360 DigiTech, Inc. (QFIN) (“360 DigiTech” or the “Company”), a
leading financial technology platform in China, today announced its
unaudited financial results for the third quarter ended September
30, 2021.
Third Quarter 2021 Business
Highlights
- As of September 30, 2021, our
digital platform has connected 115 financial institutional partners
and 181.8 million consumers*1 with potential credit needs,
cumulatively, an increase of 16.5% from 156.0 million a year
ago.
- Cumulative users with approved
credit lines*2 was 36.5 million as of September 30, 2021, an
increase of 24.6% from 29.3 million as of September 30, 2020.
- Cumulative borrowers with
successful drawdown, including repeat borrowers was 23.3 million as
of September 30, 2021, an increase of 24.6% from 18.7 million as of
September 30, 2020.
- In the third quarter of 2021,
financial institutional partners originated 26,680,676 loans*3,
totaling RMB97,592 million*4 through our platform, an increase of
47.9% from RMB66,000 million in the same period of 2020.
- Out of those loans originated by
financial institutions, RMB55,476 million was under capital-light
model and other technology solutions, representing 56.8% of the
total, an increase of 205.0% from RMB18,189 million in the same
period of 2020.
- Total outstanding balance*5 of the
loans originated by financial institutional partners through our
platform was RMB133,425 million as of September 30, 2021, an
increase of 58.4% from RMB84,214 million as of September 30,
2020.
- RMB72,435 million of such loan
balance was under capital-light model and other technology
solutions, an increase of 213.6% from RMB23,095 million as of
September 30, 2020.
- Financial institutions granted
approximately RMB8.0 billion credit lines to small and micro-sized
enterprises owners (SME Owners)*6 through our platform in the third
quarter of 2021, an increase of 12.7% from approximately RMB7.1
billion in the prior quarter.
- The weighted average contractual
tenor of loans originated by financial institutions across our
platform in the third quarter of 2021 was approximately 11.21
months, compared with 9.72 months in the same period of 2020.
- 90 day+ delinquency ratio*7 of
loans originated by financial institutions across our platform was
1.17% as of September 30, 2021.
- Repeat borrower contribution*8 of
loans originated by financial institutions across our platform for
the third quarter of 2021 was 89.2%.
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 11,726,713 loans across “V-pocket”, and
14,953,953 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 SME Owners 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.
Third Quarter 2021 Financial
Highlights
- Total net revenue increased by
24.6% to RMB4,612.8 million (US$715.9 million) from RMB3,703.5
million in the same period of 2020.
- Income from operations increased by
38.1% to RMB1,893.7 million (US$293.9 million) from RMB1,371.4
million in the same period of 2020.
- Non-GAAP*9 income from operations
increased by 37.5% to RMB1,963.3 million (US$304.7 million) from
RMB1,427.8 million in the same period of 2020.
- Operating margin was 41.1%.
Non-GAAP operating margin was 42.6%.
- Net income increased by 27.0% to
RMB1,564.1 million (US$242.7 million) from RMB1,231.7 million in
the same period of 2020.
- Non-GAAP net income increased by
26.8% to RMB1,633.6 million (US$253.5 million) from RMB1,288.1
million in the same period of 2020.
- Net income margin was 33.9%.
Non-GAAP net income margin was 35.4%.
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 robust quarter, which is the sixth consecutive quarter with
record breaking operational and financial metrics. The consistent
track record further demonstrated management’s solid overall
execution and the resilience of the Company’s business model.
During the quarter, financial institutions originated RMB97.6
billion loans through our platform, up approximately 48%
year-on-year. Approximately 57% of the loans was facilitated under
the capital-light model and other technology solutions*10, marking
consistent progress toward our long-term technology driven
strategic transition and upgrading.
Our embedded finance model continued to gain
traction among our business partners, contributing approximately
47% of new users with approved credit lines for the quarter. On the
SME front, we continued to ramp the operations with 13% volume
growth and 32% balance growth quarter-on-quarter in a muted macro
environment. We further optimized our customer acquisition systems
to better target higher quality potential borrowers.
