360 DigiTech, Inc. (QFIN) (“360 DigiTech” or the “Company”), a
leading financial technology platform in China, today announced its
unaudited financial results for the second quarter ended June 30,
2021.
Second Quarter 2021 Business
Highlights
- As of June 30, 2021, our digital
platform has connected 108 financial institutional partners and
175.9 million consumers*1 with potential credit needs,
cumulatively, an increase of 18.1% from 149.0 million a year
ago.
- Cumulative users with approved
credit lines*2 was 34.7 million as of June 30, 2021, an increase of
25.3% from 27.7 million as of June 30, 2020.
- Cumulative borrowers with
successful drawdown, including repeat borrowers was 22.3 million as
of June 30, 2021, an increase of 25.3% from 17.8 million as of June
30, 2020.
- In the second quarter of 2021,
financial institutional partners originated 27,714,920 loans*3,
totaling RMB88,452 million*4 through our platform, an increase of
50.2% from RMB58,905 million in the same period of 2020.
- Out of those loans originated by
financial institutions, RMB49,638 million was under capital-light
model and other technology solutions, representing 56.1% of the
total, an increase of 213.3% from RMB15,844 million in the same
period of 2020.
- Total outstanding balance*5 of the
loans originated by financial institutional partners through our
platform was RMB117,559 million as of June 30, 2021, an increase of
49.8% from RMB78,480 million as of June 30, 2020.
- RMB58,187 million of such loan
balance was under capital-light model and other technology
solutions, an increase of 186.4% from RMB20,316 million as of June
30, 2020.
- Financial institutions granted
approximately RMB7.1 billion credit lines to small and micro-sized
enterprises (SMEs)*6 through our platform in the second quarter of
2021, an increase of 22.4% from approximately RMB5.8 billion in the
prior quarter.
- The weighted average contractual
tenor of loans originated by financial institutions across our
platform in the second quarter of 2021 was approximately 10.66
months, compared with 9.57 months in the same period of 2020.
- 90 day+ delinquency ratio*7 of
loans originated by financial institutions across our platform was
1.19% as of June 30, 2021.
- Repeat borrower contribution*8 of
loans originated by financial institutions across our platform for
the second quarter of 2021 was 88.7%.
1 Refers to cumulative registered users across
our platform. 2 “Users with approved credit lines” refers to the
total number of users who had submitted their credit applications
and were approved with a credit line by the Company at the end of
each period. 3 Including 13,300,248 loans across “V-pocket”, and
14,414,672 loans across other products. 4 Refers to the total
principal amount of loans facilitated and originated during the
given period, including loans volume facilitated through
Intelligence Credit Engine (“ICE”) and other technology solutions.
“ICE” is an open platform on our “360 Jietiao” APP, we match
borrowers and financial institutions through big data and cloud
computing technology on “ICE”, and provide pre-loan investigation
report of borrowers. For loans facilitated through “ICE”, the
Company do not provide post-loan risk management nor bear principal
risk. 5 “Total outstanding loan balance” refers to the total amount
of principal outstanding for loans facilitated and originated at
the end of each period, including loan balance for “ICE” and other
technology solutions, excluding loans delinquent for more than 180
days. 6 SME loans are Loans issued to SMEs with e-commerce
operations, with business sales receipt, and/or with business
taxation record. 7 “90 day+ delinquency ratio” refers to the
outstanding principal balance of on- and off-balance sheet loans
that were 90 to 179 calendar days past due as a percentage of the
total outstanding principal balance of on- and off-balance sheet
loans across our platform as of a specific date. Loans that are
charged-off and loans under “ICE” and other technology solutions
are not included in the delinquency rate calculation. 8 “Repeat
borrower contribution” for a given period refers to (i) the
principal amount of loans borrowed during that period by borrowers
who had historically made at least one successful drawdown, divided
by (ii) the total loan facilitation and origination volume through
our platform during that period.
Second Quarter 2021 Financial
Highlights
- Total net revenue increased by
19.8% to RMB4,001.6 million (US$619.8 million) from RMB3,340.1
million in the same period of 2020.
- Income from operations increased by
86.6% to RMB1,853.1 million (US$287.0 million) from RMB993.2
million in the same period of 2020.
- Non-GAAP*9 income from operations
increased by 81.4% to RMB1,920.4 million (US$297.4 million) from
RMB1,058.9 million in the same period of 2020.
- Operating margin was 46.3%.
Non-GAAP operating margin was 48.0%.
- Net income increased by 76.6% to
RMB 1,547.9 million (US$239.7 million) from RMB876.5 million in the
same period of 2020.
- Non-GAAP net income increased by
71.4% to RMB1,615.2 million (US$250.2 million) from RMB942.1
million in the same period of 2020.
- Net income margin was 38.7%
Non-GAAP net income margin was 40.4%.
9 Non-GAAP income from operations (Adjusted
Income from operations), Non-GAAP net income (Adjusted net income),
Non-GAAP operating margin and Non-GAAP net income margin are
non-GAAP financial measures. For more information on this non-GAAP
financial measure, please see the section of “Use of Non-GAAP
Financial Measures Statement” and the table captioned "Unaudited
Reconciliations of GAAP and Non-GAAP Results" set forth at the end
of this press release.
