Third Quarter 2015 Financial Highlights
- Net revenues were
$37.0 million , an increase of 74.8% year-over-year and 59.9% sequentially. - Revenues from financial services were
$30.7 million , an increase of 79.8% year-over-year. - Revenues from financial information and advisory business were
$4.4 million , an increase of 94.1% year-over-year. - Gross margin was 85.6%, compared with 75.8% in the third quarter of 2014 and 78.9% in the second quarter of 2015.
- Net income attributable to
China Finance Online was$9.7 million , a significant increase from a net loss of$2.4 million in the third quarter of 2014 and a net income of$4.1 million in the second quarter of 2015.
First Nine Months 2015 Financial Highlights
- Net revenues increased 13.6% year-over-year to
$73.8 million . - Gross profit increased 22.9% year-over-year to
$60.2 million . - Net income attributable to
China Finance Online was$12.5 million , compared to a net loss of$10.8 million in the first nine months of 2014.
Mr.
"We continue to integrate our traditional business lines with our new growth drivers. This includes the redesign and transition of JRJC's core website, www.jrj.com, from a pure news aggregation function towards a more transaction-oriented information platform that will directly support the growth of iTouGu and Yinglibao. We will continue to invest in our newest businesses and transit our traditional ones as we work to create greater value for our customers and shareholders."
Third Quarter 2015 Financial Results
Net revenues were
Revenues from financial services were
Revenues from financial information and advisory business were
The Company's social-driven stock selection platform iTouGu continued to grow in size and scale as it begins generating revenue in a more meaningful way. As of
Revenues from advertising were
Gross profit was
General and administrative expenses were
Sales and marketing expenses were
Research and development expenses were
Income from operations was
Net income attributable to
Fully diluted earnings per ADS was
As of
Total shareholders' equity of
First Nine Months 2015 Financial Results
Net revenues for the first nine months of 2015 were
Gross profit for the first nine months of 2015 was
Net income attributable to
Fully diluted earnings per ADS was
Recent Developments
On
Conference Call Information
The management will host a conference call on
US: 1-800-742-9301
Conference: ID: 91092372
Please dial in 10 minutes before the call is scheduled to begin and provide the conference ID to join the call.
A replay of the call will be available shortly after the conclusion of the conference call through
US: 1-855-452-5696
China: 800-870-0205/400-632-2162
Conference ID: 91092372
In addition, a live and archived webcast of the conference call will be available at http://edge.media-server.com/m/p/5thji84r.
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 and continue to develop iTouGu;
- 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, 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 the changing conditions of the mainland Chinese stock market,
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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) |
|||
|
Sep. 30, 2015 |
Dec. 31, 2014 |
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|
Assets |
|||
|
Current assets: |
|||
|
Cash and cash equivalents |
48,038 |
32,538 |
|
|
Restricted cash |
15 |
5 |
|
|
Trust bank balances held on behalf of customers |
15,610 |
11,922 |
|
|
Accounts receivable, net - others |
8,766 |
12,886 |
|
|
Accounts receivable, net - margin clients |
3,183 |
1,699 |
|
|
Loan receivable |
8,785 |
10,296 |
|
|
Consideration Receivable |
12,890 |
13,401 |
|
|
Short-term investments |
2 |
- |
|
|
Prepaid expenses and other current assets |
6,684 |
8,539 |
|
|
Deferred tax assets, current |
474 |
926 |
|
|
Total current assets |
104,447 |
92,212 |
|
|
Long-term investments, net |
374 |
1,218 |
|
|
Property and equipment, net |
5,184 |
4,863 |
|
|
Acquired intangible assets, net |
1,893 |
2,185 |
|
|
Rental deposits |
1,528 |
1,388 |
|
|
Goodwill |
6,839 |
7,090 |
|
|
Deferred tax assets, non-current |
45 |
72 |
|
|
Other deposits |
4,845 |
4,874 |
|
|
Total assets |
125,155 |
113,902 |
|
|
Liabilities and equity |
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|
Current liabilities: |
|||
|
Deferred revenue, current (including deferred revenue, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $3,795 and $2,954 as of September 30, 2015 and December 31,2014, respectively) |
5,315 |
4,936 |
|
|
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 $9,467 and $6,179 as of September 30, 2015 and December 31, 2014, respectively) |
11,301 |
8,837 |
|
|
Dividends payable to noncontrolling interests (including dividends payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $2,259 and nil as of September 30,2015 and December 31, 2014, respectively) |
2,259 |
- |
|
|
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 $252 and $399 as of September 30, 2015 and December 31, 2014, respectively) |
15,610 |
11,922 |
|
|
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $2,125 and $1,887 as of September 30, 2015 and December 31, 2014, respectively) |
4,562 |
9,852 |
|
|
