SHANGHAI, Aug. 30, 2019 /PRNewswire/ -- Yintech
Investment Holdings Limited (NASDAQ: YIN) ("Yintech" or the
"Company"), a leading provider of investment and trading
services for individual investors in China, today announced its unaudited financial
results for the second quarter of 2019.
Second Quarter 2019 Financial Highlights
|
For the quarter
ended
|
|
(In RMB million,
except
otherwise specified)
|
June 30,
2018
|
March 31,
2019
|
June 30,
2019
|
Q2'19 vs.
Q2'18
|
Q2'19 vs.
Q1'19
|
|
|
Revenues
|
263.3
|
454.3
|
289.1
|
9.8%
|
(36.4%)
|
|
Net commissions and
fees
|
217.9
|
246.5
|
309.0
|
41.8%
|
25.4%
|
|
Net commissions and
fees
from commodities services
|
130.5
|
123.7
|
174.8
|
33.9%
|
41.3%
|
|
Net commissions and
fees
from securities services
|
87.4
|
122.8
|
134.2
|
53.5%
|
9.3%
|
|
Net income/(loss)
attributable to
Yintech
|
(48.5)
|
69.2
|
(55.0)
|
(13.4%)
|
(179.5%)
|
|
Earnings/(loss) per
ADS -
diluted (RMB)
|
(0.66)
|
0.92
|
(0.76)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP data
(Refer to "Reconciliation of GAAP to Non-GAAP
Results")
|
|
Non-GAAP net
income/(loss)
attributable to Yintech
|
(31.0)
|
85.6
|
(42.1)
|
(35.8%)
|
(149.2%)
|
|
Non-GAAP
earnings/(loss)
per ADS - diluted (RMB)
|
(0.42)
|
1.14
|
(0.58)
|
|
|
|
"So far in 2019, a challenging mix of geopolitical, economic,
and market dynamics has persisted and weaker than expected investor
confidence amid the complex
international environment contributed to the headwinds
we faced in this quarter. Despite the increasing macro
uncertainties, we saw exciting improvement in our business. We
delivered the strongest quarterly results for our core business
since the fourth quarter of 2017," said Mr. Wenbin Chen, Chairman and CEO of Yintech.
"Our net commissions and fees generated from five core
businesses under commodities and securities services reached the
high level of RMB309 million, an
increase of 41.8% year-over-year and 25.4% quarter-over-quarter.
Revenues from commissions, interest income and other revenues were
RMB329 million, 21.9% higher than our
high-end guidance. Trading losses were RMB40
million, 42.9% to 60.0% lower than our previous
guidance."
"We are pleased to see that our strategic deployment on asset
management and our prioritization of solid portfolio performance
over pure scale and commercialization has paid off. Our asset
management company ranked Top Ten of Private Equity Funds in
China for the first half of 2019
by Wind, maintaining its continuum of remarkable performance."
"While sustaining our incremental growth on core business, we
continued our execution on customer centric strategies in various
ways, in particular our enhanced efforts on investment in AI and
big data technology and its adoption in financial trading products,
aiming to expand customer base and improve customers' satisfaction
and loyalty. The various intelligent investment advisory products
that our financial innovation lab had developed and implemented
several quarters ago begun to bear fruits. Greater efforts on
constantly upgrading the existing products in our apps and broader
adoption to cover more of financial trading products such as Gold
T+D are well on track."
"In the second quarter, we continued to optimize our business
and enhance our bottom-line while maintaining our core
competitiveness on technology. Our ongoing focus on driving
efficiency while managing our spending in a disciplined manner
enabled us to further improve ratio of expenses, drive operation
leverage and ultimately improve earnings. We are encouraged to see
our net commissions and fees increased 42% year-over-year and 25%
over the last quarter, whereas our total cost and expenses
increased only 4% and 7% respectively. Our net loss attributable to
ordinary shareholders from five core businesses represented a
substantial decline from the first quarter."
"In addition, under the current market conditions maintaining an
asset-light business model and effective balance sheet management
remained one of our priorities as we aim to maintain appropriate
liquidity to support anticipated business expansion. We
believe this along with our strategies in strengthening our
investment and research as well as technology capabilities will
help us capture greater market opportunities as investor sentiment
and the industry recover," Mr. Chen concluded.
Second Quarter 2019 Financial Results
Revenues for the quarter were RMB289.1 million (US$42.1
million), compared with RMB263.3
million in the same quarter last year and RMB454.3 million in the previous quarter. The
sequential decrease was mainly the result of trading losses of
RMB40.0million incurred from
market-sensitive public equity investment comparing with trading
gains of RMB187.1 million in the
previous quarter. This was partially offset by the significant
increases in net commissions and fees from both commodities and
securities. The year-over-year increase was mainly attributable to
increase in net commissions and fees.
