China Rapid Finance Limited (NYSE:XRF)

SHANGHAI, May 6, 2020 /PRNewswire/ -- China Rapid Finance Limited (NYSE: XRF) (the "Company") today announced the execution of a set of agreements (the "Agreements") on May 5, 2020 with Yong Bao Two Ltd. ("YBT"), the parent company of SOS Information Technology Co., Ltd. ("SOS") via a variable interest entity ("VIE"), the shareholders of YBT ("YBT Shareholders"), eight sophisticated investors introduced by YBT (the "Purchasers," collectively with the YBT Shareholders as the "Investors") and True North Financial, LLC ("True North").

The Agreements will allow the Investors to acquire share amounts previously issued to True North as well as certain additional shares in exchange for the repayment of the Senior Secured Promissory Note issued by True North Financial. YBT shareholders will be contributing the YBT business into XRF. The purchasers will make certain cash investments. The per share purchase price for the transaction is $1.36 which reflects an approximate 25% premium to the 30-day average closing price at signing.

Under the terms of the Agreements, True North will transfer 37,985,293 Class A shares and the Company will issue 3,465,574 Class B ordinary shares to the Investors. To compensate for the price difference between the True North financing ($1.93) and the current market price (30-day average closing price before signing), true-up shares of about 8,066,241 Class A and 9,806,331 Class B ordinary shares shall be issued to the Investors. All of the Class B Shares previously issued to True North will be canceled. Upon closing, the Company will have 131,039,056  total shares outstanding. The Agreements are subject to a number of closing conditions and there is no assurance that such conditions will be met or satisfied.

Upon the closing, YBT will become a wholly owned subsidiary of the Company. YBT, through its consolidated subsidiaries, is a significant player in the emergency rescue business providing emergency healthcare services, emergency roadside assistance, emergency living assistance, and other rescue services in China.

Dr. Zane Wang will be leaving as Chairman, CEO and as a member of the Company's board of directors. He will be focusing on the winding down of the P2P business in China and the "Wealth Sharing" program.  The Company will end the previous cooperation agreement with Hongkong Outjoy Education Technology Co., Ltd. ("OET") and cancel the unrealized warrants issued thereunder.

Mr. Yandai Wang, CEO of SOS (no relation to Zane Wang) will be appointed as the Executive Chairman and CEO of the Company. Mr. Wang has over 20 years of industrial experience in emergency rescue, telecom and call center services. He has been a visionary leader in the emergency rescue industry in China which has experienced explosive growth in the past decade.

Mr. Douglas Brown, an independent director of the Company, founder of Dlb Capital and former Vice Chairman-Investment Banking at Morgan Stanley, will be appointed as the Non-Executive Chairman of the Board of XRF.

The XRF Board has also appointed two new independent directors nominated by YBT, Mr. Jonathan Zhang who serves as the Chairman of 5C Group International Asset Management and Mr. Wenbin Wu who serves as the Chairman of Shenzhen Rongde Investments Ltd. and Shenzhen Rongde Enterprise Management Advisory Company. Both new directors will join the Company's Audit and Compensation Committees.

Upon closing, XRF's fin-tech business will drive cross-sell opportunities and leverage funding sources from SOS' portfolio. The Company expects significant growth potential with the combination of SOS' emergency rescue services and XRF's fin-tech services' member base, which represents over 55 million members combined.

Mr. Douglas Brown commented: "We couldn't be more excited about these developments.  Since the change in regulations regarding the P2P industry we have been solely focused on conserving cash and making collections on behalf of our platform funders. As a result of these transactions we can now focus on growth. We believe that the addition of the SOS business will give the Company unparalleled opportunities in two areas: it gives us the resources to take advantage of valuable financial services licenses we have, as well as pursue the evolving capital markets opportunities within the portfolio on behalf of our platform investors. In addition, it gives us an entry into the fast-expanding emergency rescue business in China. The SOS customer base expanded 100% in last 6 months of 2019. Cross selling to the 55 million combined customers can create something exciting that will benefit our existing shareholders while giving XRF valuable resources to help transform the fin-tech side of our business. I am also excited to work with the two new independent directors who will bring extensive industry and management experience."

