China Finance Online Co. Limited
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(Translation of registrant’s name into English)
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Hong Kong
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(Jurisdiction of incorporation or organization)
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9th Floor of Tower C, Corporate Square
NO.35 Financial Street, Xicheng District
Beijing, China 100033
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(Address of principal executive office)
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China Finance Online Co. Limited | |||
Date: March 23, 2015 | By: | /s/ Jun Wang | |
Name: | Jun Wang | ||
Title: | Chief Financial Officer |
Exhibit No. | Description | |
99.1 | CHINA FINANCE ONLINE REPORTS FOURTH QUARTER 2015 UNAUDITED FINANCIAL RESULTS |
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Net revenues were $18.8 million, compared with $26.5 million in the fourth quarter of 2013.
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Revenues from financial services were $13.3 million, compared with $20.4 million in the fourth quarter of 2013.
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Gross profit was $14.4 million, compared with $22.0 million in the fourth quarter of 2013.
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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.
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Net revenues were $83.7 million, an increase of 59% from $52.7 million for 2013.
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Revenues from financial services were $64.7 million, an increase of 93% from $33.5 million for 2013.
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Gross profit was $63.3 million, an increase of 50% from $42.2 million for 2013.
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Net loss attributable to China Finance Online was $7.2 million, compared with $8.6 million for 2013.
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our prospect and our ability to attract and continue to develop iTongu, Zhengquantong and Yinglibao;
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our prospect on building a comprehensive wealth management ecosystem through providing a fully-integrated online communication and securities-trading platform;
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our prospect on stabilization in cash attrition and improvement of our financial position;
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our initiatives to address customers’ demand for intuitive online investment platforms and alternative investment opportunities; and
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the market prospect of the business of securities-trading, securities investment advisory and wealth management.
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the changing customer needs, regulatory environment and market conditions that we are subject to;
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the uneven condition of the world and Chinese economy that could lead to volatility in the equity markets and affect our operating results in the coming quarters;
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the impact of the changing conditions of the mainland Chinese stock market, Hong Kong stock market and global financial market on our future performance;
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the unpredictability of the growth of new businesses, including our precious metal trading service;
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the degree to which our strategic collaborations with partners and our technological advancement will yield successful outcome;
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the prospect for China’s high-net-worth and middle-class households ;
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the prospect of equipping our customer specialists with new technology, tools and financial knowledge;
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wavering investor confidence that could impact our business; and
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possible non-cash goodwill, intangible assets and investment impairment may adversely affect our net income.
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China Finance Online Co. Limited
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
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(In thousands of U.S. dollars)
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Dec. 31, 2014
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Dec. 31, 2013
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Assets
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Current assets:
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Cash and cash equivalents
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32,538 | 36,371 | ||||
Restricted cash
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5 | 4 | ||||
Trust bank balances held on behalf of customers
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11,922 | 9,999 | ||||
Accounts receivable, net - others
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12,886 | 15,325 | ||||
Accounts receivable, net - Margin clients
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1,699 | 5,977 | ||||
Loan receivable
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10,296 | 10,333 | ||||
Consideration Receivable
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13,401 | 13,450 | ||||
Prepaid expenses and other current assets
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8,539 | 3,307 | ||||
Deferred tax assets, current
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926 | 1,114 | ||||
Total current assets
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92,212 | 95,880 | ||||
Long-term investments, net
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1,218 | 1,139 | ||||
Property and equipment, net
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4,863 | 3,868 | ||||
Acquired intangible assets, net
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2,185 | 7,545 | ||||
Rental deposits
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1,388 | 1,115 | ||||
Goodwill
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7,090 | 16,974 | ||||
Deferred tax assets, non-current
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72 | 94 | ||||
Other deposits
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4,874 | 6,877 | ||||
Total assets
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113,902 | 133,492 | ||||
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Liabilities and equity
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Current liabilities:
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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)
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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)
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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)
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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)
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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)
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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)
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314 | 459 | ||||
Total current liabilities
