BEIJING, Dec. 30, 2020 /PRNewswire/ -- Renren Inc. (NYSE:
RENN) ("Renren" or the "Company"), which operates a premium used
auto business in China through its
subsidiary Kaixin Auto Holdings (NASDAQ: KXIN) ("Kaixin") as well
as several U.S.-based SaaS businesses, today announced its
unaudited financial results for the six months ended June 30, 2020.
First Half of 2020 Highlights
- Total net revenues were US$41.2
million, an 80.9% decrease from the corresponding period in
2019.
— Kaixin revenues (1) were US$33.3 million, an 83.7% decrease from the
corresponding period in 2019.
- Operating loss was US$23.2
million, improved from an operating loss of US$26.4 million in the corresponding period in
2019.
- Net loss attributable to the Company was US$16.6 million, compared to a net income
attributable to the Company of US$67.7
million in the corresponding period in 2019.
- Adjusted loss from operations (2) (non-GAAP) was
US$12.0 million, improved from an
adjusted loss from operations of US$19.4
million in the corresponding period in 2019.
- Adjusted net loss (2) (non-GAAP) was US$8.5 million, compared to an adjusted net loss
of US$15.5 million in the
corresponding period in 2019.
(1) Kaixin
revenues are the net revenue from the Company's subsidiary Kaixin,
which are included in the Company's Auto Group segment. Please
refer to the table of additional information for
details.
|
(2) Adjusted loss
from operations and net income (loss) are non-GAAP measures, which
are defined as loss from operations excluding share-based
compensation expenses and amortization of intangible assets and net
income (loss) excluding share-based compensation expenses, fair
value change of contingent consideration and amortization of
intangible assets, respectively. See "About Non-GAAP Financial
Measures" below.
|
First Half 2020 Results
Total net revenues for the first half of 2020 were
US$41.2 million, representing an
80.9% decrease from the corresponding period in 2019. The COVID-19
pandemic had a material adverse impact on the Company's used-car
dealership business.
Cost of revenues was US$34.0
million, compared to US$201.9
million from the corresponding period of 2019. The decrease
was in line with the decrease of revenue.
Operating expenses were US$30.4 million, a 23.4% decrease from the
corresponding period of 2019.
Selling and marketing expenses were US$5.3 million, a 58.5% decrease from the
corresponding period of 2019. The decrease resulted from the effort
to improve operation efficiency in headcount and personnel-related
expenses.
Research and development expenses were US$8.0 million, a 39.5% decrease from the
corresponding period in 2019. The decrease was primarily due to a
decrease in headcount and personnel-related expenses.
General and administrative expenses were US$17.1 million, a 25.0% increase from the
corresponding period in 2019. The increase was primarily due to an
increase in share-based compensation expenses.
Share-based compensation expenses, which were all
included in operating expenses, were US$11.0
million, compared to US$6.9
million in the corresponding period in 2019. The increase
was mainly due to a modification which repriced the exercise price
with respect to options during the first half of 2020, which led to
the higher share-based compensation expenses in the six months
ended June 30, 2020 compared to the
six months ended June 30, 2019.
Loss from operations was US$23.2 million, improved from a loss from
operations of US$26.4 million in the
corresponding period in 2019.
Net loss attributable to Renren Inc. was US$16.6 million, compared to a net income of
US$67.7 million in the corresponding
period in 2019.
Adjusted loss from operations (non-GAAP) was US$12.0 million, improved from an adjusted loss
from operations of US$19.4 million in
the corresponding period in 2019. Adjusted loss from operations is
defined as loss from operations excluding share-based compensation
expenses and amortization of intangible assets.
Adjusted net loss (non-GAAP) was US$8.5 million, compared to an adjusted net loss
of US$15.5 million in the
corresponding period in 2019. Adjusted net loss is defined as net
loss excluding share-based compensation expenses, fair value change
of contingent consideration and amortization of intangible
assets.
Business Outlook
The Company expects to generate revenues in an amount ranging
from US$8 million to US$12 million in the second half of 2020. The
decrease in revenues as compared with the second half of 2019 or
the first half of 2020 is expected to be primarily due to Kaixin
Auto Holdings having decided to put a halt to its used-car
dealership business operations while reexamining its business
model. This forecast reflects the Company's current and preliminary
view, which is subject to change.
