Td Holdings, Inc. (NASDAQ:GLG)

BEIJING, March 12, 2020 /PRNewswire/ -- Bat Group, Inc. (Nasdaq: GLG) (the "Company"), announced today that that the Company has changed its name to TD Holdings, Inc., with an estimated marketplace effective date of March 13, 2020.

The Company had initially changed its name in 2019 from China Commercial Credit, Inc. to Bat Group, Inc. to better reflect our business since we became a used luxurious car leasing business operating in China after the disposition of our micro-lending business in July 2018.

In November 2019, the Company began the process of expanding its business to include commodities trading and officially entered into the commodities trading business in January 2020. So as to avoid any negative effects due to the Company's current name, the board of directors of the Company have decided to change the Company's name to TD Holdings, Inc., which better represents our current focus on the new commodities trading business. The letter "T" in the name representing Chinese character for "Bronze", indicating the Company's focus on the commodities trading business, and particularly on the trading of nonferrous metals such as bronze as the main direction of the Company's business in the future.

BEIJING, Dec. 13, 2019 /PRNewswire/ -- Bat Group, Inc. (Nasdaq: GLG) (the "Company"), is pleased to announce that it has regained compliance with Nasdaq's minimum bid price requirement.

On December 11, 2019, the Company received a written notification from the Nasdaq Stock Market Listing Qualifications Staff, indicating that the Company has regained compliance with the bid price requirement for continued listing on the Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) based on the closing bid price of the Company's common stock being at $1.00 per share or greater for 10 consecutive business days from November 26 to December 10, 2019.

As disclosed in the Company's Current Report on Form 8-K filed on November 26, 2019, the Company entered into a set of variable interest entity agreements with Huamucheng Trading Co., Ltd. and its shareholders on November 22, 2019.  The Company plans to start a bulk commodity trading business via Huamucheng. The Company expects that the new business will help increase its revenue and enhance earnings. "We plan to put more resources into the new bulk commodity trading business if it shows satisfactory performance," said COO, Renmei Ouyang.

Third Quarter 2019 Financial Results

• Income from operating lease increased by 301% to $0.56 million, from $0.14 million for the three months ended September 30, 2018.
  
• Net loss was $0.39 million, as compared with net loss of $0.64 million for the three months ended September 30, 2018.
  
• Basic and diluted loss per share was $0.05, as compared with basic and diluted loss per share of $0.13 for the three months ended September 30, 2018.

Mr. Jiaxi Gao, CEO and President of Bat Group, Inc., comments, "We are pleased to report our financial results for the three and nine months ended September 30, 2019. For the nine months ended September 30, 2019, we generated income of $1,505,508 from operating lease, an increase of $1,267,931 from $237,577 for the nine months ended September 30, 2018. The increase was a result of our continuous efforts in growing our luxurious car rental business. We will continue to allocate our resources into our growth as we plan to increase our inventory of high-end cars and expand our operations into other cities in China. We are optimistic that customers will respond positively to our brand and high-quality services as we continue our expansion."

Mr. Jiaxi Gao, CEO and President of Bat Group, Inc., comments, "We are pleased to report our financial results for the three and nine months ended September 30, 2019. For the nine months ended September 30, 2019, we generated income of $1,505,508 from operating lease, an increase of $1,267,931 from $237,577 for the nine months ended September 30, 2018. The increase was a result of our continuous efforts in growing our luxurious car rental business. We will continue to allocate our resources into our growth as we plan to increase our inventory of high-end cars and expand our operations into other cities in China. We are optimistic that customers will respond positively to our brand and high-quality services as we continue our expansion."

NEW YORK, May 21, 2019 (GLOBE NEWSWIRE) -- China Bat Group, Inc. (the “Company”) (GLG), an emerging used luxurious car rental service provider headquartered in Beijing, China, announced today it has entered into a securities purchase agreement with certain accredited investors to purchase approximately $1.5 million worth of its common stock in a registered direct offering and warrants to purchase common stock in a concurrent private placement.

Under the terms of the securities purchase agreement, the Company has agreed to sell 1.44 million shares of its common stock. In a concurrent private placement, the Company has agreed to issue unregistered warrants to purchase up to approximately 1.08 million shares of common stock. The warrants will be exercisable after 6 months of the date of issuance and have an exercise price of $1.32. The warrants will expire 5.5 years from the date of issuance. The purchase price for one share of common stock and a corresponding warrant will be $1.05. In addition, the Company agreed to reduce the exercise price of the warrants issued on April 15, 2019 from $2.20 to $1.32. The gross proceeds to the Company from the registered direct offering and concurrent private placement are estimated to be approximately $1.5 million before deducting the placement agent’s fees and other estimated offering expenses. The registered direct offering and concurrent private placement are expected to close on or about May 23, 2019, subject to the satisfaction of customary closing conditions.

First Quarter 2019 Financial Results

• Income from operating lease was $0.40 million, compared with nil for the first quarter of 2018.
• Basic and diluted loss per share was $0.354, compared with $0.097 for the first quarter of 2018.

Mr. Jiaxi Gao, CEO and President of China Bat Group, Inc., comments, “We are pleased to announce our financial results for the first quarter of fiscal year 2019. Our income from operating lease increased sequentially to $0.4 million for the first quarter of 2019 from $0.25 million in fourth quarter of 2018, as our luxury car leasing business has continued to expand since its inception in May 2018.”

Mr. Gao continued, “We will continue to execute our growth strategy to discover high growth opportunities in the luxurious car rental market to meet the demand for brand name luxurious cars while maintaining high standards of industry transparency and information privacy in our promotional efforts.”

BEIJING, April 12, 2019 /PRNewswire/ -- China Bat Group, Inc. (Nasdaq: GLG) (the "Company"), an emerging used luxurious car rental service provider headquartered in Beijing, China, today announced that on April 4, 2019 the Company received a court order preliminarily approving the Stipulation of Settlement (the "Stipulation") entered into on January 18, 2019 in the shareholder derivative action filed in the U.S. District Court Southern District of New York, Kodali v. Qin, et al., Case No. 1:15-00806 (the "Derivative Litigation").

Pursuant to the Stipulation, the Company will adopt certain corporate governance measures and procedures, and the Company's insurer will pay $82,500 to the plaintiff's counsel and a service award of $1,000 to the plaintiff. Under the settlement, the settling parties intend to fully, finally, and forever compromise, resolve, discharge, and settle the released claims and to result in the dismissal of the Derivative Litigation with prejudice, upon the terms and subject to the conditions set forth in the Stipulation.

On April 4, 2019, the Court issued an order preliminary approving the proposed settlement and providing for the notice of the settlement to be made to the Company's shareholders. The full Notice of Proposed Settlement of Derivative Action and Stipulation and Agreement of Settlement are available on the Company's Investor Relations page (http://ir.imbatcar.com/).

NEW YORK, April 11, 2019 (GLOBE NEWSWIRE) -- China Bat Group, Inc. (the “Company”) (NASDAQ:GLG), an emerging used luxurious car rental service provider headquartered in Beijing, China, announced today it has entered into a securities purchase agreement with certain accredited investors to purchase approximately $3.7 million of its common stock in a registered direct offering and warrants to purchase common stock in a concurrent private placement.

Under the terms of the securities purchase agreement, the Company has agreed to sell 1.68 million shares of its common stock. In a concurrent private placement, the Company has agreed to issue unregistered warrants to purchase up to approximately 1.68 million shares of common stock. The warrants will be exercisable immediately following the date of issuance and have an exercise price of $2.2. The warrants will expire 5 years from the earlier of the date on which the shares of common stock issuable upon exercise of the warrants may be sold pursuant to an effective registration statement or may be exercised on a cashless basis and be immediately sold pursuant to Rule 144. The purchase price for one share of common stock and a corresponding warrant will be $2.2. The gross proceeds to the Company from the registered direct offering and concurrent private placement are estimated to be approximately $3.7 million before deducting the placement agent’s fees and other estimated offering expenses. The registered direct offering and concurrent private placement are expected to close on or about April 15, 2019, subject to the satisfaction of customary closing conditions.

BEIJING, April 10, 2019 (GLOBE NEWSWIRE) -- China Bat Group, Inc. (Nasdaq: GLG) (the "Company"), an emerging used luxurious car rental service provider headquartered in Beijing, China, today announced that the Company, through its wholly owned subsidiary Beijing Tianxing Kunlun Technology Co., Limited, entered into a strategic cooperation agreement (the “Agreement”) with Liten Group Co., Ltd. (Liten Group), a private company specializing in high-end automobile retail and operation of its automobile theme park, Dream Factory.

Pursuant to the Agreement signed on April 10, 2019, both parties agreed to establish a comprehensive long-term strategic partnership in the fields of automobile sourcing channels, automobile finance and car rental.

As part of the Agreement, both parties expect to jointly use their own advantages to provide all-round business support to each other, and jointly promote the upgrade of the high-end car rental industry chain through business cooperation and innovation. The scope of cooperation covers, but is not limited to business communication, technical support, marketing and resource sharing. The Agreement is effective for 2 years.

Mr. Jiaxi Gao, CEO and President of China Bat Group, Inc., comments, “We are pleased to partner with the Liten Group in a long-term strategic relationship as we leverage our Batcar brand and digital platform to provide a unique experience for luxurious car rentals. The Liten Group has consistently been on the forefront of trends in the automotive industry as an established award-winning industry player and we believe Liten Group’s trust in us is a testament to our capabilities and an exciting privilege for us.”

BEIJING, April 05, 2019 (GLOBE NEWSWIRE) -- China Bat Group, Inc. (Nasdaq: GLG) (the "Company"), an emerging used luxurious car rental service provider headquartered in Beijing, China, today announced its financial results for the fiscal year ended December 31, 2018.

The Company began to operate its current used luxurious car leasing business in China, after it disposed its direct loans, loan guarantees and financial leasing services in July 2018. Our mission is to fill the significant void in the market place by serving business professionals, luxury car enthusiasts and other customers with high-quality, professional and personalized luxury car rental services, which has been significantly under-served due to the growing demand from the country’s rapid expansion of the middle class. Our current operations consist of renting out our luxurious pre-owned automobiles in the municipalities of Beijing, Shanghai, Tianjin, as well as in Hebei province.

Mr. Jiaxi Gao, the Chief Executive Officer of the Company, stated, “We are pleased to report our financial results for fiscal year 2018. Over the past year we have worked hard to lay the groundwork to capitalize on the luxury car rental market in China as we improved our internal processes and focused on our operations.”

Mr. Gao continued, “In 2018, the company, as the first luxurious car rental company listed on Nasdaq as far as we know, quickly gained brand awareness. Through the combination of online promotion search channels and our peer companies’ resources, we maintained rapid growth in quarterly revenue. In 2019, we plan to continue to increase our inventory and variety of luxurious cars and to expand our operations into other cities such as Chengdu, Shenzhen, Sanya, and Xiamen. We look forward to exploring the high growth opportunities in the car rental market and becoming the market leader of high-end car rental in China."

