BEIJING, Nov. 14, 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 September 30, 2017.
|
For Three Months
Ended
|
in RMB
million
|
September
30, 2017
|
June
30, 2017
|
September
30, 2016
|
QoQ
Change
|
YoY
Change
|
Amount of Loans
Facilitated
|
12,185.4
|
8,536.1
|
5,617.5
|
43%
|
117%
|
Total Net
Revenue
|
1,513.9
|
1,183.1
|
876.7
|
28%
|
73%
|
Total Fees Billed
(non-GAAP)
|
2,475.3
|
1,862.5
|
1,322.6
|
33%
|
87%
|
Net Income
|
303.0
|
269.1
|
344.3
|
13%
|
-12%
|
Adjusted
EBITDA(1) (non-GAAP)
|
422.4
|
378.4
|
220.7
|
12%
|
91%
|
Adjusted Net Income
(2) (non-GAAP)
|
303.0
|
269.1
|
192.6
|
13%
|
57%
|
In the third quarter of 2017, Yirendai facilitated RMB 12,185.4 million (US$1,831.5 million) of loans to 192,725 qualified
individual borrowers through its online marketplace, representing a
year-over-year growth of 117%; 75.7% of the borrowers were acquired
from online channels; 57.2% of the loan volume was originated from
online channels and nearly 100% of the online volume was
facilitated through mobile.
In the third quarter of 2017, Yirendai facilitated 214,967
investors with total investment amount of RMB 13,510.0 million (US$2,030.6 million), 100% of which was
facilitated through its online platform and 92% of which was
facilitated through its mobile application.
For the third quarter of 2017, total net revenue was
RMB 1,513.9 million (US$227.5 million), an increase of 28% from the
previous quarter and 73% year-over-year; net income was
RMB 303.0 million (US$45.5 million), and increase of 13% from the
previous quarter and a decrease of 12% year-over-year. The decrease
of net income is mainly because that, in the third quarter of 2016,
the Company recognized a tax credit of RMB
151.7 million because one of its subsidiaries became
qualified as a software enterprise which makes it eligible for an
exemption of enterprise income tax for 2015 and 2016. Excluding the
impact of the tax credit, adjusted net income in the third quarter
of 2016 was RMB 192.6
million.
"We are pleased to deliver another strong quarter as our loan
origination continued to grow rapidly, especially driven by online
business," commented Ms. Yihan Fang,
Chief Executive Officer of Yirendai. "In addition, we have seen
smooth yet accelerating progress of our online wealth management
and new platform businesses. We will continue to focus on
technological innovations, product development and customer service
to drive the robust momentum of our online operations. In addition,
we will continue to invest heavily in our technology platform, data
analytics, machine learning and AI capabilities to drive our
business growth."
"Our strong financial results in this quarter was primarily
driven by the continued strong demand of our differentiated product
offerings from our customers, enabled by our enhanced online
customer acquisition and service capabilities," commented Mr.
Dennis Cong, Chief Financial Officer
of Yirendai. "We will continue to focus on driving strong growth
with long-term profitability in our core product and service
offerings, and expect to see strong momentum in our wealth
management and platform business."
Third quarter 2017 Financial Results
Total amount of loans facilitated in the third quarter of
2017 was RMB 12,185.4 million
(US$1,831.5 million), increased by
117% year-over-year from RMB 5,617.5
million in the same period last year, reflecting strong
demand for our products and services, especially from customers
acquired from online channels. As of September 30, 2017, the Yirendai platform had
facilitated approximately RMB 60.5
billion (US$9.1 billion) in
loan principal since its inception.
Starting from the third quarter of 2017, Yirendai changed its
calculation method for an operational metric - the amount of loans
facilitated. In October 2016, the
Company launched a new program named "Top-up Program" whereby we
facilitate a new loan for a qualified borrower to replace his or
her existing loan on our platform. Previously, only the top-up
amount, i.e. the portion of the new loan exceeding the outstanding
balance of the existing loan, is included in the amount of loans
facilitated presented. To follow the industry's general practice,
under the new calculation method, the total contractual amount of
the new loan will be included in the amount of loans facilitated.
The Company believes this change of calculation method will better
align its operational metrics with the industry and better reflect
its risk performance. Prior period numbers have been restated to
reflect the change.
