BEIJING, Sept. 25, 2017 /PRNewswire/ -- China Internet
Nationwide Financial Services Inc.
(NASDAQ: CIFS) ("CIFS" or the "Company"), a leading financial
advisory services company, today announced its unaudited financial
results for the six months ended June 30,
2017.
Highlights for the period from January
1, 2017 to June 30,
2017
- Net Revenue of $7.97 million, a
15% year-over-year increase from the same period in 2016
- Net Income for the six months ended June
30, 2017 was $8.24 million
compared to a net income of $5.69
million in the same period a year ago. Earnings per share
for the period from January 1, 2017
to June 30, 2017 was $0.41 per share, compared to $0.28 per share in the same period a year
ago.
Jianxin Lin, Chairman and Chief
Executive Officer of CIFS, commented, "Benefiting from the
continuing growth of China's
economy and strong demand for our services by the underserved small
and medium sized enterprises, we achieved significant growth with
revenue and net income increasing by 15% and 45%, respectively, in
the first half of 2017."
Mr. Lin continued, "As we move onto the next chapter in the
Company history following our recent IPO which not only
significantly raised our public profile but also improved our
market and financial conditions, we believe that our continuing
efforts to diversify our business through both the introduction of
new financial services and geographical expansion position us well
for sustainable growth in coming years."
Operating Metrics for the period from January 1, 2017 to June
30, 2017
We regularly monitor a number of metrics in order to measure our
current and projected future performance. These metrics aid us in
developing and refining our growth strategies and making strategic
decisions.
|
For the Six Months Ended June
30,
|
|
2017
|
|
2016
|
|
RMB
|
|
US$
|
|
RMB
|
|
US$
|
|
(in
Million)
|
Amount of financing
advised:
|
5,247
|
|
764
|
|
4,228
|
|
648
|
Commercial
Payment
|
3,120
|
|
454
|
|
3,022
|
|
463
|
International Corporate
Financing
|
1,374
|
|
200
|
|
849
|
|
130
|
Intermediary
Loan
|
753
|
|
110
|
|
357
|
|
55
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
Number of clients
advised(1)
|
15
|
|
15
|
|
|
|
|
Commercial
Payment
|
9
|
|
10
|
|
|
|
|
International Corporate
Financing
|
2
|
|
2
|
|
|
|
|
Intermediary
Loan
|
4
|
|
3
|
|
|
|
|
(1) The number of
clients for a specified period represents the number of
clients whose financing were funded during such
period.
|
|
|
|
|
|
|
For the Six Months
Ended June 30,
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
(in US$
thousands)
|
|
|
|
|
Advisory fees billed to
clients(1)
|
7,973
|
|
6,908
|
|
|
|
|
(1)
Represent amounts net of VAT.
|
|
|
|
|
The amount of financing advised is calculated by summing up the
financing amount indicated on the financing advisory contracts. The
revenue is calculated by multiplying the service fee ratio
indicated on the contract and the financing amount advised.
Results for the Six Months ended June
30, 2017
The following tables set forth a summary of our consolidated
results of operations for the periods indicated, both in absolute
amounts and as percentages of variance. The operating results in
any period are not necessarily indicative of the results that may
be expected for any future period.
|
|
Six Months Ended
June 30,
|
|
Variance
|
|
|
2017
|
|
2016
|
|
Amount
|
|
%
|
Revenue
|
|
$
|
7,973,214
|
|
$
|
6,907,622
|
|
$
|
1,065,592
|
|
15%
|
Cost of
revenue
|
|
|
182,514
|
|
|
176,321
|
|
|
6,193
|
|
4%
|
Gross
profit
|
|
|
7,790,700
|
|
|
6,731,301
|
|
|
1,059,399
|
|
16%
|
General and
administrative expense
|
|
|
611,860
|
|
|
512,049
|
|
|
99,811
|
|
19%
|
Selling and
distribution expense
|
|
|
26,295
|
|
|
19,132
|
|
|
7,163
|
|
37%
|
Income from
operations
|
|
|
7,152,545
|
|
|
6,200,120
|
|
|
952,425
|
|
15%
|
Interest income on
bank deposit
|
|
|
4,618
|
|
|
1,947
|
|
|
2,671
|
|
137%
|
Other
expenses
|
|
|
(26,399)
|
|
|
(7,428)
|
|
|
(18,971)
|
|
(255)%
|
Interest income from
loans to third parties
|
|
|
1,455,692
|
|
|
1,394,078
|
|
|
61,614
|
|
4%
|
Income before
income taxes
|
|
|
8,586,456
|
|
|
7,588,717
|
|
|
997,739
|
|
13%
|
Income tax
expenses
|
|
|
347,302
|
|
|
1,895,559
|
|
|
(1,548,257)
|
|
(82)%
|
Net
income
|
|
$
|
8,239,154
|
|
$
|
5,693,158
|
|
$
|
2,545,996
|
|
45%
|
Comprehensive
income
|
|
$
|
8,968,142
|
|
$
|
5,290,901
|
|
$
|
3,677,241
|
|
70%
|
Revenue
Net revenue for six months ended June 30,
2017 increased 15% year-over-year to $7,973,214 from $6,907,622 in the same period in 2016.
