10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

☐   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number:  001-36055

China Commercial Credit, Inc.

(Exact name of registrant as specified in its charter)

Delaware	45-4077653
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

No.1688,Yunli Road, Tongli

Wujiang, Jiangsu Province

People’s Republic of China

(Address of principal executive offices)

(86-0512) 6396-0022

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. ☐

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐    No ☒

As of November 22, 2015, 12,390,062 shares of the Company’s common stock, $0.001 par value per share, were issued and outstanding.

CHINA COMMERCIAL CREDIT, INC.

FORM 10-Q

INDEX

		Page Number
NOTE REGARDING FORWARD-LOOKING STATEMENTS		3
PART I.  FINANCIAL INFORMATION		4
Item 1.	Financial Statements	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	65
Item 4.	Controls and Procedures	65
PART II.  OTHER INFORMATION		67
Item 1.	Legal Proceedings	67
Item 1A.	Risk Factors	69
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	69
Item 3.	Defaults Upon Senior Securities	69
Item 4.	Mine Safety Disclosures	69
Item 5.	Other Information	69
Item 6.	Exhibits	69
SIGNATURES		70

2

Note Regarding Forward-Looking Statements

The information contained in this Quarterly Report on Form 10-Q includes some statements that are not purely historical and that are “forward-looking statements.” Such forward-looking statements include, but are not limited to, statements regarding our company and our management’s expectations, hopes, beliefs, intentions or strategies regarding the future, including our financial condition and results of operations. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipates,” “believes,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “possible,” “potential,” “predicts,” “projects,” “seeks,” “should,” “will,” “would” and similar expressions, or the negatives of such terms, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained herein are based on current expectations and beliefs concerning future developments and the potential effects on us. Future developments actually affecting us may not be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Examples are statements regarding future developments with respect to the following:

● Our ability to cure the initial bid price deficiency and maintain our Nasdaq listing; 

● Our ability to improve internal controls and procedures;

● Our ability to develop and market our microcredit lending guarantee business in the future;

●  Our ability to effectively control the lending risk and collect from default borrowers;  

●  Our ability to make timely adjustment to ensure adequate loan loss provisions;  

●  Inflation and fluctuations in foreign currency exchange rates;

●  Our on-going ability to obtain all mandatory and voluntary government and other industry certifications, approvals, and/or licenses to conduct our business;

●  Development of a liquid trading market for our securities; and

●  The costs we may incur in the future from complying with current and future governmental regulations and the impact of any changes in the regulations on our operations.

You should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither we nor any other person assume responsibility for the accuracy and completeness of the forward-looking statements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this report to conform these statements to actual results or to changes in our expectations.

You should review the factors described in the section entitled “Risk Factors” herein and other documents we file from time to time with the SEC. We qualify all of our forward-looking statements by these cautionary statements.

3

PART I.  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CHINA COMMERCIAL CREDIT, INC.

CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Index to consolidated financial statements

	Page
Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014	5
Consolidated Statements of Income and Comprehensive Income for the nine months and three months ended September 30, 2015 and 2014	6
Consolidated Statements of Cash Flows for the six months ended September 30, 2015 and 2014	7
Notes to the Consolidated Financial Statements	8 - 41

4

CHINA COMMERCIAL CREDIT, INC.

CONSOLIDATED BALANCE SHEETS

	September 30, 2015,			December 31, 2014
	(Unaudited)
ASSETS
Cash	$	663,883		$	4,991,973
Restricted cash		395,592			1,983,285
Notes receivable		15,714			130,166
Loans receivable, net of allowance for loan losses $14,176,356 and $24,490,721 for September 30 2015 and December 31, 2014, respectively		20,366,338			57,588,408
Investment in direct financing lease, net of allowance for direct financing lease losses of $255,934 and $610,153 for September 30, 2015 and December 31, 2014, respectively		3,887,527			4,104,230
Interest receivable		65,203			543,603
Prepaid taxes		1,714,843			1,758,693
Property and equipment, net		55,974			142,154
Intangible asset		5,694			14,530
Guarantee paid on behalf of guarantee service customers		13,256,151			10,577,352
Guarantee paid on behalf of a related party		411 ,729			162,707
Other assets		621,795			387,227
Deferred tax assets		-			705,459
Total Assets	$	41,460,443		$	83,089,787
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Short-term bank loans	$	4,557,026		$	11,389,522
Deposits payable		1,192,683			2,725,363
Unearned income from financial guarantee services and finance lease service		82,568			182,657
Accrual for financial guarantee services		13,854,117			5,546,128
Other current liabilities		160,111			196,003
Deferred tax liability		191,400			313,874
Total Liabilities		20,037,905			20,353,547
Shareholders' Equity
Series A Preferred Stock (par value $0.001 per share, 1,000,000 shares authorized at September 30, 2015 and December 31, 2014, respectively; nil shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively)	$	-		$	-
Series B Preferred Stock (par value $0.001 per share, 5,000,000 shares authorized at September 30, 2015 and December 31, 2014, respectively; nil shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively)		-			-
Common stock (par value $0.001 per share, 100,000,000 shares authorized; 12,390,062 and 12,255,062 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively)		12,390			12,255
Subscription receivable		(1,062	)		(1,062	)
Additional paid-in capital		59,698,864			59,458,797
Statutory reserves		5,442,150			5,442,150
Due from a non-controlling shareholder		(1,098,197	)		(1,147,088	)
Retained earnings		(47,619,319	)		(6,989,806	)
Accumulated other comprehensive income		4,987,712			5,960,994
Total Shareholders’ Equity		21,422,538			62,736,240
Total Liabilities and Shareholders’ Equity	$	41,460,443		$	83,089,787

* All of the VIEs’ assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 1).

See notes to the consolidated financial statements

5

CHINA COMMERCIAL CREDIT, INC.

CONSOLIDATED STATEMENTS OF OPERATION AND COMPREHENSIVE LOSS

	For The Three Months Ended September 30,						For The Nine Months Ended September 30,
	2015			2014			2015			2014
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Interest income
Interests and fees on loans and direct financing lease	$	156,498		$	1,457,902		$	2,345,493		$	5,987,935
Interests on deposits with banks		7,054			7,843			15,378			59,386
Total interest and fees income		163,552			1,465,745			2,360,871			6,047,321
Interest expense
Interest expense on short-term bank loans		(96,880	)		(243,158	)		(422,710	)		(736,283	)
Net interest income		66,672			1,222,587			1,938,161			5,311,038
Provision for loan losses		(29,210,186	)		(5,817,156	)		(30,762,076	)		(21,164,733	)
(Under)/over provision for direct financing lease losses		(163,922	)		-			343,612			-
Net interest loss after provision for loan losses and financing lease losses		(29,307,436	)		(4,594,569	)		(28,480,303	)		(15,853,695	)
Commissions and fees on financial guarantee services		24,565			87,774			120,623			476,134
Provision on financial guarantee services		(7,322,936	)		(138,457	)		(9,035,700	)		(3,775,816	)
Commission and fees loss on guarantee services, net		(7,298,371	)		(50,683	)		(8,915,077	)		(3,299,682	)
Net Revenue		(36,605,807	)		(4,645,252	)		(37,395,380	)		(19,153,377	)
Non-interest income
Government incentive		-			(81	)		-			81,327
Other non-interest income		19,439			26,276			34,024			195,605
Total non-interest income		19,439			26,195			34,024			276,932
Non-interest expense
Salaries and employee surcharge		(131,778	)		(206,523	)		(654,729	)		(614,926	)
Rental expenses		(83,501	)		(68,078	)		(223,786	)		(199,060	)
Business taxes and surcharge		(12,008	)		(69,743	)		(94,119	)		(228,131	)
Other operating expenses		(348,094	)		(1,190,762	)		(1,692,323	)		(2,323,256	)
Total non-interest expense		(575,381	)		(1,535,106	)		(2,664,957	)		(3,365,373	)
Foreign exchange income/(loss)		1,194			-			(8,550	)		-
Loss Before Taxes		(37,160,555	)		(6,154,163	)		(40,034,863	)		(22,241,818	)
Income tax benefit/(expense )		58,609			113			(594,650	)		(10,979	)
Net Loss		(37,101,946	)		(6,154,050	)		(40,629,513	)		(22,252,797	)
Other comprehensive income
Foreign currency translation adjustment		(1,352,337	)		33,715			(973,282	)		(637,053	)
Comprehensive Loss	$	(38,454,283	)	$	(6,120,335	)	$	(41,602,795	)	$	(22,889,850	)
Loss per Share- Basic and Diluted	$	(2.994	)	$	(0.503	)	$	(3.295	)	$	(1.956	)
Weighted Average Shares Outstanding-Basic and Diluted		12,390,062			12,246,812			12,330,721			11,377,427

See notes to the consolidated financial statements

6

CHINA COMMERCIAL CREDIT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	For The Nine Months Ended September 30,
	2015			2014
	(Unaudited)			(Unaudited)
Cash Flows from Operating Activities:
Net loss	$	(40,629,513	)	$	(22,252,797	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		89,841			83,732
Provision for loan losses		30,762,076			21,164,733
Provision for direct financing lease losses		(343,612	)		-
Provision on financial guarantee services		9,035,700			3,775,816
Deferred tax expense		587,141			10,979
Income from disposal of property and equipment		(14,585	)
Restricted shares issued to executive officers		248,400
Changes in operating assets and liabilities:
Interest receivable		473,968			(281,277	)
Prepaid taxes		(16,845	)		(942,373	)
Other assets		(258,035	)		549,426
Unearned income from financial guarantee services and finance lease service		(96,730	)		(10,363	)
Other current liabilities		(30,910	)		(159,050	)
Net Cash (Used in)/Provided by Operating Activities		(193,104	)	$	1,938,826
Cash Flows from Investing Activities:
Originated loans disbursement to third parties		(17,934,721	)		(36,786,516	)
Loans collection from third parties		23,623,776			37,935,727
Payment of loans on behalf of guarantee customers		(5,639,237	)		(11,439,270	)
Payment of loans on behalf of a related party		(263,687	)		-
Collection from guarantees for loan paid on behalf of guarantees		749,980			1,905,564
Payment for principal of finance lease		-			(2,732,596	)
Collection of principal of finance lease, in installments		422,199			-
Deposit released from banks for financial guarantee services		1,870,298			9,955,276
Deposit paid to banks for financial guarantee services		(303,634	)		(5,653,718	)
Purchases of property and equipment and intangible asset		(1,461	)		(2,977	)
Disposal of property and equipment		18,635			-
Net Cash Provided by/(Used in) Investing Activities		2,542,148			(6,818,510	)
Cash Flows From Financing Activities:
Proceeds from second public offering, net off offering costs		-			6,601,544
Proceeds from exercise of underwriter over-allotment, net off offering costs		-			25,000
Common Stock issuance cost		-			(872,785	)
Repayment of short-term bank borrowings		(6,641,289	)		(4,879,636	)
Capital contribution from a shareholder		-			11,571
Cash disbursed to a non- controlling shareholder		-			(2,289,402	)
Cash repaid from a non- controlling shareholder		-			1,135,940
Net Cash Used in Financing Activities		(6,641,289	)		(267,768	)
Effect of Exchange Rate Changes on Cash and Cash Equivalents		(35,845	)		(125,631	)
Net Decrease In Cash and Cash Equivalents		(4,328,090	)		(5,273,083	)
Cash and Cash Equivalents at Beginning of Period		4,991,973			9,405,865
Cash and Cash Equivalents at End of Period	$	663,883			4,132,782
Supplemental Cash Flow Information
Cash paid for interest expense	$	422,710			658,322
Cash paid for income tax	$	3,563			930,437

See notes to the consolidated financial statements

7

1. ORGANIZATION AND PRINCIPAL ACTIVITIES

China Commercial Credit, Inc. (“CCC” or “the Company”) is a holding company that was incorporated under the laws of the State of Delaware on December 19, 2011.

Wujiang Luxiang Rural Microcredit Co., Ltd (“Wujiang Luxiang”) is a company established under the laws of the PRC on October 21, 2008 and its shareholders consist of 11 companies established under the laws of the People's Republic of China (“PRC”) and 1 PRC individual, Mr. Qin Huichun, the Company's former CEO (collectively, the "Wujiang Luxiang Shareholders"). The Company is a microcredit company primarily engaged in providing direct loans and financial guarantee services to small-to-medium sized enterprises (“SMEs”), farmers and individuals in Wujiang City, Jiangsu Province, PRC.

On August 7, 2012 CCC entered into certain share exchange agreements with 16 PRC individuals, each of whom is the sole shareholder of a British Virgin Island company (collectively “16 BVI entities”) and the 16 BVI entities. These 16 PRC individuals represent the ultimate owners of the Wujiang Luxiang Shareholders.

Upon completion of the share exchange, the 16 PRC individuals, through their respective BVI entities, acquired 7,270,920 shares of Common Stock, par value $0.001 per share (the "Common Stock") of CCC in exchange for their agreement to cause the Wujiang Luxiang Shareholders to enter into the Variable Interest Entity (the “VIE”) Agreements. As a result of the share exchange, the 16 BVI entities became CCC shareholders, who collectively owned approximately 90% of CCC’s total issued and outstanding shares of Common Stock at the time of the share exchange.

Since at the time of the share exchange neither CCC nor the 16 BVI entities had any operations and only a minor amount of net assets, the share exchange shall be considered as capital transaction in substance, rather than a business combination.

The share exchange is recorded as a “reverse recapitalization” equivalent to the issuance of stocks to the 16 BVI entities for the net monetary assets of CCC. The accounting for the transaction is identical to a reverse acquisition, except that no goodwill is recorded.

Management of the Company looked through the 16 BVI entities and treated the share exchange as a reverse merger between CCC and Wujiang Luxiang for accounting purposes, even though the share exchange was between CCC and the 16 BVI entities, because of the following reasons: (i) neither CCC nor the 16 BVI entities had any operations and only a minor amount of net assets; (ii) the 16 PRC individual, who are the owners of the 16 BVI entities, are the ultimate owners of Wujiang Luxiang, and (iii) the sole purpose of the share exchange was to issue approximately 90%of pre-public offering CCC shares to the ultimate owners of Wujiang Luxiang Shareholders.

VIE AGREEMENTS WITH WUJIANG LUXIANG

Subsequent to the share exchange, on September 26, 2012, the Company through its indirectly wholly owned subsidiary, Wujiang Luxiang Information Technology Consulting Co. Ltd. (“WFOE”), entered into a series of VIE Agreements with Wujiang Luxiang and the Wujiang Luxiang Shareholders. The purpose of the VIE Agreements is solely to give WFOE the exclusive control over Wujiang Luxiang’s management and operations.

The significant terms of the VIE Agreements are summarized below:

Exclusive Business Cooperation Agreement

Pursuant to the Exclusive Business Cooperation Agreement between Wujiang Luxiang and WFOE, WFOE provides Wujiang Luxiang with technical support, consulting services and other management services relating to its day-to-day business operations and management, on an exclusive basis, utilizing its advantages in technology, human resources, and information. Additionally, Wujiang Luxiang grants an irrevocable and exclusive option to WFOE to purchase from Wujiang Luxiang any or all of its assets at the lowest purchase price permitted under PRC laws. For services rendered to Wujiang Luxiang by WFOE under the Agreement, the service fee Wujiang Luxiang is obligated to pay shall be calculated based on the time of services rendered multiplied by the corresponding rate, which is approximately equal to the net income of Wujiang Luxiang.

The Exclusive Business Cooperation Agreement shall remain in effect for ten years unless it is terminated by WFOE with 30-day prior notice. Wujiang Luxiang does not have the right to terminate the agreement unilaterally. WFOE may unilaterally extend the term of this agreement with prior written notice.

8

1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED)

Share Pledge Agreement

Under the Share Pledge Agreement between the Wujiang Shareholders and WFOE, the 12 Wujiang Shareholders pledged all of their equity interests in Wujiang Luxiang to WFOE to guarantee the performance of Wujiang Luxiang’s obligations under the Exclusive Business Cooperation Agreement. Under the terms of the agreement, in the event that Wujiang Luxiang or its shareholders breach their respective contractual obligations under the Exclusive Business Cooperation Agreement, WFOE, as pledgee, will be entitled to certain rights, including, but not limited to, the right to collect dividends generated by the pledged equity interests. The Wujiang Shareholders also agreed that upon occurrence of any event of default, as set forth in the Share Pledge Agreement, WFOE is entitled to dispose of the pledged equity interest in accordance with applicable PRC laws. The Wujiang Shareholders further agree not to dispose of the pledged equity interests or take any actions that would prejudice WFOE’s interest.

Exclusive Option Agreement

Under the Exclusive Option Agreement, the Wujiang Shareholders irrevocably granted WFOE (or its designee) an exclusive option to purchase, to the extent permitted under PRC law, once or at multiple times, at any time, part or all of their equity interests in Wujiang Luxiang. The option price is equal to the capital paid in by the Wujiang Shareholders subject to any appraisal or restrictions required by applicable PRC laws and regulations.

Power of Attorney

Under the Power of Attorney, the Wujiang Shareholders authorize WFOE to act on their behalf as their exclusive agent and attorney with respect to all rights as shareholders, including but not limited to:(a) attending shareholders' meetings; (b) exercising all the shareholder's rights, including voting, that shareholders are entitled to under the laws of China and the Articles of Association, including but not limited to the sale or transfer or pledge or disposition of shares in part or in whole; and (c) designating and appointing on behalf of shareholders the legal representative, the executive director, supervisor, the chief executive officer and other senior management members of Wujiang Luxiang. The Power of Attorney is coupled with an interest and shall be irrevocable and continuously valid from the date of execution, so long as the Wujiang Shareholder is a shareholder of the Company.

Timely Reporting Agreement

To ensure Wujiang Luxiang promptly provides all of the information that WFOE and the Company need to file various reports with the SEC, a Timely Reporting Agreement was entered between Wujiang Luxiang and the Company.

Under the Timely Reporting Agreement, Wujiang Luxiang agrees that it is obligated to make its officers and directors available to the Company and promptly provide all information required by the Company so that the Company can file all necessary SEC and other regulatory reports as required.

INCORPORATION OF PFL

On September 5, 2013, our wholly owned subsidiary, CCC International Investment Holding Ltd. (“CCC HK”), established Pride Financial Leasing (Suzhou) Co. Ltd. (“PFL”) in Jiangsu Province, China. PFL was expected to offer financial leasing of machinery and equipment, transportation vehicles, and medical devices to municipal government agencies, hospitals and SMEs in Jiangsu Province and beyond. As of September 30, 2015, PFL incurred two finance lease transactions.

9

1. ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED)

VIE AGREEMENTS WITH PRIDE INFORMATION

On February 19, 2014, WFOE entered into certain contractual arrangements with Mr. Huichun Qin and Pride Information Technology Co. Ltd. (“Pride Information”), a domestic entity established on February 19, 2014 and 100% owned by Mr. Qin. Pursuant to these contractual arrangements, WFOE shall have the power, rights and obligations equivalent in all material respects to those it would possess as the sole equity holder of Pride Information, including absolute control rights and the rights to the assets, property and revenue of Pride Information and as a result, approximately 100% of the net income of Pride Information will be paid as a service fee to WFOE.

The contractual arrangements between WFOE, Pride Information and its sole shareholder, Mr. Huichun Qin, have substantially the same terms as those between WFOE, Wujiang Luxiang and its shareholders.

On April 11, 2015, WFOE delivered a notice of termination to Pride Information. As a result, the contractual arrangements between WFOE, Pride Information and Mr. Qin were terminated effective on May 11, 2015 and WFOE no longer controls Pride Information.

Completion of the Internal Review

Based on the Chief Financial Officer’s review of the books and records of the Company, the Company has made a preliminary determination that following the close of the fiscal quarter ended June 30, 2014, RMB 7 million (approximately $1.1 million) was transferred (the “Transfer at Issue”) from the bank account of WFOE, without authorization to the personal account of a former executive officer of the Company, who was still an executive officer at the time of the transfer. The funds were supposed to be used for the purpose of increasing the registered capital account of Wujiang Luxiang. The Company has sought return of the funds but to date has not recovered them. The Company’s Board of Directors explored all means, including legal avenues, to recover the funds and had formed a Special Committee to undertake an internal review of the circumstances surrounding the transfer.

On January 26, 2015, the Special Committee notified the Board of Directors that the internal review surrounding the Transfer at Issue was completed. The internal review confirmed that Mr. Qin transferred RMB 7 million (approximately $1.1 million) from WFOE’s bank account to his personal bank account. The internal review team was unable to interview Mr. Qin. The missing funds have not yet been recovered and the Company has engaged local PRC counsel to assist in the matter.

During the internal review, the independent counsel examined whether other transfers had occurred that were similar to the Transfer at Issue, in that the Company’s funds were transferred to a related party in a manner that was not consistent with the Company’s corporate governance and internal control procedures. The independent counsel identified four transfers made by Mr. Qin that were not consistent with the Company’s corporate governance and internal control procedures. With respect to the first three transfers, all funds were either returned to the Company or applied to the Company’s business. With respect to the fourth transfer, the funds were used to increase the registered capital of Wujiang Luxiang, a variable interest entity the Company controls via a series of contractual arrangements, as intended and reflected in an application made to the PRC government for such increase of registered capital.

The internal review indicated that the Company’s control deficiencies contributed to the Transfer at Issue. The internal review also found that, since the discovery of the Transfer at Issue, the Company has taken various steps to improve its internal controls and procedures, including implementing a new fund transfer approval policy and procedures and new standards of credit risk assessment which are carried out by the newly formed Loan Review Committee. The internal review conducted by independent counsel engaged by the Special Committee of the Board of Directors observed that such new controls and procedures appear to be much more thorough and comprehensive.

10

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of presentation and principle of consolidation

The unaudited interim consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).

The interim financial information as of September 30, 2015 and for the three and nine months ended September 30, 2015 and 2014 have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and pursuant to Regulation S-X. Certain information and footnote disclosures, which are normally included in annual financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited interim financial information should be read in conjunction with the audited financial statements and the notes thereto, included in the Form 10-K for the fiscal year ended December 31, 2014 filed with the SEC on April 15, 2015.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s financial position as of September 30, 2015, its results of operations for the three months and nine months ended September 30, 2015 and 2014, and its cash flows for the nine months ended September 30, 2015 and 2014, as applicable, have been made. The unaudited interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods.

(b) Operating segments

ASC 280, Segment Reporting requires companies to report financial and descriptive information about their reportable operating segments, including segment profit or loss, certain specific revenue and expense items, and segment assets. The Company has no reportable segments. All of the Company's activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with registered capital and other borrowings and manage interest rate and credit risk.

The Company has only one reportable segment, which is to provide financial services in the PRC domestic market, primarily in Wujiang City, Jiangsu Province. The Company’s chief operating decision-maker (“CODM”) has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for both the direct lending and guarantee business and the anticipated financial leasing business. The Company’s net revenues are all generated from customers in the PRC. Hence, the Company operates and manages its business without segments. For the nine months ended September 30, 2015 and 2014, there was no one customer that accounted for more than 10% of the Company's revenue.

(c) Cash

Cash consists of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use The Company maintains accounts at banks and has not experienced any losses from such concentrations.

(d) Restricted cash

Restricted cash represents cash pledged with banks as guarantor deposit for the guarantee business customers. The banks providing loans to the Company’s guarantee service customers generally require the Company, as the guarantor of the loans, to pledge a cash deposit of 10% to 20% of the guaranteed amount to an escrow account and is restricted from use. The deposits are released after the guaranteed bank loans are paid off and the Company’s guarantee obligation expires which is usually within 12 months.

(e) Loans receivable, net

Loans receivable primarily represent loan amount due from customers. The management has the intent and ability to hold such receivable for the foreseeable future or until maturity or payoff. Loans receivable are recorded at unpaid principal balances, net of allowance for loan losses that reflects the Company’s best estimate of the amounts that will not be collected. Loan origination and commitment fees and certain direct loan origination costs collected from customers are directly recorded in current year interests and fees on loans. The loans receivable portfolio consists of corporate loans and personal loans (Note 6). The Company does not charge loan origination and commitment fees.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(f) Allowance for loan losses

The allowance for loan losses is increased by charges to income and decreased by charge offs (net of recoveries). Recoveries represent subsequent collection of amounts previously charged-off. The increase in allowance for loan losses is the netting effect of “reversal” and “provision” for both business and personal loans. If the ending balance of the allowance for loan losses after any charge offs (net of recoveries) is less than the beginning balance, it will be recorded as a “reversal”; if it is larger, it will be recorded as a “provision” in the allowance for loan loss. The netting amount of the “reversal” and the “provision” is presented in the consolidated statements of operations and comprehensive income (loss).

The Company recognizes a charge-off when management determines that full repayment of a loan is not probable. The primary factor in making that determination is the potential outcome of a lawsuit against the delinquent debtor. The Company will recognize a charge-off when the Company loses contact with the delinquent borrower for more than six months or when the court rules against the Company to seize the collateral asset of the delinquent debt from either the guarantor or borrower.

The allowance for loan losses is maintained at a level believed to be reasonable by management to absorb probable losses inherent in the portfolio as of each balance sheet date. The allowance is based on factors such as the size and current risk characteristics of the portfolio, an assessment of individual loan and actual loss, delinquency, and/or risk rating record within the portfolio (Note 7). The Company evaluates its allowance for loan losses on a quarterly basis or more often as necessary.

(g) Interest receivable

Interest on loans receivable is accrued and credited to income as earned. The Company determines a loan past due status by the number of days that have elapsed since a borrower has failed to make a contractual loan payment. Accrual of interest is generally discontinued when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days. Additionally, any previously accrued but uncollected interest is reversed. Subsequent recognition of income occurs only to the extent payment is received, subject to management’s assessment of the collectability of the remaining interest and principal. Loans are generally restored to an accrual status when it is no longer delinquent and collectability of interest and principal is no longer in doubt and past due interest is recognized at that time.

The interest reversed due to the above reason was $1,642,566 and $1,684,691 as of September 30, 2015 and December 31, 2014, respectively.

12

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(h) Property and equipment

The property and equipment are stated at cost less accumulated depreciation. The depreciation is computed on a straight-line method over the estimated useful lives of the assets with 5% salvage value. Estimated useful lives of property and equipment are stated in Note 12.

The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the accounts and includes any gain or loss in the statement of income. The Company charges maintenance, repairs and minor renewals directly to expenses as incurred; major additions and betterment to equipment are capitalized.

(i) Impairment of long-lived assets

The Company applies the provisions of ASC No. 360 Sub topic 10, "Impairment or Disposal of Long-Lived Assets"(ASC 360- 10) issued by the Financial Accounting Standards Board ("FASB"). ASC 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value.

The Company tests long-lived assets, including property and equipment and finite lived intangible assets, for impairment at least annually or more frequently upon the occurrence of an event or when circumstances indicate that the net carrying amount is greater than its fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows as the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available in making whatever estimates, judgments and projections are considered necessary. There were no impairment losses in the three and nine months ended September 30, 2015 and 2014.

(j) Fair values of financial instruments

ASC Topic 825, Financial Instruments (“Topic 825”) requires disclosure of fair value information of financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Topic 825 excludes certain financial instruments and all nonfinancial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company.

Level 1	inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2	inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

As of September 30, 2015 and December 31, 2014, financial instruments of the Company primarily comprise of cash, restricted cash, notes receivable, accrued interest receivable, other receivable, short-term bank loans, deposits payable and accrued expenses, which were carried at cost on the consolidated balance sheets, and carrying amounts approximated their fair values because of their generally short maturities.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(k) Foreign currency translation

The reporting currency of the Company is United States Dollars (“US$”), which is also the Company’s functional currency. The PRC subsidiaries and VIEs maintain their books and records in its local currency, the Renminbi Yuan (“RMB”), which is their functional currencies as being the primary currency of the economic environment in which these entities operate.

For financial reporting purposes, the financial statements of the Company prepared using RMB are translated into the Company’s reporting currency, United States Dollars, at the exchange rates quoted by www.oanda.com. Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in shareholders’ equity.

	September 30, 2015		December 31, 2014
Balance sheet items, except for equity accounts		6.3638		6.1460
		For the nine months ended September 30,
		2015		2014
Items in the statements of income and comprehensive income, and statements of cash flows		6.1735		6.1480

Transactions denominated in currencies other than the functional currency are translated into prevailing functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the consolidated statements of comprehensive loss.

(l) Use of estimates

The preparation of consolidated financial statements in conformity with U.S.GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews these estimates using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. Significant accounting estimates reflected in the financial statements include: (i) the allowance for doubtful debts; (ii) estimates of losses on unexpired loan contracts and guarantee service contracts; (iii) accrual of estimated liabilities; (iv) useful lives of long-lived assets, (v) the impairment of long-lived assets; (vi) the valuation allowance of deferred tax assets; and (vii) contingencies and litigation.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(m) Revenue recognition

Revenue is recognized when there are probable economic benefits to the Company and when the revenue can be measured reliably, on the following:

● Interest income on loans. Interest on loan receivables is accrued monthly in accordance with their contractual terms and recorded in accrued interest receivable. The Company does not charge prepayment penalty from customers. Additionally, any previously accrued but uncollected interest is discontinued of accrual and reversed, when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days.

● Commission on guarantee service. The Company receives the commissions from guarantee services in full at inception and records as unearned income before amortizing it throughout the period of guarantee.

● Income on direct financing lease. The financing agreements are classified as direct financing lease as prescribed by the Financial Accounting Standards Board ("FASB Codification"). Revenues representing the capitalized costs of the investment are recognized as income upon inception of the leases. The portion of revenues representing the difference between the gross investment in the lease (the sum of the minimum lease payments and the guaranteed residual value, if any) and the sum of the present value of the two components is recorded as unearned income and amortized over the lease term.   Taxes assessed by governmental authorities that are directly imposed on revenue-producing transactions between the Company and its customers (which may include, but are not limited to, sales, use, value added and some excise taxes) are excluded from revenues.   Lessees are responsible for all taxes, insurance and maintenance costs.

● Non-interest income. Non-interest income mainly includes rental income from the sub-leasing of certain of the Company’s leased office space to third parties and income from disposal of property and equipment.

(n) Financial guarantee service contract

Financial guarantee service contracts provides guarantee which protects the holder of a debt obligation against default. Pursuant to such guarantee, the Company makes payments if the obligor responsible for making payments fails to do so as scheduled.

The contract amounts reflect the extent of involvement the Company has in the guarantee transaction and also represent the Company’s maximum exposure to credit loss in its guarantee business.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(n) Financial guarantee service contract (continued)

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. Financial instruments representing credit risk are as follows:

	September 30, 2015		December 31, 2014
	(Unaudited)
Guarantee	$	14,071,781	$	21,794,663

A provision for possible loss to be absorbed by the Company for the financial guarantee it provides is recorded as an accrued liability when the guarantees are made and recorded as “Accrual for financial guarantee services” on the consolidated balance sheets. This liability represents probable losses and is increased or decreased by accruing a “Provision on financial guarantee services” against the income of commissions and fees on guarantee services reserve.

This is done throughout the life of the guarantee, as necessary when additional relevant information becomes available. The methodology used to estimate the liability for possible guarantee loss considers the guarantee contract amount and a variety of factors, which include, depending on the counterparty, latest financial position and performance of the borrowers, actual defaults, estimated future defaults, historical loss experience, estimated value of collaterals or guarantees the customers or third parties offered, and other economic conditions such as the economy trend of the area and the country. The estimates are based upon currently available information.

Based on the past experience and expected customer default status of financial guarantee services, the Company estimates the probable loss for immature financial guarantee services to be 50% and 1% of contract amount as of September 30, 2015 and December 31, 2014, and made a provision of $7,035,891 and $217,947 as of these two reporting dates, respectively for possible credit risk of its guarantees. In addition, the Company accrued specific provisions for repayment on behalf of guarantee customers who defaulted on their loans, in the amount of $6,818,226 and $5,328,181 as of September 30, 2015 and December 31, 2014, respectively. As of September 30, 2015, the management charged off specific provision for one customer in the amount of $267,696, considering remote collectability from the customer. The total accrual for financial guarantee services amounted to $13,854,117 and $5,546,128 as of September 30, 2015 and December 31, 2014, respectively. The Company reviews the provision on a quarterly basis.

(o) Non-interest expenses

Non-interest expenses primarily consist of salary and benefits for employees, traveling cost, entertainment expenses, depreciation of equipment, office rental expenses, professional service fee, office supplies, etc.

(p) Income tax

Current income tax expenses are provided for in accordance with the laws of the relevant taxing authorities. As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. The Company accounts for income taxes using the liability approach. Under this method, deferred income taxes are recognized for tax consequences in future years of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable for the differences that are expected to affect taxable income.

(q) Comprehensive income

Comprehensive income includes net income and foreign currency adjustments. Comprehensive income is reported in the statements of operations and comprehensive income.

Accumulated other comprehensive income, as presented on the balance sheets are the cumulative foreign currency translation adjustments.

(r) Share-based awards

Share-based awards granted to the Company's employees are measured at fair value on grant date and share-based compensation expense is recognized (i) immediately at the grant date if no vesting conditions are required, or (ii) using the accelerated attribution method, net of estimated forfeitures, over the requisite service period. The fair value of restricted shares is determined with reference to the fair value of the underlying shares.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(r) Share-based awards (continued)

At each date of measurement, the Company reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of the share-based awards granted by the Company, including but not limited to the fair value of the underlying shares, expected life, expected volatility and expected forfeiture rates. The Company is required to consider many factors and make certain assumptions during this assessment. If any of the assumptions used to determine the fair value of the share-based awards changes significantly, share-based compensation expense may differ materially in the future from that recorded in the current reporting period.

(s) Operating leases

The Company leases its principal office under a lease agreement that qualifies as an operating lease. The Company records the rental under the lease agreement in the operating expense when incurred.

(t) Commitments and contingencies

In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations and tax matters. In accordance with ASC No. 450 Sub topic 20, “Loss Contingencies”, the Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated.

(u) Recently issued accounting standards

In September 2015, the Financial Accounting Standards Board (“FASB”) issued updated guidance, which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Acquirers must recognize measurement-period adjustments during the period of resolution, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The updated guidance is effective for fiscal years beginning after December 15, 2015. Earlier adoption is permitted for any interim and annual financial statements that have not yet been issued. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In August 2015, the FASB issued an accounting standards update for a one-year deferral of the revenue recognition standard's effective date for all entities, which changed the effectiveness to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We are currently evaluating this standard and our existing revenue recognition policies to determine which contracts in the scope of the guidance will be affected by the new requirements and what impact they would have on our consolidated financial statements upon adoption. We have not yet determined which transition method we will utilize upon adoption on the effective date.

In August 2015, the FASB issued updated guidance concerning presentation and subsequent measurement of debt issuance costs relating to line of credit arrangements, which can be presented on the balance sheet as an asset to be subsequently amortized ratably over the term of the line of credit arrangement. The updated guidance is effective immediately. This updated guidance did not have a material impact on our financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. Under this ASU, an entity presents such costs on the balance sheet as a direct deduction from the related debt liability rather than as an asset. This new standard is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early adoption permitted. We do not plan to adopt this standard early and do not expect that it will have a material impact on our consolidated financial statements or disclosures upon adoption.

In February 2015, the FASB issued ASU 2015-02 "Consolidation: Amendments to the Consolidation Analysis" in order to clarify the basis for consolidation of certain legal entities. ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Specifically, ASU 2015-02 (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, (iii) affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships, and (iv) provides a scope exception from consolidation guidance for reporting entities with interests in certain legal entities. ASU 2015-02 is effective for public business entities for fiscal years and interim periods beginning on or after December 15, 2015. Early adoption is permitted. The Company is currently assessing the impact of ASU 2015-02 on its consolidated financial position, results of operations and cash flows.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(u) Recently issued accounting standards (continued)

In January 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-01 about Income Statement-Extraordinary and Unusual Items (Subtopic 225-20). ASU 2015-01 addresses the elimination from U.S. GAAP the concept of extraordinary items. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. This amended guidance will prohibit separate disclosure of extraordinary items in the income statement. This amendment is effective for years, and interim periods within those years, beginning after December 15, 2015. Entities may apply the amendment prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the year of adoption. The Company intends to adopt the accounting standard during the first quarter of 2016, as required, with no material impact.

