Fincera Reports Third Quarter 2017 Financial Results
Jan 23, 2018
OTC Disclosure News Service
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SHIJIAZHUANG, HEBEI PROVINCE, CHINA / ACCESSWIRE / Jan 23, 2018 / Fincera Inc. (“Fincera” or a “Company”) (OTCQB: YUANF), a heading provider of web-based financing and ecommerce services for tiny and medium-sized businesses and people in China, currently reported financial formula for a third entertain finished Sep 30, 2017.
Third Quarter Financial Highlights
- Income for a 3 months finished Sep 30, 2017, increasing 15.9% to RMB293.7 million (US$44.1 million) compared to a before year
- Net income totaled RMB8.1 million (US$1.2 million) during a third entertain of 2017, compared to a net detriment of RMB10.9 million in a before year
Operational Highlights
Loan transaction volume opposite both CeraPay and CeraVest platforms for a third entertain of 2017 totaled approximately RMB6.2 billion (US$0.9 billion). Non-credit transactions, that are exchange utilizing existent money balances but prolongation of credit from a Company conducted over a CeraPay platform, are not enclosed in a charts below.
CeraPay (https://www.dianfubao.com)
CeraPay is a Company’s credit allege and online remuneration estimate platform. CeraPay allows business to compensate for their bland needs during participating merchants by a online CeraPay transaction network. With functionality identical to a credit card, a Company issues revolving credit lines to customers, that they can use to make squeeze exchange around a CeraPay application. In further to a 30-day revolving credit line service, CeraPay now offers short-term financing for products purchased by any of a Company’s ecommerce websites (TruShip, AutoChekk, and Pingping). These “purchase” financing loans lift 12-month terms with amortized monthly payments. The business can use a material to deposit on a CeraVest marketplace until a final remuneration is due.
CeraPay generated credit exchange totaling approximately RMB5.0 billion (US$751.5 million) during a third entertain of 2017, a diminution of approximately RMB322.5 million (US$48.5 million), or 6.0%, compared to a second entertain of 2017, and a 12.3% diminution compared to a third entertain of 2016. This diminution was essentially due to a reduce magnitude of business regulating CeraPay to compensate for their purchases when compared to before periods. Beginning in a third entertain of 2017, a Company began requiring all CeraPay users to yield material to a Company, including dual residential properties and one vehicle, before to creation a transaction. Fincera earns transaction fees by a CeraPay platform.
CeraVest (https://www.qingyidai.com)
Fincera combined CeraVest as an online lending marketplace that provides a short-term handling collateral height for tiny and medium-sized businesses. CeraVest allows lenders to yield loans to borrowers that have been vetted by a Company. CeraVest also provides investors a event to deposit in loans facilitated from a CeraPay platform. From a pregnancy in Nov 2014 by a third entertain of 2017, CeraVest facilitated over RMB11.3 billion (US$1.7 billion) in loans; a Company’s loan portfolio from CeraVest was approximately RMB3.1 billion (US$0.5 billion) during Sep 30, 2017.
Currently, business might deposit in 3 forms of loans on a CeraVest platform: a 30-day loan with an annualized lapse of 8.1% if hold to maturity, a 180-day loan with an annualized lapse of 8.62% if hold to maturity, and a 12 month loan with an annualized lapse of 9.02% that earnings principal and seductiveness monthly. In addition, investors might trade a 30-day and 180-day loans on a delegate marketplace offering by CeraVest with pricing supposing by a Company.
The Company also had a stretchable investment product that yielded an annualized lapse of 8.03% to investors. This product was phased out by a finish of 2017 to approve with new supervision regulations and is no longer offering by a Company.
CeraVest facilitated RMB1.1 billion (US$165.3 million) during a third entertain of 2017, a diminution of approximately RMB413.5 million (US$62.1 million), or 27.1%, compared to a second entertain of 2017 and a 12.7% diminution compared to a third entertain of 2016. The diminution was essentially a outcome of business loitering lorry purchases until after a third entertain of 2017 to accommodate new government-imposed glimmer standards that recently went into effect. CeraVest had a sum loan portfolio delinquent principal change of approximately RMB3.1 billion (US$463.3 million) during Sep 30, 2017. Fincera earns facilitation fees on CeraVest loans.
