Hexindai Reports Unaudited Second Quarter of Fiscal Year 2019 Financial Results

BEIJING,Dec. 3,2018 --Hexindai Inc. (NASDAQ: HX) ("Hexindai" or the "Company"),a fast-growing consumer lending marketplace in China,today announced its unaudited financial results for the quarter ended September 30,2018.

Throughout the release,each ADS represents one ordinary share. Fiscal year refers to the 12 monthsendedMarch 31.

Second Quarter of Fiscal Year 2019 Operational Highlights

Total loan volume facilitated(1) was US$33.8 million (RMB0.2 billion) during the second quarter of fiscal year 2019,a decrease of 87.4% from the second quarter of fiscal year 2018.

Gross billing amount (net of VAT)(2) was US$4.9 million during the second quarter of fiscal year 2019,a decrease of 79.3% from the second quarter of fiscal year 2018.

Gross billing ratio (net of VAT)(3)for credit loans was 14.4% during the second quarter of fiscal year 2019,an increase from 9.0% during the second quarter of fiscal year 2018.

Number of borrowers(4)was 2,183 during the second quarter of fiscal year 2019,a decrease of 89.5% from the second quarter of fiscal year 2018.

Number of investors(5) was 38,825 during the second quarter of fiscal year 2019,a decrease of 9.2% from the second quarter of fiscal year 2018.

(1) Total loan volume facilitated is defined as the total principal amount of loans facilitated on our marketplace during the relevant period.

(2) "Gross billing amount" is defined as the aggregated loan facilitation fees and loan management fees charged to borrowers before cash incentives,net of value added tax. It differs from the revenue recognized at the time of recognition. For an individual secured loan transaction,the gross billing amount equals the gross accumulative loan management service revenue recognized over the term of the secured loan. For the traditional individual credit loan transaction,as the loan facilitation service fees are charged upfront upon the release of funds to borrowers,the gross billing amount equals the loan facilitation service revenue,while for the newly introduced individual credit loan we launched from third quarter of fiscal year 2018,the service fees are charged each period,the gross billing amount equals the gross accumulative loan facilitation service revenue recognized over the estimated term of the credit loan.

(3) "Gross billing ratio" is defined as the gross billing amount divided by loan volume facilitated,presented in percentage. It is an operation metric we believe is a more accurate indicator of profitability.

(4) Refers to borrowers who recorded successful borrowing activity on our online marketplace during the relevant period.

(5) Refers to investors who made loan investments on our online marketplace during the relevant period.

Second Quarter of Fiscal Year 2019 Unaudited Financial Highlights

Net revenue was US$3.6 million during the second quarter of fiscal year 2019,a decrease of 82.9% from the second quarter of fiscal year 2018.

Operating expenseswere US$21.1 million during the second quarter of fiscal year 2019,an increase of 222.1% from the second quarter of fiscal year 2018.

Net loss was US$17.4 million during the second quarter of fiscal year 2019,compared to net income of US$12.7 million in second quarter of fiscal year 2018.

Basic loss per common share in the second quarter of fiscal year 2019 was US$0.36,compared to basic earnings per common shares ("EPS") of US$0.30 in second quarter of fiscal year 2018.

Diluted loss per common share in the second quarter of fiscal year 2019 was US$0.36,compared to diluted EPS of US$0.30 in second quarter of fiscal year 2018.

Adjusted net loss (Non-GAAP)(6) in the second quarter of fiscal year 2019 was US$12.5 million,compared to adjusted net income (Non-GAAP) of US$12.7 million in the second quarter of fiscal year 2018.

Adjusted EBIT (Non-GAAP)(7) in the second quarter of fiscal year 2019 was (US$12.0) million,compared to US$14.7 million in the second quarter of fiscal year 2018.

(6) Adjusted net loss (Non-GAAP),which excluded share-based compensation expenses.

(7) Adjusted EBIT (Non-GAAP),which excluded interest income,income tax and share-based compensation.

Six Months Ended September 30,2018 Operational Data

Loan volume facilitated

Total loan volume facilitated during the six months ended September 30,2018 was US$481.2 million (RMB3.2 billion),an increase of 2.2% from US$458.7 million (RMB3.1 billion) during the same period of fiscal year 2018.

Number of borrowers

Number of borrowers was 31,162 during the six months ended September 30,2018,a decrease of 12.1% from the same period of fiscal year 2018.

