News Releases

BEIJING and NEW YORK, October 1, 2020 — 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 six months ended December 31, 2019. The Company filed its Annual Report on Form 20-F for the year ended June 30, 2019 earlier today.

Fiscal Six Months Ended December 31, 2019 Financial and Operational Highlights

• Direct financing lease interest income was $3.8 million, compared to $4.3 million for the corresponding period ended December 31, 2018.
• Interest income on securities-held to maturity was nil, compared to $0.1 million, as restated as a result of the freezing of the guarantee services business assets, for the corresponding period ended December 31, 2018.
• Income from discontinued operation was nil, compared to $7.6 million, as restated as a result of the freezing of the guarantee services business assets, for the corresponding period ended December 31, 2018.

“As previously reported in our filings, on June 9, 2020, the Changzhi Public Security Bureau froze the assets of Jinchen Agriculture and its subsidiary Dongsheng Guarantee. Our outside legal counsel was unable to determine the cause of the freeze as the authorities have not provided us with any information, and our legal counsel has advised us that we no longer have control of the assets or operations of Jinchen Agriculture and Dongsheng Guarantee. Therefore, until the freeze is lifted (and we have not been provided any guidance about when the freeze will be lifted), we will not be able to get any financial information and the operation of the company completely has stopped, so we are reporting the frozen assets and liabilities of this entity as a disposal group.” said Renhui Mu, Chairman and Chief Executive Officer of Wins Finance.

“As our guarantee services business was mainly conducted through Dongsheng Guarantee, the freeze of DongSheng Guarantee means that our guarantee services business is no longer operating. Although our financial lease business is unaffected by the freeze and continues to operate normally, our business will lack diversification,” added Mr. Mu. “However, we plan to strengthen our financing consulting business to improve the balance of our business, which we believe will also enhance our ability to manage risk and generate profits.”

“In view of the slowdown in the Chinese economy and the impact of the COVID-19 pandemic, the ability of customers to repay their rental expenses has been adversely affected. Therefore, we continue to be cautious about securing new financial lease customers in the current economic environment. To optimize our business goals, we have instituted further risk controls to mitigate the risks inherent in our financial leasing business and strengthen the recovery of lease receivables. In addition, we plan to expand financing channels and actively engage new strategic investors in order to increase our cash flow. Although the current market environment is challenging, we believe that we will be able to weather the currently difficult operating conditions,” concluded Mr. Mu.

Financial Results for the Six Months Ended December 31, 2019

Direct financing lease interest income

Direct financing lease interest income generated from payments under direct financing leases with customers decreased by $0.5 million, or 11.8%, to $3.8 million for the six months ended December 31, 2019, as compared to $4.3 million for the six months ended December 31, 2018. The decrease was primarily attributable to the slowdown in China’s economy due to the impact of the COVID-19 pandemic.

Interest income on short-term investments

Interest on investment securities-held to maturity decreased by $0.1 million to nil million for the six months ended December 31, 2019, as compared to $0.1 million for the six months ended December 31, 2018.

Non-interest expenses

Non-interest expense was $0.7 million for the six months ended December 31, 2019, as compared to non-interest expense of $2.0 million, as restated as a result of the freezing of the guarantee services business assets, for the six months ended December 31, 2018. The decrease mainly due to the decrease in legal fees incurred in connection with a Class Action litigation.

Income taxes

Income tax credit increased by $0.8 million to an income tax credit of $1.9 million for the six months ended December 31, 2019, as compared to income tax credit of $1.1 million, as restated as a result of the freezing of the guarantee services business assets, for the six months ended December 31, 2018. The increase was attributable to the increase in taxable income, which excluded tax exempt interest income from short-term investments.

Net income

Net income increased by $4.6 million to $0.3 million for the six months ended December 31, 2019, as compared to $(4.3) million, as restated as a result of the freezing of the guarantee services business assets, for the six months ended December 31, 2018.

Current Outlook

Although the slowdown in China’s economy and the impact of the COVID-19 has negatively impacted our business, we view the challenging business environment as an opportunity to make positive changes to our operating model that will enable us to both weather current conditions and prepare us for new growth opportunities. With these objectives in mind, management is more cautious in choosing customers and stricter in assessing our business and financial risk.

Due to the currently challenging macroeconomic conditions, we believe that our sector will experience a shakeout of smaller, underperforming companies which could create business opportunities for us. Further, we think that barriers to entry for new competitors have increased due to current business volatility, which we believe will help us establish a larger footprint in our areas of concentration. We believe that our operating experience and enhanced risk management protocols will ultimately help to propel growth once business conditions normalize and our competitive position in our sector continues to strengthen.

We continue to believe that the financial leasing business offers substantial growth opportunities as SMEs have become an indispensable driver of economic and employment growth and continue to contribute to China’s economic transformation. Many SMEs need to upgrade their equipment and adopt new technologies but have limited access to traditional bank financing. We continue to believe that our focus on SMEs is appropriate as many such entities are nimble actors in China’s economy with strong growth potential. However, we note that the period-to-period financial results of this sector is affected by the complexity, uncertainties and changes in China’s economic conditions as well the regulations governing the industry and can cause fluctuations in our periodic operating and financial results.

