BEIJING, June 15, 2018 /PRNewswire/ -- Hexindai Inc.
(NASDAQ: HX) ("Hexindai" or the "Company"), a fast-growing consumer
lending marketplace in China,
today announced its unaudited financial results for the fourth
quarter and fiscal year ended March 31,
2018.
Throughout the release, each ADS represents one ordinary share.
Fiscal year refers to the 12 months ended March 31.
Fourth Quarter of Fiscal Year 2018 Operational
Highlights
- Total loan volume facilitated
(1) was US$418.4 million (RMB2.7
billion) during the fourth quarter of fiscal year 2018, an
increase of 236.7% from the fourth quarter of fiscal year
2017.
- Gross billing amount (net of
VAT)(2) was US$31.8 million during the fourth quarter of
fiscal year 2018, an increase of 231.1% from the fourth quarter of
fiscal year 2017.
- Gross billing ratio (net of
VAT)(3) for
credit loans was 7.6% during the fourth quarter of fiscal year
2018, a decrease from 8.1% during the fourth quarter of fiscal year
2017.
- Number of
borrowers (4) was
33,322 during the fourth quarter of fiscal year 2018, an increase
of 285.2% from the fourth quarter of fiscal year 2017.
- Number of investors
(5) was 62,039 during the
fourth quarter of fiscal year 2018, an increase of 103.2% from the
fourth quarter of fiscal year 2017.
(1) Total loan volume
facilitated is defined as the total principal amount of loans
facilitated on our marketplace during the
relevant period.
|
(2)"Gross billing
amount" is defined as the aggregated loan facilitation fees and
loan management fees charged to borrowers
before cash incentives, net of value added tax. It differs from the
revenue recognized at the time of recognition. For an
individual secured loan transaction, the gross billing amount
equals the gross accumulative loan management service revenue
recognized over the term of the secured loan. For the traditional
individual credit loan transaction, as the loan facilitation
service fees are charged upfront upon the release of funds to
borrowers, the gross billing amount equals the loan
facilitation
service revenue, while for the newly introduced individual credit
loan we launched from third quarter of fiscal year 2018, the
service fees are charged each period, the gross billing amount
equals the gross accumulative loan management service
revenue recognized over the estimated term of the credit
loan.
|
(3)"Gross billing
ratio" is defined as the gross billing amount divided by loan
volume facilitated, presented in percentage. It is
an operation metric we believe is a more accurate indicator of
profitability.
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(4) Refers to
borrowers who recorded successful borrowing activity on our online
marketplace during the relevant period.
|
(5) Refers to
investors who made loan investments on our online marketplace
during the relevant period.
|
Fourth Quarter of Fiscal Year 2018 Financial Highlights
(Unaudited)
- Net revenue was US$27.6
million during the fourth quarter of fiscal year 2018, an
increase of 270.7% from the fourth quarter of fiscal year
2017.
- Operating expenses were US$8.4 million during the fourth quarter of
fiscal year 2018, an increase of 115.2% from the fourth quarter of
fiscal year 2017.
- Net income was US$17.0
million during the fourth quarter of fiscal year 2018, an
increase of 303.0% from the fourth quarter of fiscal year
2017.
- Basic EPS in the fourth quarter of fiscal year 2018 was
US$0.36 compared to US$0.10 in fiscal year 2017.
- Diluted EPS in the fourth quarter of fiscal year 2018
was US$0.32 compared to US$0.10 in fiscal year 2017.
- Adjusted net income attributable to Hexindai Inc.'s
shareholders (Non-GAAP) in the fourth
quarter of fiscal year 2018 was US$18.2
million, increased by 329.8% from US$4.2 million in the fourth quarter of fiscal
year 2017.
- Adjusted EBIT (Non-GAAP) in the fourth quarter of fiscal
year 2018 was US$20.4 million,
increased by 472.8% from US$3.6
million in the fourth quarter of fiscal year 2017.
Fiscal Year Ended March 31,
2018 Operational Highlights
- Total loan volume facilitated was US$1,257.6 million (RMB8.3
billion) during the fiscal year ended March 31, 2018, an increase of 151.2% from
US$493.3 million (RMB3.3 billion) during last fiscal year.
- Gross billing amount (net of VAT) was US$118.6 million during the fiscal year ended
March 31, 2018, an increase of 320.0%
from last fiscal year.
- Gross billing ratio (net of VAT) for credit loans was
9.5% during the fiscal year ended March 31,
2018, an increase from 7.6% during last fiscal year.
- Number of borrowers was 101,172 during the fiscal year
ended March 31, 2018, an increase of
252.0% from last fiscal year.
- Number of investors was 137,950 during the fiscal
year ended March 31, 2018, an
increase of 117.8% from last fiscal year.
- Delinquency rates (6). As of
March 31, 2018, the delinquency rates
for loans that are past due for 15-29 days, 30-59 days and 60-89
days were 0.066%, 0.152% and 0.120%, compared to 0.091%, 0.138% and
0.331%, as of March 31, 2017.
- M3+ Net Charge-Off
Rates(7)As of March 31, 2018, the cumulative M3+ net charge-off
rate for credit loans originated in the first vintage, from the
inception to March 31, 2016, was
3.95%, compared to 3.09% as of December 31,
2017. As of March 31, 2018,
the cumulative M3+ net charge-off rate for credit loans originated
in the second vintage, for fiscal year 2017, was 2.58%, compared to
1.37% as of December 31, 2017. As of
March 31, 2018, the cumulative M3+
net charge-off rate for credit loans originated in the third
vintage, for fiscal year 2018, was 0.11%, compared to 0.03% for
loans originated in the third vintage, for the period April 1, 2017 to December
31, 2017 as of December 31,
2017.