Number of investors

Number of investors was 106,432 during the six months ended September 30,an increase of 33.4% from the same period of fiscal year 2018.

Total loan volume facilitated through Hexindai's platform was approximatelyUS$3.0 billion (RMB19.9 billion) from the inception of its business in March 2014 through September 30,2018.

Mr. Xinming Zhou,Chief Executive Officer of Hexindai,commented,"This quarter was certainly challenging for us and the entire P2P sector as the overall market environment shifts around us. The industry is gradually weeding out firms who are financially weaker,fraudulent or unable to maintain compliance standards leaving only the best run remaining. One of the strategic pre-emptive steps we took during the quarter to stay one step ahead of the industry was to protect our existing investors as liquidity in the market tightened and demand for loan transfer products increased. In response,we reduced new loan offerings on our platform and placed a priority on promoting loan transfer products to increase their liquidity and meet the growing demand. While our top line decreased significantly as a result,these steps helped strengthen confidence in our platform and the loyalty of existing investors."

"We nevertheless outperformed the industry average across a number of metrics. Loan balance for the entire sector decreased 25% year-over-year and 17% sequentially during the quarter. This compares to the 88% year-over-year increase we saw and 11% sequential decrease we had during the same period. I believe this speaks to the strength of our platform,strict compliance standards,advanced risk management,product competitiveness,and the trust investors have in us."

"In the long run,regulatory changes will have a positive impact on the industry. We recently completed the submission of our P2P Compliance Self-Inspection Report as the first step and are nearing completion of step two out of the three for full compliance which involves under-going an onsite inspection of our operations by Beijing Internet Finance Association. Increased regulation will raise the barriers to entry and will create a healthier market environment across the sector. This will allow us to leverage our strong cash position and improved risk management,operational efficiency,and marketing capabilities to consolidate the market. Our ability to maintain stringent standards and prioritize our investors has increased our confidence in Hexindai's future and strengthened our ability to lead the P2P industry through this challenging time."

Second Quarter of Fiscal Year 2019 Unaudited Financial Results

Net revenue

Net revenue during the second quarter of fiscal year 2019 was US$3.6 million,a decrease of 82.9% from US$21.2 million during the same quarter of fiscal year 2018. The decrease was primarily due to the significant decrease in the volume of credit loans facilitated through Hexindai's marketplace,which decreased from US$265.6 million (RMB1.8 billion) in the second quarter of fiscal year 2018 to US$33.8 million (RMB0.2 billion) in the same quarter of fiscal year 2019. The decrease in the volume of credit loans facilitated through Hexindai's marketplace was driven by a decrease in the number of credit loan borrowers from 20,675 in the second quarter of fiscal year 2018 to 2,183 in the same quarter of fiscal year 2019.

Operating expenses

Total operating expenses during the second quarter of fiscal year 2019 were US$21.1 million,an increase of 222.1% from US$6.5 million in the same quarter of last fiscal year. The significant increase was primarily due to an increase in sales and marketing expenses,general and administrative expenses and share-based compensation.

Sales and marketing expenses

Sales and marketing expenses during the second quarter of fiscal year 2019 were US$11.7 million,an increase of 218.3% from US$3.7 million during the same quarter of last fiscal year. The increase was primarily due to an increase in employee expenses and advertising expenses associated with enhancing the Company's brand recognition and acquiring more customers.

Service and development expenses

Service and development expenses during the second quarter of fiscal year 2019 were US$2.2 million,an increase of 14.5% from US$1.9 million during the same quarter of last fiscal year. Service and development expenses remained stable when compared to the same period of last fiscal year,which was primarily due to improvements in operational efficiency.

General and administrative expenses

General and administrative expenses during the second quarter of fiscal year 2019 were US$2.2 million,an increase of 135.5% from US$0.9 million during the same period of last fiscal year. The increase was primarily attributable to an increase in employee expenses,professional service fees and rental expenses.

Share-based compensation

Share-based compensation during the second quarter of fiscal year 2019 was US$4.9 million,compared to nil during the same period of last fiscal year. The increase was attributable to awards granted under the 2016 Equity Incentive Plan since November 3,2017 on which date the Company completed its IPO.

Net loss(income)

As a result of the foregoing,the net loss was US$17.4 million during the second quarter of fiscal year 2019,compared to net income of US$12.7 million in second quarter of fiscal year 2018.

