UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of March 2016

--------------

 

Commission File Number: 001-37657

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YIRENDAI LTD.

 

4/F, Building 2A, No. 6 Lang Jia Yuan

Chaoyang District, Beijing 100022

The People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x                    Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):________________

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):________________

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	YIRENDAI LTD.
	By	/s/ Yu Cong
	Name:	Yu Cong
	Title:	Chief Financial Officer

 

Date: March 10, 2016

 

 

Exhibit Index

 

Exhibit 99.1 — Press Release

 

 

 

Exhibit 99.1

 

Yirendai Reports Fourth Quarter and Full Year 2015 Financial Results

 

BEIJING, March 9, 2016 – Yirendai Ltd. (NYSE: YRD) (“Yirendai” or the “Company”), a leading online consumer finance marketplace in China, today announced its unaudited financial results for the quarter and full year ended December 31, 2015.

 

For the fourth quarter of 2015, Yirendai facilitated US$509.7 million of loans to qualified individual borrowers on its online marketplace, and recognized total net revenue of US$71.1 million and net income of US$13.0 million. For the full year of 2015, Yirendai facilitated US$1.5 billion of loans to qualified individual borrowers on its online marketplace, recognized total net revenue of US$209.1 million and net income of US$43.8 million.

 

		Quarter Ended December 31												Fiscal Year Ended December 31
in US$ million		2015				2014				Change				2015				2014				Change
Amount of Loans Facilitated			509.7				176.4				189	%			1,494.0				350.6				326	%
Total Fees Billed (non-GAAP)			121.9				18.8				549	%			342.9				31.9				975	%
Total Net Revenue			71.1				18.8				279	%			209.1				31.9				556	%
EBITDA (non-GAAP)			19.8				6.5				206	%			64.1				(4.3	)			N/A
Net Income/(Loss)			13.0				6.4				103	%			43.8				(4.5	)			N/A

 

“We are pleased to report our first quarter financial results as a public company with loan origination volumes increasing by over 300% from the past financial year,” commented Mr. Ning Tang, Executive Chairman of Yirendai. “We maintained our risk management discipline and continued to invest in our online marketplace during the quarter. I am excited about the tremendous business opportunities that China’s consumer finance market will offer over the next five to ten years. We are committed to delivering more value and a greater user experience to our customers. 2016 is going to be another strong year, and we believe that we are well positioned to enhance our business growth, capture market opportunities and further strengthen our industry-leading position.”

 

“We are entering 2016 with strong growth momentum as we execute our strategy of sustainable and disciplined growth,” said Ms. Yihan Fang, CEO of Yirendai. “We are aggressively investing in risk management, product development, mobile technology, process automation and big data analytics to further strengthen our credit underwriting and risk management capabilities that enable our long-term sustainable growth.”

 

Fourth Quarter Financial Results

 

Total amount of loans facilitated in the fourth quarter of 2015 was US$509.7 million, increased by 189% from US$176.4 million in the same period of 2014.

 

Total fees billed in the fourth quarter of 2015 were US$121.9 million, increased by 549% from US$18.8 million in the same period of 2014. The significant increase was primarily due to the substantial increase in the volume of loans facilitated through the Company’s marketplace and the expansion of its product portfolio.

 

 

Total net revenue in the fourth quarter of 2015 was US$71.1 million, increased by 279% from US$18.8 million in the same period of 2014. The significant increase was primarily due to the substantial increase in the volume of loans facilitated through the Company’s marketplace and the expansion of its product portfolio.

 

Operating costs and expenses in the fourth quarter of 2015 were US$51.5 million, compared to US$12.3 million in the same period of 2014, primarily attributable to the increase in sales and marketing expenses for customer acquisition.

 

EBITDA (non-GAAP) in the fourth quarter of 2015 was US$19.8 million, increased by 206% from US$6.5 million in the same period of 2014.

 

Net income in the fourth quarter of 2015 was US$13.0 million, increased by 103% from US$6.4 million in the same period of 2014.

 

Basic and diluted income per share in the fourth quarter of 2015 was US$0.13, increased by 98% from US$0.06 in the same period of 2014.

 

Basic and diluted income per ADS in the fourth quarter of 2015 was US$0.25, increased by 98% from US$0.13 in the same period of 2014.

