BEIJING, Dec. 3, 2018 /PRNewswire/ -- Hexindai Inc.
(NASDAQ: HX) ("Hexindai" or the "Company"), a fast-growing consumer
lending marketplace in China,
today announced its unaudited financial results for the quarter
ended September 30, 2018.
Throughout the release, each ADS represents one ordinary share.
Fiscal year refers to the 12 months ended March 31.
Second Quarter of Fiscal Year 2019 Operational
Highlights
- Total loan volume
facilitated(1) was
US$33.8 million (RMB0.2 billion) during the second quarter of
fiscal year 2019, a decrease of 87.4% from the second quarter of
fiscal year 2018.
- Gross billing amount (net of
VAT)(2) was US$4.9 million during the second quarter of
fiscal year 2019, a decrease of 79.3% from the second quarter of
fiscal year 2018.
- Gross billing ratio (net of
VAT)(3) for
credit loans was 14.4% during the second quarter of fiscal year
2019, an increase from 9.0% during the second quarter of fiscal
year 2018.
- Number of
borrowers(4) was 2,183
during the second quarter of fiscal year 2019, a decrease of 89.5%
from the second quarter of fiscal year 2018.
- Number of
investors(5) was 38,825
during the second quarter of fiscal year 2019, a decrease of 9.2%
from the second 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 online
marketplace during the relevant period.
|
(5) Refers to
investors who made loan investments on our online marketplace
during the relevant period.
|
Second Quarter of Fiscal Year 2019 Unaudited Financial
Highlights
- Net revenue was US$3.6
million during the second quarter of fiscal year 2019, a
decrease of 82.9% from the second quarter of fiscal year 2018.
- Operating expenses were US$21.1 million during the second quarter of
fiscal year 2019, an increase of 222.1% from the second quarter of
fiscal year 2018.
- Net loss was US$17.4
million during the second quarter of fiscal year 2019,
compared to net income of US$12.7
million in second quarter of fiscal year 2018.
- Basic loss per common share in the second quarter of
fiscal year 2019 was US$0.36,
compared to basic earnings per common shares ("EPS") of
US$0.30 in second quarter of fiscal
year 2018.
- Diluted loss per common share in the second quarter of
fiscal year 2019 was US$0.36,
compared to diluted EPS of US$0.30 in
second quarter of fiscal year 2018.
- Adjusted net loss
(Non-GAAP)(6) in the second
quarter of fiscal year 2019 was US$12.5
million, compared to adjusted net income (Non-GAAP) of
US$12.7 million in the second quarter
of fiscal year 2018.
- Adjusted EBIT (Non-GAAP)(7) in
the second quarter of fiscal year 2019 was (US$12.0) million, compared to US$14.7 million in the second 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.
|
Six Months Ended September 30,
2018 Operational Data
Loan volume facilitated
Total loan volume facilitated during the six months ended
September 30, 2018 was US$481.2 million (RMB3.2
billion), an increase of 2.2% from US$458.7 million (RMB3.1
billion) during the same period of fiscal year 2018.
Number of borrowers
Number of borrowers was 31,162 during the six months ended
September 30, 2018, a decrease of
12.1% from the same period of fiscal year 2018.
Number of investors
Number of investors was 106,432 during the six months ended
September 30, 2018, an increase of
33.4% from the same period of fiscal year 2018.
Total loan volume facilitated through Hexindai's platform was
approximately US$3.0 billion (RMB19.9
billion) from the inception of its business in March 2014 through September 30, 2018.
Mr. Xinming Zhou, Chief Executive
Officer of Hexindai, commented, "This quarter was certainly
challenging for us and the entire P2P sector as the overall market
environment shifts around us. The industry is gradually weeding out
firms who are financially weaker, fraudulent or unable to maintain
compliance standards leaving only the best run remaining. One of
the strategic pre-emptive steps we took during the quarter to stay
one step ahead of the industry was to protect our existing
investors as liquidity in the market tightened and demand for loan
transfer products increased. In response, we reduced new loan
offerings on our platform and placed a priority on promoting loan
transfer products to increase their liquidity and meet the growing
demand. While our top line decreased significantly as a result,
these steps helped strengthen confidence in our platform and the
loyalty of existing investors."
