Yirendai Reports First Quarter 2016 Financial Results

BEIJING, May 12, 2016 /PRNewswire/ -- 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.

"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.

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.

Other Operating Metrics and Business Results

• As of March 31, 2016, Yirendai had facilitated US$2.4 billion of loans on the Yirendai online marketplace since its inception in 2012.
• As 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.
• In 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.
• In 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%.
• In 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

• On 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

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

Full Year 2016

• Total loans facilitated will be in the range of US$2,800 million to US$2,900 million
• Total net revenue will be in the range of US$400 million to US$410 million
• 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 RMB6.4480 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:

A replay of the conference call will be available until May 19, 2016 by dialing:

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
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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