected Fiscal Year 2023 Financial Metrics
|
|
Years Ended October 31, |
|
Changes in |
|
($ in millions, except per share data, differences due to
rounding.) |
|
2023 |
|
2022 |
|
Percentage |
|
Revenues |
|
$ |
1.2 |
|
$ |
1.4 |
|
(8.0) |
% |
Total operating expenses |
|
|
4.3 |
|
|
6.4 |
|
(33.6) |
% |
Loss from operations |
|
|
(3.0) |
|
|
(5.1) |
|
(40.5) |
% |
Net loss |
|
|
(2.5) |
|
|
(4.7) |
|
(47.6) |
% |
Loss per share |
|
|
(3.87) |
|
|
(9.03) |
|
(55.4) |
% |
- Revenue decreased by 8.0% to $1.2
million for the year ended October 31, 2023, compared with $1.4
million for the same period in 2022.
- Total operating expenses were $4.3
million for the year ended October 31, 2023, decreased from $6.4
million for the same period in 2022.
- Loss from operations narrowed by
40.5% to $3.0 million for the year ended October 31, 2023, from
$5.1 million for the same period in 2022.
- Net loss also decreased by 47.6% to
$2.5 million for the year ended October 31, 2023, from $4.7 million
for the same period in 2022.
About TIAN RUIXIANG Holdings Ltd
TIAN RUIXIANG Holdings Ltd, headquartered in Beijing, China, is
an insurance broker operating in China through its China-based
variable interest entity. It distributes a wide range of insurance
products, which are categorized into two major groups: (1) property
and casualty insurance, such as commercial property insurance,
liability insurance, accidental insurance, and automobile
insurance; and (2) other types of insurance, such as health
insurance, life insurance, and other miscellaneous insurance. For
more information, visit the company's website at
http://ir.tianrx.com/.
Forward-Looking Statements
Certain statements in this announcement are forward-looking
statements. These forward-looking statements involve known and
unknown risks and uncertainties and are based on current
expectations and projections about future events and financial
trends that the Company believes may affect its financial
condition, results of operations, business strategy and financial
needs. Investors can identify these forward-looking statements by
words or phrases such as "may," "will," "expect," "anticipate,"
"aim," "estimate," "intend," "plan," "believe," "potential,"
"continue," "is/are likely to" or other similar expressions. 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 the
Company cautions investors that actual results may differ
materially from the anticipated results and encourages investors to
review risk factors that may affect its future results in the
Company's registration statement and in its other filings with the
U.S. Securities and Exchange Commission.
For investor and media enquiries, please
contact:
TIAN RUIXIANG Holdings LtdInvestor Relations DepartmentEmail:
ir@tianrx.com
Wealth Financial Services LLCConnie KangPartnerEmail:
ckang@wealthfsllc.comTel: +86 1381 185 7742 (CN)
TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(IN U.S. DOLLARS) |
|
|
|
|
|
|
|
|
|
|
As of October 31, |
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
Cash |
|
$ |
2,383 |
|
|
$ |
2,508 |
|
Restricted cash |
|
|
692,692 |
|
|
|
692,734 |
|
Short-term investments |
|
|
26,797,081 |
|
|
|
26,179,662 |
|
Accounts receivable |
|
|
18,960 |
|
|
|
51,202 |
|
Note receivable |
|
|
— |
|
|
|
7,500,000 |
|
Interest receivable |
|
|
— |
|
|
|
262,192 |
|
Due from related party |
|
|
— |
|
|
|
1,369 |
|
Other current assets |
|
|
107,508 |
|
|
|
168,957 |
|
|
|
|
|
|
|
|
Total Current Assets |
|
|
27,618,624 |
|
|
|
34,858,624 |
