News Releases

News Releases

Thu February 9th, 2017 | Wins Finance Holdings Inc. Announces that it is not in Possession of any Material Non-Public Information

BEIJING and NEW YORK, Feb. 9, 2017 /PRNewswire/ — Wins Finance Holdings Inc. (“Wins Finance” or the “Company”) (WINS), a diversified investment and asset management company that provides integrated financing solutions to small and medium enterprises (“SMEs”) in China, today announced that it is not in possession of any material non-public information and that it is not aware of the reasons for the recent volatility in its stock price. The Company’s management thought it prudent to advise the market of this given recent fluctuations in its stock price.

About Wins Finance

Wins Finance is a diversified investment and asset management company listed on NASDAQ. The company is focused on identifying value accretive investment opportunities and assets in China and the United States that can be enhanced through the strategic involvement of Wins’ established management team and its familiarity with the Chinese investment community to help generate long-term value for shareholders. Wins Finance is well positioned to leverage its expertise and existing operations in China to build a comprehensive platform for the provision of lending and other financing solutions to the under-served small and medium enterprise segment. For more information, please visit www.winsholdings.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 are described 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.

Company Contact Information:

Wins Finance Holdings Inc.
7 Times Square
37th Floor
New York, NY 10036
Tel: 212-488-4974
E-mail: info@winsholdings.comTo view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wins-finance-holdings-inc-announces-that-it-is-not-in-possession-of-any-material-non-public-information-300405494.html

Fri Jan 6th, 2017 | Wins Finance Holdings Inc. Reports Unaudited Fiscal First Quarter 2017 Financial Results

NEW YORK, Jan. 6, 2017 /PRNewswire/ — Wins Finance Holdings Inc. (“Wins Finance” or the “Company”) (NASDAQ: WINS), a diversified investment and asset management company that provides integrated financing solutions to small and medium enterprises (“SMEs”) in China, today announced its unaudited financial results for the quarter ended September 30, 2016.

Fiscal First Quarter Financial and Operational Highlights

  • Gross revenues were $2.3 million, compared to $2.2 million for the comparable period last year.
  • Interest on short-term investments was $3.5 million, compared to $3.6 million for the comparable period last year.
  • Net income attributable to Wins Finance was $3.1million for the quarter ended September 30, 2016, compared to $4.7 million for the same period ended September 30, 2015.

“In the past year, we have made progress in our direct leasing business in the medical equipment and new energy sectors. $22.11 million (RMB 147 million) and $44.98 million (RMB300 million) were funded to medical equipment and new energy sectors, respectively. We remain focused on development of our leasing business in these sectors, both of which offer significant opportunities for investment. We expect these two sectors to continue to grow despite the economic slowdown and other macroeconomic factors,” said Renhui Mu, Co CEO and COO of Wins Finance. “We continue to expand our pipeline of leasing opportunities, and expect our geographic footprint to increase during in the second half of 2017.”

Quarter Ended September 30, 2016 Results

Gross revenue

Wins Finance’s gross revenue for the quarter ended September 30, 2016 was $2.3 million, which consists of $0.8 million of commissions and fees generated from its financial guarantee services, and $1.5 million of direct financing lease interest income.

Commissions and fees on financial guarantee services generated from financial guarantee services the Company provides to customers decreased by $0.9 million, or 52.3%, to $0.8 million for the quarter ended September 30, 2016, compared to $1.8 million for the quarter ended September 30, 2015. The decrease was primarily attributable to reduced lending activities due to the economic recession in Shanxi province and our increased scrutiny of potential clients as a result thereof.

Direct financing lease interest income generated from payments under direct financing leases with customers increased by $1.0 million, or 208.4%, to $1.5 million for the quarter ended September 30, 2016, compared to $0.5 million for the quarter ended September 30, 2015. The increase was primarily attributable to new contracts in the medical equipment and new energy sectors.

Interest on short-term investment

Interest on short-term investments decreased by $0.1 million to $3.5 million for the quarter ended September 30, 2016, compared to $3.6 million for the same period ended September 30, 2015. The decrease was primarily due to a decrease in the rate of return caused by decreased return in the local capital markets, partially offset by an increase in the average balances of short-term investments.

Non-interest expenses

Non-interest expenses increased by $0.8 million, or 114.8%, to $1.6 million for the quarter ended September 30, 2016, compared to $0.8 million for the same period ended September 30, 2015. The increase was primarily attributable to an increase of $0.8 million in share-based compensation to the company’s directors and executive officers and increases in salaries, legal fees, auditing fees and consulting fees for investor relations in connection with being a public company.

Income taxes

Income tax expense decreased by $0.4 million, or 38.0%, to $0.7 million for the three months ended September 30, 2016, compared to $1.1 million for the three months ended September 30, 2015. The decrease was primarily attributable to a decrease in taxable income excluding interest on short-term investment, which is exempt from taxation.

Net income

Net income decreased by $1.6 million, or 33.5%, to $3.1 million for the quarter ended September 30, 2016, compared to $4.7 million for the same period ended September 30, 2015.

