×

Yirendai Reports Third Quarter 2017 Financial Results

BEIJING, Nov. 14, 2017 /PRNewswire/ -- Yirendai Ltd. (NYSE: YRD) ("Yirendai" or the "Company"), a leading fintech company in China, today announced its unaudited financial results for the quarter ended September 30, 2017.


For Three Months Ended

in RMB million

September
30, 2017

June
30, 2017

September
30, 2016

QoQ
Change

YoY
Change

Amount of Loans Facilitated

12,185.4

8,536.1

5,617.5

43%

117%

Total Net Revenue

1,513.9

1,183.1

876.7

28%

73%

Total Fees Billed (non-GAAP)

2,475.3

1,862.5

1,322.6

33%

87%

Net Income

303.0

269.1

344.3

13%

-12%

Adjusted EBITDA(1) (non-GAAP)

422.4

378.4

220.7

12%

91%

Adjusted Net Income (2) (non-GAAP)

303.0

269.1

192.6

13%

57%

In the third quarter of 2017, Yirendai facilitated RMB 12,185.4 million (US$1,831.5 million) of loans to 192,725 qualified individual borrowers through its online marketplace, representing a year-over-year growth of 117%; 75.7% of the borrowers were acquired from online channels; 57.2% of the loan volume was originated from online channels and nearly 100% of the online volume was facilitated through mobile.

In the third quarter of 2017, Yirendai facilitated 214,967 investors with total investment amount of RMB 13,510.0 million (US$2,030.6 million), 100% of which was facilitated through its online platform and 92% of which was facilitated through its mobile application.

For the third quarter of 2017, total net revenue was RMB 1,513.9 million (US$227.5 million), an increase of 28% from the previous quarter and 73% year-over-year; net income was RMB 303.0 million (US$45.5 million), and increase of 13% from the previous quarter and a decrease of 12% year-over-year. The decrease of net income is mainly because that, in the third quarter of 2016, the Company recognized a tax credit of RMB 151.7 million because one of its subsidiaries became qualified as a software enterprise which makes it eligible for an exemption of enterprise income tax for 2015 and 2016. Excluding the impact of the tax credit, adjusted net income in the third quarter of 2016 was RMB 192.6 million.

"We are pleased to deliver another strong quarter as our loan origination continued to grow rapidly, especially driven by online business," commented Ms. Yihan Fang, Chief Executive Officer of Yirendai. "In addition, we have seen smooth yet accelerating progress of our online wealth management and new platform businesses. We will continue to focus on technological innovations, product development and customer service to drive the robust momentum of our online operations. In addition, we will continue to invest heavily in our technology platform, data analytics, machine learning and AI capabilities to drive our business growth."

"Our strong financial results in this quarter was primarily driven by the continued strong demand of our differentiated product offerings from our customers, enabled by our enhanced online customer acquisition and service capabilities," commented Mr. Dennis Cong, Chief Financial Officer of Yirendai. "We will continue to focus on driving strong growth with long-term profitability in our core product and service offerings, and expect to see strong momentum in our wealth management and platform business."

Third quarter 2017 Financial Results

Total amount of loans facilitated in the third quarter of 2017 was RMB 12,185.4 million (US$1,831.5 million), increased by 117% year-over-year from RMB 5,617.5 million in the same period last year, reflecting strong demand for our products and services, especially from customers acquired from online channels. As of September 30, 2017, the Yirendai platform had facilitated approximately RMB 60.5 billion (US$9.1 billion) in loan principal since its inception.

Starting from the third quarter of 2017, Yirendai changed its calculation method for an operational metric - the amount of loans facilitated. In October 2016, the Company launched a new program named "Top-up Program" whereby we facilitate a new loan for a qualified borrower to replace his or her existing loan on our platform. Previously, only the top-up amount, i.e. the portion of the new loan exceeding the outstanding balance of the existing loan, is included in the amount of loans facilitated presented. To follow the industry's general practice, under the new calculation method, the total contractual amount of the new loan will be included in the amount of loans facilitated. The Company believes this change of calculation method will better align its operational metrics with the industry and better reflect its risk performance. Prior period numbers have been restated to reflect the change.

