Yirendai Reports Second Quarter 2019 Financial Results
BEIJING, Sept. 03, 2019 (GLOBE NEWSWIRE) -- Yirendai Ltd. (NYSE: YRD) (“Yirendai” or the “Company”), a leading fintech company in China, today announced its unaudited financial results for the second quarter ended June 30, 2019.
Second Quarter 2019 Operational Highlights
Wealth Management—Yiren Wealth
- Cumulative number of investors served reached 2,185,513, representing an increase of 1% from 2,159,490 in the first quarter of 2019 and compared to 1,974,984 in the second quarter of 2018.
- Number of active investors in the second quarter of 2019 was 671,957, representing a decrease of 13% from 768,514 in the first quarter of 2019 and compared to 928,251 in the second quarter of 2018.
- Total assets under management (“AUM”) for Yiren Wealth was RMB 43,604.2 million (US$ 6,351.7 million) as of June 30, 2019, representing a decrease of 7% from RMB 46,663.1 million as of March 31, 2019. Average AUM per investor reached RMB 149,480 (US$ 21,774) as of June 30, 2019, representing an increase of 7% from RMB 139,473 as of March 31, 2019.
- AUM of non-P2P products amounted to RMB 354.3 million (US$ 51.6 million) in the second quarter of 2019, representing a decrease of 23% from RMB 457.7 million in the first quarter of 2019 and compared to RMB 951.0 million in the second quarter of 2018. Non-P2P products include money market funds, mutual funds and insurance.
Consumer Credit—Yiren Credit
- Total loan originations in the second quarter of 2019 reached RMB 9.7 billion (US$1.4 billion), representing a decrease of 12% from RMB 10.9 billion in the first quarter of 2019 and compared to RMB 18.2 billion in the second quarter of 2018.
- Cumulative number of borrowers served reached 4,491,466, representing an increase of 2% from 4,404,812 in the first quarter of 2019 and compared to 4,027,254 in the second quarter of 2018.
- Number of borrowers in the second quarter of 2019 was 135,246, representing a decrease of 10% from 149,715 in the first quarter of 2019 and compared to 267,628 in the second quarter of 2018.
- The percentage of loan volume generated by repeat borrowers was 35.9% in the second quarter of 2019.
- 52.5% of loan originations were generated online in the second quarter of 2019.
- Remaining principal of performing loans reached RMB 58,071.3 million (US$8,459.0 million) as of June 30, 2019, representing a decrease of 8% from RMB 63,213.8 million as of March 31, 2019.
“We achieved another solid quarter of operation in both credit and wealth management business, in particular we gained strong momentum in working with our bank partners to diversify our funding source,” said Mr. Ning Tang, Chairman and Chief Executive Officer of Yirendai. “We are seeing strong demand from bank and institutional partners for our stable consumer loan assets, which demonstrated our industry leadership position and strong asset sourcing capabilities leveraging our online/offline network. Our technology enabling solution further strengthen our partnership with banks, we have successfully deployed our turn-key online lending solution to the Bank of Ningxia, which marks the first milestone of our fintech solution for financial institutions. On wealth management, as part of our business transition to an asset-allocation based online wealth management platform, Yiren Wealth launched a new brand and rolled out several new products including bank savings, insurance and target risk funds on our wealth management platforms. We also released the first asset allocation guide targeted at China’s mass affluent population. In the second half of 2019, we will continue to focus on diversifying our wealth management product portfolio, acquiring key talent as well as streamlining our operations to better serve our investors. On the regulation front, we have increased our registered capital to RMB 1 billion, to prepare ourselves for the potential upcoming regulatory trial program.”
“On credit performance and risk management, we saw slight volatilities in early delinquencies this quarter as a result of industry conditions and a declining loan balance,” said Mr. Huan Chen, Board of Director and Chief Risk Officer of Yirendai. “To improve our overall risk levels, we have been actively optimizing our product portfolio to reduce risk exposure and enhancing our risk data set to lower borrowers' over-indebteness risk. Our integration with institutional bank funding could provide further risk performance improvement as we connect to PBOC credit system directly.”
