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Weidai Ltd. Announces First Quarter 2019 Financial Results

HANGZHOU, China, June 4, 2019 /PRNewswire/ -- Weidai Ltd. ("Weidai" or the "Company") (WEI), a leading auto-backed financing solution provider in China, today announced its unaudited financial results for the first quarter ended March 31, 2019.

First quarter 2019 Financial Highlights:

  • Net revenues were RMB949.7 million (US$141.5 million) in the first quarter of 2019, an increase of 1.6% from RMB934.9 million in the same period of 2018 and a decrease of 4.4% from RMB993.5 million sequentially.
  • Loan facilitation service fees were RMB766.9 million (US$114.3 million) in the first quarter of 2019, an increase of 7.4% from RMB714.4 million in the same period of 2018 and a decrease of 9.2% from RMB844.7 million sequentially.
  • Post-facilitation service fees were RMB83.5 million (US$12.4 million) in the first quarter of 2019, an increase of 1.4% from RMB82.3 million in the same period of 2018 and a decrease of 0.8% from RMB84.2 million sequentially.
  • Net income was RMB109.0 million (US$16.2 million) in the first quarter of 2019, compared to RMB124.6 million in the same period of 2018 and RMB110.0 million sequentially.
  • Adjusted net income[1] was RMB134.6 million (US$20.1 million) in the first quarter of 2019, compared to RMB157.6 million in the same period of 2018 and RMB133.2 million sequentially.

First quarter 2019 Operational Highlights:

Loan volume

The following table sets forth the volume of loans we facilitated and originated (including loans funded by institutional funding partners) for the periods indicated:


For the three months ended,


December 31, 2018


March 31, 2019










RMB


% of total loan
volume


RMB


% of total
loan volume


(in millions, except for percentages)









Total loan volume

17,117


100.0


15,247


100.0

Including:








Loans funded by institutional funding 
     partners

891


5.2


733


4.8

Loan balance

Total loan balance decreased to RMB19.6 billion (US$2.9 billion) as of March 31, 2019 from RMB19.9 billion as of December 31, 2018.

First quarter 2019 Financial Results

Net revenues decreased by 4.4% to RMB949.7 million (US$141.5 million) in the first quarter of 2019 from RMB993.5 million in the previous quarter, primarily due to decreases in loan facilitation service fees and post-facilitation service fees.  The decrease was partially offset by increases in other revenues and net financing income. The Company's take rate[2] decreased to 4.8% in the first quarter of 2019 from 5.0% in the previous quarter.

  • Loan facilitation service fees decreased by 9.2% to RMB766.9 million (US$114.3 million) in the first quarter of 2019, from RMB844.7 million in the previous quarter. The decrease was primarily due to decrease in loan volume and loan balance. In the first quarter of 2019, the impact of applying ASC 606 resulted in a decrease in loan facilitation service fees of RMB21.6 million.
  • Post-facilitation service fees decreased by 1.0% to RMB83.5 million (US$12.4 million) in the first quarter of 2019, from RMB84.2 million in the previous quarter. The decrease was primarily due to a decrease in loan volume and loan balance.
  • Other revenues increased by 19.2% to RMB51.6 million (US$7.7 million) in the first quarter of 2019, from RMB43.3 million in the previous quarter.
  • Net financing income increased by 123.9% to RMB47.7 million (US$7.1 million) in the first quarter of 2019, from RMB21.3 million in the previous quarter.

Provision for loans and advances decreased by 25.3% to RMB244.1 million (US$36.4 million) in the first quarter of 2019, from RMB326.6 million in the previous quarter. Provision for loans and advances as a percentage of total loan volume decreased to 1.60% in the first quarter of 2019 from 1.91% in the previous quarter, but remained higher than the other quarters in 2018 (0.59%, 0.47% and 1.09% in the first, second and third quarter of 2018, respectively). Provision for loans and advances as a percentage of net revenue decreased to 25.7% in the first quarter of 2019 from 32.9% in the fourth quarter of 2018.

Operating costs and expenses decreased by 7.1% to RMB580.8 million (US$86.5 million) in the first quarter of 2019, from RMB625.3 million in the previous quarter. Operating costs and expenses as a percentage of net revenues decreased to 61.2% in the first quarter of 2019 from 62.9% in the fourth quarter of 2018.

