China Customer Relations Centers (CCRC) 6-K China Customer Relations Centers, Inc. Announces Full Year 2015 Financial Results

Exhibit 99.1

China Customer Relations Centers, Inc. Announces Full Year 2015 Financial Results

TAI'AN, China, April 29, 2016 /PRNewswire/ -- China Customer Relations Centers, Inc. (NASDAQ: CCRC) ("CCRC" or the "Company"), a leading call center business process outsourcing ("BPO") service provider in China, today announced its financial results for the year ended December 31, 2015.

2015 Year-to-Date Financial Highlights (all comparisons to prior year unless noted)

● Revenues increased by 39.1% to $59.4 million driven by increased sales to existing clients and sales to new clients.

● Gross margin expanded by 3.5% to 21.0% while operating margin increased by 4.8% to 8.8%, due to improved operating efficiency and the non-renewal of less profitable customer contracts.

● Net income increased by 167.9% to $4.8 million. Earnings per share increased by 172.7% to $0.30.

● The provincial subsidiaries of China Mobile and China Telecom remained our largest clients, contributing $26.7 million (45% of total revenues) and $11.0 million (19% of total revenues) to revenues, respectively, in 2015.

Mr. Gary Wang, Chairman and Chief Executive Officer of CCRC, commented, "We are very pleased to report strong financial results for the year of 2015 with revenues growing by 39.1% to $59.4 million and net income by 167.9% to $4.8 million, respectively, both were record highs since our inception."

Mr. Wang continued, "While 2015 was clearly a banner year for CCRC, we expect the momentum to continue as our relationships with existing key clients continue to expand and believe that we will continue to attract new clients due to our increasing public and financial profile following our recent IPO. We believe the Chinese BPO market remains in the early stages of development and is highly fragmented compared to other developed countries, offering plenty of opportunities for us to continue to grow at a healthy rate through organic growth and selective acquisitions. We are excited about our trajectory and look forward to our future."

Twelve Months Ended December 31, 2015 Financial Results

	For the Twelve Months Ended December 31,
($ millions, except per share data)	2015			2014			% Change
Revenues	$	59.4		$	42.7			39.1	%
Gross profit	$	12.5		$	7.5			66.5	%
Gross margin		21.0	%		17.5	%		3.5	%
Operating income	$	5.2		$	1.7			205.5	%
Operating margin		8.8	%		4.0	%		4.8	%
Net income	$	4.8		$	1.8			167.9	%
EPS	$	0.30		$	0.11			172.7	%

Revenues

For the twelve months ended December 31, 2015, revenues increased by $16.7 million, or 39.1%, to $59.4 million from $42.7 million for the same period last year. This increase was mainly driven by the growth of our BPO business with increased sales to our existing BPO clients and sales to new BPO clients. The provincial subsidiaries of China Mobile and China Telecom remained our largest clients, contributing $26.7 million and $11.0 million in revenues, respectively, in 2015. We added several new BPO clients in 2015, including, Qunar (an online travel company), DIDI (a mobile taxi-calling company), Jiedaibao (an online lending platform) a subsidiary of Alibaba and S.F. Express.

Gross profit and gross margin

Cost of revenues consists primarily of salaries, payroll taxes and employee benefits costs of our customer service associates and other operations personnel. Cost of revenues also includes direct communications costs, rent expense, information technology costs, and facilities support. Cost of revenues increased by $11.7 million, or 33.3%, to $46.9 million for the twelve months ended December 31, 2015 from $35.2 million for the same period last year. As a percentage of revenues, cost of revenues was 79.0% for the twelve months ended December 31, 2015, compared to 82.5% for the same period last year.

Gross profit increased by $5.0 million, or 66.5%, to $12.5 million for the twelve months ended December 31, 2015 from $7.5 million for the same period last year. Gross margin increased by 3.5% to 21.0% for the twelve months ended December 31, 2015 from 17.5% for the same period last year. The increase in gross margin was primarily due to improvement in overall operating efficiency and the termination of certain less profitable business.

Operating income and operating margin

Selling, general and administrative expenses increased by $1.5 million, or 25.4%, to $7.3 million for the twelve months ended December 31, 2015 from $5.8 million for the same period last year. We anticipate that our administrative expenses, particularly those related to support personnel costs, professional fees, as well as Sarbanes-Oxley compliance, will continue to increase in 2016 due to becoming a publically traded company.

Income from operations increased by $3.5 million, or 205.5%, to $5.2 million for the twelve months ended December 31, 2015 from $1.7 million for the same period last year. Operating margin was 8.8% for the twelve months ended December 31, 2015, compared to 4.0% for the same period last year. The increase in operating income and operating margin was mainly driven by an increase in revenues as a result of expansion of our BPO business and improvement in gross margin as a result of improvement in overall operating efficiency.