Net commissions and fees for the quarter were
RMB309.0 million (US$45.0 million), representing an increase of
41.8% year-over-year and 25.4% from the previous quarter. The
year-over-year and sequential increases were primarily due to the
increase in trading volumes of both commodities and securities
services.
Customer trading volume for the quarter was RMB571.6 billion (US$83.3 billion), representing an increase of
39.8% year-over-year and 58.5% from the previous quarter.
Customer trading volume for
commodities (representing customer trading volume of spot
and futures commodities) was RMB489.8
billion (US$71.3 billion)
during the quarter, an increase of 20.8% year-over-year and 55.3%
from the previous quarter. The increases were primarily
attributable to significant increases in trading volumes of
overseas futures commodities thanks to our strong execution on
strategies of diversifying our products and services offerings to
address the growing needs of our clients.
Net commissions and fees from commodities
services for the quarter were RMB174.8 million (US$25.5
million), an increase of 33.9% year-over-year and 41.3% from
the previous quarter primarily due to the increase in trading
volumes for commodities.
Effective fee rate for commodities (representing net
commissions and fees from commodities services as a percentage of
customer trading volume for commodities) for the quarter
was 0.036%, compared with 0.032% in the same quarter last year
and 0.039% in the previous quarter.
Customer trading volume for securities (representing
customer trading volume of overseas securities brokerage) was
RMB81.8 billion (US$11.9 billion) during the quarter, an increase
of 2456.3% year-over-year and 80.6% from the previous quarter. The
robust growth demonstrates the effectiveness of the Company's
strategy to expand its securities business.
Net commissions and fees from securities
services for the quarter were RMB134.2 million (US$19.5
million), an increase of 53.5% year-over-year and 9.3% from
the previous quarter due to the increase in trading volumes for
securities.
Effective fee rate for securities (representing net
commissions and fees from overseas securities brokerage services as
a percentage of customer trading volume for overseas
securities brokerage) for the quarter was 0.053%, compared
with 0.443% in the same quarter last year and 0.056% in the
previous quarter.
Expenses for the quarter were RMB328.1 million (US$47.8 million), an increase
of 4.3% year-over-year and 7.1% from the previous quarter.
Net loss for the quarter was RMB45.2 million (US$6.6
million), compared with net loss of RMB44.2 million in the same quarter last
year and net income of RMB75.1 million in the previous quarter. The
sequential decrease was primarily the result of trading losses of
RMB 40.0 million generated from
market-sensitive public equity investment comparing with trading
gains of RMB187.1 million in the
previous quarter.
Net loss attributable to Yintech for the quarter was
RMB55.0 million (US$8.0 million), compared with net loss of
RMB48.5 million in the same
quarter last year and net income of RMB69.2 million in the previous
quarter.
Non-GAAP net loss attributable to Yintech (Refer
to "Reconciliation of GAAP to Non-GAAP Results") for the
quarter was RMB42.1 million
(US$6.1 million), compared with net
loss of RMB31.0 million in the
same quarter last year and net income of RMB85.6 million in the previous
quarter.
Diluted loss per ADS for the quarter was
RMB0.76 (US$0.11), compared with diluted loss per ADS of
RMB0.66 in the same quarter last
year and diluted earnings per ADS of RMB0.92 in the previous quarter.
Non-GAAP diluted loss per ADS (Refer to
"Reconciliation of GAAP to Non-GAAP Results") for the quarter
was RMB0.58 (US$0.08), compared
with non-GAAP diluted loss per ADS of RMB0.42 in the same quarter last year and
non-GAAP diluted earnings per ADS of RMB1.14 in the previous quarter.
As of June 30, 2019, the Company
had RMB1,858.2 million (US$270.7 million) in cash and short term
investments, compared with RMB1,753.2
million as of March 31,
2019.
Business Outlook
Based on the information available as of the date of this press
release, Yintech provides the following outlook, which reflects the
Company's current and preliminary view and is subject to
change:
2019 Third Quarter Guidance
- Revenues from commissions, interest income and other revenues
will be the range of RMB380 million
to RMB400 million.
- Revenues from trading gains/loss will be in the range of
(RMB10 million) to (RMB30 million).
