Exhibit 99.1
Yirendai Reports Second Quarter 2016 Financial Results
BEIJING, August 9, 2016 – Yirendai Ltd. (NYSE: YRD) (“Yirendai” or the “Company”), a leading online consumer finance marketplace in China, today announced its unaudited financial results for the quarter ended June 30, 2016.
Starting from the second quarter of 2016, the Company changed its reporting currency from the U.S. dollar (“US$”) to the Renminbi (“RMB”), to reduce the impact of increased volatility of the RMB to US$ exchange rate on the Company’s reported operating results. The aligning of the reporting currency with the underlying operations will better depict the Company’s results of operations for each period. This release contains translations of certain RMB amounts into US$ for convenience1. Prior period numbers have been recast into the new reporting currency.
For the second quarter of 2016, Yirendai facilitated RMB 4,538.7 million (US$682.9 million) of loans to qualified individual borrowers on its online marketplace, representing a 118% year-over-year growth, with more than 40% of the loans being originated from online channel; recognized total net revenue of RMB 733.8 million (US$110.4 million), up 140% from the same period in 2015 and recognized net income of RMB 260.6 million (US$39.2 million), representing an increase of 226% from the second quarter of 2015.
In the second quarter of 2016, Yirendai facilitated 196,059 investors with total investment amount of RMB 5,246.0 million (US$789.4 million), 100% of which was conducted through its online platform and 78% of which was conducted through its mobile application.
| | | For Three Months Ended | |
| in RMB million | | June 30, 2016 | | | March 31, 2016 | | | Change | | | June 30, 2015 | | | Change | |
| Amount of Loans Facilitated | | | 4,538.7 | | | | 3,446.5 | | | | 32 | % | | | 2,084.0 | | | | 118 | % |
| Total Net Revenue | | | 733.8 | | | | 556.4 | | | | 32 | % | | | 306.2 | | | | 140 | % |
| Total Fees Billed (non-GAAP) | | | 1,110.8 | | | | 847.4 | | | | 31 | % | | | 480.9 | | | | 131 | % |
| Net Income | | | 260.6 | | | | 131.7 | | | | 98 | % | | | 80.0 | | | | 226 | % |
| EBITDA (non-GAAP) | | | 265.0 | | | | 206.6 | | | | 28 | % | | | 111.6 | | | | 138 | % |
“We’re pleased to see continued momentum of robust business growth supported by our well-recognized brand, expanded product offering, and improved customer experience,” said Ms. Yihan Fang, Chief Executive Officer of Yirendai. “At the same time, we have continued to strengthen our financial technology capabilities to enhance our competitive advantages. In June, we announced the appointment of Mr. Yang Cao as COO and CTO to lead our technology, product and engineering divisions and oversee business operations. As we keep solidifying our market leadership, we intend to broaden Yirendai’s business scope towards more comprehensive and integrated financial services. We believe these efforts and initiatives will be important pillars for our sustainable business growth.”
1 Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.6459 to US$1.00, the effective noon buying rate for June 30, 2016 as set forth in the H.10 statistical release of the Federal Reserve Board.
“Our solid second quarter 2016 results were primarily attributable to the strong market demand for our products and services. In this quarter, our loan facilitation volume and total net revenue reached new record high while operating expenses and asset performance remained under control,” said Mr. Dennis Cong, Chief Financial Officer of Yirendai. “As the regulation-led industry consolidation accelerates, we are seeing more business opportunities for Yirendai as a market leader. We will continue to expand our business in a disciplined manner and create value for all stakeholders.”
Second Quarter 2016 Financial Results
Total amount of loans facilitated in the second quarter of 2016 was RMB 4,538.7 million (US$682.9 million), increased by 118% year-over-year from RMB 2,084.0 million in the same period of 2015, reflecting strong demand for our products and services. As of June 30, 2016, the Yirendai platform had facilitated approximately RMB 20.0 billion in loan principal since its inception.
