NEW YORK, Jan. 6, 2017 /PRNewswire/ -- Wins Finance Holdings
Inc. ("Wins Finance" or the "Company") (NASDAQ: WINS), a diversified investment and asset management company that provides
integrated financing solutions to small and medium enterprises ("SMEs") in China, today
announced its unaudited financial results for the quarter ended September 30, 2016.
Fiscal First Quarter Financial and Operational Highlights
- Gross revenues were $2.3 million, compared to $2.2 million for
the comparable period last year.
- Interest on short-term investments was $3.5 million, compared to $3.6
million for the comparable period last year.
- Net income attributable to Wins Finance was $3.1million for the quarter ended September 30, 2016, compared to $4.7 million for the same period ended
September 30, 2015.
"In the past year, we have made progress in our direct leasing business in the medical equipment and new energy sectors.
$22.11 million (RMB 147 million) and $44.98
million (RMB300 million) were funded to medical equipment and new energy sectors,
respectively. We remain focused on development of our leasing business in these sectors, both of which offer significant
opportunities for investment. We expect these two sectors to continue to grow despite the economic slowdown and other
macroeconomic factors," said Renhui Mu, Co CEO and COO of Wins Finance. "We continue to expand our
pipeline of leasing opportunities, and expect our geographic footprint to increase during in the second half of
2017."
Quarter Ended September 30, 2016 Results
Gross revenue
Wins Finance's gross revenue for the quarter ended September 30, 2016 was $2.3 million, which consists of $0.8 million of commissions and fees generated
from its financial guarantee services, and $1.5 million of direct financing lease interest
income.
Commissions and fees on financial guarantee services generated from financial guarantee services the Company provides to
customers decreased by $0.9 million, or 52.3%, to $0.8 million for
the quarter ended September 30, 2016, compared to $1.8 million for
the quarter ended September 30, 2015. The decrease was primarily attributable to reduced lending
activities due to the economic recession in Shanxi province and our increased scrutiny of
potential clients as a result thereof.
Direct financing lease interest income generated from payments under direct financing leases with customers increased by
$1.0 million, or 208.4%, to $1.5 million for the quarter ended
September 30, 2016, compared to $0.5 million for the quarter ended
September 30, 2015. The increase was primarily attributable to new contracts in the medical
equipment and new energy sectors.
Interest on short-term investment
Interest on short-term investments decreased by $0.1 million to $3.5
million for the quarter ended September 30, 2016, compared to $3.6
million for the same period ended September 30, 2015. The decrease was primarily due to a
decrease in the rate of return caused by decreased return in the local capital markets, partially offset by an increase in the
average balances of short-term investments.
Non-interest expenses
Non-interest expenses increased by $0.8 million, or 114.8%, to $1.6
million for the quarter ended September 30, 2016, compared to $0.8
million for the same period ended September 30, 2015. The increase was primarily
attributable to an increase of $0.8 million in share-based compensation to the company's directors
and executive officers and increases in salaries, legal fees, auditing fees and consulting fees for investor relations in
connection with being a public company.
Income taxes
Income tax expense decreased by $0.4 million, or 38.0%, to $0.7
million for the three months ended September 30, 2016, compared to $1.1 million for the three months ended September 30, 2015. The decrease was
primarily attributable to a decrease in taxable income excluding interest on short-term investment, which is exempt from
taxation.
Net income
Net income decreased by $1.6 million, or 33.5%, to $3.1 million
for the quarter ended September 30, 2016, compared to $4.7 million
for the same period ended September 30, 2015.
Other Significant Events
As previously reported, on December 13, 2016, Appelo Ltd. and Wits Global Ltd., each an entity
controlled by Mr. Wang Hong, entered into an agreement to transfer all of the ordinary shares of
Wins Finance owned by them, an aggregate of 13,440,000 ordinary shares (approximately 67% of the Company's outstanding ordinary
shares), to Spectacular Bid Limited, a wholly owned subsidiary of Freeman FinTech Corporation Limited, a company listed on the
Hong Kong Stock Exchange (collectively, the "Purchaser"). To the knowledge of the Company, the Purchaser does not own any other
of the Company's ordinary shares and the Purchaser does not have any plans to acquire the Company's remaining outstanding
ordinary shares.