Fiscal Year 2018 Financial Highlights

Income from operating lease reached $0.49 million, compared with nil for the fiscal year 2017. Income from operating lease for the fourth quarter of fiscal year 2018 was $0.25 million, representing an increase of 77.83% from the third quarter of fiscal year 2018.
Net income was $7.65 million, compared with net loss of $10.70 million for the fiscal year 2017, the first reported profit in the past 5 years.
Net income from discontinued operations was $9.97 million, compared with net loss from discontinued operations of $6.24 million for the fiscal year 2017.
Basic and diluted earnings per share was $0.332, compared with basic and diluted loss per share of $0.598 for the fiscal year 2017.
Shareholders’ equity was $2.80 million as of December 31, 2018, compared with shareholders’ deficit of $4.57 million as of December 31, 2017.
Fiscal Year 2018 Financial Results

Income from operating lease

Income from operating lease was $0.49 million for the fiscal year ended December 31, 2018. The operating lease income is recognized on a straight-line basis over the scheduled lease term. Because the Company just launched its new business of lease services of used luxury cars in May 2018 and it did not have any operations in this business, the Company did not generate any revenue from the car leasing business for the fiscal year ended December 31, 2017.

Cost of operating lease assets

The cost of operating lease assets represents the depreciation expenses of used luxurious cars which were under operating lease. The Company charged depreciation expenses of idle used luxurious cars into other operating expenses. For the fiscal year ended December 31, 2018, the Company charged depreciation expenses of $71,252 and $38,968 to “cost of operating lease assets” and “other operating expenses,” respectively. The net depreciation expense on operating lease assets was nil for the fiscal year ended December 31, 2017.

Operating Expenses

Operating expenses primarily consisted of salary and employee surcharge, office rental expense, business tax and surcharge, changes in fair value of other noncurrent liabilities, professional service fees, and other office supplies. Operating expenses decreased by $1.68 million, or 37%, to $2.82 million for the fiscal year ended December 31, 2018 from $4.50 million for the same period of last year. The decrease was mainly attributable to net effects of the increase of car expenses of $0.33 million, car maintenance expenses of $0.03 million and impairment losses of $0.18 million, all relating to the used luxurious car business, netting off against the decrease of legal and consulting expenses of $2.19 million, $2.84 million of which was in relation to shares issued to executive officers and consultants.

Net income (loss) from discontinued operations

For the fiscal year ended December 31, 2018, the net income from discontinued operations was $9.97million, compared with net loss from discontinued operations of $6.24 million for the same period of last year. The net income from discontinued operation was comprised of a net income of $0.28 million from the discontinued operations of microcredit service against a gain of $9.69 million from disposal of the discontinued operations of microcredit service, and a net loss of $0.13 million from discontinued operations of Beijing Youjiao against a gain of $0.13 million from termination VIE agreements with Beijing Youjiao.

Net income (loss)

Net income was $7.65 million for the fiscal year ended December 31, 3018, compared with net loss of $10.70 million for the same period of last year. Basic and diluted earnings per share was $0.332 for the fiscal year ended December 31, 2018, compared with basic and diluted loss per share of $0.598 for the same period of last year.

Financial Conditions

As of December 31, 2018, the Company had cash and cash equivalents of $1.48 million, compared with $1.36 million as of December 31, 2017.

Net cash used in operating activities was $0.09 million for the fiscal year ended December 31, 2018, compared to $1.18 million for the same period of last year.

Net cash used in investing activities was $3.27 million for the fiscal year ended December 31, 2018, compared to $0.46 million for the same period of last year.

Net cash provided by financing activities was $3.81 million for the fiscal year ended December 31, 2018, compared to $2.26 million for the same period of last year.

BEIJING, March 27, 2019 (GLOBE NEWSWIRE) -- China Bat Group, Inc. (GLG) (the "Company"), an emerging used luxurious car rental service provider headquartered in Beijing, China, today announced that the Company has entered the Shanghai market.

The Company’s business operations can be divided into 7 parts including pre-lease preparation, car rental preparation, paperwork preparation, signing the contract, rent prepayment and deposit, delivery inspection as well as the guidance regarding driving the high-performance rental vehicles. This model of business operation will also be applicable in the Shanghai market, where the Company has officially begun its operations by leasing luxury vehicles to its peer companies.

Through the implementation of strict work norms and a rigorous risk management system, the Company has achieved effective control of its luxury car assets in Beijing and plans to become a benchmark of the industry in Shanghai.

Mr. Jiaxi Gao, CEO and President of China Bat Group, Inc., comments, “Following the success of our operations in Beijing, we have entered into the Shanghai luxury car rental market to take advantage of the large demand for luxurious car rental services among high net worth individuals in urban China. We believe our services offer a high tech and convenient method of luxurious car rental while ensuring the highest standards of safety and risk management to our customers.”

BEIJING, March 19, 2019 (GLOBE NEWSWIRE) -- China Bat Group, Inc. (GLG) (the "Company"), an emerging used luxurious car rental service provider headquartered in Beijing, China, today announced that the Company believes it is well-positioned to target the luxury car rental service’s exponential market growth in China.

The Company operates a luxurious car business that is conducted under the brand name “BatCar” through the Company’s VIE entity, Tianxing Kunlun Technology Co. Ltd, from its headquarters in Beijing. After launching the “BatCar” brand, the Company believes it has captured the biggest luxury car rental market share in Beijing, China. The Company is committed to serving business professionals, luxury car enthusiasts and other customers, providing luxury car rental services. The Company intends to develop a luxurious car renting ecosystem which protects the users’ privacy and enhance safety. The Company’s current inventory covers multiple types of high-end car models, including: Rolls-Royce, Lamborghini, Ferrari, McLaren, Porsche, Land Rover, Mercedes-Benz, BMW and other brands. The Company currently offers its services in the Beijing-Tianjin-Hebei region and is expected to expand to other first- and second-tier cities within one year.

The Company operates a Business to Consumer (B2C) model, including online booking and offline pickup, to provide a simplified experience for customers. The Company, as the first luxury car service provider listed on Nasdaq, has released commercial advertisements to customers, and utilized the resources of its peer group and luxury car fan clubs to market its unique customer experience while increasing brand recognition. In terms of technology, the Company has core technology personnel with experience from Alibaba, Baidu, Meituan, Didi and other tech giants.

Mr. Jiaxi Gao, CEO and President of China Bat Group, Inc., comments, “The concentration of luxury car rental users is very high, geographically and socially. We believe that future industry characteristics will develop from the base created by the current renting ecosystem. Our understanding is that in the future our services will be based more and more on the specific circumstances of our user group and we will attempt to organize and develop more high-end travel and comprehensive services including leasing cars and social events. With the continuous deepening of services and customer participation, we believe we will have the opportunity to develop a leading brand for domestic luxury car rental to provide quality services.”

Mr. Gao continued, “We will begin from Beijing-Tianjin-Hebei, with Shanghai, Hangzhou, Chengdu, Shenzhen, Sanya and Xiamen as the main cities to roll out our services and ultimately expand our network to cover the entire country.”

SUZHOU, China, Aug. 17, 2017 /PRNewswire/ -- China Commercial Credit, Inc. (CCCR) ("CCCR" or the "Company"), a microfinance company providing financial services to small-to-medium enterprises ("SMEs"), farmers and individuals in Jiangsu Province, today announced that it has entered into a stipulation and agreement of Settlement (the "Stipulation") to settle the securities class action litigation captioned In re China Commercial Credit Inc. Securities Litigation, Docket No. 1:15-cv-00557-ALC (S.D.N.Y.) (the "Securities Class Action"), pending against it in the United States District Court for the Southern District of New York (the "Court").

On June 1, 2017, following a final fairness hearing on May 30, 2017 regarding the proposed settlement, the Court entered a final judgment and order that: (i) dismisses with prejudice the claims asserted in the Securities Class Action against all named defendants in connection with the Securities Class Action, including the Company, and releases any claims that were or could have been asserted that arise from or relate to the facts alleged in the Securities Class Action, such that every member of the settlement class will be barred from asserting such claims in the future; and (ii) approves the payment of $220,000 in cash and the issuance of 950,000 shares of its common stock (the "Settlement Shares") to members of the settlement class. The Settlement Shares are exempt from registration under Section 3(a)(10) of the Securities Act of 1933, as amended. On July 28, 2017, the Court entered a clarifying order to specify the allocation of attorneys' fees in accordance with the Stipulation.

The settlement does not constitute any admission of fault or wrongdoing by the Company or any of the individual defendants.

SUZHOU, China, Aug. 9, 2017 /PRNewswire/ -- China Commercial Credit, Inc. (CCCR) ("CCCR" or the "Company"), a microfinance company providing financial services to small-to-medium enterprises ("SMEs"), farmers and individuals in Jiangsu Province, today announced that, it has entered into a share exchange agreement (the "Share Exchange Agreement") by and through its Board of Directors and majority shareholder dated August 9, 2017 with the equity holders of Sorghum Investment Holdings Limited ("Sorghum"), an Internet platform specializing in providing peer-to-peer lending services to individuals and small business owners in China. Pursuant to the Exchange Agreement, the Company has agreed to acquire all of the issued and outstanding equity interests of Sorghum in exchange for 152,586,795 shares of the Company's Common Stock (the "Acquisition"). Upon completion of the Acquisition, the Company will own 100% of Sorghum, and will be a financial services group operating in both smart financing as well as microfinance sectors in China. It is anticipated, immediately upon completion of the Acquisition, the Company's existing shareholders will retain an ownership interest of approximately 12% of the Company and the selling Sorghum equity holders will own approximately 88% of the Company. The above ownership percentages do not take into account the Company's potential additional issuance of securities prior to closing of the Acquisition.

Completion of the transaction is subject to a number of conditions, including but not limited to, CCCR's shareholders' approval of the transaction, satisfaction of NASDAQ listing requirements, regulatory approvals, the appointment of person designated by Sorghum to the Board of Directors and the satisfaction of other customary closing conditions. There can be no assurance that the transaction will be completed as proposed or at all.

Mr. Leo Yi, the Chief Financial Officer and Director of CCCR stated: "The Special Committee consisting of solely independent directors as well as the Board of Directors of CCCR have unanimously determined that the Share Exchange Agreement and the transactions contemplated thereby, are advisable, fair to and in the best interests of the shareholders of the Company, and has therefore approved the Share Exchange Agreement and recommend our shareholders to vote for such transaction at the special shareholders meeting. We are very excited about the potential synergy of the two businesses which we believe will bring significant benefits to our shareholders."

