Full Year 2024 Nisun International Enterprise Development Group Co Ltd Earnings Call

Operator: Good day and welcome to the Nisun International Investor Call. Today's conference is being recorded.

Operator: Good day, welcome to the Nisun International Investor Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Spring Wu, Investor Relations Director. Please go ahead.

Good day, and welcome to the Nissan International Investor call.

Today's conference is being recorded.

Spring Liu: At this time, I would like to turn the conference over to Spring Liu, Investor Relations Director. Please go ahead. Thank you operator and a good day everyone.

Spring Liu: At this time I would like to turn the conference over to spring Liu Investor Relations Director. Please go ahead.

Spring Wu: Thank you, operator, and good day, everyone. Welcome to Nisun International's full year 2024 financial results conference call. Joining us today are Mr. Xin Liu, Chief Executive Officer, and Ms. Changjun Liang, Chief Financial Officer of the company. We are excited to discuss our performance for 2024 and our outlook for the future. Before we begin, I would like to remind everyone that today's discussion may contain forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended. These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. For a detailed discussion of these risks, please refer to our filings with the Securities and Exchange Commission, including our annual report on Form 20-F.

Spring Liu: Thank you operator, and a good one and good day, everyone welcome to nascent international full year 'twenty 'twenty four financial results conference call.

Spring Liu: Welcome to Nisun International's full year 2024 financial results conference call.

Spring Liu: Joining us today are Mr. Liu Xin, Chief Executive Officer, and Ms. Liang Changjun, Chief Financial Officer of the company. We are excited to discuss our performance for 2024 and our outlook for the future. Before we begin, I would like to remind everyone that today's discussion may contain forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended. These statements are subject to risk, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied.

Speaker Change: Joining us today are Mr. Lou <unk>, Chief Executive Officer, and it May Yan Jin Chief Financial Officer of the company.

Speaker Change: We are excited to discuss our performance for 'twenty 'twenty, four and our outlook for the future.

Speaker Change: Before we begin I would like to remind everyone that today's discussion may contain forward looking statements within the meaning of the Securities Act of 19th That'd be great and the Securities Exchange Act of $19 34.

Speaker Change: The mandate.

Speaker Change: These statements are subject to risk and uncertainty.

Speaker Change: And other factors that could cause actual result to differ materially from those expressed or implied.

Spring Liu: For a detailed discussion of these risks, please refer to our filings with the Securities and Exchange Commission, including our annual report on Form 20-S. Nisun International does not undertake any obligation to update forward-looking statements except as required by law.

Speaker Change: Well a detailed discussion of these risks please refer to our filings with Securities and Exchange Commission.

Speaker Change: Including our annual report on form.

Speaker Change: And he asks.

Spring Wu: Nisun International does not undertake any obligation to update forward-looking statements except as required by law. On behalf of the company's management, I'm delighted to provide an operating and financial summary of the company for 2024. At Nisun International, we are proud to be a leading technology-driven, integrated financial solution and supply chain solution provider, aiming to transform the corporate financing landscape for Small and Medium-sized Enterprises, called SMEs, in China. Our mission is to empower business with innovative financing and supply chain solutions, leveraging our expertise in technology, industry integration, and financial services to drive growth and efficiency. 2024 was a year of resilience and strategic focus for Nisun International. According to the National Bureau of Statistics of China's economy experienced a deceleration in economic growth during Q2 and Q3 of 2024.

Speaker Change: It makes it international does not undertake any obligation to update forward looking statements, except as required by law.

Spring Liu: On behalf of the company's management, I'm delighted to provide an operating and financial summary of the company for 2024. At Nisun International, we are proud to be a leading technology-driven, integrated financial solution and supply chain solution provider. Aiming to transform the corporate financing landscape for small and medium-sized enterprises called SMES in China. Our mission is to empower business with innovative financing and supply chain solutions. Leveraging our expertise in technology, industry integration, and financial services to drive growth and efficiency.

Speaker Change: On behalf of the company's management I'm delighted to provide an operating and the financial summary of the company for 'twenty to 'twenty four.

Speaker Change: At Mason International they are proud to be a leading technology, driven integrated financial solutions and its supply chain solution provider.