 

As of December 31, 2015, cash & cash equivalents excluding risk reserve fund balance was US$130.6 million, significantly increased from US$0.22 million as of the end of 2014.

 

Net cash generated from operating activities in the fourth quarter of 2015 was US$31.5 million, compared to net cash used in operating activities of US$11.2 million in the same period of 2014.

 

Risk Reserve Fund. In the fourth quarter of 2015, Yirendai set aside in the risk reserve fund an amount equal to 7% of the loans facilitated through its marketplace during the period, and made payments in a total amount of US$11.3 million out of the risk reserve fund to pay out the outstanding principal and accrued interest of default loans. As of December 31, 2015, restricted cash balance associated with the risk reserve fund was US$70.0 million.

 

Delinquency rates. As of December 31, 2015, the overall delinquency rate for loans that are 15 – 89 days past due was 1.3%, decreased from 1.4% as of September 30, 2015.

 

Charge off rates. As of December 31, 2015, the charge-off rates for Grade A, B, C, and D loans originated in 2015 were 2.4%, 1.3%, 1.7% and 1.4%, respectively; and increased from 1.7%, 0.4%, 0.8% and 0.9% as of September 30, 2015.

 

 

Other Operating Metrics and Business Results

Ÿ

As of December 31, 2015, Yirendai had facilitated US$1.89 billion of loans on the Yirendai online marketplace since its inception in 2012.

Ÿ

As of December 31, 2015, total principal of outstanding loans was US$1,421.6 million, increased from US$335.5 million as of the end of 2014.

Ÿ

In the fourth quarter of 2015, the Yirendai platform facilitated loans for 177,501 investors, 100% of whom were acquired from online channels, with annual returns ranging from 6.6% to 11.25%.

Ÿ

In the fourth quarter of 2015, the Yirendai platform facilitated loans for 48,072 borrowers, 53% of whom were acquired from online channels; 32.5% of the loans were facilitated through its mobile application.

Ÿ

In the fourth quarter of 2015, loans made to Grade A, B, C, and D borrowers represented 5%, 3%, 7% and 85% of the Company’s product portfolio, respectively.

 

Recent Business Development

Ÿ

As part of its strategy to diversify and expand investor base from individual to institutional investors, Yirendai has leveraged its online marketplace to facilitate loan products with asset-backed securities structure for a trust in a total principal amount of RMB250 million.

Ÿ

In January 2016, Yirendai appointed Ms. Chaomei Chen, former Chief Risk Officer of LendingClub, as a member of its Advisory Committee. Ms. Chen provides strategic advice and insight to Yirendai’s senior management team on a broad range of issues including risk management, credit analysis, technology and business operations.

Ÿ

In February 2016, Yirendai entered into a framework agreement with Zheshang Bank to cooperate on microloan and consumer financing services.

 

Business Outlook

Based on the information available as of the date of this press release, Yirendai provides the following outlook, which reflects the Company’s current and preliminary view and is subject to change:

 

First Quarter 2016

Ÿ

Total loans facilitated will be in the range of US$450 million to US$460 million

Ÿ

Total net revenue will be in the range of US$60 million to US$65 million

Ÿ

EBITDA (non-GAAP) in the range of US$15 million to US$16 million

 

Full Year 2016

Ÿ

Total loans facilitated will be in the range of US$2,800 million to US$2,900 million

Ÿ

Total net revenue will be in the range of US$400 million to US$410 million

Ÿ

EBITDA (non-GAAP) will be in the range of US$100 million to US$105 million

 

Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses two non-GAAP financial measures, fees billed and EBITDA, as supplemental measures to review and assess operating performance. 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

Monetary assets and liabilities denominated in Renminbi are translated into U.S. dollars at the rates of exchange as of the balance sheet date, equity accounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the period. With respect to amounts not recorded in the Company’s consolidated financial statements elsewhere in this press release, all translations from Renminbi to U.S. dollars were made at RMB6.4778 to US$1.00, the noon buying rate set forth in the H.10 statistical release of the Federal Reserve Board on December 31, 2015. No representation is intended to imply that these translated Renminbi amounts could have been, or could be, converted, realized or settled into U.S. dollar amounts at such rate, or at any other rate.

