Hexindai has completed the submission of its P2P Compliance Self-Inspection Report to the Beijing Municipal Bureau of Financial Work, one of three key steps for compliance with industry reforms from the National P2P Rectification Office. Now, Hexindai will focus on the next two steps in the process, including an inspection conducted by Beijing Internet Finance Industry Association. This will be followed by verification of inspection results by the Beijing Municipal Bureau of Financial Work with field inspection and possible final check by higher level government organizations.
Hexindai announced that it entered into definitive agreements to acquire a 20% equity stake in Musketeer Group, an Indonesian online lending platform that offers consumption installment loans, for approximately $1.6M, and simultaneously completed the acquisition. The Indonesian government has introduced clear and definitive regulations that govern the industry and welcomes both foreign and domestic investors. Hexindai believes that Indonesia's vast online lending market and open regulatory environment present a significant growth opportunity to invest in as its first step into overseas markets.
Hexindai announced that the board of directors of Hexindai has declared a cash dividend of 40c per ordinary share, which is equivalent to 40c per American Depositary Share , or ADS, each of which represents one ordinary share. Holders of the company's ordinary shares, including ordinary shares represented by ADSs, on August 2, will be entitled to receive the cash dividend. The cash dividend will consist of an annual dividend pursuant to the newly adopted annual dividend policy of 27c per ordinary share and a special cash dividend of 13c per ordinary share. Citibank, the depositary bank for the company's ADS program, expects to pay out dividends to ADS holders on or around August 10.
Hexindai announced it has appointed Zecheng Wang as CMO. Wang has more than 13 years of marketing and branding experience with internet technology and e-commerce companies, as well as in the consumer goods industry. Prior to joining Hexindai, Wang was the VP and GM of the marketing department at Yi Cheng Yi Jia Internet Technology, a wholly-owned subsidiary of ENN Group, from 2017 to 2018.
Hexindai initiated with $18 price target at Sidoti. Sidoti analyst Brian Hollenden started coverage of Hexindai with an $18 price target, saying he expects significant growth in terms of loan volume, net revenue and EPS and the potential for significant free cash flow.