BEIJING, Dec. 3, 2021 /PRNewswire/ -- AGM Group Holdings
Inc. ("AGMH" or the "Company") (NASDAQ: AGMH), an integrated
technology company focusing on providing fintech software services
and producing high-performance hardware and computing
equipment, today announced its unaudited financial results for
the three months ended September 30,
2021.
Third Quarter 2021 Operating and Financial Highlights
- Total computing power sold was 79,200 TH/S, compared with nil in the same period of
2020.
- Total revenues were $5.34
million, an increase of approximately $5.30 million from $31,261 in the same period of 2020.
- Gross profit was $0.71 million,
an increase of approximately $0.69
million from $21,138 in the
same period of 2020.
- Net income was $0.20 million,
compared to net loss of $0.32 million
in the same period of 2020.
Mr. Chenjun Li, Chairman and Co-Chief Executive Officer of
the Company commented, "We are
very excited in the impressive strides we have made across multiple
fronts, which followed our announcement of new business lines and
growth strategy in August. We have gained considerable attention
and interests to our first ASIC crypto mining machine-KOI
MINER C16, thanks to its top industry metrics. Notably, we
secured purchase orders for 67,500 cryptocurrency mining machines
within just three months from various companies. These achievements
exemplify the strong industry recognition we received in our
product and further establish our leading position in the
cryptocurrency mining industry. Additionally, despite a global
semiconductor shortage and logistic challenges, we are effectively
navigating market dynamics by securing our supply chain
capabilities through the AGMH-HighSharp partnership and exploring
opportunities for manufacturing operation in North America that can bring us closer to our
end customers. We are confident we will distinguish ourselves with
our technical capabilities to become a leader in producing
high-powered ASIC mining machines."
Mr. Wenjie Tang, Co-Chief
Executive Officer of the Company,
commented, "By leveraging the new growth strategy, we were off to a
firm start financially, with revenues of $5.34 million in the third quarter, primarily
from sales of crypto mining machines, and computing hardware. The
initial success boosts our confidence that we are on the right path
of business transformation. Apart from the new initiative, we
remain diligent to push the development of our legacy fintech
business as planned. We believe the combined strengths of our solid
infrastructure, technology, and our experienced senior management
team will enable us to deliver lasting value for shareholders. We
will further advance our mission to become an integrated technology
company focusing on blockchain-oriented ASIC chip design, advanced
cryptocurrency mining equipment production, and fintech software
services."
Mr. Steven Sim, Chief Financial
Officer of the Company, commented, "Our solid financial performance
for the third quarter demonstrates the success and profitability of
our transition and engagement into the ASIC chip design and
cryptocurrency mining equipment manufacturing space. Notably, our
income from operations and net income turned to positive over the
period, compared to both losses in the prior year. Moreover, we are
optimistic on the strategic importance of our partnership with
HighSharp, of which the progress will be on track with the
schedule. Heading into 2022, our imperatives will be delivering the
substantial number of mining machines ordered as scheduled, ramping
up our production capacity, and securing more purchase orders. As
we seek to sustain our future growth trajectory, we will keep
investing into strengthening our R&D, cutting-edge
technologies, and manufacturing capacity to propel further
development in our core crypto miner manufacturing business and
other initiatives."
Third Quarter 2021 Business Highlights & Recent
Developments
- Strategic Initiative for North American Manufacturing
Base
In November, AGMH announced that
the Company is exploring strategic opportunities to set up its
North American manufacturing operations in the United States or Canada to strengthen its leadership position
in the Bitcoin mining sector.
- Purchase Order from Code Chain
In November, AGMH received a
purchase order from Code Chain New Continent Limited ("Code Chain")
(NASDAQ: CCNC) for 10,000 units of 100 TH/S KOI mining machines
worth $65 million. This agreement
also provides Code Chain with an option to purchase an additional
10,000 mining machines.
- Strategic Partnership with Meten
In October, AGMH entered into a
strategic partnership with Meten Holding Group Ltd. ("Meten")
(NASDAQ: METX) to focus on research and development support for
blockchain applications and establishing a cryptocurrency mining
supply chain. The agreement includes an initial order from Meten
for 1,500 Bitcoin mining machines worth US$12 million.
