BEIJING, Dec. 21, 2020 /PRNewswire/ -- Xiaobai Maimai Inc.
(NASDAQ: HX), formerly known as Hexindai Inc. ("Xiaobai Maimai",
the "Company", or "we"), a social e-commerce platform in China, today announced its unaudited condensed
financial results for the six months ended September 30,
2020.
The Company amended the ratio of ADS and ordinary shares from
one (1) ADS representing one (1) ordinary share to one (1) ADS
representing three (3) ordinary shares, effective as of
August 24, 2020. Fiscal
year refers to the 12-month period ended March
31.
First Half of Fiscal Year 2021 Highlights
- Number of Average Monthly Mobile Active
Users[1] for the three months ended
September 30, 2020 was 68,750.
- Number of Active Mobile
Buyers[2] was 108,039 as of September 30, 2020.
- Total net revenues in the first half of fiscal year 2021
was approximately US$1.4
million, representing a decrease of 73.7% from approximately
US$5.2 million in the same period of
fiscal year 2020.
[1] "Monthly Mobile
Active Users" refer to the number of user accounts that visited our
platform during a given month.
|
[2] "Active Mobile
Buyers" as of a specified date, refer to the number of (i) users
that have placed at least one order on our platform, and (ii) users
that have been referred by us to third-party e-commerce platforms,
and placed at least one order on such platform.
|
Mr. Xiaobo An, founder, Chairman
and Chief Executive Officer of Xiaobai Maimai, commented, "We are
very excited to begin a new journey after we have disposed of our
peer-to-peer ("P2P") business and transformed into a social e-commerce platform. We launched
our social e-commerce platform in May
2020 and have continued to upgrade our platform to provide
more 'value-for-money' products to users. In addition to the
discounts, coupons and rebates offered by us, our users are also
rewarded with small commissions for every purchase, share, or
recommendation to their social circles. This social e-commerce model has been well
received by users and continues to gain traction. We saw our user
base grow rapidly in recent months and have continued to optimize
our algorithm to identify and introduce more cost-efficient
products to our platform, especially during the 11.11 global
shopping festival, from November
1st to November
11th this year. During the global shopping
festival, we generated an encouraging RMB220.9 million (approximately US$33.3 million) in transaction volume, which we believe is evidence of the
reliability and high performance of our powerful algorithm and
operating system."
"Going forward, we will continue to expand our cooperation with
more domestic e-commerce platforms and online marketplaces to offer
more high-quality and affordable products to our users. We are well
positioned to develop new services in line with the growing demand
in Chinese consumer trends and engage with more scalable targeting
to improve our users' online shopping experience. In the meantime,
we have kicked off an initiative to tap into the emerging
group-buying communities and will also continue to explore other
opportunities such as live streaming e-commerce. With a new
direction leading the way, we are confident of our capabilities to
execute our growth strategies and create long-term value for our
shareholders."
First Half of Fiscal Year
2021 Unaudited Financial Results
Total net revenues were approximately US$1.4 million, representing a decrease of 73.8%
from approximately US$5.2 million in
the same period of fiscal year 2020. The decrease was mainly due to
a decrease in net revenues from our loan recommendation services and interest
income from our micro-lending business.
- Revenue from loan facilitation, post-origination, and other
services was nil, decreased from approximately US$3.2 million in the same period of last fiscal
year as the Company had ceased to issue new loans since
November 2019.
- Revenue from online marketplace services was
approximately US$0.3 million,
compared with nil in the same period of last fiscal year. Such
revenues were generated from our
social e-commerce platform, which was launched in
May 2020.
- Interest income was approximately US$1.1 million, representing a decrease of 45.7%
from US$1.9 million in the same
period of last fiscal year. The decrease was mainly due to a
decrease in loan receivables.
Operating costs and expenses were approximately
US$17.9 million, representing an
increase of 216.4% from approximately US$5.8
million in the same period of fiscal year 2020. The increase
was mainly due to an increase in provision for loans
receivable.
- Service and development expenses were approximately
US$0.3 million, representing a
decrease of 44.6% from approximately US$0.5
million in the same period of last fiscal year. The decrease
was mainly due to a decrease in payroll cost.
- Sales and marketing expenses were approximately
US$0.6 million, representing a
decrease of 42.3% from approximately US$1.0
million in the same period of last fiscal year. The decrease
was mainly due to a decrease in advertising expenses for our P2P
business, as we had ceased issuing new loans since November 2019.
