Roan Holdings Group Co., Ltd. Reports First Half 2021 Financial Results

BEIJING and HANGZHOU, China, Dec. 31, 2021 /PRNewswire/ — Roan Holdings Group Co., Ltd. ("Roan" or the "Company") (OTC Pink Sheets: RAHGF and RONWF), a provider of diversified solutions in financial, insurance and healthcare related products and management services, today reported its financial results for the six months ended June 30, 2021.

First Half 2021 Highlights:

  • Net revenue of services decreased by 49% year-on-year from $0.65 million to $0.33 million
  • Total interest and fee income increased by 11% year-on-year from $1.13 million to $1.27 million during the first half of 2021
  • Total cash, equivalents and restricted cash grew from $14.38 million as at June 30, 2020 to $33.19 million as at June 30, 2021
  • Working capital increased by $0.56 million to $49.23 million as at June 30, 2021, compared to $48.67 million as at December 31, 2020

For the Six Months ended June 30

($ millions, except per share data, differences
due to rounding)

2021

2020


Change

Net revenues of services

$0.33

$0.65

(49%)

 Total interest and fees income

$1.27

$1.13

11%

Operating income

$1.78

$2.01

(11%)

Net loss attributable to shareholders

($0.53)

($0.25)

(112%)

Net loss per share – Basic and Diluted

($0.02)

($0.01)

(100%)

Mr. Zhiyong Tang, Chief Executive Officer of Roan, commented, "The first half of fiscal 2021 results affirm the unquestionable value proposition we deliver and the success of our pipelined business strategies. Despite the Covid-19 pandemic having a lasting impact on our operational results, which is reflected in our net revenues of services, which were down by 49% year-on-year to $0.33 million, we managed to expand the total interest and fees income by 11% from $1.13 million to $1.27 million during the first half of 2021. In order to hedge against the unpredictable and continuous impact of the Covid-19 pandemic on our business operations, we continued to focus on upgrading our ability to serve operation of diverse industries via our cooperation resources and marketing channel advantages that have been accumulated over the years. We will actively promote technology empowerment and cross-platform cooperation strategies, which are core to the development of our cultural tourism and big health ecosystem-related business. Such initiatives will lay solid foundation for our financial performance next year and have already helped us contain net loss at $0.53 million during the first half of 2021."

"We entered into several joint venture partnerships with cultural tourism, health technology, new energy and multimedia technology partners during the past several months in our commitment to engage in the upside trend of global health and cultural tourism consumption, and new energy storage industries and to further improve our product and service roadmap for individual and household consumers, as well as for emerging industries alike."

"Through strategic restructuring, core technology and product acquisition, and corporate team consolidation and optimization, we managed to increase our business development momentum and commercialization efficiency. We hired senior advisors with extensive experience from top tier institutions to guide and streamline our current and future business trajectory."

"Moving into the fiscal year 2022, we remain committed to providing industrial operation services by leveraging our cooperation channels and marketing resources. We are confident that by securing core technologies that help improve household consumption quality, providing professional services and innovative products, our strategies will further enable our growth, thus providing long-term values to our shareholders," concluded Mr. Tang.

First Half 2021 Financial Results

Revenues

The following table presents our consolidated revenues for our main services for the six months ended June 30, 2021 and 2020, respectively:

($ millions, differences due to rounding) 

For the Six
Months ended
June 30,

Variance

2021 (Unaudited)

2020 (Unaudited)

Amount

%

Consulting services relating to debt collection

$

0.33

$

0.63

$

(0.30)

(48)%

Management and assessment service

0.02

(0.02)

(100)%

Healthcare service packages

0.05

(0.05)

(100)%

Revenues from services

$

0.33

$

0.70

$

(0.37)

(53)%

Management and assessment services

Revenues from management and assessment services was $nil and $0.02 million for the six months ended June 30, 2021 and 2020, respectively. The primary reason of the decrease was that revenue from management and assessment services recorded during the six months ended June 30, 2020 was from the contracts obtained in 2019. Due to the change of our business focus, we did not engage in management and assessment services during the six months ended June 30, 2021 and 2020.

Consulting services relating to debt collection

Revenue from consulting services relating to debt collection was $0.33 million for the six months ended June 30, 2021, a decrease of $0.30 million, or 48%, as compared to $0.63 million for the same period of last fiscal year, which was mainly due to the negative impact of the COVID pandemic.

Revenue from healthcare service packages

Revenue from the health care service packages was $nil and $0.05 million for the six months ended June 30, 2021 and 2020, respectively.

