U.S. Markets closed
  • S&P 500

    4,145.19
    -6.75 (-0.16%)
     
  • Dow 30

    32,803.47
    +76.67 (+0.23%)
     
  • Nasdaq

    12,657.55
    -63.04 (-0.50%)
     
  • Russell 2000

    1,921.82
    +15.36 (+0.81%)
     
  • Crude Oil

    88.53
    -0.48 (-0.54%)
     
  • Gold

    1,792.40
    +1.20 (+0.07%)
     
  • Silver

    19.86
    +0.02 (+0.09%)
     
  • EUR/USD

    1.0178
    -0.0072 (-0.7023%)
     
  • 10-Yr Bond

    2.8400
    +0.1640 (+6.13%)
     
  • Vix

    21.15
    -0.29 (-1.35%)
     
  • GBP/USD

    1.2070
    -0.0088 (-0.7254%)
     
  • USD/JPY

    135.0190
    +2.0030 (+1.5058%)
     
  • BTC-USD

    23,235.09
    +92.89 (+0.40%)
     
  • CMC Crypto 200

    533.20
    -2.02 (-0.38%)
     
  • FTSE 100

    7,439.74
    -8.32 (-0.11%)
     
  • Nikkei 225

    28,175.87
    +243.67 (+0.87%)
     

Sentage Holdings Inc. Announces Financial Results for Fiscal Year 2021

  • Oops!
    Something went wrong.
    Please try again later.
·9 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

SHANGHAI, July 18, 2022 /PRNewswire/ -- Sentage Holdings Inc. (the "Company", "we", "our") (Nasdaq: SNTG), a Cayman Islands company that offers a comprehensive range of financial services across consumer loan repayment and collection management, loan recommendation, and prepaid payment network services, through its China-base operating entities, today announced its financial results for the fiscal year ended December 31, 2021. The following summarizes such financial results.

Financial Highlights for Fiscal Year 2021

  • Total operating revenue was $2.26 million for fiscal year 2021, compared with $3.59 million for fiscal year 2020, representing a 37.1% decrease, primarily due to the fact that the outstanding servicing agreements under the consumer loan repayment and collection management business were fully completed in fiscal year 2021 and revenues from this business were significantly reduced in fiscal year 2021.

  • Net loss was $1.09 million for fiscal year 2021, compared with net income of $1.59 million for fiscal year 2020.

  • Basic and diluted loss per share was $0.09 for fiscal year 2021, compared with basic and diluted earnings per share of $0.16 for fiscal year 2020.

Impact of the COVID-19 Pandemic

In early 2022, the Omicron variant of COVID-19 spread in China, especially in Jilin Province, Shenzhen and Shanghai where strict lockdowns were imposed.  The Sentage Operating Companies' business facilities in Shanghai, China, were temporarily closed starting from April 2022 to the first week of June 2022, as a result of local government's efforts to contain the resurgence of the COVID-19.  A COVID-19 resurgence may again give rise to economic downturns and other significant changes in regional and global economic conditions. As a result of COVID-19, borrowers' default and delinquency risks might increase as they experience unemployment or reduced income. Any higher default and delinquency risks may increase our operating costs and require us to dedicate more resources to maintain our current collection rate for the loan repayment and collection management business and may pose risk-management challenges for our loan recommendation business. If the COVID-19 situation deteriorates, our service capacity, operational efficiency and results of operations may be adversely affected.

Financial Results for Fiscal Year 2021

Revenues

Total operating revenue decreased by $1.33 million, or 37.1%, to $2.26 million for fiscal year 2021, from $3.59 million for fiscal year 2020. The decrease in revenues was primarily due to the fact that the outstanding servicing agreements under the consumer loan repayment and collection management business were fully completed in fiscal year 2021 and revenues from this business were significantly reduced in fiscal year 2021.

Selling, General and Administrative Expenses 

Selling, general and administrative expenses increased by $1.63 million, or 115%, to $3.04 million for fiscal year 2021, from $1.41 million for fiscal year 2020. This increase was mainly due to the fees incurred in connection with our initial public offering.

