Hexindai Reports Third Quarter of Fiscal Year 2018 Financial Results
On
Third Quarter of Fiscal Year 2018 Operational Highlights
- Total loan volume facilitated (1) was
US$388.7 million (RMB2.6 billion ) during the third quarter of fiscal year 2018, an increase of 187.1% from the third quarter of fiscal year 2017. - Gross billing amount (net of VAT)(2) was
US$46.9 million during the third quarter of fiscal year 2018, an increase of 483.8% from the third quarter of fiscal year 2017. - Gross billing ratio (net of VAT)(3) for credit loans was 12.1% during the third quarter of fiscal year 2018, an increase from 7.4% during the third quarter of fiscal year 2017.
- Number of borrowers (4) was 32,417 during the third quarter of fiscal year 2018, an increase of 285.3% from the third quarter of fiscal year 2017.
- Number of investors (5) was 57,846 during the third quarter of fiscal year 2018, an increase of 132.0% from the third quarter of fiscal year 2017.
(1) Loan volume 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 this period, 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. |
(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. |
Third Quarter of Fiscal Year 2018 Financial Highlights
- Net revenue was
US$43.3 million during the third quarter of fiscal year 2018, an increase of 575.9% from the third quarter of fiscal year 2017. - Operating expenses were
US$11.7 million during the third quarter of fiscal year 2018, an increase of 209.9% from the third quarter of fiscal year 2017. - Net income was
US$26.9 million during the third quarter of fiscal year 2018, a significant increase of 1589.1% from the third quarter of fiscal year 2017. - Adjusted net income attributable to
Hexindai Inc.'s shareholder (non-GAAP) in the third quarter of fiscal year 2018 wasUS$27.6 million , increased by 1632.6% fromUS$1.6 million in the third quarter of fiscal year 2017. - Basic EPS in the third quarter of fiscal year 2018 was
US$0.58 compared toUS$0.04 in the same period of fiscal year 2017. - Diluted EPS in the third quarter of fiscal year 2018 was
US$0.52 compared toUS$0.04 in the same period of fiscal year 2017.
Nine Months Ended December 31, 2017 Operational Data
Loan volume
Total loan volume facilitated during the nine months ended
Number of borrowers
Number of borrowers was 67,850 during the nine months ended
Number of investors
Number of investors was 100,845 during the nine months ended
"We delivered another solid quarter of financial and operational growth," commented Mr.
Third Quarter of Fiscal Year 2018 Unaudited Financial Results
Net revenue
Net revenue during the third quarter of fiscal year 2018 was
Operating expenses
Total operating expenses during the third quarter of fiscal year 2018 were
Sales and marketing expenses
Sales and marketing expenses during the third quarter of fiscal year 2018 were
Service and development expenses
Service and development expenses during the third quarter of fiscal year 2018 were
General and administrative expenses
General and administrative expenses during the third quarter of fiscal year 2018 were
Net income
As a result of the foregoing, a significant increase of 1589.1% in our net income, which increased from
Adjusted net income attributable to
Adjusted net income attributable to the Company's shareholders, which excluded share-based compensation expenses, increased by 1632.6% to
Nine Months Ended December 31, 2017 Unaudited Financial Results
Net revenue
Net revenue during the nine months ended
Operating expenses
Total operating expenses during the nine months ended
Sales and marketing expenses
Sales and marketing expense during the nine months ended
Service and development expenses
Service and development expenses during the nine months ended
General and administrative expenses
General and administrative expenses during the nine months ended
Net income
As a result of the foregoing, a significant increase of 1016.3% in our net income, which increased from
Adjusted net income attributable to
Adjusted net income attributable to the Company's shareholders, which excluded share-based compensation expenses, increased by 1032.4% to
Cash and Cash Flow
As of
Business Outlook
Based on the information available as of the date of this press release,
Three Months Ending
- Total loans facilitated will be in the range of
US$370.0 million to US$390.0 million . - Net revenue will be in the range of
US$27.0 million to US$29.0 million . - Adjusted net income will be in the range of
US$13.0 million to US$15.0 million .
Fiscal Year Ending
- Total loans facilitated will be in the range of
US$1.22 billion to US$1.24 billion . - Net revenue will be in the range of
US$107.0 million to US$109.0 million . - Adjusted net income will be in the range of
US$62.0 million to US$64.0 million .
Use of Non-GAAP Financial Measures
We used adjusted net income and adjusted EPS, non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. We believed that the adjusted net income 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 adjusted net income was 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 (loss)/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 measure 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 measure, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.
