BEIJING, March 14, 2018 /PRNewswire/ -- Yirendai Ltd.
(NYSE: YRD) ("Yirendai" or the "Company"), a leading fintech
company in China, today announced
its unaudited financial results for the quarter and full year ended
December 31, 2017.
|
For Three Months
Ended
|
|
For Twelve Months
Ended
|
in RMB
million
|
December 31,
2017
|
December 31,
2016
|
YoY
Change
|
|
December 31,
2017
|
December 31,
2016
|
YoY
Change
|
Amount of Loans
Facilitated
|
13,438.5
|
6,883.4
|
95%
|
|
41,406.1
|
20,486.1
|
102%
|
Total Net
Revenue
|
1,824.8
|
1,071.1
|
70%
|
|
5,543.4
|
3,238.0
|
71%
|
Total Fees Billed
(non-GAAP)
|
2,944.0
|
1,630.4
|
81%
|
|
8,865.2
|
4,911.2
|
81%
|
Net Income
|
448.8
|
379.8
|
18%
|
|
1,371.8
|
1,116.4
|
23%
|
Adjusted EBITDA
(non-GAAP)
|
542.7
|
401.1
|
35%
|
|
1,743.8
|
1,093.4
|
59%
|
In the fourth quarter of 2017, Yirendai facilitated RMB 13,438.5 million (US$2,065.5 million) of loans to 202,370 qualified
individual borrowers through its online marketplace, representing a
year-over-year growth of 95%; 74.6% of the borrowers were acquired
from online channels; nearly 100% of the loan volume originated
from online channels was facilitated through mobile.
In the fourth quarter of 2017, Yirendai facilitated 233,374
investors with total investment amount of RMB 15,967.4 million (US$2,454.2 million), 100% of which was
facilitated through its online platform and 92% of which was
facilitated through its mobile application.
For the fourth quarter of 2017, total net revenue was
RMB 1,824.8 million (US$280.5 million), an increase of 21% from the
previous quarter and 70% year-over-year; net income was
RMB 448.8 million (US$69.0 million), an increase of 48% from the
previous quarter and 18% year-over-year.
In the full year of 2017, Yirendai facilitated RMB 41,406.1 million (US$6,364.0 million) of loans to 649,154 qualified
individual borrowers through its online marketplace, representing a
year-over-year growth of 102%; 72.9% of the borrowers were acquired
from online channels; nearly 100% of the loan volume originated
from online channels was facilitated through mobile.
In the full year of 2017, Yirendai facilitated 592,642 investors
with total investment amount of RMB 48,074.1
million (US$7,388.9 million),
100% of which was facilitated through its online platform and 87%
of which was facilitated through its mobile application.
For the full year of 2017, total net revenue was RMB 5,543.4 million (US$852.0 million), representing a year-over-year
growth of 71%; net income was RMB 1,371.8
million (US$210.8 million),
representing an increase of 23% from prior year.
"We are pleased to conclude 2017 with another strong quarter
driven by continued expansion of our online business," commented
Ms. Yihan Fang, Chief Executive
Officer of Yirendai. "We will continue to grow our online lending
platform, online wealth management and technology platform
businesses. In addition, over the next few months, we
will remain in close communications with the regulatory bodies to
ensure that we will be fully prepared for the upcoming registration
process. We believe leading platforms including Yirendai will
benefit from a healthier industry development driven by tightening
regulations."
"We have maintained strong growth momentum during the quarter,"
commented Mr. Dennis Cong, Chief
Financial Officer of Yirendai. "We delivered solid financial
results in 2017 as we further grow our business from online
channels and start to expand into new business such as wealth
management and technology platform business. Going into 2018, we
will continue to grow overall topline and bottom line while capture
all the business opportunities as we enter into industry
consolidation period. We will also strive to expand our
partnerships with leading financial institutions to diversify
funding sources and maintain funding cost advantage."
Fourth quarter 2017 Financial Results
Total amount of loans facilitated in the fourth quarter
of 2017 was RMB 13,438.5 million
(US$2,065.5 million), increased by
95% from RMB 6,883.4 million in the
same period last year, reflecting strong demand for our products
and services, especially from customers acquired from online
channels. As of December 31, 2017,
the Yirendai platform had facilitated approximately RMB 73.9 billion (US$11.4
billion) in loan principal since its inception.