Commission and fees on financial guarantee services

Commission and fees on financial guarantee services was $0.19 million and $0.18 million for the six months ended June 30, 2021 and 2020, respectively. There was a minor change for business development.

Provision for financial guarantee services

Provisions for financial guarantee services was $0.02 million for the six months ended June 30, 2021, as compared to recovery of provision for financial guarantee services of $0.04 million for the same period of last fiscal year.

Interest and fee income

Interest and fee income was $1.27 million, an increase of $0.14 million, or 11% for the six months ended June 30, 2021 as compared to $1.13 million for the same period of 2020. The increase was mainly due to an increase of $0.06 million in interest income from loans due from third parties and an increase of $0.08 million in interest income on deposits with banks.

Operating expenses

Operating expenses decreased by $0.33 million, or 14%, to $2.11 million for the six months ended June 30, 2021, as compared to $2.44 million for the same period of last fiscal year. 

Income/loss from operations 

Loss from operations was $0.47 million for the six months ended June 30, 2021, an increase of $0.05 million compared to $0.42 million for the same period of fiscal year 2020.

Net loss

As a result of the above mentioned, we had a net loss of $0.53 million for the six months ended June 30, 2021, as compared to $0.25 million for the same period of last fiscal year.

Cash and cash equivalents

Cash and cash equivalents were $2.26 million as at June 30, 2021, reflecting a decrease of $2.67 million from $4.93 million as at December 31, 2020, primarily because of the repayment of bank loan of $2.94 million during the six months ended June 30, 2021.

Restricted cash in banks and other financial institutions increase by $5.06 million, from $25.87 million as of December 31, 2020 to $30.93 million as of June 30, 2021.

Working capital

Our working capital was $49.23 million as of June 30, 2021, an increase of $0.56 million, as compared to $48.67 million as of December 31, 2020, mainly due to a decrease in current liabilities during the six months ended June 30, 2021.

Recent developments

On December 20, 2021, the Company announced the appointment of Ms. Guiling Sun and Mr. Xiaoliang Liang as members of the Board, effective immediately. Mr. Liang also serves as the chair of the Nominating/Corporate Governance Committee

On November 18, 2021, the Company announced that its subsidiary,  FINE C+ Interactive Technology (Hangzhou) Limited, has signed a cooperation agreement with Beijing Liuxinghuoyu Technology Co., Ltd., a subsidiary of Harvest Horn (Beijing) Marketing Co., Ltd., to set up an entertainment technology joint venture focusing on expanding its theme park business. On December 22, 2021, FINE C+ Entertainment Technology (Hangzhou) Limited was registered in Hangzhou.

On November 15, 2021, the Company announced that its subsidiary, Yifu Health Industry (Ningbo) Co., Ltd., has signed a cooperation agreement with Hangzhou Weiche Info Tech Co., Ltd., a national high-tech company focused on the travel services and parking payment realization services, in order to further the development of Roan’s growth strategies on its lifestyle consumer services business.

On October 18, 2021, the Company announced that it has signed a cooperation agreement with Flourishing Technology Inc. and media interactive technology experts to set up a joint venture, FINE C+ Interactive Technology (Hangzhou) Limited, to jointly develop cultural and tourism services, education development industry business and personal finance services.

On October 14, 2021, the Company announced that its subsidiary, Yifu Health Industry (Ningbo) Co., Ltd. has signed a cooperation agreement with Smart Cloud Technologies Holding (Beijing) Co., Ltd., a blockchain and AI healthcare data security solutions provider, and Shanghai Jingmu Information Technology Co. Ltd., a critical disease medical consultation firm, to set up a joint venture to provide online medical consultation and traditional Chinese targeting international  health markets.

On September 30, 2021, the Company announced that it has signed a cooperation agreement with Shenzhen Geile Information Technology Co., Ltd. ("Harvest", formerly called "Shenzhen Harvest Business Ltd., Co."), a leading consumer reward rights and interests system operator in China, to jointly set up a consumer payment technology joint venture that offers lifestyle consumer services including cross-platform clearing and settlement services for consumer reward rights and interests.

On August 31, 2021, the Company announced the appointment of Mr. Zhiyong Tang as Chief Executive Officer; Mr. Wenhao Wang as Chief Financial Officer; Mr. Yuebo Zhang as Executive President, taking charge of the Company’s consumer services and international business and Mr. Fengsong Wan as Senior Vice Presidents, responsible for Company’s healthcare business. Concurrent with Mr. Tang’s appointment, Mr. Junfeng Wang resigned his position as Chief Executive Officer.

