Press Releases

Yirendai Reports Second Quarter 2017 Financial Results

BEIJING, Aug. 1, 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 June 30, 2017.


For Three Months Ended

in RMB million

June 30,
2017

March 31,
2017

June 30,
2016

QoQ
Change

YoY
Change

Amount of Loans Facilitated

8,189.6

6,922.7

4,538.7

18%

80%

Total Net Revenue

1,183.1

1,021.6

733.8

16%

61%

Total Fees Billed (non-GAAP)

1,862.5

1,583.5

1,110.8

18%

68%

Adjusted EBITDA (non-GAAP)

378.4

400.3

265.0

-5%

43%

Net Income

269.1

350.9

260.6

-23%

3%

In the second quarter of 2017, Yirendai facilitated RMB 8,189.6 million (US$1,208.0 million) of loans to 138,529 qualified individual borrowers on its online marketplace, representing a year-over-year growth of 80%; 70.9% of the borrowers were acquired from online channels; 51.2% of the loan volume was originated from online channels and nearly 100% of the online volume was facilitated through mobile.

In the second quarter of 2017, Yirendai facilitated 199,591 investors with total investment amount of RMB 11,446.7 million (US$1,688.5 million), 100% of which was facilitated through its online platform and 90% of which was facilitated through its mobile application.

For the second quarter of 2017, total net revenue was RMB 1,183.1 million (US$174.5 million), an increase of 61% year over year; net income was RMB 269.1 million (US$39.7 million), an increase of 3% year over year.

"We are delighted to deliver yet another solid quarter," commented Ms. Yihan Fang, Chief Executive Officer of Yirendai. "Loan origination continued the strong growth momentum, especially from online channels driven by our relentless focus on technological innovation. This quarter, we also launched our credit scoring system, the Yiren Score, in aims of delivering more precise and accurate characterization of our borrower's credit profile. We stay committed to strengthening our technological and risk management capabilities to further enhance our industry leadership. Meanwhile, we will also continue to execute our strategic expansion into online wealth management business to provide more comprehensive investment solutions for our platform investors, leveraging CreditEase's broad wealth management product portfolio."

"Yirendai's revenue has continued to show strong year-over-year growth," commented Mr. Dennis Cong, Chief Financial Officer of Yirendai. "The risk performance of our loan portfolio has remained stable due to our efforts in enhancing our credit underwriting and risk management system. We will continue to invest in our technology development and AI capability to drive our operational efficiency and risk management abilities. We will also continue to work closely with regulators to ensure our full compliance status with online lending industry interim measures. In addition, given our strong cash position and positive cash flow generation ability, our board has approved a special cash dividend and a semi-annual dividend policy going forward."

Second Quarter 2017 Financial Results

Total amount of loans facilitated in the second quarter of 2017 was RMB 8,189.6 million (US$1,208.0 million), increased by 80% year over year from RMB 4,538.7 million in the same period last year, reflecting strong demand for our products and services, especially from customers acquired from online channels. As of June 30, 2017, the Yirendai platform had facilitated approximately RMB 47.4 billion (US$7.0 billion) in loan principal since its inception.

Total net revenue in the second quarter of 2017 was RMB 1,183.1 million (US$174.5 million), increased by 61% from RMB 733.8 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 second quarter of 2017 were RMB 1,862.5 million (US$274.7 million), increased by 68% from RMB 1,110.8 million in the same period last year, driven by the growth of loan origination volume. Upfront fees billed to borrowers in the second quarter of 2017 were RMB 1,538.0 million (US$226.9 million), increased by 51% from RMB 1,016.4 million in the same period last year. Monthly fees billed to borrowers in the second quarter of 2017 were RMB 215.2 million (US$31.7 million), increased by 171% from RMB 79.4 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 second quarter of 2017 were RMB 222.8 million (US$32.9 million), increased by 153% from RMB 88.1 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 investment amount under management.

Operating costs and expenses in the second quarter of 2017 were RMB 809.6 million (US$119.4 million), increased by 29% from RMB 628.7 million in the previous quarter and compared to RMB 471.1 million in the same period last year.

