Daily Archives: March 20, 2018

NRT Acquires OfferCraft, Award-Winning Provider of Artificial Intelligence, Gamification and Digital Content Solutions

Acquisition of hyper-engagement platform enhances NRT’s ability to deliver transformative, revenue-generating technology to its customers

LAS VEGAS, March 20, 2018 (GLOBE NEWSWIRE) — NRT Technology Corp. (“NRT”), a leading provider of digital commerce experiences in gaming and financial services, announced that it has acquired the assets of privately held OfferCraft, a software company that uses artificial intelligence and gamification to drive loyalty, engagement and revenue. Terms of the agreement are not disclosed.

The deal will allow NRT to integrate OfferCraft’s patent-pending solutions into its existing kiosk, mobile, table games and cashless payment product lines, while also expanding into entirely new areas across nearly every digital channel.

OfferCraft’s artificial intelligence software allows offers, coupons and rewards to be distributed digitally across email, SMS, websites, social media, kiosks, the Point of Sale, signage, and more. Unlike traditional marketing content, these incentives can change themselves into something different if they’re initially ignored.

For example, if a customer receives a 30% discount but doesn’t use it, that incentive will evolve into something different and can automatically send a text message, email or push notification to the patron with the new alternative. Customers can redeem their personalized offer directly at a kiosk, a POS terminal, or another system using a unique code on their phone, similar to using your phone to check in for a flight. Everything is tracked, A/B-tested and optimized in real time to continually increase conversion rates, while slashing printing costs and fraud.

OfferCraft’s gamification platform builds on its AI tools to enable a wide range of marketing and HR content to be presented in the form of fun, exciting games that are more likely to be clicked, remembered and redeemed — further increasing profitability.

John Dominelli, Founder and CEO of NRT, said: “The OfferCraft platform is already being used by customers in the US, Canada, South America, Africa, and Australia. Adding these fun, digital experiences to almost any kind of marketing generates higher engagement and stronger bottom line results. We believe our partners are going to be blown away once they see this technology in action.”

The acquisition of OfferCraft’s assets follows NRT’s recent acquisitions of eMarker and VisuaLimits, its strategic investment in Gaming Analytics, and its pending merger with Sightline Payments (“Sightline”).  Following receipt of all required gaming approvals, NRT and Sightline will combine to become NRT Sightline.

“OfferCraft is not only an impressive platform, there is a clear synergy in the culture and product vision between the leadership of the two companies,” said Kirk Sanford, Sightline’s Founder and CEO. “Casinos are racing to keep up with the digital economy, and this transaction will allow us to incorporate gamification and artificial intelligence into the Play+ cashless gaming experience that allows patrons to pay for their play without cash, the cutting-edge mobile applications we’re delivering with market leader Kony, and our Habit Analytics platform that uncovers powerful insights about player behavior.”

The entire OfferCraft team will immediately become part of NRT, and will form NRT’s new Interactive division. Aron Ezra, CEO of OfferCraft, will take on the newly created role of Chief Digital Officer at NRT, where he will oversee the OfferCraft product, the NRT mobile app platform strategy, and several soon-to-be-announced initiatives that will advance the company’s mission to connect the guest experience.

“Our team couldn’t be more excited about joining the NRT family,” said Ezra. “We have grown exponentially in the past several years, and we wanted to align ourselves with a forward-thinking group that genuinely cares about its customers. We found that with NRT — joining forces means we’ll be able to innovate faster than ever before to deliver groundbreaking innovations that our clients will love.”

About NRT & Sightline

On closing of the pending merger, NRT Sightline will be the global leader in the design and development of enterprise platforms for the gaming industry. Every year NRT and Sightline enable more than 1 billion physical and digital commerce experiences at over 600 casino properties worldwide.  By seamlessly combining technological innovation with strategic partnerships, our companies create the most convenient, reliable, and secure omni-channel payment ecosystem for casino operators and their guests. NRT and Sightline have been recognized with numerous industry awards, including the coveted “Most Innovative Gaming Technology Product of the Year” for our Play+™ cloud-based cashless funding platform. Our collective solutions are used by casinos, lotteries, race and sports, banking & retailers around the world. We operate across 7 countries and have corporate offices in Las Vegas, Toronto, Macau, and Singapore.

For further information about this acquisition, please contact:  Michael Dominelli, NRT’s SVP Marketing  mdominelli@nrttech.com

For more information about Sightline or its pending merger with NRT, please contact:  Omer Sattar, Sightline’s EVP Strategic Relationships osattar@sightlinepayments.com

LexinFintech Holdings Ltd. Reports Fourth Quarter and Full Year 2017 Unaudited Financial Results

SHENZHEN, China, March 20, 2018 (GLOBE NEWSWIRE) — LexinFintech Holdings Ltd. (“Lexin” or the “Company”) (NASDAQ:LX), a leading online consumer finance platform for educated young adults in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2017.

Fourth Quarter and Full Year 2017 Operational Highlights:

  • Total loan originations in 2017 reached RMB47.7 billion, representing an increase of 115% from RMB22.2 billion in 2016.
  • Total outstanding principal balance of loans reached RMB19.3 billion as of December 31, 2017, representing an increase of 94.7% from RMB9.9 billion as of December 31, 2016.
  • The weighted average tenor of loans originated on our platform in 2017 was approximately 9.53 months. The effective APR1 was 22.8% for the fourth quarter of 2017.
  • Customer acquisition cost2 amounted to RMB99 in 2017, representing a decrease of 22% from 127 in 2016.
  • Total number of registered users reached 23.9 million as of December 31, 2017, representing an increase of 99.2% from 12.0 million as of December 31, 2016; and users with credit line reached 7.6 million as of December 31, 2017, up by 68.9% from 4.5 million as of December 31, 2016.
  • 90+ delinquency ratio3 were 1.14% as of December 31, 2017.