Total net revenue in the third quarter of 2017 was
RMB 1,513.9 million (US$227.5 million), increased by 73% from
RMB 876.7 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 third quarter of 2017
were RMB 2,475.3 million
(US$372.0 million), increased by 87%
from RMB 1,322.6 million in the same
period last year, driven by the growth of loan origination volume.
Upfront fees billed to borrowers in the third quarter of
2017 were RMB 2,046.7 million
(US$307.6 million), increased by 72%
from RMB 1,192.4 million in the same
period last year. Monthly fees billed to borrowers in the
third quarter of 2017 were RMB 292.2
million (US$43.9 million),
increased by 176% from RMB 105.8
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 third quarter of 2017 were
RMB 272.0 million (US$40.9 million), increased by 145% from
RMB 110.9 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 AUM.
Sales and marketing expenses in the third quarter of 2017
were RMB 844.2 million (US$126.9 million), increased by 37% from
RMB 617.9 million in the previous
quarter and compared to RMB 423.0
million in the same period last year. Sales and marketing
expenses in the third quarter of 2017 accounted for 6.9% of amount
of loans facilitated, decreased from 7.2% in the previous quarter
and 7.5% in the same period last year. Sales and marketing expenses
as a percentage of amount of loans facilitated decreased due to
increased customer acquisition efficiencies as well as an increase
in the amount of loans facilitated from repeat borrowers
Origination and servicing costs in the third quarter of
2017 were RMB 119.0 million
(US$17.9 million), compared to
RMB 93.1 million in the previous
quarter and RMB 47.5 million in the
same period last year. Origination and servicing costs in the third
quarter of 2017 accounted for 1.0% of amount of loans facilitated,
decreased from 1.1% in the previous quarter and increased from 0.8%
in the same period last year.
General and administrative expenses in the third quarter
of 2017 were RMB 172.6 million
(US$25.9 million), compared to
RMB 98.6 million in the previous
quarter and RMB 189.0 million in the
same period last year. General and administrative expenses in the
third quarter of 2017 accounted for 11.4% of total net revenue,
compared to 8.3% in the previous quarter and 21.6% in the same
period last year. The increase in general and administrative
expenses as percentage of total net revenue was primarily
attributable to share-based compensation expenses of RMB 60.1 million (USD$9.0 million) in this quarter.
Income tax expense in the third quarter of 2017 was
RMB 85.7 million (US$12.9 million). Since the first quarter of
2017, Yi Ren Heng Ye Technology Development (Beijing) Co., Ltd., a subsidiary of the
Company, enjoyed a favorable enterprise income tax rate of 12.5% as
a software enterprise which qualification was confirmed by local
tax bureau in the third quarter of 2016. This makes it eligible for
an exemption of enterprise income tax for 2015 and 2016 and a
favorable enterprise income tax rate of 12.5% for 2017, 2018 and
2019.
Net income in the third quarter of 2017 was RMB 303.0 million (US$45.5
million), increased by 13% from RMB
269.1 million in the previous quarter and decreased by 12%
from RMB 344.3 million for the same
period last year.
Adjusted EBITDA (non-GAAP) in the third quarter of 2017
was RMB 422.4 million (US$63.5 million), increased by 12% from
RMB 378.4 million in the previous
quarter and increased by 91% from RMB 220.7
million in the same period last year. Adjusted EBITDA
margin1 (non-GAAP) in
the third quarter of 2017 was 27.9%, compared to 32.0% in the
previous quarter and 25.2% in the same period last year.
Adjusted net income (non-GAAP) in the third quarter
of 2017 was RMB 303.0 million
(US$45.5 million), increased by 13%
from RMB 269.1 million in the
previous quarter and increased by 57% from RMB 192.6 million for the same period last year.
In the third quarter of 2016, the Company recognized a tax credit
of RMB 151.7 million because one of
its subsidiaries became qualified as a software enterprise which
makes it eligible for an exemption of enterprise income tax for
2015 and 2016. Excluding the impact of the tax credit, adjusted net
income in the third quarter of 2016 was RMB
192.6 million.
Basic income per ADS in the third quarter of 2017 was
RMB 5.00 (US$0.75), compared to RMB
4.50 in the previous quarter and RMB
5.76 in the same period last year.
Diluted income per ADS in the
third quarter of 2017 was RMB 4.91
(US$0.74), compared to RMB 4.45 in the previous quarter and RMB 5.70 in the same period last year.