Share Repurchase Program
On May 31, 2019, the Company
announced a share repurchase program whereby Yintech is authorized
to repurchase up to US$20 million of
its issued and outstanding ADSs during the following 12-month
period. As of June 30, 2019, the
Company had purchased an aggregate of 55,043 ADSs for a total
amount of slightly over US$250
thousand since June 1,
2019.
Discussion of Non-GAAP Financial Measures
In addition to disclosing financial results prepared in
accordance with U.S. GAAP, the Company's earnings release contains
non-GAAP financial measures that exclude the effects of all forms
of share-based compensation, as well as impairment and amortization
of intangible assets and/or goodwill in relation to the
acquisition of Gold Master. The reconciliation of these non-GAAP
financial measures to the nearest GAAP measures is set forth in the
table captioned "Reconciliation of GAAP to Non-GAAP Results"
below.
The non-GAAP financial measures disclosed by the Company should
not be considered a substitute for financial measures prepared in
accordance with U.S. GAAP. The financial results reported in
accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP
results should be carefully evaluated. The non-GAAP financial
measure used by the Company may be prepared differently from, and
therefore may not be comparable to, similarly titled measures used
by other companies.
When evaluating the Company's operating performance in the
periods presented, management reviewed the non-GAAP net income and
non-GAAP EPS results reflecting adjustments to exclude the impact
of share-based compensation as well as impairment and amortization
of intangible assets and/or goodwill in relation to the
acquisition of Gold Master to supplement U.S. GAAP financial data.
As such, the Company believes that the presentation of the non-GAAP
net income and the diluted non-GAAP earnings per ADS provides
important supplemental information to investors regarding financial
and business trends relating to the Company's financial condition
and results of operations in a manner consistent with that used by
management. Pursuant to U.S. GAAP, the Company recognized
significant amounts of expenses for the restricted shares and share
options, as well as amortization of intangible assets in relation
to the acquisition of Gold Master in the periods presented. The
Company utilized the non-GAAP financial results to make financial
results comparable period to period and to better understand its
historical business operations.
Currency Conversion
This announcement contains translations of certain Renminbi
amounts into U.S. dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to U.S. dollars were made at the exchange rate
of RMB6.865 to US$1.00, as set
forth in the H.10 statistical release of the Federal Reserve Board
on June 28, 2019. No representation is intended to imply that
these 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 Information
The Company will host a conference call to discuss the earnings
at 8:00 a.m. U.S. Eastern Time on
Friday, August 30, 2019 (8:00 p.m. Hong Kong Time on the same day).
Details of the conference call are as follows:
International:
|
1-412-902-4272
|
U.S. Toll
Free:
|
1-888-346-8982
|
Mainland China Toll
Free:
|
4001-201203
|
Hong Kong:
|
852-301-84992
|
Hong Kong Toll
Free:
|
800-905945
|
Passcode:
|
Yintech
|
A telephone replay of the call will be available after the
conclusion of the conference call through 11:59 p.m. Hong Kong Time, September 6,
2019.
Dial-in numbers for the replay are as follows:
International
Dial-in:
|
1-412-317-0088
|
U.S. Toll
Free:
|
1-877-344-7529
|
Passcode:
|
10134420
|
A live and archived webcast will be available on the Investor
Relations section of Yintech's website
at http://ir.yintech.net/.
Safe Harbor Statement
All statements other than statements of historical fact
contained in this release, including statements regarding future
results of the operations of the Company are forward-looking
statements, which are made under the "safe harbor" provisions of
the U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to a number of risks,
uncertainties and assumptions that could cause actual results to
differ materially. Factors that might cause or contribute to such
differences include, but are not limited to: the Company's ability
to effectively acquire and retain its customers; the Company's
diversification of its business among different commodity
exchanges; the adjustments in commissions and other fees set by
relevant commodity exchanges; the Company's ability to constantly
upgrade its technology platform and software; general market
conditions of online spot commodity trading industry and stock
market; intense competition among service providers in this
industry; the Company's relatively short operating history; the
price of the Company's ADSs and changing market conditions for its
ADSs; acquisition-related risks, including unknown liabilities and
integration risks; as well as those risks detailed from time to
time under the caption "Risk Factors" and elsewhere in the
Company's Securities and Exchange Commission filings and reports,
including in the Company's annual report on Form 20-F for the year
ended December 31, 2018. In addition,
the Company operates in a very competitive and rapidly changing
environment. New risks emerge from time to time. It is not possible
for the management to predict all risks, nor can the Company assess
the impact of all factors on its business or the extent to which
any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements that the Company may make. In light of these risks,
uncertainties and assumptions, the forward-looking events and
circumstances discussed in this release are inherently uncertain
and may not occur, and actual results could differ materially and
adversely from those anticipated or implied in the forward-looking
statements. Accordingly, you should not rely upon forward-looking
statements as predictions of future events. The Company does not
undertake any obligation to update publicly or revise any
forward-looking statements for any reason after the date of this
release, nor to conform these statements to actual results, future
events, or to changes in the Company's expectations.
