AGM Group Announces Fourth Quarter and Full Year 2021 Unaudited Financial Results

BEIJING, April 26, 2022 /PRNewswire/ -- AGM Group Holdings Inc. ("AGMH" or the "Company") (NASDAQ: AGMH), an integrated technology company focusing on providing fintech software services and producing high-performance hardware and computing equipment, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2021.

Fourth Quarter 2021 Operating and Financial Highlights

• Total computing power delivered was approximately 440,000 TH/S, compared with nil in the same period of 2020.
• Total revenues were $31.37 million, an increase of approximately $31.36 million from $13,595 in the same period of 2020.
• Gross profit was $5.88 million, an increase of approximately $5.88 million from $4,933 in the same period of 2020.
• Net income was $3.84 million, compared to net loss of $92,664 in the same period of 2020.

Full Year 2021 Operating and Financial Highlights

• Total computing power delivered was 440,000 TH/S, compared with nil in 2020.
• Total revenues were $36.71 million, an increase of approximately $36.66 million from $53,305 in 2020.
• Gross profit was $6.60 million, an increase of approximately $6.58 million from $14,771 in 2020.
• Net income was $3.53 million, compared to net loss of $1.07 million in 2020.

Mr. Chenjun Li, Chairman and Co-Chief Executive Officer of the Company, commented, "We have capped off a great year with a strong quarter. Despite the near-term volatility in the prices of Bitcoin and other digital assets, we witnessed solid growth in demand for cryptocurrency mining and increased deliveries of mining equipment. Notably, total computing power delivered was 440,000 TH/s in the fourth quarter. Our stellar performance is a result of our efforts in strengthening our supply chain, upgrading products, and is a testament to our successful shift into new growth strategies. We are very pleased with the swift progress as our full-year revenues resulted in $36.71 million, out of which $31.37 million were from the fourth quarter. Meanwhile, we turned into profitability in 2021, with net income of $3.53 million compared to net loss of $1.07 million in the prior year.  As we enter 2022, we will continue focusing on delivering mining machines, acquiring new customers and improving supply chain capability while seeking additional growth avenues. We are confident that our endeavors in broadening businesses and responsive adaption to advanced technologies will sustain our growth trajectory in the evolving cryptocurrency mining market."

Mr. Wenjie Tang, Co-Chief Executive Officer of the Company, said, "It's an important year as we transformed our business into a technology company that develops and produces blockchain-oriented ASIC chips and the advanced cryptocurrency mining equipment. Going forward, we will utilize our leading technologies and experienced team to further boost our supplies and in conjunction, our presence in the global blockchain ecosystem."

Mr. Steven Sim, Chief Financial Officer of the Company, commented, "We delivered excellent financial results in the fourth quarter, ending the year on a strong note. In the fourth quarter, our net revenues increased by $31.36 million year-over-year. Net income was $3.84 million, compared to net loss of $92,664 in the same period of 2020. The achievements reflect our effective execution capabilities in mitigating global logistics congestions and a semiconductor shortage. Fueled by solid computing power delivered and new funding, we enhanced our cash balance and liquidity. We will streamline our management over the procurement and deliveries for further growth while bringing in new investments. With these concerted efforts, we believe we can further unleash the vast potential of the blockchain market."

Fourth Quarter 2021 Business Highlights & Recent Developments

• Closing of $20 Million Registered Direct Offering

In December, AGMH closed a registered direct offering and concurrent private placement with certain investors, raising approximately US$20 million in gross proceeds, before deducting placement agent fees and other estimated offering expenses.

• Strategic Move into North America

AGMH is in the planning stage of relocating its headquarters, research center, and manufacturing facilities to the North America. The Company has identified several local manufacturers that are willing to cooperate with AGMH. It is also considering a possibility of building its own factory.

Fourth Quarter 2021 Financial Results

Revenues

Total revenues were $31.37 million, an increase of approximately $31.36 million from $13,595 in the same period of 2020. The increase was primarily due to the growth of cryptocurrency mining machines and computing equipment sales since 2021.

Cost of Revenues

Cost of revenues was $25.49 million, an increase of approximately $25.48 million from $8,662 in the same period of 2020. The increase was primarily due to the increase in procurement costs for cryptocurrency mining machines and computing equipment in the three months ended December 31, 2021.

Gross Profit

Gross profit was $5.88 million, an increase of approximately $5.88 million from $4,933 in the same period of 2020. The increase was primarily due to the substantial increase in revenues.

Operating expenses

Total operating expenses were $0.82 million, an increase of 282.0% from approximately $0.21 million in the same period of 2020.