 

Conference Call

Yirendai will host a conference call to discuss about its fourth quarter and full year 2015 financial results at 8:00 AM Eastern Standard Time (EST) on March 10, 2016, which corresponds to 9:00 PM Beijing/Hong Kong time on the same day.

 

The dial-in details for the live conference call are as follows:

International:	1-412-902-4272
U.S. Toll Free:	1-888-346-8982
Hong Kong Toll Free:	800-905945
China Toll Free:	4001-201203
Conference ID:	Yirendai

 

A replay of the conference call will be available until March 17, 2016 by dialing:

International:	1-412-317-0088
U.S. Toll Free:	1-877-344-7529
Replay Access Code:	10082039

 

A live and archived webcast of the conference call will be available on Yirendai’s website at yirendai.investorroom.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. (NYSE: YRD) is a leading online consumer finance marketplace 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 an online platform that automates key aspects of its operations 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 online 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 yirendai.investorroom.com.

 

For investor and media inquiries, please contact:

Yirendai

Matthew Li

Director of Investor Relations

Email: ir@yirendai.com

 

Christensen

In China

Mr. Christian Arnell

Phone: +86 (0) 10-59001548

E-mail: carnell@christensenir.com

 

 

In U.S.

Ms. Linda Bergkamp

Phone: +1 (480) 614-3004
Email: lbergkamp@ChristensenIR.com

 

 

Unaudited Condensed Consolidated Statement of Operations

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

 

		For the Three Months Ended								For the Full Year Ended
		December 31, 2014				December 31, 2015				December 31, 2014				December 31, 2015
Net revenue:
Loan facilitation services			18,411				68,669				31,317				203,501
Post-origination services			288				1,990				405				4,311
Others			72				454				171				1,276
Total net revenue			18,771				71,113				31,893				209,088
Operating costs and expenses:
Sales and marketing			6,619				38,306				22,354				108,197
Origination and servicing			1,314				6,104				3,541				15,549
General and administrative			4,416				7,088				10,490				21,821
Total operating costs and expenses			12,349				51,498				36,385				145,567
Interest income			-				493				-				763
Income/(loss) before provision for income taxes			6,422				20,108				(4,492	)			64,284
Income tax expense			5				7,061				5				20,456
Net income/(loss)			6,417				13,047				(4,497	)			43,828
Net income margin			34.2	%			18.3	%			-14.1	%			21.0	%
Weighted average number of ordinary shares used in computing basic and diluted net income/(loss) per share			100,000,000				102,586,957				100,000,000				100,652,055
Basic and diluted income/(loss) per share			0.0642				0.1272				(0.0450	)			0.4354
Basic and diluted income/(loss) per ADS			0.1284				0.2544				(0.0900	)			0.8708
Unaudited Condensed Consolidated Balance Sheet
Cash and cash equivalents			222				130,641				222				130,641
Restricted cash			-				74,724				-				74,724
Loans at fair value			-				34,164				-				34,164
Other assets			64,603				98,607				64,603				98,607
Total assets			64,825				338,136				64,825				338,136
Liabilities from risk reserve fund guarantee			-				84,354				-				84,354
Payable to fund at fair value			-				39,049				-				39,049
Other liabilities			28,813				63,906				28,813				63,906
Total liabilities			28,813				187,309				28,813				187,309
Total equity			36,012				150,827				36,012				150,827
Summary Consolidated Cash Flow Data:
Net cash (used in)/generated from operating activities			(11,178	)			29,535				(36,846	)			63,546
Net cash used in investing activities			(101	)			(30,946	)			(580	)			(44,979	)
Net cash provided by financing activities			11,474				113,642				37,650				113,652
Effect of foreign exchange rate changes			27				(1,451	)			(2	)			(1,800	)
Net increase in cash and cash equivalents			222				110,780				222				130,419
Cash and cash equivalents, beginning of period			-				19,861				-				222
Cash and cash equivalents, end of period			222				130,641				222				130,641

 

 

Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures

(in US$ thousands, except for number of  borrowers, number of investors and percentages)

 