SOS' CEO Mr. Yandai Wang commented, "We are excited about the new opportunity and glad to be a part of XRF. Based on our vast resources in the emergency rescue and related industries, we believe this will provide us with meaningful business synergy and create value for XRF's shareholders. We are also looking forward to joining XRF and will remain committed to maintaining the highest standards of transparency and compliance."

SHANGHAI, March 25, 2020 /PRNewswire/ -- China Rapid Finance Limited (NYSE: XRF)  today announced it has reached a non-binding letter of intent on investment and cooperation with SOS Health Rescue Services Ltd. ("SOS"). Subject to due diligence and other conditions, the parties may enter into a merger or similar transaction in which SOS or its stockholders will own a controlling interest of the outstanding equity in XRF. The transaction is subject to numerous conditions and there is of course no assurance that such a transaction will be consummated on the terms and timeline indicated.

This merger, if completed, will allow XRF to enter the new and growing area of consumer health services and health care related financial services.

XRF and SOS are targeting the signing of the initial agreement by end of March 2020.

SHANGHAI, Nov. 14, 2019 /PRNewswire/ -- China Rapid Finance Limited (NYSE: XRF) (the "Company") today announced two developments that mark significant progress in regaining compliance with the New York Stock Exchange's Continued Listing requirements.

The Company completed its 2018 financial statement audit and filed its 2018 Annual Report on Form 20-F with the U.S. Securities and Exchange Commission (the "SEC").

In addition, the Company instructed its Depositary Bank to implement a ratio change for its American Depositary Shares ("ADSs"). The new ratio will be 10 Class A ordinary shares per one ADS. The Company expects the effective date for the ratio change will be on or around December 2, 2019; however, the exact date could change depending on the timing of SEC approval.

Finally, the Company announced that Dr. Po Wang will now focus on new business development in order to accelerate the Company's growth and planned return to profitability. As a result, Dr. Wang's title was changed from Co-CEO to Executive Vice-President, New Ventures. Dr. Wang will remain on the Board as an executive director. A key element of the Company's recovery plan is to partner with multiple financial services enterprises that can leverage the Company's "decision-making" technology to better serve their large customer bases.

SHANGHAI, Nov. 4, 2019 /PRNewswire/ -- China Rapid Finance Limited (XRF) ("XRF" or "the Company") today announced receipt of a letter from the New York Stock Exchange ("NYSE") accepting the Business Transformation Plan ("the Plan") submitted by XRF on September 13, 2019. The Plan lays out a roadmap for addressing and achieving the NYSE's continued listing criteria. The Company believes its Plan offers a reasonable and achievable path toward restructuring its business and eventually resuming robust growth, serving the emerging consumer credit market in China.

The Plan tracks the business transformation initiatives announced by the Company over the past several months, which the Company is in the process of implementing now. Key elements of the plan include "developing business in new segments through newly established partnerships" and "improving communications with investors." The Plan includes achievement of the market cap and shareholder equity listing criteria. The Plan extends through December 2020, and will be updated regularly.

As part of the Plan, XRF intends to file Form 20-F for the fiscal year ended December 31, 2018, on or before November 15, 2019.

SHANGHAI, Oct. 8, 2019 /PRNewswire/ -- China Rapid Finance Limited (XRF) ("XRF" or the "Company") today announced the signing of Letters of Intent (the "LOIs") with Chengdu Qiye Technology Co., Ltd., ("Qiye") outlining how the Companies will partner to offer services for institutionally-funded lending to small and medium sized businesses ("SMB"). This new partnership marks another important milestone in the Company's business transformation since withdrawing from the P2P lending business.