  • Provision for financial guarantee liabilities increased by 148.1% to RMB53.9 million (US$8.0 million) in the first quarter of 2019, from RMB21.7 million in the previous quarter.
  • Origination and servicing expenses decreased by 9.0% to RMB376.4 million (US$56.1 million) for the first quarter of 2019 from RMB413.8 million in the previous quarter, primarily due to continued cost optimization efforts. Origination and servicing expenses as a percentage of net revenues decreased to 39.6% in the first quarter of 2019 from 41.7% in the fourth quarter of 2018.
  • Sales and marketing expenses increased by 24.8% to RMB48.9 million (US$7.3 million) for the first quarter of 2019 from RMB39.2 million in the previous quarter, which was primarily due to an increase in online marketing activities in the first quarter of 2019.
  • General and administrative expenses decreased by 48.7% to RMB58.0 million (US$8.6 million) for the first quarter of 2019 from RMB112.9 million in the previous quarter. The decrease was primarily due to a decrease in staff costs.
  • Research and development expenses increased by 15.7% to RMB43.7 million (US$6.5 million) in the first quarter of 2019 from RMB37.8 million in the previous quarter, primarily due to continued investment in technology infrastructure and systems. 

Share-based compensation expenses increased by 10.4% to RMB25.6 million (US$3.8 million) in the first quarter of 2019, from RMB23.2 million in the previous quarter.

Income tax expenses were RMB38.1 million (US$5.7 million) for the first quarter of 2019, compared to RMB21.5 million income tax benefits in the previous quarter.

Net income remained relatively stable at RMB109.0 million (US$16.2 million) for the first quarter of 2019, compared to RMB110.0 million in the previous quarter.

Net income and comprehensive income attributable to ordinary shareholders decreased by 3.0% to RMB105.4 million (US$15.7 million) in the first quarter of 2019, from RMB108.7 million in the previous quarter.

Adjusted net income remained relatively stable at RMB134.6 million (US$20.1 million) in the first quarter of 2019, compared to RMB133.2 million in the previous quarter.

Use of Non-GAAP Financial Measures

The Company uses adjusted net income, a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that adjusted net income helps identify underlying trends in its business by excluding the impact of share-based compensation expenses. The Company believes that adjusted net income provides useful information about its operating results, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.

Adjusted net income is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as an analytical tool, and when assessing the Company's operating performance, cash flows or liquidity, investors should not consider it 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. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

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.

[1] Adjusted net income, a non-GAAP financial measure, is defined as net income before share-based compensation expenses.

[2] "Take rate" is defined as dividing net revenue of a certain period by the period end loan balance.

About Weidai Ltd.

Weidai Ltd. is a pioneer and leading auto-backed financing solution provider in China supported by sophisticated and effective risk management system and technology. The Company transforms used automobiles, a type of "non-standard" collateral, into investable assets, to provide accessible credit for China's small and micro enterprises, and connects the borrowers with both online investors and institutional funding partners through its platform.

For more information, please visit http://weidai.investorroom.com/.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.7112 to US$1.00, the noon buying rate on March 29, 2019 set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

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. Weidai may also make written or oral forward-looking statements in its periodic reports to 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. Statements that are not historical facts, including statements about Weidai's beliefs and expectations, are forward-looking 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 the Company'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 the following: Weidai's goal and strategies; Weidai's expansion plans; Weidai's future business development, financial condition and results of operations; Weidai's expectations regarding demand for, and market acceptance of, its solutions and services; Weidai's expectations regarding keeping and strengthening its relationships with borrowers, investors and financial institutions and other platform participants; general economic and business conditions; Weidai's assumptions underlying or related to any of the foregoing regulations and governmental policies relating to the online consumer finance industry in China; and Weidai's ability to meet the standards necessary to maintain listing of its ADSs on the NYSE, 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 the Company'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 Weidai 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.

For investor and media inquiries, please contact:

In China:

Christensen
Mr. Christian Arnell
Tel: +86-10-5900-1548
E-mail: carnell@christensenir.com

In US:

Christensen
Ms. Linda Bergkamp
Tel: +1-480-614-3004
E-mail: lbergkamp@christensenir.com

 

 

WEIDAI LTD.

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except share data, or otherwise noted)




As of December 31,


As of March 31,



2018


2019



RMB


RMB


US$



(in thousands)








ASSETS

Current assets:







Cash and cash equivalents


1,741,911


1,472,593


219,423

Restricted cash


1,619,937


838,961


125,009

Loans and advances, net


1,482,368


1,155,368


172,156

Contract assets


-


944,495


140,735

Short-term investments


4,100


222,920


33,216

Prepaid expenses and other assets


560,165


483,135


71,988

Amounts due from related parties


21,797


17,198


2,562

Total current assets


5,430,278


5,134,670


765,089

 

Non-current assets:







Restricted cash


19,368


27,901


4,157

Long-term investments


13,333


13,333


1,987

Loans and advances, net


421,564


402,260


59,939

Prepaid expenses and other assets


7,606


5,606


834

Property, equipment and software, net


88,731


81,568


12,154

Goodwill


5,812


5,812


866

Contract assets


-


366,060


54,545

Deferred tax assets


329,796


317,498


47,309

Total non-current assets


886,210


1,220,038


181,791

Total assets


6,316,488


6,354,708


946,880








LIABILITIES AND SHAREHOLDERS' EQUITY







Current liabilities (including current liabilities of 
     the consolidated VIE and subsidiaries without 
     recourse to the primary beneficiary of 3,571,677 
     and RMB2,231,239(US$332,465) as of 
     December 31, 2018 and March 31, 2019, 
     respectively):







Payable to institutional funding partners and 
     online investors


1,005,236


504,402


75,158

Current account with online investors and 
     borrowers.


