Shares in China Finance Online Co. (Nasdaq: JRJC) trading 2.19% lower on Friday, at $12.53 per American depositary share, after it announced weak results for the first quarter.
The Beijing-based fintech news provider said in a statement on Thursday after the markets closed that in the three months through March its revenue was $9.8 million, compared with $9.9 million a year ago. Net loss narrowed to $2 million, or 83 cents per ADS, compared with $3.4 million, or $1.22 cents per ADS, a year ago.
JRJC said its financial services business witnessed a 10.8% decrease in revenue from the same period last year. The year-over-year decrease in revenues from financial services was mainly due to reduced revenue from the equity brokerage business, the company said.
JRJC added that its revenues from the financial information and advisory business were $3.5 million, compared with $3.2 million during the first quarter. This increase was mainly comprised of subscription services from individual and institutional customers and financial advisory services.
"During the first quarter of 2020, the COVID-19 pandemic caused a devastating blow to the Chinese economy and created unprecedented uncertainties for the global economy. The stock markets around the world experienced massive selloffs and unusual volatility," Zhiwei Zhao, the chairman and chief executive officer of China Finance Online said in a statement.
He added, "Our ability to navigate through the challenging first quarter amid the downturn of the Shanghai stock market is mainly attributable to the outstanding performance of the investment advisory services." “The growth of wealth management business also benefited from the fintech wealth management empowerment system that we've developed over the years.”
Looking forward, the company said it will continue to strengthen its fintech capability through optimization and upgrades of its services and products to empower the wealth management sector in China.
JRJC announced a partnership with Dow Jones on July 15. The deal shows Dow Jones will provide JRJC with "access to a sub-set of its Chinese language newswire service, which will include market commentary and spot news in Chinese."