Total net revenue in the fourth quarter of 2017 was
RMB 1,824.8 million (US$280.5 million), increased by 70% from
RMB 1,071.1 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 fourth quarter of
2017 were RMB 2,944.0 million
(US$452.5 million), increased by 81%
from RMB 1,630.4 million in the same
period last year. Upfront fees billed to borrowers in the
fourth quarter of 2017 were RMB 2,376.9
million (US$365.3 million),
increased by 62% from RMB 1,468.3
million in the same period last year, primarily driven by
the growth of loan origination volume. Monthly fees billed to
borrowers in the fourth quarter of 2017 were RMB 384.3 million (US$59.1
million), increased by 193% from RMB
131.3 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 fourth quarter of 2017 were
RMB 339.8 million (US$52.2 million), increased by 150% from
RMB 135.7 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 asset under management.
Sales and marketing expenses in the fourth quarter of
2017 were RMB 989.8 million
(US$152.1 million), increased by 17%
from RMB 844.2 million in the
previous quarter and compared to RMB 538.0
million in the same period last year. Sales and marketing
expenses in the fourth quarter of 2017 accounted for 7.4% of amount
of loans facilitated, increased from 6.9% in the previous quarter
and decreased from 7.8% in the same period last year. Sales and
marketing expenses as a percentage of amount of loans facilitated
increased from the previous quarter due to the increase of investor
acquisition spending as we build up our online wealth management
service and our slightly decreased approval rate in anticipation of
potential volatility of borrower credit performance caused by the
tightening of industry regulations.
Origination and servicing costs in the fourth quarter of
2017 were RMB 146.9 million
(US$22.6 million), compared to
RMB 119.0 million in the previous
quarter and RMB 56.7 million in the
same period last year. Origination and servicing costs in the
fourth quarter of 2017 accounted for 1.1% of amount of loans
facilitated, increased from 1.0% in the previous quarter and 0.8%
in the same period last year mainly due to increased collection
efforts this quarter.
General and administrative expenses in the fourth quarter
of 2017 were RMB 155.1 million
(US$23.8 million), compared to
RMB 172.6 million in the previous
quarter and RMB 79.7 million in the
same period last year. General and administrative expenses in the
fourth quarter of 2017 accounted for 8.5% of total net revenue,
compared to 11.4 % in the previous quarter and 7.4% in the same
period last year. General and administrative expenses in the fourth
quarter of 2017 include an expense of RMB
61.0 million (US$9.4 million)
related to the quality assurance program and a contra-expense of
RMB 17.9 million (US$2.8 million) related to an organized fraud
incident in the third quarter of 2016.
In the third quarter of 2016, the Company recognized an expense
of RMB 81.3 million (US$12.5 million) related to an organized fraud
incident concerning one type of our FastTrack loan products. After
evaluating future payouts as of December 31,
2017, the Company reversed a RMB 17.9
million (US$2.8 million)
contingent liability related to the organized fraud incident.
Income tax expense in the fourth quarter of 2017 was
RMB 97.4 million (US$15.0 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 fourth quarter of 2017 was RMB 448.8 million (US$69.0
million), increased by 48% from RMB
303.0 million in the previous quarter and increased by 18%
from RMB 379.8 million for the same
period last year.
Adjusted EBITDA (non-GAAP) in the fourth quarter of 2017
was RMB 542.7 million (US$83.4 million), increased by 28% from
RMB 422.4 million in the previous
quarter and increased by 35% from RMB 401.1
million in the same period last year. Adjusted EBITDA
margin[1] (non-GAAP) in the fourth quarter of 2017 was 29.7%,
compared to 27.9% in the previous quarter and 37.5% in the same
period last year.
Basic income per ADS in the fourth quarter of 2017 was
RMB 7.40 (US$1.14), increased from RMB 5.00 in the previous quarter and RMB 6.36 in the same period last year.
Diluted income per ADS in the fourth quarter of 2017 was
RMB 7.25 (US$1.11), increased from RMB 4.91 in the previous quarter and RMB 6.28 in the same period last year.
Net cash generated from operating activities in the
fourth quarter of 2017 was RMB 1,275.3
million (US$196.0 million),
increased from RMB 346.3 million in
the previous quarter and RMB 836.1
million in the same period last year.
