News Releases
Wins Finance Holdings Inc. Announces Receipt of Letter from Nasdaq and Intent to Submit Plan of Compliance
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
June 26, 2019 | Wins Finance Holdings Inc. Reports Unaudited Financial Results for the Six Months Ended
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
Oct 31, 2018 | Wins Finance Holdings Inc. Reports Fiscal Year 2018 Financial Results
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
May 18, 2018 | Wins Finance Holdings Inc. Reports Unaudited Financial Results for the Six Months Ended December 31, 2017
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
Fri Nov 30, 2017 | Wins Finance Holdings to Resume Trading on Nasdaq
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
Mon Nov 13, 2017 | Wins Finance Holdings Inc. Reports Fiscal Year 2017 Financial Results
BEIJING and NEW YORK, Nov. 13, 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 financial results for the fiscal year ended June 30, 2017.
Fiscal Twelve Months Financial and Operational Highlights
- Gross revenue was $9.2 million for the twelve months ended June 30, 2017, compared to $9.8 million for the corresponding period ended June 30, 2016.
- Interest income on short-term investments was $13.8 million for the twelve months ended June 30, 2017, compared to $14.0 million for the corresponding period ended June 30, 2016.
- Net income attributable to Wins Finance was $20.3 million for the twelve months ended June 30, 2017, compared to $12.1 million for the corresponding period ended June 30, 2016.
“Our gross revenue decreased 6% for fiscal 2017 as compared to the fiscal 2016 as our financial guarantee business decreased by 54%, though this was offset by an 91% increase in our financial leasing business. However, our net income rose 68%, primarily due to the reversal of a provision on financial guarantee services and a decrease in non-interest expenses primarily attributable to the reversal of share-based compensation granted in fiscal 2016,” said Renhui Mu, Chairman and Chief Executive Officer of Wins Finance.
“We anticipate that the slowdown of the Chinese economy will continue to negatively affect financial services businesses in China, and could substantially affect our financial guarantee business in the coming quarters. Further, our outstanding guarantee balance declined 22% year-over-year as fewer potential clients passed our risk control assessments.”
“However, we experienced growth in our direct leasing business in fiscal year 2017 as we continue to see new opportunities in this sector and are exploring expansion into new verticals. Our direct finance lease interest income increased substantially during fiscal 2017 as we acquired new leasing contracts of approximately $35.6 million.”
“In order to take advantage of strong growth in the direct leasing business, we are looking for opportunities and clients across China rather than limiting ourselves to specific regions. We are currently focused on the new energy, vehicles, education equipment and medical devices sectors as we have gained expertise in these areas. We also plan upon expanding our business development efforts to include new industry sectors to diversify both our business risk and broaden our income stream, and are currently evaluating new sectors that we believe offer significant growth opportunities,” concluded Mr. Mu.
Twelve Months Ended June 30, 2017 Financial Results
Gross revenue
Gross revenue for Wins Finance for the twelve months ended June 30, 2017 was $9.2 million, which was comprised of $2.8 million of commissions and fees generated from its financial guarantee services, $6.0 million of direct financing lease interest income, and $0.4 million of financial advisory and lease agency income.
Commissions and fees from financial guarantee services decreased $3.4 million, or 54.2%, to $2.8 million for the twelve months ended June 30, 2017, compared to $6.2 million for the corresponding twelve months ended June 30, 2016. The decrease was primarily attributable to reduced lending activities due to the economic recession in Shanxi Province and the Company’s increased scrutiny of potential clients as a result.
Direct financing lease interest income generated from payments under direct financing leases with customers increased by $2.9 million, or 91.1%, to $6.0 million for the twelve months ended June 30, 2017, compared to $3.2 millionfor the corresponding twelve months ended June 30, 2016. The increase was primarily attributable to new leasing contracts of approximately $35.6 million (principal and contractual interest) during fiscal year 2017.
Financial advisory and lease agency income slightly decreased to $0.36 million for the twelve months ended June 30, 2017, compared to $0.40 million for the corresponding twelve months ended June 30, 2016.
Interest income on short-term investment
Interest income from short-term investments decreased by $0.2 million to $13.8 million for the twelve months ended June 30, 2017, compared to $14.0 million for the corresponding twelve months ended June 30, 2016. The decrease was primarily due to a decreased return on short-term investments in the local capital markets.
Non-interest expenses
Non-interest expenses were $1.2 million for the twelve months ended June 30, 2017, as compared to $6.6 million for the corresponding twelve months ended June 30, 2016. Share-based compensation charged as non-interest expenses in fiscal 2016 was $1.9 million, relating to the options granted to the Company’s directors and executive officers. The Company recorded a negative amount of $1.5 million of share-based compensation for fiscal 2017, primarily resulting from the termination of the options granted in fiscal 2016 prior to vesting. In addition, salaries and employee surcharges decreased by $0.6 million primarily due to a reduction in headcount.
Income taxes
Income tax expense increased by $1.2 million to $2.0 million for the twelve months ended June 30, 2017, compared to $0.8 million for the corresponding twelve months ended June 30, 2016. The increase was attributable to the increase 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 increased by $8.2 million, or 67.9% to $20.3 million for the twelve months ended June 30, 2017, compared to $12.1 million for the corresponding twelve months ended June 30, 2016.
Current Outlook
Management continues not to be confident that the Company’s operating results will continue to improve in the foreseeable future in view of the slowdown of the Chinese economy, which directly effects China’s financial sector. Therefore, the Company’s business could be adversely affected, especially its financial guarantee services business. The Company’s 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 take measures as appropriate including, but not limited to, restructuring or disposing of this business in order to minimize the risks of the Company’s exposure.
We believe that the financial leasing business offers substantial growth opportunities as small and medium-sized enterprises (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 the capital markets. We plan to expand through our existing business relationships through our “Industry Chain” network, whereby we identify well-qualified clients through past or existing clients as trusted members and core enterprises of industry chains within our network. Through our business connections, extensive due diligence, risk management and leasing structuring metrics, we believe that we have developed the expertise to compete in the sector and support the under-serviced market of SMEs in China.
We note that certain subsidiaries of the Company in China may be required from time to time to report information on operational and/or financial matters to relevant governmental regulatory bodies in China for statistical purposes. Such information may not be prepared in accordance with US GAAP and therefore not consistent with the information the Company reports in its filings with the SEC.
Other Significant Events
As previously reported, on August 2, 2017, Spectacular Bid Limited, a wholly owned subsidiary of Freeman FinTech Corporation Limited, a company listed on the Hong Kong Stock Exchange, has acquired approximately 67% of the Company’s outstanding shares. As the Company also previously disclosed, at the closing, Haiming Guo, Guo Chen and Jinqxian Zhang resigned from the Board of Directors and Xiaofeng Zhong, Shihai Wang and Weiqi Chen were appointed to the Board of Directors.
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.
As of November 13, 2017, there is one lawsuit pending in China against the Company, and Management believes that resolution of this matter will not result in any payment that, in the aggregate, would be material to the financial position or results of operations of the Company. Two class action lawsuits have been filed in the United States against the Company. On June 19, 2017, the plaintiff in one of the class actions filed a notice of voluntary discontinuance. The directors of the Company believe that the claims from the second class action proceeding are without merit and are vigorously defending this proceeding.
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.
Financial charts are available here.
Company Contacts:
Wins Finance Holdings Inc.
641 Lexington Ave, 29th FL
New York, NY 10022
Tel: 212-488-4974
E-mail: info@winsholdings.com
Fri Oct 20, 2017 | Wins Finance Holdings Announces Nasdaq’s Withdrawal of Delisting Determination Letter
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
Fri Sept 22, 2017 | Wins Finance Holdings Announces Change of Auditors
BEIJING and NEW YORK, Sept. 22, 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 that it has engaged Centurion ZD CPA Limited (“Centurion ZD”) to serve as its independent public accounting firm effective September 22, 2017. The Audit Committee of the Board of Directors of the Company approved Centurion ZD to act as the Company’s independent registered public accounting firm for the fiscal year ending June 30, 2017 and for the Company’s interim financial statements to be included in the Company’s filings on Form 6-K for the year ending June 30, 2018.
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
Wed Aug 9, 2017 | Wins Finance Holdings Announces Receipt of Delisting Determination Letter from Nasdaq
BEIJING and NEW YORK, Aug. 9, 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 that on August 4, 2017, the Company received a delisting determination letter from the Staff of the Listing Qualifications Department (the “Listing Qualifications Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) relating to the delisting of the Company’s securities.
The Listing Qualifications Staff has determined to delist the Company’s securities due to a violation of (i) Listing Rule 5101, due to public interest concerns relating to alleged misrepresentations made to Nasdaq relating to the 300 round lot shareholder requirement in rule 5505(a), (ii) Listing Rule 5250, due to the making of alleged misrepresentations by the Company relating to the 300 round lot shareholder requirement in rule 5505(a), (iii) Listing Rule 5505(a), due to an alleged failure to meet the 300 round lot shareholder requirement at the time of its initial listing, and (iv) Listing Rule 5550(a), due to an alleged failure of the Company to currently meet the 300 round lot shareholder requirement.
The delisting determination letter noted that the Company may appeal the Listing Qualifications Staff’s determination. However, if the Company does not appeal this determination, a Form 25-NSE will be filed with the Securities and Exchange Commission, which will remove the Company’s securities from listing and registration on The Nasdaq Stock Market.