"We nevertheless outperformed the industry average across a
number of metrics. Loan balance for the entire sector decreased 25%
year-over-year and 17% sequentially during the quarter. This
compares to the 88% year-over-year increase we saw and 11%
sequential decrease we had during the same period. I believe this
speaks to the strength of our platform, strict compliance
standards, advanced risk management, product competitiveness, and
the trust investors have in us."
"In the long run, regulatory changes will have a positive impact
on the industry. We recently completed the submission of our P2P
Compliance Self-Inspection Report as the first step and are nearing
completion of step two out of the three for full compliance which
involves under-going an onsite inspection of our operations by
Beijing Internet Finance Association. Increased regulation will
raise the barriers to entry and will create a healthier market
environment across the sector. This will allow us to leverage our
strong cash position and improved risk management, operational
efficiency, and marketing capabilities to consolidate the market.
Our ability to maintain stringent standards and prioritize our
investors has increased our confidence in Hexindai's future and
strengthened our ability to lead the P2P industry through this
challenging time."
Second Quarter of Fiscal Year 2019 Unaudited Financial
Results
Net revenue
Net revenue during the second quarter of fiscal year 2019 was
US$3.6 million, a decrease of 82.9%
from US$21.2 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$265.6 million (RMB1.8
billion) in the second quarter of fiscal year 2018 to
US$33.8 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 20,675 in the second quarter
of fiscal year 2018 to 2,183 in the same quarter of fiscal year
2019.
Operating expenses
Total operating expenses during the second quarter of fiscal
year 2019 were US$21.1 million, an
increase of 222.1% from US$6.5
million in the same quarter of last fiscal year. The
significant increase was primarily due to an increase in sales and
marketing expenses, general and administrative expenses and
share-based compensation.
Sales and marketing expenses
Sales and marketing expenses during the second quarter of fiscal
year 2019 were US$11.7 million, an
increase of 218.3% from US$3.7
million during the same quarter of last fiscal year. The
increase was primarily due to an increase in employee expenses and
advertising expenses associated with enhancing the Company's brand
recognition and acquiring more customers.
Service and development expenses
Service and development expenses during the second quarter of
fiscal year 2019 were US$2.2 million,
an increase of 14.5% from US$1.9
million during the same quarter of last fiscal year. Service
and development expenses remained stable when compared to the same
period of last fiscal year, which was primarily due to improvements
in operational efficiency.
General and administrative expenses
General and administrative expenses during the second quarter of
fiscal year 2019 were US$2.2 million,
an increase of 135.5% from US$0.9
million during the same period of last fiscal year. The
increase was primarily attributable to an increase in employee
expenses, professional service fees and rental expenses.
Share-based compensation
Share-based compensation during the second quarter of fiscal
year 2019 was US$4.9 million,
compared to nil during the same period of last fiscal year. The
increase was attributable to awards granted under the 2016 Equity
Incentive Plan since November 3, 2017
on which date the Company completed its IPO.
Net loss(income)
As a result of the foregoing, the net loss was US$17.4 million during the second quarter of
fiscal year 2019, compared to net income of US$12.7 million in second 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$17.4 million during the second
quarter of fiscal year 2019, compared to net income attributable to
the Company's shareholders of US$12.7
million in the same period of fiscal year 2018. Accordingly,
basic loss per common share in the second quarter of fiscal year
2019 was US$0.36, compared to basic
EPS of US$0.30 in the same period of
fiscal year 2018.Diluted loss per common share in the second
quarter of fiscal year 2019 was US$0.36, compared to diluted EPS of US$0.30 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$12.5 million in the second quarter of fiscal
year 2019, compared to adjusted net income attributable to the
Company's shareholders of US$12.7
million in the same period of fiscal year 2018. Accordingly,
the adjusted basic loss per common share was US$0.26 in the second quarter of fiscal year
2018, compared to the adjusted basic EPS of US$0.30 in the same period of fiscal year 2018.
