Monday, March 31, 2014

China Commercial Credit Announces 2013 Results

China Commercial Credit, Inc. (NASDAQ: CCCR)

 

Net income of $7,704,970 on revenue of $12,541,075.

 

Year-end cash position of $9,405,865 vs. $1,588,061 at year-end 2012.

 

Loan capacity expanded with approval of IPO proceeds as contributed registered capital.

 

Total Shareholders' Equity at $84,949,906 versus $67,249,079 at year-end 2012.

 

China Commercial Credit, Inc. (NASDAQ: CCCR), a microfinance company whose current major business is providing microcredit loans and loan guarantees to small-to-medium enterprises (SMEs), farmers and individuals in Jiangsu Province, today reported that, for the year ended December 31, 2013, the company had net revenue of $12,541,075 compared to net revenue of $12,586,724 in 2012.

 

Net income for the year ended December 31, 2013 was $7,704,970, or $.81 per share, on total average shares outstanding of 9,535,161. This compares to net income of $8,312,469, or $1.04 per share, on total average shares outstanding of 7,960,662 in the prior year period. Accounting for non-cash expenses of $752,500 related to the conversion of Series A and B Preferred Shares at the closing of the company's IPO in August 2013, net income attributable to common stock shareholders was $6,952,470 for the year ended 2013 vs. $8,312,469 for the year ended 2012.

 

The decrease in 2013 net income compared to 2012 was primarily the result of an increase in total non interest expenses of $733,448, the majority of which comprised various travel expenses and legal and consulting costs. The 2013 net income was also negatively impacted by an increase in the provision for loan losses of $399,034, a charge assessed to reflect the added risk associated with the company's increase in loan receivables of approximately $4.4 million, to $90,203,413 in 2013 from $85,781,293 in 2012.

 

The company's cash position was $9,405,865 as of December 31, 2013, compared to $1,588,061 at year-end 2012. It included net IPO proceeds of $7.6 million, of which approximately $5.6 million has been approved by relevant government authorities as contributed registered capital to the company's operating entity as of the end of Q1 2014. Therefore, as of April 1, 2014, such funds can be used to expand the company's lending and guarantee capacity going forward.

 

Total Shareholders' Equity at year-end 2013 increased to $84,949,906 from $67,249,079 at year-end 2012.

 

"While net income fell moderately in 2013, we anticipate improved operating results in the current year based on an improved cash and registered capital base for expanding our microcredit lending and guarantee business, as well as contributions from our three new ventures anticipated for launch in 2014," said CEO and founder Mr. Huichun Qin. These ventures include a loan guarantee service for applicants on the Jiangsu Financial Bureau's Internet-based lending platform, utilized by thousands of SMEs, farmers and individuals in Jiangsu Province; and Pride Financial Leasing, designed to offer leases on machinery and equipment, transportation vehicles, and medical devices to municipal government agencies, hospitals and SMEs in Jiangsu Province and beyond; and Pride Lending Club, an online loan portal pairing prospective borrowers with willing lenders and loan guarantors throughout China.

 

The company's 2013 annual report on Form 10-K will be available online at www.sec.gov or by visiting the investor relations section of the China Commercial Credit website at http://www.ir-site.com/china-commercial-credit/default.asp.

 

About China Commercial Credit

 

China Commercial Credit (http://www.chinacommercialcredit.com), founded in 2008, provides business loans and loan guarantee services to more than 280 small-to-medium enterprises (SMEs), farmers and individuals in China's Jiangsu Province. Due to recent legislation and banking reform in China, these SMEs, farmers and individuals -- which historically had been excluded from borrowing funds from State-owned and commercial banks -- are now able to borrow money at competitive rates from microfinance lenders. According to 2012 data, SMEs account for eight of ten jobs in China and comprise nearly 60 percent of the nation's GDP.

 

Investors wishing to receive CCC's corporate communications as they become available may go to http://www.ir-site.com/china-commercial-credit/default.asp and register under Email Alerts. The company's blog, "From The CEO," also appears at the same site. Each new blog post will be announced on the company's Twitter account, @CCCR_update, where readers may link directly to the post.

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of United States securities laws. You should not rely upon forward-looking statements as predictions of future events. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations. You should review the factors described in the section entitled "Risk Factors" in our prospectus filed with the SEC on August 14, 2013 and other documents we file from time to time with the SEC. We qualify all of our forward-looking statements by these cautionary statements.

 

 

 

 

 

CONTACT INFORMATION

 

Contact:

Investors

Jimmy Caplan
Asia IR/PR
512-329-9505
jimmy@asia-irpr.com

Media
Rick Eisenberg
Asia IR/PR
212-496-6828
rick@asia-irpr.com

 

SOURCE: China Commercial Credit, Inc.

 

 



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