The Company intends to request a hearing before the Nasdaq Hearings Panel to appeal the Listing Qualification Staff’s determination as set forth in the Listing Rule 5800 Series.
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
Wed Aug 2, 2017 | Wins Finance Holdings Inc. Announces Transfer of Shares
Wins Finance Holdings Inc. Announces Transfer of Shares
BEIJING and NEW YORK, Aug. 2, 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 that Spectacular Bid Limited, a wholly owned subsidiary of Freeman FinTech Corporation Limited (“Freeman”), a company listed on the Hong Kong Stock Exchange, has acquired approximately 67% of the Company’s outstanding shares from Appelo Ltd. and Wits Global Ltd., each an entity controlled by Mr. Wang Hong (collectively, the “Sellers”). As the Company previously disclosed would take place, at the closing, Haiming Guo, Guo Chen and Jingxiao Zhang resigned from the Board of Directors and Xiaofeng Zhong, Shihai Wang and Weiqi Chen were appointed to the Board of Directors.
As previously reported, on December 13, 2016, the Sellers 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 Freeman. In connection with the transaction, the Seller transferred certain rights in a registration rights agreement to Freeman.
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
Wed Jun 28th, 2017 | Wins Finance Holdings Inc. Reports Unaudited and Unreviewed Fiscal Second Quarter 2017 Financial Results
BEIJING and NEW YORK, June 28, 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 and unreviewed financial results for the second fiscal quarter and six months ended December 31, 2016.
Fiscal Second Quarter Financial and Operational Highlights
- Gross revenue was $2.5 million, compared to $2.6 million for the corresponding period ended December 31, 2015.
- Interest income on short-term investments was $3.4 million, compared to $3.5 million for the corresponding period ended December 31, 2015.
- Net income attributable to Wins Finance was $7.9 million for the quarter, compared to $3.4 million for the corresponding period ended December 31, 2015.
Fiscal Six Months Financial and Operational Highlights
- Gross revenue was $4.8 million, compared to $4.8 million for the corresponding period ended December 31, 2015.
- Interest income on short-term investments was $6.8 million, compared to $7.1 million for the corresponding period ended December 31, 2015.
- Net income attributable to Wins Finance was $11.0 million for the quarter, compared to $7.9 million for the corresponding period ended December 31, 2015.
“Our gross revenue was modestly down for the second fiscal quarter year-over-year, and virtually unchanged for the latest six months ended December 31, 2017 as compared to the year-ago six-month period. However, we expect that the continuing slowdown of the Chinese economy, which has adversely affected financial services businesses in China, could substantially affect our financial guarantee business in the coming quarters where this business segment could become severely constrained,” said Renhui Mu, Chairman and Chief Executive Officer of Wins Finance.
“To offset challenges in our financial guarantee business, we plan upon widening our business development efforts to include new sectors where we might find business opportunities in our direct financing leasing business. We remain focused on developing our leasing business in both the medical equipment and new energy sectors, both of which continue to offer significant opportunities.”
“During the quarter ended December 31, 2016, we signed new contracts with an aggregate principal amount of $18.1 million (RMB 126 million) in our direct leasing business and we are also actively exploring expansion into the infrastructure sector via governmental urban construction projects. We are focused on growing this business and are actively seeking new business in the leasing sector where we can leverage our core competencies and expertise,” concluded Mr. Mu.
Three and Six Months Ended December 31, 2016 Financial Results
Gross revenue
Gross revenue for Wins Finance for the three and six months ended December 31, 2016 was $2.5 million and $4.8 million, which was comprised of $0.7 million and $1.6 million of commissions and fees generated from its financial guarantee services, $1.4 million and $2.8 million of direct financing lease interest income, and $0.4 million and $0.4 million of financial advisory and lease agency income, respectively.
Commissions and fees from financial guarantee services decreased $0.9 million and $1.8 million, or 55.6% and 53.9%, to $0.7 million and $1.6 million for the three and six months ended December 31, 2016, compared to $1.6 million and $3.4 million for the corresponding three and six months ended December 31, 2015, respectively. The decrease was primarily attributable to reduced lending activities due to the economic recession in Shanxi Province and, as a result, fewer potential clients were able to pass our screening process. Concurrent with a slowing of China’s economy, there are signs that competition has significantly increased 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 $0.9 million and $1.8 million, or 180.5% and 194.1%, to $1.4 million and $2.8 million for the three and six months ended December 31, 2016, compared to $0.5 million and $1.0 million for the corresponding three and six months ended December 31, 2015, respectively. The increase was primarily attributable to newly added contracts in themedical equipment and new energy sectors.
Financial advisory and lease agency income slightly decreased to $0.36 million and $0.36 million for the three and six months ended December 31, 2016, compared to $0.40 million and $0.4 million for the corresponding three and six months ended December 31, 2015, respectively.
Interest income on short-term investment
Interest income from short-term investments decreased by $0.1 million and $0.3 million to $3.4 million and $6.8 millionfor the three and six months ended December 31, 2016, compared to $3.5 million and $7.1 million for the corresponding three and six months ended December 31, 2015, respectively. The decrease was primarily due to a decreased return on short-term investments in the local capital markets.
Non-interest expenses
Non-interest expenses were a positive $1.7 million and $0.6 million for the three and six months ended December 31, 2016, as compared to negative expense items of $2.1 million and $3.0 million for the corresponding three and six months ended December 31, 2015, respectively. The decrease was mostly attributable to the Management initiative to cancel the share-based compensation plan, which totaled an expense of approximately $2.5 million and $1.7 million for the three and six months ended December 31, 2016 due to cancellation of the 920,000 share options granted on December 16, 2015 to Jianming Hao and Jingxiao Zhang as reported in the Form 6K filed on February 14, 2017.
Income taxes
Income tax expense increased by $0.6 million and $0.5 million, to $1.0 million and $1.2 million for the three and six months ended December 31, 2016, compared to $0.4 million and $0.7 million for the corresponding three and six months ended December 31, 2015, respectively. The increase was attributable to the increase in taxable income, other than tax exempted interest income, from short-term investments.
Net income
Net income increased by $4.5 million and $3.1 million, or 132.5% and 39.9%, to $7.9 million and $11.0 million for the three and six months ended December 31, 2016, compared to $3.4 million and $7.9 million for the corresponding three and six months ended December 31, 2015, respectively.
Current Outlook
Management is not confident that the Company’s operating results will continue to improve in the foreseeable future in view of the slowdown of the Chinese economy which directly effects China’s financial sector. Therefore, the Company’s business could be adversely affected, especially its financial guarantee services business. The Company’s 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 take measures as appropriate including, but not limited to, restructuring or disposing of this business in order to minimize the risks of the Company’s exposure.
Despite the macroeconomic slowdown in China, Management plans upon focusing upon growing the Company’s financing lease business. The Company’s strategy is to enter new verticals and enlarge the footprint of its domestic base of operations. The Company plans to continue to employ its expertise and high standards of business opportunity and risk assessment to service and support the under-serviced market of small and medium enterprises in China.
We note that certain subsidiaries of the Company in China may be required from time to time to report information on operational and/or financial matters to relevant governmental regulatory bodies in China for statistical purposes. Such information may not be prepared in accordance with US GAAP and therefore not consistent with the information the Company reports in its filings with the SEC.
Other Significant Events
As previously reported, on December 13, 2016, Appelo and Wits entered into an agreement for the sales of aggregately 13,440,000 ordinary shares of the Company beneficially held by Appelo and Wits (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 of the Company’s ordinary shares and does not have any plan to acquire the Company’s remaining outstanding ordinary shares.
The transaction has not yet been closed and the Company will file a Form 6-K to advise the public when the closing takes place.
On May 9, 2017, Mr. Jianming Hao resigned from his position as President of Wins Finance Holdings Inc. Mr. Hao indicated that his resignation was not the result of any disagreement with the Company on any matter relating to the Company’s operations, polices or practices.
On April 3, 2017, Mr. Jianming Hao resigned from his position as Co-Chief Executive Officer, Director and Chairman of the Board of Directors of the Company and he was appointed President of the Company. Concurrently therewith, the Company’s Board of Directors named Mr. Renhui Mu the Company’s Chief Executive Officer, Chief Operating Officer and Chairman of the Board (he was previously Co-Chief Executive Officer, Chief Operating Officer and a director) and appointed Mr. Junfeng Zhao, the Company’s Chief Financial Officer, to the Board of Directors to fill the vacancy created by the resignation of Mr. Hao.
On February 14, 2017, Wins Finance Holdings Inc. entered into agreements with each of the employees listed below to terminate the option agreements with such employees for no consideration.
|
Name of Employee |
Number of Option Shares Canceled |
|
|
Jianming Hao |
900,000 |
|
|
Renhui Mu |
40,000 |
|
|
Junfeng Zhao |
40,000 |
|
|
Jingxiao Zhang |
20,000 |
As a result of the termination of such options and the automatic termination of options upon the previously announced departures of executive officers and directors of the Company, as of the date of this press release, the Company did not have any options outstanding.
On November 2, 2016, the Company repurchased 204,005 of its ordinary shares from Richard Xu, a former officer of the Company, for nominal consideration. As of December 31, 2016, there were 19,837,642 shares of Common Stock issued and outstanding.