In June 2014, the FASB issued guidance that clarifies the accounting for share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. In this case, the performance target would be required to be treated as a performance condition, and should not be reflected in estimating the grant-date fair value of the award. The guidance also addresses when to recognize the related compensation cost. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In June 2014 Accounting Standards Update 2014-10 removed the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. This ASU is effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Early adoption is permitted. The Company has elected to adopt this ASU effective with the December 31, 2014 annual report on Form 10-K and its adoption resulted in the removal of previously required development stage financial information.

In May 2014, the FASB issued guidance on the accounting for revenue from contracts with customers that will supersede most existing revenue recognition guidance, including industry-specific guidance. The core principle requires an entity to recognize revenue to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This guidance is effective for interim and annual reporting periods beginning on or after December 15, 2016. Entities can choose to apply the guidance using either the full retrospective approach or a modified retrospective approach. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

ASU 2014-15 – "Presentation of Financial Statements—Going Concern—Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15")." In August 2014, the FASB issued ASU 2014-15 requiring management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. ASU 2014-15 is effective for annual periods, and interim periods within those annual periods, starting December 15, 2016; the Company's first quarter of fiscal 2018.

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3. VARIABLE INTEREST ENTITIES AND OTHER CONSOLIDATION MATTERS

On September 26, 2012, the Company, through WFOE, entered into a series of contractual arrangements, also known as “VIE Agreements” with Wujiang Luxiang and the Wujiang Luxiang Shareholders.

On February 19, 2014, WFOE entered into certain contractual arrangements, having substantially the same terms as those of the VIE Agreements with Pride Information and its sole shareholder, Mr. Huichun Qin. These VIE Agreements were terminated on May 11, 2015 and will be accounted for as a deconsolidation. Pride Information did not have any business since its inception. (See Note 1)

As of September 30, 2015, the Company had only one VIE.

The significant terms of the VIE Agreements are summarized in Note 1.

VIEs are entities that have either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. WFOE is deemed to have a controlling financial interest and be the primary beneficiary of the entities mentioned in Note 1 above, because it has both of the following characteristics:

1. power to direct activities of a VIE that most significantly impact the entity’s economic performance, and

2. obligation to absorb losses of the entity that could potentially be significant to the VIE or right to receive benefits from the entity that could potentially be significant to the VIE.

In addition, as all of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through either arbitration or litigation in the PRC, they would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal environment in the PRC is not as developed as in other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could further limit the Company’s ability to enforce these contractual arrangements. Furthermore, these contracts may not be enforceable in China if PRC government authorities or courts take a view that such contracts contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons. In the event the Company is unable to enforce these contractual arrangements, it may not be able to exert effective control over Wujiang Luxiang, and Pride Information and its ability to conduct its business may be materially and adversely affected.

All of the Company’s main current operations are conducted through Wujiang Luxiang and PFL. Current regulations in China permit Wujiang Luxiang and PFL to pay dividends to us only out of its accumulated distributable profits, if any, determined in accordance with their articles of association and PRC accounting standards and regulations. The ability of Wujiang Luxiang and PFL to make dividends and other payments to the Company may be restricted by factors including changes in applicable foreign exchange and other laws and regulations.

19

3. VARIABLE INTEREST ENTITIES AND OTHER CONSOLIDATION MATTERS (CONTINUED)

The following financial statement amounts and balances of the VIE were included in the accompanying unaudited consolidated financial statements as of September 30, 2015 and December 31, 2014 and for the three months and nine months ended September 30, 2015 and 2014:

	September 30, 2015		December 31, 2014
	(Unaudited)
Total assets	$	36,981,862	$	77,513,966
Total liabilities		20,086,296		19,793,537

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenue	$	120,929		1,553,520	$	2,272,057	$	6,517,256
Net loss		36,925,013		5,627,816		40,083,818		21,158,128

All of the Company’s current revenue is generated in RMB. Any future restrictions on currency exchanges may limit our ability to use net revenues generated in RMB to make dividends or other payments in US$ or fund possible business activities outside China.

Foreign currency exchange regulation in China is primarily governed by the following rules:

● Foreign Exchange Administration Rules (1996), as amended in August 2008, or the Exchange Rules;

● Administration Rules of the Settlement, Sale and Payment of Foreign Exchange (1996), or the Administration Rules.

Under the Administration Rules, RMB is freely convertible for current account items, including the distribution of dividends, interest payments, trade and service related foreign exchange transactions, but not for capital account items, such as direct investments, loans, repatriation of investments and investments in securities outside of China, unless the prior approval of the State Administration of Foreign Exchange (“SAFE”) is obtained and prior registration with the SAFE is made. Foreign-invested enterprises like WFOE that need foreign currency for the distribution of profits to their shareholders may validate payment from their foreign currency accounts or purchase and pay foreign currencies at the designated foreign exchange banks to their foreign shareholders by producing board resolutions for such profit distribution. Based on their needs, foreign invested enterprises are permitted to open foreign currency settlement accounts for current account receipts and payments of foreign exchange along with specialized accounts for capital account receipts and payments of foreign currency at certain designated foreign exchange banks.

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4. RISKS

(a) Credit risk

Credit risk is one of the most significant risks for the Company’s business. Credit risk exposures arise principally in lending activities, finance lease and financial guarantee activities which is an off-balance sheet financial instrument.

Credit risk is controlled by the application of credit approvals, limits and monitoring procedures. The Company manages credit risk through in-house research and analysis of the Chinese economy and the underlying obligors and transaction structures. To minimize credit risk, the Company requires collateral in the form of rights to cash, securities or property and equipment.

The Company identifies credit risk collectively based on industry, geography and customer type. This information is monitored regularly by management.

1.1 Lending activities

In measuring the credit risk of lending loans to corporate customers, the Company mainly reflects the “probability of default” by the customer on its contractual obligations and considers the current financial position of the customer and the exposures to the customer and its likely future development. For individual customers, the Company uses standard approval procedures to manage credit risk for personal loans.

The Company measures and manages the credit quality of loans to corporate and personal customers based on the “Guideline for Loan Credit Risk Classification” (the “Guideline”) issued by the China Banking Regulatory Commission, which requires commercial banks and micro-credit institutions to classify their corporate and personal loans into five categories: (1) pass, (2) special-mention, (3) substandard, (4) doubtful and (5) loss, among which loans classified in the substandard, doubtful and loss categories are regarded as non-performing loans. The Guideline also determines the percentage of each category of non-performing loans as allowances, which are 2% on special-mention loan, 25% on substandard loans, 50% on doubtful loans and 100% on loss loans.

The five categories are defined as follows:

(1) Pass: loans for which borrowers can honor the terms of the contracts, and there is no reason to doubt their ability to repay principal and interest of loans in full and on a timely basis.

(2) Special-mention: loans for which borrowers are still able to service the loans currently, although the repayment of loans might be adversely affected by some factors.

(3) Substandard: loans for which borrowers’ ability to service loans is apparently in question and borrowers cannot depend on their normal business revenues to pay back the principal and interest of loans. Certain losses might be incurred by the Company even when guarantees are executed.

(4) Doubtful: loans for which borrowers cannot pay back principal and interest of loans in full and significant losses will be incurred by the Company even when guarantees are executed.

(5) Loss: principal and interest of loans cannot be recovered or only a small portion can be recovered after taking all possible measures and resorting to necessary legal procedures.

Five-category loan classifications are re-examined on a quarterly basis. Adjustments are made to these classifications as necessary according to customers’ operational and financial position with loan loss reserves increased on a specific basis.

The Guideline stipulates that micro-credit companies, which are limited to provide short-term loans and financial guarantee services to only small to medium size businesses, should choose a reasonable methodology to provide allowance for the probable loss from the credit risk, and the allowance should not be less than the allowance amount derived from the five-category analysis. The Company continuously performs the analysis and believes that the allowance amount it provided is consistently more than the allowance amount derived from the five-category analysis.

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4. RISKS (CONTINUED)

(a) Credit risk (continued)

1.2 Guarantee activities

The off-balance sheet commitments arising from guarantee activities carry similar credit risk to loans and the Company takes a similar approach on risk management.

Off-balance sheet commitments with credit exposures are also assessed and categorized with reference to the Guideline and include additional amounts on a specific basis.

(b) Liquidity risk

The Company is also exposed to liquidity risk which is risk that it is unable to provide sufficient capital resources and liquidity to meet its commitments and business needs. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, the Company will turn to other financial institutions and the owners to obtain short-term funding to meet the liquidity shortage.

(c) Foreign currency risk

A majority of the Company’s operating activities and a significant portion of the Company’s assets and liabilities are denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the Peoples’ Bank of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting a payment application form together with suppliers' invoices and signed contracts. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market.

(d) Concentration risk

As of September 30, 2015 and December 31, 2014, the Company held cash of $663,883 and $4,991,973, respectively that is uninsured by the government authority. To limit exposure to credit risk relating to deposits, the Company primarily places cash deposits only with large financial institutions in the PRC with acceptable credit ratings.

The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC as well as by the general state of the PRC’s economy. The business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

No customer accounted for more than 10% of total loan balance as of September 30, 2015 and December 31, 2014.

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5. RESTRICTED CASH

Restricted cash represents cash pledged with banks as guarantor deposit for the Company's guarantee service customers, amounting to $0.4 million and $2.0 million as of September 30, 2015 and December 31, 2014, respectively. The banks providing loans to the Company’s guarantee service customers generally require the Company, as the guarantor of the loans, to pledge a cash deposit usually in the range of 10% to 30% of the guaranteed amount. The deposits are released after the guaranteed bank loans are paid off and the Company’s guarantee obligation expires which is usually within 12 months.

At the same time, the Company requires the guarantee service customers to make a deposit to the Company of the same amount as the deposit the Company pledged to the banks for their loans. The Company recorded the deposit received as “deposits payable” on the unaudited consolidated balance sheet. The deposit is returned to the customer after the customer repays the bank loan and the Company’s guarantee obligation expires.

6. LOANS RECEIVABLE, NET

The interest rates on loan issued ranged between 9.6%~19.44% and 9.6% ~ 18% for the nine months ended September 30, 2015 and 2014, respectively.

6.1 Loans receivable consist of the following:

	September 30, 2015			December 31, 2014
	(Unaudited)
Business loans	$	23,929,538		$	52,254,805
Personal loans		10,613,156			29,824,324
Total Loans receivable		34,542,694			82,079,129
Allowance for loan losses
Collectively assessed		(14,176,356	)		(24,490,721	)
Individually assessed		-			-
Allowance for loan losses		(14,176,356	)		(24,490,721	)
Loans receivable, net	$	20,366,338		$	57,588,408

The Company originates loans to customers located primarily in Wujiang City, Jiangsu Province. This geographic concentration of credit exposes the Company to a higher degree of risk associated with this economic region.

All loans are short-term loans that the Company has made to either business or individual customers. As of September 30, 2015 and December 31, 2014, the Company had 29 and 101 business loan customers, and 40 and 60 personal loan customers, respectively. Most loans are either guaranteed by a third party whose financial strength is assessed by the Company to be sufficient or secured by collateral. Allowance on loan losses are estimated on quarterly basis in accordance with “The Guidance on Provision for Loan Losses” published by PBOC (Note 7).

For the three months ended September 30, 2015 and 2014, a provision of $29,210,186 and $5,817,156 were charged to the unaudited consolidated statement of operations, respectively. For the nine months ended September 30, 2015 and 2014, a provision of $30,762,076 and $21,164,733 were charged to the unaudited consolidated statement of operations, respectively.

Write-offs of $41,134,020 and $nil against allowances have occurred for the three months ended September 30, 2015 and 2014, respectively. Write-offs of $41,134,020 and $1,515,685 against allowances have occurred for the nine months ended September 30, 2014, respectively.

Interest on loans receivable is accrued and credited to income as earned. The Company determines a loan's past due status by the number of days that have elapsed since a borrower has failed to make a contractual loan payment. Accrual of interest is generally discontinued when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days.

23

6. LOANS RECEIVABLE, NET (CONTINUED)

The following table presents nonaccrual loans with aging over 90 days by classes of loan portfolio as of September 30, 2015 and December 31, 2014, respectively:

	September 30, 2015		December 31, 2014
	(Unaudited)
Business loans	$	10,733,020	$	16,331,544
Personal loans		6,888,966		16,975,317
	$	17,621,986	$	33,306,861

The following table represents the aging of loans as of September 30, 2015 by type of loan:

	1-89 Days Past Due		90 - 179 Days Past Due		180 - 365 Days Past Due		Over 1 year Past Due		Total Past Due		Current		Total Loans
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Business loans	$	11,706,842	$	1,571,388	$	3,378,485	$	5,783,147	$	22,439,862	$	1,489,676	$	23,929,538
Personal loans		1,854,238		2,738,930		727,553		3,422,483		8,743,204		1,869,952		10,613,156
	$	13,561,080	$	4,310,318	$	4,106,038	$	9,205,630	$	31,183,066	$	3,359,628	$	34,542,694

The following table represents the aging of loans as of December 31, 2014 by type of loan:

	1-89 Days Past Due		90 - 179 Days Past Due		180 - 365 Days Past Due		Over 1 year Past Due		Total Past Due		Current		Total Loans
Business loans	$	11,112,919	$	5,043,931	$	8,595,516	$	2,692,097	$	27,444,463	$	24,810,342	$	52,254,805
Personal loans		728,929		9,406,980		7,373,088		195,249		17,704,246		12,120,078		29,824,324
	$	11,841,848	$	14,450,911	$	15,968,604	$	2,887,346	$	45,148,709	$	36,930,420	$	82,079,129

6.2 Analysis of loans by credit quality indicator

The following table summarizes the Company’s loan portfolio by credit quality indicator as of September 30, 2015 and December 31, 2014, respectively:

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6. LOANS RECEIVABLE, NET (CONTINUED)

Five Categories	September 30, 2015		%			December 31, 2014		%
	(Unaudited)		(Unaudited)
Pass	$	476,130		1.4	%		32,129,840		39.1	%
Special mention		6,832,396		19.8	%		4,165,311		5.1	%
Substandard		47,142		0.1	%		2,501,627		3.0	%
Doubtful		26,318,205		76.2	%		39,559,908		48.2	%
Loss		868,821		2.5	%		3,722,443		4.5	%
Total	$	34,542,694		100	%		82,079,129		100	%

6.3 Analysis of loans by collateral

The following table summarizes the Company’s loan portfolio by collateral as of September 30, 2015:

	September 30, 2015
	Business Loans		Personal Loans		Total
	(Unaudited)		(Unaudited)		(Unaudited)
Guarantee backed loans	$	20,001,068	$	9,440,900	$	29,441,968
Pledged assets backed loans		3,299,915		1,172,256		4,472,171
Collateral backed loans		628,555		-		628,555
	$	23,929,538	$	10,613,156	$	34,542,694

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6. LOANS RECEIVABLE, NET (CONTINUED)

The following table summarizes the Company’s loan portfolio by collateral as of December 31, 2014:

	December 31, 2014
	Business Loans		Personal Loans		Total
Guarantee backed loans	$	47,613,818	$	27,445,541	$	75,059,359
Pledged assets backed loans		3,990,157		2,378,783		6,368,940
Collateral backed loans		650,830		-		650,830
	$	52,254,805	$	29,824,324	$	82,079,129

Collateral Backed Loans

A collateral backed loan is a loan in which the borrower puts up an asset under their ownership, possession or control, as collateral for the loan. An asset usually is land use rights, inventory, equipment or buildings. The loan is secured against the collateral and we do not take physical possession of the collateral at the time the loan is made. We will verify ownership of the collateral and then register the collateral with the appropriate government agencies to complete the secured transaction. In the event that the borrower defaults, we can then take possession of the collateral asset and sell it to recover the outstanding balance owed. If the sale proceed of the collateral asset is not sufficient to pay off the debt, we will file a lawsuit against the borrower and seek payment for the remaining balance.

Pledged Asset Backed Loans

Pledged loans are loans with pledged assets. The pledged assets are usually certificates of deposit. Lenders take physical possession of the pledged assets at the time the loan is made and do not need to register them with government agencies to secure the loan. If the borrower defaults, we can sell the assets to recover the outstanding balance owed.

Both collateral loans and pledged loans are considered secured loans. The amount of a loan that lenders provide depends on the value of the collateral pledged. Beginning 2011, the Company does not provide unsecured loans.

Guarantee Backed Loans

A guaranteed loan is a loan guaranteed by a third party who is usually a corporation or high net worth individual. As of September 30, 2015 and December 31, 2014, guaranteed loans make up 85.3% and 91.4% of our direct loan portfolio, respectively.

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7. ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss history, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available.

The allowance is calculated at portfolio-level since our loans portfolio is typically of smaller balance homogenous loans and is collectively evaluated for impairment.

For the purpose of calculating portfolio-level reserves, we have grouped our loans into two portfolio segments: Corporate and Personal. The allowance consists of the combination of a quantitative assessment component based on statistical models, a retrospective evaluation of actual loss information to loss forecasts, value of collaterals and could include a qualitative component based on management judgment.

In estimating the probable loss of the loan portfolio, the Company also considers qualitative factors such as current economic conditions and/or events in specific industries and geographical areas, including unemployment levels, trends in real estate values, peer comparisons, and other pertinent factors such as regulatory guidance. Finally, as appropriate, the Company also considers individual borrower circumstances and the condition and fair value of the loan collateral, if any.

In addition, the Company also calculates the provision amount in accordance with PRC regulation “The Guidance for Loan Losses” (“The Provision Guidance”) issued by PBOC and is applied to all financial institutes as below:

1. General Reserve - is based on total loan receivable balance and to be used to cover unidentified probable loan loss. The General Reserve is required to be no less than 1% of total loan receivable balance.

2. Specific Reserve - is based on the level of loss of each loan after categorizing the loan according to their risk. According to the so-called “Five-Tier Principle” set forth in the Provision Guidance, the loans are categorized as “pass”, “special-mention”, “substandard”, “doubtful” or “loss”. Normally, the provision rate is 2% for “special-mention”, 25% for “substandard”, 50% for “doubtful” and 100% for “loss”.

3. Special Reserve - is fund set aside covering losses due to risks related to a particular country, region, industry or type of loans. The reserve rate could be decided based on management estimate of loan collectability.

To the extent the general loan loss reserve rate of 1% as required by PBOC differs from management’s estimates, the management elects to use the higher rate. As of September 30, 2015, the Company utilized Specific Reserve in estimating the loan loss as it is higher than the amount calculated based on the General Reserve. Additionally, as of September 30, 2015, the Company charged off loan balances against the allowances in the amount of $41,134,020, as these loans are deemed as uncollectible. Management assessed that these customers had neither ability nor intension to return the balances.

While management uses the best information available to make loan loss allowance evaluations, adjustments to the allowance may be necessary based on changes in economic and other conditions or changes in accounting guidance.

The following tables present the activity in the allowance for loan losses and related recorded investment in loans receivable by classes of the loans individually and collectively evaluated for impairment as of and for the three months ended September 30, 2015 and 2014:

	Business Loans			Personal Loans			Total
	(Unaudited)			(Unaudited)			(Unaudited)
For the three months ended September 30, 2015
Beginning balance	$	16,598,522		$	9,597,444		$	26,195,966
Charge-offs		(26,341,752	)		(14,792,268	)		(41,134,020	)
Recoveries		-			-			-
Provisions		18,839,288			10,275,122			29,114,410
Ending balance		9,096,058			5,080,298			14,176,356
Ending balance: individually evaluated for impairment		-			-			-
Ending balance: collectively evaluated for impairment	$	9,096,058		$	5,080,298		$	14,176,356

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7. ALLOWANCE FOR LOAN LOSSES (CONTINUED)

	Business Loans		Personal Loans		Total
	(Unaudited)		(Unaudited)		(Unaudited)
For the three months ended September 30, 2014
Beginning balance	$	9,398,454	$	5,763,531	$	15,161,985
Charge-offs		-		-		-
Recoveries		-		-		-
Provisions		2,553,644		3,276,825		5,830,469
Ending balance		11,952,098		9,040,356		20,992,454
Ending balance: individually evaluated for impairment		-		-		-
Ending balance: collectively evaluated for impairment	$	11,952,098	$	9,040,356	$	20,992,454

The following tables present the activity in the allowance for loan losses and related recorded investment in loans receivable by classes of the loans individually and collectively evaluated for impairment as of and for the nine months ended September 30, 2015 and 2014:

	Business Loans			Personal Loans			Total
	(Unaudited)			(Unaudited)			(Unaudited)
For the nine months ended September 30, 2015
Beginning balance	$	14,836,650		$	9,654,071		$	24,490,721
Charge-offs		(26,341,752	)		(14,792,268	)		(41,134,020	)
Recoveries		-			(56,627	)		(56,627	)
Provisions		20,601,160			10,275,122			30,876,282
Ending balance		9,096,058			5,080,298			14,176,356
Ending balance: individually evaluated for impairment		-			-			-
Ending balance: collectively evaluated for impairment	$	9,096,058		$	5,080,298		$	14,176,356

	Business Loans			Personal Loans			Total
	(Unaudited)			(Unaudited)			(Unaudited)
For the nine months ended September 30, 2014
Beginning balance	$	1,049,836		$	326,112		$	1,375,948
Charge-offs		(784,537	)		(731,148	)		(1,515,685	)
Recoveries		-			-			-
Provisions		11,686,799			9,445,393			21,132,191
Ending balance		11,952,098			9,040,356			20,992,454
Ending balance: individually evaluated for impairment		-			-			-
Ending balance: collectively evaluated for impairment	$	11,952,098		$	9,040,356		$	20,992,454

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7. ALLOWANCE FOR LOAN LOSSES (CONTINUED)

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard, doubtful and loss within the Company's internal risk rating system as of September 30, 2015:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Business loans	$	-	$	6,832,396	$	-	$	16,275,463	$	821,679	$	23,929,538
Personal loans		476,130		-		47,142		10,042,742		47,142		10,613,156
	$	476,130	$	6,832,396	$	47,142	$	26,318,205	$	868,821	$	34,542,694

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard, doubtful and loss within the Company's internal risk rating system as of December 31, 2014:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
Business loans	$	20,628,050	$	3,465,669	$	2,115,197	$	22,561,860	$	3,484,029	$	52,254,805
Personal loans		11,501,790		699,642		386,430		16,998,048		238,414		29,824,324
	$	32,129,840	$	4,165,311	$	2,501,627	$	39,559,908	$	3,722,443	$	82,079,129

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8. LOAN IMPAIRMENT

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for corporate and personal loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent.

An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. Currently, estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral which approximates to the carrying value due to the short term nature of the loans.

Loans with modified terms are classified as troubled debt restructurings if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary below market rate reduction in interest rate or an extension of a loan’s stated maturity date. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. Loans classified as troubled debt restructurings are designated as impaired.

Even though the Company allows a one-time loan extension with a period up to the original loan period, which is usually twelve months. Such extension is not considered to be a troubled debt restructuring because the Company does not grant a concession to borrowers. The principal of the loan remains the same and the interest rate is fixed at the current interest rate at the time of extension. Therefore, there were no troubled debt restructurings during the three months and nine months ended September 30, 2015 and 2014, respectively.

9. GUARANTEE PAID ON BEHALF OF GUARANTEE CUSTOMERS

	September 30, 2015		December 31, 2014
	(Unaudited)
Guarantee paid on behalf of guarantee service customers	$	13,667,880	$	10,740,059

Guarantee paid on behalf of guarantee service customers represents payment made by the Company to banks on behalf of thirty-one of its guarantee service customers who defaulted on their loan repayments to the banks. Management performs an evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss history, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. As of September 30, 2015 and December 31, 2014, the Company accrued allowance on the balance in “accrual for financial guarantee services” in the value of $13,854,117 and $5,546,128, respectively.

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10. OTHER ASSETS

Other assets as of September 30, 2015 and December 31, 2014 consisted of:

	September 30, 2015		December 31, 2014
	(Unaudited)
Prepaid bank service charges	$	3,229	$	33,767
Prepaid expenses to investor relationship service providers		-		265,591
Other prepaid expense		89,569		-
Deposit for court filing fees and legal fees		472,997		53,318
Other receivables		56,000		34,551
	$	621,795	$	387,227

Deposit for court filing fees and legal fees will be claimed from default customers.

11. NET INVESTMENT IN DIRECT FINANCING LEASE

On September 25, 2014, PFL entered into a finance lease agreement for the leasing of manufacturing equipment with a total lease receivable of $2.73 million. The lease bears an interest rate of 10.36% per annum. .

On October 13, 2014, PFL entered into another finance lease agreement for the leasing of manufacturing equipment with a total lease receivable of $2.88 million. The lease bears an interest rate of 11.11% per annum.

Future minimum lease receipts under non-cancellable finance lease arrangements are as follows:

	September 30, 2015			December 31, 2014
	(Unaudited)
Within 1 year	$	3,650,335		$	2,549,619
2 years		923,976			1,981,777
3 years		76,998			797,267
Total minimum lease receipts		4,651,309			5,328,663
Less: amount representing interest		(507,848	)		(614,280	)
Present value of minimum lease receipts	$	4,143,461		$	4,714,383

Following is a summary of the components of the Company’s net investment in direct financing leases as of September 30, 2015 and December 31, 2014:

	September 30, 2015			December 31, 2014
	(Unaudited)
Total minimum lease payments to be received	$	4,651,309		$	5,328,663
Less: Amounts representing estimated executory costs		-			-
Minimum lease payments receivable		4,651,309			5,328,663
Less Allowance for uncollectible		(255,934	)		(610,153	)
Net minimum lease payments receivable		4,395,375			4,718,510
Estimated residual value of leased property		-			-
Less: Unearned income		(507,848	)		(614,280	)
Net investment in direct financing lease	$	3,887,527		$	4,104,230

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12. PROPERTY AND EQUIPMENT

The Company’s property and equipment used to conduct day-to-day business are recorded at cost less accumulated depreciation. Depreciation expenses are calculated using straight-line method over the estimated useful life with 5% salvage value below:

Property and equipment consist of the following:

	Useful Life (years)	September 30, 2015			December 31, 2014
		(Unaudited)
Furniture and fixtures	5	$	22,708		$	23,513
Vehicles	4		156,369			242,876
Electronic equipment	3		122,454			125,333
Leasehold improvement	3		174,239			180,413
Less: accumulated depreciation			(419,796	)		(429,981	)
Property and equipment, net		$	55,974		$	142,154

During the nine months ended September 30, 2015, the Company disposed of two vehicles with net book value of $4,073 (original cost of $81,459, accumulated depreciation of $77,386). The Company generated non-interest income of $14,585 from the disposal.

Depreciation expense totaled $27,107 and $27,841 for the three months ended September 30, 2015 and 2014, respectively. Depreciation expense totaled$81,245 and $83,731 for the nine months ended September 30, 2015 and 2014, respectively.

13. INTANGIBLE ASSET

Intangible asset represents the software used for P2P platform, the useful life is estimated at 5 years.

	September 30, 2015 (Unaudited)		December 31, 2014
Software	$	5,694	$	14,530

Amortization expense totaled $1,205 and $0 for the three months ended September 30, 2015 and 2014, respectively. Amortization expense totaled$8,596 and $0 for the nine months ended September 30, 2015 and 2014, respectively.

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14. SHORT-TERM BANK LOANS

Bank Name	Interest rate	Term	September 30, 2015		December 31, 2014
			(Unaudited)
Agricultural Bank Of China	Fixed annual rate of 6.72%	From October 17, 2014 to October 16, 2015	$	2,199,944	$	8,948,910
Agricultural Bank Of China	Fixed annual rate of 6.72%	From October 31, 2014 to October 30, 2015		2,357,082		2,440,612
			$	4,557,026	$	11,389,522

During the nine month ended September 30, 2015, the Company prepaid bank borrowings of $6,641,289 and also repaid the remaining bank borrowings on time.

As of September 30, 2015 and December 31, 2014, the short-term bank loans have maturity terms within 1 year. These loans as of September 30, 2015 and December 31, 2014 were guaranteed by the Wujiang Luxiang shareholders.

Interest expense incurred on short-term loans for the three months ended September 30, 2015 and 2014 was $96,880 and $243,158, respectively. Interest expense incurred on short-term loans for the nine months ended September 30, 2015 and 2014 was $422,710 and $736,283,respectively.

15. DEPOSITS PAYABLE

Deposits payable are security deposits required from customers in order to obtain loans and guarantees from the Company. The deposits are refundable to the customers when the customers fulfill their obligations under loan and guarantee contracts.

16. UNEARNED INCOME

The Company receives guarantee commissions in full at the inception and records unearned income before amortizing it throughout the guarantee service life. Unearned income from guarantee services was $9,891 and $109,439 as of September 30, 2015 and December 31, 2014, respectively.

The Company receives financing leasing service commissions at the inception and records unearned income before amortizing it throughout the guarantee service life. Unearned income from financing leasing services was $72,677 and $73,218 as of September 30, 2015 and December 31, 2014, respectively.

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17. OTHER CURRENT LIABILITIES

Other current liabilities as of September 30, 2015 and December 31, 2014 consisted of:

	September 30, 2015		December 31, 2014
	(Unaudited)
Accrued payroll	$	36,070	$	84,791
Accrued rental fee		94,987		-
Other tax payable		7,332		99,335
Other payable		21,722		11,877
	$	160,111	$	196,003

18. OTHER OPERATING EXPENSE

Other operating expense for the three and nine  months ended September 30, 2015 and 2014 consisted of:

	For the Three Months Ended September 30,				For the Nine months Ended September 30,
	2015		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Depreciation	$	27,829	$	27,841	$	89,841	$	83,731
Travel expenses		1,807		387		7,669		28,718
Entertainment expenses		334		4,050		15,604		36,961
Promotion expenses		-		-		260		7,075
Legal and consulting expenses		164,573		966,356		998,094		1,460,969
Car expenses		12,897		18,666		40,813		61,983
Bank charges		10,613		28,074		33,011		167,020
Audit-related expense		25,329		-		255,779		133,142
Insurance expense		-		59,062		-		200,812
Other expenses		104,712		86,327		251,252		142,845
Total	$	348,094	$	1,190,763	$	1,692,323	$	2,323,256

The legal and consulting expenses mainly consisted of lawsuit fees for outstanding loans and financial guarantees and consulting fees for certain investment relationship service providers.

19. EMPLOYEE RETIREMENT BENEFIT

The Company has made employee benefit contribution in accordance with relevant Chinese regulations, including retirement insurance, unemployment insurance, medical insurance, housing fund, work injury insurance and maternity insurance. The Company recorded the contribution in the salary and employee charges when incurred. The contributions made by the Company were $15,109 and $18,028 for the three months ended September 30, 2015 and 2014, respectively, and $52,743 and $60,964 for the nine months ended September 30, 2015 and 2014, respectively.

20. DISTRIBUTION OF PROFIT

The Company did not distribute any dividend to its shareholders for the three months and nine months ended September 30, 2015 and 2014, respectively.

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21. CAPITAL TRANSACTION

Secondary Public Offering

On May 13, 2014, the Company closed its second public offering (“Follow-on Offering”) of 1,750,000 shares of Common Stock and 1,750,000 warrants to purchase an additional 875,000 shares of Common Stock. The public offering price of the shares was $3.99 per share and the offering pricing for the warrants was $0.01 per warrant. 1,650,386 shares of Common Stock were newly issued by the Company and 99,614 shares of Common Stock were sold by certain selling stockholders. On June 12, 2014, the representative in the Follow-on Offering exercised its over-allotment option to purchase 252,000 warrants to purchase 126,250 shares of Common Stock. The total gross proceeds in the Follow-on Offering and the over-allotment were $6.6 million. After deducting underwriting discounts and commissions and offering expenses payable by the Company and the proceeds to the selling stockholders, the aggregate net proceeds received by the Company totaled approximately $5.7 million.

Common Stock

The Company is authorized to issue up to 100,000,000 shares of Common Stock.

On April 30 2015, the Company issued 60,000 unregistered shares to Long Yi, the Company’s CFO, and 75,000 unregistered shares to Jingen Lin, the Company’s CEO, at a market value of $1.84 per share, in the total amount of $248,400, for their services provided .

As of September 30, 2015 and December 31, 2014, there were 12,390,062 and 12,255,062 shares of Common Stock issued and outstanding, respectively.

Warrants

The IPO underwriters’ and their affiliates’ received warrants to purchase an aggregate of 95,900 shares of Common Stock, which are exercisable at any time, and from time to time, in whole or in part, during the three-year period from February 10, 2014. The warrants are initially exercisable at a per share price of $6.50.

Warrants to purchase an aggregate of 875,000 shares of Common Stock were issued in the Follow-on Offering on May 13, 2014. The issuance price was $0.01 per warrant, and the warrants are exercisable at any time, and from time to time, in whole or in part, during the three-year period from May 13, 2014. The warrants are initially exercisable at a per share price of $5.60 and are recorded as additional paid-in capital.

Warrants to purchase 252,500 shares of Common Stock were issued to the underwriters in the Follow-on Offering. The warrants have a cashless exercise provision and are exercisable at any time, and from time to time, in whole or in part, during the three-year period from May 13, 2014. The warrants are initially exercisable at a per share price of $4.80 and are recorded as additional paid-in capital.

Preferred Stock

The Company is authorized to issue up to 10,000,000 shares of preferred stock, of which 1,000,000 shares are designated as Series A Convertible Preferred Stock (the “Series A Stock”) and 5,000,000 shares are designated as Series B Convertible Preferred Stock (the “Series B Stock”).

The Series A Stock ranked (i) prior to the Common Stock and to all other classes and series of equity securities of the Company which by their terms do not rank senior to the Series A Stock, and (ii) junior to any class or series of equity securities which by its terms ranked senior to the Series A Stock. The Series A Stocks was subordinate to and ranked junior to all indebtedness of the Company. Each share of the Series A Stock was on the day on which the Company consummated its IPO, automatically and without any action on the part of the holder thereof converted into issued and outstanding shares of Common Stock beneficially owned by a consultant who received the shares on December 19, 2011. The number of shares of Common Stock issued upon conversion of the Series A Stock was equal to the purchase price of the Series A Stock divided by a per share conversion price of 50% of the price of a share of Common Stock in the IPO. No new shares were issued by the Company at the conversion. In addition, the holders were not permitted to convert their preferred stock prior to consummation of the IPO.

The Series B Preferred Stock ranked (i) prior to the Common Stock and to all other classes and series of equity securities of the Company which by their terms do not rank senior to the Series B Preferred Stock and (ii) junior to any class or series of equity securities which by its terms ranked senior to the Series B Preferred Stock. The Series B Stock was subordinate to and ranked junior to all indebtedness of the Company. Each share of the Series B Stock was on the day on which the Company consummated its IPO, automatically and without any action on the part of the holder thereof converted into issued and outstanding shares of Common Stock beneficially owned by a consultant who received the shares on December 19, 2011. The number of shares of Common Stock issued upon conversion of the Series B Stock was equal to the purchase price of the Series B Stock divided by a per share conversion price of 25% of the price of a share of Common Stock in the IPO. No new shares were issued by the Company at the conversion. In addition, the holders were not permitted to convert their preferred stock prior to consummation of the IPO.

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21. CAPITAL TRANSACTION (CONTINUED)

Preferred Stock (continued)

Between January 1, 2012 and April 1, 2013, the Company issued a total of 745 shares of Series A Stock to an aggregate of 11 investors pursuant to certain subscription agreements. We received gross proceeds of $372,500 and incurred costs associated with this private placement of $93,125.

Between October 12, 2012 and May 8, 2013, the Company issued a total of 760 shares of Series B Stock to an aggregate of 44 investors pursuant to certain subscription agreements. We received gross proceeds of $380,000 and incurred costs associated with this private placement of $95,000.

On August 16, 2013 when the Company closed its IPO, all outstanding shares of the Series A Stock and Series B Stock were converted into an aggregate of 348,462 shares of already issued and outstanding Common Stock beneficially owned by a consultant who received our shares on December 19, 2011, automatically and without any action on the part of the holder thereof. The per share conversion price of Series A Stock and Series B Stock was equal to $3.25 and $1.63, respectively.

The discount on the Series A and B Stock was accounted for as a beneficial conversion feature upon conversion. The total amount of discount was $752,500, which was accounted for as a reduction to retained earnings and an offsetting increase to additional paid in capital in the Company's financial statements.

22. STATUTORY RESERVE

In accordance with the PRC Regulations on Enterprises with Foreign Investment and the articles of association of the Company’s PRC subsidiaries, a foreign-invested enterprise established in the PRC is required to provide statutory reserve, which is appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A foreign-invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. The Company allocates 15% of its annual after-tax profit to the statutory reserve. The statutory reserve can only be used for specific purposes and are not distributable as cash dividends. WFOE was established as a foreign-invested enterprise and, therefore, is subject to the above mandated restrictions on distributable profits. For the nine months ended September 30, 2015, the Company did not accrue the statutory reserve due to net loss.