Government Grants

We received government grants, which are discretionary and unpredictable in nature, of $1.0 million for the twelve months ended December 31, 2015, a decrease of $0.4 million, or 28.6%, from $1.4 million for the same period last year. Government grants as a percentage of net income were 21.5% and 80.8% for the twelve months ended December 31, 2015 and 2014, respectively.

Income Taxes

Provision for income taxes was $1.3 million for the twelve months ended December 31, 2015, an increase of $0.7 million, or 100.6%, from $0.6 million for the same period last year. We were entitled to a preferential enterprise income tax ("EIT") rate of 15% in 2014 and 2015. The standard enterprise income tax rate in China is 25%.

Net Income

Net income increased by $3.0 million, or 167.9%, to $4.8 million for the twelve months ended December 31, 2015 from $1.8 million for the same period last year. Earnings per basic and diluted share was $0.30 for the twelve months ended December 31, 2015, compared to $0.11 for the same period last year.

Financial Conditions

As of December 31, 2015, the Company had cash of $13.6 million, compared to $5.1 million at December 31, 2014. Total working capital was $16.1 million as of December 31, 2015, compared to $5.5 million at the end of 2014.

Net cash provided by operating activities was $6.0 million for the twelve months ended December 31, 2015, compared to $0.5 million for the same period last year. Net cash used in investing activities was $2.0 million for the twelve months ended December 31, 2015, compared to $1.3 million for the same period last year. Net cash provided by financing activities was $4.8 million for the twelve months ended December 31, 2015, compared to $0.2 million for the same period last year. The Company raised $8.5 million in net proceeds through an initial public offering of its common shares in December 2015.

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Notice

Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding.

About China Customer Relations Centers, Inc.

The Company is a BPO service provider focusing on the complex, voice-based segment of customer care services, including:

● customer relationship management;

● technical support;

● sales;

● customer retention;

● marketing surveys; and

● research.

The Company's service is currently delivered from 11 call center locations in Shandong Province, Jiangsu Province, Hebei Province, Anhui Province, the Xinjiang Uygur Autonomous Region, the Guangxi Zhuang Autonomous Region, Jiangxi Province and Chongqing City, with a capacity approximately of 9,053 seats.

Forward-Looking Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Specifically, the Company's statements regarding (i) the future generation of financial growth from the Company's anticipated execution of its business plan, and (ii) anticipated ability to obtain new clients are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the call center business process outsourcing market in China; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review atwww.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Tina Xiao
Weitian Group LLC
Email:ir@ccrc.com
Phone: +1-917-609-0333

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CHINA CUSTOMER RELATIONS CENTERS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	December 31,			December 31,
	2015			2014
ASSETS
Cash	$	13,623,849		$	5,097,010
Accounts receivable, net		8,852,024			6,819,452
Accounts receivable - related party		353,513			373,339
Notes receivable, current		125,687			1,157,793
Prepayments		625,876			639,861
Due from related parties		675,623			763,977
Other current assets		1,128,262			1,297,995
Total current assets		25,384,834			16,149,427
Restricted cash		500,000			-
Notes receivable, non-current		970,620			-
Property and equipment, net		4,087,832			3,715,981
Other assets		41,729			-
Deferred tax assets, non-current		23,974			-
Total non-current assets		5,624,155			3,715,981
Total assets	$	31,008,989		$	19,865,408
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	$	896,841		$	189,089
Accrued liabilities and other payables		2,746,992			2,224,301
Wages payable		2,803,294			2,041,226
Income taxes payable		1,014,595			477,740
Short term loans		1,748,479			5,567,860
Due to related parties		-			2,422
Deferred tax liabilities, current		35,273			181,482
Total current liabilities		9,245,474			10,684,120
Deferred tax liabilities, non-current		-			4,450
Total non-current liabilities		-			4,450
Total liabilities		9,245,474			10,688,570
Shareholders' equity
Common shares, $0.001 par value, 100,000,000 shares authorized, 18,329,600 and 15,929,600 shares issued and outstanding as of December 31, 2015 and 2014, respectively		18,330			15,930
Additional paid-in capital		11,178,774			2,684,150
Retained earnings		9,728,228			5,460,871
Statutory reserves		1,288,617			781,731
Accumulated other comprehensive income		(450,434	)		234,156
Total shareholders' equity		21,763,515			9,176,838
Total liabilities and shareholders' equity	$	31,008,989		$	19,865,408

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CHINA CUSTOMER RELATIONS CENTERS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

