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 May 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: May 12, 2016

 

 

 

Exhibit Index

 

Exhibit 99.1—Press Release

 

 

 

 

 

 

Yirendai Ltd. (NYSE: YRD)

 

 

Exhibit 99.1

 

Yirendai Reports First Quarter 2016 Financial Results

 

BEIJING, May 11, 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 ended March 31, 2016.

 

For the first quarter of 2016, Yirendai facilitated US$534.5 million of loans to qualified individual borrowers on its online marketplace, representing a 110% year-over-year growth, recognized total net revenue of US$85.1 million, up 187% from the same period in 2015 and recognized net income of US$20.1 million, representing an increase of 355% from the first quarter of 2015.

 

   For Three Months Ended 
in US$ million  March 31,
2016
   December 31,
2015
   Change   March 31,
2015
   Change 
Amount of Loans Facilitated   534.5    509.7    5%   255.0    110%
Total Fees Billed (non-GAAP)   129.6    121.9    6%   50.0    159%
Total Net Revenue   85.1    71.1    20%   29.7    187%
EBITDA (non-GAAP)   31.6    19.8    59%   6.0    426%
Net Income   20.1    13.0    54%   4.4    355%

 

“We continued to experience strong business demand in the first quarter of 2016, as we grew our loan origination sequentially during what is usually a seasonally slow quarter. Our loan portfolio credit performance remains solid,” said Mr. Ning Tang, Executive Chairman of Yirendai and CEO and founder of CreditEase. “We expect to further extend our market leadership in China’s consumer finance market through technology innovation and data driven credit underwriting and risk management capabilities, which was reinforced by the success completion of the issuance of RMB 250 million asset-backed securities with the underlying assets being loans from our online consumer finance marketplace.”

 

“Our solid first quarter financial results demonstrated strong customer demand of our products and services, as well as recognition of our brand,” said Ms. Yihan Fang, CEO of Yirendai. “We will continue to focus on new product development and invest in our technology capability in customer acquisition, risk management, process automation and big data analytics to further strengthen our credit underwriting and risk management capabilities to enable our long term sustainable growth.”

 

First Quarter 2016 Financial Results

 

Total amount of loans facilitated in the first quarter of 2016 was US$534.5 million, increased by 110% year-over-year from US$255.0 million in the same period of 2015. As of March 31, 2016, the Yirendai platform had facilitated approximately US$2.4 billion in loan principal since its inception.

 

Total fees billed (non-GAAP) in the first quarter of 2016 were US$129.6 million, increased by 159% from US$50.0 million in the same period of 2015.

 

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Yirendai Ltd. (NYSE: YRD)

 

Total net revenue in the first quarter of 2016 was US$85.1 million, increased by 187% from US$29.7 million in the same period of 2015. The increase of total net revenue was mainly attributable to the growth of loan origination volume and change of product mix on the platform.

 

Operating costs and expenses in the first quarter of 2016 were US$53.8 million, compared to US$23.8 million in the same period of 2015. The increase in operating costs and expenses was in line with our loan volume growth.

 

EBITDA (non-GAAP) in the first quarter of 2016 was US$31.6 million, increased by 426% from US$6.0 million in the same period of 2015. The significant increase of EBITDA was primarily due to substantial increase in revenue as well as seasonally lower customer acquisition cost due to strong business demand.

 

Net income in the first quarter of 2016 was US$20.1 million, increased by 54% from US$13.0 million in the previous quarter and 355% from US$4.4 million in the same period of 2015.

 

Basic and diluted income per share in the first quarter of 2016 was US$0.17, increased by 35% from US$0.13 in the previous quarter and 289% from US$0.04 in the same period of 2015.

 

Basic and diluted income per ADS in the first quarter of 2016 was US$0.34, increased by 35% from US$0.25 in the previous quarter and 289% from US$0.09 in the same period of 2015.

 

As of March 31, 2016, cash & cash equivalents excluding risk reserve fund balance was US$172.2 million, increased by 32% from US$130.6 million as of December 31, 2015.

 

Net cash generated from operating activities in the first quarter of 2016 was US$49.2 million, increased by 88% from US$26.2 million in the previous quarter.

 

Risk Reserve Fund. In the first quarter of 2016, 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$15.7 million out of the risk reserve fund to pay out the outstanding principal and accrued interest of default loans. As of March 31, 2016, restricted cash balance associated with the risk reserve fund was US$92.0 million.

 

Delinquency rates. As of March 31, 2016, the overall delinquency rate for loans that are 15-89 days past due was 1.8%, compared to 1.3% as of December 31, 2015.

