Third Quarter 2018 Financial Highlights
- Net revenues were
$8.6 million , compared with$12.9 million in the second quarter of 2018 - Gross margin increased to 58.2%, up from 44.9% in the third quarter of 2017
- Net loss attributable to
China Finance Online was$6.0 million , compared with a net loss of$8.5 million in the third quarter of 2017
- Officially signed a share transfer agreement to sell 20% of
Rifa Financial Holdings Limited ("Rifa Financial") to a strategic investor forHK$ 73.8 million (aboutUS$ 9.4 million ) and received the first phase of payment ofHK$ 35 million (aboutUS$ 4.5 million )
First Nine Months of 2018 Highlights
- Net revenues were
$34.8 million , an increase of 20.0%, compared with$29.0 million in the first nine months of 2017 - Net loss attributable to
China Finance Online was$15.5 million , compared with a net loss of$28.4 million in the first nine months of 2017 - Lingxi Robo-Advisor ("Lingxi") outperformed most of its peer products in the Chinese market with an average return of 2.9% in the first nine months of 2018, significantly outperforming a loss of 14.7% in the Shanghai Composite Index.
Mr.
"
"Lingxi Robo-Advisor weathered the storm of a difficult market and continued to outperform the market indexes and most of its peer Robo-Advisor products in the marketplace. Our newly-formed partnership with
Third 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 Nine Months of 2018 Financial Results
Net revenues for the first nine months of 2018 were
Gross profit for the first nine months of 2018 was
Net loss attributable to China Finance Online for the first nine months of 2018 was
Fully diluted loss per ADS attributable to China Finance Online was
Total shareholders' equity of
Recent Developments
- Lingxi Robo-Advisor recorded strong performance in the third quarter of 2018
In the third quarter of 2018, the Chinese stock market experienced another round of sell-offs, pushing the quarterly loss of the Shanghai Composite Index to 0.9% and year-to-date loss to 14.7%. However, the Company's Robo-Advisor product, Lingxi, posted an average gain of 1.4% in the third quarter of 2018 and an average gain of 2.9% in the first nine months of 2018, with an average drawdown rate of 2.1% in the third quarter of 2018 and 4.4% in the first nine months of 2018, respectively. These results significantly outperformed the Shanghai Composite Index for investment return with a substantially lower drawdown. According to
Lingxi Platinum Product, catering for mass affluent investors in
- One of
China's largest telecom operators,China Unicom , features Lingxi Robo-advisor in its payment and wealth management mobile App - Epay.
Starting on
- Sale of 20% shares in Rifa Financial
In
Conference Call Information
The management will host a conference call on
US: |
1-800-742-9301 |
Hong Kong: |
800-906-648 |
Singapore: |
800-616-2313 |
China: |
800-870-0210 or 400-120-3170 |
Conference ID: |
8399944 |
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/v7omqv5y.
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) |
||
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Assets |
||
Current assets: |
||
Cash and cash equivalents |
8,456 |
38,693 |
Restricted cash |
- |
2,036 |
Trust bank balances held on behalf of customers |
27,668 |
39,169 |
Accounts receivable, net - others |
9,140 |
8,977 |
Accounts receivable, net - Margin clients |
16,665 |
8,011 |
Short-term investments |
3 |
533 |
Prepaid expenses and other current assets |
4,117 |
4,198 |
Total current assets |
66,049 |
101,617 |
Long-term investments, net |
2,401 |
2,531 |
Property and equipment, net |
4,787 |
6,885 |
