ChinaNet Online Holdings, Inc. (Nasdaq: CNET) ("ChinaNet" or the
"Company"), an integrated online advertising, precision marketing,
data analytics and other value-added services provider serving
enterprise clients, today announced its unaudited financial results
for the second quarter and six months ended June 30, 2020.
Second Quarter of 2020 Financial
Highlights
|
For the Three Months Ended June 30, |
($ millions,
except per share data) |
2020 |
|
2019 |
|
% Change |
Revenues |
$10.42 |
|
$15.45 |
|
-32.6% |
Gross profit |
$0.30 |
|
$0.37 |
|
-18.6% |
Gross margin |
2.9% |
|
2.4% |
|
0.5
pp* |
Loss from operations |
($1.02) |
|
($1.22) |
|
16.5% |
Operating loss margin |
-9.8% |
|
-7.9% |
|
-1.9
pp |
Net loss attributable to CNET |
($0.97) |
|
($0.38) |
|
155.4% |
Loss per share |
($0.04) |
|
($0.02) |
|
100.0% |
*pp: percent points |
|
|
|
|
|
- Revenues decreased by 32.6% to
$10.42 million for the second quarter of 2020, primarily due to a
decrease in revenues from Internet advertising and distribution of
the right to use search engine marketing service business
categories, as a result of the COVID-19 outbreak during the first
quarter of 2020 and slow recovery in the second quarter of
2020.
- Gross profit decreased by 18.6% to
$0.30 million while gross margin improved by 0.5 percentage points
to 2.9% for the second quarter of 2020.
- Loss from operations improved by
16.5% to $1.02 million for the second quarter of 2020, primarily
attributable to a decrease in operating expenses, which was
partially offset by the decrease in gross profit during the second
quarter of 2020.
- Net loss attributable to CNET was
$0.97 million, or $0.04 per share, for the second quarter of 2020,
compared to net loss of $0.38 million, or $0.02 per share, for the
same period of last year.
Mr. Handong Cheng, Chairman and Chief Executive
Officer of ChinaNet, commented, “Our second quarter results
highlight continuing impact of the COVID-19 pandemic, despite
significant sequential uptick from the first quarter. With growth
and profitability remaining elusive, our second quarter results
underscore the need for improvement in our existing business model
and the need for new strategic initiatives going forward. While we
remain fully committed to the blockchain technology initiative and
view it as a potential game-changer for us, we are also actively
exploring other strategic alternatives to turn around our
business.”
First Half of 2020 Financial
Highlights
|
For the Six Months Ended June 30, |
($ millions,
except per share data) |
2020 |
|
2019 |
|
% Change |
Revenues |
$14.80 |
|
$24.02 |
|
-38.4% |
Gross profit |
$1.20 |
|
$0.81 |
|
48.1% |
Gross margin |
8.1% |
|
3.4% |
|
4.7
pp* |
Loss from operations |
($3.30) |
|
($1.96) |
|
68.2% |
Operating loss margin |
-22.3% |
|
-8.2% |
|
-14.1
pp |
Net loss attributable to CNET |
($3.28) |
|
($1.52) |
|
116.1% |
Loss per share |
($0.16) |
|
($0.09) |
|
77.8% |
*pp: percent points |
|
|
|
|
|
- Revenues decreased by 38.4% to
$14.80 million for the first half of 2020, primarily due to the
decrease in revenues from our Internet advertising and distribution
of the right to use search engine marketing service business
categories, as a result of the COVID-19 outbreak during the first
quarter of 2020 and slow recovery in the second quarter of
2020.
- Gross profit increased by 48.1% to
$1.20 million while gross margin improved by 4.7 percentage points
to 8.1% for the first half of 2020.
- Loss from operations increased by
68.2%, to $3.30 million for the first half of 2020, primarily
attributable to an increase in operating expenses.
- Net loss attributable to CNET was
$3.28 million, or $0.16 per share, for the first half of 2020,
compared to net loss of $1.52 million, or $0.09 per share, for the
same period of last year.
