China Commercial Credit Announces 2015 First Quarter Results

EGS Comments on Q1 Earnings Release (00300508).DOCX

WUJIANG, China, via ETELIGIS INC., 05/21/2015 – – China Commercial Credit, Inc. (NASDAQ: CCCR), a microfinance company providing financial services to small-to-medium enterprises (SMEs), farmers and individuals in Jiangsu Province, today reported that, for the three months ended March 31, 2015, the company had a net loss of $1,157,031, or $(.094) per share, on net revenue of $61,302 compared to net income of $1,093,633, or $.105 per share, on net revenue of $2,054,099 in the first quarter of 2014. Total weighted average shares outstanding were 12,255,062 in the first quarter of 2015 versus 10,434,862 in the like year-ago quarter.

The decrease in 2015 first quarter net income was primarily the result of a drop in net interest income of $1,539,972 compared to the first quarter of 2014. This drop was the combined effect of an increase of non-performing loans aging over 90 days, which led to reversal of more interest income, a decreased loan portfolio, and a decrease in effective weighted average loan interest on the company’s loan portfolio from 14.40% as of March 31, 2014 to 12.84% as of March 31, 2015.

Also impacting the company’s net income in the 2015 first quarter was a decrease in the provision for loan losses of $375,077 against an increase in the provision for direct financing leases of $610,312, a reduction in commission and fees on financial guarantee services of $248,455, and an increase in total non-interest expense of $200,978.

As of March 31, 2015, the company maintained an $81.6 million portfolio of direct loans to 175 borrowers and a total of $21.2 million in loan guarantees for 24 borrowers, compared to an $86.5 million portfolio of direct loans to 190 borrowers and a total of $21.9 million in loan guarantees for 23 borrowers as of December 31, 2014. The decrease in direct loans and loan portfolio is due to the company’s decision during the 2015 first quarter to remain cautious in making loans to new customers until the economic situation in Wujiang recovers.

As reported in the company’s recent 10-K for the year ended December 3, 2014, due to the substantial increase in the amount of defaulted loans occurring in its loan guarantees business, the company continues to hold off on making any new guarantees until the local economic conditions improve.

China Commercial Credit’s operations and financial condition for the first quarter ended March 31, 2015 and 2014 are more fully discussed in its Form 10-Q on file with the Securities and Exchange Commission. Investors are encouraged to carefully review the Form 10-Q for a complete analysis of the company’s reported results.

About China Commercial Credit

China Commercial Credit, founded in 2008, provides business loans and loan guarantee services to 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.

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 Form 10-K filed with the SEC on April 15, 2015 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:

Investors

Jimmy Caplan

Market Makers

512-329-9505

jimmy

Media

Rick Eisenberg

Eisenberg Communications

212-496-6828

rick

SOURCE: China Commercial Credit, Inc.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s