Roan Holdings Group Co., Ltd. Reports 2021 Financial Year Results

BEIJING and HANGZHOU,China,April 23,2022 -- Roan Holdings Group Co.,Ltd. ("Roan" or the "Company") (OTC Pink Sheets: RAHGF and RONWF),a comprehensive solution provider for industrial operation and capital market services,today reported its financial results for the fiscal year ended December 31,2021. All amounts are in U.S. dollars.

Fiscal year 2021 Highlights:

Net income increased to $0.76 million for the year ended December 31,2021 from a net loss of $0.85 million for the year ended December 31,2020.

Net earnings per share increased to $0.01 for the year ended December 31,2021 from a net loss per share of $0.07 for the year ended December 31,2020.

Net commission and fees on financial guarantee services was $0.40 million for the year ended December 31,2021,as compared to $0.29 million for fiscal year 2020,reflecting an increase of 37.93% for business development.

Operating expenses in total decreased by $0.81 million,to $3.30 million for year ended December 31,2021 compared to $4.11 million for the year ended December 31,2020. The decreases were primarily the result of the Company's cost control strategies.

For fiscal years ended December 31

($millions,exceptpershare data,differences

due to rounding)

2021

2020

%

Change

Net revenues of services

$0.79

$2.13

(62.91%)

Net commission and fees on financial guarantee

services

$0.40

$0.29

37.93%

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

Mr. Junfeng Wang,Chairman of the Board commented,"We are pleased to conclude fiscal year 2021 with sound financial performance. Although the external environment is full of challenges,through our service and extensive cooperation experience and resources accumulated over the past 10 years and with more than 500 customers and partners in various industries,the Company further optimized its strategic planning and business layout in 2021,and is in process of reforming operation structure,optimization of management team,integration of market resources,establishment of new business entities,and upgrading of our business services and products to meet Roan's future development needs. As a result,the Company not only achieved substantial improvement in financial performance in 2021,but also turned from a net loss of $0.85 million in fiscal year 2020 to a net profit of $0.76 million in fiscal year 2021. At the same time,Roan has successfully expanded its business into the field of new energy,new materials,and semiconductor related industries,and we obtained our first $0.14 million industrial operation service fee income."

"In the future,through our strategic business layout in industrial operation and capital market services,the Company plans to obtain long-term operation rights for new-generation technologies,products,and services in the fields of new energy,semiconductors,culture,tourism,and health so as to position ourselves to generate income from our services and products in order to share further the upward trend of these industries," Mr Wang said.

Mr. Wenhao Wang,Chief Financial Officer of Roan,commented: "In 2021,in line with our expectations,we became profitable,turning around from last year's losses. We grew our annual net income by $1.61 million to $0.76 million. We boosted our business development by upgrading our business ecosystem,and we applied cost-efficient strategies that helped us save $0.81 million in operating expenses for the past year. We also havea positive working capital balance of $51.94 million as of December 31,which makes us believe that the efforts we put in place and the strategic development we are taking will bring us significantimprovements toprofitability,creatinglong-term value for our shareholders."

Fiscal Year 2021 Financial Results

Services Revenues

The following table sets forth a breakdown of our revenue by services offered for the years ended December 31,2021 and 2020:

($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)%

Management and assessment services

Revenue from management and assessment services was $0.44 million ended December 31,which was increased 0.42 million or 2100% compared with $0.02 million for the year ended December 31,2020. The increase was caused by the new contracts of management and assessment services brought significant revenue and cashflow to the Company.

Consulting services relating to debt collection

Revenue from consulting services relating to debt collection was $0.21 million for the year ended December 31,a decrease of $1.90 million,or 90.05%,as compared to $2.11 million for the year ended December 31,2020,which was mainly due to the negative impact of the COVID pandemic. We had less contracts for debt collection service during the year ended December 31,2021.

Industrial operation services

On December 31,Hangzhou Zeshi investment partnership ("Zeshi investment"),a wholly-owned subsidiary of the Company,entered into an agreement with ZhongTan Future New Energy Industry Development (Zhejiang) Co.,Ltd. ("ZhongTan"). Revenue of $0.14 million was recognized during the year ended December 31,2021 after the target customer was located,due diligence and initial negotiation was completed,and requirements of ZhongTan were met.

Revenue for commission and fees on financial guarantee services

Commission and fees on financial guarantee services was $0.46 million for the year ended December 31,an increase of $0.08 million,or 21.05% as compared to $0.38 million for fiscal year 2020,reflecting an increase for business development.

The provisions for financial guarantee services are related to financial guarantee service business as per the requirement of local government. Provisions for financial guarantee services was $0.06 million for the year ended December 31,as compared to $0.09 million for last fiscal year.

Interest and fee income

Interest and fee income primarily consisted of interest and fee income generated from loans due from third parties. Interest and fee income was $2.41 million,a decrease of $0.07 million,or 2.82% for the year ended December 31,2021 as compared to $2.48 million for fiscal year 2020. The decrease was mainly due to a decrease of $0.02 million in interest income from loans due from third parties and a decrease of $0.05 million in interest income on provision deposits with banks.

Operating expenses

Operating expenses in total decreased by $0.81 million,or 19.70% to $3.30 million for year ended December 31,2020. The decreases in these expenses were primarily the result of our cost control strategies.

Net income

As a result of the foregoing,we had a net income of $0.76 million for the year ended December 31,as compared to a net loss of $0.85 million for the year ended December 31,2020

Cash and cash equivalents

Cash and cash equivalents were $1.95 million as of December 31,reflecting a decrease of $2.98 million from $4.93 million as at December 31,primarily because of the repayment of bank loan of $2.94 million during the year ended December 31,2021.

Working capital

Our working capital was$51.94 million as of December 31,2021.