- Purchase Order from MinerVa
In October, AGMH agreed to supply
MinerVa Semiconductor Corp. ("MinerVa") with 25,000 units of its
100 TH/S crypto mining machine to build the MinerVa suite of crypto
mining machines. MinerVa is the distributor of industrial grade
crypto mining machines to leading global large-scale mining
companies.
- Purchase Order from Nowlit Solutions
In October, AGMH received a
purchase order from Nowlit Solutions Corp., a leading crypto
currency equipment supply chain services and consultancy company in
North America, for 30,000 units of
100 TH/S ASIC crypto mining machines.
Third Quarter 2021 Financial Results
Revenues
Total revenues were $5.34 million,
an increase of approximately $5.30
million from $31,261 in the
same period of 2020. The increase was primarily due to the increase
in sales revenues from cryptocurrency mining machine and
standardized computing equipment sales since August, compared with
nil in the same period of 2020. Total computing power sold
increased to 79,200 TH/S, compared
to nil in the same period of 2020. The growth came after the
Company announced in August to initiate a new growth strategy to
become a key participant and contributor in the global blockchain
ecosystem.
Cost of Revenues
Cost of revenues was $4.62
million, an increase of approximately $4.61 million from $10,123 in the same period of 2020. The increase
was primarily due to the increase in procurement costs of crypto
mining machines and standardized computing equipment, compared with
nil in the same period of 2020.
Gross Profit
Gross Profit was $0.71 million, an
increase of $0.69 million from
$21,138 in the same period of 2020.
The increase was primarily due to the substantial increase in
revenues.
Operating expenses
Total operating expenses were $0.34
million, an increase of 17.1% from approximately
$0.29 million in the same period of
2020.
- Selling, general, and administrative expenses consist primarily
of sales and administrative employee-related expenses, professional
fees, travel costs, research and development costs, and other
corporate expenses. Selling, general, and administrative expenses
were $0.33 million, an increase of
20.2% from $0.27 million in the same
period in 2020. The increase was primarily due to expenses related
to an establishment of a new wholly foreign-owned enterprise.
- Research and development expenses were $10,304, a decrease of 35.6% from $16,007 in the same period in 2020. The decrease
was primarily due to the decrease in FinTech R&D. The Company
had not invested in cryptocurrency mining machine R&D until
Sep 30, 2021.
Income from operations
Income from operations was $0.37
million, compared with loss from operations of $0.27 million in the same period of 2020.
Other income (expenses)
Other expenses, net of other income was $15,005, compared to other expenses, net of other
income, of $5,324 in the same period
of 2020. The increase in other expenses, net of other income, was
primarily attributed to foreign exchange loss, interest expenses,
and bank charges.
Net income
Net income was $0.20 million,
compared to net loss of $0.32 million
in the same period of 2020.
Earnings per share
Basic and diluted net income per common share were both
$0.01, compared to basic and diluted
net loss of both $0.01 in the same
period of 2020.
Cash and cash equivalents
Cash and cash equivalent were $1.40
million as of September 30,
2021, among which $0.79
million (RMB5.14 million) was
held inside China (Mainland), and
$0.61 million held outside of
China (Mainland). As of
June 30, 2021, the Company had a
total of $0.46 million in cash and
cash equivalents, among which $0.15
million (RMB0.96 million) was
held inside China (Mainland), and
$0.31 million held outside of
China (Mainland). AGMH has not
transferred and do not plan to transfer cash in RMB outside of
China (Mainland) in order to avoid
unnecessary currency exchange cost. AGMH subsidiaries in
China (Mainland) incur expenses from
time to time, and the Company has spent with plans to spend RMB
cash to cover those expenses.
Conference Call
AGMH's management will host an earnings conference call at
8:00 AM U.S. Eastern Time on
Friday, December 3, 2021
(9:00 PM Beijing/Hong Kong Time on
December 3, 2021).