Total net revenuein the second quarter of 2016 was RMB 733.8 million (US$110.4 million), increased by 140% from RMB 306.2 million in the same period of 2015. The increase of total net revenue was mainly attributable to the growth of loan origination volume and change of product mix on the platform.
Total fees billed (non-GAAP) in the second quarter of 2016 were RMB 1,110.8 million (US$167.1 million), increased by 131% from RMB 480.9 million in the same period of 2015 driven by the growth of loan origination volume and change of product mix on the platform.
Operating costs and expenses in the second quarter of 2016 were RMB 471.2 million (US$70.9 million), compared to RMB 195.3 million in the same period of 2015. The increase in operating costs and expenses was in line with our net revenue growth.
Net income in the second quarter of 2016 was RMB 260.6 million (US$39.2 million), increased by 226% from RMB 80.0 million in the same period of 2015.
EBITDA (non-GAAP) in the second quarter of 2016 was RMB 265.0 million (US$39.9 million), increased by 138% from RMB 111.6 million in the same period of 2015. The significant increase of EBITDA was primarily due to the substantial growth of loan origination volume and revenue.
Basic and diluted income per share in the second quarter of 2016 was RMB 2.23 (US$0.34), increased by 98% from RMB 1.13 in the previous quarter and 178% from RMB 0.80 in the same period of 2015.
Basic and diluted income per ADS in the second quarter of 2016 was RMB 4.46 (US$0.67), increased by 98% from RMB 2.25 in the previous quarter and 178% from RMB 1.60 in the same period of 2015.
As of June 30, 2016, cash & cash equivalentsexcluding risk reserve fund balance was RMB 1,336.3 million (US$201.1 million), increased by 20% from RMB 1,110.0 million as of March 31, 2016.
Net cash generated from operating activities in the second quarter of 2016 was RMB 196.1 million (US$29.5 million), compared to RMB 322.0 million in the previous quarter.
Risk Reserve Fund.In the second quarter of 2016, Yirendai set aside in the risk reserve fund an amount of RMB 317.7 million (US$47.8 million), which is equal to 7% of the loans facilitated through its marketplace during the period. In the second quarter of 2016, the Company made payments in a total amount of RMB 155.8 million (US$23.4 million) out of the risk reserve fund to pay out the outstanding principal and accrued interest of default loans. As of June 30, 2016, restricted cash balance associated with the risk reserve fund was RMB 755.2 million (US$113.6 million), compare to RMB 593.3 million as of March 31, 2016.
Delinquency rates. As of June 30, 2016, the overall delinquency rate for loans that are 15-89 days past due was 1.7%, improved from 1.8% as of March 31, 2016, as we see stable asset performance and continued growth of our loan portfolio.
Charge off rates. As of June 30, 2016, the charge-off rates for Grade A, B, C, and D loans originated in 2015 were 4.5%, 4.5%, 5.7% and 4.2%, respectively, compared to 3.4%, 2.9%, 3.2% and 2.5% as of March 31, 2016. As the 2015 vintage loans continued to mature, the charge off level is within our risk performance expectation.
Other Operating Metrics and Business Results
| Ÿ | As of June 30, 2016, Yirendai had facilitated RMB 20.0 billion (US$3.0 billion) of loans on the Yirendai online marketplace since its inception in 2012. |
| Ÿ | As of June 30, 2016, remaining principal of performing loans2 totaled RMB 13.8 billion (US$2.1 billion), increased by 25% from RMB 11.0 billion as of March 31, 2016 and 178% from RMB 5.0 billion as of June 30, 2015. |
| Ÿ | In the second quarter of 2016, the Yirendai platform facilitated loans for 68,882 borrowers, 58% of whom were acquired from online channels; 39.2% of the loans were facilitated through its mobile application. |
| Ÿ | In the second quarter of 2016, the Yirendai platform facilitated loans for 196,059 investors, 100% of whom were acquired from online channels, with annual returns ranging from 5.6% to 11.25%. |
| Ÿ | In the second quarter of 2016, loans made to Grade A, B, C, and D borrowers represented 5.5%, 3.8%, 7.6% and 83.1% of the Company’s product portfolio, respectively. |
Recent Business Development
| Ÿ | On June 13, 2016, Yirendai announced the appointment of Mr. Yang Cao to the positions of chief operating officer and chief technology officer, who will lead the Company’s technology, product and engineering divisions and oversee business operations including customer acquisition, business development and product marketing. |
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.