Total net revenue in the third quarter of 2017 was RMB 1,513.9 million (US$227.5 million), increased by 73% from RMB 876.7 million in the same period last year. The increase of total net revenue was mainly attributable to the growth of loan origination volume, increased service fees billed to investors and increased monthly fees billed to borrowers as our remaining loan balance continued to expand.

Total fees billed (non-GAAP) in the third quarter of 2017 were RMB 2,475.3 million (US$372.0 million), increased by 87% from RMB 1,322.6 million in the same period last year, driven by the growth of loan origination volume. Upfront fees billed to borrowers in the third quarter of 2017 were RMB 2,046.7 million (US$307.6 million), increased by 72% from RMB 1,192.4 million in the same period last year. Monthly fees billed to borrowers in the third quarter of 2017 were RMB 292.2 million (US$43.9 million), increased by 176% from RMB 105.8 million in the same period last year. The significant year-over-year increase in monthly fees billed to borrowers was primarily attributable to the increase in loans generated from online channels, which features a fee collection schedule with monthly payments in addition to the upfront portion. Service fees billed to investors in the third quarter of 2017 were RMB 272.0 million (US$40.9 million), increased by 145% from RMB 110.9 million in the same period last year. The significant year-over-year increase in service fees billed to investors was primarily attributable to the increase in the total AUM.

Sales and marketing expenses in the third quarter of 2017 were RMB 844.2 million (US$126.9 million), increased by 37% from RMB 617.9 million in the previous quarter and compared to RMB 423.0 million in the same period last year. Sales and marketing expenses in the third quarter of 2017 accounted for 6.9% of amount of loans facilitated, decreased from 7.2% in the previous quarter and 7.5% in the same period last year. Sales and marketing expenses as a percentage of amount of loans facilitated decreased due to increased customer acquisition efficiencies as well as an increase in the amount of loans facilitated from repeat borrowers

Origination and servicing costs in the third quarter of 2017 were RMB 119.0 million (US$17.9 million), compared to RMB 93.1 million in the previous quarter and RMB 47.5 million in the same period last year. Origination and servicing costs in the third quarter of 2017 accounted for 1.0% of amount of loans facilitated, decreased from 1.1% in the previous quarter and increased from 0.8% in the same period last year.

General and administrative expenses in the third quarter of 2017 were RMB 172.6 million (US$25.9 million), compared to RMB 98.6 million in the previous quarter and RMB 189.0 million in the same period last year. General and administrative expenses in the third quarter of 2017 accounted for 11.4% of total net revenue, compared to 8.3% in the previous quarter and 21.6% in the same period last year. The increase in general and administrative expenses as percentage of total net revenue was primarily attributable to share-based compensation expenses of RMB 60.1 million (USD$9.0 million) in this quarter.

Income tax expense in the third quarter of 2017 was RMB 85.7 million (US$12.9 million). Since the first quarter of 2017, Yi Ren Heng Ye Technology Development (Beijing) Co., Ltd., a subsidiary of the Company, enjoyed a favorable enterprise income tax rate of 12.5% as a software enterprise which qualification was confirmed by local tax bureau in the third quarter of 2016. This makes it eligible for an exemption of enterprise income tax for 2015 and 2016 and a favorable enterprise income tax rate of 12.5% for 2017, 2018 and 2019.

Net income in the third quarter of 2017 was RMB 303.0 million (US$45.5 million), increased by 13% from RMB 269.1 million in the previous quarter and decreased by 12% from RMB 344.3 million for the same period last year.

