Hexindai Reports Unaudited First Quarter of Fiscal Year 2020 Financial Results
Throughout the release, each ADS represents one ordinary share. Fiscal year refers to the 12 months ended March 31.
First Quarter of Fiscal Year 2020 Operational Highlights
- Total loan volume facilitated[1] was
US$ 28.2 million (RMB192.3 million ) during the first quarter of fiscal year 2020, a decrease of 93.5% from the first quarter of fiscal year 2019. - Gross billing amount (net of VAT)[2] was
US$4.7 million during the first quarter of fiscal year 2020, a decrease of 90.7% from the first quarter of fiscal year 2019. - Gross billing ratio (net of VAT)[3] for credit loans was 16.7% during the first quarter of fiscal year 2020, an increase from 11.7% during the first quarter of fiscal year 2019.
- Number of borrowers[4]was 18,546 during the first quarter of fiscal year 2020, a decrease of 36.0% from the first quarter of fiscal year 2019.
- Number of investors[5] was 9,534 during the first quarter of fiscal year 2020, a decrease of 85.9% from the first quarter of fiscal year 2019.
First Quarter of Fiscal Year 2020 Unaudited Financial Highlights
- Net revenue was
US$4.9 million during the first quarter of fiscal year 2020, a decrease of 90.5% from the first quarter of fiscal year 2019. - Operating costs and expenses were
US$12.6 million during the first quarter of fiscal year 2020, a decrease of 18.9% from the first quarter of fiscal year 2019. - Net loss was
US$7.2 million during the first quarter of fiscal year 2020, compared to net income ofUS$29.7 million in first quarter of fiscal year 2019. - Basic loss per ordinary shares in the first quarter of fiscal year 2020 was
US$0.15 , compared to basic earnings per ordinary shares ("EPS") ofUS$0.62 in first quarter of fiscal year 2019. - Diluted loss per ordinary shares in the first quarter of fiscal year 2020 was
US$0.15 , compared to diluted EPS ofUS$0.56 in first quarter of fiscal year 2019. - Adjusted net loss attributable to
Hexindai Inc.'s shareholders (Non-GAAP) in the first quarter of fiscal year 2020 wasUS$7.0 million , compared to adjusted net income attributable toHexindai Inc.'s shareholders (Non-GAAP) ofUS$29.9 million in the first quarter of fiscal year 2019. - Adjusted EBIT (Non-GAAP) in the first quarter of fiscal year 2020 was
(US$5.8) million , compared toUS$36.6 million in the first quarter of fiscal year 2019.
[1] Total loan volume facilitated is defined as the total principal amount of loans facilitated on our marketplace and referred to other third-parties during the relevant period. We started to provide recommendation services by referring certain borrowers to financial partners since December 2018. |
[2] "Gross billing amount" is defined as the sum of (i) the aggregated loan facilitation fees charged to borrowers before cash incentives, and (ii) the recommendation service fees received from financial partners during the relevant period, net of value added tax. It differs from the revenue recognized at the time of recognition. For traditional individual credit loan transactions, 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. For individual credit loans launched in the third quarter of the fiscal year ended March 31, 2018, as 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. For recommendation services, the gross billing amount equals the recommendation service fees. |
[3] "Gross billing ratio" is defined as the gross billing amount divided by loan volume facilitated, presented as a 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 and referred to other third-parties during the relevant period. We started to provide recommendation services by referring certain borrowers to financial partners since December 2018. |
[5] Refers to individual investors who made loan investments on our online marketplace during the relevant period. |
Through
Mr.
"This loan assistance business will cater to the growing demand from our partner institutions for loans that are short-term and in small amounts, which closely matches the profile of the high-quality microfinancing loans we facilitate. We spent the past several months carefully customizing and fine-tuning our risk management system using the enormous amounts of data generated by our legacy P2P products to ensure it continues to be highly-effective at assessing borrowers for our microfinancing loan products. While the ramp-up period for our new loan assistance business was not quick enough to offset the decline of our P2P business, which continues to be negatively impacted by a challenging industry environment, net revenue has begun to gradually recover, increasing sequentially by 18.6%. I am pleased with the progress we've made during the quarter while we make the transition of our business and am fully confident that this will allow us to create value for our users and shareholders and position us to generate long-term sustainable growth."
First Quarter of Fiscal Year 2020 Unaudited Financial Results
Net revenue
Net revenue during the first quarter of fiscal year 2020 was
Operating costs and expenses
Total operating expenses during the first quarter of fiscal year 2020 were
Service and development expenses
Service and development expenses during the first quarter of fiscal year 2020 were
Sales and marketing expenses
Sales and marketing expenses during the first quarter of fiscal year 2020 were
General and administrative expenses
General and administrative expenses during the first quarter of fiscal year 2020 were
Finance cost
Finance cost during the first quarter of fiscal year 2020 were
Share-based compensation
Share-based compensation during the first quarter of fiscal year 2020 was
Net (loss) income
As a result of the foregoing, the net loss was
Net (loss) income attributable to
Net loss attributable to the Company's shareholders was
Adjusted net (loss) income attributable to
Adjusted net loss attributable to the Company's shareholders, which excluded share-based compensation expenses, was
Cash and Cash Flow
As of
Use of Non-GAAP Financial Measures
We used adjusted net (loss) income, adjusted (loss) earnings per ordinary shares 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 (loss) income before share-based compensation expenses. "Adjusted EBIT" is earnings before interest, income taxes and share-based compensation. We believed that the adjusted net (loss) income, adjusted (loss) earnings per ordinary shares and adjusted EBIT provided useful information about our operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.
