Akso Health Group

First-quarter fiscal 2020 net revenue was $4.9 million, down 90.5% from the same period last year. P2P loan volume facilitated was $28.2 million, or RMB0.2 billion, versus $0.5 billion, or RMB2.9 billion, a year earlier. Operating costs and expenses were $12.6 million, down 18.9%; sales and marketing was $7.5 million, down 35.5%; service and development was $1.9 million, up 42.3%; G&A was $2.3 million, flat; finance costs were $0.6 million versus nil last year. Net loss was $7.2 million versus net income of $29.7 million last year; basic and diluted loss per share were $0.15 versus basic EPS of $0.62 and diluted EPS of $0.56. Adjusted net loss was $7 million versus adjusted net income of $29.9 million, and adjusted EBIT was a loss of $5.8 million versus $36.6 million last year. On a sequential basis, net revenue increased 8.6%. Management said institutional partners funded about 20% of loans facilitated in the quarter and expects about 80% to be funded by institutions in calendar 2020.

The CEO framed the quarter as the start of a transition period under an uncertain regulatory backdrop for P2P lending. He said Hexindai is strategically repositioning toward a loan assistance business, using its borrower-acquisition, risk-management, and operating capabilities to serve institutional partners and diversify funding sources. His tone was confident and forward-looking, emphasizing that the new model should support long-term sustainable growth regardless of how the P2P regulatory environment evolves.

The CFO emphasized that the quarter reflected both declining P2P activity and early progress in the new model. She cited $4.9 million of net revenue, $12.6 million of operating costs and expenses, and a $7.2 million net loss, while noting cost discipline in sales and marketing and a rise in service and development spend tied to employees. She also highlighted the share repurchase program, saying the company had repurchased nearly 1.2 million ADS for about $4 million at an average price of $3.4 per share.

Analyst questions focused on borrower mix, the rationale for loan assistance versus P2P, share repurchases, and the timing/compliance implications of regulators linking P2P platforms to the central bank credit system. Management said 42% of borrowers were acquired online and 58% offline, and that online share should rise as loan assistance scales and microfinance loans, which are acquired purely online, become a larger part of volume. On regulation, management said it had connected with Baihang Credit in January and would keep sharing credit data, describing this as supportive of compliance and credit assessment. On buybacks, management said repurchases depend on share price, trading volume, market conditions, working capital, and business conditions rather than a fixed price target.