• Selling, general, and administrative expenses consist primarily of sales and administrative employee-related expenses, professional fees, travel costs, research and development costs, and other corporate expenses. Selling, general, and administrative expenses were $0.82 million, an increase of 311.2% from $0.20 million in the same period in 2020. The increase was primarily due to expenses related to an establishment of a new wholly foreign-owned enterprise.
• Research and development expenses were $3,508, a decrease of 78.2% from $16,095 in the same period in 2020. The decrease was primarily due to the decrease in FinTech R&D. We have not invested in cryptocurrency mining machine R&D.

Income from operations

Income from operations was $5.06 million, compared with loss from operations of $0.21 million in the same period of 2020.

Other income (expenses)

Other income, net of other expenses was $23,826, compared to other expenses, net of other income, of $5,009 in the same period of 2020.

Net income

Net income was $3.84 million, compared to net loss of $92,664 in the same period of 2020.

Earnings per share

Basic and diluted net income per common share were $0.18 and $0.17, respectively, compared to basic and diluted earnings of nil in the same period of 2020.

Cash and cash equivalents

Cash and cash equivalent were $18.41 million as of December 31, 2021, among which $16.6 million (RMB 105.6 million) was held inside China (Mainland), and $1.8 million held outside of China (Mainland). Cash and cash equivalent were $1.40 million as of September 30, 2021, among which $0.79 million (RMB5.14 million) was held inside China (Mainland), and $0.61 million held outside of China (Mainland). AGMH has not, and do not plan to, transfer cash in RMB outside of China (Mainland) in order to avoid unnecessary currency exchange costs. AGMH subsidiaries in China (Mainland) incur expenses from time to time, and the Company has spent with plans to spend RMB cash to cover those expenses.

Full Year 2021 Financial Results

Revenues

Total revenues were $36.71 million, an increase of approximately $36.66 million from $53,305 in 2020. The increase was primarily due to the growth of cryptocurrency mining machines and computing equipment sales since 2021.

Cost of Revenues

Cost of revenues was $30.11 million, an increase of approximately $30.07 million from $38,534 in 2020. The increase was primarily due to the increase in procurement costs for cryptocurrency mining machines and computing equipment.

Gross Profit

Gross profit was $6.60 million, an increase of approximately $6.58 million from $14,771 in 2020. The increase was primarily due to the substantial increase in revenues.

Operating expenses

Total operating expenses were $1.66 million, an increase of 61.8% from approximately $1.03 million in 2020.

• Selling, general, and administrative expenses consist primarily of sales and administrative employee-related expenses, professional fees, travel costs, research and development costs, and other corporate expenses. Selling, general, and administrative expenses were $1.63 million, an increase of 68.7% from $0.96 million in 2020. The increase was primarily due to expenses related to an establishment of a new wholly foreign-owned enterprise.
• Research and development expenses were $36,317, a decrease of 42.8% from $63,450 in 2020. The decrease was primarily due to the decrease in FinTech R&D. We have not invested in cryptocurrency mining machine R&D.

Income from operations

Income from operations was $4.93 million, compared with loss from operations of $1.01 million in 2020.

Other income (expenses)

Other income, net of other expenses was $3,996, compared to other expenses, net of other income, of $7,656 in 2020.

Net income

Net income was $3.53 million, compared to net loss of $1.07 million in 2020.

Earnings per share

Basic and diluted net income per common share were both $0.16, compared to basic and diluted net loss of $0.05 in 2020.

Conference Call

AGMH's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Tuesday, April 26, 2022 (8:00 PM Beijing/Hong Kong Time on April 26, 2022).

Details of the conference call are as follows:

Additionally, a live and archived webcast of the conference call will be available at: https://edge.media-server.com/mmc/p/fxqrd6rh

A replay of the conference call may be accessed by phone within seven days after the conclusion of the live call at the following numbers. To access the replay, please reference the Access code: 520001911#.

About AGM Group Holdings Inc.

Incorporated in April 2015 and headquartered in Beijing, China, AGM Group Holdings Inc. (NASDAQ: AGMH) is an integrated technology company focusing on providing fintech software services and producing high-performance hardware and computing equipment. AGMH's mission is to become one of the key participants and contributors in the global fintech and blockchain ecosystem. For more information, please visit www.agmprime.com.

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties, Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission. 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 actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.

For more information, please contact:

In China:
At the Company:
Email: [email protected]
Email: [email protected]

The Blueshirt Group
Ms. Feifei Shen
Phone: +86 13466566136
Email: [email protected]

In the United States:
The Blueshirt Group
Ms. Julia Qian
Phone: +1 973-619-3227
Email: [email protected]

SOURCE AGM Group Holdings Inc.