Nisun(NISN) - 2024 Q4 - Annual Report

Financial Performance Overview This section provides an overview of Nisun International's financial results for the fiscal year 2024, highlighting key performance indicators and management's strategic commentary Management Commentary The CEO noted a challenging 2024 fiscal year due to China's economic slowdown, impacting SME financing and supply chain trading revenues, leading to strategic reductions in bulk trading volume - The economic slowdown in China led to a decline in revenue from SME financing solutions and supply chain trading, as both investors and SMEs became more risk-averse[3] - The company strategically scaled down its bulk trading volume to manage potential losses amidst high volatility in commodity market prices[3] - In the second half of 2024, the company expanded its supply chain financing business into the gold industry, which increased supply chain financing revenue by $1.9 million compared to the first half of the year[3] - Management believes its substantial cash position provides a solid foundation for navigating the current economic climate and investing for future growth[3] Key Financial Highlights For FY2024, Nisun International reported total revenue of $340.2 million, a 12% decrease, with net income of $5.9 million and a strong cash position of $45.0 million FY 2024 Key Financial Metrics | Metric | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Total Revenue | $340.2 million | $386.7 million | | Net Income | $5.9 million | $17.7 million | | Earnings Per Share (EPS) | $1.43 | $4.46 | | Cash, Cash Equivalents & Restricted Cash | $45.0 million | $114.7 million | - Net income for 2024 included significant non-cash expenses, specifically $9.2 million for share-based compensation and $5.0 million for provisions for bad debts[4] Consolidated Financial Statements This section presents the detailed consolidated financial statements, including statements of operations, balance sheets, and cash flows, for the fiscal year 2024 Consolidated Statements of Operations Total revenues for 2024 decreased by 12% to $340.2 million, gross profit fell by 23% to $30.9 million, and net income significantly dropped to $5.9 million Revenue Breakdown (USD) | Revenue Source | 2024 | 2023 | Change YoY | | :--- | :--- | :--- | :--- | | SME financing solutions | $84.3 million | $101.8 million | -17.2% | | Supply Chain financing solutions | $5.7 million | $6.2 million | -7.2% | | Supply chain trading business | $250.2 million | $278.7 million | -10.2% | | Total Revenues | $340.2 million | $386.7 million | -12.0% | Profitability Metrics (USD) | Metric | 2024 | 2023 | Change YoY | | :--- | :--- | :--- | :--- | | Gross Profit | $30.9 million | $40.0 million | -22.7% | | Income from Operations | $3.6 million | $18.8 million | -81.0% | | Net Income | $5.9 million | $17.7 million | -66.7% | - General and administrative expenses increased from $10.9 million in 2023 to $19.2 million in 2024, while bad debt expense more than doubled to $5.0 million[16] Consolidated Balance Sheets As of December 31, 2024, total assets decreased to $271.4 million due to lower cash, while total liabilities nearly halved to $60.3 million, leading to increased shareholders' equity Key Balance Sheet Items (USD) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $45.0 million | $114.5 million | | Advance to suppliers, net | $92.3 million | $38.6 million | | Total Assets | $271.4 million | $315.9 million | | Liabilities | | | | Advances from customers | $7.5 million | $38.2 million | | Total Liabilities | $60.3 million | $112.8 million | | Equity | | | | Total Shareholders' Equity | $211.1 million | $203.1 million | - There was a significant strategic shift in current assets, with cash decreasing by $69.4 million while 'Advance to suppliers' increased by $53.7 million[14] Consolidated Statements of Cash Flows In 2024, the company experienced a net cash outflow from operating activities of $75.7 million, primarily driven by increases in advances to suppliers and accounts receivable, resulting in a $69.6 million decrease in cash Cash Flow Summary (USD) | Cash Flow from | 2024 | 2023 | | :--- | :--- | :--- | | Operating Activities | $(75.7 million) | $35.5 million | | Investing Activities | $6.0 million | $19.8 million | | Financing Activities | $(0.7 million) | $(6.7 million) | | Net (Decrease) in Cash | $(69.6 million) | $47.3 million | - Management characterized the large cash outflow from operations as a strategic deployment of capital to secure inventory and fulfill expanding customer demand, laying the groundwork for future growth[10] - The primary drivers of the negative operating cash flow were significant increases in 'Advance to suppliers' ($56.2M) and 'Accounts receivable' ($34.6M), which were partially offset by increases in 'Receivables from supply chain solutions' ($34.0M) and 'Inventories' ($29.8M)[18]