Revenue Growth - Total revenue increased by $172,865,441 or 612%, from $28,268,801 in 2020 to $201,134,242 in 2021, with commodity trading accounting for 98.4% of total revenue [214]. - Revenue from sales of commodity products to third parties reached $173,904,016, a 2007% increase from $8,252,866 in 2020 [213]. - Supply chain management services generated $3,180,227 in commission fees, a 95% increase from $1,631,318 in 2020 [204]. Cost and Expenses - Total cost of revenue rose by $173,485,158 or 704%, from $24,640,471 in 2020 to $198,125,629 in 2021, primarily due to increased commodity sales [218]. - Selling, general, and administrative expenses increased by $5,101,883 or 168%, from $3,035,598 in 2020 to $8,137,481 in 2021 [220]. Financing Activities - The company settled convertible promissory notes totaling $200,000 to $175,000 between January and February 2022, issuing a total of 3,847,746 shares [207]. - The company entered a securities purchase agreement on November 5, 2021, to sell 65,000,000 shares at $0.70 per share, raising gross proceeds of $45.5 million [208]. - The company raised a total of $64 million from various financing activities, including private placements and convertible promissory notes [228]. Challenges and Risks - The company faces challenges due to China's economic slowdown and increasing competition in the commodities trading sector [210]. - The company has a limited operating history, having started its commodities trading business in late December 2019, which poses risks to future growth and profitability [210]. Income and Cash Flow - For the year ended December 31, 2021, interest income was $10,079,776, an increase of 62% from $6,239,943 in 2020, primarily due to loans made to Yunfeihu [222]. - The net loss for the year ended December 31, 2021 was $940,357, an increase of $1,459,998 from a net loss of $2,400,355 in 2020 [224]. - Cash inflows from operating activities for the year ended December 31, 2021 were $8,034,010, a decrease of $21,822,023 from $29,856,033 in 2020 [233]. - Net cash used in investing activities for the year ended December 31, 2021 was $71,520,955, compared to $132,582,547 in 2020 [235]. Assets and Liabilities - As of December 31, 2021, the company reported positive working capital of approximately $107 million [227]. - The company purchased software copyright for $5.1 million during the year ended December 31, 2021 [235]. - The company had two lease arrangements with a total contractual obligation of $897,285, with a monthly rental fee of approximately $26,441 [239]. - The company issued 750,000 fully-vested warrants valued at $1,695,042 million using the Black-Scholes model [221]. - The amortization of beneficial conversion feature for convertible promissory notes was $1,463,883 for the year ended December 31, 2021 [222]. Business Expansion - The company aims to expand its business in Hainan, leveraging competitive policies to enhance revenue generation [214].
TD Holdings(GLG) - 2021 Q4 - Annual Report