Second Quarter 2020 Financial
Results
Revenues
|
For the Three Months Ended June 30, |
|
2020 |
|
2019 |
|
% Change |
- Internet advertising and related data service |
2,302 |
|
3,598 |
|
-36.0% |
- Distribution of the right to use search engine marketing
service |
7,310 |
|
11,855 |
|
-38.3% |
- Data and technical services |
300 |
|
0 |
|
NM |
Internet advertising and
related services |
9,912 |
|
15,453 |
|
-35.9% |
Ecommerce O2O advertisement
and marketing services |
504 |
|
0 |
|
NM |
Technical solution
services |
0 |
|
0 |
|
NM |
Total
revenues |
10,416 |
|
15,453 |
|
-32.6% |
For the second quarter of 2020, revenues
decreased by $5.04 million, or 32.6%, to $10.42 million from $15.45
million for the same period of last year. The decrease in revenues
was primarily attributable to the decrease in revenues from the
Internet advertising and distribution of the right to use search
engine marketing service business categories, as a result of slow
business recovery after the COVID-19 outbreak during the first
fiscal quarter of 2020.
Cost of revenues
|
For the Three Months Ended June 30, |
|
2020 |
|
2019 |
|
% Change |
- Internet advertising and related data service |
2,072 |
|
3,484 |
|
-40.5% |
- Distribution of the right to use search engine marketing
service |
7,405 |
|
11,598 |
|
-36.2% |
- Data and technical services |
266 |
|
5 |
|
NM |
Internet advertising and
related services |
9,743 |
|
15,087 |
|
-35.4% |
Ecommerce O2O advertisement
and marketing services |
375 |
|
0 |
|
NM |
Technical solution
services |
0 |
|
0 |
|
NM |
Total cost of
revenues |
10,118 |
|
15,087 |
|
-32.9% |
For the second quarter of 2020, our total cost
of revenues decreased by $4.97 million, or 32.9%, to $10.12 million
for the second quarter of 2020 from $15.09 million for the same
period of last year. The decrease in our total cost of revenues
during the second quarter of 2020 was primary attributable to the
decrease in costs associated with distribution of the right to use
search engine marketing service and cost related to providing
Internet advertising services on our ad portals, which was in line
with the decrease in the related revenues as discussed above.
Gross profit and gross margin
Total gross profit decreased by $0.07 million,
or 18.6%, to $0.30 million for the second quarter of 2020 from
$0.37 million for the same period of last year, which was primarily
due to gross loss incurred from our core revenue stream, the
distribution of the right to use search engine marketing service,
as a result of tightened ad investment budgets by our client under
the COVID-19 pandemic circumstance, which was partially offset by
the increase in gross profit generated from Internet advertising
business and our new Ecommerce O2O advertising and marketing
services.
Overall gross margin was 2.9% for second quarter
of 2020, compared to 2.4% for the second quarter of 2019, primarily
due to improvement in gross margin of our Internet advertising
business and new revenues generated form Ecommerce O2O advertising
and marketing services during the period, which have a relatively
higher gross margin than our core businesses.
Operating expenses
Sales and marketing expenses decreased by $0.11
million, or 61.3%, to $0.07 million for the second quarter of 2020
from $0.18 million for the same period of last year. The decrease
in sales and marketing expenses was mainly attributable to
decreased performance-based salary and bonus expenses. As a
percentage of total revenues, sales and marketing expenses were
0.7% for the second quarter of 2020, compared to 1.2% for the same
period of last year.
General and administrative expenses decreased by
$0.12 million, or 9.3%, to $1.13 million for the second quarter of
2020 from $1.25 million for the same period of last year. The
decrease in general and administrative expenses was mainly
attributable to the following reasons: (1) the increase in
allowance for doubtful accounts of $0.07 million; (2) the decrease
in share-based compensation expenses of $0.03 million; and (3) the
decrease in general departmental expenses of $0.16 million, due to
a cost reduction plan executed by management after the COVID-19
outbreak. General and administrative expenses accounted for 10.9%
of the total revenues for the second quarter of 2020 compared to
8.1% for the same period of last year.
