BEIJING, May 15, 2018 /PRNewswire/ -- China Internet
Nationwide Financial Services Inc. (NASDAQ: CIFS) ("CIFS" or the
"Company"), a leading financial advisory services company, today
announced its financial results for the three and twelve months
ended December 31, 2017.
Fourth Quarter of 2017 Financial Highlights (all comparisons to
prior year unless noted)
- Net revenue increased by 147.8% to $12.01 million for the fourth quarter of 2017,
driven by an increase of 157.2% to $1,165
million in total amount of financing advised.
- Net income increased by 145.7% to $10.79
million for the fourth quarter of 2017, driven by increase
in net revenue and partially offset by the increase in operating
expenses.
- Basic and diluted earnings per share was $0.49 for the fourth quarter of 2017, compared to
$0.22 for the same period of the
prior year.
Full Year 2017 Financial Highlights
- Net revenue increased by 58.7% to $25.12
million for 2017, as the total amount of financing advised
increased by 65.1% to $2,429
million.
- Net income increased by 73.1% to $24.05
million for 2017, driven by increase in net revenue and
partially offset by the increase in operating expenses.
- Basic and diluted earnings share was $1.15 for 2017, compared to $0.69 for the prior year.
Mr. Jianxin Lin, Chairman and
Chief Executive Officer of CIFS, commented, "We are very pleased to
close the year on a high note. With both net revenue and net profit
more than doubled, our growth moment remained strong in the fourth
quarter of 2017."
Mr. Lin continued, "We remain focused on executing our long-term
growth plan and start making good progress in our FinTech
Initiative which we launched in November
2017. Our newly launched supply chain financing services and
the newly acquired big data platform, Anytrust, are also starting
to ramp quickly. Looking ahead, we believe that we have the right
strategy and the right execution plan to take the Company to the
next level and anticipate continuing growth momentum for our
businesses in the near future."
Fourth Quarter of 2017 Financial Results
|
For the Three
Months Ended December 31,
|
($ thousands,
except per share data)
|
2017
|
|
2016
|
|
%
Change
|
Revenue
|
$
12,009
|
|
$
4,846
|
|
147.8%
|
Gross
profit
|
11,595
|
|
4,739
|
|
144.7%
|
Gross
margin
|
96.6%
|
|
97.8%
|
|
-1.2 pp
|
Operating
income
|
9,439
|
|
3,663
|
|
157.7%
|
Operating
margin
|
78.6%
|
|
75.6%
|
|
-3.0 pp
|
Net Income
|
10,795
|
|
4,394
|
|
145.7%
|
EPS - basic &
diluted
|
0.49
|
|
0.22
|
|
122.7%
|
Revenue
For the fourth quarter of 2017, net revenue increased by
$7.16 million, or 147.8%, to
$12.01 million from $4.85 million for the same period of the prior
year. The increase in net revenue was primarily due to the increase
in total amount of financing advised which increased by
$712 million, or 157.2%, to
$1,165 million for the fourth quarter
of 2017 from $453 million for the
same period of the prior year. The increases in net revenue and
amount of financing advised were across all the board.
|
For the Three
Months Ended December 31,
|
|
2017
|
|
2016
|
|
No. of
Clients
Advised
|
|
Amount of
Financing
Advised
($ Millions)
|
|
Revenue
($ Millions)
|
|
No. of
Clients
Advised
|
|
Amount of
Financing
Advised
($ Millions)
|
|
Revenue
($ Millions)
|
Commercial payment
advisory services
|
14
|
|
$
649
|
|
$
7.51
|
|
6
|
|
$
272
|
|
$
2.86
|
International
corporate financing advisory services
|
2
|
|
350
|
|
1.31
|
|
1
|
|
100
|
|
0.38
|
Intermediary bank
loan advisory services
|
6
|
|
166
|
|
3.13
|
|
1
|
|
81
|
|
1.61
|
Technical
services
|
-
|
|
-
|
|
0.06
|
|
-
|
|
-
|
|
-
|
Total
|
22
|
|
$
1,165
|
|
$
12.01
|
|
8
|
|
$
453
|
|
$
4.85
|
Revenue from commercial payment advisory services increased by
$4.65 million, or 162.9%, to
$7.51 million for the fourth quarter
of 2017 from $2.86 million for the
same period of the prior year. The Company assisted 14 SMEs in
obtain acceptance bills from banks with total amount of financing
advised of $649 million during the
fourth quarter of 2017, compared to 6 SMEs and $272 million, respectively, during the same
period of the prior year.