For participants who wish to join the call, please register in
advance for the conference using the link provided below at least
15 minutes prior to the scheduled call start time. Upon
registration, participants will receive the conference call access
information, including dial-in numbers, Direct Event passcode, a
unique registrant ID and an email with detailed instructions to
join the conference call.
Participant Online Registration:
http://apac.directeventreg.com/registration/event/6978907
Once completing the registration, please dial-in at least 10
minutes before the scheduled start time of the earnings call and
enter the Direct Event passcode and registrant ID as instructed to
connect to the call.
Additionally, a live and archived webcast of the conference call
will be available at:
https://edge.media-server.com/mmc/p/8moqvyto
A replay of the conference call may be accessed by phone
approximately two hours after the conclusion of the live call at
the following numbers until December 11,
2021. To access the replay, please reference the conference
ID 6978907.
International
|
+61-2-8199-0299
|
United
States
|
+1-855-452-5696
|
Hong Kong,
China
|
+852-800-963-117
|
Mainland,
China
|
+86-800-870-0206
|
|
+86-400-632-2162
|
About AGM Group Holdings Inc.
Incorporated in April 2015 and
headquartered in Beijing, China,
AGM Group Holdings Inc. (NASDAQ: AGMH) is an integrated technology
company focusing on providing fintech software services and
producing high-performance hardware and computing equipment. AGMH's
mission is to become one of the key participants and contributors
in the global fintech and blockchain ecosystem. For more
information, please visit www.agmprime.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 is included 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.
For more information, please contact:
In China:
At the Company:
Email: ir@agmprime.com
The Blueshirt Group
Ms. Feifei Shen
Phone: +86 13466566136
Email: feifei@blueshirtgroup.com
The Blueshirt Group
Ms. Suwen Feng
Phone: +86 139-1711-0134
Email: suwen@blueshirtgroup.com
In the United States:
The Blueshirt Group
Ms. Julia Qian
Phone: +1 973-619-3227
Email: Julia@blueshirtgroup.com
AGM GROUP
HOLDINGS, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
September
30,
|
|
December 31,
|
|
|
|
2021
|
|
2020
|
|
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,403,534
|
|
$
|
664,605
|
|
Accounts
receivable
|
|
|
1,541,925
|
|
|
-
|
|
Inventories
|
|
|
4,073,711
|
|
|
-
|
|
Advance to
suppliers
|
|
|
14,186,429
|
|
|
-
|
|
Prepayment and other
current assets
|
|
|
5,849,326
|
|
|
5,420,916
|
|
Total current
assets
|
|
|
27,054,925
|
|
|
6,085,521
|
|
Property and
equipment, net
|
|
|
11,037
|
|
|
19,320
|
|
Intangible assets,
net
|
|
|
9,003
|
|
|
10,113
|
|
Operating lease
right-of-use assets
|
|
|
66,539
|
|
|
-
|
|
Total
assets
|
|
$
|
27,141,504
|
|
$
|
6,114,954
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
|
2,541,925
|
|
$
|
-
|
|
Short-term borrowings
- related party
|
|
|
499,980
|
|
|
-
|
|
Accounts
payable
|
|
|
1,625
|
|
|
4,974
|
|
Accrued expenses and
other payables
|
|
|
2,157,119
|
|
|
1,819,544
|
|
Advance from
customers
|
|
|
17,560,514
|
|
|
-
|
|
Due to related
parties
|
|
|
1,013,641
|
|
|
597,826
|
|
Operating lease
liabilities, current
|
|
|
49,522
|
|
|
-
|
|
Total current
liabilities
|
|
|
23,824,326
|
|
|
2,422,344
|
|
Operating lease
liabilities, non-current
|
|
|
17,017
|
|
|
-
|
|
Total
liabilities
|
|
$
|
23,841,343
|
|
$
|
2,422,344
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
Class A Ordinary
