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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 December 2020

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Commission File Number: 001-35147

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Renren Inc.

 

4/F, Tower D, Building 15

No.5 Jiangtai Road

Chaoyang District, Beijing 100015

People’s Republic of China

+86 (10) 8417-6807

 

(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/ Yi Yang
  Name: Yi Yang
  Title: Acting Chief Financial Officer

 

Date: December 30, 2020

 

 

 

 

Exhibit Index

 

Exhibit 99.1—Press Release

 

 

 

Exhibit 99.1

 

 

Renren Announces Unaudited First Half 2020 Financial Results

 

BEIJING, China, December 30, 2020 — Renren Inc. (NYSE: RENN) (“Renren” or the “Company”), which operates a premium used auto business in China through its subsidiary Kaixin Auto Holdings (NASDAQ: KXIN) (“Kaixin”) as well as several U.S.-based SaaS businesses, today announced its unaudited financial results for the six months ended June 30, 2020.

 

First Half of 2020 Highlights

 

•Total net revenues were US$41.2 million, an 80.9% decrease from the corresponding period in 2019.

 

—Kaixin revenues (1) were US$33.3 million, an 83.7% decrease from the corresponding period in 2019.

 

•Operating loss was US$23.2 million, improved from an operating loss of US$26.4 million in the corresponding period in 2019.

 

•Net loss attributable to the Company was US$16.6 million, compared to a net income attributable to the Company of US$67.7 million in the corresponding period in 2019.

 

•Adjusted loss from operations (2) (non-GAAP) was US$12.0 million, improved from an adjusted loss from operations of US$19.4 million in the corresponding period in 2019.

 

•Adjusted net loss (2) (non-GAAP) was US$8.5 million, compared to an adjusted net loss of US$15.5 million in the corresponding period in 2019.

 

 

(1)Kaixin revenues are the net revenue from the Company’s subsidiary Kaixin, which are included in the Company’s Auto Group segment. Please refer to the table of additional information for details.
(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.

 

First Half 2020 Results

 

Total net revenues for the first half of 2020 were US$41.2 million, representing an 80.9% decrease from the corresponding period in 2019. The COVID-19 pandemic had a material adverse impact on the Company’s used-car dealership business.

 

Cost of revenues was US$34.0 million, compared to US$201.9 million from the corresponding period of 2019. The decrease was in line with the decrease of revenue.

        

Operating expenses were US$30.4 million, a 23.4% decrease from the corresponding period of 2019.

 

Selling and marketing expenses were US$5.3 million, a 58.5% decrease from the corresponding period of 2019. The decrease resulted from the effort to improve operation efficiency in headcount and personnel-related expenses.  

 

 

 

 

Research and development expenses were US$8.0 million, a 39.5% decrease from the corresponding period in 2019. The decrease was primarily due to a decrease in headcount and personnel-related expenses.

 

General and administrative expenses were US$17.1 million, a 25.0% increase from the corresponding period in 2019. 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$11.0 million, compared to US$6.9 million in the corresponding period in 2019. The increase was mainly due to a modification which repriced the exercise price with respect to options during the first half of 2020, which led to the higher share-based compensation expenses in the six months ended June 30, 2020 compared to the six months ended June 30, 2019.

 

Loss from operations was US$23.2 million, improved from a loss from operations of US$26.4 million in the corresponding period in 2019.

 

Net loss attributable to Renren Inc. was US$16.6 million, compared to a net income of US$67.7 million in the corresponding period in 2019.

 

Adjusted loss from operations (non-GAAP) was US$12.0 million, improved from an adjusted loss from operations of US$19.4 million in the corresponding period in 2019. Adjusted loss from operations is defined as loss from operations excluding share-based compensation expenses and amortization of intangible assets.

 

Adjusted net loss (non-GAAP) was US$8.5 million, compared to an adjusted net loss of US$15.5 million in the corresponding period in 2019. Adjusted net loss is defined as net 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$8 million to US$12 million in the second half of 2020. The decrease in revenues as compared with the second half of 2019 or the first half of 2020 is expected to be primarily due to Kaixin Auto Holdings having decided to put a halt to its used-car dealership business operations while reexamining its business model. This forecast reflects the Company’s current and preliminary view, which is subject to change.

