/EINPresswire.com/ -- HONG KONG, CHINA -- (Marketwired) -- 08/19/16 -- Takung Art Co., Ltd. (OTCQB: TKAT), an online platform for acquiring shared ownership in Asian fine art, jewelry and precious gems, today reported that, for the second quarter of 2016 ended June 30, revenue was $4,683,273, a 400 percent improvement on revenue of $936,101 in the same quarter of 2015. Net income for Q2 2016 was $1,116,843, or $.11 per share, 1347 percent higher than the net income of $77,176, or $.01 per share, reported for the second quarter of last year.

For the first six months of 2016 ended June 30, revenue was $8,472,043, a 283 percent improvement on revenue of $2,210,980 in the same period of 2015. Net income for the first half of 2016 was $2,212,895, or $.21 per share, 287 percent higher than the net income of $571,271, or $.06 per share, reported for the first half of 2015.

Total platform transaction value for the first six months of 2016 reached US$2.09 billion, a 308 percent increase on the total transactions of $510.95 million recorded in the first half of 2015.

Weighted average number of common shares outstanding in the second quarter and first half of 2016 was 10,632,276 compared to 9,332,267 for the corresponding periods in 2015.

The company's strong improvement in revenue compared to the second quarter of 2015 was primarily due to an increase of $2,396,331 in listing fee revenue, produced mainly by increases in the number of pieces listed, listing values and corresponding listing fees charged compared to the second quarter of last year. The company's Q2 2016 revenue was also boosted by quarter-over-quarter increases of $625,407 in trading commission revenue, $403,148 in management fee revenue, and $322,158 in authorized agent subscription revenue (compared to none such revenue in Q2 2015).

Takung's improved profitability for Q2 2016 was primarily due to the aforementioned increases in listing fees, trading commissions, management fees and authorized agent subscription revenue, offset by quarter-over-quarter increases of $1,169,165 in general and administrative expenses and $655,023 in selling expenses. The rise in quarterly G&A expenses resulted mainly from increases in salaries, office and rental expenses, stock based compensation, and legal and professional fees. Takung's increase in second quarter selling expenses resulted from the expansion of the company's sales force and marketing activities, participation in industry trade shows, and China-based and international travel and related training seminars, all of which were designed to introduce the company's shared-art trading platform to potential customers in major Chinese and international markets.

"Our Q2 2016 results demonstrate that our unique shared art ownership business model is gaining significant traction," said Takung chairman and CEO Mr. Di Xiao. "Once again, we achieved major increases in revenue and profitability, while growing the total dollar volume transacted on our platform.

"Significant increases in G&A and selling expenses in the current year have been necessary to support the company's rapid growth, attract and retain tens of thousands of new traders on the platform, and strengthen the Takung brand in China's fine art market. While their impact will have a mild adverse effect on profitability in the near-term, we believe these investments will help secure even greater profitability on rising revenue in the months and years ahead."

Mr. Xiao noted that because of the company's strong financial position, Takung has the ability to fund the expansion of its infrastructure and sales efforts from positive cash flow and earnings.

"Not only do we expect solid continued growth in China," he added, "but we also expect to soon see revenue contributions from customers in our four new international markets -- Russia, Mongolia, Australia and New Zealand -- as marketing, sales and training personnel are being deployed in these markets.

"Considering the distinct advantages we offer art investors -- reduced capital investment with liquidity and protection against fraud -- we are confident that our shared art ownership model will establish strong revenue footholds in each of these new markets, and, up the line, many others."

At June 30, 2016, the company's cash position was $4,094,609, and short-term investments totaled $9,780,466. Restricted cash, representing the cash deposited by traders into a specific Takung bank account for the purpose of buying and selling ownership units of artwork, was $25,676,516.

ABOUT TAKUNG ART CO., LTD: www.takungart.com

Based in Hong Kong, Takung Art Co., Ltd. is an online trading platform for acquiring shared ownership in Asian fine art, jewelry and precious gems. This proprietary platform allows collectors and investors -- including those with modest financial resources -- to buy and sell units of these assets and participate in the booming Asian art market. The company's shared-ownership business model significantly expands the number of interactions between sellers and buyers of fine art far beyond those generated by art galleries and auction houses alone.