Revenue from international corporate financing advisory services
increased by $0.93 million, or
242.0%, to $1.31 million for the
fourth quarter of 2017 from $0.38
million for the same period of the prior year. The Company
provided international corporate financing advisory services to 2
SMEs with total amount of financing advised of $350 million during the fourth quarter of 2017,
compared to 1 SMEs and $100 million,
respectively, during the same period of the prior year.
Revenue from intermediary loan advisory services increased by
$1.52 million, or 94.6%, to
$3.13 million for the fourth quarter
of 2017 from $1.61 million for the
same period of the prior year. The Company provided intermediary
loan advisory services to 6 SMEs with total amount of financing
advised of $166 million during the
fourth quarter of 2017, compared to 1 SMEs and $81 million, respectively, during the same period
of the prior year.
Revenue from technical service, related to our newly acquired
subsidiary, Anytrust, was $0.06
million for the fourth quarter of 2017, compared to $nil for
the same period of the prior year.
Revenue from commercial payment advisory services, international
corporate financing advisory services, intermediary bank loan
advisory services and technical service accounted for 62.5%, 10.9%,
26.0%, and 0.5% of total revenue, respectively, for the fourth
quarter of 2017, compared to 58.9%, 7.9%, 33.2%, and nil,
respectively, for the same period of the prior year.
Cost of Revenue
Total cost of revenue, which is mainly comprised of
revenue-generating staffing costs, increased by $0.31 million, or 286.1%, to $0.41 million for the fourth quarter of 2017 from
$0.11 million for the same period of
the prior year.
Gross Profit and Gross Margin
Gross profit increased by $6.86
million, or 144.7%, to $11.60
million for the fourth quarter of 2017 from $4.74 million for the same period of the prior
year. The increase in gross profit was in line with the growth of
net revenue. Gross margin was 96.6% for the fourth quarter of 2017,
compared to 97.8% for the same period of the prior year.
Operating Expenses
Selling and marketing expenses increased by $0.07 million, or 30.6%, to $0.28 million for the fourth quarter of 2017 from
$0.22 million for the same period of
the prior year. The increase in selling and marketing expenses was
primarily related to an increase in marketing and advertising
efforts.
General and administrative expenses increased by $1.07 million, or 192.3%, to $1.63 million for the fourth quarter of 2017 from
$0.56 million for the same period of
the prior year. The increase in general and administrative expenses
was primarily due to increase in expenses related to office lease,
professional fees, travelling and entertainment expenses as well as
expenses related to our initial public offering.
Research and development expenses, mainly consisting of staffing
costs accrued in the process of researching and developing
financial data software by our newly acquired subsidiary, Anytrust,
was $0.09 million for the fourth
quarter of 2017, compared to $nil for the same period of the prior
year.
Donation expenses decreased by $0.15
million, or 50.8%, to $0.15
million for the fourth quarter of 2017 from $0.30 million for 2016.
As a result, total operating expenses increased by $1.08 million, or 100.4%, to $2.16 million for the fourth quarter of 2017 from
$1.08 million for the same period of
the prior year. As a percentage of net revenue, total operating
expenses was 18.0% for the fourth quarter of 2017, compared to
22.2% for the same period of the prior year.
Operating Income and Operating Margin
Operating income increased by $5.78
million, or 157.7%, to $9.44
million for the fourth quarter of 2017 from $3.66 million for the same period of the prior
year. Operating margin 78.6% for the fourth quarter of 2017,
compared to 75.6% for the same period of the prior year.
Other Income (Expenses)
Total net other income, which is primarily comprised of interest
income from loans to third parties as well as interest income on
bank deposits and other expenses, increased by $0.74 million, or 103.7%, to $1.45 million for the fourth quarter of 2017 from
$0.71 million for the same period of
the prior year. Interest income on loans to third parties were
$1.40 million for the fourth quarter
of 2017, compared to $0.71 million
for the same period of the prior year. The increase in interest
income on loans to third parties was in line with increase of loan
balances to third parties, which was $41.69
million and $19.24 million as
of December 31, 2017 and 2016,
respectively.
