SHANGHAI, March 14, 2019 /PRNewswire/ -- PPDAI Group Inc. ("PPDAI," "Paipaidai," or the "Company") (NYSE: PPDF), a leading online consumer finance marketplace in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2018.
As of |
|||
December 31, |
September 30, |
December 31, |
|
Cumulative registered users[1] ('000) |
65,409 |
83,949 |
88,930 |
Cumulative number of borrowers[2] ('000) |
10,518 |
13,440 |
14,440 |
Cumulative number of individual investors[3] |
559,760 |
644,376 |
667,738 |
For Three Months Ended |
For Twelve Months Ended |
||||||
December |
December |
YoY |
December |
December |
YoY |
||
Number of unique borrowers[4] ('000) |
4,017 |
3,037 |
(24.4%) |
8,730 |
6,806 |
(22.0%) |
|
Loan origination volume[5] (RMB, million) |
17,567 |
17,617 |
0.3% |
65,568 |
61,498 |
(6.2%) |
|
Repeat borrowing rate[6] (%) |
72.8% |
73.4% |
0.8% |
68.9% |
73.6% |
6.8% |
|
Average loan size[7] (RMB) |
2,590 |
3,423 |
32.2% |
2,470 |
3,281 |
32.8% |
|
Fourth Quarter 2018 Financial and Operational Highlights
Fiscal Year 2018 Financial and Operational Highlights:
[1] On a cumulative basis, number of users registered on PPDAI platform as of December 31, 2018. |
[2] On a cumulative basis, number of borrowers whose loans were funded on or prior to December 31, 2018. |
[3] On a cumulative basis, number of individual investors who have made at least one investment in loans on or prior to December 31, 2018. |
[4] Represents the total number of borrowers whose loans on PPDAI platform were funded during the period presented. |
[5] Represents the loan origination volume generated during the period presented. |
[6] Represents percentage of loan volume generated by repeat borrowers who have successfully borrowed on PPDAI platform before. |
[7] Represents the average loan size on PPDAI platform during the period presented. |
[8] Represents the average loan tenure period on PPDAI platform during the period presented. |
Mr. Jun Zhang, Chairman and Co-Chief Executive Officer of PPDAI, commented, "We delivered solid performance in the fourth quarter and fiscal year 2018 despite tightening regulations and a volatile market environment. Our outstanding operating results were highlighted by a robust 128.0% increase in net profit to RMB2,469.5 million in 2018 from RMB1,082.9 million in 2017. The progressive growth in net profit reflects our stable business operations, a culture of good compliance and our prudent track record of risk management. As of December 31, 2018, we had over 88.9 million cumulative registered users, with cumulative borrowers exceeding 14.4 million and our cumulative investors reaching 667,738. Our 'technologies as a service' has been making steady progress over the course of the year as our services have been deployed to a broadening range of financial institutions.
"The stricter enforcement of regulations in the consumer lending space has led to rapid industry consolidation. In light of these industry trends, we are benefiting from our increased market share position. Additionally, we continue to work closely with the regulatory authorities and we are confident of meeting future industry compliance requirements. We firmly believe that a strengthened regulatory framework around consumer lending is crucial to supporting a healthy and sustainable industry. As a leader in the space, with strong proprietary technologies and capabilities, and the longest operating history, PPDAI is well positioned to capture the tremendous long-term growth opportunities in China's online consumer finance marketplace."
Mr. Feng Zhang, Co-Chief Executive Officer of PPDAI, said, "Benefitting from the rapid growth in institutional funding, the Company's total loan origination volume in the fourth quarter of 2018 increased by 19.2% to RMB17.6 billion from RMB14.8 billion in the third quarter of 2018. In the fourth quarter, we made solid progress in expanding our institutional funds and the proportion of loans facilitated with institutional funding partners to total loan origination volume increased to 20.4% from 14.3% in the third quarter of 2018. Looking forward, we are confident in our ability to achieve further diversification in funding sources through our institutional funding partners in 2019."
Mr. Simon Ho, Chief Financial Officer of PPDAI, commented, "In spite of regulatory changes that impacted our industry, we are delighted to achieve strong operational results in the fourth quarter, as demonstrated by a 44.2% year-over-year increase in our non-GAAP operating income and a healthy non-GAAP operating margin of 40%. Our balance sheet remained solid with approximately RMB3.3 billion of cash and short-term liquidity. Notably, our quality assurance fund remains sufficiently funded with a total balance of RMB4.5 billion, equivalent to 23.2% of the total outstanding loans protected by the quality assurance fund. Our result highlights the strength and resilience of our operating model as we navigate through the evolving industry landscape."