Other Significant Events

As previously reported, on December 13, 2016, Appelo Ltd. and Wits Global Ltd., each an entity controlled by Mr. Wang Hong, entered into an agreement to transfer all of the ordinary shares of Wins Finance owned by them, an aggregate of 13,440,000 ordinary shares (approximately 67% of the Company’s outstanding ordinary shares), to Spectacular Bid Limited, a wholly owned subsidiary of Freeman FinTech Corporation Limited, a company listed on the Hong Kong Stock Exchange (collectively, the “Purchaser”). To the knowledge of the Company, the Purchaser does not own any other of the Company’s ordinary shares and the Purchaser does not have any plans to acquire the Company’s remaining outstanding ordinary shares.

At the closing, Jianming Hao, Haiming Guo, Guo Chen and Jingxiao Zhang will resign from the Board of Directors and Junfeng Zhao, Xiaofeng Zhong, Shihai Wang and Weiqi Chen will be appointed to the Board of Directors. In addition, Jianming Hao will resign as Co-Chief Executive Officer of the Company.

The transaction has not yet closed.

About Wins Finance

Wins Finance is a diversified investment and asset management company listed on NASDAQ. The company is focused on identifying value accretive investment opportunities and assets in China and the United States that can be enhanced through the strategic involvement of Wins’ established management team and its familiarity with the Chinese investment community to help generate long-term value for shareholders. Wins Finance is well positioned to leverage its expertise and existing operations in China to build a comprehensive platform for the provision of lending and other financing solutions to the under-served small and medium enterprise segment. For more information, please visit www.winsholdings.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 are described in the Company’s Current Report on Form 8-K dated October 26, 2015 and in the Company’s other 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.

Company Contacts:

Jianming Hao, President
Wins Finance Holdings Inc.
590 Madison Avenue, 21st FL
New York, NY 10022
Tel: 646-480-9882
Email: jhao@winsii.com

WINS FINANCE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of

September 30,
2016

June 30,
2016

US$

US$

ASSETS

Cash

8,715,638

47,163,965

Restricted cash

26,766,408

27,962,846

Short-term investment

186,474,512

149,841,838

Commission receivable

286,047

Guarantee paid on behalf of guarantee service customers

2,578,008

2,039,684

Interest receivable

4,438,571

1,021,306

Net investment in direct financing leases

72,187,582

74,705,647

Deferred tax assets, net

404,043

428,524

Property and equipment, net

816,801

854,719

Other assets

9,657,588

608,751

TOTAL ASSETS

312,325,198

304,627,280

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities

Bank loan for capital lease business

39,553,635

43,308,617

Loans payable

8,239,147

Interest payable

220,540

208,947

Income tax payable

3,067,173

2,510,847

Unearned income from financial guarantee services

993,051

423,801

Other liabilities

10,142,287

10,099,055

Due to related party

464,000

464,000

Allowance on guarantee

3,056,206

3,079,684

Deferred income tax liability

477,398

Total Liabilities

65,736,039

60,572,349

Shareholders’ Equity

Common stock (par value $0.0001 per share, 100,000,000
shares authorized; 20,041,647 and 20,041,647 shares
issued and outstanding at September 30, 2016 and June 30,
2016, respectively)

2,004

2,004

Additional paid-in capital

214,221,526

213,400,296

Statutory reserve

2,364,245

2,364,245

Retained Earnings

46,342,639

43,244,044

Accumulated other comprehensive loss

(16,341,255)

(14,955,658)

Total Equity

246,589,159

244,054,931

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

312,325,198

304,627,280

WINS FINANCE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND

COMPREHENSIVE INCOME (LOSS)

Three months ended

September 30,
2016

September 30,
2015

US$

US$

 Guarantee service income

 Commissions and fees on financial guarantee services

835,763

1,751,579

 (Provision)/reversal of provision on financial guarantee services

5,844

319

 Commission and fees on guarantee services, net

841,607

1,751,898

 Direct financing lease income

 Direct financing lease interest income 

1,461,214

473,752

 Interest expense for direct financing lease

(815,121)

(5,350)

 Reversal/(provision) for lease payment receivable

25,584

(4,137)

 Net direct financing lease interest income after provision for
receivables 

671,677

464,265

 Net revenue

1,513,284

2,216,163

 Non-interest income

 Interest on short-term investment

3,463,436

3,587,140

 Total non-interest income

3,463,436

3,587,140

 Non-interest expense

 Business taxes and surcharge

(848)

(126,961)

 Salaries and employees surcharge

(292,291)

(181,319)

 Rental expenses

(58,279)

(64,435)

 Other operating expenses

(1,285,738)

(389,357)

 Total non-interest expense

(1,637,156)

(762,072)

 Income before taxes

3,339,564

5,041,231

 Income tax expense

(693,319)

(1,111,144)

 Deferred tax expense/(benefit)

452,350

726,567

 NET INCOME

3,098,595

4,656,654

 Other comprehensive income

 Foreign currency translation adjustment

(1,385,597)

(9,577,369)

COMPREHENSIVE INCOME/(LOSS) 

1,712,998

(4,920,715)

Weighted-average ordinary shares outstanding – basic and diluted

20,041,647

30,000,100

Earnings per share – Basic and diluted

0.15

0.16

NON-GAAP FINANCIAL MEASURES

The non-GAAP financial measures below are provided to enhance investors’ overall understanding of the company current financial performance and prospects for the future. A limitation of using non-GAAP other operating expenses and net income, excluding share-based compensation expenses, is that these items have been and may continue to be a significant expense in the Company’s business for the foreseeable future. In order to mitigate these limitations the Company has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.