On August 12, 2021, the Company announced the appointment of Mr. Junfeng Wang as Chairman of the Board. Mr. Wang is the Chief Executive Officer of the Company. Simultaneously with the appointment, Mr. Zhigang Liu resigned from his position as Chairman of the Board due to personal reasons.

On July 27, 2021, the Company announced that it has signed a cooperation agreement with a travel service provider in China, Beijing Auvgo International Travel Technology Co. Ltd., to form a joint venture, Zhejiang Yijia Travel Digital Technology Co. Ltd., to jointly develop business travel services.

About Roan Holdings Group Co., Ltd.

Founded in 2009, Roan Holdings Group Co., Ltd. (OTC Pink: RAHGF and RONWF) is a financial, insurance and healthcare related solutions company serving individuals and micro-, small- and medium-sized enterprises ("MSMEs") in China. Roan provides health management, assets management, and insurance, healthcare and consumer financing services to employees of large institutions. Roan has offices in Hangzhou and Beijing and subsidiaries in Hangzhou, Ningbo, Guangzhou, Shaoxing, Urumqi and Tianjin. For more information, please visit: www.roanholdingsgroup.com

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of 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 relate to, among others, the consummation of the proposed transaction, and can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Such statements are based upon management’s current expectations of the consummation of the proposed transaction, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Further information regarding these and other risks, uncertainties or factors are included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

IR Contact:

At the Company:
Katrina Wu
Email: xiaoqing.wu@roanholdingsgroup.com
Phone: +86-571-8662 1775

Investor Relations Firm:

Janice Wang
EverGreen Consulting Inc.
Email: IR@changqingconsulting.com
Phone: +1 571-464-9470 (from U.S.)
+86 13811768559 (from China)

 

 

ROAN HOLDINGS GROUP CO., LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. dollar, except for the number of shares)

June 30,
2021

December 31,
2020

(Unaudited)

ASSETS

Cash and cash equivalents

$

2,258,679

$

4,932,048

Restricted cash

30,933,928

25,875,556

Accounts receivables, net

5,507,862

6,939,352

Inventories

32,678

30,348

Loan receivables due from third parties

21,092,419

17,670,652

Due from related parties

105,183

94,023

Other current assets

68,651

3,502,550

Other receivables

548,574

3,545,753

    Total current assets

60,547,974

62,590,282

Pledged deposits

380,816

462,835

Property and equipment, net

40,949

65,073

Intangible assets, net

3,508,533

3,977,867

Right of use assets

104,145

346,017

Goodwill

261,087

261,087

    Total non-current assets

4,295,530

5,112,879

    Total Assets

$

64,843,504

$

67,703,161

LIABILITIES

Customer pledged deposits

$

7,744

$

7,664

Unearned income

111,613

130,772

Reserve for financial guarantee losses

601,121

579,364

Dividends payable

480,000

480,000

Tax payable

2,072,195

1,767,214

Due to related parties

282,624

281,369

Warrant liabilities

41,707

13,977

Operating lease liabilities, current portion

126,861

191,643

Accrued expenses and other liabilities

1,707,952

1,642,060

Bank loans

5,883,902

8,826,054

Total current liabilities

11,315,719

13,920,117

Operating lease liabilities, noncurrent portion

102,767

Deferred tax liabilities

571,960

793,848

Total non-current Liabilities

571,960

896,615

Total Liabilities

$

11,887,679

$

14,816,732

Commitments and Contingencies

Shareholders’ Equity

Ordinary Share, no par value, unlimited shares authorized; 25,287,851
  and 25,287,851 shares issued and outstanding as of June 30, 2021 and
  December 31, 2020, respectively

Class A convertible preferred shares, no par value, unlimited shares
  authorized; 715,000 and  715,000 shares issued and outstanding as of
  June 30, 2021 and December 31, 2020, respectively

$

11,368,527

$

11,025,327

Class B convertible preferred shares, no par value, unlimited shares
  authorized; 291,795,150 and 291,795,150 shares issued and
  outstanding as of June 30, 2021 and December 31, 2020, respectively

31,087,732

31,087,732

Additional paid-in capital

3,312,189

3,312,189

Statutory reserve

202,592

202,592

Accumulated deficit

(15,200,915)

(14,330,288)

Accumulated other comprehensive income

2,613,680

2,310,369

Total Roan Holdings Group Co., Ltd.’s Shareholders’ Equity

$

33,383,805

$

33,607,921

Noncontrolling interests

19,572,020

19,278,508

Total Equity

52,955,825

52,886,429

Total Liabilities and Equity

$

64,843,504

$

67,703,161

 

 

ROAN HOLDINGS GROUP CO., LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Expressed in U.S. dollar, except for the number of shares)