Ms. Amy Darong Huang, the Chief Executive Officer and Chairwoman of Sorghum commented: "After building partnerships with Tencent and China Orient Asset Management, completion of our business combination with China Commercial Credit will be another historical milestone for us, allowing us to tap U.S. capital market, increase brand recognition, attract more international talents, expand market share and improve our competitiveness."

The description of the Acquisition contained herein is only a summary and is qualified in its entirety by reference to the Share Exchange Agreement, a copy of which will be filed by the Company with the Securities and Exchange Commission (the "SEC") as exhibits to a Report on Form 8-K.

SUZHOU, China, July 12, 2017 /PRNewswire/ -- China Commercial Credit, Inc. (NasdaqCM: CCCR) (the "Company"), a microfinance company providing financial services to small-to-medium enterprises ("SMEs"), farmers and individuals in Jiangsu Province, is pleased to announce that it has entered into a non-binding Letter of Intent ("LOI") with the parent company of Sorghum Investment Holdings Limited ("Sorghum"), an enterprise in the smart finance industry specializing in providing efficient and optimized financial solutions, online investment and match-for-loan services to individuals and small business owners in China.

Pursuant to the terms of the LOI, CCCR will acquire 100% of the outstanding shares of Sorghum. As the transaction proceeds, the Company will publicly disclose required information either through press releases or SEC filings, as appropriate.

Mr. Long Yi, the Chief Financial Officer and Director of CCCR stated: "Sorghum's outstanding performance, strong credibility and good reputation make it a leader in the smart finance industry. We believe this acquisition will expand our business into the smart finance industry and, as a result, can increase our shareholders' value.  We are also very excited about the business opportunities we could seek together with Sorghum in the financial services industry."

Ms. Amy Huang, the Chief Executive Officer and Chairwoman of Sorghum commented: "The combination of the two companies are meaningful synergies, as both of our companies agreed to implement a business strategy in conformity with China's Belt and Road ("B&R") national strategy. We hope to complement each other with our own accumulation in the industry and we take smart technology as the core to provide efficient and optimized financial solutions for individuals and small business owners.  This contemplated investment continues our focus to diversify strong industrial logic as well as build value for our shareholders by investing in this exciting field.  We look forward to leveraging our expertise in the smart finance industry to benefit CCCR's reputation as a NASDAQ-listed company."

Completion of the transaction is subject to due diligence investigations by the relevant parties, the negotiation and execution of a definitive share exchange agreement, satisfaction of the conditions negotiated therein including the approval of the Company's Board of Directors and shareholders, approval by NASDAQ of the post-transaction entity's new listing application, and the satisfaction of other customary closing conditions. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated.  Further, readers are cautioned that those portions of the LOI that describe the proposed transaction, including the consideration to be issued therein, are non-binding.

WUJIANG, China, Sept. 15, 2016 /PRNewswire/ -- China Commercial Credit, Inc. (CCCR) (the "Company"), a microfinance company providing financial services to small-to-medium enterprises (SMEs), farmers and individuals in Jiangsu Province, is pleased to announce that it has regained compliance with Nasdaq's minimum bid price requirement and market value of  listed securities requirement.

On July 6, 2016, China Commercial Credit, Inc. (the "Company") received a written notification from the NASDAQ Stock Market Listing Qualifications Staff indicating that the Company has regained compliance with the $1.00 minimum closing bid price requirement for continued listing on the NASDAQ Capital Market pursuant to NASDAQ Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement")  as the closing bid price of the Company's common stock has been at $1.00 per share or greater for at least 10 consecutive business days.

On September 12, 2016, the Company received another written notification from the NASDAQ Stock Market Listing Qualifications Staff indicating that the Company has regained compliance with the minimum market value of listed securities requirements for The NASDAQ Capital Market pursuant to Listing Rule 5550(b)(2)  (the " Market Value of Listed Securities Requirement") as the market value of Company's  listed securities has been $35,000,000 or greater for 10 consecutive business days.

Item 3.02 Unregistered Sales of Equity Securities.

On June 13, 2016, China Commercial Credit, Inc. (the “Company”) issued 2,439,025 shares (the “Shares”) of the Company’s Common Stock, par value $0.001 per share, pursuant to certain Stock Purchase Agreement (the “SPA”) dated May 26, 2016 to certain accredited and sophisticated investor. The Shares issued in the Offering are exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder.

Item 1.01    Entry into a Material Definitive Agreement

On May 26, 2016, China Commercial Credit, Inc. (the “Company”) entered into a Stock Purchase Agreement (the “SPA”) with certain accredited and sophisticated investor (the “Purchaser”) in connection with a private placement offering (the “Offering”) of 2,439,025 shares (“Shares”) of common stock, par value $0.001 per share, of the Company. The purchase price per share of the Offering is $0.41. The transaction contemplated in the SPA shall close upon satisfaction of certain closing condition including NASDAQ’s approval of the application for issuance of the Shares.

The Shares issued in the Offering are exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder.

The net proceeds to the Company from the Offering will be approximately $997,000. The proceeds may be used for general corporate purposes.

Pursuant to the terms of the SPA, the Purchaser agrees until the earlier occurrence of (i) the Company executing definitive binding documents for a Qualified Transaction and the Qualified Transaction having been closed, or (ii) the first anniversary of the date of the SPA (such earlier date, the “Lock-Up Expiration Date” and such period as the “Lock-up Period”), the Purchaser shall not, directly or indirectly, issue, sell, offer or agree to sell, grant any option for the sale of, pledge, enter into any swap, derivative transaction or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any shares of Common Stock acquired and beneficially owned by the Investor (whether any such transaction is to be settled by delivery of common shares, other securities, cash or other consideration) or otherwise dispose (or publicly announce the Investor’s intention to do any of the foregoing) of, directly or indirectly, any such Shares, subject to certain exception. A “Qualified Transaction” means any transaction which results in the Company completing (i) public or private offering with an aggregated gross proceeds of $20,000,000; (ii) merger with or acquisition by an entity with a market value or enterprise value higher than that of the Company as of December 31, 2015; or (iii) any merger with, or sale of assets to a company that results in such entity owning more than 50% of the Company’s capital stock or owning more than 50% of the Company’s assets as of December 31, 2015.

The SPA also contains customary representation and warranties of the Company and the Purchaser.

The SPA is filed as Exhibits 10.1 to this Current Report on Form 8-K and such document is incorporated herein by reference. The foregoing is only a brief description of the material terms of the SPA, and does not purport to be a complete description of the rights and obligations of the parties thereunder and is qualified in its entirety by reference to such exhibits.

CHINA COMMERCIAL CREDIT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) OPERATION

Item 8.01. Other Events.

On April 22, 2016, China Commercial Credit, Inc. (the “Company”) entered into a Stipulation and Agreement of Settlement (the “Stipulation”) to settle the securities class action litigation captioned In re China Commercial Credit Inc. Securities Litigation, Docket No. 1:15-cv-00557-ALC (S.D.N.Y.) (the “Securities Class Action”), which is pending against it in the United States District Court for the Southern District of New York (the “Court”). The Stipulation resolves the claims asserted against the Company and certain of its current and former officers and directors in the Securities Class Action without any admission or concession of wrongdoing or liability by the Company or the other defendants. The Stipulation also provides, among other things, a settlement payment by the Company of $225,000 in cash and the issuance of 750,000 shares of its common stock (the “Settlement Shares”) to the class members. The terms of the Stipulation are subject to approval by the Court following notice to all class members. The issuance of the Settlement Shares is expected to be exempt from registration pursuant to Section 3(a)(10) of the Securities Act of 1933, as amended.

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On April 20, 2016, China Commercial Credit, Inc. (the “Company”) received a written notice from The Nasdaq Stock Market (“Nasdaq”) stating that the Company is no longer in compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market. Nasdaq Listing Rule 5550(b)(1) requires listed companies to maintain stockholders’ equity of at least $2,500,000. In its Form 10-K for the period ended December 31, 2015, the Company reported stockholders’ equity of $860,661. Further, as of April 20, 2016, the Company did not meet the alternative compliance standards under Nasdaq Listing Rule 5550(b) of (i) a market value of listed securities of at least $35,000,000 or (ii) net income from continuing operations of $500,000 in its last completed fiscal year or in two of the last three fiscal years.

The notification letter has no immediate effect on the Company’s listing on the Nasdaq Capital Market. Nasdaq has provided the Company with 45 calendar days, or until June 6, 2016, to submit a plan to regain compliance with the minimum stockholders’ equity standard. If the Company’s plan to regain compliance is accepted, Nasdaq may grant an extension of up to 180 calendar days from the date of the notification letter to regain compliance. If its plan to regain compliance is not accepted, the Company will have the opportunity to appeal that decision to a Hearings Panel.

The Company intends to promptly evaluate options available to regain compliance and to timely submit a plan to regain compliance with Nasdaq’s minimum stockholders’ equity standard. There can be no assurance that the Company’s plan will be accepted or that, if it is, the Company will be able to regain compliance with the applicable Nasdaq listing requirements.

CHINA COMMERCIAL CREDIT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

Management Discussion and Analysis

Net Interest Income

Net interest income is equal to interest income we generated less interest expenses on short-term bank loans we incurred. The Company’s net interest income decreased by $3,795,370, or 60% to $2,485,088 during the year ended December 31, 2015, as compared to net interest income of $6,280,458 during the year ended December 31, 2014.

The interests and fees on loans, direct financing leases and deposits with banks decreased by $4,198,842, or 58% from $7,180,683 for the year ended December 31, 2014 to $2,981,841 the year ended December 31, 2015. The decrease is the combined effect of: (1) the charge-off of non-performing loans of approximately $7.1 million, leading to reversal of significant interest income of $2.6 million; (2) decrease in effective weighted average loan interest rate from 14.11% for the loan portfolio as of December 31, 2014 to 13.50% as of December 31, 2015; and (3) the decrease in the amount of monthly interest received. Compared to the same period last year, a substantial amount of borrowers choose to repay the principal and the interest due at the maturity of the loan term instead of making monthly interest payments. Both payments are permissible under the agreements we have with the borrowers.

Since the beginning of 2014, People’s Bank of China continued to withdraw a significant amount of liquidity from the market, which has made it even harder for SMEs to gain access to capital. The bank lenders usually require an old loan be paid in full upon maturity before they approve a new loan to the same borrower. Some SMEs have to borrow from so-called “underground” lenders, or shadow banks to repay the loans due to the banks. Additionally, the banks denied to extend new loans to some SMEs even after they made the full repayment for the loans due and satisfied other conditions. Management is concerned that the borrowers may use the proceeds from the loans we grant to them as a means of repayment to the other banks or even to the underground lenders, instead of using them in operations. Therefore, management decided to grant new loans in a more cautious manner. During the year ended December 31, 2015, we did not grant any loans but renewed 46 loans with an average loan size of $208,527, as compared to grant of 10 loans with an average loan size of $336,000 during the year ended December 31, 2014. As a result, the interest income generated during the year ended December 31, 2015 declined.