As of December 31, 2016, the guarantee contract amounts represent credit risk of $80.0 million (RMB 555.7 million), and $0.2 million (RMB 1.6 million) is classified by the Company as a “concern”, meaning that there is an element of doubt regarding default. In response to business that has been classified as a “concern”, the Company has requested and received $0.3 million (RMB 2.4 million) in collateral in the form of property.
As of June 28, 2017, there is one lawsuit pending in China against the Company, and management believes that resolution of this matter will not result in any payment that, in the aggregate, would be material to the financial position or results of operations of the Company. Two class action lawsuits were been filed in the United States against the Company. The plaintiff in one of the class actions filed a notice of voluntary discontinuance. The impact of the proceedings on the Company is currently unclear.
Going forward, the Company plans to release financial information on a semi-annual basis, for the six months ending December 31st and the twelve months ending June 30th of each year.
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
|
WINS FINANCE HOLDINGS INC. |
||||
|
UNAUDITED AND UNREVIEWED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
|
As of |
||||
|
December 31, |
June 30, |
|||
|
US$ |
US$ |
|||
|
ASSETS |
||||
|
Cash |
8,979,948 |
47,163,965 |
||
|
Restricted cash |
24,234,070 |
27,962,846 |
||
|
Short-term investment |
179,119,650 |
149,841,838 |
||
|
Guarantee paid on behalf of guarantee service customers |
3,763,841 |
2,039,684 |
||
|
Interest receivable |
2,375,418 |
1,021,306 |
||
|
Net investment in direct financing leases |
81,428,723 |
74,705,647 |
||
|
Deferred tax assets, net |
337,853 |
428,524 |
||
|
Property and equipment, net |
693,984 |
854,719 |
||
|
Other assets |
519,039 |
608,751 |
||
|
TOTAL ASSETS |
301,452,526 |
304,627,280 |
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||
|
Liabilities |
||||
|
Bank loan for capital lease business |
34,571,185 |
43,308,617 |
||
|
Loans payable |
7,175,775 |
– |
||
|
Interest payable |
239,284 |
208,947 |
||
|
Income tax payable |
2,746,781 |
2,510,847 |
||
|
Unearned income from financial guarantee services |
705,727 |
423,801 |
||
|
Other liabilities |
902,198 |
964,109 |
||
|
Deposit from direct financing leases |
10,592,573 |
9,134,946 |
||
|
Due to related party |
464,000 |
464,000 |
||
|
Allowance on guarantee |
800,228 |
3,079,684 |
||
|
Deferred income tax liability |
830,693 |
477,398 |
||
|
Total Liabilities |
59,028,444 |
60,572,349 |
||
|
Shareholders’ Equity |
||||
|
Common stock (par value $0.0001 per share, 100,000,000 |
1,984 |
2,004 |
||
|
Additional paid-in capital |
211,934,415 |
213,400,296 |
||
|
Statutory reserve |
2,364,245 |
2,364,245 |
||
|
Retained Earnings |
54,275,499 |
43,244,044 |
||
|
Accumulated other comprehensive loss |
(26,152,061) |
(14,955,658) |
||
|
Total Equity |
242,424,082 |
244,054,931 |
||
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
301,452,526 |
304,627,280 |
||
|
WINS FINANCE HOLDINGS INC. |
|||||||||||
|
UNAUDITED AND UNREVIEWED CONDENSED CONSOLIDATED STATEMENTS OF |
|||||||||||
|
INCOME AND |
|||||||||||
|
COMPREHENSIVE LOSS |
|||||||||||
|
Three months ended |
Six months ended |
||||||||||
|
December 31, |
December 31, |
December 31, |
December 31, |
||||||||
|
US$ |
US$ |
US$ |
US$ |
||||||||
|
Guarantee service income |
|||||||||||
|
Commissions and fees on financial guarantee services |
739,445 |
1,664,116 |
1,575,208 |
3,415,695 |
|||||||
|
Reversal/(Provision) of provision on financial guarantee services |
2,242,439 |
(74,014) |
2,248,283 |
(73,695) |
|||||||
|
Commission and fees on guarantee services, net |
2,981,884 |
1,590,102 |
3,823,491 |
3,342,000 |
|||||||
|
Direct financing lease income |
|||||||||||
|
Direct financing lease interest income |
1,395,837 |
497,613 |
2,857,051 |
971,365 |
|||||||
|
Interest expense for direct financing lease |
(729,043) |
(19,590) |
(1,544,164) |
(24,940) |
|||||||
|
Provision for lease payment receivable |
(146,171) |
(180,275) |
(120,587) |
(184,412) |
|||||||
|
Net direct financing lease interest income after provision for |
520,623 |
297,748 |
1,192,300 |
762,013 |
|||||||
|
Financial advisory and lease agency income |
356,137 |
405,603 |
356,137 |
405,603 |
|||||||
|
Net revenue |
3,858,644 |
2,293,453 |
5,371,928 |
4,509,616 |
|||||||
|
Non-interest income |
|||||||||||
|
Interest on short-term investment |
3,374,595 |
3,522,153 |
6,838,031 |
7,109,293 |
|||||||
|
Total non-interest income |
3,374,595 |
3,522,153 |
6,838,031 |
7,109,293 |
|||||||
|
Non-interest expense |
|||||||||||
|
Business taxes and surcharge |
(625) |
(45,876) |
(1,473) |
(172,837) |
|||||||
|
Salaries and employees surcharge |
(320,635) |
(363,376) |
(612,926) |
(544,695) |
|||||||
|
Rental expenses |
(56,908) |
(68,048) |
(115,187) |
(132,483) |
|||||||
|
Other operating expenses |
2,074,528 |
(1,573,216) |
788,790 |
(2,143,720) |
|||||||
|
Total non-interest expense |
1,696,360 |
(2,050,516) |
59,204 |
(2,993,735) |
|||||||
|
Income before taxes |
8,929,599 |
3,765,090 |
12,269,163 |
8,625,174 |
|||||||
|
Income tax expense |
(101,645) |
(267,364) |
(794,964) |
(1,378,508) |
|||||||
|
Deferred tax (expense)/benefit |
(895,094) |
(85,253) |
(442,744) |
641,314 |
|||||||
|
NET INCOME |
7,932,860 |
3,412,473 |
11,031,455 |
7,887,980 |
|||||||
|
Other comprehensive income |
|||||||||||
|
Foreign currency translation adjustment |
(9,810,806) |
(4,663,119) |
(11,196,403) |
(14,240,489) |
|||||||
|
COMPREHENSIVE LOSS |
(1,877,946) |
(1,250,646) |
(164,948) |
(6,352,509) |
|||||||
|
Weighted average shares used in computation: |
|||||||||||
|
Basic – Common |
19,986,211 |
21,526,747 |
20,041,647 |
21,526,747 |
|||||||
|
Diluted – Common |
20,274,028 |
21,526,747 |
20,297,832 |
21,526,747 |
|||||||
|
Net income per share: |
|||||||||||
|
Basic – Common |
0.40 |
0.16 |
0.55 |
0.37 |
|||||||
|
Diluted – Common |
0.39 |
0.16 |
0.54 |
0.37 |
|||||||
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 limitation, the Company has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.
|
WINS FINANCE HOLDINGS INC. |
||||||||
|
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS |
||||||||
|
Three months ended |
Six months ended |
|||||||
|
December 31, |
December 31, |
December 31, |
December 31, |
|||||
|
US$ |
||||||||
|
Other operating expenses under GAAP |
2,074,528 |
(1,573,216) |
788,790 |
(2,143,720) |
||||
|
Adjustment (Note (a)) |
(2,286,919) |
204,042 |
(2,100,966) |
204,042 |
||||
|
Non-GAAP Other operating expenses |
(212,391) |
(1,369,174) |
(1,312,176) |
(1,939,678) |
||||
|
Net income under GAAP |
7,932,860 |
3,412,473 |
11,031,455 |
7,887,980 |
||||
|
Adjustment (a) |
(2,286,919) |
204,042 |
(2,100,966) |
204,042 |
||||
|
Non-GAAP net income |
5,645,941 |
3,616,515 |
8,930,489 |
8,092,022 |
||||
|
Weighted average shares used in |
||||||||
|
Basic – Common |
19,986,211 |
21,526,747 |
20,041,647 |
21,526,747 |
||||
|
Diluted – Common |
20,274,028 |
21,526,747 |
20,297,832 |
21,526,747 |
||||
|
Non-GAAP earnings per share |
||||||||
|
Basic – Common |
0.28 |
0.17 |
0.45 |
0.38 |
||||
|
Diluted – Common |
0.28 |
0.17 |
0.44 |
0.38 |
||||
|
Note (a): Adjusted exclusion on share-based compensation expenses |
||||||||
SOURCE Wins Finance Holdings Inc.
Thu Feb 9th, 2017 | Wins Finance Holdings Inc. Announces that it is not in Possession of any Material Non-Public Information
BEIJING and NEW YORK, Feb. 9, 2017 /PRNewswire/ — Wins Finance Holdings Inc. (“Wins Finance” or the “Company”) (WINS), a diversified investment and asset management company that provides integrated financing solutions to small and medium enterprises (“SMEs”) in China, today announced that it is not in possession of any material non-public information and that it is not aware of the reasons for the recent volatility in its stock price. The Company’s management thought it prudent to advise the market of this given recent fluctuations in its stock price.
