360 DigiTech, Inc. (QFIN) (“360 DigiTech” or the “Company”), a
leading Credit-Tech platform in China, today announced its
unaudited financial results for the first quarter ended March 31,
2022.
First Quarter 2022 Business
Highlights
- As of March 31, 2022, our platform
has connected 122 financial institutional partners and 192.9
million consumers*1 with potential credit needs, cumulatively, an
increase of 14.1% from 169.1 million a year ago.
- Cumulative users with approved
credit lines*2 were 39.8 million as of March 31, 2022, an increase
of 21.7% from 32.7 million as of March 31, 2021.
- Cumulative borrowers with
successful drawdown, including repeat borrowers was 25.0 million as
of March 31, 2022, an increase of 19.0% from 21.0 million as of
March 31, 2021.
- In the first quarter of 2022,
financial institutional partners originated 14,262,386 loans*3
through our platform. Total facilitation and origination loan
volume reached RMB98,833 million*4, an increase of 33.3% from
RMB74,149 million in the same period of 2021.
- Out of those loans originated by
financial institutions, RMB53,327 million was under capital-light
model, Intelligence Credit Engine (“ICE”) and other technology
solutions, representing 54.0% of the total, an increase of 43.2%
from RMB37,245 million in the same period of 2021.
- Total outstanding balance*5 of the
loans originated by financial institutional partners through our
platform was RMB146,720 million as of March 31, 2022, an increase
of 44.0% from RMB101,920 million as of March 31, 2021.
- RMB78,804 million of such loan
balance was under capital-light model, “ICE” and other technology
solutions, an increase of 84.2% from RMB42,775 million as of March
31, 2021.
- Financial institutions granted
approximately RMB7.4 billion credit lines to small and micro-sized
enterprises and their owners (collectively, SMEs)*6 through our
platform in the first quarter of 2022.
- The weighted average contractual
tenor of loans originated by financial institutions across our
platform in the first quarter of 2022 was approximately 10.99
months, compared with 10.17 months in the same period of 2021.
- 90 day+ delinquency rate*7 of loans
originated by financial institutions across our platform was 2.40%
as of March 31, 2022.
- Repeat borrower contribution*8 of
loans originated by financial institutions across our platform for
the first quarter of 2022 was 87.8%.
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 at the end of each period.3
Including 4,189,074 loans across “V-pocket”, and 10,073,312 loans
across other products.4 Refers to the total principal amount of
loans facilitated and originated during the given period, including
loan 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 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 rate” refers to the
outstanding principal balance of on- and off-balance sheet loans
that were 91 to 180 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.
First Quarter 2022 Financial
Highlights
- Total net revenue increased by
20.0% to RMB4,320.0 million (US$681.5 million) from RMB3,599.2
million in the same period of 2021.
- Income from operations was
RMB1,359.3 million (US$214.4 million), compared to RMB1,557.8
million in the same period of 2021.
- Non-GAAP*9 income from operations
was RMB1,411.3 million (US$222.6 million), compared to RMB1,617.3
million in the same period of 2021.
- Operating margin was 31.5%.
Non-GAAP operating margin was 32.7%.
- Net income was RMB1,174.4 million
(US$185.2 million), compared to RMB1,347.2 million in the same
period of 2021.
- Non-GAAP net income was RMB1,226.4
million (US$193.5 million, compared to RMB1,406.8 million in the
same period of 2021.
- Net income attributed to the
Company was RMB1,179.5 million (US$186.1 million), compared to
RMB1,347.4 million in the same period of 2021.
- Net income margin was 27.2%.
Non-GAAP net income margin was 28.4%.
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 pleased to report
another solid quarter despite amidst dampened macroeconomic
environment and the resurgence of the COVID-19 in certain regions
of China. In the first quarter, Total facilitation and origination
volume was RMB98.8 billion, up approximately 33% year-on-year.
Approximately 54% of the loans was facilitated under the
capital-light model, ICE and other technology solutions*10, as we
continued to pursue long term sustainable technology driven
business models.
More importantly, we are making significant
progress to serve user segments with lower overall credit risk and
higher retention. As a result, we further lowered our product
pricing during this quarter. Average IRR of the cap-heavy and
cap-light loans originated through our platform was already below
24% in the first quarter, and we are confident to move ahead of the
schedule to meet the rate cap requirement. During the quarter, we
also continued to expand our financial institution partnership,
particularly with larger banks with national coverage, to secure
ample funding sources at competitive terms.