Mr. Jun Zhang concluded, "As a leader in the online consumer finance industry, we remain committed to enhancing shareholder value. We are also pleased to announce our first dividend of US$0.19 per ADS as a listed company. This reflects the confidence in our business, our capabilities and the long-term market potential. Going forward, we will maintain focus on expanding the breadth of our loan services, strengthening brand recognition, continuing to invest in and enhance proprietary technologies in addition to exploring opportunities for expansion both domestically and internationally."
Fourth Quarter 2018 Financial Results
Operating revenues for the fourth quarter of 2018 increased by 33.7% to RMB1,219.2 million (US$177.3 million) from RMB912.1 million in the same period of 2017, primarily due to the old revenue recognition standard ASC 605 used in 2017 and a write-back of provision for expected discretionary payments to investors in investment programs protected by the investor reserve funds. As a result of the adoption of ASC 606 effective January 1, 2018, revenue is generally recognized earlier in the life of the contract as there is no contingency revenue cap under the new standard. For the three months ended December 31, 2018, the impact of applying the new revenue standard resulted in an increase of approximately RMB44.5 million (US$6.5 million) in revenues.
Loan facilitation service fees increased by 35.0% to RMB837.4 million (US$121.8 million) for the fourth quarter of 2018 from RMB620.2 million in the same period of 2017, primarily due to the old revenue recognition standard ASC 605 used in 2017. The average rate of transaction fees charged to borrowers was 7.38% in the period, compared to 7.07% in the third quarter of 2018 and 6.24% in the fourth quarter of 2017. Loan collection fees of RMB99.8 million (US$14.5 million) have been allocated from other revenue to loan facilitation service fees related to the adoption of ASC 606 effective January 1, 2018.
Post-facilitation service fees increased by 10.0% to RMB249.9 million (US$36.3 million) for the fourth quarter of 2018 from RMB227.2 million in the same period of 2017, due to the adoption of ASC 606 effective January 1, 2018. Loan collection fees of RMB38.3 million (US$5.6 million) have been allocated from other revenue to post facilitation service fees related to the adoption of ASC 606.
Other revenue decreased by 37.5% to RMB107.8 million (US$15.7million) for the fourth quarter of 2018 from RMB172.4 million in the same period of 2017, primarily due to the adoption of ASC 606 effective January 1, 2018, which reallocated loan collection fees to loan facilitation fees and post facilitation fees. This was offset by an increase in management fees from investment programs that invest in loans protected by the quality assurance fund.
Net interest income/(expenses) and loan provision losses for the fourth quarter of 2018 were an expense of RMB9.4 million (US$1.4 million), compared to an expense of RMB13.2 million in the same period of 2017, mainly due to provisions for loan losses related to consolidated investment trusts established during the period.
Origination and servicing expenses decreased by 6.3% to RMB277.6 million (US$40.4 million) for the fourth quarter of 2018 from RMB296.3 million in the same period of 2017, primarily due to the discontinuation of consumption loan products since late 2017.
Sales and marketing expenses decreased by 24.2% to RMB180.9 million (US$26.3million) for the fourth quarter of 2018 from RMB238.6 million in the same period of 2017, primarily due to the decline in online customer acquisition expenses.
General and administrative expenses decreased by 15.5% to RMB211.7 million (US$30.8 million) for the fourth quarter of 2018 from RMB250.4 million in the same period of 2017, primarily due to the decline in share-based compensation expenses. General and administrative expenses for the period included share-based compensation of RMB9.6 million (US$1.4 million). Share-based compensation recognized in the fourth quarter of 2017 included compensation related to employee options granted historically with a performance target contingent upon IPO.
Operating income increased by 328.4% to RMB486.6 million (US$70.8 million) for the fourth quarter of 2018 from RMB113.6 million in the same period of 2017.
Non-GAAP adjusted operating income, which excludes share-based compensation expenses before tax and a write-back of provision for expected discretionary payments to investors in investment programs protected by the investor reserve funds, was RMB472.1 million (US$68.7 million) for the fourth quarter of 2018, representing an increase of 44.2% from RMB327.4 million in the same period of 2017.