As of December 31, 2017, cash
and cash equivalents was RMB 1,857.2
million (US$ 285.4 million),
compared to RMB 1,403.5 million as of
September 30, 2017. As of
December 31, 2017, balance of
held-to-maturity investments was RMB 9.9
million (US$1.5 million),
compared to RMB 168.9 million as of
September 30, 2017. As of
December 31, 2017, balance of
available-for-sale investments was RMB 969.8
million (US$149.0 million),
compared to RMB 996.7 million as of
September 30, 2017.
Quality Assurance Program and Guarantee. In anticipation
of potential volatility of borrower credit performance caused by
the recent tightening of industry regulations, in the fourth
quarter of 2017, Yirendai accrued liabilities from quality
assurance program and guarantee of RMB
1,047.8 million (US$161.0
million), which is equal to approximately 8.5% of the loans
facilitated through its marketplace covered by the quality
assurance program during the period. In the fourth quarter of 2017,
the Company released liabilities of RMB
689.7 million (US$ 106.0
million) to pay out the outstanding principal and accrued
interest of default loans. During the quarter, the Company also
reversed a contingent liability of RMB 17.9
million (US$2.8 million) in
relation to the organized fraud incident in July 2016 during the quarter after evaluating
future payouts. In addition, in the fourth quarter of 2017, after
reviewing the sufficiency of the liability as of December 31, 2017, the Company recognized an
additional contingent liability of RMB 61.0
million (US$9.4 million)
according to historical loans' performance. As of December 31, 2017, liabilities from quality
assurance program and guarantee were RMB
2,793.9 million (US$429.4
million).
Delinquency rates. As of December
31, 2017, the delinquency rates for loans that are past due
for 15-29 days, 30-59 days and 60-89 days were 0.8%, 0.9% and 0.7%,
compared to 0.5%, 0.7% and 0.6%, as of September 30, 2017. The delinquency rates for
loans that are past due for 15-29 days has increased as compared to
prior quarter due to a short-term volatility of borrower credit
performance since new regulations were issued in December 2017.
Cumulative M3+ net charge-off rates. As of
December 31, 2017, the cumulative M3+
net charge-off rate for loans originated in 2015 was 9.3%, compared
to 8.8% as of September 30, 2017. As
of December 31, 2017, the cumulative
M3+ net charge-off rate for loans originated in 2016 was 5.9%,
compared to 4.6% as of September 30,
2017. As the 2015 and 2016 vintage loans continue to mature,
the charge off level is broadly consistent with our risk
performance expectation.
Dividend
The board of directors has approved a dividend of RMB 0.9298 (US$0.14) per ordinary share of the Company (or
RMB 1.8596 (US$0.28) per American depositary share of the
Company) for the second half of 2017, which is expected to be paid
on May 15, 2018 to holders of the
Company's ordinary shares of record as of the close of business on
April 30, 2018.
Under the Company's semi-annual dividend policy announced
on August 1, 2017, 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 December 31, 2017,
remaining principal of performing loans totaled RMB 40.6 billion (US$6.2
billion), increased by 19% from RMB
34.2 billion as of September 30,
2017 and 95% from RMB 20.8
billion as of December 31,
2016.
- In the fourth quarter of 2017, Grade A, B, C and D loans
represented 2.0%, 8.8%, 13.0%, and 76.2% and Grade I, II, III, IV
and V loans represented 7.4%, 23.6%, 26.7%, 25.5% and 16.8% of the
Company's product portfolio, respectively.
Other Developments
Partnership with PICC P&C
On February 9, 2018, the Company
announced that it had entered into a three-year business agreement
(the "Agreement") with PICC Property and Casualty Company
Limited ("PICC P&C"). Under the terms of the
Agreement, PICC P&C will provide surety insurance for loans,
with maximum term of 12 months and maximum contract amount
of RMB 200,000 (US$31,000 approximately) which are
facilitated through Yirendai's online marketplace. PICC
P&C will charge borrowers an insurance premium and will
reimburse lenders their principal and expected interest in the
event of loan defaults within the agreed scope of the
Agreement.
Accounting Policy Change
Effective from January 1, 2018, Yirendai has adopted a new
revenue recognition policy, ASC 606 – Revenue from Contracts with
Customers, in accordance with US GAAP. As a result of adopting ASC
606, we expect to record a cumulative-effect adjustment to the
opening balance of retained earnings. Management has substantially
completed the assessment on revenue recognition for the business
under ASC 606 and is in the process of finalizing the
conclusion.
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 and is based upon the
new revenue recognition policy under US GAAP, ASC 606.
