BEIJING, Aug. 16, 2024 (GLOBE NEWSWIRE) -- TIAN RUIXIANG Holdings Ltd (NASDAQ:TIRX) (the "Company"), a China-based insurance broker conducting business through its variable interest entity in China, today announced its financial results for the half year ended April 30, 2024.
Ms. Sheng Xu, the Chief Executive Officer of the Company, commented, "The Company reported a net loss of approximately $2.6 million for the six months ended April 30, 2024, primarily due to a significant decline in revenue caused by the loss of a few key insurance company partners. However, we are encouraged by the increase in the commissions from liability insurance of approximately $24,000 compared to the same period in 2023, indicating our success in expanding our liability insurance business."
"We are actively pursuing strategies, such as expanding into the Hong Kong insurance brokerage market and diversifying our client base, to mitigate the impact of the lost partnerships and improve the Company's financial performance in the future."
Selected Half Year 2024 Financial Metrics
Six Months Ended April 30,
Changes in
($ in millions, except per share data, differences due to rounding.)
2024
2023
Percentage
Revenues
$
0.2
$
0.7
(75.4)
%
Total operating expenses
3.1
2.7
18.4
%
Loss from operations
(3.0)
(1.9)
53.7
%
Net loss
(2.6)
(1.5)
75.3
%
Revenue
Revenue for the six months ended April 30, 2024 totaled $0.2 million, a decrease of $0.5 million, or 75.4%, compared with $0.7 million for the six months ended April 30, 2023. This significant decrease was primarily attributable to the loss of certain insurance company partners.
Operating Expenses
During the six months ended April 30, 2024 and 2023, operating expenses included selling and marketing expenses and general and administrative expenses.
Selling and marketing expenses amounted to $1.2 million for the six months ended April 30, 2024, as compared to $1.6 million for the six months ended April 30, 2023, a decrease of $0.4 million, or 26.5%. The decrease was mainly attributable to a decrease in advertising costs and other miscellaneous items.
General and administrative expenses amounted to $2.0 million for the six months ended April 30, 2024, as compared to $1.1 million for the six months ended April 30, 2023, an increase of $0.9 million, or 83.0%.
Loss from Operations
As a result of the foregoing, for the six months ended April 30, 2024, loss from operations amounted to $3.0 million, as compared to $1.9 million for the six months ended April 30, 2023.
Net Loss
As a result of the factors described above, net loss was $2.6 million for the six months ended April 30, 2024, as compared to $1.5 million for the six months ended April 30, 2023, a change of $1.1 million, or 75.3%.
About TIAN RUIXIANG Holdings Ltd
TIAN RUIXIANG Holdings Ltd, headquartered in Beijing, China, is an insurance broker operating in China through its China-based variable interest entity. It distributes a wide range of insurance products, which are categorized into two major groups: (1) property and casualty insurance, such as commercial property insurance, liability insurance, accidental insurance, and automobile insurance; and (2) other types of insurance, such as health insurance, life insurance, and other miscellaneous insurance. For more information, visit the company's website at http://ir.tianrx.com/.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. 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 the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review risk factors that may affect its future results in the Company's registration statement and in its other filings with the U.S. Securities and Exchange Commission.
For investor and media enquiries, please contact:
TIAN RUIXIANG Holdings Ltd Investor Relations Department Email:
Wealth Financial Services LLC Connie Kang Partner Email: +86 1381 185 7742 (CN)
TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(IN U.S. DOLLARS)
As of
April 30, 2024
October 31, 2023
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash
$
27,456,502
$
2,383
Restricted cash
700,530
692,692
Short-term investments
—
26,797,081
Accounts receivable
7,844
18,960
Other current assets
90,333
107,508
Total Current Assets
28,255,209
27,618,624
NON-CURRENT ASSETS:
Right-of-use assets, operating leases, net
61,518
54,870
Note receivable
7,800,000
7,800,000
Interest receivable
78,000
—
Property and equipment, net
5,605
6,280
Intangible assets, net
1,766,961
—
Total Non-current Assets
9,712,084
7,861,150
Total Assets
$
37,967,293
$
35,479,774
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Acquisition payable
$
1,875,002
$
—
Operating lease liabilities
24,892
57,402
Taxes payable
626,150
623,825
Salary payable