Binding Term Sheet with Haitaoche
The Company's subsidiary Kaixin entered into a binding term
sheet (the "Biding Term Sheet") with Haitaoche Limited
("Haitaoche") on November 3,
2020.
The Binding Term Sheet sets forth the terms and conditions by
which Haitaoche will merge with a newly formed wholly-owned
subsidiary of Kaixin, with Haitaoche continuing as the surviving
entity and a wholly-owned subsidiary of Kaixin (the "Merger").
As consideration for the Merger, Kaixin will issue a number of
ordinary shares of Kaixin to the shareholders of Haitaoche (the
"Haitaoche Shareholders") so that the Haitaoche Shareholders will
collectively hold 51% of Kaixin's share capital upon the closing of
the Merger.
Conference Call Information
The Company will not host a conference call. Please contact our
Investor Relations Department if you have any questions.
About Renren Inc.
Renren Inc. (NYSE: RENN) operates a premium used auto
business in China through its
subsidiary Kaixin Auto Holdings (NASDAQ: KXIN) as well as several
US-based SaaS businesses. Renren's American depositary shares,
each of which currently represents forty-five Class A ordinary
shares, trade on NYSE under the symbol "RENN".
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the business outlook for the second half of 2020 and quotations
from management in this announcement, as well as Renren's strategic
and operational plans, contain forward-looking statements. Renren
may also make written or oral forward-looking statements in its
filings with the U.S. Securities and Exchange Commission ("SEC"),
in press releases and other written materials and in oral
statements made by its officers, directors or employees to third
parties. Statements that are not historical facts, including
statements about Renren's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: Renren's goals and strategies; Renren's future business
development, financial condition and results of operations;
Renren's expectations regarding demand for and market
acceptance of its services; Renren's expectations regarding the
retention and strengthening of its relationships with used auto
dealerships; Renren's plans to enhance user experience,
infrastructure and service offerings; competition in the used auto
industry in China; and government
policies and regulations relating to the used auto industry in
China. Further information
regarding these and other risks is included in our annual report on
Form 20-F and other documents filed with the SEC. All
information provided in this press release and in the
attachments is as of the date of this press release, and Renren
does not undertake any obligation to update
any forward-looking statement, except as required under
applicable law.
About Non-GAAP Financial Measures
To supplement Renren's consolidated financial results presented
in accordance with United States Generally Accepted Accounting
Principles ("GAAP"), Renren uses "adjusted income (loss) from
operations" and "adjusted net income (loss)" which are defined as
non-GAAP financial measures by the SEC, in evaluating its business.
Renren defines adjusted income (loss) from operations as income
(loss) from operations excluding share-based compensation expenses
and amortization of intangible assets and adjusted net income
(loss) as net income (loss) excluding share-based compensation
expenses, fair value change of contingent consideration and
amortization of intangible assets, respectively. Renren
continuously and periodically reviews its operating results and
business performance. Starting from the first quarter of 2018,
there was a significant impact on net income (loss) due to the
material and significant noncash amount of fair value change of
contingent consideration relating to the used auto dealerships of
the emerging used auto business. Due to the nature of the business,
Renren believes that including adjusted income (loss) from
operations and excluding the impact of such fair value changes more
appropriately reflects Renren's results of operations, and provides
investors with a better understanding of Renren's business
performance. To facilitate investors and analysts, the aforesaid
impact is presented retrospectively in "Reconciliation of non-GAAP
results of operations measures to the comparable GAAP financial
measures". Renren presents adjusted income (loss) from operations
and adjusted net income (loss) because they are used by Renren's
management to evaluate its operating performance. Renren also
believes that these non-GAAP financial measures provide useful
information to investors and others in understanding and evaluating
Renren's consolidated results of operations in the same manner as
Renren's management and in comparing financial results across
accounting periods and to those of Renren's peer companies.
These non-GAAP financial measures are not intended to be
considered in isolation from, or as a substitute for, the financial
information prepared and presented in accordance with GAAP. For
more information on these non-GAAP financial measures, please see
the table captioned "Reconciliation of non-GAAP results of
operations measures to the comparable GAAP financial measures" at
the end of this release.
RENREN
INC.