Mr. Haisheng Wu, Chief Executive Officer and
Director of 360 DigiTech, commented, “We are very pleased to report
another record setting quarter that exceeded our expectations
across multiple fronts of operations. During the quarter, financial
institutions originated RMB88.5 billion loans through our platform,
up 50% year-on-year. Approximately 56% of the loans was facilitated
under the capital-light model and other technology solutions*10,
further demonstrating the attractiveness of our capital-light
models to financial institutions, and marking continued success in
our technology driven strategic transition and upgrading.
“Our embedded finance model gained further
popularity among our business partners with 22 leading traffic
platforms on board by the quarter ending, contributing
approximately 39% of new users with approved credit lines for the
quarter. On the SME front, we continued to ramp the operations
nicely with 22% sequential growth as the number of new SME
borrowers grew rapidly. Our strategic collaboration with Kincheng
Bank of Tianjin Co., Ltd. (“KCB”) also progressed smoothly and KCB
remained our largest institution partner in terms of loan
facilitation volume.
“In the first half of 2021, we delivered robust
growth in key operational and financial metrics as we gained market
share in a relatively stable macro environment. As we enter the
second half of the year, we continue to experience strong customer
demand, despite some uncertainties in macro environment. We
strongly believe recent regulatory actions will ultimately provide
additional policy clarity for a more healthy and consolidated
industry and benefit leading platforms like us. Our stress tests
indicate that even under the more restrictive regulatory guidelines
we should be able to maintain healthy growth and profitability in
the coming quarters and years. As our strategic initiatives have
achieved outstanding results across our operations thus far, we
feel more confident than ever to become one of the premium
financial technology platforms in the long run.”
“We are very pleased to report another quarter
of record financial results. Total revenue was RMB4.0 billion and
non-GAAP net income reached RMB1.62 billion. The robust financial
performance was driven by better than expected credit demand by
consumers and SMEs, further progress in our business initiatives,
and solid overall executions,” Mr. Alex Xu, Chief Financial
Officer, commented. “Continued improvement in asset quality, and
increased contribution from capital light model continued to drive
noticeable improvement in operating margins for the quarter. As we
close the stronger than expected first half 2021, we see continued
business momentum into the current quarter thus far, which gives us
increased confidence to exceed our previous operational targets for
2021.”
Mr. Yan Zheng, Chief Risk Officer, added, “Our
key risk management metrics remained at the best level in history
during the quarter as overall asset quality continued to improve.
Among the key leading indicators, Day-1 delinquency*11 remained at
a record low of approximately 5.0% in the second quarter, while the
30-day collection rate*12 staying above 90%, the best levels too.
More encouragingly, risk management metrics for the SME business
have performed better than we expected thus far, as we rapidly ramp
the business. Although we will continue to take prudent approach in
overall risk management operations, the effectiveness of our risk
management systems should enable us to deliver strong growth of
business while maintaining outstanding overall asset quality in the
foreseeable future.”
10 "We've used mainly data technology tools and
AI risk management systems in the process of providing such
services as loan facilitation, post-facilitation and borrowers'
referral to our customers. Revenue from these technology powered
services amount to 53% of our total net revenue." 11 "D1
delinquency rate" is defined as (i) the total amount of principal
that became overdue as of a specified date, divided by (ii) the
total amount of principal that was due for repayment as of such
date. 12 "M1 collection rate" is defined as (i) the amount of
principal that was repaid in one month among the total amount of
principal that became overdue as a specified date, divided by (ii)
the total amount of principal that became overdue as a specified
date.
Second Quarter 2021 Financial
Results
Total net revenue was
RMB4,001.6 million (US$619.8 million), compared to RMB3,340.1
million in the same period of 2020, and RMB3,599.2 million in the
prior quarter.
Net revenue from Credit Driven
Services was RMB2,404.7 million (US$372.4 million),
compared to RMB3,081.1 million in the same period of 2020, and
RMB2,451.3 million in the prior quarter.
Loan facilitation and servicing fees-capital
heavy were RMB540.7 million (US$83.7 million), compared to
RMB1,353.9 million in the same period of 2020 and RMB724.3 million
in the prior quarter. The year-over-year and sequential declines
were in part due to declined loan volume under capital heavy
model.
Financing income*13 was
RMB488.1 million (US$75.6 million), compared to RMB628.1 million in
the same period of 2020 and RMB409.4 million in the prior quarter.
The year-over-year and sequential changes reflected changes in
on-balance sheet loans.
Revenue from releasing of guarantee liabilities
was RMB1,352.3 million (US$209.4 million), compared to RMB1,076.6
million in the same period of 2020, and RMB1,295.4 million in the
prior quarter. The year-over-year and sequential growth was mainly
due to increase in average outstanding balance of off-balance-sheet
capital-heavy loans during the period.
Other services fees were RMB23.6 million (US$3.6
million), compared to RMB22.6 million in the same period of 2020,
and RMB22.2 million in the prior quarter. The year-over-year and
sequential increases were primarily due to fluctuation of late
payment fees.
Net revenue from Platform
Services was RMB1,596.9 million (US$247.3 million),
compared to RMB258.9 million in the same period of 2020 and
RMB1,147.9 million in the prior quarter.