Recent Developments
Expanded Education and Communication Channels with Investors
In
Conference Call
The Company will host a conference call to discuss the earnings at
Dial-in numbers for the live conference call are as follows:
International |
+65 6713-5091 |
U.S. Toll Free |
+1 866-519-4004 |
Mainland China |
4006-208038 |
Hong Kong |
+852 3018-6771 |
Passcode: |
HX |
A telephone replay of the call will be available after the conclusion of the conference call through
Dial-in numbers for the replay are as follows:
International Dial-in |
+61 2-8199-0299 |
U.S. Toll Free |
+1 646-254-3697 |
Passcode: |
2187757 |
A live and archived webcast of the conference call will be available on the Investor Relations section of
About
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
For more information, please visit ir.hexindai.com
For investor inquiries, please contact:
Tel: +86 10 5370 9902 ext. 829
Email: ir@hexindai.com
Christensen
In
Mr.
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. INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(UNAUDITED) |
||||||||
December 31, |
March 31, |
|||||||
2017 |
2017 |
|||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash |
$ |
139,293,226 |
$ |
19,232,275 |
||||
Prepayments and other assets |
4,490,142 |
4,139,354 |
||||||
Amounts due from related parties |
- |
4,182,502 |
||||||
TOTAL CURRENT ASSETS |
143,783,368 |
27,554,131 |
||||||
Property, equipment and software at cost, net |
620,148 |
427,938 |
||||||
Deferred tax assets |
438,951 |
400,062 |
||||||
TOTAL ASSETS |
$ |
144,842,467 |
$ |
28,382,131 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
CURRENT LIABILITIES: |
||||||||
Accrued expenses and other current liabilities |
$ |
4,059,855 |
$ |
789,129 |
||||
Taxes payable |
17,289,055 |
4,088,646 |
||||||
TOTAL CURRENT LIABILITIES |
21,348,910 |
4,877,775 |
||||||
TOTAL LIABILITIES |
$ |
21,348,910 |
$ |
4,877,775 |
||||
SHAREHOLDERS' EQUITY: |
||||||||
Ordinary shares, $0.0001 par value, |
4,796 |
4,292 |
||||||
Additional paid-in capital |
57,693,590 |
13,285,717 |
||||||
Retained earnings |
60,195,878 |
11,759,100 |
||||||
Accumulated other comprehensive income |
959,274 |
(1,544,753) |
||||||
TOTAL HEXINDAI'S SHAREHOLDERRS' |
118,853,538 |
23,504,356 |
||||||
Non-controlling interest |
4,640,019 |
- |
||||||
TOTAL SHAREHOLDERS' EQUTIY |
123,493,557 |
23,504,356 |
||||||
TOTAL LIABILITIES AND |
$ |
144,842,467 |
$ |
28,382,131 |
HEXINDAI INC. |
|||||||||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
|||||||||||
(UNAUDITED) |
|||||||||||
For Three Months Ended |
For Nine Months Ended |
||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||
NET REVENUE |
|||||||||||
Loan facilitation, post-origination and other service, net |
$ |
43,651,672 |
$ |
6,472,383 |
$ |
80,156,605 |
$ |
15,562,404 |
|||
Business and sales related taxes |
(339,512) |
(64,267) |
(512,622) |
(90,268) |
|||||||
NET REVENUE |
43,312,160 |
6,408,116 |
79,643,983 |
15,472,136 |
|||||||
OPERATING EXPENSES |
|||||||||||
Sales and marketing |
5,484,582 |
1,412,340 |
11,744,696 |
3,266,088 |
|||||||
Service and development |
3,205,208 |
1,491,967 |
6,441,310 |
3,873,334 |
|||||||
General and administrative |
2,998,092 |
867,570 |
4,842,642 |
1,985,919 |
|||||||
Total operating expenses |
11,687,882 |
3,771,877 |
23,028,648 |
