BEIJING, Aug. 18, 2016 /PRNewswire/ -- China Finance
Online Co. Limited ("China Finance Online", or the
"Company", "we", "us" or "our") (NASDAQ GS: JRJC), a leading
web-based financial services company that provides Chinese retail
investors with online access to securities and commodities trading,
wealth management products, investment advisory services, as well
as financial database and analytics services to institutional
customers, today announced its unaudited financial results for the
second quarter and first half ended June 30,
2016.
Second Quarter 2016 Financial Highlights
- Net revenues were $16.0
million, a decrease of 30.6% year-over-year.
- Gross margin was 75.7%, compared with 78.9% in the
second quarter of 2015.
- Net income attributable to China Finance Online was
$12.8 million, increased 213.5%
compared with $4.1 million in the
second quarter of 2015.
First Half 2016 Highlights
- Net revenues were $46.8
million, increased 27.0% compared with $36.8 million in the first half of 2015.
- Gross profit was $38.0
million, increased 33.4% compared with $28.5 million in the first half of 2015.
- Net income attributable to China Finance Online
for the first half of 2016 was $14.8
million, increased 440.5% compared to $2.7 million in the first half of 2015.
Mr. Zhiwei Zhao, Chairman and CEO
of China Finance Online commented, "After multiple quarters of
strong double-digit growth, our pace of growth slowed during
the quarter due to unfavorable market conditions. We are taking
measures to adapt to China's
ever-changing financial markets. Nevertheless, our newest growth
drivers continued to make good progress during the quarter with
Yinglibao and iTougu growing strongly as we attract more investors
and advisors. I'm pleased with the progress we have made in
executing our financial services and advisory growth strategy and
look forward to further strengthening our position in the
Chinese Fintech market."
Second Quarter 2016 Financial Results
Net revenues were $16.0
million, a decrease of 30.6% from $23.1 million during the second quarter of 2015
and a decrease of 47.8% from $30.7
million during the first quarter of 2016. During the second
quarter of 2016, revenues from financial services, financial
information and advisory business and advertising services
contributed 76%, 18% and 5% of the net revenues, respectively,
compared with 73%, 20% and 7%, respectively, for the corresponding
period in 2015.
Revenues from financial services were $12.2 million, a decrease of 27.6% from
$16.8 million during the second
quarter of 2015 and 54.5% from $26.8
million during the first quarter of 2016. Revenues from
financial services comprise of equity and commodities brokerage
services. The year-over-year and quarter-over-quarter decreases
were mainly due to a decrease in revenues from the Company's
commodities brokerage services.
Revenues from financial information and advisory business
were $2.9 million, a decrease of
38.6% from $4.7 million during the
second quarter of 2015 and 8.5% from $3.2
million in the first quarter of 2016. Revenues from
financial information and advisory business comprise of
subscription services from individual and institutional
customers.
Revenues from advertising were $0.9 million, a decrease of 43.7% from
$1.5 million in the second quarter of
2015 and an increase of 45.4% from $0.6
million in the first quarter of 2016.
Gross profit was $12.1
million, a decrease of 33.5% from $18.2 million in the second quarter of 2015 and
53.1% from $25.9 million in the first
quarter of 2016. Gross margin in the second quarter of 2016 was
75.7%, compared with 78.9% in the second quarter of 2015 and 84.3%
in the first quarter of 2016. The year-over-year and
quarter-over-quarter decreases in gross margin were mainly due to a
decrease in revenues from the Company's commodities brokerage
services, which typically have higher gross margins.
General and administrative expenses were
$5.6 million, a decrease of 7.5% from
$6.1 million in the second quarter of
2015 and an increase of 14.8% from $4.9
million in the first quarter of 2016. The year-over-year
decrease was mainly attributable to a decrease in share-based
compensation expenses.
Sales and marketing expenses were $11.0 million, an increase of 23.8% from
$8.8 million in the second quarter of
2015 and a decrease of 7.0% from $11.8
million in the first quarter of 2016. The year-over-year
increase was primarily due to an increase in marketing expenses and
staff-related expenses which were primarily driven by an
increase in the number of staff. The quarter-over-quarter decrease
was mainly attributable to a decrease in sales bonus.
