China Finance Online Reports Smaller Loss on Higher Revenue; Shares Jump
The Beijing-based company said revenue came in at $13.6 million, up from $10.7 million in the comparable three-month period.
China Finance Online Co. Ltd. (Nasdaq: JRJC), an online financial services company, reported late Wednesday that its fourth quarter loss narrowed compared with the year before while revenue climbed more than 27 percent.
The Beijing-based company said revenue came in at $13.6 million, up from $10.7 million in the comparable three-month period. Its net loss attributable to China Finance was $8.4 million, or 37 cents per American depositary share, compared with a loss of $12.8 million, or 57 cents per ADS, a year earlier. Each ADS represents five ordinary shares.
Shares in the company closed up more than 7 percent in New York on Wednesday at $2.53, an increase of 17 cents. In evening trading, it was up an additional 9 percent, or 22 cents per share.
"We turned a positive net cash-flow in the fourth quarter, as we are making inroad in optimizing our business units and improving our top line from the third quarter," said Zhiwei Zhao, chairman and CEO of the company. "As we are transitioning away from the commodity brokerage business, our equity brokerage related business maintains a strong growth momentum and our intelligent-finance driven fintech business has drawn interest from leading brokerage firms in , with whom we have entered into strategic cooperation agreements."
The company said, in particular, its equity brokerage business more the doubled during the quarter from the year before. Overall, however, revenue from its financial services operation, which accounted for two-thirds of its sales, declined to $8.9 million in the quarter from $16 million as its commodities brokerage services area was hurt by a suspension of new commodities trading by the precious metal exchange in China, the company said.
China Finance, which operates the site www.jrj.com, offers online access to securities trading services, wealth management products, securities investment advisory services, as well as financial database and analytics services to institutional customers.