Roan Holdings Group Co., Ltd. Reports First Half 2021 Financial Results

BEIJING and HANGZHOU, China, Dec. 31, 2021 /PRNewswire/ -- Roan Holdings Group Co., Ltd. ("Roan" or the "Company") (OTC Pink Sheets: RAHGF and RONWF), a provider of diversified solutions in financial, insurance and healthcare related products and management services, today reported its financial results for the six months ended June 30, 2021.

First Half 2021 Highlights:

• Net revenue of services decreased by 49% year-on-year from $0.65 million to $0.33 million
• Total interest and fee income increased by 11% year-on-year from $1.13 million to $1.27 million during the first half of 2021
• Total cash, equivalents and restricted cash grew from $14.38 million as at June 30, 2020 to $33.19 million as at June 30, 2021
• Working capital increased by $0.56 million to $49.23 million as at June 30, 2021, compared to $48.67 million as at December 31, 2020

Mr. Zhiyong Tang, Chief Executive Officer of Roan, commented, "The first half of fiscal 2021 results affirm the unquestionable value proposition we deliver and the success of our pipelined business strategies. Despite the Covid-19 pandemic having a lasting impact on our operational results, which is reflected in our net revenues of services, which were down by 49% year-on-year to $0.33 million, we managed to expand the total interest and fees income by 11% from $1.13 million to $1.27 million during the first half of 2021. In order to hedge against the unpredictable and continuous impact of the Covid-19 pandemic on our business operations, we continued to focus on upgrading our ability to serve operation of diverse industries via our cooperation resources and marketing channel advantages that have been accumulated over the years. We will actively promote technology empowerment and cross-platform cooperation strategies, which are core to the development of our cultural tourism and big health ecosystem-related business. Such initiatives will lay solid foundation for our financial performance next year and have already helped us contain net loss at $0.53 million during the first half of 2021."

"We entered into several joint venture partnerships with cultural tourism, health technology, new energy and multimedia technology partners during the past several months in our commitment to engage in the upside trend of global health and cultural tourism consumption, and new energy storage industries and to further improve our product and service roadmap for individual and household consumers, as well as for emerging industries alike."

"Through strategic restructuring, core technology and product acquisition, and corporate team consolidation and optimization, we managed to increase our business development momentum and commercialization efficiency. We hired senior advisors with extensive experience from top tier institutions to guide and streamline our current and future business trajectory."

"Moving into the fiscal year 2022, we remain committed to providing industrial operation services by leveraging our cooperation channels and marketing resources. We are confident that by securing core technologies that help improve household consumption quality, providing professional services and innovative products, our strategies will further enable our growth, thus providing long-term values to our shareholders," concluded Mr. Tang.

First Half 2021 Financial Results

Revenues

The following table presents our consolidated revenues for our main services for the six months ended June 30, 2021 and 2020, respectively:

Management and assessment services

Revenues from management and assessment services was $nil and $0.02 million for the six months ended June 30, 2021 and 2020, respectively. The primary reason of the decrease was that revenue from management and assessment services recorded during the six months ended June 30, 2020 was from the contracts obtained in 2019. Due to the change of our business focus, we did not engage in management and assessment services during the six months ended June 30, 2021 and 2020.

Consulting services relating to debt collection

Revenue from consulting services relating to debt collection was $0.33 million for the six months ended June 30, 2021, a decrease of $0.30 million, or 48%, as compared to $0.63 million for the same period of last fiscal year, which was mainly due to the negative impact of the COVID pandemic.

Revenue from healthcare service packages

Revenue from the health care service packages was $nil and $0.05 million for the six months ended June 30, 2021 and 2020, respectively.

Commission and fees on financial guarantee services

Commission and fees on financial guarantee services was $0.19 million and $0.18 million for the six months ended June 30, 2021 and 2020, respectively. There was a minor change for business development.

Provision for financial guarantee services

Provisions for financial guarantee services was $0.02 million for the six months ended June 30, 2021, as compared to recovery of provision for financial guarantee services of $0.04 million for the same period of last fiscal year.

Interest and fee income

Interest and fee income was $1.27 million, an increase of $0.14 million, or 11% for the six months ended June 30, 2021 as compared to $1.13 million for the same period of 2020. The increase was mainly due to an increase of $0.06 million in interest income from loans due from third parties and an increase of $0.08 million in interest income on deposits with banks.

Operating expenses

Operating expenses decreased by $0.33 million, or 14%, to $2.11 million for the six months ended June 30, 2021, as compared to $2.44 million for the same period of last fiscal year. 

Income/loss from operations 

Loss from operations was $0.47 million for the six months ended June 30, 2021, an increase of $0.05 million compared to $0.42 million for the same period of fiscal year 2020.

Net loss

As a result of the above mentioned, we had a net loss of $0.53 million for the six months ended June 30, 2021, as compared to $0.25 million for the same period of last fiscal year.