1 The Effective APR refers to the percentage equal to the annualized actual amount of finance charges, including interest and service fees, generated from a customer loan, divided by the average outstanding principal balance for the loan.
2 Customer acquisition cost refers to the amount of total costs we incur in connection with acquiring customers divided by the number of new active customers during a given time period.
3 90+ delinquency ratio refers to outstanding principal balance of on- and off-balance sheet loans that were 90 to 179 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans on our platform as of a specific date. Loans that are delinquent for 180 days or more are charged off.

Fourth Quarter 2017 Financial Highlights:

  • Total operating revenue reached RMB1.6 billion. Financial services income reached RMB902 million, representing an increase of 62.3% from the fourth quarter of 2016. Loan facilitation and servicing fees reached RMB191 million, representing an increase of 668% from the fourth quarter of 2016.
  • Gross profit reached RMB434 million, representing an increase of 79.5% from the fourth quarter of 2016.
  • Non-GAAP EBIT was RMB237 million, an increase of 322% from the fourth quarter of 2016.
  • Net income was RMB100 million, compared to a net loss of RMB12.9 million in the fourth quarter of 2016.
  • Adjusted net income was RMB126 million, representing an increase of 436% from the fourth quarter of 2016.

Full Year 2017 Financial Highlights:

  • Total operating revenue reached RMB5.6 billion. Financial services income reached RMB3.0 billion, representing an increase of 92.9% from 2016. Loan facilitation and servicing fees reached RMB379 million, representing an increase of 599% from 2016.
  • Gross profit reached RMB1.3 billion, representing an increase of 119% from 2016.
  • Non-GAAP EBIT was RMB627 million, compared to RMB18.3 million in 2016.
  • Net income was RMB240 million, compared to a net loss of RMB118 million in 2016.
  • Adjusted net income was RMB389 million, compared to a net loss of RMB39.6 million in 2016.

“We are pleased with our strong results in 2017,” said Mr. Jay Wenjie Xiao, Lexin’s chairman and chief executive officer. “In the past years, our continued investment in financial technology has allowed us to establish strong competitive advantages, as demonstrated in our growing customer base. We established our AI and blockchain laboratories as part of our commitment to developing financial technology, and in 2018, we will continue to invest in technology to further strengthen our competitive advantages.”

“We are pleased to report very strong results for our first quarter as a public company,” said Mr. Craig Yan Zeng, Lexin’s chief financial officer. “In the fourth quarter of 2017, Lexin’s gross profit reached RMB434 million and non-GAAP EBIT reached RMB237 million, representing an increase of 79.5% and 322% from the same period in 2016.”

“In the past year, we’ve continued to provide our customers with more competitive terms. For the fourth quarter of 2017, our effective APR was 22.8%, compared to an APR of 25.3% for the first three quarters of 2017, and our average tenor was over 9 months,” continued Mr. Zeng. “We will continue to provide highly competitive APRs and credit products to our customers while ensuring compliance with all applicable laws and regulations.”

“Our credit performance continues to be strong,” said Mr. Ryan Huanian Liu, Lexin’s chief risk officer. “Our M6+ charge-off rates4 continue to be approximately 2.0%. In an environment of increasing change and complexity, we have maintained a steady charge-off rate, demonstrating the creditworthiness of our customers, and the capabilities and reliability of our advanced credit risk assessment technology. At of the end of 2017, our 90+ delinquency rate was 1.14%, lower than the third quarter’s 1.22%.”

4 “M6+ charge-off rate’’ refers to, with respect to on- and off-balance sheet loans originated during a specified time period, which we refer to as a vintage, the total outstanding principal balance of the loans that become over six months delinquent during a specified period, divided by the total initial principal of the loans originated in such vintage.

Fourth Quarter 2017 Financial Results:

Operating revenue increased from RMB1.4 billion in the fourth quarter of 2016 to RMB1.6 billion in the fourth quarter of 2017. This increase was primarily due to the substantial increase in financial service income, in particular interest and financial services income.

Financial services income increased by 62.3% from RMB556 million in the fourth quarter of 2016 to RMB902 million in the fourth quarter of 2017. This increase was primarily due to an increase in loan balance, which was in turn driven by increases in the number of active customers and the average outstanding principal balance of loans per customer.

Loan facilitation and servicing fees increased by 668% from RMB 24.9million in the fourth quarter of 2016 to RMB191 million in the fourth quarter of 2017. This increase was primarily due to the significant growth in off-balance sheet loans.

Funding cost increased by 47.5% from RMB151 million in the fourth quarter of 2016 to RMB222 million in the fourth quarter of 2017. This increase was primarily due to an increase in our funding debts to fund on-balance sheet loans originated on our platform.

Processing and servicing cost increased by 77.9% from RMB38.4 million in the fourth quarter of 2016 to RMB68.3 million in the fourth quarter of 2017. This increase was primarily due to an increase in salaries and personnel related costs, an increase in fees to third-party payment platforms, an increase in credit assessment cost, and an increase in risk management expenses.