Speaker Change: Aiming to transform the corporate financing landscape, so both small and medium sized enterprises.

Speaker Change: Got it and he is in China.

Speaker Change: Our mission is to empower business with inno threes financing and its supply chain solutions.

Speaker Change: Leveraging our ex VITAS.

Speaker Change: Kai you can pick authority in that street integration and in financial services to drive growth and efficiency.

Spring Liu: 2024 was a year of resilience and strategic focus for Nisun International. According to the National Bureau of Statistics of China, China's economy experienced a deceleration in economic growth during the second and the third quarter of 2024. Despite navigating a challenging economic environment in China marked by cautious investment incentives and supply chain commodity market vitality, we maintained strong financial foundations and continued to invest in our long-term growth initiatives. Our robust cash position, technology-driven solutions, and expanding customer base while positioned as exceptional while for a rebound in market conditions.

Speaker Change: He couldn't useful was a year of resilience and strength of geeks focus so Nathan international.

Speaker Change: According to the National Bureau of that pace picks of China.

Speaker Change: China's economy experienced a deceleration in economic growth during the second and third quarter of 'twenty 'twenty four.

Spring Wu: Despite navigating a challenging economic environment in China, marked by cautious investor sentiment and supply chain commodity market volatility, we maintained strong financial foundations and continued to invest in our long-term growth initiatives. Our robust cash position, technology-driven solutions, and expanding customer base well positions us exceptionally well for a rebound in market conditions. We will now walk through our financial results for 2024. In 2024, Nisun International reported total revenue of CNY 340.2 million, a 12% decrease from CNY 386.7 million in 2023. This decline was primarily driven by reduced activities in our SME financing solutions and supply chain trading businesses, reflecting a broad economic slowdown and market volatility in China. Despite these challenges, we achieved a net income attributable to shareholders of CNY 5.8 million or $1.3 per share, compared to CNY 17.6 million or $4.46 per share.

Speaker Change: Despite navigating a challenging economy environment in China.

Speaker Change: Marked by cautious investor sentiment and the supply chain commodity market liquidity, we maintained strong financial foundations and have continued to invest in our long term growth initiatives.

Our robust cash position.

Speaker Change: You noted your Cleveland solutions, and expanding customer base, while positions us exceptionally well for a rebound in market conditions.

Spring Liu: We will now walk through our financial results for 2024. In 2024, Nisun International reported total revenue of $340.2 million. A 12% decrease from $386.7 million in 2023. This decline was primarily driven by reduced activities in our SME financing solutions and supply chain trading businesses. reflecting a broader economic slowdown and market volatility in China. Despite these challenges, we achieved a net income attributable to shareholders of $5.8 million, or $1.3 per share. compared to $17.6 million or $4.46 per share.

Speaker Change: We will now walk through our financial results for 'twenty can do for them.

Speaker Change: In 'twenty Pitney for Nissan International reported total revenue of.

Speaker Change: 340 point to Lilly.

Speaker Change: The 12% decrease.

Speaker Change: 386.7 milling in 'twenty three.

Speaker Change: This decline was primarily driven by reduced activities in our S. M E financing solutions and to supply and trading businesses.

Speaker Change: Reflecting a broad economy slowdown and market volatility in China.

Speaker Change: Despite these challenges we have.

Speaker Change: She's a night income attributable to shareholders.

Speaker Change: 5.8, milling, Oh 1.3 photos push here.

Speaker Change: Compared to 17 6 million.

Speaker Change: For $46 per share.

Spring Liu: In 2023, our ability is in 2024 our ability to remain profitable in a tough environment underscores the resilience of our business model. Cost of revenue for 2024 was $309.3 million. down 11% from $346.7 million in 2023. Aligning with the reduction in supply chain trading volume. Gross profit was $30.9 million, a 20% decrease from $39.9 million in the prior year. Reflecting lower revenues across our key business. Income from operation was $3.6 million compared to $18.8 million in 2023. impact by the revenue decline and our continued investment in technology and customer acquisition. Our operating expenses in 2024 included a non-cash expense of $9.2 million related to share-based compensation and a $5 million provision for bad debt.