“This quarter, we continue to maintain stable loan originations volume as we prioritize risk management and quality of asset growth,” said Mr. Dennis Cong, Senior V.P. of Yirendai. “Diversifying our funding source continues to be a top priority this year and we are pleased to announce that we have obtained close to RMB 30 billion line of credit from our institutional funding partners, thus we expect a significant portion of our new loan origination volume to be from institutional funding towards the end of 2019. This quarter, we maintained a healthy operating efficiency and profitability despite low business volume, our balance sheet remained strong with approximately RMB 3.1 billion of cash and short-term liquidity.”
Second Quarter 2019 Financial Results
Total amount of loans facilitated in the second quarter of 2019 was RMB 9,673.8 million (US$1,409.2 million), compared to RMB 18,180.3 million in the same period last year. As of June 30, 2019, the total outstanding principal amount of the performing loans was RMB 58.1 billion (US$8.5 billion), decreased by 8% from RMB 63.2 billion as of March 31, 2019.
Total net revenue in the second quarter of 2019 was RMB 2,216.6 million (US$322.9 million), compared to RMB 2,987.3 million in the same period last year. Revenue from Yiren Credit reached RMB 1,624.3 million (US$236.6 million), representing a decrease of 34% from RMB 2,455.7 million in the second quarter of 2018. Revenue from Yiren Wealth reached RMB 592.4 million (US$86.3 million), representing an increase of 11% from RMB 531.6 million in the second quarter of 2018.
Sales and marketing expenses in the second quarter of 2019 were RMB 1,208.6 million (US$176.1 million), compared to RMB 1,816.0 million in the same period last year. Sales and marketing expenses in the second quarter of 2019 accounted for 12.5% of the total amount of loans facilitated, as compared to 10.0% in the same period last year mainly due to a decrease in the amount of loans facilitated.
Origination and servicing costs in the second quarter of 2019 were RMB 162.9 million (US$23.7 million), compared to RMB 307.5 million in the same period last year. Origination and servicing costs in the second quarter of 2019 accounted for 1.7% of the total amount of loans facilitated, compared to 1.7% in the same period last year.
General and administrative expenses in the second quarter of 2019 were RMB 175.5 million (US$25.6 million), compared to RMB 504.2 million in the same period last year. General and administrative expenses in the second quarter of 2019 accounted for 7.9% of the total net revenue, compared to 16.9% in the same period last year mainly due to an expense of RMB 200.0 million related to the quality assurance program in the second quarter of 2018.
Allowance for contract assets and receivables in the second quarter of 2019 were RMB 500.9 million (US$73.0 million), compared to RMB 275.7 million in the same period last year. The increase was mainly attributable to changes in future collectability estimates.
Income tax expense in the second quarter of 2019 was RMB 61.9 million (US$9.0 million).
Net income in the second quarter of 2019 was RMB 154.5 million (US$22.5 million), compared to RMB 193.8 million in the same period last year.
Adjusted EBITDA (non-GAAP) in the second quarter of 2019 was RMB 239.9 million (US$35.0 million), compared to RMB 272.3 million in the same period last year. Adjusted EBITDA margin1 (non-GAAP) in the second quarter of 2019 was 10.8%, compared to 9.1% in the same period last year.
Basic income per ADS in the second quarter of 2019 was RMB 1.67 (US$0.24), compared to RMB 2.11 in the same period last year.
Diluted income per ADS in the second quarter of 2019 was RMB 1.66 (US$0.24), compared to RMB 2.09 in the same period last year.
Net cash used in operating activities in the second quarter of 2019 was RMB 331.8 million (US$48.3 million), compared to net cash used of RMB 1,905.3 million in the same period last year.
As of June 30, 2019, cash and cash equivalents was RMB 2,706.5 million (US$394.3 million), compared to RMB 2,519.4 million as of March 31, 2019. As of June 30, 2019, the balance of held-to-maturity investments was RMB 9.5 million (US$1.4 million), compared to RMB 312.8 million as of March 31, 2019. As of June 30, 2019, the balance of available-for-sale investments was RMB 387.5 million (US$56.4 million), compared to RMB 1,187.6 million as of March 31, 2019.