WINS FINANCE HOLDINGS INC.

NON-GAAP FINANCIAL MEASURE RECONCILIATIONS

Three months ended

September 30,
2016

September 30,
2015

US$

US$

Other operating expenses under GAAP

(1,285,738)

(389,357)

Adjustment (a)

821,239

Non-GAAP Other operating expenses

(464,499)

(389,357)

Net income under GAAP

3,098,595

4,656,654

Adjustment (a)

821,239

Non-GAAP net income

3,919,834

4,656,654

Basic and diluted shares outstanding

20,041,647

30,000,100

Non-GAAP earnings per share, basic and diluted

0.20

0.16

(a) Adjustment to exclude the share-based compensation expenses for each period

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wins-finance-holdings-inc-reports-unaudited-fiscal-first-quarter-2017-financial-results-300386189.html

SOURCE Wins Finance Holdings Inc.

Tue Jun 14th, 2016 | Wins Finance Expands Further Into the Leasing In New Energy Vehicle Sector in China, Entering Into A Sale-leaseback Arrangement Valued at RMB200 Million (US$30.42 Million)

NEW YORK, June 14, 2016 /PRNewswire/ — Wins Finance Holdings Inc. (Nasdaq: WINS) (“Wins Finance” or the “Company”), June 14, 2016 announced that its wholly-owned subsidiary, Jinshang International Financial Lease Co., Ltd, has entered into another purchase-and-lease-back agreement valued at RMB200 million (US$30.42 million) with Liaoning SG Automotive Group Co., Ltd. (“SG Automotive Group”) to support their development and production of new energy vehicle technology.

The arrangement provides for financing in two parts: RMB100 million (US$15.42 million) was funded to SG Automotive Group on May 16th, 2016 and the remaining RMB100 million (US$15.42 million)was funded to SG Automotive Group at June 7, 2016. Both stages of the sale-leaseback agreement related to equipment of equivalent value.

Renhui Mu, Co-Chief Executive Officer and Chief Operating Officer of Wins Finance stated, “Our further cooperation with SG Automotive Group is helping us to get a better understanding of the new energy vehicle market and lay a solid foundation to acquire additional market share in the future. I believe that further investment in this industry will bring significant returns in the future.”

About Wins Finance

Wins Finance is a financial holding company that provides integrated financing solutions to small and medium enterprises (SMEs) in China. Wins Finance’s goal is to assist Chinese SMEs, including microenterprises, which have limited access to financing, to improve their overall fund-raising capability and enable them to obtain funding for business development. Since its establishment in 2006, Wins Finance has helped various SMEs obtain funding by providing them financial guarantees and financial leasing, as well as advisory services. Wins Finance is building upon its core financial services business in China to create a comprehensive asset management platform, offering its clients access to high quality proprietary assets in China. For more information, please visit www.winsholdings.com.

Forward-looking Statements

This news release includes forward-looking statements. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that the Company expects or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of current conditions and expected future developments as well as other factors it believes areappropriate in the circumstances. However, whether actual results and developments will conform to the Company’s expectations and predictions is subject to a number of risks and uncertainties, including the risk that the Company’s efforts to expand into the new energy vehicles leasing sector will not be successful, and the risks described in Wins Finance’s Quarterly Report on Form 10-Q filed on November 16, 2015 and in its other filings with the Securities and Exchange Commission.

Company Contacts:

Richard Xu, President
Wins Finance Holdings Inc.
590 Madison Avenue, 21st FL
New York, NY 10022
Tel: 646-480-9882
Email: richard.xu@winsholdings.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wins-finance-expands-further-into-the-leasing-in-new-energy-vehicle-sector-in-china-entering-into-a-sale-leaseback-arrangement-valued-at-rmb200-million-us3042-million-300284114.html

SOURCE Wins Finance Holdings Inc.

Fri May 27th, 2016 | Wins Finance Holdings Inc. Reports Unaudited Fiscal Third Quarter 2016 Financial Results

NEW YORK, May 27, 2016 /PRNewswire/ — Wins Finance Holdings Inc. (“Wins Finance” or the “Company”) (NASDAQ: WINS), a diversified investment and asset management company that provides integrated financing solutions to small and medium enterprises (“SMEs”) in China, today announced its unaudited financial results for the quarter ended March 31, 2016.

Fiscal Third Quarter Financial and Operational Highlights

  • Revenues were $2.5 million, compared to $4.5 million for the comparable period last year.
  • Interest on short-term investments was $3.5 million,compared to $5.4 million for the comparable period last year.
  • Net income attributable to Wins Finance was $0.2 million for the quarter ended March 31, 2016, compared to $8.5 million for the same period ended March 31, 2015.

“As we expected, the financial results of this quarter was impacted by our current exposure to the financial guarantee business in China and will continue to be impacted by such exposure in the coming quarters. One of our clients defaulted the payment of a $4.7 million loan, due to slow down of the Chinese economy and the cash flow difficulties for Chinese Small and Medium Enterprise (SME). We made a provision of $3.2 million for the potential loss,” said Renhui Mu, Co-CEO and COO of Wins Finance. “In response to the challenges we are encountering in our guarantee business, we are taking aggressive measures to control the exposure to current economic situation.”

