BEIJING, Nov. 29, 2021 /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
fintech-powered online access to securities trading services,
wealth management products, securities investment advisory
services, as well as financial database and analytics services to
institutional customers, today announced its unaudited financial
results for the first half ended June 30,
2021.
First Half of 2021 Financial Highlights
- Net revenues were $14.8
million
- Revenues from the subscription service from institutional
customers posted solid growth with an increase of 28.6% from the
first half of 2020 and an increase of 13.8% from the second half of
2020
- Net loss attributable to China Finance Online was $5.1 million, compared with a net loss of
$3.4 million in the first half of
2020 and $7.1 million in the second
half of 2020
Dr. Z. James Chen, Chairman and
Chief Executive Officer of China Finance Online, commented, "Since
the senior management change in late May, we introduced sweeping
restructuring measures to cut costs and boost efficiency and
repositioned our focus on each business unit's profitability. The
Company has achieved operational stability over the past four
months since July. Excluding the restructuring related
non-recurring expenses, the Company is targeting to reach breakeven
operating results for the second half of 2021."
First Half of 2021 Financial Results
Net revenues were $14.8 million,
compared with $19.6 million during
the first half of 2020 and $20.5
million in the second half of 2020, respectively. In the
first half of 2021, revenues from financial services, the financial
information and advisory business, advertising business and
enterprise value-added services contributed 35%, 36%, 19% and 10%
of the net revenues, respectively, compared with 37%, 42%, 12% and
9%, respectively, for the corresponding period in 2020.
Revenues from financial services were $5.1 million, compared with $7.3 million in the first half of 2020 and
$5.8 million in the second half of
2020, respectively, mainly due to reduced revenue from the equity
brokerage business which was affected by the softer Hong Kong stock market.
Revenues from the financial information and advisory business
were $5.3 million, compared with
$8.1 million in the first half of
2020 and $9.3 million in the second
half of 2020, respectively. Revenues from the financial information
and advisory business were mainly comprised of subscription
services from individual and institutional customers and financial
advisory services. The decreases in revenues from the financial
information and advisory business were mainly due to the slow-down
of our advisory services for individual investors as dramatic
policy changes and resurgent of COVID Delta cases dampened retail
investors' confidence. However, during the first half of 2021,
subscription service from institutional customers posted solid
growth with an increase of 28.6% from the first half of 2020 and an
increase of 13.8% from the second half of 2020.
Revenues from the advertising business grew 19.3% to
$2.8 million from $2.3 million in the first half of 2020 and
compared with $3.2 million in the
second half of 2020.
Revenues from enterprise value-added services were $1.6 million, compared with $1.7 million in the first half of 2020 and
$2.0 million in the second half of
2020, mainly due to the weaker market condition which deterred
corporates' decision on marketing spending.
Gross profit was $8.3 million,
compared with $12.1 million in the
first half of 2020 and $13.6 million
in the second half of 2020. Gross margin in the first half was
55.9%, compared with 61.7% in the first half of 2020 and 66.6% in
the second half of 2020. The year-over-year decrease in gross
margin was mainly due to lower advertising revenue and softer
enterprise value-added services business.
General and administrative expenses were $4.1 million, compared with $4.5 million in the first half of 2020 and
$6.9 million in the second half of
2020. The year-over-year decrease was mainly attributable to bad
debt provision in our equity brokerage business.
Sales and marketing expenses were $6.3
million, compared with $7.5
million in the first half of 2020 and $10.0 million in the second half of 2020. The
year-over-year decrease was mainly attributable to effective cost
control measures we adopted.
Research and development expenses were $4.1 million, compared with $4.0 million in the first half of 2020 and
$4.1 million in the second half of
2020. The year-over-year increase was mainly attributable to
one-time non-recurring severance expenses associated with
downsizing the R&D team. In the past few years, the Company has
completed the development of its fintech capabilities and related
products.
Total operating expenses were $14.5
million, compared with $15.9
million in the first half of 2020 and $21.0 million in the second half of 2020.
Loss from operations was $6.2
million, compared with a loss from operations of
$3.8 million in the first half of
2020 and a loss from operations of $7.3
million in the second half of 2020.
Net loss attributable to China Finance Online was $5.1 million, compared with a net loss of
$3.4 million in the first half of
2020 and $7.1 million in the second
half of 2020.
Loss per American Depository Shares ("ADS") attributable to
China Finance Online was $2.19 for
the first half of 2021, compared with loss per ADS of $1.41 for the first half of 2020 and loss per ADS
of $3.11 for the second half of 2020.
