November 15, 2013 at 08:00 AM EST
China Commercial Credit Third Quarter Revenue Up 35 Percent; Company Establishes New Equipment Leasing Entity to Begin Operations Early Next Year

WUJIANG, CHINA -- (Marketwired) -- 11/15/13 -- China Commercial Credit, Inc. (NASDAQ: CCCR), a microfinance company whose 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 third quarter ended September 30, 2013, the company had net revenue of $3,508,465, a 35 percent increase on net revenue of $2,590,819 in the third quarter of last year.

Third quarter 2013 net income attributable to common stock shareholders, which included a one-time non-cash expense for conversion of preferred stock in conjunction with the company's initial public offering completed in August 2013, was $1,608,769, or $.17 per share, compared to net income attributable to common stock shareholders of $1,914,550, or $.23 per share, in the same period in 2012.

Prior to this non-cash expense, the company's net income for the third quarter of 2013 was $2,361,269, or $.24 per share, a 23 percent increase compared to net income of $1,914,550, or $.23 per share, in the third quarter last year.

Total weighted average shares outstanding were 9,692,533 and 8,285,815 for the third quarter ended September 30, 2013 and September 30, 2012, respectively.

The company's increase in 2013 third quarter net revenue compared to the same period last year was primarily the result of an increase in loan interest of $553,182. This increase, in turn, was mainly the result of an increase in loan receivables of approximately $9.0 million, to $90,512,332 in the third quarter of 2013 from $81,465,053 in the same period in 2012.

In addition to the increase in the loan interest, net income for the third quarter was impacted favorably by increases in net commissions and fees from the company's loan guarantee business, and a reversal in the provision for loan losses compared to the third quarter of last year.

For the first nine months of 2013, the company had net revenue of $9,271,899, a one percent improvement compared to the net revenue of $9,216,372 during the first nine months of last year. Nine-month 2013 net income attributable to common stock shareholders, which included the one-time non-cash expense for conversion of preferred stock, was $5,142,460, or $.56 per share, compared to net income attributable to common stock shareholders of $6,570,598, or $.86 per share, in the same period in 2012.

Prior to this non-cash expense, the company's net income for the first nine months of 2013 was $5,894,960, or $.64 per share, a ten percent decrease compared to the net income of $6,570,598, or $.86 per share, achieved in the first nine months of last year. This decrease was primarily the result of an increase in non-interest operating expenses of $333,891, comprising various financial, travel, legal and consulting costs.

Total weighted average shares outstanding were 9,233,381 and 7,611,688 for the nine months ended September 30, 2013 and September 30, 2012, respectively.

"We are very satisfied with our third quarter financial performance," said CEO and founder Mr. Huichun Qin. "Going forward, we expect our available lending capital and income from both loan interest and loan guarantees to show continuing improvements."

Mr. Qin added that, on September 5, 2013, the company established a new entity in China, Pride Financial Leasing (Suzhon) Co. Ltd, which is 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.

Equipment leasing, noted Mr. Qin, is one of the fastest growing business sectors of the Chinese economy. "China Commercial Credit intends to capitalize on this growing demand by offering an early, full service entrant in Jiangsu and surrounding regions."

Additional details on the capitalization and business plan for Pride Financial Leasing will follow shortly, said Mr. Qin.

About China Commercial Credit

China Commercial Credit (http://www.chinacommercialcredit.com), founded in 2008, provides business loans and loan guarantee services to more than 360 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, farmers and individuals account for eight of ten jobs in China and comprise 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.