23. LOSS PER COMMON SHARE

The following table sets forth the computation of basic and diluted loss per common share for the three months and nine months ended September 30, 2015 and 2014, respectively:

	For the Three Months Ended						For the Nine months Ended
	September 30,						September 30,
	2015			2014			2015			2014
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net loss attributable to the common shareholders		(37,101,946	)		(6,154,050	)	$	(40,629,513	)	$	(22,252,797	)
Basic weighted-average common shares outstanding		12,390,062			12,246,812			12,330,721			11,377,427
Effect of dilutive securities		-			-			-			-
Diluted weighted-average common shares outstanding		12,390,062			12,246,812			12,330,721			11,377,427
Loss per share:
Basic		(2.994	)		(0.503	)	$	(3.295	)	$	(1.956	)
Diluted		(2.994	)		(0.503	)	$	(3.295	)	$	(1.956	)

Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is the same as basic earnings per share due to the lack of dilutive items in the Company and the fact that Company is in net loss position for the three months and nine months ended September 30, 2015 and 2014, respectively.

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24. INCOME TAXES AND PREPAID TAXES

Effective January 1, 2008, the New Taxation Law of PRC stipulates that domestically owned enterprises and foreign invested enterprises (the “FIEs”) are subject to a uniform tax rate of 25%. While the New Tax Law equalizes the tax rates for FIEs and domestically owned enterprises, preferential tax treatment may continue to be given to companies in certain encouraged sectors and to entities classified as high-technology companies, regardless of whether these are domestically-owned enterprises or FIEs. In November 2009, the Jiangsu Province Government issued Su Zheng Ban Fa [2009] No. 132 which stipulates that micro-credit companies in Jiangsu Province are subject to preferential tax rate of 12.5%. As a result, the Company is subject to the preferential tax rate of 12.5% for its loan business for the periods presented. The taxation practice implemented by the tax authority governing the Company is that the Company pays enterprise income taxes at rate of 25% on a quarterly basis, and upon annual tax settlement done by the Company and the tax authority in five (5) months after December 31 the tax authority will refund the Company the excess enterprise income taxes it paid beyond the rate of 12.5%.

The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. For the nine months ended September 30, 2015 and 2014,the Company had no unrecognized tax benefits. For the nine months ended September 30, 2015, the Company had net tax operating losses from its PRC subsidiaries and its consolidated VIE of $30,409,230 which will expire in the year ending December 31, 2020. As of September 30, 2015, the Company has carry-forward tax operating losses from its PRC subsidiaries and its consolidated VIE of $50,606,855, which will expire from the year ending December 31, 2019 to 2020. The Company recognized deferred income tax assets of $9,479,325 as of September 30, 2015. However, the Company estimates there will be no sufficient net income before income tax from years ending December 31, 2015 to 2020 to realize the deferred income tax assets. The Company provided valuation allowance for deferred income tax assets of $9,479,325 as of September 30, 2015.

The Company does not anticipate any significant increase to its liability for unrecognized tax benefit within the next 12 months. The Company will classify interest and penalties related to income tax matters, if any, in income tax expense.

Prepaid taxes and income tax payable are comprised of

	September 30, 2015		December 31, 2014
	(Unaudited)
Prepaid taxes and tax payable, net	$	1,714,843	$	1,758,693

Prepaid taxes represented the income tax refund the Company will receive from the tax authority in the annual income tax settlement or can deduct future income tax payables. The prepaid taxes was mainly generated from the Company’s VIE.

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24. INCOME TAXES AND PREPAID TAXES (CONTINUED)

Income tax expense for the nine months ended September 30, 2015 and 2014 is comprised of:

	For the Nine months Ended
	September 30,
	2015		2014
	(Unaudited)		(Unaudited)
Current income tax expense	$	7,508	$	-
Deferred income tax expense		587,142		10,979
Total provision for income taxes	$	594,650	$	10,979

The Company made taxable profit during the nine months period ended September 30, 2015 in PFL, one of the Company’s PRC subsidiaries and accrued current income tax expenses therefrom.

The effective tax rates for the three months and nine months ended September 30, 2015 and 2014 are 1.49% and 0.07%, respectively.

Deferred tax liability arises from government incentive for the purpose of covering the Company’s actual loan losses and ruled that the income tax will be imposed on the subsidy if the purpose is not fulfilled within 5 years after the Company receives the subsidy. As of September 30, 2015, subsidy of$1,032,213 did not fulfill the purpose within due date and the related deferred tax liability was reversed. As of September 30, 2015 and December 31, 2014, the deferred tax liability amounted to $191,400 and $313,874, respectively.

As of September 30, 2015 and December 31, 2014, the Company intends to permanently reinvest the undistributed earnings from its foreign subsidiaries to fund future operations. The amount of unrecognized deferred tax liabilities for temporary differences related to investments in foreign subsidiaries is not determined because such a determination is not practicable.

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25. RELATED PARTY TRANSACTIONS AND BALANCES

1) Nature of relationships with related parties

Name	Relationship with the Company
Wujiang Chunjia Textile Trading Co., Ltd (“Chunjia Textile”)	Controlled by Huichun Qin
Huichun Qin	Non-controlling shareholder and former CEO and chairman of board of directors

2) Related party balances

Amount due from related parties were as follows:

	September 30, 2015		December 31, 2014
	(Unaudited)
Chunjia Textile	$	411,729	$	162,707
Huichun Qin		1,098,197		1,147,088

During the year ended December 31, 2014, the Company provided financial guarantee service for Chunjia Textile to guarantee a loan of $816,193. As of September 30, 2015, the Company repaid Chunjia Textile’s loan on behalf of it for $411,729. The Company accrued provision of $205,865 on the outstanding balance as of September 30, 2015.

Huichun Qin transferred $1,098,197(equivalent of RMB 7 million) to his personal account without proper authorization on July 2, 2014. As of September 30, 2015, Huichun Qin has not repaid the balance. The amount was recorded as a deduction of the Company’s equity as of September 30, 2015 and December 31, 2014, respectively.

3) Related party transactions

The Company had no transaction with related parties during the three months and nine months ended September 30, 2015.

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26. COMMITMENTS AND CONTINGENCIES

1) Lease Commitments

The Company extended its lease agreement of its principal office for a 5-year period from October 1, 2013 to September 30, 2018. Additionally, the Company leased its new office under a lease agreement from June 1, 2015 to May 31, 2021. The following table sets forth the Company’s contractual obligations as of September 30, 2015 in future periods:

	Rental payments (Unaudited)
Year ending September 30, 2016	$	328,256
Year ending September 30, 2017		328,256
Year ending September 30, 2018		328,256
Year ending September 30, 2019		75,426
Year ending September 30, 2020 and thereafter		125,711
Total	$	1,185,905

2) Guarantee Commitments

The guarantees will terminate upon payment and/or cancellation of the obligation; however, payments by the Company would be triggered by failure of the guaranteed party to fulfill its obligation covered by the guarantee. Generally, the average guarantee expiration terms ranged within 6 to 12 months and the average percentage of the guarantee amount as security deposit is 10% ~ 20%. As of September 30, 2015 and December 31, 2014, the loan amount guaranteed by the Company was $14,071,781 and $21,794,663, respectively, for its financial guarantee service customers.

3) Contingencies

The Company is involved in various legal actions arising in the ordinary course of its business. As of September 30, 2015, the Company was involved in 78 collection lawsuits, among which 64 were related to its loan business and 14 were related to guarantee business. The Company initiated legal proceedings to collect delinquent balances from borrowers and guarantees. 34 of these cases with an aggregated claim of $11.1 million have been adjudicated by the Court in favor of the Company and these cases are settled or in the process of enforcement. The remaining 44 cases with an aggregated claim of $27.6 million have not been adjudicated by the Court as of September 30, 2015.

On August 6, 2014, a purported shareholder Andrew Dennison filed a putative class action complaint in the United States District Court District of New Jersey (the “N.J. district court”) relating to a July 25, 2014 press release about the Company’s progress in recovering a significant portion of the $5.4 million the Company paid in the first quarter of 2014 on behalf of loan guarantee customers. The action, Andrew Dennison v. China Commercial Credit, Inc., et al., Case No. 2:2014-cv-04956, alleges that the Company and its current and former officers and directors Huichun Qin, Long Yi, Jianming Yin, Jinggen Ling, Xiangdong Xiao, and John F. Levy violated the federal securities laws by misrepresenting in prior public filings certain material facts about the risks associated with its loan guarantee business. On October 2, 2014, purported shareholders Zhang Yun and Sanjiv Mehrotra (the “Yun Group”) asserted substantially similar claims against the same defendants in a putative class action captioned Zhang Yun v. China Commercial Credit, Inc., et al., Case No. 2:14-cv-06136 (D. N.J.). Neither complaint states the amount of damages sought.

On or about October 6, 2014, Dennison, the Yun Group and another purported shareholder, Jason Stark, filed motions to consolidate the cases, be appointed as lead plaintiff and to have their respective counsel appointed as lead counsel. On October 31, 2014, the N.J. district court entered an order consolidating the cases under the caption “In re China Commercial Credit Inc. Securities Litigation” and appointing the Yun Group as lead plaintiff (“Class Plaintiff”) and the Yun Group’s counsel as lead counsel.

On November 18, 2014, the Yun Group and the Company, which at that point was the only defendant served, entered into a stipulation to transfer of the case to the Southern District of New York. On December 18, 2014, Mr. Levy, who had by then been served, joined in the stipulation. On December 29, 2014, the N.J. district court entered an order transferring the action. The transfer was effected on January 22, 2015, and assigned docket number 1:15-cv-00557-ALC (S.D.N.Y.).

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26. COMMITMENTS AND CONTINGENCIES (CONTINUED)

3) Contingencies (Continued)

Under the schedule stipulated by the parties, the Yun Group was to file an amended complaint within 60 days of the date that the transfer was effected, and the defendants’ date to answer or move was within 60 days of that filing. On April 7, 2015, the Class Plaintiff filed a Second Amended Class Action Complaint (the “CAC”). The CAC also asserts securities law claims against defendants Axiom Capital Management, Inc., Burnham Securities Inc. and View Trade Securities, Inc. (collectively, the “Underwriter Defendants”). The CAC alleges that the Company engaged in a fraudulent scheme by engaging in undisclosed and improper lending practices and made misleading representations regarding its underwriting policies, the loan portfolio quality, the loan loss allowance, compliance with U.S. GAAP and its internal control systems. 

In accordance with the Court’s procedures, the Company and Mr. Levy and the Underwriter Defendants requested a Pre-Motion Conference in anticipation of filing a motion to dismiss the CAC, which was held on June 25, 2015. At the conference, the Court adjourned the date to answer or move in order to provide the Class Plaintiff with time to serve certain overseas defendants. After the conference, the Class Plaintiff voluntarily dismissed Jianming Yin, Jinggen Ling and Xiangdong Xiao from the action, and Long Yi agreed to waive service, which left Huichun Qin as the sole remaining defendant to serve. The case remains stayed pending service of Huichun Qin.

The Company believes that this lawsuit was without merit and intends to vigorously defend against it. At the early stage of the proceedings, the Company is not able to estimate the probability of success or loss.

On February 3, 2015, a purported shareholder Kiram Kodali filed a putative shareholder derivative complaint in the United States District Court for the Southern District of New York, captioned Kiran Kodali v. Huichun Qin, et al., Case No. 15-cv-806. The action alleges that the Company and its current and former officers and directors Huichun Qin, Long Yi, Jianming Yin, Jinggen Ling, Chunfang Shen, John F. Levy, Xiaofang Shen and Chunjiang Yu violated their fiduciary duties, grossly mismanaged the Company and were unjustly enriched based upon the transfer that was the subject of the Internal Review and other grounds substantially similar to those asserted in the class action complaints. Kodali did not serve a demand upon the Company and alleges that demand is excused. The Company and Mr. Levy have been served. An amended Consolidated Amended Class Action Complaint (the “CACAC”) was filed on April 20, 2015. On May 29, 2015, the Court “so ordered” a stipulation among Kodali, the Company and Mr. Levy staying all proceedings in the derivative case except for service of process on individual defendants until the earlier of thirty days of termination of the stipulation, dismissal of the class action with prejudice or the date any of the defendants in the class action file an answer to the CAC. The Company believes that this lawsuit is without merit and intends to vigorously defend against it. At this stage of the proceedings, the Company is not able to estimate the probability of success or loss.

On May 18, 2015, WFOE filed a civil complaint against Huichun Qin with the Wujiang Region Suzhou City People’s Court claiming Mr. Qin’s misappropriation of RMB 7 million in July 2014. The complaint was rejected due to a procedural issue and the Company is evaluating its strategic options.

27. SUBSEQUENT EVENT

Contingencies 

During the period from October 1, 2015 to the date of this report, the Company was involved in one new lawsuit, which is related to guarantee business. The Company initiated legal proceedings to collect delinquent balance from the guarantor. This case, with a claim of $0.57 million is still at the initial stage of the litigation.

Charged-off loans

During the period from October 1, 2015 to the date of this report, the Company assessed the charged-off loan and guarantee balances recorded as of September 30, 2015 and was of the opinion that these balances were uncollectible.

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ITEM 2  MANAGEMENT’S DISCUSSION AND ANALYSIS OF  FINANCIAL CONDITION AND RESULTS OF OPERATIONS  

The following discussion and analysis of our financial condition and results of operations for the three and nine months  ended September 30, 2015 should be read in conjunction with the Financial Statements and corresponding notes included in this Quarterly Report on Form 10-Q. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the Risk Factors and Notes Regarding Forward-Looking Statements in this report. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” “target”, “forecast” and similar expressions to identify forward-looking statements.

We are a financial services firm operating in China. Our current operations are mainly conducted through Wujiang Luxiang, a fully licensed microcredit company which we control through our subsidiaries and certain contractual arrangement, and consist of providing short-term direct loans and loan guarantees to small and medium enterprises (“SME”s) located in Wujiang City, Jiangsu Province of China. As of September 30, 2015, we have a $34.5 million portfolio of direct loans to 69 borrowers and a total of $14.1 million in loan guarantees for 10 borrowers. We were established under the 2008 Guidance on the Small Loan Company Pilot of the China Banking Regulatory Commission and the People's Bank of China (“PBOC”) (No.23) (“Circular No. 23”) to extend short term loans and loan guarantees to SMEs, a class of borrowers that we believe have been underserved in the Chinese lending market. The loans that we provide bridge the gap between Chinese-state run banks that have not traditionally served the capital needs of SMEs and high interest rate “underground” lenders, and our loans provide capital at more favorable terms and sustainable interest rates.

As the rate of fees and commissions generated from the guarantee business has been decreasing, the Company has decided that the revenue does not justify the default risks involved, and therefore expects to further reduce the traditional guarantee business and hold off on pursuing the guarantee business to be provided via the Kaixindai Financing Services Jiangsu Co. Ltd (“Kaixindai”) platform as previously planned. Management may actively resume the guarantee business if economic conditions improve in the future.

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On September 5, 2013, our wholly owned subsidiary, CCC International Investment Holding Ltd. (“CCC HK”), established Pride Financial Leasing (Suzhou) Co. Ltd. (“PFL”) in Jiangsu Province, China. PFL was expected to offer financial leasing of machinery and equipment, transportation vehicles, and medical devices to municipal government agencies, hospitals and SMEs in Jiangsu Province and beyond. As of the date of this quarterly report, PFL entered into two financial leasing agreements for an aggregate lease receivable of $5.65 million (one with a monthly principle and interest income approximating $81,600 for the period during November 13, 2014 to May 12, 2015, and approximating $80,000 for the period from May 13, 2015 and thereafter, and the other with a quarterly principle and interest income approximating $342,800). We do not currently have further funds to deploy in the financial leasing business.

Key Factors Affecting Our Results of Operation

Our business and operating results are affected by China’s overall economic growth local, economic condition, market interest rate and the borrowers repayment ability. Unfavorable changes could affect the demand for the services that we provide and could materially and adversely affect our results of operations. Our results of operations are also affected by the regulations and industry policies related to the microcredit industry in the PRC.

Due to changes in the applicable microcredit lending regulations in Jiangsu Province, starting August 2012 we elected to charge no more than three times the PBOC Benchmark Rate. Prior to August 2012, we were allowed to charge up to four times the PBOC Benchmark Rate. The decrease in the PBOC Benchmark Rate and the revised restriction on the allowable points above PBOC Benchmark Rate have slowed our growth in net interest income.

Our results of operations are also affected by the provision for loan losses and provision for financial guarantee loss which are noncash items and represents an assessment of the risk of future loan losses. Increases in the allowance for loan losses are achieved through provision for loan losses that are charged against net interest income.

Although we have generally benefited from China’s economic growth and the policies to encourage lending to farmers and SMEs, we are also affected by the complexity, uncertainties and changes in the PRC regulations governing the micro lending industry. Due to PRC legal restrictions on foreign equity ownership of and investment in the micro lending sector in China, we rely on contractual arrangements with Wujiang Luxiang, and its shareholders to conduct most of our current business in China. We face risks associated with our control over our variable interest entity, as our control is based upon contractual arrangements rather than equity ownership.

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Results of operations

Three Months Ended September 30, 2015 as Compared to Three Months Ended September 30, 2014

	For the Three Months Ended September 30,
	2015			2014			Amount			Change %
Interest income
Interests and fees on loans and direct financing lease	$	156,498		$	1,457,902		$	(1,301,404	)		-89	%
Interest on deposits with banks		7,054			7,843			(789	)		-10	%
Total interest and fees income		163,552			1,465,745			(1,302,193	)		-89	%
Interest expense					-
Interest expense on short-term bank loans		(96,880	)		(243,158	)		146,278			-60	%
Net interest income		66,672			1,222,587			(1,155,915	)		-95	%
Provision for loan losses		(29,210,186	)		(5,817,156	)		(23,393,030	)		402	%
Over provision for direct financing lease losses		(163,922	)		-			(163,922	)		>100	%
Net interest income/(loss) after provision for loan losses and financing lease losses		(29,307,436	)		(4,594,569	)		(24,712,867	)		538	%
Commissions and fees on financial guarantee services		24,565			87,774			(63,209	)		-72	%
Provision on financial guarantee services		(7,322,936	)		(138,457	)		(7,184,479	)		5189	%
Commission and fees loss on guarantee services, net		(7,298,371	)		(50,683	)		(7,247,688	)		14300	%
Net Revenue		(36,605,807	)		(4,645,252	)		(31,960,555	)		688	%
Non-interest income
Government incentive		-			(81	)		81			-100	%
Other non-interest income		19,439			26,276			(6,837	)		-26	%
Total non-interest income		19,439			26,195			(6,756	)		-26	%
Non-interest expense
Salaries and employee surcharge		(131,778	)		(206,523	)		74,745			-36	%
Rental expenses		(83,501	)		(68,078	)		(15,423	)		23	%
Business taxes and surcharge		(12,008	)		(69,743	)		57,735			-83	%
Other operating expense		(348,094	)		(1,190,762	)		842,668			-71	%
Total non-interest expense		(575,381	)		(1,535,106	)		959,725			-63	%
Foreign exchange loss		1,194			-			1,194			>100	%
Loss Before Taxes		(37,160,555	)		(6,154,163	)		(31,006,392	)		504	%
Income tax expense		58,609			113			58,496			51766	%
Net Loss		(37,101,946	)		(6,154,050	)		(30,947,896	)		503	%
Loss per Share- Basic and Diluted		(2.994	)		(0.503	)		(2.491	)		495	%
Weighted Average Shares Outstanding-Basic and Diluted		12,390,062			12,246,812			143,250			1	%
Net Loss		(37,101,946	)		(6,154,050	)		(30,947,896	)		503	%
Other comprehensive income
Foreign currency translation adjustment		(1,352,337	)		33,715			(1,386,052	)		-4111	%
Comprehensive Loss	$	(38,454,283	)	$	(6,120,335	)	$	(32,333,948	)		528	%

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The Company’s net loss for the three months ended September 30,2015 was $37,101,946 representing an increase of $30,947,896 or 503%, from net loss of $6,154,050 for the three months ended September 30,2014. The decrease in net loss for the three months ended September 30,2015 was the net effect of the changes in the following components:

● a decrease in net interest income of $1,155,915;

● increases in the provision for loan losses of $23,393,030 and in the provision for direct financing leases of $163,922;

● a decrease in commission and fees loss on financial guarantee services of $63,209;

● an increase of provision on financial guarantee services of $7,184,479;

● a decrease in total non-interest expense of $959,725; and

● an increase in enterprise income tax expense of $58,496;

The following paragraphs discuss changes in the components of net loss in greater details during the three months ended September 30, 2015, as compared to the three months ended September 30, 2014.

Net Interest Income

Net interest income is equal to interest income we generated less interest expenses on short-term bank loans we incurred. The Company’s net interest income decreased by $1,155,915, or 95% to $66,672 during the three months ended September 30, 2015, as compared to net interest income of $1,222,587 during the three months ended September 30, 2014.

The interest and fees on loans, direct financing leases and deposits with banks decreased by $1,302,193, or 89% from $1,465,745 for the three months ended September 30, 2014 to $163,552 for the three months ended September 30, 2015. The decrease is the combined effect of: (1) The Company charged off non-performing loans of approximately $41.1 million, leading to significant interest income charged off as well; (2) decrease in effective weighted average loan interest rate from 14.57% for the loan portfolio as of September 30, 2014 to 13.21% as of September 30, 2015 due to the mandatory requirement promulgated by Jiangsu Finance Bureau in June of 2013 that effective from October 1, 2013 the maximum interest rate a microcredit company in Jiangsu province is permitted to charge shall be fifteen percent (15%) compared to eighteen percent (18%) previously permitted; and (3) the decrease in the amount of monthly interest received. Compared to the same period last year, a substantial amount of borrowers choose to repay the principal and the interest due at the maturity of the loan term instead of making monthly interest payments. Both payments are permissible under the agreements we have with the borrowers.

45

Net Interest Income (continued)

Since the beginning of 2014, People’s Bank of China continued to withdraw a significant amount of liquidity from the market, which has made it even harder for SMEs to gain access to capital. The bank lenders usually require an old loan be paid in full upon maturity before they approve a new loan to the same borrower. Some SMEs have to borrow from so-called “underground” lenders, or shadow banks to repay the loans due to the banks. Additionally, the banks denied to extend new loans to some SMEs even after they made the full repayment for the loans due and satisfied other conditions. Management is concerned that the borrowers may use the proceeds from the loans we grant to them as a means of repayment to the other banks or even to the underground lenders, instead of using them in operations. Therefore, management decided to grant new loans in a more cautious manner. During the three months ended September 30, 2015, we did not grant any loans but renewed 26 loans with an average loan size of $463,000, as compared to grant of 10 loans with an average loan size of $402,000 during the three months ended September 30, 2014. Since the renewal was made in late September 2015 and the management has no intention to expand its direct loan business, the interest income generated during three months ended September 30, 2015 declined.

Due to the long-term nature of our restricted deposits with third party banks, we utilized these deposits as term deposits which in turn generated interest income on deposits with banks of $7,054 during the three months ended September 30, 2015 as compared to $7,843 during the three months ended September 30, 2014. Caused by the reduction of our traditional guarantee business with banks, we have closed several restricted deposit accounts with banks through which we provided guarantee services to our customers. As a result, the interest income on deposits with bank was insignificant during the three months ended September 30, 2015 and 2014, respectively.

Interest expense represents interest incurred on short-term bank loans. The interest incurred on short-term bank loans decreased by $146,278 or 60%. This was mainly caused by a decrease of total bank borrowing balance by $6.8 million from $11.4 million as of September 30, 2014 to $4.6 million as of September 30, 2015. During the three months ended September 30, 2015, the interest expense related to the loans from banks was $96,880.

46

Provision for Loan Losses

The Company’s provision for loan losses was $29,210,186 and $5,817,165 for the three months ended September 30, 2015 and 2014, respectively. The provision for loan losses was determined by comparing the beginning and ending balance of allowance for loan losses for business and personal loans. If the ending balance of the allowance of loan losses after any charge offs (net of recoveries) is less than the beginning balance, it will be recorded as a “reversal”; if it is larger, it will be recorded as a “provision” in the allowance for loan loss. The netting amount of “reversal” and “provision” is presented in the consolidated statements of income and comprehensive income and the components of the provision for loan losses were disclosed in Note 7 of financial statements.

Provision for loan losses increased significantly for the three months ended September 30, 2015. This is mainly caused by continued deterioration of loan quality commenced during the three months ended September 30, 2014. With a dramatic increase of “loss loans”, the Company witnessed an increase in accrual of provision during the three months ended September 30, 2015.

Since the beginning of 2014, the economic conditions in the eastern part of China, especially the Yangtze River Delta region, has been challenging due to the downturn of the general economic situation in China. Wujiang, which is in the heart of this region, has been significantly affected. The textile industry, which is the pillar industry in the Wujiang area, as well as other industries, has been facing downward pressure. As the local SMEs’ profitability and repayment ability deteriorates, “doubtful” and “loss” bank loans drastically increased. As such, our provision for loan losses substantially increased since 2014.

In February and March 2015, the Company reviewed the classification of its loan portfolios within its rating system to test the adequacy of the allowances calculated thereby. As a result of such testing, the Company decided to reclassify certain loans into different categories. The Company reviewed the profile, financial condition and other relevant information and documents of each customer in the lending businesses. For customers with several loans with different due dates, if one of whose loans was past due, the Company decided to reclassify all loans of the customer's as past due (even the other loans that were not mature yet). For extended loans, the Company re-evaluated the customer's repayment ability in a more cautions manner and reclassified the loans of customers without very strong financial condition into the past due category. These reclassifications affected numerous customer accounts.

During the three months ended September 30, 2015, management continued to assess the adequacy of the allowances in a cautious manner. Management assessed the collectability of loan receivable balances on an individual basis and concluded the collection from certain borrowers is remote. Therefore, management determined to charge off loan balances against allowances, in the amount of $41.1 million, as these loans are deemed as uncollectible. Management concluded that these borrowers had neither ability nor intention to make repayment as (1) these charged loans are guarantee backed loans which are subordinated to asset backed loans these borrowers obtained from the banks, (2) most of our borrowers or their guarantors are in the textile industry and the majority of the textile businesses are struggling due to the continued and worsened downturn trend in China’s macro-economic environment during the third quarter of fiscal year 2015 and quite a number of textile businesses went bankrupt and (3) management was advised by local counsels representing the Company in the collection lawsuits that the chances of collection is quite remote given the large scale defaults in both large and small businesses in Wujiang region.

47

Net Commission and Fees on Guarantee Business

The Company also generated net income by charging fees for financial guarantee services provided to our customers to help them obtain loans from other banks. We generally charge a one-time fee of 1.8% - 3.6% multiplied by the amount of loans being guaranteed, based on the nature of the guarantee and whether the customer is new or existing. As of September 30, 2015, the off-balance-sheet financial guarantee amounted to $14.1 million. The commissions and fees generated from our financial guarantee services decreased from $87,774 for the three months ended September 30, 2014 to $24,565 for the three months ended September 30, 2015, representing a decrease of $63,209, or 72%.The reduction was due to the decreased number of guarantee transactions as management reduced the guarantee portfolio to control the default risk.

As of September 30, 2015, we have provided guarantees for a total of $14.1 million underlying loans to approximately 16 financial guarantee service customers, a reduction of 35.4% compared to a total of $21.8 million as of December 31, 2014.

Provision on Financial Guarantee Services

The provision on financial guarantee services increased from $138,457 for the three months ended September 30, 2014, to $7,322,936 for the three months ended September 30, 2015, representing an increase of $7,184,479.

The methodology the Company used to estimate the liability for probable guarantee loss considers the guarantee contract amount and a variety of factors, which include, dependence on the counterparty, latest financial position and performance of the customers, actual defaults, estimated future defaults, historical loss experience, estimated value of collaterals or guarantees the costumers or third parties offered, and other economic conditions such as the economic trend of the area and the country. The estimates are based upon currently available information. Based on the recent lawsuit results and repayment status by defaulted customers, the Company estimated 50% of off-balance-sheet financial guarantee services may be subject to default and their repayment may be “not likely”. As of September 30, 2015, the Company accrued 50% of contract amount as compared to 1% of contract amount as of September 30, 2014.

We accrued specific provision on the balance of repayment on behalf of defaulted customers according to “Five-Tier” principal. The Specific Reserve is based on the level of loss of each loan after categorizing the loan according to their risk. According to the “Five-Tier Principle” set forth in the Provision Guidance, the guarantees are categorized as “special-mention”, “substandard”, “doubtful” or “loss”. Normally, the provision rate is 2% for “special-mention”, 25% for “substandard”, 50% for “doubtful” and 100% for “loss”.

As explained above, since the beginning of 2014, People’s Bank of China continued to withdraw a significant amount of liquidity from the market, which has made it even harder for SMEs to gain access to capital. The bank lenders usually require an old loan be paid in full upon maturity before they approve a new loan to the same borrower. During the twelve months ended December 31, 2014, the banks denied to extend new loans to many SMEs even after they made the full repayment for the loans due and satisfied other conditions. As a result, some of the SME borrowers for which we provided the guarantees decided to default on the bank loans. Therefore the amount of repayment we made to the bank lenders substantially increased since the year ended December 31, 2014. We have brought collection actions against both the borrowers and their counter-guarantors. However, management was advised by counsel in the collection action that the chance of collection is remote given the large scale bad debt prevalent in Wujiang region. During the three months ended September 2015, we charged off guarantee paid on behalf of one customer against accrual for financial guarantee service, in the amount of $0.27 million. In addition, due to the uncertainty of the collection outcome, we increased our accrual for financial guarantee services significantly from $5,546,128 as of December 31, 2014 to $6,958,944 as of September 30, 2015

48

Provision on Financial Guarantee Services (continued)

In February and March 2015, the Company revisited the classification of its guarantee portfolios within its rating system to test the adequacy of the allowances calculated thereby. As a result of such testing, the Company decided to reclassify certain guarantees into different categories. The Company reviewed the profile, financial condition and other relevant information and documents of each customer in the guarantee businesses. For customers with several guarantees with different due dates, if one guaranteed loan was past due, the Company decided to reclassify all of this customer's guaranteed loans as past due (even the other loans that were not mature yet). These reclassifications affected numerous customer accounts. We engaged He-Partners Law Firm, one of the largest law firms in Suzhou City, to represent us in the legal proceedings against the borrowers and their counter guarantors, and expect to collect part of the outstanding balance in a period ranging from twelve months to one year upon adjudication by the court in favor of the Company. The timing of collection and ultimate amount of funds we can recover depend on a few factors, including the repayment ability of the borrower and their counter-guarantors, the execution time of the court, other obligations the borrowers have and priority over the claim for the Company.

Non-interest Expenses

Non-interest expenses decreased from $1,535,106 for the three months ended September 30, 2014 to $575,381 for the three months ended September 30, 2015, representing a decrease of $959,725 or 63%. Non-interest expenses primarily consisted of salary and employee surcharge, office rental expense, business tax and surcharge, depreciation of equipment, travel expenses, entertainment expenses, professional service fees, and other office supplies. The decrease was mainly attributable to a decrease of salary and employee surcharge by $74,745, or 36%, and a decrease of other operating expenses by $842,668, or 71%. The decrease of salary and employee surcharge was mainly caused by resignation of several staff. Other operating expenses were lower during the three months ended September 30, 2015 as compared to the three months ended September 30, 2014, primarily due to a net effect of a decrease in legal and consulting fee of $801,783, a decrease in insurance expense of $59,062, against an increase in audit-related expenses of $25,329.

Income Tax

Income tax expenses changed from an income tax credit of $113 for three months ended September 30, 2014 to an income tax credit of $58,609 for three months ended September 30, 2015, representing a fluctuation of $58,496. Wujiang Luxiang, the Company’s VIE suffered a taxable loss incurred during the three months ended September 30, 2015, while PFL, the Company’s direct financing lease business made taxable profit during the three months ended September 30, 2015, leading to a reversal of current income tax expense of $58,609.

49

Results of operations

Nine Months Ended September 30, 2015 as Compared to Nine Months Ended September 30, 2014

	For the Nine Months Ended September 30,
	2015			2014			Amount			Change %
Interest income
Interests and fees on loans and direct financing lease	$	2,345,493		$	5,987,935		$	(3,642,442	)		-61	%
Interest on deposits with banks		15,378			59,386			(44,008	)		-74	%
Total interest and fees income		2,360,871			6,047,321			(3,686,450	)		-61	%
Interest expense					-
Interest expense on short-term bank loans		(422,710	)		(736,283	)		313,573			-43	%
Net interest income		1,938,161			5,311,038			(3,372,877	)		-64	%
Provision for loan losses		(30,762,076	)		(21,164,733	)		(9,597,343	)		45	%
Over provision for direct financing lease losses		343,612			-			343,612			>100	%
Net interest income/(loss) after provision for loan losses and financing lease losses		(28,480,303	)		(15,853,695	)		(12,626,608	)		80	%
Commissions and fees on financial guarantee services		120,623			476,134			(355,511	)		-75	%
Provision on financial guarantee services		(9,035,700	)		(3,775,816	)		(5,259,884	)		139	%
Commission and fees loss on guarantee services, net		(8,915,077	)		(3,299,682	)		(5,615,395	)		170	%
Net Revenue		(37,395,380	)		(19,153,377	)		(18,242,003	)		95	%
Non-interest income
Government incentive		-			81,327			(81,327	)		-100	%
Other non-interest income		34,024			195,605			(161,581	)		-83	%
Total non-interest income		34,024			276,932			(242,908	)		-88	%
Non-interest expense
Salaries and employee surcharge		(654,729	)		(614,926	)		(39,803	)		6	%
Rental expenses		(223,786	)		(199,060	)		(24,726	)		12	%
Business taxes and surcharge		(94,119	)		(228,131	)		134,012			-59	%
Other operating expense		(1,692,323	)		(2,323,256	)		630,933			-27	%
Total non-interest expense		(2,664,957	)		(3,365,373	)		700,416			-21	%
Foreign exchange loss		(8,550	)		-			(8,550	)		-100	%
Loss Before Taxes		(40,034,863	)		(22,241,818	)		(17,793,045	)		80	%
Income tax expense		(594,650	)		(10,979	)		(583,671	)		5316	%
Net Loss		(40,629,513	)		(22,252,797	)		(18,376,716	)		83	%
Loss per Share- Basic and Diluted		(3.295	)		(1.956	)		(1.339	)		68	%
Weighted Average Shares Outstanding-Basic and Diluted		12,330,721			11,377,427			953,294			8	%
Net Loss		(40,629,513	)		(22,252,797	)		(18,376,716	)		83	%
Other comprehensive income
Foreign currency translation adjustment		(973,282	)		(637,053	)		(336,229	)		53	%
Comprehensive Loss	$	(41,602,795	)		(22,889,850	)	$	(18,712,945	)		82	%

50

The Company’s net loss for the nine months ended September 30, 2015 was $40,629,513 representing an increase of $18,376,716 or 83%, from net loss of $22,252,797 for the nine months ended September 30, 2014. The decrease in net loss for the nine months ended September 30, 2015 was the net effect of the changes in the following components:

● a decrease in net interest income of $3,372,877;

● an increase in the provision for loan losses of $9,597,343 and a decrease in the provision for direct financing leases of $343,612, respectively;

● a decrease in commission and fees loss on financial guarantee services of $355,511;

● an increase of provision on financial guarantee services of $5,259,884;

● a decrease in total non-interest expense of $700,416; and

● an increase in enterprise income tax expense of $583,671;

The following paragraphs discuss changes in the components of net loss in greater details during the nine months ended September 30, 2015, as compared to the nine months ended September 30, 2014.

Net Interest Income

Net interest income is equal to interest income we generated less interest expenses on short-term bank loans we incurred. The Company’s net interest income decreased by $3,372,877, or 64% to $1,938,161 during the nine months ended September 30, 2015, as compared to net interest income of $5,311,038 during the nine months ended September 30, 2014.