Net cash generated from operating activities in the third
quarter of 2017 was RMB 346.3 million
(US$52.1 million), compared to
RMB 530.4 million in the previous
quarter and RMB 450.6 million in the
same period last year.
As of September 30, 2017, cash
and cash equivalents was RMB 1,403.5
million (US$ 211.0 million),
compared to RMB 891.2 million as of
June 30, 2017. As of September 30, 2017, balance of held-to-maturity
investments was RMB 168.9 million
(US$25.4 million), compared to
RMB 589.3 million as of June 30, 2017. As of September 30, 2017, balance of available-for-sale
investments was RMB 996.7 million
(US$149.8 million), compared to
RMB 1,262.3 million as of
June 30, 2017. The decrease in
the total balance of cash and cash equivalents, held-to-maturity
and available-for-sale investments was mainly attributable to the
need for increased operating cash to fund our accelerating business
growth this quarter.
Quality Assurance Program and Guarantee. In the third
quarter of 2017, Yirendai accrued liabilities from quality
assurance program of RMB 889.7
million (US$133.7 million),
which is equal to 8% of the loans facilitated through its
marketplace covered by the quality assurance program during the
period. For top-up loans, the Company only accrues 8% of the top-up
amount, ie. the portion of the new loan exceeding the outstanding
balance of the existing loan. During the quarter, the Company
released liabilities of RMB 464.7
million (US$ 69.8 million) to
pay out the outstanding principal and accrued interest of default
loans. As of September 30, 2017,
liabilities from quality assurance program and guarantee were
RMB 2,392.8 million (US$359.6 million).
Delinquency rates. As of September
30, 2017, the delinquency rates for loans that are past due
for 15-29 days, 30-59 days and 60-89 days were 0.5%, 0.7% and 0.6%,
compared to 0.4%, 0.7% and 0.5%, as of June
30, 2017.
Cumulative M3+ net charge-off rates. As of
September 30, 2017, the cumulative
M3+ net charge-off rate for loans originated in 2015 was 8.8%,
compared to 8.3% as of June 30, 2017.
As of September 30, 2017, the
cumulative M3+ net charge-off rate for loans originated in 2016 was
4.6%, compared to 3.4% as of June 30,
2017. As the 2015 and 2016 vintage loans continue to mature,
the charge off level is consistent with our risk performance
expectation.
Other Operating Metrics and Business Results
- As of September 30, 2017,
remaining principal of performing loans totaled RMB 34.2 billion (US$5.1
billion), increased by 23% from RMB
27.9 billion as of June 30,
2017 and 101% from RMB 17.0
billion as of September 30,
2016.
- In the third quarter of 2017, Grade A,
B, C and D loans represented 1.7%, 8.7%, 14.1%, and 75.5% and Grade
I, II, III, IV and V loans represented 6.5%, 24.6%, 27.6%, 25.8%
and 15.5% of the Company's product portfolio,
respectively.
Other Developments
Cooperation with Zhejiang Chouzhou Commercial Bank
During the third quarter of 2017, Yirendai officially started
cooperating with Zhejiang Chouzhou Commercial Bank to provide
financing services to individual consumers, leveraging the
Company's online lending and risk management capabilities. The
cooperation has a one-year term and commenced in August 2017. Over the one-year term, Yirendai and
CreditEase will have access to a RMB 3
billion line-of-credit. The line-of-credit represents an
additional source of funding for Yirendai and CreditEase's lending
business.
Management Transition
In the third quarter of 2017, Ms. Yiting
Pan completed her transition from her position as Yirendai's
Chief Risk Officer into a new management role with CreditEase
Offshore Private Credit Fund in the U.S. Dr. Yichuan Pei,
Yirendai's Chief Credit Officer appointed in March 2017, officially assumed the role of the
Company's Chief Risk Officer position and took over full
responsibilities of risk management. Dr. Pei joined Yirendai from
Ping An Bank where he served as Vice
General Manager. Dr. Pei brings with him over 26 years of
experience in the financial industry from consumer lending risk
management, credit product marketing management, and asset-backed
securities valuation in the United
States.
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.
Full Year 2017
- Total loans facilitated will be in the range of RMB
40,000 million to RMB 40,500 million.
- Total net revenue will be in the range of RMB 5,200 million to RMB 5,300 million.