Approximately 64% of our revenue or $5,141,528 was generated by providing commercial
payment advisory services to 9 small and medium size enterprises
("SMEs") where we assisted in helping them obtain acceptance bills
from banks in 9 separate transactions.
Approximately 26% of our revenue or $2,068,147 was derived from providing
intermediary bank loan advisory services to four customers, a 119%
increase from $945,102 for the same
period in 2016.
Finally, approximately 10% of our revenue or $763,539 was derived from providing international
corporate financing advisory services for the six months ended
June 30, 2017. International
corporate financing advisory revenues increased 55% year-over-year
from $491,915 in the same period in
2016.
Overall, our revenue increased substantially for the period from
January 1, 2017 to June 30, 2017 compared to the same period in 2016
mainly due to an increase in the financing amounts. Our advisory
fee rate remained unchanged year over year.
Cost of Revenue
Total cost of revenue, which comprises mainly revenue-generating
staffing costs, was $182,514 for the
six months ended June 30, 2017
compared to $176,321 for the six
months ended June 30, 2016.
Overall, the year-over-year increase of approximately 4% is
lower than a 15% increase in our revenue, mainly because staff
salaries increased only slightly compared to our revenue
growth.
Gross Profit and Gross Margin
Gross profit for the period from January
1, 2017 to June 30, 2017
increased 16% to $7,790,700 from
$6,731,301 in the same period in 2016
and the increase is in line with the revenue growth of 15% over the
same periods and only a slight increase in cost of revenue.
Gross margin, or gross profit as a percentage of total revenues,
was 98% for the period from January 1,
2017 to June 30, 2017,
compared with 97% in the same period in 2016.
Operating Expenses
Total operating expenses for the six months ended June 30, 2017 increased 20% year-over-year to
$638,155 from $531,181 in the same period in 2016.
Selling and marketing expenses for the six months ended
June 30, 2017 increased 37%
year-over-year to $26,295 from
$19,132 in the comparable period in
2016. The year-over-year increase primarily resulted from the
increase in staffing costs as a result of an increase in headcount,
which is in line with our revenue growth.
General and administrative expenses consist primarily of staff
salaries, rental expenses and office related expenses. General and
administrative expenses were $611,860, or 8% of total revenue for the six
months ended June 30, 2017, as
compared to $512,049 of 7% of total
revenue in the same period in 2016, an increase of $99,811. The increase of general and
administrative expenses is mainly due to increases in office
related expenses, travel and entertainment expenses and staffing
costs as a result of an increase in headcount, which are in line
with our revenue growth.
Income from Operations and Operating Margin
Income from operations in the six months ended June 30, 2017 was $7,152,545, compared with operating income of
$6,200,120 in the same period in
2016.
Operating margin, or income from operations as a percentage of
total revenue, remained at 90% for both the six months ended
June 30, 2017 and 2016.
Interest incomes
Interest income was $1,460,310 for
the six months ended June 30, 2017,
compared with $1,396,025 for the same
period a year ago. Interest income was primarily from bank deposits
and loans to third parties.
Income tax expense
Income tax expense was $347,302
for the six months ended June 30,
2017, compared with $1,895,559
for the same period of the previous year. The sharp decrease of
income tax expense was mainly due to the transition of operating
business from one subsidiary - Sheng Ying
Xin (Beijing) Management
Consulting Co., Ltd ("Sheng Ying
Xin"), in the first half of 2016, which is subject to the
25% income tax rate, to another subsidiary - Kashgar Sheng Yingxin
Enterprise Consulting Co., Ltd. ("Kashgar SYX"), which is exempted
from income tax from its inception through December 31, 2020.
Foreign Currency Translation Gain/(Loss)
Foreign currency translation gain was $728,988 in the six months ended June 30, 2017, compared with a loss of
$402,257 in the same period of the
previous year, as a result of the fluctuations in the exchange
rates of the Renminbi against the US dollar.