The interest and fees on loans, direct financing leases and deposits with banks decreased by $3,686,450, or 61% from $6,047,321 for the nine months ended September 30, 2014 to $2,360,871 for the nine months ended September 30, 2015. The decrease is the combined effect of: (1) The Company charged off non-performing loans against allowance of approximately $41.1 million, leading to a significant interest income charged off as well; (2) decrease in effective weighted average loan interest rate from 14.57% for the loan portfolio as of September 30, 2014 to 13.21% as of September 30, 2015 due to the mandatory requirement promulgated by Jiangsu Finance Bureau in June of 2013 that effective from October 1, 2013 the maximum interest rate a microcredit company in Jiangsu province is permitted to charge shall be fifteen percent (15%) compared to eighteen percent (18%) previously permitted; and (3) the decrease in the amount of monthly interest received. Compared to the same period last year, a substantial amount of borrowers choose to repay the principal and the interest due at the maturity of the loan term instead of making monthly interest payments. Both payments are permissible under the agreements we have with the borrowers.

51

Net Interest Income (continued)

Since the beginning of 2014, People’s Bank of China continued to withdraw a significant amount of liquidity from the market, which has made it even harder for SMEs to gain access to capital. The bank lenders usually require an old loan be paid in full upon maturity before they approve a new loan to the same borrower. Some SMEs have to borrow from so-called “underground” lenders, or shadow banks to repay the loans due to the banks. Additionally, the banks denied to extend new loans to some SMEs even after they made the full repayment for the loans due and satisfied other conditions. Management is concerned that the borrowers may use the proceeds from the loans we grant to them as a means of repayment to the other banks or even to the underground lenders, instead of using them in operations. Therefore, management decided to grant new loans in a more cautious manner. During the nine months ended September 30, 2015, we granted 48 loans with an average loan size was approximately $372,000 and renewed 26 loans with an average loan size of $463,000, as compared to a grant of 102 loans with an average loan size of $336,000 during the nine months ended September 30, 2014. Since the renewal was made in late September 2015 and the management has no further intension to expand its direct loan business, the interest income generated during nine months ended September 30, 2015 declined.

Due to the long-term nature of our restricted deposits with third party banks, we utilized these deposits as term deposits which in turn generated interest income on deposits with banks of $15,378 during the nine months ended September 30, 2015 as compared to $59,386 during the nine months ended September 30, 2014. The decrease was mainly due to the reduction of our traditional guarantee business with banks, and we have closed several restricted deposit accounts with banks through which we provided guarantee services to our customers. As of September 30, 2015, the balance of restricted cash was $427,020, a decrease of 78.5% from $1,983,285 as of December 31, 2014.

Interest expense represents interest incurred on short-term bank loans. The interest incurred on short-term bank loans decreased by $313,573 or 43%. This was mainly caused by a decrease of total bank borrowing balance by $6.8 million from $11.4 million as of September 30, 2014 to $4.6 million as of September 30, 2015. During the nine months ended September 30, 2015, the interest expense related to the loans from banks was $422,710.

52

Provision for Loan Losses

The Company’s provision for loan losses was $30,762,076 and $21,164,733 for the nine months ended September 30, 2015 and 2014, respectively. The provision for loan losses was determined by comparing the beginning and ending balance of allowance for loan losses for business and personal loans. If the ending balance of the allowance of loan losses after any charge offs (net of recoveries) is less than the beginning balance, it will be recorded as a “reversal”; if it is larger, it will be recorded as a “provision” in the allowance for loan loss. The netting amount of “reversal” and “provision” is presented in the consolidated statements of income and comprehensive income and the components of the provision for loan losses were disclosed in Note 7 of financial statements.

Provision for loan losses increased significantly for the three months ended September 30, 2015. This is mainly caused by continued deterioration of loan quality commenced during the nine months ended September 30, 2014. With a dramatic increase of “loss loans”, the Company witnessed an increase in accrual of provision during the nine months ended September 30, 2015.

Since the beginning of 2014, the economic conditions in the eastern part of China, especially the Yangtze River Delta region, has been challenging due to the downturn of the general economic situation in China. Wujiang, which is in the heart of this region, has been significantly affected. The textile industry, which is the pillar industry in the Wujiang area, as well as other industries, has been facing downward pressure. As the local SMEs’ profitability and repayment ability deteriorates, “doubtful” and “loss” bank loans drastically increased. As such, our provision for loan losses substantially increased since 2014.

In February and March 2015, the Company reviewed the classification of its loan portfolios within its rating system to test the adequacy of the allowances calculated thereby. As a result of such testing, the Company decided to reclassify certain loans into different categories. The Company reviewed the profile, financial condition and other relevant information and documents of each customer in the lending businesses. For customers with several loans with different due dates, if one of whose loans was past due, the Company decided to reclassify all loans of the customer's as past due (even the other loans that were not mature yet). For extended loans, the Company re-evaluated the customer's repayment ability in a more cautions manner and reclassified the loans of customers without very strong financial condition into the past due category. These reclassifications affected numerous customer accounts.

During the three months ended September 30, 2015, management continued to assess the adequacy of the allowances in a cautious manner. Management assessed the collectability of loan receivable balances on an individual basis and concluded the collection from certain borrowers is remote. Therefore, management determined to charge off loan balances against allowances, in the amount of $41.1 million, as these loans are deemed as uncollectible. Management concluded that these borrowers had neither ability nor intention to make repayment as (1) these charged loans are guarantee backed loans which are subordinated to asset backed loans these borrowers obtained from the banks, (2) most of our borrowers or their guarantors are in the textile industry and the majority of the textile businesses are struggling due to the continued and worsened downturn trend in China’s macro-economic environment during the third quarter of fiscal year 2015 and quite a number of textile business went bankrupt, and (3) management was advised by local counsels representing the Company in the collection lawsuits that the chances of collection is quite remote given the large scale defaults in both large and small businesses in Wujiang region.

53

Net Commission and Fees on Guarantee Business

The Company also generated net income by charging fees for financial guarantee services provided to our customers to help them obtain loans from other banks. We generally charge a one-time fee of 1.8% - 3.6% multiplied by the amount of loans being guaranteed, based on the nature of the guarantee and whether the customer is new or existing. As of September 30, 2015, the off-balance-sheet financial guarantee amounted to $14.1 million. The commissions and fees generated from our financial guarantee services decreased from $476,134 for the nine months ended September 30, 2014 to $120,623 for the nine months ended September 30, 2015, representing a decrease of $355,511, or 75%.The reduction was due to the decreased number of guarantee transactions as management reduced the guarantee portfolio to control the default risk.

As of September 30, 2015, we have provided guarantees for a total of $14.1 million underlying loans to approximately 16 financial guarantee service customers, a reduction of 35.4% compared to a total of $21.8 million as of December 31, 2014.

Provision on Financial Guarantee Services

The provision on financial guarantee services increased from $3,775,816 for the nine months ended September 30, 2014, to $9,035,700 for the nine months ended September 30, 2015, representing an increase of $5,259,884.

The methodology the Company used to estimate the liability for probable guarantee loss considers the guarantee contract amount and a variety of factors, which include, dependence on the counterparty, latest financial position and performance of the customers, actual defaults, estimated future defaults, historical loss experience, estimated value of collaterals or guarantees the costumers or third parties offered, and other economic conditions such as the economic trend of the area and the country. The estimates are based upon currently available information. Based on the recent lawsuit results and repayment status by defaulted customers, the Company estimated 50% of off-balance-sheet financial guarantee services may be subject to default and their repayment may be “not likely”. As of September 30, 2015, the Company accrued 50% of contract amount as compared to 1% of contract amount as of September 30, 2014.

We accrued specific provision on the balance of repayment on behalf of defaulted customers according to “Five-Tier” principal. The Specific Reserve is based on the level of loss of each loan after categorizing the loan according to their risk. According to the “Five-Tier Principle” set forth in the Provision Guidance, the guarantees are categorized as “special-mention”, “substandard”, “doubtful” or “loss”. Normally, the provision rate is 2% for “special-mention”, 25% for “substandard”, 50% for “doubtful” and 100% for “loss”.

As explained above, since the beginning of 2014, People’s Bank of China continued to withdraw a significant amount of liquidity from the market, which has made it even harder for SMEs to gain access to capital. The bank lenders usually require an old loan be paid in full upon maturity before they approve a new loan to the same borrower. During the twelve months ended December 31, 2014, the banks denied to extend new loans to many SMEs even after they made the full repayment for the loans due and satisfied other conditions. As a result, some of the SME borrowers for which we provided the guarantees decided to default on the bank loans. Therefore the amount of repayment we made to the bank lenders substantially increased since the year ended December 31, 2014. We have brought collection actions against both the borrowers and their counter-guarantors. However, management was advised by counsel in the collection action that the chance of collection is remote given the large scale bad debt prevalent in Wujiang region. During the nine months ended September 2015, we charged off guarantee paid on behalf of one customer against accrual for financial guarantee service, in the amount of $0.27 million. In addition, due to the uncertainty of the collection outcome, we increased our accrual for financial guarantee services significantly from $5,546,128 as of December 31, 2014 to $13,854,117 as of September 30, 2015.

54

In February and March 2015, the Company revisited the classification of its guarantee portfolios within its rating system to test the adequacy of the allowances calculated thereby. As a result of such testing, the Company decided to reclassify certain guarantees into different categories. The Company reviewed the profile, financial condition and other relevant information and documents of each customer in the guarantee businesses. For customers with several guarantees with different due dates, if one guaranteed loan was past due, the Company decided to reclassify all of this customer's guaranteed loans as past due (even the other loans that were not mature yet). These reclassifications affected numerous customer accounts. We engaged He-Partners Law Firm, one of the largest law firms in Suzhou City, to represent us in the legal proceedings against the borrowers and their counter guarantors, and expect to collect part of the outstanding balance in a period ranging from twelve months to one year upon adjudication by the court in favor of the Company. The timing of collection and ultimate amount of funds we can recover depend on a few factors, including the repayment ability of the borrower and their counter-guarantors, the execution time of the court, other obligations the borrowers have and priority over the claim for the Company.

Non-interest Expenses

Non-interest expenses decreased from $3,365,373 for the nine months ended September 30, 2014 to $2,664,957 for the nine months ended September 30, 2015, representing an decrease of $700,416 or 21%. Non-interest expenses primarily consisted of salary and employee surcharge, office rental expense, business tax and surcharge, depreciation of equipment, travel expenses, entertainment expenses, professional service fees, and other office supplies. The increase was mainly attributable to a decrease of business taxes and surcharge by $134,012, or 59%, and a decrease in other operating expenses by $630,933, or 27%, respectively. The decrease of business taxes and surcharge was mainly in line of decrease of interest income generated from direct loan business and financial guarantee services. Other operating expenses decreased by 27% during the nine months ended September 30, 2015 as compared to the nine months ended September 30, 2014, primarily due to a net effect of a decrease in legal and consulting fee of $462,875, in insurance expense of $200,812 and in bank charges of $134,066, against an increase in audit-related expenses of $122,637.

Income Tax

Income tax expenses increased from $10,979 for nine months ended September 30, 2014 to $594,650 for nine months ended September 30, 2015, representing an increase of $583,671. Wujiang Luxiang, the Company’s VIE suffered a taxable loss incurred during the nine months ended September 30, 2015, while PFL, the Company’s direct financing lease business made taxable profit during the nine months ended September 30, 2015, leading to a current income tax expense of $7,508.

Besides, during the nine months ended September 30, 2015, further allowance on deferred tax asset was made of $720,145, against reversal of deferred tax liability of $133,004, leading to a deferred tax expense of $587,141. While during the nine months ended September 30, 2014, the income tax expenses represented the current income tax imposed on the taxable income made during that period.

55

Loan Portfolio Quality

One of our key objectives is to maintain a high level of loan portfolio quality. When a borrower fails to make a scheduled payment, we attempt to cure the deficiency by personally contacting the borrower. Initial contacts typically are made seven days after the date the payment is due, and warning letters are sent by our legal counsel approximately 90 days after the default. In most cases, deficiencies are promptly resolved. If the outstanding amount cannot be collected within 180 days after the maturity date and the parties could not reach an agreement on a specific repayment program, we will initiate legal proceedings.

We also keep the frequency of visits to our customers and observe their daily production on site from time to time to observe their operating condition and collect their financial information.  Since most of our customers are in the Jiangsu area, it is also relatively easy to obtain information about our customers.

On loans where the collection of principal or interest payments is doubtful, the accrual of interest income ceases and become “non-accrual” loans. Except for loans that are sufficiently secured and in the process of collection, it is our policy to discontinue accruing additional interest and reverse any interest accrued on any loan which is 90 days or more past due.

We account for our impaired loans in accordance with U.S. GAAP. An impaired loan generally is one for which it is probable, based on current information, that the lender will not collect all the amounts due under the contractual terms of the loan. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment history and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for business and personal loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateralized.

We allow a one-time loan extension with time duration up to the original loan term, which is usually within twelve months. In order to qualify, the borrower must be current with its interest payments. We do not grant concession to borrowers as the principal of the loan remains the same and interest rate is fixed at the current interest rate at the time of extension.

We use a comprehensive methodology to monitor credit quality and prudently manage credit concentration within our portfolio of loans. Currently our loan portfolio concentrates in the textile industry and during the three months and nine months ended September 30, 2015, both the domestic and international demand for textile products have been decreasing. To maintain our loan portfolio quality, we have modified our loan policy to accept only textile companies with real estate as collateral or guaranteed by guarantee companies. During the nine months ended September 30, 2015, we reviewed the loan quality for each individual customer, considering the likely results of the collection lawsuits and current macro-economic environment. Due to the overall downturn of economic tread, we concluded that a significant number of non-performing customers will not be able to make full repayment as they do not have the intention nor ability to make repayment. As a result we charged off loan receivable balances in the amount of $41,134,020, with $26,341,752 for business loans and $14,792,268 for personal loans. 

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Loan Portfolio Quality (continued)

Currently, the banking industry encourages SMEs to apply for loans as individual with recourse so that when it is past due, both the SME and the responsible individual are both liable for the past due amount and the individual borrower carries personal liability. As of September 30, 2015, as a result of charge off of loan receivable balances, our business loan balance decreased by $28.3 million as compared to that as of December 31, 2014 while personal loan decreased by $19.2 million.

The following table sets forth the classification of loans receivable as of September 30, 2015 and December 31, 2014, respectively:

	September 30, 2015					December 31,
	(Unaudited)		Percent			2014		Percent
	Amount		of Total			Amount		of Total
Business loans	$	23,929,538		69.28	%	$	52,254,805		63.66	%
Personal loans		10,613,156		30.72	%		29,824,324		36.34	%
Total Loans receivable	$	34,542,694		100.00	%	$	82,079,129		100.00	%

Nonaccrual loans totaled $17.62 million, or 51.02% of loans receivable as of September 30, 2015, as compared with $33.31 million, or 40.58% of loans receivable, as of December 31, 2014. The allowance for loan losses was $14.18 million, representing 41.04% of loans receivable and 80.45% of non-accrual loans as of September 30, 2015. As of December 31, 2014, the allowance for loan losses was $24.49 million, representing 29.84% of loans receivable and 73.53% of non-accrual loans.

The following table sets forth information concerning our nonaccrual loans as of September 30, 2015 and December 31, 2014, respectively:

	September 30, 2015			December 31, 2014
	(Unaudited)
Nonaccrual loans	$	17,621,986		$	33,306,861
Allowance for loan losses	$	14,176,356		$	24,490,721
Loans receivable	$	34,542,694		$	82,079,129
Total assets	$	41,460,443		$	83,089,787
Nonaccrual loans to loans receivable		51.02	%		40.58	%
Nonperforming assets to total assets		42.50	%		40.08	%
Allowance for loan losses to loans receivable		41.04	%		29.84	%
Allowance for loan losses to non-accrual loans		80.45	%		73.53	%

Since the beginning of 2014, the economic conditions in eastern part of China, especially the Yangtze River Delta region, has been challenging due to the downturn of the general economic situation in China. Wujiang, which is in the heart of this region, has been significantly affected. The textile industry, which is the pillar industry in Wujiang area, as well as other industries, have been facing downward pressure. As the local SMEs’ profitability and repayment ability deteriorates, “special mentioned”, “substandard” and “doubtful’ bank loans drastically increased. As such, our provision for loan losses kept at a high level as of September 30, 2015.

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Cash Flows and Capital Resources

We have financed our operations primarily through shareholder contributions, cash flow from operations, bank loans, and public offerings of securities. As a result of our total cash activities, net cash decreased from $4,991,973 as of December 31, 2014 to $663,883 as of September 30, 2015.

We require cash for working capital, making loans, repayment of debt and guarantee, salaries, commissions and related benefits and other operating expenses and income taxes. We expect that without the needs of future business expansion, our current working capital is sufficient to support our routine operations for the next twelve months.

However, as a micro-credit company regulated by the Chinese Banking Regulatory Commission, we are prohibited from providing saving or checking services to our customers; our borrowing capacity from other financial institutions is also limited to 50% of our registered capital.

In order to meet the capital needs for our continued operations, we may take the following actions: (1) continue to use our best effort to improve our collection of loan receivable and interest receivable; (2) if necessary, raise additional capital through the sale of equity; and/or (3) enter into new, or refinance existing, short- and/or long term commercial loans. We cannot assure you that financing will be available in the amounts we need or on terms acceptable to us, if at all. The sale of additional equity securities, including convertible debt securities, would dilute our current shareholders. The incurrence of debt could result in operating and financial covenants that would restrict our operations and our ability to pay dividends to our shareholders. If we are unable to obtain additional equity or debt financing as required, our business, operations and prospects may be adversely affected.

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Statement of Cash Flows

The following table sets forth a summary of our cash flows for the nine months ended September 30, 2015 and 2014, respectively:

	For the nine months ended
	September 30,
	2015			2014
	(Unaudited)			(Unaudited)
Net cash (used in)/provided by operating activities	$	(193,104	)	$	1,938,826
Net cash provided by/(used in) investing activities		2,542,148			(6,818,510	)
Net cash used in by financing activities		(6,641,289	)		(267,768	)
Effects of exchange rate changes on cash		(35,845	)		(125,631	)
Net cash outflow	$	(4,328,090	)	$	(5,273,083	)

Net Cash (Used in)/Provided by Operating Activities

During the nine months ended September 30, 2015, we had a cash outflow from operating activities of $193,104, a decrease of $2,131,930 from the nine months ended September 30, 2014, during which we had cash inflow from operating activities of $1,938,826. We incurred a net loss for the nine months ended September 30, 2015 of $40,629,513, an increase in net loss of $18,376,716 from the nine months ended September 30, 2014, during which we generated net loss of $22,252,797. In addition to the decrease in profitability, the decrease in net cash provided by operating activities was the result of several factors, including:

● A decrease in cash flow due to the increase in changes in other assets by $807,461. The other asset increased by $258,035 while decreased by $549,426 as of September 30, 2015 and 2014, respectively, as compared to December 31, 2014 and 2013, respectively. This is mainly attributable to a significant increase in court filing fees and legal fees which will be claimed from increased default customers;

● An increase in cash flow due to the decrease in changes in interest receivable by $755,245. The interest receivable decreased by $473,967 while increased by $281,277 as of September 30, 2015 and 2014, respectively, as compared to December 31, 2014 and 2013. This is mainly attributable to (i) a significant decrease in loan additions during the nine months ended September 30, 2015, and (ii) the management charged off loan receivable balances of $40,530,356, which accordingly leads to a significant charge off of interest receivable; and

● An increase in cash flow due to the decrease in changes in net prepaid taxes, by $925,528. The net prepaid taxes increased by $16,845 and $942,373 as of September 30, 2015 and September 30, 2014, respectively, as compared to December 31, 2014 and 2013.

The Company was required to prepay enterprise income taxes at a rate of 25% on a quarterly basis when the applicable tax rate was 12.5% to loan business and 25% to guarantee business and direct financing lease business, respectively. Within five months after fiscal year end, the Company and the tax authority resolved the difference between the taxes paid and taxes due.

During the nine months ended September 30, 2015, the Company incurred taxable loss in Wujiang Luxiang. This led to slight changes in prepaid taxes for its loan and guarantee business except for impact of foreign currency translation between September 30, 2015 and December 31, 2014.

Net Cash Provided by/(Used in) Investing Activities 

Net cash provided investing activities for the nine months ended September 30, 2015 was $2,542,148 as compared to net cash used in investing activities of $6,818,510 for the nine months ended September 30, 2014. The cash used in investing activities for the nine months ended September 30, 2015 was mainly caused by payment on behalf of default guarantees of $5,902,924, loan disbursement to third party customers of $17,934,721 , netting off collection from guarantees for loan paid on behalf of $749,980, collection from direct loan business of $23,623,776, and installment repayment from direct financing lease customers of $422,199.

Net Cash Used in Financing Activities

Net cash used in financing activities for the nine months ended September 30, 2015 totaled $6,641,289 as compared to net cash used in financing activities of $267,768 for the nine months ended September 30, 2014. The cash used in financing activities for the nine months ended September 30, 2015 was mainly attributable the repayment of bank borrowing of $6,641,289.

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Contractual Obligations

As of September 30, 2015, the annual amounts of future minimum payments under certain of our contractual obligations were:

	Payment due by period
	(Unaudited)
	Total 1 year		Less than and after		1-2 years		2-3 years		3-4 years		5 years
Contractual obligations:
Short term bank loans (1)	$	4,557,026	$	4,557,026	$	-	$	-	$	-	$	-
Operating lease (2)		1,185,905		328,256		328,256		328,256		75,426		125,711
	$	5,742,931	$	4,885,282	$	328,256	$	328,256	$	75,426	$	125,711

(1)	The bank loans bear an average annual interest rate of 6.72%.
(2)	Our renewed lease for our office in Wujiang commenced on October 1, 2013 and will expire on December 31, 2018. The Company has the right to extend the lease before its expiration with a one-month's prior written notice.

During the nine months ended September 30, 2015, we leased a new office. The new lease commenced on June 1, 2015 and will expire on May 31, 2021. The Company has the right to extend the lease before its expiration with a one-month's prior written notice.

Off-Balance Sheet Arrangements

These financial guarantee contracts consist of providing guarantees to banks on behalf of borrowers to help them obtain loans from banks. The contract amounts reflect the extent of involvement the Company has in the guarantee business and also represents the Company’s maximum exposure to credit loss.

The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its borrowers. Financial instruments whose contract amounts represent credit risk are as follows.

	September 30, 2015		December 31, 2014
	(Unaudited)
Guarantee	$	14,071,781	$	21,794,663

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Critical Accounting Policies

We prepare our financial statements in conformity with U.S. GAAP, which requires us to make judgments, estimates and assumptions that affect our reported amount of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, and reported amounts of revenue and expenses during the reporting periods. We continually evaluate these estimates and assumptions based on the most recently available information, our own historical experience and various other assumptions that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from our expectations as a result of changes in our estimates.

An accounting policy is considered critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time such estimate is made and if different accounting estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur, could materially impact the condensed financial statements. We believe that the following accounting policies involve a higher degree of judgment and complexity in their application and require us to make significant accounting estimates. The following descriptions of critical accounting policies, judgments and estimates should be read in conjunction with our condensed financial statements and other disclosures included in this report.

Termination of VIE agreements with Pride Information

On April 11, 2015, WFOE delivered a notice of termination to Pride Information. As a result, the contractual arrangements between WFOE, Pride Information and Mr. Qin were terminated effective on May 11, 2015 and WFOE no longer controls Pride Information.

Pride Information operates an online portal (www.pridelendingclub.com) to match prospective borrowers with lenders. As of May 11, 2015, Pride Information was in the beginning stage of operation and had generated minimal revenue. The derecognition of the VIE was accounted for as a deconsolidation.

Revenue recognition

Revenue is recognized when there are probable economic benefits to the Company and when the revenue can be measured reliably, on the following:

● Interest income on loans. Interest on loan receivables is accrued monthly in accordance with their contractual terms and recorded in accrued interest receivable. The Company does not charge prepayment penalty from customers.

● Commission on guarantee service. The Company receives the commissions from guarantee services in full at inception and records as unearned income before amortizing it throughout the period of guarantee.

● Income on direct financing lease. The financing agreements are classified as direct financing lease as prescribed by the Financial Accounting Standards Board ("FASB Codification"). Revenues representing the capitalized costs of the investment are recognized as income upon inception of the leases. The portion of revenues representing the difference between the gross investment in the lease (the sum of the minimum lease payments and the guaranteed residual value, if any) and the sum of the present value of the two components is recorded as unearned income and amortized over the lease term.

Taxes assessed by governmental authorities that are directly imposed on revenue-producing transactions between the Company and its customers (which may include, but are not limited to, sales, use, value added and some excise taxes) are excluded from revenues.

Lessees are responsible for all taxes, insurance and maintenance costs.

● Non-interest income. Non-interest income mainly includes government incentive and rental income from the sub-leasing of certain of the Company’s leased office space to third parties. Government incentive represents financial subsidy for promotion and successful listing granted by Jiangsu Provincial Government.

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Loans receivable, net

Loans receivable primarily represent loan amount due from customers. The management has the intent and ability to hold such receivable for the foreseeable future or until maturity or payoff. Loans receivable are recorded at unpaid principal balances, net of unearned income and allowance that reflects the Company’s best estimate of the amounts that will not be collected. Loan origination and commitment fees and certain direct loan origination costs collected from customers are directly recorded in current year interests and fees on loans. The loans receivable portfolio consists of corporate loans and personal loans. The Company does not charge loan origination and commitment fees.

Allowance for loan losses and loan impairment

The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss history, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available.

The allowance is calculated at portfolio-level since our loans portfolio is typically of smaller balance homogenous loans and is collectively evaluated for impairment.

For the purpose of calculating portfolio-level reserves, we have grouped our loans into two portfolio segments: Corporate and Personal. The allowance consists of the combination of a quantitative assessment component based on statistical models, a retrospective evaluation of actual loss information to loss forecasts, value of collaterals and could include a qualitative component based on management judgment.

In estimating the probable loss of the loan portfolio, the Company also considers qualitative factors such as current economic conditions and/or events in specific industries and geographical areas, including unemployment levels, trends in real estate values, peer comparisons, and other pertinent factors such as regulatory guidance. Finally, as appropriate, the Company also considers individual borrower circumstances and the condition and fair value of the loan collateral, if any.

Allowance for loan losses and loan impairment (continued)

In addition, the Company also calculates the provision amount in accordance with PRC regulation “The Guidance for Loan Losses” (“The Provision Guidance”) issued by PBOC and is applied to all financial institutes as below:

1.	General Reserve - is based on total loan receivable balance and to be used to cover unidentified probable loan loss. The General Reserve is required to be no less than 1% of total loan receivable balance.
2.	Specific Reserve - is based on the level of loss of each loan after categorizing the loan according to their risk.  According to the so-called “Five-Tier Principle” set forth in the Provision Guidance, the loans are categorized as “pass”, “special-mention”, “substandard”, “doubtful” or “loss”. Normally, the provision rate is 2% for “special-mention”, 25% for “substandard”, 50% for “doubtful” and 100% for “loss”.
3.	Special Reserve - is fund set aside covering losses due to risks related to a particular country, region, industry or type of loans. The reserve rate could be decided based on management estimate of loan collectability.

To the extent the general loan loss reserve rate of 1% as required by PBOC differs from management’s estimates, the management elects to use the higher rate. As of March 31, 2015, the Company utilized Specific Reserve in estimating the loan loss as it is higher than the amount calculated based on the General Reserve.

While management uses the best information available to make loan loss allowance evaluations, adjustments to the allowance may be necessary based on changes in economic and other conditions or changes in accounting guidance.

Income Tax

Current income tax expenses are provided for in accordance with the laws of the relevant taxing authorities. As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. The Company accounts for income taxes using the liability approach. Under this method, deferred income taxes are recognized for tax consequences in future years of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable for the differences that are expected to affect taxable income.

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Recently issued accounting standards

In September 2015, the Financial Accounting Standards Board (“FASB”) issued updated guidance, which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Acquirers must recognize measurement-period adjustments during the period of resolution, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The updated guidance is effective for fiscal years beginning after December 15, 2015. Earlier adoption is permitted for any interim and annual financial statements that have not yet been issued. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In August 2015, the FASB issued an accounting standards update for a one-year deferral of the revenue recognition standard's effective date for all entities, which changed the effectiveness to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We are currently evaluating this standard and our existing revenue recognition policies to determine which contracts in the scope of the guidance will be affected by the new requirements and what impact they would have on our consolidated financial statements upon adoption. We have not yet determined which transition method we will utilize upon adoption on the effective date.

In August 2015, the FASB issued updated guidance concerning presentation and subsequent measurement of debt issuance costs relating to line of credit arrangements, which can be presented on the balance sheet as an asset to be subsequently amortized ratably over the term of the line of credit arrangement. The updated guidance is effective immediately. This updated guidance did not have a material impact on our financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. Under this ASU, an entity presents such costs on the balance sheet as a direct deduction from the related debt liability rather than as an asset. This new standard is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early adoption permitted. We do not plan to adopt this standard early and do not expect that it will have a material impact on our consolidated financial statements or disclosures upon adoption.

In February 2015, the FASB issued ASU 2015-02 "Consolidation: Amendments to the Consolidation Analysis" in order to clarify the basis for consolidation of certain legal entities. ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Specifically, ASU 2015-02 (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, (iii) affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships, and (iv) provides a scope exception from consolidation guidance for reporting entities with interests in certain legal entities. ASU 2015-02 is effective for public business entities for fiscal years and interim periods beginning on or after December 15, 2015. Early adoption is permitted. The Company is currently assessing the impact of ASU 2015-02 on its consolidated financial position, results of operations and cash flows.

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Recently issued accounting standards (continued)

In January 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-01 about Income Statement-Extraordinary and Unusual Items (Subtopic 225-20). ASU 2015-01 addresses the elimination from U.S. GAAP the concept of extraordinary items. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. This amended guidance will prohibit separate disclosure of extraordinary items in the income statement. This amendment is effective for years, and interim periods within those years, beginning after December 15, 2015. Entities may apply the amendment prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the year of adoption. The Company intends to adopt the accounting standard during the first quarter of 2016, as required, with no material impact.

In June 2014, the FASB issued guidance that clarifies the accounting for share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. In this case, the performance target would be required to be treated as a performance condition, and should not be reflected in estimating the grant-date fair value of the award. The guidance also addresses when to recognize the related compensation cost. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In June 2014 Accounting Standards Update 2014-10 removed the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. This ASU is effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Early adoption is permitted. The Company has elected to adopt this ASU effective with the December 31, 2014 annual report on Form 10-K and its adoption resulted in the removal of previously required development stage financial information.

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Recently issued accounting standards (continued)

In May 2014, the FASB issued guidance on the accounting for revenue from contracts with customers that will supersede most existing revenue recognition guidance, including industry-specific guidance. The core principle requires an entity to recognize revenue to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This guidance is effective for interim and annual reporting periods beginning on or after December 15, 2016. Entities can choose to apply the guidance using either the full retrospective approach or a modified retrospective approach. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

ASU 2014-15 – "Presentation of Financial Statements—Going Concern—Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15")." In August 2014, the FASB issued ASU 2014-15 requiring management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. ASU 2014-15 is effective for annual periods, and interim periods within those annual periods, starting December 15, 2016; the Company's first quarter of fiscal 2018.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES 

Evaluation of Disclosure Controls and Procedures

Based on an evaluation under the supervision and with the participation of the Company’s management, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act were not effective as of September 30, 2015 to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission (“SEC”) rules and forms, and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

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Inherent Limitations Over Internal Controls

The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S GAAP. The Company’s internal control over financial reporting includes those policies and procedures that:

i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company’s assets;

ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that the Company’s receipts and expenditures are being made only in accordance with authorizations of the Company’s management and directors; and

iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Management, including the Company’s principal executive officer and principal financial officer, does not expect that the Company’s internal controls will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of internal controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Also, any evaluation of the effectiveness of controls in future periods are subject to the risk that those internal controls may become inadequate because of changes in business conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended September 30, 2015 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

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PART II.  OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is involved in various legal actions arising in the ordinary course of its business. As of June 30, 2015, the Company was involved in 66 collection lawsuits, among which 54 were related to its loan business and 12 were related to guarantee business. The Company initiated legal proceedings to collect delinquent balances from borrowers and guarantees. 22 of these cases with an aggregated claim of $7.7 million have been adjudicated by the Court in favor of the Company and these cases are settled or in the process of enforcement. The remaining 44 cases with an aggregated claim of $23.8 million have not been adjudicated by the Court as of June 30, 2015.

On August 6, 2014, a purported shareholder Andrew Dennison filed a putative class action complaint in the United States District Court District of New Jersey (the “N.J. district court”) relating to a July 25, 2014 press release about the Company’s progress in recovering a significant portion of the $5.4 million the Company paid in the first quarter of 2014 on behalf of loan guarantee customers. The action, Andrew Dennison v. China Commercial Credit, Inc., et al., Case No. 2:2014-cv-04956, alleges that the Company and its current and former officers and directors Huichun Qin, Long Yi, Jianming Yin, Jinggen Ling, Xiangdong Xiao, and John F. Levy violated the federal securities laws by misrepresenting in prior public filings certain material facts about the risks associated with its loan guarantee business. On October 2, 2014, purported shareholders Zhang Yun and Sanjiv Mehrotra (the “Yun Group”) asserted substantially similar claims against the same defendants in a putative class action captioned Zhang Yun v. China Commercial Credit, Inc., et al., Case No. 2:14-cv-06136 (D. N.J.). Neither complaint states the amount of damages sought.

On or about October 6, 2014, Dennison, the Yun Group and another purported shareholder, Jason Stark, filed motions to consolidate the cases, be appointed as lead plaintiff and to have their respective counsel appointed as lead counsel. On October 31, 2014, the N.J. district court entered an order consolidating the cases under the caption “In re China Commercial Credit Inc. Securities Litigation” and appointing the Yun Group as lead plaintiff (“Class Plaintiff”) and the Yun Group’s counsel as lead counsel.

On November 18, 2014, the Yun Group and the Company, which at that point was the only defendant served, entered into a stipulation to transfer of the case to the Southern District of New York. On December 18, 2014, Mr. Levy, who had by then been served, joined in the stipulation. On December 29, 2014, the N.J. district court entered an order transferring the action. The transfer was effected on January 22, 2015, and assigned docket number 1:15-cv-00557-ALC (S.D.N.Y.).

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Under the schedule stipulated by the parties, the Yun Group was to file an amended complaint within 60 days of the date that the transfer was effected, and the defendants’ date to answer or move was within 60 days of that filing. On April 7, 2015, the Class Plaintiff filed a Second Amended Class Action Complaint (the “CAC”). The CAC also asserts securities law claims against defendants Axiom Capital Management, Inc., Burnham Securities Inc. and View Trade Securities, Inc. (collectively, the “Underwriter Defendants”). The CAC alleges that the Company engaged in a fraudulent scheme by engaging in undisclosed and improper lending practices and made misleading representations regarding its underwriting policies, the loan portfolio quality, the loan loss allowance, compliance with U.S. GAAP and its internal control systems.

In accordance with the Court’s procedures, the Company and Mr. Levy and the Underwriter Defendants requested a Pre-Motion Conference in anticipation of filing a motion to dismiss the CAC, which was held on June 25, 2015. At the conference, the Court adjourned the date to answer or move in order to provide the Class Plaintiff with time to serve certain overseas defendants. After the conference, the Class Plaintiff voluntarily dismissed Jianming Yin, Jinggen Ling and Xiangdong Xiao from the action, and Long Yi agreed to waive service, which left Huichun Qin as the sole remaining defendant to serve. The case remains stayed pending service of Huichun Qin.

The Company believes that this lawsuit was without merit and intends to vigorously defend against it. At the early stage of the proceedings, the Company is not able to estimate the probability of success or loss.

On February 3, 2015, a purported shareholder Kiram Kodali filed a putative shareholder derivative complaint in the United States District Court for the Southern District of New York, captioned Kiran Kodali v. Huichun Qin, et al., Case No. 15-cv-806. The action alleges that the Company and its current and former officers and directors Huichun Qin, Long Yi, Jianming Yin, Jinggen Ling, Chunfang Shen, John F. Levy, Xiaofang Shen and Chunjiang Yu violated their fiduciary duties, grossly mismanaged the Company and were unjustly enriched based upon the transfer that was the subject of the Internal Review and other grounds substantially similar to those asserted in the class action complaints. Kodali did not serve a demand upon the Company and alleges that demand is excused. The Company and Mr. Levy have been served. An amended derivative complaint was filed on April 20, 2015. On May 29, 2015, the Court “so ordered” a stipulation among Kodali, the Company and Mr. Levy staying all proceedings in the derivative case except for service of process on individual defendants until the earlier of thirty days of termination of the stipulation, dismissal of the class action with prejudice or the date any of the defendants in the class action file an answer to the CAC. The Company believes that this lawsuit is without merit and intends to vigorously defend against it. At this stage of the proceedings, the Company is not able to estimate the probability of success or loss.

