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Yirendai Reports Second Quarter 2019 Financial Results

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BEIJING, Sept. 03, 2019 (GLOBE NEWSWIRE) -- Yirendai Ltd. (YRD) (“Yirendai” or the “Company”), a leading fintech company in China, today announced its unaudited financial results for the second quarter ended June 30, 2019.

Second Quarter 2019 Operational Highlights
Wealth Management—Yiren Wealth

  • Cumulative number of investors served reached 2,185,513, representing an increase of 1% from 2,159,490 in the first quarter of 2019 and compared to 1,974,984 in the second quarter of 2018.

  • Number of active investors in the second quarter of 2019 was 671,957, representing a decrease of 13% from 768,514 in the first quarter of 2019 and compared to 928,251 in the second quarter of 2018.

  • Total assets under management (“AUM”) for Yiren Wealth was RMB 43,604.2 million (US$ 6,351.7 million) as of June 30, 2019, representing a decrease of 7% from RMB 46,663.1 million as of March 31, 2019. Average AUM per investor reached RMB 149,480 (US$ 21,774) as of June 30, 2019, representing an increase of 7% from RMB 139,473 as of March 31, 2019.

  • AUM of non-P2P products amounted to RMB 354.3 million (US$ 51.6 million) in the second quarter of 2019, representing a decrease of 23% from RMB 457.7 million in the first quarter of 2019 and compared to RMB 951.0 million in the second quarter of 2018. Non-P2P products include money market funds, mutual funds and insurance.

Consumer Credit—Yiren Credit

  • Total loan originations in the second quarter of 2019 reached RMB 9.7 billion (US$1.4 billion), representing a decrease of 12% from RMB 10.9 billion in the first quarter of 2019 and compared to RMB 18.2 billion in the second quarter of 2018.

  • Cumulative number of borrowers served reached 4,491,466, representing an increase of 2% from 4,404,812 in the first quarter of 2019 and compared to 4,027,254 in the second quarter of 2018.

  • Number of borrowers in the second quarter of 2019 was 135,246, representing a decrease of 10% from 149,715 in the first quarter of 2019 and compared to 267,628 in the second quarter of 2018.

  • The percentage of loan volume generated by repeat borrowers was 35.9% in the second quarter of 2019.

  • 52.5% of loan originations were generated online in the second quarter of 2019.

  • Remaining principal of performing loans reached RMB 58,071.3 million (US$8,459.0 million) as of June 30, 2019, representing a decrease of 8% from RMB 63,213.8 million as of March 31, 2019.

“We achieved another solid quarter of operation in both credit and wealth management business, in particular we gained strong momentum in working with our bank partners to diversify our funding source,” said Mr. Ning Tang, Chairman and Chief Executive Officer of Yirendai. “We are seeing strong demand from bank and institutional partners for our stable consumer loan assets, which demonstrated our industry leadership position and strong asset sourcing capabilities leveraging our online/offline network. Our technology enabling solution further strengthen our partnership with banks, we have successfully deployed our turn-key online lending solution to the Bank of Ningxia, which marks the first milestone of our fintech solution for financial institutions. On wealth management, as part of our business transition to an asset-allocation based online wealth management platform, Yiren Wealth launched a new brand and rolled out several new products including bank savings, insurance and target risk funds on our wealth management platforms. We also released the first asset allocation guide targeted at China’s mass affluent population. In the second half of 2019, we will continue to focus on diversifying our wealth management product portfolio, acquiring key talent as well as streamlining our operations to better serve our investors. On the regulation front, we have increased our registered capital to RMB 1 billion, to prepare ourselves for the potential upcoming regulatory trial program.”

“On credit performance and risk management, we saw slight volatilities in early delinquencies this quarter as a result of industry conditions and a declining loan balance,” said Mr. Huan Chen, Board of Director and Chief Risk Officer of Yirendai. “To improve our overall risk levels, we have been actively optimizing our product portfolio to reduce risk exposure and enhancing our risk data set to lower borrowers' over-indebteness risk. Our integration with institutional bank funding could provide further risk performance improvement as we connect to PBOC credit system directly.”