Subsequent Event

On June 9, 2020, the Changzhi Public Security Bureau (the “Bureau”) enforced a judgement against Jinchen Agriculture and its subsidiary, Dongsheng Guarantee. The Company’s legal counsel was unable to determine the cause of the freeze as the authorities have not provided such information, but it has advised the Company that the Company no longer has control of the assets or operations of Jinchen Agriculture and Dongsheng Guarantee.

Therefore, until the freeze is lifted, we will not be able to consolidate Jinchen Agriculture and Dongsheng Guarantee into our financial statements, and so are reporting the frozen assets and liabilities as a disposal group. The assets of the disposal group are being classified as held for sale were $168.2 million and $ 172.0 million as of December 31, 2019 and June 30, 2019, and the liabilities of the disposal group being classified as held for sale were $2.8 million and $3.0 million as of December 31, 2019 and June 30, 2019, respectively. The freeze of these assets has had a material and adverse effect on our financial results.

The Company’s board of directors intends to dispose of Jinchen Agriculture and Dongsheng Guarantee within 12 months after unfreezing of the assets by the Bureau. The Company’s other businesses are unaffected by the freeze and continue to operate normally.

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 its 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 Annual Report on Form 20-F for the year ended June 30, 2019 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:

Wins Finance Holdings Inc.
1177 Avenue of the Americas

5th Floor
New York, NY 10036
Investor Relations Tel: 646-694-8538
E-mail: info@winsholdings.com

WINS FINANCE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

WINS FINANCE HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND

COMPREHENSIVE INCOME (LOSS)

BEIJING and NEW YORK, July 13, 2020 /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 that on July 10, 2020, the Company received a letter from the staff of the Listing Qualifications Department of The Nasdaq Stock Market LLC (the “Nasdaq Staff”). The letter notified the Company that since it had not timely filed its interim financials on Form 6-K (the “Interim Financials”) with the SEC for the period ended December 31, 2019, this delinquency is an additional basis for delisting the Company’s securities from the Nasdaq Stock Market (“Nasdaq”) pursuant to Listing Rule 5250(c)(1). The Company previously received a delisting determination letter from the Nasdaq Staff on May 22, 2020 that notified the Company that since it had not timely filed its Annual Report on Form 20-F (the “2019 20-F”) with the SEC for the fiscal year ended June 30, 2019, it was in noncompliance with Listing Rule 5250(c)(1), and the Company’s common stock is subject to delisting from Nasdaq.

The Company appeared before a Nasdaq Hearings Panel (“the Panel”) on July 2, 2020 for failing to timely file its 2019 20-F as required by the Nasdaq listing rule. The Panel subsequently reviewed the entirety of information provided by the Company and, on July 10, 2020, granted its request for continued listing on Nasdaq subject to certain conditions, which includes the Company being able to complete all delinquent periodic filings with the SEC in accordance with Listing Rule 5250(c)(1) (which includes both the 2019 20-F and the Interim Financials) by October 1, 2020. Also, the Company is required to provide the Panel with evidence that it signed an engagement letter with a new auditor on or before July 17, 2020, and is required to provide an update as to the Company’s audit for the year ended June 30, 2019 by September 18, 2020.

The Company plans to engage a new auditor on or before the date set by the Panel and will work assiduously to complete its delinquent filings with the SEC to regain compliance with the Nasdaq listing rule. 

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 its 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 Annual Report on Form 20-F for the year ended June 30, 2018 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.

SOURCE Wins Finance Holdings Inc.

BEIJING and NEW YORK, June 19, 2020 — 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 that on June 18, 2020, it received a letter from the staff of the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) stating the Company is no longer in compliance with Nasdaq’s audit committee requirement as set forth in Listing Rule 5605 due to the resignation of Mr. Shihai Wang from the Company’s board of directors and audit committee on June 15, 2020. The letter also states that Nasdaq will provide the Company a cure period in accordance with Listing Rule 5605(c)(4).

The Company is conducting a search for a new director who meets the requirements of Nasdaq and is available for appointment to the Company’s board of directors and audit committee within the cure period. The Company must also submit to Nasdaq documentation, including biographies of any new directors, evidencing compliance with the listing rule within the cure period.

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 its 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 Annual Report on Form 20-F for the year ended June 30, 2018 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:

Wins Finance Holdings Inc.
1177 Avenue of the Americas

5th Floor
New York, NY 10036
Tel: 646-694-8538
E-mail: info@winsholdings.com 

###

BEIJING and NEW YORK, June 15, 2020 — 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 that it has been granted an extended stay as to the suspension of the Company’s ordinary shares from trading on the Nasdaq Capital Market pending the Company’s scheduled hearing before the Nasdaq Hearings Panel (the “Panel”) on July 2, 2020 and the issuance of a final Panel decision.