Recent developments

On February 28,2022,the Company signed a five-year industrial operation cooperation agreement with Jiushang (Hangzhou) Semiconductor Technology Co.,Ltd. ("Jiushang"). The Company will provide Jiushang with financing and operation services,and cooperate in the transformation and industrialization of Jiushang semiconductor's new technological achievements in the Chinese market.

On December 16,Hangzhou Zeshi invested RMB 2 million (approximately $0.31 million) in Medium Carbon Future New Energy Industry Development (Zhejiang) Co.,Ltd. ("Medium Carbon"),and held 2% its equity. Future New Energy invested RMB 20 million (approximately $3.10 million) and held 20% its equity. The registered capital of Medium Carbon is RMB 100 million (approximately $15.49 million).

On November 24,Hangzhou Zeshi,a wholly owned subsidiary of the Company invested RMB100,000 (approximately $0.02 million) in Hangzhou Future New Energy Enterprise Management Partnership (Limited Partnership) ("Future New Energy") and held 1% of the equity of Future New Energy. The registered capital of Future New Energy is RMB 10 million (approximately $1.55 million).

About Roan Holdings Group Co.,Ltd.

Founded in 2009,Roan Holdings Group Co.,Ltd. (OTC Pink: RAHGF and RONWF) is a comprehensive solution provider for industrial operation and capital market services. Adhering to the platform strategy of "cross collaboration,technology empowerment,sustainability and stability,and combination of operation and finance resources",the Company's services focus on the new energy,and semiconductor industries. At the same time,the Company focuses on the application of innovative technologies in the consumer industry with respect to financial consumption,cultural and tourism consumption,and great health ecosysystem. Roan aims to provide comprehensive solutions and supporting services for diversified institutuional and local government clients across the entire industry chain. Roan has offices in Hangzhou and Beijing and subsidiaries in Hangzhou,Ningbo,Shaoxing and Tianjin. For more information,please visit: www.roanholdingsgroup.com.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934,as amended,and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to,among others,the consummation of the proposed transaction,and can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Such statements are based upon management's current expectations of the consummation of the proposed transaction,and relate to events that involve known or unknown risks,uncertainties and other factors,all of which are difficult to predict and many of which are beyond the Company's control. Further information regarding these and other risks,uncertainties or factors are included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information,future events or otherwise,except as required under law.

IR Contact:

At the Company:

Katrina Wu

Email: xiaoqing.wu@roanholdingsgroup.com

Phone: +86-571-8662 1775

Investor Relations Firm:

Janice Wang

EverGreen Consulting Inc.

Email: IR@changqingconsulting.com

Phone: +1 571-464-9470 (from U.S.)

+86 13811768559 (from China)

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)

December31,

2021

December31,

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

1,060

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

$

11,298

$

14,816,732

Commitments and Contingencies

-

-

Shareholders' Equity

Ordinary Share,no par value,unlimited shares authorized; 25,287,851 and

25,851 shares issued andoutstanding as of December 31,2021 and December

31,respectively

-

-

Class A convertible preferred shares,unlimited shares authorized;

715,000 and 715,000 shares issuedand outstanding as of December 31,2021 and

December 31,respectively

$

11,711,727

$

11,025,327

Class B convertible preferred shares,unlimited shares authorized;

291,795,150 and 291,150shares issued and outstanding as of December 31,respectively

31,087,732

31,732

Additional paid-in capital

3,312,189

3,189

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

$

66,161

ROAN HOLDINGS GROUP CO.,LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the Years Ended December 31,2020 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

$

2,153

$

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

2,836

664,013

Provision for loan losses

-

-

(2,244,601)

Net interest income (loss) after provision for loan losses

2,836

(1,580,588)

Operating income (loss)

3,485

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)

(2,369)

Income tax (expenses) recovery

(328,851)

229,733

(244,741)

Net income (loss) from continuing operations

757,301

(854,606)

(2,557,110)

Net incomefrom discontinued operations,net of income tax

-

-

26,846,018

Net income (loss)

757,606)

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

1,444

3,980

4,127,231

Comprehensive income

2,065,745

2,374

28,416,139

Other comprehensive income attributable to noncontrolling interests

(488,233)

(1,334,101)

(97,733)

Dividend – convertible redeemable Class A preferred share

-

-

(686,108)

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*

25,887

25,887

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

2019

Cash Flows from Operating Activities:

Net income (loss)

$

757,301

$

(854,606)

$

24,908

Less: Net loss from discontinued operations

-

-

26,018

Net loss from continuing operations

757,110)

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

-

-

2,601

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)

1,248

-

Changes in operating assets and liabilities:

Accounts receivable

(7,495)

(3,533)

(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

(7,511)

(1,074,579)

Net Cash Used in Operating Activities from Discontinued

Operations

-

-

(26,564)

Net Cash Provided by (Used in) Operating Activities

8,101,143)

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

85,291

Net Cash Provided by Investing Activities from Discontinued

Operations

-

-

35,765

Net Cash (Used in) Provided by Investing Activities

(5,965,056

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

-

-

43,881

Repayment of secured loans

-

-

(107,488)

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

(64,587)

Net Cash Used in Financing Activities from Discontinued

Operations

-

-

(7,251)

Net Cash (Used in) Provided by Financing Activities

(3,138,838)

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,and restricted cash in banks

833,227

8,662,079

20,844,401

Cash,and restricted cash in banks at beginning of year

30,807,604

22,145,525

1,301,124

Cash,and restricted cash in banks at end of year

$

31,640,831

$

30,604

$

22,525

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

$

-

$

-

$

31,732

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:

December31,

2020

Cash and cash equivalents

$

1,048

Restricted cash in banks

29,556

Total cash,cash equivalents and restricted cash

$

31,604

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