Puhui Reports 6 Months of Financial Results, Shares Drop 5%

Puhui posted its financial results for the six months ending on Dec 31, 2018.

Author: Binwei Wang   

Shares in Puhui Wealth Investment Management Co. Ltd. (Nasdaq: PHCF) tumbled 5.12 percent on Thursday, closing at $2.78 after the company announced its financial results for the six months ending on Dec 31, 2018.

Puhui reported that its revenue for six months through December reached $1.9 million, up 148.1 percent from a year ago.

Cost of revenues were $206,881 compared with $122,452 for the 6 months through December 2017. Net loss was $746,015, narrowed by 27 percent year-over-year.

In its report, Puhui said the overall increase in revenue was mainly due to high-net-worth clients investing in equity investments in entities that invest in U.S. publicly listed companies.

The Beijing third-party wealth management service provider was listed on Dec 27 and intends to use the proceeds of its offering for general corporate purposes, according to its prospectus.

Specifically, it mentioned establishing branches, hiring financial advisors, acquiring other companies in the industry, increasing its working capital and general and administrative matters as potential areas of investment.

For the six months through December, the company reports it received $8 million, net of expenses, from the issuance of ordinary shares through its IPO.

Puhui is focusing on marketing financial products and managing funds for individuals and corporate clients in China.