Last Friday Peter and I had the honor of joining the CreditEase team on the NYSE floor to ring the...
In an opinion article, one investor shares emails that have been leaked at Chinese marketplace lender Yirendai (NYSE: YRD); leaked emails show the company's chairman requiring parent company employees at CreditEase to invest in a fund to purchase undisclosed US equities; the author states the fund is likely purchasing shares of YRD and presents his case for shorting the stock; the stock recently saw volatility following China's new regulatory guidance for P2P lenders. Source
Yirendai announced the appointment of Dr. Yichuan Pei as chief credit officer; Dr. Pei was recently vice general manager of Ping An Bank in Shanghai; "Dr. Yichuan Pei is a highly regarded credit expert with extensive experience in the financial industry. We warmly welcome him to join our senior management team. With Dr. Pei assuming his roles as chief credit officer, we are very confident to further enhance our market leading capabilities of credit underwriting and risk management," said Ms. Yihan Fang, chief executive officer of Yirendai. Source
Since Lending Club first went public we have been reviewing their quarterly earnings and have also begun covering OnDeck’s earnings. However,...
Yirendai is being sued by shareholders for inadequate transparency, regulatory activity and risk management regarding Chinese government regulations; the company has requested the court toss the case; the case is focused on worst case revenue predictions that the company says were never realized. Source
Yirendai has announced it will release its Q3 unaudited earnings on November 15, 2016, after the US markets close; analyst Peter Engelwood is reporting that in the last quarter, institutional investors have increased their percentage holding of Yirendai's equity by 1.53%, to a total of 6.20%; the stock has risen from approximately $20 to $29 in the past month. Source
Yirendai launched a new open technology platform at LendIt USA called Yirendai Enabling Platform; the platform will provide solutions for data acquisition, anti-fraud technology and customer acquisition; it is primarily targeted for Chinese marketplace lenders; its capabilities are expected to help marketplace lending companies improve customer experience, increase efficiency, lower costs and mitigate fraud. Source
Yirendai, an affiliate of CreditEase, is the only Chinese online lender publicly traded on a US exchange; its stock price closed at $29.29 prior to the company's earnings announcement after the closing bell on March 15; year-to-date the stock is up 41.36%; the earnings results showed revenue of $154.3 million for the fourth quarter, beating estimates by $19.38 million and increasing 137% from the comparable quarter; revenue for the year was $466.4 million an increase from $190.1 million in 2015; earnings per share for the fourth quarter were $0.91, beating estimates by $0.58 and increasing 287% from the comparable quarter; earnings per share for the year were $2.72 an increase from $0.79. Source
Yirendai released its Q4 2016 earnings after the closing bell on March 15; the Chinese online lender issued a US initial public offering of its stock in December 2015; Lend Academy provides an analysis of the company's Q4 2016 results in their article; the firm has been growing online loan originations by over 100% per year since 2013; mobile has been a significant factor for the company with 98.8% of online volume generated through Yirendai's mobile application and 85% of investors using the mobile application for investment; as a well-established firm, Yirendai is also benefiting from China's P2P regulatory focus and a higher quality portfolio of borrowers and lenders; the firm is expanding its product lines and also offering a new platform as a service product, the Yirendai Enabling Platform; it expects a similar pace of growth in 2017 with minimum projected loan originations of RMB 33 billion ($4.753 billion) compared to RMB 20.28 billion ($2.9 billion) in 2016 and minimum revenue of RMB 4.4 billion ($634 million) compared to RMB 3.2 billion ($466.4 million) in 2016. Source
The new agreement with PICC P&C would provide Yirendai with a performance bond for certain loans originated through their marketplace; PICC P&C agreed to reimburse investors should any losses occur because of due diligence issues; Yihan Fang, CEO of Yirendai, said, "We are pleased to begin working with PICC P&C on performance bond. We believe a strong alliance between our two industry-leading companies will enable us to provide higher quality products and services to our customers to better serve the large demand for personal finance." Source