BEIJING and URUMQI, China,
Nov. 13, 2017 /PRNewswire/
-- China Lending Corporation ("China Lending" or the
"Company") (Nasdaq: CLDC), a leading non-bank direct lending
corporation servicing micro, small and medium sized enterprises
(MSME), currently underserved by commercial banks in China, today reported its unaudited financial
results for the three and nine months ended September 30, 2017.
Third Quarter 2017
Highlights
|
|
|
|
For the Three
Months Ended September 30,
|
($ millions,
except per share data)
|
|
2017
(Unaudited)
|
|
2016
(Unaudited)
|
|
%
Change
|
|
|
|
|
|
|
|
Revenues
|
|
$2.92
|
|
$9.02
|
|
-67.6%
|
Interest
expenses
|
|
($1.27)
|
|
($1.17)
|
|
8.3%
|
Provision for loan
losses
|
|
($17.35)
|
|
($1.86)
|
|
834.3%
|
Net interest
income
|
|
($15.70)
|
|
$5.99
|
|
-362.0%
|
Non interest expenses
/income
|
|
($0.54)
|
|
($1.29)
|
|
-58.4%
|
Income before
tax
|
|
($16.23)
|
|
$4.70
|
|
-445.4%
|
Income tax
expense
|
|
$2.40
|
|
($0.83)
|
|
-388.6%
|
Net income
|
|
($13.83)
|
|
$3.87
|
|
-457.7%
|
Dividend - Series A
convertible preferred stock
|
|
($0.17)
|
|
($0.16)
|
|
6.1%
|
Net income
attributable to common shareholders
|
|
($14.01)
|
|
$3.71
|
|
-477.9%
|
EPS -
Basic
|
|
($0.76)
|
|
$0.23
|
|
-426.9%
|
EPS -
Diluted
|
|
($0.76)
|
|
$0.22
|
|
-441.6%
|
- The Company issued 35 loans with an aggregate amount of
$21.70 million during the third
quarter of 2017, compared to 116 loans with an aggregate amount of
$83.85 million for the same period of
last year.
- Quarterly interest and fee income decreased by 67.6% to
$2.92 million for the third quarter
of 2017, compared to $9.02 million
for the same period of last year. The decrease was mainly due to
reduced interest rates on loans this year in response to increasing
competitive pressure and the significant decrease in interest
received on certain supply chain financing loans related to certain
customers who faced financial difficulties.
- Net loss attributable to ordinary shareholders was $14 million, or net loss of $0.76 per diluted share for the third quarter of
2017. This compares to net income attributable to ordinary
shareholders of $3.71 million, or
$0.22 per diluted share, for the same
period of last year.
- Loans receivable, net of provision for loan losses, was
$151.69 million as of September 30, 2017, compared to $148.29 million as of December 31, 2016. Provision for loan losses was
$17.35 million for the third quarter
of 2017, compared to $1.86 million
for the same period of last year.
- The Company paid $633,600 as
dividends on the Series A Convertible Redeemable Preferred Shares
in cash. Dividends accrued on the Series A Convertible Redeemable
Preferred Shares were $214,527 as of
September 30, 2017 compared to
$333,327 as of December 31, 2016.
Jingping Li, Co-founder and Chief
Executive Officer of China Lending, commented, "Our disappointing
third quarter financial results highlighted increasing pressure
faced by the micro-lenders including us as the growth momentum of
the overall micro lending industry slows and competition heats up.
While we have lowered interest rates on new loans to keep up with
the peers, we also were setback in the third quarter as financial
difficulties at certain supply chain financing customers drove
significant decline in interest and fee income, dramatic increase
in loan loss provisions and rapidly deteriorating cash flow
situation. We are closely monitoring the situation at those
customers and expect further impact on our business as additional
loans become due over time based on management's current
assessment."
Third Quarter 2017 Financial Results
Interest and fee income
For the three months ended September 30,
2017, total interest and fee income, which include interest
and fees on direct lending loans, financial advisory fees and
interest on deposits with banks, decreased by $6.10 million, or 67.6%, to $2.92 million from $9.02
million for the same period of last year. The decrease was
mainly due to reduced interest rates this year as a result of
competitive pressure and the significant decrease in monthly
interest received on certain supply chain financing loans related
to certain customers who faced financial difficulties.
