UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of September 2018

--------------

 

Commission File Number: 001-35147

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Renren Inc.

 

5/F, North Wing

18 Jiuxianqiao Middle Road

Chaoyang District, Beijing 100016

People’s Republic of China

+86 (10) 8448-1818

 

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x           Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):________________

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):________________

 

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

  Renren Inc.
     
     
    /s/ Thomas Jintao Ren
  Name: Thomas Jintao Ren
  Title: Chief Financial Officer

 

 

Date: September 11, 2018

 

 

 

Exhibit Index

 

Exhibit 99.1—Press release

 

 

 

Exhibit 99.1

 

 

Renren Announces Unaudited Second Quarter 2018 Financial Results

 

BEIJING, China, September 11, 2018 — Renren Inc. (NYSE: RENN) ("Renren" or the "Company"), which operates a social networking service (SNS) business, used auto business and SaaS business, today announced its unaudited financial results for the second quarter ended June 30, 2018.

 

Second Quarter 2018 Highlights

 

Total net revenues were US$135.0 million, a 582% increase from the corresponding period in 2017.

 

Used auto sales revenue was US$122.7 million. We initiated used auto sales business through one of our subsidiaries in the second quarter of 2017.
Internet Value-Added Services (IVAS) and others net revenues were US$12.1 million, an 18.6% increase from the corresponding period in 2017.
Financing income was US$0.2 million, a 97.4% decrease from the corresponding period in 2017.

 

Gross profit was US$5.4 million, a 16.0% increase from the corresponding period in 2017.

 

Operating loss was US$32.6 million, compared to an operating loss of US$15.1 million in the corresponding period in 2017.

 

Net income (1) attributable to the Company was US$166.1 million, compared to a net loss of US$17.2 million in the corresponding period in 2017.

 

Adjusted loss from continuing operations (2) (non-GAAP) was US$19.0 million, compared with an adjusted loss from continuing operations of US$9.9 million in the corresponding period in 2017.

 

Adjusted net income (2) (non-GAAP) was US$177.5 million, compared to an adjusted net loss of US$12.0 million in the corresponding period in 2017.

 

(1)On April 30, 2018, the Company announced a series of transactions that included a cash dividend by the Company and a private placement by its subsidiary Oak Pacific Investment (the “Transaction”). The Transaction was completed in June 2018. The operational results of Oak Pacific Investment for the three months ended June 30, 2017, March 31, 2018, and June 30, 2018, have been excluded from the Company’s financial results from continuing operations and have been separately presented under discontinued operations. There was a one-time gain amounting to US$180.8 million that resulted from the Transaction and was not related to Renren’s continued operations post Transaction.

 

(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.

 

 

“We are pleased that our revenues grew 582% year-over-year, supported by the addition of our used auto retail business one year ago.  We have been able to leverage Renren’s past experience in integrating more technology into our auto business, including a mobile app for consumers to browse for autos and purchase value-added services, big data analytics to optimize procurement and an auto dealership SaaS platform that improve efficiencies in our dealership operations.  Q2 also saw the disposition of almost all of our investments in private companies.  We believe this will sharpen our management focus on our auto and SaaS operating businesses as we strive to create sustainable shareholder value for the long term,commented Joseph Chen, Chairman and Chief Executive Officer.

 

 

 

 

Second Quarter 2018 Results

 

Total net revenues for the second quarter of 2018 were US$135.0 million, representing a 582% increase from the corresponding period in 2017, due to the launch of the used auto retail business in the second quarter of 2017.

 

Used auto sales revenue of US$122.7 million was generated through one of our subsidiaries conducting our used auto sales business, which is a new business that we initiated in the second quarter of 2017.

 

IVAS and others net revenues were US$12.1 million, representing an 18.6% increase from the corresponding period of 2017. The increase was mainly due to the revenue from our Renren mobile live streaming service and SaaS business.