“This quarter, we continue to maintain stable loan originations volume as we prioritize risk management and quality of asset growth,” said Mr. Dennis Cong, Senior V.P. of Yirendai. “Diversifying our funding source continues to be a top priority this year and we are pleased to announce that we have obtained close to RMB 30 billion line of credit from our institutional funding partners, thus we expect a significant portion of our new loan origination volume to be from institutional funding towards the end of 2019. This quarter, we maintained a healthy operating efficiency and profitability despite low business volume, our balance sheet remained strong with approximately RMB 3.1 billion of cash and short-term liquidity.”

Second Quarter 2019 Financial Results

Total amount of loans facilitated in the second quarter of 2019 was RMB 9,673.8 million (US$1,409.2 million), compared to RMB 18,180.3 million in the same period last year. As of June 30, 2019, the total outstanding principal amount of the performing loans was RMB 58.1 billion (US$8.5 billion), decreased by 8% from RMB 63.2 billion as of March 31, 2019.

Total net revenue in the second quarter of 2019 was RMB 2,216.6 million (US$322.9 million), compared to RMB 2,987.3 million in the same period last year. Revenue from Yiren Credit reached RMB 1,624.3 million (US$236.6 million), representing a decrease of 34% from RMB 2,455.7 million in the second quarter of 2018. Revenue from Yiren Wealth reached RMB 592.4 million (US$86.3 million), representing an increase of 11% from RMB 531.6 million in the second quarter of 2018.

Sales and marketing expenses in the second quarter of 2019 were RMB 1,208.6 million (US$176.1 million), compared to RMB 1,816.0 million in the same period last year. Sales and marketing expenses in the second quarter of 2019 accounted for 12.5% of the total amount of loans facilitated, as compared to 10.0% in the same period last year mainly due to a decrease in the amount of loans facilitated.

Origination and servicing costs in the second quarter of 2019 were RMB 162.9 million (US$23.7 million), compared to RMB 307.5 million in the same period last year. Origination and servicing costs in the second quarter of 2019 accounted for 1.7% of the total amount of loans facilitated, compared to 1.7% in the same period last year.

General and administrative expenses in the second quarter of 2019 were RMB 175.5 million (US$25.6 million), compared to RMB 504.2 million in the same period last year. General and administrative expenses in the second quarter of 2019 accounted for 7.9% of the total net revenue, compared to 16.9% in the same period last year mainly due to an expense of RMB 200.0 million related to the quality assurance program in the second quarter of 2018.

Allowance for contract assets and receivables in the second quarter of 2019 were RMB 500.9 million (US$73.0 million), compared to RMB 275.7 million in the same period last year. The increase was mainly attributable to changes in future collectability estimates.

Income tax expense in the second quarter of 2019 was RMB 61.9 million (US$9.0 million).

Net income in the second quarter of 2019 was RMB 154.5 million (US$22.5 million), compared to RMB 193.8 million in the same period last year.

Adjusted EBITDA (non-GAAP) in the second quarter of 2019 was RMB 239.9 million (US$35.0 million), compared to RMB 272.3 million in the same period last year. Adjusted EBITDA margin1 (non-GAAP) in the second quarter of 2019 was 10.8%, compared to 9.1% in the same period last year.

Basic income per ADS in the second quarter of 2019 was RMB 1.67 (US$0.24), compared to RMB 2.11 in the same period last year.

Diluted income per ADS in the second quarter of 2019 was RMB 1.66 (US$0.24), compared to RMB 2.09 in the same period last year.

Net cash used in operating activities in the second quarter of 2019 was RMB 331.8 million (US$48.3 million), compared to net cash used of RMB 1,905.3 million in the same period last year.