Research and development expenses decreased by
$0.04 million, or 27.0%, to $0.12 million for the second quarter of
2020 from $0.16 million for the same period of last year. Research
and development expenses accounted for 1.1% of total revenues for
the second quarter of 2020, compared to 1.0% for the same period of
last year.
Operating loss
Loss from operations decreased by $0.20 million,
or 16.5%, to $1.02 million for the second quarter of 2020 from
$1.22 million for the same period of last year. Operating loss
margin was 9.8% for the second quarter of 2020, compared to 7.9%
for the same period of last year.
Other income (expense), net
Total other income decreased to $0.04 million
for the second quarter of 2020, compared to $0.81 million for the
same period of last year, which was primarily due to a decrease in
gain from change in fair value of warrant liabilities.
Net loss attributable to CNET and loss per
share
Net loss attributable to CNET was $0.97 million,
or net loss per share of $0.04, for the second quarter of 2020,
compared to $0.38 million, or net loss per share of $0.02, for the
same period of last year.
First Half 2020 Financial
Results
Revenues
|
For the Six Months Ended June 30, |
|
2020 |
|
2019 |
|
% Change |
- Internet advertising and related data service |
3,250 |
|
5,435 |
|
-40.2% |
- Distribution of the right to use search engine marketing
service |
9,298 |
|
18,580 |
|
-50.0% |
- Data and technical services |
600 |
|
5 |
|
NM |
Internet advertising and
related services |
13,148 |
|
24,020 |
|
-45.3% |
Ecommerce O2O advertisement
and marketing services |
1,007 |
|
0 |
|
NM |
Technical solution
services |
645 |
|
0 |
|
NM |
Total
revenues |
14,800 |
|
24,020 |
|
-38.4% |
For the first half year of 2020, revenues
decreased by $9.22 million, or 38.4%, to $14.80 million from $24.02
million for the same period of last year. The decrease in revenues
was primarily attributable to the decrease in revenues from our
Internet advertising and distribution of the right to use search
engine marketing service business categories, as a result of the
COVID-19 outbreak during the first quarter and slow recovery in the
second quarter of 2020.
Cost of revenues
|
For the Six Months Ended June 30, |
|
2020 |
|
2019 |
|
% Change |
- Internet advertising and related data service |
2,906 |
|
5,218 |
|
-44.3% |
- Distribution of the right to use search engine marketing
service |
9,416 |
|
17,989 |
|
-47.7% |
- Data and technical services |
531 |
|
5 |
|
NM |
Internet advertising and
related services |
12,853 |
|
23,212 |
|
-44.6% |
Ecommerce O2O advertisement
and marketing services |
750 |
|
0 |
|
NM |
Technical solution
services |
0 |
|
0 |
|
NM |
Total cost of
revenues |
13,603 |
|
23,212 |
|
-41.4% |
For the first half year of 2020, cost of
revenues decreased by $9.61 million, or 41.4%, to $13.60 million
from $23.21 million for the same period of last year, which was in
line with the decrease in the related revenues as discussed
above.
Gross profit and gross margin
Total gross profit increased by $0.39 million,
or 48.1%, to $1.20 million for the first half of 2020 from $0.81
million for the same period of last year, as a result of the
improvement in gross margin of our Internet advertising business
and gross profit generated from our new Ecommerce O2O advertising
and marketing services and technical solution services during the
first half of 2020.
Overall gross margin was 8.1% for first half of
2020, compared to 3.4% for the first half of 2019.
Operating expenses
Sales and marketing expenses decreased by $0.12
million, or 32.9%, to $0.24 million for the first half of 2020 from
$0.35 million for the same period of last year. The decrease in
sales and marketing expenses was mainly attributable to the
following reasons: (1) staff salary and benefit expenses and
general departmental expenses decreased by $0.24 million, due to
the COVID-19 outbreak during the first fiscal quarter of 2020 in
China, which caused our operating offices closure after the Chinese
New Year holiday in February and March 2020, resulted from the
epidemic control measures imposed by the local governments where we
operate; and (2) the increase in share-based compensation expenses
of $0.12 million, related to restricted shares granted and issued
to our sales staff during the first fiscal quarter of 2020. As a
percentage of total revenues, sales and marketing expenses
accounted for 1.6% for the first half of 2020, compared to 1.5% for
the same period of last year.