                       CHINA COMMERCIAL CREDIT, INC.
                        CONSOLIDATED BALANCE SHEETS

                                               September 30,   December 31,
                                                    2013           2012
                                                (Unaudited)

ASSETS
Cash                                           $   6,972,155  $   1,588,061
Restricted cash                                   12,676,190     11,595,489
Loans receivable, net of allowance for loan
 losses $1,386,907 and $857,813 for September
 30, 2013 and December 31, 2012, respectively     89,125,425     84,923,480
Interest receivable                                  866,502        905,454
Tax receivable, net                                1,012,954              -
Property and equipment, net                          279,981        302,626
Other assets                                         707,369        689,709
Total Assets                                   $ 111,640,576  $ 100,004,819

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Short-term bank loans                          $  15,462,491  $  20,606,791
Deposits payable                                  11,323,937      9,428,061
Unearned income from financial guarantee
 services                                            610,021        773,402
Accrual for financial guarantee services             699,556        880,725
Tax payable, net                                           -         20,449
Other current liabilities                            402,527        742,745
Deferred tax liability                               323,549        303,567
Total Liabilities                                 28,822,081     32,755,740
Shareholders' Equity
Series A Preferred Stock (par value $0.001 per
 share, nil and 1,000,000 shares authorized;
 nil and 645 shares issued and outstanding at
 September 30, 2013 and December 31, 2012,
 respectively)                                 $           -  $           1
Series B Preferred Stock (par value $0.001 per
 share, nil and 5,000,000 shares authorized;
 nil and 640 shares issued and outstanding at
 September 30, 2013 and December 31, 2012,
 respectively)                                             -              1
Common stock (par value $0.001 per share,
 100,000,000 shares authorized; 10,430,657 and
 9,000,000 shares issued and outstanding at
 September 30, 2013 and December 31, 2012,
 respectively)                                        10,431          9,000
Subscription receivable                               (1,062)       (11,062)
Additional paid-in capital                        52,782,321     44,247,397
Statutory reserve                                  5,147,828      4,232,164
Retained earnings                                 18,785,001     14,558,205
Accumulated other comprehensive income             6,093,976      4,213,373
Total Shareholders' Equity                        82,818,495     67,249,079
Total Liabilities and Shareholders' Equity     $ 111,640,576  $ 100,004,819



                       CHINA COMMERCIAL CREDIT, INC.
         CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

                     For the Three Months Ended   For the Nine Months Ended
                            September 30,               September 30,
                         2013          2012          2013          2012
                      (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
Interest income
Interests and fees
 on loans            $  2,969,422  $  2,416,240  $  9,156,526  $  8,774,766
Interests and fees
 on loans-related
 party                          -             -             -        13,125
Interests on
 deposits with banks       16,922        56,906       135,416       238,372
Total interest and
 fees income            2,986,344     2,473,146     9,291,942     9,026,263

Interest expense
Interest expense on
 short-term bank
 loans                   (274,489)     (247,272)     (897,341)   (1,069,990)
Net interest income     2,711,855     2,225,874     8,394,601     7,956,273

Reversal (provision)
 for loan losses          340,965          (624)     (500,123)      (37,276)
Net interest income
 after provision for
 loan losses            3,052,820     2,225,250     7,894,478     7,918,997

Commissions and fees
 on financial
 guarantee services       401,984       311,351     1,175,060     1,261,145
Over provision on
 financial guarantee
 services                  53,661        54,218       202,361        36,230
Commission and fees
 on guarantee
 services, net            455,645       365,569     1,377,421     1,297,375

Net Revenue             3,508,465     2,590,819     9,271,899     9,216,372

Non-interest income
Government incentive       57,460        58,578        83,235       175,557
Other non-interest
 income                    99,337        25,368        99,337       135,896
Total non-interest
 income                   156,797        83,946       182,572       311,453

Non-interest expense
Salaries and
 employee surcharge      (167,078)     (203,496)     (511,953)     (508,900)
Rental expenses           (65,244)      (63,874)     (194,091)     (191,285)
Business taxes and
 surcharge               (103,877)      (97,275)     (361,466)     (367,862)
Other operating
 expenses                (580,233)     (246,342)   (1,450,603)     (768,874)
Total non-interest
 expense                 (916,432)     (610,987)   (2,518,113)   (1,836,921)

Income Before Taxes     2,748,830     2,063,778     6,936,358     7,690,904
Income tax expense       (387,561)     (149,228)   (1,041,398)   (1,120,306)
Net Income              2,361,269     1,914,550     5,894,960     6,570,598