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
(In thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
June
30,
|
|
|
|
2019
|
|
2020
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
4,473
|
$
|
5,059
|
|
Restricted
cash
|
|
13,091
|
|
-
|
|
Short-term
investments
|
|
1,436
|
|
-
|
|
Accounts
receivable, net
|
|
649
|
|
595
|
|
Prepaid
expenses and other current assets
|
|
30,454
|
|
32,643
|
|
Amounts due
from related parties
|
|
688
|
|
678
|
|
Inventory
|
|
21,981
|
|
18,527
|
|
Total
current assets
|
|
72,772
|
|
57,502
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
|
851
|
|
619
|
|
Goodwill and
intangible assets, net
|
|
832
|
|
641
|
|
Long-term
investments
|
|
13,454
|
|
13,507
|
|
Amount due from
related parties- non-current
|
|
131,758
|
|
131,346
|
|
Restricted cash
– non-current
|
|
358
|
|
5,643
|
|
Right-of-use
lease assets
|
|
5,506
|
|
3,900
|
|
Other
non-current assets
|
|
680
|
|
626
|
|
Total
non-current assets
|
|
153,439
|
|
156,282
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
|
226,211
|
$
|
213,784
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
5,393
|
$
|
2,088
|
|
Short-term
debt
|
|
31,077
|
|
26,213
|
|
Accrued
expenses and other current liabilities
|
|
37,068
|
|
34,589
|
|
Short-term
lease liabilities
|
|
2,836
|
|
3,088
|
|
Payable to
investors
|
|
14
|
|
14
|
|
Amounts due to
related parties
|
|
774
|
|
3,269
|
|
Deferred
revenue and advance from customers
|
|
750
|
|
273
|
|
Income tax
payable
|
|
20,054
|
|
19,454
|
|
Contingent
consideration
|
|
204
|
|
94
|
|
Total
current liabilities
|
|
98,170
|
|
89,082
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
debt
|
|
-
|
|
1,585
|
|
Long-term lease
liabilities
|
|
1,980
|
|
1,140
|
|
Long-term
contingent consideration
|
|
828
|
|
381
|
|
Total
non-current liabilities
|
|
2,808
|
|
3,106
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
$
|
100,978
|
$
|
92,188
|
|
|
|
|
|
|
|
Shareholders' Equity:
|
|
|
|
|
|
Class A
ordinary shares
|
|
751
|
|
757
|
|
Class B
ordinary shares
|
|
305
|
|
305
|
|
Additional
paid-in capital
|
|
720,513
|
|
731,521
|
|
Statutory
reserves
|
|
6,712
|
|
6,712
|
|
Accumulated
deficit
|
|
(614,830)
|
|
(631,407)
|
|
Accumulated
other comprehensive income
|
|
(9,338)
|
|
(8,978)
|
|
|
|
|
|
|
|
Total Renren
Inc. shareholders' equity
|
|
104,113
|
|
98,910
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
21,120
|
|
22,686
|
|
|
|
|
|
|
|
TOTAL
EQUITY
|
|
125,233
|
|
121,596
|
|
|
|
|
|
|
|
TOAL
LIABILITIES AND EQUITY
|
$
|
226,211
|
$
|
213,784
|
|
|
|
|
|
|
|
RENREN
INC.
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
|
(In thousands of US
dollars, except share data and per share data, ADS data, and per
ADS data)
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
2019
|
|
2020
|
Net
revenues:
|
|
|
|
|
Automobile
sales
|
$
|
200,914
|
$
|
32,996
|
Others
|
|
14,214
|
|
8,164
|
Total net
revenues
|
|
215,128
|
|
41,160
|
|
|
|
|
|
Cost of
revenues
|
|
(201,873)
|
|
(33,993)
|
|
|
|
|
|
Gross
profit
|
|
13,255
|
|
7,167
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Selling and
marketing
|
|
(12,769)
|
|
(5,293)
|
Research and
development
|
|
(13,243)
|
|
(8,010)
|
General and
administrative
|
|
(13,657)
|
|
(17,071)
|
|
|
|
|
|
Total
operating expenses
|
|
(39,669)
|
|
(30,374)
|
|
|
|
|
|
Loss from
operations
|
|
(26,414)
|
|
(23,207)
|
|
|
|
|
|
Other
income
|
|
2,505
|
|
511
|
Fair value
change of contingent consideration
|
|
88,116
|
|
557
|
Interest
income
|
|
4,393
|
|
3,734
|
Interest
expenses
|
|
(1,468)
|
|
(779)
|
Total
non-operating income
|
|
93,546
|
|
4,023
|
|
|
|
|
|
Income
(loss) before provision of income tax and loss in equity
method investments, net of tax
|
|
67,132
|
|
(19,184)
|
Income tax
expenses
|
|
(628)
|
|
-
|
|
|
|
|
|
Income
(loss) before loss in equity method investments and
noncontrolling interest, net of tax
|
|
66,504
|
|
(19,184)
|
(Loss) income
in equity method investments, net of tax
|
|
(910)
|
|
79
|
Income
(loss) from continuing operations
|
|
65,594
|
|
(19,105)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
65,594
|
|
(19,105)
|
Net loss
attributable to noncontrolling interests
|
|
2,133
|
|
2,528
|
|
|
|
|
|
Net income
(loss) attributable to Renren Inc.
