China Finance Online Reports Third Quarter and First Nine Months of 2017 Unaudited Financial Results
Third Quarter 2017 Financial Highlights
- Net revenues were
$10.7 million , up from$9.6 million in the second quarter of 2017 - Equity brokerage business grew 155.4% year-over-year and 50.6% quarter-over-quarter
- Gross margin was 44.9%, compared with 73.9% in the third quarter of 2016
- Total cash and cash equivalents, restricted cash and short-term investments were
$36.1 million as ofSeptember 30, 2017 - Net losses attributable to China Finance Online were
$8.5 million , compared with a net loss of$8.3 million in the second quarter of 2017 - Lingxi Robo-Advisor outperformed most of its peer robo-advisor products in the Chinese market with average return of 9.8% in the first 9 months of 2017
First Nine Months of 2017 Highlights
- Net revenues were
$29.0 million , a decrease of 54.5% compared with$63.8 million in the first nine months of 2016 - Net losses attributable to China Finance Online were
$28.4 million , compared with a net income of$11.2 million in the first nine months of 2016
Mr.
"As the Chinese stock market experienced solid growth in 2017, the overall investor confidence has improved substantially. We recently rolled out our cloud-based software products for enterprise users. These products feature proprietary financial engineering with artificial intelligence, big data and cloud computing to enable investment researchers and sophisticated investors to improve investment efficiency and optimize investment decisions and empower professional investment advisors to better serve their clients. These intelligent products have already been well received by large financial institutions. We expect to generate revenue from enterprise software subscription business in the coming quarters. We remain confident that we will turn a positive net cash-flow in the fourth quarter. With our strong fintech capability and state-of-the-art products, we are well positioned to ride the next wave of the bull market in
Third Quarter 2017 Financial Results
Net revenues were
Revenues from financial services were
Revenues from the financial information and advisory business were
Revenues from advertising 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 2017 Financial Results
Net revenues for the first nine months of 2017 were
Gross profit for the first nine months of 2017 was
Net loss attributable to China Finance Online for the first nine months of 2017 was
Fully diluted losses per ADS attributable to China Finance Online was
As of
Total shareholders' equity of
Recent Developments
- Rifa receives licenses for asset management and investment advisory in
Hong Kong (Type 4, 5, 9 licenses)
The Company's wholly owned subsidiary,
- Lingxi Robo-Advisor recorded leading performance in comparison to its peer robo-advisor products in the Chinese market
During the first nine months of 2017, the Company's Robo-Advisor product, Lingxi, posted an average return of 9.8% with average drawdown rate of 1.5% and significantly outperformed the Shanghai Composite Index in return with a significantly lower drawdown. According to
Conference Call Information
The management will host a conference call on
US: 1-800-742-9301
Conference ID: 2858349
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/yqep9bcd.
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
- 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
[email protected]
[email protected]
-- Tables Follow --
|
||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||
(In thousands of |
||
|
|
|
Assets |
||
Current assets: |
||
Cash and cash equivalents |
30,601 |
66,151 |
Restricted cash |
- |
2,484 |
Trust bank balances held on behalf of customers |
37,807 |
33,174 |
Accounts receivable, net - others |
12,709 |
14,411 |
Accounts receivable, net - Margin clients |
7,919 |
7,557 |
Short-term investments |
5,487 |
16,444 |
Prepaid expenses and other current assets |
9,352 |
8,240 |
Deferred tax assets, current |
1,223 |
1,370 |
Total current assets |
105,098 |
149,831 |
Long-term investments, net |
2,495 |
2,561 |
Property and equipment, net |
6,424 |
7,398 |
Acquired intangible assets, net |
99 |
397 |
Rental deposits |
1,233 |
1,292 |
|
108 |
109 |
Deferred tax assets, non-current |
21 |
33 |
Other deposits |
1,103 |
6,003 |
Total assets |
116,581 |
167,624 |
Liabilities and equity |
||
Current liabilities: |
||
Deferred revenue, current (including deferred revenue, current of the consolidated variable interest entities without recourse to |
7,487 |