- Adjusted EBITDA (non-GAAP) will be in the range of
RMB 1,600 million to RMB 1,620
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, adjusted EBITDA
margin and adjusted net income 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 6.6533 to
US$1.00, the effective noon buying rate on September 29,
2017 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 7:00 p.m. Eastern Time on November 14, 2017, (or
8:00 a.m. Beijing/Hong Kong Time on November 15,
2017).
Dial-in details for the earnings conference call are as
follows:
International:
|
+65
6713-5091
|
U.S. Toll
Free:
|
+1
866-519-4004
|
Hong Kong Toll
Free:
|
800-906-601
|
China Toll
Free:
|
400-620-8038
|
Conference
ID:
|
9696809
|
A replay of the conference call may be accessed by phone at the
following numbers until November 22, 2017:
International:
|
+61
2-8199-0299
|
U.S. Toll
Free:
|
+1
646-254-3697
|
Replay Access
Code:
|
9696809
|
A live and archived webcast of the conference call will be
available on Yirendai's website
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
1 Adjusted EBITDA
margin is a non-GAAP financial measure calculated as adjusted
EBITDA divided by total net revenue.
|
2 Adjusted net
income is a non-GAAP financial measure calculated as net income
less non-recurring items.
|
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 Nine
Months Ended
|
|
September
30, 2016
|
|
June 30,
2017
|
|
September
30, 2017
|
|
September
30, 2017
|
|
|
September
30, 2016
|
|
September
30, 2017
|
|
September
30, 2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan facilitation
services
|
848,322
|
|
1,121,200
|
|
1,425,162
|
|
214,204
|
|
|
2,096,793
|
|
3,522,760
|
|
529,476
|
Post-origination
services
|
23,487
|
|
41,389
|
|
49,951
|
|
7,508
|
|
|
59,115
|
|
124,652
|
|
18,735
|
Others
|
4,902
|
|
20,468
|
|
38,791
|
|
5,830
|
|
|
10,973
|
|
71,148
|
|
10,694
|
Total net
revenue
|
876,711
|
|
1,183,057
|
|
1,513,904
|
|
227,542
|
|
|
2,166,881
|
|
3,718,560
|
|
558,905
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
423,003
|
|
617,880
|
|
844,165
|
|
126,879
|
|
|
1,033,085
|
|
1,931,425
|
|
290,296
|
Origination and
servicing
|
47,514
|
|
93,147
|
|
119,036
|
|
17,891
|
|
|
123,408
|
|
270,967
|
|
40,727
|
General and
administrative
|
107,698
|
|
98,614
|
|
172,643
|
|
25,949
|
|
|
322,397
|
|
371,755
|
|
55,875
|
Total operating costs
and expenses
|
659,478
|
|
809,641
|
|
1,135,844
|
|
170,719
|
|
|
1,478,890
|
|
2,574,147
|
|
386,898
|
Interest
income
|
9,778
|
|
27,398
|
|
33,250
|
|
4,998
|
|
|
22,065
|
|
84,797
|
|
12,745
|
Fair value
adjustments related to Consolidated ABFE
|
(14,935)
|
|
(1,915)
|
|
(22,762)
|
|
(3,421)
|
|
|
(18,448)
|
|
(23,322)
|
|
(3,505)
|
Non-operating income,
net
|
259
|
|
555
|
|
158
|
|
23
|
|
|
350
|
|
920
|
|
138
|
Income before
provision for income taxes
|
212,335
|
|
399,454
|
|
388,706
|
|
58,423
|
|
|
691,958
|
|
1,206,808
|
|
181,385
|
Income tax
