3Q 2017 Earnings Results December 12, 2017
Safe Harbor Statement and Disclaimer This presentation contains “forward - looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amen ded, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to our unaudited results for the third quarter of 2017,our management quotes and our financial outlook for the fourth quarter of 2017. Our forward-looking statements are not historical facts but instead represent only our belief regarding expected results and events, many of which, by their nature, are inherently uncertain and outside of our control. Our actual results and other circumstances may differ, possibly materially, from the anticipated results and events indicated in these forward-looking statements. Announced results for the third quarter of 2017 are preliminary, unaudited and subject to audit adjustment. In addition, we may not meet our financial outlook for the fourth quarter of 2017 and may be unable to grow our business in the manner planned. We may also modify our strategy for growth. In addition, there are other risks and uncertainties that could cause our actual results to differ from what we currently anticipate, including those relating to demand for, and market acceptance of, our solutions and services; our relationships with users, financial service providers and other parties we collaborate with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. For additional information on these and other important factors that could adversely affect our business, financial condition, results of operations and prospects, please see our filings with the U.S. Securities and Exchange Commission. All information provided in this presentation is as of the date of the presentation. We undertake no obligation to update any forward- looking statement, whether as a result of new information, future events or otherwise, after the date of this presentation, except as required by law. 2 2
3Q 2017 Financial and Operating Highlights Financial Product Financial Service Users Discovery and Recommendation Providers 57.3 MM Loan Applications 2 2,500+ 170K+ 95 MM+ 1.9 MM Financial Financial Average MAU 1 Credit Card Products 2 Service Volume 2,3 Providers 2 255% 88% Revenue 350+ YoY Growth 2 Mobile Traffic 1 Cities 2 1 In 3Q 2017 2 In 9M 2017 3 3 Credit card volume which we generate revenues from, including for both recommendation services and advertising and marketing services 3
Quarterly Key Operating Metrics Number of Loan Applications 1 Credit Card Volume 2 MM MM +119% +496% +469% +197% YoY YoY YoY YoY 1.9 57.3 1.1 0.9 28.2 0.4 10.1 4.7 Q3 2016 Q3 2017 9M 2016 9M 2017 Q3 2016 Q3 2017 9M 2016 9M 2017 1 Refers to the number of loan applications which users had submitted via our platform resulting from our loan recommendation services 2 Refers to the number of credit cards which we generate revenues from including for both recommendation services and advertising and marketing services 4 4
Quarterly Revenue YoY Total Revenue Breakdown RMB MM 861.1 60.6 +255% 110.4 YoY +384% YoY 467.7 29.3 61.8 690.1 242.6 38.2 376.6 46.8 96.7 13.8 157.6 17.6 65.3 Q3 2016 Q3 2017 9M 2016 9M 2017 Credit Card Recommendation Other Services Loan Recommendation 5 5
Quarterly Revenue QoQ Quarterly Total Revenues and Growth Rates RMB MM 86.4% 82.7% 467.7 20.7% 17.8% 256.0 137.3 113.8 96.7 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Total Revenues QoQ Growth 6 6
Quarterly Gross Profit and Gross Margin Gross Profit RMB MM % 91.1% 90.4% 86.1% 80.1% 778.6 426.0 194.4 83.3 Q3 2016 Q3 2017 9M 2016 9M 2017 Gross Profit (RMB mm) Gross Margin (%) 7 7
