Toronto, Ontario–(Newsfile Corp. – August 25, 2022) – Tenet Fintech Group Inc. (CSE: PKK) (OTC: PKKFF) (“Tenet” or the “Company”), an innovative AI service provider and operator of the Business Hubs™, today announced its financial results and operational highlights for the three- and six-month periods ended June 30, 2022. Even though most major Chinese cities were economically frozen for nearly two months during the quarter due to government restrictions due to Covid-19, Tenet generated $32.4 million in revenue and recorded a net loss of $6.3 million for the period. The figures are in line with the Company’s expectations as it ramps up its research and development (R&D) and expansion efforts in China and Canada. All amounts expressed are in Canadian dollars.
Second Quarter Financial Highlights:
Summary of quarterly changes in sales, adjusted EBITDA and net profit (loss)
| Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | |
| Revenue | $32,432,228 | $34,741,460 | $33,048,247 | $25,695,570 | $30,649,179 |
| Expenses1 | $35,428,207 | $35,309,662 | $33,226,492 | $22,672,271 | $29,411,980 |
| Adjusted EBITDA2 | ($2,995,979) | ($568,202) | ($178,245) | $1,500,554 | $1,043,482 |
| Net profit (loss)3 | ($6,332,672) | ($3,359,601) | ($49,994,623) | $1,526,286 | $296,071 |
- Expenses, for the purposes of calculating adjusted EBITDA, exclude interest, taxes, depreciation (including depreciation of intangible assets), loss on settlement of debt, gain on bargain purchase and depreciation
- Adjusted EBITDA is equal to earnings (loss) before finance costs, taxes, depreciation, amortization and depreciation of intangible assets, loss on extinguishment of debt, gain on purchase at low cost and amortization
- Net loss for Q4 2021 includes a total of $53,364,705 of impairment charges related to the Company’s acquisition of Cubeler, whose projected revenue was shifted by nearly a year due to the delayed launch of the Business Hub ™ Canadian Company. A portion of the impairment charges may be reversed in the future after the launch of the Company’s Canadian operations.
Second Quarter Operations Highlights:
Launch of “Driver’s Seat”, the first insurance policy exclusively available through Tenet’s Heartbeat insurance brokerage platform
$10.1 million in revenue generated from participation in the “618 Shopping Festival”
National Strategic Cooperation Agreement with Shanghai Electric Power Company
Cooperation agreement with Huai’an Rural Commercial Bank
ABOUT THE SUMMARY OF SECOND QUARTER FINANCIAL AND OPERATING RESULTS
Most of Tenet’s revenue for the second quarter of 2022 was generated in the month of June, as China’s major economic centers were under Covid-19 quarantine for most of April and May. The Company’s participation in this year’s “618 Shopping Festival” accounted for nearly one-third of its total revenue for the quarter. A growing percentage of Business Hub™ customers taking advantage of value-added services, such as insurance and transportation, linked to their financing transactions, also contributed to the Company’s revenue in the second quarter.
From an operational perspective in China, Tenet focused on increasing its involvement in clean energy during the quarter. This contributed to the signing of a national strategic cooperation agreement with Shanghai Electric Power Company to help the country implement its policy of reaching its peak carbon emissions by 2030 and achieving carbon neutrality in the country. 2060.
Although Tenet has not officially launched its Canadian hub, the Company has been very active in Canada during the quarter on several fronts, including business development initiatives. The Company has taken steps to increase its visibility and promote the upcoming Canadian launch of its Cubeler Business Hub™ to the Canadian SME community. It has also entered into strategic partnership discussions with trade associations and software vendors linked to a large number of small and medium enterprises. While these activities contributed to Tenet’s net loss for the quarter, the Company believes that these initiatives have established the foundation in Canada for a formula that will allow Tenet to expand its Cubeler Business Hub™ globally.
In summary, the Company generated revenues of $32,432,228 for the three-month period and $67,173,688 for the six-month period ended June 30, 2022, compared to $30,649,179 for the three-month period. and $44,888,955 for the six-month period ended June 30, 2021.
Total pre-tax expenses for the quarter were $37,511,624 compared to $29,691,302 for the same period in 2021. Net loss for the second quarter of 2022 was $6,332,672 compared to net profit of $296,071 for the same period in 2021.
Details of the Company’s financial results for the second quarter of 2022 can be found in the “Unaudited Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis (MD&A)” for the three and six-month periods ended June 30, 2022, and 2021 , available at www.sedar.com.
Tenet will host a webinar for investors Monday, August 29 at 4:00 p.m. EDTwhere President and CEO Johnson Joseph, Tenet China CEO Liang Qiu and Chief Financial Officer Jean Landreville will discuss the second quarter 2022 financial results. Those wishing to attend the webinar can register for the event on: https://bit.ly/3dUED2T
About Tenet Fintech Group Inc.:
The Tenet Fintech Group Inc. is the parent company of a group of innovative subsidiaries in the field of artificial intelligence and financial technologies (Fintech). All references to Tenet in this press release, unless explicitly stated, include Tenet and all of its affiliates. Tenet subsidiaries provide various analytics and artificial intelligence services to businesses and financial institutions through the Business Hub™, a global ecosystem where data analytics and artificial intelligence are used to create business opportunities. business and facilitate B2B transactions between members of the ecosystem. For more information: http://www.tenetfintech.com
For any information, please contact:
CHF Capital Markets
Cathy Hume, CEO
416-868-1079 ext: 251
[email protected]
MZ Group – MZ North America
Mark Schwalenberg, CFA
312-261-6430
[email protected]
Connect with the Tenet Fintech Group Inc. on social networks:
Twitter: @Tenetfintech
Facebook: @Tenetfintech
LinkedIn: Tenet Fintech
YouTube: Tenet Fintech
Forward-looking statements:
Certain statements made in this press release are forward-looking statements, including statements relating to business activity and business strategies, plans and prospects, which are defined by the use of terms such as “anticipate”. , ‘believes’, ‘could’, ‘should’, ‘expects’, ‘plans’, ‘estimates’, ‘anticipates’, ‘hopes’ or other comparable variants. These statements are based on information available at the time they are made, on assumptions made by management and on the expectations of management, acting in good faith, with respect to future events, and do not constitute result guarantee. Forward-looking statements are also inherently subject to risks, uncertainties and assumptions. Except to the extent required by securities laws, the Company undertakes no obligation to update or revise any forward-looking statements to reflect new information, new events or new circumstances. Accordingly, readers are cautioned to carefully analyze and evaluate these forward-looking statements.
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