Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | China Lending Corp |
Entity Central Index Key | 1,611,852 |
Amendment Flag | true |
Amendment Description | Amendment No.2 |
Trading Symbol | CLDC |
Document Type | F1 |
Entity Filer Category | Non-accelerated Filer |
Document Period End Date | Dec. 31, 2016 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 4,496,588 | $ 6,732,601 |
Loans receivable - third parties, net of provision for loan losses of $6,426,307 and $2,197,571 as of December 31, 2016 and 2015, respectively | 148,293,427 | 137,602,481 |
Loans receivable - related parties, net of provision for loan losses of nil and $11,137 as of December 31, 2016 and 2015, respectively | 1,102,593 | |
Interest and fee receivable | 1,075,410 | 673,626 |
Amount due from a related party | 1,653,839 | |
Cost method investment | 3,599,831 | 3,851,071 |
Property and equipment, net | 88,463 | 116,298 |
Intangible asset, net | 55,480 | |
Deferred tax assets | 861,607 | 243,440 |
Other assets | 485,765 | 374,387 |
Total Assets | 158,956,571 | 152,350,336 |
Liabilities | ||
Short-term bank loans | 7,472,530 | |
Loans from a related party, a cost investment investee | 14,399,324 | 15,404,285 |
Secured loan | 14,154,968 | 24,739,282 |
Dividends payable | 4,108,721 | 6,623,843 |
Taxes payable | 1,125,379 | 1,235,241 |
Convertible promissory note payable | 650,000 | |
Other liabilities | 3,876,502 | 977,831 |
Total liabilities | 45,787,424 | 48,980,482 |
Commitments and Contingencies | ||
Shareholders ' Equity | ||
Ordinary Shares, no par value; unlimited shares authorized; 22,898,864 and 20,000,000 shares issued and outstanding as of December 31, 2016, and 2015, respectively | ||
Additional paid-in capital | 91,644,559 | 94,723,964 |
Statutory reserves | 6,536,238 | 4,667,254 |
Retained earnings | 15,691,462 | 6,064,526 |
Accumulated other comprehensive loss | (9,616,439) | (2,085,890) |
Total Shareholders' Equity | 104,255,820 | 103,369,854 |
Total Liabilities and Shareholders' Equity | 158,956,571 | 152,350,336 |
Preferred Class A [Member] | ||
Convertible Redeemable Class A Preferred Shares | ||
Preferred Shares, no par value, unlimited shares authorized; 715,000 and nil shares issued and outstanding as of December 31, 2016 and 2015, respectively | $ 8,913,327 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Provision for loan losses from third parties | $ 6,426,307 | $ 2,197,571 |
Provision for loan losses from related parties | $ 11,137 | |
Ordinary shares, par value | ||
Ordinary shares description | Unlimited shares authorized | Unlimited shares authorized |
Ordinary shares, issued | 22,898,864 | 20,000,000 |
Ordinary shares, outstanding | 22,898,864 | 20,000,000 |
Preferred Class A [Member] | ||
Preferred shares, par value | ||
Preferred shares, authorized description | Unlimited shares authorized | Unlimited shares authorized |
Preferred stock, shares issued | 715,000 | |
Preferred stock, shares outstanding | 715,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and fee income | ||
Interest and fees on loans | $ 35,539,247 | $ 27,641,209 |
Interest and fees on loans-related parties | 531,559 | |
Interest on deposits with banks | 4,652 | 5,883 |
Total interest and fee income | 35,543,899 | 28,178,651 |
Interest expense | ||
Interest expense on short-term bank loans | (715,535) | (425,139) |
Interest expense and fees on secured loan | (2,442,527) | (2,302,136) |
Interest expense on loans from related parties | (61,542) | |
Interest expense on loans from a related party, a cost investment investee | (1,818,656) | (1,101,871) |
Total interest expense | (4,976,718) | (3,890,688) |
Provision for loan losses | (4,650,887) | (2,166,110) |
Net Interest Income | 25,916,294 | 22,121,853 |
Non-interest income | 107,512 | 13,212 |
Non-interest expense | ||
Salaries and employee surcharge | (1,271,650) | (917,159) |
Business taxes and other taxes | (686,266) | (1,449,993) |
Other operating expenses | (2,666,148) | (2,790,192) |
Total non-interest expense | (4,624,064) | (5,157,344) |
Income Before Tax | 21,399,742 | 16,977,721 |
Income tax expense | (4,121,338) | (2,857,907) |
Net Income | 17,278,404 | 14,119,814 |
Dividend - Convertible Redeemable Class A preferred stock | (333,327) | |
Net income allocated to ordinary shareholders | 16,945,077 | 14,119,814 |
Other comprehensive income | ||
Foreign currency translation adjustments | (7,530,549) | (5,714,112) |
Comprehensive Income | $ 9,747,855 | $ 8,405,702 |
Weighted-average common shares outstanding - basic | 18,012,452 | 20,519,156 |
Weighted-average common shares outstanding -diluted | 21,530,835 | 20,519,156 |
Earnings per share to ordinary shareholders - Basic | $ 0.94 | $ 0.69 |
Earnings per share to ordinary shareholders - Diluted | $ 0.79 | $ 0.69 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Total | Ordinary share | Additional paid-in capital | Statutory reserves | Retained earnings | Accumulated Other comprehensive income/ (loss) |
Balance at Dec. 31, 2014 | $ 101,332,473 | $ 94,188,869 | $ 3,243,069 | $ 272,313 | $ 3,628,222 | |
Balance, (in shares) at Dec. 31, 2014 | 20,000,000 | |||||
Gain on disposal of loans receivable to a related party | 535,095 | 535,095 | ||||
Net income | 14,119,814 | 14,119,814 | ||||
Transfer to statutory reserves | 1,424,185 | (1,424,185) | ||||
Dividend declared to shareholder | (6,903,416) | (6,903,416) | ||||
Foreign currency translation loss | (5,714,112) | (5,714,112) | ||||
Balance at Dec. 31, 2015 | 103,369,854 | 94,723,964 | 4,667,254 | 6,064,526 | (2,085,890) | |
Balance, (in shares) at Dec. 31, 2015 | 20,000,000 | |||||
Effect of Reverse Merger | (3,117,895) | (3,117,895) | ||||
Effect of Reverse Merger, shares | 2,172,832 | |||||
Issuance of shares for share-based compensation | $ 21,330 | $ 21,330 | ||||
Issuance of shares for share-based compensation, shares | 2,700 | |||||
Shares conversion from rights | 721,229 | |||||
Share dividend payment to shareholders | $ 17,160 | $ 17,160 | ||||
Net income | 17,278,404 | 17,278,404 | ||||
Transfer to statutory reserves | 1,868,984 | (1,868,984) | ||||
Dividend declared to shareholder | (5,782,484) | (5,782,484) | ||||
Foreign currency translation loss | (7,530,549) | (7,530,549) | ||||
Balance at Dec. 31, 2016 | $ 104,255,820 | $ 91,644,559 | $ 6,536,238 | $ 15,691,462 | $ (9,616,439) | |
Balance, (in shares) at Dec. 31, 2016 | 22,898,864 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities: | ||
Net income | $ 17,278,404 | $ 14,119,814 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Share-based compensation expenses | 21,330 | |
Depreciation | 37,448 | 39,415 |
Amortization | 4,003 | |
Loss/ (Gain) on disposal of property and equipment | 58 | (12,971) |
Deferred tax benefit | (662,741) | (274,924) |
Provisions for loan losses | 4,650,887 | 2,166,110 |
Changes in operating assets and liabilities: | ||
Interest and fee receivable | (465,901) | (79,061) |
Other assets | (413,772) | (72,426) |
Taxes payable | (30,601) | (764,741) |
Other liabilities | 3,009,560 | 820,988 |
Net Cash Provided by Operating Activities | 23,428,675 | 15,942,204 |
Cash Flows from Investing Activities: | ||
Originated loans disbursement | (331,721,346) | (237,371,565) |
Repayment of loans from customers | 307,589,717 | 212,716,218 |
Purchase of property and equipment | (16,341) | (156,847) |
Purchase of investment | (4,013,614) | |
Purchase of intangible asset | (61,993) | |
Proceeds from sales of property and equipment | 28,898 | |
Proceeds from disposal of loans receivable to a related party | 6,737,574 | |
Net Cash Used in Investing Activities | (24,209,963) | (22,059,336) |
Cash Flows from Financing Activities: | ||
Cash acquired from reverse merger | 6,083,009 | |
Proceeds from issuing ordinary shares | 1 | |
Proceeds from short-term bank borrowings | 13,997,380 | 5,619,060 |
Repayment of short-term bank borrowings | (6,020,378) | (12,843,565) |
Proceeds from secured loan | 25,783,457 | |
Repayment of secured loan | (9,150,975) | (15,942,076) |
Proceeds from loans from a cost investment investee | 15,050,946 | 16,054,457 |
Repayment from loans from a cost investment investee | (15,050,946) | |
Proceeds from a related party | 1,615,903 | |
Payment of dividends | (7,795,182) | (5,647,881) |
Net Cash (Used in) / Provided by Financing Activities | (1,270,243) | 13,023,453 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (184,482) | (289,852) |
Net (Decrease) / Increase in Cash and Cash Equivalents | (2,236,013) | 6,616,469 |
Cash and Cash Equivalents at Beginning of Period | 6,732,601 | 116,132 |
Cash and Cash Equivalents at End of Period | 4,496,588 | 6,732,601 |
Supplemental Cash Flow Information | ||
Cash paid for interest expense | 5,136,312 | 3,846,128 |
Cash paid for income tax | $ 3,624,437 | $ 3,648,094 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Principal Activities [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES China lending corporation( f.k.s DT Asia Investments Limited, “DT Asia”) was a blank check company incorporated on April 8, 2014, under the laws of the British Virgin Islands for the purpose of acquiring, engaging in a share exchange, share reconstruction and amalgamation, purchasing all or substantially all of the assets of, entering into contractual arrangements, or engaging in any other similar business combination with one or more businesses or entities (an “Initial Business Combination”). On July 6, 2016, the Company consummated the Initial Business Combination with Adrie Global Holdings Limited (“Adrie”) and its subsidiaries and variable interest entity by acquiring from the shareholders of Adrie, all outstanding interests of Adrie and issued 20 million ordinary shares for a purchase price of $200 million, with 8 million of such shares (the “Escrow Shares”) being held in escrow and subject to forfeiture (1) should the post-combination Company fail to meet certain minimum financial performance targets, or (2) as a result of indemnification claims by DT Asia Investments Limited. One-third of the Escrow Shares shall be released upon the post-combination Company obtaining certain specified adjusted consolidated net income targets in each of the calendar years 2016, 2017 and 2018. The transaction was accounted for as a “reverse acquisition” since, immediately following completion of the transaction, the shareholders of Adrie effectuated control of the post-combination Company. For accounting purposes, Adrie was deemed to be the accounting acquirer in the transaction and, consequently, the transaction is treated as a recapitalization of Adrie (i.e., a capital transaction involving the issuance of shares by the Company for the shares of Adrie). Accordingly, the consolidated assets, liabilities and results of operations of Adrie became the historical financial statements of China Lending Corporation and its subsidiaries, and the Company’s assets, liabilities and results of operations were consolidated with Adrie beginning on the acquisition date. No step-up in basis or intangible assets or goodwill were recorded in this transaction. After the business acquisition, DT Asia was renamed as China Lending Corporation. China Lending Corporation (formerly known as “DT Asia”) (the “Company”, “we”, “us” and “our”) changed its year from March 31 to December 31. Adrie was incorporated under the laws of British Virgin Islands on November 19, 2014. The Company, through its subsidiaries and variable interest entity (“VIE”) engages in the business of providing loan facilities to micro, small and medium sized enterprises and sole proprietors in Xinjiang Uyghur Autonomous Region (“Xinjiang Province”) of the People’s Republic of China (“PRC”). On February 11, 2015, Adrie incorporated China Feng Hui Financial Holding Group Co., Limited ("Feng Hui Holding") in Hong Kong with registered capital of HKD 1. Feng Hui Holding operates through two wholly-owned subsidiaries: Xinjiang Feng Hui Jing Kai Direct Lending Limited (“Jing Kai”) and Feng Hui Ding Xin (Beijing) Financial Consulting Co., Limited (“Ding Xin”). On May 14, 2015, Feng Hui Holdings established Jing Kai under the laws of the PRC with registered capital of $80,000,000. Jing Kai has no operations of its own to date. On May 20, 2015, Feng Hui Holding established Ding Xin with registered capital of $1,000,000. Ding Xin is engaged in the business of financial consulting services. Urumqi Feng Hui Direct Lending Limited (“Feng Hui”) is a company established under the laws of the PRC on June 12, 2009, and its shareholders as of December 31, 2016 consisted of nine PRC companies and seven PRC individuals. Feng Hui is a microcredit company primarily engaged in providing direct loan services to small-to-medium sized enterprises, farmers and individuals in Xinjiang Province, PRC. On December 19, 2016, Feng Hui Holding established Ningbo Ding Tai Financial Leasing Co., Ltd. (“Ding Tai”) with registered capital of $30,000,000. Ding Tai is engaged in the business of financial leasing service. In accordance with US GAAP, the primary beneficiary of a VIE is the variable interest holder (e.g., a contractual counterparty or capital provider) deemed to have the controlling financial interest(s) in the VIE. The primary beneficiary is the reporting entity (or member of a related party group) that has both of the following characteristics: a) The power to direct the activities that most significantly impact the VIE’s economic performance; and b) The obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Currently, Feng Hui is consolidated as a VIE of Ding Xin by a series of VIE Agreements with Ding Xin. Contractual Arrangements between Ding Xin, Feng Hui, and Feng Hui’s Shareholders On July 16, 2015, Ding Xin, Feng Hui and/or Feng Hui’s shareholders have executed the following agreements and instruments, pursuant to which China Lending Group, through its subsidiary Ding Xin, controls Feng Hui: Share Pledge Agreement, Exclusive Business Cooperation Agreement, Exclusive Option Agreement and Power of Attorney (“VIE Agreements”). Each of the VIE Agreements is described below, and became effective upon their execution therein. Exclusive Business Cooperation Agreement Pursuant to the Exclusive Business Cooperation Agreement between Feng Hui and Ding Xin, Ding Xin provides Feng Hui with comprehensive business support, technical services and consulting services relating to its day-to-day business operations and management, on an exclusive basis. For services rendered to Feng Hui by Ding Xin under this agreement, Ding Xin is entitled to collect a service fee calculated based on the complexity, required time, contents and commercial value of the consulting services provided by Ding Xin. Ding Xin will calculate and sum up the service fees and correspondingly issue a notice to Feng Hui. Feng Hui will pay such service fees to the bank accounts as designated by Ding Xin within 10 working days from the receipt of such notice. The Exclusive Business Cooperation Agreement shall remain in effect for five years unless it is terminated by Ding Xin at its discretion with 30-days prior notice. Feng Hui does not have the right to terminate the Exclusive Business Cooperation Agreement unilaterally. Ding Xin may at its discretion unilaterally extend the term of the Exclusive Business Cooperation Agreement. This agreement grants Ding Xin the position as the primary beneficiary who is entitled to absorb losses or to receive benefits that could potentially be significant to Feng Hui. Share Pledge Agreement Under the Share Pledge Agreement between the Feng Hui shareholders and Ding Xin, the 16 Feng Hui shareholders pledged all of their equity interests in Feng Hui to Ding Xin to guarantee the secured indebtedness caused by failure of performance of Feng Hui’s and the Feng Hui shareholders’ obligations under the Exclusive Business Cooperation Agreement, Exclusive Option Agreement and Power of Attorney. Under the terms of the Share Pledge Agreement, any dividend or bonus received by Feng Hui in respect of the Pledged Equity shall be deposited into an account designated by Ding Xin. The Feng Hui shareholders also agreed that upon occurrence of any event of default, as set forth in the Share Pledge Agreement, Ding Xin is entitled to dispose of the pledged equity interest in accordance with applicable PRC laws. The Feng Hui shareholders further agreed not to dispose of the pledged equity interests or take any actions that would prejudice Ding Xin’s interest. The Share Pledge Agreement shall be effective until all obligations under the other VIE Agreements have been performed by Feng Hui, when the VIE Agreements are terminated or when the secured indebtedness has been satisfied in full. Under the terms of the agreement, in the event that Feng Hui or its shareholders breach their respective contractual obligations under the Exclusive Business Cooperation Agreement, Ding Xin, as pledgee, will be entitled to certain rights, including, but not limited to, the right to collect dividends generated by the pledged equity interests and absorbs expected losses. This agreement grants Ding Xin the position as the primary beneficiary who is entitled to absorb losses or to receive benefits that could potentially be significant to Feng Hui. Risks in relation to the VIE structure There are no consolidated VIEs’ assets that are collateral for the VIEs’ obligations and can only be used to settle the VIEs’ obligations. There are no creditors (or beneficial interest holders) of the VIEs that have recourse to the general credit of the Company or any of its consolidated subsidiaries. Conversely, liabilities recognized as a result of consolidating this VIE do not have any recourse on the Company’s general assets. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests, which require the Company or its subsidiaries to provide financial support to the VIEs. Exclusive Option Agreement Under the Exclusive Option Agreement, the Feng Hui shareholders irrevocably granted Ding Xin (or its designee) an exclusive option to purchase, to the extent permitted under PRC law, once or at multiple times, at any time, part or all of their equity interests in Feng Hui. The option price is equal to the lowest price permissible by PRC laws. The Exclusive Option Agreement will remain effective for a term of five years and may be renewed at Ding Xin’s discretion. Power of Attorney Under the Power of Attorney, each Feng Hui shareholder authorized Ding Xin to act on the shareholder’s behalf as his, her or its exclusive agent and attorney with respect to all rights as a shareholder of Feng Hui, under PRC laws and the Articles of Association of Feng Hui, including but not limited to attending shareholder meetings and voting to approve the sale or transfer or pledge or disposition of shares in part or in whole or to designate and appoint the legal representative, directors, and supervisors of Feng Hui. When Ding Xin executes such shareholders’ rights, it should obtain all the current Ding Xin directors’ approval by the resolution of board of directors. The Power of Attorney shall be continuously valid with respect to each Feng Hui shareholder from the date of execution of the Power of Attorney, so long as such Feng Hui shareholder is a shareholder of Feng Hui. Ding Xin is entitled to terminate the Power of Attorney unilaterally at its discretion by the written notice to Feng Hui. The effective period of the VIE agreements is from July 16, 2015 to July 15, 2020. The VIE agreements can be renewed by written confirmation by Ding Xin to Feng Hui before their expiration. The extension length can be decided by Ding Xin solely. Once renewed, all the aforesaid agreed terms shall be unconditionally accepted by Feng Hui. Each VIE agreement can only be terminated if all parties thereto agree in writing to terminate the VIE agreement or if Ding Xin delivers to Feng Hui a notice of termination at least 30 days in advance of the termination effective date. Feng Hui has no right to terminate the VIE agreements unilaterally. Under this agreement, Ding Xin processes the power to direct the activities that most significantly impact the Feng Hui’s economic performance. Upon a series of VIE Agreements, currently, substantially all of China Lending’s consolidated assets are held, and its consolidated revenues and income are generated, by Feng Hui, its consolidated variable interest entity that is controlled by contractual arrangements. Feng Hui is based in Urumqi, the capital city and business hub of Xinjiang Province, and most of Feng Hui’s lending activities are to enterprises and individual proprietors based there. The consolidated VIE’s assets may be used as collateral for the VIE's obligation and the creditors of consolidated VIE have no recourse to the general credit of the primary beneficiary. As of December 31, 2016, the group structure of the Company is as following: Consolidated financial statements as of and for the year ended December 31, 2016 included China Lending Corporation, Adrie, Feng Hui Holding, Jing Kai, Ding Xin, Ding Tai and Feng Hui. The balance sheets as of December 31, 2016 and 2015, and the statements of income and comprehensive income, and cash flows for the years ended December 31, 2016 and 2015 were retrospectively adjusted to furnish comparative information, and included China Lending Corporation, Adrie, Feng Hui Holding, Jin Kai, Ding Xin, Ding Tai and Feng Hui. Emerging Growth Company Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a Company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth Company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The consolidated financial statements of the Company and its subsidiaries and VIE are prepared and presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All significant inter-company transactions and balances have been eliminated upon consolidation. Cash and cash equivalents Cash and cash equivalents consist of bank deposits with original maturities of three months or less, all of which are unrestricted as to withdrawal and uninsured. Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which at times, may exceed the U.S. Federal depository insurance coverage of $250,000, or other limits of protection if held in financial institutions outside of the U.S., such as Government securities coverage of HK$500,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts. Loans receivable, net Loans receivable primarily represent loan amounts due from customers. Loans receivable are recorded at unpaid principal balances net of provision that reflects the Company’s best estimate of the amounts that will not be collected. The loans receivable portfolio consists of business and personal loans (See Note 8). Provision for loan losses The provision for loan losses is increased by charges to income and decreased by charge offs (net of recoveries). Recoveries represent subsequent collection of amounts previously charged-off. The increase in provision for loan losses is the netting effect of “reversal” and “provision” for both business and personal loans. If the ending balance of the provision for loan losses after any charge offs (net of recoveries) is less than the beginning balance, it will be recorded as a “reversal”; if it is larger, it will be recorded as a “provision” in the provision for loan loss. The netting amount of the “reversal” and the “provision” is presented in the statements of income and comprehensive income The provision consists of specific and general components. The specific component consists of the amount of impairment related to loans that have been evaluated on an individual basis, and the general component consists of the amount of impairment related to loans that have been evaluated on a collective basis. Loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts when due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”). The Company recognizes a charge-off when management determines that full repayment of a loan is not probable. The primary factor in making that determination is the potential outcome of a lawsuit against the delinquent debtor. The Company will recognize a charge-off when the Company loses contact with the delinquent borrower for more than nine months or when the court rules against the Company to seize the collateral asset of the delinquent debt from either the guarantor or borrower. In addition, when the recoverability of the delinquent debt is highly unlikely, the senior management team will go through a stringent procedure to approve a charge-off. Management estimates the provision balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the provision may be made for specific loans, but the entire provision is available for any loan that, in management’s judgment, should be charged-off. The provision for loan losses is maintained at a level believed to be reasonable by management to absorb probable losses inherent in the portfolio as of each balance sheet date. The provision is based on factors such as the size and current risk characteristics of the portfolio, an assessment of individual loans and actual loss, delinquency, and/or risk rating record within the portfolio (Note 9). The Company evaluates its provision for loan losses on a quarterly basis or more often as necessary. Interest and fee receivable Interest and fee receivable are accrued and credited to income as earned but not received. The Company determines a loan past due status by the number of days that have elapsed since a borrower has failed to make a contractual interest or principal payment. Accrual of interest is generally discontinued when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan interest or principal becomes past due by more than 90 days. Additionally, any previously accrued but uncollected interest is reversed. Subsequent recognition of income occurs only to the extent payment is received, subject to management’s assessment of the collectability of the remaining interest and principal. Loans are generally restored to an accrual status when it is no longer delinquent and collectability of interest and principal is no longer in doubt and past due interest is recognized at that time. Cost method investment The Company carries its cost method investments at cost, recognized income as any dividend declared from distributions of the investee’s earnings if any and only adjusts for other-than-temporary impairment and distributions of earnings as the Company’s equity interest in the investee is less than 20%. Management regularly evaluates the investment for impairment based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. Property and equipment The property and equipment are stated at cost less accumulated depreciation. The depreciation is computed on the straight-line method over the estimated useful lives of the assets. Estimated useful lives of property and equipment are stated in Note 11. The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the accounts and includes any gain or loss in the statement of income. The Company charges maintenance, repairs and minor renewals directly to expenses as incurred; major additions and betterment to equipment are capitalized. Impairment of long-lived assets The Company’s definite long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company tests long-lived assets, including property and equipment and finite lived intangible assets, for impairment test when there is triggering event. Only indefinite lived assets have to be tested annually or more frequently upon the occurrence of an event or when circumstances indicate that the net carrying amount is greater than its fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows as the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available in making whatever estimates, judgments and projections are considered necessary. There were no impairment losses for the years ended December 31, 2016 and 2015. Fair values of financial instruments ASC Topic 825, “Financial Instruments” (“Topic 825”), requires disclosure of fair value information of financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Topic 825 excludes certain financial instruments and all nonfinancial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company. Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. As of December 31, 2016 and 2015, financial instruments of the Company were primarily comprised of cash, loans receivable, accrued interest receivables, cost method investment, other receivables, short-term bank loans, secured loans and loans from a cost investment investee, taxes payable, convertible promissory note payable, convertible redeemable preferred shares, dividends payable, other payable and accrued expenses, which were carried at cost on the balance sheets, and carrying amounts approximated their fair values because of their generally short maturities. Foreign currency translation and transactions The reporting currency of China Lending and Adrie is United States Dollars (“$”), which is also the functional currency. The Feng Hui Holding and PRC subsidiaries and VIE maintain their books and records in its local currency, the Hong Kong Dollars (“HKD”) and Renminbi Yuan (“RMB”) respectively, which are their functional currencies as being the primary currency of the economic environment in which these entities operate. Transactions in foreign currencies other than functional currencies are initially recorded at the functional currency rate ruling at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the statements of income. Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange ruling at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the statements of income. In accordance with ASC Topic 830, “Foreign Currency Matters,” the Company translated the assets and liabilities into US dollars using the rate of exchange prevailing at the applicable balance sheet date and the statements of income and cash flows are translated at an average rate during the reporting period, as set forth in the following tables. Adjustments resulting from the translation are recorded in shareholders’ equity as part of accumulated other comprehensive income (loss). As of December 31, 2016 2015 Balance sheet items, except for equity accounts 6.9448 6.4917 For the Years Ended 2016 2015 Items in the statements of income and comprehensive income, and statements of cash flows 6.6441 6.2288 Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews these estimates using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. Significant accounting estimates reflected in the financial statements include: (i) the provision for loan losses; (ii) accrual of estimated liabilities; (iii) contingencies and litigation; and (iv) deferred tax assets and liabilities. Revenue recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, service has been performed, the price is fixed or determinable and collection is reasonably assured, on the following: 1) Interest income on loans. Interest on loan receivables is accrued monthly in accordance with their contractual terms and recorded in accrued interest receivable. The Company does not charge prepayment penalties. Additionally, any previously accrued but uncollected interest is reversed and accrual is discontinued, when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days. 2) Assessment services on loans. The Company receives fees from assessment services in full at inception and records as unearned income before amortizing it throughout the period of services. Non-interest expenses Non-interest expenses primarily consist of salary and benefits for employees, traveling cost, entertainment expenses, depreciation of equipment, office rental expenses, professional service fee, office supply, etc., and are expensed as incurred. Income tax Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. The Company accounts for income taxes using the assets and liability method. Under this method, deferred income taxes are recognized for tax consequences in future years of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end. Deferred tax assets and liabilities are measured using enacted tax rates applicable for the differences that are expected to affect taxable income. The Company adopts a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation process, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. As of December 31, 2016 and 2015, the Company did not have any uncertain tax positions. Comprehensive income Comprehensive income includes net income and foreign currency adjustments. Comprehensive income is reported in the statements of income and comprehensive income. Accumulated other comprehensive loss, as presented on the balance sheets are the cumulative foreign currency translation adjustments. Operating leases The Company leases its principal office under a lease agreement that qualifies as an operating lease. Payments made under operating leases are charged to the consolidated statements of comprehensive income on a straight line basis over the lease periods. Commitments and contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations and tax matters. The Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Recently issued accounting standards adopted In August 2015, the FASB issued updated guidance concerning presentation and subsequent measurement of debt issuance costs relating to line of credit arrangements, which can be presented on the balance sheet as an asset to be subsequently amortized ratably over the term of the line of credit arrangement. The updated guidance is effective immediately. This updated guidance did not have a material impact on our financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs”, which changes the presentation of debt issuance costs in financial statements. Under this ASU, an entity presents such costs on the balance sheet as a direct deduction from the related debt liability rather than as an asset. This new standard is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early adoption permitted. We adopted this standard and do not expect that it will have a material impact on our consolidated financial statements or disclosures. Recently issued accounting standards not yet adopted In May 2014, the FASB issued ASU No.2015-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer. For a public entity, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company does not anticipate that this adoption will have a significant impact on its financial statements. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). To simplify presentation, ASU 2015-17 requires that all deferred tax assets and liabilities, along with any related valuation provision, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. ASU 2015-17 does not change the existing requirement that only permits offsetting within a jurisdiction – that is, companies are still prohibited from offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. ASU 2015-17 is effective for public business entities in years beginning after December 15, 2016, including interim periods within those years. Early adoption is permitted. An entity can elect to adopt ASU 2015-17 either (1) prospectively for all deferred tax assets and liabilities, or (2) retrospectively by reclassifying the comparative balance sheet. If applied prospectively, an entity is required to include a statement that prior periods were not retrospectively adjusted. If applied retrospectively, an entity is also required to include quantitative information about the effects of the change on prior periods. The Company does not anticipate that this adoption will have a significant impact on its financial statements since the Company does not separate current and noncurrent assets and liabilities on the balance sheet. In April, 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts from Customers (Topic 606), Identifying Performance Obligations and Licensing” (“ASU 2016-10”). The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU aimed to address the issue concerning identifying performance and licensing by reducing the potential for diversity in practice in initial application and cost and complexity of application both at transition and an on-going basis. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update ASU 2014-09 by one year. The Company does not anticipate that this adoption will have a significant impact on its financial statements. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information. |
Risks
Risks | 12 Months Ended |
Dec. 31, 2016 | |
Risks/Concentration of Credit Risks [Abstract] | |
RISKS | 3. RISKS (a) Credit risk Credit risk is one of the most significant risks for the Company’s business and arise principally in lending activities. Credit risk is controlled by the application of credit approvals, limits and monitoring procedures. The Company manages credit risk through in-house research and analysis of the Chinese economy and the underlying obligors and transaction structures. To minimize credit risk, the Company requires collateral in the form of rights to cash, securities or property and equipment. The Company identifies credit risk collectively based on industry, geography and customer type. This information is monitored regularly by management. The Company originates loans to customers located primarily in Urumqi City, Xinjiang Province. This geographic concentration of credit exposes the Company to a higher degree of risk associated with this economic region. In measuring the credit risk of lending loans to corporate customers, the Company mainly reflects the “probability of default” by the customer on its contractual obligations and considers the current financial position of the customer and the exposures to the customer and its likely future development. For individual customers, the Company uses standard approval procedures to manage credit risk for personal loans. (b) Liquidity risk The Company is also exposed to liquidity risk which is risk that it is unable to provide sufficient capital resources and liquidity to meet its commitments and business needs. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, the Company will turn to other financial institutions and the owners to obtain short-term funding to meet the liquidity shortage. (c) Foreign currency risk A majority of the Company’s operating activities and a significant portion of the Company’s assets and liabilities are denominated in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the Peoples’ Bank of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires submitting a payment application form together with suppliers' invoices and signed contracts. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. (d) Industry concentration risk The Company is exposed to concentration risk which is risk associated to over concentration on certain market, an excessive concentration can give rise to market risk. Analysis for industry concentration over 10% as of December 31, 2016 (please refer to Note 23 for certain related parties acted as guarantors for loans): Loan receivable Interest income for the year ended Tire Supply chain financing $ 56,966,609 $ 15,604,310 Trade and service $ 54,413,130 $ 8,355,837 Percentage Percentage Tire Supply chain financing 36.8 % $ 43.9 % Trade and service 35.2 % $ 23.5 % |
Public Offering
Public Offering | 12 Months Ended |
Dec. 31, 2016 | |
Public Offering [Abstract] | |
PUBLIC OFFERING | 4. PUBLIC OFFERING On October 6, 2014, in its Public Offering, the Company sold 6,000,000 Units at an offering price of $10.00 per Unit and on October 14, 2014 the Company sold an additional 860,063 Units upon the underwriters’ exercise of its Over-Allotment option. Each Unit consists of one ordinary share (“Share”), one right (“Right(s)”), and one warrant (“Warrant”). Each Right entitles the holder to receive one-tenth (1/10) of a Share upon consummation of an Initial Business Combination. Each Warrant entitles the holder to purchase one-half of one ordinary share at a price of $12.00 per full share commencing on the later of the Company’s completion of its Initial Business Combination or 12 months from December 31, 2014, the effective date of the registration statement relating to the Public Offering (the “Effective Date”), and expiring five years from the completion of the Company’s Initial Business Combination. As a result, shareholders must exercise Warrants in multiples of two Warrants, at a price of $12.00 per full share, subject to adjustment, to validly exercise the Warrants. The Company may redeem the Warrants at a price of $0.01 per Warrant upon 30 days’ notice, only in the event that the last sale price of the ordinary shares is at least $18.00 per share for any 20 trading days within a 30-trading day period (“30-Day Trading Period”) ending on the third day prior to the date on which notice of redemption is given, provided there is a current registration statement in effect with respect to the ordinary shares underlying such Warrants commencing five business days prior to the 30-Day Trading Period and continuing each day thereafter until the date of redemption. If the Company redeems the Warrants as described above, management will have the option to require all holders that wish to exercise Warrants to do so on a “cashless basis.” The Units sold in the Public Offering began trading on October 1, 2014, the day after the Effective Date. Each of the Shares, Rights and Warrants were eligible to trade separately effective as of October 22, 2014. Security holders now have the option to continue to hold Units or separate their Units into the component pieces. Holders will need to have their brokers contact the Company’s transfer agent in order to separate the Units into Shares, Rights and Warrants. On May 30, 2016 and July 6, 2016, 5,255,657 and 1,544,138 shares were redeemed respectively by public shareholders. As of July 7, 2016, the Units have ceased trading. On December 21, 2016, all warrants were removed from listing. On July 6, 2016, DT Asia Investments Limited (the “Company”) closed its business combination with Adrie Global Holding Limited (“Adrie”). As a result, Adrie became a wholly-owned subsidiary of the Company. Underwriting Agreement The Company paid an underwriting discount on Units sold in the Public Offering, of 3.25% of the Unit offering price, to the underwriters at the closing of the Public Offering (or an aggregate of $2,229,520, including discounts for the Public Units sold in the Over-Allotment exercise). The Company also sold to EBC and/or its designees, at the time of the closing of the Public Offering, for an aggregate of $100.00, an option (“Unit Purchase Option” or “UPO”) to purchase 600,000 Units. The UPO will be exercisable at any time, in whole or in part, during the period commencing on the later of the first anniversary of the Effective Date and the closing of the Company’s Initial Business Combination and terminating on the fifth anniversary of the Effective Date (December 31, 2019) at a price per Unit equal to $11.75. Accordingly, after the Initial Business Combination, the purchase option will be to purchase 660,000 ordinary shares (which includes 60,000 ordinary shares to be issued for the rights included in the units) and 600,000 Warrants to purchase 300,000 ordinary shares. The Units issuable upon exercise of this option are identical to the Units in the Offering. On July 5, 2016, based on updated mutual agreement, the Company paid $1.5 million in cash, issued a $250,000 convertible promissory note (one year no interest, convertible at $10 at EBC’s option) and issued 34,300 ordinary shares to EBC with a value of $343,000 at $10 per share to settle the EBC advisory fee in full. Accounting for UPO The Company accounted for the fair value of the UPO, inclusive of the receipt of a $100 cash payment, as an expense of the Offering resulting in a charge directly to shareholders’ equity. The Company estimated that the fair value of the unit purchase option when issued was approximately $1,669,000 (or $2.782 per unit) using the Black-Scholes option-pricing model. The fair value of the unit purchase option was estimated as of the date of grant using the following assumptions: (1) expected volatility of 35%, (2) risk-free interest rate of 1.73% and (3) expected life of five years. The UPO may be exercised for cash or on a “cashless” basis, at the holder’s option (except in the case of a forced cashless exercise upon the Company’s redemption of the Warrants, as described above), such that the holder may use the appreciated value of the UPO (the difference between the exercise prices of the UPO and the underlying Warrants and the market price of the Units and underlying ordinary shares) to exercise the UPO without the payment of any cash. The Company will have no obligation to net cash settle the exercise of the UPO or the Warrants underlying the UPO. The holder of the UPO will not be entitled to exercise the UPO or the Warrants underlying the UPO unless a registration statement covering the securities underlying the UPO is effective or an exemption from registration is available. If the holder is unable to exercise the UPO or underlying Warrants, the UPO or Warrants, as applicable, will expire worthless. The Company granted to the holders of the UPO demand and “piggy back” registration rights for periods of five and seven years, respectively, from the Effective Date, including securities directly and indirectly issuable upon exercise of the UPO. WARRANTS DeTiger Holdings Limited (the “Former Sponsor”), agrees to transfer 1,000,000 warrants held by DeTiger in the amounts and to the transferee(s) as designated by the Seller Representative, for a purchase price payable by each Transferee of $0.50 per Warrant (the “Purchase Price”). The Purchase Price for each Warrant shall be payable by each Transferee only upon the exercise of each Warrant. As of December 31, 2016, 9,280,323 shares of warrants were issued and outstanding, none of the Warrants have been exercised. |