For the Six Months
Ended
June 30,

2021

2020

(Unaudited)

(Unaudited)

Revenue from services

$

330,788

$

649,587

Revenue from healthcare service packages

52,319

Cost of Revenue

(48,036)

Net revenue of services

330,788

653,870

Commission and fees on financial guarantee services

191,920

187,505

(Provision) recovery of provision for financial guarantee services

(15,586)

38,055

Commission and fee income on guarantee services, net

176,334

225,560

Interest and fees income

Interest income on loans due from third parties

998,827

942,264

Interest income on deposits with banks

271,212

190,121

Total interest and fees income

1,270,039

1,132,385

Operating income

1,777,161

2,011,815

Operating expenses

Salaries and employee surcharges

564,110

598,999

Other operating expenses

1,514,281

1,836,842

Changes in fair value of warrant liabilities

27,729

2,631

Total operating expenses

2,106,120

2,438,472

Other income (expenses)

Other income (expenses), net

(155,633)

7,664

Interest income (expenses), net

11,127

879

Total other income (expenses)

(144,506)

8,543

  Loss before income taxes

(473,465)

(418,114)

Income tax benefit

13,068

592,521

Net (loss) income

(460,397)

174,407

Less: Net loss attributable to noncontrolling interests

(67,030)

(420,663)

Net loss attributable to Roan Holding Group Co., Ltd.’s shareholders

$

(527,427)

$

(246,256)

 Comprehensive income (loss)

Net loss

(460,397)

174,407)

Foreign currency translation

529,793

2,222,871

    Less: Comprehensive loss attributable to noncontrolling interests

(226,482)

(1,129,889)

Total comprehensive income attributable to Roan Holdings Group Co.,
  Ltd.’s shareholders

$

(157,086)

$

1,267,389

Weighted average number of ordinary share outstanding

Basic and Diluted*

25,287,887

25,287,887

Loss per share

Net loss per share – Basic and Diluted

$

(0.02)

$

(0.01)

 

 

ROAN HOLDINGS GROUP CO., LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (Expressed in U.S. dollar, except for the number of shares)

For the Six Months Ended
June 30,

2021

2020

(Unaudited)

(Unaudited)

Cash Flows from Operating Activities:

Net (loss) income

$

(460,397)

$

174,407

Adjustments to reconcile net income to net cash used in operating
activities:

Depreciation and amortization expenses

539,327

577,139

Bad debt provision

330,573

338,814

Provision (recovery of provision) for financial guarantee losses

15,586

(38,055)

Deferred tax benefits

(219,226)

(851,408)

Changes in fair value of warrant liabilities

27,730

2,631

Loss (gain) from lease modification

20,386

(7,055)

Accretion of finance leases

4,900

7,244

Changes in operating assets and liabilities:

Accounts receivables

1,112,931

(6,039,350)

Inventories

(2,330)

Other current assets

3,419,669

3,156,547

Other receivables

2,997,179

(3,343,895)

Pledged deposits and other non-current assets

82,099

5,044,909

Advances from customers

(19,159)

(10,734)

Tax payable

304,981

67,099

Accrued expenses and other liabilities

67,147

1,182,426

Net Cash Provided by Operating Activities

8,221,396

260,719

Cash Flows from Investing Activities:

Disbursement of loans to third parties

(3,433,781)

(18,504,614)

Redemption of short-term investment

8,610,796

Payment of due from related party

(11,160)

(140,531)

Net Cash Used in Investing Activities

(3,444,941)

(10,034,349)

Cash Flows from Financing Activities:

Repayment of bank loans

(2,942,152)

Payment of lease liabilities

(13,320)

(111,785)

Net Cash Used in Financing Activities

(2,955,472)

(111,785)

Effect of exchange rate changes on cash, cash equivalents, and restricted
cash in banks

564,020

2,123,282

Net increase (decrease) in cash, cash equivalents, and restricted cash
in banks

2,385,003

(7,762,133)

Cash, cash equivalents, and restricted cash in banks at beginning of
year

30,807,604

22,145,525

Cash, cash equivalents, and restricted cash in banks at end of year

$

33,192,607

$

14,383,392

Supplemental Cash Flow Information

Cash paid for interest expense

$

146,215

$

Cash paid for income taxes

$

$

179,373

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within
the statement of financial position that sum to the total of the same amounts shown in the consolidated
statements of cash flows:

June 30,
2021

 June 30,

2020

Cash and cash equivalents

$

2,258,679

4,723,231

Restricted cash in banks

30,933,928

9,660,161

Total cash, cash equivalents and restricted cash

$

33,192,607

14,383,392

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