SHANGHAI, May 31, 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 first quarter of 2019.
First Quarter 2019 Financial Highlights
|
For the quarter
ended
|
|
In RMB million,
except
otherwise specified
|
March 31,
2018
|
December 31,
2018
|
March 31,
2019
|
Q1'19 vs.
Q1'18
|
Q1'19 vs.
Q4'18
|
|
|
Revenues
|
268.5
|
295.2
|
454.3
|
69.2%
|
53.9%
|
|
Net commissions and
fees
|
242.6
|
273.4
|
246.5
|
1.6%
|
(9.8%)
|
|
Net commissions and
fees
from securities services
|
45.1
|
120.9
|
122.8
|
172.3%
|
1.6%
|
|
Net income/(loss)
attributable to
Yintech
|
(50.3)
|
(727.7)
|
69.2
|
237.6%
|
109.5%
|
|
Earnings/(loss) per
ADS -
diluted (RMB)
|
(0.71)
|
(10.39)
|
0.92
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP data
(Refer to "Reconciliation of GAAP to Non-GAAP
Results")
|
|
Non-GAAP net
income/(loss)
attributable to Yintech
|
(29.1)
|
(106.8)
|
85.6
|
394.2%
|
180.1%
|
|
Non-GAAP
earnings/(loss)
per ADS - diluted (RMB)
|
(0.41)
|
(1.52)
|
1.14
|
|
|
|
"It was an excellent quarter both from capital market and
company perspectives. The equity
markets garnered momentum during the quarter, with China A shares
rising over 30%, delivering its highest increase in the past three
years, and the S&P 500 posting its best first quarter since
1998. Investors' engagement in our securities services was
enthusiastic under this bullish market. Benefiting from the market
rally and our ability to capitalize on the market opportunities our
asset management team delivered outstanding gains and contributed
significantly to the financial results. Both factors drove our
record revenues of RMB 454.3 million,
up 69% year-over-year and 54% sequentially and strong profitability
as well for the first time since we transited to a comprehensive
financial service provider beginning in the second half of 2017.
The strength of these results more than offset the slight decline
in commodity trading revenues,"
said Mr. Wenbin Chen, Chairman and
CEO of Yintech.
"In the first quarter, our asset management business not only
delivered outstanding results to both topline and bottom-line
growth, but also received industry recognitions thanks to its
remarkable performance. In total, we have received 13 high rankings
in competitions for the first quarter. For the first two months of
2019 our asset management company
ranked No.5 of the 'Top 10 Equity-Oriented Private Equity
Companies' among over 10,000 peers in China and the ranking was further lifted to
No.3 for the first three month period. Our convertible securities
funds also delivered outstanding performance, one of which was
rated No.6 in February and remained Top 10 in the first quarter out
of 1,500 competitors. On average our equity funds and convertible
bond products largely outperformed SCI 300 index and other major
comparable indexes. We see this recognition as an affirmation of
our emphasis on professionalism, value, service, and trust as we
attract and support a growing share of China investable wealth. We believe our
investment insights and skills will continue to contribute to our financial performance as well as
business growth in the mid-to-long run."
"Under the mission of leveraging our expertise, technology, and
people to bring greater ease, knowledge, fun and accessibility to
investment and trading to investors, we remain steadfast in our
'Client First' approach to diligently seeking to offer accessible
value-add products and services that provide investors with greater
choices and values. Our Fintech innovation lab rounded out our
value-add services continuum in the first quarter with the
completion of 'Intelligent Investor'- compelling stock screening
software, focusing on finding undervalued stock against its
intrinsic value. Additionally, our advanced technology efforts,
such as 'Stock Profiling', a 360 degree stock analysis application
targeting A share, Hong Kong and
US stocks, are gaining traction with clients and we will continue
to expand the ways in which our clients can interact with us
online, bringing more enjoyment and ultimately more gains to
clients and the company."
"At the same time, we're expected to see benefits of our
successful acquisition of Type 2 and Type 5 regulatory licenses
from the Hong Kong Securities and Futures Commission, which
permitted Forthright Securities to deal in futures and advise on
futures contracts. In securing these licenses, our
clients can trade multiple asset classes including securities
and futures trading and continue to
rely on our leading technology and trading expertise
combined with specialist in-depth insight into the securities and
futures industry, which is an important component of our value
proposition."