First Quarter 2018
- Total loans facilitated will be
in the range of RMB 11,000 million to
RMB 11,200 million.
- Total net revenue will be in
the range of RMB 1,530 million to
RMB 1,570 million.
- Adjusted EBITDA (non-GAAP) will
be in the range of RMB 430 million to
RMB 450 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 6.5063
to US$1.00, the effective noon buying
rate on December 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 8:00 p.m. Eastern Time on March 14, 2018, (or
8:00 a.m. Beijing/Hong Kong Time on March 15, 2018).
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
|
Mainland China Toll
Free:
|
400-620-8038
|
Conference
ID:
|
8097206
|
A replay of the conference call may be accessed by phone at the
following numbers until March 21, 2018:
International:
|
+61
2-8199-0299
|
U.S. Toll
Free:
|
+1
646-254-3697
|
Replay Access
Code:
|
8097206
|
A live and archived webcast of the conference call will be
available on Yirendai's website at ir.yirendai.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 ir.yirendai.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.
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 Full Year
Ended
|
|
December
31, 2016
|
|
September
30, 2017
|
|
December
31, 2017
|
|
December
31, 2017
|
|
December
31, 2016
|
|
December
31, 2017
|
|
December
31, 2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan facilitation
services
|
1,036,630
|
|
1,425,162
|
|
1,703,931
|
|
261,889
|
|
3,133,423
|
|
5,226,691
|
|
803,328
|
Post-origination
services
|
25,039
|
|
49,951
|
|
62,564
|
|
9,616
|
|
84,154
|
|
187,216
|
|
28,775
|
Others
|
9,441
|
|
38,791
|
|
58,295
|
|
8,960
|
|
20,414
|
|
129,443
|
|
19,895
|
Total net
revenue
|
1,071,110
|
|
1,513,904
|
|
1,824,790
|
|
280,465
|
|
3,237,991
|
|
5,543,350
|
|
851,998
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
537,953
|
|
844,165
|
|
989,811
|
|
152,131
|
|
1,571,038
|
|
2,921,236
|
|
448,986
|
Origination and
servicing
|
56,668
|
|
119,036
|
|
146,915
|
|
22,580
|
|
180,076
|
|
417,882
|
|
64,227
|
General and
administrative
|
79,714
|
|
172,643
|
|
155,090
|
|
23,837
|
|
402,111
|
|
526,845
|
|
80,976
|
Total operating costs
and expenses
|
674,335
|
|
1,135,844
|
|
1,291,816
|
|
198,548
|
|
2,153,225
|
|
3,865,963
|
|
594,189
|
Interest
income
|
14,778
|
|
33,250
|
|
30,054
|
|
4,619
|
|
36,843
|
|
114,851
|
|
17,652
|
Fair value
adjustments related to Consolidated ABFE
|
(1,287)
|
|
(22,762)
|
|
(16,802)
|
|
(2,582)
|
|
(19,735)
|
|
(40,124)
|
|
(6,167)
|
Non-operating income,
net
|
225
|
|
158
|
|
(44)
|
|
(7)
|
|
575
|
|
876
|
|
135
|
Income before
provision for income taxes
|
410,491
|
|
388,706
|
|
546,182
|
|
83,947
|
|
1,102,449
|
|
1,752,990
|
|
269,429
|
Income tax
expense/(benefit)
|
30,710
|
|
85,732
|
|
97,370
|
|
14,966
|
|
(13,949)
|
|
381,207
|
|
58,590
|
Net income
|
379,781
|
|
302,974
|
|
448,812
|
|
68,981
|
|
1,116,398
|
|
1,371,783
|
|