As of June 30, 2019, cash and cash equivalents was RMB 2,706.5 million (US$394.3 million), compared to RMB 2,519.4 million as of March 31, 2019. As of June 30, 2019, the balance of held-to-maturity investments was RMB 9.5 million (US$1.4 million), compared to RMB 312.8 million as of March 31, 2019. As of June 30, 2019, the balance of available-for-sale investments was RMB 387.5 million (US$56.4 million), compared to RMB 1,187.6 million as of March 31, 2019.

Delinquency rates. As of June 30, 2019, the delinquency rates for loans that are past due for 15-29 days, 30-59 days and 60-89 days were 1.1%, 1.8%, and 1.9%, respectively compared to 0.9%, 1.9%, and 1.7% as of March 31, 2019. The overall increase in delinquency rates was mainly due to the slower growth in loan volumes and volatile credit performance of the loans.

Cumulative M3+ net charge-off rates. As of June 30, 2019, the cumulative M3+ net charge-off rate for loans originated in 2016 was 9.2%, compared to 9.0% as of March 31, 2019. As of June 30, 2019, the cumulative M3+ net charge-off rate for loans originated in 2017 was 14.0%, compared to 12.7% as of March 31, 2019. As of June 30, 2019, the cumulative M3+ net charge-off rate for loans originated in 2018 was 8.7%, compared to 5.9% as of March 31, 2019.

Management Change
Effective September 4, 2019, Mr. Dennis Cong, Co-CFO of Yirendai, will assume the role of Senior Vice President of Corporate Business Development and continue his responsibilities of new business development, capital markets and strategic planning. Ms. Jia Liu, Co-CFO of Yirendai will become the sole CFO of the Company.

Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures 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 6.865 to US$1.00, the effective noon buying rate on June 28, 2019, 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 8:00 p.m. U.S. Eastern Time on September 3, 2019, (or 8:00 a.m. Beijing/Hong Kong Time on September 4, 2019).

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:

4045996

A replay of the conference call may be accessed by phone at the following numbers until September 10, 2019:

International:

+61 2-8199-0299

U.S. Toll Free:

+1 646-254-3697

Replay Access Code:

4045996

Additionally, a live and archived webcast of the conference call will be available at ir.yirendai.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. (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 online and offline channels 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 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 ir.Yirendai.com.

For investor and media inquiries, please contact:
Yirendai
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.

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 Six Months Ended

June 30,
2018

March 31,
2019

June 30,
2019

June 30,
2019

June 30,
2018

June 30,
2019

June 30,
2019

RMB
(Recast*)

RMB
(Recast*)

RMB

USD

RMB
(Recast*)

RMB

USD

Net revenue:

Loan facilitation services

2,054,278

1,055,046

1,237,718

180,295

5,051,741

2,292,764

333,979

Post-origination services

303,757

296,279

241,321

35,152

584,875

537,600

78,310

Account management services

431,803

488,340

549,024

79,974

793,545

1,037,364

151,109

Others

197,445

140,743

188,577

27,469

321,794

329,320

47,971

Total net revenue

2,987,283

1,980,408

2,216,640

322,890

6,751,955

4,197,048

611,369

Operating costs and expenses:

Sales and marketing

1,816,005

1,127,945

1,208,647

176,059

3,971,967

2,336,592

340,363

Origination and servicing

307,524

172,123

162,945

23,736

572,137

335,068

48,808

General and administrative

504,175

257,707

175,534

25,569

1,026,279

433,241

63,109

Allowance for contract assets and receivables

275,706

191,104

500,861

72,959

510,707

691,965

100,796

Total operating costs and expenses

2,903,410

1,748,879

2,047,987

298,323

6,081,090

3,796,866

553,076

Other income/(expenses):

Interest income, net

21,314

23,875

25,213

3,673

49,648

49,088

7,150

Fair value adjustments related to Consolidated ABFE

140,549

34,998

5,787

843

147,620

40,785

5,941

Others, net

(6,347

)

160,223

17,480

2,546

(6,923

)