Provision for credit losses increased by 102% from RMB93.5 million in the fourth quarter of 2016 to RMB189 million in the fourth quarter of 2017. This increase was primarily due to the increase in the average outstanding principal balance of on-balance sheet loans.

Gross profit increased by 79.5% from RMB242 million in the fourth quarter of 2016 to RMB434 million in the fourth quarter of 2017.

Sales and marketing expenses decreased by 8.7% from RMB118 million in the fourth quarter of 2016 to RMB108 million in the fourth quarter of 2017. This decrease was primarily due to a decrease in advertising cost.

Research and development expenses increased by 47.2% from RMB45.5 million in the fourth quarter of 2016 to RMB67.0 million in the fourth quarter of 2017. This increase was primarily due to the increase in payroll and related expenses as a result of an increase in the headcount.

General and administrative expenses increased by 105% from RMB27.6 million in the fourth quarter of 2016 to RMB56.6 million in the fourth quarter of 2017. This increase was primarily due to the increase in payroll expenses and the increase in share-based compensation expenses allocated to general and administrative expenses. In addition, we incurred an increase in professional service fees.

Net income for the fourth quarter of 2017 was RMB100 million, compared to a net loss of RMB12.9 million in the fourth quarter of 2016.

Adjusted net income for the fourth quarter of 2017 was RMB126 million, representing an increase of 436% from RMB23.6 million in the fourth quarter of 2016.

Full Year 2017 Financial Results:

Operating revenue increased from RMB4.3 billion in 2016 to RMB5.6 billion in 2017. This increase was primarily due to the substantial increase in financial services income.

Financial services income increased by 92.9% from RMB1.6 billion in 2016 to RMB3.0 billion in 2017. This increase was primarily due to the increase in the principal balance of loans.

Loan facilitation and servicing fees increased by 599% from RMB 54.2million in 2016 to RMB379 million in 2017. This increase was primarily due to the significant growth in principal balance of off-balance sheet loans.

Funding cost increased by 61.1% from RMB492 million in 2016 to RMB792 million in 2017. This increase was primarily due to an increase in our funding debts to fund on-balance sheet loans originated on our platform.

Processing and servicing cost increased by 95.9% from RMB114 million in 2016 to RMB224 million in 2017. This increase was primarily due to an increase in salaries and personnel related costs as we increased the headcount of processing and servicing personnel, an increase in fees to third-party payment platforms, an increase in credit assessment cost, and an increase in risk management expenses. These increases reflected the significant growth in the volume of credit applications and in loan servicing requirements.

Provision for credit losses increased by 159% from RMB237 million in 2016 to RMB612 million in 2017. This increase was primarily due to the increase in the average outstanding principal balance of on-balance sheet loans during these periods. In addition, as we had continued to improve our credit assessment and risk management capabilities as well as to enhance our collection efforts, we gradually expanded our customer base to improve our profit, while maintaining credit risks at a reasonable level.

Gross profit for 2017 was RMB1.3 billion, representing an increase of 119% from 2016.

Sales and marketing expenses increased by 7.8% from RMB376 million in 2016 to RMB406 million in 2017. This increase was primarily due to an increase in payroll and related expenses as a result of an increase in the salary and benefit level for the employees and share-based compensation expenses allocated to sales and marketing expenses, offset by a decrease in advertising cost.

Research and development expenses increased by 84.8% from RMB127 million in 2016 to RMB235 million in 2017. This increase was primarily due to an increase in payroll and related expenses, an increase in rental and depreciation expense allocated to research and development expenses, an increase in share-based compensation expenses and an increase in technical service fee.

General and administrative expenses increased by 133% from RMB87.4 million in 2016 to RMB204 million in 2017. This increase was primarily due to an increase in payroll, an increase in share-based compensation expenses allocated to general and administrative expenses and related expenses as a result of an increase in the headcount of general and administrative personnel and an increase in the salary and benefit level for the employees. In addition, we incurred an increase in professional service fees, rental expenses and other general corporate-related expenses as a result of our business growth in 2017.

Net income for 2017 was RMB240 million, compared to a net loss of RMB118 million in 2016.

Adjusted net income for 2017 was RMB389 million, compared to a net loss of RMB39.6 million in 2016.

Please click here to view our vintage curve:  http://resource.globenewswire.com/Resource/Download/79fff7e2-75db-40e0-abc7-5bd0c715bfb5

Conference Call

The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern time on March 20, 2018 8:00 PM Beijing/Hong Kong time on March 20, 2018.

Dial-in details for the earnings conference call are as follows:

United States (toll free): 1 845 675 0437 or 1 866 519 4004
International: 65 6713 5090
Hong Kong (toll free): 800 906 601 or 852 3018 6771
China: 400 6208 038 or 800 8190 121

Participants should dial-in at least 5 minutes before the scheduled start time and use the following passcode: 6668577.

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.lexinfintech.com.

A replay of the conference call will be accessible approximately two hours after the conclusion of the live call until March 27, 2018, by dialing the following telephone numbers:

United States (toll free): 1 855 452 5696 or 1 646 254 3697
International: 61 2 8199 0299
Replay Access Code: 6668577

About LexinFintech Holdings Ltd.
LexinFintech Holdings Ltd. (“Lexin” or the “Company”) is a leading online consumer finance platform for educated young adults in China. As one of China’s leading financial technology companies, Lexin integrates its e-commerce-driven installment finance platform, Fenqile, with advanced risk management technologies, the Company’s Dingsheng asset distribution technology platform, and the Company’s Juzi Licai online investment platform for individual investors, to create a comprehensive consumer finance ecosystem. The Company utilizes technologies including big data, cloud computing and artificial intelligence to enable the near-instantaneous matching of user funding requests with offers from the Company’s more than 30 funding partners, which include commercial banks, consumer finance companies, and other licensed financial institutions.

