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

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

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

First Half of Fiscal 12 months 2021 Highlights

• Variety of Common Month-to-month Cell Lively Customers^[1] for the three months ended September 30, 2020 was 68,750.
• Variety of Lively Cell Patrons^[2] was 108,039 as of September 30, 2020.
• Whole internet 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 disposed of our peer-to-peer (“P2P”) enterprise and remodeled 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 provided by us, our customers are additionally rewarded with small commissions for each buy, share, or suggestion to their social circles. This social e-commerce mannequin has been nicely acquired by customers and continues to achieve traction. We noticed our consumer base develop quickly in current months and have continued to optimize our algorithm to determine and introduce extra cost-efficient merchandise to our platform, particularly through the 11.11 world buying pageant, from November 1^st to November 11^th this 12 months. In the course of the world buying pageant, we generated an encouraging RMB220.9 million (roughly US$33.3 million) in transaction quantity, which we consider is proof of the reliability and excessive efficiency of our highly effective algorithm and working system.”

“Going ahead, we’ll proceed to increase our cooperation with extra home e-commerce platforms and on-line marketplaces to supply extra high-quality and inexpensive merchandise to our customers. We’re nicely positioned to develop new providers in keeping with the rising demand in Chinese language shopper traits and interact with extra scalable focusing on to enhance our customers’ on-line buying expertise. Within the meantime, we’ve kicked off an initiative to faucet into the rising group-buying communities and also will proceed to discover different alternatives resembling reside streaming e-commerce. With a brand new course main the best way, we’re assured of our capabilities to execute our progress methods and create long-term worth for our shareholders.”

First Half of Fiscal 12 months 2021 Unaudited Monetary Outcomes

Whole internet 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 as a result of a lower in internet revenues from our mortgage suggestion providers and curiosity earnings from our micro-lending enterprise.

• Income from mortgage facilitation, post-origination, and different providers was nil, decreased from roughly US$3.2 million in the identical interval of final fiscal 12 months because the Firm had ceased to challenge new loans since November 2019.
• Income from on-line market providers 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 earnings 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 as a result of 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 as a result of 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 as a result of 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 as a result of a lower in promoting bills for our P2P enterprise, as we had ceased issuing new loans since November 2019.
• Basic 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 as a result of 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 current assortment historical past and in gentle of the persevering with influence 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 as a result of 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 as a result of a lower within the variety of inventory choices and restricted share items expensed in fiscal 12 months 2021.

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

Web 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.

Web 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.

Web 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 internet loss per share attributable to strange 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.

Trade Charge Info

Our enterprise is carried out in China, and our monetary data are maintained in RMB, our practical forex. Nonetheless, we used the U.S. greenback as our reporting forex; subsequently, periodic experiences 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 data 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 belongings 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 results of overseas forex translation changes had been included as a part of gathered different complete earnings (loss) in shareholders’ fairness. We make no illustration that any RMB or U.S. greenback quantities may 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 forex reserves partly 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 Car 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 project 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”). Because of the Disposition, Kuaishangche has change into the first beneficiary of and controls Hexin E-Commerce and has assumed all belongings 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 could have in Wusu Hexin Yongheng Business and Buying and selling Co., Ltd. (“Wusu Firm”), which stays as our consolidated variable curiosity entity. We carried out 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. Because of the Disposition, we’ve ceased to conduct the P2P enterprise and the belongings and liabilities of Hexin E-Commerce and its subsidiaries (excluding Wusu Firm) have been proven as “belongings and liabilities held on the market” and their outcomes of operations have been proven as “discontinued operations.” On December 16, 2020, our shareholders accredited the change of our title 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’ll proceed to develop and put money into our platform to benefit from China’s fast-growing e-commerce business. Our social e-commerce platform affords high-quality and inexpensive merchandise to shoppers in China. We cooperate with main home e-commerce platforms and providers marketplaces to pick out and supply items and providers, and reward customers with a small fee for each buy, share or suggestion of a product made to buddies. Because the launch of our social e-commerce platform, we’ve seen encouraging progress in a variety of 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 phases 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, resembling reside streaming e-commerce.

About Xiaobai Maimai Inc.

Xiaobai Maimai Inc. (NASDAQ: HX), previously often 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 affords customers a big selection of high-quality and inexpensive 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 knowledge analytics algorithm and working system, and attracts customers to its platform with wonderful customer support.

Secure Harbor Assertion

This announcement incorporates forward-looking statements inside the which means of Part 21E of the Securities Trade Act of 1934, as amended. These forward-looking statements are made beneath the “secure harbor” provisions of the U.S. Personal Securities Litigation Reform Act of 1995. These statements could be recognized by terminology resembling “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “proceed,” “ongoing,” “targets,” “steering” and related statements. The Firm may additionally make written or oral forward-looking statements in its periodic experiences to the U.S. Securities and Trade 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 workers 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 components, dangers and uncertainties that would trigger precise outcomes to vary materially from these within the forward-looking statements. Such components 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 and products; its relationships and cooperation with e-commerce platforms and providers marketplaces; traits and competitors in China’s e-commerce market; the anticipated progress of the Chinese language e-commerce market; Chinese language governmental insurance policies referring to the Firm’s company construction and the e-commerce business; and normal financial circumstances in China. Additional data relating to these and different dangers, uncertainties or components is included within the Firm’s filings with the SEC. All data supplied on this announcement is present as of the date of this announcement, and the Firm doesn’t undertake any obligation to replace such data, besides as required beneath relevant legislation.

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

For investor inquiries, please contact:

The Firm

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

SOURCE Xiaobai Maimai Inc.

Associated Hyperlinks

https://ir.xiaobaimaimai.com/