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Sino Fortune Holding Corp. Reports First Quarter 2017 Financial Results

2017-05-12 07:35
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Net revenue increased by 42% to $7.89 million as loans facilitated through our platform grew 39% to RMB 1.63 billion in the first quarter

SHANGHAI, May 12, 2017 /PRNewswire/ -- Sino Fortune Holding Corporation (OTCQB: SFHD) ("Sino Fortune" or the "Company"), a leading online financial credit facility solution provider servicing SME and individual borrowers in China, today announced its financial results for the three months ended March 31, 2017.

Bodang Liu, Chairman and Chief Executive Officer of Sino Fortune, commented, "The momentum we saw through our platform toward the end of last year carried into the first quarter, resulting in significantly better overall performance than a year ago. On the back of a 39% increase of loan volume, our net revenues and net income grew 42% and 36%, respectively, and both reached a record high since our inception, highlighting favorable trends and continuing momentum in our business."  

First Quarter 2017 Financial Results


For the Three Months Ended March 31,

($ millions, except per share data)

2017


2016


% Change

Revenue

$7.89


$5.56


41.8%

Service Fee

$5.18


$4.06


27.5%

Management fee

$2.71


$1.50


80.6%

Operating income

$2.61


$1.58


65.2%

Other income (expenses)

$0.03


$0.01


203.2%

Net income

$1.99


$1.47


36.0%

EPS - basic and diluted

$0.0055


$0.0043


26.9%

Total net revenue for the first quarter of 2017 increased by $2.33 million, or 41.8%, to $7.89 million from $5.56 million for the same period of last year. The increase of total net revenue was mainly attributable to the increase in the volume of loans facilitated through our platform which increased by 39.3% to RMB 1.63 billion for the first quarter of 2017 from RMB 1.17 billion for the same period of last year.

The service fee increased by $1.12 million, or 27.5%, to $5.18 million for the first quarter of 2017 from $4.06 million for the same period of last year. The management fee increased by $1.21 million, or 80.6%, to $2.71 million for the first quarter of 2017 from $1.50 million for the same period of last year. The service fee and management fee accounted for 65.6% and 34.4%, respectively, of total net revenue for the first quarter of 2017, compared to 73.0% and 27.0%, respectively, for the same period of last year.

Operating expenses increased by $1.30 million, or 32.6%, to $5.28 million for the first quarter of 2017 from $3.98 million for the same period of last year. The increase in operating expenses was mainly due to increases in sales and marketing expenses and partially offset by a decrease in general and administrative expenses. Sales and marketing expenses increased by $1.48 million, or 52.8%, to $4.27 million for the first quarter of 2017 from $2.80 million for the same period of last year. The increase in sales and marketing expenses was associated with heightened sales and marketing efforts and higher volume of loans facilitated through our platform. Our general and administrative expenses decreased $0.19 million, or 17.0%, to $0.93 million for the first quarter of 2017 from $1.13 million for the same period of last year, primarily due to the layoff of more than 1,000 off-line sales related personnel in April 2016 to comply with new industry regulatory measures.

Operating income increased by $1.03 million, or 65.2%, to $2.61 million for the first quarter of 2017 from $1.58 million for the same period of last year. The increase in operating income was primarily driven by increase in total net revenue. Operating profit margin was 33.1% for the first quarter of 2017, compared to 28.4% for the same period of last year.

Provision for income taxes was $0.64 million for the first quarter of 2017, compared to $0.12 million for the same period of last year.

Net income increased by $0.53 million, or 36.0%, to $1.99 million for the first quarter of 2017, from $1.47 million for the same period of last year.

Earnings per share increased by 26.9% to $0.0055 for the first quarter of 2017 from $0.0043 for the same period of last year.

Financial Condition

As of March 31, 2017, the Company had cash and cash equivalents of $12.18 million, compared to $8.56 million at the end of 2016. The cash balance included cash held in private loan risk reserve accounts of $8.89 million and $7.30 million as of March 31, 2017 and December 31, 2016, respectively. Short term investments were $8.44 million as of March 31, 2017, compared to $8.27 million at the end of 2016. As of March 31, 2017, we had $23.67 million in total current assets and $10.78 million in total current liabilities, representing a current ratio of 2.19. As of December 31, 2016, we had $19.99 million in total current assets and $9.05 million in total current liabilities, with a current ratio of 2.21.

Net cash provided by operating activities $3.79 million for the first quarter of 2017, compared to $1.28 million for the same period of last year. Net cash used in investing activities was $0.24 million for the first quarter of 2017, compared to $0.27 million for the same period of last year. Net cash provided by financing activities was $nil for the first quarter of 2017 and 2016.

Recent Developments

In March 2017, we engaged Jiangxi Bank to provide fund depository services for our marketplace, pursuant to which Jiangxi Bank will set up separate accounts for borrowers and investors, and assume fund depository functions including settlement, accounting and safeguarding online lending capital. Third-party payment agents operate as the payment channels and only transfer funds to and from fund depository accounts. Relevant Chinese regulations require us to enter into fund depository agreement with only one commercial bank to provide fund depository services.