Convertible Promissory Note
Convertible Promissory Note | 12 Months Ended |
Dec. 31, 2016 | |
Convertible Promissory Note, Short-Term Bank Loans, Net & Secured Loans [Abstract] | |
CONVERTIBLE PROMISSORY NOTE | 5. CONVERTIBLE PROMISSORY NOTE On September 13, 2015, the Company issued a non-interest bearing convertible promissory note in the amount of up to $500,000 (the “Note”) to the DeTiger Holding Limited (“DHL”) which is convertible at $10 per unit at holder’s option. On July 6, 2016, the $100,000 note has been converted at $10.00 into 10,000 units, which consists of 10,000 shares, 10,000 rights and 10,000 warrants. 10,000 right entitles to receive 1/10 of the ordinary shares. Hence, a total of 11,000 shares was issued upon conversion. As of December 31, 2016, the balance for the convertible promissory note with DHL is $400,000, which is due on January 6, 2017. The beneficial conversion feature of $51,700 was charged into expense immediately upon closing of the business combination. On January 1, 2017, the Company paid off the convertible promissory note of $400,000 to DHL. On July 6, 2016, the Company issued a $250,000 convertible promissory note to its underwriter. The note is due on July 6, 2017, with no interest and convertible at $10 per unit at holder’s option. There was no beneficial conversion feature recognized at issuance date since effective conversion price is higher than the stock price as of the issuance date. As of December 31, 2016, the convertible promissory note balance is $650,000. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Shares | 12 Months Ended |
Dec. 31, 2016 | |
Redeemable Convertible Preferred Shares [Abstract] | |
REDEEMABLE CONVERTIBLE PREFERRED SHARES | 6. REDEEMABLE CONVERTIBLE PREFERRED SHARES On July 6, 2016, the Company sold 715,000 Class A Preferred Shares at a price of $12.00 per Class A Share with an annual dividend of 8%. The Company received gross proceeds of $8,580,000 from this private placement without issuance cost. The Class A Shares are mandatorily redeemable at a price $12.00 per Class A Share (subject to equitable adjustments for stock splits, stock dividends, recapitalizations and other similar adjustments), plus accrued dividends on the fifth anniversary of the original issue date of the Class A Shares. Each Class A Share is convertible into one ordinary share (subject to equitable adjustments for stock splits, stock dividends, recapitalizations and other similar adjustments) at shareholder’s option after the closing of the Business Combination. The Class A preferred shares are automatically convertible on the date on which the average closing price of the Company’s ordinary shares for three consecutive trading days, that is equal to or exceeds $16.00, provided that such date is after the closing of the Business Combination. In the event of a Reorganization Event occurring following the closing of the Business Combination (which includes certain business combinations involving the Company or the Company having confirmed that at least 80% of the Class A Shares originally issued have elected to been converted at the election of their holders), each Class A Share outstanding immediately prior to such Reorganization Event shall be redeemed by the Company by making a redemption payment equal to the greater of the following (as reasonably determined by the Company’s Board of Directors): (i) an amount in cash equal to the liquidation preference, plus an amount equal to accumulated and unpaid dividends as of (but excluding) the date of the Reorganization Event, per Class A Share that is so redeemed, or (ii) the kind of securities, cash and other property that the holder of Class A Shares holding such Class A Share would have been entitled to receive if such holder had converted its Class A Shares into ordinary shares immediately prior to such Reorganization Event. The Company did not recognize the beneficial conversion feature for the Class A Preferred shares since each Class A Share is convertible into one ordinary share (subject to equitable adjustments for stock splits, stock dividends, recapitalizations and other similar adjustments) at holder’s option. In accordance with ASC 480, redemption provisions not solely within the control of the Company require the security to be classified outside of permanent equity. ASC 480-10-S99 notes that if a reporting entity issues preferred shares that are conditionally redeemable (e.g., at the holder’s option or upon the occurrence of an uncertain event not solely within the company’s control), the shares are not within the scope of ASC 480 because there is no unconditional obligation to redeem the shares by transferring assets at a specified or determinable date or upon an event certain to occur. If the uncertain event occurs, the condition is resolved, or the event becomes certain to occur, then the shares become mandatorily redeemable under FAS 150 and would require reclassification to a liability. The Class A Preferred Shares have been classified as mezzanine equity in the consolidated financial statement, pursuant to ASC 480-10-S99-3A, presented below total liabilities but not included in the subtotal for total equity as of December 31, 2016. The Class A Preferred Share is not deemed to be an embedded derivative instrument to be bifurcated since it’s indexed to its own stock. As of December 31, 2016, $333,327 dividend for Convertible Redeemable Class A Preferred Shares was accrued and the outstanding balance for Class A Preferred Shares was $8,913,327. |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholder's Equity [Abstract] | |
STOCKHOLDER'S EQUITY | 7. STOCKHOLDER’S EQUITY Ordinary Shares The Company is authorized to issue unlimited ordinary shares. Holders of the Company’s ordinary shares are entitled to one vote for each share. As of December 31, 2016 and 2015, there were 22,898,864 and 20,000,000 ordinary shares issued and outstanding, respectively. Adrie was established on November 19, 2014 with share capital of $1, which consisted of one share with a par value of $1 per share. On April 14, 2015, Adrie redeemed the one share and issued 20,000,000 shares with par value of $0.000000005 per share to various shareholders that were affiliates of shareholders of Feng Hui. On December 17, 2015, Adrie redeemed 571,428 shares and issued 571,428 with par value of $0.000000005 per share to each of the remaining shareholders on a pro rata basis. Ordinary Shares held in Escrow Upon consummation of the business combination between the Company and Adrie, an aggregate of 20 million ordinary shares were issued and 8 million of the issued ordinary shares were deposited in escrow (the “Escrow Shares”). One-third of the Escrow Shares (along with the related accrued dividends and distributions) shall be released upon the post-combination company obtaining certain specified adjusted consolidated net income targets in each of calendar years 2016, 2017 and 2018. The target adjusted consolidated net income ranging in 2016 from $20.2 million at the bottom to $32.0 million at the top, in 2017 from $22.6 million at the bottom to $38.0 million at the top, and in 2018 from $25.6 million at the bottom to $44.0 million at the top, and with the average adjusted consolidated net income target for the alternative earn-out payment ranging from $23.3 million at the bottom to $40.0 million at the top. The Company has performed a preliminary assessment and estimated that target adjusted consolidated net income in 2016 would meet earn-out payment requirement thus one third of 8 million escrowed restricted shares would be released in 2017. Restricted Shares On September 23, 2016, the members of the Compensation Committee of China Lending Corporation have determined to issue 2,700 shares of restricted shares to 19 employees of the Company. Half of the shares shall be vested on September 22, 2017 and the remaining half of the shares shall be vested on September 22, 2018. In the event the employee’s services are terminated with the Company for any reason prior to vesting of the shares, the non-vested shares shall be forfeited by the employee. No restricted shares were vested as of December 31, 2016. On January 20, 2017, 200 shares of restricted shares were forfeited. Preferred Shares The Company is authorized to issue unlimited preferred shares, in one or more series, with such designations, voting and other rights and preferences as may be determined from time to time by the board of directors. As of December 31, 2016, there were 715,000 preferred shares issued and outstanding. |
Loans Receivable, Net
Loans Receivable, Net | 12 Months Ended |
Dec. 31, 2016 | |
Loans Receivable, Net [Abstract] | |
LOANS RECEIVABLE, NET | 8. LOANS RECEIVABLE, NET The interest rates on loans issued ranged between 17.28% ~24.00% and 18.36% ~ 22.44% for the years ended December 31, 2016 and 2015, respectively. Loans receivable consisted of the following: December 31, December 31, 2016 2015 Business loans $ 58,387,204 $ 41,794,907 Personal loans 96,332,530 99,118,875 Total loan receivable 154,719,734 140,913,782 Provision for loan losses Collectively assessed (1,405,536 ) (1,401,061 ) Individually assessed (5,020,771 ) (807,647 ) Provision for loan losses (6,426,307 ) (2,208,708 ) Loans receivable, net $ 148,293,427 $ 138,705,074 The Company originates loans to customers located primarily in Urumqi City, Xinjiang Province. This geographic concentration of credit exposes the Company to a higher degree of risk associated with this economic region. All loans are short-term loans that the Company has made to either business or individual customers. As of December 31, 2016 and 2015, the Company had 71 and 36 business loan customers, and 151 and 125 personal loan customers, respectively. Most loans are either guaranteed by a third party or related parties (please refer to Note 23) whose financial strength is assessed by the Company to be sufficient or secured by collateral. Provision for loan losses is estimated on a quarterly basis based on an assessment of specific evidence indicating doubtful collection, historical experience, loan balance aging and prevailing economic conditions. For the years ended December 31, 2016 and 2015, a provision of $4,650,887 and $2,166,110 were charged to the statement of income, respectively. $91,812 and $642,178 write-offs against provisions have occurred for these periods, respectively. Interest on loans receivable is accrued and credited to income as earned. The Company determines a loan's past due status by the number of days that have elapsed since a borrower has failed to make a contractual loan payment. Accrual of interest is generally discontinued when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days. The following table represents the aging of loans as of December 31, 2016 by type of loan: 1-89 Days 90-179 Days Past Due 180-365 Days Past Due Over 1 year Past Due Total Current Total Business loans $ - $ 719,966 $ 5,077,202 $ 719,966 $ 6,517,134 $ 51,870,070 $ 58,387,204 Personal loans - - 881,239 - 881,239 95,451,291 96,332,530 $ - $ 719,966 $ 5,958,441 $ 719,966 $ 7,398,373 $ 147,321,361 $ 154,719,734 The following table represents the aging of loans as of December 31, 2015 by type of loan: 1-89 Days 90-179 Days Past Due 180-365 Days Past Due Over 1 year Past Due Total Current Total Business loans $ - $ 9,698,538 $ 770,214 $ - $ 10,468,752 $ 31,326,155 $ 41,794,907 Personal loans - 4,254,664 - - 4,254,664 94,864,211 99,118,875 $ - $ 13,953,202 $ 770,214 $ - $ 14,723,416 $ 126,190,366 $ 140,913,782 Analysis of loans by collateral The following table summarizes the Company’s loan portfolio by collateral as of December 31, 2016: Business Personal Total Guarantee backed loans $ 44,114,593 $ 40,442,991 $ 84,557,584 Pledged assets backed loans 11,392,746 53,489,172 64,881,918 Collateral backed loans 2,879,865 2,400,367 5,280,232 $ 58,387,204 $ 96,332,530 $ 154,719,734 The following table summarizes the Company’s loan portfolio by collateral as of December 31, 2015: Business Personal Total Guarantee backed loans $ 16,505,692 $ 30,525,132 $ 47,030,824 Pledged assets backed loans 5,593,296 65,289,524 70,882,820 Collateral backed loans 19,695,919 3,304,219 23,000,138 $ 41,794,907 $ 99,118,875 $ 140,913,782 Most guarantee backed loans were guaranteed by shareholders of the Company. (See Note 23). Collateral Backed Loans A collateral backed loan is a loan in which the borrower puts up an asset under their ownership, possession or control, as collateral for the loan. An asset usually is land use rights, equity shares, equipment or buildings. The loan is secured against the collateral and we do not take physical possession of the collateral at the time the loan is made. We will verify ownership of the collateral and then register the collateral with the appropriate government entities to complete the secured transaction. In the event that the borrower defaults, we can then take possession of the collateral asset and sell it to recover the outstanding balance owed. If the sale proceeds of the collateral asset is not sufficient to pay off the loan in full, we will file a lawsuit against the borrower and seek judgment for the remaining balance. Pledged Asset Backed Loans Pledged assets backed loans are loans with pledged assets. Lenders has rights of access to the pledged assets at the time the loan is made and do not need to register them with government entities to secure the loan. If the borrower defaults, we can sell the assets to recover the outstanding balance owed. For the supply chain financing involved for tire industry, the borrowers pledged with inventory and the whole sellers (certain are related parties) guarantee the repayment of loan if the borrowers defaults. Both collateral loans and pledged loans are considered secured loans. The amount of a loan that lenders provide depends on the value of the collateral pledged. Guarantee Backed Loans A guaranteed loan is a loan guaranteed by a corporation or high net worth individual which includes related parties (refer to Note 23). As of December 31, 2016 and 2015, guaranteed loans make up 54.7% and 33.4% of our direct loan portfolio, respectively. As of December 31, 2016 and 2015, the Company pledged $50,396,198 and $44,512,223 gross loans receivable for loans the Company borrowed from China Great Wall Assets Management Co. Ltd. and related parties (See Note 14 and Note 15), which consisted of the following: December 31, December 31, 2016 2015 Business loans $ 10,966,526 $ 13,241,523 Personal loans 39,429,672 31,270,700 Total pledged loans receivable $ 50,396,198 $ 44,512,223 |
Provision for Loan Losses
Provision for Loan Losses | 12 Months Ended |
Dec. 31, 2016 | |
Provision for Loan Losses [Abstract] | |
PROVISION FOR LOAN LOSSES | 9. PROVISION FOR LOAN LOSSES The provision for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the provision. The provision is based on the Company’s past loan loss history, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The provision is calculated at portfolio-level since our loans portfolio is generally comprised of smaller balance homogenous loans and is collectively evaluated for impairment. For the purpose of calculating portfolio-level reserves, we have grouped our loans into two portfolio segments: Business and Personal. The provision consists of the combination of a quantitative assessment component based on statistical models, a retrospective evaluation of actual loss information to loss forecasts, value of collateral and could include a qualitative component based on management judgment. In estimating the probable loss of the loan portfolio, the Company also considers qualitative factors such as current economic conditions and/or events in specific industries and geographical areas, including unemployment levels, trends in real estate values, peer comparisons, and other pertinent factors such as regulatory guidance. Finally, as appropriate, the Company also considers individual borrower circumstances and the condition and fair value of the loan collateral, if any. In addition, the Company calculates the provision amount as below: 1. General Reserve - this reserve covers potential losses due to risks related to the region of China, industry, company or types of loan. The reserve rate is determined by total loan receivable balance and to be used to cover unidentified probable loan loss. 2. Special Reserve - is fund set aside covering losses due to risks related to the region of China, industry, company or type of loans. The reserve rate could be decided based on management estimate of loan collectability. The loan portfolio did not include any loans outside of the PRC. Generally, the primary factors for the evaluation of provision for loan losses consist of business performance, financial position, cash flow and other operational performance of the debtors. Among these, cash flow of the debtors is the primary funding source for repayment for determining the provision for loan losses and any collateral, pledged asset or guarantee is considered as a secondary funding source for repayment. Besides the repayment ability and willingness to repay, the Company evaluates the provision for loan losses of collateral backed loans based on whether the fair value of the collateral if the repayment is expected to be provided by the collateral is sufficient or not. For loans with pledged assets, the net realizable value of pledged assets for pledged backed loans will be estimated to see if they have sufficient coverage on the loans. For the guarantee backed loans, the Company evaluates the provision for loan losses based on the combination of the guarantee, including the fair value and net realizable value of guarantor’s financial position, credibility, liquidity and cash flow. As of December 31, 2016, the percentage of collateral, pledged asset, and guarantee backed loans were 3.4%, 41.9% and 54.7% respectively. As of December 31, 2015, the percentage of collateral, pledged asset, and guarantee backed loans were 16.3%, 50.3% and 33.4% respectively. The valuation assessment of collateral and pledged assets was based on the valuation report issued by a valuation firm or the Company’s internal risk control department. The assets values were generally 50% to 60% of the fair value of collateral and pledged assets. The valuation will be updated for the loan period over one year in case of renewals and repeat customers. However, China Lending Group’s average loan term is less than 7 months, the value of the collateral and pledged assets, and guarantee backing the loans will be reviewed and monitored on a monthly basis through site visits. As of December 31, 2016 and 2015, nil and 11.28% of collateral backed and pledged backed loan were under valuation assessment by a valuation firm. The assessment of the remaining loans was performed by the Company’s internal risk control department. China Lending Group issues guarantee-backed loans in accordance with its loan management policy, and each guarantee-backed loan will undergo standard assessment procedures for willingness and ability of the guarantor to perform under its guarantee. China Lending Group accepts guarantees provided by three types of guarantors: professional guarantee companies, corporations and individuals which includes related parties (see note 23). In assessing the willingness and ability of a professional guarantee company to perform