For more information, please visit http://ir.lexinfintech.com

To follow us on Twitter, please go to: https://twitter.com/LexinFintech

Use of Non-GAAP Financial Measures Statement

In evaluating our business, we consider and use adjusted net (loss)/income and non-GAAP EBIT, two non-GAAP measures, as supplemental measures to review and assess our operating performance. The presentation of the 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 U.S. GAAP. We define adjusted net (loss)/income as net (loss)/income excluding share-based compensation expenses, interest expense associated with convertible loans and investment-related impairment, and we define non-GAAP EBIT as net (loss)/income excluding income tax expense, share-based compensation expenses, interest expense, net and investment-related impairment.

We present these non-GAAP financial measures because it is used by our management to evaluate our operating performance and formulate business plans. Adjusted net (loss)/income enables our management to assess our operating results without considering the impact of share-based compensation expenses, interest expense associated with convertible loans and investment-related impairment. Non-GAAP EBIT, on the other hand, enables our management to assess our operating results without considering the impact of income tax expense, interest expense, net, share-based compensation expenses and investment-related impairment. We also believe that the use of these non-GAAP financial measures facilitate investors’ assessment of our operating performance. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP.

These non-GAAP financial measures have limitations as an analytical tool. One of the key limitations of using adjusted net (loss)/income and non-GAAP EBIT is that they do not reflect all items of income and expense that affect our operations. Share-based compensation expenses, interest expense associated with convertible loans, income tax expense, interest (income)/expense, net and investment-related impairment have been and may continue to be incurred in our business and are not reflected in the presentation of adjusted net (loss)/income and non-GAAP EBIT. Further, these non-GAAP financial measures may differ from the non-GAAP financial information used by other companies, including peer companies, and therefore their comparability may be limited.

We compensate for these limitations by reconciling the non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

Exchange Rate Information Statement

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.5063 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 29, 2017. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Statement Regarding Preliminary Unaudited Financial Information

The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.

Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of 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,” “confident” and similar statements. Among other things, the expectation of its collection efficiency and delinquency, business outlook and quotations from management in this announcement, contain forward-looking statements. Lexin may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (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 Lexin’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Lexin’s goal and strategies; Lexin’s expansion plans; Lexin’s future business development, financial condition and results of operations; Lexin’s expectation regarding demand for, and market acceptance of, its credit and investment management products; Lexin’s expectations regarding keeping and strengthening its relationship with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Lexin’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Lexin does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

LexinFintech Holdings Ltd.

IR inquiries:
Tony Hung
Tel: +86 (755) 3637-8888 ext. 6258
E-mail: IR@lexinfintech.com

Media inquiries:
Limin Chen
Tel: +86 (755) 3367-8888 ext. 6993
E-mail: liminchen@lexinfintech.com

ICR Inc.
Media inquiries:
Edmond Lococo
Tel: +86 (10) 6583-7510
E-mail: Edmond.lococo@icrinc.com

SOURCE LexinFintech Holdings Ltd.

LexinFintech Holdings Ltd.

 Unaudited Condensed Consolidated Balance Sheets

(In thousands, except for share and per share data) As of December 31,
2016 2017 2017
  RMB RMB US$
ASSETS
Current assets
Cash and cash equivalents 479,605 1,126,475 173,136
Restricted cash 172,870 561,922 86,366
Restricted time deposits 8,000 6,750 1,037
Short‑term financing receivables, net 6,470,898 9,857,209 1,515,025
Accrued interest receivable 73,148 129,622 19,923
Prepaid expenses and other current assets 219,981 945,258 145,283
Amounts due from related parties 11,742 9,447 1,452
Inventories, net 107,704 101,653 15,624
Total current assets 7,543,948 12,738,336 1,957,846
Non‑current assets
Restricted cash  46,889  7,207
Restricted time deposits 1,000  600  92
Long‑term financing receivables, net 1,066,148  1,785,045  274,356
Property, equipment and software, net 41,747  63,125  9,702
Long‑term investments 24,887  23,485  3,610
Deferred tax assets 42,405  38,841  5,970
Other assets 33,263 5,112
Total non‑current assets 1,176,187  1,991,248  306,049
TOTAL ASSETS 8,720,135 14,729,584   2,263,895
LIABILITIES
Current liabilities
Accounts payable 72,703  198,177  30,459
Amounts due to related parties 137,782  67,510  10,376
Short‑term borrowings 70,036  168,844  25,951
Short‑term funding debts 6,968,488  10,525,134  1,617,683
Accrued interest payable 133,993  290,446  44,641
Accrued expenses and other current liabilities 602,259  1,611,029  247,611
Total current liabilities 7,985,261  12,861,140  1,976,721
Non‑current liabilities
Long‑term funding debts 21,014  166,629  25,610
Long‑term borrowings 1,762  289  44
  Convertible loans 698,179
Total non‑current liabilities 720,955 166,918 25,654
TOTAL LIABILITIES 8,706,216  13,028,058  2,002,375
LexinFintech Holdings Ltd.
 Unaudited Condensed Consolidated Balance Sheets (Continued)
As of December 31,
(In thousands, except for share and per share data) 2016 2017 2017
RMB RMB US$
MEZZANINE EQUITY
Series A‑1 convertible redeemable preferred shares 14,485
Class B ordinary shares 1,319
Series A‑2 convertible redeemable preferred shares 41,810
Series B‑1 convertible redeemable preferred shares 29,970
Series B‑2 convertible redeemable preferred shares 537,986
Series C convertible redeemable preferred shares *
TOTAL MEZZANINE EQUITY 625,570
*            Less than 1
SHAREHOLDERS’ (DEFICIT)/EQUITY:
Pre-IPO Class A Ordinary Shares 68
Post-IPO Class A Ordinary Shares 142 22
Post-IPO Class B Ordinary Shares 68 10
Additional paid‑in capital 2,110,957 324,448
Statutory reserves 2,003 55,861 8,586
Accumulated other comprehensive income/(loss) 16,942   (14,951 )   (2,298 )
Accumulated deficit  (630,664 )   (450,551 )   (69,248 )
TOTAL SHAREHOLDERS’ (DEFICIT)/EQUITY   (611,651 ) 1,701,526 261,520
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ (DEFICIT)/EQUITY 8,720,135 14,729,584 2,263,895
LexinFintech Holdings Ltd.