Takung operates its online trading platform via three wholly-owned subsidiaries, Hong Kong Takung Assets and Equity of Artworks Exchange Co. Ltd., Takung (Shanghai) Co., Ltd., and Takung Cultural Development (Tianjin) Co., Ltd.

FORWARD-LOOKING STATEMENTS

This press release may contain projections or other forward-looking statements regarding future events or our future financial performance. All statements other than present and historical facts and conditions contained in this release, including any statements regarding our future results of operations and financial positions, business strategy, plans and our objectives for future operations, are forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). These statements are only predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in the projections or forward-looking statements.

Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

Contacts:
Takung Art Co., Ltd.
Leslie Chow
+852 31580977
leslie.chow@takungae.com

Asia IR--PR - Investor Relations
Jimmy Caplan
512-329-9505
jimmy@asia-irpr.com

Asia IR--PR - Media Relations
Rick Eisenberg
212-496-6828
rick@asia-irpr.com

                    TAKUNG ART CO., LTD AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
               (Stated in US Dollars except Number of Shares)

                                                  June 30,    December 31,
                                                     2016          2015
                                                ------------- -------------
                                                 (Unaudited)
                     ASSETS
CURRENT ASSETS
Cash and cash equivalents                       $   4,094,609 $  10,769,456
Restricted cash                                    25,676,516    16,195,289
Short-term investments, held to maturity            9,780,466             -
Deposits                                               87,496        70,194
Accounts receivables, net                             736,376       184,537
Prepayment and other current assets                   822,734     1,172,405
Due from director                                           -           502
                                                ------------- -------------
Total current assets                               41,198,197    28,392,383
                                                ------------- -------------

NON-CURRENT ASSETS
Property and equipment, net                     $   1,849,163 $   1,213,255
Intangible assets, net                                 20,531        22,194
Deferred tax assets                                   110,185             -
Other non-current assets                              196,199       121,381
                                                ------------- -------------
Total non-current assets                            2,176,078     1,356,830
                                                ------------- -------------
TOTAL ASSETS                                    $  43,374,275 $  29,749,213
                                                ============= =============

      LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accrued expenses and other payables             $   1,345,310 $     667,622
Customer deposits                                  25,676,516    16,195,289
Advance from customers                                260,353             -
Tax payables                                        1,873,906     1,564,370
                                                ------------- -------------
Total current liabilities                          29,156,085    18,427,281
                                                ------------- -------------

NON-CURRENT LIABILITIES
Deferred tax liabilities                        $      60,476 $      45,037
                                                ------------- -------------
Total non-current liabilities                          60,476        45,037
                                                ------------- -------------

TOTAL LIABILITIES                                  29,216,561    18,472,318
                                                ------------- -------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Common stock, 1,000,000,000 shares authorized;
 $0.001 par value; 11,119,276 shares issued and
 outstanding as of June 30, 2016 and December
 31, 2015                                              11,119        11,119
Additional paid-in capital                          5,124,991     4,465,217
Retained earnings                                   9,014,872     6,801,977
Accumulated other comprehensive income (loss)           6,732        (1,418)
                                                ------------- -------------
Total stockholders' equity                         14,157,714    11,276,895
                                                ------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $  43,374,275 $  29,749,213
                                                ============= =============

                    TAKUNG ART CO., LTD AND SUBSIDIARIES
         CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
               (Stated in US Dollars except Number of Shares)

                     For the Three Months Ended   For the Six Months Ended
                              June 30,                    June 30,
                         2016          2015          2016          2015
                     ------------  ------------  ------------  ------------
                      (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
Revenue
Listing fee revenue  $  3,002,474  $    606,143  $  5,197,538  $  1,109,776
Commission revenue        926,789       301,382     2,070,260     1,027,990
Gross management fee
 revenue                  431,584        28,436       560,075        71,785
Annual fee revenue            268           140           429         1,429
Authorized agent
 subscription
 revenue                  322,158             -       643,741             -
                     ------------  ------------  ------------  ------------
Total revenue           4,683,273       936,101     8,472,043     2,210,980

Cost of revenue          (275,416)     (200,120)     (537,483)     (377,812)
                     ------------  ------------  ------------  ------------

Gross profit            4,407,857       735,981     7,934,560     1,833,168
                     ------------  ------------  ------------  ------------