At the closing, Jianming Hao, Haiming Guo, Guo Chen and Jingxiao Zhang will resign from the Board of Directors and
Junfeng Zhao, Xiaofeng Zhong, Shihai
Wang and Weiqi Chen will be appointed to the Board of Directors. In addition, Jianming Hao will resign as Co-Chief Executive Officer of the Company.
The transaction has not yet closed.
About Wins Finance
Wins Finance is a diversified investment and asset management company listed on NASDAQ. The company is focused on identifying
value accretive investment opportunities and assets in China and the
United States that can be enhanced through the strategic involvement of Wins' established management team and its
familiarity with the Chinese investment community to help generate long-term value for shareholders. Wins Finance is well
positioned to leverage its expertise and existing operations in China to build a comprehensive
platform for the provision of lending and other financing solutions to the under-served small and medium enterprise segment. For
more information, please visit www.winsholdings.com.
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will,"
"expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. All statements other than
statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties
that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking
statements are based on management's current expectations, assumptions, estimates and projections about the Company and the
industry in which the Company operates, but involve a number of unknown risks and uncertainties. Further information regarding
these and other risks are described in the Company's Current Report on Form 8-K dated October 26,
2015 and in the Company's other filings with the U.S. Securities and Exchange Commission. The Company undertakes no
obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its
expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward
looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results
may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the
forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements,
which are qualified in their entirety by these cautionary statements.
Company Contacts:
Jianming Hao, President
Wins Finance Holdings Inc.
590 Madison Avenue, 21st FL
New York, NY 10022
Tel: 646-480-9882
Email: jhao@winsii.com
|
WINS FINANCE HOLDINGS INC.
|
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
As of
|
|
|
September 30,
2016
|
|
June 30,
2016
|
|
|
US$
|
|
US$
|
|
ASSETS
|
|
|
|
|
|
Cash
|
|
8,715,638
|
|
47,163,965
|
|
Restricted cash
|
|
26,766,408
|
|
27,962,846
|
|
Short-term investment
|
|
186,474,512
|
|
149,841,838
|
|
Commission receivable
|
|
286,047
|
|
-
|
|
Guarantee paid on behalf of guarantee service customers
|
|
2,578,008
|
|
2,039,684
|
|
Interest receivable
|
|
4,438,571
|
|
1,021,306
|
|
Net investment in direct financing leases
|
|
72,187,582
|
|
74,705,647
|
|
Deferred tax assets, net
|
|
404,043
|
|
428,524
|
|
Property and equipment, net
|
|
816,801
|
|
854,719
|
|
Other assets
|
|
9,657,588
|
|
608,751
|
|
TOTAL ASSETS
|
|
312,325,198
|
|
304,627,280
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Bank loan for capital lease business
|
|
39,553,635
|
|
43,308,617
|
|
Loans payable
|
|
8,239,147
|
|
-
|
|
Interest payable
|
|
220,540
|
|
208,947
|
|
Income tax payable
|
|
3,067,173
|
|
2,510,847
|
|
Unearned income from financial guarantee services
|
|
993,051
|
|
423,801
|
|
Other liabilities
|
|
10,142,287
|
|
10,099,055
|
|
Due to related party
|
|
464,000
|
|
464,000
|
|
Allowance on guarantee
|
|
3,056,206
|
|
3,079,684
|
|
Deferred income tax liability
|
|
-
|
|
477,398
|
|
Total Liabilities
|
|
65,736,039
|
|
60,572,349
|
|
|
|
|
|
|
Shareholders' Equity
|
|
|
|
|
|
Common stock (par value $0.0001 per share, 100,000,000
shares authorized; 20,041,647 and 20,041,647 shares
issued and outstanding at September 30, 2016 and June 30,
2016, respectively)
|
|
2,004
|
|
2,004
|
|
Additional paid-in capital
|
|
214,221,526
|
|
213,400,296
|
|
Statutory reserve
|
|
2,364,245
|
|
2,364,245
|
|
Retained Earnings
|
|
46,342,639
|
|
43,244,044
|
|
Accumulated other comprehensive loss
|
|
(16,341,255)
|
|
(14,955,658)
|
|
Total Equity
|
|
246,589,159
|
|
244,054,931
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
312,325,198
|
|
304,627,280
|
|
WINS FINANCE HOLDINGS INC.
