BEIJING, Feb. 28, 2019 /PRNewswire/ -- Hexindai Inc.
(NASDAQ: HX) ("Hexindai" or the "Company"), a fast-growing online
consumer lending marketplace in China, today announced its unaudited financial
results for the quarter ended December 31, 2018.
Throughout the release, each ADS represents one ordinary
share. Fiscal year refers to the 12
months ended March 31.
Third Quarter of Fiscal Year 2019 Operational
Highlights
- Total loan volume
facilitated[1] was US$29.1 million (RMB0.2
billion) during the third quarter of fiscal year 2019, a
decrease of 92.2% from the third quarter of fiscal year 2018.
- Gross billing amount (net of
VAT)[2] was US$2.6 million during the third quarter of fiscal
year 2019, a decrease of 94.1% from the third quarter of fiscal
year 2018.
- Gross billing ratio (net of
VAT)[3] for credit loans was 9.1% during
the third quarter of fiscal year 2019, a decrease from 12.1% during
the third quarter of fiscal year 2018.
- Number of borrowers[4] was 1,771
during the third quarter of fiscal year 2019, a decrease of 94.5%
from the third quarter of fiscal year 2018.
- Number of investors[5] was 20,325
during the third quarter of fiscal year 2019, a decrease of 64.9%
from the third quarter of fiscal year 2018.
[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
facilitation 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.
|
[4] Refers
to borrowers who recorded successful borrowing activity on our
marketplace during the relevant period.
|
[5] Refers
to investors who made loan investments on our marketplace during
the relevant period.
|
Third Quarter of Fiscal Year 2019 Unaudited Financial
Highlights
- Net revenue was US$1.9
million during the third quarter of fiscal year 2019, a
decrease of 95.6% from the third quarter of fiscal year 2018.
- Operating expenses were US$13.1 million during the third quarter of
fiscal year 2019, an increase of 11.7% from the third quarter of
fiscal year 2018.
- Net loss was US$9.6
million during the third quarter of fiscal year 2019,
compared to net income of US$26.9
million in third quarter of fiscal year 2018.
- Basic loss per common share in the third quarter of
fiscal year 2019 was US$0.20,
compared to basic earnings per common shares ("EPS") of
US$0.58 in third quarter of fiscal
year 2018.
- Diluted loss per common share in the third quarter of
fiscal year 2019 was US$0.20,
compared to diluted EPS of US$0.52 in
third quarter of fiscal year 2018.
- Adjusted net loss (Non-GAAP)[6] in the
third quarter of fiscal year 2019 was US$9.2
million, compared to adjusted net income (Non-GAAP) of
US$27.6 million in the third quarter
of fiscal year 2018.
- Adjusted EBIT (Non-GAAP)[7] in the third
quarter of fiscal year 2019 was (US$10.0)
million, compared to US$32.5
million in the third quarter of fiscal year 2018.
[6]
Adjusted net loss (Non-GAAP), which excluded share-based
compensation expenses.
|
[7]
Adjusted EBIT (Non-GAAP), which excluded interest income, income
tax and share-based compensation.
|
Nine Months Ended December 31,
2018 Operational Data
Loan volume facilitated
Total loan volume facilitated during the nine months ended
December 31, 2018 was US$503.7 million (RMB3.4
billion), a decrease of 40.6% from US$844.9 million (RMB5.7
billion) during the same period of fiscal year 2018.
Number of borrowers
Number of borrowers was 32,933 during the nine months ended
December 31, 2018, a decrease of
51.5% from the same period of fiscal year 2018.
Number of investors
Number of investors was 102,809 during the nine months ended
December 31, 2018, an increase of
1.9% from the same period of fiscal year 2018.
Total loan volume facilitated through Hexindai's platform was
approximately US$3.1 billion
(RMB20.1 billion) from the inception
of its business in March 2014 through
December 31, 2018.
Mr. Xinming Zhou, Chief Executive
Officer of Hexindai, commented, "A challenging market environment
continued to impact our business during the quarter. Things are
gradually improving however as we have begun to see the environment
improve as regulations are clarified and financially weaker and
fraudulent firms are gradually weeded out. While our top line
continued to decrease significantly on a year-over-year basis, our
business has begun improving on a sequential basis following the
cost cutting initiatives we put in place during the quarter and
re-shifting our focus from loan transfer services back to new loan
products as the market rebuilds. Our net loss narrowed sequentially
as a result. Recent statistics show that the loan balance for the
entire sector decreased 36% as of December
31, 2018 when compared with a year ago. Our loan balance
however grew 21% year-over-year. I believe this demonstrates how
the strategy we implemented in response to market turbulence over
the past two quarters has helped to strengthen confidence in our
platform and maintain the loyalty and trust of our investors."