Income Tax Expenses
Income tax expense was $94,192 for
the fourth quarter of 2017, compared to income tax credit of
$19,022 for the same period of the
prior year.
Net Income and EPS
Net income increased by $6.40
million, or 145.7%, to $10.79
million for the fourth quarter of 2017 from $4.39 million for the same period of the prior
year. The increase in net income was primarily related to increase
in net revenue and partially offset by the increase in operating
expenses.
Basic and diluted earnings share was 0.49 for the fourth quarter
of 2017, compared to $0.22 for the
same period of the prior year.
Full Year 2017 Financial Results
|
For the Twelve
Months Ended December 31,
|
($ thousands,
except per share data)
|
2017
|
|
2016
|
|
%
Change
|
Revenue
|
$
25,116
|
|
$
15,822
|
|
58.7%
|
Gross
profit
|
24,386
|
|
15,442
|
|
57.9%
|
Gross
margin
|
97.1%
|
|
97.6%
|
|
-0.5 pp
|
Operating
income
|
20,604
|
|
13,547
|
|
52.1%
|
Operating
margin
|
82.0%
|
|
85.6%
|
|
-3.6 pp
|
Net Income
|
24,048
|
|
13,889
|
|
73.1%
|
EPS - basic &
diluted
|
1.15
|
|
0.69
|
|
66.7%
|
Revenue
For the year of 2017, net revenue increased by $9.29 million, or 58.7%, to $25.12 million from $15.82
million for 2016. The increase in net revenue was primarily
due to the increase in total amount of financing advised which
increased by $958 million, or 65.1%,
to $2,429 million for 2017 from
$1,471 million for 2016. The
increases in net revenue and amount of financing advised were
across the board.
|
For the Twelve
Months Ended December 31,
|
|
2017
|
|
2016
|
|
No. of
Clients
Advised
|
|
Amount of
Financing
Advised
($ Millions)
|
|
Revenue
($ Millions)
|
|
No. of
Clients
Advised
|
|
Amount of
Financing
Advised
($ Millions)
|
|
Revenue
($ Millions)
|
Commercial payment
advisory services
|
31
|
|
$
1,476
|
|
$
16.87
|
|
19
|
|
$
922
|
|
$
10.44
|
International
corporate financing advisory services
|
5
|
|
650
|
|
2.47
|
|
4
|
|
$
330
|
|
$
1.26
|
Intermediary bank
loan advisory services
|
11
|
|
303
|
|
5.71
|
|
6
|
|
$
219
|
|
$
4.12
|
Technical
services
|
-
|
|
-
|
|
0.06
|
|
-
|
|
$
-
|
|
$
-
|
Total
|
47
|
|
$
2,429
|
|
$
25.12
|
|
29
|
|
$
1,471
|
|
$
15.82
|
Revenue from commercial payment advisory services
increased by $6.43 million, or 61.6%,
to $16.87 million for 2017 from
$10.44 million for 2016. The Company
assisted 31 SMEs in obtain acceptance bills from banks with total
amount of financing advised of $1,476
million during 2017, compared to 19 SMEs and $922 million, respectively, during 2016.
Revenue from international corporate financing advisory services
increased by $1.21 million, or 96.6%,
to $2.47 million for 2017 from
$1.26 million for 2016. The Company
provided international corporate financing advisory services to 5
SMEs with total amount of financing advised of $650 million during 2017, compared to 4 SMEs and
$330 million, respectively, during
2016.
Revenue from intermediary loan advisory services increased by
$1.59 million, or 38.6%, to
$5.71 million for 2017 from
$4.12 million for 2016. The Company
provided intermediary loan advisory services to 11 SMEs with total
amount of financing advised of $303
million during 2017, compared to 6 SMEs and $219 million, respectively, during 2016.
Revenue from technical service, related to our newly acquired
subsidiary, Anytrust, was $0.06
million for 2017, compared to $nil for 2016.