The adjusted diluted loss per common share was US$0.26 in the second quarter of fiscal year
2018, compared to the adjusted diluted EPS of US$0.30 in the same period of fiscal year
2018.
Six Months Ended September 30, 2018 Unaudited Financial
Results
Net revenue
Net revenue during the six months ended September 30, 2018 was US$55.3 million, an increase of 52.1% from
US$36.3 million during the same
period of last fiscal year. The increase was primarily due to the
significant increase in the volume of credit loans facilitated
through Hexindai's marketplace, which increased from US$0.4 billion (RMB3.0
billion) in the six months ended September 30, 2017 to US$0.5 billion (RMB3.2
billion) in the six months ended September 30, 2018. The increase in net revenue
was due to the increase in gross billing ratio (net of VAT) for
credit loans from 8.9% in the six months ended September 30, 2017 to 11.9% in the six months
ended September 30, 2018.
Operating expenses
Total operating expenses during the six months ended
September 30, 2018 were US$36.6 million, an increase of 223.0% from
US$11.3 million in six months ended
September 30, 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 six months ended
September 30, 2018 were US$23.4 million, an increase of 274.0% from
US$6.3 million from the same period
of last fiscal year. The increase was primarily due to an increase
in employee expenses, advertising expenses, and a series of
marketing and promotional campaigns.
Service and development expenses
Service and development expenses during the six months ended
September 30, 2018 were US$3.5 million, an increase of 9.4% from
US$3.2 million during the same period
of last fiscal year. Service and development expenses remained
stable when compared to the same period of last fiscal year, which
was primarily due to improvements in operational efficiency.
General and administrative expenses
General and administrative expenses during the six months ended
September 30, 2018 were US$4.6 million, an increase of 146.7% from
US$1.8 million during last year. The
increase was primarily attributable to an increase in employee
expenses and professional service fees.
Share-based compensation
Share-based compensation during the six months ended
September 30, 2018 was US$5.1 million, increased from nil during the
same period of last fiscal year. The increase was attributable to
awards granted under the 2016 Equity Incentive Plan since
November 3, 2017 on which date the
Company completed its IPO.
Net income
As a result of the foregoing, a decrease of 43.1% in our net
income, which decreased from US$21.6
million during the six months ended September 30, 2017 to US$12.3 million during the six months ended
September 30, 2018
Net income attributable to Hexindai Inc.'s shareholders
and EPS
Net income attributable to the Company's shareholders decreased
by 43.1% to US$12.3 million in six
months ended September 30, 2018 from
US$21.6 million during the same
period of last fiscal year. Accordingly, the basic EPS decreased to
US$0.25 in six months ended
September 30, 2018 from US$0.50 during the same period of last fiscal
year and diluted EPS decreased to US$0.23 in six months ended September 30, 2018 from US$0.50 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
19.3% to US$17.4 million during the
six months ended September 30, 2018
from US$21.6 million in the six
months ended September 30 2017.
Accordingly, the adjusted basic EPS decreased to US$0.36 during the six months ended September 30, 2018 from US$0.50 during the same period of last fiscal
year. Adjusted diluted EPS decreased to US$0.32 during the six months ended September 30, 2018 from US$0.50 during the same period of last fiscal
year.