Sales and marketing expenses in the second quarter of 2017 were RMB 617.9 million (US$91.1 million), increased by 32% from RMB 469.4 million in the previous quarter and compared to RMB 355.2 million in the same period last year. Sales and marketing expenses in the second quarter of 2017 accounted for 7.5% of amount of loans facilitated, increased from 6.8% in the previous quarter and decreased from 7.8% in the same period last year. Sales and marketing expenses have decreased as a percentage of loan volume on a year-over-year basis primarily due to improvements in customer acquisition efficiency.

Origination and servicing costs in the second quarter of 2017 were RMB 93.1 million (US$13.7 million), compared to RMB 58.8 million in the previous quarter and RMB 42.5 million in the same period last year. Origination and servicing costs in the second quarter of 2017 accounted for 1.1% of amount of loans facilitated, increased from 0.8% in the previous quarter and 0.9% in the same period last year. Origination and servicing costs increased due to our enhanced efforts in loan collection this quarter.

General and administrative expenses in the second quarter of 2017 were RMB 98.6 million (US$14.5 million), compared to RMB 100.5 million in the previous quarter and RMB 73.3 million in the same period last year. General and administrative expenses in the second quarter of 2017 accounted for 8.3% of total net revenue, compared to 9.8% in the previous quarter and 10.0% in the same period last year. The decrease in general and administrative expenses as percentage of total net revenue was primarily attributable to improved operational efficiency and leverage, despite our increased level of investment in technology development.

Income tax expense in the second quarter of 2017 was RMB 130.4 million (US$19.2 million), which includes a RMB 60 million (US$8.85 million) withholding tax expense resulting from the special cash dividend declared.  

Net income in the second quarter of 2017 was RMB 269.1 million (US$39.7 million), increased by 3% from RMB 260.6 million for the same period last year.

Adjusted EBITDA (non-GAAP) in the second quarter of 2017 was RMB 378.4 million (US$55.8 million), compared to RMB 400.3 million in the previous quarter and increased by 43% from RMB 265.0 million in the same period last year. Adjusted EBITDA margin[1] (non-GAAP) in the second quarter of 2017 was 32.0%, compared to 39.2% in the previous quarter and 36.1% in the same period last year.

[1] Adjusted EBITDA margin is a non-GAAP financial measure calculated as adjusted EBITDA divided by total net revenue.

Basic income per ADS in the second quarter of 2017 was RMB 4.50 (US$0.66), compared to RMB 5.87 in the previous quarter and RMB 4.46 in the same period last year.

Diluted income per ADS in the second quarter of 2017 was RMB 4.45 (US$0.66), compared to RMB 5.81 in the previous quarter and RMB 4.46 in the same period last year.

Net cash generated from operating activities in the second quarter of 2017 was RMB 530.4 million (US$78.2million), compared to RMB 564.5 million in the previous quarter and increased by 35% from RMB 392.5 million in the same period last year.

As of June 30, 2017, cash and cash equivalents was RMB 891.2 million (US$ 131.5 million), compared to RMB 864.4 million as of March 31, 2017. As of June 30, 2017, balance of held-to-maturity investments was RMB 589.3 million (US$86.9 million), compared to RMB 494.8 million as of March 31, 2017. As of June 30, 2017, balance of available-for-sale investments was RMB 1,262.3 million (US$186.2 million), compared to RMB 1,232.3 million as of March 31, 2017.

Quality Assurance Program. In the second quarter of 2017, Yirendai accrued liabilities from quality assurance program of RMB 655.2 million (US$96.6 million), which is equal to 8% of the loans facilitated through its marketplace during the period. During the quarter, the Company released liabilities of RMB 395.4 million (US$ 58.3 million) to pay out the outstanding principal and accrued interest of default loans. As of June 30, 2017, liabilities from quality assurance program were RMB 1,961.3 million (US$289.3 million).

Delinquency rates. As of June 30, 2017, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 0.4%, 0.7% and 0.5%, as compared to 0.4%, 0.8% and 0.6% as of March 31, 2017.

Cumulative M3+ net charge-off rates. As of June 30, 2017, the cumulative M3+ net charge-off rate for loans originated in 2015 was 8.3%, compared to 7.6% as of March 31, 2017. As of June 30, 2017, the cumulative M3+ net charge-off rate for loans originated in 2016 was 3.4%, compared to 2.0% as of March 31, 2017. As the 2015 and 2016 vintage loans continue to mature, the charge off level is consistent with our risk performance expectation.