 Unaudited Condensed Consolidated Statements of Operations

(In thousands, except for share and per share data) For the Three Months Ended December 31,
2016 2017 2017
  RMB RMB US$
Operating revenue:
Online direct sales 832,715  673,607  103,532
Services and others 1,617  18,118  2,785
Online direct sales and services income 834,332  691,725  106,317
Interest and financial services income 479,952  657,004  100,980
Loan facilitation and servicing fees 24,917  191,442  29,424
Other revenue 50,711  53,531  8,228
Financial services income 555,580  901,977  138,632
Total operating revenue 1,389,912  1,593,702  244,949
Operating cost:
Cost of sales (865,361 )  (679,765 )  (104,478 )
Funding cost (150,824 )  (222,438 )  (34,188 )
Processing and servicing cost (38,364 )  (68,267 )  (10,492 )
Provision for credit losses (93,523 )  (189,197 )  (29,079 )
Total operating cost (1,148,072 )  (1,159,667 )  (178,237 )
Gross profit 241,840  434,035  66,712
Operating expenses:
Sales and marketing expenses (118,239 )  (107,977 )  (16,596 )
Research and development expenses (45,529 )  (67,007 )  (10,299 )
General and administrative expenses (27,634 )  (56,590 )  (8,698 )
Total operating expenses (191,402 )  (231,574 )  (35,593 )
Interest expense, net (20,853 )  (7,289 )  (1,120 )
Investment related impairment (5,635 )  (932 )  (143 )
Change in fair value of financial guarantee derivatives (2,399 )  15,346  2,359
Others, net (1,803 ) 292  45
Income before income tax expense 19,748   209,878   32,260
Income tax expense (32,650 )  (109,440 )  (16,821 )
Net (loss)/income (12,902 ) 100,438   15,439
Preferred shares redemption value accretion (16,278 ) (31,628 ) (4,861 )
Income allocation to participating preferred shares (47,113 ) (7,241 )
Net (loss)/income attributable to ordinary shareholders (29,180 )   21,697 3,337
Net (loss)/income per ordinary share
Basic (0.29 )  0.18  0.03
Diluted (0.29 )  0.14  0.02
Net (loss)/income per ADS
Basic  0.35  0.05
Diluted  0.29  0.04
Weighted average ordinary shares outstanding
Basic 110,647,199 122,444,533 122,444,533
Diluted 110,647,199 195,107,394 195,107,394
LexinFintech Holdings Ltd.

 Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/Income

(In thousands, except for share and per share data) For the Three Months ended December 31,
2016 2017 2017
  RMB RMB US$
       
Net (loss)/income (12,902 ) 100,438 15,439
Other comprehensive income/(loss)
Foreign currency translation adjustment, net of nil tax 771 (33,689 ) (5,178 )
Total comprehensive (loss)/income (12,131 ) 66,749 10,261
LexinFintech Holdings Ltd.

