BEIJING, Aug. 1, 2017 /PRNewswire/ -- Yirendai Ltd. (NYSE:
YRD) ("Yirendai" or the "Company"), a leading fintech company
in China, today announced its
unaudited financial results for the quarter ended June 30, 2017.
|
For Three Months
Ended
|
in RMB
million
|
June 30,
2017
|
March 31,
2017
|
June 30,
2016
|
QoQ
Change
|
YoY
Change
|
Amount of Loans
Facilitated
|
8,189.6
|
6,922.7
|
4,538.7
|
18%
|
80%
|
Total Net
Revenue
|
1,183.1
|
1,021.6
|
733.8
|
16%
|
61%
|
Total Fees Billed
(non-GAAP)
|
1,862.5
|
1,583.5
|
1,110.8
|
18%
|
68%
|
Adjusted EBITDA
(non-GAAP)
|
378.4
|
400.3
|
265.0
|
-5%
|
43%
|
Net Income
|
269.1
|
350.9
|
260.6
|
-23%
|
3%
|
In the second quarter of 2017, Yirendai facilitated RMB 8,189.6 million (US$1,208.0 million) of loans to 138,529 qualified
individual borrowers on its online marketplace, representing a
year-over-year growth of 80%; 70.9% of the borrowers were acquired
from online channels; 51.2% of the loan volume was originated from
online channels and nearly 100% of the online volume was
facilitated through mobile.
In the second quarter of 2017, Yirendai facilitated 199,591
investors with total investment amount of RMB 11,446.7 million (US$1,688.5 million), 100% of which was
facilitated through its online platform and 90% of which was
facilitated through its mobile application.
For the second quarter of 2017, total net revenue was
RMB 1,183.1 million (US$174.5 million), an increase of 61% year over
year; net income was RMB 269.1
million (US$39.7 million), an
increase of 3% year over year.
"We are delighted to deliver yet another solid quarter,"
commented Ms. Yihan Fang, Chief
Executive Officer of Yirendai. "Loan origination continued the
strong growth momentum, especially from online channels driven by
our relentless focus on technological innovation. This quarter, we
also launched our credit scoring system, the Yiren Score, in aims
of delivering more precise and accurate characterization of our
borrower's credit profile. We stay committed to strengthening our
technological and risk management capabilities to further enhance
our industry leadership. Meanwhile, we will also continue to
execute our strategic expansion into online wealth management
business to provide more comprehensive investment solutions for our
platform investors, leveraging CreditEase's broad wealth management
product portfolio."
"Yirendai's revenue has continued to show strong year-over-year
growth," commented Mr. Dennis Cong,
Chief Financial Officer of Yirendai. "The risk performance of our
loan portfolio has remained stable due to our efforts in enhancing
our credit underwriting and risk management system. We will
continue to invest in our technology development and AI capability
to drive our operational efficiency and risk management abilities.
We will also continue to work closely with regulators to ensure our
full compliance status with online lending industry interim
measures. In addition, given our strong cash position and positive
cash flow generation ability, our board has approved a special cash
dividend and a semi-annual dividend policy going forward."
Second Quarter 2017 Financial Results
Total amount of loans facilitated in the second quarter
of 2017 was RMB 8,189.6 million
(US$1,208.0 million), increased by
80% year over year from RMB 4,538.7
million in the same period last year, reflecting strong
demand for our products and services, especially from customers
acquired from online channels. As of June
30, 2017, the Yirendai platform had facilitated
approximately RMB 47.4 billion
(US$7.0 billion) in loan principal
since its inception.
Total net revenue in the second quarter of 2017 was
RMB 1,183.1 million (US$174.5 million), increased by 61% from
RMB 733.8 million in the same period
last year. The increase of total net revenue was mainly
attributable to the growth of loan origination volume, increased
service fees billed to investors and increased monthly fees billed
to borrowers as our remaining loan balance continued to expand.
Total fees billed (non-GAAP) in the second quarter of
2017 were RMB 1,862.5 million
(US$274.7 million), increased by 68%
from RMB 1,110.8 million in the same
period last year, driven by the growth of loan origination volume.
Upfront fees billed to borrowers in the second quarter of
2017 were RMB 1,538.0 million
(US$226.9 million), increased by 51%
from RMB 1,016.4 million in the same
period last year. Monthly fees billed to borrowers in the
second quarter of 2017 were RMB 215.2
million (US$31.7 million),
increased by 171% from RMB 79.4
million in the same period last year. The significant
year-over-year increase in monthly fees billed to borrowers was
primarily attributable to the increase in loans generated from
online channels, which features a fee collection schedule with
monthly payments in addition to the upfront portion. Service
fees billed to investors in the second quarter of 2017 were
RMB 222.8 million (US$32.9 million), increased by 153% from
RMB 88.1 million in the same period
last year. The significant year-over-year increase in service fees
billed to investors was primarily attributable to the increase in
the total investment amount under management.
Operating costs and expenses in the second quarter of
2017 were RMB 809.6 million
(US$119.4 million), increased by 29%
from RMB 628.7 million in the
previous quarter and compared to RMB 471.1
million in the same period last year.