Spring Wu: In 2024, our ability to remain profitable in a tough environment underscores the resilience of our business model. Cost of revenue for 2024 was CNY 309.3 million, down 11% from CNY 346.7 million in 2023. Aligning with the reduction in supply chain trading volume. Gross profit was $30.9 million, a 20% decrease from $39.9 million in the prior year, reflecting lower revenues across our key business. Income from operation was $3.6 million compared to $18.8 million in 2023, impacted by the revenue decline and our continued investment in technology and customer acquisition. Our operating expenses in 2024 included a non-cash expense of $9.2 million related to share-based compensation and a $5 million provision for bad debt. On the balance sheet, we maintained a strong cash position of $45 million in cash and cash equivalents as of 31 December 2024, equivalent to approximately $11.11 per share.

Speaker Change: In 10-K 23.

Speaker Change: Our ability.

Speaker Change: It is intended to neutral.

Speaker Change: Ability to remain profitable in a tough environment underscores the resilience of our business model.

Speaker Change: Cost of revenue for 'twenty, or 'twenty, four or 309.3 minutes.

Speaker Change: Some 11% from 346 7 million and couldn't be 23.

Speaker Change: Aligning with the reduction in supply and treating water.

Speaker Change: Gross profit was 30 point nonetheless.

Speaker Change: But 20% decrease.

13 months, none billing in the prior year.

Speaker Change: Reflecting lower revenues across our key business.

Speaker Change: Income from operation was three 6 million.

Speaker Change: Compared to 18.8 milling in 20 countries three.

Speaker Change: Impact by the revenue decline and our continued investment in technology and customer.

Speaker Change: They should.

Speaker Change: Our operating expenses in 'twenty 'twenty four included a noncash expense.

Speaker Change: 1.2 million related to share based compensation and a 5 million provision for bad debt.

Spring Liu: On the balance sheet, we maintain a strong cash position of $45 million in cash and cash equivalents as of December 31, 2024. equivalent to approximately 11.11 per share.

Speaker Change: On the balance sheet.

Speaker Change: Our strong cash position with 45 million in cash and cash equivalents as of December 31st 2024.

Speaker Change: Equivalent to approximately 11 point 11 per share.

Spring Liu: Net cash used in operating activities was $7.5.7 million. Driven by strategic advance deposits to key suppliers and a working capital investment to secure inventory and meet growing customer demand. These investments are critical to positioning us for future growth and higher market opportunities as market conditions improve. Financial strength, including $11.11 per share, gives us the flexibility to invest strategically while weathering economic challenges. Tending to our shareholders.

Spring Wu: Net cash used in operating activities was $7.57 million, driven by strategic advance deposits to key suppliers and working capital investment to secure inventory and meet growing customer demand. These investments are critical to positioning us for future growth and higher margin opportunities as market conditions improve. The financial strength, including the $11.11 per share, gives us the flexibility to invest strategically while weathering economic challenges. Turning to our shareholders' equity, we executed a share repurchase program implemented in October 2024, resulting in 4,538,358 Class A common shares outstanding as of 31 December 2024. Additionally, in 2024, we granted 700,000 restricted Class A common shares to key executives and employees under our 2022 Equity Incentive Plan, reflecting our commitment to aligning key management members' contributions with long-term shareholder values.

Speaker Change: Net cash used in operating activities.

Speaker Change: 7.5 point $7 million.

Speaker Change: Given that it's going to kick of demand deposits to key suppliers and working capital investment to secure even even pre and to meet growing customer demand.

Speaker Change: These investments are critical to positioning us for future growth at a higher margin opportunities as market conditions improve.

Speaker Change: No.

Financial strength.

Speaker Change: Including 11 point $11 per share.

Speaker Change: As the flexibility to invest strategically well weathering equality make challenges.

Speaker Change: Turning to our shareholders' equity.

Spring Liu: We executed a shared repurchase program in October 2024. Resulting in... 4,538,358 Class A common shares outstanding as of December 31, 2024.

Speaker Change: <unk> executive take a share repurchase program.

Speaker Change: Presenting distinct October 'twenty 'twenty four.

Speaker Change: Resulting in.

Speaker Change: Ooh point full full mailing.

Speaker Change: <unk> hundred 38003.

Speaker Change: 358 class a common shares outstanding as of December 31st can you tell me for.