Net loss (income) attributable to Hexindai Inc.'s shareholders and EPS

Net loss attributable to the Company's shareholders was US$17.4 million during the second quarter of fiscal year 2019,compared to net income attributable to the Company's shareholders of US$12.7 million in the same period of fiscal year 2018. Accordingly,basic loss per common share in the second quarter of fiscal year 2019 was US$0.36,compared to basic EPS of US$0.30 in the same period of fiscal year 2018.Diluted loss per common share in the second quarter of fiscal year 2019 was US$0.36,compared to diluted EPS of US$0.30 in the same period of fiscal year 2018.

Adjusted net loss (income) attributable to Hexindai Inc.'s shareholders and adjusted EPS

Adjusted net loss attributable to the Company's shareholders,which excluded share-based compensation expenses,was US$12.5 million in the second quarter of fiscal year 2019,compared to adjusted net income attributable to the Company's shareholders of US$12.7 million in the same period of fiscal year 2018. Accordingly,the adjusted basic loss per common share was US$0.26 in the second quarter of fiscal year 2018,compared to the adjusted basic EPS of US$0.30 in the same period of fiscal year 2018. The adjusted diluted loss per common share was US$0.26 in the second quarter of fiscal year 2018,compared to the adjusted diluted EPS of US$0.30 in the same period of fiscal year 2018.

Six Months Ended September 30,2018 Unaudited Financial Results

Net revenue

Net revenue during the six months ended September 30,2018 was US$55.3 million,an increase of 52.1% from US$36.3 million during the same period of last fiscal year. The increase was primarily due to the significant increase in the volume of credit loans facilitated through Hexindai's marketplace,which increased from US$0.4 billion (RMB3.0 billion) in the six months ended September 30,2017 to US$0.5 billion (RMB3.2 billion) in the six months ended September 30,2018. The increase in net revenue was due to the increase in gross billing ratio (net of VAT) for credit loans from 8.9% in the six months ended September 30,2017 to 11.9% in the six months ended September 30,2018.

Operating expenses

Total operating expenses during the six months ended September 30,2018 were US$36.6 million,an increase of 223.0% from US$11.3 million in six months ended September 30,2017. The increase was primarily due to increase in sales and marketing expenses,general and administrative expenses and share-based compensation.

Sales and marketing expenses

Sales and marketing expense during the six months ended September 30,2018 were US$23.4 million,an increase of 274.0% from US$6.3 million from the same period of last fiscal year. The increase was primarily due to an increase in employee expenses,advertising expenses,and a series of marketing and promotional campaigns.

Service and development expenses

Service and development expenses during the six months ended September 30,2018 were US$3.5 million,an increase of 9.4% from US$3.2 million during the same period of last fiscal year. Service and development expenses remained stable when compared to the same period of last fiscal year,which was primarily due to improvements in operational efficiency.

General and administrative expenses

General and administrative expenses during the six months ended September 30,2018 were US$4.6 million,an increase of 146.7% from US$1.8 million during last year. The increase was primarily attributable to an increase in employee expenses and professional service fees.

Share-based compensation

Share-based compensation during the six months ended September 30,2018 was US$5.1 million,increased from nil during the same period of last fiscal year. The increase was attributable to awards granted under the 2016 Equity Incentive Plan since November 3,2017 on which date the Company completed its IPO.

Net income

As a result of the foregoing,a decrease of 43.1% in our net income,which decreased from US$21.6 million during the six months ended September 30,2017 to US$12.3 million during the six months ended September 30,2018

Net income attributable to Hexindai Inc.'s shareholders and EPS

Net income attributable to the Company's shareholders decreased by 43.1% to US$12.3 million in six months ended September 30,2018 from US$21.6 million during the same period of last fiscal year. Accordingly,the basic EPS decreased to US$0.25 in six months ended September 30,2018 from US$0.50 during the same period of last fiscal year and diluted EPS decreased to US$0.23 in six months ended September 30,2018 from US$0.50 during the same period of last fiscal year.

Adjusted net income attributable to Hexindai Inc.'s shareholders and adjusted EPS

Adjusted net income attributable to the Company's shareholders,decreased by 19.3% to US$17.4 million during the six months ended September 30,2018 from US$21.6 million in the six months ended September 30 2017. Accordingly,the adjusted basic EPS decreased to US$0.36 during the six months ended September 30,2018 from US$0.50 during the same period of last fiscal year. Adjusted diluted EPS decreased to US$0.32 during the six months ended September 30,2018 from US$0.50 during the same period of last fiscal year.