Delinquency rates. As of June 30, 2019, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 1.1%, 1.8%, and 1.9%, respectively compared to 0.9%, 1.9%, and 1.7% as of March 31, 2019. The overall increase in delinquency rates was mainly due to the slower growth in loan volumes and volatile credit performance of the loans.
Cumulative M3+ net charge-off rates. As of June 30, 2019, the cumulative M3+ net charge-off rate for loans originated in 2016 was 9.2%, compared to 9.0% as of March 31, 2019. As of June 30, 2019, the cumulative M3+ net charge-off rate for loans originated in 2017 was 14.0%, compared to 12.7% as of March 31, 2019. As of June 30, 2019, the cumulative M3+ net charge-off rate for loans originated in 2018 was 8.7%, compared to 5.9% as of March 31, 2019.
Management Change
Effective September 4, 2019, Mr. Dennis Cong, Co-CFO of Yirendai, will assume the role of Senior Vice President of Corporate Business Development and continue his responsibilities of new business development, capital markets and strategic planning. Ms. Jia Liu, Co-CFO of Yirendai will become the sole CFO of the Company.
Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See “Operating Highlights and Reconciliation of GAAP to Non-GAAP measures” at the end of this press release.
Currency Conversion
This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB 6.865 to US$1.00, the effective noon buying rate on June 28, 2019, as set forth in the H.10 statistical release of the Federal Reserve Board.
Conference Call
Yirendai's management will host an earnings conference call at 8:00 p.m. U.S. Eastern Time on September 3, 2019, (or 8:00 a.m. Beijing/Hong Kong Time on September 4, 2019).
Dial-in details for the earnings conference call are as follows:
| International: | |
| U.S. Toll Free: | |
| Hong Kong Toll Free: | 800-906-601 |
| China Toll Free: | 400-620-8038 |
| Conference ID: | 4045996 |
A replay of the conference call may be accessed by phone at the following numbers until September 10, 2019:
| International: | |
| U.S. Toll Free: | |
| Replay Access Code: | 4045996 |
Additionally, a live and archived webcast of the conference call will be available at .
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yirendai’s control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yirendai’s ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yirendai’s ability to meet the standards necessary to maintain listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE’s continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yirendai’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yirendai does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
About Yirendai
Yirendai Ltd. (NYSE: YRD) is a leading fintech company in China connecting investors and individual borrowers. The Company provides an effective solution to address largely underserved investor and individual borrower demand in China through online and offline channels to efficiently match borrowers with investors and execute loan transactions. Yirendai deploys a proprietary risk management system, which enables the Company to effectively assess the creditworthiness of borrowers, appropriately price the risks associated with borrowers, and offer quality loan investment opportunities to investors. Yirendai’s marketplace provides borrowers with quick and convenient access to consumer credit at competitive prices and investors with easy and quick access to an alternative asset class with attractive returns. For more information, please visit ir.Yirendai.com.
For investor and media inquiries, please contact:
Yirendai
Investor Relations
Email:
1 Adjusted EBITDA margin is a non-GAAP financial measure calculated as adjusted EBITDA divided by total net revenue.
| Unaudited Condensed Consolidated Statements of Operations | |||||||||||||||||||||
| (in thousands, except for share, per share and per ADS data, and percentages) | |||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||||
| June 30, 2018 | March 31, 2019 | June 30, 2019 | June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2019 | |||||||||||||||
| RMB (Recast*) | RMB (Recast*) | RMB | USD | RMB (Recast*) | RMB | USD | |||||||||||||||
| Net revenue: | |||||||||||||||||||||
| Loan facilitation services | 2,054,278 | 1,055,046 | 1,237,718 | 180,295 | 5,051,741 | 2,292,764 | 333,979 | ||||||||||||||
| Post-origination services | 303,757 | 296,279 | 241,321 | 35,152 | 584,875 | 537,600 | 78,310 | ||||||||||||||
| Account management services | 431,803 | 488,340 | 549,024 | 79,974 | 793,545 | 1,037,364 | 151,109 | ||||||||||||||
| Others | 197,445 | 140,743 | 188,577 | 27,469 | 321,794 | 329,320 | 47,971 | ||||||||||||||
| Total net revenue | 2,987,283 | 1,980,408 | 2,216,640 | 322,890 | 6,751,955 | 4,197,048 | 611,369 | ||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||
| Sales and marketing | 1,816,005 | 1,127,945 | 1,208,647 | 176,059 | 3,971,967 | 2,336,592 | 340,363 | ||||||||||||||
| Origination and servicing | 307,524 | 172,123 | 162,945 | 23,736 | 572,137 | 335,068 | 48,808 | ||||||||||||||
| General and administrative | 504,175 | 257,707 | 175,534 | 25,569 | 1,026,279 | 433,241 | 63,109 | ||||||||||||||
| Allowance for contract assets and receivables | 275,706 | 191,104 | 500,861 | 72,959 | 510,707 | 691,965 | 100,796 | ||||||||||||||
| Total operating costs and expenses | 2,903,410 | 1,748,879 | 2,047,987 | 298,323 | 6,081,090 | 3,796,866 | 553,076 | ||||||||||||||
| Other income/(expenses): | |||||||||||||||||||||
| Interest income, net | 21,314 | 23,875 | 25,213 | 3,673 | 49,648 | 49,088 | 7,150 | ||||||||||||||
| Fair value adjustments related to Consolidated ABFE | 140,549 | 34,998 | 5,787 | 843 | 147,620 | 40,785 | 5,941 | ||||||||||||||
| Others, net | (6,347 | ) | 160,223 | 17,480 | 2,546 | (6,923 | ) | 177,703 | 25,886 | ||||||||||||
| Total other income | 155,516 | 219,096 | 48,480 | 7,062 | 190,345 | 267,576 | 38,977 | ||||||||||||||
| Income before provision for income taxes | 239,389 | 450,625 | 217,133 | 31,629 | 861,210 | 667,758 | 97,270 | ||||||||||||||
| Share of results of equity investees | (2,705 | ) | (4,957 | ) | (816 | ) | (119 | ) | (5,029 | ) | (5,773 | ) | (841 | ) | |||||||
| Income tax expense | 42,916 | 76,534 | 61,856 | 9,010 | 126,495 | 138,390 | 20,159 | ||||||||||||||
| Net income | 193,768 | 369,134 | 154,461 | 22,500 | 729,686 | 523,595 | 76,270 | ||||||||||||||
| Weighted average number of ordinary shares outstanding, basic | 183,410,702 | 185,126,457 | 184,608,337 | 184,608,337 | 183,378,858 | 184,865,964 | 184,865,964 | ||||||||||||||