68

On May 18, 2015, WFOE filed a civil complaint against Huichun Qin with the Wujiang Region Suzhou City People’s Court claiming Mr. Qin’s misappropriation of RMB 7 million in July 2014. The complaint was rejected due to a procedural issue, and the Company is evaluating its strategic options.

ITEM 1A. RISK FACTORS

There were no material changes to the risks included in the Company’s annual report on Form 10-K for year ended December 31, 2014 filed with the SEC on April 15, 2015.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

The following exhibits are filed herewith:

Exhibit No.	Description
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

69

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

November 23, 2015	CHINA COMMERCIAL CREDIT, INC.
	By:	/s/ Jingen Lin
		Jingen Lin
		Chief Executive Officer
		(Principal Executive Officer)
	By:	/s/ Long Yi
		Long Yi
		Chief Financial Officer (Principal Financial and Accounting Officer)

70

EXHIBIT INDEX

Exhibit No.	Description
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

70

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jingen Ling, certify that:

1.	I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2015 of China Commercial Credit, Inc.;
2	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c.	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an quarterly report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:    November 23, 2015	By:	/s/ Jingen Ling
		Jingen Ling Chief Executive Officer (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Long Yi, certify that:

1	I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2015 of China Commercial Credit, Inc.;
2	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c.	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an quarterly report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:      November 23, 2015	By:	/s/ Long Yi
		Long Yi Chief Financial Officer (Principal Finance and Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF SARBANES-OXLEY ACT OF 2002

I, Jingen Ling, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1. The Quarterly Report on Form 10-Q of China Commercial Credit, Inc. (the “Company”) for the period ended September 30, 2015 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (U.S.C. 78m or 78o(d)); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:     November 23, 2015	By:	/s/ Jingen Ling
		Jingen Ling
		Chief Executive Officer (Principal Executive Officer)

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of a separate disclosure document.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

SECTION 906 OF SARBANES-OXLEY ACT OF 2002

I, Long Yi, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1. The Quarterly Report on Form 10-Q of China Commercial Credit, Inc. (the “Company”) for the period ended September 30, 2015 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (U.S.C. 78m or 78o(d)); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:     November 23, 2015	By:	/s/ Long Yi
		Long Yi
		Chief Financial Officer (Principal Financial and Accounting Officer)

The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and is not being filed as part of a separate disclosure document.

XML

Other Assets (Tables)

9 Months Ended

Sep. 30, 2015

Other Assets [Abstract]

Summary of Other Assets

	September 30, 2015		December 31, 2014
	(Unaudited)
Prepaid bank service charges	$	3,229	$	33,767
Prepaid expenses to investor relationship service providers		-		265,591
Other prepaid expense		89,569		-
Deposit for court filing fees and legal fees		472,997		53,318
Other receivables		56,000		34,551
	$	621,795	$	387,227

XML

Summary of Significant Accounting Policies (Details Textual) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Summary of Significant Accounting Policies (Textual)
Operating segments, Description	There was no one customer that accounted for more than 10% of the Company's revenue.	There was no one customer that accounted for more than 10% of the Company's revenue.
Restricted cash, Description	The banks providing loans to the Company's guarantee service customers generally require the Company, as the guarantor of the loans, to pledge a cash deposit of 10% to 20% of the guaranteed amount to an escrow account and is restricted from use.
Guarantee obligation expiration period	12 months
Interest reversed	$ 1,642,566		$ 1,684,691
Percentage of salvage value	5.00%
Percentage of loss on financial guarantee contact	50.00%		1.00%
Possible credit risk of guarantees	$ 7,035,891		$ 217,947
Repayment of guarantee customers loans	6,818,226		5,328,181
Accrual for financial guarantee services	13,854,117		$ 5,546,128
Accrued provision	$ 267,696

XML

Related Party Transactions and Balances (Tables)

9 Months Ended

Sep. 30, 2015

Related Party Transactions and Balances [Abstract]

Summary of related party transactions

Name	Relationship with the Company
Wujiang Chunjia Textile Trading Co., Ltd (“Chunjia Textile”)	Controlled by Huichun Qin
Huichun Qin	Non-controlling shareholder and former CEO and chairman of board of directors

	September 30, 2015		December 31, 2014
	(Unaudited)
Chunjia Textile	$	411,729	$	162,707
Huichun Qin		1,098,197		1,147,088

XML

Net Investment in Direct Financing Lease (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Future minimum lease receipts under non-cancellable finance lease
Within 1 year	$ 3,650,335	$ 2,549,619
2 years	923,976	1,981,777
3 years	76,998	797,267
Total minimum lease receipts	4,651,309	5,328,663
Less: amount representing interest	(507,848)	(614,280)
Present value of minimum lease receipts	$ 4,143,461	$ 4,714,383

XML

Variable Interest Entities and Other Consolidation Matters (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Variable Interest Entities and Other Consolidation Matters [Abstract]
Total assets	$ 36,981,862		$ 36,981,862		$ 77,513,966
Total liabilities	20,086,296		20,086,296		$ 19,793,537
Revenue	120,929	$ 1,553,520	2,272,057	$ 6,517,256
Net loss	$ 36,925,013	$ 5,627,816	$ 40,083,818	$ 21,158,128

XML

Short-Term Bank Loans (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Short Term Bank Loans (Textual)
Prepaid bank borrowings	$ 6,641,289		$ 6,641,289
Short term bank loan maturity term			1 year		1 year
Interest expense incurred on short-term loans	$ 96,880	$ 243,158	$ 422,710	$ 736,283

XML

Loss Per Common Share (Tables)

9 Months Ended

Sep. 30, 2015

Loss Per Common Share [Abstract]

Summary of Computation of Basic and Diluted Earnings per Common Share

	For the Three Months Ended						For the Nine months Ended
	September 30,						September 30,
	2015			2014			2015			2014
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net loss attributable to the common shareholders		(37,101,946	)		(6,154,050	)	$	(40,629,513	)	$	(22,252,797	)
Basic weighted-average common shares outstanding		12,390,062			12,246,812			12,330,721			11,377,427
Effect of dilutive securities		-			-			-			-
Diluted weighted-average common shares outstanding		12,390,062			12,246,812			12,330,721			11,377,427
Loss per share:
Basic		(2.994	)		(0.503	)	$	(3.295	)	$	(1.956	)
Diluted		(2.994	)		(0.503	)	$	(3.295	)	$	(1.956	)

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Summary of Significant Accounting Policies [Abstract]

Basis of presentation and principle of consolidation

(a) Basis of presentation and principle of consolidation

The unaudited interim consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).

The interim financial information as of September 30, 2015 and for the three and nine months ended September 30, 2015 and 2014 have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and pursuant to Regulation S-X. Certain information and footnote disclosures, which are normally included in annual financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited interim financial information should be read in conjunction with the audited financial statements and the notes thereto, included in the Form 10-K for the fiscal year ended December 31, 2014 filed with the SEC on April 15, 2015.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s financial position as of September 30, 2015, its results of operations for the three months and nine months ended September 30, 2015 and 2014, and its cash flows for the nine months ended September 30, 2015 and 2014, as applicable, have been made. The unaudited interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods.

Operating segments

(b) Operating segments

ASC 280, Segment Reporting requires companies to report financial and descriptive information about their reportable operating segments, including segment profit or loss, certain specific revenue and expense items, and segment assets. The Company has no reportable segments. All of the Company's activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with registered capital and other borrowings and manage interest rate and credit risk.

The Company has only one reportable segment, which is to provide financial services in the PRC domestic market, primarily in Wujiang City, Jiangsu Province. The Company’s chief operating decision-maker (“CODM”) has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for both the direct lending and guarantee business and the anticipated financial leasing business. The Company’s net revenues are all generated from customers in the PRC. Hence, the Company operates and manages its business without segments. For the nine months ended September 30, 2015 and 2014, there was no one customer that accounted for more than 10% of the Company's revenue.

Cash

(c) Cash

Cash consists of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use The Company maintains accounts at banks and has not experienced any losses from such concentrations.

Restricted cash

(d) Restricted cash

Restricted cash represents cash pledged with banks as guarantor deposit for the guarantee business customers. The banks providing loans to the Company’s guarantee service customers generally require the Company, as the guarantor of the loans, to pledge a cash deposit of 10% to 20% of the guaranteed amount to an escrow account and is restricted from use. The deposits are released after the guaranteed bank loans are paid off and the Company’s guarantee obligation expires which is usually within 12 months.

Loans receivable, net

(e) Loans receivable, net

Loans receivable primarily represent loan amount due from customers. The management has the intent and ability to hold such receivable for the foreseeable future or until maturity or payoff. Loans receivable are recorded at unpaid principal balances, net of allowance for loan losses that reflects the Company’s best estimate of the amounts that will not be collected. Loan origination and commitment fees and certain direct loan origination costs collected from customers are directly recorded in current year interests and fees on loans. The loans receivable portfolio consists of corporate loans and personal loans (Note 6). The Company does not charge loan origination and commitment fees.

Allowance for Loan Losses

(f) Allowance for loan losses

The allowance for loan losses is increased by charges to income and decreased by charge offs (net of recoveries). Recoveries represent subsequent collection of amounts previously charged-off. The increase in allowance for loan losses is the netting effect of “reversal” and “provision” for both business and personal loans. If the ending balance of the allowance for loan losses after any charge offs (net of recoveries) is less than the beginning balance, it will be recorded as a “reversal”; if it is larger, it will be recorded as a “provision” in the allowance for loan loss. The netting amount of the “reversal” and the “provision” is presented in the consolidated statements of operations and comprehensive income (loss).

The Company recognizes a charge-off when management determines that full repayment of a loan is not probable. The primary factor in making that determination is the potential outcome of a lawsuit against the delinquent debtor. The Company will recognize a charge-off when the Company loses contact with the delinquent borrower for more than six months or when the court rules against the Company to seize the collateral asset of the delinquent debt from either the guarantor or borrower.

The allowance for loan losses is maintained at a level believed to be reasonable by management to absorb probable losses inherent in the portfolio as of each balance sheet date. The allowance is based on factors such as the size and current risk characteristics of the portfolio, an assessment of individual loan and actual loss, delinquency, and/or risk rating record within the portfolio (Note 7). The Company evaluates its allowance for loan losses on a quarterly basis or more often as necessary.

Interest receivable

(g) Interest receivable

Interest on loans receivable is accrued and credited to income as earned. The Company determines a loan past due status by the number of days that have elapsed since a borrower has failed to make a contractual loan payment. Accrual of interest is generally discontinued when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days. Additionally, any previously accrued but uncollected interest is reversed. Subsequent recognition of income occurs only to the extent payment is received, subject to management’s assessment of the collectability of the remaining interest and principal. Loans are generally restored to an accrual status when it is no longer delinquent and collectability of interest and principal is no longer in doubt and past due interest is recognized at that time.

The interest reversed due to the above reason was $1,642,566 and $1,684,691 as of September 30, 2015 and December 31, 2014, respectively.

Property and equipment

(h) Property and equipment

The property and equipment are stated at cost less accumulated depreciation. The depreciation is computed on a straight-line method over the estimated useful lives of the assets with 5% salvage value. Estimated useful lives of property and equipment are stated in Note 12.

The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the accounts and includes any gain or loss in the statement of income. The Company charges maintenance, repairs and minor renewals directly to expenses as incurred; major additions and betterment to equipment are capitalized.

Impairment of Long-Lived assets

(i) Impairment of long-lived assets

The Company applies the provisions of ASC No. 360 Sub topic 10, "Impairment or Disposal of Long-Lived Assets"(ASC 360- 10) issued by the Financial Accounting Standards Board ("FASB"). ASC 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value.

The Company tests long-lived assets, including property and equipment and finite lived intangible assets, for impairment at least annually or more frequently upon the occurrence of an event or when circumstances indicate that the net carrying amount is greater than its fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows as the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available in making whatever estimates, judgments and projections are considered necessary. There were no impairment losses in the three and nine months ended September 30, 2015 and 2014.

Fair values of financial instruments

(j) Fair values of financial instruments

ASC Topic 825, Financial Instruments (“Topic 825”) requires disclosure of fair value information of financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Topic 825 excludes certain financial instruments and all nonfinancial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company.

Level 1	inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2	inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

As of September 30, 2015 and December 31, 2014, financial instruments of the Company primarily comprise of cash, restricted cash, notes receivable, accrued interest receivable, other receivable, short-term bank loans, deposits payable and accrued expenses, which were carried at cost on the consolidated balance sheets, and carrying amounts approximated their fair values because of their generally short maturities.

Foreign currency translation

(k) Foreign currency translation

The reporting currency of the Company is United States Dollars (“US$”), which is also the Company’s functional currency. The PRC subsidiaries and VIEs maintain their books and records in its local currency, the Renminbi Yuan (“RMB”), which is their functional currencies as being the primary currency of the economic environment in which these entities operate.

For financial reporting purposes, the financial statements of the Company prepared using RMB are translated into the Company’s reporting currency, United States Dollars, at the exchange rates quoted by www.oanda.com. Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in shareholders’ equity.

	September 30,  2015		December 31,  2014
Balance sheet items, except for equity accounts		6.3638		6.1460
		For the nine months ended September 30,
		2015		2014
Items in the statements of income and comprehensive income, and statements of cash flows		6.1735		6.1480

Transactions denominated in currencies other than the functional currency are translated into prevailing functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the consolidated statements of comprehensive loss.

Use of estimates

(l) Use of estimates

The preparation of consolidated financial statements in conformity with U.S.GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews these estimates using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. Significant accounting estimates reflected in the financial statements include: (i) the allowance for doubtful debts; (ii) estimates of losses on unexpired loan contracts and guarantee service contracts; (iii) accrual of estimated liabilities; (iv) useful lives of long-lived assets, (v) the impairment of long-lived assets; (vi) the valuation allowance of deferred tax assets; and (vii) contingencies and litigation.

Revenue recognition

(m) Revenue recognition

Revenue is recognized when there are probable economic benefits to the Company and when the revenue can be measured reliably, on the following:

● Interest income on loans. Interest on loan receivables is accrued monthly in accordance with their contractual terms and recorded in accrued interest receivable. The Company does not charge prepayment penalty from customers. Additionally, any previously accrued but uncollected interest is discontinued of accrual and reversed, when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days.

● Commission on guarantee service. The Company receives the commissions from guarantee services in full at inception and records as unearned income before amortizing it throughout the period of guarantee.

● Income on direct financing lease. The financing agreements are classified as direct financing lease as prescribed by the Financial Accounting Standards Board ("FASB Codification"). Revenues representing the capitalized costs of the investment are recognized as income upon inception of the leases. The portion of revenues representing the difference between the gross investment in the lease (the sum of the minimum lease payments and the guaranteed residual value, if any) and the sum of the present value of the two components is recorded as unearned income and amortized over the lease term.   Taxes assessed by governmental authorities that are directly imposed on revenue-producing transactions between the Company and its customers (which may include, but are not limited to, sales, use, value added and some excise taxes) are excluded from revenues.   Lessees are responsible for all taxes, insurance and maintenance costs.

● Non-interest income. Non-interest income mainly includes rental income from the sub-leasing of certain of the Company’s leased office space to third parties and income from disposal of property and equipment.

Financial guarantee service contracts

(n) Financial guarantee service contract

Financial guarantee service contracts provides guarantee which protects the holder of a debt obligation against default. Pursuant to such guarantee, the Company makes payments if the obligor responsible for making payments fails to do so as scheduled.

The contract amounts reflect the extent of involvement the Company has in the guarantee transaction and also represent the Company’s maximum exposure to credit loss in its guarantee business.

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. Financial instruments representing credit risk are as follows:

	September 30,  2015		December 31,  2014
	(Unaudited)
Guarantee	$	14,071,781	$	21,794,663

A provision for possible loss to be absorbed by the Company for the financial guarantee it provides is recorded as an accrued liability when the guarantees are made and recorded as “Accrual for financial guarantee services” on the consolidated balance sheets. This liability represents probable losses and is increased or decreased by accruing a “Provision on financial guarantee services” against the income of commissions and fees on guarantee services reserve.

This is done throughout the life of the guarantee, as necessary when additional relevant information becomes available. The methodology used to estimate the liability for possible guarantee loss considers the guarantee contract amount and a variety of factors, which include, depending on the counterparty, latest financial position and performance of the borrowers, actual defaults, estimated future defaults, historical loss experience, estimated value of collaterals or guarantees the customers or third parties offered, and other economic conditions such as the economy trend of the area and the country. The estimates are based upon currently available information.

Based on the past experience and expected customer default status of financial guarantee services, the Company estimates the probable loss for immature financial guarantee services to be 50% and 1% of contract amount as of September 30, 2015 and December 31, 2014, and made a provision of $7,035,891 and $217,947 as of these two reporting dates, respectively for possible credit risk of its guarantees. In addition, the Company accrued specific provisions for repayment on behalf of guarantee customers who defaulted on their loans, in the amount of $6,818,226 and $5,328,181 as of September 30, 2015 and December 31, 2014, respectively. As of September 30, 2015, the management charged off specific provision for one customer in the amount of $267,696, considering remote collectability from the customer. The total accrual for financial guarantee services amounted to $13,854,117 and $5,546,128 as of September 30, 2015 and December 31, 2014, respectively. The Company reviews the provision on a quarterly basis.

Non-interest expenses

(o) Non-interest expenses

Non-interest expenses primarily consist of salary and benefits for employees, traveling cost, entertainment expenses, depreciation of equipment, office rental expenses, professional service fee, office supplies, etc.

Income tax

(p) Income tax

Current income tax expenses are provided for in accordance with the laws of the relevant taxing authorities. As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. The Company accounts for income taxes using the liability approach. Under this method, deferred income taxes are recognized for tax consequences in future years of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable for the differences that are expected to affect taxable income.

Comprehensive income

(q) Comprehensive income

Comprehensive income includes net income and foreign currency adjustments. Comprehensive income is reported in the statements of operations and comprehensive income.

Accumulated other comprehensive income, as presented on the balance sheets are the cumulative foreign currency translation adjustments.

Share-based awards

(r) Share-based awards

Share-based awards granted to the Company's employees are measured at fair value on grant date and share-based compensation expense is recognized (i) immediately at the grant date if no vesting conditions are required, or (ii) using the accelerated attribution method, net of estimated forfeitures, over the requisite service period. The fair value of restricted shares is determined with reference to the fair value of the underlying shares.

At each date of measurement, the Company reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of the share-based awards granted by the Company, including but not limited to the fair value of the underlying shares, expected life, expected volatility and expected forfeiture rates. The Company is required to consider many factors and make certain assumptions during this assessment. If any of the assumptions used to determine the fair value of the share-based awards changes significantly, share-based compensation expense may differ materially in the future from that recorded in the current reporting period.

Operating Leases

(s) Operating leases

The Company leases its principal office under a lease agreement that qualifies as an operating lease. The Company records the rental under the lease agreement in the operating expense when incurred.

Commitments and contingencies

(t) Commitments and contingencies

In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations and tax matters. In accordance with ASC No. 450 Sub topic 20, “Loss Contingencies”, the Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated.

Recently issued accounting standards

(u) Recently issued accounting standards

In September 2015, the Financial Accounting Standards Board (“FASB”) issued updated guidance, which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Acquirers must recognize measurement-period adjustments during the period of resolution, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The updated guidance is effective for fiscal years beginning after December 15, 2015. Earlier adoption is permitted for any interim and annual financial statements that have not yet been issued. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In August 2015, the FASB issued an accounting standards update for a one-year deferral of the revenue recognition standard's effective date for all entities, which changed the effectiveness to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We are currently evaluating this standard and our existing revenue recognition policies to determine which contracts in the scope of the guidance will be affected by the new requirements and what impact they would have on our consolidated financial statements upon adoption. We have not yet determined which transition method we will utilize upon adoption on the effective date.

In August 2015, the FASB issued updated guidance concerning presentation and subsequent measurement of debt issuance costs relating to line of credit arrangements, which can be presented on the balance sheet as an asset to be subsequently amortized ratably over the term of the line of credit arrangement. The updated guidance is effective immediately. This updated guidance did not have a material impact on our financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. Under this ASU, an entity presents such costs on the balance sheet as a direct deduction from the related debt liability rather than as an asset. This new standard is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early adoption permitted. We do not plan to adopt this standard early and do not expect that it will have a material impact on our consolidated financial statements or disclosures upon adoption.

In February 2015, the FASB issued ASU 2015-02 "Consolidation: Amendments to the Consolidation Analysis" in order to clarify the basis for consolidation of certain legal entities. ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Specifically, ASU 2015-02 (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, (iii) affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships, and (iv) provides a scope exception from consolidation guidance for reporting entities with interests in certain legal entities. ASU 2015-02 is effective for public business entities for fiscal years and interim periods beginning on or after December 15, 2015. Early adoption is permitted. The Company is currently assessing the impact of ASU 2015-02 on its consolidated financial position, results of operations and cash flows.

In January 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-01 about Income Statement-Extraordinary and Unusual Items (Subtopic 225-20). ASU 2015-01 addresses the elimination from U.S. GAAP the concept of extraordinary items. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. This amended guidance will prohibit separate disclosure of extraordinary items in the income statement. This amendment is effective for years, and interim periods within those years, beginning after December 15, 2015. Entities may apply the amendment prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the year of adoption. The Company intends to adopt the accounting standard during the first quarter of 2016, as required, with no material impact.

In June 2014, the FASB issued guidance that clarifies the accounting for share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. In this case, the performance target would be required to be treated as a performance condition, and should not be reflected in estimating the grant-date fair value of the award. The guidance also addresses when to recognize the related compensation cost. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In June 2014 Accounting Standards Update 2014-10 removed the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. This ASU is effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Early adoption is permitted. The Company has elected to adopt this ASU effective with the December 31, 2014 annual report on Form 10-K and its adoption resulted in the removal of previously required development stage financial information.

In May 2014, the FASB issued guidance on the accounting for revenue from contracts with customers that will supersede most existing revenue recognition guidance, including industry-specific guidance. The core principle requires an entity to recognize revenue to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This guidance is effective for interim and annual reporting periods beginning on or after December 15, 2016. Entities can choose to apply the guidance using either the full retrospective approach or a modified retrospective approach. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

ASU 2014-15 – "Presentation of Financial Statements—Going Concern—Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15")." In August 2014, the FASB issued ASU 2014-15 requiring management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. ASU 2014-15 is effective for annual periods, and interim periods within those annual periods, starting December 15, 2016; the Company's first quarter of fiscal 2018.

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Unearned Income (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Unearned Income From Guarantee Services and Financing Lease Services (Textual)
Unearned income from guarantee services	$ 9,891	$ 109,439
Unearned income from financing leasing services	$ 72,677	$ 73,218

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Property and Equipment (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Furniture and fixtures	$ 22,708	$ 23,513
Vehicles	156,369	242,876
Electronic equipment	122,454	125,333
Leasehold improvement	174,239	180,413
Less: accumulated depreciation	(419,796)	(429,981)
Property and equipment, net	$ 55,974	$ 142,154
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	4 years
Electronic Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Leasehold improvement [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years

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Income Taxes and Prepaid Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Taxes and Tax Receivabl (Textual)
Preferential tax rate			12.50%
Uniform tax rate			25.00%
Deferred tax liability	$ 191,400		$ 191,400		$ 313,874
Income tax examination, Description			Company pays enterprise income taxes at rate of 25% on a quarterly basis, and upon annual tax settlement done by the Company and the tax authority in five (5) months after December 31 the tax authority will refund the Company the excess enterprise income taxes it paid beyond the rate of 12.5%.
Significant change in unrecognized tax benefits			Next 12 months
Net tax operating losses	30,409,230		$ 30,409,230
Operating loss expiration date			December 31, 2019 to 2020
Deferred tax assets	$ 9,479,325		$ 9,479,325
Effective tax rate	1.49%	0.70%	1.49%	0.70%
Valuation allowance	$ 9,479,325		$ 9,479,325
Operating loss carryforwards	$ 50,606,855		50,606,855
Subsidary of due date			$ 1,032,213

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Restricted Cash (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Restricted Cash (Textual)
Restricted cash	$ 0.4	$ 2.0
Guarantee obligation expiration period	12 months
Maximum [Member]
Restricted Cash (Textual)
Percentage of cash deposit on guaranteed amount	30.00%
Minimum [Member]
Restricted Cash (Textual)
Percentage of cash deposit on guaranteed amount	10.00%

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Intangible Asset (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Intangible Asset (Textual)
Software, Estimated useful life			5 years
Amortization expense	$ 1,205	$ 0	$ 8,596	$ 0

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Loss Per Common Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Loss Per Common Share [Abstract]
Net loss attributable to the common shareholders	$ (37,101,946)	$ (6,154,050)	$ (40,629,513)	$ (22,252,797)
Basic weighted-average common shares outstanding	12,390,062	12,246,812	12,330,721	11,377,427
Effect of dilutive securities
Diluted weighted-average common shares outstanding	12,390,062	12,246,812	12,330,721	11,377,427
Loss per share:
Basic	$ (2.994)	$ (0.503)	$ (3.295)	$ (1.956)
Diluted	$ (2.994)	$ (0.503)	$ (3.295)	$ (1.956)

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Other Operating Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Other Operating Expense [Abstract]
Depreciation	$ 27,829	$ 27,841	$ 89,841	$ 83,732
Travel expenses	1,807	387	7,669	28,718
Entertainment expenses	$ 334	$ 4,050	15,604	36,961
Promotion expenses			260	7,075
Legal and consulting expenses	$ 164,573	$ 966,356	998,094	1,460,969
Car expenses	12,897	18,666	40,813	61,983
Bank charges	10,613	$ 28,074	33,011	167,020
Audit-related expense	$ 25,329		$ 255,779	133,142
Insurance expense		$ 59,062		200,812
Other expenses	$ 104,712	86,327	$ 251,252	142,845
Total	$ 348,094	$ 1,190,762	$ 1,692,323	$ 2,323,256

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Income Taxes and Prepaid Taxes (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Income Taxes and Prepaid Taxes [Abstract]
Prepaid taxes and tax payable, net	$ 1,714,843	$ 1,758,693

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Short-Term Bank Loans (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Short-term Debt [Line Items]
Short-term bank loans	$ 4,557,026	$ 11,389,522
Agricultural Bank Of China [Member] | From October 17, 2014 to October 16, 2015 [Member]
Short-term Debt [Line Items]
Fixed annual interest rate	6.72%
Short-term bank loans	$ 2,199,944	8,948,910
Agricultural Bank Of China [Member] | From October 31, 2014 to October 30, 2015 [Member]
Short-term Debt [Line Items]
Fixed annual interest rate	6.72%
Short-term bank loans	$ 2,357,082	$ 2,440,612

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Net Investment in Direct Financing Lease (Details 1) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Components of the Company' s net investment in direct financing leases
Total minimum lease payments to be received	$ 4,651,309	$ 5,328,663
Less: Amounts representing estimated executory costs
Minimum lease payments receivable	$ 4,651,309	$ 5,328,663
Less Allowance for uncollectible	(255,934)	(610,153)
Net minimum lease payments receivable	$ 4,395,375	$ 4,718,510
Estimated residual value of leased property
Less: Unearned income	$ (507,848)	$ (614,280)
Net investment in direct financing lease	$ 3,887,527	$ 4,104,230

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Distribution of Profit

9 Months Ended

Sep. 30, 2015

Distribution of Profit [Abstract]

DISTRIBUTION OF PROFIT

20. DISTRIBUTION OF PROFIT

The Company did not distribute any dividend to its shareholders for the three months and nine months ended September 30, 2015 and 2014, respectively.

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Organization and Principal Activities (Details) $ / shares in Units, ¥ in Millions, $ in Millions	1 Months Ended		4 Months Ended		9 Months Ended
	Jan. 26, 2015 USD ($)	Jan. 26, 2015 CNY (¥)	Jun. 30, 2014 USD ($)	Jun. 30, 2014 CNY (¥)	Sep. 30, 2015 Customer $ / shares shares	Dec. 31, 2014 $ / shares shares
Organization and Principal Activities (Textual)
Entity Incorporation, Date of Incorporation					Dec. 19, 2011
Number of shareholders | Customer					11
Number of shares acquired by BVI entities					12,390,062	12,255,062
Common stock, Par value | $ / shares					$ 0.001	$ 0.001
Business co-operation agreement, description					The Exclusive Business Cooperation Agreement shall remain in effect for ten years unless it is terminated by WFOE with 30-day prior notice.
Board of Directors Chairman [Member]
Organization and Principal Activities (Textual)
Transfer at Issue	$ 1.1	¥ 7
Chief Financial Officer [Member]
Organization and Principal Activities (Textual)
Transfer at Issue			$ 1.1	¥ 7
BVI Entities [Member]
Organization and Principal Activities (Textual)
Number of shares acquired by BVI entities					7,270,920
Common stock, Par value | $ / shares					$ 0.001
Percentage of ownership by BVI entities					90.00%
Huichun Qin [Member]
Organization and Principal Activities (Textual)
Percentage of ownership by BVI entities					100.00%

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Intangible Asset (Tables)

9 Months Ended

Sep. 30, 2015

Intangible Asset [Abstract]

Summary of intangible asset

	September 30, 2015  (Unaudited)		December 31, 2014
Software	$	5,694	$	14,530

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Intangible Asset (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Intangible Asset [Abstract]
Software	$ 5,694	$ 14,530

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Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2015

Allowance for Loan Losses [Abstract]

Schedule of allowance for loan losses and related investment

	Business Loans			Personal Loans			Total
	(Unaudited)			(Unaudited)			(Unaudited)
For the three months ended September 30, 2015
Beginning balance	$	16,598,522		$	9,597,444		$	26,195,966
Charge-offs		(26,341,752	)		(14,792,268	)		(41,134,020	)
Recoveries		-			-			-
Provisions		18,839,288			10,275,122			29,114,410
Ending balance		9,096,058			5,080,298			14,176,356
Ending balance: individually evaluated for impairment		-			-			-
Ending balance: collectively evaluated for impairment	$	9,096,058		$	5,080,298		$	14,176,356

	Business Loans		Personal Loans		Total
	(Unaudited)		(Unaudited)		(Unaudited)
For the three months ended September 30, 2014
Beginning balance	$	9,398,454	$	5,763,531	$	15,161,985
Charge-offs		-		-		-
Recoveries		-		-		-
Provisions		2,553,644		3,276,825		5,830,469
Ending balance		11,952,098		9,040,356		20,992,454
Ending balance: individually evaluated for impairment		-		-		-
Ending balance: collectively evaluated for impairment	$	11,952,098	$	9,040,356	$	20,992,454

	Business Loans			Personal Loans			Total
	(Unaudited)			(Unaudited)			(Unaudited)
For the nine months ended September 30, 2015
Beginning balance	$	14,836,650		$	9,654,071		$	24,490,721
Charge-offs		(26,341,752	)		(14,792,268	)		(41,134,020	)
Recoveries		-			(56,627	)		(56,627	)
Provisions		20,601,160			10,275,122			30,876,282
Ending balance		9,096,058			5,080,298			14,176,356
Ending balance: individually evaluated for impairment		-			-			-
Ending balance: collectively evaluated for impairment	$	9,096,058		$	5,080,298		$	14,176,356

	Business Loans			Personal Loans			Total
	(Unaudited)			(Unaudited)			(Unaudited)
For the nine months ended September 30, 2014
Beginning balance	$	1,049,836		$	326,112		$	1,375,948
Charge-offs		(784,537	)		(731,148	)		(1,515,685	)
Recoveries		-			-			-
Provisions		11,686,799			9,445,393			21,132,191
Ending balance		11,952,098			9,040,356			20,992,454
Ending balance: individually evaluated for impairment		-			-			-
Ending balance: collectively evaluated for impairment	$	11,952,098		$	9,040,356		$	20,992,454

Schedule of loan portfolio by the aggregate pass rating and the classified ratings

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Business loans	$	-	$	6,832,396	$	-	$	16,275,463	$	821,679	$	23,929,538
Personal loans		476,130		-		47,142		10,042,742		47,142		10,613,156
	$	476,130	$	6,832,396	$	47,142	$	26,318,205	$	868,821	$	34,542,694

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
Business loans	$	20,628,050	$	3,465,669	$	2,115,197	$	22,561,860	$	3,484,029	$	52,254,805
Personal loans		11,501,790		699,642		386,430		16,998,048		238,414		29,824,324
	$	32,129,840	$	4,165,311	$	2,501,627	$	39,559,908	$	3,722,443	$	82,079,129

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Summary of Significant Accounting Policies (Details 1) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Summary of Significant Accounting Policies [Abstract]
Items in the statements of income and comprehensive income, and statements of cash flows	$ 6.1735	$ 6.1480

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Guarantee Paid on Behalf of Guarantee Customers (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Guarantee Paid on Behalf of Guarantee Customers [Abstract]
Guarantee paid on behalf of guarantee service customers	$ 13,256,151	$ 10,577,352

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Loans Receivable, Net (Details 3) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Total Loans receivable by credit quality indicator	$ 34,542,694	$ 82,079,129
Percentage of loan receivable by credit quality indicator	100.00%	100.00%
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans receivable by credit quality indicator	$ 476,130	$ 32,129,840
Percentage of loan receivable by credit quality indicator	1.40%	39.10%
Special mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans receivable by credit quality indicator	$ 6,832,396	$ 4,165,311
Percentage of loan receivable by credit quality indicator	19.80%	5.10%
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans receivable by credit quality indicator	$ 47,142	$ 2,501,627
Percentage of loan receivable by credit quality indicator	0.10%	3.00%
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans receivable by credit quality indicator	$ 26,318,205	$ 39,559,908
Percentage of loan receivable by credit quality indicator	76.20%	48.20%
Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans receivable by credit quality indicator	$ 868,821	$ 3,722,443
Percentage of loan receivable by credit quality indicator	2.50%	4.50%

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Income Taxes and Prepaid Taxes (Tables)

9 Months Ended

Sep. 30, 2015

Income Taxes and Prepaid Taxes [Abstract]

Schedule of prepaid taxes and income tax payable

	September 30, 2015		December 31, 2014
	(Unaudited)
Prepaid taxes and tax payable, net	$	1,714,843	$	1,758,693

Summary of income tax expense

	For the Nine months Ended
	September 30,
	2015		2014
	(Unaudited)		(Unaudited)
Current income tax expense	$	7,508	$	-
Deferred income tax expense		587,142		10,979
Total provision for income taxes	$	594,650	$	10,979

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Risks

9 Months Ended

Sep. 30, 2015

Risks [Abstract]

RISKS

4. RISKS

(a) Credit risk

Credit risk is one of the most significant risks for the Company’s business. Credit risk exposures arise principally in lending activities, finance lease and financial guarantee activities which is an off-balance sheet financial instrument.

Credit risk is controlled by the application of credit approvals, limits and monitoring procedures. The Company manages credit risk through in-house research and analysis of the Chinese economy and the underlying obligors and transaction structures. To minimize credit risk, the Company requires collateral in the form of rights to cash, securities or property and equipment.

The Company identifies credit risk collectively based on industry, geography and customer type. This information is monitored regularly by management.

1.1 Lending activities

In measuring the credit risk of lending loans to corporate customers, the Company mainly reflects the “probability of default” by the customer on its contractual obligations and considers the current financial position of the customer and the exposures to the customer and its likely future development. For individual customers, the Company uses standard approval procedures to manage credit risk for personal loans.

The Company measures and manages the credit quality of loans to corporate and personal customers based on the “Guideline for Loan Credit Risk Classification” (the “Guideline”) issued by the China Banking Regulatory Commission, which requires commercial banks and micro-credit institutions to classify their corporate and personal loans into five categories: (1) pass, (2) special-mention, (3) substandard, (4) doubtful and (5) loss, among which loans classified in the substandard, doubtful and loss categories are regarded as non-performing loans. The Guideline also determines the percentage of each category of non-performing loans as allowances, which are 2% on special-mention loan, 25% on substandard loans, 50% on doubtful loans and 100% on loss loans.

The five categories are defined as follows:

(1) Pass: loans for which borrowers can honor the terms of the contracts, and there is no reason to doubt their ability to repay principal and interest of loans in full and on a timely basis.

