YIREN DIGITAL LTD. 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 June September QoQ YoY
30, 2017 30, 2017 30, 2016 Change 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 margin(1 )(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 June 30, September September September September September
30, 2016 2017 30, 2017 30, 2017 30, 2016 30, 2017 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 119,441,029 119,603,286 121,249,448 121,249,448 117,819,616 120,167,235 120,167,235
outstanding, basic
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 120,861,971 120,833,406 123,509,834 123,509,834 118,293,263 121,757,910 121,757,910
outstanding, diluted
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 (48,359) 333,213 545,869 82,045 750,522 967,280 145,383
cash
Cash, cash equivalents and restricted cash, beginning 2,128,966 2,274,709 2,607,922 391,974 1,330,085 2,186,511 328,636
of period
Cash, cash equivalents and restricted cash, end of 2,080,607 2,607,922 3,153,791 474,019 2,080,607 3,153,791 474,019
period
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 June 30, September September September September September
30, 2016 2017 30, 2017 30, 2017 30, 2016 30, 2017 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 16,204,583 27,502,314 33,622,142 5,053,454 16,204,583 33,622,142 5,053,454
covered by quality assurance program and
guarantee
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 (430,569) (655,167) (896,155) (134,694) (1,069,386) (2,105,138) (316,405)
quality assurance program
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 Loan grade Amount of loans Accumulated M3+ Net Total Net Charge-Off
period facilitated during the Charge-Off as of Rate as of September 30,
period September 30, 2017 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 Customer Amount of loans Accumulated M3+ Net Total Net Charge-Off
period grade facilitated during the Charge-Off as of Rate as of September 30,
period September 30, 2017 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 Month on Book
issued
period
------
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.
