360 DigiTech, Inc. (QFIN) (“360 DigiTech” or the “Company”), a
leading Credit-Tech platform in China, today announced its
unaudited financial results for the second quarter ended June 30,
2022.
Second Quarter 2022 Business
Highlights
- As of June 30, 2022, our platform
has connected 133 financial institutional partners and 197.9
million consumers*1 with potential credit needs, cumulatively, an
increase of 12.5% from 175.9 million a year ago.
- Cumulative users with approved
credit lines*2 were 41.3 million as of June 30, 2022, an increase
of 19.0% from 34.7 million as of June 30, 2021.
- Cumulative borrowers with
successful drawdown, including repeat borrowers was 25.6 million as
of June 30, 2022, an increase of 14.8% from 22.3 million as of June
30, 2021.
- In the second quarter of 2022,
financial institutional partners originated 14,078,969 loans*3
through our platform. Total facilitation and origination loan
volume reached RMB98,281 million*4, an increase of 11.1% from
RMB88,452 million in the same period of 2021.
- Out of those loans originated by
financial institutions, RMB54,784 million was under capital-light
model, Intelligence Credit Engine (“ICE”) and other technology
solutions*5, representing 55.7% of the total, an increase of 10.4%
from RMB49,638 million in the same period of 2021.
- Total outstanding loan balance*6
was RMB150,490 million as of June 30, 2022, an increase of 28.0%
from RMB117,559 million as of June 30, 2021.
- RMB82,580 million of such loan
balance was under capital-light model, “ICE” and other technology
solutions*7, an increase of 41.9% from RMB58,187 million as of June
30, 2021.
- Financial institutions granted
approximately RMB4.9 billion credit lines to small and micro-sized
enterprises and their owners (collectively, SMEs)*8 through our
platform in the second quarter of 2022.
- The weighted average contractual
tenor of loans originated by financial institutions across our
platform in the second quarter of 2022 was approximately 12.06
months, compared with 10.66 months in the same period of 2021.
- 90 day+ delinquency rate*9 of loans
originated by financial institutions across our platform was 2.62%
as of June 30, 2022.
- Repeat borrower contribution*10 of
loans originated by financial institutions across our platform for
the second quarter of 2022 was 88.4%.
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 5,100,153 loans across “V-pocket”, and 8,978,816 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. 5 “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 does not bear principal
risk. Loan facilitation volume through “ICE” was RMB5,523 million
in the second quarter of 2022.Under other technology solutions, we
offer financial institutions on-premise deployed, modular risk
management SaaS, which helps financial institution partners improve
credit assessment results. Loan facilitation volume through other
technology solutions was RMB 19,554 million in the second quarter
of 2022.6 “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.7 Outstanding loan balance for “ICE” and
other technology solutions were RMB9,600 million and RMB18,827
million, respectively, as of June 30, 2022.8 SME loans are loans
issued to SMEs with e-commerce operations, with business sales
receipt, and/or with business taxation record.9 “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.10 “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 2022 Financial
Highlights
- Total net revenue increased by 4.5%
to RMB4,183.2 million (US$624.5 million) from RMB4,001.6 million in
the same period of 2021.
- Income from operations was
RMB1,010.8 million (US$150.9 million), compared to RMB1,853.1
million in the same period of 2021.
- Non-GAAP*11 income from operations
was RMB1,057.5 million (US$157.9 million), compared to RMB1,920.4
million in the same period of 2021.
- Operating margin was 24.2%.
Non-GAAP operating margin was 25.3%.
- Net income was RMB975.0 million
(US$145.6 million), compared to RMB1,547.9 million in the same
period of 2021.
- Non-GAAP net income was RMB1,021.7
million (US$152.5 million), compared to RMB1,615.2 million in the
same period of 2021.
- Net income attributed to the
Company was RMB979.8 million (US$146.3 million), compared to
RMB1,547.6 million in the same period of 2021.
- Net income margin was 23.3%.
Non-GAAP net income margin was 24.4%.
11 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, “Despite experiencing very
challenging macro environment and prolonged lockdowns and travel
restrictions in Shanghai and other regions of China to counter the
spread of COVID-19, we managed to deliver another solid quarter
during which we achieved our key operational and financial targets.
In the second quarter, total facilitation and origination volume
was RMB98.3 billion, up approximately 11% year-on-year.
Approximately 56% of the loans was facilitated under the
capital-light model, ICE and other technology solutions*12, which
enabled us to mitigate some near term risks as we continued to
pursue long term sustainable technology driven business models.