Spring Liu: Additionally, in 2024, we granted 700,000 restricted Class A common shares to key executives and employees under our 2022 Equity Incentives Share Plan. reflecting our commitment to aligning key management members' contributions with long-term shareholder values.

Speaker Change: Additionally, in 'twenty to a neutral we granted 700000 restricted of class a common shares two key executives and employees under our 2022 equity incentive share plan.

Speaker Change: Reflecting our commitment to aligning key management.

Speaker Change: Members contributions with long term shareholder values.

Spring Liu: With a strong pipeline of demand, ongoing investment in digital transformation and the scalability of our integrated supply chain solutions, we are optimistic about our growth trajectory for 2025. We believe that our financial performance will be driven by strategic initiatives in our core businesses. including supply chain financing solutions, SMA financing, and our exciting expansion into KFC franchise operations in the China market. These efforts are designed to capitalize on recovering market demand, enhanced technology platforms, and our ability to deliver high margin services to our growing customer base.

Spring Wu: With a strong pipeline of demand, ongoing investments in digital transformation, and the scalability of our integrated supply chain solutions, we are optimistic about our growth trajectory for 2025. We believe that our financial performance will be driven by strategic initiatives in our core businesses, including supply chain financing solutions, SME financing, and our exciting expansion into KFC franchise operations in the China market. These efforts are designed to capitalize on recovering market demand, enhanced technology platforms, and our ability to deliver high-margin services to our growing customer base. We believe 2025 will make a pivotal year for Nisun International as we leverage our financial strength and operational expertise to drive sustainable growth. Despite the headwinds we faced in 2024, our strategic focus on technology-driven solutions and integrated supply chain services has positioned us for a meaningful growth in 2025.

Speaker Change: With a strong pipeline of demand ongoing investments in digital tools.

Speaker Change: She has formation and the scalability of our integrated supply chain solutions, we are optimistic about our growth trajectory for 2025.

Speaker Change: We believe that type of financial performance will be driven by strategic initiatives in our core businesses.

Speaker Change: Including supply chain financing solutions.

Speaker Change: And as I mentioned and our exciting expansion into key F seek francek operations in the China market.

Speaker Change: These efforts are designed to capitalize a recovering market demand.

Speaker Change: Hence technology platforms, and our ability to deliver high margin services to our growing customer base.

Spring Liu: We believe 2025 will make a pivotal year for Nisun International as we leverage our financial strengths and operational expertise to drive sustainable growth. Despite the headwind we faced in 2024, our strategic focus on technology-driven solutions and integrated supply chain services has positioned us for a meaningful growth in 2025. Our comprehensive supply chain financial service platform launched in January 2020 and our supply chain trading business initiated in July 2021, are gaining traction from both existing and new customers. We are seeing steady demand from SMES and commodity trading partners and other pipelines to show healthy growth in the second half of 2024.

Speaker Change: We believe <unk>.

<unk> 25 will make a pretty road, who you for need for international as they leverage our financial strength and operational expertise to drive.

Speaker Change: Tangible growth.

Speaker Change: Despite the head wind.

Speaker Change: In 2024.

Speaker Change: Our strategic focus on technology, driven solutions and integrated supply chain services has positioned us for meaningful growth in 2025.

Spring Wu: Our comprehensive supply chain financial service platform launched in January 2020, and our supply chain trading business initiated in July 2021, are gaining traction from both existing and the new customers. We are seeing steady demand from SMEs and commodity trading partners, and our pipelines to show healthy growth in H2 2024. Our supply chain financing services expanded into the gold industry, driving an increase in demand in our supply chain financing services, which also indicated a market recovery. Our investment in technology, talent, and brand recognitions are paying off. We are not just a financing provider. We are partner to businesses, helping them navigate complex supply chains and unlock growth opportunities. The KFC franchise expansion is particularly exciting venture, allowing us to diversify our revenue streams while leveraging our expertise in operational efficiency and customer engagement.

Speaker Change: Our comprehensive supply chain financials. The service platform launched in January 'twenty 'twenty.

Speaker Change: And our supply chain trading business initiative in July 2021.

Speaker Change: Gaining traction.

Speaker Change: Both existing and new customers.

