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

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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.

 

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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.

 

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Other Operating Metrics and Business Results

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

ŸAs 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.
ŸIn 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.
ŸIn 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

ŸTotal loans facilitated will be in the range of US$450 million to US$460 million
ŸTotal net revenue will be in the range of US$60 million to US$65 million
ŸEBITDA (non-GAAP) in the range of US$15 million to US$16 million

 

Full Year 2016

ŸTotal loans facilitated will be in the range of US$2,800 million to US$2,900 million
ŸTotal net revenue will be in the range of US$400 million to US$410 million
ŸEBITDA (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.

 

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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.

 

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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

 

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In U.S.

Ms. Linda Bergkamp

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

 

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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 

 

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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 

 

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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%

 

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