General and administrative expenses increased by
$1.87 million, or 90.9%, to $3.93 million for the first half of
2020 from $2.06 million for the same period of last year. The
increase in general and administrative expenses was mainly
attributable to the following reasons: (1) the increase in
share-based compensation expenses of $1.52 million, due to
restricted shares granted and issued in the first fiscal quarter of
2020; and (2) the increase in allowance for doubtful accounts of
$0.29 million. General and administrative expenses accounted for
26.5% of total revenues for the first half of 2020, compared to
8.6% for the same period of last year.
Research and development expenses decreased by
$0.03 million, or 8.3%, to $0.33 million for the first half of 2020
from $0.36 million for the same period of last year. Research and
development expenses accounted for 2.2% of total revenues for the
first half of 2020, compared to 1.5% for the same period of last
year.
Operating loss
Loss from operations increased by $1.34 million,
or 68.2%, to $3.30 million for the first half of 2020 from $1.96
million for the same period of last year. Operating loss margin was
22.3% for the first half of 2020, compared to 8.2% for the same
period of last year.
Other income (expense), net
Total other income decreased to $0.08 million
for the first half of 2020, compared to $0.44 million for the same
period of last year, which was primarily due to a decrease in gain
from change in fair value of warrant liabilities.
Net loss attributable to CNET and loss per
share
As a result of the foregoing, net loss
attributable to CNET was $3.28 million, or net loss per share of
$0.16, for the first half of 2020, compared to $1.52 million, or
net loss per share of $0.09, for the same period of last year.
Financial Condition
As of June 30, 2020, the Company had cash and
cash equivalents of $1.06 million, compared to $1.60 million as of
December 31, 2019. Accounts receivable, net was $2.52 million as of
June 30, 2020, compared to $3.26 million as of December 31, 2019.
Working capital was $3.30 million as of June 30, 2020, compared to
$4.92 million as of December 31, 2019.
Net cash provided by operating activities was
$1.17 million for the first half of 2020, compared to net cash used
in operating activities of $2.33 million for the same period of
last year. Net cash used in investing activities was $1.27 million
for the first half of 2020, compared to $36,000 for the same period
of last year. Net cash used in financing activities was $0.43
million for the first half of 2020, compared to $nil for the same
period of last year.
Recent Developments
On August 7, 2020, the Company appointed Mr.
Charles Chiu to the position of the Company’s Chief Operating
Officer and Mr. Mark Li, the current Chief Financial Officer of the
Company, to serve as Secretary of the Company, effective
immediately. On the same date, Mr. George Chu resigned from the
roles of Chief Operating Officer and Secretary of the Company due
to personal reasons. Mr. Chu continued to serve as a director of
the Board of Directors of the Company.
On June 23, 2020, the Company received a written
notice from the Listing Qualifications Staff of The NASDAQ Stock
Market (“NASDAQ”) stating that the Company had regained compliance
with Nasdaq Listing Rule 5550(a)(2), which set forth minimum bid
price continued listing requirement.
About ChinaNet Online Holdings,
Inc.
Established in 2003 and headquartered in
Beijing, China, ChinaNet Online Holdings, Inc. (“ChinaNet” or the
“Company”) offers online advertising, precision marketing, data
analytics and other value-added services for enterprise clients.
Leveraging its fully integrated services platform, proprietary
database, and cutting-edge algorithms, ChinaNet delivers
customized, result-driven business solutions for small and
medium-sized enterprise clients in China. The Company also develops
blockchain and artificial intelligence enabled web/mobile
applications and software solutions for general public, enterprise
clients, and government agencies. More information about the
Company can be found at: www.chinanet-online.com.