- General and administrative expenses were approximately
US$3.0 million, representing an
increase of 26.2% from approximately US$2.4
million in the same period of last fiscal year. The increase
was mainly due to an increase in professional fees.
- Provision for uncollectable loans receivable was
approximately US$12.9 million,
compared with approximately US$0.2
million in the same period of last fiscal year. The Company
has increased its allowance for uncollectable loans for its
micro-lending business based on recent collection history and in
light of the continuing impact from COVID-19.
- Finance costs were approximately US$1.2 million, representing a decrease of 8.4%
from approximately US$1.3 million in
the same period of last fiscal year. The decrease was mainly due to
the repayment of bank borrowings.
- Share-based compensation was approximately US$0.06 million, representing a decrease of 81.7%
from approximately US$0.3 million in
the same period of last fiscal year. The decrease was due to a
decrease in the number of stock options and restricted share units
expensed in fiscal year 2021.
Total other (expenses) income was approximately
(US$0.8) million, compared with
approximately US$1.1 million in the
same period of fiscal year 2020. The changes partially resulted
from exchange losses.
Net loss from continuing operation was approximately
US$17.5 million, compared with
approximately US$0.5 million from the
same period of fiscal year 2020.
Net loss from discontinued operation was
approximately US$6.1 million,
compared with approximately US$17.1
million from the same period of fiscal year 2020.
Net loss was approximately US$23.6
million, compared with approximately US$17.6 million in the same period of fiscal year
2020.
Basic and diluted net loss per share attributable to
ordinary shareholders was US$0.48,
compared with US$0.36 in the same
period of fiscal year 2020.
Cash and cash equivalents were approximately
US$21.9 million as of September 30, 2020, compared to approximately
US$6.7 million as of March 31, 2020.
Exchange Rate Information
Our business is conducted in China, and our financial records are
maintained in RMB, our functional currency. However, we used the
U.S. dollar as our reporting currency; therefore, periodic reports
made to shareholders will include current period amounts translated
into U.S. dollars using the then-current exchange rates, for the
convenience of the readers. The financial information was prepared
in RMB and then translated into U.S. dollars at period-end exchange
rates in the H.10 statistical release of the Federal Reserve Board
as to assets and liabilities, and average exchange rates as to
revenue and expenses. Capital accounts were translated at their
historical exchange rates when the capital transactions occurred.
The effects of foreign currency translation adjustments were
included as a component of accumulated other comprehensive income
(loss) in shareholders' equity. We make no representation that any
RMB or U.S. dollar amounts could have been, or could be, converted
into U.S. dollars or RMB, as the case may be, at any particular
rate, or at all. The PRC government imposes control over its
foreign currency reserves in part through direct regulation of the
conversion of RMB into foreign exchange and through restrictions on
foreign trade.
Recent Developments
On December 16, 2020, our
wholly-owned subsidiary, Beijing Hexin Yongheng Technology
Development Co., Ltd. ("Hexin Yongheng"), Kuaishangche Automobile
Leasing Co., Ltd. ("Kuaishangche"), a company not directly
associated with the Company but controlled by Mr An, our CEO and
Chairman of the Board and the owner of Kuaishangche, Hexin
E-Commerce Company Limited ("Hexin E-Commerce"), and individual
shareholders of Hexin E-Commerce entered into an assignment and
assumption agreement (the "Agreement"). Pursuant to the Agreement,
Hexin Yongheng agreed to assign and transfer to Kuaishangche the
control over Hexin E-Commerce, in exchange for cash consideration
of RMB 5 million (approximately
US$ 0.7 million) (the "Disposition").
As a result of the Disposition, Kuaishangche has become the primary
beneficiary of and controls Hexin E-Commerce and has assumed all
assets and liabilities of Hexin E-Commerce and subsidiaries owned
or controlled by Hexin E-Commerce, excluding any rights, titles,
interests or claims that Hexin E-Commerce may have in Wusu Hexin
Yongheng Commercial and Trading Co., Ltd. ("Wusu Company"), which
remains as our consolidated variable interest entity. We conducted
our P2P business through our consolidated variable interest entity,
Hexin E-Commerce, and had ceased to offer new loans for online
investors' subscription since November
2019. As a result of the Disposition, we have ceased to
conduct the P2P business and the assets and liabilities of Hexin
E-Commerce and its subsidiaries (excluding Wusu Company) have been
shown as "assets and liabilities held for sale" and their results
of operations have been shown as "discontinued operations." On
December 16, 2020, our shareholders
approved the change of our name to Xiaobai Maimai Inc. to reflect
our business transition.
