Wins Finance Holdings Inc. (NASDAQ:WINS) – Earnings Spotlight

Wins Finance Holdings Inc. (NASDAQ:WINS) declined -3.95% to $36.5 for the day. The total traded shares were 1507. The stock had closed at $38 on the previous day. The stock has recorded a 200-day Moving Average of -64.15% and the 50-Day Moving Average is -34.67%. Shares have moved -90.66% from its 1 Year high price and changed 12.97% from its 1 Year low price. The shares registered one year high at $390.88 and the one year low was seen at $32.31.

Wins Finance Holdings Inc. (NASDAQ:WINS), a diversified investment and asset management company that provides integrated financing solutions to small and medium enterprises (“SMEs”) in China, reported its audited financial results for the fiscal twelve months ended June 30, 2018.

Fiscal Twelve Months Financial and Operational Highlights

Gross revenue was $9.7 million, compared to $9.2 million for the corresponding period ended June 30, 2017.

Interest income on short-term investments was $15.1 million, compared to $13.8 million for the corresponding period ended June 30, 2017.

Net income attributable to Wins Finance was $10.5 million, compared to $20.3 million for the corresponding period ended June 30, 2017.

 

Renhui Mu, Chairman and Chief Executive Officer of Wins Finance said “Our gross revenue increased by 5% for fiscal 2018 as compared to fiscal 2017 as our financial advisory business increased by 375%, though this was partially offset by a 19% decrease in our financial guarantee business. However, our net income fell 48%, primarily due to non-cash impairments in our guarantee service and leasing businesses as well as an increase in our expenses”.

 

“The economic slowdown in Shanxi Province’s economy, our main market for our financial guarantee business, significantly affected our financial results and the increased risk of potential loan defaults led us to take a $4.9 million provision on our income statement for such defaults. We also took a $3.1 million provision in our financing lease business primarily attributable to the economic slowdown in China, and the increase in default risk of our customers.”

 

“Our net revenue decreased from $9.7 million for the year ended June 30, 2017 to $0.1 million for the year ended June 30, 2018, representing a decrease of 99%, mainly caused by provisions and impairments on our financial guarantee and leasing businesses that totaled $8.0 million. We note that the provision for the guarantee losses and impairment allowance for the investment in financial leases that have affected our operating results are non-cash items and represent Management’s assessment of the default risk of our guarantee and finance leasing customers.”

 

Mr. Mu added “We continue to refine and upgrade our risk management systems and sophisticated client screening processes since SMEs have a relatively high risk profile as compared to larger, more established companies. We are also pursuing new growth opportunities and believe that our joint venture with Hui Yue Financial Leasing (Ningbo) Co., Ltd. has the opportunity to boost our equipment leasing in Ningbo, China”.

Wins Finance Holdings Inc. is with Insider ownership of 90.78% and institutional ownership counts to 0.17%. Shares float is 16.37M and outstanding shares are at 19.84M. The float short is currently 0.01% and short ratio is 1.34.

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