Sales and marketing expenses in the second quarter of
2017 were RMB 617.9 million
(US$91.1 million), increased by 32%
from RMB 469.4 million in the
previous quarter and compared to RMB 355.2
million in the same period last year. Sales and marketing
expenses in the second quarter of 2017 accounted for 7.5% of amount
of loans facilitated, increased from 6.8% in the previous quarter
and decreased from 7.8% in the same period last year. Sales and
marketing expenses have decreased as a percentage of loan volume on
a year-over-year basis primarily due to improvements in customer
acquisition efficiency.
Origination and servicing costs in the second quarter of
2017 were RMB 93.1 million
(US$13.7 million), compared to
RMB 58.8 million in the previous
quarter and RMB 42.5 million in the
same period last year. Origination and servicing costs in the
second quarter of 2017 accounted for 1.1% of amount of loans
facilitated, increased from 0.8% in the previous quarter and 0.9%
in the same period last year. Origination and servicing costs
increased due to our enhanced efforts in loan collection this
quarter.
General and administrative expenses in the second quarter
of 2017 were RMB 98.6 million
(US$14.5 million), compared to
RMB 100.5 million in the previous
quarter and RMB 73.3 million in the
same period last year. General and administrative expenses in the
second quarter of 2017 accounted for 8.3% of total net revenue,
compared to 9.8% in the previous quarter and 10.0% in the same
period last year. The decrease in general and administrative
expenses as percentage of total net revenue was primarily
attributable to improved operational efficiency and leverage,
despite our increased level of investment in technology
development.
Income tax expense in the second quarter of 2017 was
RMB 130.4 million (US$19.2 million), which includes a RMB 60 million (US$8.85
million) withholding tax expense resulting from the special
cash dividend declared.
Net income in the second quarter of 2017 was RMB 269.1 million (US$39.7
million), increased by 3% from RMB
260.6 million for the same period last year.
Adjusted EBITDA (non-GAAP) in the second quarter of 2017
was RMB 378.4 million (US$55.8 million), compared to RMB 400.3 million in the previous quarter and
increased by 43% from RMB 265.0
million in the same period last year. Adjusted EBITDA
margin[1] (non-GAAP) in the second quarter of 2017 was
32.0%, compared to 39.2% in the previous quarter and 36.1% in the
same period last year.
[1]
Adjusted EBITDA margin is a non-GAAP financial measure calculated
as adjusted EBITDA divided by total net revenue.
|
Basic income per ADS in the second quarter of 2017 was
RMB 4.50 (US$0.66), compared to RMB
5.87 in the previous quarter and RMB
4.46 in the same period last year.
Diluted income per ADS in the second quarter of 2017 was
RMB 4.45 (US$0.66), compared to RMB
5.81 in the previous quarter and RMB
4.46 in the same period last year.
Net cash generated from operating activities in the
second quarter of 2017 was RMB 530.4
million (US$78.2million),
compared to RMB 564.5 million in the
previous quarter and increased by 35% from RMB 392.5 million in the same period last
year.
As of June 30, 2017, cash and
cash equivalents was RMB 891.2
million (US$ 131.5 million),
compared to RMB 864.4 million as of
March 31, 2017. As of June 30, 2017, balance of held-to-maturity
investments was RMB 589.3 million
(US$86.9 million), compared to
RMB 494.8 million as of March 31, 2017. As of June
30, 2017, balance of available-for-sale investments was
RMB 1,262.3 million (US$186.2 million), compared to RMB 1,232.3 million as of March 31, 2017.
Quality Assurance Program. In the second quarter of 2017,
Yirendai accrued liabilities from quality assurance program of
RMB 655.2 million (US$96.6 million), which is equal to 8% of the
loans facilitated through its marketplace during the period. During
the quarter, the Company released liabilities of RMB 395.4 million (US$
58.3 million) to pay out the outstanding principal and
accrued interest of default loans. As of June 30, 2017, liabilities from quality assurance
program were RMB 1,961.3 million
(US$289.3 million).
Delinquency rates. As of June 30,
2017, the delinquency rates for loans that are past due for
15-29 days, 30-59 days and 60-89 days were 0.4%, 0.7% and 0.5%, as
compared to 0.4%, 0.8% and 0.6% as of March
31, 2017.
Cumulative M3+ net charge-off rates. As of
June 30, 2017, the cumulative M3+ net
charge-off rate for loans originated in 2015 was 8.3%, compared to
7.6% as of March 31, 2017. As of
June 30, 2017, the cumulative M3+ net
charge-off rate for loans originated in 2016 was 3.4%, compared to
2.0% as of March 31, 2017. As the
2015 and 2016 vintage loans continue to mature, the charge off
level is consistent with our risk performance expectation.
