SHANGHAI, May 27, 2020 /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 2020.
First Quarter 2020 Financial Highlights
|
For the quarter
ended
|
(In RMB million,
except
otherwise specified)
|
March 31,
2019
|
|
March 31,
2020
|
Q1'20 vs.
Q1'19
|
Total
Revenues
|
454.3
|
|
490.9
|
8.1%
|
Revenue related to
business
|
259.7
|
|
429.5
|
65.4%
|
Net commissions and
fees
|
246.5
|
|
416.0
|
68.8%
|
Net commissions and
fees
from commodities services
|
123.7
|
|
304.4
|
146.1%
|
Net commissions and
fees
from securities services
|
122.8
|
|
111.6
|
(9.1%)
|
Net income/(loss)
attributable to
Yintech
|
69.2
|
|
88.6
|
28.0%
|
Earnings/(loss) per
ADS -
diluted (RMB)
|
0.92
|
|
1.18
|
|
|
|
|
|
|
Non-GAAP data
(Refer to "Reconciliation of GAAP to Non-GAAP
Results")
|
Non-GAAP net
income/(loss)
attributable to Yintech
|
85.6
|
|
94.0
|
9.8%
|
Non-GAAP
earnings/(loss)
per ADS - diluted (RMB)
|
1.14
|
|
1.25
|
|
|
"As COVID-19 began to spread globally in the first quarter of
2020, economies, businesses and investment encountered a great deal
of uncertainty and financial markets experienced tremendous
volatility as 2020 unfolded. Despite these negative impacts along
with fewer trading days due to the Chinese Lunar New Year and the
COVID-19 pandemic, we began this year on a strong note on our
primary business. Our customer trading volume reached RMB846.5 billion, an increase of 134.7%
year-over-year, and net commissions and fees were RMB416.0 million, an increase of 68.8% from the
same period last year. The numbers of our active account and
tradable account both grew," said Mr. Wenbin Chen, Chairman and CEO of Yintech.
"This growth was attributable to our keen insight on the Chinese
financial market, our investment expertise and our deep
understanding to the Chinese individual investors. As
estimated in the previous quarter, the overwhelming COVID-19
pandemic caused the unusual volatility of the financial market,
which virtually presented more opportunities than risks to us. This
was especially true in our stellar growth of spot gold trading
business, which reached an all-time high in the quarter,
demonstrating our strong operational capabilities. In addition, our
pure online operation enabled us to grow further and stronger under
the backdrop of offline shifting to online deem to be a tendency.
Further, our flexible business model and our operational agility in
adjusting our business to accommodate with the market dynamics is
becoming more evident."
"As a result, our total revenues once again exceeded
management's high-end guidance, reaching RMB490.9 million, representing a 8.1% increase
year-over-year. Our net income attributable to shareholders
increased by 28% to RMB88.6 million.
If comparing net income generated by our primary business from
commodities and securities, or if excluding the investment gains or
loss, which to a large extent, was correlated to market conditions,
our bottom line improved even further. We continued to build
balance sheet strength. Our total cash and investment
securities remained flattish at RMB2.08
billion, and our total shareholder's equity increased to
RMB2.85 billion," Mr. Wenbin Chen concluded.
First Quarter 2020 Financial Results
Total revenues for the quarter were RMB490.9 million (US$69.3
million), compared with RMB454.3
million in the same quarter last year, representing an
increase of 8.1% year-over-year. The increase was mainly due to
increases in commissions and fees from commodities, in particular
spot commodities trading services. Revenue related to business, which comprises
mainly of net commissions and fees were RMB429.5 million (US$60.7
million), compared with RMB259.7
million in the same quarter last year, representing an
increase of 65.4% year-over-year.
Net commissions and fees for the quarter were
RMB416.0 million (US$58.7 million), representing an increase of
68.8% year-over-year, primarily due to the reason stated above.