	For The Years Ended December 31,
	2015			2014			2013
Revenues, net	$	59,350,721		$	42,661,732		$	27,609,436
Revenues - related party		-			11,407			520,869
Total revenues		59,350,721			42,673,139			28,130,305
Cost of revenues		46,891,617			35,188,331			23,757,669
Gross profit		12,459,104			7,484,808			4,372,636
Operating expenses:
Selling, general & administrative expenses		7,250,331			5,779,600			3,085,437
Total operating expenses		7,250,331			5,779,600			3,085,437
Income from operations		5,208,773			1,705,208			1,287,199
Interest expense		(278,363	)		(552,894	)		(468,823	)
Government grants		1,027,581			1,439,186			2,714,026
Other income		225,306			64,873			112,140
Other expense		(133,421	)		(238,413	)		(101,034	)
Total other income		841,103			712,752			2,256,309
Income before provision for income taxes		6,049,876			2,417,960			3,543,508
Income tax provision		1,275,633			635,859			594,240
Net income	$	4,774,243		$	1,782,101		$	2,949,268
Comprehensive income
Net income	$	4,774,243		$	1,782,101		$	2,949,268
Other comprehensive income (loss)
Foreign currency translation adjustment		(684,590	)		27,280			78,074
Total comprehensive income	$	4,089,653		$	1,809,381		$	3,027,342
Earnings per common share
Basic	$	0.30		$	0.11		$	0.19
Diluted	$	0.30		$	0.11		$	0.19
Weighted average common shares outstanding
Basic		16,015,079			15,586,865			15,294,800
Diluted		16,015,079			15,586,865			15,294,800

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CHINA CUSTOMER RELATIONS CENTERS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	For The Years Ended December 31,
	2015			2014			2013
Cash flows from operating activities
Net income	$	4,774,243		$	1,782,101		$	2,949,268
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		1,340,961			1,342,258			1,145,348
Allowance for doubtful accounts		-			145,076			23,628
Gain on disposal of property and equipment		-			(11,948	)		-
Deferred income taxes		(172,000	)		109,657			215,748
Changes in assets and liabilities:
Accounts receivable		(2,499,956	)		(3,251,749	)		(2,008,418	)
Accounts receivable - related party		-			(11,407	)		318,861
Due from related parties		(114,670	)		468,555			(2,864	)
Due to related parties		(2,394	)		3,493			746
Prepayments		(361,006	)		(489,918	)		(88,972	)
Other current assets		105,230			(234,067	)		(287,655	)
Accounts payable		725,435			18,998			(70,675	)
Wage payable		908,720			267,931			548,372
Income taxes payable		586,931			106,833			361,547
Accrued liabilities and other payables		665,277			249,914			726,485
Net cash provided by operating activities		5,956,771			495,727			3,831,419
Cash flows from investing activities
Purchase of property and equipment		(1,614,696	)		(965,118	)		(600,916	)
Change of restricted cash		(500,000	)		-			-
Proceeds from sale of property and equipment		-			14,363			-
Loans to third parties		-			(132,742	)		(1,146,919	)
Repayment from third parties		-			130,172			-
Advance to related parties		(930,536	)		(1,986,421	)		(2,555,137	)
Repayment from related parties		1,095,087			1,633,073			3,864,506
Net cash used in investing activities		(1,950,145	)		(1,306,673	)		(438,466	)
Cash flows from financing activities
Proceeds from issuances of common shares		8,497,024			1,174,380			-
Capital contribution from owners		-			3,340,396			-
Distribution of capital to owners		-			-			(3,182,236	)
Proceeds from related parties		-			32,543			3,517,971
Repayment to related parties		-			(3,749,916	)		(9,574	)
Proceeds from short term loans		3,800,367			7,386,830			10,452,451
Repayment of short term loans		(7,478,890	)		(8,001,883	)		(10,775,527	)
Net cash provided by financing activities		4,818,501			182,350			3,085
Effect of exchange rate changes on cash and cash equivalents		(298,288	)		11,043			100,052
Net change in cash and cash equivalents		8,526,839			(617,553	)		3,496,090
Cash and cash equivalents, beginning of the year		5,097,010			5,714,563			2,218,473
Cash and cash equivalents, end of the year	$	13,623,849		$	5,097,010		$	5,714,563
Supplemental cash flow information
Interest paid	$	278,363		$	552,894		$	468,823
Income taxes paid	$	915,895		$	490,318		$	17,303
Non-cash investing and financing activities
Transfer from prepayments to property and equipment	$	405,924		$	289,806		$	232,843
Liabilities assumed in connection with purchase of property and equipment	$	23,900		$	68,839		$	703,077

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