Recent Development
Yiren Score and Upgraded Risk Grid
As a leader in China's fintech
industry, the Company strives to uphold industry best practices for
all aspects of its business. The Company is pleased to see the
continuous progress it has made in refining its credit scoring
model to deliver more precise and accurate credit assessment of
loan applicants. The Company launched in the second quarter of 2017
its new credit scoring system, the Yiren score, which can be used
to more accurately characterize borrower's credit profile. The
Company has also decided to adopt, starting May 1, 2017, an upgraded risk grid with five
segments - Grade I, Grade II, Grade III, Grade IV and Grade V. The
expected net charge off rate and actual observed results for each
of these customer groups divide potential borrowers into
distinctively different credit segments.
The following table summarizes the upgraded risk grades with the
corresponding Yiren scores, the volume mix in the second quarter of
2017, the expected lifetime net charge off rate, the current
annualized interest rate and the average transaction fee rate:
Risk
Grade
|
% of Q2 2017
Loan
Facilitation
Volume
|
Yiren
Scores
|
Expected
M3+ net
charge-off
rate
|
Interest
Rate (1)
|
Average
Transaction
Fee Rate
(2)
|
I
|
5.8%
|
790+
|
[0%, 3.0%)
|
10.0-12.0%
|
13.60%
|
II
|
21.9%
|
750-<790
|
[3.0%,
5.0%)
|
10.0-12.0%
|
17.40%
|
III
|
23.2%
|
720-<750
|
[5.0%,
7.0%)
|
10.0-12.0%
|
19.70%
|
IV
|
24.5%
|
690-<720
|
[7.0%,
9.0%)
|
10.0-12.0%
|
24.00%
|
V
|
24.6%
|
640-<690
|
[9.0%,
13.0%)
|
10.0-12.0%
|
27.00%
|
(1) The
annualized interest rate that borrowers pay to investors varies
from 10.0% to 12.0%, depending on the term of the loan.
|
(2) The transaction fee rate is
calculated as the total transaction fee that the Company charges
borrowers for the entire life of the loan, divided by the total
amount of principal. The average transaction fee rate presented in
the table above is the simple average of the transaction fee rates
for loans falling under the same risk grade, but with different
tenures and repayment schedules.
|
In the transition period from May 1,
2017 to September 30, 2017,
the Company will use both the upgraded risk grid and the previous
risk grid for loans facilitated on the Company's platform.
Amendment to Cash Contribution Rules for the Quality
Assurance Program
To further enhance the Company's cash management, the Company
has determined to amend cash contribution rules for the Program,
effective July 1, 2017. The Company
will contribute 30% of the transaction fee collected from the
borrowers, following the actual fee collection schedule, over the
life of the loan to a restricted bank account as a quality
assurance service fee. The total contribution over the life of a
loan is approximately equal to 8% of the loan contract amount,
which is similar to the previous accrual ratio. The Company reserve
the right to revise this percentage upwards or downwards from time
to time as a result of continuing evaluation of factors such as
market dynamics as well as of our product lines, profitability and
cash position.
Dividend
On July 29, 2017, the board of
directors (the "Board") of the Company approved a special cash
dividend of RMB 5.0845 (US$0.75) per ordinary share of the Company (or
RMB 10.1690 (US$1.50) per American depositary share of the
Company), which is expected to be paid on October 16, 2017 to holders of the Company's
ordinary shares of record as of the close of business on
September 29, 2017.
On July 29, 2017, the Board also
approved a semi-annual dividend policy. Under this policy,
semi-annual dividends will be set at an amount equivalent to
approximately 15% of the Company's anticipated net income after tax
in each half year commencing from the second half of 2017. The
determination to declare and pay such semi-annual dividend and the
amount of dividend in any particular half year will be made at the
discretion of the Board and will be based upon the Company's
operations and earnings, cash flow, financial condition and other
relevant factors that the Board may deem appropriate.
Other Operating Metrics and Business Results
- As of June 30, 2017, Yirendai had
facilitated RMB 47.4 billion
(US$7.0 billion) of loans on the
Yirendai online marketplace since its inception in 2012.
- As of June 30, 2017, remaining
principal of performing loans totaled RMB
27.9 billion (US$4.1 billion),
increased by 16% from RMB 24.0
billion as of March 31, 2017
and 102% from RMB 13.8 billion as of
June 30, 2016.
- In the second quarter of 2017, Grade A, B, C and D loans
represented 2.3%, 7.3%, 12.7%, and 77.7% and Grade I, II, III, IV
and V loans represented 5.8%, 21.9%, 23.2%, 24.5% and 24.6% of the
Company's product portfolio, respectively.
Business Outlook
Based on the information available as of the date of this press
release, Yirendai provides the following outlook, which reflects
the Company's current and preliminary view and is subject to
change. The following outlook does not take into consideration the
impact of stock-based compensation expenses.
Third Quarter 2017
- Total loans facilitated will be in the range of
RMB 10,000 million to RMB 10,500
million.
- Total net revenue will be in the range of RMB 1,300 million to RMB 1,350 million.
- Adjusted EBITDA (non-GAAP) will be in the range of
RMB 280 million to RMB 320
million.
Full Year 2017
- Total loans facilitated will be in the range of
RMB 35,000 million to RMB 37,000
million.
- Total net revenue will be in the range of RMB 4,800 million to RMB 5,000 million.