Other Income (Expenses) 

Net other expense was $56,931 for fiscal year 2021, an increase of $56,577 from net other expense of $354 for fiscal year 2020. This increase was due to an additional asset impairment loss in fiscal year 2021.

Provision for Income Taxes 

Provision for income taxes decreased by $0.33 million, or 56.6%, to $0.26 for fiscal year 2021, from $0.59 million for fiscal year 2020. This decrease was due to our decreased taxable income.

Net Income/(Loss)

Net loss was $1.09 million for fiscal year 2021, compared with net income of $1.59 million for fiscal year 2020.

Earnings/(Loss) Per Share

Basic and diluted loss per share was $0.09 for fiscal year 2021, compared with basic and diluted earnings per share of $0.16 for fiscal year 2020.

Cash and Cash Equivalents

As of December 31, 2021, the Company had cash and restricted cash of $10.78 million, compared with $0.14 million as of December 31, 2020.

Cash Flow

Net cash used in operating activities was $0.38 million for fiscal year 2021, compared with net cash provided by operating activities of $0.47 million for fiscal year 2020.

Net cash used in investing activities was $5.52 million for fiscal year 2021, compared with $nil for fiscal year 2020.

Net cash provided by financing activities was $16.40 million for fiscal year 2021, compared with net cash used in financing activities of $0.58 million for the same period of last year.

About Sentage Holdings Inc.

Sentage Holdings Inc., headquartered in Shanghai, China, is a financial service provider that offers a comprehensive range of financial services which primarily include consumer loan repayment and collection management, loan recommendation, and prepaid payment network services, through its China-based operating entities. Leveraging the Company's strategic partner relationships and proprietary valuation models and technologies, it is committed to working with its clients to understand their financial needs and challenges and offer customized services to help them meet their financial objectives. For more information, please visit the company's website at ir.sentageholdings.com.

Forward-Looking Statement

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. In addition, there is uncertainty about the further spread of the COVID-19 virus or the occurrence of another wave of cases and the impact it may have on the Company's operations, the demand for the Company's services and economic activity in general. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected.

For more information, please contact:

Sentage Holdings Inc.
Investor Relations Department 
Email: ir@sentageholdings.com

Ascent Investor Relations LLC
Tina Xiao
President
Tel: +1 917-609-0333
Email: tina.xiao@ascent-ir.com

SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS





As of December 31,



2020



2021



USD



USD


ASSETS






Current assets






Cash and cash equivalents

$

117,434



$

10,753,118


Restricted cash


22,948




30,269


Loan receivable


-




5,500,000


Accounts receivable, net


1,221,844




403,708


Deferred initial public offering costs


765,885




-


Prepaid expenses and other current assets


383,041




515,062










Total current assets


2,511,152




17,202,157










Non-current assets








Plant and equipment, net


123,672




120,280


Intangible assets, net


61,797




30,547


Deferred tax assets


87,967




13,724










Total non-current assets


273,436




164,551










Total assets

$

2,784,588



$

17,366,708


 

 

SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES 


CONSOLIDATED BALANCE SHEETS (Continued)





As of December 31,



2020



2021



USD



USD


LIABILITIES AND SHAREHOLDERS' EQUITY






Current liabilities






Accounts payable

$

4,912



$

2,743


Contract liabilities


154,106




-


Accrued expenses and other current liabilities


336,467




379,991










Total current liabilities


495,485




382,734










Non-current liability








Due to a related party, non-current


1,437,661




161,020










Total non-current liability


1,437,661




161,020










    Total liabilities


1,933,146




543,754










Shareholders' equity








Ordinary shares, $0.001 par value, 50,000,000 shares authorized,
  14,000,000 shared issued and outstanding*


10,000




14,000


Additional paid in capital


38,419,832




55,327,885


Statutory reserves


-




166,038


Accumulated deficit


(37,639,385)




(38,898,664)


Accumulated other comprehensive income


60,995




213,695










Total shareholders' equity


851,442




16,822,954










Total liabilities and shareholders' equity

$

2,784,588



$

17,366,708



*Retrospectively restated for effect of 1-for-1,000 forward split of the Ordinary Shares.