Safe Harbor Statement
This release contains certain "forward-looking
statements" relating to the business of ChinaNet Online Holdings,
Inc., which can be identified by the use of forward-looking
terminology such as "believes," "expects," "anticipates,"
"estimates" or similar expressions. Such forward-looking statements
involve known and unknown risks and uncertainties, including
business uncertainties relating to government regulation of our
industry, market demand, reliance on key personnel, future capital
requirements, competition in general and other factors that may
cause actual results to be materially different from those
described herein as anticipated, believed, estimated or expected.
Certain of these risks and uncertainties are or will be described
in greater detail in our filings with the Securities and Exchange
Commission. These forward-looking statements are based on
ChinaNet's current expectations and beliefs concerning future
developments and their potential effects on the Company. There can
be no assurance that future developments affecting ChinaNet will be
those anticipated by ChinaNet. These forward-looking statements
involve a number of risks, uncertainties (some of which are beyond
the control of the Company) or other assumptions that may cause
actual results or performance to be materially different from those
expressed or implied by such forward-looking statements. ChinaNet
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
For more information, please contact:
Tony Tian,
CFA Weitian
Group LLC Email: ttian@weitianco.comPhone: +1 732-910-9692
CHINANET ONLINE HOLDINGS,
INC.CONDENSED CONSOLIDATED
BALANCE SHEETS(In thousands, except for number of shares
and per share data)
|
June 30, 2020 |
|
December 31,2019 |
|
(US $) |
|
(US $) |
|
(Unaudited) |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
1,055 |
|
|
$ |
1,603 |
|
Accounts receivable, net of allowance for doubtful accounts of
$3,844 and $3,148, respectively |
|
2,520 |
|
|
|
3,260 |
|
Prepayment and deposit to suppliers |
|
5,078 |
|
|
|
6,980 |
|
Due from related parties, net |
|
52 |
|
|
|
81 |
|
Other current assets, net |
|
959 |
|
|
|
11 |
|
Total current assets |
|
9,664 |
|
|
|
11,935 |
|
|
|
|
|
Long-term investments |
|
61 |
|
|
|
35 |
|
Operating lease right-of-use
assets |
|
7 |
|
|
|
12 |
|
Property and equipment, net |
|
73 |
|
|
|
78 |
|
Intangible assets, net |
|
1,493 |
|
|
|
1,899 |
|
Blockchain platform applications
development costs |
|
4,176 |
|
|
|
3,879 |
|
Long-term prepayments |
|
909 |
|
|
|
- |
|
Deferred tax assets, net |
|
691 |
|
|
|
713 |
|
Total Assets |
$ |
17,074 |
|
|
$ |
18,551 |
|
|
|
|
|
Liabilities and
Equity |
|
|
|
Current liabilities: |
|
|
|
Short-term bank loan * |
$ |
- |
|
|
$ |
430 |
|
Accounts payable * |
|
395 |
|
|
|
408 |
|
Advance from customers * |
|
1,619 |
|
|
|
2,006 |
|
Accrued payroll and other accruals * |
|
431 |
|
|
|
491 |
|
Taxes payable * |
|
3,258 |
|
|
|
3,214 |
|
Lease payment liability related to short-term leases * |
|
177 |
|
|
|
136 |
|
Other current liabilities * |
|
446 |
|
|
|
221 |
|
Warrant liabilities |
|
39 |
|
|
|
107 |
|
Total current
liabilities |