- Adjusted EBITDA (non-GAAP) will be in the range of
RMB 1,300 million to RMB 1,400
million.
Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses
several non-GAAP financial measures, such as fees billed, adjusted
EBITDA and adjusted EBITDA margin as supplemental measures to
review and assess operating performance. We believe that fees
billed and adjusted EBITDA margin 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 6.7793 to
US$1.00, the effective noon buying rate on June 30, 2017 as set forth in the H.10
statistical release of the Federal Reserve Board.
Conference Call
Yirendai will host an earnings conference call at 8:00 a.m.
Eastern Time on August 1, 2017, (or 8:00
p.m. Beijing/Hong Kong Time on August 1, 2017).
Dial-in details for the earnings conference call are as
follows:
International:
|
1-412-902-4272
|
U.S. Toll
Free:
|
1-888-346-8982
|
Hong Kong Toll
Free:
|
800-905945
|
China Toll
Free:
|
4001-201203
|
Conference
ID:
|
Yirendai
|
A replay of the conference call may be accessed by phone at the
following numbers until August 8, 2017:
International:
|
1-412-317-0088
|
U.S. Toll
Free:
|
1-877-344-7529
|
Replay Access
Code:
|
10110363
|
Additionally, a live and archived webcast of the conference call
will be available at yirendai.investorroom.com.
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 an online
platform that automates key aspects of its operations 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 online 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 yirendai.investorroom.com.
For investor and media inquiries, please contact:
Yirendai
Hui (Matthew)
Li
Director of Investor Relations
Email: ir@yirendai.com
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,
2016
|
|
March 31,
2017
|
|
June 30,
2017
|
|
June 30,
2017
|
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan facilitation
services
|
713,383
|
|
976,398
|
|
1,121,200
|
|
165,386
|
|
|
1,248,470
|
|
2,097,598
|
|
309,412
|
Post-origination
services
|
17,232
|
|
33,312
|
|
41,389
|
|
6,105
|
|
|
35,629
|
|
74,701
|
|
11,019
|
Others
|
3,176
|
|
11,889
|
|
20,468
|
|
3,019
|
|
|
6,071
|
|
32,357
|
|
4,773
|
Total net
revenue
|
733,791
|
|
1,021,599
|
|
1,183,057
|
|
174,510
|
|
|
1,290,170
|
|
2,204,656
|
|
325,204
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
355,246
|
|
469,380
|
|
617,880
|
|
91,142
|
|
|
610,082
|
|
1,087,260
|
|
160,379
|
Origination and
servicing
|
42,535
|
|
58,784
|
|
93,147
|
|
13,740
|
|
|
75,894
|
|
151,931
|
|
22,411
|
General and
administrative
|
73,330
|
|
100,498
|
|
98,614
|
|
14,546
|
|
|
133,436
|
|
199,112
|
|
29,371
|
Total operating costs
and expenses
|
471,111
|
|
628,662
|
|
809,641
|
|
119,428
|
|
|
819,412
|
|
1,438,303
|
|
212,161
|
Interest
income
|
7,253
|
|
24,149
|
|
27,398
|
|
4,042
|
|
|
12,287
|
|
51,547
|
|
7,604
|
Fair value
adjustments related to Consolidated ABFE
|
(118)
|
|
1,355
|
|
(1,915)
|
|
(283)
|
|
|
(3,513)
|
|
(560)
|
|
(83)
|
Non-operating income,
net
|
91
|
|
207
|
|
555
|
|
82
|
|
|
91
|
|
762
|
|
112
|
Income before
provision for income taxes
|
269,906
|
|
418,648
|
|
399,454
|
|
58,923
|
|
|
479,623
|
|
818,102
|
|
120,676
|
Income tax
expense/(benefit)
|
9,286
|
|
67,747
|
|