Revenue from commercial payment advisory services, international
corporate financing advisory services, intermediary bank loan
advisory services and technical service accounted for 67.2%, 9.8%,
22.8%, and 0.3% of total revenue, respectively, for 2017, compared
to 66.0%, 7.9%, 26.1%, and nil, respectively, for 2016.
Cost of Revenue
Total cost of revenue, which is mainly comprised of
revenue-generating staffing costs, increased by $0.35 million, or 92.0%, to $0.73 million for 2017 from $0.38 million for 2016.
Gross Profit and Gross Margin
Gross profit increased by $8.94
million, or 57.9%, to $24.39
million for 2017 from $15.44
million for 2016. The increase in gross profit was in line
with the growth of net revenue. Gross margin was 97.1% for 2017,
compared to 97.6% for 2016.
Operating Expenses
Selling and marketing expenses increased by $0.13 million, or 51.4%, to $0.37 million for 2017 from $0.25 million for 2016. The increase in selling
and marketing expenses was primarily related to an increase in
marketing and advertising efforts.
General and administrative expenses increased by $1.82 million, or 135.0%, to $3.17 million for 2017 from $1.35 million for 2016. The increase in general
and administrative expenses was primarily due to increase in
expenses related to office lease, professional fees, travelling and
entertainment expenses as well as expenses related to our initial
public offering.
Research and development expenses was $0.09 million for 2017, compared to $nil for
2016.
Donation expenses decreased by $0.15
million, or 50.8%, to $0.15
million for 2017 from $0.30
million for 2016.
As a result, total operating expenses increased by $1.89 million, or 99.6%, to $3.78 million for 2017 from $1.90 million for 2016. As a percentage of net
revenue, total operating expenses was 15.1% for 2017, compared to
12.0% for 2016.
Operating Income and Operating Margin
Operating income increased by $7.06
million, or 52.1%, to $20.60
million for 2017 from $13.55
million for 2016. Operating margin 82.0% for 2017, compared
to 85.6% for 2016.
Other Income (Expenses)
Total net other income, which is primarily comprised of interest
income from loans to third parties as well as interest income on
bank deposits and other expenses, increased by $1.28 million, or 45.9%, to $4.08 million for 2017 from $2.79 million for 2016. Interest income on loans
to third parties were $4.07 million
for 2017, compared to $2.79 million
for 2016. The increase in interest income on loans to third parties
were in line with increase of loan balances to third parties, which
was $41.69 million and $19.24 million as of December 31, 2017 and 2016, respectively.
Income Tax Expenses
Income tax expense was $0.63
million for 2017, compared to $2.45
million for 2016. The decrease of income tax expense was
mainly due to the transition of operating business from one
subsidiary - Sheng Ying Xin
(Beijing) Management Consulting
Co., Ltd. which is subject to the 25% income tax rate, to another
subsidiary - Kashgar Sheng Yingxin Enterprise Consulting Co., Ltd.,
which is exempted from income tax from its inception to
December 31, 2020.
Net Income and EPS
Net income increased by $10.16
million, or 73.1%, to $24.05
million for 2017 from $13.89
million for 2016. The increase in net income was primarily
related to increase in net revenue and partially offset by the
increase in operating expenses.
Basic and diluted earnings share was $1.15 for 2017, compared to $0.69 for 2016.
Liquidity and Capital Resources
As of December 31, 2017, the
Company had cash and cash equivalents of $27.17 million, compared to $1.88 million at the end of 2016. Accounts
receivable was $6.29 million as of
December 31, 2017, compared to
$8.09 million at the end of 2016.
Balance of loans to third parties was $41.69
million as of December 31,
2017, compared to $19.24
million at the end of 2016. Total working capital was
$68.11 million as of December 31, 2017, compared to $25.15 million at the end of 2016.
Net cash provided by operating activities was $27.60 million for 2017, compared to $14.47 million for 2016. Net cash used in
investing activities was $22.31
million for 2017, compared to net cash provided by investing
activities of $2.49 million for 2016.
Net cash provided by financing activities was $19.64 million, including net proceeds from
initial public offering of $18.97
million and exercise of underwriter's warrants of
$1.09 million, for 2017, compared to
net cash used in financing activities of $15.75 million for 2016.
