Xiaobai Maimai Reports Unaudited Financial Results for First Half of Fiscal Year 2021

BEIJING, Dec. 21, 2020 /PRNewswire/ — Xiaobai Maimai Inc. (NASDAQ: HX), previously generally known as Hexindai Inc. (“Xiaobai Maimai”, the “Firm”, or “we”), a social e-commerce platform in China, at present introduced its unaudited condensed monetary outcomes for the six months ended September 30, 2020.

The Firm amended the ratio of ADS and bizarre shares from one (1) ADS representing one (1) bizarre share to at least one (1) ADS representing three (3) bizarre shares, efficient as of August 24, 2020. Fiscal 12 months refers back to the 12-month interval ended March 31.

First Half of Fiscal Yr 2021 Highlights

• Variety of Common Month-to-month Cellular Lively Customers^[1] for the three months ended September 30, 2020 was 68,750.
• Variety of Lively Cellular Consumers^[2] was 108,039 as of September 30, 2020.
• Whole web revenues within the first half of fiscal 12 months 2021 was roughly US$1.4 million, representing a lower of 73.7% from roughly US$5.2 million in the identical interval of fiscal 12 months 2020.

Mr. Xiaobo An, founder, Chairman and Chief Government Officer of Xiaobai Maimai, commented, “We’re very excited to start a brand new journey after we’ve got disposed of our peer-to-peer (“P2P”) enterprise and reworked into a social e-commerce platform. We launched our social e-commerce platform in Could 2020 and have continued to improve our platform to offer extra ‘value-for-money’ merchandise to customers. Along with the reductions, coupons and rebates supplied by us, our customers are additionally rewarded with small commissions for each buy, share, or advice to their social circles. This social e-commerce mannequin has been nicely acquired by customers and continues to achieve traction. We noticed our person base develop quickly in latest months and have continued to optimize our algorithm to establish and introduce extra cost-efficient merchandise to our platform, particularly in the course of the 11.11 world procuring pageant, from November 1^st to November 11^th this 12 months. Throughout the world procuring pageant, we generated an encouraging RMB220.9 million (roughly US$33.3 million) in transaction quantity, which we imagine is proof of the reliability and excessive efficiency of our highly effective algorithm and working system.”

“Going ahead, we are going to proceed to develop our cooperation with extra home e-commerce platforms and on-line marketplaces to supply extra high-quality and reasonably priced merchandise to our customers. We’re nicely positioned to develop new companies consistent with the rising demand in Chinese language shopper developments and have interaction with extra scalable focusing on to enhance our customers’ on-line procuring expertise. Within the meantime, we’ve got kicked off an initiative to faucet into the rising group-buying communities and also will proceed to discover different alternatives reminiscent of dwell streaming e-commerce. With a brand new path main the way in which, we’re assured of our capabilities to execute our progress methods and create long-term worth for our shareholders.”

First Half of Fiscal Yr 2021 Unaudited Monetary Outcomes

Whole web revenues had been roughly US$1.4 million, representing a lower of 73.8% from roughly US$5.2 million in the identical interval of fiscal 12 months 2020. The lower was primarily resulting from a lower in web revenues from our mortgage advice companies and curiosity revenue from our micro-lending enterprise.

• Income from mortgage facilitation, post-origination, and different companies was nil, decreased from roughly US$3.2 million in the identical interval of final fiscal 12 months because the Firm had ceased to situation new loans since November 2019.
• Income from on-line market companies was roughly US$0.3 million, in contrast with nil in the identical interval of final fiscal 12 months. Such revenues had been generated from our social e-commerce platform, which was launched in Could 2020.
• Curiosity revenue was roughly US$1.1 million, representing a lower of 45.7% from US$1.9 million in the identical interval of final fiscal 12 months. The lower was primarily resulting from a lower in mortgage receivables.

Working prices and bills had been roughly US$17.9 million, representing a rise of 216.4% from roughly US$5.8 million in the identical interval of fiscal 12 months 2020. The rise was primarily resulting from a rise in provision for loans receivable.