2 Performing loans refer to loans on which payments of interest and principal are less than 90 days past due.
Third Quarter 2016
| Ÿ | Total loans facilitatedwill be in the range of RMB 5,200 million to RMB 5,400 million (US$782 million to US$813 million) |
| Ÿ | Total net revenue will be in the range of RMB 800 million to RMB 850 million (US$120 million to US$128 million) |
| Ÿ | EBITDA (non-GAAP) in the range of RMB 140 million to RMB 160 million (US$21 million to US$24 million) |
Full Year 2016
| Ÿ | Total loans facilitated will be in the range of RMB 19,000 million to RMB 20,000 million (US$2,859 million to US$3,009 million), representing an increase of 2% to 4% from its original business outlook of US$2,800 million to US$2,900 million |
| Ÿ | Total net revenue will be in the range of RMB 3,000 million to RMB 3,100 million (US$451 million to US$466 million), representing an increase of 13% to 14% from its original business outlook of US$400 million to US$410 million |
| Ÿ | EBITDA (non-GAAP) will be in the range of RMB 800 million to RMB 850 million (US$120 million to US$128 million), representing an increase of 20% to 22% from its original business outlook of US$100 million to US$105 million |
Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses two non-GAAP financial measures, fees billed and EBITDA, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See “Operating Highlights and Reconciliation of GAAP to Non-GAAP measures” at the end of this press release.
Currency Conversion
Effective April 1, 2016, the Company changed its reporting currency from US$ to RMB. The change in reporting currency is to reduce the impact of increased volatility of the RMB to the US$ exchange rate on the Company’s reported operating results. The aligning of the reporting currency with the underlying operations will better depict the Company’s results of operations for each period. Prior to April 1, 2016, the Company reported its annual and quarterly consolidated statement of operations, cash flow data and balance sheet in US$. In this announcement, the unaudited financial results for the quarter ended June 30, 2016 are stated in RMB. The related financial statements prior to April 1, 2016 have been recast to reflect RMB as the reporting currency for comparison to the financial results for the quarter ended June 30, 2016.
This announcement contains currency conversions of certain RMB amounts into US$ 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 RMB6.6459 to US$1.00, the effective noon buying rate for June 30, 2016 as set forth in the H.10 statistical release of the Federal Reserve Board.
Conference Call
Yirendai will host a conference call to discuss about its second quarter 2016 financial results at 8:00 AM U.S. Eastern Time on August 10, 2016, which corresponds to 8:00 PM Beijing/Hong Kong time on the same day.
The dial-in details for the live 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 will be available until August 17, 2016 by dialing:
| International: | 1-412-317-0088 |
| U.S. Toll Free: | 1-877-344-7529 |
| Replay Access Code: | 10090194 |
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 online consumer finance marketplace 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 visityirendai.investorroom.com.
For investor and media inquiries, please contact:
Yirendai
Hui (Matthew) Li
Director of Investor Relations
Email: matthewli@yirendai.com
Christensen IR
In China
Christian Arnell
Phone: +86 (0) 10-59001548
Email: carnell@christensenir.com
In U.S.