"In addition to continue to expand our core business, our recent
strategy also includes building out our microlending business,
diversifying funding sources, and expanding into consulting and
referral services. We believe these new businesses are highly
complementary to our existing core P2P and will become our main
growth drivers going forward. We recently signed a number of
partnerships with respected financial institutions that leverage
our strong risk assessment and borrower acquisition capabilities to
create additional revenue streams and diversify our funding
sources. We remain optimistic about the prospects of our business
and believe we are ideally positioned to benefit from the
industry's consolidation with our strong financial resources,
experienced management team, and clear strategy."
Third Quarter of Fiscal Year 2019 Unaudited
Financial Results
Net revenue
Net revenue during the third quarter of fiscal year 2019
was US$1.9 million, a decrease
of 95.6% from US$43.3 million
during the same quarter of fiscal year 2018. The decrease was
primarily due to the significant decrease in the volume of credit
loans facilitated through Hexindai's marketplace, which decreased
from US$388.7 million (RMB2.6 billion) in the third quarter of
fiscal year 2018 to US$29.1
million (RMB0.2 billion) in
the same quarter of fiscal year 2019. The decrease in the volume of
credit loans facilitated through Hexindai's marketplace was driven
by a decrease in the number of credit loan borrowers from
32,417 in the third quarter of fiscal year 2018 to
1,771 in the same quarter of fiscal year 2019 as we implemented
stricter credit scoring standards this quarter which downgraded a
number of our borrowers.
Operating expenses
Total operating expenses during the third quarter of fiscal
year 2019 were US$13.1 million,
an increase of 11.7% from US$11.7 million in the same quarter of last
fiscal year. The increase was primarily due to increase in sales
and marketing expenses, general and administrative expenses.
Sales and marketing expenses
Sales and marketing expenses during the third quarter of
fiscal year 2019 were US$7.2 million, an increase of 30.8%
from US$5.5 million during the
same quarter of last fiscal year. The increase was primarily
due to an increase in advertising expenses associated
with acquiring more customers.
Service and development expenses
Service and development expenses during the third quarter
of fiscal year 2019 were US$2.2 million, a decrease of 29.9%
from US$3.2 million during the
same quarter of last fiscal year. The decrease was mainly due to
the decrease of employee expenses.
General and administrative expenses
General and administrative expenses during the
third quarter of fiscal year 2019 were US$3.2 million, an increase of
42.8% from US$2.3 million during the
same period of last fiscal year. The increase was mainly due to the
loan provision made for microlending business.
Share-based compensation
Share-based compensation during the third quarter of fiscal year
2019 was US$0.4 million, compared to
US$0.7 during the same period of last
fiscal year. The decrease was attributable to awards granted under
the 2016 Equity Incentive Plan since November 3, 2017 on which date the Company
completed its IPO.
Net loss (income)
As a result of the foregoing, the net loss was US$9.6 million during the third quarter of fiscal
year 2019, compared to net income of US$26.9
million in third quarter of fiscal year 2018.
Net loss (income) attributable to Hexindai Inc.'s
shareholders and EPS
Net loss attributable to the Company's shareholders was
US$9.6 million during the third
quarter of fiscal year 2019, compared to net income attributable to
the Company's shareholders of US$26.9
million in the same period of fiscal year 2018. Accordingly,
basic loss per common share in the third quarter of fiscal year
2019 was US$0.20, compared to basic
EPS of US$0.58 in the same period of
fiscal year 2018. Diluted loss per common share in the third
quarter of fiscal year 2019 was US$0.20, compared to diluted EPS of US$0.52 in the same period of fiscal year
2018.
Adjusted net loss (income) attributable to Hexindai Inc.'s
shareholders and adjusted EPS
Adjusted net loss attributable to the Company's shareholders,
which excluded share-based compensation expenses, was US$9.2 million in the third quarter of fiscal
year 2019, compared to adjusted net income attributable to the
Company's shareholders of US$27.6
million in the same period of fiscal year 2018. Accordingly,
the adjusted basic loss per common share was US$0.19 in the third quarter of fiscal year 2019,
compared to the adjusted basic EPS of US$0.60 in the same period of fiscal year 2018.