(2) Special-mention: loans for which borrowers are still able to service the loans currently, although the repayment of loans might be adversely affected by some factors.

(3) Substandard: loans for which borrowers’ ability to service loans is apparently in question and borrowers cannot depend on their normal business revenues to pay back the principal and interest of loans. Certain losses might be incurred by the Company even when guarantees are executed.

(4) Doubtful: loans for which borrowers cannot pay back principal and interest of loans in full and significant losses will be incurred by the Company even when guarantees are executed.

(5) Loss: principal and interest of loans cannot be recovered or only a small portion can be recovered after taking all possible measures and resorting to necessary legal procedures.

Five-category loan classifications are re-examined on a quarterly basis. Adjustments are made to these classifications as necessary according to customers’ operational and financial position with loan loss reserves increased on a specific basis.

The Guideline stipulates that micro-credit companies, which are limited to provide short-term loans and financial guarantee services to only small to medium size businesses, should choose a reasonable methodology to provide allowance for the probable loss from the credit risk, and the allowance should not be less than the allowance amount derived from the five-category analysis. The Company continuously performs the analysis and believes that the allowance amount it provided is consistently more than the allowance amount derived from the five-category analysis.

1.2 Guarantee activities

The off-balance sheet commitments arising from guarantee activities carry similar credit risk to loans and the Company takes a similar approach on risk management.

Off-balance sheet commitments with credit exposures are also assessed and categorized with reference to the Guideline and include additional amounts on a specific basis.

(b) Liquidity risk

The Company is also exposed to liquidity risk which is risk that it is unable to provide sufficient capital resources and liquidity to meet its commitments and business needs. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, the Company will turn to other financial institutions and the owners to obtain short-term funding to meet the liquidity shortage.

(c) Foreign currency risk

A majority of the Company’s operating activities and a significant portion of the Company’s assets and liabilities are denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the Peoples’ Bank of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting a payment application form together with suppliers' invoices and signed contracts. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market.

(d) Concentration risk

As of September 30, 2015 and December 31, 2014, the Company held cash of $663,883 and $4,991,973, respectively that is uninsured by the government authority. To limit exposure to credit risk relating to deposits, the Company primarily places cash deposits only with large financial institutions in the PRC with acceptable credit ratings.

The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC as well as by the general state of the PRC’s economy. The business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.

No customer accounted for more than 10% of total loan balance as of September 30, 2015 and December 31, 2014.

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Loans Receivable, Net (Details 4) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable by credit quality indicator	$ 34,542,694	$ 82,079,129
Gurantee backed loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable by credit quality indicator	29,441,968	75,059,359
Pledged assets backed loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable by credit quality indicator	4,472,171	6,368,940
Collateral backed loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable by credit quality indicator	628,555	650,830
Business Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable by credit quality indicator	23,929,538	52,254,805
Business Loans [Member] | Gurantee backed loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable by credit quality indicator	20,001,068	47,613,818
Business Loans [Member] | Pledged assets backed loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable by credit quality indicator	3,299,915	3,990,157
Business Loans [Member] | Collateral backed loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable by credit quality indicator	628,555	650,830
Personal Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable by credit quality indicator	10,613,156	29,824,324
Personal Loans [Member] | Gurantee backed loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable by credit quality indicator	9,440,900	27,445,541
Personal Loans [Member] | Pledged assets backed loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable by credit quality indicator	$ 1,172,256	$ 2,378,783
Personal Loans [Member] | Collateral backed loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable by credit quality indicator

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Short-Term Bank Loans (Tables)

9 Months Ended

Sep. 30, 2015

Short-Term Bank Loans [Abstract]

Summary of Short Term Bank Loans

Bank Name	Interest rate	Term	September 30, 2015		December 31, 2014
			(Unaudited)
Agricultural Bank Of China	Fixed annual rate of 6.72%	From October 17, 2014 to October 16, 2015	$	2,199,944	$	8,948,910
Agricultural Bank Of China	Fixed annual rate of 6.72%	From October 31, 2014 to October 30, 2015		2,357,082		2,440,612
			$	4,557,026	$	11,389,522

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Income Taxes and Prepaid Taxes

9 Months Ended

Sep. 30, 2015

Income Taxes and Prepaid Taxes [Abstract]

INCOME TAXES AND PREPAID TAXES

24. INCOME TAXES AND PREPAID TAXES

Effective January 1, 2008, the New Taxation Law of PRC stipulates that domestically owned enterprises and foreign invested enterprises (the “FIEs”) are subject to a uniform tax rate of 25%. While the New Tax Law equalizes the tax rates for FIEs and domestically owned enterprises, preferential tax treatment may continue to be given to companies in certain encouraged sectors and to entities classified as high-technology companies, regardless of whether these are domestically-owned enterprises or FIEs. In November 2009, the Jiangsu Province Government issued Su Zheng Ban Fa [2009] No. 132 which stipulates that micro-credit companies in Jiangsu Province are subject to preferential tax rate of 12.5%. As a result, the Company is subject to the preferential tax rate of 12.5% for its loan business for the periods presented. The taxation practice implemented by the tax authority governing the Company is that the Company pays enterprise income taxes at rate of 25% on a quarterly basis, and upon annual tax settlement done by the Company and the tax authority in five (5) months after December 31 the tax authority will refund the Company the excess enterprise income taxes it paid beyond the rate of 12.5%.

The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. For the nine months ended September 30, 2015 and 2014,the Company had no unrecognized tax benefits. For the nine months ended September 30, 2015, the Company had net tax operating losses from its PRC subsidiaries and its consolidated VIE of $30,409,230 which will expire in the year ending December 31, 2020. As of September 30, 2015, the Company has carry-forward tax operating losses from its PRC subsidiaries and its consolidated VIE of $50,606,855, which will expire from the year ending December 31, 2019 to 2020. The Company recognized deferred income tax assets of $9,479,325 as of September 30, 2015. However, the Company estimates there will be no sufficient net income before income tax from years ending December 31, 2015 to 2020 to realize the deferred income tax assets. The Company provided valuation allowance for deferred income tax assets of $9,479,325 as of September 30, 2015.

The Company does not anticipate any significant increase to its liability for unrecognized tax benefit within the next 12 months. The Company will classify interest and penalties related to income tax matters, if any, in income tax expense.

Prepaid taxes and income tax payable are comprised of

	September 30, 2015		December 31, 2014
	(Unaudited)
Prepaid taxes and tax payable, net	$	1,714,843	$	1,758,693

Prepaid taxes represented the income tax refund the Company will receive from the tax authority in the annual income tax settlement or can deduct future income tax payables. The prepaid taxes was mainly generated from the Company’s VIE.

Income tax expense for the nine months ended September 30, 2015 and 2014 is comprised of:

	For the Nine months Ended
	September 30,
	2015		2014
	(Unaudited)		(Unaudited)
Current income tax expense	$	7,508	$	-
Deferred income tax expense		587,142		10,979
Total provision for income taxes	$	594,650	$	10,979

The Company made taxable profit during the nine months period ended September 30, 2015 in PFL, one of the Company’s PRC subsidiaries and accrued current income tax expenses therefrom.

The effective tax rates for the three months and nine months ended September 30, 2015 and 2014 are 1.49% and 0.07%, respectively.

Deferred tax liability arises from government incentive for the purpose of covering the Company’s actual loan losses and ruled that the income tax will be imposed on the subsidy if the purpose is not fulfilled within 5 years after the Company receives the subsidy. As of September 30, 2015, subsidy of$1,032,213 did not fulfill the purpose within due date and the related deferred tax liability was reversed. As of September 30, 2015 and December 31, 2014, the deferred tax liability amounted to $191,400 and $313,874, respectively.

As of September 30, 2015 and December 31, 2014, the Company intends to permanently reinvest the undistributed earnings from its foreign subsidiaries to fund future operations. The amount of unrecognized deferred tax liabilities for temporary differences related to investments in foreign subsidiaries is not determined because such a determination is not practicable.

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Loss Per Common Share

9 Months Ended

Sep. 30, 2015

Loss Per Common Share [Abstract]

LOSS PER COMMON SHARE

23. LOSS PER COMMON SHARE

The following table sets forth the computation of basic and diluted loss per common share for the three months and nine months ended September 30, 2015 and 2014, respectively:

	For the Three Months Ended						For the Nine months Ended
	September 30,						September 30,
	2015			2014			2015			2014
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net loss attributable to the common shareholders		(37,101,946	)		(6,154,050	)	$	(40,629,513	)	$	(22,252,797	)
Basic weighted-average common shares outstanding		12,390,062			12,246,812			12,330,721			11,377,427
Effect of dilutive securities		-			-			-			-
Diluted weighted-average common shares outstanding		12,390,062			12,246,812			12,330,721			11,377,427
Loss per share:
Basic		(2.994	)		(0.503	)	$	(3.295	)	$	(1.956	)
Diluted		(2.994	)		(0.503	)	$	(3.295	)	$	(1.956	)

Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is the same as basic earnings per share due to the lack of dilutive items in the Company and the fact that Company is in net loss position for the three months and nine months ended September 30, 2015 and 2014, respectively.

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Risks (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Risks (Textual)
Concentration risk, Percentage	10.00%	10.00%
Cash of uninsured amount	$ 663,883	$ 4,991,973
Special mention [Member]
Risks (Textual)
Allowance on non performing loans percentage	2.00%
Substandard [Member]
Risks (Textual)
Allowance on non performing loans percentage	25.00%
Doubtful [Member]
Risks (Textual)
Allowance on non performing loans percentage	50.00%
Loss [Member]
Risks (Textual)
Allowance on non performing loans percentage	100.00%

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Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2015

Other Current Liabilities [Abstract]

Schedule of other current liabilities

	September 30, 2015		December 31, 2014
	(Unaudited)
Accrued payroll	$	36,070	$	84,791
Accrued rental fee		94,987		-
Other tax payable		7,332		99,335
Other payable		21,722		11,877
	$	160,111	$	196,003

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Related Party Transactions and Balances

9 Months Ended

Sep. 30, 2015

Related Party Transactions and Balances [Abstract]

RELATED PARTY TRANSACTIONS AND BALANCES

25. RELATED PARTY TRANSACTIONS AND BALANCES

1) Nature of relationships with related parties

Name	Relationship with the Company
Wujiang Chunjia Textile Trading Co., Ltd (“Chunjia Textile”)	Controlled by Huichun Qin
Huichun Qin	Non-controlling shareholder and former CEO and chairman of board of directors

2) Related party balances

Amount due from related parties were as follows:

	September 30, 2015		December 31, 2014
	(Unaudited)
Chunjia Textile	$	411,729	$	162,707
Huichun Qin		1,098,197		1,147,088

During the year ended December 31, 2014, the Company provided financial guarantee service for Chunjia Textile to guarantee a loan of $816,193. As of September 30, 2015, the Company repaid Chunjia Textile’s loan on behalf of it for $411,729. The Company accrued provision of $205,865 on the outstanding balance as of September 30, 2015.

Huichun Qin transferred $1,098,197(equivalent of RMB 7 million) to his personal account without proper authorization on July 2, 2014. As of September 30, 2015, Huichun Qin has not repaid the balance. The amount was recorded as a deduction of the Company’s equity as of September 30, 2015 and December 31, 2014, respectively.

3) Related party transactions

The Company had no transaction with related parties during the three months and nine months ended September 30, 2015.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

26. COMMITMENTS AND CONTINGENCIES

1) Lease Commitments

The Company extended its lease agreement of its principal office for a 5-year period from October 1, 2013 to September 30, 2018. Additionally, the Company leased its new office under a lease agreement from June 1, 2015 to May 31, 2021. The following table sets forth the Company’s contractual obligations as of September 30, 2015 in future periods:

	Rental payments (Unaudited)
Year ending September 30, 2016	$	328,256
Year ending September 30, 2017		328,256
Year ending September 30, 2018		328,256
Year ending September 30, 2019		75,426
Year ending September 30, 2020 and thereafter		125,711
Total	$	1,185,905

2) Guarantee Commitments

The guarantees will terminate upon payment and/or cancellation of the obligation; however, payments by the Company would be triggered by failure of the guaranteed party to fulfill its obligation covered by the guarantee. Generally, the average guarantee expiration terms ranged within 6 to 12 months and the average percentage of the guarantee amount as security deposit is 10% ~ 20%. As of September 30, 2015 and December 31, 2014, the loan amount guaranteed by the Company was $14,071,781 and $21,794,663, respectively, for its financial guarantee service customers.

3) Contingencies

The Company is involved in various legal actions arising in the ordinary course of its business. As of September 30, 2015, the Company was involved in 78 collection lawsuits, among which 64 were related to its loan business and 14 were related to guarantee business. The Company initiated legal proceedings to collect delinquent balances from borrowers and guarantees. 34 of these cases with an aggregated claim of $11.1 million have been adjudicated by the Court in favor of the Company and these cases are settled or in the process of enforcement. The remaining 44 cases with an aggregated claim of $27.6 million have not been adjudicated by the Court as of September 30, 2015.

On August 6, 2014, a purported shareholder Andrew Dennison filed a putative class action complaint in the United States District Court District of New Jersey (the “N.J. district court”) relating to a July 25, 2014 press release about the Company’s progress in recovering a significant portion of the $5.4 million the Company paid in the first quarter of 2014 on behalf of loan guarantee customers. The action, Andrew Dennison v. China Commercial Credit, Inc., et al., Case No. 2:2014-cv-04956, alleges that the Company and its current and former officers and directors Huichun Qin, Long Yi, Jianming Yin, Jinggen Ling, Xiangdong Xiao, and John F. Levy violated the federal securities laws by misrepresenting in prior public filings certain material facts about the risks associated with its loan guarantee business. On October 2, 2014, purported shareholders Zhang Yun and Sanjiv Mehrotra (the “Yun Group”) asserted substantially similar claims against the same defendants in a putative class action captioned Zhang Yun v. China Commercial Credit, Inc., et al., Case No. 2:14-cv-06136 (D. N.J.). Neither complaint states the amount of damages sought.

On or about October 6, 2014, Dennison, the Yun Group and another purported shareholder, Jason Stark, filed motions to consolidate the cases, be appointed as lead plaintiff and to have their respective counsel appointed as lead counsel. On October 31, 2014, the N.J. district court entered an order consolidating the cases under the caption “In re China Commercial Credit Inc. Securities Litigation” and appointing the Yun Group as lead plaintiff (“Class Plaintiff”) and the Yun Group’s counsel as lead counsel.

On November 18, 2014, the Yun Group and the Company, which at that point was the only defendant served, entered into a stipulation to transfer of the case to the Southern District of New York. On December 18, 2014, Mr. Levy, who had by then been served, joined in the stipulation. On December 29, 2014, the N.J. district court entered an order transferring the action. The transfer was effected on January 22, 2015, and assigned docket number 1:15-cv-00557-ALC (S.D.N.Y.).

Under the schedule stipulated by the parties, the Yun Group was to file an amended complaint within 60 days of the date that the transfer was effected, and the defendants’ date to answer or move was within 60 days of that filing. On April 7, 2015, the Class Plaintiff filed a Second Amended Class Action Complaint (the “CAC”). The CAC also asserts securities law claims against defendants Axiom Capital Management, Inc., Burnham Securities Inc. and View Trade Securities, Inc. (collectively, the “Underwriter Defendants”). The CAC alleges that the Company engaged in a fraudulent scheme by engaging in undisclosed and improper lending practices and made misleading representations regarding its underwriting policies, the loan portfolio quality, the loan loss allowance, compliance with U.S. GAAP and its internal control systems. 

In accordance with the Court’s procedures, the Company and Mr. Levy and the Underwriter Defendants requested a Pre-Motion Conference in anticipation of filing a motion to dismiss the CAC, which was held on June 25, 2015. At the conference, the Court adjourned the date to answer or move in order to provide the Class Plaintiff with time to serve certain overseas defendants. After the conference, the Class Plaintiff voluntarily dismissed Jianming Yin, Jinggen Ling and Xiangdong Xiao from the action, and Long Yi agreed to waive service, which left Huichun Qin as the sole remaining defendant to serve. The case remains stayed pending service of Huichun Qin.

The Company believes that this lawsuit was without merit and intends to vigorously defend against it. At the early stage of the proceedings, the Company is not able to estimate the probability of success or loss.

On February 3, 2015, a purported shareholder Kiram Kodali filed a putative shareholder derivative complaint in the United States District Court for the Southern District of New York, captioned Kiran Kodali v. Huichun Qin, et al., Case No. 15-cv-806. The action alleges that the Company and its current and former officers and directors Huichun Qin, Long Yi, Jianming Yin, Jinggen Ling, Chunfang Shen, John F. Levy, Xiaofang Shen and Chunjiang Yu violated their fiduciary duties, grossly mismanaged the Company and were unjustly enriched based upon the transfer that was the subject of the Internal Review and other grounds substantially similar to those asserted in the class action complaints. Kodali did not serve a demand upon the Company and alleges that demand is excused. The Company and Mr. Levy have been served. An amended Consolidated Amended Class Action Complaint (the “CACAC”) was filed on April 20, 2015. On May 29, 2015, the Court “so ordered” a stipulation among Kodali, the Company and Mr. Levy staying all proceedings in the derivative case except for service of process on individual defendants until the earlier of thirty days of termination of the stipulation, dismissal of the class action with prejudice or the date any of the defendants in the class action file an answer to the CAC. The Company believes that this lawsuit is without merit and intends to vigorously defend against it. At this stage of the proceedings, the Company is not able to estimate the probability of success or loss.

On May 18, 2015, WFOE filed a civil complaint against Huichun Qin with the Wujiang Region Suzhou City People’s Court claiming Mr. Qin’s misappropriation of RMB 7 million in July 2014. The complaint was rejected due to a procedural issue and the Company is evaluating its strategic options.

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Variable Interest Entities and Other Consolidation Matters

9 Months Ended

Sep. 30, 2015

Variable Interest Entities and Other Consolidation Matters [Abstract]

VARIABLE INTEREST ENTITIES AND OTHER CONSOLIDATION MATTERS

3. VARIABLE INTEREST ENTITIES AND OTHER CONSOLIDATION MATTERS

On September 26, 2012, the Company, through WFOE, entered into a series of contractual arrangements, also known as “VIE Agreements” with Wujiang Luxiang and the Wujiang Luxiang Shareholders.

On February 19, 2014, WFOE entered into certain contractual arrangements, having substantially the same terms as those of the VIE Agreements with Pride Information and its sole shareholder, Mr. Huichun Qin. These VIE Agreements were terminated on May 11, 2015 and will be accounted for as a deconsolidation. Pride Information did not have any business since its inception. (See Note 1)

As of September 30, 2015, the Company had only one VIE.

The significant terms of the VIE Agreements are summarized in Note 1.

VIEs are entities that have either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary and must consolidate the VIE. WFOE is deemed to have a controlling financial interest and be the primary beneficiary of the entities mentioned in Note 1 above, because it has both of the following characteristics:

1. power to direct activities of a VIE that most significantly impact the entity’s economic performance, and

2. obligation to absorb losses of the entity that could potentially be significant to the VIE or right to receive benefits from the entity that could potentially be significant to the VIE.

In addition, as all of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through either arbitration or litigation in the PRC, they would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal environment in the PRC is not as developed as in other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could further limit the Company’s ability to enforce these contractual arrangements. Furthermore, these contracts may not be enforceable in China if PRC government authorities or courts take a view that such contracts contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons. In the event the Company is unable to enforce these contractual arrangements, it may not be able to exert effective control over Wujiang Luxiang, and Pride Information and its ability to conduct its business may be materially and adversely affected.

All of the Company’s main current operations are conducted through Wujiang Luxiang and PFL. Current regulations in China permit Wujiang Luxiang and PFL to pay dividends to us only out of its accumulated distributable profits, if any, determined in accordance with their articles of association and PRC accounting standards and regulations. The ability of Wujiang Luxiang and PFL to make dividends and other payments to the Company may be restricted by factors including changes in applicable foreign exchange and other laws and regulations.

The following financial statement amounts and balances of the VIE were included in the accompanying unaudited consolidated financial statements as of September 30, 2015 and December 31, 2014 and for the three months and nine months ended September 30, 2015 and 2014:

	September 30, 2015		December 31,  2014
	(Unaudited)
Total assets	$	36,981,862	$	77,513,966
Total liabilities		20,086,296		19,793,537

	For the Three Months Ended  September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenue	$	120,929		1,553,520	$	2,272,057	$	6,517,256
Net loss		36,925,013		5,627,816		40,083,818		21,158,128

All of the Company’s current revenue is generated in RMB. Any future restrictions on currency exchanges may limit our ability to use net revenues generated in RMB to make dividends or other payments in US$ or fund possible business activities outside China.

Foreign currency exchange regulation in China is primarily governed by the following rules:

● Foreign Exchange Administration Rules (1996), as amended in August 2008, or the Exchange Rules;

● Administration Rules of the Settlement, Sale and Payment of Foreign Exchange (1996), or the Administration Rules.

Under the Administration Rules, RMB is freely convertible for current account items, including the distribution of dividends, interest payments, trade and service related foreign exchange transactions, but not for capital account items, such as direct investments, loans, repatriation of investments and investments in securities outside of China, unless the prior approval of the State Administration of Foreign Exchange (“SAFE”) is obtained and prior registration with the SAFE is made. Foreign-invested enterprises like WFOE that need foreign currency for the distribution of profits to their shareholders may validate payment from their foreign currency accounts or purchase and pay foreign currencies at the designated foreign exchange banks to their foreign shareholders by producing board resolutions for such profit distribution. Based on their needs, foreign invested enterprises are permitted to open foreign currency settlement accounts for current account receipts and payments of foreign exchange along with specialized accounts for capital account receipts and payments of foreign currency at certain designated foreign exchange banks.

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Subsequent Event

9 Months Ended

Sep. 30, 2015

Subsequent Event [Abstract]

SUBSEQUENT EVENT

27. SUBSEQUENT EVENT

Contingencies 

During the period from October 1, 2015 to the date of this report, the Company was involved in one new lawsuit, which is related to guarantee business. The Company initiated legal proceedings to collect delinquent balance from the guarantor. This case, with a claim of $0.57 million is still at the initial stage of the litigation.

Charged-off loans

During the period from October 1, 2015 to the date of this report, the Company assessed the charged-off loan and guarantee balances recorded as of September 30, 2015 and was of the opinion that these balances were uncollectible.

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Distribution of Profit (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Distribution of Profit [Abstract]
Dividend distribute to shareholders	$ 0	$ 0	$ 0	$ 0

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Net Investment in Direct Financing Lease (Tables)

9 Months Ended

Sep. 30, 2015

Net Investment in Direct Financing Lease [Abstract]

Schedule of future minimum lease receipts under non-cancellable finance lease arrangements

	September 30, 2015			December 31, 2014
	(Unaudited)
Within 1 year	$	3,650,335		$	2,549,619
2 years		923,976			1,981,777
3 years		76,998			797,267
Total minimum lease receipts		4,651,309			5,328,663
Less: amount representing interest		(507,848	)		(614,280	)
Present value of minimum lease receipts	$	4,143,461		$	4,714,383

Summary of components of net investment in direct financing leases

	September 30, 2015			December 31, 2014
	(Unaudited)
Total minimum lease payments to be received	$	4,651,309		$	5,328,663
Less: Amounts representing estimated executory costs		-			-
Minimum lease payments receivable		4,651,309			5,328,663
Less Allowance for uncollectible		(255,934	)		(610,153	)
Net minimum lease payments receivable		4,395,375			4,718,510
Estimated residual value of leased property		-			-
Less: Unearned income		(507,848	)		(614,280	)
Net investment in direct financing lease	$	3,887,527		$	4,104,230

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Summary of Significant Accounting Policies (Details 2) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Summary of Significant Accounting Policies [Abstract]
Guarantee	$ 14,071,781	$ 21,794,663

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Net Investment in Direct Financing Lease (Details Textual) - USD ($) $ in Thousands	Oct. 13, 2014	Sep. 25, 2014
Net Investment in Direct Financing Lease (Textual)
Total lease receivable	$ 2,880	$ 2,730
Lease bears an interest rate per annum	11.11%	10.36%

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Consolidated Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Cash	$ 663,883	$ 4,991,973
Restricted cash	395,592	1,983,285
Notes receivable	15,714	130,166
Loans receivable, net of allowance for loan losses $14,176,356 and $24,490,721 for September 30 2015 and December 31, 2014, respectively	20,366,338	57,588,408
Investment in direct financing lease, net of allowance for direct financing lease losses of $255,934 and $610,153 for September 30, 2015 and December 31, 2014, respectively	3,887,527	4,104,230
Interest receivable	65,203	543,603
Prepaid taxes	1,714,843	1,758,693
Property and equipment, net	55,974	142,154
Intangible asset	5,694	14,530
Guarantee paid on behalf of guarantee service customers	13,256,151	10,577,352
Guarantee paid on behalf of a related party	411,729	162,707
Other assets	$ 621,795	387,227
Deferred tax assets		705,459
Total Assets	$ 41,460,443	83,089,787
Liabilities
Short-term bank loans	4,557,026	11,389,522
Deposits payable	1,192,683	2,725,363
Unearned income from financial guarantee services and finance lease service	82,568	182,657
Accrual for financial guarantee services	13,854,117	5,546,128
Other current liabilities	160,111	196,003
Deferred tax liability	191,400	313,874
Total Liabilities	20,037,905	20,353,547
Shareholders' Equity
Common stock (par value $0.001 per share, 100,000,000 shares authorized; 12,390,062 and 12,255,062 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively)	12,390	12,255
Subscription receivable	(1,062)	(1,062)
Additional paid-in capital	59,698,864	59,458,797
Statutory reserves	5,442,150	5,442,150
Due from a non-controlling shareholder	(1,098,197)	(1,147,088)
Retained earnings	(47,619,319)	(6,989,806)
Accumulated other comprehensive income	4,987,712	5,960,994
Total Shareholders' Equity	21,422,538	62,736,240
Total Liabilities and Shareholders' Equity	$ 41,460,443	$ 83,089,787
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred Stock
Series B Preferred Stock [Member]
Shareholders' Equity
Preferred Stock

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Other Operating Expense (Tables)

9 Months Ended

Sep. 30, 2015

Other Operating Expense [Abstract]

Schedule of other operating expense

	For the Three Months Ended  September 30,				For the Nine months Ended  September 30,
	2015		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Depreciation	$	27,829	$	27,841	$	89,841	$	83,731
Travel expenses		1,807		387		7,669		28,718
Entertainment expenses		334		4,050		15,604		36,961
Promotion expenses		-		-		260		7,075
Legal and consulting expenses		164,573		966,356		998,094		1,460,969
Car expenses		12,897		18,666		40,813		61,983
Bank charges		10,613		28,074		33,011		167,020
Audit-related expense		25,329		-		255,779		133,142
Insurance expense		-		59,062		-		200,812
Other expenses		104,712		86,327		251,252		142,845
Total	$	348,094	$	1,190,763	$	1,692,323	$	2,323,256

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Organization and Principal Activities

9 Months Ended

Sep. 30, 2015

Organization and Principal Activities [Abstract]

ORGANIZATION AND PRINCIPAL ACTIVITIES

1. ORGANIZATION AND PRINCIPAL ACTIVITIES

China Commercial Credit, Inc. (“CCC” or “the Company”) is a holding company that was incorporated under the laws of the State of Delaware on December 19, 2011.

Wujiang Luxiang Rural Microcredit Co., Ltd (“Wujiang Luxiang”) is a company established under the laws of the PRC on October 21, 2008 and its shareholders consist of 11 companies established under the laws of the People's Republic of China (“PRC”) and 1 PRC individual, Mr. Qin Huichun, the Company's former CEO (collectively, the "Wujiang Luxiang Shareholders"). The Company is a microcredit company primarily engaged in providing direct loans and financial guarantee services to small-to-medium sized enterprises (“SMEs”), farmers and individuals in Wujiang City, Jiangsu Province, PRC.

On August 7, 2012 CCC entered into certain share exchange agreements with 16 PRC individuals, each of whom is the sole shareholder of a British Virgin Island company (collectively “16 BVI entities”) and the 16 BVI entities. These 16 PRC individuals represent the ultimate owners of the Wujiang Luxiang Shareholders.

Upon completion of the share exchange, the 16 PRC individuals, through their respective BVI entities, acquired 7,270,920 shares of Common Stock, par value $0.001 per share (the "Common Stock") of CCC in exchange for their agreement to cause the Wujiang Luxiang Shareholders to enter into the Variable Interest Entity (the “VIE”) Agreements. As a result of the share exchange, the 16 BVI entities became CCC shareholders, who collectively owned approximately 90% of CCC’s total issued and outstanding shares of Common Stock at the time of the share exchange.

Since at the time of the share exchange neither CCC nor the 16 BVI entities had any operations and only a minor amount of net assets, the share exchange shall be considered as capital transaction in substance, rather than a business combination.

The share exchange is recorded as a “reverse recapitalization” equivalent to the issuance of stocks to the 16 BVI entities for the net monetary assets of CCC. The accounting for the transaction is identical to a reverse acquisition, except that no goodwill is recorded.

Management of the Company looked through the 16 BVI entities and treated the share exchange as a reverse merger between CCC and Wujiang Luxiang for accounting purposes, even though the share exchange was between CCC and the 16 BVI entities, because of the following reasons: (i) neither CCC nor the 16 BVI entities had any operations and only a minor amount of net assets; (ii) the 16 PRC individual, who are the owners of the 16 BVI entities, are the ultimate owners of Wujiang Luxiang, and (iii) the sole purpose of the share exchange was to issue approximately 90%of pre-public offering CCC shares to the ultimate owners of Wujiang Luxiang Shareholders.

VIE AGREEMENTS WITH WUJIANG LUXIANG

Subsequent to the share exchange, on September 26, 2012, the Company through its indirectly wholly owned subsidiary, Wujiang Luxiang Information Technology Consulting Co. Ltd. (“WFOE”), entered into a series of VIE Agreements with Wujiang Luxiang and the Wujiang Luxiang Shareholders. The purpose of the VIE Agreements is solely to give WFOE the exclusive control over Wujiang Luxiang’s management and operations.

The significant terms of the VIE Agreements are summarized below:

Exclusive Business Cooperation Agreement

Pursuant to the Exclusive Business Cooperation Agreement between Wujiang Luxiang and WFOE, WFOE provides Wujiang Luxiang with technical support, consulting services and other management services relating to its day-to-day business operations and management, on an exclusive basis, utilizing its advantages in technology, human resources, and information. Additionally, Wujiang Luxiang grants an irrevocable and exclusive option to WFOE to purchase from Wujiang Luxiang any or all of its assets at the lowest purchase price permitted under PRC laws. For services rendered to Wujiang Luxiang by WFOE under the Agreement, the service fee Wujiang Luxiang is obligated to pay shall be calculated based on the time of services rendered multiplied by the corresponding rate, which is approximately equal to the net income of Wujiang Luxiang.

The Exclusive Business Cooperation Agreement shall remain in effect for ten years unless it is terminated by WFOE with 30-day prior notice. Wujiang Luxiang does not have the right to terminate the agreement unilaterally. WFOE may unilaterally extend the term of this agreement with prior written notice.

Share Pledge Agreement

Under the Share Pledge Agreement between the Wujiang Shareholders and WFOE, the 12 Wujiang Shareholders pledged all of their equity interests in Wujiang Luxiang to WFOE to guarantee the performance of Wujiang Luxiang’s obligations under the Exclusive Business Cooperation Agreement. Under the terms of the agreement, in the event that Wujiang Luxiang or its shareholders breach their respective contractual obligations under the Exclusive Business Cooperation Agreement, WFOE, as pledgee, will be entitled to certain rights, including, but not limited to, the right to collect dividends generated by the pledged equity interests. The Wujiang Shareholders also agreed that upon occurrence of any event of default, as set forth in the Share Pledge Agreement, WFOE is entitled to dispose of the pledged equity interest in accordance with applicable PRC laws. The Wujiang Shareholders further agree not to dispose of the pledged equity interests or take any actions that would prejudice WFOE’s interest.

Exclusive Option Agreement

Under the Exclusive Option Agreement, the Wujiang Shareholders irrevocably granted WFOE (or its designee) an exclusive option to purchase, to the extent permitted under PRC law, once or at multiple times, at any time, part or all of their equity interests in Wujiang Luxiang. The option price is equal to the capital paid in by the Wujiang Shareholders subject to any appraisal or restrictions required by applicable PRC laws and regulations.

Power of Attorney

Under the Power of Attorney, the Wujiang Shareholders authorize WFOE to act on their behalf as their exclusive agent and attorney with respect to all rights as shareholders, including but not limited to:(a) attending shareholders' meetings; (b) exercising all the shareholder's rights, including voting, that shareholders are entitled to under the laws of China and the Articles of Association, including but not limited to the sale or transfer or pledge or disposition of shares in part or in whole; and (c) designating and appointing on behalf of shareholders the legal representative, the executive director, supervisor, the chief executive officer and other senior management members of Wujiang Luxiang. The Power of Attorney is coupled with an interest and shall be irrevocable and continuously valid from the date of execution, so long as the Wujiang Shareholder is a shareholder of the Company.

Timely Reporting Agreement

To ensure Wujiang Luxiang promptly provides all of the information that WFOE and the Company need to file various reports with the SEC, a Timely Reporting Agreement was entered between Wujiang Luxiang and the Company.

Under the Timely Reporting Agreement, Wujiang Luxiang agrees that it is obligated to make its officers and directors available to the Company and promptly provide all information required by the Company so that the Company can file all necessary SEC and other regulatory reports as required.

INCORPORATION OF PFL

On September 5, 2013, our wholly owned subsidiary, CCC International Investment Holding Ltd. (“CCC HK”), established Pride Financial Leasing (Suzhou) Co. Ltd. (“PFL”) in Jiangsu Province, China. PFL was expected to offer financial leasing of machinery and equipment, transportation vehicles, and medical devices to municipal government agencies, hospitals and SMEs in Jiangsu Province and beyond. As of September 30, 2015, PFL incurred two finance lease transactions.

VIE AGREEMENTS WITH PRIDE INFORMATION

On February 19, 2014, WFOE entered into certain contractual arrangements with Mr. Huichun Qin and Pride Information Technology Co. Ltd. (“Pride Information”), a domestic entity established on February 19, 2014 and 100% owned by Mr. Qin. Pursuant to these contractual arrangements, WFOE shall have the power, rights and obligations equivalent in all material respects to those it would possess as the sole equity holder of Pride Information, including absolute control rights and the rights to the assets, property and revenue of Pride Information and as a result, approximately 100% of the net income of Pride Information will be paid as a service fee to WFOE.

The contractual arrangements between WFOE, Pride Information and its sole shareholder, Mr. Huichun Qin, have substantially the same terms as those between WFOE, Wujiang Luxiang and its shareholders.

On April 11, 2015, WFOE delivered a notice of termination to Pride Information. As a result, the contractual arrangements between WFOE, Pride Information and Mr. Qin were terminated effective on May 11, 2015 and WFOE no longer controls Pride Information.

Completion of the Internal Review

Based on the Chief Financial Officer’s review of the books and records of the Company, the Company has made a preliminary determination that following the close of the fiscal quarter ended June 30, 2014, RMB 7 million (approximately $1.1 million) was transferred (the “Transfer at Issue”) from the bank account of WFOE, without authorization to the personal account of a former executive officer of the Company, who was still an executive officer at the time of the transfer. The funds were supposed to be used for the purpose of increasing the registered capital account of Wujiang Luxiang. The Company has sought return of the funds but to date has not recovered them. The Company’s Board of Directors explored all means, including legal avenues, to recover the funds and had formed a Special Committee to undertake an internal review of the circumstances surrounding the transfer.

On January 26, 2015, the Special Committee notified the Board of Directors that the internal review surrounding the Transfer at Issue was completed. The internal review confirmed that Mr. Qin transferred RMB 7 million (approximately $1.1 million) from WFOE’s bank account to his personal bank account. The internal review team was unable to interview Mr. Qin. The missing funds have not yet been recovered and the Company has engaged local PRC counsel to assist in the matter.

During the internal review, the independent counsel examined whether other transfers had occurred that were similar to the Transfer at Issue, in that the Company’s funds were transferred to a related party in a manner that was not consistent with the Company’s corporate governance and internal control procedures. The independent counsel identified four transfers made by Mr. Qin that were not consistent with the Company’s corporate governance and internal control procedures. With respect to the first three transfers, all funds were either returned to the Company or applied to the Company’s business. With respect to the fourth transfer, the funds were used to increase the registered capital of Wujiang Luxiang, a variable interest entity the Company controls via a series of contractual arrangements, as intended and reflected in an application made to the PRC government for such increase of registered capital.