About Wins Finance
Wins Finance is a diversified investment and asset management company listed on NASDAQ. The company is focused on identifying value accretive investment opportunities and assets in China and the United States that can be enhanced through the strategic involvement of Wins’ established management team and its familiarity with the Chinese investment community to help generate long-term value for shareholders. Wins Finance is well positioned to leverage its expertise and existing operations in China to build a comprehensive platform for the provision of lending and other financing solutions to the under-served small and medium enterprise segment. For more information, please visit www.winsholdings.com .
Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management’s current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties. Further information regarding these and other risks are described in the Company’s filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
Company Contact Information:
Wins Finance Holdings Inc.
7 Times Square
37th Floor
New York, NY 10036
Tel: 212-488-4974
E-mail: info@winsholdings.comTo view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wins-finance-holdings-inc-announces-that-it-is-not-in-possession-of-any-material-non-public-information-300405494.html
Fri Jan 6th, 2017 | Wins Finance Holdings Inc. Reports Unaudited Fiscal First Quarter 2017 Financial Results
NEW YORK, Jan. 6, 2017 /PRNewswire/ — Wins Finance Holdings Inc. (“Wins Finance” or the “Company”) (NASDAQ: WINS), a diversified investment and asset management company that provides integrated financing solutions to small and medium enterprises (“SMEs”) in China, today announced its unaudited financial results for the quarter ended September 30, 2016.
Fiscal First Quarter Financial and Operational Highlights
- Gross revenues were $2.3 million, compared to $2.2 million for the comparable period last year.
- Interest on short-term investments was $3.5 million, compared to $3.6 million for the comparable period last year.
- Net income attributable to Wins Finance was $3.1million for the quarter ended September 30, 2016, compared to $4.7 million for the same period ended September 30, 2015.
“In the past year, we have made progress in our direct leasing business in the medical equipment and new energy sectors. $22.11 million (RMB 147 million) and $44.98 million (RMB300 million) were funded to medical equipment and new energy sectors, respectively. We remain focused on development of our leasing business in these sectors, both of which offer significant opportunities for investment. We expect these two sectors to continue to grow despite the economic slowdown and other macroeconomic factors,” said Renhui Mu, Co CEO and COO of Wins Finance. “We continue to expand our pipeline of leasing opportunities, and expect our geographic footprint to increase during in the second half of 2017.”
Quarter Ended September 30, 2016 Results
Gross revenue
Wins Finance’s gross revenue for the quarter ended September 30, 2016 was $2.3 million, which consists of $0.8 million of commissions and fees generated from its financial guarantee services, and $1.5 million of direct financing lease interest income.
Commissions and fees on financial guarantee services generated from financial guarantee services the Company provides to customers decreased by $0.9 million, or 52.3%, to $0.8 million for the quarter ended September 30, 2016, compared to $1.8 million for the quarter ended September 30, 2015. The decrease was primarily attributable to reduced lending activities due to the economic recession in Shanxi province and our increased scrutiny of potential clients as a result thereof.
Direct financing lease interest income generated from payments under direct financing leases with customers increased by $1.0 million, or 208.4%, to $1.5 million for the quarter ended September 30, 2016, compared to $0.5 million for the quarter ended September 30, 2015. The increase was primarily attributable to new contracts in the medical equipment and new energy sectors.
Interest on short-term investment
Interest on short-term investments decreased by $0.1 million to $3.5 million for the quarter ended September 30, 2016, compared to $3.6 million for the same period ended September 30, 2015. The decrease was primarily due to a decrease in the rate of return caused by decreased return in the local capital markets, partially offset by an increase in the average balances of short-term investments.
Non-interest expenses
Non-interest expenses increased by $0.8 million, or 114.8%, to $1.6 million for the quarter ended September 30, 2016, compared to $0.8 million for the same period ended September 30, 2015. The increase was primarily attributable to an increase of $0.8 million in share-based compensation to the company’s directors and executive officers and increases in salaries, legal fees, auditing fees and consulting fees for investor relations in connection with being a public company.
Income taxes
Income tax expense decreased by $0.4 million, or 38.0%, to $0.7 million for the three months ended September 30, 2016, compared to $1.1 million for the three months ended September 30, 2015. The decrease was primarily attributable to a decrease in taxable income excluding interest on short-term investment, which is exempt from taxation.
Net income
Net income decreased by $1.6 million, or 33.5%, to $3.1 million for the quarter ended September 30, 2016, compared to $4.7 million for the same period ended September 30, 2015.
Other Significant Events
As previously reported, on December 13, 2016, Appelo Ltd. and Wits Global Ltd., each an entity controlled by Mr. Wang Hong, entered into an agreement to transfer all of the ordinary shares of Wins Finance owned by them, an aggregate of 13,440,000 ordinary shares (approximately 67% of the Company’s outstanding ordinary shares), to Spectacular Bid Limited, a wholly owned subsidiary of Freeman FinTech Corporation Limited, a company listed on the Hong Kong Stock Exchange (collectively, the “Purchaser”). To the knowledge of the Company, the Purchaser does not own any other of the Company’s ordinary shares and the Purchaser does not have any plans to acquire the Company’s remaining outstanding ordinary shares.
At the closing, Jianming Hao, Haiming Guo, Guo Chen and Jingxiao Zhang will resign from the Board of Directors and Junfeng Zhao, Xiaofeng Zhong, Shihai Wang and Weiqi Chen will be appointed to the Board of Directors. In addition, Jianming Hao will resign as Co-Chief Executive Officer of the Company.
The transaction has not yet closed.
About Wins Finance
Wins Finance is a diversified investment and asset management company listed on NASDAQ. The company is focused on identifying value accretive investment opportunities and assets in China and the United States that can be enhanced through the strategic involvement of Wins’ established management team and its familiarity with the Chinese investment community to help generate long-term value for shareholders. Wins Finance is well positioned to leverage its expertise and existing operations in China to build a comprehensive platform for the provision of lending and other financing solutions to the under-served small and medium enterprise segment. For more information, please visit www.winsholdings.com.
Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management’s current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties. Further information regarding these and other risks are described in the Company’s Current Report on Form 8-K dated October 26, 2015 and in the Company’s other filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
Company Contacts:
Jianming Hao, President
Wins Finance Holdings Inc.
590 Madison Avenue, 21st FL
New York, NY 10022
Tel: 646-480-9882
Email: jhao@winsii.com
|
WINS FINANCE HOLDINGS INC. |
||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
|
As of |
||||
|
September 30, |
June 30, |
|||
|
US$ |
US$ |
|||
|
ASSETS |
||||
|
Cash |
8,715,638 |
47,163,965 |
||
|
Restricted cash |
26,766,408 |
27,962,846 |
||
|
Short-term investment |
186,474,512 |
149,841,838 |
||
|
Commission receivable |
286,047 |
– |
||
|
Guarantee paid on behalf of guarantee service customers |
2,578,008 |
2,039,684 |
||
|
Interest receivable |
4,438,571 |
1,021,306 |
||
|
Net investment in direct financing leases |
72,187,582 |
74,705,647 |
||
|
Deferred tax assets, net |
404,043 |
428,524 |
||
|
Property and equipment, net |
816,801 |
854,719 |
||
|
Other assets |
9,657,588 |
608,751 |
||
|
TOTAL ASSETS |
312,325,198 |
304,627,280 |
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||
|
Liabilities |
||||
|
Bank loan for capital lease business |
39,553,635 |
43,308,617 |
||
|
Loans payable |
8,239,147 |
– |
||
|
Interest payable |
220,540 |
208,947 |
||
|
Income tax payable |
3,067,173 |
2,510,847 |
||
|
Unearned income from financial guarantee services |
993,051 |
423,801 |
||
|
Other liabilities |
10,142,287 |
10,099,055 |
||
|
Due to related party |
464,000 |
464,000 |
||
|
Allowance on guarantee |
3,056,206 |
3,079,684 |
||
|
Deferred income tax liability |
– |
477,398 |
||
|
Total Liabilities |
65,736,039 |
60,572,349 |
||
|
Shareholders’ Equity |
||||
|
Common stock (par value $0.0001 per share, 100,000,000 |
2,004 |
2,004 |
||
|
Additional paid-in capital |
214,221,526 |
213,400,296 |
||
|
Statutory reserve |
2,364,245 |
2,364,245 |
||
|
Retained Earnings |
46,342,639 |
43,244,044 |
||
|
Accumulated other comprehensive loss |
(16,341,255) |
(14,955,658) |
||
|
Total Equity |
246,589,159 |
244,054,931 |
||
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
312,325,198 |
304,627,280 |
||
|
WINS FINANCE HOLDINGS INC. |
|||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND |
|||||
|
COMPREHENSIVE INCOME (LOSS) |
|||||
|
Three months ended |
|||||
|
September 30, |
September 30, |
||||
|
US$ |
US$ |
||||
|
Guarantee service income |
|||||
|
Commissions and fees on financial guarantee services |
835,763 |
1,751,579 |
|||
|
(Provision)/reversal of provision on financial guarantee services |
5,844 |
319 |
|||
|
Commission and fees on guarantee services, net |
841,607 |
1,751,898 |
|||
|
Direct financing lease income |
|||||
|
Direct financing lease interest income |
1,461,214 |
473,752 |
|||
|
Interest expense for direct financing lease |
(815,121) |
(5,350) |
|||
|
Reversal/(provision) for lease payment receivable |
25,584 |
(4,137) |
|||
|
Net direct financing lease interest income after provision for |
671,677 |
464,265 |
|||
|
Net revenue |
1,513,284 |
2,216,163 |
|||
|
Non-interest income |
|||||
|
Interest on short-term investment |
3,463,436 |
3,587,140 |
|||
|
Total non-interest income |
3,463,436 |
3,587,140 |
|||
|
Non-interest expense |
|||||
|
Business taxes and surcharge |
(848) |
(126,961) |
|||
|
Salaries and employees surcharge |
(292,291) |
(181,319) |
|||
|
Rental expenses |
(58,279) |
(64,435) |
|||
|
Other operating expenses |
(1,285,738) |
(389,357) |
|||
|
Total non-interest expense |
(1,637,156) |
(762,072) |
|||
|
Income before taxes |
3,339,564 |
5,041,231 |
|||
|
Income tax expense |
(693,319) |
(1,111,144) |
|||
|
Deferred tax expense/(benefit) |
452,350 |
726,567 |
|||
|
NET INCOME |
3,098,595 |
4,656,654 |
|||
|
Other comprehensive income |
|||||
|
Foreign currency translation adjustment |
(1,385,597) |
(9,577,369) |
|||
|
COMPREHENSIVE INCOME/(LOSS) |
1,712,998 |
(4,920,715) |
|||
|
Weighted-average ordinary shares outstanding – basic and diluted |
20,041,647 |
30,000,100 |
|||
|
Earnings per share – Basic and diluted |
0.15 |
0.16 |
|||
NON-GAAP FINANCIAL MEASURES
The non-GAAP financial measures below are provided to enhance investors’ overall understanding of the company current financial performance and prospects for the future. A limitation of using non-GAAP other operating expenses and net income, excluding share-based compensation expenses, is that these items have been and may continue to be a significant expense in the Company’s business for the foreseeable future. In order to mitigate these limitations the Company has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.