On the regulatory front, as one of the top
Internet platforms, we have maintained close and frequent
communications with regulators in recent months to implement
necessary adjustment to our operations according to regulatory
requirement. We will continue our efforts to sustain high standard
compliance with laws and regulations and we are encouraged to see
additional policy clarity in recent months.
As a leading online fintech company, we
constantly optimize our operations and streamline our workflows to
minimize carbon footprint and environmental impact. Meanwhile we
take our social responsibility proactively by offering products and
incentives to support SMEs and rural development. In addition, the
World Economic Forum recently awarded us New Champions Community
Awards of Excellence in Agile Business Governance 2021. We are
especially honored to be the only company in Asia to receive the
award this year. This speaks to our continued commitment to
excellent corporate governance.”
“We are very glad to report another quarter of
record financial results. Total revenue was RMB4.61 billion and
non-GAAP net income reached RMB1.63 billion,” Mr. Alex Xu, Chief
Financial Officer, commented. “We continued to see strong demand
for consumer credit and overall asset quality remained stable.
During the quarter we generated over RMB1.78 billion cash from
operations, which further strengthened our financial position that
not only enables us to support our growth and innovations, but also
allows us to improve returns to our shareholders through a
quarterly dividend policy.”
Mr. Yan Zheng, Chief Risk Officer, added, “Our
key risk management metrics remained near the best level in history
during the quarter and the overall asset quality was stable. Among
the key leading indicators, Day-1 delinquency*11 was 5.1%, near the
record low of approximately 5.0%, while the 30-day collection
rate*12 staying near 90%. We will continue to take prudent approach
in overall risk management operations especially in light of the
macro uncertainties. But we are confident that, with effective risk
management systems, we are able to achieve a healthy balance
between the asset quality and business growth 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 56% 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.
Third Quarter 2021 Financial
Results
Total net revenue was
RMB4,612.8 million (US$715.9 million), compared to RMB3,703.5
million in the same period of 2020, and RMB4,001.6 million in the
prior quarter.
Net revenue from Credit Driven
Services was RMB2,620.0 million (US$406.6 million),
compared to RMB2,955.4 million in the same period of 2020, and
RMB2,404.7 million in the prior quarter.
Loan facilitation and servicing fees-capital
heavy were RMB581.1 million (US$90.2 million), compared to
RMB1,220.7 million in the same period of 2020 and RMB540.7 million
in the prior quarter. The year-over-year decline was primarily due
to declined loan volume under capital heavy model. The sequential
increase was in part due to increased loan volume under capital
heavy model.
Financing income*13 was
RMB570.5 million (US$88.5 million), compared to RMB530.8 million in
the same period of 2020 and RMB488.1 million in the prior quarter.
The year-over-year and sequential increases were primarily due to
growth in on-balance-sheet loans.
Revenue from releasing of guarantee liabilities
was RMB1,440.7 million (US$223.6 million), compared to RMB1,172.6
million in the same period of 2020, and RMB1,352.3 million in the
prior quarter. The year-over-year and sequential growth mainly
reflected trends in average outstanding balance of
off-balance-sheet capital-heavy loans during the period.
Other services fees were RMB27.6 million (US$4.3
million), compared to RMB31.2 million in the same period of 2020,
and RMB23.6 million in the prior quarter. The year-over-year and
sequential changes were mainly due to changes of late payment
fees.
Net revenue from Platform
Services was RMB1,992.8 million (US$309.3 million),
compared to RMB748.1 million in the same period of 2020 and
RMB1,596.9 million in the prior quarter.
Loan facilitation and servicing fees-capital
light were RMB1,800.1 million (US$279.4 million), compared to
RMB663.4 million in the same period of 2020 and RMB1,398.7 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 RMB156.3 million
(US$24.3 million), compared to RMB68.1 million in the same period
of 2020 and RMB160.3 million in the prior quarter. The
year-over-year increase was primarily due to the facilitation
volume growth through ICE. The sequential decline was mainly due to
decline in traditional traffic referral, and partially offset by
increase in ICE related fees.
