Tian Ruixiang Holdings Ltd. (Nasdaq: TIRX) trading up 42.26% on Tuesday after the company reported increased revenue and more than doubled income for the fiscal year ended October 31, 2020.
The Beijing-based insurance broker reported revenue increased 62.3% year-over-year to $3.25 million in the 12 month period. Net income, TIRX said in the announcement, increased by 260.7% to $630,00 in the year through October 2020.
TIRX attributed the increase in revenue to the increase in the number of sales professionals and the increase in marketing activities. 168 additional sales professionals were recruited to sell insurance products, the company added.
Zhe Wang, the chairman and chief executive officer of TIRX, stated: “The growth was primarily driven by the increased demand for our accidental insurance and our successful implementation of a business strategy to grow our liability insurance business. We will continue to focus on developing our life insurance, institutional risks management services, and our Internet insurance platform Needbao to further diversify our revenue sources. Looking ahead, we expect China's economy will further recover and support our business growth.”
The company operates an insurance broker through its variable interest entity (VIE), TRX ZJ, and its subsidiaries in China. It sells property and casualty insurance, such as automobile insurance, commercial property insurance, liability insurance; and life insurance, such as individual and group life insurances, according to the company.
Back in April, the company announced it received a notice from the Nasdaq indicating that, as a result of not having timely filed its Annual Report on Form 20-F, the company is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic financial reports with the SEC.
Shares of TIRX closed at $17.1, up 42.26%.