For fiscal years ended December 31

2021

2020

Net revenues of services

$0.79

$2.13

(62.91%)

Net commission and fees on financial guarantee
services

$0.40

$0.29

Total interest and fees income

$2.41

$2.48

(2.82%)

Operating income

$3.61

$4.90

(26.33%)

Net income

$0.76

($0.85)

N/A

Net earnings per share – Basic and Diluted

$0.01

($0.07)

N/A

($ millions, differences due to rounding) 

For the years
ended December
31,

Variance

2021

2020

Amount

%

Management and assessment service

$

0.44

$

0.02

$

0.42

2100%

Consulting services relating to debt collection

0.21

2.11

(1.90)

(90.05)%

Industrial operation services

0.14

–

0.14

100.00%

Revenues from services

$

0.79

$

2.13

$

(1.34)

(62.91)%

ROAN HOLDINGS GROUP CO., LTD.

CONSOLIDATED BALANCE SHEETS

As of December 31, 2021 and 2020

(Expressed in U.S. dollar, except for the number of shares)

December 31,
2021

December 31,
2020

  ASSETS

Cash and cash equivalents

$

1,947,142

$

4,932,048

Restricted cash

29,693,689

25,875,556

Accounts receivable, net

6,929,529

6,939,352

Inventories

33,598

30,348

Loan receivables due from third parties, net

23,751,471

17,670,652

Due from related parties

5,941

94,023

Other current assets

70,910

3,502,550

Other receivables, net

656,835

3,545,753

   Total current assets

63,089,115

62,590,282

Pledged deposits

48,752

462,835

Property and equipment, net

77,073

65,073

Intangible assets, net

3,123,394

3,977,867

Right of use assets

37,313

346,017

Goodwill

267,331

261,087

   Total non-current assets

3,553,863

5,112,879

   Total Assets

$

66,642,978

$

67,703,161

LIABILITIES

Customer pledged deposits

$

7,846

$

7,664

Unearned income

72,523

130,772

Reserve for financial guarantee losses

651,341

579,364

Dividends payable

480,000

480,000

Tax payable

2,614,257

1,767,214

Due to related parties

123,117

281,369

Warrant liabilities

16,998

13,977

Operating lease liabilities, current portion

65,498

191,643

Accrued expenses and other liabilities

1,155,903

1,642,060

Bank loans

5,961,460

8,826,054

Total current liabilities

11,148,943

13,920,117

Operating lease liabilities, noncurrent portion

–

102,767

Deferred tax liabilities

544,355

793,848

Total non-current Liabilities

544,355

896,615

Total Liabilities

$

11,693,298

$

14,816,732

Commitments and Contingencies

–

–

Shareholders’ Equity

Ordinary Share, no par value, unlimited shares authorized; 25,287,851 and
   25,287,851 shares issued and outstanding as of December 31, 2021 and December 
   31, 2020, respectively

–

–

Class A convertible preferred shares, no par value, unlimited shares authorized; 
   715,000 and 715,000 shares issued and outstanding as of December 31, 2021 and
   December 31, 2020, respectively

$

11,711,727

$

11,025,327

Class B convertible preferred shares, no par value, unlimited shares authorized; 
   291,795,150 and 291,795,150 shares issued and outstanding as of December 31, 2021 and 
   December 31, 2020, respectively

31,087,732

31,087,732

Additional paid-in capital

3,312,189

3,312,189

Statutory reserve

362,797

202,592

Accumulated deficit

(14,805,802)

(14,330,288)

Accumulated other comprehensive income

3,128,086

2,310,369

Total Roan Holdings Group Co., Ltd.’s Shareholders’ Equity

$

34,796,729

$

33,607,921

Noncontrolling interests

20,152,951

19,278,508

Total Equity

54,949,680

52,886,429

Total Liabilities and Equity

$

66,642,978

$

67,703,161

ROAN HOLDINGS GROUP CO., LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Years Ended December 31, 2021, 2020 and 2019

(Expressed in U.S. dollar, except for the number of shares)

For the Years Ended
December 31,

2021

2020

2019

Revenues from services

$

793,291

$

2,128,153

$

639,220

Revenues from healthcare service packages

–

55,301

–

Cost of revenues

–

(50,774)

(8,080)

