Revenues of $13.5 million in the third quarter of 2017, up 13.6% from prior year's $11.9 millionSearch engine marketing and data service revenue increased 49.9% to $11.3 million for the third quarterOperating results showed a 7.4% improvement with an operating loss of $3.5 million in the first nine months of 2017, compared to the prior year's loss of $3.8 millionBEIJING, Nov. 15, 2017 — ChinaNet Online Holdings, Inc. (Nasdaq:CNET) (“ChinaNet” or the “Company”), an integrated online advertising, precision marketing and data-analysis and management services platform, announced today financial results for the third quarter of 2017.Summary FinancialsFor the three months ended September 30, 2017, total revenues increased to $13.5 million from $11.9 million in the prior year, primarily due to the increase from search engine marketing and data service revenue during the quarter.During the quarter, revenues from internet advertising and data services was $2.3 million, which decreased 49.1% from $4.4 million in the third quarter of 2016. ChinaNet continues to focus on integrating and upgrading its internet advertising and data service to SME clients and investing in developing new service modules for clients, and believes that the launch of new services in future will help to increase market penetration and recurring revenues. The decline was offset by an increase in search engine marketing and data service revenue of 49.9% from $7.5 million in the third quarter of 2016 to $11.3 million in the third quarter of 2017. This increase was supported by the CloudX system, which drove more precision marketing and ROI for clients.Gross profit for the quarter ended September 30, 2017 was $1.4 million, compared to $2.0 million in the third quarter of 2016, a decrease of 32.9%. Gross margin was 10.1%, down from 17.0% in 2016, primarily due to the increase in relative lower margin revenues from search engine marketing and data service during the quarter.Operating expenses decreased by 0.6% to $3.4 million for the three months ended September 30, 2017. Sales and marketing expenses decreased by 34.3% to $0.7 million. General and administrative expenses increased by 32.3% to $2.3 million. Loss from operations was $2.0 million in the third quarter of 2017, compared to a loss of $1.4 million in the third quarter of 2016.Net loss attributable to ChinaNet for the three months ended September 30, 2017 was $2.1 million and loss per share from continuing operations was $0.17, compared to a net loss of $1.5 million and loss per share from continuing operations of $0.13 in the third quarter of 2016. The weighted average diluted shares outstanding for the three months ended September 30, 2017 was 12.1 million shares versus 11.4 million for the three months ended September 30, 2016.Revenues for the nine months ended September 30, 2017 were $31.3 million, an increase of 23.2% from $25.4 million for the same period a year ago, which was primarily an increase in search engine marketing and data service revenue.Gross profit was $4.3 million, a decrease of 29.3% for the first nine months of 2017, and gross profit margin of 13.8%, compared to 24.1% in 2016. Operating expenses decreased by 21.0% to $7.8 million compared to $9.9 million for the first nine months of 2016. The Company reported an operating loss of $3.5 million in the compared to an operating loss of $3.8 million for the first nine months of 2016.Net loss attributable to ChinaNet common shareholders and net loss per share was $4.0 million and $0.33 for the nine months ended September 30, 2017.Balance Sheet and Cash FlowThe Company had $1.2 million in cash and cash equivalents as of September 30, 2017, compared to $3.0 million as of December 31, 2016, working capital of $5.2 million compared to $6.9 million as of December 31, 2016, and a current ratio of 1.6 to 1, compared 1.9 to 1 as of December 31, 2016. Total shareholders' equity of ChinaNet was $19.7 million as of September 30, 2017 compared to $22.3 million at December 31, 2016.The Company generated approximately $2.7 million of cash outflows from operations for the nine months ended September 30, 2017 compared to a $1.9 million of cash outflows for the nine months ended September 30, 2016.Business UpdatesIn January 2017, ChinaNet announced the launch of its updated comprehensive website www.chinanet-online.com, reflecting ongoing efforts to provide up-to-date information for customers, investors and shareholders. The new ChinaNet website has been redesigned to be more dynamic, user-friendly and content rich. The website allows visitors to efficiently access information needed regarding ChinaNet's profile and history, products and services, and investor relations content including press releases and SEC reporting. The website now also includes enhanced video, including a compressive overview of the Company's business which can be viewed directly at: http://www.chinanet-online.com/english_index.html  In August 2017, ChinaNet was awarded the nomination of Vice President of the first China E-Commerce Industry Alliance (CEIA). The China E-Commerce Industry Alliance (CEIA) is a nation-wide business association that consists of China’s e-commerce industry web portals, industry professionals, industry leaders, and elite enterprises. CEIA commits to supporting e-commerce applications, renovation programs to facilitate cross-border cooperation and the integration of social resources to promote industry support and collaboration. The establishment of the CEIA is beneficial to solve many problems faced by fast-growing enterprises and enterprises in transition in the e-commerce industry.A charity event hosted by ChinaNet, the China Welfare Foundation, and Tencent that started in September raised a total of 3.16 million RMB in three days. The charity promotes entrepreneurship and support for college students in creating new business leading to new employment or entrepreneurship opportunities for millions.ChinaNet’s subsidiary 28.com released an update to its free smartphone application “28” for entrepreneurs seeking business opportunities in China. 28’s updated version 3.0 enables aspiring and seasoned entrepreneurs to search and sort new business opportunities by categories including “Newest Projects”, “Hot Projects”, “Quality Projects”, and “Project Ranking” as well as new and enhanced membership functions. 28’s 3.0 now has over 100,000 average active users per month, with over 180,000 downloads since its update. Over 10,000 new users are being added each month. In total, the app has close to 1,000,000 users.About ChinaNet Online Holdings, Inc.ChinaNet Online Holdings, a parent company of ChinaNet Online Media Group Ltd., incorporated in the BVI (ChinaNet), is an integrated online advertising, precision marketing and data-analysis and management services platform. ChinaNet provides prescriptive analysis for its clients to improve business outcomes and to create more efficient enterprises. The Company leverages an optimization framework, provided by its comprehensive data-analysis infrastructure, to blend data, mathematical, and computational sciences into an outcome management platform for which it monetizes on a per client basis. ChinaNet uniquely optimizes and prescribes its clients decision making processes based on its proprietary ecosystem. For more information, visit www.chinanet-online.com.Safe HarborThis release contains certain “forward-looking statements” relating to the business of ChinaNet Online Holdings, Inc., which can be identified by the use of forward-looking terminology such as “believes,” “expects,” “anticipates,” “estimates” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including business uncertainties relating to government regulation of our industry, market demand, reliance on key personnel, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on ChinaNet's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting ChinaNet will be those anticipated by ChinaNet. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. ChinaNet undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.  Contact:
MZ North America
Ted Haberfield, President
Direct: +1-760-755-2716
Email: [email protected]
Web: www.mzgroup.us 

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