| Basic income per share | 1.0565 | 1.9940 | 0.8367 | 0.1219 | 3.9791 | 2.8323 | 0.4126 | ||||||||||||||
| Basic income per ADS | 2.1130 | 3.9880 | 1.6734 | 0.2438 | 7.9582 | 5.6646 | 0.8252 | ||||||||||||||
| Weighted average number of ordinary shares outstanding, diluted | 185,638,122 | 186,578,885 | 186,667,233 | 186,667,233 | 185,695,053 | 186,621,626 | 186,621,626 | ||||||||||||||
| Diluted income per share | 1.0438 | 1.9784 | 0.8275 | 0.1205 | 3.9295 | 2.8057 | 0.4087 | ||||||||||||||
| Diluted income per ADS | 2.0876 | 3.9568 | 1.6550 | 0.2410 | 7.8590 | 5.6114 | 0.8174 | ||||||||||||||
| Unaudited Condensed Consolidated Cash Flow Data | |||||||||||||||||||||
| Net cash used in operating activities | (1,905,334 | ) | (658,435 | ) | (331,829 | ) | (48,336 | ) | (2,722,370 | ) | (990,264 | ) | (144,248 | ) | |||||||
| Net cash provided by/ (used in) investing activities | 469,124 | (249,931 | ) | 609,077 | 88,722 | 206,564 | 359,146 | 52,316 | |||||||||||||
| Net cash (used in)/provided by financing activities | (201,584 | ) | 493,389 | (73,385 | ) | (10,690 | ) | 34,990 | 420,004 | 61,180 | |||||||||||
| Effect of foreign exchange rate changes | 8,117 | (2,196 | ) | 1,532 | 223 | (2,859 | ) | (664 | ) | (97 | ) | ||||||||||
| Net (decrease)/ increase in cash, cash equivalents and restricted cash | (1,629,677 | ) | (417,173 | ) | 205,395 | 29,919 | (2,483,675 | ) | (211,778 | ) | (30,849 | ) | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 3,626,324 | 3,034,484 | 2,617,311 | 381,254 | 4,480,322 | 3,034,484 | 442,022 | ||||||||||||||
| Cash, cash equivalents and restricted cash, end of period | 1,996,647 | 2,617,311 | 2,822,706 | 411,173 | 1,996,647 | 2,822,706 | 411,173 | ||||||||||||||
| Unaudited Condensed Consolidated Balance Sheets | ||||||||||||
| (in thousands) | ||||||||||||
| As of | ||||||||||||
| December 31, 2018 | March 31, 2019 | June 30, 2019 | June 30, 2019 | |||||||||
| RMB (Recast*) | RMB (Recast*) | RMB | USD | |||||||||
| Cash and cash equivalents | 2,606,939 | 2,519,423 | 2,706,530 | 394,250 | ||||||||
| Restricted cash | 427,546 | 97,888 | 116,176 | 16,923 | ||||||||
| Accounts receivable | 40,326 | 70,297 | 27,212 | 3,963 | ||||||||
| Contract assets, net | 3,909,263 | 3,431,014 | 2,958,476 | 430,951 | ||||||||
| Contract cost | 145,460 | 143,323 | 141,480 | 20,609 | ||||||||
| Prepaid expenses and other assets | 2,552,319 | 1,221,074 | 1,142,757 | 166,460 | ||||||||
| Loans at fair value | 1,375,221 | 851,406 | 677,354 | 98,668 | ||||||||
| Financing receivables | - | - | 25,175 | 3,667 | ||||||||
| Amounts due from related parties | 1,361,805 | 270,626 | 1,791,515 | 260,964 | ||||||||
| Held-to-maturity investments | 329,597 | 312,768 | 9,542 | 1,390 | ||||||||
| Available-for-sale investments | 835,565 | 1,187,588 | 387,519 | 56,449 | ||||||||
| Long term investments | 217,636 | 167,428 | 143,047 | 20,837 | ||||||||