Through Hexindai's platform, the total loan volume facilitated
was approximately US$2.6 billion (RMB16.7 billion) from the inception of its
business in March 2014 through
March 31, 2018.
(6) We define the
delinquency rates as of the end of the period as the outstanding
balance of principal and interest that were
15 to 29, 30 to 59 and 60 to 89 calendar days delinquent as a
percentage of the total outstanding balance of principal and
interest for the relevant group of loans during such
period.
|
(7) We define ''M3+
Net Charge-off Rates'', with respect to loans facilitated during a
specified time period or the
''vintage'', as the total balance of outstanding principal of loans
that become delinquent for over three months during a
specified period and the remainder of the expected interest for the
life of such loans, divided by the total principal of the loans
facilitated in such vintage.
|
Fiscal Year Ended March 31,
2018 Financial Highlights (Unaudited)
- Net revenue was US$107.3
million in the fiscal year ended March 31, 2018, an increase of 368.0% from last
fiscal year.
- Operating expenses were US$31.4
million in the fiscal year ended March 31, 2018, an increase of 141.3% from last
fiscal year.
- Net income was US$65.5
million in the fiscal year ended March 31, 2018, an increase of 664.3% from last
fiscal year.
- Basic EPS in the fiscal year ended March 31, 2018 was US$1.46 compared to US$0.20 in last fiscal year.
- Diluted EPS in the fiscal year ended March 31, 2018 was US$1.37 compared to US$0.20 in last fiscal year.
- Adjusted net income attributable to Hexindai Inc.'s
shareholders (Non-GAAP) in the fiscal year ended 2018 was
US$67.3 million, increased by 685.3%
from US$8.6 million in last fiscal
year.
- Adjusted EBIT (Non-GAAP) in the fiscal year ended 2018
was US$78.0 million, increased by
679.2% from US$10.0 million in last
fiscal year.
"We finished the year with another great quarter of growth in
which loan volumes increased by 236.7%," commented Mr. Xinming Zhou, Chief Executive Officer of
Hexindai. "Net revenue increased by 270.7% during the quarter to
US$27.6 million compared to the same
period of last fiscal year and net income expanded to US$17.0 million. Looking at the full year,
the loan volumes increased by 151.2% to US$1.3 billion and net income increased by 664.3%
to US$65.5 million. These solid
results were driven by our strong user acquisition capabilities and
improved user conversion rates."
"To further diversify our user acquisition channels, we opened a
call center in Hefei, Anhui Province during the quarter which will
facilitate first-time investments made by registered investors on
our platform and increase retention rates among existing investors.
Our recently launched microlending business, while risks being well
managed, will complement our core business as an online consumer
lending marketplace by generating additional revenue streams. We
will continue to invest in enhancing our research and development
capabilities, expanding our marketing efforts and strengthening our
risk management systems to solidify our competitive advantage in
China's rapidly growing consumer
lending marketplace."
Accounting Policy Changes
Effective on April 1, 2018,
Hexindai has adopted a new revenue recognition policy, ASC 606 —
Revenue from Contracts with Customers, in accordance with US GAAP.
The Company has completed the assessment on revenue
recognition for the business under ASC 606, and concluded that there will be no
material impact on the Company's financial condition based on
current preliminary assessments.
Fourth Quarter of Fiscal Year 2018 Unaudited Financial
Results
Net revenue
Net revenue during the fourth quarter of fiscal year 2018 was
US$27.6 million, an increase of
270.7% compared to US$7.4 million
during the same quarter of fiscal year 2017. The increase was
primarily due to the significant increase in the volume of credit
loans facilitated through Hexindai's marketplace, which increased
from US$0.1 billion (RMB0.7 billion) in the fourth quarter of fiscal
year 2017 to US$0.4 billion (
RMB2.7 billion ) in the same quarter
of fiscal year 2018. The increase in the volume of credit loans
facilitated through our marketplace was driven by an increase in
the number of credit loan borrowers from 8,650 in the fourth
quarter of fiscal year 2017 to 33,322 in the same quarter of fiscal
year 2018. The risk reserve liability charge decreased from
US$0.8 million in the three months
ended March 31, 2017 to nil in the
three months ended March 31, 2018 as
our risk reserve liability policy has been discontinued and
replaced by a third party insurance arrangement since February 1, 2017, there was no risk reserve
liability charge in the three months ended March 31, 2018, which also contributed to the
increase of net revenue.
Operating expenses
Total operating expenses during the fourth quarter of fiscal
year 2018 were US$8.4 million, an
increase of 115.2% from US$3.9
million in the same quarter of last fiscal year. The
significant increase was primarily due to increase in sales and
marketing expenses and general and administrative expenses.
Sales and marketing expenses
Sales and marketing expenses during the fourth quarter of fiscal
year 2018 were US$3.5 million, an
increase of 79.7% from US$1.9 million
during the same quarter of last fiscal year. The increase was
primarily due to an increase in employee expenses and a series of
promotional and brand image campaigns to enhance the Company's
brand recognition and acquire more customers.
Service and development expenses
Service and development expenses during the fourth quarter of
fiscal year 2018 were US$2.1 million,
an increase of 61.0% from US$1.3
million during the same quarter of last fiscal year. The
increase was primarily attributable to an increase in employee
expenses and custodian bank account management fees which were
mainly driven by the growth in the volume of loans facilitated
through the Company's platform.