On the regulatory front, as one of the leading
Credit-Tech platforms, we have worked diligently to implement
necessary rectification to our operations according to regulatory
guidance and requirements. We are encouraged by recent public
comments from regulators, which continue to support healthy
development of platform economy and suggest changing regulatory
focus from rectification toward regular supervision.”
“We are very glad to report a solid quarter of
strong financial results in a challenging macro environment. Total
revenue was RMB4.32 billion and non-GAAP net income was RMB1.23
billion,” Mr. Alex Xu, Chief Financial Officer, commented.
“Although demand for consumer credit was as expected with normal
seasonality in the first quarter, we started to take prudent
approach to operate our business to better navigate through the
uncertainty resulting from the challenging macro backdrop. At the
end of the first quarter, our total cash and cash equivalent was
approximately RMB9.8 billion, of which approximately RMB6.2 billion
was non-restricted, giving us ever strong financial positions to
support our long term growth while dealing with near term economic
challenges.”
Mr. Yan Zheng, Chief Risk Officer, added, “First
quarter was a very dynamic period from risk management perspective.
On one hand, as we optimized our risk model and brought in more
high quality users, overall risk profile of our borrowers improved
noticeably, as indicated by the improving Day-1 delinquency*11 to
5.2% from 5.4% a quarter ago. On the other hand, 30-day collection
rate*12 declined modestly to 86% from 87% quarter-by-quarter,
mainly because we had to adjust our collection operations in
regions being significantly impacted by the resurgence of the
COVID-19. Overall, we believe asset quality will gradually improve
later in the year, particularly in the second half, primarily due
to our further penetration into better user segments.”
10 We’ve mainly used data technology tools and
AI credit assessment 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 accounted for 45% of our total net revenue for the first
quarter 2022. 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 of specified date,
divided by (ii) the total amount of principal that became overdue
as of a specified date.
First Quarter 2022 Financial
Results
Total net revenue was
RMB4,320.0 million (US$681.5 million), compared to RMB3,599.2
million in the same period of 2021, and RMB4,422.1 million in the
prior quarter.
Net revenue from Credit Driven
Services was RMB2,920.6 million (US$460.7 million),
compared to RMB2,451.3 million in the same period of 2021, and
RMB2,713.2 million in the prior quarter.
Loan facilitation and servicing fees-capital
heavy were RMB561.4 million (US$88.6 million), compared to RMB724.3
million in the same period of 2021 and RMB479.9 million in the
prior quarter. The year-over-year decline was driven by lower
interest rates of the capital heavy loans, and the sequential
increase was primarily due to higher average tenor of the
loans.
Financing income*13 was RMB789.2 million
(US$124.5 million), compared to RMB409.4 million in the same period
of 2021 and RMB716.1 million in the prior quarter. The
year-over-year and sequential increases were primarily due to the
growth in outstanding on-balance-sheet loan balance.
Revenue from releasing of guarantee liabilities
was RMB1,550.0 million (US$244.5 million), compared to RMB1,295.4
million in the same period of 2021, and RMB1,494.7 million in the
prior quarter. The year-over-year and sequential growth mainly
reflected increasing trends in average outstanding balance of
off-balance-sheet capital-heavy loans during the period.
Other services fees were RMB20.0 million (US$3.2
million), compared to RMB22.2 million in the same period of 2021,
and RMB22.5 million in the prior quarter. The year-over-year and
sequential declines were mainly due to declines in late payment
fees under capital-heavy model.
Net revenue from Platform
Services was RMB1,399.4 million (US$220.8 million),
compared to RMB1,147.9 million in the same period of 2021 and
RMB1,708.9 million in the prior quarter.
Loan facilitation and servicing fees-capital
light were RMB1,098.9 million (US$173.4 million), compared to
RMB993.9 million in the same period of 2021 and RMB1,485.3 million
in the prior quarter. The year-over-year growth was primarily due
to the growth in outstanding loan balance under capital-light
model, the sequential decline was mainly due to the decline in loan
facilitation volume under capital-light model as well as lower
average prices.
Referral services fees were RMB247.3 million
(US$39.0 million), compared to RMB126.3 million in the same period
of 2021 and RMB177.4 million in the prior quarter. The
year-over-year and sequential increases were primarily due to the
growth in facilitation volume through ICE.
Other services fees were RMB53.2 million (US$8.4
million), compared to RMB27.6 million in the same period of 2021
and RMB46.2 million in the prior quarter. The year-over-year and
sequential growth reflected the growth in late payment fees under
capital-light model.