|
6,365 |
|
|
|
7,013 |
|
Long-term liabilities: |
|
|
|
Long-term borrowing from a director |
|
124 |
|
|
|
125 |
|
Total Liabilities |
|
6,489 |
|
|
|
7,138 |
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Equity: |
|
|
|
ChinaNet Online Holdings, Inc.’s stockholders’ equity |
|
|
|
Common stock (US$0.001 par value; authorized 50,000,000 shares;
issued and outstanding 21,691,926 shares and 19,629,403 shares at
June 30, 2020 and December 31, 2019, respectively) |
|
22 |
|
|
|
20 |
|
Additional paid-in capital |
|
45,493 |
|
|
|
43,111 |
|
Statutory reserves |
|
2,607 |
|
|
|
2,607 |
|
Accumulated deficit |
|
(39,051 |
) |
|
|
(35,773 |
) |
Accumulated other comprehensive income |
|
1,572 |
|
|
|
1,505 |
|
Total ChinaNet Online Holdings, Inc.’s stockholders’ equity |
|
10,643 |
|
|
|
11,470 |
|
|
|
|
|
Noncontrolling interests |
|
(58 |
) |
|
|
(57 |
) |
Total equity |
|
10,585 |
|
|
|
11,413 |
|
|
|
|
|
Total Liabilities and Equity |
$ |
17,074 |
|
|
$ |
18,551 |
|
CHINANET ONLINE HOLDINGS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS(In thousands, except for
number of shares and per share data)
|
Six Months Ended June 30, |
|
Three Months Ended June 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
(US $) |
|
(US $) |
|
(US $) |
|
(US $) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Revenues |
|
|
|
|
|
|
|
From unrelated parties |
$ |
14,786 |
|
|
$ |
23,912 |
|
|
$ |
10,415 |
|
|
$ |
15,352 |
|
From a related party |
|
14 |
|
|
|
108 |
|
|
|
1 |
|
|
|
101 |
|
Total revenues |
|
14,800 |
|
|
|
24,020 |
|
|
|
10,416 |
|
|
|
15,453 |
|
Cost of revenues |
|
13,603 |
|
|
|
23,212 |
|
|
|
10,118 |
|
|
|
15,087 |
|
Gross profit |
|
1,197 |
|
|
|
808 |
|
|
|
298 |
|
|
|
366 |
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
Sales and marketing expenses |
|
235 |
|
|
|
350 |
|
|
|
70 |
|
|
|
181 |
|
General and administrative expenses |
|
3,928 |
|
|
|
2,058 |
|
|
|
1,132 |
|
|
|
1,248 |
|
Research and development expenses |
|
330 |
|
|
|
360 |
|
|
|
116 |
|
|
|
159 |
|
Total operating expenses |
|
4,493 |
|
|
|
2,768 |
|
|
|
1,318 |
|
|
|
1,588 |
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(3,296 |
) |
|
|
(1,960 |
) |
|
|
(1,020 |
) |
|
|
(1,222 |
) |
|
|
|
|
|
|
|
|
Other income (expenses) |
|
|
|
|
|
|
|
Interest expense, net |
|
(1 |
) |
|
|
(23 |
) |
|
|
- |
|
|
|
(12 |
) |
Other income/(expenses) |
|
17 |
|
|
|
(4 |
) |
|
|
18 |
|
|
|
(2 |
) |
Change in fair value of warrant liabilities |
|
68 |
|
|
|
471 |
|
|
|
22 |
|
|
|
821 |
|
Total other income |
|
84 |
|
|
|
444 |
|
|
|
40 |
|
|
|
807 |
|
|
|
|
|
|
|
|
|
Loss before income tax
(expense)/benefit and noncontrolling interests |
|
(3,212 |
) |
|
|
(1,516 |
) |
|
|
(980 |
) |
|
|
(415 |
) |
Income tax (expense)/benefit |
|
(68 |
) |
|
|
(6 |
) |
|
|
10 |
|
|
|
33 |
|
Net loss |
|
(3,280 |
) |
|
|
(1,522 |
) |
|
|
(970 |
) |
|
|
(382 |
) |
Net loss attributable to noncontrolling interests |
|
2 |
|
|
|
5 |
|
|
|
2 |
|
|
|
3 |
|
Net loss attributable to
ChinaNet Online Holdings, Inc. |
$ |
(3,278 |
) |
|
$ |
(1,517 |
) |
|
$ |
(968 |
) |
|
$ |
(379 |
) |
Net loss |
$ |
(3,280 |
) |
|
$ |
(1,522 |
) |
|
$ |