First Quarter 2019 Financial Results
Revenues for the quarter were RMB454.3 million (US$67.7
million), compared with RMB268.5
million for the same quarter
last year and RMB295.2 million
for the previous quarter. The
year-over-year and sequential increases were mainly attributable to
increase in net commissions and fees from securities services as
well as trading gains generated from our asset management
business.
Net commissions and fees for the quarter were
RMB246.5 million (US$36.7 million), representing an increase of
1.6% year-over-year and a decrease of 9.8% sequentially. The
year-over-year increase was primarily due to the increase in
securities services partially offset by the decrease in commodities
services. The sequential decrease was mainly resulted from lower trading volume of
commodities from the previous quarter.
Net commissions and fees from commodities
services for the quarter were RMB123.7 million (US$18.4
million), a decrease of 18.9% from the previous quarter,
primarily as a result of decrease in customer trading volume for
futures commodities.
Customer trading volume for
commodities (representing customer trading volume of spot
and futures commodities) was RMB315.3
billion (US$47.0 billion)
during the quarter, a decrease of 36.9% year-over-year and 23.8%
from the previous quarter primarily due to low volatility of gold
in the first quarter.
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 0.039%, compared with 0.040% in the same quarter last year
and 0.037% in the previous quarter.
Net commissions and fees from securities
services for the quarter were RMB122.8 million (US$18.3
million), an increase of 172.3%
year-over-year and 1.6% from the previous quarter, primarily
due to growth of overseas brokerage services in more favorable
market conditions relative to the previous quarter. The robust
growth demonstrates the effectiveness of the Company's strategy to
expand its securities business and its ability to execute.
Expenses for the quarter were RMB306.4million (US$45.7 million), a decrease
of 0.9% from RMB309.1
million in the same quarter last year and a decrease of
70.6% from RMB1,041.2 million in the
previous quarter. The sequential decrease was mainly attributable
to a non-cash impairment charges of RMB639.0
million recognized in the fourth quarter of 2018.
Net income for the quarter was RMB75.1 million (US$11.2 million), compared with
net loss of RMB63.1 million in the same quarter last
year and net loss of RMB732.2 million in the previous
quarter.
Net income attributable to Yintech for the quarter
was RMB69.2 million (US$10.3 million), compared with net loss of
RMB50.3 million in the same
quarter last year and net loss of RMB727.7 million in the previous
quarter.
Diluted earnings per ADS for the quarter was
RMB0.92 (US$0.14), compared with diluted loss per ADS of
RMB0.71 in the same quarter last
year and diluted loss per ADS of RMB10.39 in the previous quarter.
Non-GAAP net income attributable to Yintech for the
quarter was RMB85.6 million
(US$12.8 million), compared with net
loss of RMB29.1 million in the
same quarter last year and net loss of RMB106.8 million in the previous
quarter.
Non-GAAP diluted earnings per ADS for the quarter
was RMB1.14 (US$0.17), compared
with non-GAAP diluted loss per ADS of RMB0.41 in the same quarter last year and
non-GAAP diluted loss per ADS of RMB1.52 in the previous quarter.
As of March 31, 2019, the Company
had RMB1,753.2 million (US$261.2 million) in cash and short term investments, compared with
RMB1,736.9 million as of December 31, 2018.
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 Second Quarter Guidance
- Revenues from commissions, interest income and other revenues
will be within the range of
RMB250 million to RMB270 million.
- Revenues from trading loss will be in the range of
(RMB70 million) to (RMB100 million).
Share Repurchase Program
On May 29, 2018, the Company
announced a share repurchase program whereby Yintech is authorized
to repurchase up to US$30 million of
its issued and outstanding ADSs during the following 12-month
period. As of March 31, 2019, the
Company had purchased an aggregate of 938,410 ADSs.
On May 30, 2019, Yintech's board
of directors approved a share repurchase program ("2019-2020 Share
Repurchase Program"), effective on
June 2, 2019, which authorizes the
Company to repurchase up to US$20
million worth of its issued and outstanding American
Depositary Shares over the course of 12 months. Yintech's proposed
repurchases may be made from time to time on the open market at
prevailing market prices, in privately negotiated transactions, in
block trades and/or through other legally permissible means
depending on market conditions and other factors as well as subject
to relevant rules under United
States securities regulations. All repurchased shares will
be cancelled.