Total operating costs and
expenses were RMB2,960.8 million (US$467.1 million),
compared to RMB2,041.4 million in the same period of 2021 and
RMB2,940.5 million in the prior quarter.
Facilitation, origination and servicing expenses
were RMB614.9 million (US$97.0 million), compared to RMB477.8
million in the same period of 2021 and RMB589.2 million in the
prior quarter. The year-over-year and sequential increases were in
part due to growth in loan facilitation and origination volume and
balance.
Funding costs were RMB103.8 million (US$16.4
million), compared to RMB79.1million in the same period of 2021 and
RMB91.4 million in the prior quarter. The year-over-year and
sequential increase were mainly due to the growth in funding from
ABS and trusts.
Sales and marketing expenses were RMB552.6
million (US$87.2 million), compared to RMB385.0 million in the same
period of 2021 and RMB628.2 million in the prior quarter. The
year-over-year increase was mainly due to the growth of loan
facilitation and origination volume. The sequential decline was in
part due to normal seasonality associated with the Chinese New Year
holidays.
General and administrative expenses were
RMB122.3 million (US$19.3 million), compared to RMB104.5 million in
the same period of 2021 and RMB140.5 million in the prior quarter.
The year-over-year increase was due to expanded business
operations. The sequential decline was due to lower professional
service fees and our continued effort to improve operational
efficiency.
Provision for loans receivable was RMB491.2
million (US$77.5 million), compared to RMB134.9 million in the same
period of 2021 and RMB223.1 million in the prior quarter. The
year-over-year and sequential increases were mainly due to growth
in on-balance sheet loans and reflected the Company’s consistent
approach in assessing provisions commensurate with its underlying
loan profile.
Provision for financial assets receivable was
RMB60.5 million (US$9.5 million), compared to RMB45.1 million in
the same period of 2021 and RMB70.3 million in the prior quarter.
The fluctuations were consistent with trends in facilitation volume
of off-balance-sheet capital-heavy loans.
Provision for accounts receivable and contract
assets was RMB53.6 million (US$8.5 million), compared to RMB56.4
million in the same period of 2021 and RMB38.4 million in the prior
quarter. The year-over-year decline was primarily due to a decrease
in facilitation volume under capital-light model. The sequential
increase mainly reflected the Company’s consistent approach in
assessing provisions commensurate with its underlying loan
profile.
Provision for contingent liability was RMB961.9
million (US$151.7 million), compared to RMB758.7 million in the
same period of 2021 and RMB1,159.3 million in the prior quarter.
The year-over-year and sequential changes were largely driven by
the change in facilitation volume of off-balance-sheet
capital-heavy loans and also reflected the Company’s consistent
approach in assessing provisions commensurate with its underlying
loan profile.
Income from operations was
RMB1,359.3 million (US$214.4 million), compared to RMB1,557.8
million in the same period of 2021 and RMB1,481.6 million in the
prior quarter.
Non-GAAP income from operations
was RMB1,411.3 million (US$222.6 million), compared to RMB1,617.3
million in the same period of 2021 and RMB1,539.1 million in the
prior quarter.
Operating margin was 31.5%.
Non-GAAP operating margin was 32.7%.
Income before income tax
expense was RMB1,390.8 million (US$219.4 million),
compared to RMB1,605.3 million in the same period of 2021 and
RMB1,541.5million in the prior quarter.
Net income attributed to the
Company was RMB1,179.5 million (US$186.1 million),
compared to RMB1,347.4 million in the same period of 2021 and
RMB1,322.6 million in the prior quarter.
Non-GAAP net income
attributed to the Company was RMB1,231.6 million
(US$194.3 million), compared to RMB1,407.0 million in the same
period of 2021 and RMB1,380.1 million in the prior quarter.
Net income margin was 27.2%.
Non-GAAP net income margin was 28.4%.
Net income per fully diluted
ADS was RMB7.36 (US$1.16).
Non-GAAP net income per fully diluted
ADS was RMB7.68 (US$1.21).
Weighted average basic ADS used in
calculating GAAP and non-GAAP net income per ADS was
155.30 million.