expense/(benefit)
|
(131,946)
|
|
130,358
|
|
85,732
|
|
12,886
|
|
|
(44,659)
|
|
283,837
|
|
42,661
|
Net income
|
344,281
|
|
269,096
|
|
302,974
|
|
45,537
|
|
|
736,617
|
|
922,971
|
|
138,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares
outstanding, basic
|
119,441,029
|
|
119,603,286
|
|
121,249,448
|
|
121,249,448
|
|
|
117,819,616
|
|
120,167,235
|
|
120,167,235
|
Basic income per
share
|
2.8824
|
|
2.2499
|
|
2.4988
|
|
0.3756
|
|
|
6.2521
|
|
7.6807
|
|
1.1544
|
Basic income per
ADS
|
5.7648
|
|
4.4998
|
|
4.9976
|
|
0.7512
|
|
|
12.5042
|
|
15.3614
|
|
2.3088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares
outstanding, diluted
|
120,861,971
|
|
120,833,406
|
|
123,509,834
|
|
123,509,834
|
|
|
118,293,263
|
|
121,757,910
|
|
121,757,910
|
Diluted income per
share
|
2.8485
|
|
2.2270
|
|
2.4530
|
|
0.3687
|
|
|
6.2270
|
|
7.5804
|
|
1.1393
|
Diluted income per
ADS
|
5.6970
|
|
4.4540
|
|
4.9060
|
|
0.7374
|
|
|
12.4540
|
|
15.1608
|
|
2.2786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
Condensed Consolidated Cash Flow Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash generated
from operating activities
|
450,583
|
|
530,371
|
|
346,329
|
|
52,054
|
|
|
1,277,380
|
|
1,441,204
|
|
216,615
|
Net cash provided
by/(used in) investing activities
|
(679,486)
|
|
(95,702)
|
|
342,289
|
|
51,446
|
|
|
(613,919)
|
|
(181,099)
|
|
(27,220)
|
Net cash used in
financing activities
|
179,221
|
|
(94,993)
|
|
(127,864)
|
|
(19,218)
|
|
|
74,898
|
|
(267,698)
|
|
(40,235)
|
Effect of foreign
exchange rate changes
|
1,323
|
|
(6,463)
|
|
(14,885)
|
|
(2,237)
|
|
|
12,163
|
|
(25,127)
|
|
(3,777)
|
Net increase in cash,
cash equivalents and restricted
cash
|
(48,359)
|
|
333,213
|
|
545,869
|
|
82,045
|
|
|
750,522
|
|
967,280
|
|
145,383
|
Cash, cash
equivalents and restricted cash, beginning
of period
|
2,128,966
|
|
2,274,709
|
|
2,607,922
|
|
391,974
|
|
|
1,330,085
|
|
2,186,511
|
|
328,636
|
Cash, cash
equivalents and restricted cash, end of
period
|
2,080,607
|
|
2,607,922
|
|
3,153,791
|
|
474,019
|
|
|
2,080,607
|
|
3,153,791
|
|
474,019
|
Unaudited
Condensed Consolidated Balance Sheet
|
(in
thousands, except for share, per share and per ADS data, and
percentages)
|
|
As
of
|
|
September 30,
2016
|
|
June 30,
2017
|
|
September 30,
2017
|
|
September 30,
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
1,106,262
|
|
891,154
|
|
1,403,529
|
|
210,952
|
Restricted
cash
|
974,345
|
|
1,716,768
|
|
1,750,262
|
|
263,067
|
Accounts
receivable
|
37,378
|
|
18,109
|
|
24,050
|
|
3,614
|
Prepaid
expenses and other assets
|
534,041
|
|
618,076
|
|
1,136,993
|
|
170,892
|
Loans at
fair value
|
367,949
|
|
269,952
|
|
558,178
|
|
83,895
|
Amounts
due from related parties
|
143,436
|
|
4,252
|
|
176,867
|
|
26,583
|
Held-to-maturity investments
|
172,500
|
|
589,329
|
|
168,917
|
|
25,389
|
Available-for-sale investments
|
298,000
|
|
1,262,260
|
|
996,660
|
