Revenue Performance - For the three months ended September 30, 2022, total revenue decreased by $16,885,251 or 31% to $37,888,555 from $54,773,806 for the same period in 2021[126]. - Revenue from commodity trading was $37,847,831, a decrease of $13,516,658 or 26% compared to $51,364,489 in the prior year[124]. - Revenue from supply chain management services dropped by 98% to $40,724 from $2,043,494 in the same period last year[124]. - Total revenue for the nine months ended September 30, 2022, was $139,731,066, a decrease of $4,464,644 or 3% from $144,195,710 in the same period of 2021[139]. - Revenue from sales of commodity products was $138,540,090 for the nine months ended September 30, 2022, compared to $141,679,791 for the same period in 2021, reflecting a decrease of $3,139,701 or 2%[140]. Income and Profitability - Net income for the three months ended September 30, 2022 was $1,303,922, an increase of $846,307 or 185% from $457,615 in the same period last year[136]. - Net income for the nine months ended September 30, 2022, was $4,323,050, an increase of $5,045,855 from a net loss of $722,805 in the same period of 2021[149]. - Gross profit decreased by $1,633,199 or 65%, from $2,509,484 for the nine months ended September 30, 2021, to $876,285 for the same period in 2022[139]. Costs and Expenses - The cost of revenue decreased by $14,791,715 or 28% to $38,008,337 from $52,800,052 for the three months ended September 30, 2021[131]. - Total cost of revenue decreased by $2,831,445 or 2%, from $141,686,226 for the nine months ended September 30, 2021, to $138,854,781 for the same period in 2022[142]. - Selling, general, and administrative expenses increased by $223,959 or 4%, from $5,851,131 for the nine months ended September 30, 2021, to $6,075,090 for the same period in 2022[145]. Interest Income - Interest income increased by $2,850,197 or 158% to $4,659,595 for the three months ended September 30, 2022, compared to $1,809,398 in the prior year[135]. - Interest income increased by $6,561,763 or 96%, reaching $13,416,254 for the nine months ended September 30, 2022, compared to $6,854,491 in 2021[147]. Operational Challenges - The company faced challenges due to COVID-19 and the depreciation of RMB against USD, impacting revenue generation[127]. - Operations in Shanghai were temporarily affected for about two weeks due to COVID-19 lockdown measures, resulting in a decrease in revenue during that period[161]. - The economic impact of the prolonged pandemic remains uncertain and could materially affect future financial performance[162]. Future Outlook and Investments - The company aims to expand its business in existing and new markets, requiring significant capital investment[123]. - The company has a limited operating history since starting its commodities trading business in late November 2019, which poses risks for future growth[122]. Financial Position - Cash inflows from operating activities were $3,604,608 for the nine months ended September 30, 2022, an increase of $2,662,677 from $941,931 in 2021[156]. - The company reported positive working capital of approximately $157 million as of September 30, 2022[152]. - The company raised a total of $59.9 million through private placements and convertible promissory notes during the nine months ended September 30, 2022[152]. Lease Obligations - The company had three lease arrangements with a total contractual obligation of approximately $676,418, with lease terms due in August 2023 and December 2024[164][166]. - Monthly rental fee for the leases is approximately $29,409[164]. - The company does not have any off-balance sheet arrangements as of September 30, 2022[163]. Competitive Landscape - The company operates in a competitive environment with major competitors including Xiamen International Trade and Yijian Shares[119].
TD Holdings(GLG) - 2022 Q3 - Quarterly Report