On May 29, 2020, the Company submitted a request for a hearing before the Panel under Listing Rule 5815(a) to present its plan to regain compliance with Listing Rule 5250(c)(1). This request automatically stayed the delisting of the Company’s securities until June 15, 2020. The Panel notified the Company that it has extended the stay until it fully reviews the facts of the matter and makes a final determination regarding the Company’s listing status following the July 2, 2020 hearing.

The Company received a delisting determination letter on May 22, 2020 from the staff of the Listing Qualifications Department of Nasdaq which notified the Company that because it had not filed its Annual Report on Form 20-F for the fiscal year ended June 30, 2019 (the “2019 20-F”) by May 13, 2020, the deadline by which the Company was to file the 2019 20-F in order to regain compliance with Listing Rule 5250(c)(1), the Company’s common stock is subject to delisting from The Nasdaq Capital Market.

As disclosed previously, the Company is working assiduously to complete its delayed SEC filings of its financial statements and to regain compliance with the NASDAQ rules as soon as possible.

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 its 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 Annual Report on Form 20-F for the year ended June 30, 2018 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:

Wins Finance Holdings Inc.
1177 Avenue of the Americas

5th Floor
New York, NY 10036
Tel: 646-694-8538
E-mail: info@winsholdings.com 

BEIJING and NEW YORK, June 11, 2020 — 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 that that while it ordinarily does not comment on market activity or market speculation, in view of the recent high trading volume and significant price increase of the Company’s common stock, Wins Finance wanted to confirm to the market that it is not aware of any material corporate developments that could account for this unusual trading activity.

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 its 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 Annual Report on Form 20-F for the year ended June 30, 2018 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:

Wins Finance Holdings Inc.
1177 Avenue of the Americas

5th Floor
New York, NY 10036
Tel: 646-694-8538
E-mail: info@winsholdings.com

BEIJING and NEW YORK, May 26, 2020 /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 that on May 22, 2020, the Company received a delisting determination letter (the “Determination Letter”) from the staff of the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”). The Determination Letter notified the Company that since it had not filed its Annual Report on Form 20-F for the fiscal year ended June 30, 2019 (the “2019 20-F”) by May 13, 2020, the deadline by which the Company was to file the 2019 20-F in order to regain compliance with Listing Rule 5250(c)(1), the Company’s common stock is subject to delisting from The Nasdaq Capital Market.

The Determination Letter further noted that unless the Company requested an appeal of the Staff’s determination no later than 4:00 pm Eastern Time on May 29, 2020, trading of the Company’s common stock on The Nasdaq Capital Market will be suspended at the opening of business on June 2, 2020, and a Form 25-NSE would be filed with the Securities and Exchange Commission (the “SEC”) removing the Company’s securities from listing and registration on The Nasdaq Stock Market.

The Company intends to timely request a hearing before the Nasdaq Hearings Panel (the “Panel”) under Listing Rule 5815(a) to present its plan to regain compliance with Listing Rule 5250(c)(1), which request will automatically stay the delisting of the Company’s securities for 15 calendar days from the date of the request. In connection with its request for a hearing, the Company also intends to request a further stay of the suspension of trading and delisting of the Company’s common stock while the appeals process is pending. The Panel will notify the Company of its decision if it will allow the Company’s common stock to continue to trade on The Nasdaq Capital Market pending the Panel’s decision.

As disclosed previously, the Company is working assiduously to complete its delinquent filing with SEC and to regain compliance with the Nasdaq listing rule as soon as possible. 

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 its 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 Annual Report on Form 20-F for the year ended June 30, 2018 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:

Wins Finance Holdings Inc.
1177 Avenue of the Americas

5th Floor
New York, NY 10036
Tel: 646-694-8538
E-mail: info@winsholdings.com

BEIJING and NEW YORK, November 19, 2019 — 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 that on November 18, 2019, the Company received a notification letter from the NASDAQ Listing Qualifications (“NASDAQ”) stating the Company was not in compliance with NASDAQ Listing Rule 5250(c)(1), due to its failure to timely file its Annual Report on Form 20-F for the year ended June 30, 2019 (the “2019 20-F”). The NASDAQ notification letter provides the Company 60 calendar days from the date of the notification, or until January 17, 2020, to submit a plan to NASDAQ to regain compliance with the NASDAQ’s continued listing requirements. If the plan is accepted, NASDAQ can grant an exception of up to 180 calendar days, or until May 13, 2020, for the Company to regain compliance. The Company may regain compliance at any time by filing its 2019 20-F. If NASDAQ does not accept the Company’s compliance plan, the Company will have the opportunity to appeal that decision to a Hearing Panel under Listing Rule 5815(a). The NASDAQ notification letter has no immediate effect on the listing of the Company’s common stock on the NASDAQ Capital Market. The Company intends to provide a plan of compliance to the NASDAQ Staff on or before January 17, 2020.