Recent Developments
On May 3, 2018, Fu Hui
(Shenzhen) Commercial Factoring
Co., Ltd. ("Fu Hui"), a wholly owned subsidiary of the Company,
signed a revolving factoring credit facility (the "Facility")
agreement with Sino Pharma Business Factoring Co., Ltd. ('Sino
Pharma BF"), one of the leading factoring services providers
serving the healthcare industry and a subsidiary of China National
Pharmaceutical Group Corporation. The Facility has a one-year term
with the option for multiple-year extensions and allows Sino Pharma
BF to receive a RMB 100 million
(approximately $15.7 million)
revolving factoring credit line from the Company. The Facility is
backed by accounts receivable from Grade A hospitals with Class II
or above rankings.
On April 30, 2018, the Company
announced that the independent special committee of the Board of
Directors of the Company, comprising three independent directors of
the Company, Ms. Sheve Li Tay, Mr. Buting Yang and Mr. Hong Huang (the "Special Committee"), has
completed its investigation into the allegations raised in the
report issued by Muddy Waters LLC dated December 20, 2017 (the "Report"). The Special
Committee commenced its investigation in January 2018 and was assisted by a global law
firm, Shearman & Sterling LLP, serving as independent legal
counsel, and by KPMG Advisory (China) Limited, the auditors that were
retained by Shearman & Sterling LLP.
On January 31, 2018, the Company
announced that its subsidiary, Anytrust, has signed a cooperation
agreement (the "ZHH Agreement") with Zhonghuhang (Beijing) Information Technology Co., Ltd.
("ZHH") to develop an Overseas Student Registration System and
provide comprehensive consulting services for the Convey Project.
Pursuant to the ZHH Agreement, Anytrust will be the exclusive
developer responsible for the design, development, testing,
implementation and maintenance/support of an overseas student
registration platform for the Convey Project. The two parties also
agreed to jointly develop new products and services in the areas of
big data, artificial intelligence and blockchain relating to the
Convey Project.
On January 26, 2018, the Company
announced the public launch of the beta version of AnyInfo, a
vertical search engine and big data platform covering a broad range
of publicly available data for over 28 million enterprises in
China. AnyInfo is developed by the
Company's subsidiary, Anytrust, and is now available for Windows
and Android users at www.anyinfo.cn.
On December 29, 2017, the Company
announced that it has entered into a strategic cooperation
agreement (the "CCFT Agreement") with China Co-op Foreign Trade LLC
("CCFT"), a majority-owned subsidiary of All China Federation of
Supply and Marketing Cooperatives ("China Co-op"). Pursuant to the
CCFT Agreement executed on December 26,
2017, the two parties will explore cooperation opportunities
including the joint development of a big data center for
China's Co-op and
agricultural-related industries, a settlement center in support of
the One Belt One Road Initiative, as well as appointing the Company
as a preferred partner in providing data analytics and financing
advisory services to China Co-op's network of cooperatives and
affiliated enterprises.
On November 14, 2017, the Company
entered into an equity transfer agreement to acquire a 100% equity
interest in Beijing Anytrust Science & Technology Co., Ltd., a
big data company focusing on providing data infrastructure design,
big data access and analytics, and document automation for
enterprises and government agencies in China, for a total cash consideration of
RMB12 million (approximately
US$1.8 million).
On November 6, 2017, the Company
announced plans to make "FinTech" or financial technologies a core
competency and a key growth driver for the Company's next phase of
growth (the "FinTech Initiative"). The Company's FinTech Initiative
specifically centers around the development of a big data platform
that would allow the Company to leverage big data access,
analytics, artificial intelligence ("AI") and machine learning in
acquiring and retaining customers through precision marketing and
effective risk control. The Company plans to fulfill the FinTech
Initiative through a combination of key employee recruitment and
targeted acquisitions.
On October 25, 2017, the Company
announced the expansion of its service offerings with the launch of
its supply chain financing services (the "SCF Services"). The
SCF Services provide owners of small to medium sized enterprises
(the "SMEs") with holistic supply chain financing solutions and
value-added services in order to reduce financing costs and improve
efficiency during a business transaction. With an initial focus on
the medical supplies and medical equipment, airline catering and
bulk commodity supply chains, the SCF Services will be operated
through Fu Hui (Shenzhen)
Commercial Factoring Co., Ltd., a recently incorporated, wholly
owned subsidiary of the Company.