Recent Development

Yiren Score and Upgraded Risk Grid

As a leader in China's fintech industry, the Company strives to uphold industry best practices for all aspects of its business. The Company is pleased to see the continuous progress it has made in refining its credit scoring model to deliver more precise and accurate credit assessment of loan applicants. The Company launched in the second quarter of 2017 its new credit scoring system, the Yiren score, which can be used to more accurately characterize borrower's credit profile. The Company has also decided to adopt, starting May 1, 2017, an upgraded risk grid with five segments - Grade I, Grade II, Grade III, Grade IV and Grade V. The expected net charge off rate and actual observed results for each of these customer groups divide potential borrowers into distinctively different credit segments.

The following table summarizes the upgraded risk grades with the corresponding Yiren scores, the volume mix in the second quarter of 2017, the expected lifetime net charge off rate, the current annualized interest rate and the average transaction fee rate:

Risk

Grade

% of Q2 2017
Loan
Facilitation
Volume

Yiren Scores

Expected

M3+ net
charge-off
rate

Interest
Rate (1)

Average
Transaction

Fee Rate (2)

I

5.8%

790+

[0%, 3.0%)

10.0-12.0%

13.60%

II

21.9%

750-<790

[3.0%, 5.0%)

10.0-12.0%

17.40%

III

23.2%

720-<750

[5.0%, 7.0%)

10.0-12.0%

19.70%

IV

24.5%

690-<720

[7.0%, 9.0%)

10.0-12.0%

24.00%

V

24.6%

640-<690

[9.0%, 13.0%)

10.0-12.0%

27.00%

 

(1) The annualized interest rate that borrowers pay to investors varies from 10.0% to 12.0%, depending on the term of the loan.

(2) The transaction fee rate is calculated as the total transaction fee that the Company charges borrowers for the entire life of the loan, divided by the total amount of principal. The average transaction fee rate presented in the table above is the simple average of the transaction fee rates for loans falling under the same risk grade, but with different tenures and repayment schedules.

In the transition period from May 1, 2017 to September 30, 2017, the Company will use both the upgraded risk grid and the previous risk grid for loans facilitated on the Company's platform.

Amendment to Cash Contribution Rules for the Quality Assurance Program

To further enhance the Company's cash management, the Company has determined to amend cash contribution rules for the Program, effective July 1, 2017. The Company will contribute 30% of the transaction fee collected from the borrowers, following the actual fee collection schedule, over the life of the loan to a restricted bank account as a quality assurance service fee. The total contribution over the life of a loan is approximately equal to 8% of the loan contract amount, which is similar to the previous accrual ratio. The Company reserve the right to revise this percentage upwards or downwards from time to time as a result of continuing evaluation of factors such as market dynamics as well as of our product lines, profitability and cash position.

Dividend

On July 29, 2017, the board of directors (the "Board") of the Company approved a special cash dividend of RMB 5.0845 (US$0.75) per ordinary share of the Company (or RMB 10.1690 (US$1.50) per American depositary share of the Company), which is expected to be paid on October 16, 2017 to holders of the Company's ordinary shares of record as of the close of business on September 29, 2017. 

On July 29, 2017, the Board also approved a semi-annual dividend policy. Under this policy, 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 June 30, 2017, Yirendai had facilitated RMB 47.4 billion (US$7.0 billion) of loans on the Yirendai online marketplace since its inception in 2012.
  • As of June 30, 2017, remaining principal of performing loans totaled RMB 27.9 billion (US$4.1 billion), increased by 16% from RMB 24.0 billion as of March 31, 2017 and 102% from RMB 13.8 billion as of June 30, 2016.
  • In the second quarter of 2017, Grade A, B, C and D loans represented 2.3%, 7.3%, 12.7%, and 77.7% and Grade I, II, III, IV and V loans represented 5.8%, 21.9%, 23.2%, 24.5% and 24.6% of the Company's product portfolio, respectively.

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.

Third Quarter 2017

  • Total loans facilitated will be in the range of RMB 10,000 million to RMB 10,500 million.
  • Total net revenue will be in the range of RMB 1,300 million to RMB 1,350 million.
  • Adjusted EBITDA (non-GAAP) will be in the range of RMB 280 million to RMB 320 million.

