Second Quarter 2018 Financial Highlights
- Net revenues grew 34.4% year-over-year to
$12.9 million from$9.6 million in the second quarter of 2017 - Revenues from the financial information and advisory business grew 187.5% year-over-year
- Gross margin increased to 65.5%, up from 52.9% in the second quarter of 2017
- Net loss attributable to China Finance Online was
$4.3 million , compared with a net loss of$8.3 million in the second quarter of 2017 and net loss of$5.2 million in the first quarter of 2018
First Six Months of 2018 Highlights
- Net revenues were
$26.2 million , an increase of 43.3%, compared with$18.3 million in the first six months of 2017 - Net loss attributable to China Finance Online was
$9.5 million , compared with a net loss of$19.9 million in the first six months of 2017 - Lingxi Robo-Advisor ("Lingxi") outperformed most of its peer products in the Chinese market with an average return of 0.7% in the first six months of 2018, which significantly outperformed a loss of 13.9% in the Shanghai Composite Index
Mr.
"The Chinese stock markets suffered a crushing sell-off during the second quarter of 2018 and the Shanghai Index plunged from around 3200 to 2800. However, the traffic to our flagship website, "JRJ.com.cn", bucked this market trend and rose to No. 430 in Alexa's Global Ranking and No. 62 in
Mr. Zhao continued, "We continue concentrating on expanding our fintech capabilities as we further develop and optimize our intelligent finance products, which enable investors to identify investment opportunities and discover value stocks. As the Shanghai Index sank to a new three-year low, many value-driven institutional investors began entering into the market. We believe our cloud-based investment research platform, Genius Zhisheng, is well positioned to assist portfolio managers to navigate through the massive industry data and corporate historical financial data to enable them to back-test their investment strategies in a speedy fashion. We have a large number of beta-test programs in place with leading brokerage firms and wealth management advisors."
"As Lingxi Robo-advisor continues to outperform the benchmark index as well as its peer products in the marketplace, our superior track records drew attention from institutions looking for solutions to enrich their services to their clients. YonYou is an Enterprise Service powerhouse with over 4 million clients in
Second Quarter 2018 Financial Results
Net revenues were
Revenues from financial services were
Revenues from the financial information and advisory business were
Revenues from advertising 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 China Finance Online was
Fully diluted loss per American Depository Shares ("ADS") attributable to China Finance Online was
First Six Months of 2018 Financial Results
Net revenues for the first six months of 2018 were
Gross profit for the first six months of 2018 was
Net loss attributable to China Finance Online for the first six months of 2018 was
Fully diluted loss per ADS attributable to China Finance Online was
As of
Total shareholders' equity of
Recent Developments
- Partnership with the world-leading enterprise service provider,
YonYou Network Technology (600588.SS), for corporate intelligent asset allocation
On
- Lingxi Robo-Advisor recorded strong performance in second quarter of 2018
In the second quarter of 2018, the Chinese stock market experienced one of the largest sell-offs, pushing the quarterly loss of Shanghai Composite Index to 10.1% and year-to-date loss to 13.9%. However, the Company's Robo-Advisor product, Lingxi, posted an average loss of 0.5% in the second quarter of 2018 and an average return of 0.7% gain in the first six months of 2018, with an average drawdown rate of 2.1% in the second quarter of 2018 and 4.6% in the first six months of 2018, respectively. These results significantly outperformed the Shanghai Composite Index for investment return with a substantially lower drawdown. According to
Since its inception in late 2016, Lingxi provides Chinese middle-class retail investors with a wide array of investment combinations and personalized global asset allocations through Chinese domestic mutual funds. Lingxi Platinum Product, catering for mass affluent investors in
- Class Action against the Company is officially closed
The Company have received a court judgement on the class action lawsuit (Wang et al., v.
Conference Call Information
The management will host a conference call on
US: 1-800-742-9301
Conference ID: 2366699
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/m6/p/6pvony2j.