2,005,605


1,197,838


178,483

Income tax payable


70,679


94,959


14,149

Accrued expenses and other liabilities


501,439


451,253


67,240

Amounts due to related parties


28,728


14,705


2,191

Deferred revenue


11,962


-


-

Contract liabilities


-


22,918


3,415

Total current liabilities


3,623,649


2,286,075


340,636

Non-current liabilities (including non-current 
     liabilities of the consolidated VIE and 
     subsidiaries without recourse to the primary 
     beneficiary of RMB475,613 and RMB726,598 
     (US$108,266) as of December 31, 2018 and 
     March 31, 2019, respectively):







Payable to institutional funding partners and 
     online investors


450,160


425,875


63,457

Deferred revenue


11,343


-


-

Contract liabilities


-


6,041


900

Other non-current liabilities


14,110


14,615


2,178

Deferred tax liabilities


-


280,067


41,731

Total non-current liabilities


475,613


726,598


108,266

Total liabilities


4,099,262


3,012,673


448,902








Shareholders' equity







Class A ordinary shares (par value of 
     US$0.000002 per share; 35,375,777 and 
     35,375,777 shares issued and outstanding as of 
     December 31, 2018 and March 31, 2019, 
     respectively)


-


-


-

Class B ordinary shares (par value of 
     US$0.000002 per share; 35,071,400 and 
     35,071,400 shares issued and outstanding as of 
     December 31, 2018 and March 31, 2019, 
     respectively)


1


1


-

Additional paid-in capital


1,170,956


1,196,580


178,296

Accumulated other comprehensive loss


(2,700)


(8,253)


(1,230)

Retained earnings


1,040,443


2,144,968


319,610

Total Weidai Ltd. shareholders' equity


2,208,700


3,333,296


496,676

Noncontrolling interests


8,526


8,739


1,302

Total shareholders' equity


2,217,226


3,342,035


497,978

TOTAL LIABILITIES AND 
     SHAREHOLDERS' EQUITY


6,316,488


6,354,708


946,880


 

 


Weidai Ltd.  

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(All amounts in thousands, except share data, or otherwise noted)




Three Months Ended

December 31, 2018


Three Months Ended

March 31, 2019



RMB


RMB


US$



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




Net revenues:







Loan facilitation service fees 


844,735


766,930


114,276

Post facilitation service fees


84,174


83,464


12,437

Other revenues


43,301


51,617


7,691

Financing income


62,164


86,666


12,914

Less: Funding costs


(40,860)


(38,977)


(5,808)

Net financing income


21,304


47,689


7,106

Total net revenues


993,514


949,700


141,510

Provision for loans and advances


(326,631)


(244,124)


(36,376)

Net revenues after provision for 
     loans and advances


666,883


705,576


105,134








Operating costs and expenses:







Provision for financial guarantee 
     liabilities


(21,712)


(53,872)


(8,027)

Origination and servicing expenses


(413,750)


(376,374)


(56,081)

Sales and marketing expenses


(39,151)


(48,873)


(7,282)

General and administrative expenses


(112,906)


(57,958)


(8,636)

Research and development expenses


(37,771)


(43,684)


(6,509)

Total operation costs and expenses


(625,290)


(580,761)


(86,535)








Income from operations


41,593


124,815


18,599

Interest income, net


21,247


12,358


1,841

Government subsidies


32,427


10,591


1,578

Other expenses, net


(6,785)


(710)


(106)

Net income before income taxes


88,482


147,054


21,912

Income tax benefits/(expenses)


21,496


(38,096)


(5,676)

Net income


109,978


108,958


16,236

Net income attributable to 
     noncontrolling interests


(1,304)


(3,566)


(531)

Net income and comprehensive 
     income attributable to Weidai 
     Ltd.'s ordinary shareholders


108,674


105,392


15,705

Earnings per share:







Basic


1.61


1.50


0.22

Diluted


1.61


1.49


0.22

Shares used in earnings per share 
     computation:







Basic


58,556,551


70,447,177


70,447,177

Diluted


58,556,551


70,929,790


70,929,790

 

 

Weidai Ltd. 

UNAUDITED Reconciliation of GAAP And Non-GAAP Results 

(All amounts in thousands, except share data, or otherwise noted)




Three Months Ended

December 31, 2018


Three Months Ended

March 31, 2019



RMB


RMB


US$



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




Net income 


109,978


108,958


16,236

Add:







Share-based compensation expenses


23,216


25,624


3,818

Adjusted net income


133,194


134,582


20,054

 

Cision

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