Under the planned partnership, XRF will provide technology development and risk management services to Qiye through an operating subsidiary under its Cayman Company. The subsidiary is intended to become the Company's fintech and service revenue driver in the SMB "Lend Aid" business. No retail funding will be used for this new business. The new business will combine XRF's established and sophisticated technology for lending and risk management technology with Qiye's marketing and customer channel expertise in order to help institutional lenders more effectively reach potential SMB borrowers. XRF believes that this partnership will further drive its transformation into a rapidly growing platform focused on institutional lending to SMBs.

Dr. Po Wang, Co-CEO of China Rapid Finance, commented, "The Chinese government is actively promoting lending to SMBs, which makes this an attractive market opportunity for us. The foundation of our partnership is the current clientele of Qiye, which has already established a fast-growing SMB loan-aid business with institutional funding. China Rapid Finance strengthens the product offering via its pioneering financial services and risk management technology."

Dr. Zane Wang, Chairman and Co-CEO of XRF, stated: "We believe this endeavor can create meaningful value for our shareholders as it drives expected revenue and profit growth. We are fully committed to transforming XRF away from P2P lending and toward broader fintech services in an orderly and responsible manner."

SHANGHAI, Oct. 1, 2019 /PRNewswire/ -- China Rapid Finance Limited (XRF) ("XRF" or the "Company") today announced the appointment of Haoxin Certified Public Accountants Company, Ltd. ("Haoxin"), a member firm of TGS Global, as the Company's independent registered public accounting firm.

Haoxin replaces PricewaterhouseCoopers Zhong Tian LLP ("PwC"), which previously was the independent registered public accounting firm for XRF.  The appointment of Haoxin has been approved by both the Audit Committee and the Board of Directors (the "Board") of the Company.  XRF's intention is to file its Annual Report on Form 20-F for its fiscal year ended December 31, 2018 on or before November 15, 2019.

The reports of PwC on the consolidated financial statements of XRF and its subsidiaries as of and for the years ended December 31, 2016 and 2017 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles.

The Board would like to express its sincere gratitude to PwC for its professionalism and quality of services rendered to the Company over the past years.

SHANGHAI, July 25, 2019 /PRNewswire/ -- China Rapid Finance Limited (XRF) (the "Company") today announced that it had received a letter from the New York Stock Exchange (the "NYSE") notifying it that the Company was not in compliance with the NYSE's continued listing standards because, as of May 31, 2019, the 30 trading-day average market capitalization of the Company's ADSs representing Class A ordinary shares was below $50 million and, as of September 30, 2018, the Company's stockholders' equity was less than $50 million. This notice does not have an immediate effect on the listing of the Company's ADSs representing Class A ordinary shares.

In accordance with NYSE rules, the Company has notified the NYSE that it intends to cure the deficiency. Under the NYSE rules, the Company has 90 days from the receipt of the notification to submit a plan advising the NYSE of definitive action the Company has taken, or is taking, that would bring the Company into conformity with the continued listed standards within 18 months of receipt of the notification. The Company intends to develop and submit a business plan to bring it into compliance with the listing standards within the required timeframe.

The NYSE will make a determination as to whether the Company has made a reasonable demonstration of an ability to come into conformity in the 18-month period. If the NYSE accepts the plan, the Company's ADSs representing Class A ordinary shares will continue to be listed and traded on the NYSE during the 18-month cure period, subject to the Company's compliance with other continued listing standards, and the Company will be subject to quarterly monitoring by the NYSE for compliance with the plan.

SHANGHAI, June 17, 2019 /PRNewswire/ -- China Rapid Finance Limited (XRF) ("XRF" or the "Company") today announced the signing of a cooperation agreement (the "Cooperation Agreement") with Hongkong Outjoy Education Technology Co., Ltd. ("OET") to form a new operating subsidiary of the Company (the "Project Company"), which will operate an institutionally-funded Lend Aid platform intended to become the Company's core business going forward. 

