First Quarter 2020 Financial Highlights and
- Net revenues were
$9.8 million , compared with$9.9 million during the first quarter of 2019 and$8.7 million during the fourth quarter of 2019.
- Revenues from the financial information and advisory business were
$3.5 million , compared with$3.2 million during the first quarter of 2019 and$2.2 million in the fourth quarter of 2019. - The bottom line losses continued to narrow. Net loss attributable to
China Finance Online was$1.9 million , compared with a net loss of$2.8 million in the first quarter of 2019 and a net loss of$3.4 million in the fourth quarter of 2019.
- The moderate strategy of Lingxi Robo-Advisor ("Lingxi"), with a return of 2.8% and a drawdown rate of 0.03% in the first quarter, outperformed a loss of 10.35% and a drawdown rate of 14.62% in the Shanghai Composite Index.
China Finance Online signed a partnership agreement withDow Jones to join forces to serve the large financial information and data market inChina .
Mr.
"Our ability to navigate through the challenging first quarter amid the downturn of the
"The growth of wealth management business also benefited from the fintech wealth management empowerment system that we've developed over the years. Now, we are introducing this system to institutions. Along with the secular trend that drives financial institutions' emphasis on wealth management, our investor education services, investment advisory services and asset allocation services are well received by more and more institutions. Our recent partnership with
"In this new environment shaped by the pandemic, we continued to bring innovations to our operations. As a tier-one financial news aggregator, we enhanced our production capabilities to introduce a series of high-quality content such as webinars where we invited renowned domestic and international economists and chief strategists to share their views on the economy as well as the emerging growth opportunities in the complicated post-pandemic world. We also continued to explore different media and diversified channels to deliver our enriched content to our audience. For example, our account on the popular short-form video social media, DouYin, has already attracted nearly one million viewers. On new services, we introduced enterprise value added services in the recent year. Through both online and offline channels, we provide professional communication services to companies listed on domestic or international market. This new service has been retaining its growth momentum even during the turbulent first quarter."
"Looking into the future, we will continue to strengthen our fintech capability through optimization and upgrades of our services and products to empower the wealth management sector in
First Quarter 2020 Financial Results
Net revenues were
Revenues from financial services were
Revenues from the financial information and advisory business were
Revenues from advertising business were
Revenues from enterprise value-added services were
Gross profit was
General and administrative expenses were
Sales and marketing expenses were
Research and development expenses were
Total operating expenses were
Loss from operations was
Net loss attributable to
Fully diluted loss per American Depository Shares ("ADS") attributable to
Recent Developments
- Lingxi Robo-Advisor recorded strong performance in first quarter of 2020
According to our proprietary asset allocation system, our Robo-Advisor product, Lingxi, provides Chinese retail investors with a wide array of investment combinations and personalized global asset allocations through Chinese domestic mutual funds. Since its inception, Lingxi established a solid track record of balancing performance and risk management. During the first quarter of 2020, the Chinese stock market experienced an unprecedented loss due to the COVID-19 pandemic. However, Lingxi produced an average return of 0.2%, once again outclassing most peer Robo-Advisor products in the marketplace and significantly outperforming the Shanghai Composite Index that suffered a loss of 10.4% during the same period. The best strategy of Lingxi posted a return of 2.8% in the first quarter of 2020. All strategies of Lingxi managed to control the expected annualized fluctuation under 12.6% while the expected annualized volatility of Shanghai Composite Index reached 27.8% during the same period.
- China Finance Online Signs Partnership Agreement with
Dow Jones
In July, the Company announced it has signed a partnership agreement with global news and data business,
Conference Call Information
The management will host a conference call on
US: |
1-844-760-0770 |
|
800-906-613 |
|
800-616-2392 |
Mainland |
800-870-0532/400-624-0407 |
Conference ID: |
8297327 |
Please dial in 10 minutes before the call is scheduled to begin and provide the conference ID to join the call.
A recording of the call will be available on
In addition, a live and archived webcast of the conference call will be available at https://edge.media-server.com/mmc/p/yg4sir25.
About
Safe Harbor Statement
This press release contains forward-looking statements which constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the
- Liquidity and sources of funding, including our ability to continue operating as a going concern.
