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Nisun International Enterprise Development Group Co., Ltd Reports Full Year 2024 Financial Results

1. Nisun reported $340.2 million in revenue for 2024, down 12%. 2. Net income fell to $5.9 million; EPS declined to $1.43. 3. Cash position at $45 million supports future growth plans. 4. Economic slowdown affected SME financing and supply chain trading. 5. Expansion into the gold industry increased financing revenue by $1.9 million.

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Why Bearish?

Nisun's significant revenue decline and decreased net income signal fragility. Historical trends show similar revenue drops often lead to short-term stock price declines.

How important is it?

The significant decrease in revenue and net income directly impacts investor sentiment. The drop in key financial metrics indicates potential operational challenges.

Why Short Term?

The immediate reaction from market participants will likely be negative due to disappointing results. Long-term growth potential may recover, but short-term forecast appears bleak.

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NASDAQ: NISNNASDAQ: RYINASDAQ: BOXL
Highlights Positive Earnings Per Share and Substantial Cash Position of $11.11/share Amidst Challenging Economic Environment , /PRNewswire/ -- Nisun International Enterprise Development Group Co., Ltd ("Nisun International" or the "Company") (NASDAQ: NISN), a technology and industry-driven financing solutions provider and an integrated supply chain solutions provider, today announced its financial results for the full year ended December 31, 2024. Recent Achievements and Highlights (as reported in the 20-F): Reported total revenue of $340.2 million for the year ended December 31, 2024. Achieved net income of $5.9 million and positive earnings per share of $1.43 for the year ended December 31, 2024, including non-cash expenses of $9.2 million related to share-based compensation and $5.0 million related to provisions for bad debts. Maintained a substantial cash, cash equivalents, and restricted cash balance of $45.0 million as of December 31, 2024. Continued investment in technology, talent, content, brand recognition, customer base expansion, and other initiatives. Successfully navigated challenges posed by the economic slowdown in 2024 by scaling down bulk trading volume to minimize losses. Management Commentary Mr. Xin Liu, Chief Executive Officer of Nisun International, commented on the results, "The 2024 fiscal year presented a challenging operating environment, primarily due to the economic slowdown in China. This broad economic shift led to a more cautious approach from individual investors who fund SME financings, prompting SMEs themselves to reduce their corporate finance activities to minimize risk. As a provider of technology-driven customized financing solutions to SMEs, this environment directly impacted our SME financing solutions revenue, which saw a decline. Similarly, the economic slowdown and the high volatility in commodity market prices affected our supply chain trading revenues, particularly in bulk trading, where we strategically scaled down volume to manage potential losses." Mr. Liu continued, "Despite these headwinds affecting our financial performance in 2024, we remain focused on our long-term strategy and believe we are well-positioned for future growth. Our comprehensive technology-driven integrated supply chain financing solutions services, launched in January 2020, and our supply chain trading business, launched in July 2021 by leveraging our high-quality customer base and resources from supply chain financing solutions, are integral to our future. In the second half of 2024, we expanded our supply chain financing business into the gold industry, resulting in a $1.9 million increase in supply chain financing revenue compared to the first half of the year. We are actively building a solid pipeline of demand from our supply chain management and commodity trading customers. We believe this focus on integrated solutions will generate much higher margin technology financing solutions business in the future once investor risk appetite recovers and market conditions improve. Our substantial cash position also provides a solid foundation as we navigate the current economic climate and invest for the future." Full Year 2024 Financial Results Summary For the year ended December 31, 2024, Nisun International reported total revenue of $340.2 million, a decrease of approximately 12% from $386.7 million in the prior year. The