|
WINS FINANCE HOLDINGS INC. |
|||||
|
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS |
|||||
|
Three months ended |
|||||
|
September 30, |
September 30, |
||||
|
US$ |
US$ |
||||
|
Other operating expenses under GAAP |
(1,285,738) |
(389,357) |
|||
|
Adjustment (a) |
821,239 |
– |
|||
|
Non-GAAP Other operating expenses |
(464,499) |
(389,357) |
|||
|
Net income under GAAP |
3,098,595 |
4,656,654 |
|||
|
Adjustment (a) |
821,239 |
– |
|||
|
Non-GAAP net income |
3,919,834 |
4,656,654 |
|||
|
Basic and diluted shares outstanding |
20,041,647 |
30,000,100 |
|||
|
Non-GAAP earnings per share, basic and diluted |
0.20 |
0.16 |
|||
|
(a) Adjustment to exclude the share-based compensation expenses for each period |
|||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wins-finance-holdings-inc-reports-unaudited-fiscal-first-quarter-2017-financial-results-300386189.html
SOURCE Wins Finance Holdings Inc.
Tue Jun 14th, 2016 | Wins Finance Expands Further Into the Leasing In New Energy Vehicle Sector in China, Entering Into A Sale-leaseback Arrangement Valued at RMB200 Million (US$30.42 Million)
NEW YORK, June 14, 2016 /PRNewswire/ — Wins Finance Holdings Inc. (Nasdaq: WINS) (“Wins Finance” or the “Company”), June 14, 2016 announced that its wholly-owned subsidiary, Jinshang International Financial Lease Co., Ltd, has entered into another purchase-and-lease-back agreement valued at RMB200 million (US$30.42 million) with Liaoning SG Automotive Group Co., Ltd. (“SG Automotive Group”) to support their development and production of new energy vehicle technology.
The arrangement provides for financing in two parts: RMB100 million (US$15.42 million) was funded to SG Automotive Group on May 16th, 2016 and the remaining RMB100 million (US$15.42 million)was funded to SG Automotive Group at June 7, 2016. Both stages of the sale-leaseback agreement related to equipment of equivalent value.
Renhui Mu, Co-Chief Executive Officer and Chief Operating Officer of Wins Finance stated, “Our further cooperation with SG Automotive Group is helping us to get a better understanding of the new energy vehicle market and lay a solid foundation to acquire additional market share in the future. I believe that further investment in this industry will bring significant returns in the future.”
About Wins Finance
Wins Finance is a financial holding company that provides integrated financing solutions to small and medium enterprises (SMEs) in China. Wins Finance’s goal is to assist Chinese SMEs, including microenterprises, which have limited access to financing, to improve their overall fund-raising capability and enable them to obtain funding for business development. Since its establishment in 2006, Wins Finance has helped various SMEs obtain funding by providing them financial guarantees and financial leasing, as well as advisory services. Wins Finance is building upon its core financial services business in China to create a comprehensive asset management platform, offering its clients access to high quality proprietary assets in China. For more information, please visit www.winsholdings.com.
Forward-looking Statements
This news release includes forward-looking statements. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that the Company expects or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of current conditions and expected future developments as well as other factors it believes areappropriate in the circumstances. However, whether actual results and developments will conform to the Company’s expectations and predictions is subject to a number of risks and uncertainties, including the risk that the Company’s efforts to expand into the new energy vehicles leasing sector will not be successful, and the risks described in Wins Finance’s Quarterly Report on Form 10-Q filed on November 16, 2015 and in its other filings with the Securities and Exchange Commission.
Company Contacts:
Richard Xu, President
Wins Finance Holdings Inc.
590 Madison Avenue, 21st FL
New York, NY 10022
Tel: 646-480-9882
Email: richard.xu@winsholdings.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wins-finance-expands-further-into-the-leasing-in-new-energy-vehicle-sector-in-china-entering-into-a-sale-leaseback-arrangement-valued-at-rmb200-million-us3042-million-300284114.html
SOURCE Wins Finance Holdings Inc.
Fri May 27th, 2016 | Wins Finance Holdings Inc. Reports Unaudited Fiscal Third Quarter 2016 Financial Results
NEW YORK, May 27, 2016 /PRNewswire/ — Wins Finance Holdings Inc. (“Wins Finance” or the “Company”) (NASDAQ: WINS), a diversified investment and asset management company that provides integrated financing solutions to small and medium enterprises (“SMEs”) in China, today announced its unaudited financial results for the quarter ended March 31, 2016.
Fiscal Third Quarter Financial and Operational Highlights
- Revenues were $2.5 million, compared to $4.5 million for the comparable period last year.
- Interest on short-term investments was $3.5 million,compared to $5.4 million for the comparable period last year.
- Net income attributable to Wins Finance was $0.2 million for the quarter ended March 31, 2016, compared to $8.5 million for the same period ended March 31, 2015.
“As we expected, the financial results of this quarter was impacted by our current exposure to the financial guarantee business in China and will continue to be impacted by such exposure in the coming quarters. One of our clients defaulted the payment of a $4.7 million loan, due to slow down of the Chinese economy and the cash flow difficulties for Chinese Small and Medium Enterprise (SME). We made a provision of $3.2 million for the potential loss,” said Renhui Mu, Co-CEO and COO of Wins Finance. “In response to the challenges we are encountering in our guarantee business, we are taking aggressive measures to control the exposure to current economic situation.”
“We remain optimistic in our long-term outlook. We are focusing our attention on development of our leasing business in the medical equipment and new energy sectors, both of which offer significant opportunities for investment. We expect these two sectors to continue to grow despite the economic slowdown and other macroeconomic factors. We also expect our pipeline of leasing opportunities to increase during in the first half year, with associated revenues to begin in the second half of 2016,” added by Mr. Mu.
Quarter Ended March 31, 2016 Results
Revenue
Wins Finance’s revenue for the quarter ended March 31, 2016 was $2.5 million, which consists of $1.5 million of commissions and fees generated from its financial guarantee services, and $1.0 million of direct financing lease interest income.
Commissions and fees on financial guarantee services generated from financial guarantee services the Company provides to customers decreased by $0.2 million, or 8.1%, to $1.5 million for the quarter ended March 31, 2016, compared to $1.7 million for the quarter ended March 31, 2015. The decrease was primarily attributable to the expiration of Wins Finance’s two largest contracts in March 2015. The two largest customers accounted for $0.61 million of revenue, or 37% of the total commissions and fees on financial guarantee services for the three months ended March 31, 2015. After the contracts for these two customers expired, Wins Finance was no longer able to provide guarantees for loans exceeding 10% of its net assets for any single customer in order to comply with the requirements of Interim Measures for Guarantee Business of the PRC. Provision on financial guarantee services was $3.1 million for the quarter ended March 31, 2016, an increase of $4.0 million from a reversal of $0.9 million for the quarter ended March 31, 2015. The increase was primarily due to a provision loss of $3.2 million due to a loan in default totaling $4.7 million (RMB30 million), with $0.9 million being written-off due to management’s assessment.