Interest expense
The Company borrows funds, which includes short-term bank loans,
a secured loan and loans from cost investment investee, to fund its
direct lending business. For the three months ended September 30, 2017, total interest expense
increased by $0.10 million, or 8.3%,
to $1.27 million from $1.17 million for the same period of last year.
The increase was mainly related to increase in short-term bank
loans, partially offset by a decrease in interest expense and fees
on the secured loan.
Provision for loan losses
For the three months ended September 30,
2017, provision for loan losses was $17.35 million, compared to $1.86 million for the same period of last year.
The increase was mainly related to certain supply chain financing
loans as certain customers were facing financial difficulties. We
are closely monitoring the situation at those customers and expect
further impact on our business as additional loans become due over
time based on management's current assessment.
Net interest income/ (loss)
After deducting for interest expense and provision for loan
losses, net interest loss was $15.70
million for the three months ended September 30, 2017, compared to net interest
income of $5.99 million for the same
period of last year. The decrease was mainly due to the decrease of
total interest income and an increase in provision for loan
losses.
Non-interest expenses
Salaries and employee surcharge for the three months ended
September 30, 2017 decreased by
$0.12 million, or 38.8%, to
$0.20 million from $0.32 million for the same period of last year.
Business taxes and other taxes for the three months ended
September 30, 2017 decreased by
$0.04 million, or 62.9%, to
$0.02 million from $0.06 million for the same period of last year.
Other operating expenses decreased by $0.56
million, or 58.4%, to $0.39
million from $0.95 million for
the same period of last year. As a result, total non-interest
expenses for the three months ended September 30, 2017 decreased by $0.72 million, or 53.9%, to $0.61 million from $1.33
million for the same period of last year, which was mainly
due to the following reasons: (1) the decrease in employee expenses
due to departure of certain employees in the third quarter of 2017;
(2) the decrease in business taxes and other taxes in line with the
decrease in total interest income; and (3) the decrease in expenses
related to travel, entertainment and other professional activities
as a result of headcount reduction.
Income/ (loss) before income tax, net income/ (loss) and
EPS
For the three months ended September 30,
2017, loss before income tax was $16.23 million, compared to income before income
tax of $4.70 million for the same
period of last year. The income tax benefit was $2.40 million for the three months ended
September 30, 2017, compared to an
income tax expense of $0.83 million
for the same period of last year due to the above-mentioned
reasons.
For the three months ended September 30,
2017, net loss was $13.83
million, compared to net income of $3.87 million for the same period of last year.
After deducting for dividends paid for the Series A Convertible
Redeemable Preferred Stock, net loss allocated to ordinary
shareholders was $14 million,
compared to net income allocated to ordinary shareholders of
$3.71 million for the same period of
last year.
Basic and diluted loss per share were $0.76 for the three months ended September 30, 2017, compared to basic and diluted
earnings per share of $0.23 and
$0.22, respectively, for the same
period of last year.