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 U.S. Private Securities Litigation Reform Act of 1995. The statements contained herein reflect management's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond the control of the Company. 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 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, changing customer needs, regulatory environment and market conditions that we are subject to; the uneven condition of the world and Chinese economies that could lead to volatility in the equity markets and affect our operating results in the coming quarters; the impact of the changing conditions of the mainland Chinese stock market, mainland Chinese precious metals exchanges,
For more information, please contact:
+86-10-8336-3100
ir@jrj.com
(212) 521-4050
kevin.theiss@awakenlab.com
-- Tables Follow –
|
China Finance Online Co. Limited |
||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||
|
(In thousands of U.S. dollars) |
||
|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
|
Assets |
||
|
Current assets: |
||
|
Cash and cash equivalents |
16,009 |
38,693 |
|
Restricted cash |
- |
2,036 |
|
Trust bank balances held on behalf of customers |
32,950 |
39,169 |
|
Accounts receivable, net - others |
7,960 |
8,977 |
|
Accounts receivable, net - Margin clients |
14,943 |
8,011 |
|
Short-term investments |
952 |
533 |
|
Prepaid expenses and other current assets |
4,007 |
4,198 |
|
Total current assets |
76,821 |
101,617 |
|
Long-term investments, net |
2,498 |
2,531 |
|
Property and equipment, net |
5,589 |
6,885 |
|
Acquired intangible assets, net |
- |
96 |
|
Rental deposits |
1,101 |
1,141 |
|
Goodwill |
108 |
108 |
|
Deferred tax assets |
1,307 |
1,621 |
|
Other deposits |
466 |
605 |
|
Total assets |
87,890 |
114,604 |
|
Liabilities and equity |
||
|
Current liabilities: |
||
|
Deferred revenue, current (including deferred revenue, current of the |
6,980 |
9,371 |
|
Accrued expenses and other current liabilities (including accrued |
5,260 |
9,953 |
|
Contingent liability (including contingent liability of the consolidated |
- |
3 |
|
Amount due to customers for trust bank balances held on behalf of |
32,950 |
39,169 |
|
Accounts payable (including accounts payable of the consolidated |
5,855 |
9,462 |
|
Income taxes payable (including income taxes payable of the |
67 |
553 |
|
Total current liabilities |
51,112 |
68,511 |
|
Deferred tax liabilities (including deferred tax liabilities of the |
41 |
237 |
|
Deferred revenue, non-current (including deferred revenue, non-current |
63 |
144 |
|
Total liabilities |
51,216 |
68,892 |
|
Noncontrolling interests |
(8,763) |
(8,335) |
|
Total China Finance Online Co. Limited Shareholders' equity |
45,437 |
54,047 |
|
Total liabilities and equity |
87,890 |
114,604 |
|
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 |
Six months ended |
||||
|
Jun. 30, |
Jun. 30, |
Mar. 31, |
Jun. 30, |
Jun. 30, |
|
|
Net revenues |
12,927 |
9,615 |
13,280 |
26,207 |
18,287 |
|
Cost of revenues |
(4,464) |
(4,526) |
(5,055) |
(9,519) |
(9,176) |
|
Gross profit |
8,463 |
5,089 |
8,225 |
16,688 |
9,111 |
|
Operating expenses |
|||||
|
General and administrative (includes |
(3,003) |
(3,863) |
(3,252) |
(6,255) |
(7,975) |
|
Sales and marketing (includes share- |
(6,586) |
(7,331) |
(6,243) |
(12,829) |
(15,674) |
|
Product development (includes share- |
(3,764) |
(4,253) |
(3,767) |
(7,531) |
(8,553) |
|
Loss from impairment of intangible |
- |
(292) |
- |
- |
(292) |
|
Total operating expenses |
(13,353) |
(15,739) |
(13,262) |
(26,615) |
(32,494) |
|
Government subsidies |
- |
- |
- |
- |
230 |
|
Income (loss) from operations |
(4,890) |
(10,650) |
(5,037) |
(9,927) |
(23,153) |
|
Interest income |
18 |
119 |
60 |
78 |
193 |
|
Interest expense |
(1) |
(1) |
- |
(1) |
(2) |
|
Short-term investment income, net |
(80) |
(122) |
1 |
(79) |
(37) |
|
Gain(loss)on the interest sold and |
1 |
1,147 |
(2) |
(1) |
409 |
|
Gain from sale of equity method |
- |
111 |
- |
- |
111 |
|
Equity method investment income |
(2) |
(1) |
(1) |
(3) |
(9) |
|
Other income (loss), net |
69 |
(323) |
(378) |
(309) |
(559) |
|
Exchange gain (loss), net |
66 |
39 |
47 |
113 |
60 |
|
Income (loss) before income tax |
(4,819) |
(9,681) |
(5,310) |
(10,129) |
(22,987) |
|
Income tax expenses |
133 |
(5) |
(268) |
(135) |
(517) |
|
Net income (loss) |
(4,686) |
(9,686) |
(5,578) |
(10,264) |
(23,504) |
|
Less: Net income (loss) attributable to |
(348) |
(1,387) |
(419) |
(767) |
(3,596) |
|
Net income (loss) attributable to China |
(4,338) |
(8,299) |
(5,159) |
(9,497) |
(19,908) |
|
Net income (loss) |
(4,686) |
(9,686) |
(5,578) |
(10,264) |
(23,504) |
|
Changes in foreign currency translation |
(479) |
1,045 |
399 |
(80) |
1,726 |
|
Net unrealized gain on available-for- |
- |
(71) |
- |
- |
(106) |
|
Other comprehensive income (loss), net |
(479) |
974 |
399 |
(80) |
1,620 |
|
Comprehensive income (loss) |
(5,165) |
(8,712) |
(5,179) |
(10,344) |
(21,844) |
|
Less: comprehensive income (loss) |
(348) |
(1,387) |
(419) |
(767) |
(3,596) |
|
Comprehensive income (loss) |
(4,817) |
(7,325) |
(4,760) |
(9,577) |
(18,288) |
|
Net income (loss) per share |
|||||
|
Basic |
(0.04) |
(0.07) |
(0.05) |
(0.08) |
(0.18) |
|
Diluted |
(0.04) |
(0.07) |
(0.05) |
(0.08) |
(0.18) |
|
Net income (loss) per ADS attributable to |
|||||
|
Basic |
(0.19) |
(0.37) |
(0.23) |
(0.42) |
(0.88) |
|
Diluted |
(0.19) |
(0.37) |
(0.23) |
(0.42) |
(0.88) |
|
Weighted average ordinary shares |
|||||
|
Basic |
113,866,602 |
113,586,708 |
113,846,041 |
113,856,379 |
113,559,775 |
|
Diluted |
113,866,602 |
113,586,708 |
113,846,041 |
113,856,379 |
113,559,775 |
|
Weighted average ADSs |
|||||
|
Basic |
22,773,320 |
22,717,342 |
22,769,208 |
22,771,276 |
22,711,955 |
|
Diluted |
22,773,320 |
22,717,342 |
22,769,208 |
22,771,276 |
22,711,955 |
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