Research and development expenses were $3.1 million, an increase of 16.1% from
$2.7 million in the second quarter of
2015 and 15.9% from $2.7 million in
the first quarter of 2016. The year-over-year and
quarter-over-quarter increases were mainly attributable to an
increase in staff-related expenses, primarily driven by an
increase in the number of staff to support further growth.
Total operating expenses were $27.5 million, an increase of 55.8% from
$17.6 million in the second quarter
of 2015 and 41.7% from $19.4 million
in the first quarter of 2016. During the second quarter of 2016,
the Company recorded a non-cash impairment loss of $1.1 million in intangible assets and a non-cash
impairment loss of $6.6 million in
goodwill.
Loss from operations was $15.3 million, compared with an income from
operations of $0.6 million in the
second quarter of 2015 and $7.0
million in the first quarter of 2016. The Company completed
the remaining part of the framework agreement signed on
December 11, 2015 with Shanghai EBI Capital Co., Ltd. for the sale
of the financial portal stockstar.com and recorded a gain of
$22.4 million from the execution of
this agreement during the second quarter of 2016. The Company has
received the entirety of the consideration related to the
transaction as of June 30, 2016. The
Company will use the proceeds to reinvest in and fully focus on
developing new businesses like Yinglibao, the Company's investment
advisory services, and on further strengthening the competitive
advantages the Company's existing financial services have.
Net income attributable to China Finance
Online was $12.8 million,
an increase of 213.5% from $4.1
million in the second quarter of 2015 and 532.9% from
$2.0 million in the first quarter of
2016.
Fully diluted earnings per ADS attributable to China
Finance Online was $0.50 for
the second quarter of 2016, compared with $0.16 for the second quarter of 2015 and
$0.08 for the first quarter of 2016.
Basic and diluted weighted average numbers of ADSs for the second
quarter of 2016 were 22.6 million and 25.4 million, respectively.
Each ADS represents five ordinary shares of the Company.
As of June 30, 2016, total
cash and cash equivalents were $69.1 million, compared with $85.7 million as of December 31, 2015.
Total shareholders' equity of China Finance Online
was $103.2 million as of June 30, 2016, compared with $88.0 million as of December 31, 2015.
First Half 2016 Financial Results
Net revenues for the first half of 2016 was $46.8 million, increased 27.0% compared with
$36.8 million in the first half of
2015.
Gross profit for the first half of 2016 was $38.0 million, increased 33.4% compared with
$28.5 million in the first half of
2015.
Net income attributable to China Finance
Online for the first half of 2016 was $14.8 million, increased 440.5% compared to
$2.7 million in the first half of
2015.
Fully diluted earnings per ADS attributable to China
Finance Online was $0.58 for the
first half of 2016, compared with $0.11 for the first half of 2015.
Conference Call Information
The management will host a conference call on August 18, 2016 at 8:00
p.m. U.S. Eastern Time (8:00
a.m. Beijing/Hong Kong time on August 19, 2016). Dial-in details for the
earnings conference call are as follows:
US: 1-855-823-0291
Hong Kong: 800-963-435
Singapore: 800-616-2312
China:
800-870-0211/400-120-3169
Conference: ID: 65822892
Please dial in 10 minutes before the call is scheduled to begin
and provide the conference ID to join the call.
A replay of the call will be available shortly after the
conclusion of the conference call through 8:00 a.m. Eastern Time on August 26, 2016. The dial-in details for the
replay are:
US: 1-855-452-5696
Hong Kong: 800-963-117
Singapore: 800-616-2305
China:
800-870-0205/400-632-2162
Conference ID: 65822892
In addition, a live and archived webcast of the conference call
will be available at http://edge.media-server.com/m/p/qom4jf49.
