2013 First Quarter Financial Summary
- Net revenues were
$5.5 million compared with$9.1 million for the first quarter of 2012 and$5.2 million for the fourth quarter of 2012 due to the Company's strategic transition amid a challenging business environment; - Gross profit was
$3.6 million compared with$7.1 million for the first quarter of 2012; - Net loss attributable to
China Finance Online was$4.3 million .
2013 First Quarter Results
Net revenues for the first quarter of 2013 were
Gross profit was
General and administrative ("G&A") expenses for the first quarter of 2013 were
Sales and marketing expenses for the first quarter of 2013 were
Product development expenses for the first quarter of 2013 were
Total operating expenses for the first quarter of 2013 were
Net loss attributable to
As of
The combined current and non-current deferred revenues at the end of the first quarter of 2013, which mainly represented prepaid subscription fees from individual customers that have not been rendered as of
"We continue to believe that internet will play a huge role in
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/t4p5b6ef
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 expansion into the internet-based financial services;
- 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 efforts in expanding the market coverage of international equity and futures trading services;
- our initiatives to address customers' demand for alternative investment opportunities; 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 ; - the market prospect and competition in other business areas that we have expanded or ventured into futures brokerage business;• 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
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China Finance Online Co. Limited |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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|
(In thousands of U.S. dollars) |
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|
Mar. 31, 2013 |
Dec. 31, 2012 |
|
|
Assets |
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|
Current assets: |
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|
Cash and cash equivalents |
36,115 |
40,906 |
|
Restricted cash |
14,514 |
28,874 |
|
Trust bank balances held on behalf of customers |
7,252 |
8,812 |
|
Accounts receivable, net - others |
8,521 |
4,971 |
|
Accounts receivable, net - Margin clients |
2,539 |
15,054 |
|
Loan receivable |
873 |
1,206 |
|
Short-term investments |
1,023 |
2,640 |
|
Prepaid expenses and other current assets |
3,537 |
2,780 |
|
Advances to employees |
80 |
1,056 |
|
Deferred tax assets, current |
385 |
392 |
|
Total current assets |
74,839 |
106,691 |
|
Long-term investments, net |
22,455 |
802 |
|
Property and equipment, net |
4,340 |
4,914 |
|
Acquired intangible assets, net |
4,731 |
4,676 |
|
Rental deposits |
753 |
752 |
|
Goodwill |
3,057 |
3,049 |
|
Deferred tax assets, non-current |
212 |
201 |
|
Other deposits |
462 |
287 |
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Total assets |
110,849 |
121,372 |
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Liabilities and equity |
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Current liabilities: |
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Deferred revenue, current (including deferred revenue, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $3,694 and $3,793 as of March 31,2013 and December 31,2012, respectively) |
6,666 |
7,551 |
|
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 $2,166 and $2,731 as of March 31,2013 and December 31, 2012, respectively) |
4,553 |
5,391 |
|
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 March 31,2013 and December 31, 2012, respectively) |
6,441 |
13,546 |
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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 March 31,2013 and December 31, 2012, respectively) |
7,252 |
8,812 |
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Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $135 and $141 as of March 31, 2013 and December 31, 2012, respectively) |
5,128 |
805 |
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Deferred tax liability, current(including deferred tax liability, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $113 and $140 as of March 31, 2013 and December 31, 2012, respectively) |
113 |
140 |
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Income taxes payable (including income taxes payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited nil and $8 as of March 31,2013 and December 31,2012, respectively) |
567 |
88 |
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Total current liabilities |
30,720 |
36,333 |
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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 $1,151 and $1,169 as of March 31, 2013 and December 31, 2012, respectively) |
1,151 |
1,169 |
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Deferred revenue, non-current (including deferred revenue, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $877 and $1,062 as of March 31,2013 and December 31,2012, respectively) |
2,673 |
3,155 |
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Total liabilities |
34,544 |
40,657 |
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Noncontrolling interests |
443 |
751 |
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Total China Finance Online Co. Limited Shareholders' equity |
75,862 |
79,964 |
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Total liabilities and equity |
110,849 |
121,372 |
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China Finance Online Co. Limited |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
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(in thousands of U.S. dollars, except share and ADS related data) |
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Three months ended |
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Mar. 31, 2013 |
Mar. 31, 2012 |
Dec. 31, 2012 |
|
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Net revenues |
5,504 |
9,109 |
5,162 |
|
Cost of revenues |
(1,867) |
(1,988) |
(1,779) |
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Gross profit |
3,637 |
7,121 |
3,383 |
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Operating expenses |
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|
General and administrative(includes share-based compensation expenses of $177, $174 and $196, respectively) |
(2,898) |
(2,766) |
(3,086) |
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Sales and marketing (includes share-based compensation expenses of nil, $8 and $6, respectively) |
(3,121) |
(3,549) |
(3,179) |
|
Product development (includes share-based compensation expenses of nil, $3 and $3, respectively) |
(2,210) |
(3,205) |
(2,202) |
|
Total operating expenses |
(8,229) |
(9,520) |
(8,467) |
|
Government subsidies |
- |
19 |
2 |
|
Loss from operations |
(4,592) |
(2,380) |
(5,082) |
|
Interest income |
401 |
1,088 |
516 |
|
Interest expense |
(37) |
(124) |
(87) |
|
Investment gain, net |
119 |
178 |
25 |
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Other income (loss), net |
(129) |
79 |
(651) |
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Exchange gain, net |
59 |
25 |
248 |
|
Loss before income tax benefits (expenses) |
(4,179) |
(1,134) |
(5,031) |
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Income tax benefits (expenses) |
(468) |
(56) |
77 |
|
Net loss |
(4,647) |
(1,190) |
(4,954) |
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Less: Net income (loss) attributable to the noncontrolling interest |
(331) |
63 |
(88) |
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Net loss attributable to China Finance Online Co. Limited |
(4,316) |
(1,253) |
(4,866) |
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Net loss |
(4,647) |
(1,190) |
(4,954) |
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Changes in foreign currency translation adjustment |
57 |
60 |
534 |
|
Net unrealized loss on available-for-sale securities, net of tax effects of nil, ($3）and nil, respectively |
- |
(15) |
- |
|
Other comprehensive income, net of tax |
57 |
45 |
534 |
|
Comprehensive loss |
(4,590) |
(1,145) |
(4,420) |
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Less: comprehensive income (loss) attributable to noncontrolling interest |
(331) |
63 |
(88) |
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Comprehensive loss attributable to China Finance Online Co. Limited |
(4,259) |
(1,208) |
(4,332) |
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Net loss per share attributable to China Finance Online Co. Limited |
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|
Basic |
(0.04) |
(0.01) |
(0.04) |
|
Diluted |
(0.04) |
(0.01) |
(0.04) |
|
Income loss per ADS |
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|
Basic |
(0.20) |
(0.06) |
(0.22) |
|
Diluted |
(0.20) |
(0.06) |
(0.22) |
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Weighted average ordinary shares |
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|
Basic |
109,004,768 |
108,982,101 |
108,986,666 |
|
Diluted |
109,004,768 |
108,982,101 |
108,986,666 |
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Weighted average ADSs |
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|
Basic |
21,800,954 |
21,796,420 |
21,797,333 |
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Diluted |
21,800,954 |
21,796,420 |
21,797,333 |
SOURCE