 Unaudited Condensed Consolidated Statements of Operations

(In thousands, except for share and per share data) For the Year Ended December 31,
2016 2017 2017
  RMB RMB US$
Operating revenue:
Online direct sales 2,770,634  2,534,983  389,620
Services and others 5,060  31,950  4,911
Online direct sales and services income 2,775,694  2,566,933  394,531
Interest and financial services income 1,373,559  2,443,761  375,599
Loan facilitation and servicing fees 54,201  378,892  58,235
Other revenue 135,232  192,603  29,603
Financial services income 1,562,992  3,015,256  463,437
Total operating revenue 4,338,686  5,582,189  857,968
Operating cost:
Cost of sales (2,894,025 )  (2,634,142 )  (404,860 )
Funding cost (491,695 )  (792,170 )  (121,754 )
Processing and servicing cost (114,323 )  (223,916 )  (34,415 )
Provision for credit losses (236,611 )  (611,869 )  (94,043 )
Total operating cost (3,736,654 )  (4,262,097 )  (655,072 )
Gross profit 602,032  1,320,092  202,896
Operating expenses:
Sales and marketing expenses  (376,313 )  (405,505 )  (62,325 )
Research and development expenses  (127,317 )  (235,292 )  (36,164 )
General and administrative expenses (87,364 )  (203,635 )  (31,298 )
Total operating expenses (590,994 )  (844,432 )  (129,787 )
Interest expense, net  (48,343 )  (75,517 )  (11,607 )
Investment related impairment  (5,635 )  (932 )  (143 )
Change in fair value of financial guarantee derivatives  (5,942 )  47,355  7,278
Others, net (10,799 )   28,013 4,306
(Loss)/income before income tax expense (59,681 ) 474,579 72,943
Income tax expense (58,258 )  (234,227 )  (36,000 )
Net (loss)/income (117,939 ) 240,352   36,943
Preferred shares redemption value accretion  (62,299 )   (82,117 ) (12,621 )
Income allocation to participating preferred shares  – (132,241 ) (20,325 )
Deemed dividend to a preferred shareholder  (42,679 )
Net (loss)/income attributable to ordinary shareholders (222,917 ) 25,994 3,997
Net (loss)/income per ordinary share
Basic  (2.01 )  0.23  0.04
Diluted  (2.01 )  0.18  0.03
Net (loss)/income per ADS
Basic  0.46  0.07
Diluted  0.37  0.06
Weighted average ordinary shares outstanding
Basic  110,647,199  113,620,774  113,620,774
Diluted  110,647,199   140,852,401   140,852,401
LexinFintech Holdings Ltd.

 Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/Income

(In thousands, except for share and per share data) For the Year Ended December 31,
2016 2017 2017
  RMB RMB US$
       
Net (loss)/income (117,939 ) 240,352 36,943
Other comprehensive income/(loss)
Foreign currency translation adjustment, net of nil tax 1,908   (31,893 ) (4,902 )
Total comprehensive (loss)/income (116,031 )   208,459   32,041
LexinFintech Holdings Ltd.
 Unaudited Reconciliations of GAAP and Non-GAAP Results
(In thousands) 
For the Three Months Ended December 31,
2016 2017 2017
RMB RMB US$
Reconciliation of Adjusted Net Income to Net (Loss)/Income
Net (loss)/income   (12,902 ) 100,438 15,439
Add: Share-based compensation expenses 10,025 19,199 2,951
Interest expense associated with convertible loans 20,851 5,878 903
Investment-related impairment 5,635 932 143
Adjusted net income 23,609 126,447 19,436
For the Year Ended December 31,
2016 2017 2017
RMB RMB US$
Reconciliation of Adjusted Net (Loss)/Income to Net (Loss)/Income
Net (loss)/income   (117,939 ) 240,352 36,943
Add: Share-based compensation expenses 23,999 75,736 11,640
Interest expense associated with convertible loans 48,663 71,867 11,046
Investment-related impairment 5,635 932 143
Adjusted net (loss)/ income   (39,642 ) 388,887 59,772
For the Three Months Ended December 31,
2016 2017 2017
RMB RMB US$
Reconciliations of Non-GAAP EBIT to Net (Loss)/Income
Net (loss)/income   (12,902 ) 100,438 15,439
Add: Income tax expense 32,650 109,440 16,821
Share-based compensation expenses 10,025 19,199 2,951
Interest expense, net 20,853 7,289 1,120
Investment-related impairment 5,635 932 143
Non-GAAP EBIT 56,261 237,298 36,474
For the Year Ended December 31,
2016 2017 2017
RMB RMB US$
Reconciliations of Non-GAAP EBIT to Net (Loss)/Income
Net (loss)/income   (117,939 ) 240,352 36,943
Add: Income tax expense 58,258 234,227 36,000
Share-based compensation expenses 23,999 75,736 11,640
Interest expense, net 48,343 75,517 11,607
Investment-related impairment 5,635 932 143
Non-GAAP EBIT 18,296 626,764 96,333

UPDATE: McDonald’s Becomes the First Restaurant Company to Set Approved Science Based Target to Reduce Greenhouse Gas Emissions

Company Expected to Prevent 150 Million Metric Tons of Emissions by 2030

OAK BROOK, Ill., March 20, 2018 (GLOBE NEWSWIRE) — Today, McDonald’s announces it will partner with franchisees and suppliers to reduce greenhouse gas emissions related to McDonald’s restaurants and offices by 36% by 2030 from a 2015 base year in a new strategy to address global climate change. Additionally, McDonald’s commits to a 31% reduction in emissions intensity (per metric ton of food and packaging) across its supply chain by 2030 from 2015 levels. This combined target has been approved by the Science Based Targets initiative (SBTi).

Through these actions, McDonald’s expects to prevent 150 million metric tons of greenhouse gas emissions from being released into the atmosphere by 2030. This is the equivalent of taking 32 million passenger cars off the road for an entire year or planting 3.8 billion trees and growing them for 10 years. The target will enable McDonald’s to grow as a business without growing its emissions.

“To create a better future for our planet, we must all get involved. McDonald’s is doing its part by setting this ambitious goal to reduce greenhouse gas emissions to address the challenge of global climate change,” said Steve Easterbrook, McDonald’s President and CEO, who announced the plan in a video released by the company. “To meet this goal, we will source our food responsibly, promote renewable energy and use it efficiently, and reduce waste and increase recycling.”

