Exhibit 99.1

 

Puhui Wealth Investment Management Co. Ltd. Announces Financial Results

for the Six Months Ended December 31, 2018

Highlighted by Increased Revenues and High Net Worth Clientele

Beijing, China – June 21, 2019 – Puhui Wealth Investment Management Co., Ltd. (Nasdaq: PHCF) (“Puhui” or the “Company”), a third-party wealth management service provider with a focus on wealth management services for high net worth (“HNW”) individuals and corporate clients, today announced its financial results for the six months ended December 31, 2018. The Company also filed these results on Form 6-K with the Securities and Exchange Commission, which can be viewed at www.sec.gov. All amounts in this press release are in USD unless otherwise noted.

Financial and Operating Highlights

● Total revenues for the six months ended December 31, 2018 were approximately $1.9 million, a 148.1% increase from the same period in 2017.

● The Company continues to add incremental HNW clientele, with new HNW clients transacting with Puhui totaling 92 for the six months ended December 31, 2018.

● Following Puhui’s completion of its December 2018 initial public offering (“IPO”), the Company has continued to see a strong increase in HNW clients. From January 1, 2019 to May 1, 2019, the number of HNW clients transacting with Puhui was 109.

● As of December 31, 2018, the Company’s subsidiary served as manager or general partner of four funds with an aggregate of approximately $23.5 million under management.

● The Company’s average transaction value per client was $143,972 for the six months ended December 31, 2018.

● As of May 1, 2019, the Company maintained 7 sales and service locations based in Beijing (3), Shanghai, Suzhou, Qingdao, and Changchun.

● Established a strategic cooperation with a well-known investment manager, Yingke Innovation Asset Management Co., Ltd., to jointly establish an equity investment fund with a total size of RMB1 billion, to be launched in stages.

● Signed recent strategic cooperation agreement to jointly offer asset management services with Hongtang Culture Investment Co., which is focused on THANG-GA research, drawing, works collection and market promotion.

● Puhui had approximately $7.5 million of cash and approximately $14.4 million of working capital as of December 31, 2018.

Mr. Zhe Ji, the Chairman and CEO of the Company, stated, “Puhui had an excellent end to the year in both servicing a higher number of high net worth clientele while also increasing revenues. While our December 31, 2018 financial results were impacted by higher expenses and time devoted to the completion of our December 2018 IPO and listing on Nasdaq, we have seen our brand recognition and clientele increase substantially since this period. Our Company offers a diversified array of products for individuals seeking alternative means for enhancing investment returns.”

Mr. Ji continued, “We have been very pleased with our initial performance since our public listing, and feel that there is considerable upside for Puhui to take advantage of China’s growing wealth management market. We opened sales and service offices in three new locations since beginning of 2019 and are actively looking to expand our network by opening new sales and service offices throughout China in strategic locations that are leading industrial and business development centers throughout the country. While our intended acquisition of a Hong Kong based financial services company has entered into its late stage pending final approval, we are continuing to seek new acquisition opportunities to broaden our geographic reach outside of mainland China, including but not limited to asset management businesses and businesses with alternative strategies.”

Financial Review for the Six Months Ended December 31, 2018

Selected Financial Highlights

	For the Six Months Ended December 31, 2018			For the Six Months Ended December 31, 2017			Change			Change (%)
	(Unaudited)			(Unaudited)
Total Revenues	$	1,866,970		$	752,495		$	1,114,475			148.1	%
Cost of revenues		206,881			122,452			84,429			68.9	%
Selling expenses		922,693			731,268			191,425			26.2	%
General and administrative expenses		1,392,919			1,177,407			215,512			18.3	%
Loss from operations		(655,523	)		(1,278,632	)		623,109			(48.7	)%
Loss before income taxes		(718,605	)		(1,293,719	)		575,114			(44.5	)%
Provision for current income taxes		-			19,261			(19,261	)		(100.0	)%
Provision (benefit) for deferred income taxes		27,410			(284,826	)		312,236			(109.6	)%
Net loss		(746,015	)		(1,028,154	)		282,139			(27.4	)%

Wealth Management

● Since fiscal year 2017, Puhui’s core business has been the marketing of financial products to high-net-worth clients and small and medium enterprises in China. The total number of HNW clients transacting with Puhui since inception is approximately 959 as of April 30, 2019.

Asset Management

● Starting in June 2017, Puhui also launched our in-house asset management business. As of December 31, 2018, the Company’s subsidiary served as manager or general partner of four funds with an aggregate of approximately US$23.5 million under management.

