Golden Bull Reports 75% Revenue Rise for First Half; Up 6% on Wall Street

Its financial results for the first six months sent the Chinese P2P lending platform's shares up 6 percent early Monday.

Anna Vodopyanova
    Oct 01, 2018 10:57 AM  PT
Golden Bull Reports 75% Revenue Rise for First Half; Up 6% on Wall Street
author: Anna Vodopyanova   

The stock of Golden Bull Ltd. (Nasdaq: DNJR) rose more than 6 percent by Monday afternoon after the Chinese P2P lending company posted a 75 percent increase in revenue for the first half of 2018.

Revenue jumped to $4.9 million compared with $2.8 million during the first six months of 2017, the Shanghai-based company said, thanks to an increase in borrowers. According to its statement, Golden Bull has facilitated 3,000 loans with total volume of $77.8 million during the first half compared with 2,200 loans in the amount of $53.7 million processed a year ago.

Erxin Zeng, the chief executive officer of Golden Bull, said in a statement Saturday, "We expect this trend to continue as we keep building our brand reputation and lender base."

The results sent the shares in the company up 50 cents intraday on Monday to $8.50 per American depositary share.

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The stock of Golden Bull was trading up more than 6 percent intraday Monday at $8.50 a share.

(Source: Thomson Reuters Eikon)

In comparison with the first quarter of 2018, the company's growth has slowed during the three months ended June 30. Golden Bull has facilitated 42 percent fewer loans during the second quarter with total volume of $27.6 million compared with $50.2 million in the preceding three-month period. It also only had 2,000 new lenders compared with 5,000 new lenders for the prior quarter.

Net loss during the first six months increased to $743,000 from $601,000 reported a year ago.

The operating expenses for the six months through June reached $5.7 million, a 59 percent increase year-over-year. The company said it has hired more employees during the period, as well as professionals related to legal, audit, and financial services, as it underwent the IPO process, which resulted in an 88 percent increase in general and administrative expenses to $3.1 million. The company's research and development, as well as sales and marketing costs, increased by 35 and 34 percent, respectively.

Golden Bull's stock price has more than doubled since it began trading its shares publicly at $4 apiece on Nasdaq in March. The company raised $6.2 million in its IPO, plus an additional $930,000 for shares purchased in follow-on by the underwriter, ViewTrade Securities Inc.

The company said it planned to use the funds raised through the IPO, as well as $8 million raised in 2015 and 2016 through private placements, to continue developing its online platform and mobile app, hiring, expanding its borrower base, and marketing.

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