Puhui Wealth Investment Management Co. Ltd. (PHCF) stock prices were up by 5.73% as of the market closing on October 19th, 2021. This brought the price up to USD$2.03. Subsequent premarket fluctuations saw the stock rise by 6.90%, bringing it up to USD$2.17.
Registered Direct Offering
August 24th 2021 saw the third party wealth management service provider announce the closing of its registered direct offering. The offering was for a 10% Original Issue Discount Convertible Subordinated Debenture in the principal amount of USD$2.75 million as of August 20th 2021. PHCF stock generated roughly USD$2.1 million in total net proceeds, before the deduction of expenses related to the offering. The company plans to allocate the resources generated from the offering towards working capital and general corporate purposes.
Building on Success
PHCF reported its core business having started marketing of wealth management product advisory services to HNW clients and small and medium enterprises in China. The company maintains a sizeable client base as a growing independent wealth management service provider. The client base consisted of 1,148 clients as of December 31st 2020, as compared to 1,106 clients as of June 30th 2020. The company has also launched its in-house asset management business. As of December 31st 2020, the company’s subsidiaries served as managers or general partners of five funds, totaling an aggregate of roughly USD$21.1 million under their management. This is comparable to the USD$21.6 million under management as of June 30th 2020. The decrease was largely driven by dividends being paid to investors and subscription and recurring management fees.
PHCF Stock’s Operating Expenses
The company reported operating expenses in the amount of USD$2.9 million for the quarter. This is comparable to the USD$4 million reported for the same quarter of the 2019 period. The year over year decrease of 27.8% was primarily attributable to a decrease in both selling expenses and general and administrative expenses. The decrease in selling expenses, in turn, was driven by the disposal of four office locations and having only 57 employees as of December 31st 2020.
Future Outlook for PHCF Stock
The company reported a promising quarter, as evidenced by the strength of its financial reports. PHCF stock is keen to capitalize on the scope of opportunities afforded to it as a result of the momentum generated over the course of the year. Current and potential investors are confident in management’s ability to leverage the resources at their disposal effectively. This is hoped to facilitate consistent and organic increases in shareholder value over the long term.