Direct financing lease interest income generated from payments under direct financing leases with customers decreased by $0.2 million, or 19.4%, to $1 million for the quarter ended March 31, 2016, compared to $1.2 million for the quarter ended March 31, 2015. Provision for lease payment receivable decreased by $0.2 million to $0.1 million for the quarter ended March 31, 2015, from $0.3 million for the quarter ended March 31, 2015. The decrease was primarily attributable to the expired direct financing leases contracts were not fully replaced with new contracts.
Financial advisory and lease agency income decreased to nil for the quarter ended March 31, 2016, compared to $1.7 million for the quarter ended March 31, 2015. The decrease was primarily attributable to there being no new advisory and lease agency contracts in this quarter.
Interest on short-term investment
Interest on short-term investments decreased by $1.9 million to $3.5 million for the quarter ended March 31, 2016, compared to $5.4 million for the same period ended March 31, 2015. The decrease was primarily due to a decrease in the rate of return caused by decreased return in the local capital markets, partially offset by an increase in the average balances of the short-term investments.
Non-interest expenses
Non-interest expenses increased by $1.8 million, or 248.1%, to $2.5 million for the quarter ended March 31, 2016, compared to $0.7 million for the same period ended March 31, 2015. The increase was primarily attributable to an increase of $1.2 million in share-based compensation to the company’s directors and executive officers commencing on December 16, 2015 and increases in salaries, legal fees, auditing fees and consulting fees for investor relations in connection with being a public company.
Income taxes
Income tax expense decreased by $1.5 million, or 137.3%, to $0.4 million for the three months ended March 31, 2016, compared to $1.1 million for the three months ended March 31, 2015. The decrease was primarily attributable to a decrease in taxable income excluding interest on short-term investment, which is exempt from taxation.
Net income
Net income decreased by $8.3 million, or 97.3%, to $0.2 million for the quarter ended March 31, 2016, compared to $8.5 million for the same period ended March 31, 2015.
Other Significant Events
On March 21, 2016, JinzhongBank Co., Ltd. withdrew $0.9 million (RMB 6 million) for interest and penalties from the Company’s deposit account for the default payment of a loan of $4.7 million (RMB 30 million) borrowed by Jinzhong Houfeng Trading Co., Ltd., one of the Company’s clients in its guarantee business. The Company evaluated the potential default losses based on Jinzhong Houfeng Trading Co., Ltd.’s financial position and counter-guarantee collateral and accrued about $3.2 million as provision of guarantee losses.
About Wins Finance
Wins Finance is a diversified investment and asset management company headquartered in New York and listed on NASDAQ. The company is focused on identifying value accretive investment opportunities and assets in China and the United States that can be enhanced through the strategic involvement of Wins’ established management team and its familiarity with the Chinese investment community to help generate long-term value for shareholders. Wins Finance is well positioned to leverage its expertise and existing operations in China to build a comprehensive platform for the provision of lending and other financing solutions to the under-served small and medium enterprise segment. For more information, please visit www.winsholdings.com.
Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management’s current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties. Further information regarding these and other risks are described in the Company’s Current Report on Form 8-K dated October 26, 2015 and in the Company’s other filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
Company Contacts:
Richard Xu, President
Wins Finance Holdings Inc.
590 Madison Avenue, 21st FL
New York, NY 10022
Tel: 646-480-9882
Email: richard.xu@winsholdings.com
|
WINS FINANCE HOLDINGS INC. |
||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
|
As of |
||||
|
March 31, 2016 |
June 30, 2015 |
|||
|
US$ |
US$ |
|||
|
ASSETS |
||||
|
Cash |
34,074,730 |
40,019,968 |
||
|
Restricted cash |
27,237,745 |
28,494,217 |
||
|
Short-term investment |
185,049,556 |
184,160,555 |
||
|
Guarantee paid on behalf of guarantee service customers |
509,668 |
633,313 |
||
|
Interest receivable |
3,277,783 |
247,912 |
||
|
Net investment in direct financing leases |
50,490,303 |
25,829,055 |
||
|
Deferred tax assets, net |
901,509 |
414,479 |
||
|
Property and equipment, net |
1,210,066 |
915,416 |
||
|
Other assets |
436,483 |
474,412 |
||
|
TOTAL ASSETS |
303,187,843 |
281,189,327 |
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||
|
LIABILITIES |
||||
|
Bank loan for capital lease business |
14,733,176 |
511,825 |
||
|
Interest payable |
122,892 |
49,719 |
||
|
Income tax payable |
3,371,023 |
3,067,757 |
||
|
Unearned income from financial guarantee services |
1,351,870 |
3,659,062 |
||
|
Other liabilities |
7,356,981 |
4,123,385 |
||
|
Convertible debt |
8,500,000 |
– |
||
|
Allowance on guarantee |
3,511,284 |
1,261,868 |
||
|
Deferred income tax liability |
– |
1,123,742 |
||
|
Total Liabilities |
38,947,226 |
13,797,358 |
||
|
SHAREHOLDERS’ EQUITY |
||||
|
Common stock (par value $0.0001 per share, 100,000,000 shares |
2,153 |
2,153 |
||
|
Additional paid-in capital |
230,857,721 |
229,493,290 |
||
|
Statutory reserve |
2,364,245 |
325 |
||
|
Retained Earnings |
39,238,961 |
33,490,567 |
||
|
Accumulated other comprehensive income/(loss) |
(8,222,463) |
4,405,634 |
||
|
Total Equity |
264,240,617 |
267,391,969 |
||
|
TOTAL LIABILITIES AND SHAREHOLDERS‘ EQUITY |
303,187,843 |
281,189,327 |
||
|
WINS FINANCE HOLDINGS INC. |
||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) |
||||||||||
|
Three months ended |
Nine months ended |
|||||||||
|
March 31, |
December 31, |
March 31, |
March 31, |
March 31, |
||||||
|
US$ |
US$ |
US$ |
US$ |
US$ |
||||||
|
Guarantee service income |
||||||||||
|
Commissions and fees on financial guarantee services |
1,527,729 |
1,664,116 |
1,661,669 |
4,943,424 |
6,089,105 |
|||||
|
(Provision)/reversal of provision on financial guarantee services |
(3,129,142) |
(74,014) |
919,687 |
(3,202,837) |
955,625 |
|||||
|
Commission and fees on guarantee services, net |
(1,601,413) |
1,590,102 |
2,581,356 |
1,740,587 |
7,044,730 |
|||||
|
Direct financing lease income |
||||||||||
|
Direct financing lease interest income |
952,796 |
497,613 |
1,182,720 |
1,924,161 |
2,352,215 |
|||||
|
Interest expense for direct financing lease |
(386,779) |
(19,590) |
(357,660) |
(411,719) |
(636,451) |
|||||
|
Provision for lease payment receivable |
(118,071) |
(180,275) |
(282,470) |
(302,483) |
(411,598) |
|||||
|
Net direct financing lease interest income after provision for receivables |
447,946 |
297,748 |
542,590 |
1,209,959 |
1,304,166 |
|||||
|
Financial advisory and lease agency income |
– |
405,603 |
1,704,131 |
405,603 |
3,253,521 |
|||||
|
Net revenue |
(1,153,467) |
2,293,453 |
4,828,077 |
3,356,149 |
11,602,417 |
|||||
|
Non-interest income |
||||||||||
|
Interest on short-term investment |
3,465,229 |
3,522,153 |
5,405,584 |
10,574,522 |
13,333,364 |
|||||
|
Total non-interest income |
3,465,229 |
3,522,153 |
5,405,584 |
10,574,522 |
13,333,364 |
|||||
|
Non-interest expense |
||||||||||
|
Business taxes and surcharge |
(6,091) |
(45,876) |
(38,838) |
(178,928) |
(220,185) |
|||||
|
Salaries and employees surcharge |
(462,169) |
(363,376) |
(108,710) |
(1,006,864) |
(297,078) |
|||||
|
Rental expenses |
(67,083) |
(68,048) |
(32,140) |
(199,566) |
(114,377) |
|||||
|
Other operating expenses |
(1,948,527) |
(1,573,216) |
(533,764) |
(4,092,247) |
(1,280,590) |
|||||
|
Total non-interest expense |
(2,483,870) |
(2,050,516) |
(713,452) |
(5,477,605) |
(1,912,230) |
|||||
|
Income before taxes |
(172,108) |
3,765,090 |
9,520,209 |
8,453,066 |
23,023,551 |
|||||
|
Income tax expense |
(541,964) |
(267,364) |
(1,574,502) |
(1,920,472) |
(4,089,065) |
|||||
|
Deferred tax (expense)/benefit |
938,406 |
(85,253) |
510,237 |
1,579,720 |
1,584,523 |
|||||
|
NET INCOME |
224,334 |
3,412,473 |
8,455,944 |
8,112,314 |
20,519,009 |
|||||
|
Other comprehensive income |
||||||||||
|
Foreign currency translation |
1,612,392 |
(4,663,119) |
851,753 |
(12,628,097) |
1,305,112 |
|||||
|
COMPREHENSIVE INCOME |
1,836,726 |
(1,250,646) |
9,307,697 |
(4,515,783) |
21,824,121 |
|||||
|
Weighted-average ordinary shares outstanding – basic and diluted |
21,526,747 |
21,526,747 |
21,526,747 |
21,526,747 |
21,526,747 |
|||||
|
Earnings per share – Basic and diluted |
0.01 |
0.16 |
0.39 |
0.38 |
0.95 |
|||||
NON-GAAP FINANCIAL MEASURES
The non-GAAP financial measures below are provided to enhance investors’ overall understanding of the company current financial performance and prospects for the future. A limitation of using non-GAAP other operating expenses and net income, excluding share-based compensation expenses, is that these items have been and may continue to be a significant expense in the Company’s business for the foreseeable future. In order to mitigate these limitations the Company has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.