General and administrative expenses
General and administrative expenses during the fourth quarter of
fiscal year 2018 were US$1.7 million,
an increase of 157.3% from US$0.7
million during the same period of last fiscal year. The
increase was primarily attributable to an increase in employee
expenses and professional service fees.
Share-based compensation
Share-based compensation during the fourth quarter of fiscal
year 2018 was US$1.1 million,
increased from nil during the same period of last fiscal year. The
increase was attributable to awards granted under the 2016 Equity
Incentive Plan since November 3, 2017
on which date the Company completed its IPO.
Net income
As a result of the foregoing, an increase of 303.0% in our net
income, which increased from US$4.2
million during the fourth quarter of fiscal year 2017 to
US$17.0 million during the same
quarter of fiscal year 2018.
Net income attributable to Hexindai Inc.'s shareholders
and EPS
Net income attributable to the Company's shareholders increased
by 303.0% to US$17.0 million in the
fourth quarter of fiscal year 2018 from US$4.2 million in the same period of last fiscal
year. Accordingly, the earnings per basic share increased to
US$0.36 in the fourth quarter of
fiscal year 2018 from US$0.10 in the
same period of fiscal year 2017 and earnings per diluted share
increased to US$0.32 in the fourth
quarter of fiscal year 2018 from US$0.10 in the same period of fiscal year
2017.
Adjusted net income attributable to Hexindai Inc.'s
shareholders and adjusted EPS
Adjusted net income attributable to the Company's shareholders,
which excluded share-based compensation expenses, increased by
329.8% to US$18.2 million in the
fourth quarter of fiscal year 2018 from US$4.2 million in the same quarter of fiscal year
2017. Accordingly, the adjusted earnings per basic share increased
to US$0.38 in the fourth quarter of
fiscal year 2018 from US$0.10 in the
same period of fiscal year 2017 and the adjusted earnings per
diluted share increased to US$0.34 in
the fourth quarter of fiscal year 2018 from US$ 0.10 in the same quarter of fiscal year
2017.
Fiscal Year Ended March
31, 2018 Unaudited Financial Results
Net revenue
Net revenue during the fiscal year ended March 31, 2018 was US$107.3 million, an increase of 368.0% from
US$22.9 million in last fiscal year.
The increase was primarily due to the significant increase in the
volume of credit loans facilitated through Hexindai's marketplace,
which increased from RMB2.3 billion
(US$0.3 billion) in the fiscal year
ended March 31, 2017 to RMB8.3 billion (US$1.2
billion) in the fiscal year ended March 31, 2018. The increase in the volume of
credit loans facilitated through our marketplace was driven by an
increase in the number of credit loan borrowers from 28,374 in the
fiscal year ended March 31, 2017 to
101,137 in the fiscal year ended March 31,
2018. The increase in net revenues was also due to the
increase in gross billing ratio (net of VAT) for credit loans from
7.6% in the fiscal year ended March 31,
2017 to 9.5% in the fiscal year ended March 31, 2018. The risk reserve liability charge
decreased from US$4.9 million in the
fiscal year ended March 31, 2017 to
nil in the fiscal year ended March 31,
2018 as our risk reserve liability policy has been
discontinued and replaced by a third party insurance arrangement
since February 1, 2017, there was no
risk reserve liability charge in the fiscal year ended March 31, 2018, which also contributed to the
increase of net revenue.
Operating expenses
Total operating expenses during the fiscal year ended
March 31, 2018 were US$31.4 million, an increase of 141.3% from
US$13.0 million in fiscal year ended
March 31, 2017. The increase was
primarily due to increase in sales and marketing expenses, service
and development expenses and general and administrative
expenses.
Sales and marketing expenses
Sales and marketing expense during the fiscal year ended
March 31, 2018 were US$15.2 million, an increase of 192.4% from
US$5.2 million from last fiscal year.
The increase was primarily due to an increase in employee expenses,
expenses paid to advertising vendors for online acquisition of
borrowers and investors, and a series of marketing and promotional
campaigns, included a marketing campaign for new products launched
in July 2017, to enhance the
Company's brand image.
Service and development expenses
Service and development expenses during the fiscal year ended
March 31, 2018 were US$8.5 million, an increase of 65.0% from
US$5.1 million during last fiscal
year. The increase was primarily attributable to an increase in
employee expenses, custodian bank account management fees and
rental and property management fees which were mainly driven by the
growth in the volume of loans facilitated through the Company's
platform.
General and administrative expenses
General and administrative expenses during the fiscal year ended
March 31, 2018 were US$5.8 million, an increase of 119.8% from
US$2.6 million during last year. The
increase was primarily attributable to an increase in employee
expenses and professional service fees.
Share-based compensation
Share-based compensation during the fiscal year 2018 was
US$1.8 million, increased from nil
during last fiscal year. The increase was attributable to awards
granted under the 2016 Equity Incentive Plan since November 3, 2017 on which date the Company
completed its IPO.
Net income
As a result of the foregoing, a significant increase of 664.3%
in our net income, which increased from US$8.6 million during the fiscal year ended
March 31, 2017 to US$65.5 million during this fiscal year.