Weighted average diluted ADS used in
calculating GAAP and non-GAAP net income per ADS was
160.46 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, and loans under “ICE” and other
technology solutions are not included in the M6+ charts:
http://ml.globenewswire.com/Resource/Download/37192df0-2cf1-4fcc-8406-2b7da730a44a
http://ml.globenewswire.com/Resource/Download/54d392cd-30c5-47cd-8f30-3979f844e5a7
Quarterly Dividend
The board of directors of the Company has
approved a dividend of US$0.11 per ordinary share, or US$0.22 per
ADS, for the first fiscal quarter of 2022 in accordance with the
Company’s dividend policy, which is expected to be paid on July 27,
2022 to shareholders of record as of the close of business on June
20, 2022.
Business Outlook
Given the current macro environment and the
resurgence of COVID-19, the Company would like to maintain its
outlook for loan facilitation and origination volume for 2022 at
between RMB410 billion and RMB450 billion, representing
year-on-year growth of 15% to 26%. This outlook reflects the
Company’s current and preliminary views, which is subject to
material changes.
Conference Call
360 DigiTech’s management team will host an
earnings conference call at 8:30 PM U.S. Eastern Time on Tuesday,
May 24, 2022 (8:30 AM Beijing Time on May 25).
United States: |
+1-646-722-4977 |
Hong Kong: |
+852-3027-6500 |
Mainland China: |
400-821-0637 |
International: |
+65-6408-5782 |
PIN: |
20100839# |
|
|
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 May 31, 2022:
United States: |
+1-646-982-0473 |
International: |
+65-6408-5781 |
Access code: |
520002349# |
|
|
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 Credit-Tech 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. The
Company’s solutions provide seamless experiences and create
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
RMB6.3393 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 March 31, 2022.
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, |
March 31, |
March 31, |
|
2021 |
2022 |
2022 |
|
RMB |
RMB |
USD |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
6,116,360 |
6,176,429 |
974,308 |
Restricted cash |
2,643,587 |
2,634,684 |
415,611 |
Security deposit prepaid to third-party guarantee companies |
874,886 |
942,749 |
148,715 |
Funds receivable from third party payment service providers |
153,151 |
194,462 |
30,676 |
Accounts receivable and contract assets, net |
3,097,254 |
3,103,366 |
489,544 |
Financial assets receivable, net |
3,806,243 |
3,797,275 |
599,005 |
Amounts due from related parties |
837,324 |
907,767 |
143,197 |
Loans receivable, net |
9,844,481 |
11,213,633 |
1,768,907 |
Prepaid expenses and other assets |
383,937 |
446,632 |
70,454 |
Total current assets |
27,757,223 |
29,416,997 |
4,640,417 |
Non-current assets: |
|
|
|
Accounts receivable and contract assets, net-non current |
223,474 |
231,610 |
36,536 |
Financial assets receivable, net-non current |
597,965 |
612,331 |
96,593 |
Amounts due from related parties |
140,851 |
97,296 |
15,348 |
Loans receivable, net-non current |
2,859,349 |
3,455,822 |
545,143 |
Property and equipment, net |
24,941 |
22,992 |
3,627 |
Land use rights, net |
1,018,908 |
1,013,728 |
159,912 |
Intangible assets |
4,961 |
6,066 |
957 |
Deferred tax assets |
834,717 |
920,706 |
145,238 |
Other non-current assets |
42,606 |
72,169 |
11,384 |
Total non-current assets |
5,747,772 |
6,432,720 |
1,014,738 |
TOTAL ASSETS |
33,504,995 |
35,849,717 |
5,655,155 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Payable to investors of the consolidated trusts-current |
2,304,518 |
2,638,903 |
416,277 |
Accrued expenses and other current liabilities |
2,258,329 |
2,233,599 |
352,342 |
Amounts due to related parties |
214,057 |
171,675 |
27,081 |
Short term loans |
397,576 |
586,461 |
92,512 |
Guarantee liabilities-stand ready |
4,818,144 |
4,738,371 |
747,460 |
Guarantee liabilities-contingent |
3,285,081 |
3,257,577 |
513,870 |
Income tax payable |
624,112 |
697,278 |
109,993 |
Other tax payable |
241,369 |
308,535 |
48,670 |
Total current liabilities |
14,143,186 |