Other services fees were RMB36.5 million (US$5.7
million), compared to RMB16.7 million in the same period of 2020
and RMB37.9 million in the prior quarter. The year-over-year and
sequential changes reflected changes of late payment fees under
capital-light model.
Total operating costs and
expenses were RMB2,719.1 million (US$422.0 million),
compared to RMB2,332.1 million in the same period of 2020 and
RMB2,148.4 million in the prior quarter.
Facilitation, origination and servicing expenses
were RMB627.2 million (US$97.3 million), compared to RMB408.7
million in the same period of 2020 and RMB558.0 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 RMB83.8 million (US$13.0
million), compared to RMB144.6 million in the same period of 2020
and RMB83.2 million in the prior quarter. The year-over-year
decline was mainly due to increased funding contribution from
self-funded ABS despite increases in on-balance sheet loans.
Sales and marketing expenses were RMB577.3
million (US$89.6 million), compared to RMB271.1 million in the same
period of 2020 and RMB499.9 million in the prior quarter. The
year-over-year and sequential increases were mainly due to a more
proactive customer acquisition strategy, particularly related to
acquiring large ticket-size customers.
General and administrative expenses were
RMB173.0 million (US$26.9 million), compared to RMB102.4 million in
the same period of 2020 and RMB139.3 million in the prior quarter.
The year-over-year and sequential increases were primarily due to
increases in professional service fees.
Provision for loans receivable was RMB360.4
million (US$55.9 million), compared to RMB67.4 million in the same
period of 2020 and RMB247.0 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
RMB70.1 million (US$10.9 million), compared to RMB81.6 million in
the same period of 2020 and RMB58.5 million in the prior
quarter.
Provision for accounts receivable and contract
assets was RMB129.1 million (US$20.0 million), compared to RMB66.2
million in the same period of 2020 and RMB100.7 million in the
prior quarter. The year-over-year and sequential increases in the
above provisions combined was primarily due to increases in
facilitation and origination volume, and also reflected the
Company’s consistent approach in assessing provisions commensurate
with its underlying loan profile.
Provision for contingent liability was RMB698.3
million (US$108.4 million), compared to RMB1,190.2 million in the
same period of 2020 and RMB461.9 million in the prior quarter. The
year-over-year decline was mainly due to loans facilitated in prior
quarters performed better than expected. The sequential increase
primarily reflected the Company’s consistent approach in assessing
provisions commensurate with its underlying loan profile.
Income from operations was
RMB1,893.7 million (US$293.9 million), compared to RMB1,371.4
million in the same period of 2020 and RMB1,853.1 million in the
prior quarter.
Non-GAAP income from operations
was RMB1,963.3 million (US$304.7 million), compared to RMB1,427.8
million in the same period of 2020 and RMB1,920.4 million in the
prior quarter.
Operating margin was 41.1%.
Non-GAAP operating margin was 42.6%.
Income before income tax
expense was RMB1,922.7 million (US$298.4 million),
compared to RMB1,459.0 million in the same period of 2020 and
RMB1,953.2 million in the prior quarter.
Net income attributed to the
Company was RMB1,564.1 million (US$242.7 million),
compared to RMB1,231.9 million in the same period of 2020 and
RMB1,547.6 million in the prior quarter.
Non-GAAP net income
attributed to the Company was RMB1,633.6 million
(US$253.5 million), compared to RMB1,288.3 million in the same
period of 2020 and RMB1,614.9 million in the prior quarter.
Net income margin was 33.9%.
Non-GAAP net income margin was 35.4%.
Net income per fully diluted
ADS was RMB9.74 (US$1.52).
Non-GAAP net income per fully diluted
ADS was RMB10.17 (US$1.58).
Weighted average basic ADS used in
calculating GAAP and non-GAAP net income per ADS was
154.06 million.