“We remain optimistic in our long-term outlook. We are focusing our attention on development of our leasing business in the medical equipment and new energy sectors, both of which offer significant opportunities for investment. We expect these two sectors to continue to grow despite the economic slowdown and other macroeconomic factors. We also expect our pipeline of leasing opportunities to increase during in the first half year, with associated revenues to begin in the second half of 2016,” added by Mr. Mu.

Quarter Ended March 31, 2016 Results

Revenue

Wins Finance’s revenue for the quarter ended March 31, 2016 was $2.5 million, which consists of $1.5 million of commissions and fees generated from its financial guarantee services, and $1.0 million of direct financing lease interest income.

Commissions and fees on financial guarantee services generated from financial guarantee services the Company provides to customers decreased by $0.2 million, or 8.1%, to $1.5 million for the quarter ended March 31, 2016, compared to $1.7 million for the quarter ended March 31, 2015. The decrease was primarily attributable to the expiration of Wins Finance’s two largest contracts in March 2015. The two largest customers accounted for $0.61 million of revenue, or 37% of the total commissions and fees on financial guarantee services for the three months ended March 31, 2015. After the contracts for these two customers expired, Wins Finance was no longer able to provide guarantees for loans exceeding 10% of its net assets for any single customer in order to comply with the requirements of Interim Measures for Guarantee Business of the PRC. Provision on financial guarantee services was $3.1 million for the quarter ended March 31, 2016, an increase of $4.0 million from a reversal of $0.9 million for the quarter ended March 31, 2015. The increase was primarily due to a provision loss of $3.2 million due to a loan in default totaling $4.7 million (RMB30 million), with $0.9 million being written-off due to management’s assessment.

Direct financing lease interest income generated from payments under direct financing leases with customers decreased by $0.2 million, or 19.4%, to $1 million for the quarter ended March 31, 2016, compared to $1.2 million for the quarter ended March 31, 2015. Provision for lease payment receivable decreased by $0.2 million to $0.1 million for the quarter ended March 31, 2015, from $0.3 million for the quarter ended March 31, 2015. The decrease was primarily attributable to the expired direct financing leases contracts were not fully replaced with new contracts.

Financial advisory and lease agency income decreased to nil for the quarter ended March 31, 2016, compared to $1.7 million for the quarter ended March 31, 2015. The decrease was primarily attributable to there being no new advisory and lease agency contracts in this quarter.

Interest on short-term investment

Interest on short-term investments decreased by $1.9 million to $3.5 million for the quarter ended March 31, 2016, compared to $5.4 million for the same period ended March 31, 2015. The decrease was primarily due to a decrease in the rate of return caused by decreased return in the local capital markets, partially offset by an increase in the average balances of the short-term investments.

Non-interest expenses

Non-interest expenses increased by $1.8 million, or 248.1%, to $2.5 million for the quarter ended March 31, 2016, compared to $0.7 million for the same period ended March 31, 2015. The increase was primarily attributable to an increase of $1.2 million in share-based compensation to the company’s directors and executive officers commencing on December 16, 2015 and increases in salaries, legal fees, auditing fees and consulting fees for investor relations in connection with being a public company.

Income taxes

Income tax expense decreased by $1.5 million, or 137.3%, to $0.4 million for the three months ended March 31, 2016, compared to $1.1 million for the three months ended March 31, 2015. The decrease was primarily attributable to a decrease in taxable income excluding interest on short-term investment, which is exempt from taxation.

Net income

Net income decreased by $8.3 million, or 97.3%, to $0.2 million for the quarter ended March 31, 2016, compared to $8.5 million for the same period ended March 31, 2015.

Other Significant Events

On March 21, 2016, JinzhongBank Co., Ltd. withdrew $0.9 million (RMB 6 million) for interest and penalties from the Company’s deposit account for the default payment of a loan of $4.7 million (RMB 30 million) borrowed by Jinzhong Houfeng Trading Co., Ltd., one of the Company’s clients in its guarantee business. The Company evaluated the potential default losses based on Jinzhong Houfeng Trading Co., Ltd.’s financial position and counter-guarantee collateral and accrued about $3.2 million as provision of guarantee losses.

About Wins Finance

Wins Finance is a diversified investment and asset management company headquartered in New York and listed on NASDAQ. The company is focused on identifying value accretive investment opportunities and assets in China and the United States that can be enhanced through the strategic involvement of Wins’ established management team and its familiarity with the Chinese investment community to help generate long-term value for shareholders. Wins Finance is well positioned to leverage its expertise and existing operations in China to build a comprehensive platform for the provision of lending and other financing solutions to the under-served small and medium enterprise segment. For more information, please visit www.winsholdings.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 are described in the Company’s Current Report on Form 8-K dated October 26, 2015 and in the Company’s other 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.