Loan facilitation and servicing fees-capital
light were RMB1,398.7 million (US$216.6 million), compared to
RMB178.6 million in the same period of 2020 and RMB993.9 million in
the prior quarter. The year-over-year and sequential growth was
primarily due to growth in loan facilitation volume under
capital-light model.
Referral services fees were RMB160.3 million
(US$24.8 million), compared to RMB64.5 million in the same period
of 2020 and RMB126.3 million in the prior quarter. The
year-over-year and sequential increases were primarily due to the
facilitation volume growth through ICE.
Other services fees were RMB37.9 million (US$5.9
million), compared to RMB15.9 million in the same period of 2020
and RMB27.6 million in the prior quarter. The year-over-year and
sequential increases were mainly due to growth in late payment fees
as loan facilitation volume under capital-light model
increased.
Total operating costs and
expenses were RMB2,148.4 million (US$332.8 million),
compared to RMB2,346.8 million in the same period of 2020 and
RMB2,041.4 million in the prior quarter.
Facilitation, origination and servicing expenses
were RMB558.0 million (US$86.4 million), compared to RMB399.8
million in the same period of 2020 and RMB477.8 million in the
prior quarter. The year-over-year and sequential increases was
primarily due to growth in loan facilitation and origination
volume.
Funding costs were RMB83.2 million (US$12.9
million), compared to RMB161.1 million in the same period of 2020
and RMB79.1 million in the prior quarter. The year-over-year
decline was mainly due to increased funding contribution from ABS
with lower cost and decrease in on-balance sheet loans. The
sequential increase was primarily due to increase in outstanding
balance of on-balance sheet loans.
Sales and marketing expenses were RMB499.9
million (US$77.4 million), compared to RMB269.1 million in the same
period of 2020 and RMB385.0 million in the prior quarter. The
year-over-year and sequential increases were mainly due to a more
proactive customer acquisition strategy, development of new
customer acquisition channels, and higher online traffic costs as
overall business activities continued to expand in China.
General and administrative expenses were
RMB139.3 million (US$21.6 million), compared to RMB109.5 million in
the same period of 2020 and RMB104.5 million in the prior quarter.
The year-over-year and sequential increases were primarily due to
expanded business operations.
Provision for loans receivable was RMB247.0
million (US$38.3 million), compared to RMB218.6 million in the same
period of 2020 and RMB134.9 million in the prior quarter. The
year-over-year and sequential increases mainly reflect the
Company’s consistent approach in assessing provisions commensurate
with its underlying loan profile.
Provision for financial assets receivable was
RMB58.5 million (US$9.1 million), compared to RMB79.2 million in
the same period of 2020 and RMB45.1 million in the prior quarter.
The year-over-year decline was primarily due to decrease in
facilitation volume under capital-heavy model. The sequential
increase reflects the Company’s consistent approach in assessing
provisions commensurate with its underlying loan profile.
Provision for accounts receivable and contract
assets was RMB100.7 million (US$15.6 million), compared to RMB90.8
million in the same period of 2020 and RMB56.4 million in the prior
quarter. The year-over-year and sequential increases were primarily
due to growth in loan facilitation volume and in part due to the
Company’s consistent approach in assessing provisions commensurate
with its underlying loan profile.
Provision for contingent liability was RMB461.9
million (US$71.5 million), compared to RMB1,018.9 million in the
same period of 2020 and RMB758.7 million in the prior quarter. The
year-over-year and sequential declines were mainly due to loans
facilitated in prior quarters performed better than expected.
Income from operations was
RMB1,853.1 million (US$287.0 million), compared to RMB993.2 million
in the same period of 2020 and RMB1,557.8 million in the prior
quarter.
Non-GAAP income from
operations was RMB1,920.4 million (US$297.4 million),
compared to RMB1,058.9 million in the same period of 2020 and
RMB1,617.3 million in the prior quarter.
Operating margin was 46.3%.
Non-GAAP operating margin was 48.0%.
Income before income tax
expense was RMB1,953.2 million (US$302.5 million),
compared to RMB1,042.7 million in the same period of 2020 and
RMB1,605.3 million in the prior quarter.
Net income attributed to the
Company was RMB1,547.6 million (US$239.7 million),
compared to RMB876.5 million in the same period of 2020 and
RMB1,347.4 million in the prior quarter.
Non-GAAP net income
attributed to the Company was RMB1,614.9 million
(US$250.1 million), compared to RMB942.2 million in the same period
of 2020 and RMB1,407.0 million in the prior quarter.
Net income margin was 38.7%.
Non-GAAP net income margin was 40.4%.
Net income per fully diluted
ADS was RMB9.62 (US$1.48).
Non-GAAP net income per fully diluted
ADS was RMB10.03 (US$1.55).
Weighted average basic ADS used in
calculating GAAP and non-GAAP net income per ADS was
153.44 million.
Weighted average diluted ADS used in
calculating GAAP and non-GAAP net income per ADS was
160.98 million.
13 “Financing income” is generated from loans
facilitated through the Company’s platform funded by the
consolidated trusts and Fuzhou Microcredit, which charge fees and
interests from borrowers.
