TAI'AN, China, May 17, 2021 /PRNewswire/ -- China Customer
Relations Centers, Inc. (NASDAQ: CCRC) ("CCRC" or the "Company"), a
leading e-commerce and financial services business process
outsourcing ("BPO") service provider in China, today announced its financial results
for the year ended December 31,
2020.
Full Year of 2020 Financial Results
Revenues
For the year ended December 31,
2020, revenues increased by $66.91
million, or 38.6%, to $240.32
million from $173.41 million
for the same period of the prior year. Our revenue growth in the
year of 2020 resulted primarily from acquiring new customers and
increased sales volumes to our existing clients.
We continued to increase our service capacity, which increased
by 6,889 seats, or 30.8%, to 29,249 seats as of December 31, 2020 from 22,360 seats at the end of
2019.
Cost of revenues
Cost of revenues consists primarily of salaries, payroll taxes
and employee benefits costs of our customer service associates and
other operations personnel. Cost of revenues also includes direct
communications costs, rent expense, IT costs, and facilities
support expenses. Cost of revenues increased by $54.22 million, or 40.3%, to $188.73 million for the year ended December 31, 2020 from $134.50 million for the same period of the prior
year. The increase in cost of revenues was in line with the
increase in revenues. As a percentage of revenues, cost of revenues
was 78.5% for the year ended December 31,
2020, compared to 77.6% for the same period of the prior
year.
Gross profit and gross margin
Gross profit increased by $12.69
million, or 32.6%, to $51.59
million for the year ended December
31, 2020 from $38.90 million
for the same period of the prior year. Gross margin decreased by
1.0 percentage point to 21.5% for the year ended December 31, 2020 from 22.4% for the same period
of the prior year.
Selling, general and administrative expense
Selling, general and administrative ("SG&A") expenses
consists primarily of sales and administrative employee-related
expenses, professional fees, travel costs, research and development
costs, and other corporate expenses. SG&A expenses increased by
$1.45 million, or 5.5%, to
$27.78 million for the year ended
December 31, 2020 from $26.32 million for the same period of the prior
year. As a percentage of revenues, SG&A expenses decreased from
15.2% for the year ended December 31,
2019 to 11.6% for the year ended December 31, 2020.
Operating income and operating margin
Income from operations increased by $11.23 million, or 89.2%, to $23.82 million for the year ended December 31, 2020 from $12.59 million for the same period of the prior
year. The increase in operating income was related to increased
gross profit which was partially offset by increased SG&A
expenses. Operating margin was 9.9% for the year ended December 31, 2020, compared to 7.3% for the same
period of the prior year.
Other income
We recognized government grants, which are discretionary and
unpredictable in nature, of $2.99
million during the year ended December 31, 2020, compared to $1.83 million recognized during the same period
of the prior year. Total other income, net of other expenses,
increased by $1.20 million, or 40.4%,
to $4.18 million for the year ended
December 31, 2020 from $2.98 million for the same period of the prior
year.
Income before provision for income taxes
Income before provision for income taxes increased by
$12.44 million, or 79.9%, to
$28.00 million for the year ended
December 31, 2020 from $15.57 million for the same period of the prior
year. The increase in income before provision for income taxes was
due to increased operating income as well as government grants and
other income.
Income taxes
Provision for income taxes was $3.07
million for the year ended December
31, 2020, compared to $2.39
million for the same period of the prior year.
Net income and earnings per share
Net income increased by $11.76
million, or 89.2%, to $24.93
million for the year ended December
31, 2020 from $13.17 million
for the same period of the prior year. After deducting net income
attributable to noncontrolling interest, net income attributable to
common shareholders was $24.86
million, or $1.36 per basic
and diluted share, for the year ended December 31, 2020, compared to $13.06 million, or $0.71 per basic and diluted share, for the same
period of the prior year.
Financial Conditions
As of December 31, 2020, the
Company had cash of $43.67 million,
compared to $25.33 million at
December 31, 2019. Total working
capital was $74.06 million as of
December 31, 2020, compared to
$47.50 million at the end of
2019.
