Second Quarter 2020 Financial Highlights and
- The bottom line losses continued to narrow.
- Net loss attributable to
China Finance Online was$1.5 million , compared with a net loss of$3.0 million in the second quarter of 2019 and a net loss of$1.9 million in the first quarter of 2020. - Net revenues grew 9.2% year-over-year to
$9.7 million . - Revenues from the financial information and advisory business, accounted for 47.2% total revenue in the second quarter of 2020, were up 60.7% year-over-year to
$4.6 million , powered by 125.4% growth in investment advisory services. - Due to the growth of subscription services from individual customers, gross margin increased to 63.3% from 63.1% in the second quarter of 2019 and 60.1% in the first quarter of 2020.
- The aggressive strategy of Lingxi Robo-Advisor ("Lingxi"), with a return of 11.0% and a drawdown rate of 1.4% in the second quarter, outperformed a return of 10.0% and a drawdown rate of 2.9% in the Shanghai Composite Index.
First Six Months of 2020 Highlights
- Net revenues were
$19.6 million compared with$18.8 million in the first six months of 2019. - Revenues from the financial information and advisory business grew 33.0% year-over-year and accounted for 41.4% of total revenues in the first six months of 2020.
- Net loss attributable to
China Finance Online was$3.4 million , compared with a net loss of$5.7 million in the first six months of 2019.
Mr.
"In the post-COVID era, businesses in
"As diversified new media rises, we have made continuing efforts in the new media operation to deliver our enriched content to audience through different channels. Thanks to our original content and proprietary program, our operation on the popular short-form video social media, DouYin, has made persistent advances. Along with the growing popularity of our content, our services in institutional wealth management, investor education, investment advisory and asset allocation have received more recognition from financial institutions. We have started many modular developments for many institutional clients and used our fintech tools to empower their growth of wealth management services. On the retail wealth management front, we also captured the market opportunity to grow our subscriber base as more investors seek professional advices in a rapidly changing environment."
"Looking into the second half of 2020, there remains many uncertainties in the economy and capital markets but we will continue to strengthen our fintech capability through optimization and upgrades of our services and products to empower the wealth management sector in
Second 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
First Six Months of 2020 Financial Results
Net revenues for the first six months of 2020 were
Gross profit for the first six months of 2020 was
Loss from operations for the first six months of 2020 was
Net loss attributable to
Fully diluted losses per ADS attributable to
Recent Developments
- Lingxi Robo-Advisor recorded strong performance in second 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 second quarter of 2020, the Chinese stock market experienced a strong rebound from the sell-off related to COVID-19 pandemic in the first quarter. Lingxi once again outclassed most of the peer Robo-Advisor products in the marketplace and outperformed the Shanghai Composite Index. The best strategy of Lingxi posted a return of 11.0% in the second quarter of 2020 while Shanghai Composite Index had a return of 10.0% during the same period. All strategies of Lingxi managed to control the expected annualized fluctuation under 6.5% while the expected annualized volatility of Shanghai Composite Index reached 12.6% during the same period. In the first half of 2020, Lingxi produced an average return of 6.0%, continuing to extend its leadership in the robo-advisor marketplace, with the best performing strategy yielded 10.0% return. During the first half of 2020, Lingxi's annualized fluctuation was 5.5% while Shanghai Composite Index rose to 21.6% in fluctuation in the same period.
China Finance Online hosted 2020China Pharmaceutical and Biotech Conference inShanghai
On
China Finance Online hosted China Property Summit (2020) inShanghai
On
Conference Call Information
The management will host a conference call on
US: |
1-855-823-0291 |
|
800-963-435 |
|
800-616-2312 |
Mainland |
800-870-0211 or 400-120-3169 |
Conference ID: |
1064956 |
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/tgygjhh3.