About China Finance Online
China Finance Online Co. Limited is a leading web-based
financial services company that provides Chinese retail investors
with online access to securities and commodities trading services,
wealth management products, securities investment advisory
services, as well as financial database and analytics services to
institutional customers. The Company's prominent flagship portal
site, www.jrj.com, is ranked among the top financial websites
in China. In addition to the
web-based securities trading platform, the Company offers basic
financial software, information services and securities investment
advisory services to retail investors in China. Through its subsidiary, Shenzhen Genius
Information Technology Co. Ltd., the Company provides financial
database and analytics to institutional customers including
domestic financial, research, academic and regulatory institutions.
China Finance Online also provides brokerage services in
Hong Kong.
Safe Harbor Statement
This press release contains forward-looking statements which
constitute "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. The statements contained herein reflect management's current
views with respect to future events and financial performance.
These forward-looking statements are subject to certain risks and
uncertainties that could cause the actual results to differ
materially from those in the forward-looking statements, all of
which are difficult to predict and many of which are beyond the
control of the Company. These forward-looking statements can
be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. Among other things, this
release contains the following forward-looking statements
regarding:
- our prospect and our ability to attract new users;
- our prospect on building a comprehensive wealth management
ecosystem through providing a fully-integrated online communication
and securities-trading platform;
- our prospect on stabilization in cash attrition and improvement
of our financial position;
- our initiatives to address customers' demand for intuitive
online investment platforms and alternative investment
opportunities; and
- the market prospect of the business of securities-trading,
securities investment advisory and wealth management.
Such statements involve certain risks and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements, which risk factors and uncertainties
include, amongst others, the changing customer needs, regulatory
environment and market condition that we are subject to; the uneven
condition of the world and Chinese economy that could lead to
volatility in the equity markets and affect our operating results
in the coming quarters; the impact of the changing conditions of
the mainland Chinese stock market, Hong
Kong stock market and global financial market on our future
performance; the unpredictability of our strategic transformation
and growth of new businesses, including our commodities brokerage
services; the prospect of our margin-related business and the
degree to which our implementation of margin account screening and
ongoing monitoring will yield successful outcome; the degree to
which our strategic collaborations with partners will yield
successful outcome; the prospect for China's high-net-worth and middle-class
households; the prospect of equipping our customer specialists with
new technology, tools and financial knowledge; wavering investor
confidence that could impact our business; and possible non-cash
goodwill, intangible assets and investment impairment may adversely
affect our net income. Further information regarding these and
other risks is included in the Company's filings with the U.S.
Securities and Exchange Commission, including its annual report on
Form 20-F under "Forward-Looking Information" and "Risk Factors".
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 applicable
law.
China Finance Online
Co. Limited
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands of U.S.
dollars)
|
|
Jun. 30,
2016
|
Dec. 31,
2015
|
Assets
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
69,064
|
85,734
|
Trust bank balances
held on behalf of customers
|
22,158
|
14,168
|
Accounts receivable,
net - others
|
6,283
|
12,008
|
Accounts receivable,
net - Margin clients
|
9,909
|
4,367
|
Short-term
investments
|
8,103
|
-
|
Prepaid expenses and
other current assets
|
9,709
|
3,489
|
Deferred tax assets,
current
|
466
|
969
|
Total current
assets
|
125,692
|
120,735
|
Long-term investments,
net
|
2,481
|
1,782
|
Property and
equipment, net
|
6,957
|
5,790
|
Acquired intangible
assets, net
|
302
|
1,539
|
Rental
deposits
|
1,846
|
1,423
|
Goodwill
|
18
|
6,700
|
Deferred tax assets,
non-current
|
25
|
20
|
Other
deposits
|
4,094
|
6,076
|
Total
assets
|
141,415
|
144,065
|
|
|
|
Liabilities and
equity
|
|
|
Current
liabilities:
|
|
|
Deferred revenue,
current (including deferred revenue, current of the
consolidated
variable interest entities without recourse to China Finance Online
Co. Limited
$1,223 and $5,058 as of June 30, 2016 and December 31,2015,
respectively)
|
2,393
|
6,659
|
Accrued expenses and
other current liabilities (including accrued expenses and
other current liabilities of the consolidated variable interest
entities without recourse
to China Finance Online Co. Limited $4,264 and $13,036 as of
June 30, 2016 and
December 31, 2015, respectively)
|
9,280
|
15,655
|
Amount due to
customers for trust bank balances held on behalf of
customers (including amount due to customers for trust bank
balances held on behalf
of customers of the consolidated variable interest entities without
recourse to China
Finance Online Co. Limited $3,481 and $566 as of June 30, 2016 and
December 31,
2015, respectively)
|
22,158
|
14,168
|
Accounts payable
(including accounts payable of the consolidated variable
interest
entities without recourse to China Finance Online Co. Limited $989
and $3,387 as of
June 30, 2016 and December 31, 2015, respectively)
|
3,812
|
5,494
|
Deferred tax
liabilities, current (including deferred tax liabilities, current
of the
consolidated variable interest entities without recourse to China
Finance Online Co.