decline was primarily attributable to decreases in revenue from SME financing solutions services and supply chain trading, driven by the economic slowdown and market volatility. Cost of revenue for the year ended December 31, 2024, was $309.3 million, down 11% from $346.7 million in 2023, primarily reflecting the reduction in supply chain trading volume. Gross profit was $30.9 million in 2024, a decrease of 23% from $39.9 million in 2023. The decline in gross profit was mainly due to the decrease in revenue, impacting SME financing services, supply chain financing solution services, and the supply chain trading business. Income from operations for 2024 was $3.6 million, a decrease of 81% from $18.8 million in 2023. Net income for fiscal year 2024 was $5.9 million, compared to $17.7 million for fiscal year 2023. Net income per share for fiscal year 2024 was $1.43, compared to $4.46 for fiscal year 2023. As of December 31, 2024, the Company had cash, cash equivalents, and restricted cash of $45.0 million. Net cash used in operating activities was approximately $75.7 million in 2024, primarily reflecting higher advance deposits to key suppliers and other working-capital investments that position Nisun international to secure inventory and fulfill expanding customer demand. Management views this outflow as a strategic deployment of capital that lays the groundwork for future revenue growth and higher-margin opportunities as market conditions improve. About Nisun International Enterprise Development Group Co., Ltd. Nisun International Enterprise Development Group Co., Ltd (NASDAQ: NISN) is a technology-driven, integrated supply chain solutions provider focused on transforming the corporate finance industry. Leveraging its industry experience, Nisun International is dedicated to providing professional supply chain solutions to Chinese and foreign enterprises and financial institutions. Through its subsidiaries, Nisun International provides users with professional solutions for technology supply chain management, technology asset routing, and digital transformation of tech and finance institutions, enabling the industry to strengthen and grow. At the same time, Nisun International continues to deepen the field of industry segmentation through industrial and financial integration. Focusing on industry-finance linkages, Nisun International aims to serve the upstream and downstream of the industrial supply chain while also assisting with supply-side sub-sector reform. For more information, please visit http://ir.nisun-international.com/ Cautionary Note Regarding Forward-Looking Statements This press release contains information about Nisun International's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Nisun International encourages you to review other factors that may affect its future results in Nisun International's registration statement and in its other filings with the Securities and Exchange Commission. Nisun International assumes no obligation to update or revise its forward-looking statements as a result of new information, future events or otherwise, except as expressly required by applicable law. NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (EXPRESSED IN US DOLLARS) December 31,2024 December 31,2023  ASSETS  CURRENT ASSETS:      Cash and cash equivalents $ 45,021,759 $ 114,454,844      Restricted cash - 197,096      Short-term investments 6,882,714 12,788,629      Accounts receivable, net 54,444,438 21,120,795      Derivative asset 1,996,340 -      Advance to suppliers, net 92,304,699 38,602,304      Receivables from supply chain solutions 23,978,130 59,167,029      Inventories 806,821 30,953,583      Due from related party 1,665 -      Prepaid expenses and other current assets 25,892,681 16,018,778 TOTAL CURRENT ASSETS 251,329,247 293,303,058 NON-CURRENT ASSETS:       Property and equipment, net 358,038 881,276       Intangible assets, net 205,032 882,828       Right-of-use assets, net 1,608,591 2,384,590       Equity investments 457,417 368,528       Goodwill 17,050,800 17,659,983       Deferred tax assets, net 412,161 418,571 TOTAL NON-CURRENT ASSETS 20,092,039 22,595,776 TOTAL ASSETS $ 271,421,286 $ 315,898,834 LIABILITIES CURRENT LIABILITIES:        Accounts payable $ 34,630,781 $ 45,463,753        Short-term bank loans 5,274,478 1,971,859        Accrued expenses and other current liabilities 2,930,782 7,245,358       Operating lease liabilities - current 948,561 861,087       Payables to supply chain solutions 4,229,793 12,947,708       Advances from customers 7,528,352 38,153,915       Taxes payable 