Amortization of
 beneficial
 conversion feature
 relating to
 convertible Series
 A Preferred Shares      (372,500)            -      (372,500)            -
Amortization of
 beneficial
 conversion feature
 relating to
 convertible Series
 B Preferred Shares      (380,000)            -      (380,000)            -
Net income
 attributable to
 common stock
 shareholders        $  1,608,769  $  1,914,550  $  5,142,460  $  6,570,598

Earnings per Share-
 Basic and Diluted   $       0.17  $       0.23  $       0.56  $       0.86

Weighted Average
 Shares Outstanding-
 Basic and Diluted      9,692,533     8,285,815     9,233,381     7,611,688

Net Income              2,361,269     1,914,550     5,894,960     6,570,598
Other comprehensive
 income
Foreign currency
 translation
 adjustment               452,537       (54,195)    1,880,603       359,867
Comprehensive Income $  2,813,806  $  1,860,355  $  7,775,563  $  6,930,465



                       CHINA COMMERCIAL CREDIT, INC.
                   CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                 For The Nine Months Ended
                                                       September 30,
                                                    2013           2012
                                                (Unaudited)    (Unaudited)
Cash Flows from Operating Activities:
Net income                                     $   5,894,960  $   6,570,598
Adjustments to reconcile net income to net
 cash provided by operating activities:
Depreciation and amortization                         83,926         50,233
Provision for loan losses                            500,123         37,276
Over provision on financial guarantee services      (202,361)       (36,230)
Deferred tax expense                                  11,705         25,168
Changes in operating assets and liabilities:
  Interest receivable                                 62,478        (90,273)
  Tax receivable/tax payable, net                 (1,021,744)         8,930
  Other assets                                       436,288          6,047
  Unearned income from guarantee services           (181,941)       (62,873)
  Other current liabilities                         (161,387)       (28,057)
Net Cash Provided by Operating Activities          5,422,047      6,480,819

Cash Flows from Investing Activities:
Originated loans disbursement to third parties  (186,874,447)  (145,961,798)
Loans collection from third parties              184,319,796    141,759,435
Loans collection from related parties                      -        237,564
Payment of loans on behalf of guarantees            (435,468)             -
Collection from guarantees for loan paid on
 behalf of customers                                       -        526,653
Deposit released from banks for financial
 guarantee services                                5,447,398      4,052,733
Deposit paid to banks for financial guarantee
 services                                         (4,584,430)    (1,388,553)
Purchases of property and equipment                  (58,758)      (166,592)
Net Cash Used in Investing Activities             (2,185,909)      (940,558)

Cash Flows From Financing Activities:
Proceeds from short-term bank borrowings           4,881,859      5,536,573
Repayment of short-term bank borrowings          (10,563,457)   (11,879,175)
Issuance of Series A Preferred stocks                 50,000        272,500
Issuance of Series B Preferred stocks                 70,000              -
Issuance cost of preferred stocks                    (12,744)       (19,229)
Proceeds from initial public offering, net of
 offering costs                                    7,473,528              -
Proceeds from exercise of underwriter over-
 allotment, net of offering costs                    255,992              -
Common stock issuance cost                           (80,019)             -
Cash payment in reverse acquisition                        -       (245,401)
Payments of dividends                                      -       (842,554)
Net Cash Provided by/(Used in) Financing
 Activities                                        2,075,159     (7,177,286)

Effect of Exchange Rate Changes on Cash and
 Cash Equivalents                                     72,797         27,908

Net Increase/(Decrease) In Cash and Cash
 Equivalents                                       5,384,094     (1,609,117)
Cash and Cash Equivalents at Beginning of
 Period                                            1,588,061      3,549,644
Cash and Cash Equivalents at End of Period     $   6,972,155  $   1,940,527

Supplemental Cash Flow Information
Cash paid for interest expense                 $     909,190  $   1,088,318
Cash paid for income tax                       $   2,057,841  $   1,091,816

Contact:

Investors
Jimmy Caplan
Market Makers
512-329-9505
jimmycaplan@me.com

Media
Rick Eisenberg
Eisenberg Communications
212-496-6828
eiscom@msn.com

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