Third Quarter 2019 Financial Highlights
- Net revenues were
$8.1 million . - Revenues from advertising grew 41.4% year-over-year.
- Gross margin was 62.3%.
- Net loss attributable to
China Finance Online was$2.1 million , compared with a net loss of$6.0 million in the third quarter of 2018. - The Company's operational metrics continued to improve and operational efficiency continued to increase.
- The Company's continued investment in fintech started to show results.
First Nine Months of 2019 Highlights
- Net revenues were
$26.8 million . - Net loss attributable to
China Finance Online was$7.9 million , compared with a net loss of$15.5 million in the first nine months of 2018. - Built upon our development of a proprietary intelligent asset allocation system, Lingxi Robo-Advisor ("Lingxi") outperformed most of its peer products in the Chinese market with an average return of 1.7% in the third quarter of 2019, and outperformed a loss of 2.5% in the Shanghai Composite Index.
Mr.
"Similar to the transition of brokerage services in the US, Chinese financial institutions are moving away from a trading commission-oriented business model to holistic financial services encompassing wealth management, investor education, and asset allocation advisory. Our dedication to leveraging technologies to empower wealth managers and improve customer loyalty has bought us closer to many financial institutions. This paradigm shift in the financial industry also set the stage for us to change the revenue model from one-off project services to annual retainers. Our Genius Zhisheng has received such standard annual contracts from brokerage firms. Our institutional business is showing good indications."
"After a weak second quarter, the Chinese stock markets continued to soften during the third quarter and the Shanghai Composite Index dropped from 2979 to 2905. However, the traffic to our flagship website, 'JRJ.com.cn,' continued to rise, reaching No. 150 in Alexa's Global Ranking and No. 35 in
"Looking into 2020, we will continue to optimize and upgrade our services and products, and also remain confident to leverage our fintech capabilities to add value to our institutional customers and grow our market share and earning power," Mr. Zhao concluded.
Third Quarter 2019 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
Fully diluted loss per American Depository Shares ("ADS") attributable to
First Nine Months of 2019 Financial Results
Net revenues for the first nine months of 2019 were
Gross profit for the first nine months of 2019 was
Net loss attributable to
Fully diluted losses per ADS attributable to
As of
Recent Developments
- Announcement of Management Change
On
- Lingxi Robo-Advisor recorded strong performance in the third quarter of 2019
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 third quarter of 2019, Lingxi produced an average return of 1.7%, once again among the best performing products in the marketplace and outperforming the Shanghai Composite Index that suffered a loss of 2.5% during the same period. The best strategy of Lingxi posted a return of 2.36% in the third quarter of 2019. All strategies of Lingxi managed to control the fluctuation under 5.37% while the volatility of Shanghai Composite Index reached 14.04% during the same period.
- 2019 Leading China Annual Forum
In
- 2019 JRJ Chinese Public Companies Innovation Symposium
In
During the Symposium,
Conference Call Information
The management will host a conference call on
US: 1-800-742-9301
Mainland
Conference ID: 9883104
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/9d3zuqu7.
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
Awaken Advisors
(212) 521-4050
kevin@awakenlab.com
-- Tables Follow --
China Finance Online Co. Limited |
|||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(In thousands of U.S. dollars) |
|||||
Sep. 30, 2019 |
Dec. 31, 2018 |
||||
Assets |
|||||
Current assets: |
|||||
Cash and cash equivalents |
6,991 |
12,493 |
|||
Trust bank balances held on behalf of customers |
38,240 |
31,218 |
|||
Accounts receivable, net - others |
14,767 |
7,102 |
|||
Accounts receivable, net - Margin clients |
14,089 |
17,751 |
|||
Prepaid expenses and other current assets |
3,378 |
2,409 |
|||
Total current assets |
77,465 |
70,973 |
|||
Long-term investments, net |
2,337 |
2,411 |
|||
Property and equipment, net |
3,449 |
4,459 |
|||
Acquired intangible assets, net |
85 |
85 |
|||
Right-of-use assets |
4,595 |
— |
|||
Rental deposits |
814 |
964 |
|||
Goodwill |
108 |
108 |
|||
Deferred tax assets |
875 |
1,473 |
|||
Other deposits |
155 |
216 |
|||
Total assets |
89,883 |
80,689 |
|||
Liabilities and equity |
|||||
Current liabilities: |
|||||
Deferred revenue, current (including deferred revenue, current of the |