Loan Portfolio
|
|
For the Three
Months Ended September 30,
|
|
|
2017
|
|
2016
|
|
|
No. of
loans
|
|
%
|
|
Loan amount
($M)
|
|
%
|
|
No. of
loans
|
|
%
|
|
Loan amount
($M)
|
|
%
|
Supply chain
financing
|
|
4
|
|
11.4%
|
|
6.47
|
|
29.8%
|
|
65
|
|
56.0%
|
|
56.52
|
|
67.4%
|
Commerce &
service
|
|
27
|
|
77.1%
|
|
10.79
|
|
49.7%
|
|
35
|
|
30.2%
|
|
18.87
|
|
22.5%
|
Manufacturing
|
|
0
|
|
0.0%
|
|
0.00
|
|
0.0%
|
|
4
|
|
3.4%
|
|
2.04
|
|
2.4%
|
Real
estate
|
|
2
|
|
5.7%
|
|
3.91
|
|
18.0%
|
|
0
|
|
0.0%
|
|
0.00
|
|
0.0%
|
Agriculture
|
|
0
|
|
0.0%
|
|
0.00
|
|
0.0%
|
|
6
|
|
5.2%
|
|
5.14
|
|
6.1%
|
Energy and
mining
|
|
1
|
|
2.9%
|
|
0.52
|
|
2.4%
|
|
0
|
|
0.0%
|
|
0.00
|
|
0.0%
|
Consumer
credit
|
|
1
|
|
2.9%
|
|
0.01
|
|
0.1%
|
|
2
|
|
1.7%
|
|
0.08
|
|
0.1%
|
Others
|
|
0
|
|
0.0%
|
|
0.00
|
|
0.0%
|
|
4
|
|
3.4%
|
|
1.20
|
|
1.5%
|
Total
|
|
35
|
|
100.0%
|
|
21.70
|
|
100.0%
|
|
116
|
|
100.0%
|
|
83.85
|
|
100.0%
|
As of September 30, 2017, the
Company's loans covered over seven industries, including supply
chain financing, commerce and service, agriculture, real estate,
manufacturing, energy and mining and consumer credit. The Company
issued 35 loans which aggregated to $21.70
million for the three months ended September 30, 2017, compared to 116 loans which
aggregated to $83.85 million for the
same period of last year. Commerce and service was the largest
segment, accounting for 49.7% of total loan amount with 27 loans
issued for the three months ended September
30, 2017. Supply chain financing was the second largest
segment, accounting for 29.8% of total loan amount with 4 loans
issued for the three months ended September
30, 2017.
Nine Months Ended September 30,
2017 Financial Results
|
|
For the Nine
Months Ended September 30,
|
($ millions,
except per share data)
|
|
2017
|
|
2016
|
|
%
Change
|
|
|
|
|
|
|
|
Revenues
|
|
$19.15
|
|
$26.90
|
|
-28.8%
|
Interest
expenses
|
|
($3.72)
|
|
($3.85)
|
|
-3.3%
|
Provision for loan
losses
|
|
($19.41)
|
|
($3.51)
|
|
452.3%
|
Net interest
income
|
|
($3.98)
|
|
$19.54
|
|
-120.4%
|
Non interest expenses
/income
|
|
($2.37)
|
|
($2.80)
|
|
-15.3%
|
Income before
tax
|
|
($6.35)
|
|
$16.74
|
|
-137.9%
|
Income tax
expense
|
|
$0.73
|
|
($3.02)
|
|
-124.1%
|
Net income
|
|
($5.62)
|
|
$13.72
|
|
-140.9%
|
Dividend - Series A
convertible preferred stock
|
|
($0.52)
|
|
($0.16)
|
|
221.4%
|
Net income
attributable to common shareholders
|
|
($6.14)
|
|
$13.56
|
|
-145.3%
|
EPS -
Basic
|
|
($0.37)
|
|
$0.71
|
|
-151.8%
|
EPS -
Diluted
|
|
($0.37)
|
|
$0.67
|
|
-154.3%
|
Interest and fee income
For the nine months ended September 30,
2017, total interest and fee income, which include interest
and fees on direct lending loans, financial advisory fees and
interest on deposits with banks, decreased by $7.75 million, or 28.8%, to $19.15 million from $26.90
million for the same period of last year. The decrease in
interest and fee income was mainly due to reduced interest rates
this year as a result of competitive pressure and the significant
decrease in monthly interest received during the third quarter on
certain supply chain financing loans related to certain customers
who faced financial difficulties. We are closely monitoring the
situation at those customers and expect further impact on our
business as additional loans become due over time based on
management's current assessment.
Interest expense
The Company borrows funds, which include short-term bank loans,
a secured loan and loans from cost investment investee, to fund its
direct lending business. For the nine months ended September 30, 2017, total interest expense
decreased by $0.13 million, or 3.4%,
to $3.72 million from $3.85 million for the same period of last year.
The decrease was mainly related to decrease in interest expense and
fees on the secured loan.
Provision for loan losses
For the nine months ended September 30,
2017, provision for loan losses was $19.41 million, compared to $3.51 million for the same period of last year.
The increase was mainly related to certain supply chain financing
loans as certain customers were facing financial difficulties. The
Company has accrued provision for loan losses of $26.23 million against gross loans receivables as
of September 30, 2017 for potential
loan losses.