under a guarantee, the Company consider factors including its guarantee licenses, size of registered capital, corporate governance, internal audit system, risk management and compensation system, risk reserve, length of operation history especially cooperation history with China Lending Group, its default costs and other pertinent factors such as the loan size backed by guarantee over its net assets. In assessing the willingness and ability of a corporate guarantor to perform under a guarantee, the Company consider factors including nature of its businesses, size of registered capital, annual revenues, continuous profitability in the past three years, stability and adequacy of income and cash flows, clean credit history, current liabilities, willingness to accept credit monitoring by China Lending Group, its default costs and other pertinent factors such as the loan size backed by guarantee over its net assets. In assessing the willingness and ability of an individual guarantor to perform under a guarantee, the Company consider factors including their residency, whether being able to provide permanent residential addresses, marital status, occupations, legitimacy and stability of incomes, assets and liabilities, clean credit history, no criminal history, their default costs and other pertinent factors such as the loan size backed by guarantee over their net assets. The global economic environment became worse during the past and the current years. Such economic environment has caused liquidity problem for many companies, which also increased the frequency on defaulting the repayments by debtors, hence the increases of special reserve for loan losses. As of December 31, 2016 and 2015, $5,020,771 and $807,647 were charged as specific reserve with specific provision rates ranged from 1.5%-100% and 25%-75%, respectively. While management uses the best information available to make loan loss provision evaluations, adjustments to the provision may be necessary based on changes in economic and other conditions or changes in accounting guidance. The following tables present the activity in the provision for loan losses and related recorded investment in loans receivable by classes of the loans individually and collectively evaluated for impairment as of and for the years ended December 31, 2016 and 2015: Provision for loan losses for the year ended December 31, 2016 Business Personal Total Provision for loan losses beginning balance $ 1,053,579 $ 1,155,129 $ 2,208,708 Charge-offs (91,812 ) - (91,812 ) Provisions 3,492,322 1,158,565 4,650,887 Foreign currency translation adjustment (215,956 ) (125,520 ) (341,476 ) Provision for loan losses ending balance 4,238,133 $ 2,188,174 $ 6,426,307 Ending balance: individually evaluated for impairment 3,728,072 1,292,699 5,020,771 Ending balance: collectively evaluated for impairment $ 510,061 $ 895,475 $ 1,405,536 Provision for loan losses for the year ended December 31, 2015 Business Personal Total Provision for loan losses beginning balance $ 466,921 $ 863,863 $ 1,330,784 Charge-offs (642,178 ) (642,178 ) Write-off in loans sold to a related party (32,109 ) (502,986 ) (535,095 ) Provisions 1,311,620 854,490 2,166,110 Foreign currency translation adjustment (50,675 ) (60,238 ) (110,913 ) Provision for loan losses ending balance 1,053,579 $ 1,155,129 $ 2,208,708 Ending balance: individually evaluated for impairment 642,051 165,596 807,647 Ending balance: collectively evaluated for impairment $ 411,528 $ 989,533 $ 1,401,061 |
Loan Impairment
Loan Impairment | 12 Months Ended |
Dec. 31, 2016 | |
Loan Impairment [Abstract] | |
LOAN IMPAIRMENT | 10. LOAN IMPAIRMENT A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for corporate and personal loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. Provision for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. Currently, estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral which approximates to the carrying value due to the short-term nature of the loans. The impaired amounts of personal loans were $6,784,962 and $4,254,664 as of December 31, 2016 and 2015, respectively. The impaired amounts of business loans were $7,381,094 and $10,468,752 as of December 31, 2016 and 2015, respectively. Loans with modified terms are classified as troubled debt restructurings if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary below market rate reduction in interest rate or an extension of a loan’s stated maturity date. Non-accrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. Loans classified as troubled debt restructurings are designated as impaired. Due to the nature of the Company’s operation and the interest concessions granted, the troubled debt restructuring designation will not be removed until the loan is paid-off or otherwise disposed of. The Company reported its first troubled debt restructuring on December 31, 2015. The Company has not removed any loan classified as a trouble debt restructuring from that classification. The Company allows a one-time loan extension based on an ancillary company policy with a period up to the original loan period, which is usually within twelve months. According to the Company’s loan management policy, granting initial one-time extension requires a new underwriting and credit evaluation. Borrowers are required to submit extension application 10 days before expiration of the original loan. Then the Company’s loan service department will investigate whether material changes have happened to the borrower’s business which may impact its repayment ability. The Company’s risk management department will reevaluate the loan. If the Company decides to grant one-time extension, an extension agreement will be executed between the borrower and the Company, plus commitment letter from guarantor to agree the loan extension and extend the guarantee duration. In evaluating the extension and underwriting new loans, China Lending Group will request that borrowers obtain guarantees from state-owned or public guarantee companies. Even though the Company allows a one-time loan extension with a period up to the original loan period, which is usually within twelve months. Such extension is not considered to be a troubled debt restructuring because the Company does not grant a concession to borrowers. The principal of the loan remains the same and the interest rate is fixed at the current interest rate at the time of extension. No loans and 17 loans of $14.9 million were granted one-time extension for the years ended December 31, 2016 and 2015, respectively, which accounted for nil and 6.3% of total loans originated during the years ended December 31, 2016 and 2015, respectively. A loan is considered to be a troubled debt restructuring loan when that is restructured or modified for economic or legal reasons, where these conditions are present: 1) The Company grants a concession that it otherwise would not consider and 2) The borrower is having financial difficulties. Under unusual circumstance, in order to reduce the potential losses on troubled debt, the Company may consider granting concession to borrowers with financial difficulties which has significant delay or significant shortfall in amount of payments. In order to deter troubled debt restructurings, stringent scrutiny and approval from the Company’s Loan Review Committee is required prior to the granting of concession on troubled debt. The troubled debt restructuring amounts of personal loans were $881,239 and $1,035,168 as of December 31, 2016 and December 31, 2015, respectively, after providing provision for loan loss amounting to $440,619 and $22,377, respectively. The troubled debt restructuring amounts of business loans were $6,517,134 and $3,080,857 as of December 31, 2016 and December 31, 2015, respectively, after providing provision for loan loss amounting to $3,618,550 and $73,129, respectively. The increase in provisions in the troubled debt restructuring both in personal loans and business loans in December 31, 2016, as compared to that of December 31, 2015, was mainly attributable to the information regarding loans that management believes are isolated and involve unique circumstances, including having a loan and its collateral being in an industry in which the Company does not typically engage, a problem with a bridge loan where a bank reversed its oral commitment to lend to a borrower after a short bridge period, a private guarantor that had less capital and liquidity than the Company had been led to believe and a loan collateralized by collateral that the borrower no longer had proper title to and where the borrower committed fraud by applying for the loan before the title to the collateral was transferred. These issues are isolated and management believes they are not indicative of future systemic issues and has addressed these types of issues appropriately going forward. As of December 31, 2016 and 2015, there were no receivable derecognized for the real estate related investment obtained from collateral. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 11. PROPERTY AND EQUIPMENT The Company’s property and equipment used to conduct day-to-day business are recorded at cost less accumulated depreciation. Depreciation expense is calculated using straight-line method over the estimated useful life below: Useful Life December 31, December 31, years 2016 2015 Furniture and fixtures 5 $ 14,018 $ 4,208 Vehicles 4 133,885 143,229 Electronic equipment 3 19,628 16,256 Less: accumulated depreciation (79,068 ) (47,395 ) Property and equipment, net $ 88,463 $ 116,298 Depreciation expense totaled $37,448 and $39,415 for the years ended December 31, 2016 and 2015, respectively. |
Cost Method Investment
Cost Method Investment | 12 Months Ended |
Dec. 31, 2016 | |
Investments, All Other Investments / Loans from a Related Party, a Cost Investment Investee [Abstract] | |
COST METHOD INVESTMENT | 12. COST METHOD INVESTMENT December 31, December 31, 2016 2015 Beginning balance $ 3,851,071 $ - Addition - 3,851,071 Less: impairment loss - - Foreign currency adjustment (251,240 ) - Ending balance $ 3,599,831 $ 3,851,071 I n January 2015, the Company made a commitment to invest 5% of the paid-in capital in Xinjiang Microcredit Refinancing Co., Ltd. (“Microcredit Refinancing”). Microcredit Refinancing is a newly formed micro refinancing company in the PRC with total registered capital of RMB 1,000,000,000 (approximately $143,993,250). As of December 31, 2016, Microcredit Refinancing had paid-in capital of RMB 500,000,000 (approximately $75,254,730), and the Company had invested RMB 25,000,000 (approximately $3,599,831) in Microcredit Refinancing. Such investment is accounted for under the cost method as the Company does not have significant influence over Microcredit Refinancing. The cost of this investment approximated $3,599,831 and $3,851,071 as of December 31, 2016 and 2015. Based on the fact that there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the cost method investment for the year ended December 31, 2016 and 2015, and it is determined that it is not practical to estimate the fair value of the investment, the Company did not estimate the fair value of the cost method investment in accordance with ASC 325-20. An impairment charge is recorded if the carrying amount of the equity investment exceeds its fair value and this condition is determined to be other-than-temporary. The Company performs an impairment test on its cost method investment whenever events or changes in business circumstances indicate that another-than-temporary impairment has occurred, by considering current economic and market conditions, operating performance, development stages and technology development, and engaging an independent third-party valuation firm to estimate the fair value of cost method investment, as appropriate. The Company recorded no impairment charge to the carrying value of its investments under the cost method for the years ended December 31, 2016 and 2015. |
Short-Term Bank Loans, Net
Short-Term Bank Loans, Net | 12 Months Ended |
Dec. 31, 2016 | |
Convertible Promissory Note, Short-Term Bank Loans, Net & Secured Loans [Abstract] | |
SHORT-TERM BANK LOANS, NET | 13. SHORT-TERM BANK LOANS, NET The following is a summary of the principal and balance of the Company’s short-term bank loans as of December 31, 2016 and 2015: December 31, December 31, Lender Name Entrust Bank name Interest rate Term 2016 2015 Urumqi Economic Development Zone Zhengxin Financing Guarantee Co., Ltd. Tianshan Rural Commercial Bank Fixed annual rate of 10.0% From January 7, 2016 to January 6 , 2017 $ 1,439,932 $ - Urumqi Changhe Financing Guarantee Co., Ltd. Tianshan Rural Commercial Bank Fixed annual rate of 10.0% From August 9, 2016 to August 8, 2017 1,439,932 - Urumqi Changhe Financing Guarantee Co., Ltd. Bank of Urumqi Co., Ltd Fixed annual rate of 10.0% From July 13, 2016 to July 13, 2017 1,439,932 - Urumqi Changhe Financing Guarantee Co., Ltd. Shanghai Pudong Development Bank Fixed annual rate of 7.0% From December 22, 2016 to December 21, 2017 3,311,845 - 7,631,641 - Less unamortized financing cost (159,111 ) - Short-term bank loans less unamortized financing cost $ 7,472,530 $ - Interest expense incurred on the above short-term bank loans was $580,843 an d $145,400 for the years ended December 31, 2016 and 2015, respectively. Financing expenses amortized on the above short-term bank loans was $134,692 and nil for the years ended December 31, 2016 and 2015, respectively. The loans were guaranteed by certain shareholders in Feng Hui and related parties. (See Note 23) During the year ended December 31, 2015, Feng Hui was granted loans from China Merchants Bank which were entrusted by a former related party of Feng Hui, Urumqi Changhe Financing Guarantee Co., Ltd (“Changhe”), who was a shareholder of Feng Hui before May 5, 2015. After Changhe ceased to be Feng Hui’s shareholder, it entrusted Tianshan Rural Commercial Bank to grant Feng Hui more loans. The interest expenses incurred on loans provided by Changhe were $347,668 for the year ended December 31, 2015. During the year ended December 31, 2016, Feng Hui was granted loans from Tianshan Rural Commercial Bank which were entrusted by Changhe and Urumqi Economic Development Zone Zhengxin Financing Guarantee Co., Ltd. (“Zhengxin”). The interest expenses incurred on loans provided by Changhe and Zhengxin were $417,550 and $163,292 |
Secured Loans
Secured Loans | 12 Months Ended |
Dec. 31, 2016 | |
Convertible Promissory Note, Short-Term Bank Loans, Net & Secured Loans [Abstract] | |
SECURED LOANS | 14. SECURED LOANS The following is a summary of the Company’s secured loans as of December 31, 2016 and 2015: December 31, December 31, Lender name Interest rate Term 2016 2015 China Great Wall Assets Management Co. Ltd. Fixed annual rate of 12.0% From May 29, 2015 to May 28, 2016 $ - $ 9,365,806 China Great Wall Assets Management Co. Ltd. Fixed annual rate of 11.5% From October 29, 2015 to Oct 28, 2016 - 15,373,476 China Great Wall Assets Management Co. Ltd. Fixed annual rate of 11.0% From October 29, 2016 to October 28, 2017 14,370,526 - Less unamortized financing cost (215,558 ) $ 14,154,968 $ 24,739,282 As of December 31, 2016 and 2015, the secured loan has maturity terms within 1 year. Interest expense incurred on the secured loan was $2,081,104 and $2,302,136 for the years ended December 31, 2016 and 2015, respectively. Financing expenses incurred on the above short-term bank loans was $361,423 and nil for the years ended December 31, 2016 and 2015, respectively. The secured loan was guaranteed by shareholders of the Feng Hui (See Note 23), and Feng Hui pledged $ 28,049,885 and $11,830,491 loans receivable from its customers as of December 31, 2016 and 2015, respectively, to secure these loans for the lender. |
Loans from a Related Party, a C
Loans from a Related Party, a Cost Investment Investee | 12 Months Ended |
Dec. 31, 2016 | |
Investments, All Other Investments / Loans from a Related Party, a Cost Investment Investee [Abstract] | |
LOANS FROM A RELATED PARTY, A COST INVESTMENT INVESTEE | 15. LOANS FROM A RELATED PARTY, A COST INVESTMENT INVESTEE The following is a summary of the Company’s loans from Xinjiang Microcredit Refinancing Co. Ltd., financing company in which the Company has a cost-basis investment (see Note 12), as of December 31, 2016 and 2015: Lender name Interest rate Term December 31, 2016 December 31, 2015 Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From August 10, 2015 to August 9, 2016 $ - $ 770,214 Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From August 24, 2015 to August 23, 2016 - 770,214 Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From August 25, 2015 to August 24, 2016 - 3,080,857 Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From September 1, 2015 to August 31, 2016 - 3,080,857 Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From September 23, 2015 to September 22, 2016 - 7,702,143 Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From August 23, 2016 to August 22, 2017 3,599,831 - Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From August 30, 2016 to November 29, 2017 2,159,899 - Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From September 1, 2016 to November 30, 2017 1,439,932 - Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From September 19, 2016 to March 18, 2018 7,199,662 - Total loans from a cost investment investee $ 14,399,324 $ 15,404,285 Interest expenses incurred on the above loans for the years ended December 31, 2016 and 2015 were $1,818,656, and $1,101,871, respectively. The proceeds from these loans were used to fund Feng Hui’s operations. Feng Hui pledged loans receivable totaled $22,346,312 and $32,681,732 for these loans as of December 31, 2016 and 2015, respectively, and Feng Hui’s shareholders provided guarantee for these loans. (See note 23) |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities [Abstract] | |
OTHER LIABILITIES | 16. OTHER LIABILITIES Other liabilities as of December 31, 2016 and 2015 consisted of: December 31, December 31, 2016 2015 Interest payable $ 332,178 $ 551,492 Accruals 446,253 236,701 Other payables 218,206 189,638 Long-term debt 2,879,865 - $ 3,876,502 $ 977,831 On November 16, 2016, Feng Hui received a loan of $2,879,865 from Urumqi High-speed Railway Hub Comprehensive Development & Construction Investment Co., Ltd. with maturity date of November 15, 2021 from November 16, 2016. The interest rate is 1% and the principal is due upon maturity. |
Other Operating Expense
Other Operating Expense | 12 Months Ended |
Dec. 31, 2016 | |
Other Operating Expense [Abstract] | |
OTHER OPERATING EXPENSE | 17. OTHER OPERATING EXPENSE Other operating expense for the years ended December 31, 2016 and 2015 was consisted of: For the years ended 2016 2015 Depreciation and amortization $ 40,004 $ 40,259 Guarantee fee - 217,725 Legal and professional expenses 1,276,271 1,520,930 Office related expenses 1,131,255 265,928 Travel and entertainment 218,618 283,405 Amortization of financing costs - 461,945 Total $ 2,666,148 $ 2,790,192 |
Employee Retirement Benefit
Employee Retirement Benefit | 12 Months Ended |
Dec. 31, 2016 | |
Employee Retirement Benefit [Abstract] | |
EMPLOYEE RETIREMENT BENEFIT | 18. EMPLOYEE RETIREMENT BENEFIT The Company has made employee benefit contribution in accordance with Chinese relevant regulations, including retirement insurance, unemployment insurance, medical insurance, work injury insurance, birth insurance and housing fund. The Company recorded the contribution in the salary and employee charges when incurred. The contributions made by the Company were $178,547 and $62,793 for the years ended December 31, 2016 and 2015, respectively. |
Dividend Payable
Dividend Payable | 12 Months Ended |
Dec. 31, 2016 | |
Dividend Payable [Abstract] | |
DIVIDEND PAYABLE | 19. DIVIDEND PAYABLE Feng Hui, the VIE of Adrie, declared dividends of RMB 43,000,000 (approximately $6,903,416) for the year ended December 31, 2015 to its shareholders on January 13, 2016, which were paid on March 10, 2016. On August 29, 2016, the Company declared common shares dividend of $2,060,435 which represents 15% of the Company’s 2015 net income to the holders of record of the Company’s ordinary shares on September 8, 2016. On October 18, 2016, the Company paid common shares dividends by cash of $1,323,275 and ordinary shares totaled 2,013 shares with par value of $8.16 amounted $17,160. The remaining dividends of $720,000 for 8,000,000 escrow shares will be paid when these shares are vested. On December 19, 2016, the Company announced a one-time dividend of $0.148 per ordinary share which represents an amount equal to twenty-five percent (25%) of (i) the Company’s consolidated net income for the period beginning January 1, 2016 through September 30, 2016, the end of the Company’s third quarter, less (ii) the amount of dividends paid, payable or otherwise accrued as preferred dividends with respect to the Company’s Series A preferred shares for such period. The dividend were paid on January 20, 2017 to holders of record of the Company’s Ordinary Shares on December 29, 2016. The dividend were paid by ordinary shares. No fractional shares were issued. All dividends were rounded up to the nearest whole number of Ordinary Shares when fractional shares occur. No cash payments were made for any fractional shares. On December 31, 2016, the Company declared a dividend of $333,327 for convertible redeemable preferred shares, which was included in the balance of convertible redeemable preferred shares. Accumulated unpaid dividends as of December 31, 2016 were $4,442,048, of which $3,388,721 dividends were paid subsequently. |
Statutory Reserves
Statutory Reserves | 12 Months Ended |
Dec. 31, 2016 | |