|
WINS FINANCE HOLDINGS INC. |
|||||||||||||
|
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS |
|||||||||||||
|
Three months ended |
Nine months ended |
||||||||||||
|
March 31, |
December 31, |
March 31, |
March 31, |
March 31, |
|||||||||
|
US$ |
US$ |
US$ |
US$ |
US$ |
|||||||||
|
Other operating expenses |
(1,948,527) |
(1,573,216) |
(533,764) |
(4,092,247) |
(1,280,590) |
||||||||
|
Adjustment (a) |
1,160,489 |
204,042 |
– |
1,364,531 |
– |
||||||||
|
Non-GAAP Other |
(788,038) |
(1,369,174) |
(533,764) |
(2,727,716) |
(1,280,590) |
||||||||
|
Net income under GAAP |
224,334 |
3,412,473 |
8,455,944 |
8,112,314 |
20,519,009 |
||||||||
|
Adjustment (a) |
1,160,489 |
204,042 |
– |
1,364,531 |
– |
||||||||
|
Non-GAAP net income |
1,384,823 |
3,616,515 |
8,455,944 |
9,476,845 |
20,519,009 |
||||||||
|
Basic and diluted shares |
21,526,747 |
21,526,747 |
21,526,747 |
21,526,747 |
21,526,747 |
||||||||
|
Non-GAAP earnings per |
0.06 |
0.17 |
0.39 |
0.44 |
0.95 |
||||||||
|
(a) Adjustment to exclude the share-based compensation expenses for each period |
|||||||||||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wins-finance-holdings-inc-reports-unaudited-fiscal-third-quarter-2016-financial-results-300276106.html
SOURCE Wins Finance Holdings Inc.
Thu Mar 10th, 2016 | Wins Finance Holdings Inc. Reports Unaudited Fiscal Second Quarter 2016 Financial Results
NEW YORK, March 10, 2016 /PRNewswire/ — Wins Finance Holdings Inc. (“Wins Finance” or the “Company”) (NASDAQ: WINS), a diversified investment and asset management company that provides integrated financing solutions to small and medium enterprises (“SMEs”) in China, today announced its unaudited financial results for the quarter ended December 31, 2015.
Fiscal Second Quarter Financial and Operational Highlights
- Revenues were $2.3 million, compared to $3.3 million for the comparable period last year
- Interest on short-term investments was $3.5 million, compared to $3.9 million for the comparable period last year
- Net income attributable to Wins Finance was $3.4 million for the quarter ended December 31, 2015, compared to $5.9 million for the same period ended December 31, 2014.
- Completed business combination with Wins Finance Group Limited.
- Strengthened executive management team of Wins Finance Group Limited with addition of Jianming Hao, Co-CEO, Amy He, CFO and Richard Xu, President
- Executed an aggregate of $7.7 million in direct leasing contracts for tele-medical equipment with seven hospitals
- Subsequent to the end of the quarter, received determination for continued listing on NASDAQ
“2015 was a transformative year for Wins Finance highlighted by the business combination with Wins Finance Group Limited and our continued listing on NASDAQ,” said Jianming Hao, Chairman and Co-CEO. “The business combination was the first step in our long-term growth strategy focused on value accretive investment opportunities and assets that can be enhanced through the strategic involvement of Wins’ established management team and its familiarity with the Chinese investment community to generate long-term value for shareholders.”
“We remain optimistic in our long-term outlook and our ability to identify value,” Mr. Hao added. “In the near-term however, we expect our quarterly results to be impacted by our current exposure to the financial guarantee business in China. Demand for loans from Chinese small and medium enterprises (SMEs) has declined significantly. In addition, during the past twelve months, the RMB has depreciated by more than 5% and interest rates have been cut by 1.25%.”
“In response to the challenges we are encountering in our guarantee business, we are taking aggressive measures to diversify our operations to augment our near-term strategy,” Mr. Hao continued. “Entering 2016, the company is accelerating its search for value accretive investment opportunities and assets in the United States as well as China, with the goal to balance our geographic footprint and risk over time.”
Renhui Mu, Co-CEO and COO of Wins Finance, added, “In the past three months, we have closed more than $33 million of financial leases and expect to ramp up this business in 2016. We plan to focus our attention on the medical equipment and new energy sectors, both of which offer significant opportunities for investment. As a result of the aging population and serious geographical imbalance in distribution of medical resources in China, demand for health care is growing. The new energy vehicle industry is expanding globally, and is an important component of global initiatives to reduce hydrocarbon consumption and carbon dioxide emissions. We expect these two sectors to continue to grow despite the economic slowdown and other macroeconomic factors. We expect our pipeline of leasing opportunities to increase during the first half of 2016, with associated revenues to begin in the second half of 2016 and beyond.”
Quarter Ended December 31, 2015 Results
Net Revenue
Wins Finance’s net revenue consists of commissions and fees generated from its financial guarantee services, net direct financing lease interest income, and advisory fees generated from its financial advisory and lease agency businesses. Net commissions and fees on financial guarantee services, net direct financing lease interest income, and financial advisory and lease agency income for the three months ended December 31, 2015 were $1.6 million, $0.3 million and 0.4million, respectively, accounting for 69.3%, 13.0% and 17.7%, respectively, of Wins Finance’s net revenue.
Net Revenues for the quarter ended December 31, 2015 were $2.3 million, a decrease of $1.0 million, or 31.4%, from $3.3 million for the same period ended December 31, 2014. The decrease was primarily attributable to (a) a decrease of $0.7 million in net commissions and fees on financial guarantee services and (b) a decrease of $0.4 million in financial advisory and lease agency income. Wins Finance’s two largest customers accounted for approximately 50.8% of the total outstanding balances of loans guaranteed by Wins Finance as of December 31, 2014. These two largest customers stand for $ $1.5 million revenue for the three months ended December 31, 2014. After the contracts of these two customers expired in March, 2015, Wins Finance stopped providing guarantees for loans exceeding 10% of its net assets for any single customer in order to comply with the requirements of Interim Measures for Guarantee Business of the PRC. The expired guarantee contracts were not fully replaced with new contracts. The outstanding balance of loans guaranteed by the Company decreased to $126.0 million as of December 31, 2015, from $179.4 million as of December 31, 2014 which resulted in the decrease of net commission and financial advisory income in connection with providing financial solutions to these guarantee customers.
Interest on short-term investments
Interest on short-term investments decreased by $0.4 million to $3.5 million for the quarter ended December 31, 2015, compared to $3.9 million same period ended December 31, 2014. The decrease was primarily due to a decrease in the rate of return, partially offset by an increase in the average balances of the short-term investments.
Non-interest expenses
Non-interest expenses increased by $1.4 million, or 208.1%, to $2.1 million for the quarter ended December 31, 2015, compared to $0.7 million for the same period ended December 31, 2014. The increase was primarily attributable to costs associated with the business combination and increases in salaries, legal fees, auditing fees and consulting fees for investor relations in connection with being a public company.
Income taxes
Income tax expense decreased by $0.4 million, or 51.5%, to $0.4 million for the three months ended December 31, 2015, compared to $0.7 million for the three months ended December 31, 2014. The decrease was primarily attributable to a decrease in taxable income excluding interest on short-term investment, which is exempt from taxation.
Net income
Net income decreased by $2.5 million or 42.1% to $3.4 million for the quarter ended December 31, 2015, compared to $5.9 million for the same period ended December 31, 2014.
Cash and Cash Equivalents, Term Deposits and Restricted Cash
Cash and cash equivalents, term deposits and restricted cash together amounted to $70.2 million as of December 31, 2015.
Other Significant Events
Convertible Notes sold to CEO
On January 4, 2016, the Company announced the sale of $8.5 million of convertible notes to Mr. Jianming Hao, its Chairman and Co-Chief Executive Officer. Mr. Hao is the sole investor in the financing round. The Company intends to use the proceeds to accelerate the growth and expansion of its business. The convertible notes bear interest at 4% per annum and mature one year from the date of issuance. The conversion price of the notes is $12 per share.
Financial leasing in New Energy Vehicle Sector
On January 13, 2016, the Company announced that it entered into a purchase-and-lease-back agreement valued at RMB100 million (US$15.4 million) with Liaoning Sg Automotive Group Co., Ltd. (“SG Automotive Group”), a leading Shanghai Stock Exchange-listed automobile manufacturer that is focused on developing new energy vehicle technology.
Purchase-and-Lease for Medical Examination Equipment
On February 1, 2016, the Company announced that it entered into a purchase-and-lease-back agreement valued at RMB70 million (US$10.6 million) with Panjin Central hospital, a leading Third-Level Grade-A hospital in Liaoning Province, China.
