2012 Fourth Quarter Financial Summary
- Net revenues were
$5.2 million compared with$10.8 million for the fourth quarter of 2011 due to the Company's strategic transition amid a challenging business environment; - Gross profit was
$3.4 million compared with$8.7 million for the fourth quarter of 2011; - Net loss attributable to
China Finance Online was$4.9 million .
Fiscal Year Ended
- Net revenues were
$29.6 million compared with$53.0 million for the fiscal year of 2011; - Gross profit was
$21.5 million compared with$44.2 million for the fiscal year of 2011; - Net loss attributable to
China Finance Online was$11.9 million .
2012 Fourth Quarter Results
Net revenues for the fourth quarter of 2012 were
For the fourth quarter of 2012, gross profit was
General and administrative ("G&A") expenses for the fourth quarter of 2012 were
Sales and marketing expenses for the fourth quarter of 2012 were
Product development expenses for the fourth quarter of 2012 were
Total operating expenses for the fourth quarter of 2012 were
Net loss attributable to
As of
The combined current and non-current deferred revenues at the end of the fourth quarter of 2012, which represented prepaid subscription fees made from individual customers that have not been rendered as of
Fiscal Year Ended
Total net revenues for the fiscal year ended
By
In March, 2013, in order to enhance our return on cash, the Company's Board of Directors approved and authorized the Company's participation in a real estate project in
On
"Amid a sluggish domestic stock market, we continue to proceed with our strategic transition, diversify our product offerings, invest in core internet capabilities and streamline operations to position ourselves for the next stage of growth. We have rebranded our oversea financial platform to unify brand identity and strengthen the recognition of our flagship portal site - www.stockstar.com. We continue to proactively pursue diversified business development and resource consolidation. On the internet platform front, we began real-time trading broadcast on jrj.com and stockstar.com to allow investors to interact directly with professional investment advisors in real time. We also continue to organize and host key industry events to build relationships with institutional partners and enhance our brand loyalty among end users. Operationally, we remain confident in the long-term prospect of our business and anticipate our financial position to improve further in 2013," commented Mr.
Conference Call Information
The Company will host a conference call and a simultaneous webcast, on
A replay of the conference call will be available shortly after the conclusion of the event through
The conference call will be available as a live webcast and replay at: http://www.media-server.com/m/p/4n8cp5o6
About
Safe Harbor Statement
This press release contains forward-looking statements. These statements 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. 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 product upgrade and strategic transformation initiative;
- our plans to streamline our corporate structure;
- our investment in the real estate project in
Langfang City of Hebei Province ; - our prospect on stabilization in cash attrition and improvement of our financial position;
- our ability to timely file annual report on Form 20-F for the year ending
December 31, 2012 ; and - the market prospect of the business of 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 risks and uncertainties include, among others, the following:
- 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 a poor performing Chinese stock market,
Hong Kong stock market and global financial market on our future performance; - the unpredictability of our strategic transformation and upgrade;
- 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 competition we are facing in the new business of securities investment advisory and wealth management;
- the unpredictability of our investment in the real estate project in
Langfang City of Hebei Province ;; - 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
Contact:
+86-10-5832-5288
ir@jrj.com
Grayling
646-284-9474
shiwei.yin@grayling.com
Tables follow
|
China Finance Online Co. Limited |
||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||
|
(In thousands of U.S. dollars) |
||
|
Dec. 31, 2012 |
Dec. 31, 2011 |
|
|
Assets |
||
|
Current assets: |
||
|
Cash and cash equivalents |
40,906 |
64,641 |
|
Restricted cash |
28,874 |
29,861 |
|
Trust bank balances held on behalf of customers |
8,812 |
18,664 |
|
Accounts receivable, net - others |
4,971 |
1,468 |
|
Accounts receivable, net - Margin clients |
15,054 |
12,889 |
|
Loan receivable |
1,206 |
9,566 |
|
Short-term investments |
2,640 |
10,701 |
|
Prepaid expenses and other current assets |
2,780 |
3,577 |
|
Advances to employees |
1,056 |
- |
|
Deferred tax assets, current |
392 |
634 |
|
Total current assets |
106,691 |
152,001 |
|
Cost method investment |
802 |
- |
|
Property and equipment, net |
4,914 |
6,530 |
|
Acquired intangible assets, net |
4,676 |
- |
|
Rental deposits |
752 |
738 |
|
Goodwill |
3,049 |
- |
|
Deferred tax assets, non-current |
201 |
484 |
|
Other deposits |
287 |
224 |
|
Total assets |
121,372 |
159,977 |
|