The share repurchase program will be funded with Yintech's
available cash balance. As of March 31, 2019, Yintech had cash and short term
investments of approximately RMB1,753.2
million (US$261.2
million).
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 as 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 income 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 amounts denominated in Renminbi
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 RMB6.7112 to
US$1.00, as set forth in the H.10
statistical release of the Federal Reserve Board
on March 29, 2019. No representation is intended to imply
that these amounts denominated in
Renminbi 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, May 31, 2019 (8:00 p.m. Hong Kong Time on the same day).
Dial-in numbers for the live 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, June 7, 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:
|
10131860
|
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
|
|
March 31,
2018
|
December
31,
2018
|
March 31,
2019
|
|
|
|
|
Customer trading
volume (in RMB billion)[1]
|
|
|
|
Commodities
services
|
499.5
|
413.8
|
315.3
|
Securities
services
|
-
|
3.0
|
45.3
|
Total
|
499.5
|
416.8
|
360.6
|
|
|
|
|
Net commissions
and fees (in RMB million)
|
|
|
|
Commodities
services[2]
|
197.5
|
152.5
|
123.7
|
Securities
services[3]
|
45.1
|
120.9
|
122.8
|
Total
|
242.6
|
273.4
|
246.5
|
|
|
|
|
Effective fee
rate[4]
|
0.040%
|
0.037%
|
0.039%
|
|
|
|
|
Active
accounts[5]
|
31,460
|
20,977
|
22,091
|
|
|
|
|
Tradable
accounts[6]
|
118,382
|
126,539
|
134,793
|
|
|
|
|
Note
|
[1]
Represents customer trading volume of spot and futures commodities
as well as overseas securities, including
RMB413.8 billion in trading volume of spot and futures commodities
in the Fourth quarter of 2018 and RMB315.3
billion in the First Quarter of 2019.
|
[2]
Represents net commissions and fees earned from customer trading of
spot and futures commodities contracts.
|
[3]
Represents 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]
Represents net commissions and fees from commodities services as a
percentage of customer trading volume.
|
[5] Refers
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.
|
[6] Refers
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
|
|
|
March 31,
|
December
31,
|
March 31,
|
|
|
2018
|
2018
|
2019
|
Revenue
|
|
|
|
|
Commission
|
242,572
|
273,379
|
246,490
|
Trading gains
and
|
|
|
|
(losses)
|
|
11,679
|
(9,698)
|
187,090
|
Interest
income
|
705
|
8,540
|
7,583
|
Other
revenues
|
13,512
|
22,956
|
13,171
|
|
|
268,468
|
295,177
|
454,334
|
Expenses
|
|
|
|
|
Commission
expense
|
-
|
(2,012)
|
(67)
|
Employee compensation
and
|
|
|
|
benefits
|
|
(194,310)
|
(228,896)
|
(185,279)
|
Advertising
and
|
|
|
|
promotion
expenses
|
(40,605)
|
(89,008)
|
(64,039)
|
Information
technology
|
|
|
|
and
communications
|
(5,279)
|
(6,705)
|
(6,430)
|
Occupancy
and
|
|
|
|
Equipment
Expenses
|
(27,102)
|
(32,669)
|
(25,399)
|
Taxes and
surcharges
|
(1,321)
|
(1,781)
|
(1,158)
|
Intangible
asset
|
|
|
|
amortization
|
|
(14,771)
|
(13,706)
|
(6,995)
|
Impairment of
goodwill
|
|
|
|
and intangible
asset
|
-
|
(639,000)
|
-
|
Other
expenses
|
|
(25,753)
|
(27,414)
|
(17,012)
|
|
|
(309,141)
|
(1,041,191)
|
(306,379)
|
|
|
|
|
|
Profit/(loss)
before
|
|
|
|
income
taxes
|
(40,673)
|
(746,014)
|
147,955
|
Income tax
|
|
|
|
|
(expenses)/benefit
|
|
(22,419)
|
13,776
|
(72,872)
|
Net
income/(loss)
|
(63,092)
|
(732,238)
|
75,083
|
Less: Net
income/(loss)
|
|
|
|
attributable
to
|
|
|
|
noncontrolling
interests
|
(12,826)
|
(4,586)
|
5,868
|
Net
income/(loss)
|
|
|
|
attributable to
Yintech
|
(50,266)
|
(727,652)
|
69,215
|
Other
comprehensive
|
|
|
|
income/(loss)
|
(4,726)
|
(5,933)
|
(13,183)
|
Comprehensive
income/(loss)
|
|
|
|
attributable to
Yintech
|
(54,992)
|
(733,585)
|
56,032
|
|
|
|
|
|
Earnings/(loss)
per
|
|
|
|
ADS[7](RMB)
|
|
|
|
Basic
|
|
(0.71)
|
(10.39)
|
0.95
|
Diluted
|
|
(0.71)
|
(10.39)
|
0.92
|
|
|
|
|
|
Weighted
average
|
|
|
|
number of
shares
|
|
|
|
('000)
|
|
|
|
|
Basic
|
|
1,417,709
|
1,400,712
|
1,454,486
|
Diluted
|
|
1,452,745
|
1,452,281
|
1,505,934
|
|
|
|
|
|
Number of
shares
|
|
|
|
outstanding at
the
|
|
|
|
end of the
period
|
|
|
|
('000)
|
|
1,411,022
|
1,428,942
|
1,428,667
|
|
|
|
|
|
Note
|
|
|
|
|
[7]Each
ADS represents 20 ordinary shares.
