Exhibit 99.1
Nisun International Reports Unaudited Financial Results for the First Half of 2025
Nisun International Enterprise Development Group Co., Ltd (“Nisun” or the “Company”) (Nasdaq: NISN), today announced its unaudited financial results for the six months ended June 30, 2025.
Financial Results for the Six Months Ended June 30, 2025
All comparisons are on a year-over-year (“yoy”) basis unless otherwise noted.
Revenue
| ● | Total revenue decreased by 53% to $91.1 million from $192.5 million for the six months ended June 30, 2025, with a significant decline across various business segments. |
| ● | Revenue from the supply chain trading segment decreased by 55% to $64.1 million, compared to $142.1 million in the prior year. This decline was predominantly a result of substantially reduced business volume, a trend that parallels the company’s ongoing business transformation efforts. |
| ● | Revenue from services decreased by 47% to $26.9 million from $50.5 million in the same period of the last fiscal year. |
| ● | Revenues generated from the Small and Medium Enterprise (SME) financing solutions business decreased by 47% to $25.9 million from $48.5 million in the same period of the last fiscal year, primarily due to challenging financial market conditions, influenced by a subdued dynamic in the Chinese SME segment, which shows no immediate signs of improvement,. |
| ● | Revenue generated from supply chain financing solutions business decreased by 46% to $1.0 million from $1.9 million in the same period of the last fiscal year, primarily due to challenging financial market conditions, influenced by a subdued dynamic in the Chinese SME segment, which shows no immediate signs of improvement. |
| For the six months ended June 30, | Changes | |||||||||||||||||||||||
| 2025 | % | 2024 | % | ($) | (%) | |||||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||||||||
| Revenue generated from sales: | ||||||||||||||||||||||||
| Revenue from supply chain trading business | $ | 64,137,320 | 70 | % | $ | 142,079,851 | 74 | % | (77,942,531 | ) | (55 | )% | ||||||||||||
| Revenue generated from services: | ||||||||||||||||||||||||
| SME financing solutions | 25,890,728 | 29 | % | 48,527,509 | 25 | % | (22,636,781 | ) | (47 | )% | ||||||||||||||
| Supply chain financing solutions | 1,034,932 | 1 | % | 1,929,533 | 1 | % | (894,601 | ) | (46 | )% | ||||||||||||||
| Total revenue from financing services | 26,925,660 | 30 | % | 50,457,042 | 26 | % | (23,531,382 | ) | (47 | )% | ||||||||||||||
| Total revenue | $ | 91,062,980 | 100 | % | $ | 192,536,893 | 100 | % | (101,473,913 | ) | (53 | )% | ||||||||||||
Cost of revenue
Cost of revenue was $80.9 million for the six months ended June 30, 2025, compared to $175.3 million in the same period of the last fiscal year, representing a decrease of 54%. This decrease was primarily due to a significant decline in revenue, the corresponding costs associated with that revenue have also decreased accordingly.
Gross Profit
Gross profit decreased by 41% to $10.2 million for the six months ended June 30, 2025 from $17.2 million in the same period of last fiscal year, primarily due to a sharp decline in business volume. Gross margin was 11.15% and 8.96% for the six months ended June 30, 2025 and 2024, respectively. The increase in gross margin was primarily due to reduced channel costs within the financing services business.
Operating Expenses
Total operating expenses increased by 1,275% to $78.6 million for the six months ended June 30, 2025 from $5.7 million in the same period of last fiscal year. The increase was primarily attributable to significant operational and financial challenges, along with deteriorating future prospects, within the Company’s SME financing, supply chain financing, and associated transaction services segments. Following an internal financial assessment, the Company has classified the assets and liabilities of its VIEs, Fintech, Hengpu, and Nami, as held for sale. Consequently, it has recognized impairment losses on the related goodwill and other assets.