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 |
||||||||
2020 |
2019 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
9,837 |
9,600 |
||||||
Prepaid expenses and other current assets |
2,581 |
2,413 |
||||||
Trust bank balances held on behalf of customers |
31,087 |
36,987 |
||||||
Accounts receivable - margin clients |
11,648 |
13,452 |
||||||
Accounts receivable - others |
13,774 |
12,382 |
||||||
Short-term investments |
- |
1,147 |
||||||
Total current assets |
68,927 |
75,981 |
||||||
Property and equipment, net |
3,608 |
4,272 |
||||||
Acquired intangible assets, net |
75 |
75 |
||||||
Equity investments without readily determinable fair value |
1,582 |
1,605 |
||||||
Equity method investment, net |
754 |
767 |
||||||
Right-of-use assets |
2,914 |
3,988 |
||||||
Rental deposits |
749 |
770 |
||||||
|
109 |
108 |
||||||
Guarantee fund deposits |
219 |
218 |
||||||
Deferred tax assets |
1,190 |
1,381 |
||||||
Total assets |
80,127 |
89,165 |
||||||
Liabilities and equity |
||||||||
Current liabilities: |
||||||||
Deferred revenue, current (including deferred revenue, current of the consolidated variable |
8,872 |
8,855 |
||||||
Accrued expenses and other current liabilities (including accrued expenses and other current |
17,511 |
17,420 |
||||||
Amount due to customers for trust bank balances held on behalf of customers (including |
31,087 |
36,987 |
||||||
Accounts payable (including accounts payable of the consolidated variable interest entities |
7,798 |
6,741 |
||||||
Lease liabilities, current (including lease liabilities, current of the consolidated variable |
2,061 |
2,243 |
||||||
Income taxes payable (including income taxes payable of the consolidated variable interest |
(72) |
177 |
||||||
Total current liabilities |
67,257 |
72,423 |
||||||
Deferred revenue, non-current (including deferred revenue, non-current of the consolidated |
98 |
151 |
||||||
Deferred tax liabilities (including deferred tax liabilities of the consolidated variable interest |
14 |
15 |
||||||
Lease liabilities, non-current (including lease liabilities, non-current of the consolidated |
598 |
1,448 |
||||||
Total liabilities |
67,967 |
74,037 |
||||||
Total |
22,351 |
25,156 |
||||||
Noncontrolling interests |
(10,191) |
(10,028) |
||||||
Total liabilities and equity |
80,127 |
89,165 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands of |
||||||||||||||||||||
Three months ended |
Six months ended |
|||||||||||||||||||
2020 |
2019 |
Mar.31, 2020 |
2020 |
2019 |
||||||||||||||||
Net revenues |
9,745 |
8,927 |
9,835 |
19,580 |
18,782 |
|||||||||||||||
Cost of revenues |
(3,577) |
(3,294) |
(3,923) |
(7,500) |
(6,790) |
|||||||||||||||
Gross profit |
6,168 |
5,633 |
5,912 |
12,080 |
11,992 |
|||||||||||||||
Operating expenses |
||||||||||||||||||||
General and administrative (including share-based compensation of |
(2,254) |
(2,510) |
(2,226) |
(4,480) |
(5,198) |
|||||||||||||||
Product development (including share-based compensation |
(1,990) |
(2,551) |
(1,985) |
(3,975) |
(5,127) |
|||||||||||||||
Sales and marketing (including share-based compensation of |
(4,120) |
(3,839) |
(3,336) |
(7,456) |
(7,429) |
|||||||||||||||
Total operating expenses |
(8,364) |
(8,900) |
(7,547) |
(15,911) |
(17,754) |
|||||||||||||||
Loss from operations |
(2,196) |
(3,267) |
(1,635) |
(3,831) |
(5,762) |
|||||||||||||||
Interest income |
8 |
11 |
5 |
13 |
20 |
|||||||||||||||
Long-term investment loss, net |
— |
(1) |
— |
— |
(1) |
|||||||||||||||
Exchange gain (loss), net |
6 |
34 |
(32) |
(26) |
(67) |
|||||||||||||||
Loss on the interest sold and retained noncontrolling |
— |
— |
— |
— |
(298) |
|||||||||||||||
Income (loss) from equity method investment |
(1) |
— |
(1) |
(2) |
(2) |
|||||||||||||||
Other income (expense), net |
242 |
(48) |
66 |
308 |
(44) |
|||||||||||||||
Loss before income tax expenses |
(1,941) |
(3,271) |
(1,597) |
(3,538) |
(6,154) |
|||||||||||||||
Income tax expenses |
243 |
35 |
(419) |
(176) |
(466) |
|||||||||||||||
Net loss |
(1,698) |
(3,236) |
(2,016) |
(3,714) |
(6,620) |
|||||||||||||||
Less: Net loss attributable to the noncontrolling interest |
(209) |
(268) |
(96) |
(305) |
(870) |
|||||||||||||||
Net loss attributable to |
(1,489) |
(2,968) |
(1,920) |
(3,409) |
(5,750) |
|||||||||||||||
Other comprehensive income (loss), net of tax: |
||||||||||||||||||||
Changes in foreign currency translation adjustment |
15 |
52 |
166 |
181 |
66 |
|||||||||||||||
Net unrealized gain (loss) from short-term investments available-for-sale |
— |
— |
1 |
— |
— |
|||||||||||||||
Less: reclassification adjustment for net (gain) loss included |
— |
— |
(1) |
— |
— |
|||||||||||||||
Other comprehensive income (loss), net of tax |
15 |
52 |
166 |
181 |
66 |
|||||||||||||||
Comprehensive loss |
(1,683) |
(3,184) |
(1,850) |
(3,533) |
(6,554) |
|||||||||||||||
Less: comprehensive loss attributable to noncontrolling |
(209) |
(268) |
(96) |
(305) |
(870) |
|||||||||||||||
Comprehensive income (loss) attributable to |
(1,474) |
(2,916) |
(1,754) |
(3,228) |
(5,684) |
|||||||||||||||
Net income (loss) per share attributable to |
||||||||||||||||||||
Basic and Diluted |
(0.01) |
(0.03) |
(0.02) |
(0.03) |
(0.05) |
|||||||||||||||
Net income (loss) per ADS attributable to |
||||||||||||||||||||
Basic and Diluted |
(0.65) |
(1.29) |
(0.83) |
(1.41) |
(2.52) |
|||||||||||||||
Weighted average ordinary shares |
||||||||||||||||||||
Basic and Diluted |
115,060,781 |
114,690,324 |
116,339,234 |
121,268,456 |
114,307,596 |
|||||||||||||||
Weighted average ADSs |
||||||||||||||||||||
Basic and Diluted |
2,301,216 |
2,293,806 |
2,326,785 |
2,425,369 |
2,286,152 |
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