Net interest income/ (loss)
After deducting for interest expense and provision for loan
losses, net interest loss was $3.98
million for the nine months ended September 30, 2017, compared to net interest
income of $19.54 million for the same
period of last year. The decrease was mainly due to a decrease in
total interest income and an increase in provision for loan
losses.
Non-interest expenses
Salaries and employee surcharge for the nine months ended
September 30, 2017 increased by
$0.05 million, or 5.5%, to
$0.84 million from $0.79 million for the same period of last year.
Business taxes and other taxes for the nine months ended
September 30, 2017 decreased by
$0.50 million, or 78.4%, to
$0.14 million from $0.64 million for the same period of last year.
Other operating expenses increased by $0.08
million, or 5.5%, to $1.48
million from $1.40 million for
the same period of last year. As a result, total non-interest
expenses for the nine months ended September
30, 2017 decreased by $0.37
million, or 13.4%, to $2.46
million from $2.83 million for
the same period of last year, which mainly due to the following
reasons: (1) new recruitment in 2017 has increased the total
employee expenses; (2) the transformation from business tax to
value-added tax in May 2016 has
reduced the business tax expenses; and (3) other operating expenses
increased after the Company became a U.S. listed company in
July 2016.
Income/ (loss) before income tax, net income/ (loss) and
EPS
For the nine months ended September 30,
2017, loss before income tax was $6.35 million, compared to income before income
tax of $16.74 million for the same
period of last year. Income tax benefit was $0.73 million for the nine months ended
September 30, 2017, compared to
income tax expense of $3.02 million
for the same period of last year.
For the nine months ended September 30,
2017, net loss was $5.62
million, compared to net income of $13.72 million for the same period of last year.
After deducting for dividends paid for the Series A Convertible
Redeemable Preferred Stock, net loss allocated to ordinary
shareholders was $6.13 million,
compared to net income allocated to ordinary shareholders of
$13.56 million for the same period of
last year.
Basic and diluted loss per share were $0.37 for the nine months ended September 30, 2017, compared to basic and diluted
earnings per share of $0.71 and
$0.67, respectively, for the same
period of last year.
Loan
Portfolio
|
|
|
|
For the Nine
Months Ended September 30,
|
|
|
2017
|
|
2016
|
|
|
No. of
loans
|
|
%
|
|
Loan amount
($M)
|
|
%
|
|
No. of
loans
|
|
%
|
|
Loan amount
($M)
|
|
%
|
Supply chain
financing
|
|
103
|
|
34.3%
|
|
90.57
|
|
50.9%
|
|
156
|
|
47.4%
|
|
137.68
|
|
56.2%
|
Commerce &
service
|
|
166
|
|
55.3%
|
|
62.20
|
|
34.9%
|
|
112
|
|
34.0%
|
|
67.79
|
|
27.7%
|
Manufacturing
|
|
6
|
|
2.0%
|
|
2.68
|
|
1.5%
|
|
16
|
|
4.9%
|
|
7.86
|
|
3.2%
|
Real
estate
|
|
8
|
|
2.7%
|
|
11.83
|
|
6.7%
|
|
10
|
|
3.0%
|
|
9.54
|
|
3.9%
|
Agriculture
|
|
5
|
|
1.7%
|
|
4.84
|
|
2.7%
|
|
18
|
|
5.5%
|
|
16.40
|
|
6.7%
|
Energy and
mining
|
|
6
|
|
2.0%
|
|
3.50
|
|
2.0%
|
|
3
|
|
0.9%
|
|
3.83
|
|
1.6%
|
Consumer
credit
|
|
2
|
|
0.7%
|
|
0.05
|
|
0.0%
|
|
10
|
|
3.1%
|
|
0.64
|
|
0.3%
|
Others
|
|
4
|
|
1.3%
|
|
2.33
|
|
1.3%
|
|
4
|
|
1.2%
|
|
1.20
|
|
0.4%
|
Total
|
|
300
|
|
100.0%
|
|
178.00
|
|
100.0%
|
|
329
|
|
100.0%
|
|
244.94
|
|
100.0%
|
As of September 30, 2017, the
Company's loans covered over seven industries, including supply
chain financing, commerce and service, agriculture, real estate,
manufacturing, energy and mining and consumer credit. The Company
issued 300 loans which aggregated to $178.00
million for the nine months ended September 30, 2017, compared to 329 loans which
aggregated to $244.94 million for the
same period last year. Supply chain financing was the largest
segment, accounting for 50.9% of total loan amount with 103 loans
issued for the nine months ended September
30, 2017. Commerce and service was the second largest
segment, accounting for 34.9% of total loan amount with 166 loans
issued for the nine months ended September
30, 2017.