Adjusted EBITDA (non-GAAP) in the third quarter of 2017 was RMB 422.4 million (US$63.5 million), increased by 12% from RMB 378.4 million in the previous quarter and increased by 91% from RMB 220.7 million in the same period last year. Adjusted EBITDA margin1 (non-GAAP) in the third quarter of 2017 was 27.9%, compared to 32.0% in the previous quarter and 25.2% in the same period last year.

Adjusted net income (non-GAAP) in the third quarter of 2017 was RMB 303.0 million (US$45.5 million), increased by 13% from RMB 269.1 million in the previous quarter and increased by 57% from RMB 192.6 million for the same period last year. In the third quarter of 2016, the Company recognized a tax credit of RMB 151.7 million because one of its subsidiaries became qualified as a software enterprise which makes it eligible for an exemption of enterprise income tax for 2015 and 2016. Excluding the impact of the tax credit, adjusted net income in the third quarter of 2016 was RMB 192.6 million.

Basic income per ADS in the third quarter of 2017 was RMB 5.00 (US$0.75), compared to RMB 4.50 in the previous quarter and RMB 5.76 in the same period last year.

Diluted income per ADS in the third quarter of 2017 was RMB 4.91 (US$0.74), compared to RMB 4.45 in the previous quarter and RMB 5.70 in the same period last year.

Net cash generated from operating activities in the third quarter of 2017 was RMB 346.3 million (US$52.1 million), compared to RMB 530.4 million in the previous quarter and RMB 450.6 million in the same period last year.

As of September 30, 2017, cash and cash equivalents was RMB 1,403.5 million (US$ 211.0 million), compared to RMB 891.2 million as of June 30, 2017. As of September 30, 2017, balance of held-to-maturity investments was RMB 168.9 million (US$25.4 million), compared to RMB 589.3 million as of June 30, 2017. As of September 30, 2017, balance of available-for-sale investments was RMB 996.7 million (US$149.8 million), compared to RMB 1,262.3 million as of June 30, 2017. The decrease in the total balance of cash and cash equivalents, held-to-maturity and available-for-sale investments was mainly attributable to the need for increased operating cash to fund our accelerating business growth this quarter.

Quality Assurance Program and Guarantee. In the third quarter of 2017, Yirendai accrued liabilities from quality assurance program of RMB 889.7 million (US$133.7 million), which is equal to 8% of the loans facilitated through its marketplace covered by the quality assurance program during the period. For top-up loans, the Company only accrues 8% of the top-up amount, ie. the portion of the new loan exceeding the outstanding balance of the existing loan. During the quarter, the Company released liabilities of RMB 464.7 million (US$ 69.8 million) to pay out the outstanding principal and accrued interest of default loans. As of September 30, 2017, liabilities from quality assurance program and guarantee were RMB 2,392.8 million (US$359.6 million).

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

Cumulative M3+ net charge-off rates. As of September 30, 2017, the cumulative M3+ net charge-off rate for loans originated in 2015 was 8.8%, compared to 8.3% as of June 30, 2017. As of September 30, 2017, the cumulative M3+ net charge-off rate for loans originated in 2016 was 4.6%, compared to 3.4% as of June 30, 2017. As the 2015 and 2016 vintage loans continue to mature, the charge off level is consistent with our risk performance expectation.

Other Operating Metrics and Business Results

  • As of September 30, 2017, remaining principal of performing loans totaled RMB 34.2 billion (US$5.1 billion), increased by 23% from RMB 27.9 billion as of June 30, 2017 and 101% from RMB 17.0 billion as of September 30, 2016.
  • In the third quarter of 2017, Grade A, B, C and D loans represented 1.7%, 8.7%, 14.1%, and 75.5% and Grade I, II, III, IV and V loans represented 6.5%, 24.6%, 27.6%, 25.8% and 15.5% of the Company's product portfolio, respectively.