Net income attributable to Hexindai Inc.'s shareholders
and EPS
Net income attributable to the Company's shareholders increased
by 664.0% to US$65.5 million in
fiscal year 2018 from US$8.6 million
in last fiscal year. Accordingly, the earnings per basic share
increased to US$1.46 in fiscal year
2018 from US$0.20 in fiscal year 2017
and earnings per diluted share increased to US$1.37 in fiscal year 2018 from US$0.20 in fiscal year 2017.
Adjusted net income attributable to Hexindai Inc.'s
shareholders and adjusted EPS
Adjusted net income attributable to the Company's shareholders,
which excluded share-based compensation expenses, increased by
685.7% to US$67.3 million during the
fiscal year ended March 31, 2018 from
US$8.6 million in the fiscal year
ended March 31 2017. Accordingly, the
adjusted earnings per basic share increased to US$1.50 during the fiscal year ended March 31, 2018 from US$0.20 in last fiscal year and the adjusted
earnings per diluted share increased to US$1.41 during the fiscal year ended March 31, 2018 from US$0.20 in last fiscal year.
Cash and Cash Flow
As of March 31, 2018, the Company
had cash and cash equivalents of US$132.6
million. Net cash provided by operating activities for the
fiscal year ended March 31, 2018 was
US$87.7 million, compared to net cash
provided by operating activities of US$8.2
million in last fiscal year. The increase in operating cash
flow was mainly due to increased net income during fiscal year
ended March 31, 2018. Net cash used
in investing activities for the fiscal year end March 31, 2018 was US$27.6
million, compared to US$0.3
million in last fiscal year. The increase in investing cash
flow was due to the loan principal originated through our
microlending business. Net cash provided by financing activities
for the fiscal year ended March 31,
2018 was US$47.5 million,
compared to net cash provided by financing activities of
US$4.3 million in the same period of
last fiscal year. The increase in financing activities was mainly
due to the net proceeds of US$43.3million raised from IPO after deducting
related costs and expenses.
Business Outlook
Based on the information available as of the date of this press
release, Hexindai provides the following outlook, which reflects
the Company's current and preliminary view and is subject to change
(see Safe Harbor Statement below):
Three Months Ending June 30,
2018
- Total loans facilitated will be in the range of
US$460.0 million to US$510.0 million.
- Net revenue will be in the range of US$51.0 million to US$56.0
million.
- Adjusted net income will be in the range of US$26.0 million to US$29.0
million.
Fiscal Year Ending March
31, 2019
- Total loans facilitated will be in the range of
US$1.9 billion to US$2.1 billion.
- Net revenue will be in the range of US$240.0 million to US$260.0 million.
- Adjusted net income will be in the range of US$115.0 million to US$127.0 million.
Use of Non-GAAP Financial Measures
We used adjusted net income, adjusted EPS and adjusted EBIT,
non-GAAP financial measures, in evaluating our operating results
and for financial and operational decision-making purposes. We
believed that the non-GAAP financial measures helped identify
underlying trends in our business by excluding the impact of
share-based compensation expenses, which were non-cash charges. We
believed that the adjusted net income provided useful information
about our operating results, enhance the overall understanding of
our past performance and future prospects and allow for greater
visibility with respect to key metrics used by our management in
its financial and operational decision-making.
The non-GAAP measures were not defined under U.S. GAAP and was
not presented in accordance with U.S. GAAP. This non-GAAP financial
measure had limitations as analytical tools, and when assessing our
operating performance, cash flows or our liquidity, investors
should not consider them in isolation, or as a substitute for net
income, cash flows provided by operating activities or other
consolidated statements of operation and cash flow data prepared in
accordance with U.S. GAAP.
We mitigate these limitations by reconciling the non-GAAP
financial measures to the most comparable U.S. GAAP performance
measure, all of which should be considered when evaluating our
performance.
For more information on this non-GAAP financial measures, please
see the table captioned "Reconciliations of GAAP and non-GAAP
measures" set forth at the end of this press release.
Exchange Rate Information
Our business was conducted in China, and our financial records were
maintained in RMB, our functional currency. However, we used the
U.S. dollar as our reporting currency; therefore, periodic reports
made to shareholders will include current period amounts translated
into U.S. dollars using the then-current exchange rates, for the
convenience of the readers. The financial information was first
prepared in RMB and then was translated into U.S. dollars at
period-end exchange rates in the H.10 statistical release of the
Federal Reserve Board as to assets and liabilities and average
exchange rates as to revenue and expenses. Capital accounts were
translated at their historical exchange rates when the capital
transactions occurred. The effects of foreign currency translation
adjustments were included as a component of accumulated other
comprehensive income (loss) in shareholders' equity. We make no
representation that any RMB or U.S. dollar amounts could have been,
or could be, converted into U.S. dollars or RMB, as the case may
be, at any particular rate, or at all. The PRC government imposes
control over its foreign currency reserves in part through direct
regulation of the conversion of RMB into foreign exchange and
through restrictions on foreign trade.
Statement Regarding Preliminary Unaudited Financial
Information
The unaudited financial information set out in this earnings
release is preliminary and subject to potential adjustments.
Adjustments to the consolidated financial statements may be
identified when audit work has been performed for the Company's
year-end audit, which could result in significant differences from
this preliminary unaudited financial information.
Recent Developments
Microlending Business
Hexindai recently began operating an online microlending
business through a newly established entity ("Wusu Company")
majority owned by Hexin E-Commerce Co., Ltd. which is the existing
VIE of Hexindai. Wusu Company was registered in Wusu City, Xinjiang
province on August 28, 2017. Through
a series of contractual agreements, Hexindai obtained control of
the remaining interest of Wusu Company, on January 1, 2018. Wusu
Company has registered capital of RMB200 million to originate loans. Default risk
will be carefully controlled with the maximum outstanding balance
of loans not exceeding RMB200
million.