• Service and growth bills had been roughly US$0.3 million, representing a lower of 44.6% from roughly US$0.5 million in the identical interval of final fiscal 12 months. The lower was primarily resulting from a lower in payroll value.
• Gross sales and advertising bills had been roughly US$0.6 million, representing a lower of 42.3% from roughly US$1.0 million in the identical interval of final fiscal 12 months. The lower was primarily resulting from a lower in promoting bills for our P2P enterprise, as we had ceased issuing new loans since November 2019.
• Normal and administrative bills had been roughly US$3.0 million, representing a rise of 26.2% from roughly US$2.4 million in the identical interval of final fiscal 12 months. The rise was primarily resulting from a rise in skilled charges.
• Provision for uncollectable loans receivable was roughly US$12.9 million, in contrast with roughly US$0.2 million in the identical interval of final fiscal 12 months. The Firm has elevated its allowance for uncollectable loans for its micro-lending enterprise primarily based on latest assortment historical past and in gentle of the persevering with affect from COVID-19.
• Finance prices had been roughly US$1.2 million, representing a lower of 8.4% from roughly US$1.3 million in the identical interval of final fiscal 12 months. The lower was primarily because of the compensation of financial institution borrowings.
• Share-based compensation was roughly US$0.06 million, representing a lower of 81.7% from roughly US$0.3 million in the identical interval of final fiscal 12 months. The lower was resulting from a lower within the variety of inventory choices and restricted share items expensed in fiscal 12 months 2021.

Whole different (bills) revenue was roughly (US$0.8) million, in contrast with roughly US$1.1 million in the identical interval of fiscal 12 months 2020. The adjustments partially resulted from trade losses.

Internet loss from persevering with operation was roughly US$17.5 million, in contrast with roughly US$0.5 million from the identical interval of fiscal 12 months 2020.

Internet loss from discontinued operation was roughly US$6.1 million, in contrast with roughly US$17.1 million from the identical interval of fiscal 12 months 2020.

Internet loss was roughly US$23.6 million, in contrast with roughly US$17.6 million in the identical interval of fiscal 12 months 2020.

Primary and diluted web loss per share attributable to bizarre shareholders was US$0.48, in contrast with US$0.36 in the identical interval of fiscal 12 months 2020.

Money and money equivalents had been roughly US$21.9 million as of September 30, 2020, in comparison with roughly US$6.7 million as of March 31, 2020.

Change Price Data

Our enterprise is performed in China, and our monetary information are maintained in RMB, our practical foreign money. Nonetheless, we used the U.S. greenback as our reporting foreign money; due to this fact, periodic reviews made to shareholders will embody present interval quantities translated into U.S. {dollars} utilizing the then-current trade charges, for the comfort of the readers. The monetary info was ready in RMB after which translated into U.S. {dollars} at period-end trade charges within the H.10 statistical launch of the Federal Reserve Board as to property and liabilities, and common trade charges as to income and bills. Capital accounts had been translated at their historic trade charges when the capital transactions occurred. The consequences of overseas foreign money translation changes had been included as a part of collected different complete revenue (loss) in shareholders’ fairness. We make no illustration that any RMB or U.S. greenback quantities might have been, or may very well be, transformed into U.S. {dollars} or RMB, because the case could also be, at any specific charge, or in any respect. The PRC authorities imposes management over its overseas foreign money reserves partially via direct regulation of the conversion of RMB into overseas trade and thru restrictions on overseas commerce.

Current Developments

On December 16, 2020, our wholly-owned subsidiary, Beijing Hexin Yongheng Know-how Growth Co., Ltd. (“Hexin Yongheng”), Kuaishangche Vehicle Leasing Co., Ltd. (“Kuaishangche”), an organization in a roundabout way related to the Firm however managed by Mr An, our CEO and Chairman of the Board and the proprietor of Kuaishangche, Hexin E-Commerce Firm Restricted (“Hexin E-Commerce”), and particular person shareholders of Hexin E-Commerce entered into an task and assumption settlement (the “Settlement”). Pursuant to the Settlement, Hexin Yongheng agreed to assign and switch to Kuaishangche the management over Hexin E-Commerce, in trade for money consideration of RMB 5 million (roughly US$ 0.7 million) (the “Disposition”). On account of the Disposition, Kuaishangche has turn into the first beneficiary of and controls Hexin E-Commerce and has assumed all property and liabilities of Hexin E-Commerce and subsidiaries owned or managed by Hexin E-Commerce, excluding any rights, titles, pursuits or claims that Hexin E-Commerce might have in Wusu Hexin Yongheng Business and Buying and selling Co., Ltd. (“Wusu Firm”), which stays as our consolidated variable curiosity entity. We performed our P2P enterprise via our consolidated variable curiosity entity, Hexin E-Commerce, and had ceased to supply new loans for on-line traders’ subscription since November 2019. On account of the Disposition, we’ve got ceased to conduct the P2P enterprise and the property and liabilities of Hexin E-Commerce and its subsidiaries (excluding Wusu Firm) have been proven as “property and liabilities held on the market” and their outcomes of operations have been proven as “discontinued operations.” On December 16, 2020, our shareholders authorised the change of our identify to Xiaobai Maimai Inc. to replicate our enterprise transition.