| ● | Selling expenses increased by 16% to $0.9 million for the six months ended June 30, 2025 from $0.8 million in the same period of last fiscal year. The increase in selling expenses was primarily due to increased sales commission expenses incurred by the Company to boost revenue. |
| ● | General and administrative expenses decreased by 5% to $4.5 million for the six months ended June 30, 2025 from $4.7 million in the same period of last fiscal year. The decrease in general and administrative expenses was primarily due to reduction in non-essential administrative expenditures to enhance management efficiency. |
| ● | R&D expenses increased by 12% to $0.50 million for the six months ended June 30, 2025 from $0.45 million in same period of last fiscal year. The increase in the R&D expenses was primarily due to increased investment in technology research and development expenditures as part of the Company’s efforts to improve gross margin. |
| ● | Goodwill impairment loss were $17.4 million for the first half of 2025. Due to significant operational and financial challenges in its SME financing, supply chain financing, and related transaction services, the Company has reclassifed the VIEs Fintech, Hengpu and Nami as a disposal group. The goodwill represents the appreciation arising from the acquisitions of the VIEs in 2019 and 2020. Based on the operating data for the first half of 2025 and an assessment of future sustainability, the net assets of the VIEs are significantly below their carrying amounts. Consequently, a full impairment loss on goodwill has been recognized for the VIEs. |
| ● | Impairment loss of assets was $55.3 million for the first half of 2025. Based on the operating results for the first half of 2025 and an assessment of future viability of operations, the net assets of the VIEs are significantly lower than their carrying amounts. Following recognition of goodwill impairment losses of the VIEs, including Fintech, Hengpu and Nami, the Company has also recognized asset impairment losses for these VIEs, measured as the difference between their recoverable amounts and carrying amounts. |
Other Income net
The Company had a net other expense of $0.5 million for the six months ended June 30, 2025, compared to a net other income of $1.2 million in the same period of last fiscal year. The decrease was primarily attributable to the swing from interest and investment income in 2024 to a loss in 2025, representing a reduction of $1.3 million.
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Net Income
In the six months ended June 30, 2025, the Company had a net loss of $70.0 million, compared to a net income of $10.3 million in the same period of last fiscal year. The decrease was primarily attributable to a sharp decline in revenue and the recognition of $72.6 million in non-cash goodwill and asset impairment charges.
Net Income per Share
Net loss per share was $15.31 for the six months ended June 30, 2025, a significant decrease compared to Net income per share of $2.61 in the same period of last fiscal year. The weighted average number of shares outstanding was 4,571,235 and 3,952,198 in the six months ended June 30, 2025 and 2024, respectively.
Financial Condition and Cash Flow
As of June 30, 2025, the Company had cash, cash equivalents of $10.1 million, compared to $45.0 million as of December 31, 2024.
Net cash used in operating activities decreased by $32.6 million to $36.8 million for the six months ended June 30, 2025, compared to net cash used in operating activities of $69.3 million for the prior fiscal year. The decrease in net cash used in operating activities was primarily the result of proactive working capital management, which led to significant cash inflows from a decrease in accounts receivable of $28.8 million, an increase in accounts payable of $52.6 million and an increase in advance from customers of $13.6 million. These positive cash movements were partially offset by significant cash outflows, most notably a $41.3 million increase in advances to suppliers and a $24.7 million increase in receivables from supply chain solutions.
Net cash provided by investing activities decreased by $5.1 million to $1.8 million for the six months ended June 30, 2025, compared to a cash provided by investing activities of $6.9 million for the same period of the prior fiscal year. The decrease in net cash provided by investing activities was primarily due to a decrease in payments made for short-term investment of $19.6 million, and a decrease in Proceeds from sale of short-term investments of $24.7 million.
Net cash provided by financing activities for the six months ended June 30, 2025 was $0.6 million, compared to net cash used in $2.1 million for the same period in the prior fiscal year. Net cash provided by financing activities increased mainly due to an increase in repayment of third-party loans of $2.9 million, which was partially offset by a decrease in proceeds from short-term bank loans of $0.7 million.