Net cash provided by operating activities was $24.05 million for the year ended December 31, 2020, compared to $5.21 million for the same period of the prior
year. Net cash used in investing activities was $5.54 million for the year ended December 31, 2020, compared to $4.46 million for the same period of the prior
year. Net cash used in financing activities was $2.66 million for the year ended December 31, 2020, compared to net cash provided
by financing activities of $0.54
million for the same period of the prior year.
Notice
Rounding amounts and percentages: Certain amounts and
percentages included in this press release have been rounded for
ease of presentation. Percentage figures included in this press
release have not in all cases been calculated on the basis of such
rounded figures, but on the basis of such amounts prior to
rounding. For this reason, certain percentage amounts in this press
release may vary from those obtained by performing the same
calculations using the figures in the financial statements. In
addition, certain other amounts that appear in this press release
may not sum due to rounding.
About China Customer Relations Centers, Inc.
The Company is a leading BPO service provider in China focusing on the complex, voice-based and
online-based segments of customer care services, including:
- customer relationship management;
- technical support;
- sales;
- customer retention;
- marketing surveys; and
- research.
The Company's service is currently delivered in Provinces of
Shandong, Jiangsu, Liaoning, Guangdong, Yunnan, Hubei, Sichuan, Hebei, Anhui,
Xinjiang, Guangxi, Jiangxi, Heilongjiang, and Chongqing. More information about the Company
can be found at: www.ccrc.com.
Forward-Looking Statement
This press release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. When the Company uses words such as
"may," "will," "intend," "should," "believe," "expect,"
"anticipate," "project," "estimate" or similar expressions that do
not relate solely to historical matters, it is making
forward-looking statements. Specifically, the Company's statements
regarding its growth, shareholder returns and business outlook, are
forward-looking statements. Forward-looking statements are not
guarantee of future performance and involve risks and uncertainties
that may cause the actual results to differ materially from the
Company's expectations discussed in the forward-looking statements.
These statements are subject to uncertainties and risks including,
but not limited to, the following: the Company's goals and
strategies; the Company's future business development; product and
service demand and acceptance; changes in technology; economic
conditions; the growth of the call center business process
outsourcing market in China;
reputation and brand; the impact of competition and pricing;
government regulations; fluctuations in general economic and
business conditions in China and
assumptions underlying or related to any of the foregoing and other
risks contained in reports filed by the Company with the Securities
and Exchange Commission. For these reasons, among others, investors
are cautioned not to place undue reliance upon any forward-looking
statements in this press release. Additional factors are discussed
in the Company's filings with the U.S. Securities and Exchange
Commission, which are available for review at www.sec.gov. The
Company undertakes no obligation to publicly revise these
forward–looking statements to reflect events or circumstances that
arise after the date hereof.
For more information, please contact:
Sherry Zheng
Weitian Group LLC
Email: shunyu.zheng@weitian-ir.com
Phone: +1-718-213-7386
CHINA CUSTOMER
RELATIONS CENTERS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
43,669,538
|
|
|
$
|
25,328,486
|
|
Accounts
receivable
|
|
|
63,493,891
|
|
|
|
42,606,485
|
|
Prepayments
|
|
|
2,352,988
|
|
|
|
2,396,646
|
|
Prepayment, related
parties
|
|
|
359,142
|
|
|
|
90,429
|
|
Due from related
