Puhui Wealth Investment Management Co., Ltd. (PHCF) stock soared 5.46% in the pre-market trading session at the price of $1.93 despite no fundamental reason. The last published news was the closing of the registered offering of Debenture. PHCF is a provider of third-party cash management services. It markets financial products and renders diversified services to individuals and business customers in the PRC.
Closure of Registered Offering of Debenture
On 24th August 2021, PHCF published that it had closed a $2,750,000 registered offering of the Original Issue Discount Convertible Subordinated Debenture. The net proceeds to the company worth $2.1 million, excluding the agent’s commissions and other payable offering costs. Puhui aims to utilize the net proceeds of the offering for working capital and general business purposes. Earlier, on 12th August 2020, the offering was made under a registration statement on Form F-3 (SEC File No. 333-245003). The offering became effective on 10th November 2020.
PHCF Published Second Half 2020 Financial Results
On 29th June 2021, PHCF published its earnings report for the six months ended 31st December 2020 and provided corporate updates.
PHCF reported revenues of $596,981 for the six months ended 31st December 2020. Total revenues were $577,645 in the same six months ended 31st December 2019. An increase in revenue resulted from slightly higher one-time commissions and recurring management charges. As of 31st December 2020, the company had $1.0 million of cash and $0.5 millions of working capital. PHCF had $0.7 million of cash and $2.3 millions of working capital by 30th June 2020. Net loss attributable to the company was $2.4 million for the six months ended 31st December 2020. It represents a drop of $0.5 million or 17.8% from $3.0 million for the six months ended 31st December 2019.
PHCF cost of revenues composed of compensation returned to the financial product development team. The cost of revenue was $157,233 for the six months ended on 31st December 2020. It represents an increase of $24,899 or 18.8% from $132,334 in the same period ended 31st December 2019. Higher cost of revenues resulted mainly due to an increase in headcount in the product development team. Operating expenses decreased to $2.9 million from $4.0 million in the same period in 2019 due to a drop in selling and G&A costs.