M1+ Delinquency Rate by Vintage and M6+
Delinquency Rate by Vintage
The following charts and tables display the
historical cumulative M1+ delinquency rates by loan facilitation
and origination vintage and M6+ delinquency rates by loan
facilitation and origination vintage for all loans facilitated and
originated through the company’s platform, loans that are
charged-off and loans under “ICE” and other technology solutions
are not included in the M1+ charts, loans under “ICE” and other
technology solutions are not included in the M6+ charts:
http://ml.globenewswire.com/Resource/Download/84b8ec08-b339-4369-92de-bb3eb964d81d
http://ml.globenewswire.com/Resource/Download/5bc9a261-1fd8-47d0-a01e-7793be795fc0
Share Repurchase Plan
The board of directors of the Company has
approved a share repurchase program whereby the Company is
authorized to repurchase up to US$200 million worth of its Class A
ordinary shares in the form of American depositary shares over the
next twelve-month period. The Company’s proposed repurchases may be
made from time to time in the open market at prevailing market
prices, in privately negotiated transactions, in block trades
and/or through other legally permissible means, depending on market
conditions and in accordance with applicable rules and regulations.
The Company expects to fund the repurchase out of its existing cash
balance.
Business Outlook
While we intend to keep our tradition of prudent
decision making and business planning, we are encouraged by strong
operating metrics in the first half of 2021. We see continued
healthy growth for the rest of the year. As such we now expect
total loan facilitation and origination volume for 2021 to be
between RMB340 billion and RMB350 billion, compared to our previous
guidance of between RMB310 billion and RMB330 billion, representing
year-on-year growth of 38% to 42%. This forecast reflects the
Company’s current and preliminary views, which is subject to
material change.
Conference Call
360 DigiTech’s management team will host an
earnings conference call at 8:30 PM U.S. Eastern Time on Thursday,
Aug 19, 2021 (8:30 AM Beijing Time on Aug 20).
|
United States: |
+1-646-722-4977 |
|
Hong Kong: |
+852-3027-6500 |
|
Mainland China: |
400-821-0637 |
|
International: |
+65-6408-5782 |
|
PIN: |
23407160# |
Please dial in 15 minutes before the call is
scheduled to begin and provide the PIN to join the call.
A telephone replay of the call will be available
after the conclusion of the conference call until August 26,
2021:
|
United States: |
+1-646-982-0473 |
|
International: |
+65-6408-5781 |
|
Access code: |
319341300# |
Additionally, a live and archived webcast of the
conference call will be available on the Investor Relations section
of the Company's website at ir.360shuke.com.
About 360 DigiTech
360 DigiTech, Inc. (NASDAQ: QFIN) (“360
DigiTech” or the “Company”) is a leading financial technology
platform. Through its platform the Company enables financial
institutions to provide better and targeted products and services
to a broader consumer base. The Company also offers standardized
risk management service, in the form of SaaS modules to
institutional clients. When coupled with its partnership with 360
Group, the Company’s solutions created noticeable advantages in
customer acquisition, funding optimization, risk assessment and
post-lending management.
For more information, please visit:
ir.360shuke.com
Use of Non-GAAP Financial Measures
Statement
To supplement our financial results presented in
accordance with U.S. GAAP, we use non-GAAP financial measure, which
is adjusted from results based on U.S. GAAP to exclude share-based
compensation expenses. Reconciliations of our non-GAAP financial
measures to our U.S. GAAP financial measures are set forth in
tables at the end of this earnings release, which provide more
details on the non-GAAP financial measures.
We use non-GAAP income from operation, non-GAAP
operation margin, non-GAAP net income, non-GAAP net income margin,
Non-GAAP net income attributed to the Company and Non-GAAP net
income per fully diluted ADS in evaluating our operating results
and for financial and operational decision-making purposes.
Non-GAAP income from operation represents income from operation
excluding share-based compensation expenses, non-GAAP net income
represents net income excluding share-based compensation expenses,
non-GAAP net income attributed to the Company represents net income
attributed to the Company excluding share-based compensation
expenses and non-GAAP net income per fully diluted ADS represents
net income per fully diluted ADS excluding share-based
compensation. Such adjustments have no impact on income tax. We
believe that non-GAAP income from operation and non-GAAP net income
help identify underlying trends in our business that could
otherwise be distorted by the effect of certain expenses that we
include in results based on U.S. GAAP. We believe that non-GAAP
income from operation and non-GAAP net income provide 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.
Our non-GAAP financial information should be considered in addition
to results prepared in accordance with U.S. GAAP, but should not be
considered a substitute for or superior to U.S. GAAP results. In
addition, our calculation of non-GAAP financial information may be
different from the calculation used by other companies, and
therefore comparability may be limited.
Exchange Rate Information
This announcement contains translations of
certain RMB amounts into U.S. dollars at specified rates solely for
the convenience of the reader. Unless otherwise noted, all
translations from RMB to U.S. dollars are made at a rate of
RMB6.4566 to US$1.00, the exchange rate set forth in the H.10
statistical release of the Board of Governors of the Federal
Reserve System as of June 30, 2021.
Safe Harbor Statement
Any forward-looking statements contained in this
announcement are made under the "safe harbor" provisions of the
U.S. Private Securities Litigation Reform Act of 1995.
