Full Press Release Details
Health Group Reports Unaudited Financial Results for First Half of Fiscal Year 2022
CHINA, December 15, 2021 - Akso Health Group (NASDAQ: AHG) ("Akso Health", the "Company" or
"we"), formerly known as Xiaobai Maimai Inc., a social e-commerce platform in China, today announced its unaudited condensed
consolidated financial results for the six months ended September 30, 2021.
The Company amended the ratio of ADS and ordinary
shares from one (1) ADS representing one (1) ordinary share to one (1) ADS representing three (3) ordinary shares,
effective as of August 24, 2020. Fiscal year refers to the 12-month period ended March 31.
First Half of Fiscal Year 2022 Highlights
of Average Monthly Mobile Active Users1 for the six months ended September 30, 2021 was 8,750.
of Active Mobile Buyers2 was 244,520 as of September 30, 2021.
net revenues in the six months ended September 30, 2021 were approximately US$0.2 million, representing a decrease of
81.8% from approximately US$1.4 million for the six months ended September 30, 2020.
Wang, Chairwoman and Chief Executive Officer of Akso Health, commented, "During the first half of our fiscal year 2022, our social
e-commerce business continued to operate normally. We recently announced our new business initiative which will serve the cancer therapy
and radiation oncology market in the U.S. We plan to open 2 vaccine research centers for AIDS and Covid-19 and 100 radiation oncology
centers on the east coast of the U.S. catering to cancer patients at varying stages of treatment. This will include specialized radiation
therapy centers for radiotherapy (RT), personalized consultation, conventional treatment planning, and other related services for a wide
variety of cancer therapy treatments. On October 22, 2021, we announced the appointment of Dr. Yingxian Liu as the medical consultant
to the Company. Dr. Liu has extensive experience, and is highly respected in the pathology field. We believe Dr. Liu's insights
and guidance will support our mission in assembling the necessary team and infrastructure to build a best-in-class practice that's scalable
and delivers safe and high-quality cancer treatments for our patients."
"Monthly Active Users" refer to the number of user accounts that visited our platform during a given month.
"Active Buyers", refer to the number of (i) users that have placed at least one order on our platform, and (ii)
users that have been referred by us to third-party e-commerce platforms, and placed at least one order on such platform since our inception
Half of Fiscal Year 2022 Unaudited Financial Results
net revenues were approximately US$0.2 million, representing a decrease of 81.8% from approximately US$1.4 million in the same
period of fiscal year 2021. The decrease was mainly due to the decrease of interest income from our micro-lending business.
from online marketplace services was approximately US$0.1 million, compared with US$0.3 million in the same period of last
fiscal year. Such revenues were generated from our social e-commerce platform, serving the domestic Chinese market. The decrease was mainly
due to the decrease in active mobile buyers as a result of the increasing competition in social e-ecommerce industry.
income was approximately US$0.2 million, representing a decrease of 82.3% from US$1.1 million in the same period of last fiscal
year. The decrease of interest income was mainly due to the decrease of the outstanding balance of loans from the microlending business.
The Company has ceased to issue new loans since May 2019 and exited the microlending business in October 2019.
costs and expenses were approximately US$8.7 million, representing a decrease of 51.6% from approximately US$17.9 million in
the same period of fiscal year 2021. The decrease was mainly due to a decrease in provision for uncollectable loans receivable.
and development expenses were approximately US$0.2 million, representing a decrease of 19.3% from approximately US$0.3 million
in the same period of last fiscal year. The decrease was mainly due to a decrease in payroll expenses.
and marketing expenses were approximately US$0.2 million, representing a decrease of 72.0% from approximately US$0.6 million
in the same period of last fiscal year. The decrease was mainly due to a decrease in payroll expenses and professional service fees.
and administrative expenses were approximately US$2.3 million, representing a decrease of 24.6% from approximately US$3.0 million
in the same period of last fiscal year. The decrease was mainly due to a decrease in professional service fees, rent and administrative
for uncollectable loans receivable was approximately US$5.0 million, compared with approximately US$12.9 million in the same
period of last fiscal year. The Company has provided an additional allowance for uncollectable loans for its micro-lending business based
on recent collection history and in light of the continuing impact from COVID-19.
costs were approximately US$0.6 million, representing a decrease of 48.2% from approximately US$1.2 million in the same period
of last fiscal year. The decrease was mainly due to the repayment of the principal amount of the Majik Fund SPC loan of $10 million.
compensation was approximately US$0.4 million, representing an increase of 606% from approximately US$0.1 million in the same
period of last fiscal year. The increase was primarily due to the amortization of restricted stock.
other expenses were approximately US$0.4 million, compared with approximately US$0.8 million in the same period of fiscal year
2021. The changes mainly resulted from foreign transaction losses.
from continuing operations was approximately US$8.9 million, compared with approximately US$17.5 million from the same period
of fiscal year 2021.
from discontinued operation was nil, compared with approximately US$6.1 million from the same period of fiscal year 2021.
loss was approximately US$8.9 million for the six months ended September 30, 2021, compared to net loss of US$23.6 million
for the six months ended September 30, 2020.
and diluted net loss per share attributable to ordinary shareholders was US$0.18, compared with US$0.48 in the same period
of fiscal year 2021.