Due to the long-term nature of our restricted deposits with third party banks, we utilized these deposits as term deposits which in turn generated interest income on deposits with banks of $37,706 during the year ended December 31, 2015 as compared to $84,602 during the year ended December 31, 2014. Caused by the reduction of our traditional guarantee business with banks, we have closed several restricted deposit accounts with banks through which we provided guarantee services to our customers. As a result, the interest income on deposits with bank was insignificant during the year ended December 31, 2015 and 2014, respectively.

Interest expense represents interest incurred on short-term bank loans. The interest incurred on short-term bank loans decreased by $403,472 or 45%. This was mainly caused by a decrease of total bank borrowing balance by $8.8 million from $11.4 million as of December 31, 2014 to $2.6 million as of December 31, 2015. During the year ended December 31, 2015, the interest expense related to the loans from banks was $496,753.

Item 8.01. Other Events.

As previously reported in a Current Report on Form 8-K filed by China Commercial Credit, Inc. (the “Company”) on September 3, 2015, the Company received a written notice from The Nasdaq Stock Market (“Nasdaq”) dated August 27, 2015 stating that the Company is no longer in compliance with the $1.00 minimum closing bid price requirement for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”). The Nasdaq notice provided that if by February 23, 2016, the Company did not achieve compliance with the Minimum Bid Price Requirement but (a) is in compliance with all other listing standards of the Nasdaq Capital Market (other than the Minimum Bid Price Requirement), and (b) the Company provides written notice of its intention to cure the Minimum Bid Price Requirement deficiency during a second compliance period, Nasdaq may grant the Company an additional compliance period of 180 days to comply with the Minimum Bid Price Requirement. On February 18, 2016, the Company provided written notice of its intention to cure the bid price deficiency during a second compliance period. On February 24, 2016, Nasdaq issued a notice indicating that the Company’s compliance period has been formally extended until August 22, 2016. However, if the Company does not regain compliance by August 22, 2016, Nasdaq will provide written notification that the Company’s securities will be delisted. At that time, the Company may appeal Nasdaq’s delisting determination to a Hearings Panel.

CHINA COMMERCIAL CREDIT, INC.

CONSOLIDATED STATEMENTS OF OPERATION AND COMPREHENSIVE LOSS

Management Discussion and Analysis

Net Interest Income

Net interest income is equal to interest income we generated less interest expenses on short-term bank loans we incurred. The Company’s net interest income decreased by $1,155,915, or 95% to $66,672 during the three months ended September 30, 2015, as compared to net interest income of $1,222,587 during the three months ended September 30, 2014.

The interest and fees on loans, direct financing leases and deposits with banks decreased by $1,302,193, or 89% from $1,465,745 for the three months ended September 30, 2014 to $163,552 for the three months ended September 30, 2015. The decrease is the combined effect of: (1) The Company charged off non-performing loans of approximately $41.1 million, leading to significant interest income charged off as well; (2) decrease in effective weighted average loan interest rate from 14.57% for the loan portfolio as of September 30, 2014 to 13.21% as of September 30, 2015 due to the mandatory requirement promulgated by Jiangsu Finance Bureau in June of 2013 that effective from October 1, 2013 the maximum interest rate a microcredit company in Jiangsu province is permitted to charge shall be fifteen percent (15%) compared to eighteen percent (18%) previously permitted; and (3) the decrease in the amount of monthly interest received. Compared to the same period last year, a substantial amount of borrowers choose to repay the principal and the interest due at the maturity of the loan term instead of making monthly interest payments. Both payments are permissible under the agreements we have with the borrowers.

Since the beginning of 2014, People’s Bank of China continued to withdraw a significant amount of liquidity from the market, which has made it even harder for SMEs to gain access to capital. The bank lenders usually require an old loan be paid in full upon maturity before they approve a new loan to the same borrower. Some SMEs have to borrow from so-called “underground” lenders, or shadow banks to repay the loans due to the banks. Additionally, the banks denied to extend new loans to some SMEs even after they made the full repayment for the loans due and satisfied other conditions. Management is concerned that the borrowers may use the proceeds from the loans we grant to them as a means of repayment to the other banks or even to the underground lenders, instead of using them in operations. Therefore, management decided to grant new loans in a more cautious manner. During the three months ended September 30, 2015, we did not grant any loans but renewed 26 loans with an average loan size of $463,000, as compared to grant of 10 loans with an average loan size of $402,000 during the three months ended September 30, 2014. Since the renewal was made in late September 2015 and the management has no intention to expand its direct loan business, the interest income generated during three months ended September 30, 2015 declined.

Due to the long-term nature of our restricted deposits with third party banks, we utilized these deposits as term deposits which in turn generated interest income on deposits with banks of $7,054 during the three months ended September 30, 2015 as compared to $7,843 during the three months ended September 30, 2014. Caused by the reduction of our traditional guarantee business with banks, we have closed several restricted deposit accounts with banks through which we provided guarantee services to our customers. As a result, the interest income on deposits with bank was insignificant during the three months ended September 30, 2015 and 2014, respectively.

Interest expense represents interest incurred on short-term bank loans. The interest incurred on short-term bank loans decreased by $146,278 or 60%. This was mainly caused by a decrease of total bank borrowing balance by $6.8 million from $11.4 million as of September 30, 2014 to $4.6 million as of September 30, 2015. During the three months ended September 30, 2015, the interest expense related to the loans from banks was $96,880.

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On August 27, 2015, China Commercial Credit, Inc. (the “Company”) received written notice from the Nasdaq Stock Market (“Nasdaq”) stating that the Company is no longer in compliance with the $1.00 minimum closing bid price requirement for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2). The notice has no immediate effect on the listing of the Company’s common stock, and its common stock will continue to trade on The Nasdaq Capital Market under the symbol “CCCR” at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has a grace period of 180 calendar days, or until February 23, 2016, to regain compliance with the minimum closing bid price requirement. To regain compliance, the closing bid price of the Company’s common stock must meet or exceed $1.00 per share for at least ten consecutive business days during this 180-day compliance period.

If the Company does not regain compliance with the minimum closing bid price requirement by February 23, 2016, Nasdaq may provide written notification to the Company that its securities will be subject to delisting. At that time, the Company may have alternatives to obtain an extension and/or avoid delisting, including an appeal of Nasdaq’s delisting determination to the Nasdaq Listing Qualifications Panel.

The Company intends to monitor the closing bid price of its common stock between now and February 23, 2016 and will consider the various options available to it if its common stock does not trade at a level that is likely to regain compliance.

CHINA COMMERCIAL CREDIT, INC.

CONSOLIDATED STATEMENTS OF OPERATION AND COMPREHENSIVE LOSS

Management Discussion and Analysis

Net Interest Income

Net interest income is equal to interest income we generated less interest expenses on short-term bank loans we incurred. The Company’s net interest income decreased by $676,988, or 47% to $757,729 during the three months ended June 30, 2015, as compared to net interest income of $1,434,717 during the three months ended June 30, 2014.

The interest and fees on loans, direct financing leases and deposits with banks decreased by $772,259, or 46% from $1,682,652 for the three months ended June 30, 2014 to $910,393 for the three months ended June 30, 2015. The decrease is the combined effect of: (1) The increase of non-performing loans aging over 90 days which leads to reversal of more interest income; (2) decrease in effective weighted average loan interest rate from 14.36% for the loan portfolio as of June 30, 2014 to 12.79% as of June 30, 2015 due to the mandatory requirement promulgated by Jiangsu Finance Bureau in June of 2013 that effective from October 1, 2013 the maximum interest rate a microcredit company in Jiangsu province is permitted to charge shall be fifteen percent (15%) compared to eighteen percent (18%) previously permitted; and (3) the decrease in the amount of monthly interest received. Compared to the same period last year, a substantial amount of borrowers choose to repay the principal and the interest due at the maturity of the loan term instead of making monthly interest payments. Both payments are permissible under the agreements we have with the borrowers.

Since the beginning of 2014, People’s Bank of China continued to withdraw a significant amount of liquidity from the market, which has made it even harder for SMEs to gain access to capital. The bank lenders usually require an old loan be paid in full upon maturity before they approve a new loan to the same borrower. Some SMEs have to borrow from so-called “underground” lenders, or shadow banks to repay the loans due to the banks. Additionally, the banks denied to extend new loans to some SMEs even after they made the full repayment for the loans due and satisfied other conditions. Management is concerned that the borrowers may use the proceeds from the loans we grant to them as a means of repayment to the other banks or even to the underground lenders, instead of using them in operations. Therefore, management decided to grant new loans in a more cautious manner. During the three months ended June 30, 2015, we did not grant any loans, as compared to 44 loans with an average loan size of $378,000 during the three months ended June 30, 2014, and as a result, the interest income declined substantially.

Due to the long-term nature of our restricted deposits with third party banks, we utilized these deposits as term deposits which in turn generated interest income on deposits with banks of $2,867 during the three months ended June 30, 2015 as compared to $9,093 during the three months ended June 30, 2014. The decrease was mainly due to the reduction of our traditional guarantee business with banks, and we have closed several restricted deposit accounts with banks through which we provided guarantee services to our customers. As of June 30, 2015, the balance of restricted cash was $1,231,268, a decrease of 37.9% from $1,983,285 as of December 31, 2014.

Interest expense represents interest incurred on short-term bank loans. The interest incurred on short-term bank loans decreased by $95,271 or 38%. This was mainly caused by a decrease of total bank borrowing balance by $5.2 million from $11.4 million as of June 30, 2014 to $6.2 million as of June 30, 2015. During the three months ended June 30, 2015, the interest expense related to the loans from banks was $152,664.

CHINA COMMERCIAL CREDIT, INC.

CONSOLIDATED STATEMENTS OF OPERATION AND COMPREHENSIVE INCOME/(LOSS)

Management Discussion and Analysis

Net Interest Income

Net interest income is equal to interest income we generated less interest expenses on short-term bank loans we incurred. The Company’s net interest income decreased by $1,539,972, or 58% to $1,113,760 during the three months ended March 31, 2015, as compared to net interest income of $2,653,732 during the three months ended March 31, 2014.

The interest and fees on loans, direct financing leases and deposits with banks decreased by $1,611,996, or 56% from $2,898,922 for the three months ended March 31, 2014 to $1,286,926 for the three months ended March 31, 2015. The decrease is the combined effect of: (1) The increase of non-performing loans aging over 90 days which leads to reversal of more interest income; (2) decrease in effective weighted average loan interest rate from 14.40% for the loan portfolio as of March 31, 2014 to 12.84% as of March 31, 2015 due to the mandatory requirement promulgated by Jiangsu Finance Bureau in June of 2013 that effective from October 1, 2013 the maximum interest rate a microcredit company in Jiangsu province is permitted to charge shall be fifteen percent (15%) compared to eighteen percent (18%) previously permitted; and (3) the decrease in the amount of monthly interest received. Compared to the same period last year, a substantial amount of borrowers choose to repay the principal and the interest due at the maturity of the loan term instead of making monthly interest payments . Both payments are permissible under the agreements we have with the borrowers.