Weighted average diluted ADS used in
calculating GAAP and non-GAAP net income per ADS was
160.68 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/65794103-4574-4366-a571-9012bd625340
http://ml.globenewswire.com/Resource/Download/7c33dc8b-b6d3-4771-8b31-254668eca3df
Quarterly Dividend Policy
On November 15, 2021, the board of directors of
the Company approved a quarterly cash dividend policy. Under the
policy, the Company will declare and distribute a recurring cash
dividend every fiscal quarter, starting from the third fiscal
quarter of 2021, at an amount equivalent to approximately 15% to
20% of the Company’s net income after tax for such quarter. The
determination to make dividend distributions and the exact amount
of such distributions in any particular quarter will be based upon
the Company’s operations and financial conditions, and other
relevant factors, and subject to adjustment and determination by
the board of directors.
Quarterly Dividend
The board of directors of the Company has
approved a dividend of US$0.14 per ordinary share, or US$0.28 per
ADS, for the third fiscal quarter of 2021 in accordance with the
Company’s dividend policy, which is expected to be paid on January
18, 2022 to shareholders of record as of the close of business on
December 15, 2021.
Business Outlook
The Company currently expects total loan
facilitation and origination volume for the fourth quarter of 2021
to be between RMB90 billion and RMB100 billion, which makes total
loan facilitation and origination volume for 2021 to be between
RMB350 billion and RMB360 billion, compared to previous guidance of
between RMB340 billion and RMB350 billion for 2021, representing
year-on-year growth of 42% to 46%. 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 7:00 PM U.S. Eastern Time on Monday,
November 15, 2021 (8:00 AM Beijing Time on November 16).
United States: |
+1-646-722-4977 |
Hong Kong: |
+852-3027-6500 |
Mainland China: |
400-821-0637 |
International: |
+65-6408-5782 |
PIN: |
46934276 # |
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 November 22,
2021:
United States: |
+1-646-982-0473 |
International: |
+65-6408-5781 |
Access code: |
520000187 # |
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
RMB6.4434 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 September 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 and 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 ChinaMr. Eric YuanPhone:
+86-138-0111-0739E-mail: Eyuan@christensenir.com
In US Ms. Linda BergkampPhone:
+1-480-614-3004Email: 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, |
September
30, |
September
30, |
|
2020 |
2021 |
2021 |
|
RMB |
RMB |
USD |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
4,418,416 |
|
4,224,320 |
|
655,604 |
|
Restricted
cash |
2,355,850 |
|
2,413,510 |
|
374,571 |
|
Security
deposit prepaid to third-party guarantee companies |
915,144 |
|
935,441 |
|
145,178 |
|
Funds
receivable from third party payment service providers |
131,464 |
|
207,867 |
|
32,260 |
|
Accounts
receivable and contract assets, net |
2,394,528 |
|
2,084,544 |
|
323,516 |
|
Financial
assets receivable, net |
3,565,482 |
|
4,277,470 |
|
663,853 |
|
Amounts due
from related parties |
193,305 |
|
1,205,662 |
|
187,116 |
|
Loans
receivable, net |
7,500,629 |
|
9,924,346 |
|
1,540,234 |
|
Prepaid