We launched our social e-commerce platform in Could 2020 as a brand new enterprise line for enterprise transition, and we are going to proceed to develop and spend money on our platform to reap the benefits of China’s fast-growing e-commerce business. Our social e-commerce platform provides high-quality and reasonably priced merchandise to shoppers in China. We cooperate with main home e-commerce platforms and companies marketplaces to pick and supply items and companies, and reward customers with a small fee for each buy, share or advice of a product made to pals. Because the launch of our social e-commerce platform, we’ve got seen encouraging progress in quite a few working metrics, together with transaction quantity, month-to-month cellular lively customers and lively cellular patrons. Though our e-commerce enterprise remains to be within the early levels of growth, the place additional funding is required, we’re proactively executing our methods to faucet into the rising group-buying communities and exploring different alternatives in China’s fast-growing e-commerce business, reminiscent of dwell streaming e-commerce.

About Xiaobai Maimai Inc.

Xiaobai Maimai Inc. (NASDAQ: HX), previously generally known as Hexindai Inc., (“Xiaobai Maimai” or the “Firm”), is a social e-commerce platform primarily based in Beijing, China. The Firm collaborates with home e-commerce platforms and provides customers a wide array of high-quality and reasonably priced merchandise on its social e-commerce platform. Leveraging its cooperation with mainstream e-commerce platforms and on-line service marketplaces, the Firm continues to generate quick progress for the enterprise by figuring out and introducing cost-efficient merchandise via its information analytics algorithm and working system, and attracts customers to its platform with glorious customer support.

Secure Harbor Assertion

This announcement accommodates forward-looking statements throughout the which means of Part 21E of the Securities Change Act of 1934, as amended. These forward-looking statements are made underneath the “protected harbor” provisions of the U.S. Non-public Securities Litigation Reform Act of 1995. These statements will be recognized by terminology reminiscent of “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “proceed,” “ongoing,” “targets,” “steering” and related statements. The Firm might also make written or oral forward-looking statements in its periodic reviews to the U.S. Securities and Change Fee (the “SEC”), in its annual report back to shareholders, in press releases and different written supplies and in oral statements made by its officers, administrators or staff to 3rd events. Any statements that aren’t historic info, together with statements concerning the Firm’s beliefs and expectations, are forward-looking statements that contain elements, dangers and uncertainties that would trigger precise outcomes to vary materially from these within the forward-looking statements. Such elements and dangers embody, however not restricted to the next: the Firm’s targets, methods and growth plans; its future enterprise growth, monetary situation and outcomes of operations; its capacity to draw and retain new customers and to extend revenues generated from repeat customers; its expectations relating to demand for and market acceptance of its services; its relationships and cooperation with e-commerce platforms and companies marketplaces; developments and competitors in China’s e-commerce market; the anticipated progress of the Chinese language e-commerce market; Chinese language governmental insurance policies regarding the Firm’s company construction and the e-commerce business; and basic financial situations in China. Additional info relating to these and different dangers, uncertainties or elements is included within the Firm’s filings with the SEC. All info offered on this announcement is present as of the date of this announcement, and the Firm doesn’t undertake any obligation to replace such info, besides as required underneath relevant legislation.

For extra info, please go to ir.xiaobaimaimai.com

For investor inquiries, please contact:

The Firm

Investor Relations
Ms. Zenabo Ma
E-mail: [email protected]

Christensen

In China
Mr. Eric Yuan
Cellphone: +86-10- 5900-1548
E-mail: [email protected]  

In US

Mr. Tip Fleming
Cellphone: +1-917-412-3333
E-mail: [email protected]

SOURCE Xiaobai Maimai Inc.

Associated Hyperlinks

https://ir.xiaobaimaimai.com/