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NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN US DOLLARS)
| June 30, 2025 | December 31, 2024 | |||||||
| ASSETS | (Unaudited) | |||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 10,079,125 | $ | 45,021,759 | ||||
| Short-term investments | - | 6,882,714 | ||||||
| Accounts receivable, net | 15,884,609 | 54,444,438 | ||||||
| Derivative asset | - | 1,996,340 | ||||||
| Advance to suppliers, net | 139,748,445 | 92,304,699 | ||||||
| Receivables from supply chain solutions | 5,951,287 | 23,978,130 | ||||||
| Inventories | 1,684,321 | 806,821 | ||||||
| Due from related party | - | 1,665 | ||||||
| Prepaid expenses and other current assets | 10,100,192 | 25,892,681 | ||||||
| Asset held for sale - current | 49,681,856 | - | ||||||
| TOTAL CURRENT ASSETS | 233,129,835 | 251,329,247 | ||||||
| NON-CURRENT ASSETS: | ||||||||
| Property and equipment, net | 16,430 | 358,038 | ||||||
| Intangible assets, net | - | 205,032 | ||||||
| Right-of-use assets, net | - | 1,608,591 | ||||||
| Equity investments | 125,635 | 457,416 | ||||||
| Goodwill | - | 17,050,800 | ||||||
| Deferred tax assets, net | - | 412,162 | ||||||
| Asset held for sale - non-current | 1,218,854 | - | ||||||
| TOTAL NON-CURRENT ASSETS | 1,360,919 | 20,092,039 | ||||||
| TOTAL ASSETS | $ | 234,490,754 | $ | 271,421,286 | ||||
| LIABILITIES | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 24,620,229 | $ | 34,630,781 | ||||
| Short-term bank loans | - | 5,274,478 | ||||||
| Accrued expenses and other current liabilities | 3,427,503 | 2,930,782 | ||||||
| Operating lease liabilities - current | - | 948,561 | ||||||
| Payables to supply chain solutions | 1,462,853 | 4,229,793 | ||||||
| Advances from customer | 6,309,735 | 7,528,352 | ||||||
| Taxes payable | 480,146 | 3,642,427 | ||||||
| Liabilities of financial guarantee | 22,136 | 21,725 | ||||||
| Due to related parties - current | - | 267,149 | ||||||
| Liabilities held for sale - current | 50,362,518 | - | ||||||
| TOTAL CURRENT LIABILITIES | 86,685,120 | 59,474,048 | ||||||
| Operating lease liabilities – non-current | - | 818,128 | ||||||
| Liabilities held for sale - non-current | 538,191 | - | ||||||
| TOTAL NON-CURRENT LIABILITIES | 538,191 | 818,128 | ||||||
| TOTAL LIABILITIES | 87,223,311 | 60,292,176 | ||||||
| SHAREHOLDERS’ EQUITY:* | ||||||||
| Class A common stock, $0.01 par value, 30,000,000 and 30,000,000 shares authorized, 4,985,096 and 4,725,096 shares issued, and 4,798,358 and 4,538,358 shares outstanding as of June 30, 2025 and December 31, 2024, respectively | 49,851 | 47,251 | ||||||
| Class B common stock, $0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding as of June 30, 2025 and December 31, 2024 | - | - | ||||||
| Treasury shares | (728,279 | ) | (1,253,012 | ) | ||||
| Additional paid-in capital | 141,267,807 | 139,712,207 | ||||||
| Retained earnings | 2,164,597 | 72,517,990 | ||||||
| Statutory reserves | 13,588,914 | 13,229,313 | ||||||
| Accumulated other comprehensive loss | (13,445,195 | ) | (17,491,069 | ) | ||||
| COMMON SHAREHOLDERS’ EQUITY | 142,897,695 | 206,762,680 | ||||||
| Non-controlling interests | 4,369,748 | 4,366,430 | ||||||
| TOTAL SHAREHOLDERS’ EQUITY | 147,267,443 | 211,129,110 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 234,490,754 | $ | 271,421,286 | ||||
| * | The financial statements give retroactive effect to the May 18, 2023 one-for-ten reverse share split. |
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NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
UNAUDITED (IN US DOLLARS)
| For the Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| REVENUES: | ||||||||
| Revenues generated from sales: | ||||||||
| Supply chain trading business | $ | 64,137,320 | $ | 142,079,851 | ||||
| Revenues generated from services: | ||||||||
| Small and Medium Enterprise financing solutions | 25,890,728 | 48,527,509 | ||||||
| Supply Chain financing solutions | 1,034,932 | 1,929,533 | ||||||
| Total revenue generated from services | 26,925,660 | 50,457,042 | ||||||
| TOTAL REVENUES | 91,062,980 | 192,536,893 | ||||||
| COST OF REVENUE: | ||||||||
| Cost of revenue - sales | (63,763,848 | ) | (140,743,953 | ) | ||||
| Cost of revenue - services | (16,979,482 | ) | (34,253,460 | ) | ||||
| Business and sales related taxes | (161,686 | ) | (287,225 | ) | ||||
| GROSS PROFIT | 10,157,964 | 17,252,255 | ||||||
| OPERATING EXPENSES: | ||||||||
| Selling expenses | (943,354 | ) | (811,360 | ) | ||||
| General and administrative expenses | (4,483,623 | ) | (4,718,918 | ) | ||||
| Research and development expenses | (499,557 | ) | (446,877 | ) | ||||
| Expected credit income | - | 262,584 | ||||||
| Goodwill Impairment Loss | (17,373,793 | ) | - | |||||
| Impairment Loss of Assets | (55,275,084 | ) | - | |||||
| Total operating expenses | (78,575,411 | ) | (5,714,571 | ) | ||||