- our prospect and our ability to attract new users;
- our prospect on building a comprehensive wealth management ecosystem through providing a fully-integrated online communication and securities-trading platform;
- our prospect on stabilization in cash attrition and improvement of our financial position;
- our initiatives to address customers' demand for intuitive online investment platforms and alternative investment opportunities; and
- the market prospect of the business of securities-trading, 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 risk factors and uncertainties include, amongst others, substantial doubt about ability to continue as a going concern, the outbreak of COVID-19 or other health epidemics in
For more information, please contact:
+86-10-8336-3100
ir@jrj.com
(212) 521-4050
kevin@awakenlab.com
-- Tables Follow –
|
||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||
(In thousands of |
||||||||||
|
2019 |
|||||||||
Assets |
||||||||||
Current assets: |
||||||||||
Cash and cash equivalents |
9,767 |
9,600 |
||||||||
Prepaid expenses and other current assets |
3,358 |
2,413 |
||||||||
Trust bank balances held on behalf of customers |
36,867 |
36,987 |
||||||||
Accounts receivable - margin clients |
12,378 |
13,452 |
||||||||
Accounts receivable - others |
14,329 |
12,382 |
||||||||
Short-term investments |
— |
1,147 |
||||||||
Total current assets |
76,699 |
75,981 |
||||||||
Property and equipment, net |
3,929 |
4,272 |
||||||||
Acquired intangible assets, net |
75 |
75 |
||||||||
Equity investments without readily determinable fair value |
1,581 |
1,605 |
||||||||
Equity method investment, net |
754 |
767 |
||||||||
Right-of-use assets |
3,368 |
3,988 |
||||||||
Rental deposits |
748 |
770 |
||||||||
|
109 |
108 |
||||||||
Guarantee fund deposits |
219 |
218 |
||||||||
Deferred tax assets |
947 |
1,381 |
||||||||
Total assets |
88,429 |
89,165 |
||||||||
Liabilities and equity |
||||||||||
Current liabilities: |
||||||||||
Deferred revenue, current (including deferred revenue, current of the consolidated |
9,840 |
8,855 |
||||||||
Accrued expenses and other current liabilities (including accrued expenses and other |
17,964 |
17,420 |
||||||||
Amount due to customers for trust bank balances held on behalf of customers |
36,867 |
36,987 |
||||||||
Accounts payable (including accounts payable of the consolidated variable interest |
7,039 |
6,741 |
||||||||
Lease liabilities, current (including lease liabilities, current of the consolidated variable |
2,010 |
2,243 |
||||||||
Income taxes payable (including income taxes payable of the consolidated variable |
(72) |
177 |
||||||||
Total current liabilities |
73,648 |
72,423 |
||||||||
Deferred revenue, non-current (including deferred revenue, non-current of the |
124 |
151 |
||||||||
Deferred tax liabilities (including deferred tax liabilities of the consolidated variable |
14 |
15 |
||||||||
Lease liabilities, non-current (including lease liabilities, non-current of the consolidated |
1,096 |
1,448 |
||||||||
Total liabilities |
74,882 |
74,037 |
||||||||
Total |
23,629 |
25,156 |
||||||||
Noncontrolling interests |
(10,082) |
(10,028) |
||||||||
Total liabilities and equity |
88,429 |
89,165 |
|
||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||
(in thousands of |
||||||||||||
Three months ended |
||||||||||||
2020 |
2019 |
Dec.31, 2019 |
||||||||||
Net revenues |
9,835 |
9,855 |
8,686 |
|||||||||
Cost of revenues |
(3,923) |
(3,496) |
(3,148) |
|||||||||
Gross profit |
5,912 |
6,359 |
5,538 |
|||||||||
Operating expenses |
||||||||||||
General and administrative (including share-based compensation of |
(2,226) |
(2,688) |
(4,698) |
|||||||||
Product development (including share-based compensation of |
(1,985) |
(2,576) |
(1,821) |
|||||||||
Sales and marketing (including share-based compensation of |
(3,336) |
(3,590) |
(3,119) |
|||||||||
Total operating expenses |
(7,547) |
(8,854) |
(9,638) |
|||||||||
Loss from operations |
(1,635) |
(2,495) |
(4,100) |
|||||||||
Interest income |
5 |
9 |
9 |
|||||||||
Exchange gain (loss), net |
(32) |
(101) |
(143) |
|||||||||
Loss on the interest sold and retained noncontrolling investment |
— |
(298) |
— |
|||||||||
Income (loss) from equity method investment |
(1) |
(2) |
3 |
|||||||||
Other income (expense), net |
66 |
4 |
(14) |
|||||||||
Loss before income tax expenses |
(1,597) |
(2,883) |
(4,245) |
|||||||||
Income tax expense |
(419) |
(501) |
357 |
|||||||||
Net loss |
(2,016) |
(3,384) |
(3,888) |
|||||||||
Less: Net loss attributable to the |
(96) |
(602) |
(480) |
|||||||||
Net loss attributable to China Finance |
(1,920) |
(2,782) |
(3,408) |
|||||||||
Other comprehensive income (loss), net of tax: |
||||||||||||
Changes in foreign currency translation adjustment |
166 |
14 |
245 |
|||||||||
Net unrealized gain (loss) from short-term investments available-for-sale |
1 |
4 |
— |
|||||||||
Less: reclassification adjustment for net (gain) loss included in net income |
(1) |
(4) |
— |
|||||||||
Other comprehensive income (loss), net of tax |
166 |
14 |
245 |
|||||||||
Comprehensive loss |
(1,850) |
(3,370) |
(3,643) |
|||||||||
Less: comprehensive loss attributable to noncontrolling interest |
(96) |
(602) |
(480) |
|||||||||
Comprehensive income (loss) attributable to China Finance |
(1,754) |
(2,768) |
(3,163) |
|||||||||
Net income (loss) per share attributable to China Finance |
||||||||||||
Basic and Diluted |
(0.02) |
(0.02) |
(0.03) |
|||||||||
Net income (loss) per ADS attributable to China Finance |
||||||||||||
Basic and Diluted |
(0.83) |
(1.22) |
(1.53) |
|||||||||
Weighted average ordinary shares |
||||||||||||
Basic and Diluted |
116,339,234 |
113,920,617 |
111,060,781 |
|||||||||
Weighted average ADSs |
||||||||||||
Basic and Diluted |
2,326,785 |
2,278,412 |
2,221,216 |
View original content:http://www.prnewswire.com/news-releases/china-finance-online-reports-2020-first-quarter-unaudited-financial-results-301099382.html
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