Hexindai Quarterly Revenue Plummeted 85%, CEO is Determined to Rebuild Customer Confidence

Hexindai has lost more than 70 percent of its market value in the past year with the uncertainty of regulations.

Author: Belinda Zhou   

Chinese consumer-lending company Hexindai Inc. (Nasdaq: HX) reported 85 percent decline in its net revenue for the fourth quarter, sending its stock down 2 percent to $2.41 intraday Tuesday.

Hexindai said net revenue reached $4.1 million during the three months through March, a decrease of 85 percent from the fourth quarter of fiscal year 2018.

Net income reached $2.8 million, or 6 cents per American depository share, during the period, a decrease of 83 percent from one year ago.

The online peer-to-peer lending company reported a boost in the number of borrowers this quarter when it facilitated loans for about 52,000 borrowers, 56 percent more than a year ago.

Loan volume during the fourth quarter of the fiscal year 2019 reached $61.7 million, representing a disappointing 84 percent decrease year-over-year.

The Chinese lending marketplace plunged on its annual financial results for the fiscal year 2019 ended March. The total loan volume facilitated amounted to $565 million with a year-over-year 55 percent down in contrast to $1.2 billion.

As a result, the company saw 43 percent drop in its annual revenue in 2019, falling to $61.3 million from $107 million in last fiscal year. Hexindai experienced an alarming 92 percent decline in its net income from $65.5 million during the corresponding period in 2018 to just $5.5 million during this fiscal year.

"We believe the worst is behind us as the market environment continues to gradually improve and investor confidence returns," Xiaobo An, the chief executive officer of Hexindai, said.

Mr. An expressed his determination to rebuild customer confidence after the regulatory compliance review process.

"We are awaiting further notice to begin the registration process which we believe has already begun to rebuild confidence in our platform," he said.

The Beijing-based company has lost more than 70 percent of its market value in the past year alone, from $9.23 per American depository share in the corresponding period.