| Property, equipment and software, net | 266,002 | 239,822 | 230,078 | 33,515 | ||||||||
| Deferred tax assets | 184,136 | 156,322 | 149,269 | 21,744 | ||||||||
| Right-of-use assets | - | 389,299 | 398,154 | 57,998 | ||||||||
| Total assets | 14,251,815 | 11,058,278 | 10,904,284 | 1,588,388 | ||||||||
| Accounts payable | 307,046 | 53,667 | 54,158 | 7,889 | ||||||||
| Amounts due to related parties | 8,276,459 | 310,592 | 169,189 | 24,646 | ||||||||
| Liabilities from quality assurance program and guarantee | 9,950 | 8,384 | 6,539 | 953 | ||||||||
| Deferred revenue | 569,469 | 459,806 | 390,621 | 56,900 | ||||||||
| Payable to investors at fair value | 626,207 | 7,386 | - | - | ||||||||
| Accrued expenses and other liabilities | 2,193,576 | 2,154,786 | 2,265,288 | 329,976 | ||||||||
| Refund liability | 2,145,748 | 2,137,835 | 2,039,998 | 297,159 | ||||||||
| Deferred tax liabilities | 486,773 | 417,629 | 329,347 | 47,975 | ||||||||
| Lease liabilities | - | 348,176 | 341,364 | 49,725 | ||||||||
| Contingent consideration | - | 2,626,734 | 2,626,734 | 382,627 | ||||||||
| Total liabilities | 14,615,228 | 8,524,995 | 8,223,238 | 1,197,850 | ||||||||
| Ordinary shares | 77 | 77 | 77 | 11 | ||||||||
| Shares to be issued | - | 2,754,444 | 2,754,444 | 401,230 | ||||||||
| Additional paid-in capital | 1,293,968 | 1,081,499 | 1,106,153 | 161,129 | ||||||||
| Treasury stock | (254 | ) | (5,694 | ) | (37,097 | ) | (5,404 | ) | ||||
| Accumulated other comprehensive income | 16,390 | 13,160 | 18,367 | 2,676 | ||||||||
| Accumulated deficit | (1,673,594 | ) | (1,310,203 | ) | (1,160,898 | ) | (169,104 | ) | ||||
| Total (deficit)/ equity | (363,413 | ) | 2,533,283 | 2,681,046 | 390,538 | |||||||
| Total liabilities and equity | 14,251,815 | 11,058,278 | 10,904,284 | 1,588,388 | ||||||||
| Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures | ||||||||||||||||||||||
| (in thousands, except for number of borrowers, number of investors and percentages) | ||||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||
| June 30, 2018 | March 31, 2019 | June 30, 2019 | June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2019 | ||||||||||||||||
| RMB (Recast*) | RMB (Recast*) | RMB | USD | RMB (Recast*) | RMB | USD | ||||||||||||||||
| Operating Highlights | ||||||||||||||||||||||
| Amount of investment | 17,627,499 | 11,435,588 | 11,939,582 | 1,739,196 | 35,655,154 | 23,375,170 | 3,404,977 | |||||||||||||||
| AUM of investment | 74,296,263 | 67,251,285 | 64,476,635 | 9,392,081 | 74,296,263 | 64,476,635 | 9,392,081 | |||||||||||||||
| Number of investors | 314,507 | 200,780 | 157,973 | 157,973 | 529,962 | 320,054 | 320,054 | |||||||||||||||
| Amount of loans facilitated | 18,180,272 | 10,934,923 | 9,673,818 | 1,409,150 | 37,951,340 | 20,608,740 | 3,002,002 | |||||||||||||||
| Number of borrowers | 267,628 | 149,715 | 135,246 | 135,246 | 553,938 | 280,634 | 280,634 | |||||||||||||||