Insurance Renewal
In April 2018, Hexindai renewed
its annual insurance framework agreement with Changan Insurance. In
the new agreement, the total premium paid by borrowers to Changan
Insurance included (1) loan default risk premium that equaled to
2.0% of the loan principal and accrued interest of credit loans,
and (2) service fee that equaled to 2% of the loan principal, which
reflects the Company's expected default rate for fiscal year 2019
when we will purely facilitate credit loans compared to a mix of credit and secured loans in the
previous year.
Conference Call
The Company will host a conference call to discuss the earnings
at 7:00 a.m. Eastern Time on Friday,
June 15, 2018 (7:00 p.m. Beijing time on the same day).
Dial-in numbers for the live conference call are as follows:
International
|
+65
6713-5090
|
U.S. Toll Free
|
+1
866-519-4004
|
Mainland China
|
4006-208038
|
Hong Kong Toll Free
|
8009-06601
|
Passcode:
HX
|
|
A telephone replay of the call will be available two hours after
the conclusion of the conference call through 9:59 p.m. Hong Kong Time, June 23, 2018.
Dial-in numbers for the replay are as follows:
International Dial-in
|
+61
2-8199-0299
|
U.S. Toll
Free
|
+1
855-452-5696
|
Passcode:
6836748
|
|
A live and archived webcast of the conference call will be
available on the Investor Relations section of Hexindai's website
at http://ir.hexindai.com/.
About Hexindai Inc.
Hexindai Inc. (NASDAQ: HX) ("Hexindai" or the "Company") is a
fast-growing consumer lending marketplace based in Beijing, China facilitating loans to meet the
increasing consumption demand of the emerging middle class in
China. Hexindai provides borrowers
with convenient and ready access to credit through its online
marketplace. The Company offers borrowers a wide range of products
designed based on customer segmentation data and tailored to the
specific needs of the emerging middle class in China by matching them with investors seeking
various types of investment products with appropriate risk levels
and risk-adjusted returns. Hexindai's strong online and offline
user acquisition capabilities combined with an online platform with
extensive offline networks, an advanced risk management system, and
strong strategic cooperative relationships with a custodian bank
and an insurance company to safeguard investments, allows the
Company to generate higher customer satisfaction, reliance, and
realize faster growth in China.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are made under the "safe
harbor" provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These statements can be identified by terminology such
as "will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "potential," "continue," "ongoing,"
"targets," "guidance" and similar statements. The Company may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (the "SEC"),
in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Any statements that are
not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. Such factors and risks include, but not limited to the
following: the Company's goals and strategies; its future business
development, financial condition and results of operations; the
expected growth of the credit industry, and marketplace lending in
particular, in China; the demand
for and market acceptance of its marketplace's products and
services; its ability to attract and retain borrowers and investors
on its marketplace; its relationships with its strategic
cooperation partners; competition in its industry; and relevant
government policies and regulations relating to the corporate
structure, business and industry. Further information regarding
these and other risks, uncertainties or factors is included in the
Company's filings with the SEC. All information provided in this
announcement is current as of the date of this announcement, and
the Company does not undertake any obligation to update such
information, except as required under applicable law.
For more information, please visit
ir.hexindai.com
For investor inquiries, please contact:
Hexindai
Ms. Daisy Wang
Tel: +86-10-5370-9902 ext. 849
Email: ir@hexindai.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10- 5900-1548
E-mail: carnell@christensenir.com
In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com
HEXINDAI
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
|
March
31,
|
|
|
March
31,
|
|
|
|
|
2018
|
|
|
2017
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash
|
|
$
|
|
132,622,467
|
|
$
|
19,232,275
|
Prepayments and other assets
|
|
|
1,248,562
|
|
|
4,139,354
|
Amounts due from related parties
|
|
|
|
-
|
|
|
4,182,502
|
Loans receivable
|
|
|
|
28,696,234
|
|
|
-
|
Interest receivable
|
|
|
|
555,502
|
|
|
-
|
TOTAL CURRENT
ASSETS
|
|
|
|
163,122,765
|
|
|
27,554,131
|
Property, equipment and software at cost, net
|
|
|
|
767,087
|
|
|
427,938
|
Deferred tax assets
|
|
|
|
-
|
|
|
400,062
|
TOTAL ASSETS
|
|
$
|
|
163,889,852
|
|
$
|
28,382,131
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
Accrued expenses and other current liabilities
|
|
$
|
|
3,786,955
|
|
$
|
789,129
|
Taxes payable
|
|
|
|
20,059,828
|
|
|
4,088,646
|
TOTAL
CURRENT LIABILITIES
|
|
|
|
23,846,783
|
|
|
4,877,775
|
TOTAL
LIABILITIES
|
|
$
|
|
23,846,783
|
|
$
|
4,877,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
