15.05.2023 22:00:00

Roan Holdings Group Co., Ltd. Reports Fiscal Year 2022 Financial Results

HANGZHOU, China, May 15, 2023 /PRNewswire/ -- Roan Holdings Group Co., Ltd. ("Roan" or the "Company") (OTC Pink Sheets: RAHGF and RONWF), a comprehensive solution provider for industrial operation and capital market services focusing on new energy storage industries and green industries, today reported its financial results for the year ended December 31, 2022.

Key Financial Highlights for the Fiscal Year 2022 as compared to Fiscal Year 2021:

  • Net revenue from services increased 51% from $0.79 million to $1.20 million.
  • Operating income increased 23% to $4.45 million, as compared to $3.61 million.
  • Net loss was $(0.11) million or $0.01 per share, compared to net income of $0.76 million or $0.01 per share.


For the Year ended
December 31,



Variance


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


2022



2021



Amount



%


Net revenues from services


$

1.20



$

0.79



$

0.41




51

%

Operating income



4.45




3.61




0.84




23

%

Net  (loss) income



(0.11)




0.76




0.87




-114

%


Loss (Earnings) per share



(0.01)




0.01




0.02




-200

%


Mr. Junfeng Wang, Chairman of the Board commented, " The fiscal year of 2022 signified a pivotal moment for Roan, as we achieved a 51% growth in revenues from services, predominantly driven by the expanding contributions of our industrial operation services. Our strategic emphasis lies in new energy industries and related green industries, initiating and developing our industrial investment and operation services in Zhejiang province as a starting point, and actively expanding into the Yangtze River Delta Region. We plan to further extend our reach to economically developed areas such as the Pearl River Delta Region, and Central China, and then continue to expand into green energy hub regions in Western China. Furthermore, 2022 marked a crucial milestone for Roan as we broadened our industrial operation services to the semiconductor sector, established strategic cooperation with international companies, and diversified our revenue streams."

"Our forward-looking strategy centers around exploring opportunities in whole-process industrial operation services and consistently delivering exceptional value to our partners. By transitioning from our original financial service model to a focus on industrial operation services for the new energy market, we aim to further emphasize long-term sustainable opportunities while striving to achieve excess returns on project equity investments and management in the capital market. Our industrial investment and operation services are actively expanding from Zhejiang provinces as a starting point to economically developed regions such as the Yangtze River Delta, Pearl River Delta, and Central China, and then continuing to expand into green energy hub regions in Western China. We will also pursue an ongoing internationalization strategy, and remain steadfast in fostering a global outlook and actively exploring potential projects featuring innovative technology and premier international partners. This approach will allow us to foster long-term, sustainable relationships with industrial capital and industrial operation service customers and project partners to help us achieve steady revenue growth and expansion opportunities," Mr. Wang said.

Mr. Zhiyong Tang, Chief Executive Officer of Roan, commented: "Fiscal year 2022 showcased a significant 51% growth in net revenues of service, reaching $1.20 million in 2022 compared to $0.79 million in 2022, underscoring the positive impact of our refined business strategy and the evolution of our industrial operation services. Our net loss for 2022 amounted to $0.11 million, indicating $0.87 million, or 114% decrease, compared to net income of $0.76 million recorded in the previous year. While we are currently experiencing a temporary loss amid our business transition, we remain confident that our strategic focus on the new energy market will serve as a catalyst for future business development and financial growth. As we forge ahead into the fiscal year of 2023, we will continue to expand our industrial capital and industrial operation services into different regions, and further cultivate various new energy sub-segments. We anticipate continued growth in our industrial operation service revenue, resulting in a more robust financial performance for the Company and ultimately delivering enhanced returns for our shareholders."

Fiscal Year 2022 Financial Results

Revenues

The following table sets forth a breakdown of our revenue by services offered for the years ended December 31, 2022 and 2021:



For the years ended
December 31,


Variance



2022


2021


Amount


%

Industrial operation services


$

789,195


$

146,245


$

642,950



440

%

Management and assessment services



401,676



440,254



(38,578)



(9)

%

Consulting services relating to debt
   collection





206,792



(206,792)



(100)

%

HealthCare services, net



6,928





6,928



100

%

Revenues from services


$

1,197,799


$

793,291


$

404,508



51

%

Industrial operation services

Revenue from industrial operation services was $789,195 for the year ended December 31, 2022, an increase of $642,950 or 440%, as compared to $146,245 for the same period of fiscal 2021. This significant increase was mainly due to the further development of the industrial operation services related to the new energy storage and semiconductor industries.