Limited $24 and $13 as of June 30, 2016 and December 31, 2015,
respectively)
|
26
|
15
|
Income taxes payable
(including income taxes payable of the consolidated
variable interest entities without recourse to China Finance Online
Co. Limited
$2,544 and $1,753 as of June 30, 2016 and December 31,2015,
respectively)
|
2,544
|
1,768
|
Total current
liabilities
|
40,213
|
43,759
|
Deferred tax
liabilities, non-current (including deferred tax liabilities,
non-current of
the consolidated variable interest entities without recourse to
China Finance Online Co.
Limited $75 and $385 as of June 30, 2016 and December 31, 2015,
respectively)
|
75
|
385
|
Deferred revenue,
non-current (including deferred revenue, non-current of the
consolidated variable interest entities without recourse to China
Finance Online Co.
Limited $127 and $187 as of June 30, 2016 and December 31,2015,
respectively)
|
826
|
692
|
Total
liabilities
|
41,114
|
44,836
|
Noncontrolling
interests
|
(2,874)
|
11,191
|
Total China Finance
Online Co. Limited Shareholders' equity
|
103,175
|
88,038
|
Total liabilities and
equity
|
141,415
|
144,065
|
China Finance Online
Co. Limited
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(in thousands of U.S.
dollars, except share and ADS related data)
|
|
Three months
ended
|
Six months
ended
|
|
Jun. 30,
2016
|
Jun. 30,
2015
|
Mar. 31,
2016
|
Jun. 30,
2016
|
Jun. 30,
2015
|
Net
revenues
|
16,045
|
23,115
|
30,713
|
46,758
|
36,816
|
Cost of
revenues
|
(3,905)
|
(4,867)
|
(4,807)
|
(8,712)
|
(8,291)
|
Gross
profit
|
12,140
|
18,248
|
25,906
|
38,046
|
28,525
|
Operating
expenses
|
|
|
|
|
|
General and
administrative(includes
share-based compensation expenses of
$1,608, $2,619, $1,419, $3,027 and $2,668,
respectively)
|
(5,647)
|
(6,102)
|
(4,918)
|
(10,565)
|
(9,063)
|
Sales and marketing
(includes share-based
compensation expenses of $(37), $14,
$(21), $(58) and $42, respectively)
|
(10,952)
|
(8,845)
|
(11,778)
|
(22,730)
|
(16,983)
|
Product development
(includes share-based
compensation expenses of $(189), nil,
$(127), $(316) and $79, respectively)
|
(3,127)
|
(2,693)
|
(2,698)
|
(5,825)
|
(5,517)
|
Loss from impairment
of intangible assets
|
(1,111)
|
-
|
-
|
(1,111)
|
-
|
Loss from impairment
of goodwill
|
(6,642)
|
-
|
-
|
(6,642)
|
-
|
|
|
|
|
|
|
Total operating
expenses
|
(27,479)
|
(17,640)
|
(19,394)
|
(46,873)
|
(31,563)
|
Government
subsidies
|
36
|
-
|
508
|
544
|
99
|
Income (loss) from
operations
|
(15,303)
|
608
|
7,020
|
(8,283)
|
(2,939)
|
Interest
income
|
377
|
43
|
244
|
621
|
1,243
|
Loss from disposal of