expenses and other assets |
401,224 |
|
319,565 |
|
49,596 |
|
Total current assets |
21,876,042 |
|
25,592,725 |
|
3,971,928 |
|
Non-current assets: |
|
|
|
Accounts
receivable and contract assets, net-non current |
307,937 |
|
434,744 |
|
67,471 |
|
Financial
assets receivable, net-non current |
645,326 |
|
630,026 |
|
97,779 |
|
Amounts due
from related parties |
- |
|
419,092 |
|
65,042 |
|
Loans
receivable, net-non current |
87,685 |
|
2,593,201 |
|
402,458 |
|
Property and
equipment, net |
19,360 |
|
20,374 |
|
3,162 |
|
Intangible
assets |
3,403 |
|
4,020 |
|
624 |
|
Deferred tax
assets |
1,398,562 |
|
1,159,367 |
|
179,931 |
|
Other
non-current assets |
48,990 |
|
31,494 |
|
4,888 |
|
Total non-current assets |
2,511,263 |
|
5,292,318 |
|
821,355 |
|
TOTAL ASSETS |
24,387,305 |
|
30,885,043 |
|
4,793,283 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Payable to
investors of the consolidated trusts-current |
3,117,634 |
|
2,443,789 |
|
379,270 |
|
Accrued
expenses and other current liabilities |
809,761 |
|
1,509,554 |
|
234,279 |
|
Amounts due
to related parties |
71,562 |
|
122,028 |
|
18,938 |
|
Short term
loans |
186,800 |
|
335,892 |
|
52,130 |
|
Guarantee
liabilities-stand ready |
4,173,497 |
|
4,656,051 |
|
722,608 |
|
Guarantee
liabilities-contingent |
3,543,454 |
|
3,142,158 |
|
487,655 |
|
Income tax
payable |
1,227,314 |
|
991,645 |
|
153,901 |
|
Other tax
payable |
254,486 |
|
293,501 |
|
45,551 |
|
Total current liabilities |
13,384,508 |
|
13,494,618 |
|
2,094,332 |
|
Non-current liabilities: |
|
|
|
Deferred tax
liabilities |
37,843 |
|
108,269 |
|
16,803 |
|
Payable to
investors of the consolidated trusts-noncurrent |
1,468,890 |
|
3,155,386 |
|
489,708 |
|
Other
long-term liabilities |
14,974 |
|
9,945 |
|
1,543 |
|
Total non-current liabilities |
1,521,707 |
|
3,273,600 |
|
508,054 |
|
TOTAL LIABILITIES |
14,906,215 |
|
16,768,218 |
|
2,602,386 |
|
Ordinary
shares |
21 |
|
21 |
|
3 |
|
Additional
paid-in capital |
5,417,406 |
|
5,614,716 |
|
871,390 |
|
Retained
earnings |
4,137,542 |
|
8,596,706 |
|
1,334,188 |
|
Other
comprehensive income (loss) |
(74,391 |
) |
(94,618 |
) |
(14,684 |
) |
TOTAL 360 DIGITECH INC EQUITY |
9,480,578 |
|
14,116,825 |
|
2,190,897 |
|
Noncontroling interests |
512 |
|
0 |
|
0 |
|
TOTAL EQUITY |
9,481,090 |
|
14,116,825 |
|
2,190,897 |
|
TOTAL LIABILITIES AND EQUITY |
24,387,305 |
|
30,885,043 |
|
4,793,283 |
|
|
|
|
|
|
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 September 30, |
|
Nine months ended September 30, |
|
2020 |
2021 |
2021 |
|
2020 |
2021 |
2021 |
|
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
Credit driven services |
2,955,392 |
|
2,619,968 |
|
406,613 |
|
|
8,846,546 |
|
7,476,006 |
|
1,160,259 |
|
Loan facilitation and servicing fees-capital heavy |
1,220,748 |
|
581,055 |
|
90,178 |
|
|
3,741,738 |
|
1,846,102 |
|
286,511 |
|
Financing income |
530,766 |
|
570,547 |
|
88,548 |
|
|
1,768,279 |
|
1,468,075 |
|
227,842 |
|
Revenue from releasing of guarantee liabilities |
1,172,640 |
|
1,440,719 |
|
223,596 |
|
|
3,255,371 |
|
4,088,453 |
|
634,518 |
|
Other services fees |
31,238 |
|
27,647 |
|
4,291 |
|
|
81,158 |
|
73,376 |
|
11,388 |
|
Platform services |
748,129 |
|
1,992,845 |
|
309,285 |
|
|
1,379,922 |
|
4,737,574 |
|
735,260 |
|
Loan facilitation and servicing fees-capital light |