parties, current
|
|
|
470,076
|
|
|
|
-
|
|
Income taxes
recoverable
|
|
|
104,721
|
|
|
|
712,459
|
|
Other current
assets
|
|
|
4,420,220
|
|
|
|
3,408,704
|
|
Total current
assets
|
|
|
114,870,576
|
|
|
|
74,543,209
|
|
Equity
investments
|
|
|
3,678,171
|
|
|
|
3,446,346
|
|
Property and
equipment, net
|
|
|
12,543,156
|
|
|
|
10,115,782
|
|
Deferred tax
assets
|
|
|
259,200
|
|
|
|
242,863
|
|
Due from related
party, non-current
|
|
|
-
|
|
|
|
215,307
|
|
Operating lease
right-of-use assets
|
|
|
12,265,679
|
|
|
|
9,827,114
|
|
Operating lease
right-of-use assets - related party
|
|
|
341,078
|
|
|
|
172,121
|
|
Total non-current
assets
|
|
|
29,087,284
|
|
|
|
24,019,533
|
|
Total
assets
|
|
$
|
143,957,860
|
|
|
$
|
98,562,742
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
4,315,457
|
|
|
$
|
2,602,972
|
|
Accounts payable -
related parties
|
|
|
260,790
|
|
|
|
149,658
|
|
Accrued liabilities
and other payables
|
|
|
11,018,516
|
|
|
|
4,641,892
|
|
Deferred
revenue
|
|
|
1,196,659
|
|
|
|
456,331
|
|
Wages
payable
|
|
|
15,663,312
|
|
|
|
10,472,596
|
|
Income taxes
payable
|
|
|
974,510
|
|
|
|
452,961
|
|
Operating lease
liabilities, current
|
|
|
5,678,812
|
|
|
|
3,797,069
|
|
Operating lease
liabilities - related party, current
|
|
|
165,734
|
|
|
|
163,995
|
|
Short-term
loans
|
|
|
1,531,933
|
|
|
|
4,306,138
|
|
Total current
liabilities
|
|
|
40,805,723
|
|
|
|
27,043,612
|
|
Operating lease
liabilities, non-current
|
|
|
7,461,337
|
|
|
|
6,068,702
|
|
Operating lease
liabilities – related party, non-current
|
|
|
175,002
|
|
|
|
-
|
|
Total non-current
liabilities
|
|
|
7,636,339
|
|
|
|
6,068,702
|
|
Total
liabilities
|
|
|
48,442,062
|
|
|
|
33,112,314
|
|
Equity
|
|
|
|
|
|
|
|
|
Common shares, $0.001
par value, 100,000,000 shares authorized, 18,329,600
shares issued and outstanding as of
December 31, 2020 and December 31,
2019
|
|
|
18,330
|
|
|
|
18,330
|
|
Additional paid-in
capital
|
|
|
18,424,483
|
|
|
|
15,074,267
|
|
Retained
earnings
|
|
|
66,854,353
|
|
|
|
47,347,781
|
|
Statutory
reserves
|
|
|
7,761,226
|
|
|
|
5,818,330
|
|
Accumulated other
comprehensive income (loss)
|
|
|
2,457,406
|
|
|
|
(3,411,744)
|
|
Total China Customer
Relations Centers, Inc. shareholders' equity
|
|
|
95,515,798
|
|
|
|
64,846,964
|
|
Noncontrolling
interest
|
|
|
-
|
|
|
|
603,464
|
|
Total
equity
|
|
|
95,515,798
|
|
|
|
65,450,428
|
|
Total liabilities and
equity
|
|
$
|
143,957,860
|
|
|
$
|
98,562,742
|
|
CHINA CUSTOMER
RELATIONS CENTERS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|
|
|
For The Years
Ended December 31,
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Revenues,
net
|
|
$
|
240,316,024
|
|
|
$
|
173,409,113
|
|
|
$
|
141,433,641
|
|
Cost of
revenues
|
|
|
188,725,246
|
|
|
|
134,504,540
|
|
|
|
102,567,896
|
|
Gross
profit
|
|
|
51,590,778
|
|
|
|
38,904,573
|
|
|
|
38,865,745
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
& administrative expenses
|
|
|
27,772,891
|
|
|
|
26,318,771
|
|
|
|
21,329,908
|
|
Total operating
expenses
|
|
|
27,772,891
|
|
|
|
26,318,771
|
|
|
|
21,329,908
|
|
Income from
operations
|
|
|
23,817,887
|
|
|
|
12,585,802
|
|
|
|
17,535,837
|
|
Interest
expense
|
|
|
(176,422)
|
|
|
|
(190,808)
|
|
|
|
(404,958)
|
|
Government
grants
|
|
|
2,989,897
|
|
|
|
1,825,402
|
|
|
|
1,709,297
|
|
Other
income
|
|
|
1,803,014
|
|
|
|
1,547,788
|
|
|
|
552,205
|
|
Other
expense
|
|
|
(434,048)
|
|
|
|
(202,688)
|
|
|
|
(124,370)
|
|
Total other
income
|
|
|
4,182,441
|
|
|
|
2,979,694
|
|
|
|
1,732,174
|
|
Income before
provision for income taxes
|
|
|
28,000,328
|
|
|
|
15,565,496
|
|
|
|
19,268,011
|
|
Income tax
provision
|
|
|
3,069,477
|
|
|
|
2,391,371
|
|
|
|
2,966,880
|
|
Net
income
|
|
|
24,930,851
|
|
|
|
13,174,125
|
|
|
|
16,301,131
|
|
Less: net income
attributable to noncontrolling interest
|
|
|
70,052
|
|
|
|
118,114
|
|
|
|
208,593
|
|
Net income
attributable to China Customer Relations Centers,
Inc.