130,358
|
|
19,229
|
|
|
87,287
|
|
198,105
|
|
29,222
|
Net income
|
260,620
|
|
350,901
|
|
269,096
|
|
39,694
|
|
|
392,336
|
|
619,997
|
|
91,454
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares outstanding,
basic
|
117,000,000
|
|
119,560,832
|
|
119,603,286
|
|
119,603,286
|
|
|
117,000,000
|
|
119,582,176
|
|
119,582,176
|
Basic income per
share
|
2.2275
|
|
2.9349
|
|
2.2499
|
|
0.3319
|
|
|
3.3533
|
|
5.1847
|
|
0.7648
|
Basic income per
ADS
|
4.4550
|
|
5.8698
|
|
4.4998
|
|
0.6638
|
|
|
6.7066
|
|
10.3694
|
|
1.5296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares outstanding,
diluted
|
117,000,000
|
|
120,842,350
|
|
120,833,406
|
|
120,833,406
|
|
|
117,000,000
|
|
120,837,995
|
|
120,837,995
|
Diluted income per
share
|
2.2275
|
|
2.9038
|
|
2.2270
|
|
0.3285
|
|
|
3.3533
|
|
5.1308
|
|
0.7568
|
Diluted income per
ADS
|
4.4550
|
|
5.8076
|
|
4.4540
|
|
0.6570
|
|
|
6.7066
|
|
10.2616
|
|
1.5136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
Condensed Consolidated Cash Flow Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash generated
from operating activities
|
392,474
|
|
564,504
|
|
530,371
|
|
78,234
|
|
|
826,797
|
|
1,094,875
|
|
161,503
|
Net cash provided
by/(used in) investing activities
|
51,515
|
|
(427,686)
|
|
(95,702)
|
|
(14,117)
|
|
|
65,567
|
|
(523,388)
|
|
(77,204)
|
Net cash used in
financing activities
|
(87,914)
|
|
(44,841)
|
|
(94,993)
|
|
(14,012)
|
|
|
(104,323)
|
|
(139,834)
|
|
(20,627)
|
Effect of foreign
exchange rate changes
|
12,733
|
|
(3,779)
|
|
(6,463)
|
|
(953)
|
|
|
10,840
|
|
(10,242)
|
|
(1,511)
|
Net increase in cash,
cash equivalents and restricted cash
|
368,808
|
|
88,198
|
|
333,213
|
|
49,152
|
|
|
798,881
|
|
421,411
|
|
62,161
|
Cash, cash
equivalents and restricted cash, beginning of period
|
1,760,158
|
|
2,186,511
|
|
2,274,709
|
|
335,537
|
|
|
1,330,085
|
|
2,186,511
|
|
322,528
|
Cash, cash
equivalents and restricted cash, end of period
|
2,128,966
|
|
2,274,709
|
|
2,607,922
|
|
384,689
|
|
|
2,128,966
|
|
2,607,922
|
|
384,689
|
Unaudited
Consolidated Balance Sheet
|
(in
thousands, except for share, per share and per ADS data, and
percentages)
|
|
As
of
|
|
June 30,
2016
|
|
March 31,
2017
|
|
June 30,
2017
|
|
June 30,
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
1,336,329
|
|
864,361
|
|
891,154
|
|
131,452
|
Restricted
cash
|
792,637
|
|
1,410,348
|
|
1,716,768
|
|
253,237
|
Accounts
receivable
|
50,496
|
|
22,851
|
|
18,109
|
|
2,671
|
Prepaid
expenses and other assets
|
272,977
|
|
475,979
|
|
618,076
|
|
91,171
|
Loans at
fair value
|
175,614
|
|
319,984
|
|
269,952
|
|
39,820
|
Amounts
due from related parties
|
105,809
|
|
18,436
|
|
4,252
|
|
627
|
Held-to-maturity investments
|
2,500
|
|
494,847
|
|
589,329
|
|
86,931
|
Available-for-sale investments
|
-
|
|
1,232,260
|
|
1,262,260
|
|
186,193
|
Property,
equipment and software, net
|
22,281
|
|
42,309
|
|
59,838
|
|
8,827
|
Deferred
tax assets
|
282,700
|
|
495,464
|
|
559,794
|
|
82,574
|
Total
assets
|
3,041,343
|
|
5,376,839
|
|
5,989,532
|
|
883,503
|
Accounts
payable
|
5,176
|
|
12,192
|
|
15,153
|
|
2,235
|
Amounts
due to related parties
|
18,799
|
|
4,272
|
|
45,425
|
|
6,701
|