affiliates
|
(4,123)
|
-
|
-
|
(4,123)
|
-
|
Short-term investment
income, net
|
138
|
34
|
119
|
257
|
67
|
Gain on the interest
sold and retained
noncontrolling investment
|
22,445
|
-
|
-
|
22,445
|
-
|
Gain from sale of
cost method investment
|
-
|
4,648
|
-
|
-
|
4,648
|
Loss from equity method
investment
|
(49)
|
(9)
|
(62)
|
(111)
|
(9)
|
Other income (loss),
net
|
(14)
|
(74)
|
71
|
57
|
(389)
|
Exchange gain (loss),
net
|
73
|
80
|
(157)
|
(84)
|
15
|
|
|
|
|
|
|
Income before income
tax provision (expenses)
|
3,544
|
5,330
|
7,235
|
10,779
|
2,636
|
Income tax provision
(expenses)
|
(2,693)
|
312
|
(424)
|
(3,117)
|
(404)
|
|
|
|
|
|
|
Net income
|
851
|
5,642
|
6,811
|
7,662
|
2,232
|
Less: Net income
(loss) attributable to the
noncontrolling interest
|
(11,914)
|
1,570
|
4,794
|
(7,120)
|
(503)
|
Net income
attributable to China Finance
Online Co. Limited
|
12,765
|
4,072
|
2,017
|
14,782
|
2,735
|
|
|
|
|
|
|
Net income
|
851
|
5,642
|
6,811
|
7,662
|
2,232
|
Changes in foreign
currency translation
adjustment
|
(1,748)
|
181
|
448
|
(3,894)
|
287
|
Net unrealized gain on
available-for-sale
securities, net of tax effects of nil, $(1),
and nil respectively
|
-
|
(2)
|
-
|
|
-
|
Other comprehensive
income (loss), net of tax
|
(1,748)
|
179
|
448
|
(3,894)
|
287
|
Comprehensive
income (loss)
|
(897)
|
5,821
|
7,259
|
3,768
|
2,519
|
Less: comprehensive
income (loss)
attributable to noncontrolling interest
|
(11,914)
|
1,570
|
4,794
|
(7,120)
|
(503)
|
Comprehensive income
attributable to China
Finance Online Co. Limited
|
11,017
|
4,251
|
2,465
|
10,888
|
3,022
|
|
|
|
|
|
|
Net income per ADS attributable
to China
Finance Online Co. Limited
|
|
|
|
|
|
Basic
|
0.11
|
0.04
|
0.02
|
0.13
|
0.02
|
Diluted
|
0.10
|
0.03
|
0.02
|
0.12
|
0.02
|
Loss per
ADS
|
|
|
|
|
|
Basic
|
0.56
|
0.18
|
0.09
|
0.65
|
0.12
|
Diluted
|
0.50
|
0.16
|
0.08
|
0.58
|
0.11
|
Weighted average
ordinary shares
|
|
|
|
|
|
Basic
|
113,049,666
|
111,031,161
|
112,939,783
|
112,994,727
|
110,853,266
|
Diluted
|
126,914,643
|
125,714,306
|
126,822,437
|
126,868,543
|
125,216,585
|
Weighted average
ADSs
|
|
|
|
|
|
Basic
|
22,609,933
|
22,206,232
|
22,587,957
|
22,598,945
|
22,170,653
|
Diluted
|
25,382,929
|
25,142,861
|
25,364,487
|
25,373,709
|
25,043,317
|
For more information, please contact:
China Finance Online Co. Limited
+86-10-8336-3100
ir@jrj.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-finance-online-reports-second-quarter-and-first-half-ended-june-30-2016-unaudited-financial-results-300315390.html
SOURCE China Finance Online Co., Ltd.