BEIJING, March 24, 2015 /PRNewswire/ -- China Finance Online Co. Limited ("China Finance Online", or the "Company", "we", "us" or "our") (NASDAQ GS: JRJC), a leading web-based financial services company that provides Chinese retail investors with online access to securities and commodities trading, wealth management products, investment advisory services, as well as financial database and analytics services to institutional customers, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2014.
Fourth Quarter 2014 Summary
Fiscal Year 2014 Summary
"We continued to strengthen our core competence by optimizing our operations and developing new products and services. Last year, we launched our new and applauded Investment Masters (iTougu) application facilitating communication between securities investment advisors and their respective clients and followers in real-time and for 24 hours a day, and enabling a vast number of Chinese individual investors to obtain private advice from thousands of securities investment advisors. We continued to expand our partnerships with more securities firms on our web-based trading platform, Securities Master (Zhengquantong) and continued to diversify our product offerings on our wealth management platform, Yinglibao," Mr. Zhiwei Zhao, Chairman and CEO of China Finance Online stated. "With the policy of promoting the healthy development of Internet finance and improving financial supervision and coordination mechanism, we continue to remain confident in the long-term prospect of becoming a one-stop financial products and service provider in China, and 'Making Investment Easier' for our clients and users."
Fourth Quarter 2014 Financial Results
Net revenues for the fourth quarter of 2014 were $18.8 million, a decrease of 29% from $26.5 million for the corresponding period in 2013. The Company's net revenues are categorized under: (a) revenues from financial services, which include brokerage-related and precious metals trading services; (b) revenues from financial information and advisory business, which include subscription services from individual and institutional customers; and (c) revenues from advertising services. During the fourth quarter of 2014, revenues from financial services, financial information and advisory business and advertising services contributed 71%, 13% and 15% of our net revenues, respectively, compared with 77%, 11%, and 9%, respectively, for the corresponding period in 2013.
Revenues from financial services were $13.3 million, a decrease of 35% from $20.4 million in the fourth quarter of 2013 and a decrease of 22% from $17.1 million in the third quarter of 2014. Revenues from financial information and advisory business were $2.5 million, a decrease of 16% from $2.9 million in the fourth quarter of 2013 and an increase of 8% from $2.3 million in the third quarter of 2014. Revenues from advertising were $2.9 million, an increase of 17% from $2.5 million in the fourth quarter of 2013 and an increase of 63% from $1.8 million in the third quarter of 2014.
Gross profit was $14.4 million, a decrease of 35% from $22.0 million in the fourth quarter of 2013 and a decrease of 10% from $16.0 million in the third quarter of 2014. Gross margin in the fourth quarter for 2014 was 77% compared with 83% in the fourth quarter for 2013 and 76% in the third quarter for 2014.
General and administrative ("G&A") expenses were $3.3 million, a decrease of 36% from $5.3 million in the fourth quarter of 2013, primarily due to a decreased share-based compensation expenses, and a decrease of 48% from $6.4 million in the third quarter for 2014.
Sales and marketing ("S&M") expenses were $9.7 million, a decrease of 38% from $15.5 million in the fourth quarter of 2013, primarily due to lower marketing expenses and sales commissions, and an increase of 6% from $9.1 million in the third quarter for 2014.
Research and development ("R&D") expenses were $3.4 million, an increase of 52% from $2.2 million in the fourth quarter of 2013 and an increase of 29% from $2.6 million in the third quarter for 2014. The Company expects to continue to invest in its data, product and technical capabilities to achieve the Company's long term strategic plan.
Loss from operations was $1.8 million, compared with $1.0 million in the fourth quarter of 2013 and $1.9 million in the third quarter of 2014.
Net income attributable to China Finance Online was $3.6 million, an increase of 95% from $1.9 million in the fourth quarter of 2013, compared to a net loss of $2.4 million in the third quarter of 2014.
Fully diluted earnings per ADS was $0.14 for the fourth quarter of 2014, compared with $0.08 for the fourth quarter of 2013. Basic and diluted weighted average number of ADS for the fourth quarter of 2014 were 21.9 million and 25.0 million, respectively. Each ADS represents five ordinary shares of the Company.
Fiscal Year 2014 Financial Results
Net revenues for the fiscal year of 2014 were $83.7 million, an increase of 59% from $52.7 million for 2013.
Gross profit was $63.3 million, an increase of 50% from $42.2 million for 2013. Gross margin in 2014 was 76% compared with 80% for 2013.
Net loss attributable to China Finance Online was $7.2 million, compared with $8.6 million for 2013.
As of December 31, 2014, total cash and cash equivalents were $32.5 million, compared with $25.3 million as of September 30, 2014, and $36.4 million as of December 31, 2013.