To reach its target, McDonald’s will work across its supply chain, offices and restaurants to be more innovative and efficient through improvements such as LED lighting, energy efficient kitchen equipment, sustainable packaging, restaurant recycling, and by elevating and supporting sustainable agriculture practices. In collaboration with thousands of franchisees, suppliers and producers, McDonald’s will prioritize action on the largest segments of its carbon footprint: beef production, restaurant energy usage and sourcing, packaging and waste. These segments combined, account for approximately 64% of McDonald’s global emissions.

Building on the momentum of existing programs on forests, agriculture and energy efficiency, McDonald’s and its partners will continue to identify practical solutions to reduce greenhouse gas emissions and bring them to scale. In its commitment to transparency, McDonald’s will expand its measurement systems, and annually communicate about progress, challenges and milestones.

“Environmental progress doesn’t just happen, it takes bold leadership from all of us,” said Fred Krupp, President of Environmental Defense Fund. “As one of the best known brands on the planet, McDonald’s is well positioned to lead, and its ambitious new climate target will inspire innovation, collaboration, and most importantly critical greenhouse gas reductions across the company’s global operations and supply chain.”

McDonald’s work to care for the planet and communities spans nearly three decades, including the establishment of a groundbreaking partnership with Environmental Defense Fund (EDF) on packaging and waste reduction. More recently, in 2014, McDonald’s released an Energy and Climate Position Statement, establishing the company’s view on taking effective, collaborative action to tackle climate change. Additionally, in 2015, McDonald’s developed a Commitment on Forests that addresses supply chain impacts on deforestation. This strengthened the foundation of the company’s climate strategy as deforestation accounts for an estimated 15% of global greenhouse gas emissions.

“McDonald’s footprint touches all parts of the world. Their announcement matters because it commits one of the world’s biggest companies to deliver, with the full breadth of their food chain system, significant emissions reductions based on science. It also coincides with their decision to join the We Are Still In coalition with thousands of other companies across the US,” said Carter Roberts, President and CEO of World Wildlife Fund (WWF) in the United States. “While private-sector actions can’t entirely solve the climate crisis facing our planet, significant announcements like these, and coalitions like these working on climate together, create momentum and movement toward the scale of solutions that we ultimately need.”

The launch of this science based target is the latest step in McDonald’s journey to drive meaningful change and use its Scale for Good.

“McDonald’s is delivering a strong statement by becoming the first restaurant company to set a science-based greenhouse gas emissions target. McDonald’s leaders understand that you don’t have to grow emissions to grow as a company,” said Andrew Steer, President & CEO, World Resources Institute (WRI), one of the Science Based Targets initiative partners. “By working with suppliers to design and scale more sustainable farming practices and reducing waste, McDonald’s will chart a path that is better for its franchise, customers and the environment. WRI urges McDonald’s to look for additional opportunities to align their business model and value chain with the realities of a resource-constrained world. We stand ready to support the company in pursuing strategies that lead to healthier consumers and a more sustainable planet.”

The Science Based Targets initiative (SBTi) is a collaboration between WRI, WWF, CDP (formerly the Carbon Disclosure Project) and the United Nations Global Compact, which helps companies determine how much they must cut emissions to do their part to address climate change.

Building on years of engagement with the beef industry, McDonald’s released its 2020 goals for beef sustainability in 2017. These laid out the next steps for collaboration with beef producers and industry partners to proactively identify, share and scale beef production’s most sustainable practices. Already in 2018, McDonald’s launched new packaging and recycling goals and strengthened its commitment to support families.

About McDonald’s
McDonald’s is the world’s leading global foodservice retailer with over 37,000 locations in 120 markets around the world. Over 90 percent of McDonald’s restaurants worldwide are owned and operated by independent local business men and women.

MEDIA CONTACT

Terri Hickey, 773-655-3035
terri.hickey@us.mcd.com

McDonald’s Becomes the First Restaurant Company to Set Approved Science Based Target to Reduce Greenhouse Gas Emissions

Company Expected to Prevent 150 Million Metric Tons of Emissions by 2030

OAK BROOK, Ill., March 20, 2018 (GLOBE NEWSWIRE) — Today, McDonald’s announces it will partner with franchisees and suppliers to reduce greenhouse gas emissions related to McDonald’s restaurants and offices by 36% by 2030 from a 2015 base year in a new strategy to address global climate change. Additionally, McDonald’s commits to a 31% reduction in emissions intensity (per metric ton of food and packaging) across its supply chain by 2030 from 2015 levels. This combined target has been approved by the Science Based Targets initiative (SBTi).

Through these actions, McDonald’s expects to prevent 150 million metric tons of greenhouse gas emissions from being released into the atmosphere by 2030. This is the equivalent of taking 32 million passenger cars off the road for an entire year or planting 3.8 billion trees and growing them for 10 years. The target will enable McDonald’s to grow as a business without growing its emissions.

“To create a better future for our planet, we must all get involved. McDonald’s is doing its part by setting this ambitious goal to reduce greenhouse gas emissions to address the challenge of global climate change,” said Steve Easterbrook, McDonald’s President and CEO, who announced the plan in a video released by the company. “To meet this goal, we will source our food responsibly, promote renewable energy and use it efficiently, and reduce waste and increase recycling.”

To reach its target, McDonald’s will work across its supply chain, offices and restaurants to be more innovative and efficient through improvements such as LED lighting, energy efficient kitchen equipment, sustainable packaging, restaurant recycling, and by elevating and supporting sustainable agriculture practices. In collaboration with thousands of franchisees, suppliers and producers, McDonald’s will prioritize action on the largest segments of its carbon footprint: beef production, restaurant energy usage and sourcing, packaging and waste. These segments combined, account for approximately 64% of McDonald’s global emissions.