Cash and Cash Flow

As of September 30,the Company had cash and cash equivalents of US$53.1 million. Net cashused in operating activities for the six months ended September 30,2018 was US$5.9 million,compared to net cash provided by operating activities of US$25.6 million during the same period of last fiscal year. Net cash used in investing activities for the six months ended September 30,2018 was US$51.2 million,compared to US$0.1 million during the same period of last fiscal year. Net cash used in financing activities for six months ended September 30,2018 was US$15.8 million,compared to net cash provided by financing activities of US$8.8 million in the same period of last fiscal year.

Business Outlook

Based on the information available as of the date of this press release,Hexindai provides the following outlook,which reflects the Company's current and preliminary view and is subject to change (see Safe Harbor Statement below):

Three Months Ending December 31,2018

Total loans facilitated will be in the range of US$56.0 million to US$60.0 million.

Net revenue will be in the range of US$1.4 million to US$1.6 million.

Fiscal Year Ending March 31,2019

Total loans facilitated will be in the range of US$700.0 million to US$720.0 million.

Net revenue will be in the range of US$66.0 million to US$70.0 million.

Use of Non-GAAP Financial Measures

We used adjusted net (loss) income,adjusted EPS and adjusted EBIT,non-GAAP financial measures,in evaluating our operating results and for financial and operational decision-making purposes. "Adjusted net (loss) income" is net income before share-based compensation expenses. "Adjusted EBIT" is earnings before interest,income taxes and share-based compensation. We believed that the non-GAAP financial measures helped identify underlying trends in our business by excluding the impact of share-based compensation expenses,which were non-cash charges. We believed that the adjusted net (loss) income,adjusted EPS and adjusted EBIT provided useful information about our operating results,enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

The non-GAAP measures were not defined under U.S. GAAP and was not presented in accordance with U.S. GAAP. This non-GAAP financial measure had limitations as analytical tools,and when assessing our operating performance,cash flows or our liquidity,investors should not consider them in isolation,or as a substitute for net income,cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP.

We mitigate these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measure,all of which should be considered when evaluating our performance.

For more information on this non-GAAP financial measures,please see the table captioned "Reconciliations of GAAP and non-GAAP measures" set forth at the end of this press release.

Exchange Rate Information

Our business was conducted in China,and our financial records were maintained in RMB,our functional currency. However,we used the U.S. dollar as our reporting currency; therefore,periodic reports made to shareholders will include current period amounts translated into U.S. dollars using the then-current exchange rates,for the convenience of the readers. The financial information was first prepared in RMB and then was translated into U.S. dollars at period-end exchange rates in the H.10 statistical release of the Federal Reserve Board as to assets and liabilities and average exchange rates as to revenue and expenses. Capital accounts were translated at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments were included as a component of accumulated other comprehensive income (loss) in shareholders' equity. We make no representation that any RMB or U.S. dollar amounts could have been,or could be,converted into U.S. dollars or RMB,as the case may be,at any particular rate,or at all. The PRC government imposes control over its foreign currency reserves in part through direct regulation of the conversion of RMB into foreign exchange and through restrictions on foreign trade.

Recent Developments

In December 2018,Hexindai began sharing credit data with Baihang Credit,the first credit-reporting platform for the online lending sector that is backed by China's central bank. Hexindai and other partner companies will make regular transfers of data to Baihang Credit,which will then integrate and process the data collected and transmit individual credit information back to its partner companies. The data shared on the platform will help Hexindai assess its customers' creditworthiness,speed up credit assessment processing and potentially reduce the cost of risk management.

In October 2018,Hexindai completed the submission of its P2P Compliance Self-Inspection Report to the Beijing Municipal Bureau of Financial Work,and are nearing completion of step 2 with an on-site inspection of the Beijing Internet Finance Association. The completion of these mark the first two of three key steps for compliance with industry reforms issued by the National P2P Rectification Office. Hexindai is now focusing on the final third step in the process,including verification of inspection results by the Beijing Municipal Bureau of Financial Work with a field inspection and potentially a final check by higher-level government organizations. Hexindai is actively supporting and participating in this compliance process,which aims to foster the stable growth of the P2P lending industry in China.

