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China Commercial Credit Announces 2014 First Quarter Results and Closing of Secondary Public Financing

SUZHOU, CHINA -- (Marketwired) -- 05/16/14 -- 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, 2014, the company reported net income of $1,093,633, or $.10 per share, on revenue of $2,054,009. This compares with net income of $1,569,868, or $.17 per share, on revenue of $2,670,253 in the like year-ago quarter. Total weighted average shares outstanding were 10,434,862 in the first quarter of 2014 versus 9,000,000 in the first quarter of 2013.

The decrease in first quarter net income was primarily the result of an increase of approximately $354,000 in the provision for financial guarantee services over the same provision in the first quarter of last year. The provision for loan losses for direct lending increased by approximately $100,000 over the provision recorded in the first quarter of 2013. During the 2014 first quarter, the company repaid bank lenders for certain defaulted loans it had guaranteed but anticipates it will recover most of the repayment amounts within the current year and that default repayments will decrease in subsequent quarters.

The current year first quarter was also impacted by a reduction of approximately $113,000 in commissions and fees from the company's traditional loan guarantee service, mainly the result of a transition from CCC's traditional guarantee services to an online guarantee services platform operated by the Finance Office of Jiangsu Province. The Company believes this new state-owned portal will generate commissions and fees for loan guarantees more than double those derived from CCC's traditional guarantee services.

In addition to the state-owned platform, CCC's wholly-owned subsidiary, Pride Lending Club, has begun operating its own P2P platform to match borrowers with lenders and guarantors. Pride Lending Club does not use its own capital to make loans on the P2P platform and therefore is not exposed to any credit risk. In certain transactions, Wujiang Luxiang may act as a guarantor for loans on the P2P platform and will make provisions for such guarantee services in accordance with the methods for its traditional guarantee services.

The company also announced the closing of its recently completed secondary public offering of common shares and warrants. Net proceeds of approximately $5.5 million will be used to fund the operations of CCC's wholly-owned subsidiary, Pride Financial Leasing (PFL), which will lease machinery and equipment to government and commercial entities across China.

CCC chief executive Mr. Huichun Qin said that funds derived from the secondary offering are expected to be deployed by PFL by the end of the current quarter and that the subsidiary is already in discussions regarding several promising leasing opportunities. He said that CCC is permitted to further fund PFL with bank loans up to ten times the total of PFL's registered capital.

Mr. Qin added that he expects "significant incremental revenue" from both PFL and Pride Lending Club that will contribute to improved operating results for the balance of 2014. He noted that these two subsidiaries are not limited to operating in Jiangsu Province, but instead offer CCCR, for the first time, the opportunity to target customers nationwide.

Notice Regarding Secondary Public Offering

The offering of these securities is made only by means of a prospectus. A registration statement relating to the shares of common stock has been declared effective by the Securities and Exchange Commission on May 7, 2014. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Copies of the final prospectus relating to the offering may be obtained for free by visiting the U.S. Securities and Exchange Commission website at

About China Commercial Credit

China Commercial Credit (, founded in 2008, provides business loans and loan guarantee services to more than 260 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.

Utilizing proceeds of the recently completed secondary public offering, the company intends to commence its financial leasing business. It also recently launched a peer-to-peer online lending platform designed to pair SME borrowers with willing lenders.

Investors wishing to receive CCC's corporate communications as they become available may go to and register under Email Alerts. The company's blog, "From The CEO," also appears at the same site. Each new blog post will be listed under Asia Voice at and announced on Asia IR/PR's twitter account @Asia_IRPR - where readers may link directly to the post.

