ATIF Holdings Limited (ATIF), a business consulting company, provides financial consulting services to small and medium-sized enterprises (‘SMEs’).
The main focus of the company’s consulting business has been providing comprehensive going public consulting services designed to help SMEs become public companies on suitable stock markets and exchanges. The company’s clients located within the United States are serviced by ATIF USA. ATIF BVI relies on a professional service team, who is rich in bu...
ATIF Holdings Limited (ATIF), a business consulting company, provides financial consulting services to small and medium-sized enterprises (‘SMEs’).
The main focus of the company’s consulting business has been providing comprehensive going public consulting services designed to help SMEs become public companies on suitable stock markets and exchanges. The company’s clients located within the United States are serviced by ATIF USA. ATIF BVI relies on a professional service team, who is rich in business consulting experiences, extensive social relations, and international integrated services, to make the IPO process as easy as possible for its clients. The company operates with competitive fee schedules, and in the cases of clients with attractive financial performance and/or great growth potential, it would offer the option of paying no fees upfront.
The company has primarily focused on helping clients go public on national stock exchanges and OTC Markets in the U.S. As of July 31, 2024, it had provided financial consulting services to SMEs in the United States, Mexico, China, and Hong Kong.
Beginning in August 2018, to complement and facilitate the growth of the company’s going public consulting service, it launched AT Consulting Center to offer financial consulting programs in Shenzhen, and in September 2018, it acquired CNNM, or www.chinacnnm.com, a news and media website focused on distributing financial news and information. In July 2019, the company launched an investment and financing analysis reporting business. It has not generated any revenue from this financial and news platform since its acquisition, and based on the company’s current financial condition and operating performance, its management has assessed that the likelihood of future use of the financial and news platform is remote, and it provided full impairment on the financial and news platform in the year ended July 31, 2020.
The company launched its consulting services in 2015, with the aim of assisting these Chinese enterprises by filling the gaps and forming a bridge between PRC companies and overseas markets and exchanges. It has a team of qualified and experienced personnel with legal, regulatory, and language expertise in several overseas jurisdictions. The company’s services are designed to help SMEs in China achieve their goal of becoming public companies. It creates a going public strategy for each client based on many factors, including the company’s assessment of the client’s financial and operational situations, market conditions, and the client’s business and financing requirements. Since the company’s inception and up to July 31, 2024, it has successfully helped nine Chinese enterprises to be quoted on the U.S. OTC markets, along with three clients getting listed on the Nasdaq Stock Market, and is assisting its other clients in their respective going public efforts. Most of the company’s clients are Chinese companies and American companies, and it plans to expand its operations to North America, such as Mexico.
On January 4, 2021, the company announced the relocation of its operating headquarters to California, USA, through its wholly owned subsidiary ATIF Inc., a California corporation incorporated on October 26, 2020, and launched, in addition to the company’s business consulting services, additional service models consisting of asset management, investment holding, and media services to expand its business with a flexible business concept to achieve high growth revenue and strong profit growth. As part of this relocation, and to streamline the management chain and improve management control with a goal of lower costs, it transitioned the services from its variable interest entity (‘VIE’), Qianhai Asia Times (Shenzhen) International Financial Services Co., Ltd. (‘Qianhai’), to ATIF Inc. and Huaya, and terminated the VIE agreements with Qianhai on January 31, 2021.
On January 14, 2021, the company entered into the Sale and Purchase Agreement with the majority shareholders of LGC, consisting of Jiang Bo, Jiang Tao, and Wang Di (collectively the ‘LGC Buyers’), to sell all interests in LGC. After the completion of the transaction, the company shall no longer hold any shares of LGC, and LGC shall no longer be a subsidiary of ATIF. The Sales and Purchase Agreement closed on January 29, 2021.