Company Contacts:

Richard Xu, President
Wins Finance Holdings Inc.
590 Madison Avenue, 21st FL
New York, NY 10022
Tel: 646-480-9882
Email: richard.xu@winsholdings.com

WINS FINANCE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of

March 31, 2016

June 30, 2015

US$

US$

ASSETS

Cash

34,074,730

40,019,968

Restricted cash

27,237,745

28,494,217

Short-term investment

185,049,556

184,160,555

Guarantee paid on behalf of guarantee service customers

509,668

633,313

Interest receivable

3,277,783

247,912

Net investment in direct financing leases

50,490,303

25,829,055

Deferred tax assets, net

901,509

414,479

Property and equipment, net

1,210,066

915,416

Other assets

436,483

474,412

TOTAL ASSETS

303,187,843

281,189,327

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES

Bank loan for capital lease business

14,733,176

511,825

Interest payable

122,892

49,719

Income tax payable

3,371,023

3,067,757

Unearned income from financial guarantee services

1,351,870

3,659,062

Other liabilities

7,356,981

4,123,385

Convertible debt

8,500,000

Allowance on guarantee

3,511,284

1,261,868

Deferred income tax liability

1,123,742

Total Liabilities

38,947,226

13,797,358

SHAREHOLDERS’ EQUITY

Common stock (par value $0.0001 per share, 100,000,000 shares
authorized; 21,526,747 and 21,526,747 shares issued and outstanding at
March 31, 2016 and June 30, 2015, respectively)

2,153

2,153

Additional paid-in capital

230,857,721

229,493,290

Statutory reserve

2,364,245

325

Retained Earnings

39,238,961

33,490,567

Accumulated other comprehensive income/(loss)

(8,222,463)

4,405,634

Total Equity

264,240,617

267,391,969

TOTAL LIABILITIES AND SHAREHOLDERSEQUITY

303,187,843

281,189,327

WINS FINANCE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND

COMPREHENSIVE INCOME (LOSS)

Three months ended

Nine months ended

March 31,
2016

December 31,
2015

March 31,
2015

March 31,
2016

March 31,
2015

US$

US$

US$

US$

US$

Guarantee service income                     

Commissions and fees on financial guarantee services

1,527,729

1,664,116

1,661,669

4,943,424

6,089,105

(Provision)/reversal of provision on financial guarantee services

(3,129,142)

(74,014)

919,687

(3,202,837)

955,625

Commission and fees on guarantee services, net                                           

(1,601,413)

1,590,102

2,581,356

1,740,587

7,044,730

Direct financing lease income

Direct financing lease interest income 

952,796

497,613

1,182,720

1,924,161

2,352,215

Interest expense for direct financing lease

(386,779)

(19,590)

(357,660)

(411,719)

(636,451)

Provision for lease payment receivable

(118,071)

(180,275)

(282,470)

(302,483)

(411,598)

Net direct financing lease interest income after provision for receivables 

447,946

297,748

542,590

1,209,959

1,304,166

Financial advisory and lease agency income

405,603

1,704,131

405,603

3,253,521

Net revenue

(1,153,467)

2,293,453

4,828,077

3,356,149

11,602,417

Non-interest income

Interest on short-term investment

3,465,229

3,522,153

5,405,584

10,574,522

13,333,364

Total non-interest income

3,465,229

3,522,153

5,405,584

10,574,522

13,333,364

Non-interest expense

Business taxes and surcharge

(6,091)

(45,876)

(38,838)

(178,928)

(220,185)

Salaries and employees surcharge

(462,169)

(363,376)

(108,710)

(1,006,864)

(297,078)

Rental expenses

(67,083)

(68,048)

(32,140)

(199,566)

(114,377)

Other operating expenses

(1,948,527)

(1,573,216)

(533,764)

(4,092,247)

(1,280,590)

Total non-interest expense

(2,483,870)

(2,050,516)

(713,452)

(5,477,605)

(1,912,230)

Income before taxes

(172,108)

3,765,090

9,520,209

8,453,066

23,023,551

Income tax expense

(541,964)

(267,364)

(1,574,502)

(1,920,472)

(4,089,065)

Deferred tax (expense)/benefit

938,406

(85,253)

510,237

1,579,720

1,584,523

NET INCOME

224,334

3,412,473

8,455,944

8,112,314

20,519,009

Other comprehensive income

Foreign currency translation
adjustment

1,612,392

(4,663,119)

851,753

(12,628,097)

1,305,112

COMPREHENSIVE INCOME
(LOSS)

1,836,726

(1,250,646)

9,307,697

(4,515,783)

21,824,121

Weighted-average ordinary shares outstanding – basic and diluted

21,526,747

21,526,747

21,526,747

21,526,747

21,526,747

Earnings per share – Basic and diluted

0.01

0.16

0.39

0.38

0.95

NON-GAAP FINANCIAL MEASURES

The non-GAAP financial measures below are provided to enhance investors’ overall understanding of the company current financial performance and prospects for the future. A limitation of using non-GAAP other operating expenses and net income, excluding share-based compensation expenses, is that these items have been and may continue to be a significant expense in the Company’s business for the foreseeable future. In order to mitigate these limitations the Company has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.

WINS FINANCE HOLDINGS INC.

