SHIJIAZHUANG, CHINA / ACCESSWIRE / December 1, 2016 / Fincera Inc. ("Fincera" or the "Company") (OTCQB: AUTCF) (fka AutoChina International), a leading provider of web-based financing and ecommerce services for small and medium-sized businesses and individuals in China, today reported financial results for the third quarter ended September 30, 2016.
CeraPay is the Company's credit advance and online payment processing platform. Launched in November 2014, CeraPay allows customers to pay for their everyday needs at participating merchants through the online CeraPay transaction network. With functionality similar to a credit card, the Company issues revolving credit lines to customers, which they can use to make purchase transactions via the CeraPay application. Fincera earns transaction fees through its CeraPay platform.
During the third quarter, CeraPay customers made payment transactions totaling RMB6.4 billion, (approximately $981 million) a 126.1% increase compared to the prior-year period and a 7.0% increase compared to the second quarter of 2016. The Company has achieved quarterly growth throughout 2016.
CeraVest is the Company's small business lending platform. From its inception in November 2014 through September 30, 2016, CeraVest originated over RMB6.1 billion (approximately $952 million) in loans. Fincera created CeraVest as an online lending marketplace that provides short-term operating capital for small and medium-sized businesses. CeraVest originates loans and sell these loans to the public. Currently, individuals may invest on the CeraVest platform and earn an annual interest rate of up to approximately 8.0% on a flexible term investment, or 8.6% for a 6-month investment if held to maturity. Fincera earns origination fees on CeraVest loans.
CeraVest originated RMB1.3 billion (approximately $194 million) in loans during the third quarter of 2016, a 36.7% increase compared to the prior-year period and a 0.7% increase compared to the second quarter of 2016. The CeraVest loan portfolio had a total unpaid principal balance of approximately RMB 2.6 billion (approximately $395 million) at September 30, 2016.
The Company now classifies its legacy truck leasing business as a discontinued operation for all periods presented below. During the quarter, the Company continued to wind down this legacy truck leasing business and expects to continue servicing and collecting payments on existing commercial vehicle leases until all obligations related to the individual leases are met, which the Company estimates should occur by the end of 2017.
Subsequent Events - Completion of Purchase of Kai Yuan Finance Center Building Space
On October 19, 2016, the Company completed its previously announced purchase from a related party of the remaining portions of the Kai Yuan Finance Center, a 245-meter tall building in central Shijiazhuang City, Hebei Province (the "Building Assets") that it did not already own in a transaction valued at approximately $361.9 million, including assumption of debt of $250.4 million. The Company previously acquired 23 floors, or 60,000 square meters, of the building in a purchase transaction completed in late 2012. The Building Assets consist of 31 floors and an underground parking garage, totaling over 119,000 square meters, which house the Hilton Shijiazhuang, a premiere 594-room hotel. The transaction includes the purchase of the entity that contracts with Hilton Worldwide to operate the hotel. See the Report of Foreign Private Issuer on Form 6-K filed by the Company on October 28, 2016 for further details.
Mr. Yong Hui Li, Chairman and CEO of Fincera, stated, "Throughout 2016 Fincera has continued to take advantage of a disconnect between the financing needs of small-to-medium sized businesses in China and the financing vehicles available to them in the marketplace. We are pleased with the continued acceptance of our suite of products and services during this period, as we believe that the Company combines the high-tech network capabilities of larger institutions with the high-touch focus on the customer that is lacking in small-business lending."
Mr. Li continued, "We achieved sequential-quarter and year-over-year growth in both CeraPay transaction volume and CeraVest loans issued, which drove a 92.2 % increase in total income (revenues) for the quarter ended September 30, 2016 as compared to the prior year period. These flagship platforms leverage technology from our experience as an operator of a nationwide commercial vehicle financing network to provide effective financing solutions for our customers. We are also continuing to leverage the network to develop complementary products targeted for use in different industries. Fincera has a nationwide network of over 2,200 employees operating in 31 provinces, municipalities, and autonomous regions throughout China. We believe we are one of the largest financial support networks in China, with a widely recognized brand that continues to gain greater prominence. We believe that as we continue to leverage this network, the Company has the potential to achieve economies of scale that can generate returns for investors above that of traditional financing and payment processing institutions."
Third Quarter 2016 Financial Results
The table below sets forth certain line items from the Company's Consolidated Statement of Income as a percentage of income:
Operating Costs and Expenses
Income (loss) from continuing operations before income taxes
(Loss) income from discontinued operations, net of taxes
Balance Sheet Highlights
At September 30, 2016, Fincera's cash and cash equivalents (not including restricted cash) were $77.9 million and working capital was $158.2 million, compared to $62.0 million and $162.6 million, respectively, at December 31, 2015. Total liabilities were $701.3 million, and stockholders' equity was $250.2 million, compared to $494.2 million and $256.1 million, respectively, at December 31, 2015.
About Fincera Inc.
Founded in 2005, Fincera Inc. (OTCQB: AUTCF) provides innovative web-based financing and ecommerce services for small and medium-sized businesses and individuals in China. The Company also operates a network of branch offices in 31 provinces, municipalities, and autonomous regions across China. Fincera's primary service offerings include a credit advance/online payment-processing network and a web-based small business lending platform. The Company's website is http://www.fincera.net. Fincera trades on the OTCQB venture stage marketplace for early stage and developing U.S. and international companies. OTCQB companies are current in their reporting and undergo an annual verification and management certification process.
Safe Harbor Statement
This press release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company's current expectations or beliefs concerning future events, plans, strategies, or objectives that are subject to change, and actual results may differ materially from the forward-looking statements. Without limiting the foregoing, the words "expect," "plan", "believe," "seek," "estimate," "aim," "intend," "anticipate," "believe," and similar expressions are intended to identify forward-looking statements. Forward-looking statements may involve known and unknown risks factors over which the Company has no control. In addition to the events and factors disclosed previously and from time to time in the Company's filings with the SEC, including the Company's Annual Report on Form 20-F for the period ended December 31, 2015, the following factors, among others, could cause actual results to meaningfully differ from those set forth in the forward-looking statements:
In this press release, forward-looking statements include those related to the recently completed acquisition of hotel property operations. Such acquisition includes various risks, including that:
The information set forth herein should be read in light of such risks. Forward-looking statements speak only as of the date of this communication or the date of any document incorporated by reference in this document. Except as required by applicable law, the Company does not undertake to update these forward-looking statements to reflect future events or circumstances.
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SOURCE: Fincera Inc.