About Sino Fortune Holding Corporation

Founded in 2013, Sino Fortune Holding Corporation ("Sino Fortune") is a leading online financial credit facility solution provider servicing under-served SME and individual borrowers in China. Through operating an electronic online financial platform, www.hyjf.com, the Company matches investors with SME and individual borrowers in China. The Company also sets aside risk reserve funds with the aim of limiting losses to investors from borrower defaults. In addition, the company provides investors with access to a liquid secondary market, giving them an opportunity to exit their investments before the underlying loans become due. For more information, please visit: www.hyjf.com.

Forward-Looking Statements

This press release may contain projections or other forward-looking statements regarding future events or our future financial performance. All statements other than present and historical facts and conditions contained in this release, including any statements regarding our future results of operations and financial positions, business strategy, plans and our objectives for future operations, are forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). These statements are only predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in the projections or forward-looking statements.

Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

For investors and media inquiries please contact:

At the Company:
Lexi Li
Email: linengchao@hyjf.com

Investor Relations:
Tony Tian, CFA
Weitian Group LLC
Email: tony.tian@weitian-ir.com
Phone: +1-732-910-9692

SINO FORTUNE HOLDING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS



March 31,

2017


December 31,

2016


(Unaudited)




ASSETS





Current assets






    Cash and cash equivalents

$

12,176,944


$

8,561,695

    Short-term investments


8,440,659



8,274,306

    Accounts receivable


131,196



281,038

    Prepayments


2,143,443



2,078,926

    Deposits and other receivables


776,944



792,849

Total current assets


23,669,186



19,988,814

Property and equipment - net


494,574



279,408

Intangible assets


16,093



17,745

Total assets

$

24,179,853


$

20,285,967

LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities






    Accounts payable and accrued liabilities

$

16,172


$

227,895

    Taxes payable


1,570,572



1,285,160

    Deferred tax liability


42,297



16,673

    Other payable


9,154,388



7,517,034

Total current liabilities


10,783,429



9,046,762







Total liabilities


10,783,429



9,046,762







Stockholders' equity






    Common stock, $0.001 par value, 2,990,000,000 shares authorized, 361,820,246 and
    361,820,246 shares issued and outstanding, respectively


361,820



361,820

    Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued 


-



-

    Additional paid-in capital


9,237,870



9,237,870

    Retained earnings 


4,303,769



2,310,480

    Accumulated other comprehensive loss


(507,035)



(670,965)

Total stockholders' equity


13,396,424



11,239,205

Total liabilities and stockholders' equity

$

24,179,853


$

20,285,967













The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

SINO FORTUNE HOLDING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

(Unaudited)








For The Three Months Ended March 31,

2017


2016

Revenues

$

7,886,899


$

5,560,142







Operating expenses






    Selling, general and administrative expenses


5,204,851



3,920,716

    Business and related taxes


44,217



26,739

    Depreciation


29,695



34,362

Total operating expenses


5,278,763



3,981,817

Income from Operations


2,608,136



1,578,325







Other income (expenses)






Interest income


30,852



32,684

Interest expense and bank charges


(1,747)



(4,826)

Other


(2,225)



(18,994)

Total other income 


26,880



8,864

Income before provision for income taxes


2,635,016



1,587,189

Provision for income taxes


(641,728)



(121,489)

Net income


1,993,288



1,465,700







Other comprehensive income 






    Net unrealized gain on investments (net of tax effect)


76,872



-

    Foreign currency translation adjustment


87,058



27,368

Total comprehensive income

$

2,157,218


$

1,493,068







Net income per common share - basic and diluted 

$

0.01


$

0.00







Weighted average number of common shares outstanding - basic and diluted


361,820,246



337,500,000













The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

SINO FORTUNE HOLDING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)








For The Three Months Ended March 31,

2017


2016

Cash flows from operating activities:






Net income 

$

1,993,288


$

1,465,700

Adjustments to reconcile net income to net cash provided by
 operating activities:






    Depreciation and amortization


29,695



34,362

    Changes in operating assets and liabilities:






        Accounts receivable


152,074



-

        Prepayments


(48,357)



58,549

        Deposit and other receivables


22,080



(1,270,142)

        Accounts payable and accrued liabilities


(212,965)



803,546

        Taxes payable


275,494



171,716

        Other payable


1,579,337



15,990

Net cash provided by operating activities


3,790,646



1,279,721







Cash flows from investing activities:






    Purchases of property and equipment


(240,959)



(268,221)

Net cash used in investing activities


(240,959)



(268,221)







Cash flows from financing activities:


-



-

Effect of exchange rate change


65,562



54,460







Cash and cash equivalents:






   Net increase 


3,615,249



1,065,960

   Balance at beginning of period


8,561,695



5,712,741

Balance at end of period

$

12,176,944


$

6,778,701







Supplemental Disclosures of Cash flow Information:






Cash received for interest income

$

30,852


$

32,780

Cash paid for interest

$

-


$

-

Cash paid for income taxes

$

170,144


$

-













The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sino-fortune-holding-corp-reports-first-quarter-2017-financial-results-300456577.html

Source: SINO FORTUNE HOLDING CORPORATIN

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