The non-GAAP measures were not defined under US GAAP and was not presented in accordance with US GAAP. These non-GAAP financial measures 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(loss), cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with US GAAP.
We mitigate these limitations by reconciling the non-GAAP financial measures to the most comparable US 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
Recent Developments
In
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 6713-5090 |
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
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: |
1727727 |
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:
Investor Relations
Tel: +86-10-5357 9038
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. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(UNAUDITED) |
|||||
June 30, |
March 31, |
||||
2019 |
2019 |
||||
USD |
USD |
||||
ASSETS |
|||||
CURRENT ASSETS: |
|||||
Cash and cash equivalents |
25,881,578 |
57,372,128 |
|||
Accounts receivable and contract assets |
739,509 |
418,639 |
|||
Loans receivable-current, net of provision for loan losses |
29,026,113 |
36,554,913 |
|||
Interest receivable |
3,546 |
- |
|||
Prepayments and other assets |
2,871,612 |
3,334,965 |
|||
TOTAL CURRENT ASSETS |
58,522,358 |
97,680,645 |
|||
Loans receivable-non-current, net of provision for loan losses |
50,468,578 |
39,810,461 |
|||
Long term investments |
30,789,836 |
30,789,836 |
|||
Property, equipment and software, net |
1,296,624 |
1,253,723 |
|||
Right-of-use assets |
2,098,299 |
- |
|||
Deferred tax assets |
3,614,605 |
3,721,177 |
|||
TOTAL ASSETS |
146,790,300 |
173,255,842 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
CURRENT LIABILITIES: |
|||||
Interests payable |
600,000 |
- |
|||
Accrued expenses and other current liabilities |
1,764,760 |
2,791,099 |
|||
Consideration payable |
- |
14,289,371 |
|||
Deferred revenue-current |
148,205 |
110,726 |
|||
Lease liabilities-current |
1,567,780 |
- |
|||
Taxes payable |
7,416,533 |
9,371,530 |
|||
TOTAL CURRENT LIABILITIES |
11,497,278 |
26,562,726 |
|||
Note payable |
20,000,000 |
20,000,000 |
|||
Lease liabilities-non-current |
535,930 |
- |
|||
Deferred revenue-non-current |
193,459 |
189,958 |
|||
TOTAL LIABILITIES |
32,226,667 |
46,752,684 |
|||
SHAREHOLDERS' EQUITY: |
|||||
Ordinary shares ($0.0001 par value, 500,000,000 shares |
4,985 |
4,963 |
|||
Additional paid-in capital |
60,196,828 |
59,806,865 |
|||
Treasury stock (1,165,883 and 421,220 shares as of June 30,2019 and March 31, 2019, respectively) |
(3,988,370) |
(1,320,468) |
|||
Retained earnings |
62,608,345 |
69,768,756 |
|||
Accumulated other comprehensive loss |
(4,258,155) |
(1,756,958) |
|||
TOTAL SHAREHOLDERS' EQUITY |
114,563,633 |
126,503,158 |
|||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
146,790,300 |
173,255,842 |
|||
HEXINDAI INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||||
(UNAUDITED) |
|||||
For Three Months Ended June 30, |
|||||
2019 |
2018 |
||||
USD |
USD |
||||
REVENUE |
|||||
Loan facilitation, post-origination and other service |
3,694,104 |
51,447,278 |
|||
Interest income |
1,341,547 |
749,727 |
|||
Tax and surcharges |
(117,117) |
(545,508) |
|||
NET REVENUE |
4,918,534 |
51,651,497 |
|||
OPERATING COSTS AND EXPENSES |
|||||
Service and development |
1,941,517 |
1,364,568 |
|||
Sales and marketing |
7,524,148 |
11,665,104 |
|||
General and administrative |
2,331,413 |
2,313,793 |
|||
Finance cost |
629,913 |
- |
|||
Share-based compensation |
194,584 |
214,278 |
|||
Total operating costs and expenses |
12,621,575 |
15,557,743 |
|||
(LOSS) INCOME FROM OPERATIONS |
(7,703,041) |
36,093,754 |
|||
OTHER INCOME |
|||||
Other income |
1,154,348 |
484,977 |
|||
Other expense |
(4,077) |
(19,909) |
|||
Total other income, net |
1,150,271 |
465,068 |
|||
(LOSS) INCOME BEFORE INCOME TAXES |
(6,552,770) |
36,558,822 |
|||
INCOME TAXES EXPENSES |
607,641 |
6,880,207 |
|||
NET (LOSS) INCOME |
(7,160,411) |
29,678,615 |
|||
OTHER COMPREHENSIVE LOSS |
|||||
Foreign currency translation adjustment |
(2,501,198) |
(6,004,778) |
|||
COMPREHENSIVE (LOSS) INCOME |
(9,661,609) |
23,673,837 |
|||
