Shares Rise as PPDai Reports Revenue Growth, Stock Buyback
The peer-to-peer lender said it would begin a share buyback of up to $60 million over the next 12 months “to maximize shareholders value.”
PPDai Group Inc., an online peer-to-peer lending platform in China, reported today that its operating revenues for the fourth quarter increased more than 85 percent compared with a year earlier.
The Shanghai-based company, which completed its initial public offering in November, said during the quarter, it had a net loss attributable to ordinary shareholders of $200.4 million, or 89 cents per American depositary share. That was in contrast to income of $2.8 million a year earlier. Revenue for the three months ended Dec. 31 was $140.2 million, up from $75.7 million in the year-earlier period.
The company cited increased costs for loan losses, loan collection services, online customer acquisition, general and administration expenses, and increased credit risks for higher overall expenses. Losses stemming from accretion on preferred shares increased the company's stated net loss of $77.9 million to the more than $200 million loss attributable to ordinary shareholders.
PPDai, which went public at $13 per ADS, closed today at $8.17 per share, up 48 cents, or more than 6 percent. In a separate announcement, the company also said it would begin a share buyback of up to $60 million over the next 12 months "to maximize shareholders value." Each ADS represents five ordinary shares.
"2017 marks the tenth anniversary since our inception and a significant milestone in our journey," said Jun Zhang, the company's chairman and chief executive officer. "We are pleased to continue to deliver significant growth in the Company's financial and operational results for the fourth quarter and full year 2017, highlighted by our full year loan origination volume of RMB65.6 billion, a strong 229.9% increase from RMB19.9 billion in 2016. The sustained dynamic growth was mainly attributable to the increase of our customer base."
Loan origination volume for the quarter rose 134 percent to $2.7 billion, the company said, while its loan facilitation service fees nearly doubled to $95.3 million. Looking ahead, the company said it expected total loan volume for fiscal 2018 to be between 70 and 80 billion yuan, compared with 65.6 billion last year.