SHANGHAI, Dec. 2, 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 third quarter of 2019.
Third Quarter 2019 Financial Highlights
|
For the quarter
ended
|
(In RMB million,
except
otherwise specified)
|
September
30, 2018
|
June 30,
2019
|
September
30, 2019
|
Q3'19 vs.
Q3'18
|
Q3'19 vs.
Q2'19
|
Revenue
|
267.8
|
289.1
|
501.2
|
87.2%
|
73.4%
|
Net commissions and
fees
|
208.0
|
309.0
|
458.7
|
120.5%
|
48.4%
|
Net commissions and
fees
from commodities services
|
123.8
|
174.8
|
325.1
|
162.6%
|
86.0%
|
Net commissions and
fees
from securities services
|
84.2
|
134.2
|
133.6
|
58.7%
|
(0.4%)
|
Net income/(loss)
attributable to
Yintech
|
(36.6)
|
(55.0)
|
98.0
|
367.8%
|
278.2%
|
Earnings/(loss) per
ADS -
diluted (RMB)
|
(0.52)
|
(0.76)
|
1.30
|
|
|
|
|
|
|
|
|
Non-GAAP data
(Refer to "Reconciliation of GAAP to Non-GAAP
Results")
|
Non-GAAP net
income/(loss)
attributable to Yintech
|
(22.3)
|
(42.1)
|
105.9
|
574.9%
|
351.5%
|
Non-GAAP
earnings/(loss)
per ADS - diluted (RMB)
|
(0.32)
|
(0.58)
|
1.40
|
|
|
"We are pleased to see the strategy we adopted to capitalize on
market dynamics to make the most for our clients and the Company
has positioned us to drive strong business and financial growth in
the third quarter," said Mr. Wenbin Chen, Chairman and CEO of
Yintech.
"We delivered the strongest quarterly results since our business
transformation in the second quarter of 2017 in terms of both top
and bottom line growth. Our revenue reached a two-year historical
high of RMB501.2 million,
representing an increase of 87.2% year-over-year and 73.4%
quarter-over-quarter, mainly driven by strong demand for our core
products. While sustaining our incremental growth on core business,
we continued to grow our assets, enhance our efficiency and
ultimately drive our earnings per share growth as we worked to
create long-term shareholder value. To support these outcomes, we
actively deployed capital. We invested for organic growth across
product upgrade, recruiting and technology, and returned capital to
shareholders through share repurchases. In the third quarter, we
delivered over RMB100 million in net
income, which was translated to diluted earnings per ADS of
RMB1.30, the first time of returning
to profitability attributable to our core business growth since two
years ago."
"Going forward, we will remain focused on combining strategy and
execution to better serve our clients. We believe our business and
financial strength will position us well and we look to continue to
drive growth and to create long-term shareholder value," said
Mr. Wenbin Chen, Chairman and CEO of Yintech.
Third Quarter 2019 Financial Results
Revenue for the quarter was RMB501.2 million (US$70.1
million), compared with RMB267.8
million in the same quarter last year and RMB289.1 million in the previous quarter,
representing an increase of 87.2% year-over-year and 73.4% from the
previous quarter. The year-over-year and sequential increases were
mainly attributable to increases in net commissions and fees.
Net commissions and fees for the quarter were
RMB458.7 million (US$64.2 million), representing an increase of
120.5% year-over-year and 48.4% from the previous quarter. The
year-over-year and sequential increases were primarily due to the
increase in trading volumes of commodities services.
Customer trading volume for the quarter was RMB1,034.0 billion (US$144.7 billion), representing an increase of
154.9% year-over-year and 80.9% from the previous quarter,
primarily due to an increase in trading volumes of spot
commodities.
Customer trading volume for
commodities (representing customer trading volume of spot
and futures commodities) was RMB1, 017.6 billion (US$142.4 billion) during the quarter,
representing an increase of 152.4% year-over-year and 107.8% from
the previous quarter. The increases were primarily attributable to
significant increases in trading volumes of spot commodities thanks
to our strong execution on capitalizing on positive market dynamics
on spot gold trading and our ability to address the growing needs
of our clients.
Net commissions and fees from commodities
services for the quarter were RMB325.1 million (US$45.5
million), representing an increase of 162.6% year-over-year
and 86.0% from the previous quarter primarily due to the increase
in trading volumes of spot 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 0.032%, compared with 0.031% in the same quarter last year
and 0.036% in the previous quarter.
Customer trading volume for securities (representing
customer trading volume of overseas securities brokerage) was
RMB16.4 billion (US$2.3 billion) during the quarter, representing
an increase of 556.0% year-over-year and a decrease of 80.0% from
the previous quarter. The volatility in securities trading was
mainly the result of the Company's strategy adjustment to
accommodate the market and policy environment of the corresponding
quarter.