Revenues

● The Company categorizes revenues into third-party revenues and related-party revenues. Related party revenues consist primarily of recurring management fees paid by limited partnership funds where the Company serves as general partner.

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● Overall, total revenues increased by 148.1% to $1.9 million for the six months ended December 31, 2018, from $752,495 in the prior year six month period. The overall increase was mainly due to high-net-worth clients investing in equity investments in entities that invest in U.S. publicly listed companies.

Cost of Revenues

● Puhui’s cost of revenues consist of compensation paid to financial product development team members along with benefits. The Company’s cost of revenues were $206,881 and $122,452 for the six months ended December 31, 2018 and 2017, respectively, an increase of $84,429 or 68.9%. The increase in cost of revenues was due to the increase in revenue.

Operating Expense

● The Company’s operating expense increased to $2.5 million from $2.0 million in the prior year period, largely due to an increase in salaries, rent and professional fees associated with the Company’s IPO process.

Net Loss

Net loss for the six month period ended December 31, 2018 was reduced to $746,015, as compared to $1,028,154 for the six month period ended December 31, 2017.

Liquidity and Capital Resources

● The Company historically financed its operations primarily through cash flows from operations, additional capital contributions from shareholders and short-term advances from related parties.

● For the six months ended December 31, 2018, the Company received approximately $8.0 million, net of expenses, from issuance of ordinary shares throughout IPO.

● As of December 31, 2018, the Company had two unsecured loans from two unrelated creditors, in the aggregate amount of approximately $1.5 million, with an average maturity of three years an average interest rate of 13.5% per annum.

● As a result of all above factors, the Company had approximately $14.4 million of working capital as of December 31, 2018.

Cash

● As of December 31, 2018, the Company had cash of approximately $7.5 million, as compared to $4.8 million as of June 30, 2018.

About Puhui Wealth Investment Management Co., Ltd.

Headquartered in Beijing, China, engaging its operation through its subsidiary, Puhui Finance Investment Management (Beijing) Co., Ltd, which is a third-party wealth management service provider focusing on marketing financial products (including private equity and other diversified products and services) to, and managing funds for, individuals and corporate clients in the PRC. On December 27, 2018, the Company’s ordinary shares were listed and began trading listed on the Nasdaq Capital Market (ticker: PHCF).

Additional information about Puhui can be found at the Company’s corporate website: www.puhuiwealth.com.

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Forward Looking Statements

This news release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that indicate future events or trends or are not statements of historical matters. These statements are based on our management’s current expectations and beliefs, as well as a number of assumptions concerning future events.

Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of our control and all of which could cause actual results to differ materially from the results discussed in the forward-looking statements. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in our reports filed with the Securities and Exchange Commission, which are available, free of charge, on the SEC’s website at www.sec.gov.

Investor Relations:

The Equity Group Inc.	In China
Adam Prior, Senior Vice President	Katherine Yao, Senior Associate
(212) 836-9606	+86 10 5661 7012
aprior@equityny.com	kyao@equityny.com

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PUHUI WEALTH INVESTMENT MANAGEMENT CO., LTD AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

	For the Six Months Ended December 31,
	2018			2017
REVENUES
Revenues - third parties	$	1,872,685		$	505,479
Revenues - related parties		7,779			249,187
Sales taxes		(13,494	)		(2,171	)
Total revenues		1,866,970			752,495
OPERATING EXPENSES
Cost of revenues		(206,881	)		(122,452	)
Selling expenses		(922,693	)		(731,268	)
General and administrative expenses		(1,392,919	)		(1,177,407	)
Total operating expenses		(2,522,493	)		(2,031,127	)
LOSS FROM OPERATIONS		(655,523	)		(1,278,632	)
OTHER INCOME (EXPENSES)
Interest income		6,091			1,987
Other finance expenses		(101,069	)		(29,789	)
Other income (expenses), net		31,896			12,715
Total other expenses, net		(63,082	)		(15,087	)
LOSS BEFORE INCOME TAXES		(718,605	)		(1,293,719	)
PROVISION (BENEFIT) FOR INCOME TAXES
Current		-			19,261
Deferred		27,410			(284,826	)
Total income tax provision (benefit)		27,410			(265,565	)
NET LOSS		(746,015	)		(1,028,154	)
Less: Net loss attributable to noncontrolling interest		(282,524	)		(210,724	)
NET LOSS ATTRIBUTABLE TO PUHUI WEALTH	$	(463,491	)	$	(817,430	)
NET LOSS	$	(746,015	)	$	(1,028,154	)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment		(285,769	)		56,836
COMPREHENSIVE LOSS	$	(1,031,784	)	$	(971,318	)
Less: Comprehensive loss attributable to noncontrolling interest		(310,967	)		(191,119	)
COMPREHENSIVE LOSS ATTRIBUTABLE TO PUHUI WELATH	$	(720,817	)	$	(780,199	)
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES
Basic and diluted		10,090,126			10,000,000
EARNINGS PER SHARE
Basic and diluted	$	(0.046	)	$	(0.082	)