| Remaining principal of performing loans | 76,479,235 | 63,213,843 | 58,071,303 | 8,459,039 | 76,479,235 | 58,071,303 | 8,459,039 | |||||||||||||||
| Segment Information | ||||||||||||||||||||||
| Wealth management: | ||||||||||||||||||||||
| Revenue | 531,611 | 521,434 | 592,378 | 86,290 | 954,601 | 1,113,812 | 162,245 | |||||||||||||||
| Sales and marketing expenses | 249,748 | 143,904 | 213,168 | 31,051 | 948,681 | 357,072 | 52,013 | |||||||||||||||
| Consumer credit: | ||||||||||||||||||||||
| Revenue | 2,455,672 | 1,458,974 | 1,624,262 | 236,600 | 5,797,354 | 3,083,236 | 449,124 | |||||||||||||||
| Sales and marketing expenses | 1,566,257 | 984,041 | 995,479 | 145,008 | 3,023,286 | 1,979,520 | 288,350 | |||||||||||||||
| Reconciliation of Adjusted EBITDA | ||||||||||||||||||||||
| Net income | 193,768 | 369,134 | 154,461 | 22,500 | 729,686 | 523,595 | 76,270 | |||||||||||||||
| Interest income, net | (21,314 | ) | (23,875 | ) | (25,213 | ) | (3,673 | ) | (49,648 | ) | (49,088 | ) | (7,150 | ) | ||||||||
| Income tax expense | 42,916 | 76,534 | 61,856 | 9,010 | 126,495 | 138,390 | 20,159 | |||||||||||||||
| Depreciation and amortization | 37,144 | 32,502 | 31,112 | 4,532 | 75,397 | 63,614 | 9,266 | |||||||||||||||
| Share-based compensation | 19,766 | 14,699 | 17,732 | 2,583 | 39,299 | 32,431 | 4,724 | |||||||||||||||
| Adjusted EBITDA | 272,280 | 468,994 | 239,948 | 34,952 | 921,229 | 708,942 | 103,269 | |||||||||||||||
| Adjusted EBITDA margin | 9.1 | % | 23.7 | % | 10.8 | % | 10.8 | % | 13.6 | % | 16.9 | % | 16.9 | % | ||||||||
| * Prior period financials have been recasted to reflect the acquisition from Creditease under common control. | ||||||||||||||||||||||
| Delinquency Rates | ||||||
| Delinquent for | ||||||
| 15-29 days | 30-59 days | 60-89 days | ||||
| All Loans | ||||||
| December 31, 2015 | 0.7% | 1.2% | 0.9% | |||
| December 31, 2016 | 0.6% | 0.9% | 0.8% | |||
| December 31, 2017 | 0.8% | 1.0% | 0.8% | |||
| December 31, 2018 | 1.0% | 1.8% | 1.7% | |||
| March 31, 2019 | 0.9% | 1.9% | 1.7% | |||
| June 30, 2019 | 1.1% | 1.8% | 1.9% | |||
| Online Channels | ||||||
| December 31, 2015 | 0.5% | 0.8% | 0.6% | |||
| December 31, 2016 | 0.5% | 0.9% | 0.8% | |||
| December 31, 2017 | 1.1% | 1.1% | 0.9% | |||
| December 31, 2018 | 1.2% | 2.3% | 2.2% | |||
| March 31, 2019 | 1.2% | 2.6% | 2.4% | |||
| June 30, 2019 | 1.4% | 2.2% | 2.6% | |||
| Offline Channels | ||||||
| December 31, 2015 | 0.7% | 1.2% | 1.0% | |||
| December 31, 2016 | 0.6% | 0.9% | 0.8% | |||
| December 31, 2017 | 0.6% | 0.9% | 0.7% | |||
| December 31, 2018 | 0.9% | 1.6% | 1.5% | |||
| March 31, 2019 | 0.8% | 1.6% | 1.5% | |||
| June 30, 2019 | 1.0% | 1.6% | 1.7% | |||
| Net Charge-Off Rate for Upgraded Risk Grid | |||||||||
| Loan Issued Period | Customer Grade | Amount of Loans Facilitated During the Period | Accumulated M3+ Net Charge-Off as of June 30, 2019 | Total Net Charge-Off Rate as of June 30, 2019 | |||||
| (in RMB thousands) | (in RMB thousands) | ||||||||