210,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares
outstanding, basic
|
119,493,662
|
|
121,249,448
|
|
121,319,117
|
|
121,319,117
|
|
118,240,414
|
|
120,457,573
|
|
120,457,573
|
Basic income per
share
|
3.1783
|
|
2.4988
|
|
3.6994
|
|
0.5686
|
|
9.4418
|
|
11.3881
|
|
1.7503
|
Basic income per
ADS
|
6.3566
|
|
4.9976
|
|
7.3988
|
|
1.1372
|
|
18.8836
|
|
22.7762
|
|
3.5006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares
outstanding, diluted
|
120,859,390
|
|
123,509,834
|
|
123,744,151
|
|
123,744,151
|
|
118,937,082
|
|
122,256,838
|
|
122,256,838
|
Diluted income per
share
|
3.1423
|
|
2.4530
|
|
3.6269
|
|
0.5574
|
|
9.3865
|
|
11.2205
|
|
1.7246
|
Diluted income per
ADS
|
6.2846
|
|
4.9060
|
|
7.2538
|
|
1.1148
|
|
18.7730
|
|
22.4410
|
|
3.4492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed
Consolidated
Cash Flow Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash generated
from operating activities
|
836,055
|
|
346,329
|
|
1,275,309
|
|
196,012
|
|
2,113,435
|
|
2,716,513
|
|
417,520
|
Net cash (used
in)/provided by investing activities
|
(807,744)
|
|
342,289
|
|
(193,498)
|
|
(29,740)
|
|
(1,421,663)
|
|
(374,597)
|
|
(57,574)
|
Net cash provided
by/(used in) financing activities
|
60,400
|
|
(127,864)
|
|
(581,752)
|
|
(89,414)
|
|
135,298
|
|
(849,450)
|
|
(130,558)
|
Effect of foreign
exchange rate changes
|
17,193
|
|
(14,885)
|
|
9,018
|
|
1,386
|
|
29,356
|
|
(16,109)
|
|
(2,476)
|
Net increase in cash,
cash equivalents and
restricted cash
|
105,904
|
|
545,869
|
|
509,077
|
|
78,244
|
|
856,426
|
|
1,476,357
|
|
226,912
|
Cash, cash
equivalents and restricted
cash, beginning of period
|
2,080,607
|
|
2,607,922
|
|
3,153,791
|
|
484,729
|
|
1,330,085
|
|
2,186,511
|
|
336,061
|
Cash, cash
equivalents and restricted
cash, end of period
|
2,186,511
|
|
3,153,791
|
|
3,662,868
|
|
562,973
|
|
2,186,511
|
|
3,662,868
|
|
562,973
|
Unaudited
Consolidated Balance Sheet
|
(in
thousands, except for share, per share and per ADS data, and
percentages)
|
|
As
of
|
|
December
31, 2016
|
|
September
30, 2017
|
|
December
31, 2017
|
|
December
31, 2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
968,225
|
|
1,403,529
|
|
1,857,175
|
|
285,443
|
Restricted
cash
|
1,218,286
|
|
1,750,262
|
|
1,805,693
|
|
277,530
|
Accounts
receivable
|
28,581
|
|
24,050
|
|
21,368
|
|
3,284
|
Prepaid
expenses and other assets
|
466,763
|
|
1,136,993
|
|
1,062,484
|
|
163,301
|
Loans at
fair value
|
371,033
|
|
558,178
|
|
791,681
|
|
121,679
|
Amounts
due from related parties
|
1,678
|
|
176,867
|
|
117,222
|
|
18,017
|
Held-to-maturity investments
|
98,917
|
|
168,917
|
|
9,944
|
|
1,528
|
Available-for-sale investments
|
1,158,000
|
|
996,660
|
|
969,759
|
|
149,049
|
Property,
equipment and software, net
|
35,503
|
|
81,515
|
|
82,249
|
|
12,641
|
Deferred
tax assets
|
436,402
|
|
685,875
|
|
801,089
|
|
123,125
|
Total
assets
|
4,783,388
|
|
6,982,846
|
|
7,518,664
|
|