The internal review indicated that the Company’s control deficiencies contributed to the Transfer at Issue. The internal review also found that, since the discovery of the Transfer at Issue, the Company has taken various steps to improve its internal controls and procedures, including implementing a new fund transfer approval policy and procedures and new standards of credit risk assessment which are carried out by the newly formed Loan Review Committee. The internal review conducted by independent counsel engaged by the Special Committee of the Board of Directors observed that such new controls and procedures appear to be much more thorough and comprehensive.

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Subsequent Event (Details) $ in Thousands	Oct. 01, 2015 USD ($) Lawsuits	Sep. 30, 2015 Lawsuits
Subsequent Events [Textual]
Number of lawsuit		78
Subsequent Event [Member]
Subsequent Events [Textual]
Number of lawsuit	1
Litigation settlement claim | $	$ 570

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Loans Receivable, Net (Details 1) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans by classes of loan portfilio	$ 17,621,986	$ 33,306,861
Business Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans by classes of loan portfilio	10,733,020	16,331,544
Personal Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans by classes of loan portfilio	$ 6,888,966	$ 16,975,317

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Variable Interest Entities and Other Consolidation Matters (Tables)

9 Months Ended

Sep. 30, 2015

Variable Interest Entities and Other Consolidation Matters [Abstract]

Schedule of variable interest entities

	September 30, 2015		December 31,  2014
	(Unaudited)
Total assets	$	36,981,862	$	77,513,966
Total liabilities		20,086,296		19,793,537

	For the Three Months Ended  September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenue	$	120,929		1,553,520	$	2,272,057	$	6,517,256
Net loss		36,925,013		5,627,816		40,083,818		21,158,128

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Allowance for Loan Losses (Details 1) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 34,542,694	$ 82,079,129
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	476,130	32,129,840
Special mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	6,832,396	4,165,311
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	47,142	2,501,627
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	26,318,205	39,559,908
Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	868,821	3,722,443
Business Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 23,929,538	52,254,805
Business Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans		20,628,050
Business Loans [Member] | Special mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 6,832,396	3,465,669
Business Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans		2,115,197
Business Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 16,275,463	22,561,860
Business Loans [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	821,679	3,484,029
Personal Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	10,613,156	29,824,324
Personal Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 476,130	11,501,790
Personal Loans [Member] | Special mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans		699,642
Personal Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 47,142	386,430
Personal Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	10,042,742	16,998,048
Personal Loans [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 47,142	$ 238,414

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Other Current Liabilities

9 Months Ended

Sep. 30, 2015

Other Current Liabilities [Abstract]

OTHER CURRENT LIABILITIES

17. OTHER CURRENT LIABILITIES

Other current liabilities as of September 30, 2015 and December 31, 2014 consisted of:

	September 30, 2015		December 31, 2014
	(Unaudited)
Accrued payroll	$	36,070	$	84,791
Accrued rental fee		94,987		-
Other tax payable		7,332		99,335
Other payable		21,722		11,877
	$	160,111	$	196,003

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Loans Receivable, Net (Tables)

9 Months Ended

Sep. 30, 2015

Loans Receivable, Net [Abstract]

Schedule of loans receivable

	September 30, 2015			December 31, 2014
	(Unaudited)
Business loans	$	23,929,538		$	52,254,805
Personal loans		10,613,156			29,824,324
Total Loans receivable		34,542,694			82,079,129
Allowance for loan losses
Collectively assessed		(14,176,356	)		(24,490,721	)
Individually assessed		-			-
Allowance for loan losses		(14,176,356	)		(24,490,721	)
Loans receivable, net	$	20,366,338		$	57,588,408

Schedule of nonaccrual loans by classes of loan

	September 30, 2015		December 31, 2014
	(Unaudited)
Business loans	$	10,733,020	$	16,331,544
Personal loans		6,888,966		16,975,317
	$	17,621,986	$	33,306,861

Schedule of the aging of past due loans

	1-89 Days Past Due		90 - 179 Days Past Due		180 - 365 Days Past Due		Over 1 year Past Due		Total Past Due		Current		Total Loans
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Business loans	$	11,706,842	$	1,571,388	$	3,378,485	$	5,783,147	$	22,439,862	$	1,489,676	$	23,929,538
Personal loans		1,854,238		2,738,930		727,553		3,422,483		8,743,204		1,869,952		10,613,156
	$	13,561,080	$	4,310,318	$	4,106,038	$	9,205,630	$	31,183,066	$	3,359,628	$	34,542,694

	1-89 Days Past Due		90 - 179 Days Past Due		180 - 365 Days Past Due		Over 1 year Past Due		Total Past Due		Current		Total Loans
Business loans	$	11,112,919	$	5,043,931	$	8,595,516	$	2,692,097	$	27,444,463	$	24,810,342	$	52,254,805
Personal loans		728,929		9,406,980		7,373,088		195,249		17,704,246		12,120,078		29,824,324
	$	11,841,848	$	14,450,911	$	15,968,604	$	2,887,346	$	45,148,709	$	36,930,420	$	82,079,129

Schedule of loans portfolio by credit quality indicator

Five Categories	September 30, 2015		%			December 31, 2014		%
	(Unaudited)		(Unaudited)
Pass	$	476,130		1.4	%		32,129,840		39.1	%
Special mention		6,832,396		19.8	%		4,165,311		5.1	%
Substandard		47,142		0.1	%		2,501,627		3.0	%
Doubtful		26,318,205		76.2	%		39,559,908		48.2	%
Loss		868,821		2.5	%		3,722,443		4.5	%
Total	$	34,542,694		100	%		82,079,129		100	%

Schedule of loans portfolio by collateral

	September 30, 2015
	Business Loans		Personal Loans		Total
	(Unaudited)		(Unaudited)		(Unaudited)
Guarantee backed loans	$	20,001,068	$	9,440,900	$	29,441,968
Pledged assets backed loans		3,299,915		1,172,256		4,472,171
Collateral backed loans		628,555		-		628,555
	$	23,929,538	$	10,613,156	$	34,542,694

	December 31, 2014
	Business Loans		Personal Loans		Total
Guarantee backed loans	$	47,613,818	$	27,445,541	$	75,059,359
Pledged assets backed loans		3,990,157		2,378,783		6,368,940
Collateral backed loans		650,830		-		650,830
	$	52,254,805	$	29,824,324	$	82,079,129

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Employee Retirement Benefit

9 Months Ended

Sep. 30, 2015

Employee Retirement Benefit [Abstract]

EMPLOYEE RETIREMENT BENEFIT

19. EMPLOYEE RETIREMENT BENEFIT

The Company has made employee benefit contribution in accordance with relevant Chinese regulations, including retirement insurance, unemployment insurance, medical insurance, housing fund, work injury insurance and maternity insurance. The Company recorded the contribution in the salary and employee charges when incurred. The contributions made by the Company were $15,109 and $18,028 for the three months ended September 30, 2015 and 2014, respectively, and $52,743 and $60,964 for the nine months ended September 30, 2015 and 2014, respectively.

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Guarantee Paid on Behalf of Guarantee Customers (Details Textual) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Guarantee Paid on Behalf of Guarantee Customers (Textual)
Accrued allowance on financial guarantee service	$ 13,854,117	$ 5,546,128

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of presentation and principle of consolidation

The unaudited interim consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).

The interim financial information as of September 30, 2015 and for the three and nine months ended September 30, 2015 and 2014 have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and pursuant to Regulation S-X. Certain information and footnote disclosures, which are normally included in annual financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited interim financial information should be read in conjunction with the audited financial statements and the notes thereto, included in the Form 10-K for the fiscal year ended December 31, 2014 filed with the SEC on April 15, 2015.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s financial position as of September 30, 2015, its results of operations for the three months and nine months ended September 30, 2015 and 2014, and its cash flows for the nine months ended September 30, 2015 and 2014, as applicable, have been made. The unaudited interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods.

(b) Operating segments

ASC 280, Segment Reporting requires companies to report financial and descriptive information about their reportable operating segments, including segment profit or loss, certain specific revenue and expense items, and segment assets. The Company has no reportable segments. All of the Company's activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with registered capital and other borrowings and manage interest rate and credit risk.

The Company has only one reportable segment, which is to provide financial services in the PRC domestic market, primarily in Wujiang City, Jiangsu Province. The Company’s chief operating decision-maker (“CODM”) has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for both the direct lending and guarantee business and the anticipated financial leasing business. The Company’s net revenues are all generated from customers in the PRC. Hence, the Company operates and manages its business without segments. For the nine months ended September 30, 2015 and 2014, there was no one customer that accounted for more than 10% of the Company's revenue.

(c) Cash

Cash consists of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use The Company maintains accounts at banks and has not experienced any losses from such concentrations.

(d) Restricted cash

Restricted cash represents cash pledged with banks as guarantor deposit for the guarantee business customers. The banks providing loans to the Company’s guarantee service customers generally require the Company, as the guarantor of the loans, to pledge a cash deposit of 10% to 20% of the guaranteed amount to an escrow account and is restricted from use. The deposits are released after the guaranteed bank loans are paid off and the Company’s guarantee obligation expires which is usually within 12 months.

(e) Loans receivable, net

Loans receivable primarily represent loan amount due from customers. The management has the intent and ability to hold such receivable for the foreseeable future or until maturity or payoff. Loans receivable are recorded at unpaid principal balances, net of allowance for loan losses that reflects the Company’s best estimate of the amounts that will not be collected. Loan origination and commitment fees and certain direct loan origination costs collected from customers are directly recorded in current year interests and fees on loans. The loans receivable portfolio consists of corporate loans and personal loans (Note 6). The Company does not charge loan origination and commitment fees.

(f) Allowance for loan losses

The allowance for loan losses is increased by charges to income and decreased by charge offs (net of recoveries). Recoveries represent subsequent collection of amounts previously charged-off. The increase in allowance for loan losses is the netting effect of “reversal” and “provision” for both business and personal loans. If the ending balance of the allowance for loan losses after any charge offs (net of recoveries) is less than the beginning balance, it will be recorded as a “reversal”; if it is larger, it will be recorded as a “provision” in the allowance for loan loss. The netting amount of the “reversal” and the “provision” is presented in the consolidated statements of operations and comprehensive income (loss).

The Company recognizes a charge-off when management determines that full repayment of a loan is not probable. The primary factor in making that determination is the potential outcome of a lawsuit against the delinquent debtor. The Company will recognize a charge-off when the Company loses contact with the delinquent borrower for more than six months or when the court rules against the Company to seize the collateral asset of the delinquent debt from either the guarantor or borrower.

The allowance for loan losses is maintained at a level believed to be reasonable by management to absorb probable losses inherent in the portfolio as of each balance sheet date. The allowance is based on factors such as the size and current risk characteristics of the portfolio, an assessment of individual loan and actual loss, delinquency, and/or risk rating record within the portfolio (Note 7). The Company evaluates its allowance for loan losses on a quarterly basis or more often as necessary.

(g) Interest receivable

Interest on loans receivable is accrued and credited to income as earned. The Company determines a loan past due status by the number of days that have elapsed since a borrower has failed to make a contractual loan payment. Accrual of interest is generally discontinued when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days. Additionally, any previously accrued but uncollected interest is reversed. Subsequent recognition of income occurs only to the extent payment is received, subject to management’s assessment of the collectability of the remaining interest and principal. Loans are generally restored to an accrual status when it is no longer delinquent and collectability of interest and principal is no longer in doubt and past due interest is recognized at that time.

The interest reversed due to the above reason was $1,642,566 and $1,684,691 as of September 30, 2015 and December 31, 2014, respectively.

(h) Property and equipment

The property and equipment are stated at cost less accumulated depreciation. The depreciation is computed on a straight-line method over the estimated useful lives of the assets with 5% salvage value. Estimated useful lives of property and equipment are stated in Note 12.

The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the accounts and includes any gain or loss in the statement of income. The Company charges maintenance, repairs and minor renewals directly to expenses as incurred; major additions and betterment to equipment are capitalized.

(i) Impairment of long-lived assets

The Company applies the provisions of ASC No. 360 Sub topic 10, "Impairment or Disposal of Long-Lived Assets"(ASC 360- 10) issued by the Financial Accounting Standards Board ("FASB"). ASC 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value.

The Company tests long-lived assets, including property and equipment and finite lived intangible assets, for impairment at least annually or more frequently upon the occurrence of an event or when circumstances indicate that the net carrying amount is greater than its fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows as the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available in making whatever estimates, judgments and projections are considered necessary. There were no impairment losses in the three and nine months ended September 30, 2015 and 2014.

(j) Fair values of financial instruments

ASC Topic 825, Financial Instruments (“Topic 825”) requires disclosure of fair value information of financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Topic 825 excludes certain financial instruments and all nonfinancial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company.

Level 1	inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2	inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

As of September 30, 2015 and December 31, 2014, financial instruments of the Company primarily comprise of cash, restricted cash, notes receivable, accrued interest receivable, other receivable, short-term bank loans, deposits payable and accrued expenses, which were carried at cost on the consolidated balance sheets, and carrying amounts approximated their fair values because of their generally short maturities.

(k) Foreign currency translation

The reporting currency of the Company is United States Dollars (“US$”), which is also the Company’s functional currency. The PRC subsidiaries and VIEs maintain their books and records in its local currency, the Renminbi Yuan (“RMB”), which is their functional currencies as being the primary currency of the economic environment in which these entities operate.

For financial reporting purposes, the financial statements of the Company prepared using RMB are translated into the Company’s reporting currency, United States Dollars, at the exchange rates quoted by www.oanda.com. Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in shareholders’ equity.

	September 30,  2015		December 31,  2014
Balance sheet items, except for equity accounts		6.3638		6.1460
		For the nine months ended September 30,
		2015		2014
Items in the statements of income and comprehensive income, and statements of cash flows		6.1735		6.1480

Transactions denominated in currencies other than the functional currency are translated into prevailing functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the consolidated statements of comprehensive loss.

(l) Use of estimates

The preparation of consolidated financial statements in conformity with U.S.GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews these estimates using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. Significant accounting estimates reflected in the financial statements include: (i) the allowance for doubtful debts; (ii) estimates of losses on unexpired loan contracts and guarantee service contracts; (iii) accrual of estimated liabilities; (iv) useful lives of long-lived assets, (v) the impairment of long-lived assets; (vi) the valuation allowance of deferred tax assets; and (vii) contingencies and litigation.

(m) Revenue recognition

Revenue is recognized when there are probable economic benefits to the Company and when the revenue can be measured reliably, on the following:

● Interest income on loans. Interest on loan receivables is accrued monthly in accordance with their contractual terms and recorded in accrued interest receivable. The Company does not charge prepayment penalty from customers. Additionally, any previously accrued but uncollected interest is discontinued of accrual and reversed, when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days.

● Commission on guarantee service. The Company receives the commissions from guarantee services in full at inception and records as unearned income before amortizing it throughout the period of guarantee.

● Income on direct financing lease. The financing agreements are classified as direct financing lease as prescribed by the Financial Accounting Standards Board ("FASB Codification"). Revenues representing the capitalized costs of the investment are recognized as income upon inception of the leases. The portion of revenues representing the difference between the gross investment in the lease (the sum of the minimum lease payments and the guaranteed residual value, if any) and the sum of the present value of the two components is recorded as unearned income and amortized over the lease term.   Taxes assessed by governmental authorities that are directly imposed on revenue-producing transactions between the Company and its customers (which may include, but are not limited to, sales, use, value added and some excise taxes) are excluded from revenues.   Lessees are responsible for all taxes, insurance and maintenance costs.

● Non-interest income. Non-interest income mainly includes rental income from the sub-leasing of certain of the Company’s leased office space to third parties and income from disposal of property and equipment.

(n) Financial guarantee service contract

Financial guarantee service contracts provides guarantee which protects the holder of a debt obligation against default. Pursuant to such guarantee, the Company makes payments if the obligor responsible for making payments fails to do so as scheduled.

The contract amounts reflect the extent of involvement the Company has in the guarantee transaction and also represent the Company’s maximum exposure to credit loss in its guarantee business.

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. Financial instruments representing credit risk are as follows:

	September 30,  2015		December 31,  2014
	(Unaudited)
Guarantee	$	14,071,781	$	21,794,663

A provision for possible loss to be absorbed by the Company for the financial guarantee it provides is recorded as an accrued liability when the guarantees are made and recorded as “Accrual for financial guarantee services” on the consolidated balance sheets. This liability represents probable losses and is increased or decreased by accruing a “Provision on financial guarantee services” against the income of commissions and fees on guarantee services reserve.

This is done throughout the life of the guarantee, as necessary when additional relevant information becomes available. The methodology used to estimate the liability for possible guarantee loss considers the guarantee contract amount and a variety of factors, which include, depending on the counterparty, latest financial position and performance of the borrowers, actual defaults, estimated future defaults, historical loss experience, estimated value of collaterals or guarantees the customers or third parties offered, and other economic conditions such as the economy trend of the area and the country. The estimates are based upon currently available information.

Based on the past experience and expected customer default status of financial guarantee services, the Company estimates the probable loss for immature financial guarantee services to be 50% and 1% of contract amount as of September 30, 2015 and December 31, 2014, and made a provision of $7,035,891 and $217,947 as of these two reporting dates, respectively for possible credit risk of its guarantees. In addition, the Company accrued specific provisions for repayment on behalf of guarantee customers who defaulted on their loans, in the amount of $6,818,226 and $5,328,181 as of September 30, 2015 and December 31, 2014, respectively. As of September 30, 2015, the management charged off specific provision for one customer in the amount of $267,696, considering remote collectability from the customer. The total accrual for financial guarantee services amounted to $13,854,117 and $5,546,128 as of September 30, 2015 and December 31, 2014, respectively. The Company reviews the provision on a quarterly basis.

(o) Non-interest expenses

Non-interest expenses primarily consist of salary and benefits for employees, traveling cost, entertainment expenses, depreciation of equipment, office rental expenses, professional service fee, office supplies, etc.

(p) Income tax

Current income tax expenses are provided for in accordance with the laws of the relevant taxing authorities. As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. The Company accounts for income taxes using the liability approach. Under this method, deferred income taxes are recognized for tax consequences in future years of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable for the differences that are expected to affect taxable income.

(q) Comprehensive income

Comprehensive income includes net income and foreign currency adjustments. Comprehensive income is reported in the statements of operations and comprehensive income.

Accumulated other comprehensive income, as presented on the balance sheets are the cumulative foreign currency translation adjustments.

(r) Share-based awards

Share-based awards granted to the Company's employees are measured at fair value on grant date and share-based compensation expense is recognized (i) immediately at the grant date if no vesting conditions are required, or (ii) using the accelerated attribution method, net of estimated forfeitures, over the requisite service period. The fair value of restricted shares is determined with reference to the fair value of the underlying shares.

At each date of measurement, the Company reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of the share-based awards granted by the Company, including but not limited to the fair value of the underlying shares, expected life, expected volatility and expected forfeiture rates. The Company is required to consider many factors and make certain assumptions during this assessment. If any of the assumptions used to determine the fair value of the share-based awards changes significantly, share-based compensation expense may differ materially in the future from that recorded in the current reporting period.

(s) Operating leases

The Company leases its principal office under a lease agreement that qualifies as an operating lease. The Company records the rental under the lease agreement in the operating expense when incurred.

(t) Commitments and contingencies

In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations and tax matters. In accordance with ASC No. 450 Sub topic 20, “Loss Contingencies”, the Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated.

(u) Recently issued accounting standards

In September 2015, the Financial Accounting Standards Board (“FASB”) issued updated guidance, which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Acquirers must recognize measurement-period adjustments during the period of resolution, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The updated guidance is effective for fiscal years beginning after December 15, 2015. Earlier adoption is permitted for any interim and annual financial statements that have not yet been issued. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In August 2015, the FASB issued an accounting standards update for a one-year deferral of the revenue recognition standard's effective date for all entities, which changed the effectiveness to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We are currently evaluating this standard and our existing revenue recognition policies to determine which contracts in the scope of the guidance will be affected by the new requirements and what impact they would have on our consolidated financial statements upon adoption. We have not yet determined which transition method we will utilize upon adoption on the effective date.

In August 2015, the FASB issued updated guidance concerning presentation and subsequent measurement of debt issuance costs relating to line of credit arrangements, which can be presented on the balance sheet as an asset to be subsequently amortized ratably over the term of the line of credit arrangement. The updated guidance is effective immediately. This updated guidance did not have a material impact on our financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. Under this ASU, an entity presents such costs on the balance sheet as a direct deduction from the related debt liability rather than as an asset. This new standard is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early adoption permitted. We do not plan to adopt this standard early and do not expect that it will have a material impact on our consolidated financial statements or disclosures upon adoption.

In February 2015, the FASB issued ASU 2015-02 "Consolidation: Amendments to the Consolidation Analysis" in order to clarify the basis for consolidation of certain legal entities. ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Specifically, ASU 2015-02 (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership, (iii) affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships, and (iv) provides a scope exception from consolidation guidance for reporting entities with interests in certain legal entities. ASU 2015-02 is effective for public business entities for fiscal years and interim periods beginning on or after December 15, 2015. Early adoption is permitted. The Company is currently assessing the impact of ASU 2015-02 on its consolidated financial position, results of operations and cash flows.

In January 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-01 about Income Statement-Extraordinary and Unusual Items (Subtopic 225-20). ASU 2015-01 addresses the elimination from U.S. GAAP the concept of extraordinary items. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. This amended guidance will prohibit separate disclosure of extraordinary items in the income statement. This amendment is effective for years, and interim periods within those years, beginning after December 15, 2015. Entities may apply the amendment prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the year of adoption. The Company intends to adopt the accounting standard during the first quarter of 2016, as required, with no material impact.

In June 2014, the FASB issued guidance that clarifies the accounting for share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. In this case, the performance target would be required to be treated as a performance condition, and should not be reflected in estimating the grant-date fair value of the award. The guidance also addresses when to recognize the related compensation cost. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In June 2014 Accounting Standards Update 2014-10 removed the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. This ASU is effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Early adoption is permitted. The Company has elected to adopt this ASU effective with the December 31, 2014 annual report on Form 10-K and its adoption resulted in the removal of previously required development stage financial information.

In May 2014, the FASB issued guidance on the accounting for revenue from contracts with customers that will supersede most existing revenue recognition guidance, including industry-specific guidance. The core principle requires an entity to recognize revenue to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This guidance is effective for interim and annual reporting periods beginning on or after December 15, 2016. Entities can choose to apply the guidance using either the full retrospective approach or a modified retrospective approach. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

ASU 2014-15 – "Presentation of Financial Statements—Going Concern—Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15")." In August 2014, the FASB issued ASU 2014-15 requiring management to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. ASU 2014-15 is effective for annual periods, and interim periods within those annual periods, starting December 15, 2016; the Company's first quarter of fiscal 2018.

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Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Allowance for loan losses	$ 14,176,356	$ 24,490,721
Investment in direct financing lease	$ 255,934	$ 610,153
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	12,390,062	12,255,062
Common stock, shares outstanding	12,390,062	12,255,062
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Series B Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding

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Property and Equipment

9 Months Ended

Sep. 30, 2015

Property and Equipment [Abstract]

PROPERTY AND EQUIPMENT

12. PROPERTY AND EQUIPMENT

The Company’s property and equipment used to conduct day-to-day business are recorded at cost less accumulated depreciation. Depreciation expenses are calculated using straight-line method over the estimated useful life with 5% salvage value below:

Property and equipment consist of the following:

	Useful Life  (years)	September 30, 2015			December 31, 2014
		(Unaudited)
Furniture and fixtures	5	$	22,708		$	23,513
Vehicles	4		156,369			242,876
Electronic equipment	3		122,454			125,333
Leasehold improvement	3		174,239			180,413
Less: accumulated depreciation			(419,796	)		(429,981	)
Property and equipment, net		$	55,974		$	142,154

During the nine months ended September 30, 2015, the Company disposed of two vehicles with net book value of $4,073 (original cost of $81,459, accumulated depreciation of $77,386). The Company generated non-interest income of $14,585 from the disposal.

Depreciation expense totaled $27,107 and $27,841 for the three months ended September 30, 2015 and 2014, respectively. Depreciation expense totaled$81,245 and $83,731 for the nine months ended September 30, 2015 and 2014, respectively.

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Commitments and Contingencies (Details Textual)	9 Months Ended
	Sep. 30, 2015 USD ($) Lawsuits	Dec. 31, 2014 USD ($)
Commitments and Contingencies (Textual)
Extended lease term	5 years
Average guarantee expiration terms	The average guarantee expiration terms ranged within 6 to 12 months
Number of lawsuit | Lawsuits	78
Loan guarantees amont	$ 14,071,781	$ 21,794,663
Loan paid behalf of loan guarantee customers	$ 5,400,000
Lease commitments description	Lease agreement of its principal office for a 5-year period from October 1, 2013 to September 30, 2018. Additionally, the Company leased its new office under a lease agreement from June 1, 2015 to May 31, 2021.
Guarantee Business [Member]
Commitments and Contingencies (Textual)
Number of lawsuit | Lawsuits	14
Loan Business [Member]
Commitments and Contingencies (Textual)
Number of lawsuit | Lawsuits	64
Minimum [Member]
Commitments and Contingencies (Textual)
Average percentage of guarantee amount as security deposit	10.00%
Maximum [Member]
Commitments and Contingencies (Textual)
Average percentage of guarantee amount as security deposit	20.00%
Adjudicated By Court [Member]
Commitments and Contingencies (Textual)
Aggregate claim paid	$ 11,100,000
Not Adjudicated By Court [Member]
Commitments and Contingencies (Textual)
Aggregate claim paid	$ 27,600,000

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Related Party Transactions and Balances (Details Textual) ¥ in Millions	1 Months Ended		9 Months Ended
	Jul. 02, 2014 USD ($)	Jul. 02, 2014 CNY (¥)	Sep. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Related Party Transactions and Balances (Textual)
Financial guarantee service repaid			$ 411,729	$ 162,707
Accrued provision			267,696
Amount transferr to personal account	$ 1,098,197	¥ 7
Financial Guarantee [Member]
Related Party Transactions and Balances (Textual)
Financial guarantee service loan service				$ 816,193
Financial guarantee service repaid			411,729
Accrued provision			$ 205,865

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 22, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	China Commercial Credit Inc
Entity Central Index Key	0001556266
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015
Entity Common Stock, Shares Outstanding		12,390,062

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Intangible Asset

9 Months Ended

Sep. 30, 2015

Intangible Asset [Abstract]

INTANGIBLE ASSET

13. INTANGIBLE ASSET

Intangible asset represents the software used for P2P platform, the useful life is estimated at 5 years.

	September 30, 2015  (Unaudited)		December 31, 2014
Software	$	5,694	$	14,530

Amortization expense totaled $1,205 and $0 for the three months ended September 30, 2015 and 2014, respectively. Amortization expense totaled$8,596 and $0 for the nine months ended September 30, 2015 and 2014, respectively.

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Other Current Liabilities (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Other Current Liabilities [Abstract]
Accrued payroll	$ 36,070	$ 84,791
Accrued rental fee	94,987
Other tax payable	7,332	$ 99,335
Other payable	21,722	11,877
Other current liabilities total	$ 160,111	$ 196,003

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Related Party Transactions and Balances (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Chunjia Textile [Member]
Related Party Transaction [Line Items]
Amount due from related party	$ 411,729	$ 162,707
Huichun Qin [Member]
Related Party Transaction [Line Items]
Amount due from related party	$ 1,098,197	$ 1,147,088

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Consolidated Statements of Operation and Comprehensive Loss (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest income
Interests and fees on loans and direct financing lease	$ 156,498	$ 1,457,902	$ 2,345,493	$ 5,987,935
Interests on deposits with banks	7,054	7,843	15,378	59,386
Total interest and fees income	163,552	1,465,745	2,360,871	6,047,321
Interest expense
Interest expense on short-term bank loans	(96,880)	(243,158)	(422,710)	(736,283)
Net interest income	66,672	1,222,587	1,938,161	5,311,038
Provision for loan losses	(29,210,186)	$ (5,817,156)	(30,762,076)	$ (21,164,733)
(Under)/over provision for direct financing lease losses	(163,922)		343,612
Net interest loss after provision for loan losses and financing lease losses	(29,307,436)	$ (4,594,569)	(28,480,303)	$ (15,853,695)
Commissions and fees on financial guarantee services	24,565	87,774	120,623	476,134
Provision on financial guarantee services	(7,322,936)	(138,457)	(9,035,700)	(3,775,816)
Commission and fees loss on guarantee services, net	(7,298,371)	(50,683)	(8,915,077)	(3,299,682)
Net Revenue	$ (36,605,807)	(4,645,252)	$ (37,395,380)	(19,153,377)
Non-interest income
Government incentive		(81)		81,327
Other non-interest income	$ 19,439	26,276	$ 34,024	195,605
Total non-interest income	19,439	26,195	34,024	276,932
Non-interest expense
Salaries and employee surcharge	(131,778)	(206,523)	(654,729)	(614,926)
Rental expenses	(83,501)	(68,078)	(223,786)	(199,060)
Business taxes and surcharge	(12,008)	(69,743)	(94,119)	(228,131)
Other operating expenses	(348,094)	(1,190,762)	(1,692,323)	(2,323,256)
Total non-interest expense	(575,381)	$ (1,535,106)	(2,664,957)	$ (3,365,373)
Foreign exchange income/(loss)	1,194		(8,550)
Loss Before Taxes	(37,160,555)	$ (6,154,163)	(40,034,863)	$ (22,241,818)
Income tax benefit/(expense )	58,609	113	(594,650)	(10,979)
Net Loss	(37,101,946)	(6,154,050)	(40,629,513)	(22,252,797)
Other comprehensive income
Foreign currency translation adjustment	(1,352,337)	33,715	(973,282)	(637,053)
Comprehensive Loss	$ (38,454,283)	$ (6,120,335)	$ (41,602,795)	$ (22,889,850)
Loss per Share- Basic and Diluted	$ (2.994)	$ (0.503)	$ (3.295)	$ (1.956)
Weighted Average Shares Outstanding-Basic and Diluted	12,390,062	12,246,812	12,330,721	11,377,427

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Allowance for Loan Losses

9 Months Ended

Sep. 30, 2015

Allowance for Loan Losses [Abstract]

ALLOWANCE FOR LOAN LOSSES

7. ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss history, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available.

The allowance is calculated at portfolio-level since our loans portfolio is typically of smaller balance homogenous loans and is collectively evaluated for impairment.

For the purpose of calculating portfolio-level reserves, we have grouped our loans into two portfolio segments: Corporate and Personal. The allowance consists of the combination of a quantitative assessment component based on statistical models, a retrospective evaluation of actual loss information to loss forecasts, value of collaterals and could include a qualitative component based on management judgment.

In estimating the probable loss of the loan portfolio, the Company also considers qualitative factors such as current economic conditions and/or events in specific industries and geographical areas, including unemployment levels, trends in real estate values, peer comparisons, and other pertinent factors such as regulatory guidance. Finally, as appropriate, the Company also considers individual borrower circumstances and the condition and fair value of the loan collateral, if any.

In addition, the Company also calculates the provision amount in accordance with PRC regulation “The Guidance for Loan Losses” (“The Provision Guidance”) issued by PBOC and is applied to all financial institutes as below:

1. General Reserve - is based on total loan receivable balance and to be used to cover unidentified probable loan loss. The General Reserve is required to be no less than 1% of total loan receivable balance.

2. Specific Reserve - is based on the level of loss of each loan after categorizing the loan according to their risk. According to the so-called “Five-Tier Principle” set forth in the Provision Guidance, the loans are categorized as “pass”, “special-mention”, “substandard”, “doubtful” or “loss”. Normally, the provision rate is 2% for “special-mention”, 25% for “substandard”, 50% for “doubtful” and 100% for “loss”.

3. Special Reserve - is fund set aside covering losses due to risks related to a particular country, region, industry or type of loans. The reserve rate could be decided based on management estimate of loan collectability.

To the extent the general loan loss reserve rate of 1% as required by PBOC differs from management’s estimates, the management elects to use the higher rate. As of September 30, 2015, the Company utilized Specific Reserve in estimating the loan loss as it is higher than the amount calculated based on the General Reserve. Additionally, as of September 30, 2015, the Company charged off loan balances against the allowances in the amount of $41,134,020, as these loans are deemed as uncollectible. Management assessed that these customers had neither ability nor intension to return the balances.

While management uses the best information available to make loan loss allowance evaluations, adjustments to the allowance may be necessary based on changes in economic and other conditions or changes in accounting guidance.

The following tables present the activity in the allowance for loan losses and related recorded investment in loans receivable by classes of the loans individually and collectively evaluated for impairment as of and for the three months ended September 30, 2015 and 2014:

	Business Loans			Personal Loans			Total
	(Unaudited)			(Unaudited)			(Unaudited)
For the three months ended September 30, 2015
Beginning balance	$	16,598,522		$	9,597,444		$	26,195,966
Charge-offs		(26,341,752	)		(14,792,268	)		(41,134,020	)
Recoveries		-			-			-
Provisions		18,839,288			10,275,122			29,114,410
Ending balance		9,096,058			5,080,298			14,176,356
Ending balance: individually evaluated for impairment		-			-			-
Ending balance: collectively evaluated for impairment	$	9,096,058		$	5,080,298		$	14,176,356

	Business Loans		Personal Loans		Total
	(Unaudited)		(Unaudited)		(Unaudited)
For the three months ended September 30, 2014
Beginning balance	$	9,398,454	$	5,763,531	$	15,161,985
Charge-offs		-		-		-
Recoveries		-		-		-
Provisions		2,553,644		3,276,825		5,830,469
Ending balance		11,952,098		9,040,356		20,992,454
Ending balance: individually evaluated for impairment		-		-		-
Ending balance: collectively evaluated for impairment	$	11,952,098	$	9,040,356	$	20,992,454

The following tables present the activity in the allowance for loan losses and related recorded investment in loans receivable by classes of the loans individually and collectively evaluated for impairment as of and for the nine months ended September 30, 2015 and 2014:

	Business Loans			Personal Loans			Total
	(Unaudited)			(Unaudited)			(Unaudited)
For the nine months ended September 30, 2015
Beginning balance	$	14,836,650		$	9,654,071		$	24,490,721
Charge-offs		(26,341,752	)		(14,792,268	)		(41,134,020	)
Recoveries		-			(56,627	)		(56,627	)
Provisions		20,601,160			10,275,122			30,876,282
Ending balance		9,096,058			5,080,298			14,176,356
Ending balance: individually evaluated for impairment		-			-			-
Ending balance: collectively evaluated for impairment	$	9,096,058		$	5,080,298		$	14,176,356

	Business Loans			Personal Loans			Total
	(Unaudited)			(Unaudited)			(Unaudited)
For the nine months ended September 30, 2014
Beginning balance	$	1,049,836		$	326,112		$	1,375,948
Charge-offs		(784,537	)		(731,148	)		(1,515,685	)
Recoveries		-			-			-
Provisions		11,686,799			9,445,393			21,132,191
Ending balance		11,952,098			9,040,356			20,992,454
Ending balance: individually evaluated for impairment		-			-			-
Ending balance: collectively evaluated for impairment	$	11,952,098		$	9,040,356		$	20,992,454

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard, doubtful and loss within the Company's internal risk rating system as of September 30, 2015:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Business loans	$	-	$	6,832,396	$	-	$	16,275,463	$	821,679	$	23,929,538
Personal loans		476,130		-		47,142		10,042,742		47,142		10,613,156
	$	476,130	$	6,832,396	$	47,142	$	26,318,205	$	868,821	$	34,542,694

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard, doubtful and loss within the Company's internal risk rating system as of December 31, 2014:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
Business loans	$	20,628,050	$	3,465,669	$	2,115,197	$	22,561,860	$	3,484,029	$	52,254,805
Personal loans		11,501,790		699,642		386,430		16,998,048		238,414		29,824,324
	$	32,129,840	$	4,165,311	$	2,501,627	$	39,559,908	$	3,722,443	$	82,079,129

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Loans Receivable, Net

9 Months Ended

Sep. 30, 2015

Loans Receivable, Net [Abstract]

LOANS RECEIVABLE, NET

6. LOANS RECEIVABLE, NET

The interest rates on loan issued ranged between 9.6%~19.44% and 9.6% ~ 18% for the nine months ended September 30, 2015 and 2014, respectively.