Acquired intangible assets, net |
- |
96 |
Rental deposits |
1,032 |
1,141 |
Goodwill |
108 |
108 |
Deferred tax assets |
1,307 |
1,621 |
Other deposits |
437 |
605 |
Total assets |
76,121 |
114,604 |
Liabilities and equity |
||
Current liabilities: |
||
Deferred revenue, current (including deferred revenue, current of the |
7,200 |
9,371 |
Accrued expenses and other current liabilities (including accrued |
5,383 |
9,953 |
Contingent liability (including contingent liability of the consolidated |
- |
3 |
Amount due to customers for trust bank balances held on behalf of |
27,668 |
39,169 |
Accounts payable (including accounts payable of the consolidated |
5,006 |
9,462 |
Income taxes payable (including income taxes payable of the |
67 |
553 |
Total current liabilities |
45,324 |
68,511 |
Deferred tax liabilities (including deferred tax liabilities of the |
15 |
237 |
Deferred revenue, non-current (including deferred revenue, non-current |
103 |
144 |
Total liabilities |
45,442 |
68,892 |
Noncontrolling interests |
(8,952) |
(8,335) |
Total China Finance Online Co. Limited Shareholders' equity |
39,631 |
54,047 |
Total liabilities and equity |
76,121 |
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 |
Nine months ended |
||||
Sep.30,2018 |
Sep.30,2017 |
Jun.30,2018 |
Sep.30,2018 |
Sep.30,2017 |
|
Net revenues |
8,614 |
10,739 |
12,927 |
34,820 |
29,026 |
Cost of revenues |
(3,600) |
(5,921) |
(4,464) |
(13,119) |
(15,097) |
Gross profit |
5,014 |
4,818 |
8,463 |
21,701 |
13,929 |
Operating expenses |
|||||
General and |
(3,063) |
(3,220) |
(3,003) |
(9,318) |
(11,195) |
Sales and marketing |
(4,796) |
(6,948) |
(6,586) |
(17,623) |
(22,622) |
Product development |
(3,468) |
(3,833) |
(3,764) |
(10,999) |
(12,386) |
Loss from |
- |
- |
- |
- |
(292) |
Total operating |
(11,327) |
(14,001) |
(13,353) |
(37,940) |
(46,495) |
Government |
- |
- |
- |
- |
230 |
Income (loss) |
(6,313) |
(9,183) |
(4,890) |
(16,239) |
(32,336) |
Interest income |
4 |
59 |
18 |
82 |
252 |
Interest expense |
- |
(1) |
(1) |
(1) |
(3) |
Short-term |
2 |
102 |
(80) |
(77) |
65 |
Gain(loss) on the |
- |
- |
1 |
(1) |
409 |
Gain from sale |
- |
- |
- |
- |
111 |
Equity method |
(1) |
(1) |
(2) |
(3) |
(10) |
Other income |
(132) |
68 |
69 |
(442) |
(491) |
Exchange gain |
61 |
(38) |
66 |
173 |
22 |
Income (loss) |
(6,379) |
(8,994) |
(4,819) |
(16,508) |
(31,981) |
Income tax |
76 |
23 |
133 |
(58) |
(494) |
Net income |
(6,303) |
(8,971) |
(4,686) |
(16,566) |
(32,475) |
Less: Net |
(283) |
(518) |
(348) |
(1,050) |
(4,114) |
Net income |
(6,020) |
(8,453) |
(4,338) |
(15,516) |
(28,361) |
Net income |
(6,303) |
(8,971) |
(4,686) |
(16,566) |
(32,475) |
Changes in |
(189) |
690 |
(479) |
(269) |
2,381 |
Net unrealized |
- |
(47) |
- |
- |
(118) |
Other |
(189) |
643 |
(479) |
(269) |
2,263 |
Comprehensive |
(6,492) |
(8,328) |
(5,165) |
(16,835) |
(30,212) |
Less: |
(283) |
(518) |
(348) |
(1,050) |
(4,114) |
Comprehensive |
(6,209) |
(7,810) |
(4,817) |
(15,785) |
(26,098) |
Net income |
|||||
Basic |
(0.05) |
(0.07) |
(0.04) |
(0.14) |
(0.25) |
Diluted |
(0.05) |
(0.07) |
(0.04) |
(0.14) |
(0.25) |
Net income |
|||||
Basic |
(0.26) |
(0.37) |
(0.19) |
(0.68) |
(1.25) |
Diluted |
(0.26) |
(0.37) |
(0.19) |
(0.68) |
(1.25) |
Weighted average |
|||||
Basic |
113,905,561 |
113,593,847 |
113,866,602 |
113,872,953 |
113,571,257 |
Diluted |
113,905,561 |
113,593,847 |
113,866,602 |
113,872,953 |
113,571,257 |
Weighted average |
|||||
Basic |
22,781,112 |
22,718,769 |
22,773,320 |
22,774,591 |
22,714,251 |
Diluted |
22,781,112 |
22,718,769 |
22,773,320 |
22,774,591 |
22,714,251 |
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