NON-GAAP FINANCIAL MEASURE RECONCILIATIONS

Three months ended

Nine months ended

March 31,
2016

December 31,
2015

March 31,
2015

March 31,
2016

March 31,
2015

US$

US$

US$

US$

US$

Other operating expenses
under GAAP

(1,948,527)

(1,573,216)

(533,764)

(4,092,247)

(1,280,590)

Adjustment (a)

1,160,489

204,042

1,364,531

Non-GAAP Other
operating expenses

(788,038)

(1,369,174)

(533,764)

(2,727,716)

(1,280,590)

Net income under GAAP

224,334

3,412,473

8,455,944

8,112,314

20,519,009

Adjustment (a)

1,160,489

204,042

1,364,531

Non-GAAP net income

1,384,823

3,616,515

8,455,944

9,476,845

20,519,009

Basic and diluted shares
outstanding

21,526,747

21,526,747

21,526,747

21,526,747

21,526,747

Non-GAAP earnings per
share, basic and diluted

0.06

0.17

0.39

0.44

0.95

(a) Adjustment to exclude the share-based compensation expenses for each period

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wins-finance-holdings-inc-reports-unaudited-fiscal-third-quarter-2016-financial-results-300276106.html

SOURCE Wins Finance Holdings Inc.

Thu Mar 10th, 2016 | Wins Finance Holdings Inc. Reports Unaudited Fiscal Second Quarter 2016 Financial Results

NEW YORK, March 10, 2016 /PRNewswire/ — Wins Finance Holdings Inc. (“Wins Finance” or the “Company”) (NASDAQ: WINS), a diversified investment and asset management company that provides integrated financing solutions to small and medium enterprises (“SMEs”) in China, today announced its unaudited financial results for the quarter ended December 31, 2015.

Fiscal Second Quarter Financial and Operational Highlights

  • Revenues were $2.3 million, compared to $3.3 million for the comparable period last year
  • Interest on short-term investments was $3.5 million, compared to $3.9 million for the comparable period last year
  • Net income attributable to Wins Finance was $3.4 million for the quarter ended December 31, 2015, compared to $5.9 million for the same period ended December 31, 2014.
  • Completed business combination with Wins Finance Group Limited.
  • Strengthened executive management team of Wins Finance Group Limited with addition of Jianming Hao, Co-CEO, Amy He, CFO and Richard Xu, President
  • Executed an aggregate of $7.7 million in direct leasing contracts for tele-medical equipment with seven hospitals
  • Subsequent to the end of the quarter, received determination for continued listing on NASDAQ

“2015 was a transformative year for Wins Finance highlighted by the business combination with Wins Finance Group Limited and our continued listing on NASDAQ,” said Jianming Hao, Chairman and Co-CEO. “The business combination was the first step in our long-term growth strategy focused on value accretive investment opportunities and assets that can be enhanced through the strategic involvement of Wins’ established management team and its familiarity with the Chinese investment community to generate long-term value for shareholders.”

“We remain optimistic in our long-term outlook and our ability to identify value,” Mr. Hao added. “In the near-term however, we expect our quarterly results to be impacted by our current exposure to the financial guarantee business in China. Demand for loans from Chinese small and medium enterprises (SMEs) has declined significantly. In addition, during the past twelve months, the RMB has depreciated by more than 5% and interest rates have been cut by 1.25%.”

“In response to the challenges we are encountering in our guarantee business, we are taking aggressive measures to diversify our operations to augment our near-term strategy,” Mr. Hao continued. “Entering 2016, the company is accelerating its search for value accretive investment opportunities and assets in the United States as well as China, with the goal to balance our geographic footprint and risk over time.”

Renhui Mu, Co-CEO and COO of Wins Finance, added, “In the past three months, we have closed more than $33 million of financial leases and expect to ramp up this business in 2016. We plan to focus our attention on the medical equipment and new energy sectors, both of which offer significant opportunities for investment. As a result of the aging population and serious geographical imbalance in distribution of medical resources in China, demand for health care is growing. The new energy vehicle industry is expanding globally, and is an important component of global initiatives to reduce hydrocarbon consumption and carbon dioxide emissions. We expect these two sectors to continue to grow despite the economic slowdown and other macroeconomic factors. We expect our pipeline of leasing opportunities to increase during the first half of 2016, with associated revenues to begin in the second half of 2016 and beyond.”

Quarter Ended December 31, 2015 Results

Net Revenue

Wins Finance’s net revenue consists of commissions and fees generated from its financial guarantee services, net direct financing lease interest income, and advisory fees generated from its financial advisory and lease agency businesses. Net commissions and fees on financial guarantee services, net direct financing lease interest income, and financial advisory and lease agency income for the three months ended December 31, 2015 were $1.6 million, $0.3 million and 0.4million, respectively, accounting for 69.3%, 13.0% and 17.7%, respectively, of Wins Finance’s net revenue.

Net Revenues for the quarter ended December 31, 2015 were $2.3 million, a decrease of $1.0 million, or 31.4%, from $3.3 million for the same period ended December 31, 2014. The decrease was primarily attributable to (a) a decrease of $0.7 million in net commissions and fees on financial guarantee services and (b) a decrease of $0.4 million in financial advisory and lease agency income. Wins Finance’s two largest customers accounted for approximately 50.8% of the total outstanding balances of loans guaranteed by Wins Finance as of December 31, 2014. These two largest customers stand for $ $1.5 million revenue for the three months ended December 31, 2014. After the contracts of these two customers expired in March, 2015, Wins Finance stopped providing guarantees for loans exceeding 10% of its net assets for any single customer in order to comply with the requirements of Interim Measures for Guarantee Business of the PRC. The expired guarantee contracts were not fully replaced with new contracts. The outstanding balance of loans guaranteed by the Company decreased to $126.0 million as of December 31, 2015, from $179.4 million as of December 31, 2014 which resulted in the decrease of net commission and financial advisory income in connection with providing financial solutions to these guarantee customers.