The Company was unable to timely file its 2019 20-F due to the uncertainly over the recovery of RMB 580 million (approximately $83 million) in principal under an agreement the Company entered into in 2014 with Guohong Asset Management Co., Ltd., which was due to be repaid in October 2019. The Company has commenced discussions with Guohong Asset Management Co., Ltd. to recover the amount due, but there is no assurance that the Company will be able to recover any or all of the amount due. However, the failure to collect this amount will not impact the Company’s ongoing operations. The Company is currently working with its auditors on finalizing the Company’s financial statements for its fiscal year ended June 30, 2019 in light of the uncertainty around this payment.

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 its 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 Annual Report on Form 20-F for the year ended June 30, 2018 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:

Wins Finance Holdings Inc.
1177 Avenue of the Americas

5th Floor
New York, NY 10036
Tel: 646-694-8538
E-mail: info@winsholdings.com

BEIJING and NEW YORK, June 26, 2019 /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 fiscal six months ended December 31, 2018.

Fiscal Six Months Financial and Operational Highlights

• Gross revenue was $5.2 million, compared to $5.3 million for the corresponding period ended December 31, 2017.
• Interest income on short-term investments was $5.6 million, compared to $7.5 million for the corresponding period ended December 31, 2017.
• Net income attributable to Wins Finance was $3.0 million, compared to $9.2 million for the corresponding period ended December 31, 2017.

“Our gross revenue for the six months ended December 2018 was down 1.1% from the same period a year ago. Our direct financing lease interest income increased by 46%, though this was offset by a 22% decrease in commissions and fees from our financial guarantee services segment and nil cash generated from our financial advisory and lease agency income segment. Our net income fell 67.5%, primarily due to the $8.0 million increase in the accounting provision for lease payment receivables attributable to the risk of potential defaults due to the slowdown of the Chinese economy,” said Renhui Mu, Chairman and Chief Executive Officer of Wins Finance.

“For many Chinese SME’s, 2018 was a challenging year, and subsequently some of our financing leasing clients defaulted on their interest and principal payments. While we are considering taking various measures to protect our rights, we made a $10.5 million allowance on our financial statements related to our financial leasing customers as of December 31, 2018,” added Mr. Mu.

“In view of the slowdown in the Chinese economy, we continue to be cautious about acquiring new leasing customers and we have instituted further risk controls to mitigate the risks inherent in our financial leasing business. However, we believe that we are reasonably well positioned to weather the currently difficult conditions and emerge as a key competitor in our sector,” concluded Mr. Mu.

Financial Results for the Six Months Ended December 31, 2018

Gross revenue

Gross revenue for Wins Finance for the six months ended December 31, 2018 was $5.2 million, which was comprised of $0.9 million of commissions and fees generated from our financial guarantee services, and $4.3 million of direct financing lease interest income.

Commissions and fees from financial guarantee services decreased $0.3 million, or 22.1%, to $0.9 million for the six months ended December 31, 2018, as compared to $1.2 million for the six months ended December 31, 2017. The decrease was primarily attributable to reduced lending activities due to the persistently depressed economy in Shanxi Province, where most of our existing SME clients are located. As a result, fewer potential clients were able to pass our screening process. Concurrent with a slowdown of China’s economy, competition in our lending business has intensified in the region. These factors could negatively impact our business and are likely to continue into the foreseeable future.

Direct financing lease interest income generated from payments under direct financing leases with customers increased by $1.4 million, or 46.0%, to $4.3 million for the six months ended December 31, 2018, as compared to $3.0 million for the six months ended December 31, 2017. The increase was primarily attributable to new leasing contracts of approximately $63.1 million (principal and contractual interest) during the six months of December 31, 2018.

Financial advisory and lease agency income decreased by $1.2 million to nil for the six months ended December 31, 2018, as compared to $1.2 million for the six months ended December 31, 2017. In 2018, we did not secure new contracts in our financial advisory services segment.

Interest income on short-term investments

Interest income from short-term investments decreased by $1.9 million to $5.6 million for the six months ended December 31, 2018, as compared to $7.5 million for the six months ended December 31, 2017. The decrease was primarily attributable to the decrease in the average balance of short-term investments to $154.2 million for the six months ended December 31, 2018 from $197.2 million for the six months ended December 31, 2017.

Non-interest expenses

Non-interest expense was $0.9 million for the six months ended December 31, 2018, as compared to non-interest income of $2.1 million for the six months ended December 31, 2017. The decrease in non-interest expenses was mainly caused by a decrease in legal and consulting fees.

Income taxes

Income tax expense decreased by $1.1 million to an income tax credit of $0.5 million for the six months ended December 31, 2018, as compared to income tax expense of $0.6 million for the six months ended December 31, 2017. The decrease was attributable to the decrease in taxable income, which excluded tax exempt interest income from short-term investments.