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PUHUI WEALTH INVESTMENT MANAGEMENT CO., LTD AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

	December 31,			June 30,
	2018			2018
ASSETS
CURRENT ASSETS
Cash	$	7,465,079		$	4,809,040
Short-term investments		705,835			1,101,317
Accounts receivables		1,129,876			1,673,764
Accounts receivables - related parties		1,012,575			1,051,718
Other receivables		542,101			206,831
Prepaid expenses and acquisition deposit		4,743,879			681,899
Deferred offering costs		-			700,094
Total current assets		15,599,345			10,224,663
PROPERTY AND EQUIPMENT, NET		144,111			135,682
OTHER ASSETS
Intangible asset, net		38,563			-
Deferred tax assets, net		696,615			782,911
Total other assets		735,178			782,911
Total assets	$	16,478,634		$	11,143,256
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Customer deposits	$	-		$	250,529
Other payables and accrued liabilities		632,478			677,215
Other payables - related parties		-			196,300
Deferred revenues		259,916			303,637
Taxes payable		15,654			356,440
Current portion of long-term debt		290,761			302,001
Total current liabilities		1,198,809			2,086,122
LONG-TERM DEBT		1,163,044			1,208,003
Total liabilities		2,361,853			3,294,125
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Preferred shares, $0.001 par value, 1,000,000 shares authorized, 0 shares issued and outstanding as of December 31, 2018 and June 30, 2018		-			-
Ordinary shares, $0.001 par value, 49,000,000 shares authorized, 11,507,558 and 10,000,000 shares issued and outstanding of December 31, 2018 and June 30, 2018		11,508			10,000
Additional paid-in capital		21,911,045			14,613,119
Accumulated deficit		(7,227,646	)		(6,764,155	)
Accumulated other comprehensive loss		(264,646	)		(7,320	)
Total shareholders’ equity attributable to controlling shareholders		14,430,261			7,851,644
Noncontrolling interest		(313,480	)		(2,513	)
Total shareholders’ equity		14,116,781			7,849,131
Total liabilities and shareholders’ equity	$	16,478,634		$	11,143,256

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PUHUI WEALTH INVESTMENT MANAGEMENT CO., LTD AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the Six Months Ended
	December 31,
	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(746,015	)	$	(1,028,154	)
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		67,704			24,162
Loss on disposal of property and equipment		-			274
Impairment loss on equity securities		5,512			-
Deferred tax provision (benefit)		57,271			(284,827	)
Change in operating assets and liabilities
Accounts receivables		482,556			351,116
Other receivables		(343,652	)		(69,936	)
Prepaid expenses		(982,395	)		(160,863	)
Customer deposit received (returned)		(231,956	)		963,034
Other payables and accrued liabilities		85,310			94,452
Other payables - related parties		(189,372	)		-
Deferred revenue		(32,485	)		246,689
Taxes payable		(328,175	)		(42,576	)
Net cash (used in) provided by operating activities		(2,155,697	)		93,371
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of short-term investments		338,878			-
Purchases of short-term investments		-			(4,878,049	)
Acquisition deposit		(3,264,978	)		-
Purchase of property and equipment		(107,292	)		(18,680	)
Proceeds from sale of property and equipment		-			3,464
Purchase of intangible asset		(12,558	)		-
Net cash used in investing activities		(3,045,950	)		(4,893,265	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Capital contribution from shareholders		-			5,516,522
Proceeds from issuance of ordinary shares through IPO, net		8,032,912			-
Proceeds from long-term debt		-			1,506,035
Net cash provided by financing activities		8,032,912			7,022,557
EFFECT OF EXCHANGE RATE ON CASH		(175,226	)		(30,017	)
INCREASE IN CASH		2,656,039			2,192,646
CASH, beginning of period		4,809,040			322,518
CASH, end of period	$	7,465,079		$	2,515,164
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income tax	$	227,152		$	-
Cash paid for interest	$	196,655		$	-
NON-CASH TRANSACTIONS OF FINANCING ACTIVITIES
Prepaid IPO costs netted against IPO proceeds	$	733,478		$	-

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