On October 16, 2017, Mr.
Kam Cheng Leong tendered his
resignation as director of the Company, Chairman of the Nominating
and Corporate Governance Committee and member of both Audit
Committee and Compensation Committee of the Company. Mr. Leong's
resignation was for personal reasons and was not a result of any
dispute with the Company. The Board accepted Mr. Leong's
resignation with immediate effect. On the same day, the Board
resolved to appoint Mr. Buting Yang to replace Mr. Leong in the
abovementioned capacities, effective immediately.
About China Internet Nationwide Financial Services
Inc.
Incorporated in 2014 and headquartered in Beijing, China Internet Nationwide Financial
Services Inc. provides financial advisory services, including
commercial payment advisory, intermediary bank loan advisory, and
international corporate financing advisory, to meet the financing
and capital needs of its clients, comprised largely of
small-to-medium sized enterprises. Beijing Anytrust Science &
Technology Co., Ltd. ("Anytrust") is a wholly owned subsidiary of
CIFS focusing on providing data infrastructure design, big data
access and analytics, and document automation for enterprises and
government agencies in China. For
more information about the CIFS and Anytrust, please visit
www.cifsp.com or www.anytrust.cn.
Forward Looking Statements
This news release contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar
statements. All statements other than statements of historical fact
in this press release are forward-looking statements and involve
certain risks and uncertainties that could cause actual results to
differ materially from those in the forward-looking statements.
These forward-looking statements are based on management's current
expectations, assumptions, estimates and projections about the
Company and the industry in which the Company operates, but involve
a number of unknown risks and uncertainties, Further information
regarding these and other risks is included in the Company's
filings with the U.S. Securities and Exchange Commission. The
Company undertakes no obligation to update forward-looking
statements to reflect subsequent occurring events or circumstances,
or changes in its expectations, except as may be required by law.
Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, it cannot assure
you that such expectations will turn out to be correct, and actual
results may differ materially from the anticipated results. You are
urged to consider these factors carefully in evaluating the
forward-looking statements contained herein and are cautioned not
to place undue reliance on such forward-looking statements, which
are qualified in their entirety by these cautionary
statements.
INVESTOR RELATIONS:
China Internet Nationwide Financial Services Inc.
Email: ir@cifsp.com
Phone: +86 10 8587 8166
Tony Tian, CFA
Weitian Group LLC
Email: ttian@weitianco.com
Phone: +1 732 910 9692
CHINA INTERNET
NATIONWIDE FINANCIAL SERVICES INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
|
|
As of December
31,
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
27,165,262
|
|
$
|
1,880,425
|
Accounts
receivable
|
|
6,290,000
|
|
|
8,088,511
|
Other
receivables
|
|
532,028
|
|
|
94,474
|
Loans to third
parties
|
|
41,690,640
|
|
|
19,237,422
|
Prepayments
|
|
306,473
|
|
|
-
|
Deferred offering
cost
|
|
-
|
|
|
312,202
|
Total Current
Assets
|
|
75,984,403