|
149,799
|
Property,
equipment and software, net
|
29,950
|
|
59,838
|
|
81,515
|
|
12,252
|
Deferred
tax assets
|
367,141
|
|
559,794
|
|
685,875
|
|
103,088
|
Total
assets
|
4,031,002
|
|
5,989,532
|
|
6,982,846
|
|
1,049,531
|
Accounts
payable
|
7,408
|
|
15,153
|
|
22,634
|
|
3,402
|
Amounts
due to related parties
|
14,137
|
|
45,425
|
|
23,153
|
|
3,480
|
Liabilities from quality assurance program and guarantee
|
1,238,689
|
|
1,961,315
|
|
2,392,794
|
|
359,640
|
Deferred
revenue
|
151,666
|
|
173,386
|
|
194,646
|
|
29,256
|
Payable to
investors at fair value
|
355,340
|
|
200,947
|
|
145,200
|
|
21,824
|
Accrued
expenses and other liabilities
|
522,696
|
|
780,555
|
|
1,704,207
|
|
256,145
|
Deferred
tax liability
|
-
|
|
60,000
|
|
4,545
|
|
683
|
Total
liabilities
|
2,289,936
|
|
3,236,781
|
|
4,487,179
|
|
674,430
|
Ordinary
shares
|
75
|
|
75
|
|
76
|
|
11
|
Additional
paid-in capital
|
922,404
|
|
950,151
|
|
1,094,916
|
|
164,567
|
Accumulated other comprehensive income
|
12,264
|
|
19,216
|
|
4,330
|
|
651
|
Retained
earnings
|
806,323
|
|
1,783,309
|
|
1,396,345
|
|
209,872
|
Total
equity
|
1,741,066
|
|
2,752,751
|
|
2,495,667
|
|
375,101
|
Total liabilities and
equity
|
4,031,002
|
|
5,989,532
|
|
6,982,846
|
|
1,049,531
|
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 Nine
Months Ended
|
|
September
30, 2016
|
|
June 30,
2017
|
|
September
30, 2017
|
|
September
30, 2017
|
|
|
September
30, 2016
|
|
September
30, 2017
|
|
September
30, 2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
RMB
|
|
RMB
|
|
USD
|
Operating
Highlights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of loans
facilitated
|
5,617,485
|
|
8,536,087
|
|
12,185,367
|
|
1,831,477
|
|
|
13,602,688
|
|
27,967,538
|
|
4,203,559
|
Loans
generated from online channels
|
2,275,473
|
|
4,271,610
|
|
6,972,156
|
|
1,047,924
|
|
|
5,282,933
|
|
14,833,895
|
|
2,229,555
|
Loans
generated from offline channels
|
3,342,012
|
|
4,264,477
|
|
5,213,211
|
|
783,553
|
|
|
8,319,755
|
|
13,133,643
|
|
1,974,004
|
Fees
billed
|
1,322,598
|
|
1,862,467
|
|
2,475,271
|
|
372,037
|
|
|
3,280,861
|
|
5,921,275
|
|
889,976
|
Remaining principal
of performing loans
|
17,028,346
|
|
27,871,922
|
|
34,235,727
|
|
5,145,676
|
|
|
17,028,346
|
|
34,235,727
|
|
5,145,676
|
Remaining principal
of performing loans
covered by quality assurance program and
guarantee
|
16,204,583
|
|
27,502,314
|
|
33,622,142
|
|
5,053,454
|
|
|
16,204,583
|
|
33,622,142
|
|
5,053,454
|
Number of
borrowers
|
92,479
|
|
138,529
|
|
192,725
|
|
192,725
|
|
|
211,458
|
|
455,507
|
|
455,507
|
Borrowers
from online channels
|
54,585
|
|
98,245
|
|
145,838
|
|
145,838
|
|
|
122,221
|
|
329,736
|
|
329,736
|
Borrowers
from offline channels
|
37,894
|
|
40,284
|
|
46,887
|
|
46,887
|
|
|
89,237
|
|
125,771
|
|
125,771
|
Number of
investors
|
177,499
|
|
199,591
|
|
214,967
|
|
214,967
|
|
|
478,653
|
|
455,251
|
|
455,251
|
Investors