3,642,427 4,145,920       Liabilities of financial guarantee 21,725 22,335       Due to related parties - current 267,149 274,652 TOTAL CURRENT LIABILITIES 59,474,048 111,086,587 NON-CURRENT LIABILITIES       Operating lease liabilities – non-current 818,128 1,643,076       Deferred tax liabilities - 114,650 TOTAL NON-CURRENT LIABILITIES 818,128 1,757,726 TOTAL LIABILITIES 60,292,176 112,844,313 SHAREHOLDERS' EQUITY*:       Class A common stock, $0.01 par value, 30,000,000 and          30,000,000 shares authorized, 4,725,096 and 4,017,596 shares          issued, and 4,538,358 and 3,952,198 shares outstanding as of          December 31, 2024 and 2023, respectively 47,251 40,176       Class B common stock, $0.01 par value, 1,000,000 shares          authorized, no shares issued and outstanding as of December 31,          2024 and 2023 - -      Treasury shares (1,253,012) (261,592)      Additional paid-in capital 139,712,207 130,535,082      Retained earnings 72,517,990 68,395,637      Statutory reserves 13,229,313 11,564,250      Accumulated other comprehensive loss (17,491,069) (11,474,682) COMMON SHAREHOLDERS' EQUITY 206,762,680 198,798,871       Non-controlling interests 4,366,430 4,255,650 TOTAL SHAREHOLDERS' EQUITY 211,129,110 203,054,521 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 271,421,286 $ 315,898,834  * The financial statements give retroactive effect to the May 18, 2023 one-for-ten reverse share split. NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (EXPRESSED IN US DOLLARS) For the Year Ended December 31, 2024 2023 2022 REVENUES: Revenue generated from services: Small and Medium Enterprise financing solutions $ 84,320,613 $ 101,823,899 $ 87,269,959 Supply Chain financing solutions 5,712,543 6,153,645 3,542,592       Total revenue generated from services 90,033,156 107,977,544 90,812,551 Revenue generated from sales:       Supply chain trading business 250,186,390 278,693,355 143,361,714 Total revenues 340,219,546 386,670,899 234,174,265 COST OF REVENUE: Cost of revenue - services (58,819,396) (68,154,833) (55,472,076) Cost of revenue - sales (249,887,524) (278,002,800) (140,880,063) Business and sales related taxes (600,605) (527,336) (772,830) Total cost of revenue (309,307,525) (346,684,969) (197,124,969) GROSS PROFIT 30,912,021 39,985,930 37,049,296 OPERATING EXPENSES: Selling expenses (1,504,002) (1,525,692) (1,977,617) General and administrative expenses (19,247,560) (10,859,011) (10,511,542) Research and development expenses (1,414,437) (1,093,457) (1,563,718) Bad debt expense (5,037,951) (2,215,016) (4,509,634) Goodwill Impairment Loss (128,577) (5,488,816) (777,329)       Total operating expenses (27,332,527) (21,181,992) (19,339,840) INCOME FROM OPERATIONS 3,579,494 18,803,938 17,709,456 OTHER INCOME: Interest and investment income 1,662,646 2,557,588 2,790,768 Other income , net 320,955 2,159,301 2,021,688       Total other income, net 1,983,601 4,716,889 4,812,456 INCOME BEFORE PROVISION FOR INCOME TAXES 5,563,095 23,520,827 22,521,912 PROVISION FOR INCOME TAXES (4,527,081) (5,817,147) (4,741,854) NET INCOME FROM CONTINUING OPERATIONS 1,036,014 17,703,680 17,780,058 DISCONTINUED OPERATIONS: GAIN FROM DISCONTINUED OPERATIONS 4,863,777 - - NET (LOSS) FROM DISPOSAL OF    SUBSIDIARIES IN DISCONTINUED    OPERATIONS, NET OF TAX 4,863,777 - - NET INCOME 5,899,791 17,703,680 17,780,058 Net income attributable to non-controlling interests (112,375) (125,942) (159,246) NET INCOME - Nisun International's shareholders $ 5,787,416 $ 17,577,738 $ 17,620,812 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation loss (6,017,982) (4,536,797) (12,576,380) COMPREHENSIVE (LOSS) INCOME (230,566) 13,040,941 5,044,432 Comprehensive loss attributable to non-controlling interests 1,595 65 6,231 COMPREHENSIVE (LOSS) INCOME $ (228,971) $ 13,041,006 $ 5,050,663 BASIC AND DILUTED EARNINGS PER COMMON SHARE: NET EARNINGS PER COMMON SHARE $ 1.43 $ 4.46 $ 4.42 Weighted average number of shares outstanding-basic and diluted* 4,053,108 3,943,793 3,986,359 * The financial statements give retroactive effect to the May 18, 2023 one-for-ten reverse share split. NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 and 2022 (EXPRESSED IN US DOLLARS) 2024 2023 2022   CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 5,899,791 $ 17,703,680 $ 17,780,058     Adjustments to reconcile net income to net cash        provided by (used in) operating activities:        Depreciation and amortization 1,719,709 2,238,222 2,113,732        Stock-based compensation - - 125,630        Shares issued for compensation 9,184,200 