In October 2018,Hexindai established an agreement with Shell Energy (China) Limited,a subsidiary of Royal Dutch Shell,to provide price hedging for a substantial volume of National Carbon Allowances (NCA) and support liquidity and market developments of China's National Emissions Trading Scheme (ETS). The agreement is set for three years and will commence when the cement sector is enrolled in China's national emissions trading scheme (ETS) and the Chinese carbon offsets,such as Chinese Certified Emission Reduction (CCER),can be used for compliance purposes. China has already announced plans for a nationwide emission trading scheme in late 2017. The scheme will cover the power industry with plans to expand over seven sectors including petrochemicals,chemicals,cement,and other building materials. The agreement demonstrates Hexindai's commitment to preserving the environment and promoting environmental protection throughout its business.

Conference Call

The Company will host a conference call to discuss the earnings at 8:00 a.m. Eastern Time on Monday,December 3,2018 (9:00 p.m. Beijing/Hong Kong Time on the same day).

Dial-in numbers for the live conference call are as follows:

International

+65 6713-5090

U.S. Toll Free

+1 866-519-4004

Mainland China

4006-208038

Hong Kong Toll Free

8009-06601

Passcode: HX

A telephone replay of the call will be available two hours after the conclusion of the conference call through 8:59 p.m. Beijing/Hong Kong Time,December 11,2018.

Dial-in numbers for the replay are as follows:

International Dial-in

+61 2-8199-0299

U.S. Toll Free

+1 855-452-5696

Passcode: 7955019

A live and archived webcast of the conference call will be available on the Investor Relations section of Hexindai's website at http://ir.hexindai.com/.

About Hexindai Inc.

Hexindai Inc. (NASDAQ: HX) ("Hexindai" or the "Company") is a fast-growing consumer lending marketplace based in Beijing,China facilitating loans to meet the increasing consumption demand of the emerging middle class in China. Hexindai provides borrowers with convenient and ready access to credit through its online marketplace. The Company offers borrowers a wide range of products designed based on customer segmentation data and tailored to the specific needs of the emerging middle class in China by matching them with investors seeking various types of investment products with appropriate risk levels and risk-adjusted returns. Hexindai's strong online and offline user acquisition capabilities combined with an online platform with extensive offline networks,an advanced risk management system,and strong strategic cooperative relationships with a custodian bank and an insurance company to safeguard investments,allows the Company to generate higher customer satisfaction,reliance,and realize faster growth in China.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934,as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets," "guidance" and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"),in its annual report to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Any statements that are not historical facts,including statements about the Company's beliefs and expectations,are forward-looking statements that involve factors,risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include,but not limited to the following: the Company's goals and strategies; its future business development,financial condition and results of operations; the expected growth of the credit industry,and marketplace lending in particular,in China; the demand for and market acceptance of its marketplace's products and services; its ability to attract and retain borrowers and investors on its marketplace; its relationships with its strategic cooperation partners; competition in its industry; and relevant government policies and regulations relating to the corporate structure,business and industry. Further information regarding these and other risks,uncertainties or factors is included in the Company's filings with the SEC. All information provided in this announcement is current as of the date of this announcement,and the Company does not undertake any obligation to update such information,except as required under applicable law.

For more information,please visit ir.hexindai.com

For investor inquiries,please contact:

Hexindai

Ms. Daisy Wang

Tel: +86-10-5380-6196

Email: ir@hexindai.com

Christensen

In China

Mr. Christian Arnell

Phone: +86-10- 5900-1548

E-mail: carnell@christensenir.com

In US

Mr. Tip Fleming

Phone: +1-917-412-3333

Email:tfleming@Christensenir.com

HEXINDAI INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

September 30,

March 31,

2018

2018

US$

US$

ASSETS

Current assets

Cash

53,069,188

132,622,467

Receivables,prepayments and other assets

20,320,402

1,248,562

Loans receivable-current

56,756,803

28,696,234

Interest receivable

913,803

555,502

Total current assets

131,060,196

163,122,765

Non-current assets

Loans receivable-non current

16,328,520

-

Long term investment

1,600,000

-

Property and equipment,net

1,224,173

767,087

TOTAL ASSETS

150,212,889

163,889,852

LIABILITIES

Current liabilities

Accrued expenses and other current liabilities

5,420,978

3,786,955

Income taxes payable

16,613,715

20,059,828

Total current liabilities

22,034,693

23,846,783

TOTAL LIABILITIES

22,783

SHAREHOLDERS' EQUITY

Ordinary shares,$0.0001 par value,500,000,000 shares

authorized,48,907,728 and 47,958,550 shares issued and

outstanding as of September 30,2018 and March 31,

respectively.