Linda Bergkamp
Phone: +1 (480) 614-3004
Email: lbergkamp@christensenir.com
Unaudited Condensed Consolidated Statement 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,
2015 | | | March 31,
2016 | | | June 30,
2016 | | | June 30,
2016 | | | June 30,
2015 | | | June 30,
2016 | | | June 30,
2016 | |
| | | RMB | | | RMB | | | RMB | | | USD | | | RMB | | | RMB | | | USD | |
| Net revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loan facilitation services | | | 298,818 | | | | 535,087 | | | | 713,383 | | | | 107,341 | | | | 480,309 | | | | 1,248,470 | | | | 187,856 | |
| Post-origination services | | | 5,852 | | | | 18,397 | | | | 17,232 | | | | 2,593 | | | | 8,829 | | | | 35,629 | | | | 5,361 | |
| Others | | | 1,529 | | | | 2,895 | | | | 3,176 | | | | 478 | | | | 2,225 | | | | 6,071 | | | | 913 | |
| Total net revenue | | | 306,199 | | | | 556,379 | | | | 733,791 | | | | 110,412 | | | | 491,363 | | | | 1,290,170 | | | | 194,130 | |
| Operating costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales and marketing | | | 151,302 | | | | 254,836 | | | | 355,246 | | | | 53,453 | | | | 254,306 | | | | 610,082 | | | | 91,798 | |
| Origination and servicing | | | 18,849 | | | | 36,754 | | | | 42,653 | | | | 6,418 | | | | 31,597 | | | | 79,407 | | | | 11,948 | |
| General and administrative | | | 25,195 | | | | 60,106 | | | | 73,330 | | | | 11,034 | | | | 57,706 | | | | 133,436 | | | | 20,078 | |
| Total operating costs and expenses | | | 195,346 | | | | 351,696 | | | | 471,229 | | | | 70,905 | | | | 343,609 | | | | 822,925 | | | | 123,824 | |
| Interest income | | | 182 | | | | 5,034 | | | | 7,253 | | | | 1,091 | | | | 250 | | | | 12,287 | | | | 1,849 | |
| Non operating income, net | | | - | | | | - | | | | 91 | | | | 14 | | | | - | | | | 91 | | | | 14 | |
| Income before provision for income taxes | | | 111,035 | | | | 209,717 | | | | 269,906 | | | | 40,612 | | | | 148,004 | | | | 479,623 | | | | 72,169 | |
| Income tax expense | | | 31,004 | | | | 78,001 | | | | 9,286 | | | | 1,397 | | | | 40,399 | | | | 87,287 | | | | 13,134 | |
| Net income | | | 80,031 | | | | 131,716 | | | | 260,620 | | | | 39,215 | | | | 107,605 | | | | 392,336 | | | | 59,035 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Weighted average number of ordinary shares used in computing basic and diluted net income per share | | | 100,000,000 | | | | 117,000,000 | | | | 117,000,000 | | | | 117,000,000 | | | | 100,000,000 | | | | 117,000,000 | | | | 117,000,000 | |
| Basic and diluted income per share | | | 0.8003 | | | | 1.1258 | | | | 2.2275 | | | | 0.3352 | | | | 1.0761 | | | | 3.3533 | | | | 0.5046 | |
| Basic and diluted income per ADS | | | 1.6006 | | | | 2.2516 | | | | 4.4550 | | | | 0.6704 | | | | 2.1522 | | | | 6.7066 | | | | 1.0092 | |
Unaudited Condensed Consolidated Cash Flow Data
(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,
2015 | | | March 31,
2016 | | | June 30,
2016 | | | June 30,
2016 | | | June 30,
2015 | | | June 30,
2016 | | | June 30,
2016 | |
| | | RMB | | | RMB | | | RMB | | | USD | | | RMB | | | RMB | | | USD | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net cash generated from operating activities | | | 102,580 | | | | 322,017 | | | | 196,108 | | | | 29,508 | | | | 113,978 | | | | 518,125 | | | | 77,961 | |