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 and quotations from management in this
announcement, as well as the Company’s strategic and operational
plans, contain forward-looking statements. 360 DigiTech may also
make written or oral forward-looking statements in its reports to
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 the Company’s business outlook, 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, which factors include
but not limited to the following: the Company’s growth strategies,
the Company’s cooperation with 360 Group, changes in laws, rules
and regulatory environments, the recognition of the Company’s
brand, market acceptance of the Company’s products, services,
trends and developments in the credit-tech industry, governmental
policies relating to the credit-tech industry, general economic
conditions in China and around the globe, and assumptions
underlying or related to any of the foregoing. Further information
regarding these and other risks and uncertainties is included in
360 DigiTech's filings with the SEC. All information provided in
this press release and in the attachments is as of the date of this
press release, and 360 DigiTech does not undertake any obligation
to update any forward-looking statement, except as required under
applicable law.
For more information, please
contact:
360 DigiTech E-mail: ir@360shuke.com
Christensen
In China Mr. Eric Yuan Phone: +86-138-0111-0739
E-mail: Eyuan@christensenir.com
In US Ms. Linda Bergkamp Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
| |
|
|
|
| Unaudited
Condensed Consolidated Balance Sheets |
| (Amounts in
thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for
number of shares and per share data, or otherwise noted) |
| |
|
|
|
| |
|
|
|
| |
December 31, |
June 30, |
June 30, |
| |
2020 |
2021 |
2021 |
| |
RMB |
RMB |
USD |
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
4,418,416 |
|
5,191,999 |
|
804,138 |
|
| Restricted
cash |
2,355,850 |
|
2,644,701 |
|
409,612 |
|
| Security
deposit prepaid to third-party guarantee companies |
915,144 |
|
960,992 |
|
148,839 |
|
| Funds
receivable from third party payment service providers |
131,464 |
|
107,430 |
|
16,639 |
|
| Accounts
receivable and contract assets, net |
2,394,528 |
|
2,161,313 |
|
334,745 |
|
| Financial
assets receivable, net |
3,565,482 |
|
4,066,901 |
|
629,883 |
|
| Amounts due
from related parties |
193,305 |
|
927,464 |
|
143,646 |
|
| Loans
receivable, net |
7,500,629 |
|
8,283,703 |
|
1,282,982 |
|
| Prepaid
expenses and other assets |
401,224 |
|
317,154 |
|
49,121 |
|
|
Total current assets |
21,876,042 |
|
24,661,657 |
|
3,819,605 |
|
|
Non-current assets: |
|
|
|
| Accounts
receivable and contract assets, net-non current |
307,937 |
|
310,426 |
|
48,079 |
|
| Financial
assets receivable, net-non current |
645,326 |
|
575,492 |
|
89,132 |
|
| Amounts due
from related parties |
- |
|
424,965 |
|
65,819 |
|
| Loans
receivable, net-non current |
87,685.00 |
|
1,181,681 |
|
183,019 |
|
| Property and
equipment, net |
19,360.00 |
|
18,965 |
|
2,937 |
|
| Intangible
assets |
3,403 |
|
4,814 |
|
746 |
|
| Deferred tax
assets |
1,398,562 |
|
1,026,681 |
|
159,013 |
|
| Other
non-current assets |
48,990 |
|
41,048 |
|
6,358 |
|
|
Total non-current assets |
2,511,263 |
|
3,584,072 |
|
555,103 |
|
|
TOTAL ASSETS |
24,387,305 |
|
28,245,729 |
|
4,374,708 |
|
|
|
|
|
|
|
LIABILITIES AND EQUITY LIABILITIES |
|
|
|
|
Current liabilities: |
|
|
|
| Payable to
investors of the consolidated trusts-current |
3,117,634 |
|
2,914,748 |
|
451,437 |
|
| Accrued
expenses and other current liabilities |
809,761 |
|
1,181,876 |
|
183,051 |
|
| Amounts due
to related parties |
71,562 |
|
83,036 |
|
12,861 |
|
| Short term
loans |
186,800 |
|
336,273 |
|
52,082 |
|
| Guarantee
liabilities-stand ready |
4,173,497 |
|
4,517,620 |
|
699,690 |
|
| Guarantee
liabilities-contingent |
3,543,454 |
|
3,248,496 |
|
503,128 |
|
| Income tax
payable |
1,227,314 |
|