Customer trading volume for the quarter was RMB846.5 billion (US$119.5 billion), representing an increase of
134.7% year-over-year primarily due to an increase in trading
volume of spot commodities.
Customer trading volume for
commodities (representing customer trading volume of spot
and futures commodities) was RMB839.3
billion (US$118.5 billion)
during the quarter, an increase of 166.2% year-over-year.
Net commissions and fees from commodities
services for the quarter were RMB304.4 million (US$43.0
million), representing an increase of 146.1% year-over-year,
primarily attributable to an increase in customer trading volume
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 0.039% in the same quarter last
year.
Customer trading volume for securities (representing
customer trading volume of overseas securities brokerage) was
RMB7.2
billion (US$1.0 billion)
during the quarter, representing a decrease of 84.1%
year-over-year. The volatility in securities trading was mainly the
result of the Company's strategy shift to accommodate the market
and policy environment of the corresponding quarter on an ongoing
basis.
Net commissions and fees from securities
services for the quarter were RMB111.6 million (US$15.8
million), representing a decrease of 9.1% year-over-year due
to the reason 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 0.128%, compared
with 0.056% in the same quarter last year.
Expenses for the quarter were RMB375.6 million (US$53.0 million), an increase
of 22.6% year-over-year mainly because of increase in
advertising and promotion expenses.
Net income for the quarter was RMB89.4 million (US$12.6 million), compared with
net income of RMB75.1 million in the same quarter last
year.
Net income attributable to Yintech for the quarter
was RMB88.6 million (US$12.5 million), compared with RMB69.2 million in the same quarter last
year.
Non-GAAP net income attributable to
Yintech (Refer to "Reconciliation of GAAP to Non-GAAP
Results") for the quarter was RMB94.0 million (US$13.3 million), compared with RMB85.6 million in the same quarter last
year.
Diluted earnings per ADS for the quarter was
RMB1.18 (US$0.17), compared with RMB0.92 in the same quarter last year.
Non-GAAP diluted earnings per ADS (Refer to
"Reconciliation of GAAP to Non-GAAP Results") for the quarter
was RMB1.25 (US$0.18), compared
with RMB1.14 in the same quarter last
year.
As of March 31, 2020, the Company
had RMB2,082.2 million (US$294.1 million) in cash and investment
securities, compared with RMB2,105.4
million as of December 31,
2019.
As of March 31, 2020, total shareholders' equity of Yintech was RMB2,851.4
million (US$402.7 million),
compared with RMB2,771.4 million as of
December 31, 2019.
Share Repurchase Program
On May 30, 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 March 31, 2020, the
Company had purchased an aggregate of 381,166 ADSs for a total
amount slightly over US$1,962
thousand since June 1,
2019.
On May 26, 2020, Yintech's board
of directors approved another share repurchase program ("2020-2021
Share Repurchase Program"), effective on June 2, 2020, which authorized 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, 2020,
Yintech had cash and investment securities of approximately
RMB2,082.2 million (US$294.1 million).
Second Quarter 2020
Guidance
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:
- Revenue related to business will be the range of RMB570 million to RMB590
million, representing an increase of 77.6% to 83.8% compared
to the same period last year.
- Total revenues will be in the range of RMB590 million to RMB610
million, representing an increase of 104.2% to 111.1% compared to the same period last
year.
Impact of COVID-19
The drastic market fluctuations influenced by the COVID-19
pandemic brought a surge in our transaction volume in the first
quarter of 2020. However, it might also cause instabilities of our
customer's investment asset, hence might negatively affect our
business in the future. In addition, the disposable income of
certain of our customers may decrease or have decreased as a result
of the impact of the COVID-19 outbreak, which may also adversely
affect our operations. The extent of related impact on the
Company's financial results and business outlook depends on the
future developments of the global pandemic.