Net revenues of services

793,291

2,132,680

631,140

Commissions and fees on financial guarantee services

456,944

375,471

8,797

Provision for financial guarantee services

(57,417)

(89,865)

(5,008)

Commission and fee income on guarantee services, net

399,527

285,606

3,789

Interest and fees income

Interest and fees on direct loans

–

–

1,153

Interest income on loans due from third parties

2,113,918

2,131,447

34,707

Interest income from factoring business

–

–

2,782,332

Interest income on deposits with banks

300,749

348,389

64,636

Total interest and fee income

2,414,667

2,479,836

2,882,828

Interest expense

Interest expenses and fees on secured loans

–

–

(2,218,815)

Net interest income

2,414,667

2,479,836

664,013

Provision for loan losses

–

–

(2,244,601)

Net interest income (loss) after provision for loan losses

2,414,667

2,479,836

(1,580,588)

Operating income (loss)

3,607,485

4,898,122

(945,659)

Total operating expenses

Salaries and employee surcharges

(1,054,509)

(1,116,482)

(512,314)

Other operating expenses

(2,241,069)

(2,995,098)

(1,385,259)

Changes in fair value of warrant liabilities

(3,021)

5,961

530,863

Total operating expenses

(3,298,599)

(4,105,619)

(1,366,710)

Other income (expenses)

Deconsolidation gain (loss)

490,283

(1,953,248)

–

Interest income (expenses), net

(267,184)

–

–

Other income (expense), net

554,167

76,406

–

Total other income (expenses)

777,266

(1,876,842)

–

Income (Loss) before income taxes

1,086,152

(1,084,339)

(2,312,369)

Income tax (expenses) recovery

(328,851)

229,733

(244,741)

Net income (loss) from continuing operations

757,301

(854,606)

(2,557,110)

Net income from discontinued operations, net of income tax

–

–

26,846,018

Net income (loss)

757,301

(854,606)

24,288,908

Dividend – convertible redeemable Class A preferred share

–

–

(686,400)

Net income attributable to noncontrolling interests

(386,210)

(838,048)

(76,108)

Net income (loss) attributable to Roan Holding Group Co., Ltd.’s
shareholders

$

371,091

$

(1,692,654)

$

23,526,400

Other comprehensive (loss) income

Foreign currency translation adjustment

1,308,444

3,461,980

1,435,262

Reclassified to net gain from discontinued operations

–

–

2,691,969

1,308,444

3,461,980

4,127,231

Comprehensive income

2,065,745

2,607,374

28,416,139

Other comprehensive income attributable to noncontrolling interests

(488,233)

(1,334,101)

(97,733)

Dividend – convertible redeemable Class A preferred share

–

–

(686,400)

Net income attributable to noncontrolling interests

(386,210)

(838,048)

(76,108)

Total comprehensive income attributable to Roan Holdings Group 
    Co., Ltd.’s shareholders

$

1,191,302

$

435,226

$

27,555,898

Weighted average number of ordinary share outstanding

Basic and Diluted*

25,287,887

25,287,887

25,287,887

Earnings (Loss) per share

Net earnings (loss) per share – Basic and Diluted

$

0.01

$

(0.07)

$

0.93

Net earnings (loss) per share from continuing operations – Basic and
Diluted

$

0.01

$

(0.07)

$

(0.13)

Net earnings per share from discontinued operations – Basic and Diluted

$

–

$

–

$

1.06

ROAN HOLDINGS GROUP CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2021, 2020 and 2019

(Expressed in U.S. dollar, except for the number of shares)

For the Years Ended
December 31,

2021

2020

2019

Cash Flows from Operating Activities:

Net income (loss)

$

757,301

$

(854,606)

$

24,288,908

Less: Net loss from discontinued operations

–

–

26,846,018

Net loss from continuing operations

757,301

(854,606)

(2,557,110)

Adjustments to reconcile net income to net cash used in operating
activities:

Depreciation and amortization expenses

1,134,738

1,102,298

55,498

Provision for credit losses

48,518

316,014

–

Provision for loan losses

–

–

2,244,601

Provision for financial guarantee losses

57,417

89,865

5,008

Deferred tax expenses

(265,421)

(1,001,372)

57,674

Changes in fair value of warrant liabilities

3,021

(5,961)

(530,863)