1,155,597
|
Accounts
payable
|
13,691
|
|
22,634
|
|
33,841
|
|
5,201
|
Amounts
due to related parties
|
11,609
|
|
23,153
|
|
76,544
|
|
11,765
|
Liabilities from quality assurance program and guarantee
|
1,471,000
|
|
2,392,794
|
|
2,793,948
|
|
429,422
|
Deferred
revenue
|
164,318
|
|
194,646
|
|
222,906
|
|
34,260
|
Payable to
investors at fair value
|
418,686
|
|
145,200
|
|
113,445
|
|
17,436
|
Accrued
expenses and other liabilities
|
564,165
|
|
1,704,207
|
|
1,296,650
|
|
199,291
|
Deffered
tax liability
|
|
|
4,545
|
|
11,277
|
|
1,733
|
Total
liabilities
|
2,643,469
|
|
4,487,179
|
|
4,548,611
|
|
699,108
|
Ordinary
shares
|
75
|
|
76
|
|
76
|
|
12
|
Additional
paid-in capital
|
933,272
|
|
1,094,916
|
|
1,123,443
|
|
172,670
|
Accumulated other comprehensive income
|
29,457
|
|
4,330
|
|
11,478
|
|
1,764
|
Retained
earnings
|
1,177,115
|
|
1,396,345
|
|
1,835,056
|
|
282,043
|
Total
equity
|
2,139,919
|
|
2,495,667
|
|
2,970,053
|
|
456,489
|
Total liabilities and
equity
|
4,783,388
|
|
6,982,846
|
|
7,518,664
|
|
1,155,597
|
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 Full Year
Ended
|
|
December
31, 2016
|
|
September
30, 2017
|
|
December
31, 2017
|
|
December
31, 2017
|
|
|
December
31, 2016
|
|
December
31, 2017
|
|
December
31, 2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
RMB
|
|
RMB
|
|
USD
|
Operating
Highlights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of loans
facilitated
|
6,883,442
|
|
12,185,367
|
|
13,438,520
|
|
2,065,463
|
|
|
20,486,128
|
|
41,406,058
|
|
6,363,995
|
Loans
generated from online channels
|
2,497,623
|
|
6,972,156
|
|
7,709,403
|
|
1,184,914
|
|
|
7,780,555
|
|
22,543,298
|
|
3,464,842
|
Loans
generated from offline channels
|
4,385,819
|
|
5,213,211
|
|
5,729,117
|
|
880,549
|
|
|
12,705,573
|
|
18,862,760
|
|
2,899,153
|
Fees
billed
|
1,630,358
|
|
2,475,271
|
|
2,943,953
|
|
452,478
|
|
|
4,911,221
|
|
8,865,228
|
|
1,362,561
|
Remaining principal
of performing loans
|
20,780,617
|
|
34,235,727
|
|
40,616,167
|
|
6,242,591
|
|
|
20,780,617
|
|
40,616,167
|
|
6,242,591
|
Remaining principal
of performing loans covered
by quality assurance program and guarantee
|
20,103,043
|
|
33,622,142
|
|
39,717,029
|
|
6,104,396
|
|
|
20,103,043
|
|
39,717,029
|
|
6,104,396
|
Number of
borrowers
|
110,785
|
|
192,725
|
|
202,370
|
|
202,370
|
|
|
321,019
|
|
649,154
|
|
649,154
|
Borrowers
from online channels
|
63,010
|
|
145,838
|
|
150,982
|
|
150,982
|
|
|
184,430
|
|
472,960
|
|
472,960
|
Borrowers
from offline channels
|
47,775
|
|
46,887
|
|
51,388
|
|
51,388
|
|
|
136,589
|
|
176,194
|
|
176,194
|
Number of
investors
|
194,505
|
|
214,967
|
|
233,374
|
|
233,374
|
|
|
597,765
|
|
592,642
|
|
592,642
|
Investors
from online channels
|
194,505
|
|
214,967
|
|
233,374
|
|
233,374
|
|
|
597,765
|
|
592,642
|
|
592,642
|
Investors
from offline channels
|
-
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
-
|
Adjusted