6.1 Loans receivable consist of the following:

	September 30, 2015			December 31, 2014
	(Unaudited)
Business loans	$	23,929,538		$	52,254,805
Personal loans		10,613,156			29,824,324
Total Loans receivable		34,542,694			82,079,129
Allowance for loan losses
Collectively assessed		(14,176,356	)		(24,490,721	)
Individually assessed		-			-
Allowance for loan losses		(14,176,356	)		(24,490,721	)
Loans receivable, net	$	20,366,338		$	57,588,408

The Company originates loans to customers located primarily in Wujiang City, Jiangsu Province. This geographic concentration of credit exposes the Company to a higher degree of risk associated with this economic region.

All loans are short-term loans that the Company has made to either business or individual customers. As of September 30, 2015 and December 31, 2014, the Company had 29 and 101 business loan customers, and 40 and 60 personal loan customers, respectively. Most loans are either guaranteed by a third party whose financial strength is assessed by the Company to be sufficient or secured by collateral. Allowance on loan losses are estimated on quarterly basis in accordance with “The Guidance on Provision for Loan Losses” published by PBOC (Note 7).

For the three months ended September 30, 2015 and 2014, a provision of $29,210,186 and $5,817,156 were charged to the unaudited consolidated statement of operations, respectively. For the nine months ended September 30, 2015 and 2014, a provision of $30,762,076 and $21,164,733 were charged to the unaudited consolidated statement of operations, respectively.

Write-offs of $41,134,020 and $nil against allowances have occurred for the three months ended September 30, 2015 and 2014, respectively. Write-offs of $41,134,020 and $1,515,685 against allowances have occurred for the nine months ended September 30, 2014, respectively.

Interest on loans receivable is accrued and credited to income as earned. The Company determines a loan's past due status by the number of days that have elapsed since a borrower has failed to make a contractual loan payment. Accrual of interest is generally discontinued when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days.

The following table presents nonaccrual loans with aging over 90 days by classes of loan portfolio as of September 30, 2015 and December 31, 2014, respectively:

	September 30, 2015		December 31, 2014
	(Unaudited)
Business loans	$	10,733,020	$	16,331,544
Personal loans		6,888,966		16,975,317
	$	17,621,986	$	33,306,861

The following table represents the aging of loans as of September 30, 2015 by type of loan:

	1-89 Days Past Due		90 - 179 Days Past Due		180 - 365 Days Past Due		Over 1 year Past Due		Total Past Due		Current		Total Loans
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Business loans	$	11,706,842	$	1,571,388	$	3,378,485	$	5,783,147	$	22,439,862	$	1,489,676	$	23,929,538
Personal loans		1,854,238		2,738,930		727,553		3,422,483		8,743,204		1,869,952		10,613,156
	$	13,561,080	$	4,310,318	$	4,106,038	$	9,205,630	$	31,183,066	$	3,359,628	$	34,542,694

The following table represents the aging of loans as of December 31, 2014 by type of loan:

	1-89 Days Past Due		90 - 179 Days Past Due		180 - 365 Days Past Due		Over 1 year Past Due		Total Past Due		Current		Total Loans
Business loans	$	11,112,919	$	5,043,931	$	8,595,516	$	2,692,097	$	27,444,463	$	24,810,342	$	52,254,805
Personal loans		728,929		9,406,980		7,373,088		195,249		17,704,246		12,120,078		29,824,324
	$	11,841,848	$	14,450,911	$	15,968,604	$	2,887,346	$	45,148,709	$	36,930,420	$	82,079,129

6.2 Analysis of loans by credit quality indicator

The following table summarizes the Company’s loan portfolio by credit quality indicator as of September 30, 2015 and December 31, 2014, respectively:

Five Categories	September 30, 2015		%			December 31, 2014		%
	(Unaudited)		(Unaudited)
Pass	$	476,130		1.4	%		32,129,840		39.1	%
Special mention		6,832,396		19.8	%		4,165,311		5.1	%
Substandard		47,142		0.1	%		2,501,627		3.0	%
Doubtful		26,318,205		76.2	%		39,559,908		48.2	%
Loss		868,821		2.5	%		3,722,443		4.5	%
Total	$	34,542,694		100	%		82,079,129		100	%

6.3 Analysis of loans by collateral

The following table summarizes the Company’s loan portfolio by collateral as of September 30, 2015:

	September 30, 2015
	Business Loans		Personal Loans		Total
	(Unaudited)		(Unaudited)		(Unaudited)
Guarantee backed loans	$	20,001,068	$	9,440,900	$	29,441,968
Pledged assets backed loans		3,299,915		1,172,256		4,472,171
Collateral backed loans		628,555		-		628,555
	$	23,929,538	$	10,613,156	$	34,542,694

The following table summarizes the Company’s loan portfolio by collateral as of December 31, 2014:

	December 31, 2014
	Business Loans		Personal Loans		Total
Guarantee backed loans	$	47,613,818	$	27,445,541	$	75,059,359
Pledged assets backed loans		3,990,157		2,378,783		6,368,940
Collateral backed loans		650,830		-		650,830
	$	52,254,805	$	29,824,324	$	82,079,129

Collateral Backed Loans

A collateral backed loan is a loan in which the borrower puts up an asset under their ownership, possession or control, as collateral for the loan. An asset usually is land use rights, inventory, equipment or buildings. The loan is secured against the collateral and we do not take physical possession of the collateral at the time the loan is made. We will verify ownership of the collateral and then register the collateral with the appropriate government agencies to complete the secured transaction. In the event that the borrower defaults, we can then take possession of the collateral asset and sell it to recover the outstanding balance owed. If the sale proceed of the collateral asset is not sufficient to pay off the debt, we will file a lawsuit against the borrower and seek payment for the remaining balance.

Pledged Asset Backed Loans

Pledged loans are loans with pledged assets. The pledged assets are usually certificates of deposit. Lenders take physical possession of the pledged assets at the time the loan is made and do not need to register them with government agencies to secure the loan. If the borrower defaults, we can sell the assets to recover the outstanding balance owed.

Both collateral loans and pledged loans are considered secured loans. The amount of a loan that lenders provide depends on the value of the collateral pledged. Beginning 2011, the Company does not provide unsecured loans.

Guarantee Backed Loans

A guaranteed loan is a loan guaranteed by a third party who is usually a corporation or high net worth individual. As of September 30, 2015 and December 31, 2014, guaranteed loans make up 85.3% and 91.4% of our direct loan portfolio, respectively.

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Other Operating Expense

9 Months Ended

Sep. 30, 2015

Other Operating Expense [Abstract]

OTHER OPERATING EXPENSE

18. OTHER OPERATING EXPENSE

Other operating expense for the three and nine  months ended September 30, 2015 and 2014 consisted of:

	For the Three Months Ended  September 30,				For the Nine months Ended  September 30,
	2015		2014		2015		2014
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Depreciation	$	27,829	$	27,841	$	89,841	$	83,731
Travel expenses		1,807		387		7,669		28,718
Entertainment expenses		334		4,050		15,604		36,961
Promotion expenses		-		-		260		7,075
Legal and consulting expenses		164,573		966,356		998,094		1,460,969
Car expenses		12,897		18,666		40,813		61,983
Bank charges		10,613		28,074		33,011		167,020
Audit-related expense		25,329		-		255,779		133,142
Insurance expense		-		59,062		-		200,812
Other expenses		104,712		86,327		251,252		142,845
Total	$	348,094	$	1,190,763	$	1,692,323	$	2,323,256

The legal and consulting expenses mainly consisted of lawsuit fees for outstanding loans and financial guarantees and consulting fees for certain investment relationship service providers.

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Short-Term Bank Loans

9 Months Ended

Sep. 30, 2015

Short-Term Bank Loans [Abstract]

SHORT-TERM BANK LOANS

14. SHORT-TERM BANK LOANS

Bank Name	Interest rate	Term	September 30, 2015		December 31, 2014
			(Unaudited)
Agricultural Bank Of China	Fixed annual rate of 6.72%	From October 17, 2014 to October 16, 2015	$	2,199,944	$	8,948,910
Agricultural Bank Of China	Fixed annual rate of 6.72%	From October 31, 2014 to October 30, 2015		2,357,082		2,440,612
			$	4,557,026	$	11,389,522

During the nine month ended September 30, 2015, the Company prepaid bank borrowings of $6,641,289 and also repaid the remaining bank borrowings on time.

As of September 30, 2015 and December 31, 2014, the short-term bank loans have maturity terms within 1 year. These loans as of September 30, 2015 and December 31, 2014 were guaranteed by the Wujiang Luxiang shareholders.

Interest expense incurred on short-term loans for the three months ended September 30, 2015 and 2014 was $96,880 and $243,158, respectively. Interest expense incurred on short-term loans for the nine months ended September 30, 2015 and 2014 was $422,710 and $736,283,respectively.

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Capital Transaction (Details)				1 Months Ended	7 Months Ended	9 Months Ended	15 Months Ended
	Jun. 12, 2014 USD ($) shares	May. 13, 2014 $ / shares shares	Aug. 16, 2013 USD ($) $ / shares shares	Apr. 30, 2015 USD ($) $ / shares shares	May. 08, 2013 USD ($) Lawsuits shares	Sep. 30, 2015 shares	Apr. 01, 2013 USD ($) Lawsuits shares	Dec. 31, 2014 shares	Feb. 10, 2014 $ / shares shares
Class of Stock [Line Items]
Warrants issued to purchase common stock		252,500
Common stock, shares authorized						100,000,000		100,000,000
Common stock, shares issued						12,390,062		12,255,062
Common stock, shares outstanding						12,390,062		12,255,062
Warrants exercisable at a per share price | $ / shares		$ 4.80
Shares issued, Price per shares | $ / shares				$ 1.84
Stock issued during period for Services | $				$ 248,400
Beneficial conversion feature upon conversion | $			$ 752,500
Long Yi [Member]
Class of Stock [Line Items]
Stock issued during period for Services, Shares				60,000
Jingen Lin [Member]
Class of Stock [Line Items]
Stock issued during period for Services, Shares				75,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Number of investors | Lawsuits							11
Proceeds from private placement | $							$ 372,500
Preferred stock, shares authorized						1,000,000		1,000,000
Cost related to private placement | $							$ 93,125
Additional preferred shares issued							745
Series A stock and Series B Stock converted into common stock			348,462
Amortization of beneficial conversion feature relating to convertible Preferred Shares						The number of shares of Common Stock issued upon conversion of the Series A Stock was equal to the purchase price of the Series A Stock divided by a per share conversion price of 50% of the price of a share of Common Stock in the IPO.
Per share conversion price of Series A and Series B Stock | $ / shares			$ 3.25
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Number of investors | Lawsuits					44
Proceeds from private placement | $					$ 380,000
Preferred stock, shares authorized						5,000,000		5,000,000
Cost related to private placement | $					$ 95,000
Additional preferred shares issued					760
Series A stock and Series B Stock converted into common stock			348,462
Amortization of beneficial conversion feature relating to convertible Preferred Shares						The number of shares of Common Stock issued upon conversion of the Series B Stock was equal to the purchase price of the Series B Stock divided by a per share conversion price of 25% of the price of a share of Common Stock in the IPO.
Per share conversion price of Series A and Series B Stock | $ / shares			$ 1.63
Follow-on Public Offering [Member]
Class of Stock [Line Items]
Issuance of stock and warrants	252,000	1,750,000
Sale of public offering price per share | $ / shares		$ 3.99
Shares issued for public offering		1,750,000
Warrants issued to purchase common stock	126,250	875,000
Common stock, shares issued		99,614
Warrants exercisable at a per share price | $ / shares		$ 0.01
Cash received from private placement | $	$ 5,700,000
New issued common stock		1,650,386
Proceeds from public offering | $	$ 6,600,000
Maximum [Member]
Class of Stock [Line Items]
Common stock, shares authorized						100,000,000
Preferred stock, shares authorized						10,000,000
Additional Paid-in Capital [Member]
Class of Stock [Line Items]
Warrants exercisable at a per share price | $ / shares		$ 5.60
Warrant [Member] | Initial Public Offering [Member]
Class of Stock [Line Items]
IPO underwriters' and their affiliates' warrants									95,900
Warrants exercisable at a per share price | $ / shares									$ 6.50
Warrant [Member] | Follow-on Public Offering [Member]
Class of Stock [Line Items]
Warrants issued to purchase common stock		875,000
Warrants exercisable at a per share price | $ / shares		$ 0.01

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Other Assets

9 Months Ended

Sep. 30, 2015

Other Assets [Abstract]

OTHER ASSETS

10. OTHER ASSETS

Other assets as of September 30, 2015 and December 31, 2014 consisted of:

	September 30, 2015		December 31, 2014
	(Unaudited)
Prepaid bank service charges	$	3,229	$	33,767
Prepaid expenses to investor relationship service providers		-		265,591
Other prepaid expense		89,569		-
Deposit for court filing fees and legal fees		472,997		53,318
Other receivables		56,000		34,551
	$	621,795	$	387,227

Deposit for court filing fees and legal fees will be claimed from default customers.

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Loans Receivable, Net (Details 2) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
1-89 Days Past Due	$ 13,561,080	$ 11,841,848
90 - 179 Days Past Due	4,310,318	14,450,911
180 - 365 Days Past Due	4,106,038	15,968,604
Over 1 year Past Due	9,205,630	2,887,346
Total Past Due	31,183,066	45,148,709
Current	3,359,628	36,930,420
Total Loans	34,542,694	82,079,129
Business Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
1-89 Days Past Due	11,706,842	11,112,919
90 - 179 Days Past Due	1,571,388	5,043,931
180 - 365 Days Past Due	3,378,485	8,595,516
Over 1 year Past Due	5,783,147	2,692,097
Total Past Due	22,439,862	27,444,463
Current	1,489,676	24,810,342
Total Loans	23,929,538	52,254,805
Personal Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
1-89 Days Past Due	1,854,238	728,929
90 - 179 Days Past Due	2,738,930	9,406,980
180 - 365 Days Past Due	727,553	7,373,088
Over 1 year Past Due	3,422,483	195,249
Total Past Due	8,743,204	17,704,246
Current	1,869,952	12,120,078
Total Loans	$ 10,613,156	$ 29,824,324

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Loan Impairment

9 Months Ended

Sep. 30, 2015

Loan Impairment [Abstract]

LOAN IMPAIRMENT

8. LOAN IMPAIRMENT

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for corporate and personal loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent.

An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. Currently, estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral which approximates to the carrying value due to the short term nature of the loans.

Loans with modified terms are classified as troubled debt restructurings if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary below market rate reduction in interest rate or an extension of a loan’s stated maturity date. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. Loans classified as troubled debt restructurings are designated as impaired.

Even though the Company allows a one-time loan extension with a period up to the original loan period, which is usually twelve months. Such extension is not considered to be a troubled debt restructuring because the Company does not grant a concession to borrowers. The principal of the loan remains the same and the interest rate is fixed at the current interest rate at the time of extension. Therefore, there were no troubled debt restructurings during the three months and nine months ended September 30, 2015 and 2014, respectively.

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Guarantee Paid on Behalf of Guarantee Customers

9 Months Ended

Sep. 30, 2015

Guarantee Paid on Behalf of Guarantee Customers [Abstract]

GUARANTEE PAID ON BEHALF OF GUARANTEE CUSTOMERS

9. GUARANTEE PAID ON BEHALF OF GUARANTEE CUSTOMERS

	September 30, 2015		December 31, 2014
	(Unaudited)
Guarantee paid on behalf of guarantee service customers	$	13,667,880	$	10,740,059

Guarantee paid on behalf of guarantee service customers represents payment made by the Company to banks on behalf of thirty-one of its guarantee service customers who defaulted on their loan repayments to the banks. Management performs an evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss history, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. As of September 30, 2015 and December 31, 2014, the Company accrued allowance on the balance in “accrual for financial guarantee services” in the value of $13,854,117 and $5,546,128, respectively.

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Net Investment in Direct Financing Lease

9 Months Ended

Sep. 30, 2015

Net Investment in Direct Financing Lease [Abstract]

NET INVESTMENT IN DIRECT FINANCING LEASE

11. NET INVESTMENT IN DIRECT FINANCING LEASE

On September 25, 2014, PFL entered into a finance lease agreement for the leasing of manufacturing equipment with a total lease receivable of $2.73 million. The lease bears an interest rate of 10.36% per annum. .

On October 13, 2014, PFL entered into another finance lease agreement for the leasing of manufacturing equipment with a total lease receivable of $2.88 million. The lease bears an interest rate of 11.11% per annum.

Future minimum lease receipts under non-cancellable finance lease arrangements are as follows:

	September 30, 2015			December 31, 2014
	(Unaudited)
Within 1 year	$	3,650,335		$	2,549,619
2 years		923,976			1,981,777
3 years		76,998			797,267
Total minimum lease receipts		4,651,309			5,328,663
Less: amount representing interest		(507,848	)		(614,280	)
Present value of minimum lease receipts	$	4,143,461		$	4,714,383

Following is a summary of the components of the Company’s net investment in direct financing leases as of September 30, 2015 and December 31, 2014:

	September 30, 2015			December 31, 2014
	(Unaudited)
Total minimum lease payments to be received	$	4,651,309		$	5,328,663
Less: Amounts representing estimated executory costs		-			-
Minimum lease payments receivable		4,651,309			5,328,663
Less Allowance for uncollectible		(255,934	)		(610,153	)
Net minimum lease payments receivable		4,395,375			4,718,510
Estimated residual value of leased property		-			-
Less: Unearned income		(507,848	)		(614,280	)
Net investment in direct financing lease	$	3,887,527		$	4,104,230

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Allowance for Loan Losses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Allowance For Loan Losses [Line Items]
Beginning balance	$ 26,195,966	$ 15,161,985	$ 24,490,721	$ 1,375,948
Charge-offs	$ (41,134,020)		(41,134,020)	$ (1,515,685)
Recoveries			(56,627)
Provisions	$ 29,114,410	$ 5,830,469	30,876,282	$ 21,132,191
Ending balance	$ 14,176,356	$ 20,992,454	$ 14,176,356	$ 20,992,454
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	$ 14,176,356	$ 20,992,454	$ 14,176,356	$ 20,992,454
Business Loans [Member]
Allowance For Loan Losses [Line Items]
Beginning balance	16,598,522	$ 9,398,454	14,836,650	1,049,836
Charge-offs	$ (26,341,752)		$ (26,341,752)	$ (784,537)
Recoveries
Provisions	$ 18,839,288	$ 2,553,644	$ 20,601,160	$ 11,686,799
Ending balance	$ 9,096,058	$ 11,952,098	$ 9,096,058	$ 11,952,098
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	$ 9,096,058	$ 11,952,098	$ 9,096,058	$ 11,952,098
Personal Loans [Member]
Allowance For Loan Losses [Line Items]
Beginning balance	9,597,444	$ 5,763,531	9,654,071	326,112
Charge-offs	$ (14,792,268)		(14,792,268)	$ (731,148)
Recoveries			(56,627)
Provisions	$ 10,275,122	$ 3,276,825	10,275,122	$ 9,445,393
Ending balance	$ 5,080,298	$ 9,040,356	$ 5,080,298	$ 9,040,356
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment	$ 5,080,298	$ 9,040,356	$ 5,080,298	$ 9,040,356

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Statutory Reserve (Details)	9 Months Ended
	Sep. 30, 2015
Statutory Reserve [Textual]
Percentage of reserve to be allocated after tax by foreign-invested enterprise	10.00%
Percentage of reserve to be allocated after tax	15.00%
Percentage of reserve out of registered capital	50.00%

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Allowance for Loan Losses (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Allowance for Loan Losses (Textual)
Minimum percentage of loan in general reserve	1.00%		1.00%
Loan interest rate	1.00%		1.00%
Company charged off loan balances	$ (41,134,020)		$ (41,134,020)	$ (1,515,685)
Special mention [Member]
Allowance for Loan Losses (Textual)
Percentage of loan in specific reserve	2.00%		2.00%
Substandard [Member]
Allowance for Loan Losses (Textual)
Percentage of loan in specific reserve	25.00%		25.00%
Doubtful [Member]
Allowance for Loan Losses (Textual)
Percentage of loan in specific reserve	50.00%		50.00%
Loss [Member]
Allowance for Loan Losses (Textual)
Percentage of loan in specific reserve	100.00%		100.00%

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Loans Receivable, Net (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) Customer	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) Customer	Sep. 30, 2014 USD ($)	Dec. 31, 2014 Customer
Loans Receivable, Net (Textual)
Loan interest rate	1.00%		1.00%
Financing receivable recorded investment past due			Accrual of interest is generally discontinued when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days.
Gurantee loans percentage	85.30%		85.30%		91.40%
Provision for loan losses	$ 29,210,186	$ 5,817,156	$ 30,762,076	$ 21,164,733
Provision for loan losses expensed write offs	$ (41,134,020)		$ (41,134,020)	$ (1,515,685)
Minimum [Member]
Loans Receivable, Net (Textual)
Loan interest rate	9.60%	9.60%	9.60%	9.60%
Maximum [Member]
Loans Receivable, Net (Textual)
Loan interest rate	19.44%	18.00%	19.44%	18.00%
Business Loans [Member]
Loans Receivable, Net (Textual)
Number Of Customer | Customer	29		29		101
Personal Loans [Member]
Loans Receivable, Net (Textual)
Number Of Customer | Customer	40		40		60

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Commitments and Contingencies (Details)	Sep. 30, 2015 USD ($)
Commitments and Contingencies [Abstract]
Year ending September 30, 2016	$ 328,256
Year ending September 30, 2017	328,256
Year ending September 30, 2018	328,256
Year ending September 30, 2019	75,426
Year ending September 30, 2020 and thereafter	125,711
Total	$ 1,185,905

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2015

Summary of Significant Accounting Policies [Abstract]

Schedule of adjustments from translations recorded as a separate component of AOCI in shareholders equity - balance sheet components

	September 30,  2015		December 31,  2014
Balance sheet items, except for equity accounts		6.3638		6.1460

Schedule of foreign exchange contract statement of income and comprehensive income

	For the nine months ended September 30,
	2015	2014
Items in the statements of income and comprehensive income, and statements of cash flows	6.1735	6.1480

Schedule of financial guarantee service contract

	September 30,  2015		December 31,  2014
	(Unaudited)
Guarantee	$	14,071,781	$	21,794,663

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Summary of Significant Accounting Policies (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Summary of Significant Accounting Policies [Abstract]
Balance sheet items, except for equity accounts	$ 6.3638	$ 6.1460

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Unearned Income

9 Months Ended

Sep. 30, 2015

Unearned Income [Abstract]

UNEARNED INCOME

16. UNEARNED INCOME

The Company receives guarantee commissions in full at the inception and records unearned income before amortizing it throughout the guarantee service life. Unearned income from guarantee services was $9,891 and $109,439 as of September 30, 2015 and December 31, 2014, respectively.

The Company receives financing leasing service commissions at the inception and records unearned income before amortizing it throughout the guarantee service life. Unearned income from financing leasing services was $72,677 and $73,218 as of September 30, 2015 and December 31, 2014, respectively.

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Capital Transaction

9 Months Ended

Sep. 30, 2015

Capital Transaction [Abstract]

CAPITAL TRANSACTION

21. CAPITAL TRANSACTION

Secondary Public Offering

On May 13, 2014, the Company closed its second public offering (“Follow-on Offering”) of 1,750,000 shares of Common Stock and 1,750,000 warrants to purchase an additional 875,000 shares of Common Stock. The public offering price of the shares was $3.99 per share and the offering pricing for the warrants was $0.01 per warrant. 1,650,386 shares of Common Stock were newly issued by the Company and 99,614 shares of Common Stock were sold by certain selling stockholders. On June 12, 2014, the representative in the Follow-on Offering exercised its over-allotment option to purchase 252,000 warrants to purchase 126,250 shares of Common Stock. The total gross proceeds in the Follow-on Offering and the over-allotment were $6.6 million. After deducting underwriting discounts and commissions and offering expenses payable by the Company and the proceeds to the selling stockholders, the aggregate net proceeds received by the Company totaled approximately $5.7 million.

Common Stock

The Company is authorized to issue up to 100,000,000 shares of Common Stock.

On April 30 2015, the Company issued 60,000 unregistered shares to Long Yi, the Company’s CFO, and 75,000 unregistered shares to Jingen Lin, the Company’s CEO, at a market value of $1.84 per share, in the total amount of $248,400, for their services provided .

As of September 30, 2015 and December 31, 2014, there were 12,390,062 and 12,255,062 shares of Common Stock issued and outstanding, respectively.

Warrants

The IPO underwriters’ and their affiliates’ received warrants to purchase an aggregate of 95,900 shares of Common Stock, which are exercisable at any time, and from time to time, in whole or in part, during the three-year period from February 10, 2014. The warrants are initially exercisable at a per share price of $6.50.

Warrants to purchase an aggregate of 875,000 shares of Common Stock were issued in the Follow-on Offering on May 13, 2014. The issuance price was $0.01 per warrant, and the warrants are exercisable at any time, and from time to time, in whole or in part, during the three-year period from May 13, 2014. The warrants are initially exercisable at a per share price of $5.60 and are recorded as additional paid-in capital.

Warrants to purchase 252,500 shares of Common Stock were issued to the underwriters in the Follow-on Offering. The warrants have a cashless exercise provision and are exercisable at any time, and from time to time, in whole or in part, during the three-year period from May 13, 2014. The warrants are initially exercisable at a per share price of $4.80 and are recorded as additional paid-in capital.

Preferred Stock

The Company is authorized to issue up to 10,000,000 shares of preferred stock, of which 1,000,000 shares are designated as Series A Convertible Preferred Stock (the “Series A Stock”) and 5,000,000 shares are designated as Series B Convertible Preferred Stock (the “Series B Stock”).

The Series A Stock ranked (i) prior to the Common Stock and to all other classes and series of equity securities of the Company which by their terms do not rank senior to the Series A Stock, and (ii) junior to any class or series of equity securities which by its terms ranked senior to the Series A Stock. The Series A Stocks was subordinate to and ranked junior to all indebtedness of the Company. Each share of the Series A Stock was on the day on which the Company consummated its IPO, automatically and without any action on the part of the holder thereof converted into issued and outstanding shares of Common Stock beneficially owned by a consultant who received the shares on December 19, 2011. The number of shares of Common Stock issued upon conversion of the Series A Stock was equal to the purchase price of the Series A Stock divided by a per share conversion price of 50% of the price of a share of Common Stock in the IPO. No new shares were issued by the Company at the conversion. In addition, the holders were not permitted to convert their preferred stock prior to consummation of the IPO.

The Series B Preferred Stock ranked (i) prior to the Common Stock and to all other classes and series of equity securities of the Company which by their terms do not rank senior to the Series B Preferred Stock and (ii) junior to any class or series of equity securities which by its terms ranked senior to the Series B Preferred Stock. The Series B Stock was subordinate to and ranked junior to all indebtedness of the Company. Each share of the Series B Stock was on the day on which the Company consummated its IPO, automatically and without any action on the part of the holder thereof converted into issued and outstanding shares of Common Stock beneficially owned by a consultant who received the shares on December 19, 2011. The number of shares of Common Stock issued upon conversion of the Series B Stock was equal to the purchase price of the Series B Stock divided by a per share conversion price of 25% of the price of a share of Common Stock in the IPO. No new shares were issued by the Company at the conversion. In addition, the holders were not permitted to convert their preferred stock prior to consummation of the IPO.

Between January 1, 2012 and April 1, 2013, the Company issued a total of 745 shares of Series A Stock to an aggregate of 11 investors pursuant to certain subscription agreements. We received gross proceeds of $372,500 and incurred costs associated with this private placement of $93,125.

Between October 12, 2012 and May 8, 2013, the Company issued a total of 760 shares of Series B Stock to an aggregate of 44 investors pursuant to certain subscription agreements. We received gross proceeds of $380,000 and incurred costs associated with this private placement of $95,000.

On August 16, 2013 when the Company closed its IPO, all outstanding shares of the Series A Stock and Series B Stock were converted into an aggregate of 348,462 shares of already issued and outstanding Common Stock beneficially owned by a consultant who received our shares on December 19, 2011, automatically and without any action on the part of the holder thereof. The per share conversion price of Series A Stock and Series B Stock was equal to $3.25 and $1.63, respectively.

The discount on the Series A and B Stock was accounted for as a beneficial conversion feature upon conversion. The total amount of discount was $752,500, which was accounted for as a reduction to retained earnings and an offsetting increase to additional paid in capital in the Company's financial statements.

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies [Abstract]

Summary of contractual obligations in future periods

	Rental payments (Unaudited)
Year ending September 30, 2016	$	328,256
Year ending September 30, 2017		328,256
Year ending September 30, 2018		328,256
Year ending September 30, 2019		75,426
Year ending September 30, 2020 and thereafter		125,711
Total	$	1,185,905

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Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2015

Property and Equipment [Abstract]

Summary of Property Plant and Equipment

	Useful Life  (years)	September 30, 2015			December 31, 2014
		(Unaudited)
Furniture and fixtures	5	$	22,708		$	23,513
Vehicles	4		156,369			242,876
Electronic equipment	3		122,454			125,333
Leasehold improvement	3		174,239			180,413
Less: accumulated depreciation			(419,796	)		(429,981	)
Property and equipment, net		$	55,974		$	142,154

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Consolidated Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from Operating Activities:
Net loss	$ (40,629,513)	$ (22,252,797)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	89,841	83,732
Provision for loan losses	30,762,076	$ 21,164,733
Provision for direct financing lease losses	(343,612)
Provision on financial guarantee services	9,035,700	$ 3,775,816
Deferred tax expense	587,141	$ 10,979
Income from disposal of property and equipment	(14,585)
Restricted shares issued to executive officers	248,400
Changes in operating assets and liabilities:
Interest receivable	473,968	$ (281,277)
Prepaid taxes	(16,845)	(942,373)
Other assets	(258,035)	549,426
Unearned income from financial guarantee services and finance lease service	(96,730)	(10,363)
Other current liabilities	(30,910)	(159,050)
Net Cash (Used in)/Provided by Operating Activities	(193,104)	1,938,826
Cash Flows from Investing Activities:
Originated loans disbursement to third parties	(17,934,721)	(36,786,516)
Loans collection from third parties	23,623,776	37,935,727
Payment of loans on behalf of guarantee customers	(5,639,237)	$ (11,439,270)
Payment of loans on behalf of a related party	(263,687)
Collection from guarantees for loan paid on behalf of guarantees	$ 749,980	$ 1,905,564
Payment for principal of finance lease		$ (2,732,596)
Collection of principal of finance lease, in installments	$ 422,199
Deposit released from banks for financial guarantee services	1,870,298	$ 9,955,276
Deposit paid to banks for financial guarantee services	(303,634)	(5,653,718)
Purchases of property and equipment and intangible asset	(1,461)	$ (2,977)
Disposal of property and equipment	18,635
Net Cash Provided by/(Used in) Investing Activities	$ 2,542,148	$ (6,818,510)
Cash Flows From Financing Activities:
Proceeds from second public offering, net off offering costs		6,601,544
Proceeds from exercise of underwriter over-allotment, net off offering costs		25,000
Common Stock issuance cost		(872,785)
Repayment of short-term bank borrowings	$ (6,641,289)	(4,879,636)
Capital contribution from a shareholder		11,571
Cash disbursed to a non- controlling shareholder		(2,289,402)
Cash repaid from a non- controlling shareholder		1,135,940
Net Cash Used in Financing Activities	$ (6,641,289)	(267,768)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(35,845)	(125,631)
Net Decrease In Cash and Cash Equivalents	(4,328,090)	(5,273,083)
Cash and Cash Equivalents at Beginning of Period	4,991,973	9,405,865
Cash and Cash Equivalents at End of Period	663,883	4,132,782
Supplemental Cash Flow Information
Cash paid for interest expense	422,710	658,322
Cash paid for income tax	$ 3,563	$ 930,437

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Income Taxes and Prepaid Taxes (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Taxes and Prepaid Taxes [Abstract]
Current income tax expense			$ 7,508
Deferred income tax expense			587,142	$ 10,979
Total provision for income taxes	$ (58,609)	$ (113)	$ 594,650	$ 10,979

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Restricted Cash

9 Months Ended

Sep. 30, 2015

Restricted Cash [Abstract]

RESTRICTED CASH

5. RESTRICTED CASH

Restricted cash represents cash pledged with banks as guarantor deposit for the Company's guarantee service customers, amounting to $0.4 million and $2.0 million as of September 30, 2015 and December 31, 2014, respectively. The banks providing loans to the Company’s guarantee service customers generally require the Company, as the guarantor of the loans, to pledge a cash deposit usually in the range of 10% to 30% of the guaranteed amount. The deposits are released after the guaranteed bank loans are paid off and the Company’s guarantee obligation expires which is usually within 12 months.

At the same time, the Company requires the guarantee service customers to make a deposit to the Company of the same amount as the deposit the Company pledged to the banks for their loans. The Company recorded the deposit received as “deposits payable” on the unaudited consolidated balance sheet. The deposit is returned to the customer after the customer repays the bank loan and the Company’s guarantee obligation expires.

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Loans Receivable, Net (Details) - USD ($)	Sep. 30, 2015	Jul. 01, 2015	Jan. 01, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable	$ 34,542,694			$ 82,079,129
Allowance for loan losses
Collectively assessed	$ (14,176,356)			$ (24,490,721)	$ (20,992,454)
Individually assessed
Allowance for loan losses	$ (14,176,356)	$ (26,195,966)	$ (24,490,721)	$ (24,490,721)	$ (20,992,454)	$ (15,161,985)	$ (1,375,948)
Loans receivable, net	20,366,338			57,588,408
Business Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable	23,929,538			52,254,805
Personal Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans receivable	$ 10,613,156			$ 29,824,324

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Employee Retirement Benefit (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Employee Retirement Benefit (Textual)
Employee retirement benefit contributions	$ 15,109	$ 18,028	$ 52,743	$ 60,964

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Other Assets (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Other Assets [Abstract]
Prepaid bank service charges	$ 3,229	$ 33,767
Prepaid expenses to investor relationship service providers		$ 265,591
Other prepaid expense	$ 89,569
Deposit for court filing fees and legal fees	472,997	$ 53,318
Other receivables	56,000	34,551
Other Assets	$ 621,795	$ 387,227

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Statutory Reserve

9 Months Ended

Sep. 30, 2015

Statutory Reserve [Abstract]

STATUTORY RESERVE

22. STATUTORY RESERVE

In accordance with the PRC Regulations on Enterprises with Foreign Investment and the articles of association of the Company’s PRC subsidiaries, a foreign-invested enterprise established in the PRC is required to provide statutory reserve, which is appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A foreign-invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. The Company allocates 15% of its annual after-tax profit to the statutory reserve. The statutory reserve can only be used for specific purposes and are not distributable as cash dividends. WFOE was established as a foreign-invested enterprise and, therefore, is subject to the above mandated restrictions on distributable profits. For the nine months ended September 30, 2015, the Company did not accrue the statutory reserve due to net loss.

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Property and Equipment (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) vehicle	Sep. 30, 2014 USD ($)
Property and Equipment (Textual)
Percentage of salvage value of property and equipment	5.00%		5.00%
Depreciation expense	$ 27,107	$ 27,841	$ 81,245	$ 83,731
Other non-interest income	$ 19,439	$ 26,276	$ 34,024	$ 195,605
Number of vehicles | vehicle			2
Vehicles [Member]
Property and Equipment (Textual)
Depreciation expense			$ 4,073
Other non-interest income			81,459
Disposal of accumulated depreciation			$ 77,386

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Guarantee Paid on Behalf of Guarantee Customers (Tables)

9 Months Ended

Sep. 30, 2015

Guarantee Paid on Behalf of Guarantee Customers [Abstract]

Schedule of guarantee paid on behalf of guarantee service customers

	September 30, 2015		December 31, 2014
	(Unaudited)
Guarantee paid on behalf of guarantee service customers	$	13,667,880	$	10,740,059

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Deposits Payable

9 Months Ended

Sep. 30, 2015

Deposits Payable [Abstract]

DEPOSITS PAYABLE

15. DEPOSITS PAYABLE

Deposits payable are security deposits required from customers in order to obtain loans and guarantees from the Company. The deposits are refundable to the customers when the customers fulfill their obligations under loan and guarantee contracts.