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
|
|
|
$
|
-
|
|
|
$
|
-
|
|
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.