 

Financing income was US$0.2 million for the second quarter of 2018, compared to US$8.6 million in the corresponding period of 2017. The decrease was in line with the decrease of financing receivable due to the reformation of used auto dealership financing services from US$238.6 million as of June 30, 2017 to US$13.2 million as of June 30 2018.

 

Cost of revenues was US$129.6 million, compared to US$15.1 million from the corresponding period of 2017. The increase was primarily due to the cost of used auto sales.

 

Operating expenses were US$38.0 million, a 92.6% increase from the corresponding period of 2017.

 

Selling and marketing expenses were US$9.9 million, an 81.4% increase from the corresponding period of 2017. The increase was primarily due to the increase in headcount and personnel related expenses for the used auto sales business.  

 

Research and development expenses were US$6.8 million, a 48.3% increase from the corresponding period in 2017. The increase was primarily due to an increase in headcount and personnel related expenses for the SaaS business.

 

General and administrative expenses were US$21.3 million, a 120% increase from the corresponding period in 2017. 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$13.5 million, compared to US$5.2 million in the corresponding period in 2017. The increase was mainly due to a modification which repriced the exercise price with respect to options.

 

Loss from operations was US$32.6 million, compared to a loss from operations of US$15.1 million in the corresponding period in 2017.

 

Loss in equity method investments was US$0.6 million, compared to earnings of US$57.7 million in the corresponding period in 2017.

 

Net income attributable to the Company was US$166.1 million, compared to a net loss of US$17.2 million in the corresponding period in 2017. The improvement was primarily due to a US$180.8 million one off gain recognized resulting from the transaction the Company announced on April 30, 2018.

 

Adjusted loss from continuing operations (non-GAAP) was US$19.0 million, compared with an adjusted loss from operations of US$9.9 million in the corresponding period in 2017. Adjusted loss from operations is defined as loss from operations excluding share-based compensation expenses and amortization of intangible assets.

 

 

 

 

Adjusted net income (non-GAAP) was US$177.5 million, compared to an adjusted net loss of US$12.0 million in the corresponding period in 2017. The adjusted net income for the second quarter of 2018 was mainly attributable to a one-time gain amounting to US$180.8 million that resulted from the foresaid Transaction. Adjusted net income (loss) is defined as net income (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$123 million to US$128 million in the third quarter of 2018, representing a 104.3% to 112.6% year-over-year increase. This forecast reflects the Company’s current and preliminary view, which is subject to change.

 

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 social networking service (SNS) business, used auto business and SaaS business. Renren's American depositary shares, each of which represents fifteen 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 third quarter of 2018 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 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. 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: our goals and strategies; our future business development, financial condition and results of operations; the expected growth of the social networking site market in China; our expectations regarding demand for and market acceptance of our services; our expectations regarding the retention and strengthening of our relationships with used auto dealerships; our plans to enhance user experience, infrastructure and service offerings; competition in our industry in China; and relevant government policies and regulations relating to our industry. 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 net income (loss)" which are defined as "non-GAAP financial measures" by the SEC, in evaluating its business. We define 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 the operating results and business performance from operational perspectives. 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, we present the foresaid impact in "Reconciliation of non-GAAP results of operations measures to the comparable GAAP financial measures" retrospectively. We present adjusted income (loss) from operations and net income (loss) because they are used by our management to evaluate our operating performance. We also believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our consolidated results of operations in the same manner as our management and in comparing financial results across accounting periods and to those of our 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.

 

 

For more information, please contact:

 

Cynthia Liu

Investor Relations Department

Renren Inc.