876,932 |
|
135,819 |
|
| Other tax
payable |
254,486 |
|
248,737 |
|
38,524 |
|
|
Total current liabilities |
13,384,508 |
|
13,407,718 |
|
2,076,592 |
|
|
Non-current liabilities: |
|
|
|
| Deferred tax
liabilities |
37,843 |
|
98,777 |
|
15,299 |
|
| Payable to
investors of the consolidated trusts-noncurrent |
1,468,890 |
|
2,239,372 |
|
346,835 |
|
| Other
long-term liabilities |
14,974 |
|
12,605 |
|
1,952 |
|
|
Total non-current liabilities |
1,521,707 |
|
2,350,754 |
|
364,086 |
|
|
TOTAL LIABILITIES |
14,906,215 |
|
15,758,472 |
|
2,440,678 |
|
| Ordinary
shares |
21 |
|
21 |
|
3 |
|
| Additional
paid-in capital |
5,417,406 |
|
5,544,236 |
|
858,693 |
|
| Retained
earnings |
4,137,542 |
|
7,032,629 |
|
1,089,216 |
|
| Other
comprehensive income (loss) |
(74,391 |
) |
(90,183 |
) |
(13,968 |
) |
|
TOTAL 360 DIGITECH INC EQUITY |
9,480,578 |
|
12,486,703 |
|
1,933,944 |
|
|
Noncontrolling interests |
512 |
|
554 |
|
86 |
|
|
TOTAL EQUITY |
9,481,090 |
|
12,487,257 |
|
1,934,030 |
|
|
TOTAL LIABILITIES AND EQUITY |
24,387,305 |
|
28,245,729 |
|
4,374,708 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Unaudited
Condensed Consolidated Statements of Operations |
| (Amounts in
thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for
number of shares and per share data, or otherwise noted) |
| |
|
|
|
|
|
|
|
| |
Three months ended June 30, |
|
Six months ended June 30, |
| |
2020 |
2021 |
2021 |
|
2020 |
2021 |
2021 |
| |
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
|
Credit driven services |
3,081,104 |
|
2,404,695 |
|
372,439 |
|
|
5,891,154 |
|
4,856,038 |
|
752,105 |
|
|
Loan facilitation and servicing fees-capital heavy |
1,353,871 |
|
540,737 |
|
83,749 |
|
|
2,520,990 |
|
1,265,047 |
|
195,931 |
|
|
Financing income |
628,117 |
|
488,088 |
|
75,595 |
|
|
1,237,513 |
|
897,528 |
|
139,009 |
|
|
Revenue from releasing of guarantee liabilities |
1,076,555 |
|
1,352,307 |
|
209,446 |
|
|
2,082,731 |
|
2,647,734 |
|
410,082 |
|
|
Other services fees |
22,561 |
|
23,563 |
|
3,649 |
|
|
49,920 |
|
45,729 |
|
7,083 |
|
|
Platform services |
258,948 |
|
1,596,863 |
|
247,323 |
|
|
631,793 |
|
2,744,729 |
|
425,105 |
|
|
Loan facilitation and servicing fees-capital light |
178,588 |
|
1,398,713 |
|
216,633 |
|
|
482,210 |
|
2,392,602 |
|
370,567 |
|
|
Referral services fees |
64,497 |
|
160,264 |
|
24,822 |
|
|
119,063 |
|
286,594 |
|
44,388 |
|
|
Other services fees |
15,863 |
|
37,886 |
|
5,868 |
|
|
30,520 |
|
65,533 |
|
10,150 |
|
|
Total net revenue |
3,340,052 |
|
4,001,558 |
|
619,762 |
|
|
6,522,947 |
|
7,600,767 |
|
1,177,210 |
|
|
Facilitation, origination and servicing |
399,766 |
|
557,979 |
|
86,420 |
|
|
747,419 |
|
1,035,735 |
|
160,415 |
|
|
Funding costs |
161,062 |
|
83,164 |
|
12,880 |
|
|
319,676 |
|
162,242 |
|
25,128 |
|
|
Sales and marketing |
269,054 |
|
499,937 |
|
77,430 |
|
|
492,062 |
|
884,946 |
|
137,061 |
|
|
General and administrative |
109,488 |
|
139,278 |
|
21,571 |
|
|
218,219 |
|
243,774 |
|
37,756 |
|
|
Provision for loans receivable |
218,569 |
|
246,979 |
|
38,252 |
|
|
525,828 |
|
381,887 |
|
59,147 |
|
|
Provision for financial assets receivable |
79,199 |
|
58,516 |
|
9,063 |
|
|
172,923 |
|
103,576 |
|
16,042 |
|
|
Provision for accounts receivable and contract assets |
90,811 |
|
100,684 |
|
15,594 |
|
|
147,787 |
|
157,116 |
|
24,334 |
|
|
Provision for contingent liabilities |
1,018,860 |
|
461,910 |
|
71,541 |
|
|
2,721,617 |
|
1,220,586 |
|
189,045 |
|
|
Total operating costs and expenses |
2,346,809 |
|
2,148,447 |
|
332,751 |
|
|
5,345,531 |
|
4,189,862 |
|
648,928 |
|
|
Income from operations |
993,243 |
|
1,853,111 |
|
287,011 |
|
|
1,177,416 |
|
3,410,905 |
|
528,282 |
|
|
Interest (expense) income, net |
15,228 |
|
46,491 |
|
7,201 |
|
|
24,978 |
|
82,875 |
|
12,836 |
|
|
Foreign exchange gain (loss) |
4,685 |
|
21,886 |
|
3,390 |
|
|
(23,887 |
) |
13,895 |
|
2,152 |
|
|
Other income, net |
29,569 |
|
31,697 |
|
4,909 |
|
|
92,290 |
|