9,125,341 |
|||||||
INCOME FROM OPERATIONS |
31,624,278 |
2,636,239 |
56,615,335 |
6,346,795 |
|||||||
OTHER INCOME (EXPENSE) |
|||||||||||
Other income |
254,672 |
24,522 |
513,795 |
180,094 |
|||||||
Other expense |
(14,691) |
(251) |
(20,325) |
(15,828) |
|||||||
Total other income (expense), net |
239,981 |
24,271 |
493,470 |
164,266 |
|||||||
INCOME BEFORE INCOME TAXES |
31,864,259 |
2,660,510 |
57,108,805 |
6,511,061 |
|||||||
PROVISION FOR INCOME TAXES |
4,958,434 |
1,067,582 |
8,643,375 |
2,169,594 |
|||||||
NET INCOME |
26,905,825 |
1,592,928 |
48,465,430 |
4,341,467 |
|||||||
Less: net income attributable to non-controlling interest |
30,906 |
- |
28,652 |
- |
|||||||
NET INCOME ATTRIBUTABLE TO HEXINDAI |
26,874,919 |
1,592,928 |
48,436,778 |
4,341,467 |
|||||||
OTHER COMPREHENSIVE INCOME (LOSS) |
|||||||||||
Foreign currency translation adjustment |
1,559,958 |
(663,166) |
2,608,189 |
(1,155,757) |
|||||||
COMPREHENSIVE INCOME |
28,465,783 |
929,762 |
51,073,619 |
3,185,710 |
|||||||
Less: comprehensive income attributable to non- |
133,237 |
- |
132,814 |
- |
|||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO |
$ |
28,332,546 |
$ |
929,762 |
$ |
50,940,805 |
$ |
3,185,710 |
|||
Earnings per common share*-basic |
$ |
0.58 |
$ |
0.04 |
$ |
1.10 |
$ |
0.10 |
|||
Earnings per common share*-diluted |
$ |
0.52 |
$ |
0.04 |
$ |
1.06 |
$ |
0.10 |
|||
Weighted average number of shares outstanding*-basic |
46,131,964 |
42,080,000 |
43,987,816 |
42,080,000 |
|||||||
Weighted average number of shares outstanding*-diluted |
51,534,829 |
42,080,000 |
45,788,771 |
42,080,000 |
|||||||
* 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 |
For Nine Months Ended |
||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||
Net income attributable to Hexindai Inc.'s shareholder |
$ |
26,874,919 |
$ |
1,592,928 |
$ |
48,436,778 |
$ |
4,341,467 |
|||
Add: Share-based compensation expenses |
723,831 |
- |
723,831 |
- |
|||||||
Non-GAAP net income attributable to Hexindai Inc.'s |
$ |
27,598,750 |
$ |
1,592,928 |
$ |
49,160,609 |
$ |
4,341,467 |
|||
Weighted average number of shares outstanding*-basic |
46,131,964 |
42,080,000 |
43,987,816 |
42,080,000 |
|||||||
Weighted average number of shares outstanding*-diluted |
51,534,829 |
42,080,000 |
45,788,771 |
42,080,000 |
|||||||
Earnings per common share*-basic |
$ |
0.58 |
$ |
0.04 |
$ |
1.10 |
$ |
0.10 |
|||
Adjustment related to share based compensation |
$ |
0.02 |
$ |
0.00 |
$ |
0.02 |
$ |
0.00 |
|||
Non-GAAP earnings per common share*-basic |
$ |
0.60 |
$ |
0.04 |
$ |
1.12 |
$ |
0.10 |
|||
Earnings per common share*-diluted |
$ |
0.52 |
$ |
0.04 |
$ |
1.06 |
$ |
0.10 |
|||
Adjustment related to share based compensation |
$ |
0.02 |
$ |
0.00 |
$ |
0.01 |
$ |
0.00 |
|||
Non-GAAP earnings per common share*-diluted |
$ |
0.54 |
$ |
0.04 |
$ |
1.07 |
$ |
0.10 |
|||
* 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 nine months ended
For Three Months Ended December 31, |
For Nine Months Ended December 31, |
|||||||||||||
2016 |
2017 |
2016 |
2017 |
Growth Rates(4) |
||||||||||
(RMB) |
(US$) |
(RMB) |
(US$) |
(RMB) |
(US$) |
(RMB) |
(US$) |
Three Months ended |
Nine Months ended |
|||||
Loan volume facilitated |
(in thousands, except percentages and numbers) |
(in thousands, except percentages and numbers) |