Deferred tax liabilities, current (including deferred tax liabilities, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $416 and $578 as of September 30, 2015 and December 31, 2014, respectively) |
418 |
580 |
|
|
Income taxes payable (including income taxes payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $253 and $301 as of September 30, 2015 and December 31,2014, respectively) |
253 |
314 |
|
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Total current liabilities |
39,718 |
36,441 |
|
|
Deferred tax liabilities, non-current (including deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $473 and $546 as of September 30, 2015 and December 31, 2014, respectively) |
473 |
546 |
|
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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 $237 and $353 as of September 30, 2015 and December 31,2014, respectively) |
953 |
1,373 |
|
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Total liabilities |
41,144 |
38,360 |
|
|
Noncontrolling interests |
7,657 |
10,926 |
|
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Total China Finance Online Co. Limited Shareholders' equity |
76,354 |
64,616 |
|
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Total liabilities and equity |
125,155 |
113,902 |
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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 |
Nine months ended |
||||
|
Sep. 30, 2015 |
Sep. 30, 2014 |
Jun. 30, 2015 |
Sep. 30, 2015 |
Sep. 30, 2014 |
|
|
Net revenues |
36,954 |
21,138 |
23,115 |
73,770 |
64,916 |
|
Cost of revenues |
(5,329) |
(5,116) |
(4,867) |
(13,620) |
(15,965) |
|
Gross profit |
31,625 |
16,022 |
18,248 |
60,150 |
48,951 |
|
Operating expenses |
|||||
|
General and administrative (includes share-based compensation expenses of $470, $3,451, $2,619, $3,138 and $4,648, respectively) |
(3,218) |
(6,375) |
(6,102) |
(12,281) |
(14,251) |
|
Sales and marketing (includes share-based compensation expenses of $(97), $4, $14, $(55) and $17, respectively) |
(13,130) |
(9,124) |
(8,845) |
(30,113) |
(34,093) |
|
Product development (includes share-based compensation expenses of $(137), $15, nil, $(58) and $59, respectively) |
(2,506) |
(2,626) |
(2,693) |
(8,023) |
(7,762) |
|
Loss from impairment of intangible assets |
- |
- |
- |
- |
(1,802) |
|
Loss from impairment of goodwill |
- |
- |
- |
- |
(8,150) |
|
Total operating expenses |
(18,854) |
(18,125) |
(17,640) |
(50,417) |
(66,058) |
|
Government subsidies |
153 |
169 |
- |
252 |
454 |
|
Income (loss) from operations |
12,924 |
(1,934) |
608 |
9,985 |
(16,653) |
|
Interest income |
69 |
1,022 |
43 |
1,312 |
2,906 |
|
Interest expense |
- |
(1) |
- |
- |
(11) |
|
Short-term investment income, net |
70 |
39 |
34 |
137 |
23 |
|
Gain from sale of cost method investment |
- |
- |
4,648 |
4,648 |
- |
|
Loss from equity method investment |
(10) |
- |
(9) |
(19) |
- |
|
Other income (loss), net |
(563) |
12 |
(74) |
(952) |
591 |
|
Exchange gain (loss), net |
(620) |
14 |
80 |
(605) |
(176) |
|
Income (loss) before income tax benefits (expenses) |
11,870 |
(848) |
5,330 |
14,506 |
(13,320) |
|
Income tax benefits (expenses) |
(227) |
(60) |
312 |
(631) |
(448) |
|
Net income (loss) |
11,643 |
(908) |
5,642 |
13,875 |
(13,768) |
|
Less: Net income (loss) attributable to the noncontrolling interest |
1,905 |
1,498 |
1,570 |
1,402 |
(2,985) |
|
Net income (loss) attributable to China Finance Online Co. Limited |
9,738 |
(2,406) |
4,072 |
12,473 |
(10,783) |
|
Net income (loss) |
11,643 |
(908) |
5,642 |
13,875 |
(13,768) |
|
Changes in foreign currency translation adjustment |
(2,076) |
(31) |
181 |
(1,789) |
(477) |
|
Net unrealized gain on available-for-sale securities, net of tax effects of nil, nil, $(1), nil and nil respectively |
- |
- |
(2) |
- |
- |
|
Other comprehensive income (loss), net of tax |
(2,076) |
(31) |
179 |
(1,789) |
(477) |
|
Comprehensive income (loss) |
9,567 |
(939) |
5,821 |
12,086 |
(14,245) |
|
Less: comprehensive income (loss) attributable to noncontrolling interest |
1,905 |
1,498 |
1,570 |
1,402 |
(2,985) |
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Comprehensive income (loss) attributable to China Finance Online Co. Limited |
7,662 |
(2,437) |
4,251 |
10,684 |
(11,260) |
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Net income (loss) per share attributable to China Finance Online Co. Limited |
|||||
|
Basic |
0.09 |
(0.02) |
0.04 |
0.11 |
(0.10) |
|
Diluted |
0.08 |
(0.02) |
0.03 |
0.10 |
(0.10) |
|
Net income (loss) per ADS attributable to China Finance Online Co. Limited |
|||||
|
Basic |
0.44 |
(0.11) |
0.18 |
0.56 |
(0.49) |
|
Diluted |
0.39 |
(0.11) |
0.16 |
0.50 |
(0.49) |
|
Weighted average ordinary shares |
|||||
|
Basic |
111,049,810 |
109,338,747 |
111,031,161 |
110,919,502 |
109,256,922 |
|
Diluted |
124,074,231 |
109,338,747 |
125,714,306 |
124,836,522 |
109,256,922 |
|
Weighted average ADSs |
|||||
|
Basic |
22,209,962 |
21,867,749 |
22,206,232 |
11,183,900 |
21,851,384 |
|
Diluted |
24,814,846 |
21,867,749 |
25,142,861 |
24,967,304 |
21,851,384 |
Contact:
+86-10-8336-3100
ir@jrj.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/china-finance-online-reports-third-quarter-2015-unaudited-financial-results-300193066.html
SOURCE