HANGZHOU, China, Sept. 17, 2020 /PRNewswire/ -- Weidai Ltd.
("Weidai" or the "Company") (NYSE: WEI), a leading auto-backed
financing solution provider in China, today announced its financial results
for the six months ended June 30,
2020, which have not been audited or reviewed by the
Company's independent registered accounting firm.
Six Months Ended June 30, 2020
Operational Highlights
Loan volume
The following table sets forth the volume of loans the Company
facilitated and originated (including loans funded by institutional
funding partners) for the period indicated:
|
For the six months
ended June 30, 2020
|
|
RMB
|
% of total loan
volume
|
|
(in millions,
except for percentages)
|
|
|
|
Total loan
volume
|
395
|
100.0
|
Including:
|
|
|
Loans funded by
institutional funding partners
|
298
|
75.5
|
Loan balance
Total loan balance as of June 30,
2020 was RMB8.5 billion
(US$1.2 billion).
Six Months Ended June 30, 2020
Financial Results
Net revenues in the six months ended June 30, 2020 were RMB873.9 million
(US$123.7 million). Among net
revenues, loan service fee was RMB758.3
million (US$107.3 million),
other revenues were RMB64.3 million
(US$9.1 million) and net financing
income was RMB53.0 million
(US$7.5 million).
Provision for loans and advances in the six months
ended June 30, 2020 was RMB639.2 million (US$90.5
million).
Operating costs and expenses in the six months ended
June 30,2020 were RMB603.1 million (US$85.4
million). Among operating costs and expenses, provision for
financial guarantee liabilities was RMB73.8
million (US$10.4 million),
origination and servicing expenses were RMB402.4 million (US$57.0
million), sales and marketing expenses were RMB43.7 million (US$6.2
million), general and administrative expenses were
RMB66.2 million (US$9.4 million), and research and development
expenses were RMB17.0 million
(US$2.4 million). Share-based
compensation benefits in the six months ended June 30, 2020 were RMB4.1
million (US$0.6 million).
Loss from operations in the six months ended
June 30, 2020 was RMB368.4 million (US$52.1
million).
Income tax expenses in the six months ended
June 30, 2020 were RMB143.0 million (US$20.2
million).
Net loss in the six months ended June 30, 2020 was RMB487.2
million (US$69.0 million).
Net loss and comprehensive loss attributable to Weidai Ltd.'s
ordinary shareholders in the six months ended June 30, 2020 was RMB484.3
million (US$68.6 million).
Adjusted net loss in the six months ended June 30, 2020 was RMB491.3
million (US$69.5 million).
Regulatory Developments
2020 is a year of comprehensive transformation for the
marketplace lending industry. According to a series of regulatory
documents and guidance issued by the PRC government at the end of
2019, including the Guidance on the Transformation of Online
Lending Information Intermediary Institutions into Pilot Micro
Credit Companies, the peer-to-peer industry is faced with full
exiting and transformation requirement.
Due to the regulatory and industry development and in order to
promote a smooth exit of peer-to-peer investments, ensure the
business and operational continuity of the Company and
protect the rights and interests of investors, the government
issued an official notification with respect to the Company's
peer-to-peer operation. Since July
2020, Weidai has been cooperating closely with local
government authority in its business operation. Under the
supervision of the government authority, the Company's
organizational structure is stable and the daily operation of the
Company is in order. Particularly, all loan collection related work
is carried out as usual and interests and principals are repaid by
borrowers as scheduled. Our business operation is subject to
further instruction from the government authority.
Weidai will continue to cooperate with government authorities
and actively carry out loan collection related work. Weidai would
like to convey its sincere gratitude to investors for their
trust and support in the past.
In addition, the recently announced Guideline on Laws Applicable
to Trials of Private Lending Cases by the Supreme People's Court of
China set a new legally protected
interest rate cap for private lending. This new guideline indicates
that the overall interest rate in the PRC will gradually trend
lower in the intermediate term. The Company will make timely
adjustment to its operations to comply with the evolving regulatory
requirements. Furthermore, the Interim Measures for the
Administration of Internet Loans issued by Commercial Banks, which
became effective on July 17, 2020,
provide clear guidelines for the cooperation between financial
institutions and marketplace lending platforms, and offer policy
support to the long-term, healthy and steady development of the
marketplace lending industry. Going forward, the Company plans to
focus on financial institutions as the primary funding
source and market its financial service solutions to banks and
other credit intermediaries.