|
|
Consolidated
Balance Sheets
|
In RMB '000, except
otherwise specified
|
|
|
|
|
December
31,
2018
|
March 31,
2019
|
Assets
|
|
|
Cash
|
257,789
|
226,174
|
Entrusted bank
balances held on behalf of
customers
|
73,226
|
46,040
|
Short term
investments
|
1,479,109
|
1,527,054
|
Deposits with
clearing organizations
|
34,215
|
15,519
|
Amount due from
related parties
|
25,000
|
25,000
|
Equipment and
leasehold improvements
|
24,316
|
21,685
|
Deferred tax
assets
|
31,239
|
12,303
|
Goodwill
|
637,147
|
637,128
|
Intangible
assets
|
330,247
|
323,301
|
Accounts
receivable
|
180,230
|
152,416
|
Operating lease
right-of-use assets
|
-
|
86,078
|
Other
assets
|
155,648
|
299,183
|
Equity method
investments
|
24,730
|
24,726
|
Total
assets
|
3,252,896
|
3,396,607
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
Amount due to related
parties
|
-
|
7,899
|
Deferred tax
liabilities
|
79,618
|
114,275
|
Income tax
payable
|
95,415
|
102,223
|
Accounts
payable
|
119,469
|
64,297
|
Accrued employee
benefits
|
189,042
|
161,808
|
Operating lease
liabilities
|
-
|
81,690
|
Other
liabilities
|
144,392
|
161,029
|
Total
liabilities
|
627,936
|
693,221
|
|
|
|
Equity attributable
to Yintech's shareholder
|
2,517,229
|
2,589,787
|
Equity attributable
to non-controlling interests
|
107,731
|
113,599
|
Total
shareholders' equity
|
2,624,960
|
2,703,386
|
|
|
|
Total liabilities
and shareholders' equity
|
3,252,896
|
3,396,607
|
Reconciliation of
GAAP to Non-GAAP Results
|
In RMB '000, except
otherwise specified
|
|
|
|
For the three
months ended
|
|
March 31,
2018
|
December
31,
2018
|
March 31,
2019
|
|
|
|
|
Net income/(loss)
attributable to Yintech
|
(50,266)
|
(727,652)
|
69,215
|
Add: Share-based
compensation
|
10,897
|
5,065
|
11,668
|
Add: Amortization of
intangible
assets in relation
to the acquisition of Gold Master,
net of tax effect
|
10,303
|
10,303
|
4,737
|
Add: impairment of
goodwill and
intangible assets in relation
to the
acquisition of Gold Master,
net of tax effect
|
-
|
605,500
|
-
|
Non-GAAP net
income/(loss)
attributable to Yintech
|
(29,066)
|
(106,784)
|
85,620
|
|
|
|
|
Non-GAAP
earnings/(loss) per ADS[7] (RMB)
|
|
|
|
Basic
|
(0.41)
|
(1.52)
|
1.18
|
Diluted
|
(0.41)
|
(1.52)
|
1.14
|
|
|
|
|
Note
|
[7] 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-first-quarter-2019-unaudited-financial-results-300859702.html
SOURCE Yintech Investment Holdings Ltd.