Toronto, Ontario–(Newsfile Corp. – May 30, 2022) – Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) (“Tenet” or the “Company”), an innovative and operator of the Business Hub™, today announced its financial results and operational highlights for the three-month period ended March 31, 2022. Tenet reported revenue of $34.7 million, EBITDA adjusted of ($568,202) and a net loss of $3.36 million for the quarter. The Company continued to expand its offerings in China, resulting in increased revenue. Expenses related to preparing for the launch of Tenet’s Canadian Business Hub™ and Canadian operations resulted in negative Adjusted EBITDA and a net loss for the period. All amounts expressed are in Canadian dollars.
1st Quarter Financial Highlights:
- Total revenue of $34.7M
- Adjusted EBITDA of ($568,202)
- Net loss of ($3.36M)
Summary of quarterly changes in revenue, adjusted EBITDA and net income (net loss)
|Q1 2022||Q4 2021||Q3 2021||Q2 2021||Q1 2021|
|Net profit (net loss) 3||($3,359,601)||($49,994,623)||$1,526,286||$296,071||($389,702)|
- Expenses, for the calculation of Adjusted EBITDA, do not include finance charges, interest, taxes, amortization (including impairment of intangible assets), loss on debt settlement, gain on bargain purchase and depreciation.
- Adjusted EBITDA is equal to net profit (loss) before finance costs, taxes, depreciation, amortization and depreciation of intangible assets, loss on extinguishment of debt, gain on bargain purchase and amortization. Adjusted EBITDA is provided as a supplemental measure of earnings to help readers determine the Company’s ability to generate operating cash flow and to cover finance charges. Adjusted EBITDA and EBITDA are also widely used for business valuation purposes. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
- Net loss for the fourth quarter of 2021 included a total of $53,364,705 of impairment charges related to the Company’s acquisition of Cubeler, whose expected revenue was shifted by nearly a year due to the delayed launch of the Company’s Canadian Business Hub™. A portion of the impairment charges may be reversed in the future after the launch of the Company’s Canadian operations.
First Quarter Operational Highlights:
- Partnership agreement with eHi Auto Services
- Launched Yun Fleet Shipping and Transportation Platform
- Collaboration with China Energy Engineering Corporation on two clean energy pilot projects
ABOUT THE SUMMARY OF FIRST QUARTER FINANCIAL AND OPERATING RESULTS
Business was essentially business as usual for Tenet in the first quarter when it came to the continued expansion of its services in China. The benefits of the company’s participation in two major shopping festivals in China in the fourth quarter of 2021 carried over into the first quarter of 2022 as new consumer goods supply chain customers acquired during the events contributed to Tenet’s revenue growth for the quarter. Helping consumer goods retailers and distributors manage cash flow, become more efficient, and take advantage of new opportunities was once again the core of Tenet’s operations in China. Activities in the Oil & Gas and Materials verticals also contributed to the Company’s revenue growth during the period.
As its operations in established verticals grew, Tenet took steps during the quarter to begin serving new verticals and create more synergy between its offerings in the Business Hub™. Believing that China’s clean energy sector is one of the most promising in the world, Tenet is committed to making space entry a priority for 2022 and has continued to develop relationships in the sector over the of the quarter by collaborating with China Energy Engineering Corporation (“CEEP”) on two separate solar power pilot projects. The launch of the company’s Yun Fleet dispatch platform and its partnership agreement with eHi Auto Services (“ eHi”) in the first quarter of 2022 will not only help Tenet better serve the automotive/transportation sector, but should also serve to create more synergy between the company’s offerings. For example, the agreement with eHi will essentially provide An additional 5,000 service outlets located in over 400 cities where insurance policies offered through Tenet’s Heartbeat insurance brokerage platform will be sold. Insurance products aimed at the automotive industry, Tenet has begun working with its insurance partners to design products specifically tailored to some of the transactions facilitated on the Hub and to begin offering policies alongside transactions. Likewise, the Company plans to offer shipping and logistics services with each transaction for which these services would be applicable through the Yun Fleet platform.