Ordinary shares, $0.0001 par
value,
500,000,000 shares authorized, 47,958,550 and
42,921,600 shares issued and outstanding as of
March 31, 2018 and 2017, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,796
|
|
4,292
|
Additional paid-in capital
|
|
|
|
58,417,971
|
|
|
13,285,717
|
Retained earnings
|
|
|
|
77,241,073
|
|
|
11,759,100
|
Accumulated other comprehensive income
(loss)
|
|
|
|
4,379,229
|
|
|
(1,544,753)
|
TOTAL
EQUITY
|
|
|
|
140,043,069
|
|
|
23,504,356
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
$
|
|
163,889,852
|
|
$
|
28,382,131
|
|
|
|
|
|
|
|
|
HEXINDAI
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Three Months
Ended
March 31,
|
|
|
For the Years
Ended March
31,
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
Loan facilitation,
post-origination and other service, net
|
|
$
|
27,991,650
|
$
|
7,530,001
|
|
$
|
108,148,255
|
$
|
23,092,405
|
Business and sales
related taxes
|
|
|
(377,792)
|
|
(81,594)
|
|
|
(890,414)
|
|
(171,862)
|
NET
REVENUE
|
|
|
27,613,858
|
|
7,448,407
|
|
|
107,257,841
|
|
22,920,543
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
3,496,941
|
|
1,946,039
|
|
|
15,241,637
|
|
5,212,127
|
Service and development
|
|
|
2,054,458
|
|
1,275,931
|
|
|
8,495,768
|
|
5,149,265
|
General and administrative
|
|
|
1,697,319
|
|
659,686
|
|
|
5,816,130
|
|
2,645,605
|
Share-based compensation
|
|
|
1,105,037
|
|
-
|
|
|
1,828,868
|
|
-
|
Total operating expenses
|
|
|
8,353,755
|
|
3,881,656
|
|
|
31,382,403
|
|
13,006,997
|
INCOME FROM
OPERATIONS
|
|
|
19,260,103
|
|
3,566,751
|
|
|
75,875,438
|
|
9,913,546
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
169,598
|
|
18,530
|
|
|
683,393
|
|
198,624
|
Other
expense
|
|
|
(2,191)
|
|
(3,267)
|
|
|
(22,516)
|
|
(19,095)
|
Total other income, net
|
|
|
167,407
|
|
15,263
|
|
|
660,877
|
|
179,529
|
INCOME BEFORE
INCOME TAXES
|
|
|
19,427,510
|
|
3,582,014
|
|
|
76,536,315
|
|
10,093,075
|
PROVISION
(BENEFIT) FOR INCOME TAXES
|
|
|
2,382,315
|
|
(647,383)
|
|
|
11,025,690
|
|
1,522,211
|
NET
INCOME
|
|
|
17,045,195
|
|
4,229,397
|
|
|
65,510,625
|
|
8,570,864
|
Less: net income
attributable to non-controlling interest
|
|
|
-
|
|
-
|
|
|
28,652
|
|
-
|
NET INCOME
ATTRIBUTABLE TO HEXINDAI'S
SHAREHOLDERS
|
|
|
17,045,195
|
|
4,229,397
|
|
|
65,481,973
|
|
8,570,864
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
|
3,419,954
|
|
75,721
|
|
|
6,028,143
|
|
(1,080,036)
|
COMPREHENSIVE
INCOME
|
|
|
20,465,149
|
|
4,305,118
|
|
|
71,538,768
|
|
7,490,828
|
|
|
|
|
|
|
|
|
|
|
|
Less: comprehensive
income attributable to non-
controlling interest
|
|
|
-
|
|
-
|
|
|
132,814
|
|
-
|
COMPREHENSIVE
INCOME ATTRIBUTABLE TO
HEXINDAI'S SHARESHOLDERS
|
|
$
|
20,465,149
|
$
|
4,305,118
|
|
$
|
71,405,954
|
$
|
7,490,828
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share*-basic
|
|
$
|
0.36
|
$
|
0.10
|
|
$
|
1.46
|
$
|
0.20
|
Earnings per common
share*-diluted
|
|
$
|
0.32
|
$
|
0.10
|
|
$
|
1.37
|
$
|
0.20
|
Weighted average
number of shares outstanding*-basic
|
|
|
47,958,550
|
|
42,921,600
|
|
|
44,977,780
|
|
42,331,200
|
Weighted average
number of shares outstanding*-diluted
|
|
|
53,269,615
|
|
42,921,600
|
|
|
47,656,263
|
|
42,331,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The shares and per
share data are presented on a retroactive basis to reflect the
nominal share issuance.
|
HEXINDAI
INC.
|
RECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Three Months
Ended
March 31,
|
|
|
For the Years
Ended
March
31,
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
Net income
attributable to Hexindai Inc.'s
shareholders
|
|
$
|
17,045,195
|
|
4,229,397
|
|
|
65,481,973
|
|
8,570,864
|
Add: Share-based
compensation expenses
|
|
|
1,105,037
|
|
-
|
|
|
1,828,868
|
|
-
|
Adjusted net
income attributable to Hexindai Inc.'s
shareholders
|
|
$
|
18,178,884
|
|
4,229,397
|
|
|
67,310,841
|
|
8,570,864
|
Weighted average
number of shares outstanding*-basic
|
|
|
47,958,550
|
|
42,921,600
|
|
|
44,977,780
|
|
42,331,200
|
Weighted average
number of shares outstanding*-diluted
|
|
|
53,269,615
|
|
42,921,600
|
|
|
47,656,263
|
|
42,331,200
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share*-basic
|
|
$
|
0.36
|
$
|
0.10
|
|
$
|
1.46
|
$
|
0.20
|
Adjustment related to
share based compensation
expenses*-basic
|
|
$
|
0.02
|
$
|
-
|
|
$
|
0.04
|
$
|
-
|
Adjusted earnings per
common share*-basic
|
|
$
|
0.38
|
$
|
0.10
|
|
$
|
1.50
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share*-diluted
|
|
$
|
0.32
|
$
|
0.10
|
|
$
|
1.37
|
$
|
0.20
|
Adjustment related to
share based compensation
expenses*-diluted
|
|
$
|
0.02
|
$
|
-
|
|
$
|
0.04
|
$
|
-
|
Adjusted earnings per
common share*-diluted
|
|
$
|
0.34
|
$
|
0.10
|
|
$
|
1.41
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Hexindai Inc.'s
shareholders
|
|
|
17,045,195
|
|
4,229,397
|
|
|
65,481,973
|
|
8,570,864
|
Add: Interest
income
|
|
|
(92,287)
|
|
(13,373)
|
|
|
(343,370)
|
|
(83,950)
|
Income tax
expense
|
|
|
2,382,315
|
|
(647,383)
|
|
|
11,025,690
|
|
1,522,211
|
Share-based
compensation expenses
|
|
|
1,105,037
|
|
-
|
|
|
1,828,868
|
|
-
|
Adjusted
EBIT
|
|
|
20,440,260
|
|
3,568,641
|
|
|
77,993,161
|
|
10,009,125
|
|
* The shares and per
share data are presented on a retroactive basis to reflect the
nominal share issuance.