Operational Updates
Fincera is gratified to announce that it has done swell with certain corporate initiatives, including:
- Implementing a four-pronged sales channel that consists of company-owned stores, employee-owned stores, authorization stores, and part-time particular sales agents;
- Launching 3 new products by a CeraVest height (Qingying, Yueying, and Zhongying, referred to as a “new products” in this press release) and discontinuing certain products (Fixed, Flex and Chuangying, referred to as a “discontinued products” in this press release) to approve with a latest supervision regulations;
- Moving brazen with maintaining China CITIC Bank as a protector for all patron accounts;
- Entering into a partnership with Sinoiov (a provider of information services to a highway burden industry) to yield remuneration cards for business of Sinopec (an user of a network of use stations in China); and
- Launching a new product that allows lorry owners to use CeraPay to compensate drivers’ wages.
Management Commentary
Mr. Yong Hui Li, Chairman and CEO of Fincera, stated, “We are gratified with a continued adoption of a CeraPay and CeraVest products in a third entertain of 2017. While we did see decreases in CeraPay exchange and CeraVest loans facilitated during a period, a tip line softened by scarcely 23% year over year essentially as a outcome of increasing seductiveness income warranted on CeraVest loans and from facilitation fees. And notwithstanding increasing handling waste associated to product expansion and sales and marketing, we remained essential in a third entertain of 2017. With a recently stretched sales plan and new partnerships and products, we design tiny and medium-sized businesses in China will continue to see a value Fincera’s flagship CeraPay and CeraVest products, as good as a other offerings, can move to their bland processes. We sojourn committed to bringing a business increasing innovation, convenience, and quality, and are ceaselessly operative to urge a products and services.”
Currency Conversion
This recover contains estimate translations of certain RMB amounts into US$ for convenience. Unless differently noted, all translations from RMB to US$ are done during a rate of RMB6.6533 to US$1.00, a effective noon shopping rate on Sep 30, 2017, as set onward in a H.10 statistical recover of a Board of Governors of a Federal Reserve System.
Third Quarter 2017 Financial Results
Income (Revenues)
The list next sets onward certain line equipment from a Company’s Consolidated Statement of Income as a commission of income:
95,505 32.52 % – – N/A 89,396 30.44 % 73,749 29.10 % 21.2 % 33,909 11.55 % 129,205 50.99 % -73.8 % 51,451 17.52 % 44,761 17.66 % 14.9 % 23,431 7.97 % 5,699 2.25 % 311.1 % 293,692 100.0 % 253,414 100.0 % 15.9 %
- Total income for a 3 months finished Sep 30, 2017, increasing 15.9% to RMB293.7 million (US$44.1 million), from RMB253.4 million in a prior-year period, essentially due to expansion in a total volume of loans superb underneath a Company’s CeraVest product, that was partially equivalent by a diminution in transaction fees for a CeraPay product due to a diminution in transaction volume.
- Facilitation fees, that paint upfront fees charged for a work Fincera performs by a platform, such as: loan information consultancy, credit and evaluations, and lender recommendation, totaled RMB95.5 million (US$14.4 million) in a 3 months finished Sep 30, 2017, due to a launch of new products in Jul 2017.
- Interest income, that represents seductiveness warranted on CeraVest loans, increasing 21% to RMB89.4 million (US$13.4 million) in a 3 months finished Sep 30, 2017, from RMB73.7 million in a prior-year period, especially due to seductiveness income from receivables on loans that were released after a second entertain of 2017. The increment of seductiveness income from new products was equivalent by a diminution in seductiveness income from aged products.
- Service charges, that paint CeraPay transaction fees, decreased 73.8% to RMB33.9 million (US$5.1 million) in a 3 months finished Sep 30, 2017, from RMB129.2 million in a prior-year period. This was a outcome of a diminution in exchange processed by CeraPay. During a third entertain of 2017, RMB5.0 billion (US$751.5 million) of exchange were processed by CeraPay, a 12.3% diminution from a RMB5.7 billion exchange processed in a third entertain of 2016.
- Property franchise and supervision revenues increasing 14.9% to RMB51.5 million (US$7.7 million) during a third entertain of 2017, compared to RMB44.8 million in a prior-year period. The occupancy rate of a Kai Yuan Finance Center during a 3 months finished Sep 30, 2017 increasing to 82%, compared to 70% during Sep 30, 2016. Income from a Company’s hotel operation during a Kai Yuan Finance Center also increasing during a period.
- Other income is especially comprised of late remuneration fees (penalty income) from both CeraPay and CeraVest and money incentives postulated to investors. Other income increasing 311.1% to RMB23.4 million (US$ 3.5 million) during a third entertain of 2017, compared to RMB5.7 million in a prior-year duration due to a strengthening of collection efforts.
Operating Costs and Expenses
- The Company’s handling costs and waste increasing 9.1% to RMB281.3 million (US$42.3 million) during a third entertain of 2017 from RMB257.9 million in a prior-year period, essentially due to increasing seductiveness expense, sustenance for credit losses, product expansion expense, offered and offered expense, and ubiquitous and executive waste to support a expansion of a Company’s Internet-based business.