Net commissions and fees from securities
services for the quarter were RMB133.6 million (US$18.7
million), representing an increase of 58.7% year-over-year
and a decrease of 0.4% from the previous quarter due to the reasons
stated above.
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 0.080%, compared
with 0.418% in the same quarter last year and 0.053% in the
previous quarter.
Expenses for the quarter were RMB369.3 million (US$51.7 million), an increase
of 22.2% year-over-year and 12.6% from the previous
quarter.
Net income for the quarter was RMB113.7 million (US$15.9
million), compared with net loss of RMB33.9 million in the same quarter last
year and net loss of RMB45.2 million in the previous quarter.
Net income attributable to Yintech for the quarter
was RMB98.0 million (US$13.7 million), compared with net loss of
RMB36.6 million in the same
quarter last year and net loss of RMB55.0 million in the previous
quarter.
Non-GAAP net income attributable to
Yintech (Refer to "Reconciliation of GAAP to Non-GAAP
Results") for the quarter was RMB105.9 million (US$14.8 million), compared with net loss of
RMB22.3 million in the same
quarter last year and net loss of RMB42.1 million in the previous
quarter.
Diluted earnings per ADS for the quarter was
RMB1.30 (US$0.18), compared with diluted loss per ADS of
RMB0.52 in the same quarter last
year and diluted loss per ADS of RMB0.76 in the previous quarter.
Non-GAAP diluted earnings per ADS (Refer to
"Reconciliation of GAAP to Non-GAAP Results") for the quarter
was RMB1.40 (US$0.20), compared
with non-GAAP diluted loss per ADS of RMB0.32 in the same quarter last year and
non-GAAP diluted loss per ADS of RMB0.58 in the previous quarter.
As of September 30, 2019, the
Company had RMB2,024.5 million
(US$283.2 million) in cash and short
term investments, compared with RMB1,858.2
million as of June 30,
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 Fourth Quarter Guidance
- Revenue from commissions, interest income and other revenue
will be the range of RMB400 million
to RMB420 million.
- Revenue from trading loss will be in the range of (RMB10 million) to RMB (20 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 September 30, 2019, the
Company had purchased an aggregate of 213,194 ADSs for a total
amount slightly over US$1,000
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 RMB7.1477 to US$1.00, as set
forth in the H.10 statistical release of the Federal Reserve Board
on September 30, 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 financial
results at 8:00 a.m. U.S. Eastern
Time on Monday, December 02, 2019
(9:00 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:
|
400 120
1203
|
Hong Kong:
|
852 3018
4992
|
Hong Kong Toll
Free:
|
800 905
945
|
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, December 09, 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:
|
10136976
|
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
|
|
September
30, 2018
|
June 30,
2019
|
September
30, 2019
|
|
|
|
|
Customer trading
volume (in RMB billion)[1]
|
|
|
|
Commodities
services
|
403.1
|
489.8
|
1,017.6
|
Securities
services
|
2.5
|
81.8
|
16.4
|
Total
|
405.6
|
571.6
|
1,034.0
|
|
|
|
|
Net commissions
and fees (in RMB million)
|
|
|
|
Commodities
services[2]
|
123.8
|
174.8
|
325.1
|
Securities
services[3]
|
84.2
|
134.2
|
133.6
|
Total
|
208.0
|
309.0
|
458.7
|
|
|
|
|
Effective fee
rate[4]
|
0.033%
|
0.038%
|
0.033%
|
Commodities
services[5]
|
0.031%
|
0.036%
|
0.032%
|
Securities
services[6]
|
0.418%
|
0.053%
|
0.080%
|
|
|
|
|
Active
accounts[7]
|
17,985
|
23,062
|
27,718
|
|
|
|
|
Tradable
accounts[8]
|
121,969
|
138,251
|
144,674
|
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
|
|
September
30,
2018
|
June 30,
2019
|
September 30,
2019
|
Revenue
|
|
|
|
Commission
|
208,001
|
308,972
|
458,710
|
Trading gains and
(losses)
|
16,157