About Yintech
Yintech (NASDAQ: YIN) is a leading provider of investment
and trading services for individual investors in China.
Yintech strives to provide best-in-class financial information,
investment tools and services to its customers by leveraging
financial technology and mobile platforms. Currently, Yintech is
focused on the provision of gold and other commodities trading
services, securities advisory services, securities information
platform services, overseas securities trading services and asset
management services.
Operational
Highlights
|
|
|
For the three
months ended
|
|
June 30,
2018
|
March 31,
2019
|
June 30,
2019
|
|
|
|
|
Customer trading
volume (in RMB billion)[1]
|
|
|
|
Commodities
services
|
405.6
|
315.3
|
489.8
|
Securities
services
|
3.2
|
45.3
|
81.8
|
Total
|
408.8
|
360.6
|
571.6
|
|
|
|
|
Net commissions
and fees (in RMB million)
|
|
|
|
Commodities
services[2]
|
130.5
|
123.7
|
174.8
|
Securities
services[3]
|
87.4
|
122.8
|
134.2
|
Total
|
217.9
|
246.5
|
309.0
|
|
|
|
|
Effective fee
rate[4]
|
0.035%
|
0.041%
|
0.038%
|
Commodities
services[5]
|
0.032%
|
0.039%
|
0.036%
|
Securities
services[6]
|
0.443%
|
0.056%
|
0.053%
|
|
|
|
|
Active
accounts[7]
|
24,141
|
22,091
|
23,062
|
|
|
|
|
Tradable
accounts[8]
|
119,282
|
134,793
|
138,251
|
|
|
|
|
Note
|
|
|
|
[1] Represent
customer trading volume of spot and futures commodities as well as
overseas securities.
|
[2] Represent net
commissions and fees earned from customer trading of spot and
futures commodities contracts.
|
[3] Represent net
commissions and fees earned by providing securities advisory
services, securities information
platform services, overseas securities trading services and asset
management services to customers.
|
[4] Represent net
commissions and fees from commodities and overseas securities
brokerage services as a
percentage of customer trading volume.
|
[5] Represent
net commissions and fees from commodities services as a percentage
of customer trading volume for
commodities.
|
[6] Represent net
commissions and fees from overseas securities brokerage services as
a percentage of customer
trading volume for overseas securities brokerage.
|
[7] Refer to a
regular customer account that executed at least one trade of spot
and futures commodities contracts or
a customer account that executed at least one trade of overseas
securities through us during the period.
|
[8] Refer to a
regular customer account that has been activated for trading of
spot and futures commodities contracts
or a customer account that has been activated for trading of
overseas securities and has remained tradable as of the
end of the given period.
|
Consolidated
Statements of Comprehensive Income
|
In RMB '000, except
otherwise specified
|
|
|
For the Three
Months Ended
|
|
June
30, 2018
|
March
31, 2019
|
June
30, 2019
|
Revenue
|
|
|
|
Commission
|
217,916
|
246,490
|
308,972
|
Trading gains and
(losses)
|
16,195
|
187,090
|
(39,955)
|
Interest
income
|
799
|
7,583
|
8,038
|
Other
revenues
|
28,408
|
13,171
|
12,019
|
|
263,318
|
454,334
|
289,074
|
Expenses
|
|
|
|
Commission
expense
|
-
|
(67)
|
(303)
|
Employee compensation
and
benefits
|
(194,004)
|
(185,279)
|
(204,640)
|
Advertising and
promotion expenses
|
(52,312)
|
(64,039)
|
(66,616)
|
Information
technology
and communications
|
(7,336)
|
(6,430)
|
(11,839)
|
Occupancy and
Equipment Expenses
|
(30,815)
|
(25,399)
|
(25,319)
|
Taxes and
surcharges
|
(1,132)
|
(1,158)
|
(1,282)
|
Intangible asset
amortization
|
(15,393)
|
(6,995)
|
(7,006)
|
Other
expenses
|
(13,645)
|
(17,012)
|
(11,110)
|
|
(314,637)
|
(306,379)
|
(328,115)
|
|
|
|
|
Profit/(loss)
before
income taxes
|
(51,319)
|
147,955
|
(39,041)
|
Income tax
(expenses)/benefit
|
7,129
|
(72,872)
|
(6,207)
|
Net
income/(loss)
|
(44,190)
|
75,083
|
(45,248)
|
Less: Net
income/(loss)
attributable to
noncontrolling interests
|
4,330
|
5,868
|
9,797
|
Net income/(loss)
attributable to Yintech
|
(48,520)
|
69,215
|
(55,045)
|
Other
comprehensive
income/(loss)
|
7,935
|
(13,183)
|
13,630
|
Comprehensive
income/(loss)
attributable to Yintech
|
(40,585)
|
56,032
|
(41,415)
|
|
|
|
|
|
Earnings/(loss)
per
ADS[9](RMB)
|
|
|
|
Basic
|
(0.66)
|
0.95
|
(0.76)
|
Diluted
|
(0.66)
|
0.92
|
(0.76)
|
|
|
|
|
Weighted
average
number of shares
('000)
|
|
|
|
Basic
|
1,460,962
|
1,454,486
|
1,457,219
|
Diluted
|
1,460,962
|
1,505,934
|
1,457,219
|
|
|
|
|
Number of
shares
outstanding at the
end of the period
('000)
|
1,410,544
|
1,428,667
|
1,430,971
|
|
|
|
|
Note
|
[9] Each ADS
represents 20 ordinary shares.