Cash and Cash Flow
As of September 30, 2018, the
Company had cash and cash equivalents of US$53.1 million. Net cash used in operating
activities for the six months ended September 30, 2018 was US$5.9 million, compared to net cash provided by
operating activities of US$25.6
million during the same period of last fiscal year. Net cash
used in investing activities for the six months ended September 30, 2018 was US$51.2 million, compared to US$0.1 million during the same period of last
fiscal year. Net cash used in financing activities for six months
ended September 30, 2018 was
US$15.8 million, compared to net cash
provided by financing activities of US$8.8
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 December
31, 2018
- Total loans facilitated will be in the range of
US$56.0 million to US$60.0 million.
- Net revenue will be in the range of US$1.4 million to US$1.6
million.
Fiscal Year Ending March 31,
2019
- Total loans facilitated will be in the range of
US$700.0 million to US$720.0 million.
- Net revenue will be in the range of US$66.0 million to US$70.0
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, Hexindai began
sharing credit data with Baihang Credit, the first credit-reporting
platform for the online lending sector that is backed by
China's central bank. Hexindai and
other partner companies will make regular transfers of data to
Baihang Credit, which will then integrate and process the data
collected and transmit individual credit information back to its
partner companies. The data shared on the platform will help
Hexindai assess its customers' creditworthiness, speed up credit
assessment processing and potentially reduce the cost of risk
management.
In October 2018, Hexindai
completed the submission of its P2P Compliance Self-Inspection
Report to the Beijing Municipal Bureau of Financial Work, and are
nearing completion of step 2 with an on-site inspection of the
Beijing Internet Finance Association. The completion of these mark
the first two of three key steps for compliance with industry
reforms issued by the National P2P Rectification Office. Hexindai
is now focusing on the final third step in the process, including
verification of inspection results by the Beijing Municipal Bureau
of Financial Work with a field inspection and potentially a final
check by higher-level government organizations. Hexindai is
actively supporting and participating in this compliance process,
which aims to foster the stable growth of the P2P lending industry
in China.
In October 2018, Hexindai
established an agreement with Shell Energy (China) Limited, a subsidiary of Royal Dutch Shell, to provide price hedging for
a substantial volume of National Carbon Allowances (NCA) and
support liquidity and market developments of China's National Emissions Trading Scheme
(ETS). The agreement is set for three years and will commence when
the cement sector is enrolled in China's national emissions trading scheme
(ETS) and the Chinese carbon offsets, such as Chinese Certified
Emission Reduction (CCER), can be used for compliance purposes.
China has already announced plans
for a nationwide emission trading scheme in late 2017. The scheme
will cover the power industry with plans to expand over seven
sectors including petrochemicals, chemicals, cement, and other
building materials. The agreement demonstrates Hexindai's
commitment to preserving the environment and promoting
environmental protection throughout its business.
Conference Call
The Company will host a conference call to discuss the earnings
at 8:00 a.m. Eastern Time on Monday,
December 3, 2018 (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, December 11, 2018.
Dial-in numbers for the replay are as follows:
International Dial-in
|
+61
2-8199-0299
|
U.S. Toll
Free
|
+1
855-452-5696
|
Passcode:
7955019
|
|
A live and archived webcast of the conference call will be
available on the Investor Relations section of Hexindai's website
at http://ir.hexindai.com/.
About Hexindai Inc.
