AGM Group Reports First Half Of 2022 Unaudited Financial Results; 1H2022 Revenue Of $113.6M; Net Income of $14.6M; EPS Of $0.68

Author: Benzinga Newsdesk | December 19, 2022 09:35am

1H2022 Revenue of $113.6 million, up 209.5% sequentially

1H2022 Net Income of $14.6 million, up 313.6% sequentially

BEIJING, Dec. 19, 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 first half year ended June 30, 2022.

First Half 2022 Operating and Financial Highlights

• Total computing power delivered was approximately 985,688 TH/S, compared to 440,000 TH/S in the second half of 2021.
• Total revenues were $113.6 million, up 209.5% from $36.7 million in the second half of 2021.
• Gross profit was $21.6 million, up 227.3% from $6.6 million in the second half of 2021.
• Net income was $14.6 million, up 313.6% from $3.5 million in the second half of 2021.

Mr. Chenjun Li, Chairman and Co-Chief Executive Officer of the Company, commented, "We have experienced challenging time and market volatility in the first half of 2022, under the combined adverse effects of the Bitcoin price downward trajectory and the COVID-19 lockdown in China. These disruptions are also forcing customers to be more selective of competitive technology in boosting their innovation and productivity, which is the driving momentum in the continued sales of our advanced mining machines, resulting in total revenue more than tripled from US$36.7 million in the second half of 2021 to US$113.6 million in the first half of 2022. These results demonstrate the success and the sustainability of our business strategy and execution, as we continue to expand our customer base and improve supply chain capabilities. Looking into the future, we will focus on expansion opportunities, technological innovation, and product portfolio. We remain confident that our endeavors in broadening business scope and responsive adaption to advanced technologies will sustain our growth trajectory in the ever-evolving cryptocurrency mining market."

Mr. Steven Sim, Chief Financial Officer of the Company, stated, "During the first half of 2022, despite the COVID-19 containment lockdown in China and the overall significant price drop within the Bitcoin market, we delivered a record total revenue of US$113.6 million and net profitability of US$14.6 million, representing sequential growths of 209.5% and 313.6% respectively, as well as a profit margin of 19%, which is the highest we have ever achieved in the history of AGMH. These results are strong testament to our capabilities in technology development and rapid business transformation. Moving forward, we will continue focusing on delivering mining machines, acquiring sound customers, and improving supply chain while expanding additional growth avenues."

First Half 2022 Financial Results

Revenues

Total revenues were $113.6 million, representing an increase of 209.5% from $36.7 million in the second half of 2021. The increase was primarily due to the increased volume of cryptocurrency mining machines and computing equipment sold.

Cost of Revenues

Cost of revenues was $91.9 million, representing an increase of 205.2% from $30.1 million in the second half of 2021. The increase was mainly attributable to the increase in procurement costs for cryptocurrency mining machines and computing equipment.

Gross Profit

Gross profit was $21.6 million, compared to $6.6 million in the second half of 2021. The increase was primarily due to the substantial increase in revenues.

Operating expenses

Total operating expenses were $1.7 million, remain flat from $1.7 million in the second half of 2021.

• Selling, general, and administrative expenses were $1.7 million, an increase of 4.3% from $1.6 million in the second half of 2021. The increase was primarily due to the higher professional service fees related to being a public-traded company.
• Research and development expenses were nil, compared with $36,317 in the second half of 2021. The decrease was mainly due to the decrease in FinTech R&D. The Company has not invested in cryptocurrency mining machine R&D yet.

Income from operations

Income from operations was $19.9 million, compared to $4.9 million in the second half of 2021.

Other expenses

Total other expenses, net of other income was $0.2 million, compared to total other expenses, net of other income, of $3,996 in the second half of 2021.

Net income

Net income was $14.6 million, compared to net income of $3.5 million in the same half of 2021.

Earnings per share

Basic and diluted net income per common share were both $0.68.

Cash and cash equivalents

Cash and cash equivalent were $9.7 million as of June 30, 2022, compared to $18.4 million as of December 31, 2021.

Posted In: AGMH