The adjusted diluted loss per common share was US$0.19 in the third quarter of fiscal year 2019,
compared to the adjusted diluted EPS of US$0.54 in the same period of fiscal year
2018.
Nine Months Ended December 31, 2018 Unaudited Financial
Results
Net revenue
Net revenue during the nine months ended December 31, 2018 was US$57.2 million, a decrease of 28.2% from
US$79.6 million during the same
period of last fiscal year. The decrease was primarily due to the
decrease in the volume of credit loans facilitated through
Hexindai's marketplace, which decreased from US$0.8 billion (RMB5.6 billion) in the nine months ended
December 31, 2017 to US$0.5
billion (RMB3.4 billion)
in the nine months ended December 31,
2018. The decrease in the volume of credit loans facilitated
through Hexindai's marketplace was driven by a decrease in the
number of credit loan borrowers from 67,815 in the nine months ended December 31, 2017 to 32,933 in the same period of
2018 as we implemented stricter credit scoring standards which
downgraded a number of our borrowers.
Operating expenses
Total operating expenses during the nine months ended
December 31, 2018 were US$49.7 million, an increase of 115.8% from
US$23.0 million in nine months
ended December 31, 2017. The increase was primarily due to
increase in sales and marketing expenses, general and
administrative expenses and share-based compensation.
Sales and marketing expenses
Sales and marketing expense during the
nine months ended December
31, 2018 were US$30.6 million, an increase of 160.5% from
US$11.8 million from the same
period of last fiscal year. The increase was primarily
due to an increase in advertising expenses associated with
acquiring more customers.
Service and development expenses
Service and development expenses during the nine
months ended December 31, 2018
were US$5.8 million, a
decrease of 10.1% from US$6.4 million during the same period of
last fiscal year. The decrease was mainly due to the
decrease of employee expenses.
General and administrative expenses
General and administrative expenses during the nine months ended
December 31, 2018 were US$7.8 million, an increase of 89.3% from
US$4.1 million during the same period of last fiscal year. The
increase was mainly due to an increase in professional service fees
and the loan provision made for microlending business.
Share-based compensation
Share-based compensation during the nine months ended
December 31, 2018 was
US$5.5 million, increased from
US$0.7 million during the same period
of last fiscal year.
Net income
As a result of the foregoing, a decrease of 94.5% in
our net income, which decreased from US$48.5 million during the nine months ended
December 31, 2017 to US$2.7 million during the nine months ended
December 31, 2018.
Net income attributable to Hexindai Inc.'s shareholders
and EPS
Net income attributable to the Company's shareholders decreased
by 94.5% to US$2.7 million in nine
months ended December 31, 2018 from
US$48.4 million during the same
period of last fiscal year. Accordingly, the basic EPS decreased to
US$0.06 in nine months ended
December 31, 2018 from US$1.10 during the same period of last fiscal
year and diluted EPS decreased to US$0.05 in nine months ended December 31, 2018 from US$1.06 during the same period of last fiscal
year.
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, decreased by
83.3% to US$8.2 million during the
nine months ended December 31, 2018
from US$49.2 million in the nine
months ended December 31, 2017. Accordingly, the adjusted basic EPS
decreased to US$0.17 during the nine
months ended December 31, 2018 from
US$1.12 during the same period of
last fiscal year. Adjusted diluted EPS decreased to US$0.15 during the nine months ended December 31, 2018 from US$1.07 during the same period of last fiscal
year.
Cash and Cash Flow
As of December 31, 2018, the
Company had cash and cash equivalents of US$47.4 million. Net cash used in
operating activities for the nine months ended December 31, 2018 was US$0.5 million, compared to net cash
provided by operating activities of US$65.0 million during the same period
of last fiscal year. Net cash used in investing activities for
the nine months ended December 31,
2018 was US$60.4 million,
compared to US$0.3 million during the
same period of last fiscal year. Net cash used in financing
activities for nine months ended December
31, 2018 was US$18.9 million,
compared to net cash provided by financing activities of
US$52.5 million in the same period of
last fiscal year.
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 March
31, 2019
- Total loans facilitated will be in the range of
US$60.0 million to US$64.0 million.
- Net revenue will be in the range of US$9.0 million to US$10.0
million.
Fiscal Year Ending March 31,
2019
- Total loans facilitated will be in the range of
US$564.0 million to US$568.0 million.