|
|
|
29,613,034
|
Non-current
assets
|
|
|
|
|
|
Property and
Equipment, net
|
|
222,142
|
|
|
28,777
|
Intangible assets,
net
|
|
1,428,566
|
|
|
2,772
|
Long-term office
rental deposit
|
|
678,419
|
|
|
208,695
|
Long-term
prepayment
|
|
3,807
|
|
|
-
|
Goodwill
|
|
752,345
|
|
|
-
|
Deferred Tax
Assets
|
|
133,729
|
|
|
-
|
Total
Assets
|
$
|
79,203,411
|
|
$
|
29,853,278
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accrued
payroll
|
$
|
1,265,308
|
|
$
|
490,875
|
Accounts
payable
|
|
71,136
|
|
|
-
|
Advance from
customers
|
|
22,733
|
|
|
-
|
Other payables and
accruals
|
|
671,194
|
|
|
53,827
|
|
|
|
|
|
|
Due to a related
party
|
|
163,659
|
|
|
163,361
|
Taxes
payable
|
|
5,680,094
|
|
|
3,755,872
|
Total Current
Liabilities
|
|
7,874,124
|
|
|
4,463,935
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
213,511
|
|
|
-
|
Total
Liabilities
|
|
8,087,635
|
|
|
4,463,935
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Common Stock ($0.001
par value, unlimited shares authorized, 22,114,188 and 20,000,000
share issued and outstanding at December 31, 2017 and December 31,
2016, respectively)
|
|
22,114
|
|
|
20,000
|
Additional paid in
capital
|
|
28,441,045
|
|
|
9,147,398
|
Statutory
reserve
|
|
1,828,601
|
|
|
1,657,084
|
Retained
earnings
|
|
41,556,125
|
|
|
17,679,458
|
Accumulated other
comprehensive loss
|
|
(732,109)
|
|
|
(3,114,597)
|
Total Shareholders'
Equity
|
|
71,115,776
|
|
|
25,389,343
|
Total Liabilities
and Shareholders' Equity
|
$
|
79,203,411
|
|
$
|
29,853,278
|
CHINA INTERNET
NATIONWIDE FINANCIAL SERVICES INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|
Years ended
December 31,
|
|
2017
|
|
2016
|
|
2015
|
Revenue
|
|
|
|
|
|
|
|
|
- Third
parties
|
$
|
25,116,139
|
|
$
|
15,821,980
|
|
$
|
7,360,581
|
- Related
parties
|
|
-
|
|
|
-
|
|
|
421,105
|
Total
revenue
|
|
25,116,139
|
|
|
15,821,980
|
|
|
7,781,686
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
729,752
|
|
|
380,072
|
|
|
235,152
|
Gross
profit
|
|
24,386,387
|
|
|
15,441,908
|
|
|
7,546,534
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
371,383
|
|
|
245,246
|
|
|
151,489
|
General and
administrative expenses
|
|
3,169,855
|
|
|
1,348,862
|
|
|
1,573,262
|
Research &
Development Expense
|
|
92,683
|
|
|
-
|
|
|
-
|
Donation
expenses
|
|
148,108
|
|
|
301,101
|
|
|
-
|
Total Operating
expenses
|
|
3,782,029
|
|
|
1,895,209
|
|
|
1,724,751
|
Income from
operations
|
|
20,604,358
|
|
|
13,546,699
|
|
|
5,821,783
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
Interest income on
bank deposit
|
|
13,600
|
|
|
1,273
|
|
|
292
|
Gain on disposal of a
non-operating department
|
|
-
|
|
|
-
|
|
|
454,836
|
Other
expenses
|
|
(7,058)
|
|
|
(517)
|
|
|
(741,112)
|
Interest income from
loans to third parties
|
|
4,070,600
|
|
|
2,794,134
|
|
|
1,946,974
|
Total other income,
net
|
|
4,077,142
|
|
|
2,794,890
|
|
|
1,660,990
|
|
|
|
|
|
|
|
|
|
Income before income
tax expenses
|
|
24,681,499
|
|
|
16,341,589
|
|
|
7,482,773
|
Income tax
expenses
|
|
633,315
|
|
|
2,452,822
|
|
|
1,870,748
|
Net
Income
|
$
|
24,048,184
|
|
$
|
13,888,767
|
|
$
|
5,612,025
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
Foreign currency
translation gain/(loss)
|
|
2,382,488
|
|
|
(1,468,548)
|
|
|
(1,645,416)
|
Comprehensive
Income
|
$
|
26,430,672
|
|
$
|
12,420,219
|
|
$
|
3,966,609
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares, basic and diluted