We launched our social e-commerce platform in May 2020 as a new business line for business
transition, and we will continue to develop and invest in our
platform to take advantage of China's fast-growing e-commerce industry. Our
social e-commerce platform offers high-quality and affordable
products to consumers in China. We
cooperate with major domestic e-commerce platforms and services
marketplaces to select and source goods and services, and reward
users with a small commission for every purchase, share or
recommendation of a product made to friends. Since the launch of
our social e-commerce platform, we
have seen encouraging growth in a number of operating metrics,
including transaction volume,
monthly mobile active users and
active mobile buyers. Although
our e-commerce business is still in the early stages of
development, where further investment is required, we are
proactively executing our strategies to tap into the emerging
group-buying communities and exploring other opportunities in
China's fast-growing e-commerce
industry, such as live streaming e-commerce.
About Xiaobai Maimai Inc.
Xiaobai Maimai Inc. (NASDAQ: HX), formerly known as Hexindai
Inc., ("Xiaobai Maimai" or the "Company"), is a social e-commerce
platform based in Beijing, China.
The Company collaborates with domestic e-commerce platforms and
offers users a wide selection of high-quality and affordable
products on its social e-commerce platform. Leveraging its
cooperation with mainstream e-commerce platforms and online service
marketplaces, the Company continues to generate fast growth for the
business by identifying and introducing cost-efficient products
through its data analytics algorithm and operating system, and
attracts users to its platform with excellent customer service.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are made under the "safe
harbor" provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These statements can be identified by terminology such
as "will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "potential," "continue," "ongoing,"
"targets," "guidance" and similar statements. The Company may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (the "SEC"),
in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Any statements that are
not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. Such factors and risks include, but not limited to the
following: the Company's goals, strategies and expansion plans; its
future business development, financial condition and results of
operations; its ability to attract and retain new users and to
increase revenues generated from repeat users; its expectations
regarding demand for and market acceptance of its products and
services; its relationships and cooperation with e-commerce
platforms and services marketplaces; trends and competition in
China's e-commerce market; the
expected growth of the Chinese e-commerce market; Chinese
governmental policies relating to the Company's corporate structure
and the e-commerce industry; and general economic conditions in
China. Further information
regarding these and other risks, uncertainties or factors is
included in the Company's filings with the SEC. All information
provided in this announcement is current as of the date of this
announcement, and the Company does not undertake any obligation to
update such information, except as required under applicable
law.
For more information, please visit
ir.xiaobaimaimai.com
For investor inquiries, please contact:
The Company
Investor Relations
Ms. Zenabo Ma
Email: ir@xiaobaimaimai.com
Christensen
In China
Mr. Eric Yuan
Phone: +86-10- 5900-1548
E-mail: Eyuan@christensenir.com
In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com
XIAOBAI MAIMAI
INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(in U.S.
dollars)
|
|
|
|
September
30,
|
|
March
31,
|
|
|
|
2020
|
|
2020
|
|
|
|
Unaudited
|
|
Audited*
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
21,901,286
|
|
6,668,104
|
|
Accounts receivable and contract assets, net
|
|
288,776
|
|
1,884
|
|
Loans receivable, net - current
|
|
9,514,745
|
|
12,626,200
|
|
Prepayments and other
assets
|
|
717,591
|
|
469,498
|
|
Other receivable -