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 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 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 RMB7.0808 to US$1.00, as set
forth in the H.10 statistical release of the Federal Reserve Board
on March 31, 2020. 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
Wednesday, May 27, 2020 (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 03, 2020.
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:
|
10144198
|
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, 2019. 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,
2019
|
March 31,
2020
|
Customer trading
volume (in RMB billion)[1]
|
|
|
Commodities
services[2]
|
315.3
|
839.3
|
Securities
services[3]
|
45.3
|
7.2
|
Total
|
360.6
|
846.5
|
Net commissions
and fees (in RMB million)
|
|
|
Commodities
services[2]
|
123.7
|
304.4
|
Securities
services[3]
|
122.8
|
111.6
|
Total
|
246.5
|
416.0
|
Effective fee
rate[4]
|
0.041%
|
0.037%
|
Commodities
services[5]
Securities
services[6]
|
0.039%
0.056%
|
0.036%
0.128%
|
Active
accounts[7]
|
22,091
|
32,922
|
Tradable
accounts[8]
|
134,793
|
160,762
|
Note
|
[1] Represents customer trading
volume of spot and futures commodities as well as overseas
securities, including
RMB846.5 billion in the First Quarter of 2020.
|
[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 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 securities brokerage.
|
[7] 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.
|
[8] 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 '000, except for
per ADS data and otherwise specified
|
|
|
|
For the Three
Months Ended
|
|
March 31,
2019
RMB
|
March 31,
2020
RMB
|
March 31,
2020
US$
|
Revenues
|
|
|
|
Net commissions and
fees
|
246,490
|
415,973
|
58,747
|
Other
revenue
|
13,171
|
13,561
|
1,915
|
|
|
|
|
Revenue related to
business
|
259,661
|
429,534
|
60,662
|
|
|
|
|
Trading
gains
|
187,090
|
54,836
|
7,744
|
Interest
income
|
7,583
|
6,573
|
928
|
|
454,334
|
490,943
|
69,334
|
Expenses
|
|
|
|
Commission
expense
|
(67)
|
(102)
|
(14)
|
Employee compensation
and
benefits
|
(185,279)
|
(192,538)
|
(27,192)
|
Advertising and
promotion expenses
|
(64,039)
|
(119,633)
|
(16,895)
|
Information
technology
and communications
|
(6,430)
|
(8,382)
|
(1,184)
|
Occupancy and
Equipment Expenses
|
(25,399)
|
(21,424)
|
(3,026)
|
Taxes and
surcharges
|
(1,158)
|
(1,110)
|
(157)
|
Intangible asset
amortization
|
(6,995)
|
(6,481)
|
(915)
|
Current expected
credit losses
|
-
|
(2,013)
|
(284)
|
Other
expenses
|
(17,012)
|
(23,926)
|
(3,379)
|
|
|
(306,379)
|
(375,609)
|
(53,046)
|
|
|
|
|
Profit/(loss)
before
income taxes
|
147,955
|
115,334
|
16,288
|
Income tax
(expenses)/benefit
|
(72,872)
|
(25,975)
|
(3,668)
|
Net
income/(loss)
|
75,083
|
89,359
|
12,620
|
Less: Net
income/(loss)
attributable to
non-controlling interests
|
5,868
|
766
|
108
|
Net income/(loss)
attributable to Yintech
|
69,215
|
88,593
|
12,512
|
Other
comprehensive
income/(loss)
|
(13,183)
|
(5,343)
|
(755)
|
Comprehensive
income/(loss)
attributable to Yintech
|
56,032
|
83,250
|
11,757
|
|
|
|
|
|
Earnings/(loss)
per
ADS[9]
|
|
|
|
Basic
|
0.95
|
1.22
|
0.17
|
Diluted
|
0.92
|
1.18
|
0.17
|
|
|
|
|
Weighted
average
number of shares
('000)
|
|
|
|
Basic
|
1,454,486
|
1,455,493
|
1,455,493
|
Diluted
|
1,505,934
|
1,507,787
|
1,507,787
|
|
|
|
|
Number of
shares
outstanding at the
end of the period
('000)
|
1,428,667
|
1,460,832
|
1,460,832
|
|
|
|
|
|
|
|
|
Note
|
[9] Each ADS represents 20 ordinary
shares.