|
|
|
The following table presents our summary operating data for
three months and fiscal year ended March 31,
2017 and 2018.
|
For Three Months
Ended March 31,
|
|
For the Years
Ended March 31,
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Growth
Rates(4)
|
|
(RMB)
|
(US$)
|
|
(RMB)
|
(US$)
|
|
(RMB)
|
(US$)
|
|
(RMB)
|
(US$)
|
|
Three months
ended March 31,
2018 compared to
March 31, 2017
|
For the fiscal
year
ended March 31,
2018 compared to
March 31, 2017
|
Loan volume
facilitated
|
(in thousands,
except percentages and numbers)
|
|
(in thousands,
except percentages and numbers)
|
|
|
|
Credit loan
principal
|
2,658,495
|
418,427
|
|
732,190
|
106,341
|
|
8,268,844
|
1,248,033
|
|
2,264,421
|
336,727
|
|
263.1%
|
265.2%
|
Secured loan
principal
|
-
|
-
|
|
57,471
|
8,347
|
|
63,220
|
9,542
|
|
1,053,095
|
156,599
|
|
-100.0%
|
-94.0%
|
Total
|
2,658,495
|
418,427
|
|
789,661
|
114,688
|
|
8,332,064
|
1,257,575
|
|
3,317,516
|
493,326
|
|
236.7%
|
151.2%
|
Number of
transactions facilitated(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit loan
transactions
|
33,396
|
33,396
|
|
8,650
|
8,650
|
|
101,361
|
101,361
|
|
28,374
|
28,374
|
|
|
|
Secured loan
transactions
|
-
|
-
|
|
38
|
38
|
|
49
|
49
|
|
1,254
|
1,254
|
|
|
|
Total
|
33,396
|
33,396
|
|
8,688
|
8,688
|
|
101,410
|
101,410
|
|
29,628
|
29,628
|
|
|
|
Average individual
transaction
amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit loan
transactions
|
80
|
13
|
|
85
|
12
|
|
82
|
12
|
|
80
|
12
|
|
|
|
Secured loan
transactions
|
-
|
-
|
|
1,512
|
220
|
|
1,290
|
195
|
|
840
|
125
|
|
|
|
Overall
average
|
80
|
13
|
|
91
|
13
|
|
82
|
12
|
|
112
|
17
|
|
|
|
Gross billing
amount (net of VAT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
loan
|
202,246
|
31,832
|
|
59,213
|
8,600
|
|
784,355
|
118,384
|
|
172,401
|
25,637
|
|
241.6%
|
355.0%
|
Secured
loan
|
-
|
-
|
|
1,864
|
271
|
|
1,458
|
220
|
|
14,700
|
2,186
|
|
-100.0%
|
-90.1%
|
Total
|
202,246
|
31,832
|
|
61,077
|
8,871
|
|
785,813
|
118,604
|
|
187,101
|
27,823
|
|
231.1%
|
320.0%
|
Gross billing
ratio (net of VAT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
loan
|
7.6%
|
7.6%
|
|
8.1%
|
8.1%
|
|
9.5%
|
9.5%
|
|
7.6%
|
7.6%
|
|
|
|
Secured
loan
|
-
|
-
|
|
3.2%
|
3.2%
|
|
2.3%
|
2.3%
|
|
1.4%
|
1.4%
|
|
|
|
Total
|
7.6%
|
7.6%
|
|
7.7%
|
7.7%
|
|
9.4%
|
9.4%
|
|
5.6%
|
5.6%
|
|
|
|
Number of
borrowers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit loan
transactions
|
33,322
|
33,322
|
|
8,650
|
8,650
|
|
101,137
|
101,137
|
|
28,374
|
28,374
|
|
|
|
Secured loan
transactions
|
-
|
-
|
|
1
|
1
|
|
35
|
35
|
|
364
|
364
|
|
|
|
Total
|
33,322
|
33,322
|
|
8,651
|
8,651
|
|
101,172
|
101,172
|
|
28,738
|
28,738
|
|
285.2%
|
252.0%
|
Number of
investors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit loan
transactions (2)
|
52,231
|
52,231
|
|
18,505
|
18,505
|
|
117,016
|
117,016
|
|
25,679
|
25,679
|
|
|
|
Secured loan
transactions (3)
|
-
|
-
|
|
178
|
178
|
|
76
|
76
|
|
13,795
|
13,795
|
|
|
|
Credit and secured
loan transactions
|
9,808
|
9,808
|
|
11,853
|
11,853
|
|
20,858
|
20,858
|
|
23,861
|
23,861
|
|
|
|
Total
|
62,039
|
62,039
|
|
30,536
|
30,536
|
|
137,950
|
137,950
|
|
63,335
|
63,335
|
|
103.2%
|
117.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Number of
transactions facilitated is defined as the total number of loans
facilitated on our marketplace during the relevant
period.