177,703

25,886

Total other income

155,516

219,096

48,480

7,062

190,345

267,576

38,977

Income before provision for income taxes

239,389

450,625

217,133

31,629

861,210

667,758

97,270

Share of results of equity investees

(2,705

)

(4,957

)

(816

)

(119

)

(5,029

)

(5,773

)

(841

)

Income tax expense

42,916

76,534

61,856

9,010

126,495

138,390

20,159

Net income

193,768

369,134

154,461

22,500

729,686

523,595

76,270

Weighted average number of ordinary shares outstanding, basic

183,410,702

185,126,457

184,608,337

184,608,337

183,378,858

184,865,964

184,865,964

Basic income per share

1.0565

1.9940

0.8367

0.1219

3.9791

2.8323

0.4126

Basic income per ADS

2.1130

3.9880

1.6734

0.2438

7.9582

5.6646

0.8252

Weighted average number of ordinary shares outstanding, diluted

185,638,122

186,578,885

186,667,233

186,667,233

185,695,053

186,621,626

186,621,626

Diluted income per share

1.0438

1.9784

0.8275

0.1205

3.9295

2.8057

0.4087

Diluted income per ADS

2.0876

3.9568

1.6550

0.2410

7.8590

5.6114

0.8174

Unaudited Condensed Consolidated Cash Flow Data

Net cash used in operating activities

(1,905,334

)

(658,435

)

(331,829

)

(48,336

)

(2,722,370

)

(990,264

)

(144,248

)

Net cash provided by/ (used in) investing activities

469,124

(249,931

)

609,077

88,722

206,564

359,146

52,316

Net cash (used in)/provided by financing activities

(201,584

)

493,389

(73,385

)

(10,690

)

34,990

420,004

61,180

Effect of foreign exchange rate changes

8,117

(2,196

)

1,532

223

(2,859

)

(664

)

(97

)

Net (decrease)/ increase in cash, cash equivalents and restricted cash

(1,629,677

)

(417,173

)

205,395

29,919

(2,483,675

)

(211,778

)

(30,849

)

Cash, cash equivalents and restricted cash, beginning of period

3,626,324

3,034,484

2,617,311

381,254

4,480,322

3,034,484

442,022

Cash, cash equivalents and restricted cash, end of period

1,996,647

2,617,311

2,822,706

411,173

1,996,647

2,822,706

411,173

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

As of

December 31,
2018

March 31,
2019

June 30,
2019

June 30,
2019

RMB
(Recast*)

RMB
(Recast*)

RMB

USD

Cash and cash equivalents

2,606,939

2,519,423

2,706,530

394,250

Restricted cash

427,546

97,888

116,176

16,923

Accounts receivable

40,326

70,297

27,212

3,963

Contract assets, net

3,909,263

3,431,014

2,958,476

430,951

Contract cost

145,460

143,323

141,480

20,609

Prepaid expenses and other assets

2,552,319

1,221,074

1,142,757

166,460

Loans at fair value

1,375,221

851,406

677,354

98,668

Financing receivables

-

-

25,175

3,667

Amounts due from related parties

1,361,805

270,626

1,791,515

260,964

Held-to-maturity investments

329,597

312,768

9,542

1,390

Available-for-sale investments

835,565

1,187,588

387,519

56,449

Long term investments

217,636

167,428

143,047

20,837

Property, equipment and software, net

266,002

239,822

230,078

33,515

Deferred tax assets

184,136

156,322

149,269

21,744

Right-of-use assets

-

389,299

398,154

57,998

Total assets

14,251,815

11,058,278

10,904,284

1,588,388

Accounts payable

307,046

53,667

54,158

7,889

Amounts due to related parties

8,276,459

310,592

169,189

24,646

Liabilities from quality assurance program and guarantee

9,950

8,384

6,539

953

Deferred revenue

569,469

459,806

390,621

56,900

Payable to investors at fair value

626,207

7,386

-

-

Accrued expenses and other liabilities

2,193,576

2,154,786

2,265,288

329,976

Refund liability

2,145,748

2,137,835

2,039,998

297,159

Deferred tax liabilities

486,773

417,629

329,347

47,975

Lease liabilities

-

348,176

341,364

49,725

Contingent consideration

-

2,626,734

2,626,734

382,627

Total liabilities

14,615,228

8,524,995

8,223,238

1,197,850

Ordinary shares

77

77

77

11

Shares to be issued

-

2,754,444

2,754,444

401,230

Additional paid-in capital

1,293,968

1,081,499

1,106,153

161,129

Treasury stock

(254

)