Statutory Reserves Disclosure [Abstract] | |
STATUTORY RESERVES | 20 . STATUTORY RESERVES In accordance with PRC regulations, the subsidiaries and VIE of the Company in the PRC are required to provide a statutory reserve, which is appropriated from net income as reported in the Company’s statutory accounts. The Company is required to allocate 10% of its annual after-tax profit to the statutory reserve until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. The statutory reserves can only be used for specific purposes and are not distributable as cash dividends. As of December 31, 2016 and 2015, total statutory reserves were $ 6,536,238 and $4,667,254, respectively, which did not reach 50% of the Company’s registered capital. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 21. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per common share for the years ended December 31, 2016 and 2015, respectively: For the years ended 2016 2015 Net income $ 17,278,404 $ 14,119,814 Dividends to Class A preferred shareholders (333,327 ) - Net income attributable to the ordinary shareholders 16,945,077 14,119,814 Basic weighted-average common shares outstanding 18,012,452 20,519,156 Conversion of Class A Convertible Redeemable Preferred Shares 715,000 - Release of Restricted Shares Placed in Escrow 2,666,667 - Conversion of Unit Purchase Option 136,508 - Conversion of Restricted Shares 208 - Diluted weighted-average common shares outstanding 21,530,835 20,519,156 Earnings per share: Basic $ 0.94 $ 0.69 Diluted $ 0.79 $ 0.69 Basic earnings per share to the ordinary shareholders are computed by dividing the net income attributable to the ordinary shareholders by the weighted average number of common shares outstanding during the year. On January 20, 2017, the Company has issued 519,156 common share dividends. The computation of basic and diluted EPS shall be retroactively adjusted for all periods presented. Diluted earnings per share includes the weighted average dilutive effect of Class A Convertible Redeemable Preferred Shares, Unit Purchase Option, Convertible Promissory Note and Non-vested Restricted Shares to employees for the year ended December 31, 2016. Warrants are anti-dilutive for the year ended December 31, 2016. 8 million restricted shares held in Escrow are excluded for both basic and diluted weighted average shares since the earn out target attainable test is supposed to be performed at the year ended December 31, 2016 and shares will not be issuable until the year end as of December 31, 2016, 2017 and 2018 if the Company passed the earn out target attainable test. The effect of potential release of escrowed 2,666,667 shares has been included in the calculation of diluted weighted-average common shares outstanding based on the Company’s estimate on the fact that the Company could meet the earned-out target for the year December 31, 2016. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2016 | |
Taxation [Abstract] | |
TAXATION | 22. TAXATION China Lending Corporation is incorporated in British Virgin Islands with zero income tax rate. China Lending Corporation did not generate taxable income in the British Virgin Islands for the period from July 7, 2016 to December 31, 2016. Adrie is incorporated in the British Virgin Islands with zero income tax rate. Adrie did not generate taxable income in the British Virgin Islands for the period from November 19, 2014 (date of inception) to December 31, 2016. Feng Hui Holding was incorporated in Hong Kong and is subject to Hong Kong profits tax at 16.5%. No provision for Hong Kong income or profit tax has been made as the Company has no assessable profit for the period from February 11, 2015 (date of inception) to December 31, 2016 because the Company has no operation in Hong Kong. Jing Kai was incorporated in the PRC. Jing Kai did not generate taxable income in the PRC for the period from May 14, 2015 (date of inception) to December 31, 2016. Ding Xin was incorporated in the PRC. Ding Xin generated taxable income in the PRC for the period from May 20, 2015 (date of inception) to December 31, 2016, which is subject to PRC income tax at a rate of 25%. Ding Tai was incorporated in the PRC. Ding Tai did not generate taxable income in the PRC for the period from December 19, 2016 (date of inception) to December 31, 2016. Feng Hui was incorporated in the PRC. Feng Hui generated taxable income in the PRC for the years ended December 31, 2016 and 2015. As stipulated by the Taxation Law of PRC, Feng Hui is subjected to PRC income tax at a rate of 25%. Feng Hui is a qualified enterprise engaged in industry list of Western Development Strategy and is therefore entitled to preferential tax rate of 15% till December 31, 2020. The Company evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. For the years ended December 31, 2016 and 2015, the Company had no unrecognized tax benefits. The Company does not anticipate any significant increase to its liability for unrecognized tax benefit within the next 12 months. The Company will classify interest and penalties related to income tax matters, if any, in income tax expense. For the years ended 2016 2015 Income tax expense is comprised of: Current income tax $ 4,789,085 $ 3,132,831 Deferred income tax (benefit)/ expense (667,747 ) (274,924 ) Total provision for income taxes $ 4,121,338 $ 2,857,907 Deferred income taxes are recognized for tax consequences in future years of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end. Deferred income tax was measured using the enacted income tax rates for the periods in which they are expected to be reversed. The tax effects of temporary differences that give rise to the following approximate deferred tax assets and liabilities as of December 31, 2016 and 2015 are presented below: December 31, December 31, 2016 2015 Accrued interest receivable $ (159,357 ) $ (1,340 ) Accrued interest payable 49,827 82,724 Provision for loan losses 967,028 121,476 Accruals 4,109 40,580 Deferred tax assets $ 861,607 $ 243,440 The Company had no net operating loss carry forward as of December 31, 2016 and 2015. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The management considered all available evidence, both positive and negative, in determining the realizability of deferred tax assets at December 31, 2016. Management considered carry back availability, the scheduled reversals of deferred tax liabilities, projected future taxable income during the reversal periods, and tax planning strategies in making this assessment. Management also considered recent history of taxable income, trends in the Company’s earnings and tax rate, positive financial ratios, and the impact of the downturn in the current economic environment (including the impact of credit on provision and provision for loans receivable) of the Company. Based upon its assessment, management believes that a valuation provision was not necessary as of December 31, 2016. The effective tax rates for the years ended December 31, 2016 and 2015 were 19.3% and 16.9%, respectively. The reconciliation between the effective income tax rate and the PRC statutory income tax rate of 15% and 25% respectively are as follows: For the years ended 2016 2015 PRC statutory tax rate 25.0 % 25.0 % Effect of preferential income tax rate (8.3 )% (8.7 )% Effect of different income tax rate in other jurisdictions - 0.2 % Effect of non-deductible expenses 0.1 % 0.5 % Others 2.5 % (0.1 )% Effective tax rate 19.3 % 16.9 % The enterprise income tax payable was as follows: December 31, December 31, 2016 2015 Income Tax Payable $ 810,975 $ 913,607 |
Related Party Transactions and
Related Party Transactions and Balances | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions and Balances [Abstract] | |
RELATED PARTY TRANSACTIONS AND BALANCES | 23. RELATED PARTY TRANSACTIONS AND BALANCES A. Loans to related parties Loans made to Loans Receivable from During the years ended December 31, As of As of December 31, 2016 2015 2016 2015 Employees of the Company $ - $ 2,445,094 $ - $ 1,113,730 Interest income derived from the above loans to related parties were $133,891 and $531,559 for the years ended December 31, 2016 and 2015, respectively. These loans were made in the normal course of the Company’s lending operation. The interest rates on the above loans ranged between nil~nil and 21.36%~24.00% for the years ended December 31, 2016 and 2015, respectively. As of December 31, 2016 and 2015, a general provision for loan losses of nil and $11,137 was provided for the loans receivable from related parties. B. Loans from a related party Creditor Entrust Bank Name Interest Rate Term Principal As of December 31, 2016 As of December 31, A non-controlling shareholder of the Company (until May 5, 2015) China Merchants Bank Fixed annual rate of 12% From January 27, 2015 to December 26, 2015 $ 1,605,446 $ - $ 1,605,446 The outstanding of loan from a related party was nil and $1,605,446 as of December 31, 2016 and 2015, respectively. For the year ended December 31, 2015, Feng Hui was granted loans from China Merchants Bank which were entrusted by a former related party of Feng Hui, Urumqi Changhe Financing Guarantee Co., Ltd (“Changhe”), who was a shareholder of Feng Hui before May 5, 2015. After Changhe ceased to be Feng Hui’s shareholder, it entrusted Tianshan Rural Commercial Bank to grant Feng Hui more loans. The interest expenses incurred on loans provided by Changhe were $61,542 for the year ended December 31, 2015. C. Guarantees - Guarantees of the loans receivable provided by the Company’s shareholders and related parties of the Company, and outstanding balances were as follows: For the years ended As of December 31, As of December 31, Shareholders and related parties 2016 2015 2016 2015 Non-controlling shareholders of the Company $ 110,504,045 $ 65,943,681 $ 39,886,130 $ 43,416,978 Legal representative of the Company and a non-controlling shareholder of the Company - 907,077 - 870,342 Related companies of a non-controlling shareholder of the Company 62,383,161 25,382,096 46,456,542 7,005,869 Employee of the Company 75,255 481,634 - - Management of non-controlling shareholders of the Company - 3,729,450 - 3,578,416 $ 172,962,461 $ 96,443,938 $ 86,342,672 $ 54,871,605 - Guarantees of the short-term bank loans of the Company provided by the Company’s shareholders as of December 31, 2016, and 2015 were 7,631,641 and nil, respectively. Details were as follows: Bank name Aggregated Principal As of December 31, 2016 Shareholders and related parties Tianshan Rural Commercial Bank $ 8,639,593 $ 2,879,864 General manager of the Company and a non-controlling shareholder of the Company Bank of Urumqi Co., Ltd 1,439,932 1,439,932 General manager of the Company and a non-controlling shareholder of the Company Shanghai Pudong Development Bank 3,311,845 3,311,845 General manager of the Company and non-controlling shareholders of the Company $ 13,391,370 $ 7,631,641 - Guarantees of the secured loans and loans As of and for the year ended December 31, 2016: Lender name Principal As of December 31, 2016 Shareholders and related parties China Great Wall Assets Management Co. Ltd. $ 37,495,842 $ 14,370,526 Non-controlling shareholders of the Company Xinjiang Microcredit Refinancing Co., Ltd. 28,798,648 14,399,325 Non-controlling shareholders of the Company $ 66,294,490 $ 28,769,851 As of and for the year ended December 31, 2015: Lender name Principal As of December 31, 2015 Shareholders and related parties China Great Wall Assets Management Co. Ltd. $ 40,896,132 $ 24,739,282 Non-controlling shareholders of the Company Xinjiang Microcredit Refinancing Co., Ltd. 15,404,285 15,404,285 Non-controlling shareholders of the Company $ 56,300,417 $ 40,143,567 D. Amount due from a related party The following is a summary of amounts due from a related party as of December 31, 2016, and 2015: December 31, December 31, 2016 2015 A related company of non-controlling shareholders of the Company $ - $ 1,653,839 E. Sale of loans receivable to a related party On November 26, 2015, the Company sold loan receivables totaling RMB 56,100,000 (approximately $9,006,000) to Xinjiang Feng Hui Zhengxin Assets Management Co., Limited ("Zhengxin") for RMB 56,100,000 (approximately $9,006,000) without recourse and received in return fixed cash payments totaling RMB 45,363,776 (approximately $7,282,000) as of December 31, 2015. The fair value of loan receivables at the time sold was RMB 52,767,000 (approximately $8,471,000) and the Company has recognized a capital gain of RMB 3,333,000 (approximately $535,000) in additional paid-in capital. As of December 31, 2015, the outstanding amount due from Zhengxin was RMB 10,736,224 (approximately $1,654,000), which was received from Zhengxin in January 2016. |
Concentration of Credit Risks
Concentration of Credit Risks | 12 Months Ended |
Dec. 31, 2016 | |
Risks/Concentration of Credit Risks [Abstract] | |
CONCENTRATION OF CREDIT RISKS | 24. CONCENTRATION OF CREDIT RISKS As of December 31, 2016 and 2015, the Company held cash of $4,496,588 and $6,732,601, respectively, that was uninsured by the government authority. To limit exposure to credit risk relating to deposits, the Company primarily places cash deposits only with large financial institutions in the PRC with acceptable credit ratings. The Company’s operations are carried out in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC as well as by the general state of the PRC’s economy. The business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. No customer accounted for more than 10% of total loan balance as of December 31, 2016 and 2015. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 25. COMMITMENTS AND CONTINGENCIES Legal proceedings For the year ended December 31, 2016, the Company was involved in four lawsuits with its loan customers for the aggregated claim of delinquent balances of $6.68 million. As of December 31, 2016, three of the cases with an aggregated claim of $5.96 million had been meditated by the Court in favor of the Company and one of cases with an aggregated claim of $719,966 was in the process of enforcement. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Event [Abstract] | |
SUBSEQUENT EVENT | 26. SUBSEQUENT EVENT On December 19, 2016, the Company announced a one-time dividend of $0.148 per ordinary share which represents an amount equal to twenty-five percent (25%) of (i) the Company’s consolidated net income for the period beginning January 1, 2016 through September 30, 2016, the end of the Company’s third quarter, less (ii) the amount of dividends paid, payable or otherwise accrued as preferred dividends with respect to the Company’s Series A preferred shares for such period. On January 20, 2017, the dividends were paid by the Company in total of 519,156 Ordinary Shares to holders of record of the Company’s Ordinary Shares on December 29, 2016. On January 24, 2017, Feng Hui Holding established Xinjiang Xin Quan Financial Leasing Co., Ltd. (“Xin Quan”) with registered capital of $30,000,000. Xin Quan is engaged in the business of financial leasing service. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The consolidated financial statements of the Company and its subsidiaries and VIE are prepared and presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All significant inter-company transactions and balances have been eliminated upon consolidation. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of bank deposits with original maturities of three months or less, all of which are unrestricted as to withdrawal and uninsured. Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which at times, may exceed the U.S. Federal depository insurance coverage of $250,000, or other limits of protection if held in financial institutions outside of the U.S., such as Government securities coverage of HK$500,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts. |
Loans receivable, net | Loans receivable, net Loans receivable primarily represent loan amounts due from customers. Loans receivable are recorded at unpaid principal balances net of provision that reflects the Company’s best estimate of the amounts that will not be collected. The loans receivable portfolio consists of business and personal loans (See Note 8). |
Provision for loan losses | Provision for loan losses The provision for loan losses is increased by charges to income and decreased by charge offs (net of recoveries). Recoveries represent subsequent collection of amounts previously charged-off. The increase in provision for loan losses is the netting effect of “reversal” and “provision” for both business and personal loans. If the ending balance of the provision for loan losses after any charge offs (net of recoveries) is less than the beginning balance, it will be recorded as a “reversal”; if it is larger, it will be recorded as a “provision” in the provision for loan loss. The netting amount of the “reversal” and the “provision” is presented in the statements of income and comprehensive income The provision consists of specific and general components. The specific component consists of the amount of impairment related to loans that have been evaluated on an individual basis, and the general component consists of the amount of impairment related to loans that have been evaluated on a collective basis. Loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts when due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”). The Company recognizes a charge-off when management determines that full repayment of a loan is not probable. The primary factor in making that determination is the potential outcome of a lawsuit against the delinquent debtor. The Company will recognize a charge-off when the Company loses contact with the delinquent borrower for more than nine months or when the court rules against the Company to seize the collateral asset of the delinquent debt from either the guarantor or borrower. In addition, when the recoverability of the delinquent debt is highly unlikely, the senior management team will go through a stringent procedure to approve a charge-off. Management estimates the provision balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the provision may be made for specific loans, but the entire provision is available for any loan that, in management’s judgment, should be charged-off. The provision for loan losses is maintained at a level believed to be reasonable by management to absorb probable losses inherent in the portfolio as of each balance sheet date. The provision is based on factors such as the size and current risk characteristics of the portfolio, an assessment of individual loans and actual loss, delinquency, and/or risk rating record within the portfolio (Note 9). The Company evaluates its provision for loan losses on a quarterly basis or more often as necessary. |
Interest and fee receivable | Interest and fee receivable Interest and fee receivable are accrued and credited to income as earned but not received. The Company determines a loan past due status by the number of days that have elapsed since a borrower has failed to make a contractual interest or principal payment. Accrual of interest is generally discontinued when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan interest or principal becomes past due by more than 90 days. Additionally, any previously accrued but uncollected interest is reversed. Subsequent recognition of income occurs only to the extent payment is received, subject to management’s assessment of the collectability of the remaining interest and principal. Loans are generally restored to an accrual status when it is no longer delinquent and collectability of interest and principal is no longer in doubt and past due interest is recognized at that time. |
Cost method investment | Cost method investment The Company carries its cost method investments at cost, recognized income as any dividend declared from distributions of the investee’s earnings if any and only adjusts for other-than-temporary impairment and distributions of earnings as the Company’s equity interest in the investee is less than 20%. Management regularly evaluates the investment for impairment based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. |
Property and equipment | Property and equipment The property and equipment are stated at cost less accumulated depreciation. The depreciation is computed on the straight-line method over the estimated useful lives of the assets. Estimated useful lives of property and equipment are stated in Note 11. The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the accounts and includes any gain or loss in the statement of income. The Company charges maintenance, repairs and minor renewals directly to expenses as incurred; major additions and betterment to equipment are capitalized. |
Impairment of long-lived assets | Impairment of long-lived assets The Company’s definite long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. The Company tests long-lived assets, including property and equipment and finite lived intangible assets, for impairment test when there is triggering event. Only indefinite lived assets have to be tested annually or more frequently upon the occurrence of an event or when circumstances indicate that the net carrying amount is greater than its fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows as the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available in making whatever estimates, judgments and projections are considered necessary. There were no impairment losses for the years ended December 31, 2016 and 2015. |