- Net revenue will be in the range of US$66.0 million to US$67.0
million.
Use of Non-GAAP Financial Measures
We used adjusted net (loss) income, adjusted EPS and adjusted
EBIT, non-GAAP financial measures, in evaluating our operating
results and for financial and operational decision-making purposes.
"Adjusted net (loss) income" is net income before share-based
compensation expenses. "Adjusted EBIT" is earnings before interest,
income taxes and share-based compensation. 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 (loss) income, adjusted EPS and adjusted EBIT 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.
Recent Developments
In December 2018, the Company
announced a share repurchase program under which it may repurchase
up to US$25 million of its ordinary
shares in the form of American depositary shares over the next 12
months. We believe the share repurchase program demonstrates our
confidence and optimism in the long-term future of the P2P lending
industry in China.
In December 2018, we partnered
with Kunming Aotou Economic Information Consulting Co., Ltd.
("Kunming Aotou") as a way to diversify our revenue streams. We
will generate service fee revenues from Kunming Aotou for assisting
in the loan facilitation process including referring borrowers and
assessing their creditworthiness. An initial aggregate
principal amount not exceeding RMB30 million will be
distributed by Kunming Aotou through a trust fund.
In January 2019, we announced
to acquire a 5.88% equity stake in Phoenix Intelligent Credit Group
Ltd , a wholly owned subsidiary of Phoenix Financial Group Ltd and
operator of one of China's leading
peer-to-peer lending (P2P) platforms, for a total consideration of
approximately US$29 million
(RMB200 million). The two parties are
expected to facilitate about RMB10
billion in consumer credit loans over a term of three years
beginning in 2019.
In January 2019, we established a
partnership with Bohai International Trust Co. Ltd. ("Bohai
International Trust"), a leading trust company in China, as part of our strategy to diversify
and expand our funding sources. Bohai International Trust will
facilitate personal credit loans for an initial aggregate principal
amount not exceeding RMB300 million to borrowers referred by
us. The initial term of the agreement is five years. We will
receive service fee revenues from Bohai International Trust for
borrower referral, credit assessment services, and assistance in
the loan facilitation process.
We entered into a cooperation agreement on November 19, 2018 with Shanxi Zhengxuan Finance
Guarantee Co., Ltd. ("Shanxi Zhengxuan") to provide investors on
the our platform with insurance coverage that protects them against
the potential default risk of non-paying borrowers. Starting from
December 1, 2018, all new loans
facilitated on our marketplace will require borrowers to obtain
insurance through Shanxi Zhengxuan. The Company did not renew its
contract with Changan Insurance in 2019.
In January 2019, we connected our
systems and begun sharing credit data with Baihang Zhengxin
("Baihang Credit"). We will make regular transfers of credit data
to Baihang Credit which integrates the data collected from multiple
partner companies and provide individual credit data. We will
leverage the data generated from Baihang Credit to more accurately
assess a borrower's creditworthiness and potentially reduce the
cost of risk management.
Conference Call
The Company will host a conference call to discuss the earnings
at 8:00 a.m. Eastern Time on
Thursday, February 28, 2019 (9:00
p.m. Beijing/Hong Kong 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 8:59 p.m. Beijing/Hong Kong Time, March 8, 2019.
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:
|
9972559
|
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 online 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
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 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: +86-10-5380-6196
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)
|
|
|
|
December
31,
|
|
March
31,
|
|
|
2018
|
|
2018
|
|
|
US$
|
|
US$
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
|
47,433,771
|
|
132,622,467
|
Receivables, prepayments and other assets
|
|
3,834,212
|
|
1,248,562
|
Loans receivable-current, net of provision
|
|
43,613,597
|
|
28,696,234
|
Interest receivable
|
|
370,397
|
|
555,502
|
Total current assets
|
|
95,251,977
|
|
163,122,765
|
Non-current
assets
|
|
|
|
|
Loans receivable-non-current, net of provision
|
|
29,735,615
|
|
-
|
Long
term investment
|
|
1,600,000
|
|
-
|
Property and equipment, net
|
|
1,292,176
|
|
767,087
|
Deferred tax assets
|
|
2,378,218
|
|
-
|
Other non-current assets
|
|
7,272,198
|
|
-
|
TOTAL
ASSETS
|
|
137,530,184
|
|
163,889,852
|
LIABILITIES
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Deferred revenue
|
|
128,273
|
|
-
|
Accrued expenses and other current liabilities
|
|
2,252,558
|
|
3,786,955
|
Income taxes payable
|
|
14,627,993
|
|
20,059,828
|
Total current liabilities
|
|
17,008,824
|
|
23,846,783
|
TOTAL
LIABILITIES
|
|
17,008,824
|
|
23,846,783
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Ordinary shares, $0.0001 par value, 500,000,000 shares
authorized, 49,055,412 and 47,958,550 shares issued and
outstanding as of December 31, 2018 and March 31, 2018,
respectively.
