SHANGHAI: China Rapid Finance Limited (NYSE: XRF) ("XRF" or "the Company"), one of China's leading Fintech companies, today reported its unaudited financial results for the six and nine months ended June 30, 2019 and September 30, 2019, respectively.
Dr. Zane Wang, Founder, Chairman and Chief Executive Officer of the Company, noted: "Our first half and nine-month results reflect both the regulatory changes impacting our industry, and the proactive approach we are taking to position ourselves as one of leading Fintech companies. As required by the changing regulatory policy, we exited the legacy marketplace lending business in April and are transitioning to only facilitating lending capital from financial institutions, while we are engaged in rigid cost cutting program, these resulted in cash flow improvements for 9-month and 6-month results. In addressing potential delisting due to our currently low market capitalization, we obtained the NYSE approval for our restructuring plan, and we undertook a change in our ADS-to-share ratio to increase our share price, and now that we have become current in our financial reporting, we may choose to reinstate our previously disclosed share repurchase program."
Steven Foo, Chief Financial Officer of the Company, noted: "During this period, we remain committed to tightly control our operating expenses. The cost-cutting efforts we initiated in the first nine months are bearing fruit, as shown in our lower operating expense in the period, which resulted in cash flow improvements during the period. As we are transitioning to the new business model, we have also engaged in discussions regarding various forms and mechanisms for raising capital."
Highlights for the First Half and First Nine Months of 2019
The Company noted the following operating highlights:
In April 2019, we ceased issuing loans on our legacy marketplace lending platform, stopped providing any incentives to our investors, and have allowed borrowers to gradually pay off their loans, which resulted in in a substantial decrease in our net revenue compared to the same periods in 2018.
Streamlined operations and lowered operating expenses through continued cost cutting: The Company reduced its operating expense by $31.7 million in the first half 2019 over the same period in 2018, and reduced by $54.6 million in the nine months 2019 over the same period in 2018, which resulted from transitioning out of being a legacy marketplace lending platform...