TIAN RUIXIANG Holdings Ltd Reports Financial Results for the Six Months Ended April 30, 2022

BEIJING, Oct. 27, 2022 /PRNewswire/ -- TIAN RUIXIANG Holdings Ltd (Nasdaq: TIRX) (the "Company"), a China-based insurance broker conducting business through its variable interest entity in China, announced today its unaudited financial results for the six months ended April 30, 2022.

Mr. Zhe Wang, Chairman of the board of the directors and Chief Executive Officer of the Company, commented, "The challenging macro environment and disruptions caused by the ongoing regional Covid-19 pandemic restrictions in China has impacted our business. Our revenue decreased by 42.2% for the six months ended April 30, 2022, which was primarily attributable to a significant decrease in the commissions from liability insurance. We executed our strategy to expand our business in commercial property insurance and other insurances to partially offset the decrease in the revenue from liability insurance. We plan to continue attracting new customers and strengthening our relationship with existing customers through our dedicated sales team and high-quality customer services. Looking forward, we remain committed in our business strategy to expand our market share and growth opportunities in the insurance industry in China, while improving our operational efficacy to achieve sustainable development goal and provide long-term returns to our shareholders."

First Half of Fiscal Year 2022 Financial Highlights

	For the Six Months Ended April 30,
($ in millions, except per share data)	2022		2021		% Change
Revenue	0.95		1.64		(42.2) %
Operating expenses	4.83		2.10		129.6 %
Loss from operations	(3.88)		(0.47)		733.6 %
Net loss	(3.50)		(0.40)		767.4 %
Loss per share	(0.28)		(0.06)		366.7 %

• Revenue decreased by 42.2% to $0.95 million for the six months ended April 30, 2022, from $1.64 million for the same period of fiscal year 2021, primarily attributable to a significant decrease in commission from liability insurance of approximately $1.03 million resulting from the loss of insurance company partners, offset by an increase in commission from commercial property insurance of approximately $0.25 million driven by our business expansion and an increase in commission from other miscellaneous insurances of approximately $0.09 million.
• Operating expenses increased by 129.6% to $4.83 million for the six months ended April 30, 2022, from $2.10 million for the same period of fiscal year 2021.
• Net loss was $3.50 million for the six months ended April 30, 2022, compared to $0.40 million for the same period of fiscal year 2021.
• Loss per share was $0.28 for the six months ended April 30, 2022, compared to $0.06 for the same period of fiscal year 2021.

First Half of Fiscal Year 2022 Financial Results

Revenue

Revenue decreased by $0.69 million, or 42.2% to $0.95 million for the six months ended April 30, 2022, from $1.64 million for the same period of fiscal year 2021. This decrease was primarily attributable to a significant decrease in commission from liability insurance of approximately $1.03 million resulting from the loss of insurance company partners, offset by an increase in commission from commercial property insurance of approximately $0.25 million driven by our business expansion and an increase in commission from other miscellaneous insurances of approximately $0.09 million.

Operating Expenses

Third party and related party selling and marketing expenses increased by $0.25 million, or 29.6%, to $1.11 million for the six months ended April 30, 2022, from $0.86 million for the same period of fiscal year 2021. The increase was mainly attributable to an increase in the stock-based compensation of approximately $0.58 million which reflected the value of our ordinary shares granted to our sales professionals, offset by a decrease in marketing fees of approximately $0.33 million due to our decreased marketing activities.

Third party and related party general and administrative expenses increased by $2.47 million, or 198.7%, to $3.71 million for the six months ended April 30, 2022, from $1.24 million for the same period of fiscal year 2021. The increase in general and administrative expenses was primarily attributable to the increased professional fees, compensation and related benefits, rent and related utilities, directors and officers' liability insurance premium expenses, and partially offset by the decreased travel and entertainment, and depreciation and amortization expenses.

Total operating expenses increased by $2.72 million, or 129.6%, to $4.83 million for the six months ended April 30, 2022, from $2.10 million for the same period of fiscal year 2021.

Loss from Operations

Loss from operations was $3.88 million for the six months ended April 30, 2022, compared to $0.47 million for the same period of fiscal year 2021.

Other Income

Other income primarily includes interest income generated by notes receivable and miscellaneous income. Other income, net, was $0.40 million for the six months ended April 30, 2022, compared to $0.07 million for the same period of fiscal year 2021.

Loss before Income Tax

Loss before income tax was $3.48 million for the six months ended April 30, 2022, compared to $0.40 million for the same period of fiscal year 2021.

Income tax expense was $21,410 for the six months ended April 30, 2022, compared to $6,917 for the same period of fiscal year 2021.

Net Loss and Net Loss per Share

Net loss was $3.50 million for the six months ended April 30, 2022, compared to $0.40 million for the same period of fiscal year 2021. After deduction of non-controlling interest, net loss attributable to TIRX ordinary shareholders was $3.50 million, or net loss per share of $0.28 for the six months ended April 30, 2022, compared to $0.40 million, or net loss per share of $0.06 for the same period of fiscal year 2021.

Financial Conditions

At April 30, 2022, the Company had cash and cash equivalents of $29.02 million, compared to $30.02 million at October 31, 2021. Total working capital was $36.52 million at April 30, 2022, compared to $30.51 million at October 31, 2021.

Net cash used in operating activities was $0.08 million for the six months ended April 30, 2022, compared to net cash provided by operating activities of $1.09 million for the same period of fiscal year 2021.

Net cash used in investing activities was $2,436 for the six months ended April 30, 2022, and there were no investing activities for the same period of fiscal year 2021.

Net cash flow provided by financing activities was $0 for the six months ended April 30, 2022, and net cash provided by financing activities was $10.71 million for the same period of fiscal year 2021.

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 automobile insurance, commercial property insurance, liability insurance; and (2) other insurance, such as life insurance and health 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 SEC.

For investor and media enquiries, please contact:

TIAN RUIXIANG Holdings Ltd
Investor Relations Department
Email: [email protected] 

Ascent Investor Relations LLC
Tina XiaoPhone: +1 917-609-0333
Email: [email protected] 

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SOURCE TIAN RUIXIANG Holdings Ltd