The new business will operate separately from the Company's existing marketplace lending business.  No retail funding will be used for this new business.  This new business will leverage the Company's existing borrower base and technology and facilitate a range of products for institutional investors, from short-term to long-term installment loans. The Company's management believes that the Project Company will be the engine of transformation and future growth of the Company.

The Project Company's management team will be nominated by OET, including the head of the Project Company, which shall initially be Ms. Yang (Laurance) Liu.  The Project Company's management team will operate under the supervision of the Company's Board of Directors.

The key terms of the Cooperation Agreement include:

• OET will invest an aggregate of RMB 100 million (in the form of U.S. dollars) into the Company over the next six months in exchange for unregistered Class A ordinary shares of the Company, subject to a one-year lock-up period. The Class A ordinary shares will be issued at the weighted average closing price of the Company's ADSs representing Class A ordinary shares on the New York Stock Exchange for the 30 trading days preceding the effective date plus a 30% premium. The investment will be used to fund the operations of the Project Company.
• OET will secure lending capital for the Project Company from licensed financial institutions in China that are qualified to grant loans, and in exchange the Project Company will provide marketing services to assist borrowers that seek to obtain loans and other relevant services from such licensed financial institutions.
• The Company will also issue a warrant to OET to purchase up to an aggregate of 66,402,480 Class A ordinary shares of the Company, subject to the achievement of certain EBITA milestone targets by the Project Company, which range from $3.7 million to $294.1 million, on a trailing four-quarter basis. The purchase price per Class A ordinary share is $0.0001 and the warrant has a term of sixty-six (66) months. If the Project Company achieves the maximum $294.1 million EBITA target during the term of the warrant, OET will have the right to purchase all of the 66,402,480 Class A ordinary shares underlying the warrant.
• To help the Company to accelerate the transition to the Lend Assistant model, an additional warrant to purchase up to an aggregate of 66,402,480 Class A ordinary shares of the Company, with terms and conditions substantially similar to the warrant issued to OET, net of all loan repayments and recoveries, will be issued to a special purpose vehicle and/or a limited partnership entity established for the benefit of the existing lenders on the Company's legacy marketplace lending platform. See more regarding repayment of prior lenders below.
• Mr. Russell Krauss will resign from his positions as co-CEO and Vice Chairman, but will remain on the Board of Directors of the Company.
• Dr. Po Wang, co-CEO of OET will be appointed as co-CEO of the Company.
• Following the completion of OETs full RMB 100 million investment into the Company, OET will be entitled to nominate two additional independent directors to the Company's Board of Directors. These nominations shall be subject to approval of the Company's Board of Directors and the ratification by the shareholders of the Company.
• Following the earlier of the completion of OETs full RMB 100 million investment into the Company or the achievement of the initial $3.7 million EBITA target for the Project Company, the Company's current co-CEO and Chairman, Dr. Zane Wang will resign as co-CEO and Dr. Po Wang will become sole CEO of the Company. Dr. Zane Wangwill continue to serve as the Chairman of the Company, and will supervise the repayments and recoveries for the existing lenders on the Company's marketplace lending platform, as well as the value sharing mechanism through an SPV and/or LPs (as described below).

Dr. Po Wang, of OET commented, "Partnering with China Rapid Finance Limited is a fantastic opportunity for OET.  China Rapid Finance Limited is an established public company on the New York Stock Exchange and has valuable competitive assets, a large customer base and proprietary credit risk scoring algorithms.  Combining those assets with OET's talent and financial strength will enable us quickly create a new marketing services business to connect borrowers with licensed lending institutions, and we believe XRF can rapidly grow into a market leader."

Russell Krauss, Vice Chairman and Co-Chief Executive Officer of the Company commented, "This initiative will be the first step to driving the fundamental transformation of our business.  The new unit will be a core business for China Rapid Finance Limited going forward. We will continue to explore other strategic alternatives that will help us re-position ourselves in the growing consumer lending market in China."