|
|
$
|
24,860,799
|
|
|
|
13,056,011
|
|
|
|
16,092,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
24,930,851
|
|
|
$
|
13,174,125
|
|
|
$
|
16,301,131
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
5,855,857
|
|
|
|
(828,331)
|
|
|
|
(2,741,283)
|
|
Total
Comprehensive income
|
|
|
30,786,708
|
|
|
|
12,345,794
|
|
|
|
13,559,848
|
|
Less: Comprehensive
income attributable to noncontrolling
interest
|
|
|
56,759
|
|
|
|
109,238
|
|
|
|
140,467
|
|
Comprehensive
income attributable to China Customer
Relations Centers, Inc.
|
|
$
|
30,729,949
|
|
|
$
|
12,236,556
|
|
|
$
|
13,419,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to China Customer Relations
Centers, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.36
|
|
|
$
|
0.71
|
|
|
$
|
0.88
|
|
Diluted
|
|
$
|
1.36
|
|
|
$
|
0.71
|
|
|
$
|
0.88
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
18,329,600
|
|
|
|
18,329,600
|
|
|
|
18,329,600
|
|
Diluted
|
|
|
18,329,600
|
|
|
|
18,329,600
|
|
|
|
18,329,600
|
|
CHINA CUSTOMER
RELATIONS CENTERS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
For The Years
Ended December 31,
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
24,930,851
|
|
|
$
|
13,174,125
|
|
|
$
|
16,301,131
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
4,070,582
|
|
|
|
3,404,912
|
|
|
|
2,635,242
|
|
Allowance for credit
losses
|
|
|
-
|
|
|
|
-
|
|
|
|
952,439
|
|
Loss on disposal of
property and equipment
|
|
|
59,366
|
|
|
|
19,091
|
|
|
|
34,166
|
|
Deferred income
taxes
|
|
|
-
|
|
|
|
238,883
|
|
|
|
(196,909)
|
|
Non-cash lease
expense
|
|
|
4,319,670
|
|
|
|
3,501,753
|
|
|
|
-
|
|
Changes in operating
lease right-of-use assets and operating
lease liabilities upon lease
modification
|
|
|
634,328
|
|
|
|
-
|
|
|
|
-
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(17,048,770)
|
|
|
|
(13,057,615)
|
|
|
|
(7,937,804)
|
|
Due from related
parties
|
|
|
(9,929)
|
|
|
|
-
|
|
|
|
-
|
|
Prepayments
|
|
|
(298,525)
|
|
|
|
(2,097,963)
|
|
|
|
(887,778)
|
|
Prepayments, related
parties
|
|
|
(248,456)
|
|
|
|
-
|
|
|
|
(95,244)
|
|
Other current
assets
|
|
|
(740,237)
|
|
|
|
(1,510,847)
|
|
|
|
(970,199)
|
|
Operating lease
liabilities
|
|
|
(3,955,614)
|
|
|
|
(3,037,030)
|
|
|
|
-
|
|
Accounts
payable
|
|
|
1,454,416
|
|
|
|
2,017,431
|
|
|
|
147,818
|
|
Accounts payable -
related parties
|
|
|
95,611
|
|
|
|
(10,440)
|
|
|
|
122,630
|
|
Wages
payable
|
|
|
4,245,097
|
|
|
|
3,511,093
|
|
|
|
1,884,440
|
|
Income taxes
recoverable
|
|
|
620,277
|
|
|
|
(192,965)
|
|
|
|
(548,893)
|
|
Income taxes
payable
|
|
|
464,576
|
|
|
|
94,336
|
|
|
|
(153,896)
|
|
Deferred
revenue
|
|
|
671,332
|
|
|
|
100,245
|
|
|
|
(221,771)
|
|
Accrued liabilities