|
$
|
67,727
|
$
|
(16,577)
|
|
|
|
|
|
Net
income (loss) per share from continuing operations
attributable to Renren Inc.shareholders:
|
|
|
|
|
Basic
|
$
|
0.06
|
$
|
(0.02)
|
Diluted
|
$
|
0.04
|
$
|
(0.02)
|
|
|
|
|
|
Net
income (loss) per share attributable to Renren Inc.
shareholders:
|
|
|
|
|
Basic
|
$
|
0.06
|
$
|
(0.02)
|
Diluted
|
$
|
0.04
|
$
|
(0.02)
|
Net income
(loss) attributable to Renren Inc. shareholders per
ADS*:
|
|
|
|
|
Basic
|
$
|
2.53
|
$
|
(0.70)
|
Diluted
|
$
|
1.56
|
$
|
(0.70)
|
|
|
|
|
|
Weighted
average number of shares used in calculating net loss
per ordinary share attributable to Renren Inc.
shareholders:
|
|
|
|
|
Basic
|
|
1,045,443,122
|
|
1,058,890,544
|
Diluted
|
|
1,083,883,429
|
|
1,058,890,544
|
|
|
|
|
|
* Each ADS
represents 45 Class A ordinary shares.
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP results of operations measures to the comparable GAAP
financial
measures
|
(In thousands
of US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2020
|
|
|
|
|
|
Loss from
opeartions
|
$
|
(26,414)
|
$
|
(23,207)
|
Add back:
Shared-based compensation expenses
|
|
6,869
|
|
11,015
|
Add back: Amortization of
intangible assets
|
|
192
|
|
192
|
Adjusted
loss from operations
|
$
|
(19,353)
|
$
|
(12,000)
|
|
|
|
|
|
Net income
(loss)
|
$
|
65,594
|
$
|
(19,105)
|
Add back:
Shared-based compensation expenses
|
|
6,869
|
|
11,015
|
Add back: Fair
value change of contingent consideration
|
|
(88,116)
|
|
(557)
|
Add back: Amortization of
intangible assets
|
|
192
|
|
192
|
Adjusted net
income (loss)
|
$
|
(15,461)
|
$
|
(8,455)
|
|
|
|
|
|
RENREN
INC.
|
ADDITIONAL
INFORMATION (UNAUDITED)
|
(In thousands of US
dollars)
|
|
|
|
|
For the Six Months
Ended
|
|
|
|
June 30,
2019
|
|
June 30,
2020
|
|
|
|
|
Kaixin
|
|
Renren
|
|
Total
|
|
|
Kaixin
|
|
Renren
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automobile
sales
|
$
|
200,914
|
$
|
|
$
|
200,914
|
|
$
|
32,996
|
$
|
-
|
$
|
32,996
|
|
|
Others
|
|
3,685
|
|
10,529
|
|
14,214
|
|
|
299
|
|
7,865
|
|
8,164
|
|
|
Total
|
|
204,599
|
|
10,529
|
|
215,128
|
|
|
33,295
|
|
7,865
|
|
41,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
$
|
195,969
|
$
|
5,904
|
$
|
201,873
|
|
$
|
32,375
|
$
|
1,618
|
$
|
33,993
|
|
View original
content:http://www.prnewswire.com/news-releases/renren-announces-unaudited-first-half-2020-financial-results-301199347.html
SOURCE Renren Inc.