In terms of its Canadian operations, Tenet once again spent the quarter taking the necessary steps to launch the Canadian portion of its Business Hub™ in the second half of 2022. Most activity naturally focused on adapting its platform for Canada, but the Company also became more active during the quarter on relationship building and outreach initiatives ahead of the planned launch.
In summary, the Company generated revenues of $34,741,460 for the quarter ended March 31, 2022 compared to $14,239,776 for the same period in 2021. Total expenses for the quarter amounted to $38,101,061, compared to $14,327,501 for the same period in 2021. Net loss for the three-month period ending March 31, 2022 was $3,359,601 compared to a net loss of $389,702 for the same period in 2021.
Full details of the Company’s financial results for the first quarter of 2022 can be found in the unaudited condensed interim consolidated financial statements and management’s discussion and analysis for the three-month periods ended March 31, 2022 and 2021, which are available at www.sedar.com.
REVISED GUIDANCE FOR 2022
Tenet also announced today that it has revised its guidance for 2022. The company now expects revenue for the year of $210.0M (vs. $345.0M), EBITDA of $6.5M (vs. $.8 million) and a net loss of $11.3 million (down from net earnings of $51.4 million).
“While demand for the services offered by our Business Hub™ continues to grow as expected in China, a combination of events over the past seven months has significantly altered our fundraising plans, resulting in launch delays. of our operations in Canada. and our business in the insurance vertical in China,” commented Tenet President and CEO Johnson Joseph. “Add to that China’s zero Covid policy, which has led to the closure of some of the country’s major economic centers for almost all of the second quarter so far, and it has become impossible for us to reach our previously planned figures. , so we had to go back to the drawing board with a new plan. The good news is that we now have a capital markets plan that is independent of U.S. capital markets that will allow us to continue to fuel our growth in China and expand the Business Hub™ to other markets around the world. world.
Tenet will host a webinar for investors on tuesday 31 mayst at 8:00 a.m. ETwhere President and CEO Johnson Joseph, Tenet China CEO Liang Qiu and Chief Financial Officer Jean Landreville will discuss the company’s first quarter 2022 financial results and revised guidance for 2022. Those wishing to attend to the webinar can register for the event on: https://tinyurl.com/TenetQ12022.
About Tenet Fintech Group Inc.:
Tenet Fintech Group Inc. is the parent company of a group of innovative financial technology (Fintech) and artificial intelligence (AI) companies. All references to Tenet in this press release, unless explicitly stated, include Tenet and all of its affiliates. Tenet subsidiaries provide various analytics and AI services to businesses and financial institutions through various Business Hubs™ to create a global ecosystem where analytics and AI are used to create opportunities and facilitate business. B2B transactions between its members. Please visit our website at: http://www.tenetfintech.com
For more information please contact:
CHF Capital Markets
Cathy Hume, CEO
416-868-1079 ext: 251
MZ Group – MZ North America
Mark Schwalenberg, CFA
Follow Tenet Fintech Group Inc. on social media:
LinkedIn: Tenet Fintech
YouTube: Tenet Fintech
This press release may include certain forward-looking information, including statements relating to business and operating strategies, revenue growth plans and prospects, and listing plans, using words such as “anticipate”, “believe”, “could”, “expect”, “intend”, “may”, “plan”, “potential”, “project”, “seek”, “should”, “will”, “would” and similar expressions, which are intended to identify a number of such forward-looking statements. Forward-looking information reflects current views regarding current events and is not a guarantee of future performance and is subject to risks, uncertainties and assumptions. The Company undertakes no obligation to publicly update or review the forward-looking information contained in this press release, except as required by applicable laws, rules and regulations. require it. Readers are urged to carefully consider these factors when evaluating any forward-looking information.
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