Shares (200,000,000 shares authorized with
par value of $0.001, 21,356,290 and 21,356,290 shares issued
and
outstanding as of September 30, 2021 and December 31, 2020,
respectively)
|
|
$
|
21,356
|
|
$
|
21,356
|
|
Class B Ordinary
Shares (200,000,000 shares authorized with
par value of $0.001, 7,100,000 shares issued and outstanding as
of
September 30, 2021 and December 31, 2020, respectively)
|
|
|
7,100
|
|
|
7,100
|
|
Additional paid-in
capital
|
|
|
8,368,266
|
|
|
8,368,266
|
|
Statutory
reserves
|
|
|
47,169
|
|
|
-
|
|
Accumulated
deficit
|
|
|
(5,300,800)
|
|
|
(4,947,815)
|
|
Accumulated other
comprehensive income
|
|
|
157,070
|
|
|
243,703
|
|
Total shareholders'
equity
|
|
|
3,300,161
|
|
|
3,692,610
|
|
Total liabilities
and shareholders' equity
|
|
$
|
27,141,504
|
|
$
|
6,114,954
|
|
The accompanying notes are an integral part of these unaudited
consolidated financial statements
AGM GROUP
HOLDINGS, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|
(UNAUDITED)
|
|
|
|
For The Three
Months Ended
|
|
For The Nine
Months Ended
|
|
September
30,
|
September
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
5,335,896
|
|
$
|
31,261
|
|
$
|
5,335,896
|
|
$
|
39,710
|
|
Total
Revenues
|
|
|
5,335,896
|
|
|
31,261
|
|
|
5,335,896
|
|
|
39,710
|
|
Cost of
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
(4,621,957)
|
|
|
(10,123)
|
|
|
(4,621,957)
|
|
|
(29,872)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
713,939
|
|
|
21,138
|
|
|
713,939
|
|
|
9,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general &
administrative
expenses
|
|
|
329,391
|
|
|
274,059
|
|
|
809,886
|
|
|
765,652
|
|
Research and
development expenses
|
|
|
10,304
|
|
|
16,007
|
|
|
32,809
|
|
|
47,355
|
|
Total operating
expenses
|
|
|
339,695
|
|
|
290,066
|
|
|
842,695
|
|
|
813,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) from
operations
|
|
|
374,244
|
|
|
(268,928)
|
|
|
(128,756)
|
|
|
(803,169)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
318
|
|
|
-
|
|
|
495
|
|
|
793
|
|
Other
expenses
|
|
|
(15,323)
|
|
|
(5,324)
|
|
|
(20,325)
|
|
|
(3,440)
|
|
Total other
expenses
|
|
|
(15,005)
|
|
|
(5,324)
|
|
|
(19,830)
|
|
|
(2,647)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss) from
continuing
operations before provision of income
taxes
|
|
|
359,239
|
|
|
(274,252)
|
|
|
(148,586)
|
|
|
(805,816)
|
|
Provision for income
taxes expenses
|
|
|
(157,230)
|
|
|
-
|
|
|
(157,230)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
from continuing
operations
|
|
|
202,009
|
|
|
(274,252)
|
|
|
(305,816)
|
|
|
(805,816)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations,
net of income tax
|
|
|
-
|
|
|
(45,690)
|
|
|
-
|
|
|
(173,168)
|
|
Loss from
discontinued operations,
net of income tax
|
|
|
-
|
|
|
(45,690)
|
|
|
-
|
|
|
(173,168)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
$
|
202,009
|
|
$
|
(319,942)
|
|
$
|
(305,816)
|
|
$
|
(978,984)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income/(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
|
$
|
202,009
|
|
$
|
(319,942)
|
|
$
|
(305,816)
|
|
$
|
(978,984)
|
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustment
|
|
|
5,540
|
|
|
(134,319)
|
|
|
(86,633)
|
|
|
(93,495)
|
|
Total
comprehensive income/(loss)
|
|
$
|
207,549
|
|
$
|
(454,261)
|
|
$
|
(392,449)
|
|
$
|
(1,072,479)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(Loss)
earnings per common
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
- Basic and
Diluted
|
|
$
|
-
|
|
$
|
(0.01)
|
|
$
|
-
|
|
$
|
(0.04)
|
|
Discontinued
