3Q 2017 Earnings Results December 12, 2017 Safe Harbor Statement - - PowerPoint PPT Presentation

3Q 2017 Earnings Results

December 12, 2017

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Safe Harbor Statement and Disclaimer

This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act

• f 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.

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3Q 2017 Financial and Operating Highlights

Financial Service Providers Users

1 In 3Q 2017 2 In 9M 2017 3 Credit card volume which we generate revenues from, including for both recommendation services and advertising and marketing services

2,500+

Financial Service Providers2

95 MM+

Average MAU1

88%

Mobile Traffic1

170K+

Financial Products2

350+

Cities2

57.3 MM

Loan Applications2

1.9 MM

Credit Card Volume2,3

255%

Revenue YoY Growth2

Financial Product Discovery and Recommendation

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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

Quarterly Key Operating Metrics

0.4 1.1 0.9 1.9 Q3 2016 Q3 2017 9M 2016 9M 2017

Credit Card Volume2

MM

+197% YoY +119% YoY

4.7 28.2 10.1 57.3 Q3 2016 Q3 2017 9M 2016 9M 2017

MM

Number of Loan Applications1

+496% YoY +469% YoY

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5 65.3 376.6 157.6 690.1 17.6 61.8 46.8 110.4 13.8 29.3 38.2 60.6 96.7 467.7 242.6 861.1 Q3 2016 Q3 2017 9M 2016 9M 2017

Quarterly Revenue YoY

Total Revenue Breakdown

RMB MM

+384%

YoY

Loan Recommendation Credit Card Recommendation Other Services

+255%

YoY

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Quarterly Revenue QoQ

96.7 113.8 137.3 256.0 467.7 17.8% 20.7% 86.4% 82.7% Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Total Revenues QoQ Growth

Quarterly Total Revenues and Growth Rates

RMB MM

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Quarterly Gross Profit and Gross Margin

83.3 426.0 194.4 778.6 86.1% 91.1% 80.1% 90.4% Q3 2016 Q3 2017 9M 2016 9M 2017 Gross Profit (RMB mm) Gross Margin (%)

Gross Profit

RMB MM %

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Quarterly Operating Expenses

RMB MM

Sales and Marketing Expenses Research and Development Expenses General and Administrative Expenses

RMB MM RMB MM 94.0 387.8 268.7 727.9 97.2% 82.9% 110.8% 84.5%

Q3 2016 Q3 2017 9M 2016 9M 2017

% of Total Revenues 19.6 34.9 52.9 79.7 20.3% 7.5% 21.8% 9.3%

Q3 2016 Q3 2017 9M 2016 9M 2017

% of Total Revenues 4.1 15.1 12.0 26.7 4.2% 3.2% 4.9% 3.1%

Q3 2016 Q3 2017 9M 2016 9M 2017

% of Total Revenues % % % Note: GAAP basis

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RMB MM

(34.4) (16.7) (139.0) (65.7) (35.6)% (3.6)% (57.3)% (7.6)% Q3 2016 Q3 2017 9M 2016 9M 2017 Net Income % of Total Revenues

Quarterly Net Income and Adjusted Net Income

1 Non-GAAP basis; excluding stock-based compensation expense.

Net Income Adjusted Net Income1

RMB MM

(33.3) (16.3) (135.1) (64.1) (34.5)% (3.5)% (55.7)% (7.4)% Q3 2016 Q3 2017 9M 2016 9M 2017 Adjusted Net Income % of Total Revenues

% %

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Appendix

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Selected Unaudited Income Statement Data

For the Three Months Ended September 30, For the Nine Months Ended September 30, (in Millions) 2016 (RMB) 2017 (RMB) 2017 (USD) 2016 (RMB) 2017 (RMB) 2017 (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) Note: Assumes USDRMB FX rate of 6.6533.

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Selected Unaudited Balance Sheet Data

(in Millions) As of 31 Dec 2016 (RMB) As of 30 Sep 2017 (RMB) As of 30 Sep 2017 (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 Note: Assumes USDRMB FX rate of 6.6533.

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Selected Unaudited Cash Flow Statement Data

Note: Assumes USDRMB FX rate of 6.6533.

For the Three Months Ended September 30, For the Nine Months Ended September 30, (in Millions) 2016 (RMB) 2017 (RMB) 2017 (USD) 2016 (RMB) 2017 (RMB) 2017 (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