Other income was RMB94.4 million (US$13.7 million) for the fourth quarter of 2018, compared with a loss of RMB694.8 million in the same period of 2017. Other income primarily consisted of (1) a gain of RMB23.5million (US$3.4 million) from the quality assurance fund, (2) a gain of RMB10.8 million (US$1.6 million) from the fair value change of financial guarantee derivatives, and (3) a realized gain of RMB18.0 million (US$2.6 million) from financial guarantee derivatives due to the amount of investment programs maturing during the period. The Company re-evaluates the fair value of outstanding financial guarantee derivatives at each balance sheet date to reflect the views of market participants on the expected default rate based on the latest market changes. For the fourth quarter of 2018, RMB13.1 billion of loans facilitated on the Company's platform were protected by the quality assurance fund.
Income tax credits were RMB193.6 million (US$28.2 million) for the fourth quarter of 2018, compared with income tax credits of RMB74.1 million in the same period of 2017, primarily due to the write-back of accrued income tax as the Company is able to enjoy a preferential tax treatment since it was recognized as a "software enterprise" by relevant PRC government agencies.
Net profit was RMB774.6 million (US$112.7 million) for the fourth quarter of 2018, compared with a net loss of RMB507.1 million in the same period of 2017.
Net profit attributable to ordinary shareholders of the Company was RMB774.2 million (US$112.6 million) for the fourth quarter of 2018, compared with a net loss attributable to ordinary shareholders of RMB1,303.9 million in the same period of 2017 due to accretion of the Company's Series A, B and C preferred shares in the fourth quarter of 2017.
As of December 31, 2018, the Company had cash and cash equivalents of RMB1,616.2 million (US$235.1 million) and short-term investments mainly in wealth management products of RMB1,694.7 million (US$246.5 million).
The total balance of the quality assurance fund, which includes restricted cash of RMB2,414.4 million (US$351.2 million) and the quality assurance fund receivable of RMB2,064.4 million (US$300.3 million), was equivalent to 23.2% of the total outstanding loans protected by the quality assurance fund.
The following table provides the delinquency rates for all outstanding loans on the Company's platform as of the respective dates indicated.
As of |
15-29 |
30-59 |
60-89 |
90-119 days |
120-149 days |
150-179 days |
March 31, 2015 |
0.79% |
1.75% |
1.10% |
1.01% |
0.87% |
0.67% |
June 30, 2015 |
0.88% |
1.06% |
0.67% |
0.54% |
0.89% |
0.67% |
September 30, 2015 |
0.67% |
0.89% |
0.61% |
0.54% |
0.44% |
0.35% |
December 31, 2015 |
0.80% |
0.93% |
0.51% |
0.49% |
0.39% |
0.32% |
March 31, 2016 |
0.62% |
0.93% |
0.72% |
0.61% |
0.48% |
0.32% |
June 30, 2016 |
0.82% |
1.01% |
0.63% |
0.43% |
0.47% |
0.44% |
September 30, 2016 |
0.83% |
1.11% |
0.80% |
0.63% |
0.49% |
0.39% |
December 31, 2016 |
0.63% |
0.91% |
0.75% |
0.79% |
0.69% |
0.57% |
March 31, 2017 |
0.57% |
0.95% |
0.79% |
0.59% |
0.54% |
0.51% |
June 30, 2017 |
0.86% |
1.11% |
0.79% |
0.51% |
0.55% |
0.52% |
September 30, 2017 |
0.89% |
1.40% |
1.15% |
1.02% |
0.79% |
0.60% |
December 31, 2017 |
2.27% |
2.21% |
1.72% |
1.63% |
1.36% |
1.20% |
March 31, 2018 |
0.87% |
2.11% |
2.43% |
3.83% |
2.29% |
1.89% |
June 30, 2018 |
0.83% |
1.21% |
1.05% |
0.98% |
1.60% |
2.03% |
September 30, 2018 |
1.03% |
1.77% |
1.49% |
1.29% |
1.06% |
1.02% |
December 31, 2018 |
0.92% |
1.63% |
1.41% |
1.45% |
1.44% |
1.34% |
The following chart and table display the historical cumulative 30-day plus past due delinquency rates by loan origination vintage for all continuing loan products facilitated through the Company's online marketplace:
Click here to view the chart.