Hexindai Inc. (NASDAQ: HX) ("Hexindai" or the "Company") is a
fast-growing consumer lending marketplace based in Beijing, China facilitating loans to meet the
increasing consumption demand of the emerging middle class in
China. Hexindai provides borrowers
with convenient and ready access to credit through its online
marketplace. The Company offers borrowers a wide range of products
designed based on customer segmentation data and tailored to the
specific needs of the emerging middle class in China by matching them with investors seeking
various types of investment products with appropriate risk levels
and risk-adjusted returns. Hexindai's strong online and offline
user acquisition capabilities combined with an online platform with
extensive offline networks, an advanced risk management system, and
strong strategic cooperative relationships with a custodian bank
and an insurance company to safeguard investments, allows the
Company to generate higher customer satisfaction, reliance, and
realize faster growth in China.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are made under the "safe
harbor" provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These statements can be identified by terminology such
as "will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "potential," "continue," "ongoing,"
"targets," "guidance" and similar statements. The Company may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (the "SEC"),
in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Any statements that are
not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. Such factors and risks include, but not limited to the
following: the Company's goals and strategies; its future business
development, financial condition and results of operations; the
expected growth of the credit industry, and marketplace lending in
particular, in China; the demand
for and market acceptance of its marketplace's products and
services; its ability to attract and retain borrowers and investors
on its marketplace; its relationships with its strategic
cooperation partners; competition in its industry; and relevant
government policies and regulations relating to the corporate
structure, business and industry. Further information regarding
these and other risks, uncertainties or factors is included in the
Company's filings with the SEC. All information provided in this
announcement is current as of the date of this announcement, and
the Company does not undertake any obligation to update such
information, except as required under applicable law.
For more information, please visit
ir.hexindai.com
For investor inquiries, please contact:
Hexindai
Ms. Daisy Wang
Tel: +86-10-5380-6196
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)
|
|
|
September
30,
|
|
March
31,
|
|
|
2018
|
|
2018
|
|
|
US$
|
|
US$
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
|
53,069,188
|
|
132,622,467
|
Receivables, prepayments and other assets
|
|
20,320,402
|
|
1,248,562
|
Loans receivable-current
|
|
56,756,803
|
|
28,696,234
|
Interest receivable
|
|
913,803
|
|
555,502
|
Total current assets
|
|
131,060,196
|
|
163,122,765
|
Non-current
assets
|
|
|
|
|
Loans receivable-non current
|
|
16,328,520
|
|
-
|
Long
term investment
|
|
1,600,000
|
|
-
|
Property and equipment, net
|
|
1,224,173
|
|
767,087
|
TOTAL
ASSETS
|
|
150,212,889
|
|
163,889,852
|
LIABILITIES
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accrued expenses and other current liabilities
|
