LOS ANGELES, Calif., Jan. 4, 2021 /PRNewswire/ -- ATIF Holdings Limited (Nasdaq: ATIF, the "Group", "ATIF" or "we"), a company providing business consulting and multimedia services in Asia and North America, today announced that it officially relocated its operating headquarter to California, USA, and launching new business model with three sectors: asset management, investment holding and media services, to expand the group's business with a flexible business concept that is expected to bring high growth revenue and strong profit growth.
ATIF Inc., a wholly owned subsidiary of ATIF ("ATIF Inc.") has been incorporated in California on October 2020 as ATIF's new operating headquarters. It was well received by clients in the United States, and have already secured 4 California based clients for IPO consulting services since its inception totaled to US$4 million contract amount in aggregate. Clients located within United States will be serviced by ATIF Inc. from its California headquarter, while clients outside United State will be supported by ATIF Inc.'s business centers abroad. Huaya Consultant (Shenzhen) Co., Ltd., a wholly owned subsidiary of ATIF, will serve as ATIF Inc.'s business center in PRC for clients located in the PRC. To streamline the management chain and to improve management control with lower costs, the Group terminated the agreements pertaining to the services provided by Qianhai Asia Times (Shenzhen) International Financial Services Co., Ltd. Currently, the Group is in discussion with other business organizations to collaborate with, leveraging their resources to assist the Group as the Group's business centers in other jurisdictions. The Group believes that this streamlined management model and strategic partnership strategy is in line with the current fast-changing and competitive business environment and will provide the Group with strong growth capability.
Launch of three major sectors, asset management, investment holding and media services
Asset management sector is a brand-new segment added to the Group. In 2020, the Group formed an asset management team with series 65 securities licenses and started to invest on securities in January 2020. Based on the asset management team's unique portfolio strategies and accurate judgment to the market, the securities investment sector has yielded an ideal return for the Group. The Group plans to officially launch its securities investment business after it has obtained the asset management qualification from FINRA in January 2021. Moreover, the Group is in process to register with SEC for investment advisory, which is expected to be completed by the first quarter of 2021. The Group is also in the midst of setting up a private fund, which is expected to provide equity investments and investment advisory services in the U.S. stock market. In the future, ATIF anticipates the asset management business will generate sustainable and stable fund management fee income and high return performance bonus income for the Group.
The investment holding sector will optimize the existing going public consulting services by switching the service fee from cash remuneration to equity remuneration instead. The Group understands that start-ups have liquidity problems and this solution will help incubating start-ups and provide higher return opportunities for the Group, bringing a win-win situation for both the Group and its clients. The media services sector will strengthen the existing media services to provide public and investor relations services to companies and going public advisory clients in China. The Group's business center in PRC has deep media relations and experienced capital market operations, and is able to provide comprehensive investor relations services and domestic media promotion services to US-listed Chinese companies.
Mr. Pishan Chi, Chief Executive Officer and Director of ATIF, commented, "We are very pleased with the establishment of our California headquarters. Since our IPO in May 2019, we have been exploring and experimenting with our business operating model and ultimately found that a streamlined operating model will greatly improve the Group's management efficiency and give us more energy to think and create a more comprehensive, timely, and efficient business and service structure for our clients. We expect that the new California headquarters and the newly optimized strategic business model will bring a fresh start and a strong future for ATIF."
Mr. Liu Jun, Chairman of the Board and President of ATIF, added: "This new business addition and strategic transformation of ATIF is a bold judgment and beneficial measure made by the Group's management in response to the fast-past and ever-changing business environment in the U.S. capital market in a timely manner. In the face of the enormous challenges posed by the 2020 epidemic, we have committed a lot of internal analysis and adjustment considerations and made careful forecasts of the future capital market and business environment. We believe that this new business addition and transformation is not only a big step for ATIF to move towards global business, but also a new opportunity for ATIF. We expect that the new business sectors and business portfolio will bring diversified revenue to the Group and sustainable high growth earnings to our shareholders."
About ATIF Holdings Limited
Headquartered in Los Angeles, California, ATIF Holdings Limited ("ATIF") is a holding group with asset management, investment holding and multimedia sectors and provide business consulting services to small and medium-sized enterprises in Asia and North America, including going public consulting services, international business planning and consulting services, and financial media services. ATIF operates an internet-based financial consulting service platform IPOEX.com, which provides prestige membership services including online capital market information, pre-IPO education and matchmaking services between SMEs and financing institutions. ATIF has advised several enterprises in China in their plans to become publicly listed in the U.S. Through its majority-owned subsidiary, Leaping Group Co., Ltd., ATIF also provides multimedia services and is engaged in three major businesses, including multi-channel advertising, event planning and execution, film and TV program production and movie theater operations. ATIF operates the largest pre-movie advertising network in Heilongjiang Province and Liaoning Province of China and also provides advertising services in elevators and supermarkets. ATIF is often hired to plan both online and offline advertising campaigns and to produce related advertising material. In addition, ATIF invests in films and TV programs and distributes them in movie theaters or through online platforms. For more information, please visit https://ir.atifchina.com/.
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantee of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: future financial and operating results, including revenues, income, expenditures, cash balances and other financial items; ability to manage growth and expansion; current and future economic and political conditions; ability to compete in an industry with low barriers to entry; ability to continue to operate through our VIE structure; ability to obtain additional financing in the future to fund capital expenditures; ability to attract new clients and further enhance brand recognition; ability to hire and retain qualified management personnel and key employees; trends and competition in the financial consulting services industry; a pandemic or epidemic; and other factors listed in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions you that actual results may differ materially from the anticipated results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made. These forward-looking statements are made as of the date of this news release.
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