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Posted by freemexy on January 13th, 2020
China Finance Online Co. Limited, a leading web-based financial services company that provides Chinese retail investors with fintech-powered online access to securities trading services, wealth management products, securities investment advisory services, as well as financial database and analytics services to institutional customers, today announced its unaudited financial results for the third quarter and first nine months ended September 30, 2019.To get more latest china business newsyou can visit shine news official website.
Mr. Zhiwei Zhao, Chairman and CEO of China Finance Online, commented that “During the third quarter of 2019, our bottom-line loss was significantly reduced. The weak Hong Kong markets and the falling investor confidence in the third quarter of 2019 led to a revenue decline in our brokerage business in Hong Kong. With the improvement of our business model and higher operation efficiency, our gross margin was also strengthened from the same period of last year.” “Similar to the transition of brokerage services in the US, Chinese financial institutions are moving away from a trading commission-oriented business model to holistic financial services encompassing wealth management, investor education, and asset allocation advisory. Our dedication to leveraging technologies to empower wealth managers and improve customer loyalty has bought us closer to many financial institutions.
This paradigm shift in the financial industry also set the stage for us to change the revenue model from one-off project services to annual retainers. Our Genius Zhisheng has received such standard annual contracts from brokerage firms. Our institutional business is showing good indications.” “After a weak second quarter, the Chinese stock markets continued to soften during the third quarter and the Shanghai Composite Index dropped from 2979 to 2905. However, the traffic to our flagship website, ‘JRJ.com.cn,’ continued to rise, reaching No. 150 in Alexa’s Global Ranking and No. 35 in China, respectively. We remain one of the most trusted financial news hubs with our proprietary content, fact-based journalism, breaking news coverage and analysis on market trends.
Growing traffic attracted not only more readers but also more advertisers. As a result, our advertising business is growing rapidly.” “Looking into 2020, we will continue to optimize and upgrade our services and products, and also remain confident to leverage our fintech capabilities to add value to our institutional customers and grow our market share and earning power,” Mr. Zhao concluded. Net revenues were .1 million, compared with .6 million during the third quarter of 2018 and .9 million during the second quarter of 2019. During the third quarter of 2019, revenues from financial services, the financial information and advisory business, and advertising services contributed 44.5%, 29.7% and 25.4% of the net revenues, respectively, compared with 54.7%, 27.3% and 16.8%, respectively, for the corresponding period in 2018. Revenues from financial services were .6 million, a decrease of 23.9%, compared with .7 million during the third quarter of 2018 and .2 million during the second quarter of 2019. The year-over-year and quarter-over-quarter decreases of revenues from financial services were mainly due to a decline in the equity brokerage business. Revenues from the financial information and advisory business were .4 million, compared with .4 million during the third quarter of 2018 and .9 million in the second quarter of 2019.
The quarter-over-quarter decrease of revenues from the financial information and advisory business was mainly attributable to the weakness in subscription services from individual customers, which was negatively affected by the continued soft stock market during the third quarter. Revenues from advertising services were .0 million, an increase of 41.4%, compared with .4 million in the third quarter of 2018 and .9 million in the second quarter of 2019. The increased traffic to our site and readers’ recognition of our premium content also helped to strengthen our advertising revenues on a year-over-year basis. Gross profit was .0 million, compared with .0 million in the third quarter of 2018 and .6 million in the second quarter of 2019. Gross margin in the third quarter of 2019 was 62.3%, compared with 58.2% in the third quarter of 2018 and 63.1% in the second quarter of 2019, respectively.
The year-over-year increase in gross margin was mainly due to the revenue mix with higher advertising revenues. General and administrative expenses were .3 million, a decrease of 25.2% from .1 million in the third quarter of 2018, and a decrease of 8.8% from .5 million in the second quarter of 2019, respectively. The year-over-year decrease was mainly due to effective cost control measures and the ongoing streamlining of the operations. The quarter-over-quarter decrease was mainly due to the adjustment of the agency fee related to the Hong Kong sector. Sales and marketing expenses were .8 million, a decrease of 41.2% from .8 million in the third quarter of 2018 and a decrease of 26.6% from .8 million in the second quarter of 2019, respectively. The year-over-year decrease was mainly attributable to the further streamlining of sales and marketing as well as improved operational efficiency. The quarter-over-quarter decrease was mainly due to the terminated commodity trading business.