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 $3,793 and $7,037 as of December 31,2012 and December 31,2011, respectively) |
7,551 |
17,287 |
|
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 $2,731 and $3,127 as of December 31,2012 and December 31, 2011, respectively) |
5,391 |
6,458 |
|
Short-term loan(including short-term loan of the consolidated variable interest entities without recourse to China Finance Online Co. Limited nil and nil as of December 31,2012 and December 31, 2011, respectively) |
13,546 |
19,171 |
|
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 nil and nil as of December 31,2012 and December 31, 2011, respectively) |
8,812 |
18,664 |
|
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $141 and $115 as of December 31, 2012 and December 31, 2011, respectively) |
805 |
144 |
|
Deferred tax liability, current(including deferred tax liability, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $140 and $3 as of December 31, 2012 and December 31, 2011, respectively) |
140 |
45 |
|
Income taxes payable (including income taxes payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $8 and $25 as of December 31,2012 and December 31,2011, respectively) |
88 |
135 |
|
Total current liabilities |
36,333 |
61,904 |
|
Deferred tax liability, non-current (including deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $1,169 and nil as of December 31, 2012 and December 31, 2011, respectively) |
1,169 |
- |
|
Deferred revenue, non-current (including deferred revenue, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $1,062 and $3,033 as of December 31,2012 and December 31,2011, respectively) |
3,155 |
7,237 |
|
Total liabilities |
40,657 |
69,141 |
|
Noncontrolling interests |
751 |
(105) |
|
Total China Finance Online Co. Limited Shareholders' equity |
79,964 |
90,941 |
|
Total liabilities and equity |
121,372 |
159,977 |
|
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 |
Year ended Dec. 31 |
||||
|
Dec. 31, 2012 |
Dec. 31, 2011 |
Sep. 30, 2012 |
2012 |
2011 |
|
|
Net revenues |
5,162 |
10,760 |
7,228 |
29,599 |
53,008 |
|
Cost of revenues |
(1,779) |
(2,067) |
(1,771) |
(8,090) |
(8,771) |
|
Gross profit |
3,383 |
8,693 |
5,457 |
21,509 |
44,237 |
|
Operating expenses |
|||||
|
General and administrative(includes share-based compensation expenses of $196, $216, $198, $765 and $1,326, respectively) |
(3,086) |
(2,747) |
(2,933) |
(11,387) |
(11,228) |
|
Sales and marketing (includes share-based compensation expenses of $6, $11, $6,$26 and $114, respectively) |
(3,179) |
(4,453) |
(3,063) |
(13,072) |
(21,338) |
|
Product development (includes share-based compensation expenses of $3, $26, $3, $12 and $99, respectively) |
(2,202) |
(3,416) |
(2,633) |
(10,736) |
(13,314) |
|
Loss from impairment of intangible assets |
- |
(3,437) |
- |
- |
(4,078) |
|
Loss from impairment of goodwill |
- |
(11,796) |
- |
- |
(13,463) |
|
Total operating expenses |
(8,467) |
(25,849) |
(8,629) |
(35,195) |
(63,421) |
|
Government subsidies |
2 |
14 |
54 |
75 |
265 |
|
Loss from operations |
(5,082) |
(17,142) |
(3,118) |
(13,611) |
(18,919) |
|
Interest income |
516 |
740 |
687 |
3,176 |
2,745 |
|
Interest expense |
(87) |
(58) |
(100) |
(517) |
(247) |
|
Investment gain, net |
25 |
178 |
47 |
434 |
1,032 |
|
Other (loss), net |
(651) |
(76) |
(41) |
(634) |
(7) |
|
Exchange gain (loss), net |
248 |
246 |
(69) |
73 |
1,350 |
|
Loss from impairment of cost method investment |
- |
- |
- |
- |
(1,480) |
|
Loss before income tax benefits (expenses) |
(5,031) |
(16,112) |
(2,594) |
(11,079) |
(15,526) |
|
Income tax benefits (expenses) |
77 |
708 |
(629) |
(884) |
(3,938) |
|
Net (loss) |
(4,954) |
(15,404) |
(3,223) |
(11,963) |
(19,464) |
|
Less: Net income (loss) attributable to the noncontrolling interest |
(88) |
2 |
(65) |
(104) |
(137) |
|
Net (loss) attributable to China Finance Online Co. Limited |
(4,866) |
(15,406) |
(3,158) |
(11,859) |
(19,327) |
|
Net (loss) |
(4,954) |
(15,404) |
(3,223) |
(11,963) |
(19,464) |
|
Changes in foreign currency translation adjustment |
534 |
408 |
(263) |
131 |
2,928 |
|
Net unrealized gain (loss) on available-for-sale securities, net of tax effects of nil, ($6), nil,$6 and ($6), respectively |
- |
(32) |
- |
32 |
(32) |
|
Other comprehensive income (loss), net of tax |
534 |
376 |
(263) |
163 |
2,896 |
|
Comprehensive (loss) |
(4,420) |
(15,028) |
(3,486) |
(11,800) |
(16,568) |
|
Less: comprehensive income (loss) attributable to noncontrolling interest |
(88) |
2 |
(65) |
(104) |
(137) |
|
Comprehensive (loss) attributable to China Finance Online Co. Limited |
(4,332) |
(15,030) |
(3,421) |
(11,696) |
(16,431) |
|
Net (loss)per share attributable to China Finance Online Co. Limited |
|||||
|
Basic |
(0.04) |
(0.14) |
(0.03) |
(0.11) |
(0.18) |
|
Diluted |
(0.04) |
(0.14) |
(0.03) |
(0.11) |
(0.18) |
|
Loss per ADS |
|||||
|
Basic |
(0.22) |
(0.71) |
(0.14) |
(0.54) |
(0.89) |
|
Diluted |
(0.22) |
(0.71) |
(0.14) |
(0.54) |
(0.89) |
|
Weighted average ordinary shares |
|||||
|
Basic |
108,986,666 |
108,976,122 |
108,982,101 |
108,983,249 |
108,961,642 |
|
Diluted |
108,986,666 |
108,976,122 |
108,982,101 |
108,983,249 |
108,961,642 |
|
Weighted average ADSs |
|||||
|
Basic |
21,797,333 |
21,795,224 |
21,796,420 |
21,796,650 |
21,792,328 |
|
Diluted |
21,797,333 |
21,795,224 |
21,796,420 |
21,796,650 |
21,792,328 |
SOURCE