The company entered into the Sale Purchase Agreement due to the continued impact of COVID-19 in China, which will take longer, and additional capital will be required for traditional entertainment and cinema businesses like LGC to recover. Further, in light of the company moving its headquarters to California and transitioning to a new business model focusing on business consulting, asset management, investment holding, and media services, it no longer believes that its business has synergy with LGC’s cinema advertising and cinema operation business. The company’s management and LGC’s management also had different views of LGC’s future business direction.
On February 16, 2021, the company established ATIF-1, LP (‘ATIF LP’) as a private equity fund through its indirectly-wholly owned subsidiary, ATIF-1 GP, LLC (‘ATIF GP’), a Delaware limited liability company, as the general partner.
On May 31, 2022, the company completed the transfer of its equity interest in ATIF HK and Huaya to Mr. Pishan Chi for $nil consideration. The transfer of equity interest was to mitigate the potential risks arising from the PRC government provision of new guidance to and restrictions on China-based companies raising capital offshore. The company determined that the transfer of its equity interest in ATIF HK and Huaya did not have a major effect on its operations and financial results, as it did not change its way of running the business. It also determined that the transfer of equity interest does not represent a strategic shift in its business because there was no change to its operation of its consulting services. There was no change to the nature of the company’s business, and it did not affect its customers in North America, which is the major geographic market area of its business. However, the company intends to continue cooperating with Huaya in connection with the expansion and provision of its business services in China.
Marketing and Sales
The company has cultivated and maintained cooperation with a number of city and provincial chambers of commerce and business associations in China, including the Zhejiang Chamber of Commerce in Shenzhen, Guangdong, Shenzhen Industrial Park Association, Meixian Chamber of Commerce in Shenzhen, Wenzhou Chamber of Commerce in Shenyang, Shenzhen Elite Chamber of Commerce, and the SME Service Platform in Northeast China. There are no contractual relationships between the company and these organizations. However, these local business organizations have greatly helped the company’s marketing efforts due to the fact that they have access to the information of local enterprises and often recommend and connect the company with potential clients; they help the company organize going public briefings and international financial lectures with local enterprises; and they are able to utilize relationships with local government to initiate and organize government-sponsored financial forums to promote and introduce the company’s consulting services to local enterprises.
The company also strives to maintain professional relationships with its former and prospective clients. The company’s former clients have benefited from its services and oftentimes are willing and able to introduce prospective clients to the company. After nearly three years operating as a consulting service provider specialized in cross-border going public services, the company has developed a database consisting of former and prospective clients, using each as a resource for business connections and social relations.
The company is constantly seeking new and effective marketing channels in order to grow into an international consulting company with clients and branches throughout Asia and North America. To complement and facilitate the company’s growth perspectives, in 2018, it launched AT Consulting Center, which has great potential in becoming instrumental in its marketing efforts for continued growth of its consulting business.
In addition to the company’s marketing efforts described above, it also markets its consulting services through social media, principally WeChat and Weibo; newsletters to the company’s prospective clients; and business relationships with well-known corporations and web platforms with large online traffic that can direct traffic to the company’s website through links on their websites.
Competition
The company faces competition from a number of consulting companies providing going public consulting services, such as Greenpro Capital Corp., Forward Capital, and Metalpha Technology Holding Limited, which recently entered going public consulting services in 2018.
Major Customers
The majority of the company’s clients are small to medium-sized enterprises seeking growth and expansion through going public on recognized exchanges. For the year ended July 31, 2024, the company’s clients were based in North America. The number of the company’s consulting service clients was eight for the fiscal year ended July 31, 2024. Due to the nature of the company’s consulting business, which requires it to dedicate a large amount of resources to each of its clients, it was able to generate relatively large revenue from a small number of clients. As a result, the company had two clients that accounted for more than 10% of its total revenues for the fiscal year ended July 31, 2024.
Intellectual Property
The company owns five domain names: ipoex.com, atifus.com, atifchina, chinacnnm.com, and dpoex.com.
History
ATIF Holdings Limited was founded in 2015. The company was incorporated in 2015.
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