| Net cash (used in)/provided by investing activities | | | (3,186 | ) | | | (39,844 | ) | | | 105,411 | | | | 15,861 | | | | (5,072 | ) | | | 65,567 | | | | 9,866 | |
| Net cash used in financing activities | | | - | | | | (16,409 | ) | | | (87,914 | ) | | | (13,228 | ) | | | - | | | | (104,323 | ) | | | (15,697 | ) |
| Effect of foreign exchange rate changes | | | (78 | ) | | | (1,893 | ) | | | 12,733 | | | | 1,916 | | | | (78 | ) | | | 10,840 | | | | 1,631 | |
| Net increase in cash and cash equivalents | | | 99,316 | | | | 263,871 | | | | 226,338 | | | | 34,057 | | | | 108,828 | | | | 490,209 | | | | 73,761 | |
| Cash and cash equivalents, beginning of period | | | 10,890 | | | | 846,120 | | | | 1,109,991 | | | | 167,019 | | | | 1,378 | | | | 846,120 | | | | 127,315 | |
| Cash and cash equivalents, end of period | | | 110,206 | | | | 1,109,991 | | | | 1,336,329 | | | | 201,076 | | | | 110,206 | | | | 1,336,329 | | | | 201,076 | |
Unaudited Condensed Consolidated Balance Sheet
(in thousands, except for share, per share and per ADS data, and percentages)
| | | As of | |
| | | June 30,
2015 | | | March 31,
2016 | | | June 30,
2016 | | | June 30,
2016 | |
| | | RMB | | | RMB | | | RMB | | | USD | |
| | | | | | | | | | | | | |
| Cash and cash equivalents | | | 110,206 | | | | 1,109,991 | | | | 1,336,329 | | | | 201,076 | |
| Restricted cash | | | 208,816 | | | | 650,167 | | | | 792,637 | | | | 119,267 | |
| Accounts receivable | | | 121,002 | | | | 66,090 | | | | 50,496 | | | | 7,598 | |
| Prepaid expenses and other assets | | | 403,012 | | | | 235,401 | | | | 272,977 | | | | 41,074 | |
| Loans at fair value | | | - | | | | 199,358 | | | | 175,614 | | | | 26,424 | |
| Amounts due from related parties | | | 81,684 | | | | 95,792 | | | | 105,809 | | | | 15,921 | |
| Short-term investments | | | - | | | | 32,500 | | | | 2,500 | | | | 376 | |
| Property, equipment and software, net | | | 7,268 | | | | 20,269 | | | | 22,281 | | | | 3,353 | |
| Deferred tax asset | | | 70,485 | | | | 225,655 | | | | 282,700 | | | | 42,538 | |
| Total assets | | | 1,002,473 | | | | 2,635,223 | | | | 3,041,343 | | | | 457,627 | |
| Accounts payable | | | 412 | | | | 9,572 | | | | 5,176 | | | | 779 | |
| Amounts due to related parties | | | 52,716 | | | | 14,289 | | | | 18,799 | | | | 2,829 | |
| Liabilities from risk reserve fund service | | | 245,863 | | | | 720,861 | | | | 928,166 | | | | 139,660 | |
| Deferred revenue | | | 24,471 | | | | 132,252 | | | | 141,330 | | | | 21,266 | |
| Payable to investors/ the Fund, at fair value | | | - | | | | 257,354 | | | | 166,193 | | | | 25,007 | |
| Accrued expenses and other liabilities | | | 348,015 | | | | 394,129 | | | | 401,560 | | | | 60,421 | |
| Total liabilities | | | 671,477 | | | | 1,528,457 | | | | 1,661,224 | | | | 249,962 | |
| Ordinary shares | | | 62 | | | | 73 | | | | 73 | | | | 12 | |
| Additional paid-in capital | | | 313,819 | | | | 791,841 | | | | 791,841 | | | | 119,147 | |
| Retained earnings | | | 17,193 | | | | 316,643 | | | | 577,263 | | | | 86,860 | |
| Accumulated other comprehensive (loss)/ income | | | (78 | ) | | | (1,791 | ) | | | 10,942 | | | | 1,646 | |
| Total equity | | | 330,996 | | | | 1,106,766 | | | | 1,380,119 | | | | 207,665 | |