Since the beginning of 2014, People’s Bank of China continued to withdraw a significant amount of liquidity from the market, which has made it even harder for SMEs to gain access to capital. The bank lenders usually require an old loan be paid in full upon maturity before they approve a new loan to the same borrower. Some SMEs have to borrow from so-called “underground” lenders, or shadow banks to repay the loans due to the banks. Additionally, the banks denied to extend new loans to some SMEs even after they made the full repayment for the loans due and satisfied other conditions. Management is concerned that the borrowers may use the proceeds from the loans we grant to them as a means of repayment to the other banks or even to the underground lenders, instead of using them in operations. Therefore, management decided to grant new loans in a more cautious manner. During the three months ended March 31, 2015, we granted 35 loans and the average loan size was approximately $266,000, as compared to 44 loans with an average loan size of $344,000 during the three months ended March 31, 2014, and as a result, the interest income declined.

Due to the long-term nature of our restricted deposits with third party banks, we utilized these deposits as term deposits which in turn generated interest income on deposits with banks of $5,457 during the three months ended March 31, 2015 as compared to $42,448 during the three months ended March 31, 2014. The decrease was mainly due to the reduction of our traditional guarantee business with banks, and we have closed several restricted deposit accounts with banks through which we provided guarantee services to our customers. As of March 31, 2015, the balance of restricted cash was $1,226,060, a decrease of 438.2% from $1,983,285 as of December 31, 2014.

Interest expense represents interest incurred on short-term bank loans. The interest incurred on short-term bank loans decreased by $72,024 or 29%. This was mainly caused by a decrease of total bank borrowing balance by $6.4 million from $16.2 million as of March 31, 2014 to $9.8 million as of March 31, 2015. During the three months ended March 31, 2015, the interest expense related to the loans from banks was $173,166.

CHINA COMMERCIAL CREDIT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME /(LOSS)

Management Discussion and Analysis

Net Interest Income

Net interest income is equal to interest income we generated less interest expenses we incurred. The Company’s net interest income decreased by $5,020,947, or 44% to $6,280,459 during the year ended December 31,2014, as compared to net interest income of $11,301,406 spare for the year ended December 31, 2013.

The interest and fees on loans decreased by $5,130,000, or 42% from $12,223,803for the year ended December 31, 2013 to $7,093,803for the year ended December 31, 2014. The decrease is the combined effect of: (1) The increase of non-performing loans aging over 90 days which leads to reversal of more interest income; (2 ) decrease in effective weighted average loan interest rate from 14.50% for the loan portfolio as of December 31,2013 to 14.11% as of December 31, 2014 due to the mandatory requirement promulgated by Jiangsu Finance Bureau in June of 2013 that effective from October 1, 2013 the maximum interest rate a microcredit company in Jiangsu province is permitted to charge shall be fifteen percent (15%) compared to eighteen percent (18%) previously permitted; (3) reversal of interest income of $1,684,691due from some long-aging customers according to interest waive agreement between WujiangLuxiang and these customers: and (4) the decrease in the amount of monthly interest received. Compared to the same period last year, a substantial amount of borrowers choose to repay the principal and the interest due at the maturity of the loan term instead of making monthly interest payments. Both payments are permissible under the agreements we have with the borrowers.

Since the beginning of 2014, People’s Bank of China continued to withdraw a significant amount of liquidity from the market, which has made it even harder for SMEs to gain access to capital. The bank lenders usually require an old loan be paid in full upon maturity before they approve a new loan to the same borrower. Some SMEs have to borrow from so-called “underground” lenders, or shadow banks to repay the loans due to the banks. During the year ended December 31,2014, the banks denied to extend new loans to some SMEs even after they made the full repayment for the loans due and satisfied other conditions. Management is concerned that the borrowers may use the proceeds from the loans we grant to them as a means of repayment to the other banks or even to the underground lenders, instead of using them in operations. Therefore, management decided to grant new loans in a more cautious manner. During the year ended December 31,2014, we granted 112 loans and the average loan size was approximately $336,000, as compared to 526 loans with an average loan size of $429,000 during the twelve months ended December 31, 2013, and as a result, the interest income declined.

Due to the long-term nature of our restricted deposits with third party banks, we utilized these deposits as term deposits which in turn generated interest income on deposits with banks of $84,603 during the year ended December 31,2014 as compared to $220,820 during the twelve months ended December 31, 2013. The decrease was mainly due to the reduction of our traditional guarantee business with banks, and we have closed several restricted deposit accounts with banks through which we provided guarantee services to our customers. As of December 31, 2014, the balance of restricted cash was $1,983,285, a decrease of 78.9% from $9,405,865 as of December 31, 2013.

Interest expense represents interest incurred on short-term bank loans. The interest incurred on short-term bank loans decreased by $900,225 or 21%. This was mainly caused by a decrease of total bank borrowing balance by $4.1 million from $15.5 million as of December 31, 2013 to $11.4 million as of December 31, 2014. During twelve months ended December 31, 2014 , the interest expense related to the loans from related parties is $2,278.

CHINA COMMERCIAL CREDIT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

Management Discussion and Analysis

Net Interest income

Net interest income is equal to interest income we generated less interest expenses we incurred. The Company’s net interest income decreased by $1,489,268 or 55%, to $1,222,587 during the three months ended September 30, 2014, as compared to net interest income of $2,711,855 for the three months ended September 30, 2013.

The decrease is due to the combined effect of: (1) decrease in effective weighted average loan interest rate from 14.57% for the loan portfolio as of September 30, 2013 to 14.11% as of September 30, 2014 due to the mandatory requirement promulgated by Jiangsu Finance Bureau in June of 2013 that effective from October 1, 2013 the maximum interest rate a microcredit company in Jiangsu province is permitted to charge shall be fifteen percent (15%) compared to eighteen percent (18%) previously permitted; and (2) the decrease in the amount of monthly interest received. Compared to the same period last year, a substantial amount of borrowers chose to repay the principal and the interest due at the maturity of the loan term instead of making monthly interest payments. Both payments are permissible under the agreements we have with the borrowers.

Since the beginning of 2014, People’s Bank of China continued to withdraw a significant amount of liquidity from the market, which has made it even harder for SMEs to gain access to capital. The bank lenders usually require an old loan be paid in full upon maturity before they approve a new loan to the same borrower. Some SMEs have to borrow from so-called “underground” lenders, or shadow banks to repay the loans due to the banks. During the three months ended September 30, 2014, the banks denied to extend new loans to some SMEs even after they made the full repayment for the loans due and satisfied other conditions. Management is concerned that the borrowers may use the proceeds from the loans we grant to them as a means of repayment to the other banks or even to the underground lenders, instead of using them in operations. Therefore, management decided to grant new loans in a more cautious manner. The number of new loans/renewed loans reduced from 420 as of September 30, 2013 to 102 as of September 30, 2014 and as a result, the interest income declined.

Due to the long-term nature of our restricted deposits with third party banks, we utilized these deposits as term deposits during the three months ended September 30, 2014 which in turn generated interest income on deposits with banks of $7,843 as compared to $16,922 during the three months ended September 30, 2013. The decrease was mainly due to the reduction of our traditional guarantee business with banks, and we have closed several restricted deposit accounts with banks through which we provided guarantee services to our customers. As of September 30, 2014, the balance of restricted cash was $2,872,073, a decrease of 73.3% from $10,784,960 as of September 30, 2013.

Interest expense represents interest incurred on short-term bank loans. The interest incurred on short-term bank loans decreased by $31,331, or 11%. This was mainly caused by a decrease of the total bank borrowing balance of $4.09 million, from $15.5 million as of September 30, 2013 to $11.4 million as of September 30, 2014. The aggregate amount of credit available to us under the line of credit we have with the Agriculture Bank of China remains unchanged as RMB100 million (approximately $16 million) as of September 30, 2014 and as of the date of this report.

On March 9, 2015, the Audit Committee of the Board of Directors of China Commercial Credit, Inc. (the “Company”), determined that the interim financial statements at and for the three and six months ended June 30, 2014, which are included in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 originally filed with the SEC on February 17, 2015, should no longer be relied upon. In February and March 2015, the Company revisited the classification of its loan and guarantee portfolio within its rating system and decided to test the adequacy of the allowances calculated thereby to determine the need to reclassify certain loans into different categories. As a result of such tests and reclassifications, the Company has decided to make certain changes to its provision for loan losses and provision on financial guarantee services.

The Audit Committee discussed such changes with Marcum Bernstein & Pinchuk LLP, the Company’s independent auditors. On March 12, 2015, the Company filed an amendment to its Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, which restated certain numbers to reflect the referenced changes. Details concerning such restatements, including a reconciliation of the previously reported financial statements and the restated financial statements, are contained in such amendment.

As a result of such restatements, the Company's net loss for the six months ended June 30, 2014 was adjusted from $4,187,067 to a net loss of $16,098,749, and for the three months ended June 30, 2014 from $5,280,000 to $17,192,382.

The effects of the restatement on the Company’s condensed consolidated statements of operations and comprehensive income (loss) as of June 30, 2014 are as follows:

The effects of the restatement on the Company’s condensed consolidated balance sheet as of June 30, 2014 are as follows:

The effects of the restatement on the Company’s consolidated statements of cash flows as of June 30, 2014 are as follows:

EXPLANATORY NOTE

As disclosed in our Current Report on Form 8-K filed with the Securities and Exchange Commission (the “Commission”) on March 12, 2015, the purpose of this Amendment No. 1 (“Amendment No. 1”) to our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2014 (the “Original 10-Q”), which we filed with the Commission on February 17, 2015, is to restate our company’s unaudited financial statements and related disclosures (including, without limitation, those contained under Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations) contained in the Original 10-Q to reflect the changes made to the provision for loan losses and provision for financial guarantee services.

On March 9, 2015, the Audit Committee of the Board of Directors of China Commercial Credit, Inc. (the “Company”), determined that the interim financial statements at and for the three and six months ended June 30, 2014 included in the Original 10-Q should no longer be relied upon as a result of changes made in such financial statements related to the provision for loan losses and provision on financial guarantee services. We are therefore filing this Amendment No. 1 to correct such errors.

As several parts of the Original 10-Q are amended and/or restated by this Amendment No. 1, for convenience, we have repeated the entire text of the Original 10-Q, as amended and/or restated by this Amendment No. 1. Readers should therefore read and rely on this Amendment No. 1 in lieu of the Original 10-Q.