Full Year 2017

  • Total loans facilitated will be in the range of RMB 35,000 million to RMB 37,000 million.
  • Total net revenue will be in the range of RMB 4,800 million to RMB 5,000 million.
  • Adjusted EBITDA (non-GAAP) will be in the range of RMB 1,300 million to RMB 1,400 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 6.7793 to US$1.00, the effective noon buying rate on June 30, 2017 as set forth in the H.10 statistical release of the Federal Reserve Board.

Conference Call

Yirendai will host an earnings conference call at 8:00 a.m. Eastern Time on August 1, 2017, (or 8:00 p.m. Beijing/Hong Kong Time on August 1, 2017).

Dial-in details for the earnings 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 may be accessed by phone at the following numbers until August 8, 2017:

International:

1-412-317-0088

U.S. Toll Free:

1-877-344-7529

Replay Access Code:

10110363

Additionally, a live and archived webcast of the conference call will be available 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

 

 

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 Six Months Ended 


June 30,
2016


March 31,
2017


June 30,
2017


June 30,
2017



June 30,
2016


June 30,
2017


June 30,
2017


RMB


RMB


RMB


USD



RMB


RMB


USD

Net revenue:















Loan facilitation services

713,383


976,398


1,121,200


165,386



1,248,470


2,097,598


309,412

Post-origination services

17,232


33,312


41,389


6,105



35,629


74,701


11,019

Others

3,176


11,889


20,468


3,019



6,071


32,357


4,773

Total net revenue

733,791


1,021,599


1,183,057


174,510



1,290,170


2,204,656


325,204

Operating costs and expenses:















Sales and marketing

355,246


469,380


617,880


91,142



610,082


1,087,260


160,379

Origination and servicing

42,535


58,784


93,147


13,740



75,894


151,931


22,411

General and administrative

73,330


100,498


98,614


14,546



133,436


199,112


29,371

Total operating costs and expenses

471,111


628,662


809,641


119,428



819,412


1,438,303


212,161

Interest income

7,253


24,149


27,398


4,042



12,287


51,547


7,604

Fair value adjustments related to Consolidated ABFE

(118)


1,355


(1,915)


(283)



(3,513)


(560)


(83)

Non-operating income, net

91


207


555


82



91


762


112

Income before provision for income taxes

269,906


418,648


399,454


58,923



479,623


818,102


120,676

Income tax expense/(benefit)

9,286


67,747


130,358


19,229



87,287


198,105


29,222

Net income

260,620


350,901


269,096


39,694



392,336


619,997


91,454
















Weighted average number of ordinary shares outstanding,
basic

117,000,000


119,560,832


119,603,286


119,603,286



117,000,000


119,582,176


119,582,176

Basic income per share

2.2275


2.9349


2.2499


0.3319



3.3533


5.1847


0.7648

Basic income per ADS

4.4550


5.8698


4.4998


0.6638



6.7066


10.3694


1.5296
















Weighted average number of ordinary shares outstanding,
diluted

117,000,000


120,842,350


120,833,406


120,833,406



117,000,000


120,837,995


120,837,995

Diluted income per share

2.2275


2.9038


2.2270


0.3285



3.3533


5.1308


0.7568

Diluted income per ADS

4.4550


5.8076


4.4540


0.6570



6.7066


10.2616


1.5136
















Unaudited Condensed Consolidated Cash Flow Data















Net cash generated from operating activities

392,474


564,504


530,371


78,234



826,797


1,094,875


161,503

Net cash provided by/(used in) investing activities

51,515


(427,686)


(95,702)


(14,117)



65,567


(523,388)


(77,204)

Net cash used in financing activities

(87,914)


(44,841)


(94,993)


(14,012)



(104,323)


(139,834)


(20,627)

Effect of foreign exchange rate changes

12,733


(3,779)


(6,463)


(953)



10,840


(10,242)


(1,511)

Net increase in cash, cash equivalents and restricted cash

368,808


88,198


333,213


49,152



798,881


421,411


62,161

Cash, cash equivalents and restricted cash, beginning of period

1,760,158


2,186,511


2,274,709


335,537



1,330,085


2,186,511


322,528

Cash, cash equivalents and restricted cash, end of period

2,128,966


2,274,709


2,607,922


384,689



2,128,966


2,607,922


384,689

 

 

Unaudited Consolidated Balance Sheet

 (in thousands, except for share, per share and per ADS data, and percentages)