| Total liabilities and equity | | | 1,002,473 | | | | 2,635,223 | | | | 3,041,343 | | | | 457,627 | |
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,
2015 | | | March 31,
2016 | | | June 30,
2016 | | | June 30,
2016 | | | June 30,
2015 | | | June 30,
2016 | | | June 30,
2016 | |
| | | RMB | | | RMB | | | RMB | | | USD | | | RMB | | | RMB | | | USD | |
| Operating Highlights: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Amount of loans facilitated | | | 2,083,975 | | | | 3,446,516 | | | | 4,538,687 | | | | 682,930 | | | | 3,704,745 | | | | 7,985,203 | | | | 1,201,524 | |
| Loans generated from online channels | | | 578,164 | | | | 1,175,382 | | | | 1,832,078 | | | | 275,670 | | | | 1,189,978 | | | | 3,007,460 | | | | 452,529 | |
| Loans generated from offline channels | | | 1,505,811 | | | | 2,271,134 | | | | 2,706,609 | | | | 407,260 | | | | 2,514,767 | | | | 4,977,743 | | | | 748,995 | |
| Fees billed | | | 480,904 | | | | 847,413 | | | | 1,110,849 | | | | 167,147 | | | | 792,736 | | | | 1,958,262 | | | | 294,657 | |
| Remaining principal of performing loans | | | 4,957,195 | | | | 11,026,236 | | | | 13,771,180 | | | | 2,072,132 | | | | 4,957,195 | | | | 13,771,180 | | | | 2,072,132 | |
| Number of borrowers | | | 34,568 | | | | 50,542 | | | | 68,882 | | | | 68,882 | | | | 62,131 | | | | 119,305 | | | | 119,305 | |
| Borrowers from online channels | | | 15,319 | | | | 27,902 | | | | 40,033 | | | | 40,033 | | | | 30,384 | | | | 67,849 | | | | 67,849 | |
| Borrowers from offline channels | | | 19,249 | | | | 22,640 | | | | 28,849 | | | | 28,849 | | | | 31,747 | | | | 51,456 | | | | 51,456 | |
| Number of investors | | | 44,000 | | | | 203,131 | | | | 196,059 | | | | 196,059 | | | | 59,617 | | | | 356,259 | | | | 356,259 | |
| Investors from online channels | | | 38,399 | | | | 203,131 | | | | 196,059 | | | | 196,059 | | | | 50,193 | | | | 356,259 | | | | 356,259 | |
| Investors from offline channels | | | 5,601 | | | | - | | | | - | | | | - | | | | 9,424 | | | | - | | | | - | |
| EBITDA | | | 111,551 | | | | 206,613 | | | | 264,962 | | | | 39,868 | | | | 148,978 | | | | 471,575 | | | | 70,958 | |
| EBITDA margin | | | 36.4 | % | | | 37.1 | % | | | 36.1 | % | | | 36.1 | % | | | 30.3 | % | | | 36.6 | % | | | 36.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reconciliation of Net Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fees billed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Transaction fees billed to borrowers | | | 491,763 | | | | 836,896 | | | | 1,095,749 | | | | 164,876 | | | | 811,254 | | | | 1,932,645 | | | | 290,803 | |
| Service fees billed to investors | | | 17,333 | | | | 64,552 | | | | 88,068 | | | | 13,251 | | | | 25,322 | | | | 152,620 | | | | 22,964 | |
| Others | | | 1,621 | | | | 3,069 | | | | 3,366 | | | | 506 | | | | 2,352 | | | | 6,435 | | | | 968 | |
| Value-added tax | | | (29,813 | ) | | | (57,104 | ) | | | (76,334 | ) | | | (11,486 | ) | | | (46,192 | ) | | | (133,438 | ) | | | (20,078 | ) |
| Total fees billed | | | 480,904 | | | | 847,413 | | | | 1,110,849 | | | | 167,147 | | | | 792,736 | | | | 1,958,262 | | | | 294,657 | |
Stand-ready liabilities associated with