Net income

Net income decreased by $6.2 million, or 67.5%, to $3.0 million for the six months ended December 31, 2018, as compared to $9.2 million for the six months ended December 31, 2017.

Current Outlook

Although the slowdown in China’s economy, and the economy of Shanxi Province in particular, has negatively impacted our business, we view the challenging business environment as an opportunity to make positive changes to our operating model that will enable us to both weather current conditions and prepare us for new growth opportunities. With these objectives in mind, we have instituted more stringent requirements related to client risk assessment and risk controls. We have also commenced an analysis of which sectors that the Company will focus on and which regions of China have demonstrated relatively strong stability and growth.

Due the currently challenging macroeconomic conditions, we believe that our sector will experience a shakeout of smaller, underperforming companies which could create business opportunities for us. Further, we think that the barriers to entry for new competitors have increased due to current business volatility, which we believe will help us to establish a larger footprint in our areas of concentration. We believe that our operating experience and enhanced risk management protocols will ultimately help to propel growth once business conditions normalize and our competitive position in our sector begins to strengthen.

We continue to believe that the financial leasing business offers substantial growth opportunities as SMEs have become an indispensable driver of economic and employment growth and continue to contribute to China’s economic transformation. Many SMEs need to upgrade their equipment and adopt new technologies but are not able to access traditional bank financing. We continue to believe that our focus on SMEs is appropriate as many such entities are nimble actors in China’s economy with strong growth potential. However, we note that the period-to-period financial results of this sector is affected by the complexity, uncertainties and changes in China’s economic conditions as well the regulations governing the industry and can cause fluctuations in our periodic operating and financial results. 

Other Significant Events

On August 28, 2018, one of our subsidiaries entered into an agreement to acquire a 30% equity interest in Hui Yue Finance Leasing (Ningbo) Co., Ltd. (“Hui Yue“). Hui Yue will be a joint venture between our subsidiary, Mercury International Financial Leasing (Tianjin) Co., Ltd. (formerly translated as “Chenxing International (Tianjin) Financial Leasing Co., Ltd.”) and Zhongtou Jinchuang (China) Financial Holding Group Co., Limited (formerly translated as “Sino Investment Jinchuang Financial Holding Co., Ltd.”).

On October 26, 2018, the agreement was amended, so that our subsidiary would acquire only a 15% equity interest in Hui Yue (instead of the originally contemplated 30%) for RMB 150 Million (or approximately $22 million). The Company believes that participating in the joint venture has the opportunity to boost the Company’s growth in the leasing sector by leveraging the local financial, governmental and client resources of the Company. Pursuant to the agreement, the Company is required to pay its capital contribution within a thirty year period, from the date of the change of Hui Yue’s company registration. The first payment of RMB 20 million (approximately $3.0 million) was made on October 30, 2018. Hui Yue will focus on the financial leasing of equipment relating to port logistics, construction machinery, energy conservation and medicine in Ningbo, China.

In June 2019, The Company’s principal executive offices changed to 1F, Building 1B, No. 58 Jianguo Road, Chaoyang District, Beijing 100024, People’s Republic of China.

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 its 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 Annual Report on Form 20-F for the year ended June 30, 2018 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:
Wins Finance Holdings Inc.
1177 Avenue of the Americas
5th Floor
New York, NY 10036
Tel: 646-694-8538
E-mail: info@winsholdings.com

BEIJING and NEW YORK, Oct. 31, 2018 /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 audited financial results for the fiscal twelve months ended June 30, 2018.

Fiscal Twelve Months Financial and Operational Highlights

• Gross revenue was $9.7 million, compared to $9.2 million for the corresponding period ended June 30, 2017.
• Interest income on short-term investments was $15.1 million, compared to $13.8 million for the corresponding period ended June 30, 2017.
• Net income attributable to Wins Finance was $10.5 million, compared to $20.3 million for the corresponding period ended June 30, 2017.

“Our gross revenue increased by 5% for fiscal 2018 as compared to fiscal 2017 as our financial advisory business increased by 375%, though this was partially offset by a 19% decrease in our financial guarantee business. However, our net income fell 48%, primarily due to non-cash impairments in our guarantee service and leasing businesses as well as an increase in our expenses,” said Renhui Mu, Chairman and Chief Executive Officer of Wins Finance.

“The economic slowdown in Shanxi Province’s economy, our main market for our financial guarantee business, significantly affected our financial results and the increased risk of potential loan defaults led us to take a $4.9 million provision on our income statement for such defaults. We also took a $3.1 million provision in our financing lease business primarily attributable to the economic slowdown in China, and the increase in default risk of our customers.”

“Our net revenue decreased from $9.7 million for the year ended June 30, 2017 to $0.1 million for the year ended June 30, 2018, representing a decrease of 99%, mainly caused by provisions and impairments on our financial guarantee and leasing businesses that totaled $8.0 million. We note that the provision for the guarantee losses and impairment allowance for the investment in financial leases that have affected our operating results are non-cash items and represent Management’s assessment of the default risk of our guarantee and finance leasing customers.”