14,632,399 |
2,308,205 |
Non-current liabilities: |
|
|
|
Deferred tax liabilities |
121,426 |
146,244 |
23,069 |
Payable to investors of the consolidated trusts-noncurrent |
4,010,597 |
4,858,799 |
766,457 |
Other long-term liabilities |
13,177 |
32,046 |
5,055 |
Total non-current liabilities |
4,145,200 |
5,037,089 |
794,581 |
TOTAL LIABILITIES |
18,288,386 |
19,669,488 |
3,102,786 |
TOTAL 360 DIGITECH INC EQUITY |
15,203,863 |
16,172,624 |
2,551,169 |
Noncontroling interests |
12,746 |
7,605 |
1,200 |
TOTAL EQUITY |
15,216,609 |
16,180,229 |
2,552,369 |
TOTAL LIABILITIES AND EQUITY |
33,504,995 |
35,849,717 |
5,655,155 |
|
|
|
|
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 March 31, |
|
2021 |
2022 |
2022 |
|
RMB |
RMB |
USD |
Credit driven services |
2,451,343 |
|
2,920,630 |
|
460,717 |
|
Loan facilitation and servicing fees-capital heavy |
724,311 |
|
561,411 |
|
88,560 |
|
Financing income |
409,440 |
|
789,248 |
|
124,501 |
|
Revenue from releasing of guarantee liabilities |
1,295,427 |
|
1,549,968 |
|
244,501 |
|
Other services fees |
22,165 |
|
20,003 |
|
3,155 |
|
Platform services |
1,147,866 |
|
1,399,417 |
|
220,752 |
|
Loan facilitation and servicing fees-capital light |
993,889 |
|
1,098,931 |
|
173,352 |
|
Referral services fees |
126,330 |
|
247,298 |
|
39,010 |
|
Other services fees |
27,647 |
|
53,188 |
|
8,390 |
|
Total net revenue |
3,599,209 |
|
4,320,047 |
|
681,469 |
|
Facilitation, origination and servicing |
477,756 |
|
614,930 |
|
97,003 |
|
Funding costs |
79,078 |
|
103,768 |
|
16,369 |
|
Sales and marketing |
385,009 |
|
552,577 |
|
87,167 |
|
General and administrative |
104,496 |
|
122,258 |
|
19,286 |
|
Provision for loans receivable |
134,908 |
|
491,227 |
|
77,489 |
|
Provision for financial assets receivable |
45,060 |
|
60,514 |
|
9,546 |
|
Provision for accounts receivable and contract assets |
56,433 |
|
53,608 |
|
8,456 |
|
Provision for contingent liabilities |
758,676 |
|
961,896 |
|
151,735 |
|
Total operating costs and expenses |
2,041,416 |
|
2,960,778 |
|
467,051 |
|
Income from operations |
1,557,793 |
|
1,359,269 |
|
214,418 |
|
Interest income, net |
36,384 |
|
24,417 |
|
3,852 |
|
Foreign exchange (loss) gain |
(7,992 |
) |
4,952 |
|
781 |
|
Other income, net |
19,114 |
|
7,048 |
|
1,112 |
|
Investment loss |
- |
|
(4,900 |
) |
(773 |
) |
Income before income tax expense |
1,605,299 |
|
1,390,786 |
|
219,390 |
|
Income taxes expense |
(258,051 |
) |
(216,429 |
) |
(34,141 |
) |
Net income |
1,347,248 |
|
1,174,357 |
|
185,249 |
|
Net loss attributable to noncontrolling interests |
193 |
|
5,141 |
|
811 |
|
Net income attributable to ordinary shareholders of the
Company |
1,347,441 |
|
1,179,498 |
|
186,060 |
|
Net income per ordinary share attributable to ordinary shareholders
of 360 DigiTech, Inc. |
Basic |
4.42 |
|
3.80 |
|
0.60 |
|
Diluted |
4.22 |
|
3.68 |
|
0.58 |
|
|
|
|
|
Net income per ADS attributable to ordinary shareholders of 360
DigiTech, Inc. |
Basic |
8.84 |
|
7.60 |
|
1.20 |
|
Diluted |
8.44 |
|
7.36 |
|
1.16 |
|
|
|
|
|
Weighted average shares used in calculating net income per ordinary
share |
Basic |
304,883,875 |
|
310,597,659 |
|
310,597,659 |
|
Diluted |
319,419,632 |
|
320,913,400 |
|
320,913,400 |
|
|
|
|
|
|
|
|
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 March 31, |
|
2021 |
2022 |
2022 |
|
RMB |
RMB |
USD |
Net cash provided by operating activities |
745,108 |
|
1,419,597 |
|
223,935 |
|
Net cash (used in) investing activities |
(52,158 |
) |
(2,441,645 |
) |
(385,159 |
) |
Net cash provided by financing activities |
789,292 |
|
1,077,034 |
|
169,898 |
|
Effect of foreign exchange rate changes |
(1,436 |
) |
(3,820 |
) |
(603 |
) |
Net increase in cash and cash equivalents |
1,480,806 |
|
51,166 |
|
8,071 |
|
Cash, cash equivalents, and restricted cash, beginning of
period |
6,774,266 |
|
8,759,947 |
|
1,381,848 |
|
Cash, cash equivalents, and restricted cash, end of period |
8,255,072 |
|
8,811,113 |
|
1,389,919 |
|
|
|
|
|
|
|
|
In December 2021, the Company acquired 30%
equity interest of Shanghai 360 Changfeng Technology Co., Ltd.