663,354 |
|
1,800,071 |
|
279,367 |
|
|
1,145,564 |
|
4,192,673 |
|
650,693 |
|
Referral services fees |
68,086 |
|
156,295 |
|
24,257 |
|
|
187,149 |
|
442,889 |
|
68,735 |
|
Other services fees |
16,689 |
|
36,479 |
|
5,661 |
|
|
47,209 |
|
102,012 |
|
15,832 |
|
Total net revenue |
3,703,521 |
|
4,612,813 |
|
715,898 |
|
|
10,226,468 |
|
12,213,580 |
|
1,895,519 |
|
Facilitation, origination and servicing |
408,693 |
|
627,192 |
|
97,339 |
|
|
1,156,112 |
|
1,662,927 |
|
258,082 |
|
Funding costs |
144,596 |
|
83,753 |
|
12,998 |
|
|
464,272 |
|
245,995 |
|
38,178 |
|
Sales and marketing |
271,082 |
|
577,264 |
|
89,590 |
|
|
763,144 |
|
1,462,210 |
|
226,931 |
|
General and administrative |
102,387 |
|
173,003 |
|
26,850 |
|
|
320,606 |
|
416,777 |
|
64,683 |
|
Provision for loans receivable |
67,383 |
|
360,399 |
|
55,933 |
|
|
593,211 |
|
742,286 |
|
115,201 |
|
Provision for financial assets receivable |
81,642 |
|
70,085 |
|
10,877 |
|
|
254,565 |
|
173,661 |
|
26,952 |
|
Provision for accounts receivable and contract assets |
66,163 |
|
129,086 |
|
20,034 |
|
|
213,950 |
|
286,202 |
|
44,418 |
|
Provision for contingent liabilities |
1,190,176 |
|
698,313 |
|
108,376 |
|
|
3,911,793 |
|
1,918,899 |
|
297,808 |
|
Total operating costs and expenses |
2,332,122 |
|
2,719,095 |
|
421,997 |
|
|
7,677,653 |
|
6,908,957 |
|
1,072,253 |
|
Income from operations |
1,371,399 |
|
1,893,718 |
|
293,901 |
|
|
2,548,815 |
|
5,304,623 |
|
823,266 |
|
Interest income, net |
19,623 |
|
26,915 |
|
4,177 |
|
|
44,601 |
|
109,790 |
|
17,039 |
|
Foreign exchange gain |
63,408 |
|
4,002 |
|
621 |
|
|
39,521 |
|
17,897 |
|
2,778 |
|
Investment gain |
|
10,115 |
|
1,570 |
|
|
|
10,115 |
|
1,570 |
|
Other income(expenses), net |
4,609 |
|
(12,074 |
) |
(1,874 |
) |
|
96,899 |
|
38,737 |
|
6,012 |
|
Income before income tax expense |
1,459,039 |
|
1,922,676 |
|
298,395 |
|
|
2,729,836 |
|
5,481,162 |
|
850,665 |
|
Income taxes expense |
(227,315 |
) |
(358,599 |
) |
(55,654 |
) |
|
(438,492 |
) |
(1,021,956 |
) |
(158,605 |
) |
Net
income |
1,231,724 |
|
1,564,077 |
|
242,741 |
|
|
2,291,344 |
|
4,459,206 |
|
692,060 |
|
Net loss(income) attributable to noncontrolling interests |
151 |
|
- |
|
- |
|
|
453 |
|
(42 |
) |
(7 |
) |
Net
income attributable to ordinary shareholders of the
Company |
1,231,875 |
|
1,564,077 |
|
242,741 |
|
|
2,291,797 |
|
4,459,164 |
|
692,053 |
|
Net income
per ordinary share attributable to ordinary shareholders of 360
DigiTech, Inc. |
|
|
|
|
|
|
|
Basic |
4.10 |
|
5.08 |
|
0.79 |
|
|
7.73 |
|
14.54 |
|
2.26 |
|
Diluted |
3.99 |
|
4.87 |
|
0.76 |
|
|
7.50 |
|
13.89 |
|
2.16 |
|
|
|
|
|
|
|
|
|
Net income
per ADS attributable to ordinary shareholders of 360 DigiTech,
Inc. |
|
|
|
|
|
|
|
Basic |
8.20 |
|
10.16 |
|
1.58 |
|
|
15.46 |
|
29.08 |
|
4.52 |
|
Diluted |
7.98 |
|
9.74 |
|
1.52 |
|
|
15.00 |
|
27.78 |
|
4.32 |
|
|
|
|
|
|
|
|
|
Weighted
average shares used in calculating net income per ordinary
share |
|
|
|
|
|
|
|
Basic |
300,174,655 |
|
308,110,677 |
|
308,110,677 |
|
|
296,518,120 |
|
306,641,972 |
|
306,641,972 |
|
Diluted |
308,646,862 |
|
321,368,936 |
|
321,368,936 |
|
|
305,520,538 |
|
320,946,727 |
|
320,946,727 |
|
|
|
|
|
|
|
|
|
|
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 September 30, |
|
Nine months ended September 30, |