|
|
20,880,706
|
|
|
20,000,000
|
|
|
20,000,000
|
Basic and diluted
earnings per share
|
$
|
1.152
|
|
$
|
0.694
|
|
$
|
0.281
|
CHINA INTERNET
NATIONWIDE FINANCIAL SERVICES INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
Years ended
December 31,
|
|
2017
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
$
|
24,048,184
|
|
$
|
13,888,767
|
|
$
|
5,612,025
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
39,314
|
|
|
9,979
|
|
|
8,613
|
Deferred
taxes
|
|
(38,890)
|
|
|
-
|
|
|
53,748
|
Gain on sale of a
non-operating department
|
|
-
|
|
|
-
|
|
|
(454,836)
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
2,265,897
|
|
|
(3,689,700)
|
|
|
(5,075,469)
|
Other
receivables
|
|
(379,543)
|
|
|
1,814,225
|
|
|
(1,585,777)
|
Prepayments
|
|
(300,280)
|
|
|
-
|
|
|
177
|
Long-term office
rental deposit
|
|
(442,135)
|
|
|
-
|
|
|
-
|
Accrued
payroll
|
|
713,599
|
|
|
112,961
|
|
|
370,643
|
Other payables and
accruals
|
|
(8,048)
|
|
|
(24,101)
|
|
|
207
|
Tax payable
|
|
1,638,886
|
|
|
2,358,698
|
|
|
1,668,268
|
Accounts
Payable
|
|
66,558
|
|
|
-
|
|
|
-
|
Net cash provided
by operating activities
|
|
27,603,542
|
|
|
14,470,829
|
|
|
597,599
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(191,692)
|
|
|
-
|
|
|
(42,315)
|
Payment to purchase
intangible assets
|
|
-
|
|
|
-
|
|
|
(4,118)
|
Loans to third
parties
|
|
(41,508,250)
|
|
|
(21,295,334)
|
|
|
(24,090,967)
|
Collection of loans to
third parties
|
|
20,865,100
|
|
|
23,786,941
|
|
|
-
|
Acquisition of
Anytrust, net of cash acquired in connection of acquisition of
Anytrust
|
|
(1,473,365)
|
|
|
-
|
|
|
-
|
Net cash (used
in)/provided by investing activities
|
|
(22,308,207)
|
|
|
2,491,607
|
|
|
(24,137,400)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Borrowings from a
related party
|
|
-
|
|
|
3,430
|
|
|
958,263
|
Repayment to a related
party
|
|
-
|
|
|
(67,434)
|
|
|
(1,045,554)
|
Capital
contribution
|
|
-
|
|
|
-
|
|
|
24,523,664
|
Proceeds from IPO (net
of offering cost of $1,262,562)
|
|
18,968,888
|
|
|
-
|
|
|
-
|
Proceeds from exercise
of underwriter's warrants
|
|
1,090,239
|
|
|
-
|
|
|
-
|
Return of
capital
|
|
-
|
|
|
(15,356,266)
|
|
|
-
|
Payments of offering
costs
|
|
(417,998)
|
|
|
(326,053)
|
|
|
-
|
Net cash provided
by/(used in) financing activities
|
|
19,641,129
|
|
|
(15,746,323)
|
|
|
24,436,373
|
Effect of exchange
rate changes on cash
|
|
348,373
|
|
|
209,111
|
|
|
(446,056)
|
Net increase in
cash
|
|
25,284,837
|
|
|
1,425,224
|
|
|
450,516
|
Cash at beginning of
year
|
|
1,880,425
|
|
|
455,201
|
|
|
4,685
|
Cash at end of
year
|
$
|
27,165,262
|
|
$
|
1,880,425
|
|
$
|
455,201
|
Supplemental
disclosure of cash flow information
|
|
|
|
|
|
|
|
|
Interest
paid
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
Income taxes
paid
|
$
|
317,150
|
|
$
|
1,012,765
|
|
$
|
312,024
|
Non- cash investing
activities
|
|
|
|
|
|
|
|
|
Note receivable
from the sale of non-operating department
|
$
|
-
|
|
$
|
-
|
|
$
|
454,836
|
Net
asset from acquisition of Anytrust
|
$
|
351,225
|
|
$
|
-
|
|
$
|
-
|
Deferred offering
cost
|
$
|
763,365
|
|
$
|
-
|
|
$
|
-
|
View original
content:http://www.prnewswire.com/news-releases/china-internet-nationwide-financial-services-inc-reports-financial-results-for-the-fourth-quarter-and-full-year-2017-300648927.html
SOURCE China Internet Nationwide Financial Services Inc.