(“360 Changfeng”). Before the transaction, the Company owns 40%
equity interest of 360 Changfeng and accounted for it as equity
method investment. As such, it consolidated 360 Changfeng's
financial statement into its financial statements after the
transaction. The transaction is between entities under common
control and has been retrospectively reflected in the consolidated
financial statements from the beginning of 2021, but not to prior
year as there is no impact. 360 Changfeng's major transaction in
2021 is to purchase the land use right at the amount of RMB 1
billion in the first quarter which is classified as "net cash used
in operating activities" reflected in the Condensed Consolidated
Statements of Cash Flows for the three months ended March 31, 2021.
The details of the transaction was provided in the Company's press
release furnished to the SEC on form 6-K which dated on December
20, 2021.
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 March 31, |
|
2021 |
2022 |
2022 |
|
RMB |
RMB |
USD |
Net income |
1,347,248 |
|
1,174,357 |
|
185,249 |
|
Other comprehensive income, net of tax of nil: |
|
|
|
|
Foreign currency translation adjustment |
6,221 |
|
(6,259 |
) |
(987 |
) |
Other comprehensive income (loss) |
6,221 |
|
(6,259 |
) |
(987 |
) |
Total comprehensive income |
1,353,469 |
|
1,168,098 |
|
184,262 |
|
Comprehensive loss attributable to noncontrolling interests |
193 |
|
5,141 |
|
811 |
|
Comprehensive income attributable to ordinary
shareholders |
1,353,662 |
|
1,173,239 |
|
185,073 |
|
|
|
|
|
|
|
|
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 December 31, |
|
2021 |
2022 |
2022 |
|
RMB |
RMB |
USD |
Reconciliation of Non-GAAP Net Income to Net
Income |
|
|
|
|
Net income |
1,347,248 |
|
1,174,357 |
|
185,249 |
|
Add: Share-based compensation expenses |
59,546 |
|
52,074 |
|
8,214 |
|
Non-GAAP net income |
1,406,794 |
|
1,226,431 |
|
193,463 |
|
Non-GAAP net income margin |
39.1 |
% |
28.4 |
% |
|
|
GAAP net income margin |
37.4 |
% |
27.2 |
% |
|
|
|
|
|
|
|
Net income attributable to shareholders of 360 DigiTech,
Inc |
1,347,441 |
|
1,179,498 |
|
186,060 |
|
Add: Share-based compensation expenses |
59,546 |
|
52,074 |
|
8,214 |
|
Non-GAAP net income attributable to shareholders of 360
DigiTech, Inc |
1,406,987 |
|
1,231,572 |
|
194,274 |
|
Weighted average ADS used in calculating net income per ordinary
share for both GAAP and non-GAAP EPS -diluted |
159,709,816 |
|
160,456,700 |
|
160,456,700 |
|
Net income per ADS attributable to ordinary shareholders of 360
DigiTech, Inc. -diluted |
8.44 |
|
7.36 |
|
1.16 |
|
Non-GAAP net income per ADS attributable to ordinary shareholders
of 360 DigiTech, Inc. -diluted |
8.81 |
|
7.68 |
|
1.21 |
|
|
|
|
|
|
Reconciliation of Non-GAAP Income from operations to Income
from operations |
|
|
|
|
Income from operations |
1,557,793 |
|
1,359,269 |
|
214,418 |
|
Add: Share-based compensation expenses |
59,546 |
|
52,074 |
|
8,214 |
|
Non-GAAP Income from operations |
1,617,339 |
|
1,411,343 |
|
222,632 |
|
Non-GAAP operating margin |
44.9 |
% |
32.7 |
% |
|
|
GAAP operating margin |
43.3 |
% |
31.5 |
% |
|
|
|
|
|
|
|
|
|
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