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
|
|
|
Note receivable |
|
|
7,800,000 |
|
|
|
— |
|
Property and equipment,
net |
|
|
6,280 |
|
|
|
8,688 |
|
Right-of-use assets, operating
leases, net |
|
|
54,870 |
|
|
|
143,438 |
|
Other non-current assets |
|
|
— |
|
|
|
20,078 |
|
|
|
|
|
|
|
|
Total Non-current Assets |
|
|
7,861,150 |
|
|
|
172,204 |
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
35,479,774 |
|
|
$ |
35,030,828 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
Taxes payable |
|
$ |
623,825 |
|
|
$ |
466,878 |
|
Salary payable |
|
|
726,330 |
|
|
|
424,987 |
|
Accrued liabilities and other
payables |
|
|
481,801 |
|
|
|
384,893 |
|
Due to related parties |
|
|
1,173,510 |
|
|
|
126,530 |
|
Operating lease
liabilities |
|
|
57,402 |
|
|
|
90,800 |
|
|
|
|
|
|
|
|
Total Current Liabilities |
|
|
3,062,868 |
|
|
|
1,494,088 |
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
|
Operating lease liabilities -
noncurrent portion |
|
|
— |
|
|
|
54,718 |
|
|
|
|
|
|
|
|
Total Non-current
Liabilities |
|
|
— |
|
|
|
54,718 |
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
3,062,868 |
|
|
|
1,548,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
|
TIAN RUIXIANG Holdings Ltd
Shareholders' Equity: |
|
|
|
|
|
|
Ordinary shares: $0.025 par
value; 40,000,000 shares authorized; |
|
|
|
|
|
|
Class A ordinary shares:
$0.025 par value; 36,000,000 shares authorized; 674,949 shares
issued and outstanding at October 31, 2023; 507,440 shares issued
and 505,440 shares outstanding at October 31, 2022 |
|
|
16,874 |
|
|
|
12,636 |
|
Class B ordinary shares:
$0.025 par value; 4,000,000 shares authorized; 50,000 shares issued
and outstanding at October 31, 2023 and 2022 |
|
|
1,250 |
|
|
|
1,250 |
|
Additional paid-in
capital |
|
|
44,108,774 |
|
|
|
42,663,012 |
|
Less: ordinary stock held in
treasury, at cost; 0 share at October 31, 2023 and 2,000 shares at
October 31, 2022 |
|
|
— |
|
|
|
— |
|
Accumulated deficit |
|
|
(8,303,691 |
) |
|
|
(5,800,817 |
) |
Statutory reserve |
|
|
275,150 |
|
|
|
226,253 |
|
Accumulated other
comprehensive loss |
|
|
(3,681,845 |
) |
|
|
(3,620,712 |
) |
Total TIAN RUIXIANG Holdings
Ltd shareholders' equity |
|
|
32,416,512 |
|
|
|
33,481,622 |
|
Non-controlling interest |
|
|
394 |
|
|
|
400 |
|
|
|
|
|
|
|
|
Total Equity |
|
|
32,416,906 |
|
|
|
33,482,022 |
|
|
|
|
|
|
|
|
Total Liabilities and
Equity |
|
$ |
35,479,774 |
|
|
$ |
35,030,828 |
|
|
|
|
|
|
|
|
|
|
TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIESCONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE LOSS(IN U.S. DOLLARS) |
|
|
|
For the Years Ended October 31, |
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
|
|
|
|
|
|
|
|
|
Commissions |
|
$ |
1,244,247 |
|
|
$ |
1,324,655 |
|
|
$ |
2,675,611 |
|
Risk management services |
|
|
— |
|
|
|
27,254 |
|
|
|
115,006 |
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
|
|
1,244,247 |
|
|
|
1,351,909 |
|
|
|
2,790,617 |
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
|
2,438,248 |
|
|
|
1,764,909 |
|
|
|
2,517,497 |
|
General and administrative -
professional fees |
|
|
1,220,367 |
|
|
|
1,185,930 |
|
|
|
1,011,053 |
|
General and administrative -
compensation and related benefits |
|
|
460,791 |
|
|
|
2,691,751 |
|
|
|
948,900 |
|
General and administrative -
other |
|
|
141,167 |
|
|
|
654,587 |
|
|
|
566,971 |
|
Impairment loss |
|
|
— |
|
|
|
123,646 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
4,260,573 |
|
|
|
6,420,823 |
|
|
|
5,044,421 |
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM OPERATIONS |
