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China Rapid Finance Reports Unaudited Fourth Quarter and Full Year 2017 Results

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China Rapid Finance Reports Unaudited Fourth Quarter and Full Year 2017 Results

PR Newswire

--Achieved Q4 Non-GAAP Profitability Before Income Tax Expense--
--Strong Operating Cash Flow for Last Two Quarters—
--Cash Balance Increased Since the IPO to $94.9 million as of 12/31--

SHANGHAI, April 3, 2018 /PRNewswire/ -- China Rapid Finance Limited ("China Rapid Finance" or the "Company") (NYSE:XRF), operator of one of China's largest consumer lending marketplaces, today reported its unaudited financial results for the fourth quarter and full year ended December 31, 2017.

Fourth Quarter 2017 Highlights:

  • Positive operating cash flow of $15.8 million
  • Total gross billings up 186% year-over-year
  • Facilitated 6.2 million loans with total loan volume of $1.03 billion
  • Added 627 thousand new borrowers, up 17% from the end of Q3 2017
  • Added approximately 10 thousand new investors to reach over 23 thousand investors
  • GAAP net loss of $3.9 million
  • Non-GAAP adjusted profit before income tax expense of $1.1 million

Full Year 2017 Highlights:

  • Year-end cash balance of $94.9 million, up from $74 million immediately after the IPO
  • Total gross billings up 102%
  • Added 2.9 million new borrowers, up 202% from the end of 2016
  • Facilitated over 23 million loans with total loan volume of $3.3 billion

Dr. Zane Wang, Chief Executive Officer, Founder and Chairman of the Company, commented: "We finished 2017 on a strong note, surpassing our fourth quarter targets on all key operating metrics and achieving profitability on a non-GAAP basis.  Solid operating cash flow in the last two quarters propelled us to finish the year with $95 million of cash.

"Moreover, our borrower base continues to perform as predicted, validating our customer acquisition strategy. Repeat borrowing rates reached 76% and we cut time to break-even by half.  Excellent individual loan performance, with a loss ratio of 3.7%, offered further evidence of the predictive power of our proprietary borrower evaluation tools.  Investor confidence remains high, demonstrated by the approximately 10,000 new investors we added in the quarter.  With an active borrower base, growing investor population and strong balance sheet, CRF has a firm foundation to support high quality growth in 2018 and beyond."

Commenting on the regulatory environment, Dr. Wang added: "We fully support the efforts of regulators to ensure a fair industry environment.  We will continue to work closely with industry regulators to ensure our practices are in full compliance with all relevant regulations.  We believe that the new emerging regulatory framework is positive for our industry, and will result in consolidation that benefits the highest quality providers, including our platform.  As an industry leader, we aim to be a model for the ethical, fair and lawful operation of a financial services business that can benefit hundreds of millions of borrowers and investors while at the same time generating strong returns for shareholders."

Fourth Quarter Operating Highlights

During the fourth quarter, the Company continued to deliver against key performance indicators, despite increased uncertainty around changes in the regulatory environment.

  • Number of loans facilitated totaled 6.2 million, up 147% y/y.
  • New borrowers added were 627 thousand, up 15% y/y.  At year end, the Company had 4.3 million unique borrowers on the platform.
  • New investors added were approximately 10 thousand.  At year end, the Company had over 23 thousand unique investors.
  • Total loan volume increased 196% y/y to $1.03 billion, the second quarter in which the Company achieved over $1.0 billion in loan volume.  Consumption loans increased by 279% y/y to $900.3 million, while lifestyle loans grew 16% y/y to $127.3 million.


For the Three Months Ended





December 31,
2016


September 30,
2017


December 31,
2017


YoY

Number of loans facilitated ('000)









Consumption loans


2,522


7,014


6,235


147%

Lifestyle loans


10


11


11


10%

Total


2,532


7,025


6,246


147%

Number of new borrowers ('000)









Consumption loans


534


921


617


16%

Lifestyle loans  


9


10


10


11%

Total  


543


931


627


15%










Repeat borrower rate[1]


67%


75%


76%


1%










Loan volume (in US$ millions)









Consumption loans


237.6


908.0


900.3


279%

Lifestyle loans  


109.6


122.3


127.3


16%

Total  


347.2


1,03

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