Management and assessment services

Revenue from management and assessment services was $401,676 for the year ended December 31, 2022, as compared to $440,254 for the same period of the prior year. During 2022, we maintained the current customers and developed one new customer.

Consulting services relating to debt collection

Revenue from consulting services relating to debt collection was $nil for the year ended December 31, 2022, as compared to $206,792 for the same period of last fiscal year. Due to the negative impact of COVID-19, we had fewer contracts for debt collection service from 2021 and did not develop any new customer of debt collection in 2022.

Healthcare services

Revenue from the healthcare service was $6,928 and $nil for the year ended December 31, 2022 and 2021, respectively.

Commission and fees on financial guarantee services

Commission and fees on financial guarantee services was $317,857 and $456,944 for the years ended December 31, 2022 and 2021, respectively. The decrease was mainly due to the Company's planned reduction in the relatively high-risk financing guarantee business.

Provision for financial guarantee services

The provisions for financial guarantee services are related to the financial guarantee service business as per the requirement of local government. Provisions for recovery for financial guarantee services was reversed to $278,496 for the year ended December 31, 2022, as compared to provision of $57,417 for the same period of 2021.

Interest and fee income

Interest and fee income primarily consisted of interest and fee income generated from loans due from third parties. Interest and fee income was $2,651,544, an increase of $236,877, or 10% for year ended December 31, 2022 as compared to $2,414,667 for the same period of 2021. The increase was largely due to the Company's newly increased loan to a third-party, which caused the interest income to increase accordingly.

Operating expenses

Operating expenses increased by $982,756 or 30%, to $4,281,355 for the year ended December 31, 2022, as compared to $3,298,599 for the same period of fiscal 2021. The increase in operating expenses was primarily attributable by the increase in salaries and employee surcharges, other G&A expense, and bad debt provision.

Net income (loss) and earnings (loss) per share

Net loss was $106,535 for the year ended December 31, 2022, as compared to net income of $757,301 for the same period of last year.

After deducting for non-controlling interests, net loss attributable to the Company's shareholders was $351,947 for the year ended December 31, 2022, as compared to net income attributable to the Company's shareholders of $371,091 for the same period of last year.

Loss per share was $0.01 for the year ended December 31, 2022, as compared to earnings per share of $0.01 for the same period of last year.

Cash and cash equivalents

Cash and cash equivalents were $645,363 as of December 31, 2022, as compared to $1,947,142 as of December 31, 2021.

Recent Developments

On April 26, 2023, Roan entered into an investment cooperation agreement for development and manufacturing of LCOS micro-display panels with the Korean company May Co,. Ltd. and its controlling shareholder Paik Woo Sung.

On September 23, 2022, Zhejiang Future New Energy Battery Technology Group Co., Ltd.  was set up under the laws of PRC with the registered capital RMB 1.533 billion (approximately $222.26 million).

On September 13, 2022, Yangtze River Delta Energy Storage Technology Industrial Group (Jiaxing) Co., Ltd. was set up under the laws of PRC.

On August 30, 2022, Zhongtan Industrial Operation subscribed RMB 200 million (approximately $30.87 million) as registered capital in Jiaxing Zhongtan Future Energy Storage Technology Partnership (Limited Partnership) for 40% of its equity.

On August 25, 2022, a new wholly-owned subsidiary, Zhongtan Future Industrial Operation (Jiaxing) Co., Ltd. was incorporated under the laws of the PRC, to provide industrial operation services focusing on new energy storage, New Materials, and semiconductor industries.

On August 18, 2022, Zhongtan Industrial Operation subscribed RMB 0.1 million (approximately $14,499) as registered capital to Jiaxing Future Energy Enterprise Management Partnership (Limited Partnership), a joint venture, and held 1% of its equity.