Total shareholders' equity of China Finance Online was $64.6 million as of December 31, 2014.
Conference Call Information
The management will host a conference call and a simultaneous webcast on March 23, 2014 at 8:00 p.m. U.S. Eastern Time (March 24, 2014 at 8:00 a.m. Beijing/Hong Kong time). Interested parties may participate in the conference call by dialing the following numbers approximately five minutes before the call starts.
US: 1-800-742-9301
Hong Kong: 800-906-648
Singapore: 800-616-2313
China: 800-870-0210/400-120-3170
Conference: ID: 13402522
A replay of the conference call will be available shortly after the conclusion of the event through 8:30 p.m. Eastern Time on March 30, 2015. The dial-in details for the replay are:
US: 1-855-452-5696
Hong Kong: 800-963-117
Singapore: 800-616-2305
China: 800-870-0206/400-602-2065
Conference ID: 13402522
A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://edge.media-server.com/m/p/o9zu328i
About China Finance Online
China Finance Online Co. Limited is a leading web-based financial services company in China. The company provides Chinese retail investors with online access to securities and commodities trading services, wealth management products, securities investment advisory services, as well as financial database and analytics services to institutional customers. The Company's two prominent flagship portal sites, www.jrj.com and www.stockstar.com, are ranked among the top financial websites in China. In addition to the web-based securities trading platform, the Company offers basic financial software, information services and securities investment advisory services to retail investors in China. Through its subsidiary, Shenzhen Genius Information Technology Co., Ltd., the Company provides financial database and analytics to institutional customers including domestic financial, research, academic and regulatory institutions. China Finance Online also provides brokerage services in Hong Kong. For more information, please visit http://www.chinafinanceonline.com.
Safe Harbor Statement
This press release contains forward-looking statements. These statements 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. 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:
Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which risks and uncertainties include, among others, the following:
Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F under "Forward-Looking Information" and "Risk Factors". The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
China Finance Online Co. Limited |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(In thousands of U.S. dollars) |
||
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Assets |
||
Current assets: |
||
Cash and cash equivalents |
32,538 |
36,371 |
Restricted cash |
5 |
4 |
Trust bank balances held on behalf of customers |
11,922 |
9,999 |
Accounts receivable, net - others |
12,886 |
15,325 |
Accounts receivable, net - Margin clients |
1,699 |
5,977 |
Loan receivable |
10,296 |
10,333 |
Consideration Receivable |
13,401 |
13,450 |
Prepaid expenses and other current assets |
8,539 |
3,307 |
Deferred tax assets, current |
926 |
1,114 |
Total current assets |
92,212 |
95,880 |
Long-term investments, net |
1,218 |
1,139 |
Property and equipment, net |
4,863 |
3,868 |
Acquired intangible assets, net |
2,185 |
7,545 |
Rental deposits |
1,388 |
1,115 |
Goodwill |
7,090 |
16,974 |
Deferred tax assets, non-current |
72 |
94 |
Other deposits |
4,874 |
6,877 |
Total assets |
113,902 |
133,492 |
Liabilities and equity |
||
Current liabilities: |
||
Deferred revenue, current (including deferred revenue, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $2,954 and $3,808 as of December 31,2014 and December 31,2013, respectively) |
4,936 |
6,150 |
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 $6,282 and $7,460 as of December 31,2014 and December 31, 2013, respectively) |
8,837 |
9,696 |
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 $399 and $648 as of December 31,2014 and December 31, 2013, respectively) |
11,922 |
9,999 |
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $1,879 and $5,520 as of December 31, 2014 and December 31, 2013, respectively) |
9,852 |
12,573 |
Deferred tax liability, current (including deferred tax liability, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $578 and $325 as of December 31, 2014 and December 31, 2013, respectively) |
580 |
325 |
