Wins Finance Holdings Inc. Reports Unaudited and Unreviewed Fiscal Second Quarter 2017 Financial Results

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 the medical 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 million for 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.

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 31^st and the twelve months ending June 30^th 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, 2016		June 30, 2016
		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 Werbung Mehr Nachrichten zur Wins Finance Holdings Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 25.04.24 - PR Newswire BlackRock Energy and Resources Income Trust Plc - Portfolio Update 25.04.24 - PR Newswire Cohen & Steers Capital Management - Form 8.3 - Tritax Big Box REIT plc 25.04.24 - PR Newswire Everest Global Plc - Result of AGM SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59