Financial Condition
As of September 30, 2017, the
Company had cash and cash equivalents of $1.26 million, compared to $4.50 million at the end of 2016. Net loans
receivable was $151.69 million as of
September 30, 2017, compared to
$148.29 million as of December 31, 2016. Short-term bank loans, loans
from a cost investment investee and a secured loan were
$11.67 million, $15.03 million and $15.00
million, respectively, as of September 30, 2017, compared to $7.47 million, $14.40
million and $14.15 million,
respectively, as of December 31,
2016.
The capital liquidity of the Company was negatively influenced
by a decrease in cash inflows provided by operating activities. As
of September 30, 2017, $5.25 million short-term bank loans and
$3.76 million loans from a cost
investment investee were overdue. The Company is actively
negotiating with borrowers to extend these loans.
Management believes that it has developed a liquidity plan
that, if executed successfully, will provide sufficient liquidity
to meet the Company obligations for a reasonable period of time.
The Company is actively seeking other strategic investors with
experience in lending business. In order to meet the capital needs
for our continued operations, we continue to use our best effort to
improve our collection of loans receivable and interest receivable.
While management believes that the measures in the liquidity plan
will be adequate to satisfy its liquidity and cash flow
requirements for a reasonable period of time, there is no assurance
that the liquidity plan will be successfully implemented. Failure
to successfully implement the liquidity plan will have a material
adverse effect on the Company's business, results of operations and
financial position, and may materially adversely affect its ability
to continue as a going concern.
About China Lending Corporation
Founded in 2009, China Lending is a non-bank direct lending
corporation and provides services to micro, small and medium sized
enterprises, farmers, and individuals, who are currently
underserved by commercial banks in China. Headquartered in Urumqi, the capital of
Xinjiang Autonomous Region, with a registered capital of
$94.7 million as of December 31, 2016, China Lending is one of the
largest direct lending companies in the region in terms of
registered capital. For more information, please visit:
www.chinalending.com.
Forward-Looking Statements
This press release may include forward-looking statements
within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical facts, included in this press release
that address activities, events or developments that China Lending
expects or anticipates will or may occur in the future are
forward-looking statements and are identified with, but not limited
to, words such as "may," "believe" and "expect." These statements
are based on certain assumptions and analyses made by China Lending
in light of its experience and its perception of historical trends,
current conditions and expected future developments as well as
other factors it believes are appropriate in the circumstances.
Actual results may differ materially from those expressed herein
due to many factors such as, but not limited to, (1) the ability to
maintain the listing of the Company's securities on the NASDAQ
Capital Market; (2) the ability to recognize the anticipated
benefits of our recent business combination, which may be affected
by, among other things, closing proceeds, competition and the
ability of the business to grow and manage growth profitably; (3)
the outcome of any legal proceedings that may be instituted against
the Company; (4) changes in applicable laws or regulations; (5) the
possibility that the Company may be adversely affected by other
economic, business, and/or competitive factors; and (6) other risks
and uncertainties indicated from time to time in the proxy
statement filed by the Company in connection with the business
combination, including those under "Risk Factors" therein, and
other factors identified in the Company's prior and future filings
with the SEC, available at www.sec.gov.
These forward-looking statements are based on information
available as of the date of this press release and involve a number
of judgments, risks and uncertainties. Accordingly, forward-looking
statements should not be relied upon as representing our views as
of any subsequent date and the Company undertakes no obligation to
update any forward-looking statements contained herein to reflect
events or circumstances which arise after the date of this press
release, whether as a result of new information, future events or
otherwise, except as may be required under applicable securities
law.