Cash and cash equivalents

Cash and cash equivalents were $2.26 million as at June 30, 2021, reflecting a decrease of $2.67 million from $4.93 million as at December 31, 2020, primarily because of the repayment of bank loan of $2.94 million during the six months ended June 30, 2021.

Restricted cash in banks and other financial institutions increase by $5.06 million, from $25.87 million as of December 31, 2020 to $30.93 million as of June 30, 2021.

Working capital

Our working capital was $49.23 million as of June 30, 2021, an increase of $0.56 million, as compared to $48.67 million as of December 31, 2020, mainly due to a decrease in current liabilities during the six months ended June 30, 2021.

Recent developments

On December 20, 2021, the Company announced the appointment of Ms. Guiling Sun and Mr. Xiaoliang Liang as members of the Board, effective immediately. Mr. Liang also serves as the chair of the Nominating/Corporate Governance Committee

On November 18, 2021, the Company announced that its subsidiary,  FINE C+ Interactive Technology (Hangzhou) Limited, has signed a cooperation agreement with Beijing Liuxinghuoyu Technology Co., Ltd., a subsidiary of Harvest Horn (Beijing) Marketing Co., Ltd., to set up an entertainment technology joint venture focusing on expanding its theme park business. On December 22, 2021, FINE C+ Entertainment Technology (Hangzhou) Limited was registered in Hangzhou.

On November 15, 2021, the Company announced that its subsidiary, Yifu Health Industry (Ningbo) Co., Ltd., has signed a cooperation agreement with Hangzhou Weiche Info Tech Co., Ltd., a national high-tech company focused on the travel services and parking payment realization services, in order to further the development of Roan's growth strategies on its lifestyle consumer services business.

On October 18, 2021, the Company announced that it has signed a cooperation agreement with Flourishing Technology Inc. and media interactive technology experts to set up a joint venture, FINE C+ Interactive Technology (Hangzhou) Limited, to jointly develop cultural and tourism services, education development industry business and personal finance services.

On October 14, 2021, the Company announced that its subsidiary, Yifu Health Industry (Ningbo) Co., Ltd. has signed a cooperation agreement with Smart Cloud Technologies Holding (Beijing) Co., Ltd., a blockchain and AI healthcare data security solutions provider, and Shanghai Jingmu Information Technology Co. Ltd., a critical disease medical consultation firm, to set up a joint venture to provide online medical consultation and traditional Chinese targeting international  health markets.

On September 30, 2021, the Company announced that it has signed a cooperation agreement with Shenzhen Geile Information Technology Co., Ltd. ("Harvest", formerly called "Shenzhen Harvest Business Ltd., Co."), a leading consumer reward rights and interests system operator in China, to jointly set up a consumer payment technology joint venture that offers lifestyle consumer services including cross-platform clearing and settlement services for consumer reward rights and interests.

On August 31, 2021, the Company announced the appointment of Mr. Zhiyong Tang as Chief Executive Officer; Mr. Wenhao Wang as Chief Financial Officer; Mr. Yuebo Zhang as Executive President, taking charge of the Company's consumer services and international business and Mr. Fengsong Wan as Senior Vice Presidents, responsible for Company's healthcare business. Concurrent with Mr. Tang's appointment, Mr. Junfeng Wang resigned his position as Chief Executive Officer.

On August 12, 2021, the Company announced the appointment of Mr. Junfeng Wang as Chairman of the Board. Mr. Wang is the Chief Executive Officer of the Company. Simultaneously with the appointment, Mr. Zhigang Liu resigned from his position as Chairman of the Board due to personal reasons.

On July 27, 2021, the Company announced that it has signed a cooperation agreement with a travel service provider in China, Beijing Auvgo International Travel Technology Co. Ltd., to form a joint venture, Zhejiang Yijia Travel Digital Technology Co. Ltd., to jointly develop business travel services.

About Roan Holdings Group Co., Ltd.

Founded in 2009, Roan Holdings Group Co., Ltd. (OTC Pink: RAHGF and RONWF) is a financial, insurance and healthcare related solutions company serving individuals and micro-, small- and medium-sized enterprises ("MSMEs") in China. Roan provides health management, assets management, and insurance, healthcare and consumer financing services to employees of large institutions. Roan has offices in Hangzhou and Beijing and subsidiaries in Hangzhou, Ningbo, Guangzhou, Shaoxing, Urumqi 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. Such statements are based upon management's current expectations of the consummation of the proposed transaction, 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. 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. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

IR Contact:

At the Company:
Katrina Wu
Email: xiaoqing.wu@roanholdingsgroup.com
Phone: +86-571-8662 1775

Investor Relations Firm:

Janice Wang
EverGreen Consulting Inc.
Email: IR@changqingconsulting.com
Phone: +1 571-464-9470 (from U.S.)
+86 13811768559 (from China)