 

Charge off rates. As of March 31, 2016, the charge-off rates for Grade A, B, C, and D loans originated in 2015 were 3.4%, 2.9%, 3.2% and 2.5%, respectively, compared to 2.4%, 1.3%, 1.7% and 1.4% as of December 31, 2015.

 

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Yirendai Ltd. (NYSE: YRD)

 

Other Operating Metrics and Business Results

ŸAs of March 31, 2016, Yirendai had facilitated US$2.4 billion of loans on the Yirendai online marketplace since its inception in 2012.
ŸAs of March 31, 2016, remaining principal of performing loans* totaled US$1,709.6 million, increased by 23% from US$1,384.4 million as of December 31, 2015 and 212% from US$547.8 million as of March 31, 2015.
ŸIn the first quarter of 2016, the Yirendai platform facilitated loans for 50,542 borrowers, 55% of whom were acquired from online channels; 32.8% of the loans were facilitated through its mobile application.
ŸIn the first quarter of 2016, the Yirendai platform facilitated loans for 203,131 investors, 100% of whom were acquired from online channels, with annual returns ranging from 5.6% to 11.25%.
ŸIn the first quarter of 2016, loans made to Grade A, B, C, and D borrowers represented 6%, 3%, 7% and 84% of the Company’s product portfolio, respectively.

 

*Performing loans refer to loans on which payments of interest and principal are less than 90 days past due.

 

Recent Business Development

ŸOn April 25, 2016, Yirendai announced the completion of issuance of RMB 250 million asset-backed securities, the underlying assets of which are loans extended by a trust through the Company’s online consumer finance marketplace with a total principal of the same amount.

 

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:

 

Second Quarter 2016

ŸTotal loans facilitated will be in the range of US$640 million to US$650 million
ŸTotal net revenue will be in the range of US$95 million to US$100 million
ŸEBITDA (non-GAAP) in the range of US$20 million to US$25 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

 

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Yirendai Ltd. (NYSE: YRD)

  

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 RMB6.4480 to US$1.00, the noon buying rate set forth in the H.10 statistical release of the Federal Reserve Board on March 31, 2016. 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 first quarter 2016 financial results at 8:00 AM U.S. Eastern Time on May 12, 2016, which corresponds to 8:00 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 May 19, 2016 by dialing:

International: 1-412-317-0088
U.S. Toll Free: 1-877-344-7529
Replay Access Code: 10085197

 

A live and archived webcast of the conference call will be available on Yirendai’s website at yirendai.investorroom.com.

 

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Yirendai Ltd. (NYSE: YRD)

 

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

Hui (Matthew) Li

Director of Investor Relations

Email: matthewli@yirendai.com

 

Christensen IR

In China

Christian Arnell

Phone: +86 (0) 10-59001548

Email: carnell@christensenir.com

 

In U.S.

Linda Bergkamp

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

 

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Yirendai Ltd. (NYSE: YRD)

  

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 
   March 31, 2015   June 30, 2015   September 31, 2015   December 31, 2015   March 31, 2016 
Net revenue:                         
        Loan facilitation services   29,103    48,126    57,603    68,669    81,814 
        Post-origination services   477    943    901    1,990    2,813 
        Others   112    246    464    454    443 
Total net revenue   29,692    49,315    58,968    71,113    85,070 
Operating costs and expenses:                         
        Sales and marketing   16,518    24,372    29,001    38,306    38,964 
        Origination and servicing   2,044    3,037    4,364    6,104    5,620 
        General and administrative   5,214    4,062    5,457    7,088    9,202 
Total operating costs and expenses   23,776    31,471    38,822    51,498    53,786 
Interest income   11    29    230    493    770 
Income before provision for income taxes   5,927    17,873    20,376    20,108    32,054 
Income tax expense   1,507    4,989    6,899    7,061    11,926 
Net income   4,420    12,884    13,477    13,047    20,128 
                          
Weighted average number of ordinary shares used in computing basic and diluted net income per share   100,000,000    100,000,000    100,000,000    102,586,957    100,000,000 
Basic and diluted income per share   0.0442    0.1288    0.1348    0.1272    0.1720 
Basic and diluted income per ADS   0.0884    0.2576    0.2696    0.2544    0.3440 
                          
Unaudited Condensed Consolidated Balance Sheet                         
Cash and cash equivalents   1,757    17,764    19,861    130,641    172,160 
Restricted cash   15,587    33,682    49,355    74,724    100,841 
Loans at fair value   -    -    -    34,164    30,920 
Other assets   94,565    110,241    96,171    98,607    104,802 
Total assets   111,909    161,687    165,387    338,136    408,723 
Liabilities from risk reserve fund guarantee   18,202    39,658    59,196    84,354    111,806 
Payable to fund at fair value   -    -    -    39,049    39,916 
Other liabilities   53,223    68,652    40,788    63,906    85,352 
Total liabilities   71,425    108,310    99,984    187,309    237,074 
Total equity   40,484    53,377    65,403    150,827    171,649 
                          