4,891

4,796

Additional paid-in capital

64,067,727

58,417,971

Retained earnings

70,249,407

77,241,073

Accumulated other comprehensive (loss) income

(6,143,829)

4,379,229

TOTAL SHAREHOLDERS' EQUITY

128,178,196

140,043,069

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

150,852

HEXINDAI INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

For Three Months Ended

September 30,

For Six Months Ended

September 30,

2018

2017

2018

2017

US$

US$

US$

US$

NET REVENUE

Loan facilitation,post-origination and other

service,net

3,644,694

21,374,343

55,841,699

36,504,933

Business and sales related taxes

(23,532)

(155,441)

(569,040)

(173,110)

NET REVENUE

3,621,162

21,218,902

55,272,659

36,331,823

OPERATING EXPENSES

Sales and marketing

11,749,563

3,691,570

23,414,667

6,260,114

Service and development

2,177,233

1,901,117

3,541,801

3,236,102

General and administrative

2,523

949,803

4,550,316

1,844,550

Share-based compensation

4,910,415

-

5,124,693

-

Total operating expenses

21,073,734

6,542,490

36,631,477

11,340,766

INCOME FROM OPERATIONS

(17,452,572)

14,676,412

18,641,182

24,991,057

OTHER INCOME (EXPENSE)

Other income

608,187

99,401

1,093,164

259,123

Other expense

(2,949)

(1,775)

(22,858)

(5,634)

Total other income,net

605,238

97,626

1,070,306

253,489

INCOME BEFORE INCOME TAXES

(16,847,334)

14,774,038

19,711,488

25,244,546

PROVISION FOR INCOME TAXES

553,241

2,108,997

7,433,448

3,684,941

NET (LOSS) INCOME

(17,400,575)

12,665,041

12,278,040

21,559,605

Less: net loss attributable to non-controlling

interest

-

(2,254)

-

(2,254)

NET (LOSS) INCOME ATTRIBUTABLE TO

HEXINDAI INC'S SHAREHOLDERS

(17,667,295

12,561,859

OTHER COMPREHENSIVE (LOSS) INCOME

Foreign currency translation adjustment

(4,518,279)

614,635

(10,523,057)

1,048,231

COMPREHENSIVE (LOSS) INCOME

(21,918,854)

13,279,676

1,754,983

22,607,836

Less: comprehensive loss attributable to non-controlling interest

-

(423)

-

(423)

COMPREHENSIVE (LOSS) INCOME

ATTRIBUTABLE TO HEXINDAI INC'S

SHAREHOLDERS

(21,280,099

1,608,259

Basic (loss) earnings per common share

(0.36)

0.30

0.25

0.50

Diluted (loss) earnings per common share

(0.36)

0.30

0.23

0.50

Weighted average number of shares outstanding

- basic

48,728,095

42,921,600

48,365,343

42,600

Weighted average number of shares outstanding -diluted

48,600

53,766,719

42,600

HEXINDAI INC.

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(UNAUDITED)

For Three Months Ended

September 30,

For Six Months Ended

September 30,

2018

2017

2018

2017

US$

US$

US$

US$

Net (loss) income attributable to Hexindai Inc's

shareholders

(17,859

Add: Share-based compensation expenses*

4,693

-

Adjusted net (loss) income attributable to Hexindai

Inc's shareholders

(12,490,160)

12,295

17,402,733

21,859

Weighted average number of shares outstanding

- basic

48,600

48,600

Weighted average number of shares outstanding

- diluted

48,600

Basic (loss) earnings per common share

(0.36)

0.30

0.25

0.50

Adjusted basic (loss) earnings per common share

(0.26)

0.30

0.36

0.50

Diluted (loss) earnings per common share

(0.36)

0.30

0.23

0.50

Adjusted diluted (loss) earnings per common share

(0.26)

0.30

0.32

0.50

Net (loss) income attributable to Hexindai Inc's

shareholders

(17,859

Less: Interest income

(35,681)

(99,401)

(239,194)

(149,232)

Add: Income tax expense**

553,941

Share-based compensation expenses*

4,693

-

Adjusted EBIT

(11,972,600)

14,891

24,596,987

25,097,568

* Share-based compensation expenses are not tax deductible under relevant tax laws and regulations in our tax jurisdiction.