Other Developments

Cooperation with Zhejiang Chouzhou Commercial Bank

During the third quarter of 2017, Yirendai officially started cooperating with Zhejiang Chouzhou Commercial Bank to provide financing services to individual consumers, leveraging the Company's online lending and risk management capabilities. The cooperation has a one-year term and commenced in August 2017. Over the one-year term, Yirendai and CreditEase will have access to a RMB 3 billion line-of-credit. The line-of-credit represents an additional source of funding for Yirendai and CreditEase's lending business.

Management Transition

In the third quarter of 2017, Ms. Yiting Pan completed her transition from her position as Yirendai's Chief Risk Officer into a new management role with CreditEase Offshore Private Credit Fund in the U.S. Dr. Yichuan Pei, Yirendai's Chief Credit Officer appointed in March 2017, officially assumed the role of the Company's Chief Risk Officer position and took over full responsibilities of risk management. Dr. Pei joined Yirendai from Ping An Bank where he served as Vice General Manager. Dr. Pei brings with him over 26 years of experience in the financial industry from consumer lending risk management, credit product marketing management, and asset-backed securities valuation in the United States.

Business Outlook

Based on the information available as of the date of this press release, Yirendai provides the following outlook, which reflects the Company's current and preliminary view and is subject to change. The following outlook does not take into consideration the impact of stock-based compensation expenses.

Full Year 2017

  • ŸTotal loans facilitated will be in the range of RMB 40,000 million to RMB 40,500 million.
  • ŸTotal net revenue will be in the range of RMB 5,200 million to RMB 5,300 million.
  • ŸAdjusted EBITDA (non-GAAP) will be in the range of RMB 1,600 million to RMB 1,620 million.

Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as fees billed, adjusted EBITDA, adjusted EBITDA margin and adjusted net income as supplemental measures to review and assess operating performance. We believe that fees billed and adjusted EBITDA margin provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See "Operating Highlights and Reconciliation of GAAP to Non-GAAP measures" at the end of this press release.

Currency Conversion

This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB 6.6533 to US$1.00, the effective noon buying rate on September 29, 2017 as set forth in the H.10 statistical release of the Federal Reserve Board.

Conference Call

Yirendai's management will host an earnings conference call at 7:00 p.m. Eastern Time on November 14, 2017, (or 8:00 a.m. Beijing/Hong Kong Time on November 15, 2017).

Dial-in details for the earnings conference call are as follows:

International:

+65 6713-5091

U.S. Toll Free:

+1 866-519-4004

Hong Kong Toll Free:

800-906-601

China Toll Free:

400-620-8038

Conference ID:

9696809

A replay of the conference call may be accessed by phone at the following numbers until November 22, 2017:

International:

+61 2-8199-0299

U.S. Toll Free:

+1 646-254-3697

Replay Access Code:

9696809

A live and archived webcast of the conference call will be available on Yirendai's website at yirendai.investorroom.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yirendai's control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yirendai's ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yirendai's ability to meet the standards necessary to maintain listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yirendai's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yirendai does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About Yirendai

Yirendai Ltd. (NYSE: YRD) is a leading fintech company in China connecting investors and individual borrowers. The Company provides an effective solution to address largely underserved investor and individual borrower demand in China through an online platform that automates key aspects of its operations to efficiently match borrowers with investors and execute loan transactions. Yirendai deploys a proprietary risk management system, which enables the Company to effectively assess the creditworthiness of borrowers, appropriately price the risks associated with borrowers, and offer quality loan investment opportunities to investors. Yirendai's online marketplace provides borrowers with quick and convenient access to consumer credit at competitive prices and investors with easy and quick access to an alternative asset class with attractive returns. For more information, please visit yirendai.investorroom.com.