50,811 |
|
7,870 |
|
|
Income before income tax expense |
1,042,725 |
|
1,953,185 |
|
302,511 |
|
|
1,270,797 |
|
3,558,486 |
|
551,140 |
|
|
Income taxes benefit (expense) |
(166,260 |
) |
(405,305 |
) |
(62,774 |
) |
|
(211,177 |
) |
(663,357 |
) |
(102,741 |
) |
| Net
income |
876,465 |
|
1,547,880 |
|
239,737 |
|
|
1,059,620 |
|
2,895,129 |
|
448,399 |
|
|
Net loss(income) attributable to noncontrolling interests |
49 |
|
(235 |
) |
(36 |
) |
|
302 |
|
(42 |
) |
(7 |
) |
| Net
income attributable to ordinary shareholders of the
Company |
876,514 |
|
1,547,645 |
|
239,701 |
|
|
1,059,922 |
|
2,895,087 |
|
448,392 |
|
| Net income
per ordinary share attributable to ordinary shareholders of 360
DigiTech, Inc. |
|
|
|
|
|
|
|
| Basic |
2.96 |
|
5.04 |
|
0.78 |
|
|
3.60 |
|
9.46 |
|
1.47 |
|
| Diluted |
2.88 |
|
4.81 |
|
0.74 |
|
|
3.50 |
|
9.02 |
|
1.40 |
|
| |
|
|
|
|
|
|
|
| Net income
per ADS attributable to ordinary shareholders of 360 DigiTech,
Inc. |
|
|
|
|
|
|
|
| Basic |
5.93 |
|
10.08 |
|
1.56 |
|
|
7.19 |
|
18.92 |
|
2.94 |
|
| Diluted |
5.76 |
|
9.62 |
|
1.48 |
|
|
6.99 |
|
18.04 |
|
2.80 |
|
| |
|
|
|
|
|
|
|
| Weighted
average shares used in calculating net income per ordinary
share |
|
|
|
|
|
|
|
| Basic |
295,737,611 |
|
306,879,800 |
|
306,879,800 |
|
|
294,669,797 |
|
305,886,883 |
|
305,886,883 |
|
| Diluted |
304,583,237 |
|
321,969,767 |
|
321,969,767 |
|
|
303,261,250 |
|
320,958,192 |
|
320,958,192 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Unaudited
Condensed Consolidated Statements of Cash Flows |
| (Amounts in
thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for
number of shares and per share data, or otherwise noted) |
| |
|
|
|
|
|
|
|
| |
Three months ended June 30, |
|
Six months ended June 30, |
| |
2020 |
2021 |
2021 |
|
2020 |
2021 |
2021 |
| |
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
|
Net cash provided by operating activities |
1,371,444 |
|
1,296,321 |
|
200,775 |
|
|
2,743,957 |
|
3,049,369 |
|
472,287 |
|
| Net cash
provided (used in) by investing activities |
(783,765 |
) |
(2,251,756 |
) |
(348,753 |
) |
|
(485,390 |
) |
(2,707,090 |
) |
(419,275 |
) |
| Net cash
provided by financing activities |
258,833 |
|
538,379 |
|
83,384 |
|
|
645,303 |
|
722,907 |
|
111,964 |
|
| Effect of
foreign exchange rate changes |
1,126 |
|
(1,316 |
) |
(204 |
) |
|
3,514 |
|
(2,752 |
) |
(426 |
) |
| Net
increase(decrease) in cash and cash equivalents |
847,638 |
|
(418,372 |
) |
(64,798 |
) |
|
2,907,384 |
|
1,062,434 |
|
164,550 |
|
| Cash, cash
equivalents, and restricted cash, beginning of year |
5,895,596 |
|
8,255,072 |
|
1,278,548 |
|
|
3,835,850 |
|
6,774,266 |
|
1,049,200 |
|
| Cash, cash
equivalents, and restricted cash, end of year |
6,743,234 |
|
7,836,700 |
|
1,213,750 |
|
|
6,743,234 |
|
7,836,700 |
|
1,213,750 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
| Unaudited
Condensed Consolidated Statements of Comprehensive
(Loss)/Income |
| (Amounts in
thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for
number of shares and per share data, or otherwise noted) |
| |
|
|
|
| |
Three months ended June 30, |
| |
2020 |
2021 |
2021 |
| |
RMB |
RMB |
USD |
|
Net income |
876,465 |
|
1,547,880 |
|
239,737 |
|
| Other
comprehensive income, net of tax of nil: |
|
|
|
| Foreign
currency translation adjustment |
(3,559 |
) |
(22,013 |
) |
(3,409 |
) |
| Other
comprehensive income |
(3,559 |
) |
(22,013 |
) |
(3,409 |
) |
|
Total comprehensive income |
872,906 |
|
1,525,867 |
|
236,328 |
|
| Net
loss(income) attributable to noncontrolling interests |
49 |
|
(235 |
) |
(36 |
) |
|
Comprehensive income attributable to ordinary
shareholders |
872,955 |
|
1,525,632 |
|
236,292 |
|
| |
|
|
|
| |
|
|
|
| |
Six months ended June 30, |
| |
2020 |
2021 |
2021 |
| |
RMB |
RMB |
USD |
| Net
income |
1,059,620 |
|
2,895,129 |
|
448,399 |
|
| Other
comprehensive income, net of tax of nil: |
|
|
|
| Foreign
currency translation adjustment |
27,401 |
|
(15,792 |