Net (loss) income per share attributable to Hexindai's shareholders |
|||||
Basic |
(0.15) |
0.62 |
|||
Diluted |
(0.15) |
0.56 |
|||
Weighted average shares used in calculation of net income per share |
|||||
Basic |
48,591,927 |
47,999,127 |
|||
Diluted |
48,591,927 |
53,011,074 |
|||
HEXINDAI INC. |
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RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS |
|||||
(UNAUDITED) |
|||||
For Three Months Ended June 30, |
|||||
2019 |
2018 |
||||
USD |
USD |
||||
Net (loss) income attributable to Hexindai Inc.'s shareholders |
(7,160,411) |
29,678,615 |
|||
Add: Share-based compensation expenses* |
194,584 |
214,278 |
|||
Adjusted net (loss) income attributable to Hexindai Inc.'s shareholders |
(6,965,827) |
29,892,893 |
|||
Weighted average number of shares outstanding*-basic |
48,591,927 |
47,999,127 |
|||
Weighted average number of shares outstanding*-diluted |
48,591,927 |
53,011,074 |
|||
(Loss) earnings per ordinary shares*-basic |
(0.15) |
0.62 |
|||
Adjustment related to share based compensation expenses*-basic |
0.01 |
- |
|||
Adjusted (loss) earnings per ordinary share*-basic |
(0.14) |
0.62 |
|||
(Loss) earnings per ordinary shares*-diluted |
(0.15) |
0.56 |
|||
Adjustment related to share based compensation expenses*-diluted |
0.01 |
- |
|||
Adjusted (loss) earnings per ordinary shares*-diluted |
(0.14) |
0.56 |
|||
Net (loss) income attributable to Hexindai Inc.'s shareholders |
(7,160,411) |
29,678,615 |
|||
Add: Interest expense (income) |
560,964 |
(203,513) |
|||
Income tax expenses |
607,641 |
6,880,207 |
|||
Share-based compensation expenses* |
194,584 |
214,278 |
|||
Adjusted EBIT |
(5,797,222) |
36,569,587 |
|||
* Share-based compensation expenses are not tax deductible under relevant tax laws and regulations in our tax jurisdiction. |
The following table presents our summary operating data for three months ended June 30, 2019 and 2018. |
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For Three Months Ended June 30, |
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2019 |
2018 |
Growth Rates [3] |
|||||||
(RMB) |
(US$) |
(RMB) |
(US$) |
Three months ended |
|||||
Loan volume facilitated |
(in thousands, except percentages and numbers) |
||||||||
Credit loan principal |
192,321 |
28,202 |
2,940,672 |
461,123 |
-93.5% |
||||
Number of transactions facilitated[1] |
|||||||||
Credit loan transactions |
18,546 |
18,546 |
28,992 |
28,992 |
|||||
Average individual transaction amount |
|||||||||
Credit loan transactions |
10 |
2 |
101 |
16 |
|||||
Gross billing amount (net of VAT) |
|||||||||
Credit loan |
32,160 |
4,716 |
344,695 |
54,051 |
-90.7% |
||||
Gross billing ratio (net of VAT) |
|||||||||
Credit loan |
16.7% |
16.7% |
11.7% |
11.7% |
|||||
Number of borrowers |
|||||||||
Credit loan transactions |
18,546 |
18,546 |
28,979 |
28,979 |
-36.0% |
||||
Number of investors |
|||||||||
Credit loan transactions [2] |
8,784 |
8,784 |
58,596 |
58,596 |
|||||
Credit and secured loan transactions |
750 |
750 |
9,011 |
9,011 |
|||||
Total |
9,534 |
9,534 |
67,607 |
67,607 |
-85.9% |
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[1] Number of loan transactions facilitated is defined as the total number of loans facilitated on our marketplace and referred to other third-parties during the relevant |
[2] Refers to individual investors who exclusively invested in credit loan transactions during the relevant period. |
[3] Growth rates are calculated by RMB and exclude the impact from exchange rates in different reporting periods to reflect a real growth rate. |
The following table sets forth our revenue breakdown for the periods indicated: |
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For Three Months Ended June 30, |
||||
2019 |
2018 |
|||
Revenue [1] |
US$ |
US$ |
||
Loan facilitation service |
3,577,785 |
54,051,878 |
||
Post-origination service |
270,398 |
2,364,879 |
||
Interest income |
1,341,547 |
749,727 |
||
Total revenue |
5,189,730 |
57,166,484 |
||
Tax and surcharges |
(117,117) |
(545,508) |
||
Cash incentives |
(154,079) |
(4,969,479) |
||
Net Revenue |
4,918,534 |
51,651,497 |
||
[1] Represents amounts net of VAT |
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