Net Income
Net income for the six months ended June
30, 2017 was $8,239,154, as
compared to $5,693,158 for the six
months ended June 30, 2016. The
increase in net income is mainly due to our business expansion and
growth in our revenue.
Liquidity and Capital Resources
As of June 30, 2017 and
December 31, 2016, we held cash in
U.S. dollars of $5,871,627 and
$1,880,425 respectively.
Net cash generated from operations for the six months ended
June 30, 2017 was $ 11,602,701 as compared to $9,293,396 for the six months ended June 30, 2016.
Relevant PRC statutory laws and regulations permit payments of
dividends by the Company's PRC subsidiary and VIE only from their
retained earnings, if any, determined in accordance with PRC GAAP.
In addition, the Company's subsidiary and VIE in China are required to make annual
appropriations of 10% of after-tax profit to a general reserve fund
or statutory reserve fund until such reserve has reached 50% of its
registered capital based on the enterprise's PRC statutory
accounts. Paid in capital of the PRC subsidiary and VIE included in
the Company's consolidated net assets are also non-distributable
for dividend purposes. As a result of these PRC laws and
regulations, the Company's PRC subsidiary and VIE are restricted in
their abilities to transfer net assets to the Company in the form
of dividends, loans or advances. The Company is expected to focus
the operation mainly in PRC and is not expected to have significant
operations outside PRC in foreseeable future, and is not expected
to have significant transfer of cash to and/or from the PRC
subsidiary and VIE.
According to applicable PRC laws and regulations, a number of
conditions must be met before any dividends of a wholly foreign
owned enterprise, such as our PRC subsidiary, may be distributed.
In accordance with the Implementation Rules of Wholly Foreign-Owned
Enterprise Law of the PRC promulgated by the State Council, prior
to the payment of any dividend, our PRC subsidiary is required to
(i) reserve funds from its profit of current accounting year to
make up its losses for the previous accounting years, (ii) pay the
income taxes pursuant to applicable tax laws of the PRC and (iii)
reserve accumulated funds to improve our PRC subsidiary's ability
to withstand operation risks. Therefore, the PRC regulations could
conceivably limit the amount of dividends that can be paid by our
PRC subsidiary although our PRC subsidiary has historically not
paid any dividends. We believe that such limitation will exist in
the future.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements.
Other Significant Events
Initial Public Offering
We completed an initial public offering ("IPO") of 2,023,146 of
our ordinary shares to the public at a price of $10.00 per share for a total of $20,231,460 before underwriting discounts,
commissions and offering expenses on July
28, 2017.
About China Internet Nationwide Financial Services
Inc.
Incorporated in 2014 and headquartered in Beijing, China Internet Nationwide Financial
Services Inc. provides financial advisory services, including
commercial payment advisory, intermediary bank loan advisory, and
international corporate financing advisory, to meet the financing
and capital needs of its clients, comprised largely of
small-to-medium sized enterprises.
Forward Looking Statements
This news release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and 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. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar
statements. All statements other than statements of historical fact
in this press release are forward-looking statements and involve
certain risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements.
These forward-looking statements are based on management's current
expectations, assumptions, estimates and projections about the
Company and the industry in which the Company operates, but involve
a number of unknown risks and uncertainties, Further information
regarding these and other risks is included in the Company's
filings with the U.S. Securities and Exchange Commission. The
Company undertakes no obligation to update forward-looking
statements to reflect subsequent occurring events or circumstances,
or changes in its expectations, except as may be required by law.
Although the Company believes that the expectations expressed in
these forward looking statements are reasonable, it cannot assure
you that such expectations will turn out to be correct, and actual
results may differ materially from the anticipated results. You are
urged to consider these factors carefully in evaluating the
forward-looking statements contained herein and are cautioned not
to place undue reliance on such forward-looking statements, which
are qualified in their entirety by these cautionary statements.
INVESTOR RELATIONS:
China Internet Nationwide Financial Services Inc.