(5,694

)

(37,097

)

(5,404

)

Accumulated other comprehensive income

16,390

13,160

18,367

2,676

Accumulated deficit

(1,673,594

)

(1,310,203

)

(1,160,898

)

(169,104

)

Total (deficit)/ equity

(363,413

)

2,533,283

2,681,046

390,538

Total liabilities and equity

14,251,815

11,058,278

10,904,284

1,588,388

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 Six Months Ended

June 30,
2018

March 31, 2019

June 30,
2019

June 30,
2019

June 30,
2018

June 30,
2019

June 30,
2019

RMB
(Recast*)

RMB
(Recast*)

RMB

USD

RMB
(Recast*)

RMB

USD

Operating Highlights

Amount of investment

17,627,499

11,435,588

11,939,582

1,739,196

35,655,154

23,375,170

3,404,977

AUM of investment

74,296,263

67,251,285

64,476,635

9,392,081

74,296,263

64,476,635

9,392,081

Number of investors

314,507

200,780

157,973

157,973

529,962

320,054

320,054

Amount of loans facilitated

18,180,272

10,934,923

9,673,818

1,409,150

37,951,340

20,608,740

3,002,002

Number of borrowers

267,628

149,715

135,246

135,246

553,938

280,634

280,634

Remaining principal of performing loans

76,479,235

63,213,843

58,071,303

8,459,039

76,479,235

58,071,303

8,459,039

Segment Information

Wealth management:

Revenue

531,611

521,434

592,378

86,290

954,601

1,113,812

162,245

Sales and marketing expenses

249,748

143,904

213,168

31,051

948,681

357,072

52,013

Consumer credit:

Revenue

2,455,672

1,458,974

1,624,262

236,600

5,797,354

3,083,236

449,124

Sales and marketing expenses

1,566,257

984,041

995,479

145,008

3,023,286

1,979,520

288,350

Reconciliation of Adjusted EBITDA

Net income

193,768

369,134

154,461

22,500

729,686

523,595

76,270

Interest income, net

(21,314

)

(23,875

)

(25,213

)

(3,673

)

(49,648

)

(49,088

)

(7,150

)

Income tax expense

42,916

76,534

61,856

9,010

126,495

138,390

20,159

Depreciation and amortization

37,144

32,502

31,112

4,532

75,397

63,614

9,266

Share-based compensation

19,766

14,699

17,732

2,583

39,299

32,431

4,724

Adjusted EBITDA

272,280

468,994

239,948

34,952

921,229

708,942

103,269

Adjusted EBITDA margin

9.1

%

23.7

%

10.8

%

10.8

%

13.6

%

16.9

%

16.9

%

* Prior period financials have been recasted to reflect the acquisition from Creditease under common control.

Delinquency Rates

Delinquent for

15-29 days

30-59 days

60-89 days

All Loans

December 31, 2015

0.7%

1.2%

0.9%

December 31, 2016

0.6%

0.9%

0.8%

December 31, 2017

0.8%

1.0%

0.8%

December 31, 2018

1.0%

1.8%

1.7%

March 31, 2019

0.9%

1.9%

1.7%

June 30, 2019

1.1%

1.8%

1.9%

Online Channels

December 31, 2015

0.5%

0.8%

0.6%

December 31, 2016

0.5%

0.9%

0.8%

December 31, 2017

1.1%

1.1%

0.9%

December 31, 2018

1.2%

2.3%

2.2%

March 31, 2019

1.2%

2.6%

2.4%

June 30, 2019

1.4%

2.2%

2.6%

Offline Channels

December 31, 2015

0.7%

1.2%

1.0%

December 31, 2016

0.6%

0.9%

0.8%

December 31, 2017

0.6%

0.9%

0.7%

December 31, 2018

0.9%

1.6%

1.5%

March 31, 2019

0.8%

1.6%

1.5%

June 30, 2019

1.0%

1.6%

1.7%

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 June 30, 2019

Total Net Charge-Off Rate
as of June 30, 2019

(in RMB thousands)