|
Consolidated
Balance Sheets
|
In '000, except
otherwise specified
|
|
|
December
31,
2019
RMB
|
March 31,
2020
RMB
|
March 31,
2020
US$
|
Assets
|
|
|
|
Cash
|
209,507
|
241,610
|
34,122
|
Entrusted bank
balances held on behalf of
customers
|
89,157
|
97,173
|
13,723
|
Investment
securities
|
1,895,874
|
1,840,587
|
259,941
|
Deposits with
clearing organizations
|
20,330
|
43,129
|
6,091
|
Amount due from
related parties
|
20,000
|
20,000
|
2,825
|
Equipment and
leasehold improvements
|
13,844
|
13,880
|
1,960
|
Deferred tax
assets
|
27,206
|
20,973
|
2,962
|
Goodwill
|
637,835
|
637,835
|
90,080
|
Intangible
assets
|
302,613
|
297,167
|
41,968
|
Accounts
receivable
|
164,391
|
229,550
|
32,419
|
Operating lease
right-of-use assets
|
34,476
|
22,106
|
3,122
|
Other
assets
|
225,302
|
228,417
|
32,257
|
Equity method
investments
|
24,845
|
24,858
|
3,511
|
Total
assets
|
3,665,380
|
3,717,285
|
524,981
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
Amount due to related
parties
|
4,426
|
9,240
|
1,305
|
Deferred tax
liabilities
|
118,469
|
98,252
|
13,876
|
Income tax
payable
|
171,793
|
188,453
|
26,615
|
Accounts
payable
|
114,552
|
108,280
|
15,292
|
Accrued employee
benefits
|
271,965
|
222,177
|
31,377
|
Operating lease
liabilities
|
30,846
|
18,501
|
2,613
|
Deferred
revenue
|
117,110
|
146,359
|
20,670
|
Other
liabilities
|
64,773
|
74,594
|
10,534
|
Total
liabilities
|
893,934
|
865,856
|
122,282
|
|
|
|
|
Equity attributable
to Yintech's shareholder
|
2,618,550
|
2,704,650
|
381,970
|
Equity attributable
to non-controlling
interests
|
152,896
|
146,779
|
20,729
|
Total
shareholders' equity
|
2,771,446
|
2,851,429
|
402,699
|
|
|
|
|
Total liabilities
and shareholders' equity
|
3,665,380
|
3,717,285
|
524,981
|
Reconciliation of
GAAP to Non-GAAP Results
|
In '000, except for
per ADS data and otherwise specified
|
|
|
|
For the three
months ended
|
|
March 31,
2019
RMB
|
March 31,
2020
RMB
|
March 31,
2020
US$
|
|
|
|
|
Net income/(loss)
attributable to Yintech
|
69,215
|
88,593
|
12,512
|
Add: Share-based
compensation
|
11,668
|
671
|
94
|
Add: Amortization of
intangible assets in
relation to the
acquisition of Gold Master,
net of tax effect
|
4,737
|
4,737
|
669
|
Non-GAAP net
income/(loss)
attributable to Yintech
|
85,620
|
94,001
|
13,275
|
|
|
|
|
Non-GAAP
earnings/(loss) per
ADS[9] (RMB)
|
|
|
|
Basic
|
1.18
|
1.29
|
0.18
|
Diluted
|
1.14
|
1.25
|
0.18
|
|
|
Note
|
[9] Each ADS represents 20 ordinary
shares.
|
For investor and media inquiries, please contact:
Yintech
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-2020-unaudited-financial-results-301065846.html
SOURCE Yintech Investment Holdings Ltd.