and other payables
|
|
|
4,934,855
|
|
|
|
(941,772)
|
|
|
|
1,077,098
|
|
Net cash provided
by operating activities
|
|
|
24,049,979
|
|
|
|
5,213,237
|
|
|
|
12,142,470
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(5,334,709)
|
|
|
|
(4,481,450)
|
|
|
|
(4,768,139)
|
|
Proceeds from sale of
property and equipment
|
|
|
7,179
|
|
|
|
36,693
|
|
|
|
9,197
|
|
Advance to equity
investee
|
|
|
(435,445)
|
|
|
|
-
|
|
|
|
(1,461)
|
|
Collection from
equity investee
|
|
|
429,068
|
|
|
|
-
|
|
|
|
-
|
|
Advance to related
parties
|
|
|
(381,309)
|
|
|
|
(214,111)
|
|
|
|
(105,827)
|
|
Repayment from
related parties
|
|
|
171,179
|
|
|
|
198,017
|
|
|
|
117,802
|
|
Net cash used in
investing activities
|
|
|
(5,544,037)
|
|
|
|
(4,460,851)
|
|
|
|
(4,748,428)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution from
noncontrolling investor in subsidiary
|
|
|
108,970
|
|
|
|
-
|
|
|
|
-
|
|
Dividend distributed
to noncontrolling investor in subsidiary
|
|
|
-
|
|
|
|
(213,722)
|
|
|
|
(355,232)
|
|
Borrowings from
short-term loans
|
|
|
4,351,712
|
|
|
|
4,452,368
|
|
|
|
3,891,596
|
|
Repayment of
short-term loans
|
|
|
(7,124,316)
|
|
|
|
(3,694,345)
|
|
|
|
(3,625,448)
|
|
Net cash provided
by (used in) financing activities
|
|
|
(2,663,634)
|
|
|
|
544,301
|
|
|
|
(89,084)
|
|
Effect of exchange
rate changes on cash and cash
equivalents
|
|
|
2,498,744
|
|
|
|
(388,113)
|
|
|
|
(1,513,411)
|
|
Net change in cash
and cash equivalents
|
|
|
18,341,052
|
|
|
|
908,574
|
|
|
|
5,791,547
|
|
Cash and cash
equivalents, beginning of the year
|
|
|
25,328,486
|
|
|
|
24,419,912
|
|
|
|
18,628,365
|
|
Cash and cash
equivalents, end of the year
|
|
$
|
43,669,538
|
|
|
$
|
25,328,486
|
|
|
$
|
24,419,912
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
175,811
|
|
|
$
|
190,808
|
|
|
$
|
404,958
|
|
Income taxes
paid
|
|
$
|
2,924,643
|
|
|
$
|
2,993,733
|
|
|
$
|
3,929,237
|
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer from
prepayments to property and equipment
|
|
$
|
705,933
|
|
|
$
|
904,309
|
|
|
$
|
392,637
|
|
Liabilities assumed
in connection with purchase of property
and equipment
|
|
$
|
7,200
|
|
|
$
|
24,512
|
|
|
$
|
88,112
|
|
Liability assumed in
connection with acquisition of
noncontrolling interest
|
|
$
|
830,308
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Operating lease
right-of-use assets obtained in exchange for
operating lease liability
|
|
$
|
7,069,165
|
|
|
$
|
5,496,939
|
|
|
$
|
-
|
|
View original
content:http://www.prnewswire.com/news-releases/china-customer-relations-centers-inc-announces-financial-results-for-the-full-year-2020-as-compared-to-full-year-2019-301292438.html
SOURCE China Customer Relations Centers, Inc.