Month on Book |
|||||||||||||||||||||||
Vintage |
2nd |
3rd |
4th |
5th |
6th |
7th |
8th |
9th |
10th |
11th |
12th |
||||||||||||
2015Q1 |
1.95% |
2.75% |
3.46% |
3.98% |
4.36% |
4.58% |
4.67% |
4.69% |
4.73% |
4.76% |
4.74% |
||||||||||||
2015Q2 |
1.74% |
2.66% |
3.38% |
3.75% |
4.02% |
4.15% |
4.30% |
4.38% |
4.45% |
4.46% |
4.46% |
||||||||||||
2015Q3 |
1.46% |
2.13% |
2.70% |
3.15% |
3.47% |
3.68% |
3.77% |
3.85% |
3.93% |
4.01% |
4.02% |
||||||||||||
2015Q4 |
1.54% |
2.27% |
2.88% |
3.17% |
3.53% |
3.77% |
3.97% |
4.12% |
4.26% |
4.32% |
4.33% |
||||||||||||
2016Q1 |
1.00% |
1.57% |
2.21% |
2.82% |
3.33% |
3.77% |
4.09% |
4.33% |
4.45% |
4.57% |
4.59% |
||||||||||||
2016Q2 |
1.75% |
2.49% |
3.21% |
3.77% |
4.17% |
4.39% |
4.59% |
4.76% |
4.88% |
4.94% |
4.96% |
||||||||||||
2016Q3 |
1.67% |
2.45% |
2.96% |
3.47% |
3.87% |
4.11% |
4.27% |
4.44% |
4.59% |
4.70% |
4.77% |
||||||||||||
2016Q4 |
1.29% |
2.07% |
2.66% |
3.15% |
3.59% |
3.97% |
4.32% |
4.62% |
4.88% |
5.07% |
5.18% |
||||||||||||
2017Q1 |
1.20% |
2.01% |
2.68% |
3.32% |
3.87% |
4.33% |
4.68% |
4.98% |
5.33% |
5.61% |
5.80% |
||||||||||||
2017Q2 |
1.72% |
2.89% |
3.81% |
4.55% |
5.14% |
5.78% |
6.32% |
6.79% |
7.05% |
7.19% |
7.24% |
||||||||||||
2017Q3 |
1.82% |
2.93% |
4.08% |
5.16% |
6.13% |
6.64% |
6.88% |
7.04% |
7.16% |
7.22% |
7.26% |
||||||||||||
2017Q4 |
2.51% |
4.12% |
5.16% |
5.68% |
5.97% |
6.18% |
6.29% |
6.39% |
6.47% |
6.50% |
6.50% |
||||||||||||
2018Q1 |
1.35% |
2.18% |
2.97% |
3.65% |
4.30% |
4.85% |
5.22% |
5.50% |
|||||||||||||||
2018Q2 |
1.75% |
3.08% |
4.35% |
5.43% |
6.31% |
||||||||||||||||||
2018Q3 |
1.42% |
2.48% |
|||||||||||||||||||||
Fiscal Year 2018 Financial Results
Operating revenues for the fiscal year 2018 increased by 10.1% to RMB4,287.6 million (US$623.6 million) from RMB3,895.8 million in 2017, primarily due to the old revenue recognition standard ASC 605 used in 2017 and the write-back of provision for expected discretionary payments to investors in investment programs protected by the investor reserve funds. For the fiscal year 2018, the impact of applying the new revenue standard ASC 606 resulted in an increase of approximately RMB511.1 million (US$74.3 million) in revenue.
Loan facilitation service fees increased by 2.7% to RMB2,919.2 million (US$424.6 million) for the fiscal year 2018 from RMB2,843.3 million in 2017, primarily due to the old revenue recognition standard ASC 605 used in 2017. The average rate of transaction fees charged to borrowers was 6.77%, compared with 6.5% in 2017. Loan collection fees of RMB342.7 million (US$49.8 million) have been allocated from other revenue to loan facilitation service fees related to the adoption of ASC 606 effective January 1, 2018.
Post-facilitation service fees increased by 38.0% to RMB922.8 million (US$134.2 million) for the fiscal year 2018 from RMB668.8 million in the prior year, primarily due to the rolling impact of deferred transaction fees and the adoption of ASC 606 effective January 1, 2018. Loan collection fees of RMB125.2 million (US$18.2 million) have been allocated from other revenue to post facilitation service fees related to the adoption of ASC 606.
