Yirendai Ltd. (NYSE:YRD), a prominent online lender in China, announced its unaudited financial results for the quarter and full year ended December 31, 2016. Folowing the release, shares moved lower in pre-market trading.
In Q4 of 2016, Yirendai reported it had facilitated 194,505 investors with total investment of RMB 7,806.9 million (approximately US$1,124.4 million), 100% of which was facilitated via its online platform and 85.0% of which was facilitated through its mobile application. Total net revenue in Q4 was RMB 1,071.1 million (US$154.3 million), up by 137% from the same period in 2015; net income was RMB 379.8 million (US$54.7 million), representing an increase of 356% from the same period in 2015.
For the full year of 2016, Yirendai said it had originated RMB 20,277.9 million (US$2,920.6 million) of loans to 321,019 qualified individual borrowers on its online platform, representing a 112% year-over-year growth. Yirendai said that 57% of the borrowers were acquired from online channels and 38% of the loan volume originated from online channels and 97.8% of the online volume was facilitated through the Yirendai mobile application.
For the full year of 2016, Yirendai facilitated 597,765 investors with total investment of RMB 25,038.3 million (US$3,606.3 million), 100% of which was facilitated through its online platform and 83.0% of which was facilitated through its mobile application.
For the full year of 2016, total net revenue was RMB 3,238.0 million (US$466.4 million), up 146% from the same period in 2015; net income was RMB 1,116.4 million (US$160.8 million), representing an increase of 305% from the same period in 2015.
Yirendai also stated that beginning in Q2 of 2016, the company changed its reporting currency from the U.S. dollar to the Renminbi, to reduce the impact of increased volatility of the RMB to US$ exchange rate.
Yihan Fang, Chief Executive Officer of Yirendai, released a statement on the results.
“The fourth quarter of 2016 continued to be strong for us as our loan facilitation volume reached another record high of RMB 6.7 billion. In the past year, we executed a number of initiatives to drive our business growth and enhance our market leadership. We have made remarkable achievements in many fronts, including new product development, credit underwriting, risk management and new partnerships. In our effort to set up best practice in the industry, we have been in frequent communication with governmental authorities relating to the regulatory requirements. In 2017, we will ensure our full compliance with regulatory requirements. In addition, we will continue to invest in brand building and customer engagement for both borrowers and investors. Furthermore, we are committed to driving the robust momentum of business growth by establishing strong partnerships with vertical industries and financial institutions and leveraging the Yirendai Enabling Platform that we launched recently.”
Dennis Cong, CFO of Yirendai, said that 2017 was expected to be a healthier business environment as new regulations pushed industry consolidation.
“We will continue to grow our marketplace lending business and explore new revenue opportunities by leveraging our established customer base. At the same time, we will enhance cooperation with industry partners to improve customer acquisition efficiency and reduce funding cost. We are confident to continue the momentum of business growth and set our corporate goal of reaching RMB 100 billion loan origination volume per year in 2020.”
The online or peer to peer lending market in China is the largest in the world. Yirendai is the offshoot of CreditEase – a private company
| For Three Months Ended | For Twelve Months Ended | ||||||
| in RMB million | December 31, 2016 |
December 31, 2015 |
YoY Change |
December 31, 2016 |
December 31, 2015 |
YoY Change |
|
| Amount of Loans Facilitated | 6,675.2 | 3,301.5 | 102% | 20,277.9 | 9,557.6 | 112% | |
| Total Net Revenue | 1,071.1 | 451.6 | 137% | 3,238.0 | 1,313.6 | 146% | |
| Total Fees Billed (non-GAAP) | 1,630.4 | 773.6 | 111% | 4,911.2 | 2,154.1 | 128% | |
| Net Income | 379.8 | 83.3 | 356% | 1,116.4 | 275.3 | 305% | |
| Adjusted EBITDA (non-GAAP) | 401.1 | 126.5 | 217% | 1,093.4 | 402.7 | 172% | |