As of


June 30,
2016


March 31,
2017


June 30,
2017


June 30,
2017


RMB


RMB


RMB


USD









        Cash and cash equivalents

1,336,329


864,361


891,154


131,452

        Restricted cash

792,637


1,410,348


1,716,768


253,237

        Accounts receivable

50,496


22,851


18,109


2,671

        Prepaid expenses and other assets

272,977


475,979


618,076


91,171

        Loans at fair value

175,614


319,984


269,952


39,820

        Amounts due from related parties

105,809


18,436


4,252


627

        Held-to-maturity investments

2,500


494,847


589,329


86,931

        Available-for-sale investments

-


1,232,260


1,262,260


186,193

        Property, equipment and software, net

22,281


42,309


59,838


8,827

        Deferred tax assets

282,700


495,464


559,794


82,574

Total assets

3,041,343


5,376,839


5,989,532


883,503

        Accounts payable

5,176


12,192


15,153


2,235

        Amounts due to related parties

18,799


4,272


45,425


6,701

        Liabilities from quality assurance program

928,166


1,701,519


1,961,315


289,309

        Deferred revenue

141,330


168,422


173,386


25,576

        Payable to investors at fair value

166,193


380,048


200,947


29,641

        Accrued expenses and other liabilities

401,560


621,723


780,555


115,138

        Deffered tax liability

-


-


60,000


8,851

Total liabilities

1,661,224


2,888,176


3,236,781


477,451

        Ordinary shares

73


75


75


11

        Additional paid-in capital

791,841


942,604


950,151


140,155

        Accumulated other comprehensive income

10,942


25,678


19,216


2,834

        Retained earnings

577,263


1,520,306


1,783,309


263,052

Total equity

1,380,119


2,488,663


2,752,751


406,052

Total liabilities and equity

3,041,343


5,376,839


5,989,532


883,503

 

 

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,
2016


March 31,
2017


June 30,
2017


June 30,
2017



June 30,
2016


June 30,
2017


June 30,
2017


RMB


RMB


RMB


USD



RMB


RMB


USD

Operating Highlights:















Amount of loans facilitated 

4,538,687


6,922,678


8,189,589


1,208,028



7,985,203


15,112,267


2,229,178

        Loans generated from online channels

1,832,078


3,515,727


4,195,406


618,855



3,007,460


7,711,133


1,137,453

        Loans generated from offline channels

2,706,609


3,406,951


3,994,183


589,173



4,977,743


7,401,134


1,091,725

Fees billed

1,110,849


1,583,537


1,862,467


274,728



1,958,262


3,446,004


508,312

Remaining principal of performing loans

13,771,180


24,037,078


27,871,922


4,111,327



13,771,180


27,871,922


4,111,327

Remaining principal of performing loans covered by
quality assurance program

12,963,604


23,524,227


27,502,314


4,056,807



12,963,604


27,502,314


4,056,807

Number of borrowers

68,882


124,953


138,529


138,529



119,305


263,319


263,319

        Borrowers from online channels

40,033


86,095


98,245


98,245



67,849


184,190


184,190

        Borrowers from offline channels

28,849


38,858


40,284


40,284



51,456


79,129


79,129

Number of investors

206,706


192,505


199,591


199,591



367,229


324,672


324,672

        Investors from online channels

206,706


192,505


199,591


199,591



367,229


324,672


324,672

        Investors from offline channels

-


-


-


-



-


-


-

Adjusted EBITDA

264,962


400,297


378,434


55,822



471,575


778,731


114,868

Adjusted EBITDA margin

36.1%


39.2%


32.0%


32.0%



36.6%


35.3%


35.3%
















Reconciliation of Net Revenues















Fees billed:















        Transaction fees billed to borrowers

1,095,749


1,507,754


1,753,192


258,610



1,932,645


3,260,946


481,015

            Upfront fees billed to borrowers

1,016,393


1,334,688


1,537,969


226,863



1,789,685


2,872,657


423,739

            Monthly fees billed to borrowers

79,356


173,066


215,223


31,747



142,960


388,289


57,276

        Service fees billed to investors

88,068


177,132


222,845


32,871



152,620


399,977


59,000

        Others

3,366


12,602


21,697


3,200



6,435


34,299


5,059

        Value-added tax

(76,334)


(113,951)


(135,267)


(19,953)



(133,438)


(249,218)