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

 
On February 24, 2015, China Commercial Credit, Inc. (the “Company”) issued a press release announcing that on February 19, 2015 the Company received a notice from The Nasdaq Stock Market indicating that, since the Company failed to file the Form 10-Q for the quarter ended September 30, 2014 (the “Q3 10-Q”) with the Securities and Exchange Commission by the required date of February 17, 2015, pursuant to Nasdaq Listing Rule 5810 (b), trading of the Company’s common stock will be suspended from The Nasdaq Capital Market at the opening of business on March 2, 2015. In connection with such suspension a Form 25-NSE will be filed by Nasdaq with the Securities and Exchange Commission, which will remove the Company’s securities from listing and registration on The Nasdaq Stock Market, unless the Company requests an appeal of this determination.

CHINA COMMERCIAL CREDIT, INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Management Discussion and Analysis

Net Interest income
 

Net interest income is equal to interest income we generated less interest expenses we incurred. The Company’s net interest income decreased by $1,544,939 or 52%, to $1,434,717 during the three month ended June 30, 2014, as compared to net interest income of $2,979,656 for the three months ended June 30, 2013.

The decrease is due to the combined effect of: (1) decrease in effective weighted average loan interest rate from 14.57% for the loan portfolio as of June 30, 2013 to 14.36% as of June 30, 2014 due to the mandatory requirement promulgated by Jiangsu Finance Bureau in June of 2013 that effective from October 1, 2013 the maximum interest rate a microcredit company in Jiangsu province is permitted to charge shall be fifteen percent compared to eighteen percent previously permitted; (2) reversal of interest income of $371,605 due from some long-aging customers according to interest waive agreement between Wujiang Luxiang and these customers; and (3) the decrease in the amount of monthly interest received. Compared to the same period last year, a substantial amount of borrowers chose to repay the principal and the interest due at the maturity of the loan term instead of making monthly interest payments. Both payments are permissible under the agreements we have with the borrowers. When a borrower chooses to repay the principal and the interest due at the maturity of the loan term, the interest payments are only recognized as revenue when they are paid at the maturity of the loan.

Since the beginning of 2014, People’s Bank of China continued to withdraw a significant amount of liquidity from the market, which has made it even harder for SMEs to gain access to capital. The bank lenders usually require an old loan be paid in full upon maturity before they approve a new loan to the same borrower. Some SMEs have to borrow from so-called “underground” lenders, or shadow banks to repay the loans due to the banks. During the three months ended June 30, 2014, the banks denied to extend new loans to some SMEs even after they made the full repayment for the loans due and satisfied other conditions. Management is concerned that the borrowers may use the proceeds from the loans we grant to them as a means of repayment to the other banks or even to the underground lenders, instead of using them in operations. Therefore, management decided to grant new loans in a more cautious manner. The number of new loans/renewed loans reduced from 326 as of June 30, 2013 to 92 as of June 30 2014 and as a result, the interest income declined.

Due to the long-term nature of our restricted deposits with third party banks, we utilized these deposits as term deposits during the three months ended June 30, 2014 which in turn generated interest income on deposits with banks of $9,093 as compared to $21,327 during the three months ended June 30, 2013. The decrease was mainly due to the reduction of our traditional guarantee business with banks, and we have closed several restricted deposit accounts with banks through which we provided guarantee services to our customers. As of June 30, 2014, the balance of restricted cash was $3,988,679, a decrease of 66.9% from $12,040,245 as of June 30, 2013.

Interest expense represents interest incurred on short-term bank loans. The interest incurred on short term bank loans decreased by $68,762, or 22%. This was mainly caused by a decrease of the total bank borrowing balance of $4.8 million, from $21.0 million as of June 30, 2013 to $16.2 million as of June 30, 2014. The aggregate amount of credit available to us under the line of credit we have with the Agriculture Bank of China remains unchanged as RMB100 million (approximately $16 million) as of June 30, 2014 and as of the date of this report.

Item 8.01 Other Events.

The Special Committee of the Board of Directors of China Commercial Credit, Inc. (the “Company”) notified the Board of Directors on January 26, 2014 that the internal review surrounding the unauthorized transfer (the “Transfer at Issue”) of RMB 7 million (approximately $1.1 million) from the bank account of Wujiang Luxiang Information Technology Consulting, Co. Ltd. (“WFOE”), the Company’s wholly-owned indirect subsidiary, to the personal account of Mr. Huichun Qin, the former Chief Executive Officer of the Company, has been concluded. The Special Committee engaged independent counsel who retained local PRC counsel as well as an accounting consultant to assist in such internal review. The PRC counsel, the accounting consultant as well as the Special Committee’s independent counsel generated document requests, reviewed records, visited the Company’s headquarters and conducted interviews with management and other parties. The Company responded to the document requests and cooperated in the entire internal review process.

The internal review confirmed that, as previously reported by the Company, Mr. Qin transferred RMB 7 million (approximately $1.1 million) from WFOE’s bank account to his personal bank account. The internal review team was unable to interview Mr. Qin. The missing funds have not yet been recovered and the Company has engaged local PRC counsel to assist in the matter.

During the internal review, the independent counsel examined whether other transfers had occurred that were similar to the Transfer at Issue, in that the Company’s funds were transferred to a related party in a manner that was not consistent with the Company’s corporate governance and internal control procedures. The independent counsel identified four transfers made by Mr. Qin that were not consistent with the Company’s corporate governance and internal control procedures. With respect to the first three transfers, all funds were either returned to the Company or applied to the Company’s business. With respect to the fourth transfer, the funds were used to increase the registered capital of Wujiang Luxiang Rural Microcredit Co., Ltd, a variable interest entity the Company controls via a series of contractual arrangements, as intended and reflected in an application made to the PRC government for such increase of registered capital.

The internal review indicated that the Company’s control deficiencies contributed to the Transfer at Issue. Mr. Qin had the sole authority to approve fund transfers and there was a lack of checks and balances over transfers. The internal review also found that, since the discovery of the Transfer at Issue, the Company had taken various steps to improve its internal controls and procedures that apply to fund transfers. The internal review observed that such new controls and procedures appear to be much more thorough and comprehensive. The independent counsel interviewed Company personnel who currently share responsibility related to asset transfers and those individuals appear to understand the current system in place and to be motivated to preserve the integrity of such system.

The Special Committee is currently reviewing the recommendations from the internal review and will recommend further enhancements to the internal control procedures and other remediation measures to the Board of Directors accordingly.

Item 3.01    Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On November 24, 2014, China Commercial Credit, Inc. (the “Company”) issued a press release announcing that on November 19, 2014 the Company received a Nasdaq Staff Deficiency Letter indicating that, as a result of the Company not timely filing its Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 (the “Late 10-Q”), the Company failed to comply with the periodic filing requirements for continued listing set forth in Rule 5250(c)(1) of the Nasdaq Listing Rules. Nasdaq has provided the Company until December 4, 2014 to provide an update to the Company’s plan to regain compliance previously submitted to Nasdaq. The Company expects to file the Late 10-Q as well as the Form 10-Q for quarter ended June 30, 2014 by February 17, 2015, the due date set forth in its plan of compliance.

WUJIANG, CHINA--(Marketwired - Sep 19, 2014) -China Commercial Credit, Inc. (NASDAQ:CCCR), a microfinance company in Jiangsu Province, today responded to inquiries by shareholders regarding the recent halting of trading in the company's NASDAQ-listed shares.

Interim CEO Mr. Long (Leo) Yi said that on September 12, 2014, NASDAQ sent the company an Information Request seeking additional information on CCCR's 8-K filing of the same date disclosing that approximately $1.1 million had been transferred from one of the company's bank accounts without proper authorization. CCCR has responded to this Information Request.

Further, as stated in the 8-K of September 12, the company's board of directors has formed a Special Committee to investigate all circumstances surrounding this unauthorized transfer of funds. This Committee is comprised of two independent directors, Mr. John Levy and Mr. Jingen Ling. The Special Committee is in the process of finalizing the retention of independent counsel to assist in this investigation.

CCCR has prepared a draft Form 10-Q for the quarter ended June 30, 2014, and will update the subsequent event note to reflect the unauthorized transfer. The company has had several discussions with its independent auditors, Marcum L.P., and the Special Committee intends to keep Marcum fully informed on the progress of the investigation.

"The business and operations of the company are continuing and functioning, and we are committed to resolving all of these issues as quickly as possible and then filing our 10-Q for the quarter ended June 30," concluded Mr. Yi.

Mr. Yi, who is also the company's CFO, was appointed interim CEO when the company's CEO, Mr. Huichin Qin, resigned on August 25.

Item 8.01 Other Events.

On August 6, 2014, a purported shareholder Andrew Dennison filed a putative class action complaint in the United States District Court District of New Jersey relating to a July 25, 2014 press release about the Company’s progress in recovering a significant portion of the $5.4 million the Company paid in the first quarter of 2014 on behalf of loan guarantee customers. The action is captioned Andrew Dennison v. China Commercial Credit, Inc., Huichun Qin, Long Yi, Jianming Yin, Jinggen Ling, Xiangdong Xiao, and John F. Levy, Case No. 2:2014-cv-04956. The action alleges that the Company and its current and former officers and directors violated the federal securities laws by misrepresenting in prior public filings certain material facts about the risks associated with its loan guarantee business. The Company believes that this lawsuit is without merit and intends to vigorously defend against it.

Item 8.01 Other Events.

Based on the Chief Financial Officer’s review of the books and records of China Commercial Credit, Inc. (the “Company”), the Company has made a preliminary determination that following the close of the fiscal quarter ended June 30, 2014, RMB 7 million (approximately $1.1 million) was transferred from the bank account of Wujiang Luxiang Information Technology Consulting, Co. Ltd. (“WFOE”), the Company’s wholly-owned indirect subsidiary without authorization to the personal account of a former executive officer of the Company, who was still an executive officer at the time of the transfer. The funds were supposed to be used for the purpose of increasing the registered capital account of Wujiang Luxiang Rural Microcredit Co. Ltd, the Company’s operating affiliate controlled by WFOE. The Company has sought return of the funds but to date has not recovered them. The Company’s Board of Directors is exploring all means, including legal avenues, to recover the funds and has formed a Special Committee to undertake an internal review of the circumstances surrounding the transfer and has delegated and designated the necessary power, authority and resources to the Special Committee to expeditiously conduct such review, including utilizing legal counsel and other third-party experts to assist with the review.

On September 11, 2014, the NASDAQ Stock Market announced that trading was halted in the Company’s common stock for “additional information requested” from the Company and that trading will remain halted until the Company has fully satisfied NASDAQ’s request for additional information.

NEW YORK, Sept. 11, 2014 (GLOBE NEWSWIRE) -- The NASDAQ Stock Market^(R) (NDAQ) announced that trading was halted today in China Commercial Credit Inc. (CCCR) at 14:56:06 Eastern Time for "additional information requested" from the company at a last price of $ 2.9801.

Trading will remain halted until China Commercial Credit Inc. has fully satisfied NASDAQ's request for additional information.