About Wins Finance
Wins Finance is a diversified investment and asset management company headquartered in New York and listed on NASDAQ. The company is focused on identifying value accretive investment opportunities and assets in China and the United States that can be enhanced through the strategic involvement of Wins’ established management team and its familiarity with the Chinese investment community to help generate long-term value for shareholders. Wins Finance is well positioned to leverage its expertise and existing operations in China to build a comprehensive platform for the provision of lending and other financing solutions to the under-served small and medium enterprise segment. In addition, Wins Finance is strategically increasing its focus on investment opportunities in the United States, with the goal of increasing its global footprint and diversifying its operations. For more information, please visit www.winsholdings.com.
Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management’s current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties. Further information regarding these and other risks are described in the Company’s Current Report on Form 8-K dated October 26, 2015 and in the Company’s other filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
Company Contacts:
Richard Xu, President
Wins Finance Holdings Inc.
590 Madison Avenue, 21st FL
New York, NY 10022
Tel: 646-480-9882
Email: rxu@winsfinance.com
|
WINS FINANCE HOLDINGS INC. |
||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
|
As of |
||||
|
December 31, 2015 |
June 30, 2015 |
|||
|
US$ |
US$ |
|||
|
ASSETS |
||||
|
Cash |
40,828,055 |
40,019,968 |
||
|
Restricted cash |
29,339,887 |
28,494,217 |
||
|
Short-term investment |
185,621,640 |
184,160,555 |
||
|
Guarantee paid on behalf of guarantee service customers |
992,216 |
633,313 |
||
|
Interest receivable |
305,989 |
247,912 |
||
|
Net investment in direct financing leases |
40,526,820 |
25,829,055 |
||
|
Deferred tax assets, net |
435,398 |
414,479 |
||
|
Property and equipment, net |
1,315,676 |
915,416 |
||
|
Other assets |
166,013 |
474,412 |
||
|
TOTAL ASSETS |
299,531,694 |
281,189,327 |
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||
|
LIABILITIES |
||||
|
Bank loan for capital lease business |
15,827,167 |
511,825 |
||
|
Interest payable |
17,495 |
49,719 |
||
|
Income tax payable |
3,284,100 |
3,067,757 |
||
|
Unearned income from financial guarantee services |
2,317,377 |
3,659,062 |
||
|
Other liabilities |
6,596,936 |
4,123,385 |
||
|
Convertible debt |
8,500,000 |
– |
||
|
Allowance on guarantee |
1,259,994 |
1,261,868 |
||
|
Deferred income tax liability |
485,224 |
1,123,742 |
||
|
Total Liabilities |
38,288,293 |
13,797,358 |
||
|
SHAREHOLDERS’ EQUITY |
||||
|
Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 21,526,747 and 21,526,747 shares issued and outstanding at December31, 2015 and June 30, 2015, respectively) |
2,153 |
2,153 |
||
|
Additional paid-in capital |
229,697,231 |
229,493,290 |
||
|
Statutory reserve |
2,364,245 |
325 |
||
|
Retained Earnings |
39,014,627 |
33,490,567 |
||
|
Accumulated other comprehensive income/(loss) |
(9,834,855) |
4,405,634 |
||
|
Total Equity |
261,243,401 |
267,391,969 |
||
|
TOTAL LIABILITIES AND SHAREHOLDERS‘ EQUITY |
299,531,694 |
281,189,327 |
||
|
WINS FINANCE HOLDINGS INC. |
||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND |
||||||||||
|
COMPREHENSIVE INCOME (LOSS) |
||||||||||
|
Three months ended |
Six months ended |
|||||||||
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
||||||
|
US$ |
US$ |
US$ |
US$ |
US$ |
||||||
|
Guarantee service income |
||||||||||
|
Commissions and fees on financial guarantee services |
1,664,116 |
1,751,579 |
2,263,067 |
3,415,695 |
4,427,436 |
|||||
|
(Provision)/reversal of provision on financial guarantee services |
(74,014) |
319 |
20,015 |
(73,695) |
35,938 |
|||||
|
Commission and fees on guarantee |
1,590,102 |
1,751,898 |
2,283,082 |
3,342,000 |
4,463,374 |
|||||
|
Direct financing lease income |
||||||||||
|
Direct financing lease interest income |
497,613 |
473,752 |
604,233 |
971,365 |
1,169,495 |
|||||
|
Interest expense for direct financing lease |
(19,590) |
(5,350) |
(232,233) |
(24,940) |
(278,791) |
|||||
|
Provision for lease payment receivable |
(180,275) |
(4,137) |
(121,440) |
(184,412) |
(129,128) |
|||||
|
Net direct financing lease interest income after provision for receivables |
297,748 |
464,265 |
250,560 |
762,013 |
761,576 |
|||||
|
Financial advisory and lease agency income |
405,603 |
– |
806,925 |
405,603 |
1,549,390 |
|||||
|
Net revenue |
2,293,453 |
2,216,163 |
3,340,567 |
4,509,616 |
6,774,340 |
|||||
|
Non-interest income |
||||||||||
|
Interest on short-term investment |
3,522,153 |
3,587,140 |
3,945,773 |
7,109,293 |
7,927,780 |
|||||
|
Total non-interest income |
3,522,153 |
3,587,140 |
3,945,773 |
7,109,293 |
7,927,780 |
|||||
|
Non-interest expense |
||||||||||
|
Business taxes and surcharge |
(45,876) |
(126,961) |
(101,953) |
(172,837) |
(181,347) |
|||||
|
Salaries and employees surcharge |
(363,376) |
(181,319) |
(113,633) |
(544,695) |
(188,368) |
|||||
|
Rental expenses |
(68,048) |
(64,435) |
(40,747) |
(132,483) |
(82,237) |
|||||
|
Other operating expenses |
(1,573,216) |
(570,504) |
(409,304) |
(2,143,720) |
(746,826) |
|||||
|
Total non-interest expense |
(2,050,516) |
(943,219) |
(665,637) |
(2,993,735) |
(1,198,778) |
|||||
|
Income before taxes |
3,765,090 |
4,860,084 |
6,620,703 |
8,625,174 |
13,503,342 |
|||||
|
Income tax expense |
(267,364) |
(1,111,144) |
(1,185,904) |
(1,378,508) |
(2,514,563) |
|||||
|
Deferred tax expense/(benefit) |
(85,253) |
726,567 |
459,163 |
641,314 |
1,074,286 |
|||||
|
NET INCOME |
3,412,473 |
4,475,507 |
5,893,962 |
7,887,980 |
12,063,065 |
|||||
|
Other comprehensive income |
||||||||||
|
Foreign currency translation adjustment |
(4,663,119) |
(9,577,369) |
129,121 |
(14,240,489) |
453,359 |
|||||
|
COMPREHENSIVE INCOME (LOSS) |
(1,250,646) |
(5,101,862) |
6,023,083 |
(6,352,509) |
12,516,424 |
|||||
|
Weighted-average ordinary shares outstanding – basic and diluted |
21,526,747 |
21,526,747 |
21,526,747 |
21,526,747 |
21,526,747 |
|||||
|
Earnings per share – Basic and diluted |
0.16 |
0.21 |
0.27 |
0.37 |
0.56 |
|||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wins-finance-holdings-inc-reports-unaudited-fiscal-second-quarter-2016-financial-results-300233955.html
SOURCE Wins Finance Holdings Inc.
Mon Feb 22nd, 2016 | Wins Finance Announces Receipt of Positive NASDAQ Listing Determination; Ordinary Shares to Continue to be Listed on NASDAQ
NEW YORK, Feb. 22, 2016 /PRNewswire/ — Wins Finance Holdings Inc. (WINS) (the “Company”) today announced that on February 18, 2016, it was advised that the Nasdaq Listing Qualifications Panel (the “Panel”) has determined that the Company’s ordinary shares will remain listed on The Nasdaq Stock Market. The panel made the decision following the Company’s hearing on February 11, 2016.
As previously disclosed, the Nasdaq Listing Qualifications Staff (the “Staff”) had determined that the Company did not evidence compliance with the 300 round lot shareholder requirement required for initial listing on The Nasdaq Capital Market following completion of the Company’s business combination in late October 2015. As a result, the Company’s ordinary shares was subject to delisting. In response, the Company requested a hearing before the Panel to appeal the Staff’s determination. As a result of the Panel’s determination, the Company’s ordinary shares will remain listed on The Nasdaq Capital Market.
About Wins Finance
Wins Finance Holdings Inc. (NASDAQ: WINS), is a diversified investment and asset management company headquartered in New York and listed on NASDAQ. The company is focused on identifying value accretive investment opportunities and assets in China and the United States that can be enhanced through the strategic involvement of Wins’ established management team and its familiarity with the Chinese investment community to help generate long-term value for shareholders. For more information, please visit www.winsholdings.com.
Forward-looking Statements
This news release includes forward-looking statements. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that the Company expects or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform to the Company’s expectations and predictions is subject to a number of risks and uncertainties, including the risk that the Company’s efforts to expand into the medical industry leasing sector will not be successful, and the risks described in Wins Finance’s Quarterly Report on Form 10-Q filed on November 16, 2015 and in its other filings with the Securities and Exchange Commission.
Company Contacts:
Richard Xu, President
Wins Finance Holdings Inc.
7 Times Square, 37th FL
New York, NY 10036
Tel: 646-480-9882
Email: Richard.xu@winsholdings.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wins-finance-announces-receipt-of-positive-nasdaq-listing-determination-ordinary-shares-to-continue-to-be-listed-on-nasdaq-300223545.html
SOURCE Wins Finance Holdings Inc.