|
|
(3,016,326 |
) |
|
|
(5,068,914 |
) |
|
|
(2,253,804 |
) |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
731,961 |
|
|
|
434,406 |
|
|
|
315,070 |
|
Other (expense) income |
|
|
(8,278 |
) |
|
|
(26,042 |
) |
|
|
18,686 |
|
|
|
|
|
|
|
|
|
|
|
Total Other Income, net |
|
|
723,683 |
|
|
|
408,364 |
|
|
|
333,756 |
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAXES |
|
|
(2,292,643 |
) |
|
|
(4,660,550 |
) |
|
|
(1,920,048 |
) |
|
|
|
|
|
|
|
|
|
|
INCOME TAXES |
|
|
161,339 |
|
|
|
23,639 |
|
|
|
24,529 |
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(2,453,982 |
) |
|
$ |
(4,684,189 |
) |
|
$ |
(1,944,577 |
) |
|
|
|
|
|
|
|
|
|
|
LESS: NET LOSS ATTRIBUTABLE TO
NON-CONTROLLING INTEREST |
|
|
(5 |
) |
|
|
(32 |
) |
|
|
(28 |
) |
|
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE TO TIAN
RUIXIANG HOLDINGS LTD ORDINARY SHAREHOLDERS |
|
$ |
(2,453,977 |
) |
|
$ |
(4,684,157 |
) |
|
$ |
(1,944,549 |
) |
|
|
|
|
|
|
|
|
|
|
NET LOSS PER ORDINARY SHARE
ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD ORDINARY
SHAREHOLDERS: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(3.87 |
) |
|
$ |
(9.03 |
) |
|
$ |
(5.65 |
) |
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE ORDINARY
SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
633,336 |
|
|
|
518,655 |
|
|
|
344,425 |
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS: |
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(2,453,982 |
) |
|
$ |
(4,684,189 |
) |
|
$ |
(1,944,577 |
) |
OTHER COMPREHENSIVE (LOSS)
INCOME |
|
|
|
|
|
|
|
|
|
Unrealized foreign currency
translation (loss) gain |
|
|
(61,134 |
) |
|
|
(3,717,478 |
) |
|
|
214,123 |
|
COMPREHENSIVE LOSS |
|
|
(2,515,116 |
) |
|
|
(8,401,667 |
) |
|
|
(1,730,454 |
) |
LESS: COMPREHENSIVE LOSS
ATTRIBUTABLE TO NON-CONTROLLING INTEREST |
|
|
(6 |
) |
|
|
(89 |
) |
|
|
(6 |
) |
COMPREHENSIVE LOSS
ATTRIBUTABLE TO TIAN RUIXIANG HOLDINGS LTD ORDINARY
SHAREHOLDERS |
|
$ |
(2,515,110 |
) |
|
$ |
(8,401,578 |
) |
|
$ |
(1,730,448 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIESCONSOLIDATED STATEMENTS
OF CASH FLOWS(IN U.S. DOLLARS) |
|
|
|
For the Years Ended October 31, |
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,453,982 |
) |
|
$ |
(4,684,189 |
) |
|
$ |
(1,944,577 |
) |
Adjustments to reconcile net
loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation expense and
amortization of intangible assets |
|
|
1,631 |
|
|
|
22,853 |
|
|
|
27,447 |
|
Amortization of right-of-use
assets |
|
|
78,126 |
|
|
|
185,421 |
|
|
|
227,661 |
|
Impairment loss |
|
|
— |
|
|
|
123,646 |
|
|
|
696 |
|
Stock-based compensation and
service expense |
|
|
1,450,000 |
|
|
|
2,888,787 |
|
|
|
— |
|
Bad debt provision |
|
|
7,338 |
|
|
|
— |
|
|
|
— |
|
Loss on disposal of property
and equipment |
|
|
848 |
|
|
|
— |
|
|
|
— |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
25,983 |
|
|
|
254,109 |
|
|
|
969,374 |
|
Security deposit |
|
|
6,726 |
|
|
|
37,853 |
|
|
|
(43,750 |
) |
Interest receivable |
|
|
262,192 |
|
|
|
(149,178 |
) |
|
|
(113,014 |
) |
Due from related party |
|
|
1,417 |
|
|
|
(1,511 |
) |
|
|
— |
|
Other assets |
|
|
91,348 |
|
|
|
495,668 |
|
|
|
(74,120 |
) |
Taxes payable |
|
|
163,500 |
|
|
|
36,553 |
|
|
|
(78,932 |
) |
Salary payable |
|
|
347,567 |
|
|
|
349,436 |
|
|
|
— |
|
Accrued liabilities and other
payables |
|
|
99,649 |
|
|
|
304,576 |
|
|
|
(123,052 |
) |
Due to related parties |
|
|
992,277 |
|
|
|
126,228 |
|
|
|
12,025 |
|
Operating lease liabilities -
related party |