(in RMB thousands)

2015

I

4,894,936

204,257

4.2

%

II

17,502,449

490,328

2.8

%

III

11,272,838

715,240

6.3

%

IV

11,283,656

1,362,071

12.1

%

V

11,199,563

1,725,698

15.4

%

Total

56,153,444

4,497,593

8.0

%

2016

I

5,858,473

229,407

3.9

%

II

12,781,372

516,174

4.0

%

III

9,951,614

734,157

7.4

%

IV

8,652,543

911,659

10.5

%

V

16,981,990

2,582,818

15.2

%

Total

54,225,993

4,974,216

9.2

%

2017

I

11,223,886

626,827

5.6

%

II

12,270,230

1,369,026

11.2

%

III

13,837,922

2,015,072

14.6

%

IV

13,663,558

2,186,320

16.0

%

V

19,680,365

3,720,647

18.9

%

Total

70,675,961

9,917,892

14.0

%

2018

I

9,604,220

361,355

3.8

%

II

14,656,703

961,532

6.6

%

III

13,903,094

1,190,224

8.6

%

IV

13,812,989

1,511,587

10.9

%

V

11,326,230

1,513,789

13.4

%

Total

63,303,236

5,538,487

8.7

%

2019Q1

I

1,834,364

3,213

0.2

%

II

3,309,340

11,289

0.3

%

III

2,617,979

11,815

0.5

%

IV

1,866,640

8,316

0.4

%

V

1,306,600

6,983

0.5

%

Total

10,934,923

41,617

0.4

%

M3+ Net Charge-Off Rate

Loan Issued
Period

Month on Book

4

7

10

13

16

19

22

25

28

31

34

2015Q1

0.8%

2.0%

3.5%

4.7%

5.8%

6.5%

7.1%

7.5%

7.7%

7.8%

7.8%

2015Q2

0.8%

2.3%

3.8%

5.2%

6.4%

7.3%

8.0%

8.3%

8.5%

8.7%

8.8%

2015Q3

0.4%

1.6%

3.1%

4.4%

5.6%

6.5%

7.2%

7.6%

7.9%

8.2%

8.4%

2015Q4

0.4%

1.6%

3.1%

4.4%

5.5%

6.3%

6.9%

7.4%

7.9%

8.3%

8.6%

2016Q1

0.3%

1.2%

2.5%

3.6%

4.5%

5.2%

5.8%

6.5%

7.0%

7.4%

7.6%

2016Q2

0.4%

1.6%

3.1%

4.3%

5.2%

6.0%

6.8%

7.6%

8.1%

8.4%

8.7%

2016Q3

0.3%

1.6%

3.1%

4.3%

5.4%

6.6%

7.8%

8.6%

9.2%

9.5%

2016Q4

0.2%

1.5%

2.9%

4.4%

5.9%

7.4%

8.4%

9.3%

10.0%

2017Q1

0.3%

1.5%

3.2%

5.1%

7.1%

8.6%

9.8%

10.8%

2017Q2

1.1%

2.9%

5.6%

8.4%

10.4%

12.1%

13.5%

2017Q3

0.3%

2.9%

6.3%

9.1%

11.6%

13.6%

2017Q4

0.5%

3.8%

7.2%

10.5%

13.2%

2018Q1

0.4%

3.0%

6.6%

10.1%

2018Q2

0.5%

3.6%

7.4%

2018Q3

0.3%

2.9%

2018Q4

0.3%