Unaudited Condensed Consolidated Cash Flow Data:                         
Net cash generated from operating activities   1,828    16,474    15,709    26,166    49,225 
Net cash used in investing activities   (302)   (513)   (13,218)   (30,946)   (6,092)
Net cash provided by/(used in) financing activities   -    -    10    117,011    (2,509)
Effect of foreign exchange rate changes   9    46    (404)   (1,451)   895 
Net increase in cash and cash equivalents   1,535    16,007    2,097    110,780    41,519 
Cash and cash equivalents, beginning of period   222    1,757    17,764    19,861    130,641 
Cash and cash equivalents, end of period   1,757    17,764    19,861    130,641    172,160 

 

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Yirendai Ltd. (NYSE: YRD)

 

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 Three Months Ended 
   March 31, 2015   June 30, 2015   September 30, 2015   December 31, 2015   March 31, 2016 
Operating Highlights:                         
Amount of loans facilitated   255,015    327,896    401,428    509,671    534,509 
        Loans generated from online channels   96,264    90,969    130,075    175,305    182,286 
        Loans generated from offline channels   158,751    236,927    271,353    334,366    352,223 
Fees billed   50,005    77,461    93,499    121,897    129,569 
Remaining principal of performing loans   547,814    799,548    1,057,442    1,384,398    1,709,570 
Number of borrowers   27,581    34,568    36,493    48,072    50,542 
        Borrowers from online channels   15,072    15,319    18,299    25,506    27,902 
        Borrowers from offline channels   12,509    19,249    18,194    22,566    22,640 
Number of investors   25,124    44,000    144,107    177,501    203,131 
        Investors from online channels   21,015    38,399    143,607    177,501    203,131 
        Investors from offline channels   4,109    5,601    500    -    - 
EBITDA   6,000    17,957    20,296    19,847    31,579 
EBITDA margin   20%   36%   34%   28%   37%
                          
Reconciliation of Net Revenues                         
Fees billed:                         
        Transaction fees billed to borrowers   51,233    79,210    94,285    122,194    127,961 
        Service fees billed to investors   1,281    2,791    4,232    7,265    9,870 
        Others   117    261    492    481    469 
        VAT   (2,626)   (4,801)   (5,510)   (8,043)   (8,731)
Total fees billed   50,005    77,461    93,499    121,897    129,569 
Stand-ready liabilities associated with risk reserve fund   (18,193)   (23,506)   (28,395)   (38,498)   (42,158)
        Deferred revenue   (1,953)   (2,218)   (2,937)   (11,592)   (3,114)
        Cash incentives   (1,149)   (3,878)   (4,415)   (3,443)   (1,790)
        VAT   982    1,456    1,216    2,749    2,563 
Net revenues   29,692    49,315    58,968    71,113    85,070 
                          
Reconciliation of EBITDA                         
Net income   4,420    12,884    13,477    13,047    20,128 
Interest income   (11)   (29)   (230)   (493)   (770)
Income tax expense   1,507    4,989    6,899    7,061    11,926 
Depreciation and amortization   84    113    150    232    295 
EBITDA   6,000    17,957    20,296    19,847    31,579 

 

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Yirendai Ltd. (NYSE: YRD)

 

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%
March 31, 2016   0.5%   0.8%   0.5%
                
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%
March 31, 2016   0.6%   1.2%   0.8%
                
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%
March 31, 2016   0.5%   0.7%   0.4%

 

Net Charge-Off Rate
Loan issued period  Pricing grade  Amount of loans facilitated during the period   Accumulated M3+ Net Charge-Off as of March 31, 2016   Total Net Charge-Off Rate as of March 31, 2016 
      (in RMB thousands)   (in RMB thousands)     
2013  A   258,322    23,133    9.0%
   B   -    -    - 
   C   -    -    - 
   D   -    -    - 
   Total   258,322    23,133    9.0%
2014  A   1,917,542    96,678    5.0%
   B   303,030    16,127    5.3%
   C   -    -    - 
   D   7,989    517    6.5%
   Total   2,228,561    113,322    5.1%
2015  A   873,995    29,605    3.4%
   B   419,630    11,988    2.9%
   C   557,414    17,888    3.2%
   D   7,706,575    191,406    2.5%
   Total   9,557,613    250,888    2.6%

 

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