For investor and media inquiries, please contact:
Yirendai

Hui (Matthew) Li
Director of Investor Relations
Email: ir@yirendai.com

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

2 Adjusted net income is a non-GAAP financial measure calculated as net income less non-recurring items.


Unaudited Condensed Consolidated Statements of Operations

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


For the Three Months Ended



For the Nine Months Ended


September
30, 2016


June 30,
2017


September
30, 2017


September
30, 2017



September
30, 2016


September
30, 2017


September
30, 2017


RMB


RMB


RMB


USD



RMB


RMB


USD

Net revenue:















Loan facilitation services

848,322


1,121,200


1,425,162


214,204



2,096,793


3,522,760


529,476

Post-origination services

23,487


41,389


49,951


7,508



59,115


124,652


18,735

Others

4,902


20,468


38,791


5,830



10,973


71,148


10,694

Total net revenue

876,711


1,183,057


1,513,904


227,542



2,166,881


3,718,560


558,905

Operating costs and expenses:















Sales and marketing

423,003


617,880


844,165


126,879



1,033,085


1,931,425


290,296

Origination and servicing

47,514


93,147


119,036


17,891



123,408


270,967


40,727

General and administrative

107,698


98,614


172,643


25,949



322,397


371,755


55,875

Total operating costs and expenses

659,478


809,641


1,135,844


170,719



1,478,890


2,574,147


386,898

Interest income

9,778


27,398


33,250


4,998



22,065


84,797


12,745

Fair value adjustments related to Consolidated ABFE

(14,935)


(1,915)


(22,762)


(3,421)



(18,448)


(23,322)


(3,505)

Non-operating income, net

259


555


158


23



350


920


138

Income before provision for income taxes

212,335


399,454


388,706


58,423



691,958


1,206,808


181,385

Income tax expense/(benefit)

(131,946)


130,358


85,732


12,886



(44,659)


283,837


42,661

Net income

344,281


269,096


302,974


45,537



736,617


922,971


138,724
















Weighted average number of ordinary shares
outstanding, basic

119,441,029


119,603,286


121,249,448


121,249,448



117,819,616


120,167,235


120,167,235

Basic income per share

2.8824


2.2499


2.4988


0.3756



6.2521


7.6807


1.1544

Basic income per ADS

5.7648


4.4998


4.9976


0.7512



12.5042


15.3614


2.3088
















Weighted average number of ordinary shares
outstanding, diluted

120,861,971


120,833,406


123,509,834


123,509,834



118,293,263


121,757,910


121,757,910

Diluted income per share

2.8485


2.2270


2.4530


0.3687



6.2270


7.5804


1.1393

Diluted income per ADS

5.6970


4.4540


4.9060


0.7374



12.4540


15.1608


2.2786
















Unaudited Condensed Consolidated Cash Flow Data















Net cash generated from operating activities

450,583


530,371


346,329


52,054



1,277,380


1,441,204


216,615

Net cash provided by/(used in) investing activities

(679,486)


(95,702)


342,289


51,446



(613,919)


(181,099)


(27,220)

Net cash used in financing activities

179,221


(94,993)


(127,864)


(19,218)



74,898


(267,698)


(40,235)

Effect of foreign exchange rate changes

1,323


(6,463)


(14,885)


(2,237)



12,163


(25,127)


(3,777)

Net increase in cash, cash equivalents and restricted
cash

(48,359)