risk reserve fund | | | (145,878 | ) | | | (275,721 | ) | | | (363,095 | ) | | | (54,634 | ) | | | (259,332 | ) | | | (638,816 | ) | | | (96,122 | ) |
| Deferred revenue | | | (13,762 | ) | | | (20,366 | ) | | | (15,857 | ) | | | (2,386 | ) | | | (25,939 | ) | | | (36,223 | ) | | | (5,450 | ) |
| Cash incentives | | | (24,101 | ) | | | (11,707 | ) | | | (19,556 | ) | | | (2,943 | ) | | | (31,263 | ) | | | (31,263 | ) | | | (4,704 | ) |
| Value-added tax | | | 9,036 | | | | 16,760 | | | | 21,450 | | | | 3,228 | | | | 15,161 | | | | 38,210 | | | | 5,749 | |
| Net revenues | | | 306,199 | | | | 556,379 | | | | 733,791 | | | | 110,412 | | | | 491,363 | | | | 1,290,170 | | | | 194,130 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reconciliation of EBITDA | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | 80,031 | | | | 131,716 | | | | 260,620 | | | | 39,215 | | | | 107,605 | | | | 392,336 | | | | 59,035 | |
| Interest income | | | (182 | ) | | | (5,034 | ) | | | (7,253 | ) | | | (1,091 | ) | | | (250 | ) | | | (12,287 | ) | | | (1,849 | ) |
| Income tax expense | | | 31,004 | | | | 78,001 | | | | 9,286 | | | | 1,397 | | | | 40,399 | | | | 87,287 | | | | 13,134 | |
| Depreciation and amortization | | | 698 | | | | 1,930 | | | | 2,309 | | | | 347 | | | | 1,224 | | | | 4,239 | | | | 638 | |
| EBITDA | | | 111,551 | | | | 206,613 | | | | 264,962 | | | | 39,868 | | | | 148,978 | | | | 471,575 | | | | 70,958 | |
| 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 | % |
| March 31, 2016 | | | 0.5 | % | | | 0.8 | % | | | 0.5 | % |
| June 30, 2016 | | | 0.5 | % | | | 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 | % |
| March 31, 2016 | | | 0.6 | % | | | 1.2 | % | | | 0.8 | % |
| June 30, 2016 | | | 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 | % |
| March 31, 2016 | | | 0.5 | % | | | 0.7 | % | | | 0.4 | % |
| June 30, 2016 | | | 0.5 | % | | | 0.6 | % | | | 0.4 | % |
| Net Charge-Off Rate |
Loan
issued
period | | Pricing grade | | Amount of loans
facilitated during the
period | | | Accumulated M3+ Net
Charge-Off as of June 30,
2016 | | | Total Net Charge-Off
Rate as of June 30, 2016 | |
| | | | | (in RMB thousands) | | | (in RMB thousands) | | | | |
| 2013 | | A | | | 258,322 | | | | 23,481 | | | | 9.1 | % |
| | | B | | | - | | | | - | | | | - | |
| | | C | | | - | | | | - | | | | - | |
| | | D | | | - | | | | - | | | | - | |
| | | Total | | | 258,322 | | | | 23,481 | | | | 9.1 | % |
| 2014 | | A | | | 1,917,542 | | | | 103,003 | | | | 5.4 | % |
| | | B | | | 303,030 | | | | 18,408 | | | | 6.1 | % |
| | | C | | | - | | | | - | | | | - | |
| | | D | | | 7,989 | | | | 548 | | | | 6.9 | % |
| | | Total | | | 2,228,561 | | | | 121,959 | | | | 5.5 | % |
| 2015 | | A | | | 873,995 | | | | 39,232 | | | | 4.5 | % |
| | | B | | | 419,630 | | | | 18,766 | | | | 4.5 | % |
| | | C | | | 557,414 | | | | 32,025 | | | | 5.7 | % |
| | | D | | | 7,706,575 | | | | 326,535 | | | | 4.2 | % |
| | | Total | | | 9,557,613 | | | | 416,558 | | | | 4.4 | % |
| 1H 2016 | | A | | | 435,253 | | | | 75 | | | | 0.0 | % |
| | | B | | | 275,601 | | | | 117 | | | | 0.0 | % |
| | | C | | | 603,093 | | | | 574 | | | | 0.1 | % |
| | | D | | | 6,671,256 | | | | 9,073 | | | | 0.1 | % |
| | | Total | | | 7,985,203 | | | | 9,839 | | | | 0.1 | % |