Basic and diluted weighted average numbers of ADSs for the first
half of 2021 were 2.3 million, compared with basic and diluted
weighted average number of ADSs of 2.4 million for the first half
of 2020 and 2.3 million for the second half of 2020. Each ADS
represents fifty ordinary shares of the Company.
Recent Developments
On September 14th, the
Company announced that it had raised an aggregate of $1,174,020 for additional working capital from
management and a private investor in August and September. The
Company, in a private placement, entered into securities purchase
agreements with Mr. Zheng James
Chen, Mr. Frank J. Mitsch and
Ms. Ying Zhu, each a director of the
Company, and several senior Company management persons (the
"Management SPA"). Pursuant to the Management SPA, the Company will
issue 3,940,050 ordinary shares (exchangeable to 78,801 ADSs) for
an aggregate purchase price of $400,320 and warrants with a purchase price of
$0.10 per warrant. The warrants are
exercisable for five years to purchase up to 78,801 ADSs, of which
half are exercisable at $5.98 per ADS
and half are exercisable at $6,98 per
ADS. The per share purchase price equals the closing trading price
of the Company's ADS ($4.98 per ADS)
on Nasdaq on September 10, 2021 (the
date immediately preceding the signing of the Management SPA). Each
ADS represents 50 ordinary shares of the Company. The Company's
independent directors have approved the transactions contemplated
under the management SPA. The Company also entered into a
securities purchase agreement with an accredited investor for the
sale of ordinary shares and warrants (the "Investor SPA"). The
Investor SPA replaces the securities purchase agreement previously
announced on August 16, 2021.
Pursuant to the Investor SPA, the Company will issue 7,615,150
ordinary shares (exchangeable to 152,303 ADSs) for an aggregate
purchase price of $773,700. The per
share purchase price equals the closing trading price of the
Company's ADS ($4.98 per ADS) on
Nasdaq on September 10, 2021 (the
date immediately preceding the signing of the Investor SPA), plus
warrants with a purchase price of $0.10 per warrant. The warrants are exercisable
for five years to purchase up to 152,303 ADSs, of which half are
exercisable at $5.98 per ADS and half
are exercisable at $6.98 per ADS.
These transactions are subject to customary closing conditions and
the closings are expected to take place in the near future.
- Board of Directors Change
Ms. Xin Yue Jasmine Geffner has
resigned as an independent director and chairman of Audit Committee
of the board of directors of the Company (the "Board") for personal
reasons, effective as of November 14,
2021. The resignation of Ms. Geffner did not result from any
disagreement with the Company on any matter relating to the
Company's operations, policies or practices. The Board would like
to take this opportunity to express its gratitude to Ms. Geffner
for her contributions to the Company.
About China Finance Online
China Finance Online Co. Limited is a leading web-based
financial services company that provides Chinese retail investors
with fintech-powered online access to securities trading services,
wealth management products, securities investment advisory
services, as well as financial database and analytics services to
institutional customers. The Company's prominent flagship portal
site, www.jrj.com, is 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.
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:
- Liquidity and sources of funding, including our ability to
continue operating as a going concern.
- 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, substantial doubt about ability to
continue as a going concern, the outbreak of COVID-19 or other
health epidemics in China or
globally, 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, Hong Kong
stock market and global financial markets on our future
performance; the unpredictability of our strategic transformation
and growth of new businesses; the prospect of our margin-related
business and the degree to which our implementation of margin
account screening and ongoing monitoring will yield successful
outcomes; the degree to which our strategic collaborations with
partners will yield successful outcomes; the prospects for
China's high-net-worth and
middle-class households; the prospects of equipping our customer
specialists with new technology, tools and financial knowledge;
wavering investor confidence that could impact our business; and
possible non-cash goodwill, intangible assets and investment
impairments may adversely affect our net income. Furthermore, we
have recurring losses from operation and inability to generate
sufficient cash flow to meet our obligation and sustain our
operations and face uncertainty as to the operation impact of the
COVID-19 outbreak, that raise substantial doubt about our ability
to continue as a going concern. 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.