Net gain from disposal of fixed assets

(33,246)

(136,682)

–

Gain from lease modification

(603)

22,257

–

Accretion of finance leases

7,605

14,757

–

Gain (loss) from deconsolidation of subsidiaries

(490,283)

1,953,248

–

Changes in operating assets and liabilities:

Accounts receivable

(7,495)

(3,116,533)

(206,442)

Inventory

(3,250)

(30,348)

–

Interest and fees receivable

–

–

(149,013)

Other current assets

3,431,640

(3,215,702)

(289,694)

Other receivables

2,425,003

(3,268,571)

–

Pledged deposits and other non-current assets

414,265

359,202

–

Advances from customers

(58,249)

7,915

(6,702)

Tax payable

847,043

1,029,919

273,589

Accrued expenses and other liabilities

449,971

(727,211)

28,875

Net Cash Provided by (Used in) Operating Activities from 
Continuing Operations

8,717,975

(7,461,511)

(1,074,579)

Net Cash Used in Operating Activities from Discontinued 
Operations

–

–

(26,564)

Net Cash Provided by (Used in) Operating Activities

8,717,975

(7,461,511)

(1,101,143)

Cash Flows from Investing Activities:

Repayment of loans from factoring customers

–

–

107,833,488

Proceeds of loans from third parties

20,499,442

–

–

Loans disbursement to third parties

(26,100,286)

(3,467,607)

–

Loans disbursement to factoring customers

–

–

(43,422,881)

Purchases of property and equipment

(54,569)

–

(833)

Acquisition of a subsidiary

–

–

(427,318)

Acquisition of cash from acquired subsidiary

–

–

21,442,122

Proceeds from disposal of discontinued operations

–

–

504,713

Net inflow related to deconsolidation of subsidiaries

788

61,121

–

Redemption of short-term investment

–

8,690,374

–

Due to (from) related party

(70,169)

210,774

–

Proceeds from sale of property and equipment

40,305

837,969

–

Net Cash (Used in) Provided by Investing Activities from Continuing 
Operations

(5,684,489)

6,332,631

85,929,291

Net Cash Provided by Investing Activities from Discontinued

Operations

–

–

35,765

Net Cash (Used in) Provided by Investing Activities

(5,684,489)

6,332,631

85,965,056

Cash Flows from Financing Activities:

Borrowing from a related party

–

–

279,020

Proceeds from bank loans

5,889,179

8,341,311

–

Repayment of bank loans

(8,927,555)

–

–

Proceeds from secured loans

–

–

43,422,881

Repayment of secured loans

–

–

(107,833,488)

Repayment of third-party loans

–

(280,268)

–

Repayment of lease liabilities

(76,102)

(207,891)

–

Net Cash (Used in) Provided by Financing Activities from 
Continuing Operations

(3,114,478)

7,853,152

(64,131,587)

Net Cash Used in Financing Activities from Discontinued
Operations

–

–

(7,251)

Net Cash (Used in) Provided by Financing Activities

(3,114,478)

7,853,152

(64,138,838)

Effect of exchange rate changes on cash, cash equivalents, and restricted
   cash in banks

914,219

1,937,807

119,326

Net increase in cash, cash equivalents, and restricted cash in banks

833,227

8,662,079

20,844,401

Cash, cash equivalents, and restricted cash in banks at beginning of year

30,807,604

22,145,525

1,301,124

Cash, cash equivalents, and restricted cash in banks at end of year

$

31,640,831

$

30,807,604

$

22,145,525

Supplemental Cash Flow Information

Cash paid for interest expense

$

269,400

$

–

$

–

Cash paid for income tax

$

–

$

–

$

–

Noncash investing activities

Acquisition of a subsidiary by issuance of Class B Preferred Shares

$

–

$

–

$

31,087,732

Receivable from disposal of discontinued operations

$

–

$

–

$

940,829

Right of use assets obtained in exchange for operating lease obligations

$

–

$

–

$

615,000

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the
statement of financial position that sum to the total of the same amounts shown in the consolidated statements of cash
flows:

December 31,
2021

December 31,
2020

Cash and cash equivalents

$

1,947,142

$

4,932,048

Restricted cash in banks

29,693,689

25,875,556

Total cash, cash equivalents and restricted cash

$

31,640,831

$

30,807,604