		For the Full Year Ended								For the Three Months Ended
		December 31, 2014				December 31, 2015				December 31, 2014				March 31, 2015				June 30, 2015				September 30, 2015				December 31, 2015
Operating Highlights:
Amount of loans facilitated			350,645				1,494,010				176,422				255,015				327,896				401,428				509,671
Loans generated from online channels			140,978				492,613				79,071				96,264				90,969				130,075				175,305
Loans generated from offline channels			209,667				1,001,397				97,351				158,751				236,927				271,353				334,366
Fees billed			31,893				342,862				18,771				50,005				77,461				93,499				121,897
Outstanding loan principal			335,523				1,421,590				335,522				541,032				812,723				1,081,205				1,421,590
Number of borrowers			39,344				146,390				20,998				27,581				34,568				36,493				48,072
Borrowers from online channels			20,422				74,000				11,656				15,072				15,319				18,299				25,506
Borrowers from offline channels			18,922				72,390				9,342				12,509				19,249				18,194				22,566
Number of investors			34,527				326,055				22,833				25,124				44,000				144,107				177,501
Investors from online channels			25,093				317,051				17,232				21,015				38,399				143,607				177,501
Investors from offline channels			9,434				9,004				5,601				4,109				5,601				500				-
EBITDA			(4,307	)			64,100				6,486				6,000				17,957				20,296				19,847
EBITDA margin			-14	%			31	%			35	%			20	%			36	%			34	%			28	%
Reconciliation of Net Revenues
Fees billed:
Transaction fees billed to borrowers			33,196				346,922				19,516				51,233				79,210				94,285				122,194
Service fees billed to investors			429				15,569				305				1,281				2,791				4,232				7,265
Others			181				1,351				76				117				261				492				481
VAT			(1,913	)			(20,980	)			(1,126	)			(2,626	)			(4,801	)			(5,510	)			(8,043	)
Total fees billed			31,893				342,862				18,771				50,005				77,461				93,499				121,897
Stand-ready liabilities associated with risk reserve fund			-				(108,592	)			-				(18,193	)			(23,506	)			(28,395	)			(38,498	)
Deferred revenue			-				(18,700	)			-				(1,953	)			(2,218	)			(2,937	)			(11,592	)
Cash incentives			-				(12,885	)			-				(1,149	)			(3,878	)			(4,415	)			(3,443	)
VAT			-				6,403				-				982				1,456				1,216				2,749
Net revenues			31,893				209,088				18,771				29,692				49,315				58,968				71,113
Reconciliation of EBITDA
Net (loss)/income			(4,497	)			43,828				6,417				4,420				12,884				13,477				13,047
Interest income			-				(763	)			-				(11	)			(29	)			(230	)			(493	)
Income tax expense			5				20,456				5				1,507				4,989				6,899				7,061
Depreciation and amortization			185				579				64				84				113				150				232
EBITDA			(4,307	)			64,100				6,486				6,000				17,957				20,296				19,847

 

 

Delinquency Rates
		Delinquent for
		15-29 days				30-59 days				60-89 days
All Loans
December 31, 2013			0.2	%			0.4	%			0.3	%
December 31, 2014			0.3	%			0.2	%			0.2	%
December 31, 2015			0.4	%			0.5	%			0.4	%
Online Channels
December 31, 2013			0.1	%			0.9	%			0.3	%
December 31, 2014			0.4	%			0.3	%			0.2	%
December 31, 2015			0.6	%			0.8	%			0.6	%
Offline Channels
December 31, 2013			0.3	%			0.2	%			0.2	%
December 31, 2014			0.3	%			0.2	%			0.2	%
December 31, 2015			0.3	%			0.4	%			0.3	%

 

Net Charge-Off Rate
Loan issued period		Pricing grade		Amount of loans facilitated during the period				Accumulated M3+ Net Charge-Off as of December 31, 2015				Total Net Charge-Off Rate as of December 31, 2015
				(in RMB thousands)				(in RMB thousands)
2013		A			258,322				23,268				9.0	%
		B			-				-				-
		C			-				-				-
		D			-				-				-
		Total			258,322				23,268				9.0	%
2014		A			1,917,542				88,345				4.6	%
		B			303,030				13,287				4.4	%
		C			-				-				-
		D			7,989				465				5.8	%
		Total			2,228,561				102,097				4.6	%
2015		A			873,995				20,962				2.4	%
		B			419,630				5,274				1.3	%
		C			557,414				9,494				1.7	%
		D			7,706,575				106,986				1.4	%
		Total			9,557,613				142,716				1.5	%