|
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
|
|
COMPREHENSIVE INCOME (LOSS)
|
|
|
|
Three months ended
|
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
|
US$
|
|
|
US$
|
|
Guarantee service income
|
|
|
|
|
|
|
Commissions and fees on financial guarantee services
|
|
835,763
|
|
|
1,751,579
|
|
(Provision)/reversal of provision on financial guarantee
services
|
|
5,844
|
|
|
319
|
|
Commission and fees on guarantee services, net
|
|
841,607
|
|
|
1,751,898
|
|
|
|
|
|
|
|
Direct financing lease income
|
|
|
|
|
|
|
Direct financing lease interest income
|
|
1,461,214
|
|
|
473,752
|
|
Interest expense for direct financing lease
|
|
(815,121)
|
|
|
(5,350)
|
|
Reversal/(provision) for lease payment receivable
|
|
25,584
|
|
|
(4,137)
|
|
Net direct financing lease interest income after provision for
receivables
|
|
671,677
|
|
|
464,265
|
|
|
|
|
|
|
|
Net revenue
|
|
1,513,284
|
|
|
2,216,163
|
|
|
|
|
|
|
|
Non-interest income
|
|
|
|
|
|
|
Interest on short-term investment
|
|
3,463,436
|
|
|
3,587,140
|
|
Total non-interest income
|
|
3,463,436
|
|
|
3,587,140
|
|
|
|
|
|
|
|
Non-interest expense
|
|
|
|
|
|
|
Business taxes and surcharge
|
|
(848)
|
|
|
(126,961)
|
|
Salaries and employees surcharge
|
|
(292,291)
|
|
|
(181,319)
|
|
Rental expenses
|
|
(58,279)
|
|
|
(64,435)
|
|
Other operating expenses
|
|
(1,285,738)
|
|
|
(389,357)
|
|
Total non-interest expense
|
|
(1,637,156)
|
|
|
(762,072)
|
|
|
|
|
|
|
|
Income before taxes
|
|
3,339,564
|
|
|
5,041,231
|
|
|
|
|
|
|
|
Income tax expense
|
|
(693,319)
|
|
|
(1,111,144)
|
|
Deferred tax expense/(benefit)
|
|
452,350
|
|
|
726,567
|
|
NET INCOME
|
|
3,098,595
|
|
|
4,656,654
|
|
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
(1,385,597)
|
|
|
(9,577,369)
|
|
COMPREHENSIVE INCOME/(LOSS)
|
|
1,712,998
|
|
|
(4,920,715)
|
|
|
|
|
|
|
|
Weighted-average ordinary shares outstanding - basic and diluted
|
|
20,041,647
|
|
|
30,000,100
|
|
Earnings per share - Basic and diluted
|
|
0.15
|
|
|
0.16
|
NON-GAAP FINANCIAL MEASURES
The non-GAAP financial measures below are provided to enhance investors' overall understanding of the company current
financial performance and prospects for the future. A limitation of using non-GAAP other operating expenses and net income,
excluding share-based compensation expenses, is that these items have been and may continue to be a significant expense in the
Company's business for the foreseeable future. In order to mitigate these limitations the Company has provided specific
information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the
reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company
has presented.
|
WINS FINANCE HOLDINGS INC.
|
|
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
|
|
|
|
Three months ended
|
|
|
September 30,
2016
|
|
|
September 30,
2015
|
|
|
US$
|
|
|
US$
|
|
Other operating expenses under GAAP
|
|
(1,285,738)
|
|
|
(389,357)
|
|
Adjustment (a)
|
|
821,239
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP Other operating expenses
|
|
(464,499)
|
|
|
(389,357)
|
|
|
|
|
|
|
|
Net income under GAAP
|
|
3,098,595
|
|
|
4,656,654
|
|
Adjustment (a)
|
|
821,239
|
|
|
-
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
3,919,834
|
|
|
4,656,654
|
|
|
|
|
|
|
|
Basic and diluted shares outstanding
|
|
20,041,647
|
|
|
30,000,100
|
|
|
|
|
|
|
|
Non-GAAP earnings per share, basic and diluted
|
|
0.20
|
|
|
0.16
|
|
|
(a) Adjustment to exclude the share-based compensation expenses for each
period
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wins-finance-holdings-inc-reports-unaudited-fiscal-first-quarter-2017-financial-results-300386189.html
SOURCE Wins Finance Holdings Inc.