The company's 2014 first quarter report on Form 10-Q will be available online at or by visiting the investor relations section of the China Commercial Credit website at

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 May 9, 2014 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

                                                   March 31,   December 31,
                                                     2014          2013
Cash                                             $  5,197,772  $  9,405,865
Restricted cash                                     7,202,559    10,784,960
Loans receivable, net of allowance for loan
 losses $1,948,400 and $1,375,948 for March 31,
 2014 and December 31, 2013, respectively          87,350,379    88,827,465
Due from non-controlling shareholder                1,143,886             -
Interest receivable                                 1,706,950     1,124,734
Tax receivable, net                                 1,072,339       820,526
Property and equipment, net                           224,941       254,795
Guarantee paid on behalf of guarantee service
 customers                                          5,447,488     1,082,486
Other assets                                          763,801       702,617
Total Assets                                     $110,110,115  $113,003,448

Short-term bank loans                            $ 16,225,337  $ 16,360,721
Deposits payable                                    6,893,294     9,659,362
Unearned income from financial guarantee
 services                                             208,400       482,029
Accrual for financial guarantee services              891,434       588,740
Other current liabilities                             205,512       629,073
Deferred tax liability                                330,856       333,617
Total Liabilities                                  24,754,833    28,053,542

Shareholders' Equity
Series A Preferred Stock (par value $0.001 per
 share, 1,000,000 shares authorized at March 31,
 2014 and December 31, 2013, respectively; nil
 and nil shares issued and outstanding at March
 31, 2014 and December 31, 2013, respectively)   $          -  $          -
Series B Preferred Stock (par value $0.001 per
 share, 5,000,000 shares authorized at March 31,
 2014 and December 31, 2013, respectively; nil
 and nil shares issued and outstanding at March
 31, 2014 and December 31, 2013, respectively)              -             -
Common stock (par value $0.001 per share,
 100,000,000 shares authorized; 10,446,426 and
 10,430,657 shares issued and outstanding at
 March 31, 2014 and December 31, 2013,
 respectively)                                         10,446        10,431
Subscription receivable                                (1,062)       (1,062)
Additional paid-in capital                         52,823,462    52,704,107
Statutory reserve                                   5,628,451     5,442,150
Retained earnings                                  21,208,021    20,300,689
Accumulated other comprehensive income              5,677,523     6,493,591
Total Shareholders' Equity                         85,355,282    84,949,906
Total Liabilities and Shareholders' Equity       $110,110,115  $113,003,448

                        CHINA COMMERCIAL CREDIT, INC

                                                     For the Three Months
                                                           March 31,
                                                       2014         2013
                                                   (Unaudited)  (Unaudited)
Interest income
Interests and fees on loans                        $ 2,856,474  $ 2,912,078
Interests on deposits with banks                        42,448       97,167
Total interest and fees income                       2,898,922    3,009,245

Interest expense
Interest expense on short-term bank loans             (245,190)    (306,155)
Net interest income                                  2,653,732    2,703,090

Provision for loan losses                             (588,180)    (488,216)
Net interest income after provision for loan
 losses                                              2,065,552    2,214,874

Commissions and fees on financial guarantee
 services                                              298,310      411,209
Under/(over) provision on financial guarantee
 services                                             (309,853)      44,170
Commission (loss)/income and fees on guarantee
 services, net                                         (11,543)     455,379

Net Revenue                                          2,054,009    2,670,253

Non-interest income
Government incentive                                         -       25,775
Other non-interest income                              120,960            -
Total non-interest income                              120,960       25,775

Non-interest expense
Salaries and employee surcharge                       (186,135)    (197,944)
Rental expenses                                        (65,750)     (64,037)
Business taxes and surcharge                          (112,612)    (114,447)
Other operating expenses                              (532,114)    (450,864)
Total non-interest expense                            (896,611)    (827,292)

Income Before Taxes                                  1,278,358    1,868,736
Income tax expense                                    (184,725)    (298,868)
Net Income                                           1,093,633    1,569,868

Earnings per Share- Basic and Diluted              $     0.105  $     0.174

Weighted Average Shares Outstanding-Basic and
 Diluted                                            10,434,862    9,000,000

Net Income                                           1,093,633    1,569,868
Other comprehensive income
Foreign currency translation adjustment               (807,627)     371,361
Comprehensive Income                               $   286,006  $ 1,941,229

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