Source | official account: capitalwatch

China small share Insurance Brokerage CompanyTIAN RUIXIANG Holdings (Nasdaq: TIRX)It fell 11 per cent to $5.01 a share in Wednesday's trading as it reported results for the first half of fiscal year 2021, which ended April 30, 2021.

In fact, the results showed that Tian Ruixiang's income growth was impressive in the six months to April: 131 per cent year-on-year to $1.6368 million. However, shareholders were disappointed by a net loss of $403900, compared with $235700 in the same period last year. The report showed a net loss of $0.06 per share.

Wang Zhe, chairman and chief executive of TIAN RUIXIANG Holdings, said the company's revenue hit an all-time high. "thanks to the positive results of our marketing activities and the sustained economic recovery after the epidemic, we have achieved the highest half-yearly income in history," Wang Zhe said in a statement. "

Tian Ruixiang attributed the revenue growth to its "active" advertising campaign. On the downside, however, its operating expenses (including sales and marketing expenses) almost doubled year-on-year to $2.1 million. In addition, the company said Tianruixiang's initial public offering also led to an increase in professional fees.

Indeed, Tian Ruixiang was one of the Chinese companies that listed in New York earlier this year, and the company went public in late January. TIAN RUIXIANG Holdings priced his 3 million common shares at $4 a share, raising $12 million.

In the months that followed, Tianruixiang soared to $103.87 a share in a wave of "Meme shares". But the frenzied rally is short-lived: the stock has fallen since early April and is now trading at just over $5. During this period, Tian Ruixiang also received a warning from Nasdaq about the late submission of its 2020 annual report.

In June, TIAN RUIXIANG Holdings completed a $15 million follow-up public offering, selling shares and warrants. The company plans to use these revenues to build "information data platforms" and "intelligent customer service systems" and to set up "key customer departments" for product research and development and general corporate purposes.

Tianruixiang distributes a wide range of insurance products, divided into two main categories: property and accidental injury insurance and life insurance. It also provides risk management services to institutional clients in China. Recently, at the end of June, Tian Ruixiang announced plans to go deep into the medical management industry.