|
2020 |
2021 |
2021 |
|
2020 |
2021 |
2021 |
|
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
Net cash provided by operating activities |
1,422,651 |
|
1,776,677 |
|
275,735 |
|
|
4,166,608 |
|
4,826,046 |
|
748,991 |
|
Net cash
provided by (used in) investing activities |
949,952 |
|
(3,430,815 |
) |
(532,454 |
) |
|
464,562 |
|
(6,137,905 |
) |
(952,588 |
) |
Net cash
provided by financing activities |
(1,889,305 |
) |
455,225 |
|
70,650 |
|
|
(1,244,002 |
) |
1,178,132 |
|
182,843 |
|
Effect of
foreign exchange rate changes |
(4,884 |
) |
43 |
|
7 |
|
|
(1,370 |
) |
(2,709 |
) |
(420 |
) |
Net
increase(decrease) in cash and cash equivalents |
478,414 |
|
(1,198,870 |
) |
(186,062 |
) |
|
3,385,798 |
|
(136,436 |
) |
(21,174 |
) |
Cash, cash
equivalents, and restricted cash, beginning of year |
6,743,234 |
|
7,836,700 |
|
1,216,237 |
|
|
3,835,850 |
|
6,774,266 |
|
1,051,350 |
|
Cash, cash
equivalents, and restricted cash, end of year |
7,221,648 |
|
6,637,830 |
|
1,030,175 |
|
|
7,221,648 |
|
6,637,830 |
|
1,030,176 |
|
|
|
|
|
|
|
|
|
|
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 September 30, |
|
2020 |
2021 |
2021 |
|
RMB |
RMB |
USD |
Net income |
1,231,724 |
|
1,564,077 |
|
242,741 |
|
Other
comprehensive income, net of tax of nil: |
|
|
|
Foreign
currency translation adjustment |
(64,847 |
) |
(4,435 |
) |
(688 |
) |
Other
comprehensive income |
(64,847 |
) |
(4,435 |
) |
(688 |
) |
Total comprehensive income |
1,166,877 |
|
1,559,642 |
|
242,053 |
|
Net
loss(income) attributable to noncontrolling interests |
151 |
|
- |
|
- |
|
Comprehensive income attributable to ordinary
shareholders |
1,167,028 |
|
1,559,642 |
|
242,053 |
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, |
|
2020 |
2021 |
2021 |
|
RMB |
RMB |
USD |
Net
income |
2,291,344 |
|
4,459,206 |
|
692,060 |
|
Other
comprehensive income, net of tax of nil: |
|
|
|
Foreign
currency translation adjustment |
(37,446 |
) |
(20,227 |
) |
(3,139 |
) |
Other
comprehensive (loss) income |
(37,446 |
) |
(20,227 |
) |
(3,139 |
) |
Total comprehensive income |
2,253,898 |
|
4,438,979 |
|
688,921 |
|
Net
loss(income) attributable to noncontrolling interests |
453 |
|
(42 |
) |
(7 |
) |
Comprehensive income attributable to ordinary
shareholders |
2,254,351 |
|
4,438,937 |
|
688,914 |
|
|
|
|
|
|
|
|
|
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 September 30, |
|
2020 |
2021 |
2021 |
|
RMB |
RMB |
USD |
|
Reconciliation of Non-GAAP Net Income to Net
Income |
|
|
|
|
Net income |
1,231,724 |
|
1,564,077 |
|
242,741 |
|
Add:
Share-based compensation expenses |
56,396 |
|
69,540 |
|
10,792 |
|
Non-GAAP net income |
1,288,120 |
|
1,633,617 |
|
253,533 |
|
Non-GAAP net
income margin |
34.8 |
% |
35.4 |
% |
|
|
GAAP net
income margin |
33.3 |
% |
33.9 |
% |
|
|
|
|
|
|
|
Net
income attributable to shareholders of 360 DigiTech,
Inc |
1,231,875 |
|
1,564,077 |
|
242,741 |
|
Add:
Share-based compensation expenses |
56,396 |
|
69,540 |
|
10,792 |
|
Non-GAAP net income attributable to shareholders of 360
DigiTech, Inc |
1,288,271 |
|
1,633,617 |
|
253,533 |
|
Weighted
average ADS used in calculating net income per ordinary share for
both GAAP and non-GAAP EPS -diluted |
154,323,431 |
|
160,684,468 |
|
160,684,468 |
|
Net income
per ADS attributable to ordinary shareholders of 360 DigiTech, Inc.