EBITDA
|
401,146
|
|
422,413
|
|
542,704
|
|
83,412
|
|
|
1,093,437
|
|
1,743,848
|
|
268,024
|
Adjusted EBITDA
margin
|
37.5%
|
|
27.9%
|
|
29.7%
|
|
29.7%
|
|
|
33.8%
|
|
31.5%
|
|
31.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees
billed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction fees billed to borrowers
|
1,599,674
|
|
2,338,933
|
|
2,761,147
|
|
424,381
|
|
|
4,830,566
|
|
8,361,026
|
|
1,285,066
|
Upfront fees billed to borrowers
|
1,468,330
|
|
2,046,742
|
|
2,376,885
|
|
365,321
|
|
|
4,450,465
|
|
7,296,284
|
|
1,121,418
|
Monthly fees billed to borrowers
|
131,344
|
|
292,191
|
|
384,262
|
|
59,060
|
|
|
380,101
|
|
1,064,742
|
|
163,648
|
Service
fees billed to investors
|
135,747
|
|
271,961
|
|
339,786
|
|
52,224
|
|
|
399,311
|
|
1,011,724
|
|
155,499
|
Others
|
10,007
|
|
41,118
|
|
61,746
|
|
9,490
|
|
|
21,639
|
|
137,163
|
|
21,082
|
Value-added tax
|
(115,070)
|
|
(176,741)
|
|
(218,726)
|
|
(33,617)
|
|
|
(340,295)
|
|
(644,685)
|
|
(99,086)
|
Total fees
billed
|
1,630,358
|
|
2,475,271
|
|
2,943,953
|
|
452,478
|
|
|
4,911,221
|
|
8,865,228
|
|
1,362,561
|
Stand-ready liabilities associated with
quality assurance
program and guarantee
|
(528,852)
|
|
(896,155)
|
|
(1,051,211)
|
|
(161,568)
|
|
|
(1,598,238)
|
|
(3,156,349)
|
|
(485,122)
|
Deferred
revenue
|
(18,545)
|
|
(26,040)
|
|
(32,492)
|
|
(4,994)
|
|
|
(71,322)
|
|
(78,491)
|
|
(12,064)
|
Cash
incentives
|
(42,836)
|
|
(91,371)
|
|
(100,057)
|
|
(15,379)
|
|
|
(98,173)
|
|
(273,397)
|
|
(42,020)
|
Value-added tax
|
30,985
|
|
52,199
|
|
64,597
|
|
9,928
|
|
|
94,503
|
|
186,359
|
|
28,643
|
Net
revenues
|
1,071,110
|
|
1,513,904
|
|
1,824,790
|
|
280,465
|
|
|
3,237,991
|
|
5,543,350
|
|
851,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
379,781
|
|
302,974
|
|
448,812
|
|
68,981
|
|
|
1,116,398
|
|
1,371,783
|
|
210,839
|
Interest
income
|
(14,778)
|
|
(33,250)
|
|
(30,054)
|
|
(4,619)
|
|
|
(36,843)
|
|
(114,851)
|
|
(17,652)
|
Income tax
expense
|
30,710
|
|
85,732
|
|
97,370
|
|
14,966
|
|
|
(13,949)
|
|
381,207
|
|
58,590
|
Depreciation and
amortization
|
3,554
|
|
6,892
|
|
7,738
|
|
1,189
|
|
|
10,609
|
|
23,729
|
|
3,647
|
Share-based
compensation
|
1,879
|
|
60,065
|
|
18,838
|
|
2,895
|
|
|
17,222
|
|
81,980
|
|
12,600
|
Adjusted
EBITDA
|
401,146
|
|
422,413
|
|
542,704
|
|
83,412
|
|
|
1,093,437
|
|
1,743,848
|
|
268,024
|
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%
|
December 31,
2017
|
|
0.8%
|
|
0.9%
|
|
0.7%
|
|
|
|
|
|
|
|
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%
|
December 31,
2017
|
|
1.2%
|
|
1.2%
|
|
0.9%
|
|
|
|
|
|
|
|
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%
|
December 31,
2017
|
|
0.5%
|
|
0.7%
|
|
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 December
31, 2017
|
|
Total Net
Charge-Off Rate
as of December
31, 2017
|
|
|
|
|
(in RMB
thousands)
|
|
(in RMB
thousands)
|
|
|
2014
|
|
A
|
|
1,917,542
|
|