6,881 |
8,127 |
|||
Accrued expenses and other current liabilities (including accrued expenses |
16,782 |
11,728 |
|||
Dividends payable to noncontrolling interests (including dividends payable |
— |
— |
|||
Amount due to customers for trust bank balances held on behalf of customers |
38,240 |
31,218 |
|||
Accounts payable (including accounts payable of the consolidated variable |
5,280 |
2,947 |
|||
Lease liabilities, current (including lease liabilities, current of the |
2,285 |
— |
|||
Income taxes payable (including income taxes payable of the consolidated |
155 |
155 |
|||
Total current liabilities |
69,623 |
54,175 |
|||
Deferred tax liabilities (including deferred tax liabilities of the consolidated |
16 |
29 |
|||
Lease liabilities, non-current (including lease liabilities, non-current of the consolidated variable |
2,011 |
— |
|||
Deferred revenue, non-current (including deferred revenue, non-current of |
137 |
149 |
|||
Total liabilities |
71,787 |
54,353 |
|||
Noncontrolling interests |
(9,636) |
(9,110) |
|||
Total China Finance Online Co. Limited Shareholders' equity |
27,732 |
35,446 |
|||
Total liabilities and equity |
89,883 |
80,689 |
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, 2019 |
Sep. 30, 2018 |
Jun. 30, 2019 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|||||||||||||
Net revenues |
8,051 |
8,614 |
8,927 |
26,833 |
34,820 |
||||||||||||
Cost of revenues |
(3,036) |
(3,600) |
(3,294) |
(9,826) |
(13,119) |
||||||||||||
Gross profit |
5,015 |
5,014 |
5,633 |
17,007 |
21,701 |
||||||||||||
Operating expenses |
|||||||||||||||||
General and administrative (includes share-based |
(2,290) |
(3,063) |
(2,510) |
(7,488) |
(9,318) |
||||||||||||
Sales and marketing (includes share-based compensation |
(2,816) |
(4,796) |
(3,839) |
(10,245) |
(17,623) |
||||||||||||
Product development (includes share-based |
(2,195) |
(3,468) |
(2,551) |
(7,323) |
(10,999) |
||||||||||||
Total operating expenses |
(7,301) |
(11,327) |
(8,900) |
(25,056) |
(37,940) |
||||||||||||
Income (loss) from operations |
(2,286) |
(6,313) |
(3,267) |
(8,049) |
(16,239) |
||||||||||||
Interest income |
5 |
4 |
11 |
25 |
82 |
||||||||||||
Interest expense |
— |
— |
— |
— |
(1) |
||||||||||||
Long-term investment loss, net |
— |
— |
(1) |
— |
— |
||||||||||||
Short-term investment income, net |
2 |
2 |
5 |
12 |
(77) |
||||||||||||
Gain (loss) on the interest sold and retained noncontrolling investment |
— |
— |
— |
(298) |
(1) |
||||||||||||
Equity method investment income |
(1) |
(1) |
— |
(4) |
(3) |
||||||||||||
Other income (loss), net |
77 |
(132) |
(53) |
24 |
(442) |
||||||||||||
Exchange gain (loss), net |
76 |
61 |
34 |
10 |
173 |
||||||||||||
Income (loss) before income tax expenses |
(2,127) |
(6,379) |
(3,271) |
(8,280) |
(16,508) |
||||||||||||
Income tax expenses |
(108) |
76 |
35 |
(574) |
(58) |
||||||||||||
Net income (loss) |
(2,235) |
(6,303) |
(3,236) |
(8,854) |
(16,566) |
||||||||||||
Less: Net income (loss) attributable to the |
(131) |
(283) |
(268) |
(1,001) |
(1,050) |
||||||||||||
Net income (loss) attributable to China Finance Online Co. Limited |
(2,104) |
(6,020) |
(2,968) |
(7,853) |
(15,516) |
||||||||||||
Net income (loss) |
(2,235) |
(6,303) |
(3,236) |
(8,854) |
(16,566) |
||||||||||||
Changes in foreign currency translation adjustment |
(189) |
(189) |
52 |
(124) |
(269) |
||||||||||||
Other comprehensive income (loss), net of tax |
(189) |
(189) |
52 |
(124) |
(269) |
||||||||||||
Comprehensive income (loss) |
(2,424) |
(6,492) |
(3,184) |
(8,978) |
(16,835) |
||||||||||||
Less: comprehensive income (loss) |
(131) |
(283) |
(268) |
(1,001) |
(1,050) |
||||||||||||
Comprehensive income (loss) attributable to China Finance Online Co. Limited |
(2,293) |
(6,209) |
(2,916) |
(7,977) |
(15,785) |
||||||||||||
Net income (loss) per share attributable to China Finance Online Co. Limited |
|||||||||||||||||
Basic |
(0.02) |
(0.05) |
(0.03) |
(0.07) |
(0.14) |
||||||||||||
Diluted |
(0.02) |
(0.05) |
(0.03) |
(0.07) |
(0.14) |
||||||||||||
Net income (loss) per ADS attributable to China Finance Online Co. Limited |
|||||||||||||||||
Basic |
(0.09) |
(0.26) |
(0.13) |
(0.34) |
(0.68) |
||||||||||||
Diluted |
(0.09) |
(0.26) |
(0.13) |
(0.34) |
(0.68) |
||||||||||||
Weighted average ordinary shares |
|||||||||||||||||
Basic |
115,060,781 |
113,905,561 |
114,690,324 |
114,561,418 |
113,872,953 |
||||||||||||
Diluted |
115,060,781 |
113,905,561 |
114,690,324 |
114,561,418 |
113,872,953 |
||||||||||||
Weighted average ADSs |
|||||||||||||||||
Basic |
23,012,156 |
22,781,112 |
22,938,065 |
22,912,284 |
22,774,591 |
||||||||||||
Diluted |
23,012,156 |
22,781,112 |
22,938,065 |
22,912,284 |
22,774,591 |
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