Interest on short-term investments

Interest on short-term investments decreased by $0.4 million to $3.5 million for the quarter ended December 31, 2015, compared to $3.9 million same period ended December 31, 2014. The decrease was primarily due to a decrease in the rate of return, partially offset by an increase in the average balances of the short-term investments.

Non-interest expenses

Non-interest expenses increased by $1.4 million, or 208.1%, to $2.1 million for the quarter ended December 31, 2015, compared to $0.7 million for the same period ended December 31, 2014. The increase was primarily attributable to costs associated with the business combination and increases in salaries, legal fees, auditing fees and consulting fees for investor relations in connection with being a public company.

Income taxes

Income tax expense decreased by $0.4 million, or 51.5%, to $0.4 million for the three months ended December 31, 2015, compared to $0.7 million for the three months ended December 31, 2014. The decrease was primarily attributable to a decrease in taxable income excluding interest on short-term investment, which is exempt from taxation.

Net income

Net income decreased by $2.5 million or 42.1% to $3.4 million for the quarter ended December 31, 2015, compared to $5.9 million for the same period ended December 31, 2014.

Cash and Cash Equivalents, Term Deposits and Restricted Cash

Cash and cash equivalents, term deposits and restricted cash together amounted to $70.2 million as of December 31, 2015.

Other Significant Events

Convertible Notes sold to CEO

On January 4, 2016, the Company announced the sale of $8.5 million of convertible notes to Mr. Jianming Hao, its Chairman and Co-Chief Executive Officer. Mr. Hao is the sole investor in the financing round. The Company intends to use the proceeds to accelerate the growth and expansion of its business. The convertible notes bear interest at 4% per annum and mature one year from the date of issuance. The conversion price of the notes is $12 per share.

Financial leasing in New Energy Vehicle Sector

On January 13, 2016, the Company announced that it entered into a purchase-and-lease-back agreement valued at RMB100 million (US$15.4 million) with Liaoning Sg Automotive Group Co., Ltd. (“SG Automotive Group”), a leading Shanghai Stock Exchange-listed automobile manufacturer that is focused on developing new energy vehicle technology.

Purchase-and-Lease for Medical Examination Equipment

On February 1, 2016, the Company announced that it entered into a purchase-and-lease-back agreement valued at RMB70 million (US$10.6 million) with Panjin Central hospital, a leading Third-Level Grade-A hospital in Liaoning Province, China.

About Wins Finance

Wins Finance is a diversified investment and asset management company headquartered in New York and listed on NASDAQ. The company is focused on identifying value accretive investment opportunities and assets in China and the United States that can be enhanced through the strategic involvement of Wins’ established management team and its familiarity with the Chinese investment community to help generate long-term value for shareholders. Wins Finance is well positioned to leverage its expertise and existing operations in China to build a comprehensive platform for the provision of lending and other financing solutions to the under-served small and medium enterprise segment. In addition, Wins Finance is strategically increasing its focus on investment opportunities in the United States, with the goal of increasing its global footprint and diversifying its operations. For more information, please visit www.winsholdings.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 are described in the Company’s Current Report on Form 8-K dated October 26, 2015 and in the Company’s other 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.

Company Contacts:

Richard Xu, President
Wins Finance Holdings Inc.
590 Madison Avenue, 21st FL
New York, NY 10022
Tel: 646-480-9882
Email: rxu@winsfinance.com

WINS FINANCE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of

December 31, 2015

June 30, 2015

US$

US$

ASSETS

Cash

40,828,055

40,019,968

Restricted cash

29,339,887

28,494,217

Short-term investment

185,621,640

184,160,555

Guarantee paid on behalf of guarantee service customers

992,216

633,313

Interest receivable

305,989

247,912

Net investment in direct financing leases

40,526,820

25,829,055

Deferred tax assets, net

435,398

414,479

Property and equipment, net

1,315,676

915,416

Other assets

166,013

474,412

TOTAL ASSETS

299,531,694

281,189,327

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES

Bank loan for capital lease business

15,827,167

511,825

Interest payable

17,495

49,719

Income tax payable

3,284,100

3,067,757

Unearned income from financial guarantee services

2,317,377

3,659,062

Other liabilities

6,596,936

4,123,385

Convertible debt

8,500,000

Allowance on guarantee

1,259,994

1,261,868

Deferred income tax liability

485,224

1,123,742

Total Liabilities

38,288,293

13,797,358

SHAREHOLDERS’ EQUITY

Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 21,526,747 and 21,526,747 shares issued and outstanding at December31, 2015 and June 30, 2015, respectively)

2,153

2,153

Additional paid-in capital

229,697,231

229,493,290

Statutory reserve

2,364,245

325

Retained Earnings

39,014,627

33,490,567

Accumulated other comprehensive income/(loss)

(9,834,855)

4,405,634

Total Equity

261,243,401

267,391,969

TOTAL LIABILITIES AND SHAREHOLDERSEQUITY

299,531,694

281,189,327

WINS FINANCE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND

COMPREHENSIVE INCOME (LOSS)