88,935
|
|
4.6%
|
|
|
B
|
|
303,030
|
|
20,243
|
|
6.7%
|
|
|
C
|
|
-
|
|
-
|
|
-
|
|
|
D
|
|
7,989
|
|
518
|
|
6.5%
|
|
|
Total
|
|
2,228,561
|
|
109,696
|
|
4.9%
|
2015
|
|
A
|
|
873,995
|
|
50,703
|
|
5.8%
|
|
|
B
|
|
419,630
|
|
33,646
|
|
8.0%
|
|
|
C
|
|
557,414
|
|
60,527
|
|
10.9%
|
|
|
D
|
|
7,706,574
|
|
743,268
|
|
9.6%
|
|
|
Total
|
|
9,557,613
|
|
888,144
|
|
9.3%
|
2016
|
|
A
|
|
1,141,835
|
|
25,183
|
|
2.2%
|
|
|
B
|
|
749,868
|
|
36,335
|
|
4.8%
|
|
|
C
|
|
1,403,553
|
|
94,914
|
|
6.8%
|
|
|
D
|
|
17,085,347
|
|
1,053,336
|
|
6.2%
|
|
|
Total
|
|
20,380,603
|
|
1,209,768
|
|
5.9%
|
2017
|
|
A
|
|
970,550
|
|
3,328
|
|
0.3%
|
|
|
B
|
|
3,277,816
|
|
16,763
|
|
0.5%
|
|
|
C
|
|
5,030,271
|
|
31,014
|
|
0.6%
|
|
|
D
|
|
32,127,421
|
|
391,318
|
|
1.2%
|
|
|
Total
|
|
41,406,058
|
|
442,423
|
|
1.1%
|
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 December
31, 2017
|
|
Total Net
Charge-Off Rate
as of December
31, 2017
|
|
|
|
|
(in RMB
thousands)
|
|
(in RMB
thousands)
|
|
|
2014
|
|
I
|
|
-
|
|
-
|
|
-
|
|
|
II
|
|
1,921,372
|
|
88,935
|
|
4.6%
|
|
|
III
|
|
303,276
|
|
20,243
|
|
6.7%
|
|
|
IV
|
|
-
|
|
-
|
|
-
|
|
|
V
|
|
3,913
|
|
518
|
|
13.2%
|
|
|
Total
|
|
2,228,561
|
|
109,696
|
|
4.9%
|
2015
|
|
I
|
|
146,490
|
|
3,865
|
|
2.6%
|
|
|
II
|
|
1,614,354
|
|
83,880
|
|
5.2%
|
|
|
III
|
|
2,521,705
|
|
195,378
|
|
7.7%
|
|
|
IV
|
|
2,506,107
|
|
238,742
|
|
9.5%
|
|
|
V
|
|
2,768,957
|
|
366,279
|
|
13.2%
|
|
|
Total
|
|
9,557,613
|
|
888,144
|
|
9.3%
|
2016
|
|
I
|
|
497,220
|
|
7,824
|
|
1.6%
|
|
|
II
|
|
3,137,889
|
|
81,607
|
|
2.6%
|
|
|
III
|
|
3,763,081
|
|
141,208
|
|
3.8%
|
|
|
IV
|
|
5,183,233
|
|
269,657
|
|
5.2%
|
|
|
V
|
|
7,799,180
|
|
709,472
|
|
9.1%
|
|
|
Total
|
|
20,380,603
|
|
1,209,768
|
|
5.9%
|
2017
|
|
I
|
|
2,701,162
|
|
6,522
|
|
0.2%
|
|
|
II
|
|
9,079,647
|
|
43,501
|
|
0.5%
|
|
|
III
|
|
10,611,451
|
|
83,420
|
|
0.8%
|
|
|
IV
|
|
10,263,135
|
|
106,168
|
|
1.0%
|
|
|
V
|
|
8,750,663
|
|
202,812
|
|
2.3%
|
|
|
Total
|
|
41,406,058
|
|
442,423
|
|
1.1%
|
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%
|
5.3%
|
2015Q1
|
|
0.6%
|
2.7%
|
4.4%
|
5.8%
|
7.1%
|
8.2%
|
9.1%
|
9.6%
|
9.9%
|
10.2%
|
10.3%
|
2015Q2
|
|
0.5%
|
2.1%
|
3.7%
|
5.3%
|
6.6%
|
7.7%
|
8.6%
|
9.2%
|
9.6%
|
9.9%
|
|
2015Q3
|
|
0.2%
|
1.6%
|
3.4%
|
4.9%
|
6.4%
|
7.4%
|
8.1%
|
8.6%
|
9.0%
|
|
|
2015Q4
|
|
0.2%
|
1.6%
|
3.2%
|
4.9%
|
6.2%
|
7.2%
|
8.0%
|
8.7%
|
|
|
|
2016Q1
|
|
0.2%
|
1.3%
|
2.9%
|
4.3%
|
5.4%
|
6.4%
|
7.2%
|
|
|
|
|
2016Q2
|
|
0.2%
|
1.7%
|
3.4%
|
4.9%
|
6.1%
|
7.1%
|
|
|
|
|
|
2016Q3
|
|
0.1%
|
1.5%
|
3.2%
|
4.6%
|
5.9%
|
|
|
|
|
|
|
2016Q4
|
|
0.2%
|
1.5%
|
3.0%
|
4.6%
|
|
|
|
|
|
|
|
2017Q1
|
|
0.2%
|
1.4%
|
3.2%
|
|
|
|
|
|
|
|
|
2017Q2
|
|
0.3%
|
1.9%
|
|
|
|
|
|
|
|
|
|
2017Q3
|
|
0.4%
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/yirendai-reports-fourth-quarter-and-full-year-2017-financial-results-300614077.html
SOURCE Yirendai Ltd.