 

Binding Term Sheet with Haitaoche

 

The Company’s subsidiary Kaixin entered into a binding term sheet (the “Biding Term Sheet”) with Haitaoche Limited (“Haitaoche”) on November 3, 2020.

 

The Binding Term Sheet sets forth the terms and conditions by which Haitaoche will merge with a newly formed wholly-owned subsidiary of Kaixin, with Haitaoche continuing as the surviving entity and a wholly-owned subsidiary of Kaixin (the “Merger”). As consideration for the Merger, Kaixin will issue a number of ordinary shares of Kaixin to the shareholders of Haitaoche (the “Haitaoche Shareholders”) so that the Haitaoche Shareholders will collectively hold 51% of Kaixin’s share capital upon the closing of the Merger.

 

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 premium used auto business in China through its subsidiary Kaixin Auto Holdings (NASDAQ: KXIN) as well as several US-based SaaS businesses. Renren’s American depositary shares, each of which currently represents forty-five 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 second half of 2020 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 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: Renren’s goals and strategies; Renren’s future business development, financial condition and results of operations; Renren’s expectations regarding demand for and market acceptance of its services; Renren’s expectations regarding the retention and strengthening of its relationships with used auto dealerships; Renren’s plans to enhance user experience, infrastructure and service offerings; competition in the used auto industry in China; and government policies and regulations relating to the used auto industry in China. 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 “adjusted net income (loss)” which are defined as non-GAAP financial measures by the SEC, in evaluating its business. Renren defines 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 its operating results and business performance. 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, the aforesaid impact is presented retrospectively in “Reconciliation of non-GAAP results of operations measures to the comparable GAAP financial measures”. Renren presents adjusted income (loss) from operations and adjusted net income (loss) because they are used by Renren’s management to evaluate its operating performance. Renren also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Renren’s consolidated results of operations in the same manner as Renren’s management and in comparing financial results across accounting periods and to those of Renren’s 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:

 

Investor Relations

Renren Inc.

Email: ir@renren-inc.com

 

 

 

 

RENREN INC.        
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands of US dollars)        
         
    December 31,    June 30, 
    2019    2020 
 ASSETS          
           
 Current assets:   　    　 
 Cash and cash equivalents  $4,473   $5,059 
 Restricted cash   13,091    - 
 Short-term investments   1,436    - 
 Accounts receivable, net   649    595 
 Prepaid expenses and other current assets   30,454    32,643 
 Amounts due from related parties   688    678 
 Inventory   21,981    18,527 
 Total current assets   72,772    57,502 
           
 Non-current assets:   　    　 
 Property and equipment, net   851    619 
 Goodwill and intangible assets, net   832    641 
 Long-term investments   13,454    13,507 
 Amount due from related parties- non-current   131,758    131,346 
 Restricted cash – non-current   358    5,643 
 Right-of-use lease assets   5,506    3,900 
 Other non-current assets   680    626 
 Total non-current assets   153,439    156,282 
           
 TOTAL ASSETS  $226,211   $213,784 
           
 LIABILITIES AND EQUITY          
           
 Current liabilities:   　    　 
 Accounts payable  $5,393   $2,088 
 Short-term debt   31,077    26,213 
 Accrued expenses and other current liabilities   37,068    34,589 
 Short-term lease liabilities   2,836    3,088 
 Payable to investors   14    14 
 Amounts due to related parties   774    3,269 
 Deferred revenue and advance from customers   750    273 
 Income tax payable   20,054    19,454 
 Contingent consideration   204    94 
 Total current liabilities   98,170    89,082 
           
 Non-current liabilities:          
 Long-term debt   -    1,585 
 Long-term lease liabilities   1,980    1,140 
 Long-term contingent consideration   828    381 
 Total non-current liabilities   2,808    3,106 
　   　    　 
 TOTAL LIABILITIES  $100,978   $92,188 
           