Quarterly Operating Expenses Research and Development General and Administrative Sales and Marketing Expenses Expenses Expenses RMB MM % RMB MM % RMB MM % 110.8% 97.2% 84.5% 20.3% 82.9% 4.9% 21.8% 4.2% 3.2% 3.1% 9.3% 7.5% 727.9 79.7 26.7 387.8 52.9 268.7 15.1 34.9 12.0 19.6 94.0 4.1 Q3 2016 Q3 2017 9M 2016 9M 2017 Q3 2016 Q3 2017 9M 2016 9M 2017 Q3 2016 Q3 2017 9M 2016 9M 2017 % of Total Revenues % of Total Revenues % of Total Revenues Note: GAAP basis 8 8
Quarterly Net Income and Adjusted Net Income Adjusted Net Income 1 Net Income RMB MM % % RMB MM (3.5)% (3.6)% (7.4)% (16.3) (16.7) (7.6)% (33.3) (34.4) (34.5)% (35.6)% (64.1) (65.7) (55.7)% (57.3)% (135.1) (139.0) Q3 2016 Q3 2017 9M 2016 9M 2017 Q3 2016 Q3 2017 9M 2016 9M 2017 Adjusted Net Income % of Total Revenues Net Income % of Total Revenues 1 Non-GAAP basis; excluding stock-based compensation expense. 9 9
Appendix 10 10
Selected Unaudited Income Statement Data For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2017 2017 2016 2017 2017 (in Millions) (RMB) (RMB) (USD) (RMB) (RMB) (USD) Revenues: Loan Recommendation Services 65.3 376.6 56.6 157.6 690.1 103.7 Credit Cards Recommendation Services 17.6 61.8 9.3 46.8 110.4 16.6 Total Recommendation Services 82.9 438.4 65.9 204.4 800.5 120.3 Advertising, Marketing and Other Services 13.8 29.3 4.4 38.2 60.6 9.1 Total Revenues 96.7 467.7 70.3 242.6 861.1 129.4 Cost of Revenues (13.4) (41.7) (6.3) (48.2) (82.5) (12.4) Gross Profit 83.3 426.0 64.0 194.4 778.6 117.0 Operating Expenses Sales and Marketing Expenses (94.0) (387.8) (58.3) (268.7) (727.9) (109.4) Research and Development Expenses (19.6) (34.9) (5.2) (52.9) (79.7) (12.0) General and Administrative Expenses (4.1) (15.1) (2.3) (12.0) (26.7) (4.0) Loss from Operations (34.4) (11.8) (1.8) (139.2) (55.7) (8.4) Others, Net 0.0 (0.1) (0.0) 0.2 (0.2) (0.0) Loss Before Income Tax (34.4) (11.9) (1.8) (139.0) (55.9) (8.4) Income Tax Expense - (4.8) (0.7) - (9.8) (1.5) Net Loss (34.4) (16.7) (2.5) (139.0) (65.7) (9.9) 11 Note: Assumes USDRMB FX rate of 6.6533. 11
Selected Unaudited Balance Sheet Data As of 31 Dec 2016 As of 30 Sep 2017 As of 30 Sep 2017 (in Millions) (RMB) (RMB) (USD) Current Assets: - Cash and Cash Equivalents - 0.3 0.0 - Net Accounts Receivable 57.5 181.1 27.2 - Amount Due from Related Parties 21.1 6.9 1.1 - Prepayments and Other Current Assets 50.5 172.5 25.9 Total Current Assets 129.1 360.8 54.2 Non-Current Assets: Net Property and Equipment 4.6 12.6 1.9 Other Non-current Assets 0.8 2.4 0.4 Total Non-Current Assets 5.4 15.0 2.3 Total Assets 134.5 375.8 56.5 Current Liabilities: - Accounts Payable 32.4 157.2 23.6 - Advances from Customers 18.1 81.1 12.2 - Tax Payable 1.8 19.3 2.9 - Accrued Expenses and Other Current Liabilities 29.6 36.3 5.5 Total Liabilities 81.9 293.9 44.2 Parent Company Investment 52.6 81.9 12.3 Total Liabilities and Shareholders’ (Deficit) / Equity 134.5 375.8 56.5 12 Note: Assumes USDRMB FX rate of 6.6533. 12
Selected Unaudited Cash Flow Statement Data For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2017 2017 2016 2017 2017 (in Millions) (RMB) (RMB) (USD) (RMB) (RMB) (USD) Net Cash Provided By / (Used In) Operating Activities (35.0) 18.2 2.7 (230.9) (83.3) (12.5) Net Cash Used In Investing Activities (1.3) (6.6) (1.0) (3.2) (9.8) (1.5) Net Cash Provided By / (Used In) Financing Activities 36.3 (11.3) (1.7) 234.1 93.4 14.0 Net Increase / (Decrease) in Cash and Cash Equivalents - 0.3 0.0 - 0.3 0.0 Cash and Cash Equivalents at Beginning of the Period - - - - - - Cash and Cash Equivalents at End of the Period - - - - - - 13 Note: Assumes USDRMB FX rate of 6.6533. 13
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