|
5,420,978
|
|
3,786,955
|
Income taxes payable
|
|
16,613,715
|
|
20,059,828
|
Total current liabilities
|
|
22,034,693
|
|
23,846,783
|
TOTAL
LIABILITIES
|
|
22,034,693
|
|
23,846,783
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Ordinary shares, $0.0001 par value, 500,000,000 shares
authorized, 48,907,728 and 47,958,550 shares issued and
outstanding as of September 30, 2018 and March 31, 2018,
respectively.
|
|
4,891
|
|
4,796
|
Additional paid-in capital
|
|
64,067,727
|
|
58,417,971
|
Retained earnings
|
|
70,249,407
|
|
77,241,073
|
Accumulated other comprehensive (loss) income
|
|
(6,143,829)
|
|
4,379,229
|
TOTAL
SHAREHOLDERS' EQUITY
|
|
128,178,196
|
|
140,043,069
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
150,212,889
|
|
163,889,852
|
|
|
|
|
|
|
HEXINDAI
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(UNAUDITED)
|
|
|
For Three Months
Ended
September 30,
|
|
For Six Months
Ended
September
30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
NET
REVENUE
|
|
|
|
|
|
|
|
|
Loan facilitation,
post-origination and other
service, net
|
|
3,644,694
|
|
21,374,343
|
|
55,841,699
|
|
36,504,933
|
Business and sales
related taxes
|
|
(23,532)
|
|
(155,441)
|
|
(569,040)
|
|
(173,110)
|
NET
REVENUE
|
|
3,621,162
|
|
21,218,902
|
|
55,272,659
|
|
36,331,823
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
11,749,563
|
|
3,691,570
|
|
23,414,667
|
|
6,260,114
|
Service and development
|
|
2,177,233
|
|
1,901,117
|
|
3,541,801
|
|
3,236,102
|
General and administrative
|
|
2,236,523
|
|
949,803
|
|
4,550,316
|
|
1,844,550
|
Share-based compensation
|
|
4,910,415
|
|
-
|
|
5,124,693
|
|
-
|
Total operating expenses
|
|
21,073,734
|
|
6,542,490
|
|
36,631,477
|
|
11,340,766
|
INCOME FROM
OPERATIONS
|
|
(17,452,572)
|
|
14,676,412
|
|
18,641,182
|
|
24,991,057
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
Other
income
|
|
608,187
|
|
99,401
|
|
1,093,164
|
|
259,123
|
Other
expense
|
|
(2,949)
|
|
(1,775)
|
|
(22,858)
|
|
(5,634)
|
Total other income, net
|
|
605,238
|
|
97,626
|
|
1,070,306
|
|
253,489
|
INCOME BEFORE
INCOME TAXES
|
|
(16,847,334)
|
|
14,774,038
|
|
19,711,488
|
|
25,244,546
|
PROVISION FOR
INCOME TAXES
|
|
553,241
|
|
2,108,997
|
|
7,433,448
|
|
3,684,941
|
NET (LOSS)
INCOME
|
|
(17,400,575)
|
|
12,665,041
|
|
12,278,040
|
|
21,559,605
|
Less: net loss
attributable to non-controlling
interest
|
|
-
|
|
(2,254)
|
|
-
|
|
(2,254)
|
NET (LOSS) INCOME
ATTRIBUTABLE TO
HEXINDAI INC'S SHAREHOLDERS
|
|
(17,400,575)
|
|
12,667,295
|
|
12,278,040
|
|
21,561,859
|
OTHER
COMPREHENSIVE (LOSS) INCOME
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
(4,518,279)
|
|
614,635
|
|
(10,523,057)
|
|
1,048,231
|
COMPREHENSIVE
(LOSS) INCOME
|
|
(21,918,854)
|
|
13,279,676
|
|
1,754,983
|
|
22,607,836
|
Less: comprehensive
loss attributable to non-controlling interest
|
|
-
|
|
(423)
|
|
-
|
|
(423)
|
COMPREHENSIVE
(LOSS) INCOME
ATTRIBUTABLE TO HEXINDAI INC'S
SHAREHOLDERS
|
|
(21,918,854)
|
|
13,280,099
|
|
1,754,983
|
|
22,608,259
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings
per common share
|
|
(0.36)
|
|
0.30
|
|
0.25
|
|
0.50
|
Diluted (loss)
earnings per common share
|
|
(0.36)
|
|
0.30
|
|
0.23
|
|
0.50
|
Weighted average number of
shares outstanding
- basic
|
|
48,728,095
|
|
42,921,600
|
|
48,365,343
|
|
42,921,600
|
Weighted average number of
shares outstanding - diluted
|
|
48,728,095
|
|
42,921,600
|
|
53,766,719
|
|
42,921,600
|
|
|
|
|
|
|
|
|
|
|
HEXINDAI
INC.