 

 

SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND OTHER COMPREHENSIVE INCOME





For the years ended December 31,



2019



2020



2021











OPERATING REVENUE









Consumer loan repayment and collection management
  service fees

$

3,618,823



$

1,074,734



$

156,062


Loan recommendation service fees


260,388




2,087,717




1,177,822


Prepaid payment network service fee


86,052




432,958




928,565


Total operating revenue


3,965,263




3,595,409




2,262,449














OPERATING EXPENSE












Selling, general and administrative expenses


1,528,043




1,414,979




3,041,415


Total operating expenses


1,528,043




1,414,979




3,041,415














INCOME(LOSS) FROM OPERATIONS


2,437,220




2,180,430




(778,966)














OTHER INCOME (EXPENSES)


8,495




(354)




(56,931)














INCOME(LOSS) BEFORE INCOME TAX PROVISION


2,445,715




2,180,076




(835,897)














INCOME TAX EXPENSE


611,362




592,701




257,344














NET INCOME(LOSS)


1,834,353




1,587,375




(1,093,241)














OTHER COMPREHENSIVE INCOME












Foreign currency translation adjustment


33,571




36,993




152,700


COMPREHENSIVE INCOME (LOSS)

$

1,867,924



$

1,624,368



$

(940,541)














   Earnings(loss) per common share- basic and diluted

$

0.18



$

0.16



$

(0.09)














Weighted average shares- basic and diluted


10,000,000




10,000,000




11,873,973


*Retrospectively restated for effect of 1-for-1,000 forward split of the Ordinary Shares.


 

  

 

SENTAGE HOLDINGS INC. AND ITS SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS





For the years ended December 31,



2019



2020



2021











Cash flows from operating activities









Net income (loss)

$

1,834,353



$

1,587,375



$

(1,093,241)


     Adjustments to reconcile net income to cash and
     restricted cash provided by (used in) operating
     activities:












Depreciation and amortization


57,022




53,520




62,971


Gain on disposal of plant and equipment


(10,747)




-




-


Deferred income tax expense


611,362




592,701




74,243


Impairment loss recognised in respect of receivables


-




-




54,896


Changes in operating assets and liabilities:












Accounts receivable


(238,609)




(918,303)




763,240


Prepaid expenses and other current assets


(12,598)




90,290




(132,021)


Accounts payable


2,113




-




-


Contract liabilities


(3,618,822)




(1,056,406)




(154,106)


Accrued expenses and other current liabilities


668




116,033




41,354


Net cash provided by (used in) used in operating
activities


(1,375,258)




465,210




(382,664)














Cash flows from investing activities












Additions to plant and equipment


-




-




(19,977)


Investment in loans receivable


-




-




(5,500,000)


Proceeds from disposal of plant and equipment


10,747




-




-


Net cash provided by(used in) investing activities


10,747




-




(5,519,977)














Cash flows from financing activities












Deferred initial public offering costs


-




(765,885)




765,885


Proceeds from IPO


-




-




16,912,053


Proceeds from (Repayment to) related party loans


1,443,234




180,026




(1,276,641)


Net cash provided by (used in) financing activities


1,443,234




(585,859)




16,401,297














Reconciliation of cash and restricted cash, beginning of
year












Cash


142,715




227,387




117,434


Restricted cash


22,653




23,644




22,948


Cash and restricted cash, beginning of year

$

165,368



$

251,031



$

140,382














Reconciliation of cash and restricted cash, end of year












Cash


227,387




117,434




10,753,118


Restricted cash


23,644




22,948




30,269


Cash and restricted cash, end of year

$

251,031



$

140,382



$

10,783,387














Effect of exchange rate changes on cash and restricted
cash


6,940




10,000




144,349


Net increase (decrease) in cash and restricted cash


85,663




(110,649)




10,643,005


Cash and restricted cash, beginning of year


165,368




251,031




140,382


Cash and restricted cash, end of year

$

251,031



$

140,382



$

10,783,387














Supplemental disclosure of cash flow information












Amount converted from shareholder loans to capital

$

1,148,106



$

-



$

-


 

Cision
Cision

View original content:https://www.prnewswire.com/news-releases/sentage-holdings-inc-announces-financial-results-for-fiscal-year-2021-301587950.html

SOURCE Sentage Holdings Inc.