Three months ended

Six months ended

December 31,
2015

September 30,
2015

December 31,
2014

December 31,
2015

December 31,
2014

US$

US$

US$

US$

US$

Guarantee service income

Commissions and fees on financial guarantee services

1,664,116

1,751,579

2,263,067

3,415,695

4,427,436

(Provision)/reversal of provision on financial guarantee services

(74,014)

319

20,015

(73,695)

35,938

Commission and fees on guarantee
services, net

1,590,102

1,751,898

2,283,082

3,342,000

4,463,374

Direct financing lease income

Direct financing lease interest income 

497,613

473,752

604,233

971,365

1,169,495

Interest expense for direct financing lease

(19,590)

(5,350)

(232,233)

(24,940)

(278,791)

Provision for lease payment receivable

(180,275)

(4,137)

(121,440)

(184,412)

(129,128)

Net direct financing lease interest income after provision for receivables 

297,748

464,265

250,560

762,013

761,576

Financial advisory and lease agency income

405,603

806,925

405,603

1,549,390

Net revenue

2,293,453

2,216,163

3,340,567

4,509,616

6,774,340

Non-interest income

Interest on short-term investment

3,522,153

3,587,140

3,945,773

7,109,293

7,927,780

Total non-interest income

3,522,153

3,587,140

3,945,773

7,109,293

7,927,780

Non-interest expense

Business taxes and surcharge

(45,876)

(126,961)

(101,953)

(172,837)

(181,347)

Salaries and employees surcharge

(363,376)

(181,319)

(113,633)

(544,695)

(188,368)

Rental expenses

(68,048)

(64,435)

(40,747)

(132,483)

(82,237)

Other operating expenses

(1,573,216)

(570,504)

(409,304)

(2,143,720)

(746,826)

Total non-interest expense

(2,050,516)

(943,219)

(665,637)

(2,993,735)

(1,198,778)

Income before taxes

3,765,090

4,860,084

6,620,703

8,625,174

13,503,342

Income tax expense

(267,364)

(1,111,144)

(1,185,904)

(1,378,508)

(2,514,563)

Deferred tax expense/(benefit)

(85,253)

726,567

459,163

641,314

1,074,286

NET INCOME

3,412,473

4,475,507

5,893,962

7,887,980

12,063,065

Other comprehensive income

Foreign currency translation adjustment

(4,663,119)

(9,577,369)

129,121

(14,240,489)

453,359

COMPREHENSIVE INCOME (LOSS) 

(1,250,646)

(5,101,862)

6,023,083

(6,352,509)

12,516,424

Weighted-average ordinary shares outstanding – basic and diluted

21,526,747

21,526,747

21,526,747

21,526,747

21,526,747

Earnings per share – Basic and diluted

0.16

0.21

0.27

0.37

0.56

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wins-finance-holdings-inc-reports-unaudited-fiscal-second-quarter-2016-financial-results-300233955.html

SOURCE Wins Finance Holdings Inc.

Mon Feb 22nd, 2016 | Wins Finance Announces Receipt of Positive NASDAQ Listing Determination; Ordinary Shares to Continue to be Listed on NASDAQ

NEW YORK, Feb. 22, 2016 /PRNewswire/ — Wins Finance Holdings Inc. (WINS) (the “Company”) today announced that on February 18, 2016, it was advised that the Nasdaq Listing Qualifications Panel (the “Panel”) has determined that the Company’s ordinary shares will remain listed on The Nasdaq Stock Market. The panel made the decision following the Company’s hearing on February 11, 2016.

As previously disclosed, the Nasdaq Listing Qualifications Staff (the “Staff”) had determined that the Company did not evidence compliance with the 300 round lot shareholder requirement required for initial listing on The Nasdaq Capital Market following completion of the Company’s business combination in late October 2015. As a result, the Company’s ordinary shares was subject to delisting. In response, the Company requested a hearing before the Panel to appeal the Staff’s determination. As a result of the Panel’s determination, the Company’s ordinary shares will remain listed on The Nasdaq Capital Market.

About Wins Finance

Wins Finance Holdings Inc. (NASDAQ: WINS), is a diversified investment and asset management company headquartered in New York and listed on NASDAQ. The company is focused on identifying value accretive investment opportunities and assets in China and the United States that can be enhanced through the strategic involvement of Wins’ established management team and its familiarity with the Chinese investment community to help generate long-term value for shareholders. For more information, please visit www.winsholdings.com.

Forward-looking Statements

This news release includes forward-looking statements. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that the Company expects or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform to the Company’s expectations and predictions is subject to a number of risks and uncertainties, including the risk that the Company’s efforts to expand into the medical industry leasing sector will not be successful, and the risks described in Wins Finance’s Quarterly Report on Form 10-Q filed on November 16, 2015 and in its other filings with the Securities and Exchange Commission.

Company Contacts:
Richard Xu, President

Wins Finance Holdings Inc.
7 Times Square, 37th FL
New York, NY 10036
Tel: 646-480-9882
Email: Richard.xu@winsholdings.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wins-finance-announces-receipt-of-positive-nasdaq-listing-determination-ordinary-shares-to-continue-to-be-listed-on-nasdaq-300223545.html

SOURCE Wins Finance Holdings Inc.