Tel: (86 10) 8448 1818 ext. 1300

Email: ir@renren-inc.com

 

 

 

 

RENREN INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands of US dollars)

             

 

   December 31,   June 30, 
   2017   2018 
         
 ASSETS          
 Current assets:          
 Cash and cash equivalents  $128,595   $30,508 
 Restricted cash   47,253    6,347 
 Accounts receivable, net   6,260    1,423 
 Financing receivable, net   125,478    13,225 
 Prepaid expenses and other current assets   50,183    59,148 
 Amounts due from related parties   15,224    6,708 
 Inventory, net   95,012    75,215 
 Total current assets   468,005    192,574 
           
 Non-current assets:          
 Long-term financing receivable, net   8     
 Property and equipment, net   29,532    1,891 
 Goodwill and intangible assets, net   104,197    124,168 
 Long-term investments   565,366    35,565 
 Non-current amount due from a related party       90,000 
 Other non-current assets   27,056    41,218 
 Total non-current assets   726,159    292,842 
 TOTAL ASSETS  $1,194,164   $485,416 
           
 LIABILITIES AND EQUITY          
 Current liabilities:          
 Accounts payable  $20,046   $6,473 
 Short-term debt   61,479    54,300 
 Accrued expenses and other current liabilities   45,898    30,711 
 Payable to investors   142,689    2,353 
 Amounts due to related parties   17,746    3,545 
 Deferred revenue and advance from customers   11,489    6,895 
 Income tax payable   12,652    12,513 
 Contingent consideration   5,944    7,812 
 Long-term debt - current   52,604     
 Total current liabilities   370,547    124,602 
           
 Non-current liabilities:          
 Long-term debt   47,665    40,000 
 Long-term contingent consideration   60,850    79,181 
 Other non-current liabilities   6,356     
 Total non-current liabilities   114,871    119,181 
 TOTAL LIABILITIES  $485,418   $243,783 
           
 Shareholders' Equity:          
 Class A ordinary shares   727    731 
 Class B ordinary shares   305    305 
 Additional paid-in capital   1,303,117    703,619 
 Statutory reserves   6,712    6,712 
 Accumulated deficit   (653,173)   (511,708)
 Accumulated other comprehensive income   17,116    (2,178)
 Total Renren Inc. shareholders' equity   674,804    197,481 
 Noncontrolling interests   33,942    44,152 
 TOTAL EQUITY   708,746    241,633 
 TOAL LIABILITIES AND EQUITY  $1,194,164   $485,416 

 

 

 

 

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)

                                 

 

   For the Three Months Ended   For the Six Months Ended 
   June 30,   March 31,   June 30,   June 30,   June 30, 
   2017   2018   2018   2017   2018 
 Net revenues:                         
 Used auto sales  $1,042   $123,606   $122,728   $1,042   $246,334 
 IVAS and others   10,187    13,970    12,085    21,311    26,055 
 Financing income   8,559    2,203    224    17,906    2,427 
 Total net revenues   19,788    139,779    135,037    40,259    274,816 
 Cost of revenues   (15,107)   (127,740)   (129,605)   (29,319)   (257,345)
 Gross profit   4,681    12,039    5,432    10,940    17,471 
 Operating expenses:                         
 Selling and marketing   (5,467)   (11,397)   (9,916)   (10,930)   (21,313)
 Research and development   (4,606)   (7,339)   (6,830)   (10,385)   (14,169)
 General and administrative   (9,681)   (17,932)   (21,292)   (21,609)   (39,224)
 Total operating expenses   (19,754)   (36,668)   (38,038)   (42,924)   (74,706)
 Loss from operations   (15,073)   (24,629)   (32,606)   (31,984)   (57,235)
                          
 Other income (expenses)   208    (10,676)   30,815    (39)   20,139 
 Interest income   346    803    411    654    1,214 
 Interest expenses   (931)   (1,264)   (900)   (1,822)   (2,164)
 Realized loss on short-term investments   (201)           (101)    
 Total non-operating (loss) income   (578)   (11,137)   30,326    (1,308)   19,189 
                          