“We continue to refine and upgrade our risk management systems and sophisticated client screening processes since SMEs have a relatively high risk profile as compared to larger, more established companies. We are also pursuing new growth opportunities and believe that our joint venture with Hui Yue Financial Leasing (Ningbo) Co., Ltd. has the opportunity to boost our equipment leasing in Ningbo, China,” added Mr. Mu.

Twelve Months Ended June 30, 2018 Financial Results

Gross revenue

Gross revenue for Wins Finance for the twelve months ended June 30, 2018 was $9.7 million, which was comprised of $2.3 million of commissions and fees generated from our financial guarantee services, $5.7 million of direct financing lease interest income and $1.7 million of financial advisory and lease agency income.

Commissions and fees from financial guarantee services decreased $0.5 million, or 18.7%, to $2.3 million for the twelve months ended June 30, 2018, compared to $2.8 million for the twelve months ended June 30, 2017. The decrease was primarily attributable to reduced lending activities due to the economic slowdown in Shanxi Province, where most of our existing SME clients are located, and, as a result, fewer potential clients were able to pass our screening process. Concurrent with a slowdown of China’s economy, competition in our lending business has intensified in the region. These factors are expected to negatively impact our guarantee business in the foreseeable future.

Direct financing lease interest income decreased by $0.3 million, or 5.8%, to $5.7 million for the twelve months ended June 30, 2018, compared to $6.0 million for the twelve months ended June 30, 2017.

Financial advisory and lease agency income increased by $1.3 million, or 374.6%, to $1.7 million for the twelve months ended June 30, 2018, compared to $0.4 million for the twelve months ended June 30, 2017. The increase was primarily attributable to new contracts secured under our financing advisory services.

Interest income on short-term investments

Interest income from short-term investments increased by $1.3 million to $15.1 million for the twelve months ended June 30, 2018, compared to $13.8 million for the twelve months ended June 30, 2017. The increase was primarily due to an increase in the average balance of our short-term investments.

Non-interest expenses

Non-interest expenses increased to $5.7 million for the twelve months ended June 30, 2018, as compared to $1.2 million for the twelve months ended June 30, 2017, primarily due to the increase in other operating expenses. This was due to (i) an increase of $1.8 million in legal and consulting fees due in part to our defending against certain legal proceedings initiated against us, (ii) an impairment loss of $1.3 million on a promissory note (included in short-term investments), and (iii) a negative amount of $1.5 million in share-based compensation expenses being recorded in the year ended June 30, 2017, and the reversal of this expense due to the termination of the options prior to vesting.

Income tax

Income tax expense decreased by $3.0 million, to a tax credit of $1.0 million for the twelve months ended June 30, 2018, compared to an income tax expense of $2.0 million for the twelve months ended June 30, 2017. The decrease was primarily attributable to the decrease in taxable income, which mainly consisted of income before taxes excluding the interest on short-term investments that was tax-exempt.

Net income

Net income decreased by $9.8 million, or 48.4%, to $10.5 million for the twelve months ended June 30, 2018, compared to $20.3 million for the twelve months ended June 30, 2017. The decrease was mainly caused by (i) provisions on our financial guarantee and leasing businesses that totaled $8.0 million and (ii) an increase in non-interest expense of $4.5 million, offset by (iii) an increase in interest income of $1.3 million and (iv) a decrease in income tax expense of $3.0 million.

Current Outlook

Management continues to be cautious as to its operating results in future periods in view of the slowdown of the Chinese economy in those regions where the Company operates and which directly effects China’s financial sector. The Company believes that its financial guarantee services business could especially be adversely affected since its exposure to defaulted loans is expected to increase and counter guarantees or collateral provided may become insufficient to cover repayments. Management is undergoing a review of the risk controls for the Company’s financial guarantee business and may reduce the operation of this business in order to minimize the risks of the Company’s exposure.

Conversely, we are pleased with the growth in our financial advisory and lease agency business. We believe that our customized financial consultancy services are of high value-added for our clients and that it can help them to procure financing. This business can also provide good leads for our guarantee services business should clients pass our risk assessment criteria.

In addition, we continue to believe that the financial leasing business offers substantial growth opportunities as SMEs have become an indispensable driver of promoting economic and employment growth and continue to contribute to China’s economic transformation. Many SMEs need to upgrade their equipment and adopt new technologies but are not able to access traditional bank financing. We continue to believe that our focus on SMEs results from strategic evaluation as many such entities are nimble actors in China’s economy with strong growth potential. However, we note that the period-to-period financial results of this sector is affected by the complexity, uncertainties and changes in China’s economic conditions as well the regulations governing the industry, and can cause fluctuations in our periodic operating and financial results. 