As of September 30, 2021, the Company had
cash and cash equivalents of approximately US$15.4 million. Net cash provided by continuing operating activities was US$0.8 million for
the six months ended September 30, 2021, compared to net cash provided by continuing operating activities of US$14.7 million in the
same period of last fiscal year. The decrease in continuing operating activities cash flow was mainly due to the decrease of outstanding
balance of other receivable. Net cash used in investing activities was US$10.1 million for the six months ended September 30, 2021,
compared to US$0.2 million in the same period of last fiscal year. The increase was mainly due to the advance payment for equipment for
our newly launched Radiation Oncology Therapy Services business. Net cash provided by financing activities was US$9.3 million for the
six months ended September 30, 2021, compared to nil for same period of last fiscal year. The increase was mainly due to a total
of US$10.0 million received from our private placement completed in September 2021 and a total of US$2.0 million of loans from our
controlling shareholder offset by repayments of US$2.7 million to our related parties.
Exchange Rate Information
Our business is conducted in China, and our financial
records are maintained in RMB, our functional currency. However, we used the U.S. dollar as our reporting currency; therefore, periodic
reports made to shareholders will include current period amounts translated into U.S. dollars using the then-current exchange rates, for
the convenience of the readers. The financial information was prepared in RMB and then translated into U.S. dollars at period-end exchange
rates in the H.10 statistical release of the Federal Reserve Board as to assets and liabilities, and average exchange rates as to revenue
and expenses. Capital accounts were translated at their historical exchange rates when the capital transactions occurred. The effects
of foreign currency translation adjustments were included as a component of accumulated other comprehensive income (loss) in shareholders'
equity. We make no representation that any RMB or US. dollar amounts could have been, or could be, converted into U.S. dollars or RMB,
as the case may be, at any particular rate, or at all. The PRC government imposes control over its foreign currency reserves in part through
direct regulation of the conversion of RMB into foreign exchange and through restrictions on foreign trade.
On August 9, 2021, we entered into a certain
securities purchase agreement (the "SPA") with certain "non-U.S. Persons" pursuant to which the Company agreed
to sell an aggregate of 6,340,000 units, each unit consisting of three ordinary shares of the Company, par value $0.0001 per share ("Share")
and a warrant to purchase three Shares with an initial exercise price of US$3.00, at a price of US$1.58 per Unit, for an aggregate purchase
price of approximately US$10.02 million (the "Offering"). On September 17, 2021, the transaction contemplated by the
SPA was consummated when all the closing conditions of the SPA were satisfied. The net proceeds of approximately US$10.0 million from
such Offering will be used by the Company for working capital and general corporate purposes.
On September 24, 2021, the Board of Directors
approved our new business plan to enter the radiation oncology services market in the U.S. We have also established We Health Limited,
a subsidiary based in New York, to tap into the cancer therapy and radiation oncology business in the U.S. On September 26, 2021,
we signed a product purchase agreement with a third-party supplier to purchase equipment for the new cancer therapy and radiation oncology
business. The total price of the equipment is approximately US$12.7 million. Considering the effect of COVID-19 and global chip shortage,
all the equipment is expected to be received at the latest by March 31, 2022. At present, we have prepaid 80% of the purchase price,
and the balance will be paid after the equipment is received and installed.
On October 22, 2021, we announced the appointment
of Dr. Yingxian Liu as the medical consultant to the Company. Dr. Liu will work closely with management to develop the Company's
cancer therapy and radiation oncology business that will be operated by the Company's wholly-owned subsidiary, We Health Limited. Dr. Liu
received his medical degree from Sun Yat-sen University of Medical Sciences in Guangzhou, China. He completed his pathology residency
at North Shore University Hospital in Manhasset, New York. Dr. Liu completed his hematopathology fellowship at Albert Einstein College
of Medicine at Montefiore Medical Center in the Bronx, New York and his surgical pathology residency at Mount Sinai Hospital in Manhattan,
New York. Dr. Liu is board certified in anatomical pathology and serves on the executive board of the Association of Chinese American
On December 3, 2021, the Company's