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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)
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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)
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1,373 | 1,986 | ||||
Total liabilities
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38,360 | 43,074 | ||||
Noncontrolling interests
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10,926 | 14,646 | ||||
Total China Finance Online Co. Limited Shareholders' equity
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64,616 | 75,772 | ||||
Total liabilities and equity
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113,902 | 133,492 |
China Finance Online Co. Limited
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
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(in thousands of U.S. dollars, except share and ADS related data)
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Three months ended
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The year ended
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Dec. 31, 2014
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Dec. 31, 2013
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Sep. 30, 2014
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Dec. 31, 2014
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Dec. 31, 2013
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Net revenues
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18,780 | 26,481 | 21,138 | 83,696 | 52,738 | ||||||||||
Cost of revenues
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(4,388 | ) | (4,476 | ) | (5,116 | ) | (20,353 | ) | (10,570 | ) | |||||
Gross profit
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14,392 | 22,005 | 16,022 | 63,343 | 42,168 | ||||||||||
Operating expenses
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General and administrative(includes share-based compensation expenses of $(114), $2,120, $3,451, $4,534 and $2,985, respectively)
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(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)
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(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)
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(3,386 | ) | (2,228 | ) | (2,626 | ) | (11,148 | ) | (9,033 | ) | |||||
Loss from impairment of intangible assets
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- | (1,802 | ) |
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Loss from impairment of goodwill
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- | (8,150 | ) |
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Total operating expenses
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(16,397 | ) | (23,006 | ) | (18,125 | ) | (82,454 | ) | (54,831 | ) | |||||
Government subsidies
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206 | - | 169 | 659 | 11 | ||||||||||
Loss from operations
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(1,799 | ) | (1,001 | ) | (1,934 | ) | (18,452 | ) | (12,652 | ) | |||||
Interest income
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1,139 | 424 | 1,022 | 4,045 | 1,341 | ||||||||||
Interest expense
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(1 | ) | (1 | ) | (1 | ) | (12 | ) | (196 | ) | |||||
Short-term investment income, net
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36 | 81 | 39 | 59 | 131 | ||||||||||
Cost method investment income
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4,338 |
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4,338 |
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Equity method investment income
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2,774 |
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2,774 | ||||||||||
Other income (loss), net
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(573 | ) | 337 | 12 | 19 | (29 | ) | ||||||||
Exchange gain (loss), net
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63 | 148 | 14 | (113 | ) | 557 | |||||||||
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Income (loss) before income tax benefits (expenses)
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3,203 | 2,762 | (848 | ) | (10,116 | ) | (8,074 | ) | |||||||
Income tax benefits (expenses)
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(66 | ) | 377 | (60 | ) | (514 | ) | (100 | ) | ||||||
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Net income (loss)
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3,137 | 3,139 | (908 | ) | (10,630 | ) | (8,174 | ) | |||||||
Less: Net income (loss) attributable to the noncontrolling interest
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(478 | ) | 1,282 | 1,498 | (3,463 | ) | 399 | ||||||||
Net income (loss) attributable to China Finance Online Co. Limited
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3,615 | 1,857 | (2,406 | ) | (7,167 | ) | (8,573 | ) | |||||||
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Net income (loss)
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3,137 | 3,139 | (908 | ) | (10,630 | ) | (8,174 | ) | |||||||
Changes in foreign currency translation adjustment
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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
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- | (11 | ) | - |
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Other comprehensive income (loss), net of tax
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255 | 374 | (31 | ) | (222 | ) | 1,196 | ||||||||
Comprehensive income (loss)
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3,392 | 3,513 | (939 | ) | (10,852 | ) | (6,978 | ) | |||||||
Less: comprehensive income (loss) attributable to noncontrolling interest
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(478 | ) | 1,282 | 1,498 | (3,463 | ) | 399 | ||||||||
Comprehensive income (loss) attributable to China Finance Online Co. Limited
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3,870 | 2,231 | (2,437 | ) | (7,389 | ) | (7,377 | ) | |||||||
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Net income (loss) per share attributable to China Finance Online Co. Limited
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Basic
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0.03 | 0.02 | (0.02 | ) | (0.07 | ) | (0.08 | ) | |||||||
Diluted
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0.03 | 0.02 | (0.02 | ) | (0.07 | ) | (0.08 | ) | |||||||
Loss per ADS
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Basic
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0.16 | 0.09 | (0.11 | ) | (0.33 | ) | (0.39 | ) | |||||||
Diluted
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0.14 | 0.08 | (0.11 | ) | (0.33 | ) | (0.39 | ) | |||||||
Weighted average ordinary shares
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Basic
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109,767,868 | 109,060,617 | 109,338,747 | 109,385,712 | 109,019,513 | ||||||||||
Diluted
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124,990,589 | 118,921,336 | 109,338,747 | 109,385,712 | 109,019,513 | ||||||||||
Weighted average ADSs
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Basic
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21,953,574 | 21,812,123 | 21,867,749 | 21,877,142 | 21,803,903 | ||||||||||
Diluted
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24,998,118 | 23,784,267 | 21,867,749 | 21,877,142 | 21,803,903 |