(970 |
) |
|
$ |
(382 |
) |
Foreign currency translation
gain/(loss) |
|
68 |
|
|
|
24 |
|
|
|
(4 |
) |
|
|
60 |
|
Comprehensive
loss |
$ |
(3,212 |
) |
|
$ |
(1,498 |
) |
|
$ |
(974 |
) |
|
$ |
(322 |
) |
Comprehensive loss attributable
to noncontrolling interests |
|
1 |
|
|
|
5 |
|
|
|
2 |
|
|
|
2 |
|
Comprehensive
loss attributable to
ChinaNet Online Holdings, Inc. |
$ |
(3,211 |
) |
|
$ |
(1,493 |
) |
|
$ |
(972 |
) |
|
$ |
(320 |
) |
|
|
|
|
|
|
|
|
Loss per
share |
|
|
|
|
|
|
|
Loss per common share |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.16 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
|
21,044,666 |
|
|
|
16,411,548 |
|
|
|
21,691,926 |
|
|
|
16,412,543 |
|
CHINANET ONLINE HOLDINGS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(In thousands)
|
Six Months Ended June 30, |
|
|
2020 |
|
|
|
2019 |
|
|
(US $) |
|
(US $) |
|
(Unaudited) |
|
(Unaudited) |
Cash flows from operating activities |
|
|
|
Net loss |
$ |
(3,280 |
) |
|
$ |
(1,522 |
) |
Adjustments to reconcile
net loss to net cash provided
by/(used in) operating activities |
|
|
|
Depreciation and amortization |
|
415 |
|
|
|
52 |
|
Amortization of operating lease right-of-use assets |
|
5 |
|
|
|
87 |
|
Share-based compensation expenses |
|
1,987 |
|
|
|
203 |
|
Provision for allowances for doubtful accounts |
|
747 |
|
|
|
460 |
|
Deferred taxes |
|
11 |
|
|
|
6 |
|
Change in fair value of warrant liabilities |
|
(68 |
) |
|
|
(471 |
) |
Changes in operating
assets and liabilities |
|
|
|
Accounts receivable |
|
(38 |
) |
|
|
(866 |
) |
Prepayment and deposit to suppliers |
|
2,090 |
|
|
|
(76 |
) |
Due from related parties |
|
28 |
|
|
|
227 |
|
Other current assets |
|
(3 |
) |
|
|
11 |
|
Long-term prepayments |
|
(750 |
) |
|
|
- |
|
Accounts payable |
|
(9 |
) |
|
|
(2,153 |
) |
Advance from customers |
|
(362 |
) |
|
|
1,787 |
|
Accrued payroll and other accruals |
|
(57 |
) |
|
|
(232 |
) |
Lease payment liability related to short-term leases |
|
43 |
|
|
|
120 |
|
Other current liabilities |
|
326 |
|
|
|
(39 |
) |
Taxes payable |
|
89 |
|
|
|
91 |
|
Prepaid lease payment |
|
(9 |
) |
|
|
(10 |
) |
Net cash provided by/(used in)
operating activities |
|
1,165 |
|
|
|
(2,325 |
) |
|
|
|
|
Cash flows from investing activities |
|
|
|
Investment to investee entities |
|
(27 |
) |
|
|
(36 |
) |
Short-term loan to an unrelated party |
|
(944 |
) |
|
|
- |
|
Payment for blockchain platform applications development costs |
|
(302 |
) |
|
|
- |
|
Net cash used in
investing activities |
|
(1,273 |
) |
|
|
(36 |
) |
Cash flows from financing activities |
|
|
|
Proceeds from short-term bank loan |
|
- |
|
|
|
442 |
|
Repayment of short-term bank loan |
|
(427 |
) |
|
|
(442 |
) |
Net cash used in
financing activities |
|
(427 |
) |
|
|
- |
|
|
|
|
|
Effect of exchange rate fluctuation |
|
(13 |
) |
|
|
23 |
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(548 |
) |
|
|
(2,338 |
) |
|
|
|
|
Cash and cash equivalents at beginning of the period |
|
1,603 |
|
|
|
3,742 |
|
Cash and cash equivalents at end of the period |
$ |
1,055 |
|
|
$ |
1,404 |
|
|
|
|
|
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