current
|
|
8,476,951
|
|
22,252,380
|
|
Assets classified as
held for sale
|
|
7,000,031
|
|
7,122,219
|
|
TOTAL CURRENT
ASSETS
|
|
47,899,380
|
|
49,140,285
|
|
Loans receivable, net - non-current
|
|
4,863,324
|
|
14,070,741
|
|
Long term investments, net
|
|
1,600,000
|
|
1,600,000
|
|
Property, equipment and software, net
|
|
72,140
|
|
92,833
|
|
Right-of-use assets
|
|
-
|
|
708,910
|
|
Other receivable –
non-current
|
|
5,746,146
|
|
9,594,304
|
|
Assets classified as held for sale
|
|
-
|
|
5,312,448
|
|
TOTAL ASSETS
|
|
60,180,990
|
|
80,519,521
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Accrued expenses and other current liabilities
|
|
1,350,857
|
|
1,149,599
|
|
Lease liabilities -
current
|
|
-
|
|
740,753
|
|
Amount due to related parties
|
|
2,697,779
|
|
2,093,684
|
|
Liabilities classified as held for sale
|
|
9,080,306
|
|
8,421,098
|
|
TOTAL
CURRENT LIABILITIES
|
|
13,128,942
|
|
12,405,134
|
|
Note
payable
|
|
20,000,000
|
|
20,000,000
|
|
Lease liabilities -
non-current
|
|
-
|
|
13,498
|
|
TOTAL
LIABILITIES
|
|
33,128,942
|
|
32,418,632
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Ordinary shares
($0.0001 par value; 500,000,000 shares
authorized: 50,023,123 and 49,984,223 shares issued,
48,857,240 and 48,818,340 shares outstanding as of
September 30, 2020 and March 31, 2020, respectively)
|
|
5,002
|
|
4,999
|
|
Additional paid-in
capital
|
|
60,615,047
|
|
60,559,583
|
|
Treasury stock (1,165,883 shares at cost as of September 30,
2020 and March 31, 2020)
|
|
(3,988,370)
|
|
(3,988,370)
|
|
(Deficit)
|
|
(25,017,254)
|
|
(1,429,623)
|
|
Accumulated other
comprehensive loss
|
|
(4,562,377)
|
|
(7,045,700)
|
|
TOTAL
SHAREHOLDERS' EQUITY
|
|
27,052,048
|
|
48,100,889
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
60,180,990
|
|
80,519,521
|
|
|
|
|
|
|
|
*The amounts have
been reclassified to conform with the Company's decision to
classify the P2P business as assets held for
sale.
|
XIAOBAI MAIMAI
INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
|
(in U.S.
dollars)
|
|
|
|
|
|
|
|
|
For the Six Months
Ended
September 30,
|
|
|
|
2020
|
|
2019
|
|
REVENUES
|
|
|
|
|
|
Loan facilitation, post-origination, and other service
|
|
-
|
|
3,234,646
|
|
Commissions from online marketplace, net
|
|
308,733
|
|
-
|
|
Interest income
|
|
1,058,302
|
|
1,948,418
|
|
Business and sales related
taxes
|
|
(13,813)
|
|
(22,175)
|
|
NET
REVENUES
|
|
1,353,222
|
|
5,160,889
|
|
|
|
|
|
|
|
OPERATING COSTS
AND EXPENSES
|
|
|
|
|
|
Service and development
|
|
297,658
|
|
537,162
|
|
Sales and marketing
|
|
557,427
|
|
965,465
|
|
General and administrative
|
|
3,042,292
|
|
2,411,343
|
|
Provision for uncollectable loans receivable
|
|
12,879,801
|
|
203,886
|
|
Finance cost
|
|
1,158,942
|
|
1,265,795
|
|
Share-based compensation
|
|
55,468
|
|
302,686
|
|
Total operating costs
and expenses
|
|
17,991,588
|
|
5,686,337
|
|
LOSS FROM
CONTINUING OPERATIONS
|
|
(16,638,366)
|
|
(525,448)
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
Other
income
|
|
29,351
|
|
1,143,277
|
|
Other
expense
|
|
(830,338)
|
|
(4,290)
|
|
Total other (expense)
income
|
|
(800,987)
|
|
1,138,987
|
|
(LOSS) / INCOME
FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES
|
|
(17,439,353)
|
|
613,539
|
|
PROVISION FOR INCOME
TAXES
|
|
74,035
|
|
1,103,524
|
|
LOSS FROM
CONTINUING OPERATIONS
|
|
(17,513,388)
|
|
(489,985)
|
|
LOSS FROM
DISCONTINUED OPERATIONS, NET OF INCOME TAXES
|
|
(6,074,243)
|
|
(17,068,477)
|
|
NET
LOSS
|
|
(23,587,631)
|
|
(17,558,462)
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
(LOSS) INCOME
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
2,483,323
|
|
(6,483,436)
|
|
|
|
|
|
|
|
COMPREHENSIVE
(LOSS)
|
|
(21,104,309)
|
|
(24,041,898)
|
|
LOSS PER ORDINARY
SHARE
|
|
|
|
|
|
Weighted average
shares used in calculation of basic and diluted net loss per
share
|
|
48,909,532
|
|
48,698,058
|
|
|
|
|
|
|
|
Net loss per share –
basic and diluted
|
|
|
|
|
|
Continuing
operations
|
|
(0.36)
|
|
(0.01)
|
|
Discontinued
operations
|
|
(0.12)
|
|
(0.35)
|
|
Total
|
|
(0.48)
|
|
(0.36)
|
|
|
|
|
|
|
|
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SOURCE Xiaobai Maimai Inc.