from online channels
|
177,499
|
|
199,591
|
|
214,967
|
|
214,967
|
|
|
478,653
|
|
455,251
|
|
455,251
|
Investors
from offline channels
|
-
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
-
|
Adjusted
EBITDA
|
220,716
|
|
378,434
|
|
422,413
|
|
63,489
|
|
|
692,291
|
|
1,201,144
|
|
180,533
|
Adjusted EBITDA
margin
|
25.2%
|
|
32.0%
|
|
27.9%
|
|
27.9%
|
|
|
31.9%
|
|
32.3%
|
|
32.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees
billed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction fees billed to borrowers
|
1,298,247
|
|
1,753,192
|
|
2,338,933
|
|
351,545
|
|
|
3,230,892
|
|
5,599,879
|
|
841,669
|
Upfront fees billed to borrowers
|
1,192,449
|
|
1,537,969
|
|
2,046,742
|
|
307,628
|
|
|
2,982,135
|
|
4,919,399
|
|
739,392
|
Monthly fees billed to borrowers
|
105,798
|
|
215,223
|
|
292,191
|
|
43,917
|
|
|
248,757
|
|
680,480
|
|
102,277
|
Service
fees billed to investors
|
110,943
|
|
222,845
|
|
271,961
|
|
40,876
|
|
|
263,563
|
|
671,938
|
|
100,993
|
Others
|
5,196
|
|
21,697
|
|
41,118
|
|
6,180
|
|
|
11,631
|
|
75,417
|
|
11,335
|
Value-added tax
|
(91,788)
|
|
(135,267)
|
|
(176,741)
|
|
(26,564)
|
|
|
(225,225)
|
|
(425,959)
|
|
(64,021)
|
Total fees
billed
|
1,322,598
|
|
1,862,467
|
|
2,475,271
|
|
372,037
|
|
|
3,280,861
|
|
5,921,275
|
|
889,976
|
Stand-ready liabilities associated with
quality assurance
program
|
(430,569)
|
|
(655,167)
|
|
(896,155)
|
|
(134,694)
|
|
|
(1,069,386)
|
|
(2,105,138)
|
|
(316,405)
|
Deferred
revenue
|
(16,553)
|
|
(10,297)
|
|
(26,040)
|
|
(3,914)
|
|
|
(52,776)
|
|
(45,999)
|
|
(6,914)
|
Cash
incentives
|
(24,074)
|
|
(51,614)
|
|
(91,371)
|
|
(13,733)
|
|
|
(55,337)
|
|
(173,340)
|
|
(26,053)
|
Value-added tax
|
25,309
|
|
37,668
|
|
52,199
|
|
7,846
|
|
|
63,519
|
|
121,762
|
|
18,301
|
Net
revenues
|
876,711
|
|
1,183,057
|
|
1,513,904
|
|
227,542
|
|
|
2,166,881
|
|
3,718,560
|
|
558,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
344,281
|
|
269,096
|
|
302,974
|
|
45,537
|
|
|
736,617
|
|
922,971
|
|
138,724
|
Interest
income
|
(9,778)
|
|
(27,398)
|
|
(33,250)
|
|
(4,998)
|
|
|
(22,065)
|
|
(84,797)
|
|
(12,745)
|
Income tax
expense
|
(131,946)
|
|
130,358
|
|
85,732
|
|
12,886
|
|
|
(44,659)
|
|
283,837
|
|
42,661
|
Depreciation and
amortization
|
2,816
|
|
4,923
|
|
6,892
|
|
1,036
|
|
|
7,055
|
|
15,991
|
|
2,403
|
Share-based
compensation
|
15,343
|
|
1,455
|
|
60,065
|
|
9,028
|
|
|
15,343
|
|
63,142
|
|
9,490
|
Adjusted
EBITDA
|
220,716
|
|
378,434
|
|
422,413
|
|
63,489
|
|
|
692,291
|
|
1,201,144
|
|
180,533
|
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%
|
September 30,
2017
|
|
0.5%
|
|
0.7%
|
|
0.6%
|
|
|
|
|
|
|
|
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%
|
September 30,
2017
|
|
0.6%
|
|
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%
|
Sep 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
September 30, 2017
|
|
Total Net
Charge-Off