On June 23, 2022, a new wholly-owned subsidiary, Zhongtan Future Industrial Operation (Hangzhou) Co., Ltd. was incorporated under the laws of the PRC, which provides industrial operation services focusing on the new energy storage, new materials, and semiconductor industries.

About Roan Holdings Group Co., Ltd.

Founded in 2009, Roan Holdings Group Co., Ltd. (OTC Pink: RAHGF and RONWF) is a comprehensive solution provider for industrial operation and capital market services. Adhering to the platform strategy of "cross collaboration, technology empowerment, sustainability and stability, and combination of operation and finance resources", the Company's services focus on the new energy, new materials, and semiconductor industries. At the same time, the Company focuses on the application of innovative technologies in the consumer industry with respect to financial consumption, cultural and tourism consumption, and great health ecosystem. Roan aims to provide comprehensive solutions and supporting services for diversified institutional and local government clients across the entire industry chain. Roan has operational headquarters in Hangzhou, and subsidiaries in Hangzhou, Ningbo, Shaoxing 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. Examples of such statements in this release include that (a) our strategic emphasis lies in new energy industries and related green industries, initiating and developing our industrial investment and operation services in Zhejiang province as a starting point, and actively expanding into the Yangtze River Delta Region, (b) our plan to further extend our reach to economically developed areas such as the Pearl River Delta Region, and Central China, and then continue to expand into green energy hub regions in Western China, (c) our strategy to explore opportunities in whole-process industrial operation services and consistently delivering exceptional value to our partners, (d) our aim to further emphasize long-term sustainable opportunities in the new energy sector for industrial operation services by transitioning from our original financial service model to a focus on industrial operation services for the new energy market, while striving to achieve excess returns on project equity investments and management in the capital market, (e)  our plans to also pursue an ongoing internationalization strategy, and remain steadfast in fostering a global outlook and actively exploring potential projects featuring innovative technology and premier international partners, which we believe will allow us to foster long-term, sustainable relationships with industrial capital and industrial operation service customers and project partners to help us achieve steady revenue growth and expansion opportunities, (f)  our beliefs that our current loss is temporary amid our business transition, that our strategic focus on the new energy market will serve as a catalyst for future business development and financial growth, that in 2023, we will continue to expand our industrial capital and industrial operation services into different regions, and further cultivate various new energy sub-segments, and that we will experience continued growth in our industrial operation service revenue, resulting in a more robust financial performance for the Company,   Such statements are based upon management's current expectations, 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 and which could cause actual results to differ materially from statements made in this press release.  Examples of these risks include whether we are able to grow our revenue from industrial operation services, in part from our multiple strategic initiatives, whether we will be timely in implementing such multiple strategic initiatives and whether such strategic initiatives will lead to new revenue, whether any growth would be profitable, whether there will be continued growth in the new energy and new materials sectors, whether the worldwide economic slow-down will impact these sectors materially, whether any of companies or joint ventures we invested in and/or formed will become active and successful, whether our partners in such companies and joint ventures will devote commensurate efforts, and whether we will be able to timely set up an industrial service platform covering both the downstream and upstream resources for industrial supply chain of new energy industrial operations.  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 which are available on our website at www.roanholdingsgroup.com/cwbg and on the SEC's website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time.  The Company does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under law.

IR Contact:

Investor Relations Firm:
Sherry Zheng
Weitian Group LLC
Email: shunyu.zheng@weitian-ir.com
Phone: +1 (718)213-7386