For news and additional information about the company, please contact the company directly or check under the company's symbol using InfoQuotes^SM on the NASDAQ^(R) Web site.

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On September 3, 2014, China Commercial Credit, Inc. (the “Company”) issued a press release announcing that on August 29, 2014 the Company received a Nasdaq Staff Deficiency Letter indicating that, as a result of the Company not timely filing its Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 (the “Late 10-Q”), the Company failed to comply with the periodic filing requirements for continued listing set forth in Rule 5250(c)(1) of the Nasdaq Listing Rules. Nasdaq has provided the Company until October 28, 2014 to submit a plan to regain compliance. The Company expects to file the Late 10-Q prior to that deadline. The full text of the press release is set forth in Exhibit 99.1 attached hereto.

Item 1.02 Termination of a Material D efinitive Agreement

On July 28, 2014, China Commercial Credit, Inc. (the “Company”) entered into a Share Subscription Agreement (the “Subscription Agreement”) and an Investor’s Rights Agreement with Langworth Holdings Limited in connection with a proposed private placement offering (the “Offering”) of 6,123,406 shares of common stock of the Company.

Pursuant to the terms of the Subscription Agreement, the Company was permitted to terminate the Subscription Agreement in the event the Offering was not consummated by August 15, 2014. Since the transaction has not been consummated as of August 15, 2014, the Company has terminated the Subscription Agreement and the Offering.

No shares of common stock of the Company were issued pursuant to the Subscription Agreement.

Item 1.01     Entry into a Material Definitive Agreement

On July 28, 2014, China Commercial Credit, Inc. (the “Company”) entered into a definitive Share Subscription Agreement (the “Share Subscription Agreement”) with Langworth Holdings Limited (the “Purchaser”) in connection with a private placement offering (the “Offering”) of 6,123,406 shares (“Subscription Shares”) of common stock, par value $0.001 per share, of the Company. The price per share in the Offering is $2.80, which was 16.6% above the consolidated closing bid price as of July 25, 2014, the previous trading day.

The securities issued in the Offering are exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(a)(2) of the Securities Act and/or Regulation S promulgated thereunder.

The net proceeds to the Company from the Offering will be approximately $17 million. The proceeds may be used for working capital, repayment of certain credit facilities and other general corporate use. The Offering is expected to close by August 15, 2014, subject to the satisfaction of customary closing conditions.

WUJIANG, CHINA--(Marketwired - Jul 25, 2014) - 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 said it has made progress toward recovering a significant portion of the $5.4 million it paid in the first quarter of 2014 to lenders on behalf of 11 loan guarantee service customers who had borrowed funds from these lenders but defaulted on their loan repayments.

After determining that the majority of these defaulting borrowers had subsequently acquired the capability of repaying these funds, CCCR recovered approximately $0.7 million in cash from these borrowers and converted an additional $2.1 million of their debt into one-year loan notes payable by the borrowers directly to the company. All funds reclaimed via the above measures will be applied to CCCR's total capital available for use on its microfinance lending and loan guarantee businesses.

The company expects to announce that its second quarter payments to lenders on behalf of loan guarantee customers, although less than in the first quarter, will still amount to about $3.7 million. Of this total, CCCR has thus far recovered $1.1 million and converted an additional $1.6 million of their debt into one-year loan notes payable by the borrowers directly to the company. The financial adjustments related to these events will be included in the company's upcoming Q2 report.

First Quarter 2014 Financial Results

• Net Revenue was $2,054,009 in the first quarter of 2014, compared to $2,670,253 in the prior year.
• Net income reported was $1,093,633, or $0.10 per share, compared to the net income of $1,569,868, or $0.17 per share in the like year-ago quarter.

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.

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.

China Commercial Credit Prices Secondary Public Offering

Net Proceeds of Approximately $5.7 Million to Fund Pride Financial Leasing

SUZHOU, CHINA--(Marketwired - May 8, 2014) - China Commercial Credit, Inc. (NASDAQ: CCCR), a microfinance company whose current major business is providing microcredit loans and loan guarantees to small-to-medium enterprises (SMEs), farmers and individuals in Jiangsu Province, today announced the pricing of its secondary offering of 1,750,000 common shares and warrants to purchase an additional 875,000 common shares at a price of $4.00 per share and accompanying warrant.

The Company is offering 1,650,386 of its common shares and the selling stockholders are offering 99,614 common shares. Each common share is being sold together with a warrant, with each warrant being immediately exercisable for one-half of a common share at an exercise price of $5.60 per whole share for a period of three years after the issuance date. All warrants will be issued by the Company. The Company will receive gross proceeds of $6,601,544 from this offering. The Company will not receive any proceeds from the sale of shares by the selling stockholders. The offering is expected to close on or about May 13, 2014, subject to the satisfaction of customary closing conditions.

Net proceeds of approximately $5.7 million from this offering will be used primarily for the capitalization of Pride Financial Leasing (Suzhon) Co. Ltd., the company's wholly-owned subsidiary that will offer mid-to long-term leases on industrial machinery and equipment, transportation vehicles, and medical devices to SMEs, hospitals, municipal governments and public transportation entities.

The Company has granted the underwriter a 45-day option to purchase up to an additional 262,500 common shares and warrants to purchase 131,250 shares at the public offering price, less the underwriting discount, to cover any over-allotments.
In addition to utilizing the offering proceeds to fund Pride Leasing, the company plans to fund Pride via traditional bank loans initially equal to three to four times the total of Pride's registered capital. At its discretion, however, the company will have the option to expand this leverage up to ten times the total of Pride's registered capital.
Axiom Capital Management Inc. acted as sole book running manager and representative of the underwriters in the offering. ViewTrade Securities Inc. acted as co-manager. Ellenoff Grossman & Schole LLP acted as counsel to the Company and Reed Smith LLP acted as legal counsel to the underwriters.

As now one of a handful of equipment leasing companies in Jiangsu Province, Pride believes there will be "strong demand" for its leasing services and under terms highly attractive to Pride. According to CCCR's founder, CEO and Chairman, Mr. Huichun Qin, a former vice president at the Wujiang branch of Peoples Bank of China and former deputy director of the Wujiang State Administration of Foreign Exchange, "Many Chinese businesses have begun to recognize the benefit of leasing versus purchasing and understand that leasing will likely minimize significant upfront costs, maximize tax allowances, and effectively boost their productive assets without creating the need to provide any additional guarantee and other collateral typically required for bank loans."

Mr. Qin noted that in China only five percent of companies requiring the use of industrial machinery and equipment utilize financial leasing of these assets, compared to about 20 percent in the European and American markets. Based upon current growth patterns -- and recently announced government infrastructure development plans which should significantly increase demand for leased machinery, equipment and vehicles -- it is expected that the nation's financial leasing industry could grow at a compounded annual growth rate of up to 30 percent, and exceed $1.59 trillion by 2020.

"We are very optimistic about Pride's prospects and pleased to have completed this offering," concluded Mr. Qin. "The company can now embark on its next major growth phase as we expand operations to add leasing to our financial service offerings."

China Commercial Credit, Inc.

SUZHOU, CHINA--(Marketwired - May 8, 2014) - China Commercial Credit, Inc. (NASDAQ: CCCR), a microfinance company whose current major business is providing microcredit loans and loan guarantees to small-to-medium enterprises (SMEs), farmers and individuals in Jiangsu Province, today announced the pricing of its secondary offering of 1,750,000 common shares and warrants to purchase an additional 875,000 common shares at a price of $4.00 per share and accompanying warrant.

The Company is offering 1,650,386 of its common shares and the selling stockholders are offering 99,614 common shares. Each common share is being sold together with a warrant, with each warrant being immediately exercisable for one-half of a common share at an exercise price of $5.60 per whole share for a period of three years after the issuance date. All warrants will be issued by the Company. The Company will receive gross proceeds of $6,601,544 from this offering. The Company will not receive any proceeds from the sale of shares by the selling stockholders. The offering is expected to close on or about May 13, 2014, subject to the satisfaction of customary closing conditions.

Net proceeds of approximately $5.7 million from this offering will be used primarily for the capitalization of Pride Financial Leasing (Suzhon) Co. Ltd., the company's wholly-owned subsidiary that will offer mid-to long-term leases on industrial machinery and equipment, transportation vehicles, and medical devices to SMEs, hospitals, municipal governments and public transportation entities.

The Company has granted the underwriter a 45-day option to purchase up to an additional 262,500 common shares and warrants to purchase 131,250 shares at the public offering price, less the underwriting discount, to cover any over-allotments.

In addition to utilizing the offering proceeds to fund Pride Leasing, the company plans to fund Pride via traditional bank loans initially equal to three to four times the total of Pride's registered capital. At its discretion, however, the company will have the option to expand this leverage up to ten times the total of Pride's registered capital.

China Commercial Credit, Inc.

China Commercial Credit, Inc. is offering 2,526,923 shares of its common stock and the selling stockholders are offering 73,077 shares of common stock. Each share of common stock is being sold together with a warrant, with each warrant being immediately exercisable for one-half of a share of common stock at an exercise price of $___ per whole share (140% of the offering price) and will expire three years after the issuance date. All 1,300,000 warrants will be issued by the Company. We will not receive any proceeds from the sale of shares by the selling stockholders.
 
The public offering price is $___ per share and accompanying warrant.

SUZHOU, CHINA--(Marketwired - Apr 8, 2014) - China Commercial Credit, Inc. (NASDAQ: CCCR), a microfinance company whose current major business is providing microcredit loans and loan guarantees to small-to-medium enterprises (SMEs), farmers and individuals in Jiangsu Province, today said it has launched Pride Lending Club, http://www.pridelendingclub.com/, an online loan portal subsidiary pairing prospective borrowers with willing lenders and qualified loan guarantors throughout China.

The portal, China's first to be offered and managed by a microcredit company, is designed to increase the safety of online loans by requiring each loan application to be fully guaranteed by a qualified guarantor -- a microcredit or loan guarantee firm or other financial service entity -- prior to the loan being issued. Pride has to date reached agreement with four such entities to provide these guarantees such that at any one time, guarantees can be provided for loans with an aggregate principal amount of up to $55 million.

As part of the loan process, each of the guarantors will agree to:

(1) Consider providing the necessary loan guarantees for prospective borrowers -- primarily SMEs -- including reviewing the borrower's financial condition, gauging the risk of the requested loan, and, if necessary, requesting sufficient collateral;

(2) Accept Pride's limit on the maximum aggregate value of loans it is allowed to guarantee;

(3) Upon deciding to issue a particular guarantee, refer the prospective borrower to Pride for a comprehensive review of the loan application; and

(4) Agree to reimburse Pride, within five business days, for any repayment Pride makes to the lender should the borrower default on the loan.