operations - Basic and
Diluted
|
|
|
0.01
|
|
|
-
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) per
common share -
basic and diluted
|
|
$
|
0.01
|
|
$
|
(0.01)
|
|
$
|
(0.01)
|
|
$
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
Class A ordinary
shares outstanding, basic and diluted
|
|
|
21,356,290
|
|
|
21,826,042
|
|
|
21,356,290
|
|
|
21,802,845
|
|
The accompanying notes are an integral part of these unaudited
consolidated financial statements
AGM GROUP
HOLDINGS, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
For The Nine
Months Ended
|
|
September
30,
|
|
|
2021
|
|
|
2020
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(305,816)
|
|
|
$
|
(978,984)
|
|
Net loss from
discontinued operations, net of tax
|
|
|
-
|
|
|
|
(173,168)
|
|
Net loss from
continuing operations
|
|
|
(305,816)
|
|
|
|
(805,816)
|
|
|
|
|
|
|
|
|
|
|
Adjustment to
reconcile net income to net cash used in
operating activities
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
9,567
|
|
|
|
25,035
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(1,541,925)
|
|
|
|
-
|
|
Advance to
suppliers
|
(14,186,429)
|
|
|
|
-
|
|
Prepayment and other
current assets
|
|
|
(428,410)
|
|
|
|
95,047
|
|
Inventories
|
|
|
(4,073,711)
|
|
|
|
-
|
|
Accounts
payable
|
|
|
(3,349)
|
|
|
|
134
|
|
Accrued expenses and
other payables
|
|
|
337,575
|
|
|
|
(9,387)
|
|
Advanced from
customers
|
|
|
17,560,514
|
|
|
|
13,375
|
|
Net cash used in
operating activities from continuing
operations
|
|
|
(2,631,984)
|
|
|
|
(681,612)
|
|
Net cash used in
operating activities from discontinued
operations
|
|
|
-
|
|
|
|
(261,527)
|
|
Net cash used in
operating activities
|
|
|
(2,631,984)
|
|
|
|
(943,139)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
-
|
|
|
|
(821)
|
|
Net cash used in
investing activities from continuing
operations
|
|
|
-
|
|
|
|
(821)
|
|
Net cash used in
investing activities from discontinued
operations
|
|
|
-
|
|
|
|
-
|
|
Net cash used in
investing activities
|
|
|
-
|
|
|
|
(821)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of ordinary shares
|
|
|
-
|
|
|
|
667,901
|
|
Proceeds from related
parties
|
|
|
373,130
|
|
|
|
100,292
|
|
Proceeds from
short-term borrowings
|
|
|
2,541,925
|
|
|
|
-
|
|
Proceeds from
short-term borrowings – related party
|
499,980
|
|
|
|
-
|
|
Repayments to related
parties
|
|
|
(17,391)
|
|
|
|
(657,538)
|
|
Net cash provided
by financing activities from continuing
operations
|
|
|
3,397,644
|
|
|
|
110,655
|
|
Net cash used in
financing activities from discontinued
operations
|
|
|
-
|
|
|
|
(120,110)
|
|
Net cash provided
by/(used in) financing activities
|
|
|
3,397,644
|
|
|
|
(9,455)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash
equivalents
|
|
|
(26,731)
|
|
|
|
82,662
|
|
Net change in cash
and cash equivalents
|
|
|
738,929
|
|
|
|
(870,753)
|
|
Cash and cash
equivalents, beginning of the period
|
|
|
664,605
|
|
|
|
2,076,569
|
|
Cash and cash
equivalents, end of the period
|
|
|
1,403,534
|
|
|
|
1,205,816
|
|
Less cash and cash
equivalents of discontinued
operations–end of period
|
|
|
-
|
|
|
|
366,606
|
|
Cash and cash
equivalents of continuing operations–
end of period
|
|
$
|
1,403,534
|
|
|
$
|
839,210
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
12,740
|
|
|
$
|
-
|
|
The accompanying notes are an integral part of these unaudited
consolidated financial statements
View original
content:https://www.prnewswire.com/news-releases/agm-group-announces-third-quarter-2021-unaudited-financial-results-301436999.html
SOURCE AGM Group Holdings Inc.