** Income tax expenses include US$5,352,US$14,US$35,879 and US$22,385 related to the current tax expenses on

interest income,which was recognized for the three month period ended September 30,2018 and 2017 and six month period

ended September 30,2018 and 2017,respectively.

The following table presents our summary operating data for three months ended September 30,2017 and 2018.

For Three Months Ended September 30,

For Six Months Ended September 30,

Growth Rates (4)

2018

2017

2018

2017

(RMB)

(US$)

(RMB)

(US$)

(RMB)

(US$)

(RMB)

(US$)

Three months

ended September

30,2018

compared to

September 30,

2017

Six months

ended

September

30,2018

compared to

September

30,2017

Loan volume facilitated

(in thousands,except percentages and numbers (5))

(in thousands,except percentages and numbers (5))

Credit loan principal

230,038

33,803

1,771,255

265,619

3,170,710

481,176

3,039,551

449,355

-87.0%

4.3%

Secured loan principal

-

-

53,320

7,996

-

-

63,220

9,346

-100.0%

-100.0%

Total

230,038

33,803

1,824,575

273,615

3,710

481,176

3,102,771

458,701

-87.4%

2.2%

Number of transactions

facilitated (1)

Credit loan transactions

2,183

2,183

20,731

20,731

31,175

31,175

35,454

35,454

Secured loan transactions

-

-

36

36

-

-

49

49

Total

2,183

2,183

20,767

20,767

31,175

4,731

35,503

35,503

Average individual

transaction amount

Credit loan transactions

105

15

85

13

102

15

86

13

Secured loan transactions

-

-

1,481

222

-

-

1,290

191

Overall average

105

15

88

13

102

15

87

13

Gross billing amount (net of

VAT)

Credit loan

33,138

4,869

159,067

23,854

377,833

57,339

271,865

40,191

-79.2%

39.0%

Secured loan

-

-

1,326

199

-

-

1,458

215

-100.0%

-100.0%

Total

33,138

4,869

160,393

24,053

377,833

57,339

273,323

40,406

-79.3%

38.2%

Gross billing ratio (net of

VAT)

-

Credit loan

14.4%

14.4%

9.0%

9.0%

11.9%

11.9%

8.9%

8.9%

Secured loan

-

-

2.5%

2.5%

-

-

2.3%

2.3%

Total

14.4%

14.4%

8.8%

8.8%

11.9%

11.9%

8.8%

8.8%

Number of borrowers

-

Credit loan transactions

2,675

20,675

31,162

31,162

35,398

35,398

Secured loan transactions

-

-

22

22

-

-

35

35

Total

2,697

20,697

31,162

31,162

35,433

35,433

-89.5%

-12.1%

Number of investors

Credit loan transactions (2)

33,370

33,370

28,000

28,000

91,966

91,966

52,900

52,900

Secured loan transactions (3)

-

-

91

91

-

-

118

118

Credit and secured loan

transactions

5,455

5,455

14,680

14,680

14,466

14,466

26,786

26,786

Total

38,825

38,825

42,771

42,771

106,432

106,432

79,804

79,804

-9.2%

33.4%

(1) Number of transactions facilitated is defined as the total number of loans facilitated on our marketplace during the relevant period.

(2) Refers to investors who exclusively invested in credit loan transactions during the relevant period.

(3) Refers to investors who exclusively invested in secured loan transactions during the relevant period.

(4) Growth rates are calculated by RMB and exclude the impact from exchange rate in different reporting period to reflect a real growth rate.

(5) Numbers refer to number of transactions facilitated,number of investors and numbers of borrowers presented in the table.

The following table sets forth our revenue breakdown for the periods indicated:

For Three Months Ended

September30,

2018

2017

2018

2017

Revenue(1)

US$

US$

US$

US$

Loan facilitation service

4,870,258

23,979,371

58,922,136

40,425,548

Loan management service

-

707

-

168,338

Post-origination service

4,279

748,900

6,693,158

1,077,828

Interest income on loans

681,599

-

1,431,326

-

Others

-

3,193

-

9,618

Business tax

(23,110)

Cash incentives

(6,235,442)

(3,357,828)

(11,204,921)

(5,176,399)

Net Revenue

3,823

(1) Represents amounts net of VAT

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