 Loss before provision of income tax and earnings (loss) in equity method investments, net of tax   (15,651)   (35,766)   (2,280)   (33,292)   (38,046)
 Income tax expenses   (688)   (831)   (116)   (1,468)   (947)
 Loss before earnings (loss) in equity method investments, net of tax   (16,339)   (36,597)   (2,396)   (34,760)   (38,993)
  Earnings (loss) in equity method investments, net of tax   57,668    (808)   (621)   57,741    (1,429)
 Income (loss) from continuing operations   41,329    (37,405)   (3,017)   22,981    (40,422)
                          
 Discontinued operation:                         
 Loss from operations of discontinued operations, net of income tax   (58,524)   (4,165)   (11,793)   (56,354)   (15,958)
 Gain on deconsolidation of the subsidiaries, net of income tax           180,829        180,829 
 (Loss) income from discontinued operations, net of tax   (58,524)   (4,165)   169,036    (56,354)   164,871 
 Net (loss) income   (17,195)   (41,570)   166,019    (33,373)   124,449 
 Net loss attributable to noncontrolling interests       20    100        120 
                          
 Net (loss) income attributable to Renren Inc.  $(17,195)  $(41,550)  $166,119   $(33,373)  $124,569 
                          
 Net (loss) income per share from discontinued operations attributable to Renren Inc.shareholders:                         
 Basic  $(0.06)  $(0.00)  $0.16   $(0.05)  $0.16 
 Diluted  $(0.06)  $(0.00)  $0.15   $(0.05)  $0.15 
                          
 Net (loss) income per share attributable to Renren Inc. shareholders:                         
 Basic  $(0.02)  $(0.04)  $0.16   $(0.03)  $0.12 
 Diluted  $(0.02)  $(0.04)  $0.15   $(0.03)  $0.11 
 Net (loss) income  attributable to Renren Inc. shareholders per ADS*:                         
 Basic  $(0.25)  $(0.60)  $2.41   $(0.49)  $1.81 
 Diluted  $(0.25)  $(0.60)  $2.21   $(0.49)  $1.71 
                          
 Weighted average number of shares used in calculating net (loss) income per ordinary share attributable to Renren Inc. shareholders:                         
 Basic   1,027,812,327    1,033,468,103    1,035,143,003    1,027,097,660    1,034,310,179 
 Diluted   1,027,812,327    1,033,468,103    1,130,285,008    1,027,097,660    1,093,742,531 
 Weighted average number of shares used in calculating net (loss) income per ordinary share from discontinued operations attributable to Renren Inc. shareholders:                         
 Basic   1,027,812,327    1,033,468,103    1,035,143,003    1,027,097,660    1,034,310,179 
 Diluted   1,027,812,327    1,033,468,103    1,130,285,008    1,027,097,660    1,093,742,531 

 

* Each ADS represents 15 Class A ordinary shares.

 

 

 

 

Reconciliation of Non-GAAP results of operations measures to the comparable GAAP financial measures

(In thousands of US dollars)

                                 

 

   For the Three Months Ended   For the Six Months Ended 
   June 30,   March 31,   June 30,   June 30,   June 30, 
   2017   2018   2018   2017   2018 
                     
 Loss from opeartions  $(15,073)  $(24,629)  $(32,606)  $(31,984)  $(57,235)
 Add back: Shared-based compensation expenses   5,169    12,327    13,465    10,312    25,792 
 Add back: Amortization of intangible assets       131    131        262 
 Adjusted loss from operations  $(9,904)  $(12,171)  $(19,010)  $(21,672)  $(31,181)
 Net (loss) income  $(17,195)  $(41,550)  $166,119   $(33,373)  $124,569 
 Add back: Shared-based compensation expenses   5,169    12,327    13,465    10,312    25,792 
 Add back: Fair value change of contingent consideration       10,265    (2,197)       8,068 
 Add back: Amortization of intangible assets       131    131        262 
 Adjusted net (loss) income  $(12,026)  $(18,827)  $177,518   $(23,061)  $158,691