333,213


545,869


82,045



750,522


967,280


145,383

Cash, cash equivalents and restricted cash, beginning
of period

2,128,966


2,274,709


2,607,922


391,974



1,330,085


2,186,511


328,636

Cash, cash equivalents and restricted cash, end of
period

2,080,607


2,607,922


3,153,791


474,019



2,080,607


3,153,791


474,019

Unaudited Condensed Consolidated Balance Sheet

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


As of


September 30, 2016


June 30, 2017


September 30, 2017


September 30, 2017


RMB


RMB


RMB


USD









Cash and cash equivalents

1,106,262


891,154


1,403,529


210,952

Restricted cash

974,345


1,716,768


1,750,262


263,067

Accounts receivable

37,378


18,109


24,050


3,614

Prepaid expenses and other assets

534,041


618,076


1,136,993


170,892

Loans at fair value

367,949


269,952


558,178


83,895

Amounts due from related parties

143,436


4,252


176,867


26,583

Held-to-maturity investments

172,500


589,329


168,917


25,389

Available-for-sale investments

298,000


1,262,260


996,660


149,799

Property, equipment and software, net

29,950


59,838


81,515


12,252

Deferred tax assets

367,141


559,794


685,875


103,088

Total assets

4,031,002


5,989,532


6,982,846


1,049,531

Accounts payable

7,408


15,153


22,634


3,402

Amounts due to related parties

14,137


45,425


23,153


3,480

Liabilities from quality assurance program and guarantee

1,238,689


1,961,315


2,392,794


359,640

Deferred revenue

151,666


173,386


194,646


29,256

Payable to investors at fair value

355,340


200,947


145,200


21,824

Accrued expenses and other liabilities

522,696


780,555


1,704,207


256,145

Deferred tax liability

-


60,000


4,545


683

Total liabilities

2,289,936


3,236,781


4,487,179


674,430

Ordinary shares

75


75


76


11

Additional paid-in capital

922,404


950,151


1,094,916


164,567

Accumulated other comprehensive income

12,264


19,216


4,330


651

Retained earnings

806,323


1,783,309


1,396,345


209,872

Total equity

1,741,066


2,752,751


2,495,667


375,101

Total liabilities and equity

4,031,002


5,989,532


6,982,846


1,049,531

Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except for number of borrowers, number of investors and percentages)


For the Three Months Ended



For the Nine Months Ended


September
30, 2016


June 30,
2017


September
30, 2017


September
30, 2017



September
30, 2016


September
30, 2017


September
30, 2017


RMB


RMB


RMB


USD



RMB


RMB


USD

Operating Highlights:















Amount of loans facilitated

5,617,485


8,536,087


12,185,367


1,831,477



13,602,688


27,967,538


4,203,559

Loans generated from online channels

2,275,473


4,271,610


6,972,156


1,047,924



5,282,933


14,833,895


2,229,555

Loans generated from offline channels

3,342,012


4,264,477


5,213,211


783,553



8,319,755


13,133,643


1,974,004

Fees billed

1,322,598


1,862,467


2,475,271


372,037



3,280,861


5,921,275


889,976

Remaining principal of performing loans

17,028,346


27,871,922


34,235,727


5,145,676



17,028,346


34,235,727


5,145,676

Remaining principal of performing loans
covered by quality assurance program and
guarantee

16,204,583


27,502,314


33,622,142


5,053,454



16,204,583


33,622,142


5,053,454

Number of borrowers

92,479


138,529


192,725


192,725



211,458


455,507


455,507

Borrowers from online channels

54,585


98,245


145,838


145,838



122,221


329,736


329,736

Borrowers from offline channels

37,894


40,284


46,887


46,887



89,237


125,771


125,771

Number of investors

177,499


199,591


214,967


214,967



478,653


455,251


455,251

Investors from online channels

177,499


199,591


214,967


214,967



478,653


455,251


455,251

Investors from offline channels

-


-


-


-



-


-


-

Adjusted EBITDA

220,716


378,434


422,413


63,489



692,291


1,201,144


180,533

Adjusted EBITDA margin

25.2%


32.0%


27.9%


27.9%



31.9%


32.3%


32.3%
















Reconciliation of Net Revenues















Fees billed:















Transaction fees billed to borrowers

1,298,247


1,753,192


2,338,933


351,545



3,230,892


5,599,879


841,669

Upfront fees billed to borrowers

1,192,449


1,537,969


2,046,742


307,628



2,982,135


4,919,399


739,392

Monthly fees billed to borrowers

105,798


215,223


292,191


43,917



248,757


680,480


102,277

Service fees billed to investors

110,943


222,845


271,961


40,876



263,563


671,938


100,993

Others

5,196


21,697


41,118


6,180



11,631


75,417


11,335

Value-added tax

(91,788)


