Yirendai Ltd. (NYSE:YRD) Q1 2019 Earnings Conference Call Transcript

Jul 10, 2019 • 08:00 pm ET


Yirendai Ltd. (NYSE:YRD) Q1 2019 Earnings Conference Call Transcript


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Q & A

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. (Operator Instructions) Your first question comes from the line of John Cai from Morgan Stanley. Please ask your question.

John Cai

Hi. good morning. Thank you. Thanks managements for taking my questions. So I have a few questions on the combined business. So I haven't looked into the details for now, but since the EPA's integrated, based on my comparison with the restated number for 2018 and previous reported numbers. So just wonder if the management can share the more details on the valuation for the acquired business.

Has that changed because it seems the shift between mix and -- the mix between the cash payment and the share payment has some change there, but I'm not sure if the total consideration has changed. So that's the first part. And the second part is I asked in the first quarter the revenue has declined and also the OpEx has declined. So just wonder on, first of all on the loan writing (ph) what do we see the trend for this year, can we see some rebound? And then on the OpEx side, so I'll just wonder what caused the decline -- of the significant decline of the OpEx on a year-on-year basis. And how do we see the cost-income ratio of the combined business going forward.

And the final question is on the regulations. So is there anything more we need to do on the regulations and also how many loan balance do we need to cut for the PDP for the rest of the year. Thank you very much.

Ning Tang

This is Ning. On regulation front, we are going through the inspection process and I mean the whole country and recently the regulators held a meeting to discuss next steps regarding the marketplace lending industry. And we expect that many lower quality companies will have to exit the market. The leading strong companies will have the opportunity to become fully regulated and that process will likely begin in Q4.

Okay, maybe next Wei can talk a little bit about the business trend for the rest of the year (inaudible).

Wei Wang

(Foreign Language)

Lydia Yu

So John, I'll briefly translate that into English. So normally and each year February is our lowest season due to the Chinese New Year holiday. And going into the second half of the year and going to December that should be the peak for our loan volume. And for this year in considerations of regulations and depending on when the P2P online registration will start, we expect this latter half of the year to resume our monthly loan growth of about 30%.

Dennis Cong

Yes. So, I think what Wei means that first half was flattish due to our risk control mode. But both from seasonality perspective, as also business readiness perspective we're seeing a ramp up trend in the second half of the year. And then regarding the consideration, if we take the number of shares and still assume the same