Operating expenses:
General and
 administrative
 expenses              (1,770,351)     (601,186)   (3,331,724)   (1,067,679)
Selling expenses         (703,366)      (48,343)   (1,341,575)      (57,799)
                     ------------  ------------  ------------  ------------

Income from
 operations             1,934,140        86,452     3,261,261       707,690
                     ------------  ------------  ------------  ------------

Other income and
 expenses:
Other income               99,887           454       150,530           454
Exchange gain or
 loss                    (538,006)            -      (418,550)           29
                     ------------  ------------  ------------  ------------
Total other (loss)
 income                  (438,119)          454      (268,020)          483

Income before
 provision for
 income taxes           1,496,021        86,906     2,993,241       708,173

Provision for income
 taxes                    379,178         9,730       780,346       136,902
                     ------------  ------------  ------------  ------------

Net income           $  1,116,843  $     77,176  $  2,212,895  $    571,271
                     ============  ============  ============  ============

Foreign currency
 translation
 adjustment                (3,934)          984         8,150           620
                     ------------  ------------  ------------  ------------

Comprehensive income $  1,112,909  $     78,160  $  2,221,045  $    571,891
                     ============  ============  ============  ============

Earnings per common
 share-basic         $       0.11  $       0.01  $       0.21  $       0.06
                     ============  ============  ============  ============
Earnings per common
 share-diluted               0.10          0.01          0.20          0.06
                     ============  ============  ============  ============
Weighted average
 number of common
 shares outstanding-
 basic                 10,632,276     9,332,267    10,632,276     9,332,267
                     ============  ============  ============  ============
Weighted average
 number of common
 shares outstanding-
 diluted               11,311,385     9,332,267    11,232,989     9,332,267
                     ============  ============  ============  ============


                    TAKUNG ART CO., LTD AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOW
                          (STATED IN U.S. DOLLARS)
                                (UNAUDITED)

                                                  For the Six Months Ended
                                                          June 30,
                                                 --------------------------
                                                     2016          2015
                                                 ------------  ------------
Cash flows from operating activities:

Net income                                       $  2,212,895  $    571,271
Adjustments to reconcile net income to net cash
 provided by operating activities
Depreciation                                          239,700       156,940
Amortization                                            1,663             -
Changes in exchange rate                              539,986             -
Stock-based compensation                              659,774             -
Changes in operating assets and liabilities:
Deposits                                              104,079      (116,498)
Prepayment and other current assets                   349,671       (15,762)
Other non-current assets                             (196,199)            -
Account receivables                                  (551,839)            -
Due from director                                         502        (7,033)
Customer deposits                                   9,481,227        17,789
Deferred tax assets                                   (49,709)            -
Deferred tax liabilities                              (45,037)       (9,310)
Restricted cash                                    (9,481,227)      (17,789)
Tax payables                                          309,536       146,238
Advance from customers                                260,353             -
Accrued expenses and other payables                   259,138    (1,139,853)
                                                 ------------  ------------
Net cash provided by (used in) operating
 activities                                         4,094,513      (414,007)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment                   (884,555)     (236,448)
Purchase of held-to-maturity investments           (9,780,466)            -

                                                 ------------  ------------
Net cash used in investing activities             (10,665,021)     (236,448)

Cash flows from financing activities:
Proceeds from subscription receivables                      -       515,876
                                                 ------------  ------------
Net cash provided by financing activities                   -       515,876

Effect of exchange rate change on cash and cash
 equivalents                                         (104,339)          618

NET (DECREASE) IN CASH AND CASH EQUIVALENTS        (6,674,847)     (133,961)

CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD    10,769,456     2,355,839
                                                 ------------  ------------

CASH AND CASH EQUIVALENTS - END OF PERIOD        $  4,094,609  $  2,221,878
                                                 ============  ============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITY
Cash paid during the period for income taxes     $    563,021  $          -
Cash paid during the period for interest expense $          -  $          -

Contacts:
Takung Art Co., Ltd.
Leslie Chow
+852 31580977
leslie.chow@takungae.com

Asia IR PR - Investor Relations
Jimmy Caplan
512-329-9505
jimmy@asia-irpr.com

Asia IR PR - Media Relations
Rick Eisenberg
212-496-6828
rick@asia-irpr.com

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