Revenue Performance - For the nine months ended September 30, 2023, the company recorded revenue of $102,937,623 from commodities trading and $64,037 from commodity distribution services and other related services [111]. - Total revenue for the three months ended September 30, 2023 decreased by $3,976,829 or 10% to $33,911,726 compared to $37,888,555 for the same period in 2022 [120][122]. - Revenue from sales of commodity products for the three months ended September 30, 2023 was $33,883,096, down from $37,847,831 in 2022, reflecting a decrease of $3,964,735 or 10% [120][123]. - Total revenue for the nine months ended September 30, 2023, decreased by $36,729,406 or 26% to $103,001,660 from $139,731,066 in the same period of 2022 [133]. - Revenue from sales of commodity products was $102,937,623, down from $138,540,090, reflecting a decrease of $35,602,467 or 26% [134]. - Supply chain management services revenue dropped significantly to $64,037 from $1,190,976, a decline of $1,126,939 or 95% [135]. Cost and Expenses - The cost of revenue decreased by $4,073,374 or 11% from $38,008,337 for the three months ended September 30, 2022 to $33,934,963 for the same period in 2023 [125]. - Total cost of revenue decreased by $35,706,175 or 26% to $103,148,606, primarily due to a corresponding decrease in commodity product sales costs [136]. - Selling, general, and administrative expenses increased by $1,082,709 or 55% to $3,034,313 for the three months ended September 30, 2023, primarily due to increased amortizations of intangible assets [127]. - Selling, general, and administrative expenses increased by $8,033,135 or 132% to $14,108,225, largely due to higher amortization of intangible assets [139]. Profitability - Net income for the three months ended September 30, 2023 was $679,658, a decrease of $624,264 from $1,303,922 for the same period in 2022 [131]. - Net loss for the nine months ended September 30, 2023, was $3,707,295, a decrease of $8,030,345 from net income of $4,323,050 in the same period of 2022 [141]. Cash Flow and Financing - Cash provided by operating activities was $1,053,819, a decrease of $2,550,789 from $3,604,608 in the prior year [147]. - Cash raised from financing activities totaled $56,004,311, including $42,350,000 from private placements and $3,000,000 from convertible promissory notes [149]. - As of September 30, 2023, the company had positive working capital of $192 million [142]. - The company expects to use proceeds from equity financing to expand its commodity trading business [143]. Market and Operational Insights - The company expects competition in the commodities trading business to persist and intensify due to decreasing demand resulting from China's economic slowdown [117]. - The company has a limited operating history, having started its commodities trading business in late November 2019, which poses risks and challenges for future growth [117]. - The company sources bulk commodity products from non-ferrous metal suppliers and sells to manufacturers, with major suppliers including Xiamen Huarui Zhongying Trading Co., Ltd. and Ningbo Dajian Metal Materials Co., Ltd. [112].
TD Holdings(GLG) - 2023 Q3 - Quarterly Report