) |
(2,446 |
) |
| Other
comprehensive (loss) income |
27,401 |
|
(15,792 |
) |
(2,446 |
) |
|
Total comprehensive income |
1,087,021 |
|
2,879,337 |
|
445,953 |
|
| Net
loss(income) attributable to noncontrolling interests |
302 |
|
(42 |
) |
(7 |
) |
|
Comprehensive income attributable to ordinary
shareholders |
1,087,323 |
|
2,879,295 |
|
445,946 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
| Unaudited
Reconciliations of GAAP and Non-GAAP Results |
| (Amounts in
thousands of Renminbi ("RMB") and U.S. dollars ("USD") except for
number of shares and per share data, or otherwise noted) |
| |
|
|
|
|
| |
Three months ended June 30, |
| |
2020 |
2021 |
2021 |
| |
RMB |
RMB |
USD |
|
Reconciliation of Non-GAAP Net Income to Net
Income |
|
|
|
|
|
Net income |
876,465 |
|
1,547,880 |
|
239,737 |
|
| Add:
Share-based compensation expenses |
65,677 |
|
67,285 |
|
10,421 |
|
|
Non-GAAP net income |
942,142 |
|
1,615,165 |
|
250,158 |
|
| Non-GAAP net
income margin |
28.2 |
% |
40.4 |
% |
|
|
| GAAP net
income margin |
26.2 |
% |
38.7 |
% |
|
|
| |
|
|
|
|
| Net
income attributable to shareholders of 360 DigiTech,
Inc |
876,514 |
|
1,547,645 |
|
239,701 |
|
| Add:
Share-based compensation expenses |
65,677 |
|
67,285 |
|
10,421 |
|
|
Non-GAAP net income attributable to shareholders of 360
DigiTech, Inc |
942,191 |
|
1,614,930 |
|
250,122 |
|
| Weighted
average ADS used in calculating net income per ordinary share for
both GAAP and non-GAAP EPS -diluted |
152,291,619.00 |
|
160,984,884.00 |
|
160,984,884.00 |
|
| Net income
per ADS attributable to ordinary shareholders of 360 DigiTech, Inc.
-diluted |
5.76 |
|
9.62 |
|
1.48 |
|
| Non-GAAP net
income per ADS attributable to ordinary shareholders of 360
DigiTech, Inc. -diluted |
6.19 |
|
10.03 |
|
1.55 |
|
| |
|
|
|
|
|
Reconciliation of Non-GAAP Income from operations to Income
from operations |
|
|
|
|
| Income from
operations |
993,243 |
|
1,853,111 |
|
287,011 |
|
| Add:
Share-based compensation expenses |
65,677 |
|
67,285 |
|
10,421 |
|
|
Non-GAAP Income from operations |
1,058,920 |
|
1,920,396 |
|
297,432 |
|
| Non-GAAP
operating margin |
31.7 |
% |
48.0 |
% |
|
|
| GAAP
operating margin |
29.7 |
% |
46.3 |
% |
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
Six months ended June 30, |
| |
2020 |
2021 |
2021 |
| |
RMB |
RMB |
USD |
|
Reconciliation of Non-GAAP Net Income to Net
Income |
|
|
|
|
| Net
income |
1,059,620 |
|
2,895,129 |
|
448,399 |
|
| Add:
Share-based compensation expenses |
137,051 |
|
126,831 |
|
19,644 |
|
|
Non-GAAP net income |
1,196,671 |
|
3,021,960 |
|
468,043 |
|
| Non-GAAP net
income margin |
18.3 |
% |
39.8 |
% |
|
|
| GAAP net
income margin |
16.2 |
% |
38.1 |
% |
|
|
| |
|
|
|
|
| Net
income attributable to shareholders of 360 Finance,
Inc |
1,059,922 |
|
2,895,087 |
|
448,392 |
|
|
Non-GAAP net income attributable to shareholders of 360
Finance, Inc |
1,196,973 |
|
3,021,918 |
|
468,036 |
|
| Weighted
average ADS used in calculating net income per ordinary share
-diluted |
151,630,625 |
|
160,479,096 |
|
160,479,096 |
|
| Net income
per ADS attributable to ordinary shareholders of 360 Finance, Inc.
-diluted |
6.99 |
|
18.04 |
|
2.79 |
|
| Non-GAAP net
income per ADS attributable to ordinary shareholders of 360
Finance, Inc. -diluted |
7.89 |
|
18.83 |
|
2.92 |
|
| |
|
|
|
|
|
Reconciliation of Non-GAAP Income from operations to Income
from operations |
|
|
|
|
| Income from
operations |
1,177,416 |
|
3,410,905 |
|
528,282 |
|
| Add:
Share-based compensation expenses |
137,051 |
|
126,831 |
|
19,644 |
|
|
Non-GAAP Income from operations |
1,314,467 |
|
3,537,736 |
|
547,926 |
|
| Non-GAAP
operating margin |
20.2 |
% |
46.5 |
% |
|
|
| GAAP
operating margin |
18.1 |
% |
44.9 |
% |
|
|
| |
|
|
|
|
|
|
Qifu Technology (NASDAQ:QFIN)
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From Mar 2024 to Apr 2024
Qifu Technology (NASDAQ:QFIN)
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From Apr 2023 to Apr 2024