(36,762)

Total fees billed

1,110,849


1,583,537


1,862,467


274,728



1,958,262


3,446,004


508,312

        Stand-ready liabilities associated with
        quality assurance program 

(363,095)


(553,816)


(655,167)


(96,642)



(638,816)


(1,208,983)


(178,334)

        Deferred revenue 

(15,857)


(9,662)


(10,297)


(1,519)



(36,223)


(19,959)


(2,944)

        Cash incentives

(19,556)


(30,355)


(51,614)


(7,613)



(31,263)


(81,969)


(12,091)

        Value-added tax

21,450


31,895


37,668


5,556



38,210


69,563


10,261

Net revenues

733,791


1,021,599


1,183,057


174,510



1,290,170


2,204,656


325,204
















Reconciliation of EBITDA















Net income

260,620


350,901


269,096


39,694



392,336


619,997


91,454

Interest income

(7,253)


(24,149)


(27,398)


(4,042)



(12,287)


(51,547)


(7,604)

Income tax expense

9,286


67,747


130,358


19,229



87,287


198,105


29,222

Depreciation and amortization

2,309


4,176


4,923


726



4,239


9,099


1,342

Share-based compensation

-


1,622


1,455


215



-


3,077


454

Adjusted EBITDA

264,962


400,297


378,434


55,822



471,575


778,731


114,868

 

 

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%








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%








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%

 

 

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 June 30, 2017


Total Net Charge-Off Rate
as of June 30, 2017





(in RMB thousands)


(in RMB thousands)



2014


A


1,917,542


92,771


4.8%



B


303,030


20,560


6.8%



C


-


-


-



D


7,989


528


6.6%



Total


2,228,561


113,859


5.1%

2015


A


873,995


49,517


5.7%



B


419,630


31,969


7.6%



C


557,414


56,467


10.1%



D


7,706,575


654,607


8.5%



Total


9,557,614


792,560


8.3%

2016


A


1,109,094


13,852


1.2%



B


745,508


19,720


2.6%



C


1,398,721


55,690


4.0%



D


16,919,079


587,640


3.5%



Total


20,172,402


676,902


3.4%

1H 2017


A


428,742


86


0.0%



B


1,005,640


976


0.1%



C


1,548,768


1,312


0.1%



D


12,129,117


14,804


0.1%



Total


15,112,267


17,178


0.1%

 

 

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 June 30, 2017


Total Net Charge-Off Rate
as of June 30, 2017





(in RMB thousands)


(in RMB thousands)



2014


I


-


-


-



II


1,921,372


92,771


4.8%



III


303,276


20,560


6.8%



IV


-


-


-



V


3,913


528


13.5%



Total


2,228,561


113,859


5.1%

2015


I


146,490


3,285


2.2%



II


1,614,354


70,286


4.4%



III


2,521,705


175,454


7.0%



IV


2,506,107


209,658


8.4%



V


2,768,957


333,877


12.1%



Total


9,557,613


792,560


8.3%

2016


I


445,515


3,705


0.8%



II


3,011,304


41,257


1.4%



III


3,757,434


80,212


2.1%



IV


5,178,402


149,417


2.9%



V


7,779,747


402,311


5.2%



Total


20,172,402


676,902


3.4%

1H 2017


I


707,851


39


0.0%



II


2,690,524


485


0.0%



III


3,295,540


1,267


0.0%



IV


3,352,051


1,778


0.1%



V


5,066,301


13,608


0.3%



Total


15,112,267


17,178


0.1%

 

 

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%


2015Q1


0.6%

2.7%

4.4%

5.8%

7.1%

8.2%

9.1%

9.6%

9.9%



2015Q2


0.5%

2.1%

3.7%

5.3%

6.6%

7.7%

8.6%

9.1%




2015Q3


0.2%

1.6%

3.4%

4.9%

6.4%

7.4%

8.1%





2015Q4


0.2%

1.6%

3.2%

4.9%

6.2%

7.2%






2016Q1


0.2%

1.3%

2.9%

4.3%

5.4%







2016Q2


0.2%

1.7%

3.4%

4.9%








2016Q3


0.1%

1.5%

3.2%









2016Q4


0.2%

1.5%










2017Q1


0.2%
























 

Cumulative M3+ Net Charge Off Rates – All Loans

SOURCE Yirendai Ltd.


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