Income from Continuing Operations Before Income Taxes
- Income from stability operations before income taxes totaled RMB12.3 million (US$1.9 million) during a third entertain of 2017, compared to a detriment of RMB4.4 million in a prior-year period, essentially as a outcome of a increasing incomes mentioned above.
Income (Loss) from Discontinued Operations, Net of Taxes
- Income from dropped operations, net of taxes, totaled RMB2.3 million (US$0.34 million) during a third entertain of 2017, compared to a detriment of RMB7.1 million in a prior-year period. The Company continues a circuitous down of a bequest truck-leasing business, that is personal as dropped operations. The income during a stream duration was caused by a collection of overdue normal leasing receivables and a annulment of a analogous sustenance available opposite them on a Company’s financial statements. The detriment in a prior-year duration was essentially caused by a showing of sales branches.
Net Income (Loss)
- Net income totaled RMB8.1 million (US$1.2 million) during a third entertain of 2017, compared to a net detriment of RMB10.9 million in a prior-year period.
Balance Sheet Highlights
At Sep 30, 2017, Fincera’s money and money equivalents (not including limited cash) were RMB680.8 million, compared to RMB722.3 million during Dec 31, 2016. Total liabilities were RMB7.2 billion and stockholders’ equity was disastrous RMB155.0 million, compared to RMB7.0 billion and RMB157.1 million, respectively, during Dec 31, 2016. The rebate in stockholders’ equity was essentially a outcome of a US$2.00 per share money division that a Company announced in Sep 2017.
About Fincera Inc.
Founded in 2005, Fincera Inc. (OTCQB: YUANF) provides innovative web-based financing and ecommerce services for tiny and medium-sized businesses and people in China. The Company also operates a network of bend offices in 31 provinces, municipalities, and unconstrained regions opposite China. Fincera’s primary use offerings embody a credit advance/online payment-processing network and a web-based tiny business lending platform. The Company’s website is http://www.fincera.net. Fincera trades on a OTCQB try theatre marketplace for early theatre and building U.S. and general companies. OTCQB companies are stream in their stating and bear an annual corroboration and supervision acceptance process.
Safe Harbor Statement
This press recover might enclose forward-looking statements within a definition of a Private Securities Litigation Reform Act of 1995 about a Company. Forward-looking statements are statements that are not chronological facts. Such forward-looking statements, formed on a stream beliefs and expectations of a Company’s management, are theme to risks and uncertainties, that could means tangible formula to differ from a forward-looking statements. The following factors, among others, could means tangible formula to materially differ from those set onward in a forward-looking statements:
- changing beliefs of generally supposed accounting principles;
- outcomes of any supervision or government-related reviews, inquiries, investigations, and associated litigation;
- continued correspondence with supervision regulations;
- legislation or regulatory environments, mandate or changes adversely inspiring a financial services attention in China;
- fluctuations in consumer demand;
- management of fast growth;
- general mercantile conditions;
- changes in supervision policy;
- fluctuations in sales of blurb vehicles in China;
- China’s altogether mercantile conditions and internal marketplace mercantile conditions;
- the Company’s business plan and plans, including a ability to enhance by vital acquisitions, a investiture of new locations, and a introduction of new products and services;
- the Company’s ability to successfully confederate new acquisitions;
- credit risk inspiring a Company’s income and profitability, including a ability to conduct a default risk of customers;
- the formula of destiny financing efforts; and
- geopolitical events.
The information set onward herein should be review in light of such risks. The Company does not assume any requirement to refurbish a information, including forward-looking statements, contained in this press release.
CONTACT
At a Company
Jason Wang
Chief Financial Officer
(858) 997-0680 / jcwang@fincera.net
Investor Relations
The Equity Group Inc.
Carolyne Y. Sohn
Senior Associate
(415) 568-2255 / csohn@equityny.com
Adam Prior
Senior Vice President
(212) 836-9606 / aprior@equityny.com
Note: For a 3 and 9 months finished Sep 30, 2017, a total are converted from RMB to USD during a mark rate of RMB 6.6533 to US$1.00 while U.S. GAAP requires such acclimatisation to be done regulating normal rates prevalent during any stating period.
FINCERA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands only share and per share data)
RMB 1,783,577 2,049,444 Common batch – $0.001 standard value, 1,000,000,000 shares authorized, 47,284,620 and 47,123,898 shares superb as of 9/30/2017 and 12/31/2016, respectively
SOURCE: Fincera Inc.
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