Rate as of September 30,
2017
|
|
|
|
|
(in RMB
thousands)
|
|
(in RMB
thousands)
|
|
|
2014
|
|
A
|
|
1,917,542
|
|
90,940
|
|
4.7%
|
|
|
B
|
|
303,030
|
|
20,541
|
|
6.8%
|
|
|
C
|
|
-
|
|
-
|
|
-
|
|
|
D
|
|
7,989
|
|
528
|
|
6.6%
|
|
|
Total
|
|
2,228,561
|
|
112,009
|
|
5.0%
|
2015
|
|
A
|
|
873,995
|
|
49,849
|
|
5.7%
|
|
|
B
|
|
419,630
|
|
33,087
|
|
7.9%
|
|
|
C
|
|
557,414
|
|
59,028
|
|
10.6%
|
|
|
D
|
|
7,706,574
|
|
701,425
|
|
9.1%
|
|
|
Total
|
|
9,557,613
|
|
843,389
|
|
8.8%
|
2016
|
|
A
|
|
1,141,835
|
|
19,360
|
|
1.7%
|
|
|
B
|
|
749,868
|
|
27,287
|
|
3.6%
|
|
|
C
|
|
1,403,553
|
|
74,550
|
|
5.3%
|
|
|
D
|
|
17,085,347
|
|
823,171
|
|
4.8%
|
|
|
Total
|
|
20,380,603
|
|
944,368
|
|
4.6%
|
Q1-Q3
2017
|
|
A
|
|
701,456
|
|
1,169
|
|
0.2%
|
|
|
B
|
|
2,092,715
|
|
4,109
|
|
0.2%
|
|
|
C
|
|
3,289,508
|
|
8,155
|
|
0.2%
|
|
|
D
|
|
21,883,860
|
|
111,998
|
|
0.5%
|
|
|
Total
|
|
27,967,538
|
|
125,431
|
|
0.4%
|
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
September 30, 2017
|
|
Total Net
Charge-Off
Rate as of September 30,
2017
|
|
|
|
|
(in RMB
thousands)
|
|
(in RMB
thousands)
|
|
|
2014
|
|
I
|
|
-
|
|
-
|
|
-
|
|
|
II
|
|
1,921,372
|
|
90,940
|
|
4.7%
|
|
|
III
|
|
303,276
|
|
20,541
|
|
6.8%
|
|
|
IV
|
|
-
|
|
-
|
|
-
|
|
|
V
|
|
3,913
|
|
528
|
|
13.5%
|
|
|
Total
|
|
2,228,561
|
|
112,009
|
|
5.0%
|
2015
|
|
I
|
|
146,490
|
|
3,583
|
|
2.4%
|
|
|
II
|
|
1,614,354
|
|
77,638
|
|
4.8%
|
|
|
III
|
|
2,521,705
|
|
186,541
|
|
7.4%
|
|
|
IV
|
|
2,506,107
|
|
225,124
|
|
9.0%
|
|
|
V
|
|
2,768,957
|
|
350,503
|
|
12.7%
|
|
|
Total
|
|
9,557,613
|
|
843,389
|
|
8.8%
|
2016
|
|
I
|
|
497,220
|
|
5,891
|
|
1.2%
|
|
|
II
|
|
3,137,889
|
|
60,626
|
|
1.9%
|
|
|
III
|
|
3,763,081
|
|
110,254
|
|
2.9%
|
|
|
IV
|
|
5,183,233
|
|
210,862
|
|
4.1%
|
|
|
V
|
|
7,799,180
|
|
556,735
|
|
7.1%
|
|
|
Total
|
|
20,380,603
|
|
944,368
|
|
4.6%
|
Q1-Q3
2017
|
|
I
|
|
1,705,739
|
|
947
|
|
0.1%
|
|
|
II
|
|
5,901,281
|
|
10,281
|
|
0.2%
|
|
|
III
|
|
7,023,361
|
|
15,996
|
|
0.2%
|
|
|
IV
|
|
6,839,437
|
|
22,014
|
|
0.3%
|
|
|
V
|
|
6,497,720
|
|
76,193
|
|
1.2%
|
|
|
Total
|
|
27,967,538
|
|
125,431
|
|
0.4%
|
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%
|
5.2%
|
2015Q1
|
|
0.6%
|
2.7%
|
4.4%
|
5.8%
|
7.1%
|
8.2%
|
9.1%
|
9.6%
|
9.9%
|
10.1%
|
|
2015Q2
|
|
0.5%
|
2.1%
|
3.7%
|
5.3%
|
6.6%
|
7.7%
|
8.6%
|
9.2%
|
9.6%
|
|
|
2015Q3
|
|
0.2%
|
1.6%
|
3.4%
|
4.9%
|
6.4%
|
7.4%
|
8.1%
|
8.6%
|
|
|
|
2015Q4
|
|
0.2%
|
1.6%
|
3.2%
|
4.9%
|
6.2%
|
7.2%
|
7.9%
|
|
|
|
|
2016Q1
|
|
0.2%
|
1.3%
|
2.9%
|
4.3%
|
5.4%
|
6.4%
|
|
|
|
|
|
2016Q2
|
|
0.2%
|
1.7%
|
3.4%
|
4.9%
|
6.0%
|
|
|
|
|
|
|
2016Q3
|
|
0.1%
|
1.5%
|
3.2%
|
4.6%
|
|
|
|
|
|
|
|
2016Q4
|
|
0.2%
|
1.5%
|
3.0%
|
|
|
|
|
|
|
|
|
2017Q1
|
|
0.2%
|
1.4%
|
|
|
|
|
|
|
|
|
|
2017Q2
|
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/yirendai-reports-third-quarter-2017-financial-results-300555674.html
SOURCE Yirendai Ltd.