The Cooperation Agreement and associated transactions are consistent with the Company's strategic decision to undergo a transition away from its legacy marketplace lending business. The Company will continue to manage its existing marketplace lender base, and, through the use of its enhanced collection efforts, the Company will continue to assist lenders to recover their investments.

Dr. Zane Wang, Chairman and co-CEO of the Company stated: "We are excited about this transformation and partnership with OET. We believe this will enable China Rapid Finance Limited to secure itself as a leader with a long successful brand and heritage in the consumer lending business. We are fully committed to continue servicing our existing customers and transition our business into the institutional lending model in an orderly and responsible manner and intend to comply with all regulatory requirements and contractual obligations."

SHANGHAI, May 28, 2019 /PRNewswire/ -- China Rapid Finance Limited (XRF) (the "Company") today announced that its Board of Directors has commenced a comprehensive review of strategic alternatives to maximize shareholder value, which could result in a merger or sale of the Company or other transaction involving the Company or its assets. XRF is engaged in formal discussions with several parties that have expressed interest in a potential transaction.

The Company cautions that there can be no assurance that any transaction will be approved or consummated. The Company does not intend to disclose developments relating to its strategic review unless and until the Board of Directors has approved a specific agreement or transaction or has terminated its review of strategic alternatives.

Zane Wang, Founder and Co-Chief Executive Officer said, "The current regulatory environment for P2P lending platforms is creating substantial challenges, both for XRF and the industry as a whole. Many industry participants are considering partnerships, mergers, and other alternatives to bolster their businesses and ensure their long-term viability. We too are engaged in formal discussions that we believe can result in a strengthening of our competitive position."

The Company reiterated that it will continue to endeavor to file its Annual Report and restated quarterly reports in a timely manner. Also, the Company intends to return to compliance with the New York Stock Exchange ("NYSE") Continued Listing requirement by curing the stock price deficiency within the applicable cure period. As required, the Company has notified the NYSE of its intent to cure. During this period, the Company's American Depositary Shares will continue to be traded on the NYSE, subject to compliance with other NYSE continued listing requirements. The NYSE notification does not affect the Company's business operations or its Securities and Exchange Commission reporting requirements and does not conflict with or cause an event of default under any of the Company's material agreements.

SHANGHAI, Dec. 10, 2018 /PRNewswire/ -- China Rapid Finance Limited (the "Company" or "XRF") (XRF), operator of one of China's leading consumer lending marketplaces, announced that its Vice President of Finance Lan Xie has completed her planned onboarding as Chief Financial Officer. Ms. Xie's recruitment was overseen by Kerry Shen, the Company's former CFO, as part of the organizational plans approved earlier this year by the Board of Directors. Ms. Xie joined the Company as Vice President of Finance on October 1st and has transitioned into the Chief Financial Officer role over the past two months with the assistance of Mr. Shen, who is pursuing a new opportunity. 

Russell Krauss, Co-Chief Executive Officer and Vice Chairman of the Company, commented, "Over the past year, we conducted an extensive search for an exceptional professional who can bring additional experience and skill in financial management and corporate strategy. Earlier this year, that work culminated with our successful recruitment of Lan, who has been operating as the company's Vice President of Finance. Because I have witnessed Lan's talent, experience and capability firsthand, I am confident in her ability to make a meaningful contribution to the Company's future success. I offer her my congratulations on this promotion and look forward to observing the positive impact she will have on the Company."

The Company also announced further additions to its leadership team with the appointment of Kevin Kong as General Counsel.

Zane Wang, PhD, the Company's Founder, Chairman, and Co-Chief Executive Officer, commented, "These two appointments affirm our commitment to build a world-class management team. Lan and Kevin are highly regarded experts within their respective fields. They bring extensive skills and global perspective to their roles at XRF. During this period of market and regulatory change, we see a unique opportunity to solidify XRF's position within our industry. While refocusing and expanding our business to adapt to a new environment, we continue to place emphasis on attracting and retaining the industry's top talent."

