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TheStreet Open House

ChinaNet Online Holdings Reports Second Quarter 2012 Financial Results

Stocks in this article: CNET

– FINANCIAL TABLES –

CHINANET ONLINE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
  June 30,  2012  December 31, 2011
  (US $) (US $)
  (Unaudited)  
Assets    
Current assets:    
Cash and cash equivalents  $ 8,572 $ 10,695
Accounts receivable, net 9,476 4,444
Other receivables, net 5,672 3,631
Prepayment and deposit to suppliers 13,485 15,360
Due from related parties  283 324
Contingent consideration receivables  160 159
Other current assets 103 129
Deferred tax assets-current 272 --
Total current assets 38,023 34,742
Investment in and advance to equity investment affiliates 1,109 1,396
Property and equipment, net 1,666 1,902
Intangible assets, net 7,686 8,151
Goodwill 11,077 10,999
Deferred tax assets-non current 270 92
Total Assets $ 59,831 $ 57,282
Liabilities and Equity    
Current liabilities:    
Accounts payable  $ 380 $ 268
Advances from customers  1,800 724
Accrued payroll and other accruals  1,037 616
Due to equity investment affiliate  -- 220
Due to related parties  -- 161
Payable for acquisition  -- 550
Taxes payable  5,860 5,040
Other payables  188 114
Dividend payable -- 5
Total current liabilities 9,265 7,698
Long-term liabilities:    
Deferred tax liability-non current 1,797 1,893
Long-term borrowing from director 138 137
Total Liabilities 11,200 9,728
Commitments and contingencies     
Equity:    
Common stock (US$0.001 par value; authorized 50,000,000 shares; issued and outstanding 22,186,540 shares and 22,146,540 shares at June 30, 2012 and December 31, 2011, respectively) 22 22
Additional paid-in capital 20,774 20,747
Statutory reserves 2,117 2,117
Retained earnings  17,217 16,688
Accumulated other comprehensive income 2,387 2,132
Total ChinaNet Online Holdings, Inc.'s stockholders' equity 42,517 41,706
Noncontrolling interests 6,114 5,848
Total equity 48,631 47,554
Total Liabilities and Equity $ 59,831 $ 57,282
 
CHINANET ONLINE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In thousands)
 
  Six Months Ended June 30, Three Months Ended June 30,
  2012 2011 2012 2011
  (US $) (US $) (US $) (US $)
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Sales        
From unrelated parties $ 27,996  $ 15,636 $ 13,076  $ 8,814
From related parties 66 457 51 267
  28,062 16,093 13,127 9,081
Cost of sales 21,902 5,458 9,364 3,437
Gross margin 6,160 10,635 3,763 5,644
Operating expenses        
Selling expenses 1,402 1,620 713 908
General and administrative expenses 3,060 1,865 1,817 975
Research and development expenses 756 724 425 372
  5,218 4,209 2,955 2,255
Income from operations 942 6,426 808 3,389
Other income (expenses)        
Interest income 121 4 116 3
Gain on deconsolidation of subsidiaries -- 230 -- --
Other (expenses)/income -- 5 1 (1)
  121 239 117 2
Income before income tax expense, equity method investments and noncontrolling interests   1,063   6,665   925   3,391
Income tax expense / (benefit) 14 751 (222) 319
Income before equity method investments and noncontrolling interests   1,049   5,914   1,147   3,072
Share of losses in equity investment affiliates (297) (105) (104) (59)
Net income 752 5,809 1,043 3,013
Net income attributable to noncontrolling interests (223) (3) (148) (19)
Net income attributable to ChinaNet Online Holdings, Inc.   529   5,806   895   2,994
Dividend of Series A convertible preferred stock -- (322) -- (153)
Net income attributable to common stockholders of ChinaNet Online Holdings, Inc.   $ 529   $ 5,484   $ 895   $ 2,841
         
Earnings per share        
Earnings per common share        
Basic $ 0.02  $ 0.32 $ 0.04  $ 0.16
Diluted $ 0.02  $ 0.28 $ 0.04  $ 0.15
Weighted average number of common shares outstanding:        
Basic 22,184,562 17,387,336 22,186,540 17,528,785
Diluted 22,184,562 20,410,724 22,186,540 20,005,962

 

 
CHINANET ONLINE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
  Six Months Ended June 30,
  2012 2011
  (US $) (US $)
  (Unaudited) (Unaudited)
Cash flows from operating activities    
Net income $ 752 $ 5,809
Adjustments to reconcile net income to net cash provide d by operating activities    
Depreciation and amortization 818 470
Share-based compensation expenses 27 172
Allowances for doubtful debts 561 --
Share of losses in equity investment affiliates 297 105
Gain on deconsolidation of subsidiaries -- (230)
Gain on disposal of property and equipment -- (3)
Deferred taxes (558) (46)
Changes in operating assets and liabilities    
Accounts receivable (5,346) (2,171)
Other receivables 226 1,320
Prepayment and deposit to suppliers 1,983 (309)
Due from related parties 43 (258)
Other current assets 26 (2)
Accounts payable 109 258
Advances from customers 1,070 (1,477)
Accrued payroll and other accruals 418 (50)
Due to director -- (147)
Due to Control Group -- (81)
Due to related parties (162) (137)
Other payables 45 77
Taxes payable 783 797
Net cash provided by operating activities 1,092 4,097
Cash flows from investing activities    
Purchases of vehicles and office equipment (46) (152)
Purchase of intangible assets -- (1,429)
Project development deposit to a third party (2,450) --
Restricted cash for incorporation of VIEs -- (186)
Cash from acquisition of VIEs -- 24
Cash effect on deconsolidation of VIEs -- (182)
Long-term investment in and advance to equity investment affiliates -- (1,527)
Disposal of investment in and loan repayment from equity investment affiliate -- 1,527
Payment for acquisition of VIEs (553) (1,451)
Net cash used in investing activities (3,049) (3,376)
Cash flows from financing activities    
Cash investment contributed by noncontrolling interests -- 224
Dividend paid to convertible preferred stockholders (5) (283)
Short-term loan borrowed from a equity investment affiliate 316 --
Short-term loan repaid to a equity investment affiliate (538) --
Net cash used in financing activities (227) (59)
Effect of exchange rate fluctuation on cash and cash equivalents 61 195
Net (decrease) / increase in cash and cash equivalents (2,123) 857
Cash and cash equivalents at beginning of the period 10,695 15,590
Cash and cash equivalents at end of the period $ 8,572 $ 16,447
CONTACT: Ted Haberfield, President
         MZ North America, IR
         MZ Group
         Direct: +1-760-755-2716
         Email: thaberfield@mzgroup.us

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