(135,267)


(176,741)


(26,564)



(225,225)


(425,959)


(64,021)

Total fees billed

1,322,598


1,862,467


2,475,271


372,037



3,280,861


5,921,275


889,976

Stand-ready liabilities associated with
quality assurance program

(430,569)


(655,167)


(896,155)


(134,694)



(1,069,386)


(2,105,138)


(316,405)

Deferred revenue

(16,553)


(10,297)


(26,040)


(3,914)



(52,776)


(45,999)


(6,914)

Cash incentives

(24,074)


(51,614)


(91,371)


(13,733)



(55,337)


(173,340)


(26,053)

Value-added tax

25,309


37,668


52,199


7,846



63,519


121,762


18,301

Net revenues

876,711


1,183,057


1,513,904


227,542



2,166,881


3,718,560


558,905
















Reconciliation of EBITDA















Net income

344,281


269,096


302,974


45,537



736,617


922,971


138,724

Interest income

(9,778)


(27,398)


(33,250)


(4,998)



(22,065)


(84,797)


(12,745)

Income tax expense

(131,946)


130,358


85,732


12,886



(44,659)


283,837


42,661

Depreciation and amortization

2,816


4,923


6,892


1,036



7,055


15,991


2,403

Share-based compensation

15,343


1,455


60,065


9,028



15,343


63,142


9,490

Adjusted EBITDA

220,716


378,434


422,413


63,489



692,291


1,201,144


180,533

Delinquency Rates



Delinquent for



15-29 days


30-59 days


60-89 days

All Loans







December 31, 2013


0.2%


0.4%


0.3%

December 31, 2014


0.3%


0.2%


0.2%

December 31, 2015


0.4%


0.5%


0.4%

December 31, 2016


0.4%


0.7%


0.6%

March 31, 2017


0.4%


0.8%


0.6%

June 30, 2017


0.4%


0.7%


0.5%

September 30, 2017


0.5%


0.7%


0.6%








Online Channels







December 31, 2013


0.1%


0.9%


0.3%

December 31, 2014


0.4%


0.3%


0.2%

December 31, 2015


0.6%


0.8%


0.6%

December 31, 2016


0.6%


1.0%


0.8%

March 31, 2017


0.5%


1.0%


0.8%

June 30, 2017


0.5%


0.8%


0.7%

September 30, 2017


0.6%


0.8%


0.7%








Offline Channels







December 31, 2013


0.3%


0.2%


0.2%

December 31, 2014


0.3%


0.2%


0.2%

December 31, 2015


0.3%


0.4%


0.3%

December 31, 2016


0.4%


0.6%


0.4%

March 31, 2017


0.4%


0.6%


0.5%

June 30, 2017


0.4%


0.6%


0.5%

Sep 30, 2017


0.4%


0.6%


0.5%

Net Charge-Off Rate for Previous Risk Grid

Loan issued
period


Loan grade


Amount of loans
facilitated during the
period


Accumulated M3+ Net
Charge-Off as of
September 30, 2017


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





(in RMB thousands)


(in RMB thousands)



2014


A


1,917,542


90,940


4.7%



B


303,030


20,541


6.8%



C


-


-


-



D


7,989


528


6.6%



Total


2,228,561


112,009


5.0%

2015


A


873,995


49,849


5.7%



B


419,630


33,087


7.9%



C


557,414


59,028


10.6%



D


7,706,574


701,425


9.1%



Total


9,557,613


843,389


8.8%

2016


A


1,141,835


19,360


1.7%



B


749,868


27,287


3.6%



C


1,403,553


74,550


5.3%



D


17,085,347


823,171


4.8%



Total


20,380,603


944,368


4.6%

Q1-Q3 2017


A


701,456


1,169


0.2%



B


2,092,715


4,109


0.2%



C


3,289,508


8,155


0.2%



D


21,883,860


111,998


0.5%



Total


27,967,538


125,431


0.4%

Net Charge-Off Rate for Upgraded Risk Grid

Loan issued
period


Customer
grade


Amount of loans
facilitated during the
period


Accumulated M3+ Net
Charge-Off as of
September 30, 2017


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





(in RMB thousands)