| LOSS (INCOME) FROM OPERATIONS | (68,417,447 | ) | 11,537,684 | |||||
| OTHER INCOME (EXPENSE): | ||||||||
| Interest and investment loss (income) | (516,997 | ) | 801,987 | |||||
| Other income, net | 66,536 | 425,839 | ||||||
| Total other income (expense), net | (450,461 | ) | 1,227,826 | |||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | (68,867,908 | ) | 12,765,510 | |||||
| INCOME TAXE EXPENSES | (1,122,607 | ) | (2,440,569 | ) | ||||
| NET LOSS (INCOME) | (69,990,515 | ) | 10,324,941 | |||||
| Net income attributable to non-controlling interests | (3,277 | ) | (21,411 | ) | ||||
| NET LOSS (INCOME)- Nisun International’s shareholders | $ | (69,993,792 | ) | $ | 10,303,530 | |||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||
| Foreign currency translation income (loss) | 4,045,915 | (4,585,569 | ) | |||||
| COMPREHENSIVE LOSS (INCOME) | (65,947,877 | ) | 5,717,961 | |||||
| Comprehensive loss attributable to non-controlling interests | (41 | ) | (223 | ) | ||||
| COMPREHENSIVE LOSS (INCOME) | $ | (65,947,918 | ) | $ | 5,717,738 | |||
| BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ||||||||
| NET EARNINGS PER COMMON SHARE | $ | (15.31 | ) | $ | 2.61 | |||
| Weighted average number of shares outstanding-basic and diluted* | 4,571,235 | 3,952,198 | ||||||
| * | The financial statements give retroactive effect to the May 18, 2023 one-for-ten reverse share split. |
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NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED (IN US DOLLARS)
| For the Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss (income) | $ | (69,990,515 | ) | $ | 10,324,941 | |||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 603,233 | 847,585 | ||||||
| Expected credit income | - | (262,584 | ) | |||||
| Property and equipment written off | - | 1,807 | ||||||
| Income from investments | - | (287,022 | ) | |||||
| Deferred tax benefit | 7,880 | (83,112 | ) | |||||
| Repurchase Treasury shares | 524,733 | 33,352 | ||||||
| Shares issued for compensation | 1,558,200 | - | ||||||
| Impairment Loss of Assets | 55,275,084 | - | ||||||
| Impairment for goodwill | 17,373,793 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 17,546,090 | (11,262,419 | ) | |||||
| Advance to suppliers | (89,624,037 | ) | (48,309,925 | |||||
| Prepaid expenses and other current assets | 12,604,807 | (976,429 | ) | |||||
| Receivables from supply chain solutions | (597,404 | ) | 24,053,943 | |||||
| Inventories | (6,850,778 | ) | 4,956,474 | |||||
| Accounts payable | 23,295,164 | (29,263,247 | ) | |||||
| Advance from customers | 4,081,187 | (9,517,489 | ) | |||||
| Taxes payable | (2,040,306 | ) | 75,614 | |||||
| Other payables | 2,319,145 | (1,514,377 | ) | |||||
| Payable to supply chain solutions | (2,364,228 | ) | (8,416,415 | ) | ||||
| Operating lease liabilities | (502,399 | ) | (83,690 | ) | ||||
| Accrued expenses and other current liabilities | 7,696 | 334,742 | ||||||
| NET CASH USED IN OPERATING ACTIVITIES | (36,772,655 | ) | (69,348,251 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Acquisition of property and equipment | (14,469 | ) | (11,673 | ) | ||||
| Purchase of intangible asset | (2,048 | ) | (4,316 | ) | ||||
| Proceeds from sale of short-term investments | - | 24,704,041 | ||||||
| Proceeds from sale of Derivative asset | 2,009,193 | - | ||||||
| Proceeds from disposal of property and equipment | 70,538 | - | ||||||
| Purchase of short-term investments | (266,482 | ) | (19,892,871 | ) | ||||
| Repayments from loans to third parties | - | 2,079,501 | ||||||
| NET CASH PROVIDED BY INVESTING ACTIVITIES | 1,796,732 | 6,874,682 | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from short-term bank loans | 689,407 | 1,386,334 | ||||||
| Repayment of short-term bank loans | (74,385 | ) | (624,198 | ) | ||||
| Repayment of third party loans | - | (2,911,302 | ) | |||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 615,022 | (2,149,166 | ) | |||||
| EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | (581,733 | ) | (2,165,168 | ) | ||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (34,942,634 | ) | (66,787,903 | ) | ||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-BEGINNING | 45,021,759 | 114,651,940 | ||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-ENDING | $ | 10,079,125 | $ | 47,864,037 | ||||
| SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||||||||
| Cash paid for income taxes | $ | 1,591,459 | $ | 3,516,019 | ||||
| Cash paid for interest | $ | 74,385 | $ | 69,664 | ||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||||||||
| Lease liabilities arising from obtaining right-of-use assets | $ | - | $ | 266,413 | ||||
| Issuance of shares for share-based compensation | 260,000 | - | ||||||
| CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS ARE COMPRISED OF THE FOLLOWING: | ||||||||
| Cash and cash equivalents | $ | 10,079,125 | $ | 47,864,037 | ||||
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