Other Significant Events

On August 28, 2018, one of our subsidiaries entered into an agreement to acquire a 30% equity interest in Hui Yue Finance Leasing (Ningbo) Co., Ltd. (“Hui Yue“). Hui Yue will be a joint venture between us, Mercury International Financial Leasing (Tianjin) Co., Ltd. (formerly translated as Chenxing International (Tianjin) Financial Leasing Co., Ltd) and Zhongtou Jinchuang (China) Financial Holding Group Co., Limited (formerly translated as Sino Investment Jinchuang Financial Holding Co., Ltd). On October 26, 2018, the agreement was amended so that our subsidiary would acquire only a 15% interest in Hui Yue.  The Company will pay RMB 150 million (or approximately $22.7 million) for its 15% interest in Hui Yue. Pursuant to the agreement, the Company was required to pay the capital within thirty years, from the date of change of Hui Yue’s company registration. The first payment of RMB 20 million ($3.0 million) was made on October 30, 2018. Hui Yue will focus on the financial leasing of equipment relating to port logistics, construction machinery, energy conservation and medicine in Ningbo, China. We believe that participating in this investment has the opportunity to boost our growth in the leasing sector by leveraging the local financial, governmental and our client resources.

The Company’s registration statement on Form F-3, which registers the issuance of ordinary shares, preferred shares, warrants, rights, debt securities and debentures by the Company, was declared effective by the SEC on March 30, 2018. The Company may sell such securities from time to time pursuant to the registration statement. As we have previously disclosed, we have advised NASDAQ that we will seek to increase the public float and potentially the liquidity of our ordinary shares in an attempt to limit the volatility in the trading price of our ordinary shares. If we undertake any offering under the registration statement, it will be, in part, an effort to increase the liquidity of our ordinary shares. However, we cannot guarantee that any actions we take will have the intended effect of reducing market volatility and improving liquidity, and such share issuances could result in significant dilution for current shareholders.

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 its 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 Annual Report on Form 20-F for the year ended June 30, 2018 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:

Wins Finance Holdings Inc.
1177 Avenue of the Americas
5th Floor
New York, NY 10036
Tel: 646-694-8538
E-mail: info@winsholdings.com

BEIJING and NEW YORK, May 18, 2018 /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 fiscal six months ended December 31, 2017.

Fiscal Six Months Financial and Operational Highlights

Gross revenue was $5.3 million, compared to $4.8 million for the corresponding period ended December 31, 2016.
Interest income on short-term investments was $7.5 million, compared to $6.8 million for the corresponding period ended December 31, 2016.
Net income attributable to Wins Finance was $9.2 million, compared to $11.0 million for the corresponding period ended December 31, 2016.
“Our gross revenue increased 10% for the first six months of fiscal 2018 as compared to same period a year ago as our financial advisory business increased by 227%, though this was offset by a 26% decrease in our financial guarantee business. However, our net income fell 17%, primarily due an increase in our expenses,” said Renhui Mu, Chairman and Chief Executive Officer of Wins Finance.

“We continue to work to optimize the company’s business and operating structure. The economic slowdown in Shanxi Province’s economy, our main market for our guarantee business, could lead to an increased risk of potential loan default despite our extensive screening process, so we plan to make fewer loan guarantees. Instead, we plan to focus on growing our financing lease business, which we believe will continue to expand in the future.”

“In order to plan for growth and reduce the cost of bank financing, we plan to increase our capital and strive to improve the Company’s credit rating with our lenders. This could take the form of an issuance of securities as outlined in our registration statement on Form F-3,” added Mr. Mu

Six Months Ended December 31, 2017 Financial Results

Gross revenue

Gross revenue for Wins Finance for the six months ended December 31, 2017 was $5.3 million, which was comprised of $1.2 million of commissions and fees generated from our financial guarantee services, $3.0 million of direct financing lease interest income and $1.2 million of financial advisory and lease agency income.

Commissions and fees from financial guarantee services decreased $0.4 million, or 26.4%, to $1.2 million for the six months ended December 31, 2017, compared to $1.6 million for the six months ended December 31, 2016. The decrease was primarily attributable to reduced lending activities due to the economic slowdown in Shanxi Province, where most of our existing SME clients are located, and, as a result, fewer potential clients were able to pass our screening process. Concurrent with a slowdown of China’s economy, competition in our lending business has intensified in the region. These factors are expected to negatively impact our guarantee business in the foreseeable future.

Direct financing lease interest income generated from payments under direct financing leases with customers increased by $0.1 million, or 3.6%, to $3.0 million for the six months ended December 31, 2017, compared to $2.9 million for the six months ended December 31, 2016.

Financial advisory and lease agency income increased by $0.8 million, or 226.8%, to $1.2 million for the six months ended December 31, 2017, compared to $0.4 million for the six months ended December 31, 2016. The increase was primarily attributable to new contracts secured under our financing advisory services.

Interest income on short-term investment

Interest income from short-term investments increased by $0.6 million to $7.5 million for the six months ended December 31, 2017, compared to $6.8 million for the six months ended December 31, 2016. The increase was primarily due to an increase in the average balance of our short-term investments.