|
|
4,906
|
|
4,796
|
Additional paid-in capital
|
|
64,581,229
|
|
58,417,971
|
Retained earnings
|
|
62,281,334
|
|
77,241,073
|
Accumulated other comprehensive (loss) income
|
|
(6,346,109)
|
|
4,379,229
|
TOTAL
SHAREHOLDERS' EQUITY
|
|
120,521,360
|
|
140,043,069
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
137,530,184
|
|
163,889,852
|
HEXINDAI
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(UNAUDITED)
|
|
|
|
For Three Months
Ended
December 31,
|
|
For Nine Months
Ended
December 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
NET
REVENUE
|
|
|
|
|
|
|
|
|
Loan facilitation,
post-origination and other service
|
|
2,011,031
|
|
43,651,672
|
|
57,852,730
|
|
80,156,605
|
Business and sales
related taxes
|
|
(99,806)
|
|
(339,512)
|
|
(668,846)
|
|
(512,622)
|
NET
REVENUE
|
|
1,911,225
|
|
43,312,160
|
|
57,183,884
|
|
79,643,983
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
7,175,816
|
|
5,484,582
|
|
30,590,483
|
|
11,744,696
|
Service and development
|
|
2,246,516
|
|
3,205,208
|
|
5,788,317
|
|
6,441,310
|
General and administrative
|
|
3,247,121
|
|
2,274,261
|
|
7,797,437
|
|
4,118,811
|
Share-based compensation
|
|
383,556
|
|
723,831
|
|
5,508,249
|
|
723,831
|
Total operating expenses
|
|
13,053,009
|
|
11,687,882
|
|
49,684,486
|
|
23,028,648
|
INCOME (LOSS) FROM
OPERATIONS
|
|
(11,141,784)
|
|
31,624,278
|
|
7,499,398
|
|
56,615,335
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
Other
income
|
|
1,177,173
|
|
254,672
|
|
2,270,337
|
|
513,795
|
Other
expense
|
|
(3,484)
|
|
(14,691)
|
|
(26,342)
|
|
(20,325)
|
Total other income, net
|
|
1,173,689
|
|
239,981
|
|
2,243,995
|
|
493,470
|
INCOME (LOSS)
BEFORE INCOME TAXES
|
|
(9,968,095)
|
|
31,864,259
|
|
9,743,393
|
|
57,108,805
|
INCOME
TAX(BENEFIT) EXPENSE
|
|
(375,306)
|
|
4,958,434
|
|
7,058,142
|
|
8,643,375
|
NET (LOSS)
INCOME
|
|
(9,592,789)
|
|
26,905,825
|
|
2,685,251
|
|
48,465,430
|
Less: net income
attributable to non-controlling interest
|
|
-
|
|
30,906
|
|
-
|
|
28,652
|
NET (LOSS) INCOME
ATTRIBUTABLE TO
HEXINDAI INC'S SHAREHOLDERS
|
|
(9,592,789)
|
|
26,874,919
|
|
2,685,251
|
|
48,436,778
|
OTHER
COMPREHENSIVE (LOSS) INCOME
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
(202,280)
|
|
1,559,958
|
|
(10,725,337)
|
|
2,608,189
|
COMPREHENSIVE
(LOSS) INCOME
|
|
(9,795,069)
|
|
28,465,783
|
|
(8,040,086)
|
|
51,073,619
|
Less: comprehensive
income attributable to non-
controlling interest
|
|
-
|
|
133,237
|
|
-
|
|
132,814
|
COMPREHENSIVE
(LOSS) INCOME
ATTRIBUTABLE TO HEXINDAI INC'S
SHAREHOLDERS
|
|
(9,795,069)
|
|
28,332,546
|
|
(8,040,086)
|
|
50,940,805
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings
per common share
|
|
(0.20)
|
|
0.58
|
|
0.06
|
|
1.10
|
Diluted (loss)
earnings per common share
|
|
(0.20)
|
|
0.52
|
|
0.05
|
|
1.06
|
Weighted average
number of shares outstanding
- basic
|
|
48,937,900
|
|
46,131,964
|
|
48,556,305
|
|
43,987,816
|
Weighted average
number of shares outstanding
- diluted
|
|
48,937,900
|
|
51,534,829
|
|
53,161,520
|
|
45,788,771
|
HEXINDAI
INC.