Fair values of financial instruments | Fair values of financial instruments ASC Topic 825, “Financial Instruments” (“Topic 825”), requires disclosure of fair value information of financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Topic 825 excludes certain financial instruments and all nonfinancial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company. Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. As of December 31, 2016 and 2015, financial instruments of the Company were primarily comprised of cash, loans receivable, accrued interest receivables, cost method investment, other receivables, short-term bank loans, secured loans and loans from a cost investment investee, taxes payable, convertible promissory note payable, convertible redeemable preferred shares, dividends payable, other payable and accrued expenses, which were carried at cost on the balance sheets, and carrying amounts approximated their fair values because of their generally short maturities. |
Foreign currency translation and transactions | Foreign currency translation and transactions The reporting currency of China Lending and Adrie is United States Dollars (“$”), which is also the functional currency. The Feng Hui Holding and PRC subsidiaries and VIE maintain their books and records in its local currency, the Hong Kong Dollars (“HKD”) and Renminbi Yuan (“RMB”) respectively, which are their functional currencies as being the primary currency of the economic environment in which these entities operate. Transactions in foreign currencies other than functional currencies are initially recorded at the functional currency rate ruling at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the statements of income. Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange ruling at the balance sheet date. Any differences are taken to profit or loss as a gain or loss on foreign currency translation in the statements of income. In accordance with ASC Topic 830, “Foreign Currency Matters,” the Company translated the assets and liabilities into US dollars using the rate of exchange prevailing at the applicable balance sheet date and the statements of income and cash flows are translated at an average rate during the reporting period, as set forth in the following tables. Adjustments resulting from the translation are recorded in shareholders’ equity as part of accumulated other comprehensive income (loss). As of December 31, 2016 2015 Balance sheet items, except for equity accounts 6.9448 6.4917 For the Years Ended 2016 2015 Items in the statements of income and comprehensive income, and statements of cash flows 6.6441 6.2288 |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews these estimates using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. Significant accounting estimates reflected in the financial statements include: (i) the provision for loan losses; (ii) accrual of estimated liabilities; (iii) contingencies and litigation; and (iv) deferred tax assets and liabilities. |
Revenue recognition | Revenue recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, service has been performed, the price is fixed or determinable and collection is reasonably assured, on the following: 1) Interest income on loans. Interest on loan receivables is accrued monthly in accordance with their contractual terms and recorded in accrued interest receivable. The Company does not charge prepayment penalties. Additionally, any previously accrued but uncollected interest is reversed and accrual is discontinued, when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days. 2) Assessment services on loans. The Company receives fees from assessment services in full at inception and records as unearned income before amortizing it throughout the period of services. |
Non-interest expenses | Non-interest expenses Non-interest expenses primarily consist of salary and benefits for employees, traveling cost, entertainment expenses, depreciation of equipment, office rental expenses, professional service fee, office supply, etc., and are expensed as incurred. |
Income tax | Income tax Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. The Company accounts for income taxes using the assets and liability method. Under this method, deferred income taxes are recognized for tax consequences in future years of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end. Deferred tax assets and liabilities are measured using enacted tax rates applicable for the differences that are expected to affect taxable income. The Company adopts a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation process, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. As of December 31, 2016 and 2015, the Company did not have any uncertain tax positions. |
Comprehensive income | Comprehensive income Comprehensive income includes net income and foreign currency adjustments. Comprehensive income is reported in the statements of income and comprehensive income. Accumulated other comprehensive loss, as presented on the balance sheets are the cumulative foreign currency translation adjustments. |
Operating leases | Operating leases The Company leases its principal office under a lease agreement that qualifies as an operating lease. Payments made under operating leases are charged to the consolidated statements of comprehensive income on a straight line basis over the lease periods. |
Commitments and contingencies | Commitments and contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations and tax matters. The Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. |
Recently issued accounting standards adopted | Recently issued accounting standards adopted In August 2015, the FASB issued updated guidance concerning presentation and subsequent measurement of debt issuance costs relating to line of credit arrangements, which can be presented on the balance sheet as an asset to be subsequently amortized ratably over the term of the line of credit arrangement. The updated guidance is effective immediately. This updated guidance did not have a material impact on our financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs”, which changes the presentation of debt issuance costs in financial statements. Under this ASU, an entity presents such costs on the balance sheet as a direct deduction from the related debt liability rather than as an asset. This new standard is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, with early adoption permitted. We adopted this standard and do not expect that it will have a material impact on our consolidated financial statements or disclosures. |
Recently issued accounting standards not yet adopted | Recently issued accounting standards not yet adopted In May 2014, the FASB issued ASU No.2015-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer. For a public entity, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company does not anticipate that this adoption will have a significant impact on its financial statements. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). To simplify presentation, ASU 2015-17 requires that all deferred tax assets and liabilities, along with any related valuation provision, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. ASU 2015-17 does not change the existing requirement that only permits offsetting within a jurisdiction – that is, companies are still prohibited from offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. ASU 2015-17 is effective for public business entities in years beginning after December 15, 2016, including interim periods within those years. Early adoption is permitted. An entity can elect to adopt ASU 2015-17 either (1) prospectively for all deferred tax assets and liabilities, or (2) retrospectively by reclassifying the comparative balance sheet. If applied prospectively, an entity is required to include a statement that prior periods were not retrospectively adjusted. If applied retrospectively, an entity is also required to include quantitative information about the effects of the change on prior periods. The Company does not anticipate that this adoption will have a significant impact on its financial statements since the Company does not separate current and noncurrent assets and liabilities on the balance sheet. In April, 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts from Customers (Topic 606), Identifying Performance Obligations and Licensing” (“ASU 2016-10”). The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU aimed to address the issue concerning identifying performance and licensing by reducing the potential for diversity in practice in initial application and cost and complexity of application both at transition and an on-going basis. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update ASU 2014-09 by one year. The Company does not anticipate that this adoption will have a significant impact on its financial statements. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on results of operations, financial condition, or cash flows, based on current information. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of foreign currency translation and transactions | As of December 31, 2016 2015 Balance sheet items, except for equity accounts 6.9448 6.4917 For the Years Ended 2016 2015 Items in the statements of income and comprehensive income, and statements of cash flows 6.6441 6.2288 |
Risks (Tables)
Risks (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Risks/Concentration of Credit Risks [Abstract] | |
Schedules of industry concentration risk | Loan receivable Interest income for the year ended Tire Supply chain financing $ 56,966,609 $ 15,604,310 Trade and service $ 54,413,130 $ 8,355,837 Percentage Percentage Tire Supply chain financing 36.8 % $ 43.9 % Trade and service 35.2 % $ 23.5 % |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Loans Receivable, Net [Abstract] | |
Schedule of loans receivable | December 31, December 31, 2016 2015 Business loans $ 58,387,204 $ 41,794,907 Personal loans 96,332,530 99,118,875 Total loan receivable 154,719,734 140,913,782 Provision for loan losses Collectively assessed (1,405,536 ) (1,401,061 ) Individually assessed (5,020,771 ) (807,647 ) Provision for loan losses (6,426,307 ) (2,208,708 ) Loans receivable, net $ 148,293,427 $ 138,705,074 |
Schedule of aging of loans | 1-89 Days 90-179 Days Past Due 180-365 Days Past Due Over 1 year Past Due Total Current Total Business loans $ - $ 719,966 $ 5,077,202 $ 719,966 $ 6,517,134 $ 51,870,070 $ 58,387,204 Personal loans - - 881,239 - 881,239 95,451,291 96,332,530 $ - $ 719,966 $ 5,958,441 $ 719,966 $ 7,398,373 $ 147,321,361 $ 154,719,734 1-89 Days 90-179 Days Past Due 180-365 Days Past Due Over 1 year Past Due Total Current Total Business loans $ - $ 9,698,538 $ 770,214 $ - $ 10,468,752 $ 31,326,155 $ 41,794,907 Personal loans - 4,254,664 - - 4,254,664 94,864,211 99,118,875 $ - $ 13,953,202 $ 770,214 $ - $ 14,723,416 $ 126,190,366 $ 140,913,782 |
Summary of the company's loan portfolio by collateral | Business Personal Total Guarantee backed loans $ 44,114,593 $ 40,442,991 $ 84,557,584 Pledged assets backed loans 11,392,746 53,489,172 64,881,918 Collateral backed loans 2,879,865 2,400,367 5,280,232 $ 58,387,204 $ 96,332,530 $ 154,719,734 Business Personal Total Guarantee backed loans $ 16,505,692 $ 30,525,132 $ 47,030,824 Pledged assets backed loans 5,593,296 65,289,524 70,882,820 Collateral backed loans 19,695,919 3,304,219 23,000,138 $ 41,794,907 $ 99,118,875 $ 140,913,782 |
Schedule of gross loans receivable for loans: | December 31, December 31, 2016 2015 Business loans $ 10,966,526 $ 13,241,523 Personal loans 39,429,672 31,270,700 Total pledged loans receivable $ 50,396,198 $ 44,512,223 |
Provision for Loan Losses (Tabl
Provision for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Provision for Loan Losses [Abstract] | |
Schedule of provision for losses | Provision for loan losses for the year ended December 31, 2016 Business Personal Total Provision for loan losses beginning balance $ 1,053,579 $ 1,155,129 $ 2,208,708 Charge-offs (91,812 ) - (91,812 ) Provisions 3,492,322 1,158,565 4,650,887 Foreign currency translation adjustment (215,956 ) (125,520 ) (341,476 ) Provision for loan losses ending balance 4,238,133 $ 2,188,174 $ 6,426,307 Ending balance: individually evaluated for impairment 3,728,072 1,292,699 5,020,771 Ending balance: collectively evaluated for impairment $ 510,061 $ 895,475 $ 1,405,536 Provision for loan losses for the year ended December 31, 2015 Business Personal Total Provision for loan losses beginning balance $ 466,921 $ 863,863 $ 1,330,784 Charge-offs (642,178 ) (642,178 ) Write-off in loans sold to a related party (32,109 ) (502,986 ) (535,095 ) Provisions 1,311,620 854,490 2,166,110 Foreign currency translation adjustment (50,675 ) (60,238 ) (110,913 ) Provision for loan losses ending balance 1,053,579 $ 1,155,129 $ 2,208,708 Ending balance: individually evaluated for impairment 642,051 165,596 807,647 Ending balance: collectively evaluated for impairment $ 411,528 $ 989,533 $ 1,401,061 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
Schedule of property plant and equipment | Useful Life December 31, December 31, years 2016 2015 Furniture and fixtures 5 $ 14,018 $ 4,208 Vehicles 4 133,885 143,229 Electronic equipment 3 19,628 16,256 Less: accumulated depreciation (79,068 ) (47,395 ) Property and equipment, net $ 88,463 $ 116,298 |
Cost Method Investment (Tables)
Cost Method Investment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, All Other Investments / Loans from a Related Party, a Cost Investment Investee [Abstract] | |
Schedule of cost method investments | December 31, December 31, 2016 2015 Beginning balance $ 3,851,071 $ - Addition - 3,851,071 Less: impairment loss - - Foreign currency adjustment (251,240 ) - Ending balance $ 3,599,831 $ 3,851,071 |
Short-Term Bank Loans, Net (Tab
Short-Term Bank Loans, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Convertible Promissory Note, Short-Term Bank Loans, Net & Secured Loans [Abstract] | |
Schedule of short-term bank loans | December 31, December 31, Lender Name Entrust Bank name Interest rate Term 2016 2015 Urumqi Economic Development Zone Zhengxin Financing Guarantee Co., Ltd. Tianshan Rural Commercial Bank Fixed annual rate of 10.0% From January 7, 2016 to January 6 , 2017 $ 1,439,932 $ - Urumqi Changhe Financing Guarantee Co., Ltd. Tianshan Rural Commercial Bank Fixed annual rate of 10.0% From August 9, 2016 to August 8, 2017 1,439,932 - Urumqi Changhe Financing Guarantee Co., Ltd. Bank of Urumqi Co., Ltd Fixed annual rate of 10.0% From July 13, 2016 to July 13, 2017 1,439,932 - Urumqi Changhe Financing Guarantee Co., Ltd. Shanghai Pudong Development Bank Fixed annual rate of 7.0% From December 22, 2016 to December 21, 2017 3,311,845 - 7,631,641 - Less unamortized financing cost (159,111 ) - Short-term bank loans less unamortized financing cost $ 7,472,530 $ - |
Secured Loans (Tables)
Secured Loans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Convertible Promissory Note, Short-Term Bank Loans, Net & Secured Loans [Abstract] | |
Schedule of secured loans | December 31, December 31, Lender name Interest rate Term 2016 2015 China Great Wall Assets Management Co. Ltd. Fixed annual rate of 12.0% From May 29, 2015 to May 28, 2016 $ - $ 9,365,806 China Great Wall Assets Management Co. Ltd. Fixed annual rate of 11.5% From October 29, 2015 to Oct 28, 2016 - 15,373,476 China Great Wall Assets Management Co. Ltd. Fixed annual rate of 11.0% From October 29, 2016 to October 28, 2017 14,370,526 - Less unamortized financing cost (215,558 ) $ 14,154,968 $ 24,739,282 |
Loans from a Related Party, a42
Loans from a Related Party, a Cost Investment Investee (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, All Other Investments / Loans from a Related Party, a Cost Investment Investee [Abstract] | |
Schedule of loans from a cost basis investment | Lender name Interest rate Term December 31, 2016 December 31, 2015 Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From August 10, 2015 to August 9, 2016 $ - $ 770,214 Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From August 24, 2015 to August 23, 2016 - 770,214 Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From August 25, 2015 to August 24, 2016 - 3,080,857 Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From September 1, 2015 to August 31, 2016 - 3,080,857 Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From September 23, 2015 to September 22, 2016 - 7,702,143 Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From August 23, 2016 to August 22, 2017 3,599,831 - Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From August 30, 2016 to November 29, 2017 2,159,899 - Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From September 1, 2016 to November 30, 2017 1,439,932 - Xinjiang Microcredit Refinancing Fixed annual rate of 12.0% From September 19, 2016 to March 18, 2018 7,199,662 - Total loans from a cost investment investee $ 14,399,324 $ 15,404,285 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities [Abstract] | |
Schedule of other liabilities | December 31, December 31, 2016 2015 Interest payable $ 332,178 $ 551,492 Accruals 446,253 236,701 Other payables 218,206 189,638 Long-term debt 2,879,865 - $ 3,876,502 $ 977,831 |
Other Operating Expense (Tables
Other Operating Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Operating Expense [Abstract] | |
Schedule of other operating expense | For the years ended 2016 2015 Depreciation and amortization $ 40,004 $ 40,259 Guarantee fee - 217,725 Legal and professional expenses 1,276,271 1,520,930 Office related expenses 1,131,255 265,928 Travel and entertainment 218,618 283,405 Amortization of financing costs - 461,945 Total $ 2,666,148 $ 2,790,192 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per common share | For the years ended 2016 2015 Net income $ 17,278,404 $ 14,119,814 Dividends to Class A preferred shareholders (333,327 ) - Net income attributable to the ordinary shareholders 16,945,077 14,119,814 Basic weighted-average common shares outstanding 18,012,452 20,519,156 Conversion of Class A Convertible Redeemable Preferred Shares 715,000 - Release of Restricted Shares Placed in Escrow 2,666,667 - Conversion of Unit Purchase Option 136,508 - Conversion of Restricted Shares 208 - Diluted weighted-average common shares outstanding 21,530,835 20,519,156 Earnings per share: Basic $ 0.94 $ 0.69 Diluted $ 0.79 $ 0.69 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Taxation [Abstract] | |
Schedule of Income Tax Expense (Benefit) | For the years ended 2016 2015 Income tax expense is comprised of: Current income tax $ 4,789,085 $ 3,132,831 Deferred income tax (benefit)/ expense (667,747 ) (274,924 ) Total provision for income taxes $ 4,121,338 $ 2,857,907 |
Schedule of deferred tax assets and liabilities | December 31, December 31, 2016 2015 Accrued interest receivable $ (159,357 ) $ (1,340 ) Accrued interest payable 49,827 82,724 Provision for loan losses 967,028 121,476 Accruals 4,109 40,580 Deferred tax assets $ 861,607 $ 243,440 |
Schedule of effective income tax rate and PRC statutory income tax | For the years ended 2016 2015 PRC statutory tax rate 25.0 % 25.0 % Effect of preferential income tax rate (8.3 )% (8.7 )% Effect of different income tax rate in other jurisdictions - 0.2 % Effect of non-deductible expenses 0.1 % 0.5 % Others 2.5 % (0.1 )% Effective tax rate 19.3 % 16.9 % |
Schedule of income tax payable | December 31, December 31, 2016 2015 Income Tax Payable $ 810,975 $ 913,607 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions and Balances [Abstract] | |
Schedule of loans originated to related parties | Loans made to Loans Receivable from During the years ended December 31, As of As of December 31, 2016 2015 2016 2015 Employees of the Company $ - $ 2,445,094 $ - $ 1,113,730 |
Schedule of loans from a related party | Creditor Entrust Bank Name Interest Rate Term Principal As of December 31, 2016 As of December 31, A non-controlling shareholder of the Company (until May 5, 2015) China Merchants Bank Fixed annual rate of 12% From January 27, 2015 to December 26, 2015 $ 1,605,446 $ - $ 1,605,446 |
Schedule of guarantees loan | For the years ended As of December 31, As of December 31, Shareholders and related parties 2016 2015 2016 2015 Non-controlling shareholders of the Company $ 110,504,045 $ 65,943,681 $ 39,886,130 $ 43,416,978 Legal representative of the Company and a non-controlling shareholder of the Company - 907,077 - 870,342 Related companies of a non-controlling shareholder of the Company 62,383,161 25,382,096 46,456,542 7,005,869 Employee of the Company 75,255 481,634 - - Management of non-controlling shareholders of the Company - 3,729,450 - 3,578,416 $ 172,962,461 $ 96,443,938 $ 86,342,672 $ 54,871,605 |
Schedule of guarantees of the short-term bank loans | December 31, December 31, Lender name Interest rate Term 2016 2015 China Great Wall Assets Management Co. Ltd. Fixed annual rate of 12.0% From May 29, 2015 to May 28, 2016 $ - $ 9,365,806 China Great Wall Assets Management Co. Ltd. Fixed annual rate of 11.5% From October 29, 2015 to Oct 28, 2016 - 15,373,476 China Great Wall Assets Management Co. Ltd. Fixed annual rate of 11.0% From October 29, 2016 to October 28, 2017 14,370,526 - Less unamortized financing cost (215,558 ) $ 14,154,968 $ 24,739,282 |
Schedule of guarantees of the secured loans | Lender name Principal As of December 31, 2016 Shareholders and related parties China Great Wall Assets Management Co. Ltd. $ 37,495,842 $ 14,370,526 Non-controlling shareholders of the Company Xinjiang Microcredit Refinancing Co., Ltd. 28,798,648 14,399,325 Non-controlling shareholders of the Company $ 66,294,490 $ 28,769,851 Lender name Principal As of December 31, 2015 Shareholders and related parties China Great Wall Assets Management Co. Ltd. $ 40,896,132 $ 24,739,282 Non-controlling shareholders of the Company Xinjiang Microcredit Refinancing Co., Ltd. 15,404,285 15,404,285 Non-controlling shareholders of the Company $ 56,300,417 $ 40,143,567 |