(in RMB thousands)



2014


I


-


-


-



II


1,921,372


90,940


4.7%



III


303,276


20,541


6.8%



IV


-


-


-



V


3,913


528


13.5%



Total


2,228,561


112,009


5.0%

2015


I


146,490


3,583


2.4%



II


1,614,354


77,638


4.8%



III


2,521,705


186,541


7.4%



IV


2,506,107


225,124


9.0%



V


2,768,957


350,503


12.7%



Total


9,557,613


843,389


8.8%

2016


I


497,220


5,891


1.2%



II


3,137,889


60,626


1.9%



III


3,763,081


110,254


2.9%



IV


5,183,233


210,862


4.1%



V


7,799,180


556,735


7.1%



Total


20,380,603


944,368


4.6%

Q1-Q3 2017


I


1,705,739


947


0.1%



II


5,901,281


10,281


0.2%



III


7,023,361


15,996


0.2%



IV


6,839,437


22,014


0.3%



V


6,497,720


76,193


1.2%



Total


27,967,538


125,431


0.4%

M3+ Net Charge-Off Rate

Loan
issued
period


Month on Book



4

7

10

13

16

19

22

25

28

31

34

2013Q1


1.9%

3.2%

3.1%

2.3%

2.0%

0.9%

0.5%

0.5%

0.4%

0.4%

0.4%

2013Q2


1.8%

3.6%

4.5%

5.9%

6.4%

7.4%

6.1%

7.0%

7.5%

7.5%

7.8%

2013Q3


0.5%

2.8%

4.2%

5.5%

6.1%

6.5%

7.1%

7.1%

7.0%

6.9%

6.9%

2013Q4


0.7%

3.4%

4.8%

6.2%

6.8%

7.5%

8.3%

8.3%

8.2%

8.5%

8.3%

2014Q1


1.0%

4.2%

6.1%

7.0%

8.4%

9.3%

9.8%

9.7%

9.9%

9.8%

9.5%

2014Q2


0.5%

1.8%

2.6%

3.8%

4.3%

4.6%

4.6%

4.7%

4.7%

4.7%

4.8%

2014Q3


0.2%

0.8%

2.0%

2.8%

3.3%

3.7%

4.0%

4.2%

4.2%

4.1%

4.1%

2014Q4


0.3%

1.5%

2.7%

3.5%

4.1%

4.6%

5.1%

5.2%

5.2%

5.3%

5.2%

2015Q1


0.6%

2.7%

4.4%

5.8%

7.1%

8.2%

9.1%

9.6%

9.9%

10.1%


2015Q2


0.5%

2.1%

3.7%

5.3%

6.6%

7.7%

8.6%

9.2%

9.6%



2015Q3


0.2%

1.6%

3.4%

4.9%

6.4%

7.4%

8.1%

8.6%




2015Q4


0.2%

1.6%

3.2%

4.9%

6.2%

7.2%

7.9%





2016Q1


0.2%

1.3%

2.9%

4.3%

5.4%

6.4%






2016Q2


0.2%

1.7%

3.4%

4.9%

6.0%







2016Q3


0.1%

1.5%

3.2%

4.6%








2016Q4


0.2%

1.5%

3.0%









2017Q1


0.2%

1.4%










2017Q2


0.2%











View original content:http://www.prnewswire.com/news-releases/yirendai-reports-third-quarter-2017-financial-results-300555674.html

SOURCE Yirendai Ltd.