|
Consolidated
Balance Sheets
|
In RMB '000, except
otherwise specified
|
|
|
March 31,
2019
|
June 30,
2019
|
Assets
|
|
|
Cash
|
226,174
|
212,257
|
Entrusted bank
balances held on behalf of
customers
|
46,040
|
70,152
|
Short term
investments
|
1,527,054
|
1,645,981
|
Deposits with
clearing organizations
|
15,519
|
22,761
|
Amount due from
related parties
|
25,000
|
25,000
|
Equipment and
leasehold improvements
|
21,685
|
16,947
|
Deferred tax
assets
|
12,303
|
19,657
|
Goodwill
|
637,128
|
637,142
|
Intangible
assets
|
323,301
|
316,658
|
Accounts
receivable
|
152,416
|
176,222
|
Operating lease
right-of-use assets
|
86,078
|
74,746
|
Other
assets
|
299,183
|
220,537
|
Equity method
investments
|
24,726
|
24,677
|
Total
assets
|
3,396,607
|
3,462,737
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
Amount due to related
parties
|
7,899
|
7,274
|
Deferred tax
liabilities
|
114,275
|
95,635
|
Income tax
payable
|
102,223
|
133,160
|
Accounts
payable
|
64,297
|
102,730
|
Accrued employee
benefits
|
161,808
|
184,495
|
Operating lease
liabilities
|
81,690
|
70,149
|
Other
liabilities
|
161,029
|
197,771
|
Total
liabilities
|
693,221
|
791,214
|
|
|
|
Equity attributable
to Yintech's shareholder
|
2,589,787
|
2,548,127
|
Equity attributable
to non-controlling interests
|
113,599
|
123,396
|
Total
shareholders' equity
|
2,703,386
|
2,671,523
|
|
|
|
Total liabilities
and shareholders' equity
|
3,396,607
|
3,462,737
|
Reconciliation of
GAAP to Non-GAAP Results
|
In RMB '000, except
otherwise specified
|
|
|
|
For the three
months ended
|
|
June 30,
2018
|
March 31,
2019
|
June 30,
2019
|
|
|
|
|
Net income/(loss)
attributable to Yintech
|
(48,520)
|
69,215
|
(55,045)
|
Add: Share-based
compensation
|
7,180
|
11,668
|
8,233
|
Add: Amortization of
intangible
assets in relation
to the acquisition of Gold Master,
net of tax effect
|
10,303
|
4,737
|
4,737
|
Non-GAAP net
income/(loss)
attributable to Yintech
|
(31,037)
|
85,620
|
(42,075)
|
|
|
|
|
Non-GAAP
earnings/(loss) per ADS[9] (RMB)
|
|
|
|
Basic
|
(0.42)
|
1.18
|
(0.58)
|
Diluted
|
(0.42)
|
1.14
|
(0.58)
|
|
|
|
|
Note
|
|
|
|
[9] Each ADS
represents 20 ordinary shares.
|
For investor and media inquiries, please
contact:
Yvonne Young
Phone: +86 21 2028 9009 ext 8270
E-mail: ir@yintech.cn
View original
content:http://www.prnewswire.com/news-releases/yintech-reports-second-quarter-2019-unaudited-financial-results-300909634.html
SOURCE Yintech Investment Holdings Ltd.