Speaker Change: We have seen steady demand from S. M E S and commodity trading partners.

Speaker Change: Our pipeline to show healthy growth in the second half of 'twenty 'twenty four.

Spring Liu: Our supply chain financing services expanded into the gold industry, driving an increase in demand in our supply chain financing services. which also indicated a market recovery. Our investment in technology, talent, and brand recognitions are paying off. We are not just a financing provider, we are a partner to businesses, helping them navigate complex supply chains and unlock growth opportunities.

Speaker Change: Our supply chain as I mentioned services expanded into the gold industry driving an increase in demand in our supply chain financing services.

Speaker Change: Which also indicated a market recovery.

Speaker Change: The investment in technology talent.

Speaker Change: And Brent recommendations are paying off.

Speaker Change: We are now just.

Speaker Change: That's where we are not just a financing provider.

Speaker Change: We are a partner to businesses, helping them navigate complex complex supply chains, and I love unlock growth opportunities.

Spring Liu: The KFC franchise expansion is a particularly exciting venture, allowing us to diversify our revenue streams while leveraging our expertise in operational efficiency and customer engagement. This initiative, combined with our core financing solutions, position us to capture significant market share in high growth sectors.

Speaker Change: The key at Sea Frontad expansion is particularly exciting.

Speaker Change: Exciting venture.

Speaker Change: Allowing us to diversify our revenue streams, well leather, reaching our XP types in operational efficiency and customer engagement.

Spring Wu: This initiative, combined with our core financing solutions, position us to capture significant market share in high growth sectors. Our management firmly believe that Nisun International stock is significantly undervalued at current levels. Our robust cash position, scalable business model, and diversified growth initiatives are not fully reflected in our market valuation. As we continue to build our reputation in integrated supply chain solutions, management is confident that our shareholders will be rewarded. In closing, we want to emphasize that Nisun International is at an inflection point. We are building a future with technology and industry coverage to create lasting value for our customers, partners, and shareholders. Our vision is bold, our foundation is strong, and our team is energized to make 2025 a meaningful year of progress. Thank you all for your continued support and joining us on this journey.

Speaker Change: These initiatives combined with our cool financing solutions.

Speaker Change: <unk> us to capture significant market share in high growth growth sectors.

Spring Liu: Our management firmly believes that Nisun International Stock is significantly undervalued at current levels. Our robust cash positions, scalable business model, and diversified growth initiatives are not fully reflected in our market valuation. As we continue to build our reputation in integrated supply chain solutions, management is confident that our shareholders will be rewarded.

Our management firmly believe that Nissan International stock.

Speaker Change: Significantly undervalued at current levels.

Speaker Change: I have a real robust cash positions.

Speaker Change: <unk> business model and diversified growth in laser tubes, and not fully reflected.

Speaker Change: Our market valuation.

Speaker Change: As we continue to build our reputation in integrated supply chain solutions management is confident that our shareholders will be rewarded.

Spring Liu: In closing, we want to emphasize that Nisun International is at an inflection point. We are building a future where technology and industry coverage to create lasting value for our customers, partners, and shareholders. Our vision is bold, our foundation is strong, and our team is energized to make 2025 a meaningful year of progress.

Speaker Change: In closing.

Speaker Change: I want to emphasize that nascent international.

Speaker Change: At inflect inflection points.

Speaker Change: We are building, a future where technology and industrial coverage to quake create lasting value for our customer happiness and the shareholders.

Speaker Change: Aberration as good of a foundation is strong and our team is energized to make could be trying to fly a meaningful year of progress.

Spring Liu: Thank you all for your continued support and joining us on this journey.

Speaker Change: Okay.

Speaker Change: Thank you all for your continued support and joining us on this journey.

Operator: With slides, I will turn the call over to the operator. Operator.

Spring Wu: With that, I will turn the call over to the operator. Operator?

Speaker Change: This slide every tender over to the operator.

Speaker Change: Operator.

Operator: This concludes today's call. Thank you again for your participation. You may now disconnect, and have a great day.

Operator: This concludes today's call. Thank you again for your participation. You may now disconnect and have a great day.

This concludes today's call. Thank you again for your participation you may now disconnect and have a great day.

Speaker Change: Okay.

Speaker Change: [music].