|
|
— |
|
|
|
— |
|
|
|
(29,355 |
) |
Operating lease
liabilities |
|
|
(80,316 |
) |
|
|
(189,012 |
) |
|
|
(194,341 |
) |
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES |
|
|
994,304 |
|
|
|
(198,760 |
) |
|
|
(1,363,938 |
) |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
|
— |
|
|
|
(2,346 |
) |
|
|
(3,411 |
) |
Investment in note
receivable |
|
|
(7,800,000 |
) |
|
|
— |
|
|
|
(7,500,000 |
) |
Proceeds from note
receivable |
|
|
7,500,000 |
|
|
|
— |
|
|
|
— |
|
Purchase of short-term
investments |
|
|
(27,779,231 |
) |
|
|
(29,011,783 |
) |
|
|
- |
|
Proceeds from sale of
short-term investments |
|
|
27,086,514 |
|
|
|
116,663 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
NET CASH USED IN INVESTING
ACTIVITIES |
|
|
(992,717 |
) |
|
|
(28,897,466 |
) |
|
|
(7,503,411 |
) |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
|
|
Proceeds from note
payable |
|
|
— |
|
|
|
— |
|
|
|
75,581 |
|
Repayment of note payable |
|
|
— |
|
|
|
— |
|
|
|
(75,581 |
) |
Proceeds from related parties'
borrowings |
|
|
9,535 |
|
|
|
225,171 |
|
|
|
1,893,932 |
|
Repayments of related parties'
borrowings |
|
|
(9,818 |
) |
|
|
(225,171 |
) |
|
|
(2,272,145 |
) |
Proceeds from initial public
offering |
|
|
— |
|
|
|
— |
|
|
|
12,300,000 |
|
Disbursements for initial
public offering costs |
|
|
— |
|
|
|
— |
|
|
|
(1,489,388 |
) |
Proceeds from the June 2021
public offering |
|
|
— |
|
|
|
— |
|
|
|
24,562,500 |
|
Disbursements for the June
2021 public offering costs |
|
|
— |
|
|
|
— |
|
|
|
(2,352,418 |
) |
|
|
|
|
|
|
|
|
|
|
NET CASH (USED IN) PROVIDED BY
FINANCING ACTIVITIES |
|
|
(283 |
) |
|
|
— |
|
|
|
32,642,481 |
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE ON
CASH AND RESTRICTED CASH |
|
|
(1,471 |
) |
|
|
(1,052,173 |
) |
|
|
145,014 |
|
|
|
|
|
|
|
|
|
|
|
NET (DECREASE) INCREASE IN
CASH AND RESTRICTED CASH |
|
|
(167 |
) |
|
|
(30,148,399 |
) |
|
|
23,920,146 |
|
|
|
|
|
|
|
|
|
|
|
CASH AND RESTRICTED CASH -
beginning of year |
|
|
695,242 |
|
|
|
30,843,641 |
|
|
|
6,923,495 |
|
|
|
|
|
|
|
|
|
|
|
CASH AND RESTRICTED CASH - end
of year |
|
$ |
695,075 |
|
|
$ |
695,242 |
|
|
$ |
30,843,641 |
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
|
Cash paid for: |
|
|
|
|
|
|
|
|
|
Interest |
|
$ |
— |
|
|
$ |
22 |
|
|
$ |
725 |
|
Income taxes |
|
$ |
807 |
|
|
$ |
— |
|
|
$ |
2,251 |
|
|
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING AND
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Reissuance of treasury
stock |
|
$ |
25,000 |
|
|
$ |
— |
|
|
$ |
— |
|
Payments made by related
parties on the Company’s behalf |
|
$ |
1,068,700 |
|
|
$ |
— |
|
|
$ |
119,886 |
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF CASH AND
RESTRICTED CASH |
|
|
|
|
|
|
|
|
|
Cash at beginning of year |
|
$ |
2,508 |
|
|
$ |
30,024,372 |
|
|
$ |
6,137,689 |
|
Restricted cash at beginning
of year |
|
|
692,734 |
|
|
|
819,269 |
|
|
|
785,806 |
|
Total cash and restricted cash
at beginning of year |
|
$ |
695,242 |
|
|
$ |
30,843,641 |
|
|
$ |
6,923,495 |
|
|
|
|
|
|
|
|
|
|
|
Cash at end of year |
|
$ |
2,383 |
|
|
$ |
2,508 |
|
|
$ |
30,024,372 |
|
Restricted cash at end of
year |
|
|
692,692 |
|
|
|
692,734 |
|
|
|
819,269 |
|
Total cash and restricted cash
at end of year |
|
$ |
695,075 |
|
|
$ |
695,242 |
|
|
$ |
30,843,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tian Ruixiang (NASDAQ:TIRX)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Tian Ruixiang (NASDAQ:TIRX)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024