|
RECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS
|
(UNAUDITED)
|
|
|
|
For Three Months
Ended
December 31,
|
|
For Nine Months
Ended
December 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
Net (loss) income
attributable to Hexindai Inc's
shareholders
|
|
(9,592,789)
|
|
26,874,919
|
|
2,685,251
|
|
48,436,778
|
Add: Share-based
compensation expenses*
|
|
383,556
|
|
723,831
|
|
5,508,249
|
|
723,831
|
Adjusted net
(loss) income attributable to Hexindai
Inc's shareholders
|
|
(9,209,233)
|
|
27,598,750
|
|
8,193,500
|
|
49,160,609
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
- basic
|
|
48,937,900
|
|
46,131,964
|
48,556,305
|
|
43,987,816
|
Weighted average
number of shares outstanding
- diluted
|
|
48,937,900
|
|
51,534,829
|
|
53,161,520
|
|
45,788,771
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings
per common share
|
|
(0.20)
|
|
0.58
|
|
0.06
|
|
1.10
|
Adjusted basic (loss)
earnings per common share
|
|
(0.19)
|
|
0.60
|
|
0.17
|
|
1.12
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per common share
|
|
(0.20)
|
|
0.52
|
|
0.05
|
|
1.06
|
Adjusted diluted
(loss) earnings per common share
|
|
(0.19)
|
|
0.54
|
|
0.15
|
|
1.07
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Hexindai Inc's
shareholders
|
|
(9,592,789)
|
|
26,874,919
|
|
2,685,251
|
|
48,436,778
|
Less: Interest
income
|
|
(370,656)
|
|
(101,634)
|
|
(609,850)
|
|
(250,866)
|
Add: Income
tax(benefit) expense**
|
|
(375,306)
|
|
4,958,434
|
|
7,058,142
|
|
8,643,375
|
Share-based
compensation expenses*
|
|
383,556
|
|
723,831
|
|
5,508,249
|
|
723,831
|
Adjusted
EBIT
|
|
(9,955,195)
|
|
32,455,550
|
|
14,641,792
|
|
57,553,118
|
|
* Share-based
compensation expenses are not tax deductible under relevant tax
laws and regulations in our tax jurisdiction.
|
** Income tax
expenses include US$55,598, US$15,245, US$91,478 and US$ 37,630
related to the current tax expenses on
interest income, which was recognized for the three months period
ended December 31, 2018 and 2017 and nine-months period
ended December 31, 2018 and 2017, respectively.
|
The following table
presents our summary operating data for three months ended
September 30, 2017 and 2018.
|
|
|
|
For Three Months
Ended
December 31,
|
|
For Nine Months
Ended
December 31,
|
|
Growth Rates
(4)
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
(RMB)
|
(US$)
|
|
(RMB)
|
(US$)
|
|
(RMB)
|
(US$)
|
|
(RMB)
|
(US$)
|
|
Three months
ended
December
31, 2018
compared to
December 31,
2017
|
|
Nine months
ended
December
31, 2018
compared to
December 31,
2017
|
Loan volume
facilitated
|
|
(in thousands,
except percentages and numbers (5))
|
|
(in thousands,
except percentages and numbers (5))
|
|
|
|
|
Credit loan
principal
|
|
201,173
|
29,095
|
|
2,570,798
|
388,745
|
|
3,371,882
|
503,732
|
|
5,610,349
|
835,471
|
|
-92.2%
|
|
-39.9%
|
Secured loan
principal
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
63,220
|
9,414
|
|
-
|
|
-100.0%
|
Total
|
|
201,173
|
29,095
|
|
2,570,798
|
388,745
|
|
3,371,882
|
503,732
|
|
5,673,569
|
844,885
|
|
-92.2%
|
|
-40.6%
|
Number of
transactions facilitated (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit loan
transactions
|
|
1,771
|
1,771
|
|
32,511
|
32,511
|
|
32,946
|
32,946
|
|
67,965
|
67,965
|
|
|
|
|
Secured loan
transactions
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
49
|
49
|
|
|
|
|
Total