Income taxes payable (including income taxes payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $301 and $414 as of December 31,2014 and December 31,2013, respectively) |
314 |
459 |
Total current liabilities |
36,441 |
39,202 |
Deferred tax liability, non-current (including deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $546 and $1,886 as of December 31, 2014 and December 31, 2013, respectively) |
546 |
1,886 |
Deferred revenue, non-current (including deferred revenue, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $353 and $633 as of December 31,2014 and December 31,2013, respectively) |
1,373 |
1,986 |
Total liabilities |
38,360 |
43,074 |
Noncontrolling interests |
10,926 |
14,646 |
Total China Finance Online Co. Limited Shareholders' equity |
64,616 |
75,772 |
Total liabilities and equity |
113,902 |
133,492 |
China Finance Online Co. Limited |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||||
(in thousands of U.S. dollars, except share and ADS related data) |
|||||
Three months ended |
The year ended |
||||
Dec. 31, 2014 |
Dec. 31, 2013 |
Sep. 30, 2014 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Net revenues |
18,780 |
26,481 |
21,138 |
83,696 |
52,738 |
Cost of revenues |
(4,388) |
(4,476) |
(5,116) |
(20,353) |
(10,570) |
Gross profit |
14,392 |
22,005 |
16,022 |
63,343 |
42,168 |
Operating expenses |
|||||
General and administrative(includes share-based compensation expenses of $(114), $2,120, $3,451, $4,534 and $2,985, respectively) |
(3,342) |
(5,259) |
(6,375) |
(17,593) |
(15,210) |
Sales and marketing (includes share-based compensation expenses of $35, $6, $5, $52 and $10, respectively) |
(9,669) |
(15,519) |
(9,124) |
(43,761) |
(30,588) |
Product development (includes share-based compensation expenses of $55, $22, $15, $114 and $40, respectively) |
(3,386) |
(2,228) |
(2,626) |
(11,148) |
(9,033) |
Loss from impairment of intangible assets |
- |
- |
- |
(1,802) |
- |
Loss from impairment of goodwill |
- |
- |
- |
(8,150) |
- |
Total operating expenses |
(16,397) |
(23,006) |
(18,125) |
(82,454) |
(54,831) |
Government subsidies |
206 |
- |
169 |
659 |
11 |
Loss from operations |
(1,799) |
(1,001) |
(1,934) |
(18,452) |
(12,652) |
Interest income |
1,139 |
424 |
1,022 |
4,045 |
1,341 |
Interest expense |
(1) |
(1) |
(1) |
(12) |
(196) |
Short-term investment income, net |
36 |
81 |
39 |
59 |
131 |
Cost method investment income |
4,338 |
- |
- |
4,338 |
- |
Equity method investment income |
- |
2,774 |
- |
- |
2,774 |
Other income (loss), net |
(573) |
337 |
12 |
19 |
(29) |
Exchange gain (loss), net |
63 |
148 |
14 |
(113) |
557 |
Income (loss) before income tax benefits (expenses) |
3,203 |
2,762 |
(848) |
(10,116) |
(8,074) |
Income tax benefits (expenses) |
(66) |
377 |
(60) |
(514) |
(100) |
Net income (loss) |
3,137 |
3,139 |
(908) |
(10,630) |
(8,174) |
Less: Net income (loss) attributable to the noncontrolling interest |
(478) |
1,282 |
1,498 |
(3,463) |
399 |
Net income (loss) attributable to China Finance Online Co. Limited |
3,615 |
1,857 |
(2,406) |
(7,167) |
(8,573) |
Net income (loss) |
3,137 |
3,139 |
(908) |
(10,630) |
(8,174) |
Changes in foreign currency translation adjustment |
255 |
385 |
(31) |
(222) |
1,196 |
Net unrealized gain on available-for-sale securities, net of tax effects of nil, $(4), nil, nil and nil, respectively |
- |
(11) |
- |
- |
- |
Other comprehensive income (loss), net of tax |
255 |
374 |
(31) |
(222) |
1,196 |
Comprehensive income (loss) |
3,392 |
3,513 |
(939) |
(10,852) |
(6,978) |
Less: comprehensive income (loss) attributable to noncontrolling interest |
(478) |
1,282 |
1,498 |
(3,463) |
399 |
Comprehensive income (loss) attributable to China Finance Online Co. Limited |
3,870 |
2,231 |
(2,437) |
(7,389) |
(7,377) |
Net income (loss) per share attributable to China Finance Online Co. Limited |
|||||
Basic |
0.03 |
0.02 |
(0.02) |
(0.07) |
(0.08) |
Diluted |
0.03 |
0.02 |
(0.02) |
(0.07) |
(0.08) |
Loss per ADS |
|||||
Basic |
0.16 |
0.09 |
(0.11) |
(0.33) |
(0.39) |
Diluted |
0.14 |
0.08 |
(0.11) |
(0.33) |
(0.39) |
Weighted average ordinary shares |
|||||
Basic |
109,767,868 |
109,060,617 |
109,338,747 |
109,385,712 |
109,019,513 |
Diluted |
124,990,589 |
118,921,336 |
109,338,747 |
109,385,712 |
109,019,513 |
Weighted average ADSs |
|||||
Basic |
21,953,574 |
21,812,123 |
21,867,749 |
21,877,142 |
21,803,903 |
Diluted |
24,998,118 |
23,784,267 |
21,867,749 |
21,877,142 |
21,803,903 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/china-finance-online-reports-fourth-quarter-and-fiscal-year-2014-unaudited-financial-results-300054414.html