Use of Non-GAAP Financial Measures
The Company uses adjusted net income/(loss), a non-GAAP
financial measure, in evaluating its operating results and for
financial and operational decision-making purposes. The Company
believes that adjusted net income/(loss) helps identify underlying
trends in its business by excluding the impact of share-based
compensation expenses/(benefits). The Company believes that
adjusted net income/(loss) provides useful information about its
operating results, enhances the overall understanding of its past
performance and future prospects and allows for greater visibility
with respect to key metrics used by the Company's management in its
financial and operational decision-making.
Adjusted net income/(loss) is not defined under U.S. GAAP and is
not presented in accordance with U.S. GAAP. This non-GAAP financial
measure has limitations as an analytical tool, and when assessing
the Company's operating performance, cash flows or liquidity,
investors should not consider it in isolation, or as a substitute
for net income/(loss), cash flows provided by operating activities
or other consolidated statements of operation and cash flow data
prepared in accordance with U.S. GAAP. The Company encourages
investors and others to review its financial information in its
entirety and not rely on a single financial measure.
For more information on this non-GAAP financial measure, please
see the table captioned "Reconciliations of GAAP and Non-GAAP
results" set forth at the end of this press release.
About Weidai Ltd.
Weidai Ltd. is a pioneer and leading auto-backed financing
solution provider in China
supported by sophisticated and effective risk management system and
technology. The Company transforms used automobiles, a type of
"non-standard" collateral, into investable assets, to provide
accessible credit for China's
small and micro enterprises, and connects the borrowers with
institutional funding partners through its platform.
For more information, please visit
http://weidai.investorroom.com/.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars at a specified rate solely for the convenience of
the reader. Unless otherwise noted, all translations from RMB
to U.S. dollars are made at a rate of RMB7.0651 to US$1.00, the noon buying rate on June 30, 2020 set forth in the H.10 statistical
release of the U.S. Federal Reserve Board.
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. Weidai
may also make written or oral forward-looking statements in its
periodic reports to the SEC, in its annual report to shareholders,
in press releases and other written materials and in oral
statements made by its officers, directors or employees to third
parties. Statements that are not historical facts, including
statements about Weidai's beliefs and expectations, are
forward-looking 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 the Company'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 the following: Weidai's
goal and strategies; Weidai's expansion plans; Weidai's future
business development, financial condition and results of
operations; Weidai's expectations regarding demand for, and market
acceptance of, its solutions and services; Weidai's expectations
regarding keeping and strengthening its relationships with
borrowers, investors and financial institutions and other platform
participants; general economic and business conditions; Weidai's
assumptions underlying or related to any of the foregoing
regulations and governmental policies relating to the online
consumer finance industry in China; and Weidai's ability to meet the
standards necessary to maintain listing of its ADSs on the NYSE,
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 the Company'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 Weidai 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.
For investor and media inquiries, please contact:
In China:
Christensen
Mr. Rene Vanguestaine
Tel: +86-10-5900-1548
E-mail: rvanguestaine@christensenir.com
In US:
Christensen
Ms. Linda Bergkamp
Tel: +1-480-614-3004
E-mail: lbergkamp@christensenir.com
WEIDAI
LTD.
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(All amounts in
thousands, except share data, or otherwise noted)
|
|
|
As of June
30,
|
|
2020
|
|
RMB
|
US$
|
|
(in
thousands)
|
|
|
|
ASSETS
Current
assets:
|
|
|
Cash and cash
equivalents
|
945,529
|
133,831
|
Restricted
cash
|
505,067
|
71,488
|
Loans and advances,
net
|
1,131,202
|
160,111
|
Prepaid expenses and
other assets
|
549,875
|
77,830
|
Amounts due from
related parties
|
20,697
|
2,929
|
Total current
assets
|
3,152,370
|
446,189
|
Non-current
assets:
|
|
|
Long-term
investments
|
13,574
|
1,921
|
Loans and advances,
net
|
5,379
|
761
|
Prepaid expenses and
other assets
|
12,810
|
1,813
|
Property, equipment
and software, net
|
47,947
|
6,786
|
Goodwill
|
5,812
|
823
|
Deferred tax
assets
|
605,390
|
85,687
|
Total non-current
assets
|
690,912
|
97,791
|
Total
assets
|
3,843,282
|
543,980
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
Current
liabilities (including current liabilities of the
consolidated variable interest entities and subsidiaries
without recourse to the primary beneficiary of
RMB1,733,065 (US$245,299) as of June 30,
2020):
|
|
|
Payable to
institutional funding partners and online
investors
|
148,404
|
21,005
|
Current account with
online investors and borrowers.