Lan Xie brings to the Company rich experience in global finance. Prior to joining XRF, she served as China Chief Financial Officer and Vice President of Finance for SciClone. Before SciClone, she served as Vice President of Finance and Investor Relations at Shangpharma Corporation, and was closely involved with that company's Initial Public Offering (IPO) on the New York Stock Exchange (NYSE). Previously, she was Senior Manager of Transaction Services at PricewaterhouseCoopers Zhong Tian LLP in Shanghai, and Manager of Mergers and Acquisitions at Deloitte & Touche in New York. Ms. Xie's financial management experience is complemented by strong academic and professional credentials, including an MBA degree and CPA certification in US GAAP. She is a Massachusetts Certified Public Accountant and received her MBA from INSEAD in France.

Kevin Kong joined the Company earlier this year as General Counsel, and brings over a decade of experience in management, corporate law, and regulatory compliance gained in both New York and Shanghai. In addition to being an experienced corporate attorney from the international law firm of Sidley Austin LLP, Mr. Kong has previously served as General Counsel for two U.S.-listed Chinese companies, Spreadtrum Communications Inc. and ASAT Holdings Limited. Mr. Kong's areas of legal expertise include U.S. securities, capital markets, regulatory compliance, mergers and acquisitions, corporate finance, and corporate governance. Mr. Kong received his Juris Doctor degree from Cornell Law School and his Bachelor's degree with Honors from Columbia University in New York.

SHANGHAI, Oct. 1, 2018 /PRNewswire/ -- China Rapid Finance Limited (the "Company" or "XRF") (XRF), operator of one of China's largest consumer lending marketplaces, today announced that it submitted its P2P Compliance Self-Inspection Report (the "Report") to its local P2P regulatory office. The Report is the first of three steps mandated in the inspection process, a key element in demonstrating compliance with industry reforms being promulgated by the National P2P Rectification Office. 

Dr. Zane Wang, Founder, Chairman and Co-CEO of XRF commented: "The self-inspection process is critical to the stable growth of the P2P lending industry in China. This process creates a standardized level of best practices across the whole industry, which will protect the interests of both borrowers and lenders. We are pleased to submit our report, which marks our active support and participation in the compliance process. We are now ready to work with NIFA-- the National Internet Finance Association--and local authorities to move forward into the second and third stages."

The Company is now focused on the next two process steps, which are 1) a self-disciplinary inspection conducted by NIFA and regional regulatory authorities and 2) verification of inspection results by the regional P2P Rectification Office to conduct on field inspections. The Company has been making preparations and expects to complete these next steps before year-end.

Separately, the Company today announced that Andrew Mason resigned from the board of directors for personal reasons.

Dr. Wang commented, "Andrew served on our board for over 13 years, bringing valuable insight and guidance as we grew from a small start up to a publicly-traded industry leader. We want to express our heartfelt gratitude for Andrew's extraordinary efforts, for how he inspired us, and for his friendship."

Second Quarter 2018 Financial Results

• Net revenue was $23.0 million, up 51% year-on-year, despite a decrease in total loan volume of 43% year-on-year.
• Adjusted EPS was ($0.13) per share, as compared to ($0.26) per share in the prior year period.

Dr. Zane Wang, Chief Executive Officer, Founder and Chairman of the Company, commented: "During the past several months, the P2P industry in China has been experiencing changes driven by regulators' intention to encourage industry consolidation and to establish a healthy environment for long term growth. While the changes have challenged the industry, once market stability is restored we believe the resulting environment will ultimately position the industry's leading companies, including China Rapid Finance, with greater long-term profitable growth potential.  This regulatory process has created an opportunity for China Rapid Finance to demonstrate the high priority that we have always placed on regulatory compliance.  It has also highlighted the benefits of our robust model. We have stepped up our level of product innovation, seeking to identify unmet needs of the consumer in China and offering attractive products that extend beyond facilitating basic loans.  We are seeing early indications that our efforts are effective.  New products designed around membership privileges, referral programs, and special service offerings for our best customers are proving to be popular, generating higher profitability and credit quality, and reinforcing customer loyalty.  By focusing on our customer relationships, we can continue to offer new products, privileges and services to meet the lifetime needs of our best customers."