Schedule of amount due from a related party | December 31, December 31, 2016 2015 A related company of non-controlling shareholders of the Company $ - $ 1,653,839 |
Organization and Principal Ac48
Organization and Principal Activities (Details) - USD ($) | Dec. 19, 2016 | Jul. 06, 2016 | May 14, 2015 | May 20, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 17, 2015 |
Organization and Principal Activities (Textual) | |||||||
Ordinary shares, issued | 22,898,864 | 20,000,000 | 571,428 | ||||
Escrow shares | 8,000,000 | ||||||
Jing Kai [Member] | |||||||
Organization and Principal Activities (Textual) | |||||||
Registered capital | $ 80,000,000 | ||||||
Ding Xin [Member] | |||||||
Organization and Principal Activities (Textual) | |||||||
Registered capital | $ 1,000,000 | ||||||
Ding Tai [Member] | |||||||
Organization and Principal Activities (Textual) | |||||||
Registered capital | $ 30,000,000 | ||||||
Adrie Global Holdings Limited [Member] | |||||||
Organization and Principal Activities (Textual) | |||||||
All outstanding interests of Adrie for a purchase price | $ 200,000,000 | ||||||
Ordinary shares, issued | 20,000,000 | ||||||
Escrow shares | 8,000,000 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | ||
Balance sheet items, except for equity accounts | 6.9448 | 6.4917 |
Items in the statements of income and comprehensive income, and statements of cash flows | 6.6441 | 6.2288 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Details Textual) - 12 months ended Dec. 31, 2016 | USD ($) | HKD |
Summary of Significant Accounting Policies (Textual) | ||
Property and equipment, Description | The property and equipment are stated at cost less accumulated depreciation. The depreciation is computed on the straight-line method over the estimated useful lives of the assets. | |
U.S. Federal depository insurance coverage | $ | $ 250,000 | |
Government securities coverage | HKD | HKD 500,000 | |
Cost method investment, description | The Company carries its cost method investments at cost, recognized income as any dividend declared from distributions of the investee's earnings if any and only adjusts for other-than-temporary impairment and distributions of earnings as the Company's equity interest in the investee is less than 20%. | |
Revenue recognition arrangements | The Company does not charge prepayment penalties. Additionally, any previously accrued but uncollected interest is reversed and accrual is discontinued, when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days. | |
Income tax, Description | The Company adopts a more likely than not threshold and a two-step approach for the tax position measurement and financial statement recognition. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained, including resolution of related appeals or litigation process, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. |
Risks (Details)
Risks (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | ||
Percentage of risks | 10.00% | 10.00% |
Tire Supply chain financing [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of risks | 43.90% | |
Interest income | $ 15,604,310 | |
Loan receivable | $ 56,966,609 | |
Loan receivable percentage | 36.80% | |
Trade and service [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of risks | 23.50% | |
Interest income | $ 8,355,837 | |
Loan receivable | $ 54,413,130 | |
Loan receivable percentage | 35.20% |
Risks (Details Textual)
Risks (Details Textual) | 12 Months Ended |
Dec. 31, 2016 | |
Risks/Concentration of Credit Risks [Abstract] | |
Percentage of risks | 10% |
Public Offering (Details)
Public Offering (Details) - USD ($) | Jul. 05, 2016 | Oct. 14, 2014 | Oct. 06, 2014 | Dec. 31, 2016 | Jul. 06, 2016 | May 30, 2016 |
Public Offering (Textual) | ||||||
Sale of stock, price per share | $ 10.26 | |||||
Public offering unit, description | Each Unit consists of one ordinary share ("Share"), one right ("Right(s)"), and one warrant ("Warrant"). Each Right entitles the holder to receive one-tenth (1/10) of a Share upon consummation of an Initial Business Combination. Each Warrant entitles the holder to purchase one-half of one ordinary share at a price of $12.00 per full share commencing on the later of the Company's completion of its Initial Business Combination or 12 months from December 31, 2014, the effective date of the registration statement relating to the Public Offering (the "Effective Date"), and expiring five years from the completion of the Company's Initial Business Combination. As a result, shareholders must exercise Warrants in multiples of two Warrants, at a price of $12.00 per full share, subject to adjustment, to validly exercise the Warrants. | |||||
Fair value of unit purchase option | $ 100 | |||||
Fair value of unit purchase option approximately | 1,669,000 | |||||
Fair value of unit purchase price option, Per unit | $ 2.782 | |||||
Unit purchase option expected volatility rate | 35.00% | |||||
Unit purchase option risk-free interest rate | 1.73% | |||||
Unit purchase option expected life time | 5 years | |||||
Shares redeemed by public shareholders | 1,544,138 | 5,255,657 | ||||
Value of shares issued | $ 351 | |||||
Warrant price, per share | $ 0.50 | |||||
Warrants transferred | 1,000,000 | |||||
Warrants issued and outstanding | 9,280,323 | |||||
Public offering [Member] | ||||||
Public Offering (Textual) | ||||||
Sale of units during the period | 6,000,000 | |||||
Sale of stock, price per share | $ 10 | |||||
Over-Allotment Option [Member] | ||||||
Public Offering (Textual) | ||||||
Sale of units during the period | 860,063 | |||||
Underwriting Agreement [Member] | ||||||
Public Offering (Textual) | ||||||
Underwriter fees | $ 2,229,520 | |||||
Aggregate value of unit purchase option | $ 100 | |||||
Unit purchase option | 600,000 | |||||
Share price per share | $ 11.75 | |||||
Number of shares in business combination | 660,000 | |||||
Number of shares issued for the rights to business combination | 60,000 | |||||
Percentage of underwriting discount | 3.25% | |||||
Convertible promissory note | $ 250,000 | |||||
Conversion price | $ 10 | |||||
Ordinary shares issued | 34,300 | |||||
Value of shares issued | $ 343,000 | |||||
Per share | $ 10 | |||||
Cash paid | $ 1,500,000 | |||||
Warrant [Member] | ||||||
Public Offering (Textual) | ||||||
Trading period, description | The Company may redeem the Warrants at a price of $0.01 per Warrant upon 30 days' notice, only in the event that the last sale price of the ordinary shares is at least $18.00 per share for any 20 trading days within a 30-trading day period ("30-Day Trading Period") ending on the third day prior to the date on which notice of redemption is given, provided there is a current registration statement in effect with respect to the ordinary shares underlying such Warrants commencing five business days prior to the 30-Day Trading Period and continuing each day thereafter until the date of redemption. | |||||
Warrant issuable to purchase of ordinary shares | 600,000 | |||||
Shares purchased through warrants | 300,000 | |||||
Warrant price, per share | $ 12 |
Convertible Promissory Note (De
Convertible Promissory Note (Details) - USD ($) | Jan. 06, 2017 | Jul. 06, 2016 | Dec. 31, 2016 | Sep. 13, 2015 |
Short-term Debt [Line Items] | ||||
Convertible promissory note | $ 650,000 | |||
DeTiger Holdings Limited [Member] | ||||
Short-term Debt [Line Items] | ||||
Convertible promissory note | $ 500,000 | |||
Convertible promissory note payable to related party | 400,000 | |||
Convertible conversion price per share | $ 10 | |||
DeTiger Holdings Limited [Member] | Subsequent Event [Member] | ||||
Short-term Debt [Line Items] | ||||
Payment of convertible promissory note | $ 400,000 | |||
Convertible note [Member] | ||||
Short-term Debt [Line Items] | ||||
Convertible notes payable | $ 100,000 | |||
Description of convertible notes | On July 6, 2016, the $100,000 note has been converted at $10.00 into 10,000 units, which consists of 10,000 shares, 10,000 rights and 10,000 warrants. 10,000 right entitles to receive 1/10 of the ordinary shares. | |||
Conversion of units | 10,000 | |||
Shares issued upon conversion | 11,000 | |||
Beneficial conversion feature value | $ 51,700 | |||
Convertible conversion price per share | $ 10 | |||
Due date of convertible promissory note | Jan. 6, 2017 | |||
Underwriters [Member] | ||||
Short-term Debt [Line Items] | ||||
Convertible promissory note | $ 250,000 | $ 250,000 | ||
Beneficial conversion feature value | ||||
Convertible conversion price per share | $ 10 | |||
Due date of convertible promissory note | Jul. 6, 2017 |
Redeemable Convertible Prefer55
Redeemable Convertible Preferred Shares (Details) - USD ($) | Jul. 06, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Redeemable Convertible Preferred Shares (Textual) | |||
Dividend - convertible redeemable preferred stock | $ 333,327 | ||
Preferred Class A [Member] | |||
Redeemable Convertible Preferred Shares (Textual) | |||
Preferred shares issued | 715,000 | 715,000 | |
Preferred shares, par value | $ 12 | ||
Annual dividend percentage | 8.00% | ||
Gross proceeds private placement | $ 8,580,000 | ||
Mandatorily redeemable price | $ 12 | ||
Exceeds after closing of Business Combination | The Class A preferred shares are automatically convertible on the date on which the average closing price of the Company's ordinary shares for three consecutive trading days, that is equal to or exceeds $16.00, provided that such date is after the closing of the Business Combination. | ||
Outstanding balance Class A Preferred value | $ 8,913,327 | ||
Shares issued for conversion, percentage | 80.00% |
Stockholder's Equity (Details)
Stockholder's Equity (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jan. 20, 2017shares | Sep. 23, 2016Employeesshares | Nov. 19, 2014 | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015$ / sharesshares | Jul. 06, 2016shares | Dec. 17, 2015$ / sharesshares | Apr. 14, 2015$ / sharesshares | |
Stockholder's Equity (Textual) | ||||||||
Ordinary shares issued | 22,898,864 | 20,000,000 | ||||||
Ordinary shares outstanding | 22,898,864 | 20,000,000 | ||||||
Ordinary shares, authorized description | Share capital of $1, which consisted of one share with a par value of $1 per share. | Unlimited shares authorized | Unlimited shares authorized | |||||
Redeemed share | 571,428 | |||||||
Ordinary shares, issued | 22,898,864 | 20,000,000 | 571,428 | |||||
Ordinary shares, par value | $ / shares | $ 0.00 | |||||||
Restricted shares issued | 2,700 | |||||||
Number of employees | Employees | 19 | |||||||
Preferred Class A [Member] | ||||||||
Stockholder's Equity (Textual) | ||||||||
Preferred shares issued | 715,000 | 715,000 | ||||||
Preferred stock, shares outstanding | 715,000 | |||||||
Subsequent Event [Member] | ||||||||
Stockholder's Equity (Textual) | ||||||||
Restricted shares forfeited | 200 | |||||||
Minimum [Member] | ||||||||
Stockholder's Equity (Textual) | ||||||||
Target adjust net income | $ | $ 23.3 | |||||||
Maximum [Member] | ||||||||
Stockholder's Equity (Textual) | ||||||||
Target adjust net income | $ | 40 | |||||||
2016 | Minimum [Member] | ||||||||
Stockholder's Equity (Textual) | ||||||||
Target adjust net income | $ | 20.2 | |||||||
2016 | Maximum [Member] | ||||||||
Stockholder's Equity (Textual) | ||||||||
Target adjust net income | $ | 32 | |||||||
2017 | Minimum [Member] | ||||||||
Stockholder's Equity (Textual) | ||||||||
Target adjust net income | $ | 22.6 | |||||||
2017 | Maximum [Member] | ||||||||
Stockholder's Equity (Textual) | ||||||||
Target adjust net income | $ | 38 | |||||||
2018 | Minimum [Member] | ||||||||
Stockholder's Equity (Textual) | ||||||||
Target adjust net income | $ | 25.6 | |||||||
2018 | Maximum [Member] | ||||||||
Stockholder's Equity (Textual) | ||||||||
Target adjust net income | $ | $ 44 | |||||||
Feng Hui [Member] | ||||||||
Stockholder's Equity (Textual) | ||||||||
Redeemed share | 1 | |||||||
Ordinary shares, issued | 20,000,000 | |||||||
Ordinary shares, par value | $ / shares | $ 0.00 | |||||||
Escrow [Member] | ||||||||
Stockholder's Equity (Textual) | ||||||||
Ordinary shares, authorized description | Upon consummation of the business combination between the Company and Adrie, an aggregate of 20 million of ordinary shares were issued and 8 million of the issued ordinary shares were deposited in escrow (the "Escrow Shares"). |
Loans Receivable, Net (Details)
Loans Receivable, Net (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivable | $ 154,719,734 | $ 140,913,782 |
Provision for loan losses | ||
Collectively assessed | (1,405,536) | (1,401,061) |
Individually assessed | (5,020,771) | (807,647) |
Provision for loan losses | (6,426,307) | (2,208,708) |
Loans receivable, net | 148,293,427 | 138,705,074 |
Business Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivable | 58,387,204 | 41,794,907 |
Personal Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loan receivable | $ 96,332,530 | $ 99,118,875 |
Loans Receivable, Net (Details
Loans Receivable, Net (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
1-89 Days Past Due | ||
90 - 179 Days Past Due | 719,966 | 13,953,202 |
180 - 365 Days Past Due | 5,958,441 | 770,214 |
Over 1 year Past Due | 719,966 | |
Total Past Due | 7,398,373 | 14,723,416 |
Current | 147,321,361 | 126,190,366 |
Total Loans | 154,719,734 | 140,913,782 |
Business loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
1-89 Days Past Due | ||
90 - 179 Days Past Due | 719,966 | 9,698,538 |
180 - 365 Days Past Due | 5,077,202 | 770,214 |
Over 1 year Past Due | 719,966 | |
Total Past Due | 6,517,134 | 10,468,752 |
Current | 51,870,070 | 31,326,155 |
Total Loans | 58,387,204 | 41,794,907 |
Personal loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
1-89 Days Past Due | ||
90 - 179 Days Past Due | 4,254,664 | |
180 - 365 Days Past Due | 881,239 | |
Over 1 year Past Due | ||
Total Past Due | 881,239 | 4,254,664 |
Current | 95,451,291 | 94,864,211 |
Total Loans | $ 96,332,530 | $ 99,118,875 |
Loans Receivable, Net (Detail59
Loans Receivable, Net (Details 2) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total analysis of loans by collateral | $ 154,719,734 | $ 140,913,782 |
Gurantee Backed Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total analysis of loans by collateral | 84,557,584 | 47,030,824 |
Pledged Assets Backed Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total analysis of loans by collateral | 64,881,918 | 70,882,820 |
Collateral Backed Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total analysis of loans by collateral | 5,280,232 | 23,000,138 |
Business Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total analysis of loans by collateral | 58,387,204 | 41,794,907 |
Business Loan [Member] | Gurantee Backed Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total analysis of loans by collateral | 44,114,593 | 16,505,692 |
Business Loan [Member] | Pledged Assets Backed Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total analysis of loans by collateral | 11,392,746 | 5,593,296 |
Business Loan [Member] | Collateral Backed Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total analysis of loans by collateral | 2,879,865 | 19,695,919 |
Personal Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total analysis of loans by collateral | 96,332,530 | 99,118,875 |
Personal Loans [Member] | Gurantee Backed Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total analysis of loans by collateral | 40,442,991 | 30,525,132 |
Personal Loans [Member] | Pledged Assets Backed Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total analysis of loans by collateral | 53,489,172 | 65,289,524 |
Personal Loans [Member] | Collateral Backed Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total analysis of loans by collateral | $ 2,400,367 | $ 3,304,219 |
Loans Receivable, Net (Detail60
Loans Receivable, Net (Details 3) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total pledged loans receivable | $ 50,396,198 | $ 44,512,223 |
Business loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total pledged loans receivable | 10,966,526 | 13,241,523 |
Personal loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total pledged loans receivable | $ 39,429,672 | $ 31,270,700 |
Loans Receivable, Net (Detail61
Loans Receivable, Net (Details Textual) | 12 Months Ended | |
Dec. 31, 2016USD ($)Customer | Dec. 31, 2015USD ($)Customer | |
Loans Receivable, Net (Textual) | ||
Financing receivable recorded investment past due | Accrual of interest is generally discontinued when either (i) reasonable doubt exists as to the full, timely collection of interest or principal or (ii) when a loan becomes past due by more than 90 days. | |
Percentage of guaranteed loans | 54.70% | 33.40% |
Gross loans receivable | $ 154,719,734 | $ 140,913,782 |
Provision charges | 4,650,887 | 2,166,110 |
Provision for loan and lease losses write offs | 91,812 | 642,178 |
Gross loans pledged to China Great Wall Assets Management Co., Ltd. and related parties [Member] | ||
Loans Receivable, Net (Textual) | ||
Gross loans receivable | $ 50,396,198 | $ 44,512,223 |
Minimum [Member] | ||
Loans Receivable, Net (Textual) | ||
Loan interest rate | 17.28% | 18.36% |
Maximum [Member] | ||
Loans Receivable, Net (Textual) | ||
Loan interest rate | 24.00% | 22.44% |
Business Loan [Member] | ||
Loans Receivable, Net (Textual) | ||
Number of customers | Customer | 71 | 36 |
Gross loans receivable | $ 58,387,204 | $ 41,794,907 |
Personal Loans [Member] | ||
Loans Receivable, Net (Textual) | ||
Number of customers | Customer | 151 | 125 |
Gross loans receivable | $ 96,332,530 | $ 99,118,875 |
Provision for Loan Losses (Deta
Provision for Loan Losses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Provision for loan losses beginning balance | $ 2,208,708 | $ 1,330,784 |
Charge-offs | (91,812) | (642,178) |
Write-off in loans sold to a related party | (535,095) | |
Provisions | 4,650,887 | 2,166,110 |
Foreign currency translation adjustment | (341,476) | (110,913) |
Provision for loan losses ending balance | 6,426,307 | 2,208,708 |
Ending balance: individually evaluated for impairment | 5,020,771 | 807,647 |
Ending balance: collectively evaluated for impairment | 1,405,536 | 1,401,061 |
Business loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Provision for loan losses beginning balance | 1,053,579 | 466,921 |
Charge-offs | (91,812) | (642,178) |
Write-off in loans sold to a related party | (32,109) | |
Provisions | 3,492,322 | 1,311,620 |
Foreign currency translation adjustment | (215,956) | (50,675) |
Provision for loan losses ending balance | 4,238,133 | 1,053,579 |
Ending balance: individually evaluated for impairment | 3,728,072 | 642,051 |
Ending balance: collectively evaluated for impairment | 510,061 | 411,528 |
Personal loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Provision for loan losses beginning balance | 1,155,129 | 863,863 |
Charge-offs | ||
Write-off in loans sold to a related party | (502,986) | |
Provisions | 1,158,565 | 854,490 |
Foreign currency translation adjustment | (125,520) | (60,238) |
Provision for loan losses ending balance | 2,188,174 | 1,155,129 |
Ending balance: individually evaluated for impairment | 1,292,699 | 165,596 |
Ending balance: collectively evaluated for impairment | $ 895,475 | $ 989,533 |
Provision for Loan Losses (De63
Provision for Loan Losses (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Provision for loan losses (Textual) | ||
Specific reserve | $ 5,020,771 | $ 807,647 |
Specific reserves rate, description | Charged as specific reserve with specific provision rates ranged from 1.5%-100% and 25%-75%, respectively. | |
Valuation assets description | The assets values were generally 50% to 60% of the fair value of collateral and pledged assets. The valuation will be updated for the loan period over one year in case of renewals and repeat customers. However, China Lending Group's average loan term is less than 7 months, the value of the collateral and pledged assets, and guarantee backing the loans will be reviewed and monitored on a monthly basis through site visits. | |
Collateral [Member] | ||
Provision for loan losses (Textual) | ||
Percentage of collateral backed loans | 3.40% | 16.30% |
Percentage valuation assessment | ||
Pledged Asset [Member] | ||
Provision for loan losses (Textual) | ||
Percentage of pledged asset backed loans | 41.90% | 50.30% |
Percentage valuation assessment | 11.28% | |
Guaranteed Backed [Member] | ||
Provision for loan losses (Textual) | ||
Percentage of gurantee backed loans | 54.70% | 33.40% |
Loan Impairment (Details)
Loan Impairment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans impaired, description | No loans and 17 loans of $14.9 million were granted one-time extension for the years ended December 31, 2016 and 2015, respectively, which accounted for nil and 6.3% of total loans originated during the years ended December 31, 2016 and 2015, respectively. | |
Business Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trouble debt restructuring amounts | $ 6,517,134 | $ 3,080,857 |
Allowance for loan loss | 3,618,550 | 73,129 |
Impaired amounts of business loans | 7,381,094 | 10,468,752 |
Impaired amounts of personal loans | 6,784,962 | 4,254,664 |
Personal Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trouble debt restructuring amounts | 881,239 | 1,035,168 |
Allowance for loan loss | $ 440,619 | $ 22,377 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (79,068) | $ (47,395) |
Property and equipment, net | 88,463 | 116,298 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 14,018 | 4,208 |
Property and equipment, useful life years | 5 years | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 133,885 | 143,229 |
