Consumer Capital Group Inc. (OTCQB: CCGN) recently announced that Guidance Finance, one of its subsidiaries, obtained theValue-added Telecommunication Business License(SP)issued by the Ministry of Industry and Information Technology ofthe People's Republic of China.
CCGN's acquisition of a special license of Guidance Finance had the cooperative effect on the issuance of SP License. This meant that the Company took a big step forward in the development of Internet of Things (IoT). Currently amid the era of mobile Internet, the convenience of mobile systems drives business development of all industries. At present, the number of mobile users hits 600 million inChinaalone. Along with the fast-growing size of mobile users, the act of small & micro loans was shifted from the original advertising flyers to PC systems and then to mobile systems gradually. The mobile infrastructure has become the largest entrance opportunity.
At present, CCGN's Guidance Finance has established WeChat and WAP systems. By following and binding the official WeChat account of Guidance Finance, users can read the digest stream of Guidance Finance and also consult matters of borrowings via the WAP interface. In the future, Guidance Finance will also perfect and refine all functions by proceeding from the experience of mobile subscribers, in order to create better experience for users as far as possible and optimize the borrowing channels for the small & micro entrepreneurs with borrowing demands.
Guidance Finance is a member unit of China Association of Microfinance. Since its inception, it has provided the dignified financial services for trustworthy small & micro enterprises by adhering to the essence of information intermediary. In the future, Guidance Finance will also make its contribution to the sound development of the industry on the spirit of more integrity, openness, transparence and fairness.
OnDecember 19, 2016, Hong Kong Zhongzhengda Independent Audit Firm conducted 8K audit on the CCGN's acquisition of Guidance Finance, and confirmed the financial statements of two fiscal years as atDecember 31, 2015andDecember 31, 2016, respectively. The onsite audit of Zhongzhengda's professional services has been scheduled in 2017.
Jack Gao, CEO of CCGN expressed, "On the premise of maintaining the entirety of CCGN, the acquisition of Guidance Finance created the operating income ofRMB39.56 millioninOctober 2016, contributing to the net profit ofRMB22.42 million. The consolidated financial statements showed that the operating income of CCGN in 2016 rises at least byRMB39.56 million, creating a growth of at leastRMB22.42 millionin net profit. It is expected that Guidance Finance will create the operating income ofRMB76.83 millionand achieve the net profit ofRMB43.56 millionfor CCGN in 2017."
Jack Gao, CEO of CCGN further indicated, "CCGN will continue to expand its market share by merger and acquisition of good enterprises, and do utmost to maximize the interest of both the Company and its shareholders, and make preparation for the future uplisting to the NASDAQ Exchange as one of our top priorities in 2017."
About Consumer Capital Group Inc.
Consumer Capital Group Inc.plans to implement three primary strategies to expand our market presence within the industry: (i) increase Arki E-Commerce's lending capacity through the cash generated from operations and capital raised from this offering; (ii) increase the Company's offering of financial services by expanding the business into financial consulting services throughoutChina; and (iii) expand the Company's geographic coverage for both microfinancing, financial advisory service and wealth management business to major metropolitan areas such asBeijing,Shanghai,Guangzhouthrough the establishment of sales force. We believe that we can experience significant growth in these areas because there is a large number of established SMEs and sole proprietors in need of capital resources but lack the ability to finance either due to their limited size of business or local banks' preferences to finance bigger and more established companies. In addition, we believe that our wealth management business will be able to provide potential investors a more attractive return comparing to traditional investment products.