For more information, please contact:
China Finance Online
+86-10-8336-3100
ir@jrj.com
Kevin Theiss
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)
|
|
|
|
Jun. 30,
2021
|
|
|
Dec. 31,
2020
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
7,543
|
|
|
|
6,155
|
|
|
Prepaid expenses and
other current assets
|
|
|
2,799
|
|
|
|
3,175
|
|
|
Trust bank balances
held on behalf of customers
|
|
|
28,932
|
|
|
|
34,309
|
|
|
Accounts receivable -
margin clients
|
|
|
9,069
|
|
|
|
10,545
|
|
|
Accounts receivable -
others
|
|
|
12,878
|
|
|
|
14,067
|
|
|
Short-term
investments
|
|
|
—
|
|
|
-
|
|
|
Total current
assets
|
|
|
61,221
|
|
|
|
68,251
|
|
|
Property and
equipment, net
|
|
|
2,916
|
|
|
|
3,346
|
|
|
Acquired intangible
assets, net
|
|
|
63
|
|
|
|
64
|
|
|
Equity investments
without readily determinable fair value
|
|
|
1,254
|
|
|
|
1,241
|
|
|
Equity method
investment, net
|
|
-
|
|
|
-
|
|
|
Right-of-use
assets
|
|
|
2,472
|
|
|
|
2,073
|
|
|
Rental
deposits
|
|
|
752
|
|
|
|
793
|
|
|
Goodwill
|
|
|
109
|
|
|
|
109
|
|
|
Guarantee fund
deposits
|
|
|
219
|
|
|
|
219
|
|
|
Deferred tax
assets
|
|
|
1,874
|
|
|
|
1,861
|
|
|
Total
assets
|
|
|
70,880
|
|
|
|
77,957
|
|
|
|
|
|
|
|
|
|
|
|
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
$11,634 and $12,326 as of Jun 30, 2021 and December 31, 2020,
respectively)
|
|
|
12,394
|
|
|
|
13,157
|
|
|
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 $7,920 and $7,370 as of Jun 30, 2021 and
December 31,
2020, respectively)
|
|
|
19,338
|
|
|
|
16,626
|
|
|
Short-term
loan
|
|
|
1,288
|
|
|
-
|
|
|
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 $889 and $2,351 as of Jun 30, 2021 and December 31,
2020, respectively)
|
|
|
28,932
|
|
|
|
34,309
|
|
|
Accounts payable
(including accounts payable of the consolidated variable
interest
entities without recourse to China Finance Online Co. Limited $561
and $338 as of Jun
30, 2021 and December 31, 2020, respectively)
|
|
|
4,099
|
|
|
|
4,025
|
|
|
Lease liabilities,
current (including lease liabilities, current of the consolidated
variable
interest entities without recourse to China Finance Online Co.
Limited $206 and $525 as
of Jun 30, 2021 and December 31, 2020, respectively)
|
|
|
1,282
|
|
|
|
1,727
|
|
|
Income taxes payable
(including income taxes payable of the consolidated variable
interest entities without recourse to China Finance Online Co.
Limited $(2) and $56 as
of Jun 30, 2021 and December 31, 2020, respectively)
|
|
|
(96)
|
|
|
|
86
|
|
|
Total current
liabilities
|
|
|
67,237
|
|
|
|
69,930
|
|
|
Loan from third
party
|
|
|
3,226
|
|
|
|
3,194
|
|
|
Deferred revenue,
non-current (including deferred revenue, non-current of the
consolidated variable interest entities without recourse to China
Finance Online Co.
Limited nil and nil as of Jun 30, 2021 and December 31, 2020,
respectively)
|
|
|
105
|
|
|
|
114
|
|
|
Deferred tax
liabilities (including deferred tax liabilities of the consolidated
variable
interest entities without recourse to China Finance Online
Co.Limited nil and nil as of
Jun 30, 2021 and December 31, 2020, respectively)
|
|
|
12
|
|
|
|
12
|
|
|
Lease liabilities,
non-current (including lease liabilities, non-current of the
consolidated
variable interest entities without recourse to China Finance Online
Co. Limited $20 and
$236 as of Jun 30, 2021 and December 31, 2020,
respectively)
|
|
|
1,049
|
|
|
|
68
|
|
|
Total
liabilities
|
|
|
71,629
|
|
|
|
73,318
|
|
|
Total China Finance
Online Co. Limited Shareholders' equity
|
|
|
10,513
|
|
|
|
15,359
|
|
|
Noncontrolling
interests
|
|
|
(11,262)
|
|
|
|
(10,720)
|
|
|
Total shareholders'
equity
|
|
|
(749)
|
|
|
|
4,639
|
|
|
Total liabilities and
equity
|
|
|
70,880
|
|
|
|
77,957
|
|
|
China Finance Online
Co. Limited
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
(in thousands of U.S.
