China Finance Online Co. (JRJC) Stock Explodes Upon Release of Q3 Results

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China Finance Online Co. (ADR) (NASDAQ:JRJC) shares are trading up huge in pre-market hours this morning, after the company released very impressive third quarter financial results late Tuesday. The only United States-listed online Chinese financial infomation company saw revenues for the Third Quarter 2015 increase 74.8% year-over-year and an astounding 59.9% sequentially (compared to Q2). Net revenues totaled $37 million for the quarter.

China Finance Online Co. (ADR) (NASDAQ:JRJC), for those of you unfamiliar with the company, runs websites JRJ.com, and Stockstar.com. Their results this quarter came as a surprise to many investors who were expecting similar results to Q2.

Shares of China Finance Online Co. (ADR) (NASDAQ:JRJC) are trading up over 45% in pre-market hours this morning, and the stock closed at $4.56 during the last trading session. It is down 15.56% since May 13, 2015 and is downtrending. It has underperformed the S&P500 by 11.88%.

China Finance Online Co. Limited is a Web financial services firm in China. The company has a market cap of $103.06 million. The Firm provides Chinese retail investors with online access to securities and commodities trading services, wealth management products, securities investment advisory services, as well as financial database and analytics services to institutional customers. It has 29.2 P/E ratio. The Firm operates through three divisions: precious metals trading services, which provides services, such as precious metals spot trading, silver product sales, online silver trading and financial investment advisory services; online financial information and advisory service, and other related services in the People’s Republic of China, and Hong Kong brokerage services, which provides brokerage and related services to its customers.

“I am pleased to see our top and bottom lines continue to increase significantly,” said CEO Zhiwei Zhao. “And we begin to see encouraging progress from our two most exciting growth drivers, iTouGu and Yinglibao. We further streamlined our business and freed up additional resources that will allow us to reinvest in and fully focus on developing both iTouGu and Yinglibao. As a result, iTouGu grew rapidly during the quarter, and as of September 30, 2015 it had over 3.5 million activated users and over 2,000 investment advisors. iTouGu’s first nationwide investment masters tournament that we just concluded helped to increase its exposure and appeal to individual investors seeking professional advice and helped to attract a large number of investment advisors from domestic securities firms to our platform. Yinglibao also grew, in line with our expectations. As these businesses mature, we expect to implement monetization initiatives which will help improve our financial prospects.”

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