Liabilities from quality assurance program
|
928,166
|
|
1,701,519
|
|
1,961,315
|
|
289,309
|
Deferred
revenue
|
141,330
|
|
168,422
|
|
173,386
|
|
25,576
|
Payable to
investors at fair value
|
166,193
|
|
380,048
|
|
200,947
|
|
29,641
|
Accrued
expenses and other liabilities
|
401,560
|
|
621,723
|
|
780,555
|
|
115,138
|
Deffered
tax liability
|
-
|
|
-
|
|
60,000
|
|
8,851
|
Total
liabilities
|
1,661,224
|
|
2,888,176
|
|
3,236,781
|
|
477,451
|
Ordinary
shares
|
73
|
|
75
|
|
75
|
|
11
|
Additional
paid-in capital
|
791,841
|
|
942,604
|
|
950,151
|
|
140,155
|
Accumulated other comprehensive income
|
10,942
|
|
25,678
|
|
19,216
|
|
2,834
|
Retained
earnings
|
577,263
|
|
1,520,306
|
|
1,783,309
|
|
263,052
|
Total
equity
|
1,380,119
|
|
2,488,663
|
|
2,752,751
|
|
406,052
|
Total liabilities and
equity
|
3,041,343
|
|
5,376,839
|
|
5,989,532
|
|
883,503
|
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,
2016
|
|
March 31,
2017
|
|
June 30,
2017
|
|
June 30,
2017
|
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
RMB
|
|
RMB
|
|
USD
|
Operating
Highlights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of loans
facilitated
|
4,538,687
|
|
6,922,678
|
|
8,189,589
|
|
1,208,028
|
|
|
7,985,203
|
|
15,112,267
|
|
2,229,178
|
Loans
generated from online channels
|
1,832,078
|
|
3,515,727
|
|
4,195,406
|
|
618,855
|
|
|
3,007,460
|
|
7,711,133
|
|
1,137,453
|
Loans
generated from offline channels
|
2,706,609
|
|
3,406,951
|
|
3,994,183
|
|
589,173
|
|
|
4,977,743
|
|
7,401,134
|
|
1,091,725
|
Fees
billed
|
1,110,849
|
|
1,583,537
|
|
1,862,467
|
|
274,728
|
|
|
1,958,262
|
|
3,446,004
|
|
508,312
|
Remaining principal
of performing loans
|
13,771,180
|
|
24,037,078
|
|
27,871,922
|
|
4,111,327
|
|
|
13,771,180
|
|
27,871,922
|
|
4,111,327
|
Remaining principal
of performing loans covered by
quality assurance program
|
12,963,604
|
|
23,524,227
|
|
27,502,314
|
|
4,056,807
|
|
|
12,963,604
|
|
27,502,314
|
|
4,056,807
|
Number of
borrowers
|
68,882
|
|
124,953
|
|
138,529
|
|
138,529
|
|
|
119,305
|
|
263,319
|
|
263,319
|
Borrowers
from online channels
|
40,033
|
|
86,095
|
|
98,245
|
|
98,245
|
|
|
67,849
|
|
184,190
|
|
184,190
|
Borrowers
from offline channels
|
28,849
|
|
38,858
|
|
40,284
|
|
40,284
|
|
|
51,456
|
|
79,129
|
|
79,129
|
Number of
investors
|
206,706
|
|
192,505
|
|
199,591
|
|
199,591
|
|
|
367,229
|
|
324,672
|
|
324,672
|
Investors
from online channels
|
206,706
|
|
192,505
|
|
199,591
|
|
199,591
|
|
|
367,229
|
|
324,672
|
|
324,672
|
Investors
from offline channels
|
-
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
-
|
Adjusted
EBITDA
|
264,962
|
|
400,297
|
|
378,434
|
|
55,822
|
|
|
471,575
|
|
778,731
|
|
114,868
|
Adjusted EBITDA
margin
|
36.1%
|
|
39.2%
|
|
32.0%
|
|
32.0%
|
|
|
36.6%
|
|
35.3%
|
|
35.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees
billed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction fees billed to borrowers
|
1,095,749
|
|
1,507,754
|
|
1,753,192
|
|
258,610
|
|
|
1,932,645
|
|
3,260,946
|
|
481,015
|
Upfront fees billed to borrowers
|
1,016,393
|
|
1,334,688
|
|
1,537,969
|
|
226,863
|
|
|
1,789,685
|
|
2,872,657
|
|
423,739
|
Monthly fees billed to borrowers
|
79,356
|