Other revenue decreased by 23.3% to RMB376.9 million (US$54.8 million) for the fiscal year 2018 from RMB491.4 million in 2017, primarily due to the adoption of ASC 606 effective January 1, 2018, which reallocated loan collection fees to loan facilitation fees and post facilitation fees. This was offset by an increase in management fees from investment programs that invest in loans protected by the quality assurance fund.
Net interest income/(expense) and loan provision losses for the fiscal year 2018 was an income of RMB63.4 million (US$9.2 million), compared with an expense of RMB15.2 million in 2017, primarily due to income from the increased number of consolidated investment trusts.
Origination and servicing expenses increased by 1.1% to RMB985.6 million (US$143.3 million) for the fiscal year 2018 from RMB974.5 million in the prior year, primarily due to (i) a decrease in salaries and benefits as a result of a decrease in headcount particularly for consumption loan products, and (ii) a decrease in referral fees paid to third parties for successful loan originations, which was largely offset by an increase in fees paid to third parties for loan collection services.
Sales and marketing expenses decreased by 9.8% to RMB710.8 million (US$103.4 million) for the fiscal year 2018 from RMB788.3 million in 2017, primarily due to a decline in online customer acquisition expenses.
General and administrative expenses increased by 19.1% to RMB701.4 million (US$102.0 million) for the fiscal year 2018 from RMB588.7 million in 2017, primarily due to an increase in research and development costs. General and administrative expenses for the period included share-based compensation of RMB50.3 million (US$7.3 million).
Operating income increased by 20.8% to RMB1,846.6 million (US$268.6 million) for the fiscal year 2018 from RMB1,529.2 million in 2017.
Non-GAAP adjusted operating income, which excludes share-based compensation expenses and a one-time provision for expected discretionary payments to investors in investment programs protected by the Company's investor protection funds from profit/(loss) before tax, increased by 4.9% to RMB1,828.3 million (US$265.9 million) for the fiscal year 2018 from RMB1,743.0 million in 2017.
Other income recorded a gain of RMB774.1 million (US$112.6 million) for the fiscal year 2018, compared to a loss of RMB171.5 million in 2017. Other income primarily consisted of (1) a gain of RMB510.9 million (US$74.3 million) from the quality assurance fund resulting from the growth in loans facilitated on the Company's platform that are protected by the quality assurance fund, (2) a gain of RMB272.1 million (US$39.6 million) from fair value change of financial guarantee derivatives due to an improvement in the expected default rate for underlying loans investment programs protected by the investor reserve funds, and (3) a RMB157.2 million (US$22.9 million) realized loss from financial guarantee derivatives due to the amount of investment programs maturing during the period .
Income tax expenses were RMB151.2 million (US$22.0 million) for the fiscal year 2018, compared with RMB274.7 million in 2017. The decrease was primarily due to the write-back of accrued income tax as the Company is able to enjoy a preferential tax treatment since it was recognized as a "software enterprise" by relevant PRC government agencies.
Net profit was RMB2,469.5 million (US$359.2 million) for the fiscal year 2018, representing a 128.0% increase from RMB1,082.9 million in 2017.
Net profit attributable to ordinary shareholders of the Company was RMB2,469.1 million (US$359.1 million) for fiscal year 2018, compared with a net loss attributable to ordinary shareholders of RMB1,990.5 million in 2017 due to the accretion losses on the Company's Series A, B and C preferred shares.
Conference Call
The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on March 14, 2019 (8:00 PM Beijing/Hong Kong time on March 14, 2019).
Dial-in details for the earnings conference call are as follows:
United States (toll free): |
1-888-346-8982 |
International: |
1-412-902-4272 |
Hong Kong (toll free): |
800-905-945 |
Hong Kong: |
852-3018-4992 |
China: |
400-120-1203 |
Participants should dial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for "PPDAI Group."
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.ppdai.com.
A replay of the conference call will be accessible approximately one hour after the conclusion of the live call until March 21, 2019, by dialing the following telephone numbers:
United States (toll free): |
1-877-344-7529 |
International: |
1-412-317-0088 |
Replay Access Code: |
10129178 |
About PPDAI Group Inc.