6,526 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to |
9,915 |
29,620 |
Contingent liability (including contingent liability of the consolidated variable interest entities without recourse to |
6 |
3,000 |
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 |
37,807 |
33,174 |
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to |
7,931 |
8,746 |
Deferred tax liabilities, current (including deferred tax liabilities, current of the consolidated variable interest entities without recourse to |
595 |
236 |
Income taxes payable (including income taxes payable of the consolidated variable interest entities without recourse to |
(2) |
3,828 |
Total current liabilities |
63,739 |
85,130 |
Deferred tax liabilities, non-current (including deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to |
16 |
90 |
Deferred revenue, non-current (including deferred revenue, non-current of the consolidated variable interest entities without recourse to |
417 |
609 |
Total liabilities |
64,172 |
85,829 |
Noncontrolling interests |
(9,407) |
(4,370) |
Total |
61,816 |
86,165 |
Total liabilities and equity |
116,581 |
167,624 |
|
|||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||||
(in thousands of |
|||||
Three months ended |
Nine months ended |
||||
|
|
|
|
|
|
Net revenues |
10,739 |
17,062 |
9,615 |
29,026 |
63,820 |
Cost of revenues |
(5,921) |
(4,454) |
(4,526) |
(15,097) |
(13,166) |
Gross profit |
4,818 |
12,608 |
5,089 |
13,929 |
50,654 |
Operating expenses |
|||||
General and administrative(includes share-based compensation expenses of |
(3,220) |
(4,766) |
(3,863) |
(11,195) |
(15,331) |
Sales and marketing (includes share-based compensation expenses of |
(6,948) |
(12,927) |
(7,331) |
(22,622) |
(35,657) |
Product development (includes share-based compensation expenses of |
(3,833) |
(3,652) |
(4,253) |
(12,386) |
(9,477) |
Loss from impairment of intangible assets |
- |
- |
(292) |
(292) |
(1,111) |
Loss from impairment of goodwill |
- |
- |
- |
- |
(6,642) |
Total operating expenses |
(14,001) |
(21,345) |
(15,739) |
(46,495) |
(68,218) |
Government subsidies |
- |
650 |
- |
230 |
1,194 |
Loss from operations |
(9,183) |
(8,087) |
(10,650) |
(32,336) |
(16,370) |
Interest income |
59 |
212 |
119 |
252 |
833 |
Interest expense |
(1) |
- |
(1) |
(3) |
- |
Short-term investment income, net |
102 |
(389) |
(122) |
65 |
(132) |
Gain on the interest sold and retained noncontrolling investment |
- |
2,246 |
1,147 |
409 |
20,568 |
Gain from sale of equity method investment |
- |
- |
111 |
111 |
- |
Equity method investment loss |
(1) |
(21) |
(1) |
(10) |
(132) |
Other income (loss), net |
68 |
47 |
(323) |
(491) |
104 |
Exchange gain (loss), net |
(38) |
4 |
39 |
22 |
(80) |
Income (loss) before income tax benefit (provision) |
(8,994) |
(5,988) |
(9,681) |
(31,981) |
4,791 |
Income tax benefit (provision) |
23 |
2,265 |
(5) |
(494) |
(852) |
Net income (loss) |
(8,971) |
(3,723) |
(9,686) |
(32,475) |
3,939 |
Less: Net loss attributable to the noncontrolling interest |
(518) |
(96) |
(1,387) |
(4,114) |
(7,216) |
Net income (loss) attributable to |
(8,453) |
(3,627) |
(8,299) |
(28,361) |
11,155 |
Net income (loss) |
(8,971) |
(3,723) |
(9,686) |
(32,475) |
3,939 |
Changes in foreign currency translation adjustment |
690 |
(524) |
1,010 |
2,381 |
(1,824) |
Net unrealized loss on available-for-sale securities, net of tax effects of nil, ni, nil, nil and nil respectively |
(47) |
- |
(36) |
(118) |
- |
Other comprehensive income (loss), net of tax |
643 |
(524) |
974 |
2,263 |
(1,824) |
Comprehensive income (loss) |
(8,328) |
(4,247) |
(8,712) |
(30,212) |
2,115 |
Less: comprehensive loss attributable to noncontrolling interest |
(518) |
(96) |
(1,387) |
(4,114) |
(7,216) |
Comprehensive income (loss) attributable to |
(7,810) |
(4,151) |
(7,325) |
(26,098) |
9,331 |
Net income (loss) per share attributable to |
|||||
Basic |
(0.07) |
(0.03) |
(0.07) |
(0.25) |
0.10 |
Diluted |
(0.07) |
(0.03) |
(0.07) |
(0.25) |
0.09 |
Net income (loss) per ADS attributable to |
|||||
Basic |
(0.37) |
(0.16) |
(0.37) |
(1.25) |
0.49 |
Diluted |
(0.37) |
(0.16) |
(0.37) |
(1.25) |
0.44 |
Weighted average ordinary shares |
|||||
Basic |
113,593,847 |
113,277,445 |
113,586,708 |
113,571,257 |
113,089,652 |
Diluted |
113,593,847 |
113,277,445 |
113,586,708 |
113,571,257 |
127,223,768 |
Weighted average ADSs |
|||||
Basic |
22,718,769 |
22,655,489 |
22,717,342 |
22,714,251 |
22,617,930 |
Diluted |
22,718,769 |
22,655,489 |
22,717,342 |
22,714,251 |
25,444,754 |
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