For investors and media inquiries please contact:
At the Company:
Katrina Wu
Email: wuxiaoqing@chinalending.com
Phone: +86-991-316-9617
Investor Relations:
Tony Tian, CFA
Weitian Group LLC
Email: tony.tian@weitian-ir.com
Phone: +1-732-910-9692
CHINA LENDING
CORPORATION
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
As
of
|
|
|
|
September
30,
2017
|
|
|
December
31,
2016
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,255,551
|
|
|
$
|
4,496,588
|
|
Loans receivable -
third parties, net
|
|
|
148,446,673
|
|
|
|
148,293,427
|
|
Loans receivable -
related parties, net
|
|
|
3,245,729
|
|
|
|
—
|
|
Interest and fee
receivable, net
|
|
|
3,281,942
|
|
|
|
1,075,410
|
|
Cost method
investment
|
|
|
3,756,630
|
|
|
|
3,599,831
|
|
Property and
equipment, net
|
|
|
65,961
|
|
|
|
88,463
|
|
Intangible asset,
net
|
|
|
81,216
|
|
|
|
55,480
|
|
Deferred tax
assets
|
|
|
2,668,950
|
|
|
|
861,607
|
|
Other
assets
|
|
|
520,503
|
|
|
|
485,765
|
|
Total
Assets
|
|
$
|
163,323,155
|
|
|
$
|
158,956,571
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
$
|
11,666,105
|
|
|
$
|
7,472,530
|
|
Loan from a related
party, a cost investment
investee
|
|
|
15,026,522
|
|
|
|
14,399,324
|
|
Secured
loan
|
|
|
14,996,469
|
|
|
|
14,154,968
|
|
Dividends
payable
|
|
|
480,000
|
|
|
|
4,108,721
|
|
Taxes
payable
|
|
|
69,650
|
|
|
|
1,125,379
|
|
Convertible
promissory note payable
|
|
|
—
|
|
|
|
650,000
|
|
Other
liabilities
|
|
|
5,541,678
|
|
|
|
3,876,502
|
|
Total
liabilities
|
|
$
|
47,780,424
|
|
|
$
|
45,787,424
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
Convertible
Redeemable Class A Preferred
Shares
|
|
|
|
|
|
|
|
|
Preferred Shares, no
par value, unlimited shares
authorized; 715,000 shares issued and
outstanding as of September 30, 2017 and
December 31, 2016.
|
|
|
8,794,527
|
|
|
|
8,913,327
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
Ordinary Shares, no
par value; unlimited shares
authorized; 23,758,817 and 22,898,864 shares
issued and outstanding as of September 30,
2017 and December 31, 2016, respectively
|
|
|
—
|
|
|
|
—
|
|
Additional paid-in
capital
|
|
|
96,977,528
|
|
|
|
91,644,559
|
|
Statutory
reserves
|
|
|
6,536,238
|
|
|
|
6,536,238
|
|
Retained
earnings
|
|
|
7,615,058
|
|
|
|
15,691,462
|
|
Accumulated other
comprehensive loss
|
|
|
(4,380,620)
|
|
|
|
(9,616,439)
|
|
Total
Shareholders' Equity
|
|
|
106,748,204
|
|
|
|
104,255,820
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
163,323,155
|
|
|
$
|
158,956,571
|
|
CHINA LENDING
CORPORATION
|
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)
|
|
|
For the nine
months ended
|
|
For the three
months ended
|
|
September 30,
2017
|
|
September 30,
2016
|
|
September 30,
2017
|
|
September
30,
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
Interest and fee
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans – third parties
|
$
|
18,898,419
|
|
|
$
|
26,767,437
|
|
|
$
|
2,804,865
|
|
|
$
|
8,994,392
|
|
Interest and fees on
loans – related parties
|
|
249,790
|
|
|
|
133,891
|
|
|
|
112,363
|
|
|
|
21,666
|
|
Interest on deposits