PPDAI is a leading online consumer finance marketplace in China with strong brand recognition. Launched in 2007, the Company is the first online consumer finance marketplace in China connecting borrowers and investors. As a pioneer in China's online consumer finance marketplace, the Company benefits from both its early-mover advantages and the invaluable data and experience accumulated throughout multiple complete loan lifecycles. The Company's platform, empowered by its proprietary, cutting-edge technologies, features a highly automated loan transaction process, which enables a superior user experience, as evidenced by the rapid growth of the Company's user base and loan origination volume. As of December 31, 2018, the Company had over 88.9 million cumulative registered users.
For more information, please visit http://ir.ppdai.com.
Use of Non-GAAP Financial Measures
We use Non-GAAP operating income, a Non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. We believe that adjusted operating income help identify underlying trends in our business by excluding the impact of share-based compensation expenses and expected discretionary measures. We believe that adjusted operating income provide 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.
Non-GAAP adjusted operating income is not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. This Non-GAAP financial measure has 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 (loss)/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 our 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.
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 RMB6.8755 to US$1.00, the rate in effect as of December 31, 2018 as certified for customs purposes by the Federal Reserve Bank of New York.
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 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 to, uncertainties as to the Company's ability to attract and retain borrowers and investors on its marketplace, its ability to increase volume of loans facilitated through the Company's marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, laws, regulations and governmental policies relating to the online consumer finance industry in China, general economic conditions in China, and the Company'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 PPDAI 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:
PPDAI Group Inc.
Jimmy Tan / Sally Huo
Tel: +86 (21) 8030 3200-8601
E-mail: ir@ppdai.com
The Piacente Group, Inc.
Ross Warner
Tel: +86 (10) 5730-6200
E-mail: paipaidai@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: paipaidai@tpg-ir.com
PPDAI GROUP INC. |
|||
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
(All amounts in thousands, except share data, or otherwise noted) |
|||
As of December 31, |
As of December 31, |
||
2017 |
2018 |
||
RMB |
RMB |
USD |
|
Assets |
|||
Cash and cash equivalents |
1,891,131 |
1,616,164 |
235,061 |
Restricted cash |
2,392,573 |
3,677,557 |
534,878 |
Short-term investments |
1,958,910 |
1,694,660 |
246,478 |
Investments |
12,234 |
167,501 |
24,362 |
Guarantee and quality assurance fund receivable |
1,152,769 |
2,064,366 |
300,250 |
Intangible assets |
63,760 |
68,880 |
10,018 |
Property, equipment and software, net |
108,248 |
144,002 |
20,944 |
Loans and receivables, net of provision for loan losses |
681,794 |
2,331,108 |
339,046 |
Accounts receivable |
17,773 |
812,042 |
118,107 |
Deferred tax assets |
128,361 |
122,763 |
17,855 |
Financial guarantee derivative assets |
- |
56,287 |
8,187 |
Due from related party |
- |
2,830 |
412 |
Contract assets |
- |
112,103 |
16,305 |
Prepaid expenses and other assets |
145,699 |
221,793 |
32,259 |
Goodwill |
50,411 |
50,411 |
7,332 |
Total assets |
8,603,663 |
13,142,467 |
1,911,494 |
Liabilities and Shareholders' Equity |
|||