||||||||||||
Credit loan principal |
684,063 |
100,133 |
2,570,798 |
388,745 |
1,532,231 |
229,616 |
5,610,349 |
835,471 |
275.8% |
266.2% |
||||
Secured loan principal |
211,350 |
30,937 |
- |
- |
995,624 |
149,201 |
63,220 |
9,414 |
-100.0% |
-93.7% |
||||
Total |
895,413 |
131,070 |
2,570,798 |
388,745 |
2,527,855 |
378,817 |
5,673,569 |
844,885 |
187.1% |
124.4% |
||||
Number of transactions facilitated(1) |
||||||||||||||
Credit loan transactions |
8,403 |
8,403 |
32,511 |
32,511 |
19,724 |
19,724 |
67,965 |
67,965 |
||||||
Secured loan transactions |
206 |
206 |
- |
- |
1,216 |
1,216 |
49 |
49 |
||||||
Total |
8,609 |
8,609 |
32,511 |
32,511 |
20,940 |
20,940 |
68,014 |
68,014 |
||||||
Average individual transaction amount |
||||||||||||||
Credit loan transactions |
81 |
12 |
79 |
12 |
78 |
12 |
83 |
12 |
||||||
Secured loan transactions |
1,026 |
150 |
- |
- |
819 |
123 |
1,290 |
192 |
||||||
Overall average |
104 |
15 |
79 |
12 |
121 |
18 |
83 |
12 |
||||||
Gross billing amount (net of VAT) |
||||||||||||||
Credit loan |
50,341 |
7,369 |
310,244 |
46,914 |
113,189 |
16,962 |
582,109 |
86,686 |
516.3% |
414.3% |
||||
Secured loan |
2,799 |
410 |
- |
- |
12,836 |
1,924 |
1,458 |
217 |
-100.0% |
-88.6% |
||||
Total |
53,140 |
7,779 |
310,244 |
46,914 |
126,025 |
18,886 |
583,567 |
86,903 |
483.8% |
363.1% |
||||
Gross billing ratio (net of VAT) |
||||||||||||||
Credit loan |
7.4% |
7.4% |
12.1% |
12.1% |
7.4% |
7.4% |
10.4% |
10.4% |
||||||
Secured loan |
1.3% |
1.3% |
- |
- |
1.3% |
1.3% |
2.3% |
2.3% |
||||||
Total |
5.9% |
5.9% |
12.1% |
12.1% |
5.0% |
5.0% |
10.3% |
10.3% |
||||||
Number of borrowers |
||||||||||||||
Credit loan transactions |
8,403 |
8,403 |
32,417 |
32,417 |
19,724 |
19,724 |
67,815 |
67,815 |
||||||
Secured loan transactions |
10 |
10 |
- |
- |
363 |
363 |
35 |
35 |
||||||
Total |
8,413 |
8,413 |
32,417 |
32,417 |
20,087 |
20,087 |
67,850 |
67,850 |
285.3% |
237.8% |
||||
Number of investors |
||||||||||||||
Credit loan transactions (2) |
6,893 |
6,893 |
45,452 |
45,452 |
8,570 |
8,570 |
80,836 |
80,836 |
||||||
Secured loan transactions (3) |
4,935 |
4,935 |
- |
- |
14,374 |
14,374 |
91 |
91 |
||||||
Credit and secured loan transactions |
13,108 |
13,108 |
12,394 |
12,394 |
21,602 |
21,602 |
19,918 |
19,918 |
||||||
Total |
24,936 |
24,936 |
57,846 |
57,846 |
44,546 |
44,546 |
100,845 |
100,845 |
132.0% |
126.4% |
||||
(1) Number of loan 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 December 31, |
For the Nine Months Ended |
||||||||
2017 |
2016 |
2017 |
2016 |
||||||
Revenue (1) |
|||||||||
Loan facilitation service |
$ |
46,754,718 |
$ |
7,380,145 |
$ |
87,054,743 |
$ |
16,902,500 |
|
Loan management service |
111,792 |
526,560 |
404,946 |
2,428,268 |
|||||
Post-origination service |
1,316,351 |
418,817 |
2,394,179 |
1,060,319 |
|||||
Others |
11,592 |
25,427 |
21,917 |
50,466 |
|||||
Total revenue |
48,194,453 |
8,350,949 |
89,875,785 |
20,441,553 |
|||||
Business tax |
339,512 |
64,267 |
512,622 |
90,268 |
|||||
Cash incentives |
4,542,781 |
252,394 |
9,719,180 |
845,319 |
|||||
Risk reserve liability charge |
- |
1,626,172 |
- |
4,033,830 |
|||||
Net Revenue |
$ |
43,312,160 |
$ |
6,408,116 |
$ |
79,643,983 |
$ |
15,472,136 |
|
(1) Represents amounts net of VAT |
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SOURCE