|
173,066
|
|
215,223
|
|
31,747
|
|
|
142,960
|
|
388,289
|
|
57,276
|
Service
fees billed to investors
|
88,068
|
|
177,132
|
|
222,845
|
|
32,871
|
|
|
152,620
|
|
399,977
|
|
59,000
|
Others
|
3,366
|
|
12,602
|
|
21,697
|
|
3,200
|
|
|
6,435
|
|
34,299
|
|
5,059
|
Value-added tax
|
(76,334)
|
|
(113,951)
|
|
(135,267)
|
|
(19,953)
|
|
|
(133,438)
|
|
(249,218)
|
|
(36,762)
|
Total fees
billed
|
1,110,849
|
|
1,583,537
|
|
1,862,467
|
|
274,728
|
|
|
1,958,262
|
|
3,446,004
|
|
508,312
|
Stand-ready liabilities associated with
quality assurance
program
|
(363,095)
|
|
(553,816)
|
|
(655,167)
|
|
(96,642)
|
|
|
(638,816)
|
|
(1,208,983)
|
|
(178,334)
|
Deferred
revenue
|
(15,857)
|
|
(9,662)
|
|
(10,297)
|
|
(1,519)
|
|
|
(36,223)
|
|
(19,959)
|
|
(2,944)
|
Cash
incentives
|
(19,556)
|
|
(30,355)
|
|
(51,614)
|
|
(7,613)
|
|
|
(31,263)
|
|
(81,969)
|
|
(12,091)
|
Value-added tax
|
21,450
|
|
31,895
|
|
37,668
|
|
5,556
|
|
|
38,210
|
|
69,563
|
|
10,261
|
Net
revenues
|
733,791
|
|
1,021,599
|
|
1,183,057
|
|
174,510
|
|
|
1,290,170
|
|
2,204,656
|
|
325,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
260,620
|
|
350,901
|
|
269,096
|
|
39,694
|
|
|
392,336
|
|
619,997
|
|
91,454
|
Interest
income
|
(7,253)
|
|
(24,149)
|
|
(27,398)
|
|
(4,042)
|
|
|
(12,287)
|
|
(51,547)
|
|
(7,604)
|
Income tax
expense
|
9,286
|
|
67,747
|
|
130,358
|
|
19,229
|
|
|
87,287
|
|
198,105
|
|
29,222
|
Depreciation and
amortization
|
2,309
|
|
4,176
|
|
4,923
|
|
726
|
|
|
4,239
|
|
9,099
|
|
1,342
|
Share-based
compensation
|
-
|
|
1,622
|
|
1,455
|
|
215
|
|
|
-
|
|
3,077
|
|
454
|
Adjusted
EBITDA
|
264,962
|
|
400,297
|
|
378,434
|
|
55,822
|
|
|
471,575
|
|
778,731
|
|
114,868
|
Delinquency
Rates
|
|
|
Delinquent
for
|
|
|
15-29
days
|
|
30-59
days
|
|
60-89
days
|
All
Loans
|
|
|
|
|
|
|
December 31,
2013
|
|
0.2%
|
|
0.4%
|
|
0.3%
|
December 31,
2014
|
|
0.3%
|
|
0.2%
|
|
0.2%
|
December 31,
2015
|
|
0.4%
|
|
0.5%
|
|
0.4%
|
December 31,
2016
|
|
0.4%
|
|
0.7%
|
|
0.6%
|
March 31,
2017
|
|
0.4%
|
|
0.8%
|
|
0.6%
|
June 30,
2017
|
|
0.4%
|
|
0.7%
|
|
0.5%
|
|
|
|
|
|
|
|
Online
Channels
|
|
|
|
|
|
|
December 31,
2013
|
|
0.1%
|
|
0.9%
|
|
0.3%
|
December 31,
2014
|
|
0.4%
|
|
0.3%
|
|
0.2%
|
December 31,
2015
|
|
0.6%
|
|
0.8%
|
|
0.6%
|
December 31,
2016
|
|
0.6%
|
|
1.0%
|
|
0.8%
|
March 31,
2017
|
|
0.5%
|
|
1.0%
|
|
0.8%
|
June 30,
2017
|
|
0.5%
|
|
0.8%
|
|
0.7%
|
|
|
|
|
|
|
|
Offline
Channels
|
|
|
|
|
|
|
December 31,
2013
|
|
0.3%
|
|
0.2%
|
|
0.2%
|
December 31,
2014
|
|
0.3%
|
|
0.2%
|
|
0.2%
|
December 31,
2015
|
|
0.3%
|
|
0.4%
|
|
0.3%
|
December 31,
2016
|
|
0.4%
|
|
0.6%
|
|
0.4%
|
March 31,
2017
|
|
0.4%
|
|
0.6%
|
|
0.5%
|
June 30,
2017
|
|
0.4%
|
|
0.6%
|
|
0.5%
|
Net Charge-Off
Rate for Previous Risk Grid
|
Loan issued
period
|
|
Loan
grade
|
|
Amount of loans
facilitated
during the period
|
|
Accumulated M3+
Net Charge-
Off as of June 30, 2017
|
|
Total Net
Charge-Off Rate
as of June 30, 2017
|
|
|
|
|
(in RMB
thousands)
|
|
(in RMB
thousands)
|
|
|
2014
|
|
A
|
|
1,917,542
|
|
92,771
|
|
4.8%
|
|
|
B
|
|
303,030
|
|
20,560
|
|
6.8%
|
|
|
C
|
|
-
|
|
-
|
|
-
|
|
|
D
|
|
7,989
|
|
528
|
|
6.6%
|
|
|
Total
|
|
2,228,561
|
|
113,859
|
|
5.1%
|
