TIAN RUIXIANG Holdings Ltd Reports Financial Results for Fiscal Year Ended October 31, 2023
BEIJING, July 17, 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 fiscal year ended October 31, 2023.
Ms. Sheng Xu, the Chief Executive Officer of the Company, commented, "For the year ended October 31, 2023, the Company generated revenue of about $1.2 million, representing an 8.0% decrease compared to the prior year's revenue. This decline was primarily attributable to the lower commissions from several insurance products and loss of certain insurance company partners amid an increasingly competitive market and challenging macroeconomic environment in China."
"However, we achieved a significant increase of approximately $612,000 in the commissions from our liability insurance products, driven by our efforts to expand our liability insurance business."
"Despite the revenue decline, we were able to reduce the net loss by 47.6% to $2.5 million, down from $4.7 million in the prior year. Overall, while we faced headwinds in certain insurance products, we were able to drive substantial growth in the liability insurance commissions, which is a positive indicator for the Company's strategic focus. Additionally, the reduction in the net loss demonstrates improved financial performance and operational efficiency compared to the prior year."
Selected Fiscal Year 2023 Financial Metrics
Years Ended October 31, Changes in
------------------------ ----------------------------- ----------
($ in millions, except
per share data,
differences due to
rounding.) 2023 2022 Percentage
------------------------ -------------- ------------- ----------
Revenues $ 1.2 $ 1.4 (8.0)%
------------------------- ---------- --------- ----------
Total operating expenses 4.3 6.4 (33.6)%
------------------------- ---------- --------- ----------
Loss from operations (3.0) (5.1) (40.5)%
------------------------- ---------- --------- ----------
Net loss (2.5) (4.7) (47.6)%
------------------------- ---------- --------- ----------
Loss per share (3.87) (9.03) (55.4)%
------------------------- ---------- --------- ----------
--
-- Revenue decreased by 8.0% to $1.2 million for the year ended October 31,
2023, compared with $1.4 million for the same period in 2022.
-- Total operating expenses were $4.3 million for the year ended October 31,
2023, decreased from $6.4 million for the same period in 2022.
-- Loss from operations narrowed by 40.5% to $3.0 million for the year ended
October 31, 2023, from $5.1 million for the same period in 2022.
-- Net loss also decreased by 47.6% to $2.5 million for the year ended
October 31, 2023, from $4.7 million for the same period in 2022.
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: ir@tianrx.com
Wealth Financial Services LLC
Connie Kang
Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 $(CN)$
TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN U.S. DOLLARS)
As of October 31,
----------------------------
2023 2022
----------- -----------
ASSETS
CURRENT ASSETS:
Cash $ 2,383 $ 2,508
Restricted cash 692,692 692,734
Short-term investments 26,797,081 26,179,662
Accounts receivable 18,960 51,202
Note receivable -- 7,500,000
Interest receivable -- 262,192
Due from related party -- 1,369
Other current assets 107,508 168,957
---------- ----------
Total Current Assets 27,618,624 34,858,624
---------- ----------
NON-CURRENT ASSETS:
Note receivable 7,800,000 --
Property and equipment, net 6,280 8,688
Right-of-use assets, operating leases,
net 54,870 143,438
Other non-current assets -- 20,078
---------- ----------
Total Non-current Assets 7,861,150 172,204
---------- ----------
Total Assets $35,479,774 $35,030,828
========== ==========
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Taxes payable $ 623,825 $ 466,878
Salary payable 726,330 424,987
Accrued liabilities and other payables 481,801 384,893
Due to related parties 1,173,510 126,530
Operating lease liabilities 57,402 90,800
---------- ----------
Total Current Liabilities 3,062,868 1,494,088
---------- ----------
NON-CURRENT LIABILITIES:
Operating lease liabilities -
noncurrent portion -- 54,718
---------- ----------
Total Non-current Liabilities -- 54,718
---------- ----------
Total Liabilities 3,062,868 1,548,806
---------- ----------
EQUITY:
TIAN RUIXIANG Holdings Ltd
Shareholders' Equity:
Ordinary shares: $0.025 par value;
40,000,000 shares authorized;
Class A ordinary shares: $0.025 par
value; 36,000,000 shares authorized;
674,949 shares issued and outstanding
at October 31, 2023; 507,440 shares
issued and 505,440 shares outstanding
at October 31, 2022 16,874 12,636
Class B ordinary shares: $0.025 par
value; 4,000,000 shares authorized;
50,000 shares issued and outstanding
at October 31, 2023 and 2022 1,250 1,250
Additional paid-in capital 44,108,774 42,663,012
Less: ordinary stock held in
treasury, at cost; 0 share at October
31, 2023 and 2,000 shares at October
31, 2022 -- --
Accumulated deficit (8,303,691) (5,800,817)
Statutory reserve 275,150 226,253
Accumulated other comprehensive loss (3,681,845) (3,620,712)
---------- ----------
Total TIAN RUIXIANG Holdings Ltd
shareholders' equity 32,416,512 33,481,622
Non-controlling interest 394 400
---------- ----------
Total Equity 32,416,906 33,482,022
---------- ----------
Total Liabilities and Equity $35,479,774 $35,030,828
========== ==========
TIAN RUIXIANG HOLDINGS LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
(IN U.S. DOLLARS)
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