|
(2) Refers to
investors who exclusively invested in credit loan transactions
during the relevant period.
|
(3) Refers to
investors who exclusively invested in secured loan transactions
during the relevant period.
|
(4) Growth rates are
calculated by RMB and exclude the impact from exchange rate in
different reporting period to reflect a real growth
rate.
|
The following table sets forth our revenue breakdown for the
periods indicated:
|
|
For the Three
Months Ended
March
31,
|
|
|
For the Fiscal
Years Ended
March
31,
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
Revenue
(1)
|
|
|
|
|
|
|
|
|
|
Loan facilitation
service
|
$
|
30,929,552
|
$
|
8,734,161
|
|
$
|
117,984,295
|
$
|
25,636,661
|
Loan management
service
|
|
104,002
|
|
250,289
|
|
|
508,948
|
|
2,678,557
|
Post-origination
service
|
|
1,819,683
|
|
159,578
|
|
|
4,213,862
|
|
1,219,897
|
Interest
income
|
|
590,122
|
|
-
|
|
|
590,122
|
|
-
|
Others
|
|
(483)
|
|
9,290
|
|
|
21,434
|
|
59,756
|
Business
tax
|
|
(377,792)
|
|
(81,594)
|
|
|
(890,414)
|
|
(171,862)
|
Cash
incentives
|
|
(5,451,226)
|
|
(783,997)
|
|
|
(15,170,406)
|
|
(1,629,316)
|
Risk reserve
liability charge
|
|
-
|
|
(839,320)
|
|
|
-
|
|
(4,873,150)
|
Net
Revenue
|
$
|
27,613,858
|
$
|
7,448,407
|
|
$
|
107,257,841
|
$
|
22,920,543
|
|
(1) Represents
amounts net of VAT
|
The following tables set forth our delinquency rates for all
loans as of March 31, 2016, 2017 and
2018, respectively:
Delinquency Rates
(1)
|
|
|
Delinquent
for
|
|
|
15 - 29
days
|
|
30 - 59
days
|
|
60 - 89
days
|
March 31,
2016
|
|
0.092%
|
|
0.074%
|
|
0.061%
|
March 31,
2017
|
|
0.091%
|
|
0.138%
|
|
0.331%
|
March 31,
2018
|
|
0.066%
|
|
0.152%
|
|
0.120%
|
|
(1) Loans that are
delinquent for more than 89 days are counted towards the M3+ Net
Charge-off Rates. See ''—M3+ Net Charge-
off Rates.''
|
The following table provides the amount of credit loans
generated through our marketplace during each of the periods
presented and the corresponding accumulated M3+ Net Charge-off and
M3+ Net Charge-off Rates data as of December
31, 2017 and March 31, 2018
for the credit loans facilitated during each of the periods
presented.
M3+ Net Charge-off
Rates
|
Loan issued
period
|
|
Amount of loans
facilitated
during the period
|
|
Accumulated
M3+Net
Charge-off as of
March 31,
2018
|
|
Total M3+Net
Charge-Off Rate as of
March 31, 2018
|
|
|
(RMB)
|
|
(USD)
|
|
(RMB)
|
|
(USD)
|
|
Percentage
|
|
|
(in
thousands)
|
|
(in
thousands)
|
|
|
Since inception to
March 31, 2016
|
|
678,849
|
|
107,466
|
|
26,801
|
|
4,182
|
|
3.95%
|
From April 1, 2016 to
March 31,
2017
|
|
2,264,421
|
|
336,727
|
|
58,513
|
|
8,501
|
|
2.58%
|
From April 1, 2017 to
March 31,
2018
|
|
8,268,844
|
|
1,248,033
|
|
8,858
|
|
1,412
|
|
0.11%
|
|
|
|
|
|
|
|
|
|
|
|
M3+ Net Charge-off
Rates
|
Loan issued
period
|
|
Amount of loans
facilitated
during the period
|
|
Accumulated
M3+Net
Charge-off
as of December 31,
2017
|
|
Total M3+Net
Charge-Off Rate
as of December 31,
2017
|
|
|
(RMB)
|
|
(USD)
|
|
(RMB)
|
|
(USD)
|
|
Percentage
|
|
|
(in
thousands)
|
|
(in
thousands)
|
|
|
Since inception to
March 31, 2016
|
|
678,849
|
|
107,466
|
|
20,960
|
|
3,276
|
|
3.09%
|
From April 1, 2016 to
March 31, 2017
|
|
2,264,421
|
|
336,727
|
|
30,982
|
|
4,501
|
|
1.37%
|
From April 1, 2017 to
December 31,
2017
|
|
5,610,349
|
|
835,471
|
|
1,786
|
|
263
|
|
0.03%
|
View original
content:http://www.prnewswire.com/news-releases/hexindai-reports-unaudited-fourth-quarter-and-fiscal-year-2018-financial-results-300666948.html
SOURCE Hexindai Inc.