Should Pride determine that the loan application entails the minimal level of risk, it will post this application on the portal website and initiate a bidding process among interested lenders to determine which of them is willing to make the loan and under what terms and interest rate. At the end of this process, the lender or lenders offering the best terms will extend the loan to the borrower. Once the loan is made, Pride will conduct post-loan monitoring and ongoing credit risk management.

For services provided, Pride will receive management fees of approximately one to two percent of the loan principal and eight percent of the interest received by lender.

Pride will neither fund nor guarantee any loan on the portal, and will therefore undertake minimal credit risk for any loan transaction.

The portal will be managed by Mr. Yan Cheng, who has nearly 30 years of experience in the financial industry including ten years in a management position with the China Banking Regulatory Commission.

"We are very excited to be launching Pride Lending Club," said China Commercial Credit CEO, Mr. Huichun Qin. "By taking advantage of our existing relationships with many of China's highly qualified financial service entities, we are confident we can rapidly build a loan guarantor base that will total as much as US$85 to 100 million by the end of this year."

The portal should be available on mobile platforms later this year, he said.

WUJIANG, CHINA--(Marketwired - Feb 18, 2014) - China Commercial Credit, Inc. (NASDAQ: CCCR), a microfinance company whose current major business is providing microcredit loans and loan guarantees to small-to-medium enterprises (SMEs), farmers and individuals in Jiangsu Province, today said it has developed an online loan portal scheduled to launch in March and be available on mobile platforms later this year. The portal, the first in China to be offered and managed by a microcredit company, will pair prospective borrowers with willing lenders throughout the nation and incorporate CCCR's well-established high standard of credit risk assessment.

Whereas many of China-based loan portals involve peer-to-peer transactions and do not require a borrower to submit either a loan guarantee or sufficient collateral, the CCCR portal, Pride Lending Club, will require one or both. These are analyzed by Pride, which will post the loan application only after determining the creditworthiness of the prospective borrower to be of a level sufficient to minimize risk to the lender.

The process begins by Pride forming working alliances and signing a General Credit Contract with various qualified financial service entities, including small lenders, state-owned guarantee companies, large investment firms, pawn shops and high net-worth individuals to act as potential guarantors for the loans. In each Contract, the financial service entity agrees to:

(1) consider providing loan guarantees for prospective borrowers -- primarily SMEs -- including reviewing the borrower's financial condition, gauging risk of the requested loan, and, if necessary, requesting sufficient collateral;

(2) accept Pride's limit on the maximum aggregate value of loans it is allowed to guarantee; and

(3) refer prospective borrowers to Pride for a review and posting of the loan application.

In the next step, Pride conducts a comprehensive credit analysis of the loan application to determine the authenticity of its information as well as its compliance with the General Credit Contract. Upon the satisfactory review of a loan application and guarantee/collateral information, Pride will post qualified loan applications and guarantees on its portal and initiate a bidding process amongst interested lenders in order to determine which of them is willing to make the loan and at what interest rate. Once the loan is made, Pride will conduct post-loan monitoring and ongoing credit risk management.

For services provided, Pride will receive service fees of approximately one to two percent of the total loan. Pride will undertake no credit risk for any loan completed via the portal.

Pride will be managed by Mr. Chen Yan, who has nearly 30 years of experience in the financial industry including ten years in a management position with the China Banking Regulatory Commission.

"We are very excited to be launching Pride Lending Club," said China Commercial Credit CEO, Mr. Huichun Qin. "Together with our approval to act as a loan guarantor on the Jiangsu Province Financial Bureau's online portal and our new equipment leasing company, Pride Financial Leasing, we are at the forefront of expanding into niche businesses serving the SME market."

Mr. Qin added, "By taking advantage of existing relationships that qualified financial service entities have with their broad client bases, to be potential borrowers and lenders, and capitalizing on the reputation of China Commercial Credit as the first Chinese microfinance company to list on NASDAQ, we believe that with a limited marketing budget, Pride Lending Club will be able to build its online portal in a relatively short period of time."

WUJIANG, CHINA--(Marketwired - Jan 15, 2014) - China Commercial Credit, Inc. (NASDAQ: CCCR), a microfinance company whose major business is providing microcredit loans and loan guarantees to small-to-medium enterprises (SMEs), farmers and individuals in Jiangsu Province, today reported it had filed a Registration Statement for a follow on offering of its common stock.

The net proceeds will be utilized for the capitalization of Pride Financial Leasing (Suzhon) Co. Ltd., the company's wholly-owned subsidiary that will offer mid-to long-term leases on industrial machinery and equipment, transportation vehicles, and medical devices to SMEs, hospitals, municipal governments and public transportation entities.

Pride is expected to commence its leasing business immediately upon the close of this offering for which Axiom Capital Management Inc. is acting as sole book running manager and ViewTrade Securities, Inc. and Newport Coast Securities Inc. are acting as co-managers. In addition to the offering proceeds, the Company initially plans to borrow funds equal to three to four times its registered capital utilizing traditional bank loans. Further, Pride's charter with Jiangsu Province gives the company the flexibility to expand this leverage up to nine times registered capital to finance its leases.

As one of a handful of equipment leasing companies in Jiangsu Province, Pride will seek to capitalize on the accelerating demand for leased machinery, equipment and vehicles from government and private entities and CCCR anticipates there will be "strong demand" for leasing these assets, and under terms highly attractive to Pride. Many of the initial lessees are expected to be existing direct loan customers of CCCR.

The company said it expects to benefit from the explosive growth being experienced across the entire financial leasing industry. According to the 2013 China Financial Leasing Industry Report, last year saw the industry grow to about $250 billion with more than 560 financial leasing companies in operation, up from $150 billion and about 300 financial leasing companies in operation at the end of 2011.

Despite this growth, added CCCR, in China only five percent of companies requiring the use of industrial machinery and equipment utilize financial leasing of these assets, compared to about 20 percent in the European and American markets. Based upon current growth patterns -- and recently announced government infrastructure development plans which should significantly increase demand for leased machinery, equipment and vehicles -- it is expected that the nation's financial leasing industry could grow at a compounded annual growth rate of up to 30 percent, and exceed $1.59 trillion by 2020.

CCCR said it will also benefit from special income tax relief whereby Pride will be exempted from provincial income tax for its first five years, followed by a period of five years during which Pride's income tax rate will be 50 percent of the prevailing provincial income tax rate.

Lastly, said CCCR, many Chinese businesses have begun to recognize the benefit of leasing versus purchasing and understand that leasing will likely minimize significant upfront costs, maximize tax allowances, and effectively boost their productive assets without creating the need to provide any additional guarantee and other collateral typically required for bank loans. Leasing may also preserve a company's existing bank credit lines, resulting in lower cash outflows.

The company said it expects these factors should enable Pride to make a "significant contribution" to CCCR's top and bottom line growth going forward.

WUJIANG, CHINA--(Marketwired - Aug 27, 2013) - China Commercial Credit, Inc. (NASDAQ: CCCR), a microcredit company providing loans and loan guarantees to small-to-medium sized enterprises (SMEs), farmers and individuals, today issued a corporate outlook for the next 12 months. Mr. Huichun Qin, founder and CEO, cited three primary factors expected to fuel the company's growth:

• CCC's improved access to capital to increase its lending capacity.
• Continuing expansion of the microcredit industry, in both China and Jiangsu Province, where the company is based.
• Ongoing government measures making the microcredit sector more attractive to borrowers.

CCC's improved access to capital. As a result of raising $8.9 million in its recent IPO -- thereby becoming the first China-based microcredit company to go public in the U.S. -- China Commercial Credit is expected to increase its available lending capital from $98 million (RMB 600 million) to $130 million (RMB 800 million). This, in turn, should positively impact the company's interest revenue in the near term, said Mr. Qin.

Mr. Qin, a former Deputy Director of Peoples Bank of China (PBOC) -- the nation's Central Bank -- added that, with its Nasdaq listing, CCC has the option to raise additional equity or issue debt in the U.S. and Hong-Kong, thereby further increasing its lending capacity and accelerating company growth.

Continuing expansion of the microcredit industry. According to recent PBOC data, at the end of June 2013 there were 7,086 microcredit companies in China, compared to only 1,940 three years ago. Since June 2010, microcredit companies' outstanding loans have multiplied by 5.6 times to $115 billion (RMB 704 billion).

Jiangsu Province has seen the fastest growth of any province in China during this period, with the number of microcredit firms rising 4.3 times to 529, and outstanding loans growing six times to $18 billion (RMB 109 billion). Wujiang City, CCC's base, remains one of the most economically successful cities in China, said Mr. Qin, and is home to an increasing number of the world's leading exporters of electronic equipment, chemicals and textiles -- many of which require microfinance loans.

This growth is primarily due to the Chinese government's 2008 financial reforms to ease the country's reliance on lending by State-owned banks -- which had heavily favored lending to State-owned enterprises and large companies -- and allow the creation of microcredit companies designed to serve the borrowing needs of SMEs, farmers and individuals, a group accounting for eight out of ten jobs in China and comprising 60 percent of that nation's GDP.

Since 2008, microcredit companies have played an increasingly important role in financing SMEs nationwide and especially in Jiangsu Province, said Mr. Qin. And because most State-owned banks in China -- due to higher costs and risks -- are still not willing to lend to SMEs, the growth of the microcredit industry will likely accelerate for the foreseeable future, he added.

Ongoing government measures. Three recent policy changes by the Chinese government will likely spur the growth of the microcredit industry, said Mr. Qin. The first are the credit tightening measures, enacted in June 2013, currently affecting the nation's State-owned banks. These measures, which could last for as much as a year, will likely drive additional loan applicants -- including many State-owned enterprises and larger companies -- into the microcredit sector, said Mr. Qin.

The second policy change is the increased government pressure to restrict the activities of private, high interest underground lenders, many of whom have charged SMEs 50 percent interest or more. This excessive interest rate, said Mr. Qin, has caused many SMEs to fail and has produced severe inflationary pressures throughout the economy.

Lastly, the government has also taken steps to curtail off-balance sheet "back-door" bank loans to SMEs. These steps will likely continue, said Mr. Qin, driving further loan business into the microcredit sector.

Due to the above factors, Mr. Qin said he expected CCC could experience "improved revenue and profit growth" over last year's results beginning in the fourth quarter of this year.

For the last 12 months through March 31, 2013, China Commercial Credit had a profit of $8.3 million on approximately $12 million in interest and fee revenue. Since inception, CCC has delivered net revenue and pre-tax income with compound annual growth rates of 22% and 34%, respectively. This rapid growth, said Mr. Qin, is a "strong indication" of China's financial support for SMEs.

"It is an honor to be the first Chinese microcredit company to go public and list on a U.S. national exchange," concluded Mr. Qin. "I deeply appreciate the interest that investors are showing in one of China's lesser known but superior growth industries. I am excited about the future of microfinance in general and CCC specifically, and I look forward to communicating our progress to shareholders on a regular basis."