|
(39,955)
|
21,637
|
Interest
income
|
8,084
|
8,038
|
9,338
|
Other
revenue
|
35,539
|
12,019
|
11,561
|
|
267,781
|
289,074
|
501,246
|
Expenses
|
|
|
|
Commission
expense
|
-
|
(303)
|
(113)
|
Employee compensation
and
benefits
|
(191,082)
|
(204,640)
|
(215,342)
|
Advertising and
promotion expenses
|
(41,340)
|
(66,616)
|
(92,604)
|
Information
technology
and communications
|
(13,101)
|
(11,839)
|
(5,010)
|
Occupancy and
Equipment Expenses
|
(25,224)
|
(25,319)
|
(22,148)
|
Taxes and
surcharges
|
(2,221)
|
(1,282)
|
(1,591)
|
Intangible asset
amortization
|
(12,645)
|
(7,006)
|
(7,005)
|
Other
expenses
|
(16,522)
|
(11,110)
|
(25,480)
|
|
(302,135)
|
(328,115)
|
(369,293)
|
|
|
|
|
Profit/(loss)
before
income taxes
|
(34,354)
|
(39,041)
|
131,953
|
Income tax
(expenses)/benefit
|
486
|
(6,207)
|
(18,283)
|
Net
income/(loss)
|
(33,868)
|
(45,248)
|
113,670
|
Less: Net
income/(loss)
attributable to
non-controlling interests
|
2,732
|
9,797
|
15,646
|
Net income/(loss)
attributable to Yintech
|
(36,600)
|
(55,045)
|
98,024
|
Other
comprehensive
income/(loss)
|
25,262
|
13,630
|
12,991
|
Comprehensive
income/(loss)
attributable to Yintech
|
(11,338)
|
(41,415)
|
111,015
|
|
|
|
|
|
Earnings/(loss)
per
ADS[9](RMB)
|
|
|
|
Basic
|
(0.52)
|
(0.76)
|
1.35
|
Diluted
|
(0.52)
|
(0.76)
|
1.30
|
|
|
|
|
Weighted
average
number of shares
('000)
|
|
|
|
Basic
|
1,406,124
|
1,457,219
|
1,454,572
|
Diluted
|
1,406,124
|
1,457,219
|
1,507,675
|
|
|
|
|
Number of
shares
outstanding at the
end of the period
('000)
|
1,404,479
|
1,430,971
|
1,427,931
|
|
|
|
|
Note
|
[9] Each
ADS represents 20 ordinary shares.
|
Consolidated
Balance Sheets
|
In RMB '000, except
otherwise specified
|
|
|
June 30,
2019
|
September
30,
2019
|
Assets
|
|
|
Cash
|
212,257
|
208,636
|
Entrusted bank
balances held on behalf of
customers
|
70,152
|
52,016
|
Short term
investments
|
1,645,981
|
1,815,836
|
Deposits with
clearing organizations
|
22,761
|
20,568
|
Amount due from
related parties
|
25,000
|
20,000
|
Equipment and
leasehold improvements
|
16,947
|
14,797
|
Deferred tax
assets
|
19,657
|
19,177
|
Goodwill
|
637,142
|
637,175
|
Intangible
assets
|
316,658
|
309,213
|
Accounts
receivable
|
176,222
|
219,651
|
Operating lease
right-of-use assets
|
74,746
|
64,881
|
Other
assets
|
220,537
|
208,821
|
Equity method
investments
|
24,677
|
24,690
|
Total
assets
|
3,462,737
|
3,615,461
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
Amount due to related
parties
|
7,274
|
3,644
|
Deferred tax
liabilities
|
95,635
|
96,503
|
Income tax
payable
|
133,160
|
155,063
|
Accounts
payable
|
102,730
|
80, 516
|
Accrued employee
benefits
|
184,495
|
226,754
|
Operating lease
liabilities
|
70,149
|
60,147
|
Other
liabilities
|
197,771
|
199,589
|
Total
liabilities
|
791,214
|
822,216
|
|
|
|
Equity attributable
to Yintech's shareholder
|
2,548,127
|
2,654,203
|
Equity attributable
to non-controlling interests
|
123,396
|
139,042
|
Total
shareholders' equity
|
2,671,523
|
2,793,245
|
|
|
|
Total liabilities
and shareholders' equity
|
3,462,737
|
3,615,461
|
Reconciliation of
GAAP to Non-GAAP Results
|
In RMB '000, except
otherwise specified
|
|
|
For the three
months ended
|
|
September
30, 2018
|
June 30,
2019
|
September
30, 2019
|
|
|
|
|
Net income/(loss)
attributable to Yintech
|
(36,600)
|
(55,045)
|
98,024
|
Add: Share-based
compensation
|
3,965
|
8,233
|
3,138
|
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
|
(22,332)
|
(42,075)
|
105,899
|
|
|
|
|
Non-GAAP
earnings/(loss) per ADS[9] (RMB)
|
|
|
|
Basic
|
(0.32)
|
(0.58)
|
1.46
|
Diluted
|
(0.32)
|
(0.58)
|
1.40
|
|
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
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content:http://www.prnewswire.com/news-releases/yintech-reports-third-quarter-2019-unaudited-financial-results-300967229.html
SOURCE Yintech Investment Holdings Ltd.