-diluted |
7.98 |
|
9.74 |
|
1.52 |
|
Non-GAAP net
income per ADS attributable to ordinary shareholders of 360
DigiTech, Inc. -diluted |
8.35 |
|
10.17 |
|
1.58 |
|
|
|
|
|
|
Reconciliation of Non-GAAP Income from operations to Income
from operations |
|
|
|
|
Income from
operations |
1,371,399 |
|
1,893,718 |
|
293,901 |
|
Add:
Share-based compensation expenses |
56,396 |
|
69,540 |
|
10,792 |
|
Non-GAAP Income from operations |
1,427,795 |
|
1,963,258 |
|
304,693 |
|
Non-GAAP
operating margin |
38.6 |
% |
42.6 |
% |
|
|
GAAP
operating margin |
37.0 |
% |
41.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30, |
|
2020 |
2021 |
2021 |
|
RMB |
RMB |
USD |
|
Reconciliation of Non-GAAP Net Income to Net
Income |
|
|
|
|
Net
income |
2,291,344 |
|
4,459,206 |
|
692,060 |
|
Add:
Share-based compensation expenses |
193,447 |
|
196,371 |
|
30,476 |
|
Non-GAAP net income |
2,484,791 |
|
4,655,577 |
|
722,536 |
|
Non-GAAP net
income margin |
24.3 |
% |
38.1 |
% |
|
|
GAAP net
income margin |
22.4 |
% |
36.5 |
% |
|
|
|
|
|
|
|
Net
income attributable to shareholders of 360 Finance,
Inc |
2,291,797 |
|
4,459,164 |
|
692,053 |
|
Non-GAAP net income attributable to shareholders of 360
Finance, Inc |
2,485,244 |
|
4,655,535 |
|
722,529 |
|
Weighted
average ADS used in calculating net income per ordinary share
-diluted |
152,760,269 |
|
160,473,363 |
|
160,473,363 |
|
Net income
per ADS attributable to ordinary shareholders of 360 Finance, Inc.
-diluted |
15.00 |
|
27.79 |
|
4.31 |
|
Non-GAAP net
income per ADS attributable to ordinary shareholders of 360
Finance, Inc. -diluted |
16.27 |
|
29.01 |
|
4.50 |
|
|
|
|
|
|
Reconciliation of Non-GAAP Income from operations to Income
from operations |
|
|
|
|
Income from
operations |
2,548,815 |
|
5,304,623 |
|
823,266 |
|
Add:
Share-based compensation expenses |
193,447 |
|
196,371 |
|
30,476 |
|
Non-GAAP Income from operations |
2,742,262 |
|
5,500,994 |
|
853,742 |
|
Non-GAAP
operating margin |
26.8 |
% |
45.0 |
% |
|
|
GAAP
operating margin |
24.9 |
% |
43.4 |
% |
|
|
|
|
|
|
|
|
|
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