| 2015 | I | 4,894,936 | 204,257 | 4.2 | % | ||||
| II | 17,502,449 | 490,328 | 2.8 | % | |||||
| III | 11,272,838 | 715,240 | 6.3 | % | |||||
| IV | 11,283,656 | 1,362,071 | 12.1 | % | |||||
| V | 11,199,563 | 1,725,698 | 15.4 | % | |||||
| Total | 56,153,444 | 4,497,593 | 8.0 | % | |||||
| 2016 | I | 5,858,473 | 229,407 | 3.9 | % | ||||
| II | 12,781,372 | 516,174 | 4.0 | % | |||||
| III | 9,951,614 | 734,157 | 7.4 | % | |||||
| IV | 8,652,543 | 911,659 | 10.5 | % | |||||
| V | 16,981,990 | 2,582,818 | 15.2 | % | |||||
| Total | 54,225,993 | 4,974,216 | 9.2 | % | |||||
| 2017 | I | 11,223,886 | 626,827 | 5.6 | % | ||||
| II | 12,270,230 | 1,369,026 | 11.2 | % | |||||
| III | 13,837,922 | 2,015,072 | 14.6 | % | |||||
| IV | 13,663,558 | 2,186,320 | 16.0 | % | |||||
| V | 19,680,365 | 3,720,647 | 18.9 | % | |||||
| Total | 70,675,961 | 9,917,892 | 14.0 | % | |||||
| 2018 | I | 9,604,220 | 361,355 | 3.8 | % | ||||
| II | 14,656,703 | 961,532 | 6.6 | % | |||||
| III | 13,903,094 | 1,190,224 | 8.6 | % | |||||
| IV | 13,812,989 | 1,511,587 | 10.9 | % | |||||
| V | 11,326,230 | 1,513,789 | 13.4 | % | |||||
| Total | 63,303,236 | 5,538,487 | 8.7 | % | |||||
| 2019Q1 | I | 1,834,364 | 3,213 | 0.2 | % | ||||
| II | 3,309,340 | 11,289 | 0.3 | % | |||||
| III | 2,617,979 | 11,815 | 0.5 | % | |||||
| IV | 1,866,640 | 8,316 | 0.4 | % | |||||
| V | 1,306,600 | 6,983 | 0.5 | % | |||||
| Total | 10,934,923 | 41,617 | 0.4 | % | |||||
| M3+ Net Charge-Off Rate | |||||||||||||||||||||||
| Loan Issued Period | Month on Book | ||||||||||||||||||||||
| 4 | 7 | 10 | 13 | 16 | 19 | 22 | 25 | 28 | 31 | 34 | |||||||||||||
| 2015Q1 | 0.8% | 2.0% | 3.5% | 4.7% | 5.8% | 6.5% | 7.1% | 7.5% | 7.7% | 7.8% | 7.8% | ||||||||||||
| 2015Q2 | 0.8% | 2.3% | 3.8% | 5.2% | 6.4% | 7.3% | 8.0% | 8.3% | 8.5% | 8.7% | 8.8% | ||||||||||||
| 2015Q3 | 0.4% | 1.6% | 3.1% | 4.4% | 5.6% | 6.5% | 7.2% | 7.6% | 7.9% | 8.2% | 8.4% | ||||||||||||
| 2015Q4 | 0.4% | 1.6% | 3.1% | 4.4% | 5.5% | 6.3% | 6.9% | 7.4% | 7.9% | 8.3% | 8.6% | ||||||||||||
| 2016Q1 | 0.3% | 1.2% | 2.5% | 3.6% | 4.5% | 5.2% | 5.8% | 6.5% | 7.0% | 7.4% | 7.6% | ||||||||||||
| 2016Q2 | 0.4% | 1.6% | 3.1% | 4.3% | 5.2% | 6.0% | 6.8% | 7.6% | 8.1% | 8.4% | 8.7% | ||||||||||||
| 2016Q3 | 0.3% | 1.6% | 3.1% | 4.3% | 5.4% | 6.6% | 7.8% | 8.6% | 9.2% | 9.5% | |||||||||||||
| 2016Q4 | 0.2% | 1.5% | 2.9% | 4.4% | 5.9% | 7.4% | 8.4% | 9.3% | 10.0% | ||||||||||||||
| 2017Q1 | 0.3% | 1.5% | 3.2% | 5.1% | 7.1% | 8.6% | 9.8% | 10.8% | |||||||||||||||
| 2017Q2 | 1.1% | 2.9% | 5.6% | 8.4% | 10.4% | 12.1% | 13.5% | ||||||||||||||||
| 2017Q3 | 0.3% | 2.9% | 6.3% | 9.1% | 11.6% | 13.6% | |||||||||||||||||
| 2017Q4 | 0.5% | 3.8% | 7.2% | 10.5% | 13.2% | ||||||||||||||||||
| 2018Q1 | 0.4% | 3.0% | 6.6% | 10.1% | |||||||||||||||||||
| 2018Q2 | 0.5% | 3.6% | 7.4% | ||||||||||||||||||||
| 2018Q3 | 0.3% | 2.9% | |||||||||||||||||||||
| 2018Q4 | 0.3% | ||||||||||||||||||||||