"Importantly, our funding remained resilient in Q2 despite changing market conditions. Our wealth management staff is in direct communication with our lender community on a regular basis.  We are keeping them informed of our risk management approach and the results we are achieving, which is critical to earning their confidence.  Our lender count remains unchanged at around 18,000, a strong signal that investors recognize the credibility of our marketplace.  Our active customer relationship management and progress on institutional funding contributed to an overall net positive fund inflow for the second quarter.  As important, some institutional investors that exited in the first quarter are now returning to our marketplace and actively exploring new investment opportunities."

Dr. Wang continued, "During the quarter we continued our proactive efforts to structure XRF as a more nimble and streamlined organization.  The actions taken in the first half improved our breakeven point to a loan volume rate that is less than half our 2017 level.  As market stability returns, we are confident that we can operate profitably and grow rapidly by serving our best customers with innovative new products that satisfy their lifetime credit needs."

Dr. Wang concluded, "We are encouraged by regulators' most recent positive messages delivered to the industry.  First, in early August, regulatory authorities issued guidelines for evaluating P2P platforms and reaffirmed their intentions to bolster the healthy development of the P2P industry by encouraging compliant companies to continue operations and apply for registration.  Second, regulatory authorities are developing and consolidating a nationwide credit reporting system. Recognized P2P lending platforms, including China Rapid Finance, have now been requested to report consumer credit data and to contribute to the national credit reporting system alongside the banks and other financial institutions. We believe this is a very positive development. China Rapid Finance was very pleased to respond by submitting our first batch of delinquent borrower data in early August.  Our data was among the first to be listed on a recent notice by the regulatory authorities.  We are committed to actively participate and support this national credit system, and believe this credit reporting can provide additional motivation for borrowers to build positive credit history."

Chief Financial Officer Kerry Shen noted: "The proactive business unit reorganization we undertook in the first half is having the intended impact. Our revenue and gross billings grew meaningfully despite reduced loan volume and new borrower acquisitions.  We also took over $4 million out of our operating expense run rate, and can now achieve breakeven on far lower loan volumes than we generated last year."

"We also overhauled our product lineup in order to achieve three objectives.  First, the overhaul enabled compliance with all applicable regulations.  Second, we shortened our path toward profitability by eliminating loan products with lengthy payback periods.  Third, we introduced a customer loyalty program for our best customers.  The product overhaul increased our take rate, reduced churn, and increased the product portfolio's profitability.  The successful launch of our loyalty program is a clear demonstration of our aspiration to build quality customer relationships, not just one-time borrowers, so our revenue growth doesn't depend solely on the growth of loan volume or replacing existing borrowers with new borrowers. This overhaul is a significant factor in reducing our breakeven point to less than half of the loan volume of 2017."

Kerry continued, "We are encouraged by the support of our lender community, which is a function of our long operating history and low delinquency rates.  With tangible and visible progress this quarter, we are confident that we are well-positioned to operate effectively in the current regulatory and funding environment."

SHANGHAI, Aug. 15, 2018 /PRNewswire/ -- China Rapid Finance Limited ("CRF" or "the Company") (NYSE: XRF), operator of one of China's largest consumer lending marketplaces, announced that its board of directors approved a share repurchase program whereby the Company is authorized to repurchase its ordinary shares in the form of American depositary shares with an aggregate value of up to US$20 million.

Dr. Zane Wang, Chief Executive Officer, Founder and Chairman, said, "With this share repurchase authorization, our board is making a strong statement about our confidence in the future of the Company. We have more than enough cash to fund our current operations and expect to be operating profitably in the near future. The Board and management team firmly believe that the Company's current stock market valuation reflects neither the untapped value of our established customer relationships and the business we have built, nor our prospects for future growth."