31,808 185,000        Bad debt expense 5,037,951 2,215,016 4,509,634        Impairment of goodwill 128,577 5,488,816 777,329        Loss on disposition of property and equipment 217,351 - 1,385        Income from investments (36,604) (365,359) (541,578)        Deferred tax (benefit) expense (118,220) (710,672) 271,907        Derivative asset (182,232) - -        Repurchase Treasury shares 64,080 - -        Changes in operating assets and liabilities:            Accounts receivable (34,574,649) (3,086,600) (2,075,274)            Advance to suppliers, net (56,157,685) 7,282,068 (39,859,386)            Prepaid expenses and other current assets (8,653,076) (5,511,142) (4,734,501)            Receivables from supply chain solutions 33,997,219 (18,651,357) 11,372,841            Inventories 29,767,783 (246,818) (25,530,993)            Accounts payable (11,218,937) 5,722,300 7,693,011            Advance from customers (35,241,476) 16,986,750 19,085,377            Taxes payable (395,174) 1,478,316 (5,574,048)            Other payables (5,604,548) 3,232,387 -            Payable to supply chain solutions (9,165,567) 4,096,141 (15,198,883)            Operating lease liabilities (730,895) (834,381) (855,242)            Accrued expenses and other current liabilities 374,477 (1,569,395) 1,501,078 NET CASH (USED IN) PROVIDED BY     OPERATING ACTIVITIES (75,687,925) 35,499,780 (28,952,923) CASH FLOWS FROM INVESTING ACTIVITIES:        Acquisition of property and equipment (26,677) (503,957) (652,585)        Purchase of intangible assets (4,326) (44,029) (74,710)        Cash paid in connection with acquisition, net of            cash received - - (530,322)        Proceeds from sale of short-term investments 44,830,237 103,458,984 78,595,280        Proceeds from sale of Derivative asset 487,609 - -        Proceeds from sale of Long-term investment - 7,061,233 -        Proceeds from investment in debt securities - 14,366,013 -        Proceeds from disposal of property and equipment 159,086 - -        Purchase of short-term investments (39,050,962) (104,365,028) (51,567,746)        Purchase of Derivative asset (1,735,531) - -        Purchase of Long-term investments - - (7,430,511)        Purchase of equity investees (125,074) - -        Sale of a business, net of cash and cash equivalents           sold 434,174 71,514 -        Repayments from loans to third parties 2,516,772 - -        Loans to third parties (1,474,264) (229,161) (501,905) NET CASH PROVIDED BY INVESTING     ACTIVITIES 6,011,044 19,815,569 17,837,501 CASH FLOWS FROM FINANCING ACTIVITIES:       Proceeds from short-term bank loans 5,350,399 1,553,471 445,831       Proceeds from third-party loans - 1,977,145 36,770,626       Repayment of short-term bank loans (2,116,345) (29,961) (1,239,983)       Repayment of third-party loans (2,918,399) (2,277,954) (41,491,973)       Proceeds from related parties - - (10,097)       Repayment of loan from related parties - (8,028,965) (2,500,000)       Purchase of treasury shares (1,055,500) 94,252 (355,844)       Capital contribution from non-controlling interest - (35,290) 37,116 NET CASH USED IN FINANCING ACTIVITIES (739,845) (6,747,302) (8,344,324) EFFECT OF EXCHANGE RATE CHANGE ON    CASH AND CASH EQUIVALENTS 786,545 (1,234,680) (4,848,722) NET (DECREASE) INCREASE IN CASH AND    CASH EQUIVALENTS (69,630,181) 47,333,367 (24,308,468) CASH AND CASH EQUIVALENTS AND    RESTRICTED CASH FROM CONTINUING    OPERATIONS-BEGINNING 114,651,940 67,318,573 91,627,041 CASH AND CASH EQUIVALENTS AND    RESTRICTED CASH FROM CONTINUING    OPERATIONS-ENDING $ 45,021,759 $ 114,651,940 $ 67,318,573 SUPPLEMENTAL CASH FLOW DISCLOSURES:       Cash paid for income taxes $ 5,673,350 $ 4,530,963 $ 10,385,495       Cash paid for interest $ 170,745 $ 29,961 $ 496,932 SUPPLEMENTAL DISCLOSURE OF NON-CASH     ACTIVITIES:        Repayment payable for business disposition - 279,037 -        Receivable from disposal of subsidiary $ - $ - $ 289,973              Lease liabilities arising from obtaining right-                of-use assets 402,209 295,220 4,070,163        Issuance of shares for share-based compensation $ 700,000 $ - $ - CASH AND CASH EQUIVALENTS FROM    CONTINUING OPERATIONS ARE    COMPRISED OF THE FOLLOWING: Cash and cash equivalents $ 45,021,759 $ 114,454,844 $ 63,901,329 Restricted cash - 197,096 3,417,244 Total cash, cash equivalents and restricted cash $ 45,021,759 $ 114,651,940 $ 67,318,573 SOURCE Nisun International Enterprise Development Group Co., Ltd WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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