Weidai Ltd. Announces First Quarter 2019 Financial Results
HANGZHOU, China, June 4, 2019 /PRNewswire/ -- Weidai Ltd. ("Weidai" or the "Company") (NYSE: 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 RMB
% of total
volume loan volume
(in millions, except for percentages)
Total loan volume 17,117 100.0 15,247 100.0
Including:
Loans funded by institutional funding 891 5.2 733 4.8
partners
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 1,005,236 504,402 75,158
online investors
Current account with online investors and 2,005,605 1,197,838 178,483
borrowers.
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 450,160 425,875 63,457
online investors
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 1 1
US$0.000002 per share; 35,071,400 and
35,071,400 shares issued and outstanding as of
December 31, 2018 and March 31, 2019,
respectively)
Additional paid-in capital 1,170,956 1,196,580 178,296
Accumulated other comprehensive loss (2,700) (8,253) (1,230)
Retained earnings 1,040,443 2,144,968 319,610
Total Weidai Ltd. shareholders' equity 2,208,700 3,333,296 496,676
Noncontrolling interests 8,526 8,739 1,302
Total shareholders' equity 2,217,226 3,342,035 497,978
TOTAL LIABILITIES AND 6,316,488 6,354,708 946,880
SHAREHOLDERS' EQUITY
Weidai Ltd.
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(All amounts in thousands, except share data, or otherwise noted)
Three Months Ended Three Months Ended
December 31, 2018 March 31, 2019
RMB
RMB
US$
(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 666,883 705,576 105,134
loans and advances
Operating costs and expenses:
Provision for financial guarantee (21,712) (53,872) (8,027)
liabilities
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 (1,304) (3,566) (531)
noncontrolling interests
Net income and comprehensive 108,674 105,392 15,705
income attributable to Weidai
Ltd.'s ordinary shareholders
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 Three Months Ended
December 31, 2018 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
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SOURCE Weidai Ltd.