Payable to platform customers |
1,113,966 |
905,034 |
131,632 |
Guarantee and quality assurance fund payable |
2,062,844 |
3,819,379 |
555,506 |
Deferred revenue |
265,094 |
- |
- |
Payroll and welfare payable |
156,831 |
188,254 |
27,380 |
Taxes payable |
257,143 |
225,101 |
32,740 |
Provision for payment to investor reserve fund investor |
107,660 |
- |
- |
Short-term borrowings |
- |
25,000 |
3,636 |
Funds payable to investors of consolidated trusts |
502,641 |
1,505,909 |
219,025 |
Contract liabilities |
- |
165,469 |
24,066 |
Due to related party |
11,972 |
- |
- |
Deferred tax liabilities |
15,940 |
100,064 |
14,554 |
Accrued expenses and other liabilities |
211,614 |
222,519 |
32,364 |
Financial guarantee derivative liabilities |
215,770 |
- |
- |
Total liabilities |
4,921,475 |
7,156,729 |
1,040,903 |
Commitments and contingencies |
|||
PPDai Group Inc. Shareholder's deficit |
|||
Class A ordinary shares |
56 |
58 |
8 |
Class B ordinary shares |
44 |
44 |
7 |
Additional paid-in capital |
5,951,044 |
5,896,017 |
857,540 |
Treasury stock |
- |
(332,121) |
(48,305) |
Statutory reserves |
55,090 |
256,006 |
37,235 |
Accumulated other comprehensive income |
14,917 |
58,210 |
8,466 |
Accumulated deficit(retained earnings) |
(2,398,984) |
45,668 |
6,643 |
Total PPDai Group Inc. shareholders' equity |
3,622,167 |
5,923,882 |
861,594 |
Non-controlling interest |
60,021 |
61,856 |
8,997 |
Total shareholders' equity |
3,682,188 |
5,985,738 |
870,591 |
Total liabilities and shareholders' equity |
8,603,663 |
13,142,467 |
1,911,494 |
PPDAI GROUP INC. |
||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) |
||||||
(All amounts in thousands, except share data, or otherwise noted) |
||||||
For the Three Months Ended December 31, |
For the Year Ended December 31, |
|||||
2017 |
2018 |
2017 |
2018 |
|||
RMB |
RMB |
USD |
RMB |
RMB |
USD |
|
Operating revenue: |
||||||
Loan facilitation service fees |
620,237 |
837,427 |
121,799 |
2,843,287 |
2,919,234 |
424,585 |
Post-facilitation service fees |
227,150 |
249,887 |
36,345 |
668,819 |
922,797 |
134,215 |
Other Revenue |
172,393 |
107,802 |
15,679 |
491,400 |
376,915 |
54,820 |
Changes in expected discretionary payment to IRF |
(107,660) |
24,047 |
3,497 |
(107,660) |
68,619 |
9,980 |
Total operating revenues |
912,120 |
1,219,163 |
177,320 |
3,895,846 |
4,287,565 |
623,600 |
Net interest income (expense) and loan |
(13,243) |
(9,410) |
(1,369) |
(15,209) |
63,359 |
9,215 |
Net revenues |
898,877 |
1,209,753 |
175,951 |
3,880,637 |
4,350,924 |
632,815 |
Operating expenses: |
||||||
Origination and servicing expenses-related |
(28,834) |
(30,913) |
(4,496) |
(84,362) |
(109,666) |
(15,950) |
Origination and servicing expenses |
(267,443) |
(246,682) |
(35,878) |
(890,160) |
(875,905) |
(127,395) |
Sales and marketing expenses |
(238,600) |
(180,901) |
(26,311) |
(788,291) |
(710,754) |
(103,375) |
General and administrative expenses |
(250,369) |
(211,667) |
(30,786) |
(588,664) |
(701,353) |
(102,008) |
Provision for doubtful accounts |
- |
(53,021) |
(7,712) |
- |
(106,652) |
(15,512) |
Total operating expenses |
(785,246) |
(723,184) |
(105,183) |
(2,351,477) |
(2,504,330) |
(364,240) |
Other income (expenses) |
||||||
Gain from guarantee and quality assurance fund |
(271,850) |
23,469 |
3,413 |
5,885 |
510,894 |
74,307 |
Realized gain (loss) from financial guarantee |
27,105 |
17,971 |
2,614 |
169,103 |
(157,244) |
(22,870) |
Fair value change of financial guarantee |
(460,428) |
10,780 |
1,568 |
(383,061) |
272,057 |
39,569 |
Gain from disposal of subsidiary |
- |
- |
- |
- |
- |
- |
Other income (expense), net |
10,337 |
42,185 |
6,136 |
36,531 |
148,356 |
21,578 |
Profit (loss) before income tax credit (expense) |
(581,205) |
580,974 |
84,499 |
1,357,618 |
2,620,657 |
381,159 |
Income tax credit (expenses) |
74,139 |
193,617 |
28,160 |