|
RECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS
|
(UNAUDITED)
|
|
|
For Three Months
Ended
September
30,
|
|
For Six Months
Ended
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
Net (loss) income
attributable to Hexindai Inc's
shareholders
|
|
(17,400,575)
|
|
12,667,295
|
|
12,278,040
|
|
21,561,859
|
Add: Share-based
compensation expenses*
|
|
4,910,415
|
|
-
|
|
5,124,693
|
|
-
|
Adjusted net
(loss) income attributable to Hexindai
Inc's shareholders
|
|
(12,490,160)
|
|
12,667,295
|
|
17,402,733
|
|
21,561,859
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding
- basic
|
|
48,728,095
|
|
42,921,600
|
48,365,343
|
|
42,921,600
|
Weighted average number of
shares outstanding
- diluted
|
|
48,728,095
|
|
42,921,600
|
|
53,766,719
|
|
42,921,600
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings
per common share
|
|
(0.36)
|
|
0.30
|
|
0.25
|
|
0.50
|
Adjusted basic (loss)
earnings per common share
|
|
(0.26)
|
|
0.30
|
|
0.36
|
|
0.50
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per common share
|
|
(0.36)
|
|
0.30
|
|
0.23
|
|
0.50
|
Adjusted diluted
(loss) earnings per common share
|
|
(0.26)
|
|
0.30
|
|
0.32
|
|
0.50
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Hexindai Inc's
shareholders
|
|
(17,400,575)
|
|
12,667,295
|
|
12,278,040
|
|
21,561,859
|
Less: Interest
income
|
|
(35,681)
|
|
(99,401)
|
|
(239,194)
|
|
(149,232)
|
Add: Income tax
expense**
|
|
553,241
|
|
2,108,997
|
|
7,433,448
|
|
3,684,941
|
Share-based compensation expenses*
|
|
4,910,415
|
|
-
|
|
5,124,693
|
|
-
|
Adjusted
EBIT
|
|
(11,972,600)
|
|
14,676,891
|
|
24,596,987
|
|
25,097,568
|
|
|
|
|
|
|
|
|
|
* Share-based
compensation expenses are not tax deductible under relevant tax
laws and regulations in our tax jurisdiction.
|
** Income tax expenses include
US$5,352, US$14,910, US$35,879 and US$22,385 related to the current
tax expenses on
interest income, which was recognized for the three month period
ended September 30, 2018 and 2017 and six month period
ended September 30, 2018 and 2017, respectively.
|
The following table presents our summary operating data for
three months ended September 30, 2017
and 2018.
|
|
For Three Months
Ended September 30,
|
|
For Six Months
Ended September 30,
|
|
Growth Rates
(4)
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
(RMB)
|
(US$)
|
|
(RMB)
|
(US$)
|
|
(RMB)
|
(US$)
|
|
(RMB)
|
(US$)
|
|
Three months
ended September
30,2018
compared to
September 30,
2017
|
|
Six months
ended
September
30,2018
compared to
September
30, 2017
|
Loan volume
facilitated
|
|
(in thousands,
except percentages and numbers (5))
|
|
(in thousands,
except percentages and numbers (5))
|
|
|
|
|
Credit loan
principal
|
|
230,038
|
33,803
|
|
1,771,255
|
265,619
|
|
3,170,710
|
481,176
|
|
3,039,551
|
449,355
|
|
-87.0%
|
|
4.3%
|
Secured loan
principal
|
|
-
|
-
|
|
53,320
|
7,996
|
|
-
|
-
|
|
63,220
|
9,346
|
|
-100.0%
|
|
-100.0%
|
Total
|
|
230,038
|
33,803
|
|
1,824,575
|
273,615
|
|
3,170,710
|
481,176
|
|
3,102,771
|
458,701
|
|
-87.4%
|
|
2.2%
|
Number of
transactions
facilitated (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit loan
transactions
|
|
2,183
|