dollars, except share and ADS related data)
|
|
|
|
Six months
ended
|
|
|
|
Jun. 30,
2021
|
|
|
Jun. 30,
2020
|
|
|
Dec.31,
2020
|
|
|
Net
revenues
|
|
|
14,809
|
|
|
|
19,580
|
|
|
|
20,453
|
|
|
Cost of
revenues
|
|
|
(6,532)
|
|
|
|
(7,500)
|
|
|
|
(6,827)
|
|
|
Gross
profit
|
|
|
8,277
|
|
|
|
12,080
|
|
|
|
13,626
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative (including share-based compensation of $302,
$500
and $328 respectively)
|
|
|
(4,146)
|
|
|
|
(4,480)
|
|
|
|
(6,861)
|
|
|
Product development
(including share-based compensation of $19, $61 and
$53, respectively)
|
|
|
(4,057)
|
|
|
|
(3,975)
|
|
|
|
(4,134)
|
|
|
Sales and marketing
(including share-based compensation of $5, $7 and $38,
respectively)
|
|
|
(6,317)
|
|
|
|
(7,456)
|
|
|
|
(9,963)
|
|
|
Total operating
expenses
|
|
|
(14,520)
|
|
|
|
(15,911)
|
|
|
|
(20,958)
|
|
|
Loss from
operations
|
|
|
(6,243)
|
|
|
|
(3,831)
|
|
|
|
(7,332)
|
|
|
Interest
income
|
|
|
7
|
|
|
|
13
|
|
|
|
5
|
|
|
Interest
expense
|
|
|
(15)
|
|
|
-
|
|
|
-
|
|
|
Exchange gain (loss),
net
|
|
|
(139)
|
|
|
|
(26)
|
|
|
|
(201)
|
|
|
Loss on the interest
sold and retained noncontrolling
investment
|
|
|
—
|
|
|
-
|
|
|
|
—
|
|
|
Loss from equity
investments without readily determinable fair value
|
|
-
|
|
|
-
|
|
|
|
(449)
|
|
|
Income (loss) from
equity method investment
|
|
|
(1)
|
|
|
|
(2)
|
|
|
|
(773)
|
|
|
Other income
(expense), net
|
|
|
732
|
|
|
|
308
|
|
|
|
755
|
|
|
Loss before income
tax expenses
|
|
|
(5,659)
|
|
|
|
(3,538)
|
|
|
|
(7,995)
|
|
|
Income tax
expense
|
|
|
49
|
|
|
|
(176)
|
|
|
|
359
|
|
|
Net loss
|
|
|
(5,610)
|
|
|
|
(3,714)
|
|
|
|
(7,636)
|
|
|
Less: Net loss
attributable to the
noncontrolling
interest
|
|
|
(560)
|
|
|
|
(305)
|
|
|
|
(487)
|
|
|
Net loss attributable
to China Finance
Online Co.
Limited
|
|
|
(5,050)
|
|
|
|
(3,409)
|
|
|
|
(7,149)
|
|
|
Other comprehensive
income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in foreign
currency translation adjustment
|
|
|
(106)
|
|
|
|
181
|
|
|
|
(307)
|
|
|
Other comprehensive
income (loss), net of tax
|
|
|
(106)
|
|
|
|
181
|
|
|
|
(307)
|
|
|
Comprehensive
loss
|
|
|
(5,716)
|
|
|
|
(3,533)
|
|
|
|
(7,943)
|
|
|
Less: comprehensive
loss attributable to noncontrolling interest
|
|
|
(560)
|
|
|
|
(305)
|
|
|
|
(487)
|
|
|
Comprehensive income
(loss) attributable to China Finance
Online
Co. Limited
|
|
|
(5,156)
|
|
|
|
(3,228)
|
|
|
|
(7,456)
|
|
|
Net income (loss) per
share attributable to China Finance
Online
Co. Limited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
(0.04)
|
|
|
|
(0.03)
|
|
|
|
(0.06)
|
|
|
Net income (loss) per
ADS attributable to China Finance
Online
Co. Limited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
(2.19)
|
|
|
|
(1.41)
|
|
|
|
(3.11)
|
|
|
Weighted average
ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
115,060,781
|
|
|
|
121,268,456
|
|
|
|
115,060,781
|
|
|
Weighted average
ADSs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
2,301,216
|
|
|
|
2,425,369
|
|
|
|
2,301,216
|
|
View original
content:https://www.prnewswire.com/news-releases/china-finance-online-reports-first-half-of-2021-unaudited-financial-results-301432861.html
SOURCE China Finance Online Co., Ltd.