Business Context and Reporting Period
This Form 6-K filing by China Internet Nationwide Financial Services Inc. (CIFS) covers the month of July 2018. The document serves as a business update following the company's "Fintech GO 2018" conference held on June 28, 2018. CIFS, headquartered in Beijing, operates as a financial advisory services provider and financial technology company, primarily serving small-to-medium enterprises (SMEs).
Key Financial Metrics
The filing references historical performance for 2017 but does not provide specific financial statements, cash flow data, debt levels, or liquidity metrics for the current reporting period.
- 2017 Revenue Growth: Increased by 59% compared to 2016.
- 2017 Net Income Growth: Increased by 73% compared to 2016.
- Factoring Credit Agreement: Signed a revolving factoring credit agreement of RMB 100 million (approximately $15.7 million) with Sino Pharma Business Factoring Co., Ltd.
- Projected Revenue Contribution: The new factoring business line is expected to account for at least 25% of total revenue in 2018.
Material Changes and Strategic Shifts
Management characterizes 2018 as a "transitional year" as the company shifts from a traditional financial service provider to a FinTech company. Key strategic developments include:
- Supply Chain Financing: Launched in October 2017, focusing on the pharmaceutical sector to reduce financing costs for SMEs.
- AnyTrust Acquisition: Completed in November 2017; launched "AnyInfo," a vertical search engine and big data platform covering over 28 million enterprises in China.
- Intelligent Research Platform (IRP): Launched in April 2018, utilizing AI, blockchain, and machine learning to serve financial institutions.
Guidance, Outlook, and Risks
Management expects FinTech products to become the primary catalyst for future growth. The strategy involves expanding legacy high-margin advisory services while simultaneously developing big data platforms for SMEs, state-owned enterprises, and financial institutions. The filing includes standard forward-looking statement disclaimers, noting that actual results may differ materially due to unknown risks and uncertainties. No specific numerical guidance for 2018 revenue or earnings was provided in this text.
Investor Verification Checklist
- Verify the actual revenue contribution of the factoring business against the stated target of at least 25% of total 2018 revenue.
- Confirm the commercial traction and user adoption rates of the AnyInfo platform and the IRP beta version.
- Review subsequent filings for specific 2018 financial results to assess the impact of the "transitional" strategy on profitability.
- Monitor the status of the RMB 100 million revolving credit facility and its utilization in the pharmaceutical sector.