The financial statements for the first half year ended June 30, 2023 of Top KingWin Ltd (the "Company", "we" or "us") included herein have not been audited by the Company's independent registered accounting firm.

TOP KINGWIN LTD
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2023
AND DECEMBER 31, 2022
(In USD)

June 30,
2023 		December 31,
2022
ASSETS
CURRENT ASSETS
Cash $ 4,892,680 $ 2,654,185
Accounts receivable, net 798,482 95,691
Accounts receivable - related party, net 379,248 -
Prepayments 379,083 12,248
Prepayment for mergers and acquisitions 4,000,000 -
Other receivables 166,836 97,911
Total current assets 10,616,329 2,860,035
NON-CURRENT ASSETS
Property and equipment, net 183,917 210,330
Intangible assets, net 32,697 30,538
Operating lease right-of-use assets 417,116 522,278
Deferred tax assets - 118,159
Other non-current assets 38,405 40,376
Deferred offering costs - 1,306,313
Total non-current assets 672,135 2,227,994
TOTAL ASSETS $ 11,288,464 $ 5,088,029
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 521,034 $ 264,006
Operating lease liabilities - current 169,656 165,506
Advance from clients 611,425 187,630
Due to related parties 29,098 1,129,005
Taxes payable 81,799 37,919
Accruals and other payables 828,609 1,108,910
Total current liabilities 2,241,621 2,892,976
NON-CURRENT LIABILITIES
Operating lease liabilities - non-current 266,414 373,068
Total non-current liabilities 266,414 373,068
TOTAL LIABILITIES 2,508,035 3,266,044
SHAREHOLDERS' EQUITY
Class A ordinary shares, $0.0001 par value, 300,000,000 shares authorized, 8,213,040 and 10,963,040 shares issued and outstanding as of December 31, 2022 and June 30, 2023 $ 1,096 $ 821
Class B ordinary shares, $0.0001 par value, 200,000,000 shares authorized, 3,786,960 shares issued and outstanding as of December 31, 2022 and June 30, 2023 379 379
Share subscription receivables - (1,200 )
Additional paid-in capital 8,160,307 114,726
Statutory reserve 282,545 282,545
Retained earnings 542,079 1,563,563
Accumulated other comprehensive loss (205,977 ) (138,849 )
Total shareholders' equity 8,780,429 1,821,985
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 11,288,464 $ 5,088,029

TOP KINGWIN LTD
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND
COMPREHENSIVE (LOSS) INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022
(In USD)

Six Months Ended
June 30,
2023 2022
REVENUES 2,814,664 1,726,719
COST OF REVENUES (746,661 ) (370,298 )
GROSS PROFIT 2,068,003 1,356,421
OPERATING EXPENSES
Selling expenses (1,203,472 ) (319,262 )
General and administrative expenses (1,877,461 ) (730,725 )
Total operating expenses (3,080,933 ) (1,049,987 )
(LOSS) INCOME FROM OPERATIONS (1,012,930 ) 306,434
OTHER INCOME (EXPENSE), NET
Other income 58,524 17,667
Other expense (6,638 ) (3,733 )
Total other income, net 51,886 13,934
NET (LOSS) INCOME BEFORE INCOME TAXES (961,044 ) 320,368
Income tax (expense) benefit (117,629 ) 67,183
NET (LOSS) INCOME $ (1,078,673 ) $ 387,551
Other comprehensive loss
Foreign currency translation loss (65,734 ) (150,132 )
TOTAL COMPREHENSIVE (LOSS) INCOME $ (1,144,407 ) $ 237,419
Basic and diluted (loss) earnings per share* $ (0.08 ) $ 0.03
Weighted average number of common shares outstanding - basic and diluted* 13,115,278 12,000,000
* Giving retroactive effect to the nominal issuance of shares effected on January 10, 2023

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First Half 2023 Financial Results

Revenues

Revenues for the first half of 2023 reached $2,814,664, marking an increase of 63% from the $1,726,719 reported in the same period of 2022, primarily due to the increase in the revenue generated from corporate business training services.

Service Category 1H 2023 1H 2022 %
Advisory and transaction services $ 1,256,894 $ 1,263,517 (1 )
Corporate business training services 1,483,471 160,079 827
Corporate consulting services 74,299 300,675 (75 )
Others - 2,448 (100 )
Total $ 2,814,664 $ 1,726,719 63

Cost of Revenues

Cost of revenues was $746,661 for the first half of 2023, reflecting a 102% increase as compared to $370,298 for the same period of 2022. The increase was primarily due to the increase of costs of revenues from corporate business training services, which was proportionally in line with the increase of revenue from corporate business training services.

Gross Profit

The gross profit was $2,068,003 and $1,356,421 with gross margins of 73% and 79% for the six months ended June 30, 2023 and 2022, respectively. The decrease in gross margin was primarily due to the fact that we incurred more referral fees and commission fees to improve our corporate business training services, which was in line with the increase of revenue generated from corporate business training services.

Operating Expenses

Total operating expenses were $3,080,933 in the first half of 2023, representing an increase of 193% as compared to $1,049,987 for the same period of 2022. Selling expenses increased by $884,210 or 277%, which was mainly driven by the expansion of the marketing department staff and an increase in travel expenses during the period. General and administrative expenses increased by $1,146,736 or 157%, which was mainly due to one-time costs related to the initial public offering, the business expansion and the corresponding increase in the number of employees, leading to a rise in wage costs.

(Loss) Income from Operations

Loss from operations was $1,012,930 for the first half of 2023, as compared to an income from operations of $306,434 for the same period of 2022.

Total other income, net

Total other income was $51,886 for the first half of 2023, as compared to $13,934 for the same period of 2022.

Net (Loss) Income

Net loss was $1,078,673 for the first half of 2023, as compared to a net income of $387,551 for the same period of 2022.

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Top KingWin Ltd. published this content on 27 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 December 2023 21:27:17 UTC.