Property and equipment, useful life years | 4 years | |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 19,628 | $ 16,256 |
Property and equipment, useful life years | 3 years |
Property and Equipment (Detai66
Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property and Equipment (Textual) | ||
Depreciation expense | $ 37,448 | $ 39,415 |
Cost Method Investment (Details
Cost Method Investment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, All Other Investments / Loans from a Related Party, a Cost Investment Investee [Abstract] | ||
Beginning balance | $ 3,851,071 | |
Addition | 3,851,071 | |
Less: impairment loss | ||
Foreign currency adjustment | (251,240) | |
Ending balance | $ 3,599,831 | $ 3,851,071 |
Cost Method Investment (Detai68
Cost Method Investment (Details Textual) | 12 Months Ended | ||||||
Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | Jan. 31, 2015USD ($) | Jan. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | |
Cost Method Investment (Textual) | |||||||
Additional paid in capital | $ 75,254,730 | ¥ 500,000,000 | |||||
Total registered capital | $ 143,993,250 | ¥ 1,000,000,000 | |||||
Investment amount | 3,599,831 | ¥ 25,000,000 | |||||
Cost method investment | $ 3,599,831 | $ 3,851,071 |
Short-Term Bank Loans, Net (Det
Short-Term Bank Loans, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Short-term Debt [Line Items] | ||
Short-term bank loans | $ 7,631,641 | |
Less unamortized financing cost | (159,111) | |
Short-term bank loans less unamortized financing cost | $ 7,472,530 | |
Tianshan Rural Commercial Bank [Member] | ||
Short-term Debt [Line Items] | ||
Lender Name | Urumqi Economic Development Zone Zhengxin Financing Guarantee Co., Ltd. | |
Bank name | Tianshan Rural Commercial Bank | |
Fixed annual interest rate | 10.00% | |
Short term debt, Terms | From January 7, 2016 to January 6 , 2017 | |
Short-term bank loans | $ 1,439,932 | |
Tianshan Rural Commercial Bank One [Member] | ||
Short-term Debt [Line Items] | ||
Lender Name | Urumqi Changhe Financing Guarantee Co., Ltd. | |
Bank name | Tianshan Rural Commercial Bank | |
Fixed annual interest rate | 10.00% | |
Short term debt, Terms | From August 9, 2016 to August 8, 2017 | |
Short-term bank loans | $ 1,439,932 | |
Bank of Urumqi Co., Ltd [Member] | ||
Short-term Debt [Line Items] | ||
Lender Name | Urumqi Changhe Financing Guarantee Co., Ltd. | |
Bank name | Bank of Urumqi Co., Ltd | |
Fixed annual interest rate | 10.00% | |
Short term debt, Terms | From July 13, 2016 to July 13, 2017 | |
Short-term bank loans | $ 1,439,932 | |
Shanghai Pudong Development Bank [Member] | ||
Short-term Debt [Line Items] | ||
Lender Name | Urumqi Changhe Financing Guarantee Co., Ltd. | |
Bank name | Shanghai Pudong Development Bank | |
Fixed annual interest rate | 7.00% | |
Short term debt, Terms | From December 22, 2016 to December 21, 2017 | |
Short-term bank loans | $ 3,311,845 |
Short-Term Bank Loans, Net (D70
Short-Term Bank Loans, Net (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Short-term Debt [Line Items] | ||
Interest expenses on short-term bank loans | $ 715,535 | $ 425,139 |
Changhe Financing Guarantee Co Ltd. [Member] | ||
Short-term Debt [Line Items] | ||
Interest expenses on loans | 417,550 | 347,668 |
Feng Hui and related parties [Member] | ||
Short-term Debt [Line Items] | ||
Interest expenses on short-term bank loans | 580,843 | 145,400 |
Financing expenses amortized short-term bank loan | $ 134,692 | |
Zhengxin Financing Guarantee Co Ltd [Member] | ||
Short-term Debt [Line Items] | ||
Interest expenses on loans | $ 163,292 |
Secured Loans (Details)
Secured Loans (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Less unamortized financing cost | $ (215,558) | |
Secured loans | 14,154,968 | $ 24,739,282 |
From May 29, 2015 to May 28, 2016 [Member] | Fixed annual rate of 12% [Member] | China Great Wall Assets Management Co. Ltd. [Member] | ||
Debt Instrument [Line Items] | ||
Secured loans | 9,365,806 | |
From October 29, 2015 to Oct 28, 2016 [Member] | Fixed annual rate of 11.5% [Member] | China Great Wall Assets Management Co. Ltd. One [Member] | ||
Debt Instrument [Line Items] | ||
Secured loans | $ 15,373,476 | |
From October 29, 2016 to October 28, 2017 [Member] | Fixed annual rate of 11.0% [Member] | China Great Wall Assets Management Co Ltd Two [Member] | ||
Debt Instrument [Line Items] | ||
Secured loans | $ 14,370,526 |
Secured Loans (Details Textual)
Secured Loans (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Secured Loans (Textual) | ||
Maturity term | 1 year | 1 year |
Interest expense | $ 2,081,104 | $ 2,302,136 |
Loans receivable | 148,293,427 | 138,705,074 |
Financing expenses | 361,423 | |
Feng Hui (Member) | Secured Debt [Member] | ||
Secured Loans (Textual) | ||
Loans receivable | $ 28,049,885 | $ 11,830,491 |
Loans from a Related Party, a73
Loans from a Related Party, a Cost Investment Investee (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Cost-method Investments [Line Items] | ||
Total loans from a cost investment investee | $ 14,399,324 | $ 15,404,285 |
Xinjiang Microcredit Refinancing Co. Ltd. [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Loans from a cost investment investee interest rate | Fixed annual rate of 12.0%. | |
Loans from a cost investment investee term | From August 10, 2015 to August 9, 2016. | |
Total loans from a cost investment investee | 770,214 | |
Xinjiang Microcredit Refinancing Co. Ltd. One [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Loans from a cost investment investee interest rate | Fixed annual rate of 12.0%. | |
Loans from a cost investment investee term | From August 24, 2015 to August 23, 2016. | |
Total loans from a cost investment investee | 770,214 | |
Xinjiang Microcredit Refinancing Co. Ltd. Two [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Loans from a cost investment investee interest rate | Fixed annual rate of 12.0%. | |
Loans from a cost investment investee term | From August 25, 2015 to August 24, 2016. | |
Total loans from a cost investment investee | 3,080,857 | |
Xinjiang Microcredit Refinancing Co. Ltd. Three [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Loans from a cost investment investee interest rate | Fixed annual rate of 12.0%. | |
Loans from a cost investment investee term | From September 1, 2015 to August 31, 2016. | |
Total loans from a cost investment investee | 3,080,857 | |
Xinjiang Microcredit Refinancing Co. Ltd. Four [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Loans from a cost investment investee interest rate | Fixed annual rate of 12.0%. | |
Loans from a cost investment investee term | From September 23, 2015 to September 22, 2016. | |
Total loans from a cost investment investee | 7,702,143 | |
Xinjiang Microcredit Refinancing Co. Ltd. Five [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Loans from a cost investment investee interest rate | Fixed annual rate of 12.0%. | |
Loans from a cost investment investee term | From August 23, 2016 to August 22, 2017. | |
Total loans from a cost investment investee | $ 3,599,831 | |
Xinjiang Microcredit Refinancing Co. Ltd. Six [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Loans from a cost investment investee interest rate | Fixed annual rate of 12.0%. | |
Loans from a cost investment investee term | From August 30, 2016 to November 29, 2017. | |
Total loans from a cost investment investee | $ 2,159,899 | |
Xinjiang Microcredit Refinancing Co. Ltd. Seven [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Loans from a cost investment investee interest rate | Fixed annual rate of 12.0%. | |
Loans from a cost investment investee term | From September 1, 2016 to November 30, 2017. | |
Total loans from a cost investment investee | $ 1,439,932 | |
Xinjiang Microcredit Refinancing Co. Ltd. Eight [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Loans from a cost investment investee interest rate | Fixed annual rate of 12.0%. | |
Loans from a cost investment investee term | From September 19, 2016 to March 18, 2018. | |
Total loans from a cost investment investee | $ 7,199,662 |
Loans from a Related Party, a74
Loans from a Related Party, a Cost Investment Investee (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loans from a related party, a cost investment Investee (Textual) | ||
Interest expense on loans from a cost investment investee | $ 1,818,656 | $ 1,101,871 |
Feng Hui [Member] | ||
Loans from a related party, a cost investment Investee (Textual) | ||
Pledged loans receivable | $ 22,346,312 | $ 32,681,732 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities [Abstract] | ||
Interest payable | $ 332,178 | $ 551,492 |
Accruals | 446,253 | 236,701 |
Other payables | 218,206 | 189,638 |
Long-term debt | 2,879,865 | |
Other liabilities | $ 3,876,502 | $ 977,831 |
Other Liabilities (Details Text
Other Liabilities (Details Textual) | Nov. 16, 2016USD ($) |
Other Liabilities (Textual) | |
Feng Hui received loan | $ 2,879,865 |
Interest rate of loan | 1.00% |
Maturity date of loan | Nov. 15, 2021 |
Other Operating Expense (Detail
Other Operating Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other Operating Expense [Abstract] | ||
Depreciation and amortization | $ 40,004 | $ 40,259 |
Guarantee fee | 217,725 | |
Legal and professional expenses | 1,276,271 | 1,520,930 |
Office related expenses | 1,131,255 | 265,928 |
Travel and entertainment | 218,618 | 283,405 |
Amortization of financing costs | 461,945 | |
Total | $ 2,666,148 | $ 2,790,192 |
Employee Retirement Benefit (De
Employee Retirement Benefit (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Retirement Benefit [Abstract] | ||
Employee benefit contributions | $ 178,547 | $ 62,793 |
Dividend Payable (Details)
Dividend Payable (Details) | Dec. 19, 2016$ / shares | Jan. 20, 2017USD ($) | Oct. 18, 2016USD ($)$ / sharesshares | Aug. 29, 2016USD ($) | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) |
Dividend Payable Textual [Abstract] | |||||||
Dividend declared to shareholder | $ (5,782,484) | $ (6,903,416) | |||||
Dividend - convertible redeemable preferred stock | $ 333,327 | ||||||
Declared common shares dividend | $ 2,060,435 | ||||||
Percentage of dividend to net income | 25.00% | 15.00% | |||||
Common shares dividend paid by cash | $ 1,323,275 | ||||||
Common shares dividend, Shares | shares | 2,013 | ||||||
Par value of dividend paid by share | $ / shares | $ 8.16 | ||||||
Dividends payable, amount per share | $ / shares | $ 0.148 | ||||||
Escrow shares | shares | 8,000,000 | ||||||
Dividend payable to escrow shares | $ 720,000 | ||||||
Common shares dividend paid by shares | $ 17,160 | 17,160 | |||||
Description of dividends payable | The Company announced a one-time dividend of $0.148 per ordinary share which represents an amount equal to twenty-five percent (25%) of (i) the Company's consolidated net income for the period beginning January 1, 2016 through September 30, 2016, the end of the Company's third quarter, less (ii) the amount of dividends paid, payable or otherwise accrued as preferred dividends with respect to the Company's Series A preferred shares for such period. | ||||||
Accumulated unpaid dividends | $ 4,442,048 | ||||||
Subsequent Event [Member] | |||||||
Dividend Payable Textual [Abstract] | |||||||
Dividends paid by stocks | $ 3,388,721 | ||||||
Feng Hui (Member) | |||||||
Dividend Payable Textual [Abstract] | |||||||
Dividend declared to shareholder | $ 6,903,416 | ¥ 43,000,000 |
Statutory Reserves (Details)
Statutory Reserves (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Statutory Reserves Disclosure [Abstract] | ||
Percentage of net income transferred | 10.00% | 10.00% |
Percentage of registered capital | 50.00% | 50.00% |
Percentage of remaining statutory surplus reserves balance | 50.00% | 50.00% |
Statutory reserves | $ 6,536,238 | $ 4,667,254 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income | $ 17,278,404 | $ 14,119,814 |
Dividends to Class A preferred shareholders | (333,327) | |
Net income attributable to the ordinary shareholders | $ 16,945,077 | $ 14,119,814 |
Basic weighted-average common shares outstanding | 18,012,452 | 20,519,156 |
Conversion of Class A Convertible Redeemable Preferred Shares | 715,000 | |
Release of Restricted Shares Placed in Escrow | 2,666,667 | |
Conversion of Unit Purchase Option | 136,508 | |
Conversion of Restricted Shares | 208 | |
Diluted weighted-average common shares outstanding | 21,530,835 | 20,519,156 |
Earnings per share: | ||
Basic | $ 0.94 | $ 0.69 |
Diluted | $ 0.79 | $ 0.69 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 1 Months Ended | 12 Months Ended | |
Jan. 20, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share (Textual) | |||
Escrow shares | 8,000,000 | ||
Escrow shares potentially to be released | 2,666,667 | ||
Subsequent Event [Member] | |||
Earnings Per Share (Textual) | |||
Common share dividends | 519,156 |
Taxation (Details)
Taxation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax expense is comprised of: | ||
Current income tax | $ 4,789,085 | $ 3,132,831 |
Deferred income tax (benefit)/ expense | (662,741) | (274,924) |
Total provision for income taxes | $ 4,121,338 | $ 2,857,907 |
Taxation (Details 1)
Taxation (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Taxation [Abstract] | ||
Accrued interest receivable | $ (159,357) | $ (1,340) |
Accrued interest payable | 49,827 | 82,724 |
Provision for loan losses | 967,028 | 121,476 |
Accruals | 4,109 | 40,580 |
Deferred tax assets | $ 861,607 | $ 243,440 |
Taxation (Details 2)
Taxation (Details 2) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Taxation [Abstract] | ||
PRC statutory tax rate | 25.00% | 25.00% |
Effect of preferential income tax rate | (8.30%) | (8.70%) |
Effect of different income tax rate in other jurisdictions | 0.20% | |
Effect of non-deductible expenses | 0.10% | 0.50% |
Others | 2.50% | (0.10%) |
Effective tax rate | 19.30% | 16.90% |
Taxation (Details 3)
Taxation (Details 3) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Taxation [Abstract] | ||
Income Tax Payable | $ 810,975 | $ 913,607 |
Taxation (Details Textual)
Taxation (Details Textual) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Taxation [Line Items] | ||
Effective income tax rate | 19.30% | 16.90% |
Income tax rate | 25.00% | 25.00% |
Effect of preferential income tax rate | (8.30%) | (8.70%) |
PRC statutory tax rate | 25.00% | 25.00% |
Hong Kong [Member] | ||
Taxation [Line Items] | ||
Income tax rate | 16.50% | |
PRC statutory tax rate | 16.50% | |
Feng Hui Holding [Member] | ||
Taxation [Line Items] | ||
Income tax rate | 25.00% | |
Effect of preferential income tax rate | 15.00% | |
PRC statutory tax rate | 25.00% |
Related Party Transactions an88
Related Party Transactions and Balances (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Loans receivable from related parties | $ 1,102,593 | |
Employees of the Company [Member] | ||
Related Party Transaction [Line Items] | ||
Proceeds from disposal of loans receivable to a related party | 2,445,094 | |
Loans receivable from related parties | $ 1,113,730 |
Related Party Transactions an89
Related Party Transactions and Balances (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Principal | $ 1,605,446 | |
China Merchants Bank [Member] | A non-controlling shareholder of the Company [Member] | ||
Related Party Transaction [Line Items] | ||
Interest Rate | 12.00% | |
China Merchants Bank [Member] | From January 27, 2015 to December 26, 2015 | A non-controlling shareholder of the Company [Member] | ||
Related Party Transaction [Line Items] | ||
Principal | $ 1,605,446 |
Related Party Transactions an90
Related Party Transactions and Balances (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loans receivable [Member] | ||
Related Party Transaction [Line Items] | ||
Guarantees of loans originated | $ 172,962,461 | $ 96,443,938 |
Guarantees of the loans receivable, Total | 86,342,672 | 54,871,605 |
A non-controlling shareholder of the Company [Member] | ||
Related Party Transaction [Line Items] | ||
Guarantees of loans originated | 110,504,045 | 65,943,681 |
Guarantees of the loans receivable, Total | 39,886,130 | 43,416,978 |
Legal representative of the Company and a non-controlling shareholder of the Company [Member] | ||
Related Party Transaction [Line Items] | ||
Guarantees of loans originated | 907,077 | |
Guarantees of the loans receivable, Total | 870,342 | |
Related Companies Of A Non Controlling Shareholder Of The Company [Member] | ||
Related Party Transaction [Line Items] | ||
Guarantees of loans originated | 62,383,161 | 25,382,096 |
Guarantees of the loans receivable, Total | 46,456,542 | 7,005,869 |
Employee Of The Company [Member] | ||
Related Party Transaction [Line Items] | ||
Guarantees of loans originated | 75,255 | 481,634 |
Guarantees of the loans receivable, Total | ||
Management Of Non Controlling Shareholders Of The Company [Member] | ||
Related Party Transaction [Line Items] | ||
Guarantees of loans originated | 3,729,450 | |
Guarantees of the loans receivable, Total | $ 3,578,416 |
Related Party Transactions an91
Related Party Transactions and Balances (Details 3) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Related Party Transaction [Line Items] | |
Aggregated principal amount | $ 13,391,370 |
Short term bank loans, Total | 7,631,641 |
Tianshan Rural Commercial Bank [Member] | |
Related Party Transaction [Line Items] | |
Aggregated principal amount | 8,639,593 |
Short term bank loans, Total | $ 2,879,864 |
Shareholders and related parties | General manager of the Company and a non-controlling shareholder of the Company |
Bank of Urumqi Co., Ltd [Member] | |
Related Party Transaction [Line Items] | |
Aggregated principal amount | $ 1,439,932 |
Short term bank loans, Total | $ 1,439,932 |
Shareholders and related parties | General manager of the Company and a non-controlling shareholder of the Company |
Shanghai Pudong Development Bank [Member] | |
Related Party Transaction [Line Items] | |
Aggregated principal amount | $ 3,311,845 |
Short term bank loans, Total | $ 3,311,845 |
Shareholders and related parties | General manager of the Company and non-controlling shareholders of the Company |
Related Party Transactions an92
Related Party Transactions and Balances (Details 4) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Guarantees of Loans Receivable | ||
Principal of gauranteed loan | $ 66,294,490 | $ 56,300,417 |
Secured loans and loans from a cost investment investee | 28,769,851 | 40,143,567 |
China Great Wall Assets Management Co. Ltd. [Member] | ||
Schedule of Guarantees of Loans Receivable | ||
Principal of gauranteed loan | 37,495,842 | 40,896,132 |
Secured loans | $ 14,370,526 | $ 24,739,282 |
Shareholders and related parties | Non-controlling shareholders of the Company | Non-controlling shareholders of the Company. |
Xinjiang Microcredit Refinancing Co., Ltd. [Member] | ||
Schedule of Guarantees of Loans Receivable | ||
Principal of gauranteed loan | $ 28,798,648 | $ 15,404,285 |
Loans from a cost investment investee | $ 14,399,325 | $ 15,404,285 |
Shareholders and related parties | Non-controlling shareholders of the Company | Non-controlling shareholders of the Company |
Related Party Transactions an93
Related Party Transactions and Balances (Details 5) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transactions and Balances [Abstract] | ||
A related company of non-controlling shareholders of the Company | $ 1,653,839 |
Related Party Transactions an94
Related Party Transactions and Balances (Details Textual) | 1 Months Ended | 12 Months Ended | ||||
Nov. 26, 2015USD ($) | Nov. 26, 2015CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Nov. 26, 2015CNY (¥) | |
Related Party Transaction (Textual) | ||||||
Loans to related parties | $ 531,559 | |||||
Provision for loan losses from related parties | 11,137 | |||||
Interest expenses | 61,542 | |||||
Sale of loan receivables | $ 9,006,000 | ¥ 56,100,000 | ||||
Loans receivable, fair value | 8,471,000 | ¥ 52,767,000 | ||||
Capital gain in additional paid-in capital | 535,000 | 3,333,000 | ||||
Amount due from a related party | 1,653,839 | |||||
Guarantees of short term bank loans | $ 7,631,641 | |||||
Zhengxin [Member] | ||||||
Related Party Transaction (Textual) | ||||||
Sale of loan receivables | 9,006,000 | ¥ 56,100,000 | ||||
Cash payments | $ 7,282,000 | ¥ 45,363,776 | ||||
Amount due from a related party | $ 1,654,000 | ¥ 10,736,224 | ||||
Minimum [Member] | ||||||
Related Party Transaction (Textual) | ||||||
Interest rates | 21.36% | |||||
Maximum [Member] | ||||||
Related Party Transaction (Textual) | ||||||
Interest rates | 24.00% |
Concentration of Credit Risks (
Concentration of Credit Risks (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Risks And Uncertainties (Textual) | |||
Percentage of concentration risk | 10.00% | 10.00% | |
Cash and cash equivalents | $ 4,496,588 | $ 6,732,601 | $ 116,132 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
One law suite [Member] | |
Commitments and Contingencies (Textual) | |
Aggregated claim of delinquent balances | $ 719,966 |
Three Law suite [Member] | |
Commitments and Contingencies (Textual) | |
Aggregated claim of delinquent balances | 5,960,000 |
Four law suite [Member] | |
Commitments and Contingencies (Textual) | |
Aggregated claim of delinquent balances | $ 6,680,000 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Dec. 19, 2016 | Jan. 24, 2017 | Oct. 18, 2016 | Aug. 29, 2016 |
Subsequent Event (Textual) | ||||
Dividends per share | $ 0.148 | |||
Dividend interst rate | 25.00% | 15.00% | ||
Dividends, ordinary shares | 2,013 | |||
Subsequent Event [Member] | Xin Quan [Member] | ||||
Subsequent Event (Textual) | ||||
Registered capital | $ 30,000,000 |