Non-interest expenses

Non-interest expense was $2.1 million for the six months ended December 31, 2017, as compared to non-interest income of $0.06 million for the six months ended December 31, 2016. In connection with the grant of stock options to employees, we recorded share-based compensation charges of $nil and a gain of $1.5 million for the six months ended December 31, 2017 and 2016, respectively. The gain in 2016 resulted from the reversal of share-based compensation expense for our stock options that were cancelled in 2016 due to the termination of the holders’ employment prior to vesting.

Income taxes

Income tax expense decreased by $0.6 million, to $0.6 million for the six months ended December 31, 2017, compared to $1.2 million for the six months ended December 31, 2016. The decrease was attributable to the decrease in taxable income, which excluded tax exempt interest income from short-term investments.

Net income

Net income decreased by $1.8 million, or 16.6%, to $9.2 million for the six months ended December 31, 2017, compared to $11.0 million for the six months ended December 31, 2016.

Current Outlook

Management continues to be cautious as to its operating results in future periods in view of the slowdown of the Chinese economy in those regions where the Company operates and which directly effects China’s financial sector. The Company believes that its financial guarantee services business could especially be adversely affected since its exposure to defaulted loans is expected to increase and counter guarantees or collateral provided may become insufficient to cover repayments. Management is undergoing a review of the risk controls for the Company’s financial guarantee business and may reduce the operation of this business in order to minimize the risks of the Company’s exposure.

Conversely, we believe that the financial leasing business offers substantial growth opportunities as SMEs have become an indispensable driver of promoting economic and employment growth and continue to contribute to China’s economic transformation. Many SMEs need to upgrade their equipment and adopt new technologies but have limited access to capital. Although the Company’s financial advisory and agency services are important as they focus on SMEs and have the potential to diversify the Company’s client base, the period-to-period financial results of this sector is affected by the complexity, uncertainties and changes in China’s economic conditions and the regulations governing the industry.

Other Significant Events

The Company’s registration statement on Form F-3, which registers the issuance of ordinary shares, preferred shares, warrants, rights, debt securities and debentures by the Company, was declared effective by the SEC on March 30, 2018. The Company may sell such securities from time to time pursuant to the registration statement. As we have previously disclosed, we have advised NASDAQ that we will seek to increase the public float and potentially the liquidity of our ordinary shares in an attempt to limit the volatility in the trading price of our ordinary shares. If we undertake any offering under the registration statement, it will be, in part, an effort to increase the liquidity of our ordinary shares. However, we cannot guarantee that any actions we take will have the intended effect of reducing market volatility and improving liquidity, and such share issuances could result in significant dilution for current shareholders.

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 its 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 Annual Report on Form 20-F for the year ended June 30, 2017 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:

Wins Finance Holdings Inc.
1177 Avenue of the Americas

5th Floor
New York, NY 10036
Tel: 646-694-8538
E-mail: info@winsholdings.com

BEIJING and NEW YORK, December 1, 2017 — 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 that it expects that its ordinary shares will resume trading on The Nasdaq Stock Market (“Nasdaq”) on December 4, 2017.

As previously reported, the Company was required to submit additional information to Nasdaq following the withdrawal of the delisting determination letter by the Staff of the Listing Qualifications Department of Nasdaq on August 4, 2017. The Company has submitted such information to Nasdaq, which includes certain actions the Company may take to support and potentially increase the liquidity of its ordinary shares. The Company believes that the relatively small number of ordinary shares that are in the public float may have contributed to the volatility of the trading price of its ordinary shares, and that such trading is unrelated to its operating performance. Possibilities for increasing the Company’s public float include, but are not limited to, a forward stock split and working with investment banks to increase its shareholder base, assuming appropriate market conditions. However, the Company cannot guarantee that any actions it takes will have the intended effect of reducing the market volatility of its ordinary shares or increasing its liquidity.

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 Annual Report on Form 20-F for the year ended June 30, 2017 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:
Wins Finance Holdings Inc.
641 Lexington Ave, 29th Floor
New York, NY 10022
Tel: 212-488-4974
E-mail: info@winsholdings.com

BEIJING and NEW YORK, Oct. 20, 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, announced today that on October 19, 2017 the Company received a letter from the Staff of the Listing Qualifications Department (the “Listing Qualifications Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) stating that the Listing Qualifications Staff has withdrawn its August 4, 2017 delisting determination letter. Accordingly, the Company’s securities remain listed on Nasdaq.

Notwithstanding the withdrawal of the August 4, 2017 delisting determination letter, the Company has been further advised by Nasdaq that the Company’s securities will remain halted pending the receipt and review by Nasdaq of additional information from the Company.

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 Annual Report on Form 20-F for the year ended June 30, 2016 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:
Wins Finance Holdings Inc.
641 Lexington Ave, 29th FL
New York, NY 10022
Tel: 212-488-4974
E-mail: info@winsholdings.com

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

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

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.

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.

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 16^th, 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.

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

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.

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.

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