2015
|
|
A
|
|
873,995
|
|
49,517
|
|
5.7%
|
|
|
B
|
|
419,630
|
|
31,969
|
|
7.6%
|
|
|
C
|
|
557,414
|
|
56,467
|
|
10.1%
|
|
|
D
|
|
7,706,575
|
|
654,607
|
|
8.5%
|
|
|
Total
|
|
9,557,614
|
|
792,560
|
|
8.3%
|
2016
|
|
A
|
|
1,109,094
|
|
13,852
|
|
1.2%
|
|
|
B
|
|
745,508
|
|
19,720
|
|
2.6%
|
|
|
C
|
|
1,398,721
|
|
55,690
|
|
4.0%
|
|
|
D
|
|
16,919,079
|
|
587,640
|
|
3.5%
|
|
|
Total
|
|
20,172,402
|
|
676,902
|
|
3.4%
|
1H
2017
|
|
A
|
|
428,742
|
|
86
|
|
0.0%
|
|
|
B
|
|
1,005,640
|
|
976
|
|
0.1%
|
|
|
C
|
|
1,548,768
|
|
1,312
|
|
0.1%
|
|
|
D
|
|
12,129,117
|
|
14,804
|
|
0.1%
|
|
|
Total
|
|
15,112,267
|
|
17,178
|
|
0.1%
|
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, 2017
|
|
Total Net
Charge-Off Rate
as of June 30, 2017
|
|
|
|
|
(in RMB
thousands)
|
|
(in RMB
thousands)
|
|
|
2014
|
|
I
|
|
-
|
|
-
|
|
-
|
|
|
II
|
|
1,921,372
|
|
92,771
|
|
4.8%
|
|
|
III
|
|
303,276
|
|
20,560
|
|
6.8%
|
|
|
IV
|
|
-
|
|
-
|
|
-
|
|
|
V
|
|
3,913
|
|
528
|
|
13.5%
|
|
|
Total
|
|
2,228,561
|
|
113,859
|
|
5.1%
|
2015
|
|
I
|
|
146,490
|
|
3,285
|
|
2.2%
|
|
|
II
|
|
1,614,354
|
|
70,286
|
|
4.4%
|
|
|
III
|
|
2,521,705
|
|
175,454
|
|
7.0%
|
|
|
IV
|
|
2,506,107
|
|
209,658
|
|
8.4%
|
|
|
V
|
|
2,768,957
|
|
333,877
|
|
12.1%
|
|
|
Total
|
|
9,557,613
|
|
792,560
|
|
8.3%
|
2016
|
|
I
|
|
445,515
|
|
3,705
|
|
0.8%
|
|
|
II
|
|
3,011,304
|
|
41,257
|
|
1.4%
|
|
|
III
|
|
3,757,434
|
|
80,212
|
|
2.1%
|
|
|
IV
|
|
5,178,402
|
|
149,417
|
|
2.9%
|
|
|
V
|
|
7,779,747
|
|
402,311
|
|
5.2%
|
|
|
Total
|
|
20,172,402
|
|
676,902
|
|
3.4%
|
1H
2017
|
|
I
|
|
707,851
|
|
39
|
|
0.0%
|
|
|
II
|
|
2,690,524
|
|
485
|
|
0.0%
|
|
|
III
|
|
3,295,540
|
|
1,267
|
|
0.0%
|
|
|
IV
|
|
3,352,051
|
|
1,778
|
|
0.1%
|
|
|
V
|
|
5,066,301
|
|
13,608
|
|
0.3%
|
|
|
Total
|
|
15,112,267
|
|
17,178
|
|
0.1%
|
M3+ Net Charge-Off
Rate
|
Loan issued
period
|
|
Month on
Book
|
|
|
4
|
7
|
10
|
13
|
16
|
19
|
22
|
25
|
28
|
31
|
34
|
2013Q1
|
|
1.9%
|
3.2%
|
3.1%
|
2.3%
|
2.0%
|
0.9%
|
0.5%
|
0.5%
|
0.4%
|
0.4%
|
0.4%
|
2013Q2
|
|
1.8%
|
3.6%
|
4.5%
|
5.9%
|
6.4%
|
7.4%
|
6.1%
|
7.0%
|
7.5%
|
7.5%
|
7.8%
|
2013Q3
|
|
0.5%
|
2.8%
|
4.2%
|
5.5%
|
6.1%
|
6.5%
|
7.1%
|
7.1%
|
7.0%
|
6.9%
|
6.9%
|
2013Q4
|
|
0.7%
|
3.4%
|
4.8%
|
6.2%
|
6.8%
|
7.5%
|
8.3%
|
8.3%
|
8.2%
|
8.5%
|
8.3%
|
2014Q1
|
|
1.0%
|
4.2%
|
6.1%
|
7.0%
|
8.4%
|
9.3%
|
9.8%
|
9.7%
|
9.9%
|
9.8%
|
9.5%
|
2014Q2
|
|
0.5%
|
1.8%
|
2.6%
|
3.8%
|
4.3%
|
4.6%
|
4.6%
|
4.7%
|
4.7%
|
4.7%
|
4.8%
|
2014Q3
|
|
0.2%
|
0.8%
|
2.0%
|
2.8%
|
3.3%
|
3.7%
|
4.0%
|
4.2%
|
4.2%
|
4.1%
|
4.1%
|
2014Q4
|
|
0.3%
|
1.5%
|
2.7%
|
3.5%
|
4.1%
|
4.6%
|
5.1%
|
5.2%
|
5.2%
|
5.3%
|
|
2015Q1
|
|
0.6%
|
2.7%
|
4.4%
|
5.8%
|
7.1%
|
8.2%
|
9.1%
|
9.6%
|
9.9%
|
|
|
2015Q2
|
|
0.5%
|
2.1%
|
3.7%
|
5.3%
|
6.6%
|
7.7%
|
8.6%
|
9.1%
|
|
|
|
2015Q3
|
|
0.2%
|
1.6%
|
3.4%
|
4.9%
|
6.4%
|
7.4%
|
8.1%
|
|
|
|
|
2015Q4
|
|
0.2%
|
1.6%
|
3.2%
|
4.9%
|
6.2%
|
7.2%
|
|
|
|
|
|
2016Q1
|
|
0.2%
|
1.3%
|
2.9%
|
4.3%
|
5.4%
|
|
|
|
|
|
|
2016Q2
|
|
0.2%
|
1.7%
|
3.4%
|
4.9%
|
|
|
|
|
|
|
|
2016Q3
|
|
0.1%
|
1.5%
|
3.2%
|
|
|
|
|
|
|
|
|
2016Q4
|
|
0.2%
|
1.5%
|
|
|
|
|
|
|
|
|
|
2017Q1
|
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Yirendai Ltd.