(274,711) |
(151,206) |
(21,992) |
Net profit (loss) |
(507,066) |
774,591 |
112,659 |
1,082,907 |
2,469,451 |
359,167 |
Less: net profit (loss) attributable to non-controlling |
(76) |
417 |
61 |
(76) |
377 |
55 |
Net profit (loss) attributable to PPDai Group Inc. |
(506,990) |
774,174 |
112,598 |
1,082,983 |
2,469,074 |
359,112 |
Accretion on convertible redeemable |
(796,874) |
- |
- |
(3,073,471) |
- |
- |
Net profit (loss) attributable to ordinary |
(1,303,864) |
774,174 |
112,598 |
(1,990,488) |
2,469,074 |
359,112 |
Net profit (loss) attributable to PPDai Group |
(506,990) |
774,174 |
112,598 |
1,082,983 |
2,469,074 |
359,112 |
Foreign currency translation adjustment, net of nil tax |
(10,097) |
(3,787) |
(551) |
99,934 |
43,293 |
6,297 |
Total comprehensive income (loss) attributable to PPDAI |
(517,087) |
770,387 |
112,047 |
1,182,917 |
2,512,367 |
365,409 |
PPDAI GROUP INC. |
||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) |
||||||
(All amounts in thousands, except share data, or otherwise noted) (continued) |
||||||
For the Three Months Ended December 31, |
For the Year Ended December 31, |
|||||
2017 |
2018 |
2017 |
2018 |
|||
RMB |
RMB |
USD |
RMB |
RMB |
USD |
|
Weighted average number of ordinary shares |
||||||
Basic |
1,120,473,462 |
1,486,851,379 |
1,486,851,379 |
779,804,270 |
1,498,780,165 |
1,498,780,165 |
Diluted |
1,120,473,462 |
1,563,655,040 |
1,563,655,040 |
779,804,270 |
1,599,592,231 |
1,599,592,231 |
Income (loss) per share -Basic |
(1.1637) |
0.5207 |
0.0757 |
(2.5525) |
1.6474 |
0.2396 |
Income (loss) per ADS-Basic |
(5.8184) |
2.6034 |
0.3786 |
(12.7627) |
8.2369 |
1.1980 |
Income (loss) per share -Diluted |
(1.1637) |
0.4951 |
0.0720 |
(2.5525) |
1.5436 |
0.2245 |
Income (loss) per ADS-Diluted |
(5.8184) |
2.4755 |
0.3600 |
(12.7627) |
7.7178 |
1.1225 |
PPDAI GROUP INC. |
||||||
UNAUDITED Reconciliation of GAAP And Non-GAAP Results |
||||||
(All amounts in thousands, except share data, or otherwise noted) |
||||||
For the Three Months Ended December 31, |
For the Year Ended December 31, |
|||||
2017 |
2018 |
2017 |
2018 |
|||
RMB |
RMB |
USD |
RMB |
RMB |
USD |
|
Net Revenues |
898,877 |
1,209,753 |
175,951 |
3,880,637 |
4,350,924 |
632,815 |
Less: total operating expenses |
(785,246) |
(723,184) |
(105,183) |
(2,351,477) |
(2,504,330) |
(364,240) |
Operating Income |
113,631 |
486,569 |
70,768 |
1,529,160 |
1,846,594 |
268,575 |
Less: Change in expected discretionary |
107,660 |
(24,047) |
(3,497) |
107,660 |
(68,619) |
(9,980) |
Add: share-based compensation |
106,152 |
9,555 |
1,390 |
106,152 |
50,319 |
7,319 |
Non-GAAP adjusted operating income |
327,443 |
472,077 |
68,661 |
1,742,972 |
1,828,294 |
265,914 |
PPDAI GROUP INC. |
|||||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||
(All amounts in thousands, except share data, or otherwise noted) |
|||||||||||
For the Three Months Ended December 31, |
For the Year Ended December 31, |
||||||||||
2017 |
2018 |
2017 |
2018 |
||||||||
RMB |
RMB |
USD |
RMB |
RMB |
USD |
||||||
Net cash provided by (used in) operating |
(28,173) |
518,273 |
75,380 |
3,409,451 |
1,884,956 |
274,153 |
|||||
Net cash used in investing activities |
(876,176) |
(819,178) |
(119,145) |
(2,450,800) |
(1,447,013) |
(210,460) |
|||||
Net cash provided by financing |
1,701,581 |
440,841 |
64,117 |
2,132,933 |
530,097 |
77,100 |
|||||
Effect of exchange rate changes |
(14,888) |
(2,876) |
(418) |
(15,445) |
41,977 |
6,107 |
|||||
Net increase in cash, cash |
782,344 |
137,060 |
19,934 |
3,076,139 |
1,010,017 |
146,900 |
|||||
Cash, cash equivalent and restricted |
3,501,360 |
5,156,661 |
750,005 |
1,207,565 |
4,283,704 |
623,039 |
|||||
Cash, cash equivalent and restricted |
4,283,704 |
5,293,721 |
769,939 |
4,283,704 |
5,293,721 |
769,939 |
|||||
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