ROAN HOLDINGS GROUP CO., LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

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




December 31,
2022


December 31,
2021

ASSETS







Cash and cash equivalents


$

645,363


$

1,947,142

Restricted cash



11,337,223



20,592,223

Guarantee deposit



8,409,210



9,101,466

Accounts receivable, net



8,200,172



6,929,529

Inventories





33,598

Loan receivables due from third parties, net



25,536,222



23,751,471

Due from related parties



10,280



5,941

Prepayments



26,648



70,910

Other receivables, net



188,395



656,835

Total current assets



54,353,513



63,089,115








Pledged deposits





48,752

Property and equipment, net



50,518



77,073

Intangible assets, net



2,009,297



3,123,394

Right of use assets



72,846



37,313

Goodwill



246,998



267,331

Total non-current assets



2,379,659



3,553,863

Total Assets


$

56,733,172


$

66,642,978








LIABILITIES







Customer pledged deposits


$


$

7,846

Unearned income



393,742



72,523

Reserve for financial guarantee losses



330,096



651,341

Dividends payable



480,000



480,000

Tax payable



3,117,234



2,614,257

Due to related parties



215,541



123,117

Warrant liabilities





16,998

Operating lease liabilities, current portion



57,944



65,498

Accrued expenses and other liabilities



1,336,968



1,155,903

Bank loans





5,961,460

Total current liabilities



5,931,525



11,148,943








Operating lease liabilities, noncurrent portion



30,091



Deferred tax liabilities



177,098



544,355

Total non-current Liabilities



207,189



544,355








Total Liabilities


$

6,138,714


$

11,693,298








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 December 31, 2022 and
   December 31, 2021, respectively





Class A convertible preferred shares, no par value, unlimited shares
   authorized; 715,000 and 715,000 shares issued and outstanding as of
   December 31, 2022 and December 31, 2021, respectively


$

12,398,127


$

11,711,727

Class B convertible preferred shares, no par value, unlimited shares authorized;
   291,795,150 and 291,795,150 shares issued and outstanding as of
   December 31, 2022 and December 31, 2021, respectively



31,087,732



31,087,732

Additional paid-in capital



3,312,189



3,312,189

Statutory reserve



472,706



362,797

Accumulated deficit



(15,954,058)



(14,805,802)

Accumulated other comprehensive income



445,517



3,128,086

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


$

31,762,213


$

34,796,729










Noncontrolling interests



18,832,245



20,152,951

Total Equity



50,594,458



54,949,680

Total Liabilities and Equity


$

56,733,172


$

66,642,978

 

 

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 Years Ended
December 31,



2022


2021


2020

Revenue from consulting management services


$

789,195



$

146,245



$


Revenue of industrial operation services



789,195




146,245


















Revenues from financial services



401,676




647,046




2,128,153















Revenues from healthcare service packages



25,529







55,301


Cost of revenues



(18,601)







(50,774)


Net revenues from healthcare service packages



6,928








4,527


Net revenues of services



1,197,799




793,291




2,132,680















Commissions and fees on financial guarantee services



317,857




456,944




375,471


Recovery (provision) for financial guarantee services



278,496




(57,417)




(89,865)


Commission and fee income on guarantee services, net



596,353




399,527




285,606















Interest and fees income













Interest income on loans due from third parties



2,302,915




2,113,918




2,131,447


Interest income on deposits with banks



348,629




300,749




348,389


Total interest and fee income



2,651,544




2,414,667




2,479,836


Operating income



4,445,696




3,607,485




4,898,122















Total operating expenses













Salaries and employee surcharges



(1,273,012)




(1,054,509)




(1,116,482)


Other operating expenses



(2,479,402)




(2,192,551)




(2,671,310)


Changes in fair value of warrant liabilities



16,998




(3,021)




5,961


Allowance for expected credit loss



(545,939)




(48,518)




(323,788)


Total operating expenses



(4,281,355)




(3,298,599)




(4,105,619)















Income from operation



164,341




308,886




792,503















Other (expense) income













Deconsolidation gain (loss)






490,283




(1,953,248)


Other (expenses) income



(22,235)




554,167




76,406


Interest expenses



(46,663)




(267,184)





Total other (expense) income



(68,898)




777,266




(1,876,842)


Income (Loss) before income taxes



95,443




1,086,152




(1,084,339)















Income tax (expenses) recovery



(201,978)




(328,851)




229,733















Net (loss) income from continuing operations



(106,535)




757,301




(854,606)















Net (loss) income



(106,535)




757,301




(854,606)


Net income attributable to non-controlling interests



(245,412)




(386,210)




(838,048)


Net (loss) income attributable to Roan Holding Group Co.,
   Ltd.'s shareholders


$

(351,947)



$

371,091



$

(1,692,654)


Other comprehensive (loss) income













Foreign currency translation adjustment



(4,248,687)




1,308,444




3,461,980















Comprehensive (loss) income


$

(4,355,222)