|
|
1,771
|
1,771
|
|
32,511
|
32,511
|
|
32,946
|
32,946
|
|
68,014
|
68,014
|
|
|
|
|
Average
individual
transaction amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit loan
transactions
|
|
114
|
16
|
|
79
|
12
|
|
102
|
15
|
|
83
|
12
|
|
|
|
|
Secured loan
transactions
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
1,290
|
192
|
|
|
|
|
Overall
average
|
|
114
|
16
|
|
79
|
12
|
|
102
|
15
|
|
83
|
12
|
|
|
|
|
Gross billing
amount (net of
VAT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
loan
|
|
18,239
|
2,638
|
|
310,244
|
46,914
|
|
396,072
|
59,170
|
|
582,109
|
86,686
|
|
-94.1%
|
|
-32.0%
|
Secured
loan
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
1,458
|
217
|
|
-
|
|
-100.0%
|
Total
|
|
18,239
|
2,638
|
|
310,244
|
46,914
|
|
396,072
|
59,170
|
|
583,567
|
86,903
|
|
-94.1%
|
|
-32.1%
|
Gross billing
ratio (net of
VAT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
loan
|
|
9.1%
|
9.1%
|
|
12.1%
|
12.1%
|
|
11.7%
|
11.7%
|
|
10.4%
|
10.4%
|
|
|
|
|
Secured
loan
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
2.3%
|
2.3%
|
|
|
|
|
Total
|
|
9.1%
|
9.1%
|
|
12.1%
|
12.1%
|
|
11.7%
|
11.7%
|
|
10.3%
|
10.3%
|
|
|
|
|
Number of
borrowers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit loan
transactions
|
|
1,771
|
1,771
|
|
32,417
|
32,417
|
|
32,933
|
32,933
|
|
67,815
|
67,815
|
|
|
|
|
Secured loan
transactions
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
35
|
35
|
|
|
|
|
Total
|
|
1,771
|
1,771
|
|
32,417
|
32,417
|
|
32,933
|
32,933
|
|
67,850
|
67,850
|
|
-94.5%
|
|
-51.5%
|
Number of
investors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit loan
transactions (2)
|
|
18,006
|
18,006
|
|
45,452
|
45,452
|
|
91,554
|
91,554
|
|
80,836
|
80,836
|
|
|
|
|
Secured loan
transactions (3)
|
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
91
|
91
|
|
|
|
|
Credit and secured
loan
transactions
|
|
2,319
|
2,319
|
|
12,394
|
12,394
|
|
11,255
|
11,255
|
|
19,918
|
19,918
|
|
|
|
|
Total
|
|
20,325
|
20,325
|
|
57,846
|
57,846
|
|
102,809
|
102,809
|
|
100,845
|
100,845
|
|
-64.9%
|
|
1.9%
|
|
(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.
|
(5) Numbers refer to
number of transactions facilitated, number of investors and numbers
of borrowers presented in the table.
|
The following table sets forth
our revenue breakdown for the periods indicated:
|
|
|
|
|
|
|
|
For Three Months
Ended
December
31,
|
|
For Nine Months
Ended
December 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenue
(1)
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
Loan facilitation
service
|
|
2,510,689
|
|
46,754,718
|
|
61,432,825
|
|
87,054,743
|
Loan management
service
|
|
-
|
|
111,792
|
|
-
|
|
404,946
|
Post-origination
service
|
|
3,484,551
|
|
1,316,351
|
|
10,177,709
|
|
2,394,179
|
Interest income on
loans
|
|
1,054,519
|
|
-
|
|
2,485,845
|
|
-
|
Others
|
|
2,169
|
|
11,592
|
|
2,169
|
|
21,917
|
Business
tax
|
|
99,806
|
|
339,512
|
|
668,846
|
|
512,622
|
Cash
incentives
|
|
5,040,897
|
|
4,542,781
|
|
16,245,818
|
|
9,719,180
|
Net
Revenue
|
|
1,911,225
|
|
43,312,160
|
|
57,183,884
|
|
79,643,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents
amounts net of VAT
|
View original
content:http://www.prnewswire.com/news-releases/hexindai-reports-unaudited-third-quarter-of-fiscal-year-2019-financial-results-300804034.html
SOURCE Hexindai Inc.