China United Insurance Service, Inc.

CIK:0001512927|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)
Revenue	$ 33,790,314	$ 30,980,523
Cost of revenue	22,242,147	19,009,519
Gross profit	11,548,167	11,971,004
Operating expenses:
Selling	593,671	684,150
General and administrative	6,248,154	5,973,039
Total operating expense	6,841,825	6,657,189
Income from operations	4,706,342	5,313,815
Other income (expenses):
Interest income	208,811	104,977
Interest expenses	(188,417)	(52,335)
Foreign currency exchange (loss) gain, net	(137,488)	737,550
Other - net	236,900	162,048
Total other income, net	119,806	952,240
Income before income taxes	4,826,148	6,266,055
Income tax expense	(1,245,487)	(1,581,897)
Net income	3,580,661	4,684,158
Less: net income attributable to noncontrolling interests	(1,719,218)	(1,739,281)
Net income attributable to China United's shareholders	1,861,443	2,944,877
Other comprehensive items, net of tax:
Foreign currency translation gain (loss)	656,425	(3,113,495)
Total other comprehensive gain (loss)	656,425	(3,113,495)
Comprehensive income	4,237,086	1,570,663
Less: comprehensive income attributable to noncontrolling interests	(1,934,432)	(697,445)
Comprehensive income attributable to China United's shareholders	$ 2,302,654	$ 873,218
Weighted average shares outstanding:
Basic	30,286,199	30,286,199
Diluted	30,286,199	30,286,199
Earnings per share attributable to China United's shareholders:
Basic	$ 0.059	$ 0.094
Diluted	$ 0.059	$ 0.094

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income	$ 3,580,661	$ 4,684,158
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	286,100	286,049
Amortization of right-of-use assets	944,658	951,111
(Gain) loss on valuation of financial assets	(136,759)	11,177
Loss on disposal of equipment	11,623	4,368
Deferred income tax	41,361	41,730
Unrealized foreign currency exchange losses (gains)	103,997	(228,109)
Net changes in operating assets and liabilities:
Accounts receivable	7,016,030	7,774,338
Contract assets	(1,659,795)	(468,333)
Other current assets	(23,084)	(107,500)
Other assets	20,049	112,257
Commission payable to sales professionals	(3,814,942)	(3,799,212)
Contract liabilities	(25,692)
Income tax payable	696,056	1,327,928
Other current liabilities	(1,658,158)	(1,758,352)
Other liabilities	(1,696)
Lease liabilities	(998,863)	(1,232,314)
Net cash provided by operating activities	4,381,546	7,599,296
Cash flows from investing activities:
Purchases of time deposits	(38,625,051)	(23,217,843)
Proceeds from maturities of time deposits	30,976,477	16,562,521
Purchases of marketable securities		(846,673)
Proceeds from receipts in advance of disposal of a subsidiary		2,316,652
Purchase of equipment	(262,677)	(69,500)
Purchase of intangible assets	(20,995)	(76,637)
Net cash used in investing activities	(7,932,246)	(5,331,480)
Cash flows from financing activities:
Proceeds from short-term loans	26,849,638	6,488,087
Repayment of short-term loans	(25,849,638)	(5,423,529)
Proceeds from related party borrowings	2,356
Repayment of related party borrowings		(9,789)
Net cash provided by financing activities	1,002,356	1,054,769
Foreign currency translation	200,642	(1,036,139)
Net (decrease) increase in cash, cash equivalents and restricted cash	(2,347,702)	2,286,446
Cash, cash equivalents and restricted cash, beginning balance	25,565,261	18,322,632
Cash, cash equivalents and restricted cash, ending balance	23,217,559	20,609,078
SUPPLEMENTARY DISCLOSURE:
Interest paid	181,410	52,490
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Lease liabilities arising from new right-of-use assets	$ 710,883	$ 1,096,615

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 23,206,656	$ 25,557,582
Time deposits	74,993,723	66,969,959
Accounts receivable	20,745,793	27,562,055
Contract assets	1,654,986	0
Marketable securities	945,889	816,749
Other current assets	1,179,003	1,146,749
Total current assets	122,726,050	122,053,094
Right-of-use assets under operating leases	6,928,598	7,162,373
Property and equipment, net	1,642,421	1,634,116
Intangible assets, net	324,270	333,966
Long-term investments	2,363,450	2,335,655
Restricted cash - noncurrent	10,903	7,679
Deferred tax assets	964,281	999,101
Other assets	4,370,243	4,366,812
TOTAL ASSETS	139,330,216	138,892,796
Current liabilities
Commission payable to sales professionals	12,523,502	16,221,438
Short-term loans	22,071,863	21,009,464
Contract liabilities - current	130,589	155,189
Income tax payable - current	4,119,583	2,920,542
Operating lease liabilities - current	3,396,741	3,556,295
Due to related parties	26,305	53,868
Other current liabilities	10,996,893	12,593,597
Total current liabilities	53,265,476	56,510,393
Contract liabilities - noncurrent	1,249,652	1,241,514
Income tax payable - noncurrent	299,797	299,797
Operating lease liabilities - noncurrent	3,439,892	3,514,245
Net defined benefit liabilities - noncurrent	305,857	305,545
Other liabilities		488,846
TOTAL LIABILITIES	58,560,674	62,360,340
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, par value $0.00001, 10,000,000 authorized, 1,000,000 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	10	10
Common stock, par value $0.00001, 100,000,000 authorized, 30,286,199 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	303	303
Additional paid-in capital	9,296,953	9,296,953
Statutory reserves	12,514,095	12,514,095
Retained earnings	25,239,943	23,378,500
Accumulated other comprehensive (loss)	(1,402,593)	(1,843,804)
Total stockholders' equity attributable to China United's shareholders	45,648,711	43,346,057
Noncontrolling interests	35,120,831	33,186,399
TOTAL STOCKHOLDERS' EQUITY	80,769,542	76,532,456
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 139,330,216	$ 138,892,796