|
571,451
|
80,884
|
Income tax
payable
|
276,406
|
39,123
|
Accrued expenses and
other liabilities
|
738,652
|
104,548
|
Amounts due to
related parties
|
2,397
|
339
|
Contract
liabilities
|
209,970
|
29,719
|
Total current
liabilities
|
1,947,280
|
275,618
|
Non-current
liabilities (including non-current liabilities
of the consolidated variable interest entities and
subsidiaries without recourse to the primary
beneficiary of RMB109,341 (US$15,476) as of June
30, 2020):
|
|
|
Payable to
institutional funding partners and online
investors
|
5,690
|
805
|
Contract
liabilities
|
103,651
|
14,671
|
Total non-current
liabilities
|
109,341
|
15,476
|
Total
liabilities
|
2,056,621
|
291,094
|
|
|
|
Shareholders'
equity
|
|
|
Class A ordinary
shares (par value of US$0.000002 per
share; 35,390,055 shares issued and outstanding as of
June 30, 2020)
|
-
|
-
|
Class B ordinary
shares (par value of US$0.000002 per
share; 35,071,400 shares issued and outstanding as of
June 30, 2020)
|
1
|
-
|
Additional paid-in
capital
|
1,231,674
|
174,332
|
Accumulated other
comprehensive loss
|
(2,510)
|
(355)
|
Retained
earnings
|
554,002
|
78,414
|
Total Weidai Ltd.
shareholders' equity
|
1,783,167
|
252,391
|
Noncontrolling
interests
|
3,494
|
495
|
Total
shareholders' equity
|
1,786,661
|
252,886
|
TOTAL LIABILITIES
AND SHAREHOLDERS'
EQUITY
|
3,843,282
|
543,980
|
Weidai
Ltd.
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
(All amounts in
thousands, except share data, or otherwise noted)
|
|
|
Six Months
Ended
June 30,
2020
|
|
RMB
|
US$
|
|
(in thousands,
except for share, per share and per ADS data)
|
|
|
Net
revenues:
|
|
|
Loan service
fee
|
758,309
|
107,332
|
Other
revenues
|
64,322
|
9,104
|
Financing
income
|
89,458
|
12,662
|
Less: Funding
costs
|
(36,447)
|
(5,159)
|
Net financing
income
|
53,011
|
7,503
|
Business related taxes
and surcharges
|
(1,750)
|
(248)
|
Total net
revenues
|
873,892
|
123,691
|
Provision for loans and
advances
|
(639,230)
|
(90,477)
|
Net revenues after
provision for loans and
advances
|
234,662
|
33,214
|
|
|
|
Operating costs and
expenses:
|
|
|
Provision for financial
guarantee liabilities
|
(73,801)
|
(10,446)
|
Origination and
servicing
|
(402,364)
|
(56,951)
|
Sales and
marketing
|
(43,695)
|
(6,185)
|
General and
administrative
|
(66,240)
|
(9,376)
|
Research and
development
|
(16,972)
|
(2,402)
|
Total operation
costs and expenses
|
(603,072)
|
(85,360)
|
|
|
|
Loss from
operations
|
(368,410)
|
(52,146)
|
Interest income,
net
|
19,753
|
2,796
|
Government
subsidies
|
4,145
|
587
|
Other income,
net
|
239
|
34
|
Net loss before
income taxes
|
(344,273)
|
(48,729)
|
Income tax
expenses
|
(142,954)
|
(20,234)
|
Net
loss
|
(487,227)
|
(68,963)
|
Net loss attributable
to noncontrolling
interests
|
2,906
|
411
|
Net loss and
comprehensive loss
attributable to Weidai Ltd.'s ordinary
shareholders
|
(484,321)
|
(68,552)
|
Earnings per
share:
|
|
|
Basic
|
(6.87)
|
(0.97)
|
Diluted
|
(6.87)
|
(0.97)
|
Shares used in
earnings per share
computation:
|
|
|
Basic
|
70,461,455
|
70,461,455
|
Diluted
|
70,461,455
|
70,461,455
|
Weidai
Ltd.
|
Reconciliation
of GAAP And Non-GAAP Results
|
(All amounts in
thousands, except share data, or otherwise noted)
|
|
|
Six Months
Ended
June 30,
2020
|
|
RMB
|
US$
|
|
(in thousands,
except for share, per share and per ADS data)
|
|
|
|
Net
loss
|
(487,227)
|
(68,963)
|
Add:
|
|
|
Share-based
compensation benefits
|
(4,078)
|
(577)
|
Adjusted net
loss
|
(491,305)
|
(69,540)
|
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SOURCE Weidai Ltd.