 Shareholders’ Equity:          
 Class A ordinary shares   751    757 
 Class B ordinary shares   305    305 
 Additional paid-in capital   720,513    731,521 
 Statutory reserves   6,712    6,712 
 Accumulated deficit   (614,830)   (631,407)
 Accumulated other comprehensive income   (9,338)   (8,978)
　   　    　 
 Total Renren Inc. shareholders’ equity   104,113    98,910 
           
 Noncontrolling interests   21,120    22,686 
　   　    　 
 TOTAL EQUITY   125,233    121,596 
           
 TOTAL LIABILITIES AND EQUITY  $226,211   $213,784 

 

 

 

 

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)
         
   　 
   June 30,   June 30, 
   2019   2020 
 Net revenues:          
 Automobile sales  $200,914   $32,996 
 Others   14,214    8,164 
 Total net revenues   215,128    41,160 
           
 Cost of revenues   (201,873)   (33,993)
           
 Gross profit   13,255    7,167 
           
 Operating expenses:          
 Selling and marketing   (12,769)   (5,293)
 Research and development   (13,243)   (8,010)
 General and administrative   (13,657)   (17,071)
           
 Total operating expenses   (39,669)   (30,374)
           
 Loss from operations   (26,414)   (23,207)
           
 Other  income   2,505    511 
 Fair value change of contingent consideration   88,116    557 
 Interest income   4,393    3,734 
 Interest expenses   (1,468)   (779)
 Total non-operating income   93,546    4,023 
           
 Income (loss) before provision of income tax and loss in equity method investments, net of tax   67,132    (19,184)
 Income tax expenses   (628)   - 
　          
 Income (loss) before loss in equity method investments and noncontrolling interest, net of tax   66,504    (19,184)
  (Loss) income in equity method investments, net of tax   (910)   79 
 Income (loss) from continuing operations   65,594    (19,105)
           
           
 Net income (loss)   65,594    (19,105)
 Net loss attributable to noncontrolling interests   2,133    2,528 
           
 Net income (loss) attributable to Renren Inc.  $67,727   $(16,577)
           
 Net  income (loss) per share from continuing operations attributable to Renren Inc.shareholders:   　    　 
 Basic  $0.06   $(0.02)
 Diluted  $0.04   $(0.02)
           
 Net  income (loss) per share attributable to Renren Inc. shareholders:   　    　 
 Basic  $0.06   $(0.02)
 Diluted  $0.04   $(0.02)
 Net income (loss) attributable to Renren Inc. shareholders per ADS*:          
 Basic  $2.53   $(0.70)
 Diluted  $1.56   $(0.70)
　   　    　 
 Weighted average number of shares used in calculating net loss per ordinary share attributable to Renren Inc. shareholders:          
 Basic   1,045,443,122    1,058,890,544 
 Diluted   1,083,883,429    1,058,890,544 
           
 * Each ADS represents 45 Class A ordinary shares.          

 

 

 

 

Reconciliation of Non-GAAP results of operations measures to the comparable GAAP financial measures
(In thousands of US dollars)        
         
     
    June 30,    June 30, 
　   2019    2020 
 Loss from operations  $(26,414)  $(23,207)
 Add back: Shared-based compensation expenses   6,869    11,015 
 Add back: Amortization of intangible assets   192    192 
 Adjusted loss from operations  $(19,353)  $(12,000)
           
 Net income (loss)  $65,594   $(19,105)
 Add back: Shared-based compensation expenses   6,869    11,015 
 Add back: Fair value change of contingent consideration   (88,116)   (557)
 Add back: Amortization of intangible assets   192    192 
 Adjusted net income (loss)  $(15,461)  $(8,455)

 

 

 

 

RENREN INC.                        
ADDITIONAL INFORMATION (UNAUDITED)
(In thousands of US dollars)
                         
   For the Six Months Ended 
   June 30, 2019   June 30,  2020 
   Kaixin   Renren   Total   Kaixin   Renren   Total 
 Net revenues:                              
 Automobile sales  $200,914   $　-   $200,914   $32,996   $-   $32,996 
 Others   3,685    10,529    14,214    299    7,865    8,164 
 Total   204,599    10,529    215,128    33,295    7,865    41,160 
                               
                               
 Cost of revenues  $195,969   $5,904   $201,873   $32,375   $1,618   $33,993