$

2,065,745



$

2,607,374















Other comprehensive (loss) income attributable to noncontrolling
interests



1,566,118




(488,233)




(1,334,101)


Net income attributable to noncontrolling interests



(245,412)




(386,210)




(838,048)


Total comprehensive (loss) income attributable to Roan
   Holdings Group Co., Ltd.'s shareholders


$

(3,034,516)



$

1,191,302



$

435,225















Weighted average number of ordinary share outstanding













Basic and Diluted*



25,287,851




25,287,851




25,287,851















(Loss) earnings per share













Net loss (earnings) per share – Basic and Diluted


$

(0.01)



$

0.01



$

(0.07)




* Because the Company incurred a net loss from continuing operations, the number of warrants, Class A preferred
shares and Class B preferred shares are excluded from the computation as the anti-dilutive effect.


 

 

ROAN HOLDINGS GROUP CO., LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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




For the Years Ended
December 31,



2022


2021


2020

Cash Flows from Operating Activities:













Net (loss) income


$

(106,535)



$

757,301



$

(854,606)


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













Depreciation and amortization expenses



920,900




985,845




951,139


Provision for credit losses



545,939




48,518




316,014


Recovery (provision) for financial guarantee losses



(278,496)




57,417




89,865


Deferred tax expenses



(330,063)




(265,421)




(1,001,372)


Changes in fair value of warrant liabilities



(16,998)




3,021




(5,961)


Net gain from disposal of fixed assets






(33,246)




(136,682)


Gain (loss) from lease modification






(603)




22,257


Non-cash operating lease expenses



82,288




156,498




165,916


Gain (loss) from deconsolidation of subsidiaries






(490,283)




1,953,248


Changes in operating assets and liabilities:













Accounts receivable



(1,934,362)




(7,495)




(3,116,533)


Inventory



32,506




(3,250)




(30,348)


Other current assets



40,754




3,431,640




(3,215,702)


Other receivables



434,689




2,425,003




(3,268,571)


Accounts payable and accrued liabilities









352,600


Pledged deposits and other non-current assets



46,169




414,265




359,202


Customer Pledged assets



(7,431)








Unearned income



334,902




(58,249)




7,915


Tax payable



719,396




847,043




1,029,919


Accrued expenses and other liabilities



229,367




449,971




(1,079,811)


Operating lease liabilities



(93,412)




(76,102)




(207,891)


Net Cash Provided by (Used in) Operating Activities



619,613




8,641,873




(7,669,402)















Cash Flows from Investing Activities:













Proceeds of loans repayment from third parties



13,812,156




20,499,442





Loans advanced to third parties



(17,947,789)




(26,100,286)




(3,467,607)


Purchases of property and equipment



(1,249)




(54,569)





Net inflow related to deconsolidation of subsidiaries






788




61,121


Redemption of short-term investment









8,690,374


Due to (from) related party



88,085




(70,169)




210,774


Proceeds from sale of property and equipment






40,305




837,969


Net Cash (Used in) Provided by Investing Activities



(4,048,797)




(5,684,489)




6,332,631















Cash Flows from Financing Activities:













Proceeds from bank loans



5,645,702




5,889,179




8,341,311


Repayment of bank loans



(11,291,425)




(8,927,555)





Repayment of third-party loans









(280,268)


Net Cash (Used in) Provided by Financing Activities



(5,645,723)




(3,038,376)




8,061,043















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



(1,481,872)




701,642




1,372,684















Net increase in cash, cash equivalents, and restricted cash
   in banks



(10,556,779)




620,650




8,096,956


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



22,539,365




21,918,715




13,821,759


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


$

11,982,586



$

22,539,365



$

21,918,715















Supplemental Cash Flow Information













Cash paid for interest expense


$

221,538



$

269,400



$


Cash paid for income tax


$



$



$















Noncash investing activities













Right of use assets obtained in exchange for operating lease
   obligations


$

117,492



$



$

233,744


 

 

Cision View original content:https://www.prnewswire.com/news-releases/roan-holdings-group-co-ltd-reports-fiscal-year-2022-financial-results-301825115.html

SOURCE Roan Holdings Group Co., Ltd.

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