Email: ir@cifsp.com
Phone:+86 10 8587 8166
CHINA INTERNET
NATIONWIDE FINANCIAL SERVICES INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In
US$)
|
|
|
As of June
30,
|
|
As of December
31,
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
5,871,627
|
|
$
|
1,880,425
|
Accounts receivable
(including $0 and $0 of receivable from related
parties as of June 30, 2017 and December 31, 2016,
respectively)
|
|
4,847,662
|
|
|
8,088,511
|
Other receivables and
prepayments
|
|
382,569
|
|
|
94,474
|
Loan to third
parties
|
|
27,079,889
|
|
|
19,237,422
|
Advance to
suppliers
|
|
102,724
|
|
|
-
|
Deferred offering
cost
|
|
710,285
|
|
|
312,202
|
Total Current
Assets
|
|
38,994,756
|
|
|
29,613,034
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Equipment,
net
|
|
69,524
|
|
|
28,777
|
Intangible assets,
net
|
|
5,695
|
|
|
2,772
|
Long-term office
rental deposit
|
|
504,497
|
|
|
208,695
|
Total
Assets
|
$
|
39,574,472
|
|
$
|
29,853,278
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accrued
payroll
|
$
|
482,256
|
|
$
|
490,875
|
Other payables and
accruals
|
|
46,017
|
|
|
53,827
|
Due to a related
party
|
|
163,440
|
|
|
163,361
|
Taxes
payable
|
|
4,525,275
|
|
|
3,755,872
|
Total Current
Liabilities
|
|
5,216,988
|
|
|
4,463,935
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Common Stock ($0.001
par value, unlimited authorized shares, and
20,000,000 shares issued and outstanding)
|
|
20,000
|
|
|
20,000
|
Additional paid in
capital
|
|
9,147,398
|
|
|
9,147,398
|
Statutory
reserve
|
|
1,657,084
|
|
|
1,657,084
|
Retained
earnings
|
|
25,918,611
|
|
|
17,679,458
|
Accumulated other
comprehensive loss
|
|
(2,385,609)
|
|
|
(3,114,597)
|
Total Shareholders'
Equity
|
|
34,357,484
|
|
|
25,389,343
|
Total Liabilities and
Shareholders' Equity
|
$
|
39,574,472
|
|
$
|
29,853,278
|
CHINA INTERNET
NATIONWIDE FINANCIAL SERVICES INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED INCOME STATEMENT
|
(In
US$)
|
|
|
Six Months
Ended
June 30, 2017
|
|
Six Months
Ended
June 30, 2016
|
Revenue
|
|
|
|
|
|
International
corporate financing advisory
|
$
|
763,539
|
|
$
|
491,915
|
Intermediary bank
advisory services
|
|
2,068,147
|
|
|
945,102
|
Commercial payment
advisory services
|
|
5,141,528
|
|
|
5,470,605
|
Total
revenue
|
|
7,973,214
|
|
|
6,907,622
|
|
|
|
|
|
|
Cost of
revenues
|
|
182,514
|
|
|
176,321
|
Gross
profit
|
|
7,790,700
|
|
|
6,731,301
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Selling and marketing
expenses
|
|
26,295
|
|
|
19,132
|
General and
administrative expenses
|
|
611,860
|
|
|
512,049
|
Total Operating
expenses
|
|
638,155
|
|
|
531,181
|
Income from
operations
|
|
7,152,545
|
|
|
6,200,120
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
Interest income on
bank deposit
|
|
4,618
|
|
|
1,947
|
Other expenses,
net
|
|
(26,399)
|
|
|
(7,428)
|
Interest income from
loans to third parties
|
|
1,455,692
|
|
|
1,394,078
|
Total other
income, net
|
|
1,433,911
|
|
|
1,388,597
|
|
|
|
|
|
|
Income before income
tax expenses
|
|
8,586,456
|
|
|
7,588,717
|
Income tax
expenses
|
|
347,302
|
|
|
1,895,559
|
Net
Income
|
$
|
8,239,154
|
|
$
|
5,693,158
|
Other
comprehensive loss
|
|
|
|
|
|
Foreign currency
translation gain/(loss)
|
|
728,988
|
|
|
(402,257)
|
Comprehensive
Income
|
$
|
8,968,142
|
|
$
|
5,290,901
|
Weighted average
number of shares, basic and diluted*
|
|
20,000,000
|
|
|
20,000,000
|
Basic and diluted
earnings per share
|
$
|
0.41
|
|
$
|
0.28
|
|
*On October 9, 2016,
the Company effected a split of the Company's common stock,
pursuant to which every one
(1) ordinary share outstanding before the split was converted into
twenty million (20,000,000) ordinary shares with a
par value of $0.001 after the split. Weighted average number of
shares outstanding and per share amounts for the six
months ended June 30, 2016 has been retroactively restated to
reflect this split.
|
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SOURCE China Internet Nationwide Financial Services Inc.