Building on the momentum of existing programs on forests, agriculture and energy efficiency, McDonald’s and its partners will continue to identify practical solutions to reduce greenhouse gas emissions and bring them to scale. In its commitment to transparency, McDonald’s will expand its measurement systems, and annually communicate about progress, challenges and milestones.

“Environmental progress doesn’t just happen, it takes bold leadership from all of us,” said Fred Krupp, President of Environmental Defense Fund. “As one of the best known brands on the planet, McDonald’s is well positioned to lead, and its ambitious new climate target will inspire innovation, collaboration, and most importantly critical greenhouse gas reductions across the company’s global operations and supply chain.”

McDonald’s work to care for the planet and communities spans nearly three decades, including the establishment of a groundbreaking partnership with Environmental Defense Fund (EDF) on packaging and waste reduction. More recently, in 2014, McDonald’s released an Energy and Climate Position Statement, establishing the company’s view on taking effective, collaborative action to tackle climate change. Additionally, in 2015, McDonald’s developed a Commitment on Forests that addresses supply chain impacts on deforestation. This strengthened the foundation of the company’s climate strategy as deforestation accounts for an estimated 15% of global greenhouse gas emissions.

“McDonald’s footprint touches all parts of the world. Their announcement matters because it commits one of the world’s biggest companies to deliver, with the full breadth of their food chain system, significant emissions reductions based on science. It also coincides with their decision to join the We Are Still In coalition with thousands of other companies across the US,” said Carter Roberts, President and CEO of World Wildlife Fund (WWF) in the United States. “While private-sector actions can’t entirely solve the climate crisis facing our planet, significant announcements like these, and coalitions like these working on climate together, create momentum and movement toward the scale of solutions that we ultimately need.”

The launch of this science based target is the latest step in McDonald’s journey to drive meaningful change and use its Scale for Good.

“McDonald’s is delivering a strong statement by becoming the first restaurant company to set a science-based greenhouse gas emissions target. McDonald’s leaders understand that you don’t have to grow emissions to grow as a company,” said Andrew Steer, President & CEO, World Resources Institute (WRI), one of the Science Based Targets initiative partners. “By working with suppliers to design and scale more sustainable farming practices and reducing waste, McDonald’s will chart a path that is better for its franchise, customers and the environment. WRI urges McDonald’s to look for additional opportunities to align their business model and value chain with the realities of a resource-constrained world. We stand ready to support the company in pursuing strategies that lead to healthier consumers and a more sustainable planet.”

The Science Based Targets initiative (SBTi) is a collaboration between WRI, WWF, CDP (formerly the Carbon Disclosure Project) and the United Nations Global Compact, which helps companies determine how much they must cut emissions to do their part to address climate change.

Building on years of engagement with the beef industry, McDonald’s released its 2020 goals for beef sustainability in 2017. These laid out the next steps for collaboration with beef producers and industry partners to proactively identify, share and scale beef production’s most sustainable practices. Already in 2018, McDonald’s launched new packaging and recycling goals and strengthened its commitment to support families.

About McDonald’s
McDonald’s is the world’s leading global foodservice retailer with over 37,000 locations in 120 markets around the world. Over 90 percent of McDonald’s restaurants worldwide are owned and operated by independent local business men and women.

MEDIA CONTACT

Terri Hickey, 773-655-3035
terri.hickey@us.mcd.com

Putin’s re-election: Countries promise closer relationships with Russia

World leaders have sent congratulatory messages to Russian President Vladimir Putin on his re-eclection victory.

Japanese Prime Minister Shinzo Abe congratulated Putin and the two leaders agreed to work together for North Korea’s denuclearization before an expected summit between US President Donald Trump and North Korean leader Kim Jong Un. German Chancellor Angela Merkel will congratulate Putin, her spokesman said, adding that close contact with Russia’s leadership is very important to Germany.

In his victory speech, Presiden Putin said Russia doens’t want another arms race and will do whatever it takes to resolve conflicts with other countries through political and diplomatic methods, but demands that other countries respect Russia.

Source: VOV5

Iraqi forces arrest senior ISIS terrorists

Iraqi troops on Monday arrested two high-profile members of the Daesh Takfiri terrorist group near Mosul as government forces, supported by allied fighters from Popular Mobilization Units, continue to hunt for ISIS remnants.

Members of the 20th Brigade of the Army arrested self-proclaimed ISIS finance minister, Dawoud Mohamed Saleh, and another leader, whose identity was not known during a raid on a house in the south of Mosul.

A large number of explosive materials and weapons were seized during the offensive while local security forces detained 30 people southwest of Mosul for suspected links with ISIS.

Source: VOV5

HCM City Book Fair 2018 to attract 1 million visitors

The 10th Ho Chi Minh City Book Fair, themed Books � Culture, Integration and Development, opened on Monday.

The event has drawn 140 domestic book publishers and 40 foreign publishers from the US, the UK, France, and Singapore. Nguyen Minh Nhut, vice chief organizer of the event, said: “This year’s fair is bigger than previous ones. We created a free reading and play zone for children and reserved an area for discussions on copyrights.”

The week-long event is expected to attract 1 million visitors.

Source: VOV5