with banks
|
|
904
|
|
|
|
3,585
|
|
|
|
96
|
|
|
|
748
|
|
Total interest and
fee income
|
|
19,149,113
|
|
|
|
26,904,913
|
|
|
|
2,917,324
|
|
|
|
9,016,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on
short-term bank loans
|
|
(1,164,582)
|
|
|
|
(500,301)
|
|
|
|
(395,079)
|
|
|
|
(211,124)
|
|
Interest expense and
fees on secured loan
|
|
(1,223,176)
|
|
|
|
(1,979478)
|
|
|
|
(415,947)
|
|
|
|
(514,738)
|
|
Interest expense on
loans from a related
party, a cost investment investee
|
|
(1,337,088)
|
|
|
|
(1,375,684)
|
|
|
|
(454,670)
|
|
|
|
(442,445)
|
|
Total interest
expense
|
|
(3,724,846)
|
|
|
|
(3,855,463)
|
|
|
|
(1,265,696)
|
|
|
|
(1,168,307)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
|
(19,408,306)
|
|
|
|
(3,513,946)
|
|
|
|
(17,347,900)
|
|
|
|
(1,856,823)
|
|
Net Interest
Income/ (Loss)
|
|
(3,984,039)
|
|
|
|
19,535,504
|
|
|
|
(15,696,272)
|
|
|
|
5,991,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
income
|
|
90,258
|
|
|
|
37,590
|
|
|
|
74,946
|
|
|
|
37,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
surcharge
|
|
(835,757)
|
|
|
|
(792,130)
|
|
|
|
(195,014)
|
|
|
|
(318,631)
|
|
Business taxes and
other taxes
|
|
(137,771)
|
|
|
|
(638,441)
|
|
|
|
(23,908)
|
|
|
|
(64,520)
|
|
Other operating
expenses
|
|
(1,479,353)
|
|
|
|
(1,402,567)
|
|
|
|
(394,106)
|
|
|
|
(946,374)
|
|
Total non-interest
expenses
|
|
(2,452,881)
|
|
|
|
(2,833,138)
|
|
|
|
(613,028)
|
|
|
|
(1,329,525)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/ (Loss)
Before Income Tax
|
|
(6,346,662)
|
|
|
|
16,739,956
|
|
|
|
(16,234,354)
|
|
|
|
4,699,646
|
|
Income tax benefit/
(expense)
|
|
729,307
|
|
|
|
(3,021,516)
|
|
|
|
2,400,528
|
|
|
|
(831,755)
|
|
Net Income/
(Loss)
|
|
(5,617,355)
|
|
|
|
13,718,440
|
|
|
|
(13,833,826)
|
|
|
|
3,867,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend –
Convertible Redeemable Class A
Preferred Stock
|
|
(514,800)
|
|
|
|
(161,727)
|
|
|
|
(171,600)
|
|
|
|
(161,727)
|
|
Net income/ (loss)
allocated to ordinary
shareholders
|
|
(6,132,155)
|
|
|
|
13,556,713
|
|
|
|
(14,005,426)
|
|
|
|
3,706,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
5,235,819
|
|
|
|
(2,932,586)
|
|
|
|
2,287,681
|
|
|
|
(389,459)
|
|
Comprehensive
Income/ (Loss)
|
$
|
(381,536)
|
|
|
$
|
10,785,854
|
|
|
$
|
(11,546,145)
|
|
|
$
|
3,478,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares
outstanding – basic
|
|
16,760,185
|
|
|
|
19,207,348
|
|
|
|
18,422,783
|
|
|
|
15,938,064
|
|
Weighted-average
common shares
outstanding – diluted
|
|
16,760,185
|
|
|
|
20,109,456
|
|
|
|
18,422,783
|
|
|
|
16,653,064
|
|
Earnings/ (loss)
per share to ordinary
shareholders – Basic
|
$
|
(0.37)
|
|
|
$
|
0.71
|
|
|
$
|
(0.76)
|
|
|
$
|
0.23
|
|
Earnings/ (loss)
per share to ordinary
shareholders – Diluted
|
$
|
(0.37)
|
|
|
$
|
0.67
|
|
|
$
|
(0.76)
|
|
|
$
|
0.22
|
|
View original
content:http://www.prnewswire.com/news-releases/china-lending-corporation-reports-unaudited-financial-results-for-the-three-and-nine-months-ended-september-30-2017-300554327.html
SOURCE China Lending Corporation