2,183
|
|
20,731
|
20,731
|
|
31,175
|
31,175
|
|
35,454
|
35,454
|
|
|
|
|
Secured loan
transactions
|
|
-
|
-
|
|
36
|
36
|
|
-
|
-
|
|
49
|
49
|
|
|
|
|
Total
|
|
2,183
|
2,183
|
|
20,767
|
20,767
|
|
31,175
|
4,731
|
|
35,503
|
35,503
|
|
|
|
|
Average
individual
transaction amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit loan
transactions
|
|
105
|
15
|
|
85
|
13
|
|
102
|
15
|
|
86
|
13
|
|
|
|
|
Secured loan
transactions
|
|
-
|
-
|
|
1,481
|
222
|
|
-
|
-
|
|
1,290
|
191
|
|
|
|
|
Overall
average
|
|
105
|
15
|
|
88
|
13
|
|
102
|
15
|
|
87
|
13
|
|
|
|
|
Gross billing
amount (net of
VAT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
loan
|
|
33,138
|
4,869
|
|
159,067
|
23,854
|
|
377,833
|
57,339
|
|
271,865
|
40,191
|
|
-79.2%
|
|
39.0%
|
Secured
loan
|
|
-
|
-
|
|
1,326
|
199
|
|
-
|
-
|
|
1,458
|
215
|
|
-100.0%
|
|
-100.0%
|
Total
|
|
33,138
|
4,869
|
|
160,393
|
24,053
|
|
377,833
|
57,339
|
|
273,323
|
40,406
|
|
-79.3%
|
|
38.2%
|
Gross billing
ratio (net of
VAT)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
loan
|
|
14.4%
|
14.4%
|
|
9.0%
|
9.0%
|
|
11.9%
|
11.9%
|
|
8.9%
|
8.9%
|
|
|
|
|
Secured
loan
|
|
-
|
-
|
|
2.5%
|
2.5%
|
|
-
|
-
|
|
2.3%
|
2.3%
|
|
|
|
|
Total
|
|
14.4%
|
14.4%
|
|
8.8%
|
8.8%
|
|
11.9%
|
11.9%
|
|
8.8%
|
8.8%
|
|
|
|
|
Number of
borrowers
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit loan
transactions
|
|
2,183
|
2,183
|
|
20,675
|
20,675
|
|
31,162
|
31,162
|
|
35,398
|
35,398
|
|
|
|
|
Secured loan
transactions
|
|
-
|
-
|
|
22
|
22
|
|
-
|
-
|
|
35
|
35
|
|
|
|
|
Total
|
|
2,183
|
2,183
|
|
20,697
|
20,697
|
|
31,162
|
31,162
|
|
35,433
|
35,433
|
|
-89.5%
|
|
-12.1%
|
Number of
investors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit loan
transactions (2)
|
|
33,370
|
33,370
|
|
28,000
|
28,000
|
|
91,966
|
91,966
|
|
52,900
|
52,900
|
|
|
|
|
Secured loan
transactions (3)
|
|
-
|
-
|
|
91
|
91
|
|
-
|
-
|
|
118
|
118
|
|
|
|
|
Credit and secured
loan
transactions
|
|
5,455
|
5,455
|
|
14,680
|
14,680
|
|
14,466
|
14,466
|
|
26,786
|
26,786
|
|
|
|
|
Total
|
|
38,825
|
38,825
|
|
42,771
|
42,771
|
|
106,432
|
106,432
|
|
79,804
|
79,804
|
|
-9.2%
|
|
33.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
September30,
|
|
For Six Months
Ended
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenue(1)
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
Loan facilitation
service
|
|
4,870,258
|
|
23,979,371
|
|
58,922,136
|
|
40,425,548
|
Loan management
service
|
|
-
|
|
707
|
|
-
|
|
168,338
|
Post-origination
service
|
|
4,328,279
|
|
748,900
|
|
6,693,158
|
|
1,077,828
|
Interest income on
loans
|
|
681,599
|
|
-
|
|
1,431,326
|
|
-
|
Others
|
|
-
|
|
3,193
|
|
-
|
|
9,618
|
Business
tax
|
|
(23,532)
|
|
(155,441)
|
|
(569,040)
|
|
(173,110)
|
Cash
incentives
|
|
(6,235,442)
|
|
(3,357,828)
|
|
(11,204,921)
|
|
(5,176,399)
|
Net
Revenue
|
|
3,621,162
|
|
21,218,902
|
|
55,272,659
|
|
36,331,823
|
|
|
|
|
|
|
|
|
|
(1) Represents
amounts net of VAT
|
View original
content:http://www.prnewswire.com/news-releases/hexindai-reports-unaudited-second-quarter-of-fiscal-year-2019-financial-results-300758867.html
SOURCE Hexindai Inc.