During the quarter, we continued our efforts to
optimize our user base to lower overall credit risks and higher
user retention. Such efforts not only enabled us to drive better
risk performance in an otherwise challenging environment, but also
allowed us to further lowered our product pricing during this
quarter. Average IRR of the loans originated and facilitated
through our platform was well below 24% in the second quarter, and
we are in compliance with the rate cap requirement. In the second
quarter, with ample supply of liquidity in the financial system, we
continued to expand our partnership with larger financial
institutions with national operations, and further lowered overall
funding costs.
On the regulatory front, as one of the leading
Credit-Tech platforms, we have worked diligently to implement
necessary rectification to our operations and achieved key
milestones in accordance with regulatory guidance and timelines. We
note regulators’ recent comments regarding gradually shifting focus
from rectification to regular supervision in many aspects of
platform operations and we are also encouraged to see continued
supportive statements for platform economy by various
regulators.”
“We are pleased to report another quarter of
solid financial results in a challenging macro environment. Total
revenue was RMB4.18 billion and non-GAAP net income was RMB1.02
billion,” Mr. Alex Xu, Chief Financial Officer, commented. “During
the quarter, we have smoothly navigated through the peak of the
resurgence of COVID-19 and economic headwinds. Although we started
to see modest recovery in consumer credit after lockdown measures
were lifted in certain regions of China, we plan to continue to
take a prudent approach to manage our business growth and risks. At
the end of the second quarter, our total cash and cash
equivalent*13 was approximately RMB11.4 billion, of which
approximately RMB7.0 billion was non-restricted, further
strengthening our financial positions to deal with near term
economic challenges.”
Mr. Yan Zheng, Chief Risk Officer, added,
“Second quarter presented unique challenges to risk management. On
the one hand, lockdown measures related to COVID-19 hampered our
collection operations in certain regions of China, which resulted
in lower 30-day collection rates*14 early in the quarter. Following
the easing of lockdown and other travel restrictions in June,
30-day collection rates recovered noticeably. Overall 30-day
collection rates for the second quarter remained stable at around
86% sequentially. On the other hand, as we optimized our risk model
and brought in more high quality users, overall risk profile of our
borrowers continued to improve. Day-1 delinquency*15 further
improved to 4.9% from 5.2% quarter-on-quarter, a historic low.
Overall, under current economic conditions, we expect to see
continued improvement in asset quality for the remainder of the
year primarily due to our further penetration into better user
segments.”
12 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. Revenues from these technology powered
services accounted for 43% of our total net revenue for the second
quarter 2022. 13 Including “Cash and cash equivalents”, “Restricted
cash”, and “Security deposit prepaid to third-party guarantee
companies”.14 “30 day 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.15 “Day-1 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.
Second Quarter 2022 Financial
Results
Total net revenue was
RMB4,183.2 million (US$624.5 million), compared to RMB4,001.6
million in the same period of 2021, and RMB4,320.0 million in the
prior quarter.
Net revenue from Credit Driven
Services was RMB2,947.8 million (US$440.1 million),
compared to RMB2,404.7 million in the same period of 2021, and
RMB2,920.6 million in the prior quarter.
Loan facilitation and servicing fees-capital
heavy were RMB580.4 million (US$86.6 million), compared to RMB540.7
million in the same period of 2021 and RMB561.4 million in the
prior quarter. The year-over-year and sequential increases were
primarily due to higher average tenor of the loans.
Financing
income*16 was RMB819.6 million
(US$122.4 million), compared to RMB488.1 million in the same period
of 2021 and RMB789.2 million in the prior quarter. The
year-over-year and sequential increases were primarily due to the
growth in average outstanding on-balance-sheet loan balance.
Revenue from releasing of guarantee liabilities
was RMB1,524.5 million (US$227.6 million), compared to RMB1,352.3
million in the same period of 2021, and RMB1,550.0 million in the
prior quarter. The year-over-year and sequential changes mainly
reflected changes in average outstanding balance of
off-balance-sheet capital-heavy loans during the period.
Other services fees were RMB23.3 million (US$3.5
million), compared to RMB23.6 million in the same period of 2021,
and RMB20.0 million in the prior quarter. The year-over-year and
sequential changes reflected the changes in late payment fees under
capital-heavy model.
Net revenue from Platform
Services was RMB1,235.4 million (US$184.4 million),
compared to RMB1,596.9 million in the same period of 2021 and
RMB1,399.4 million in the prior quarter.
Loan facilitation and servicing fees-capital
light were RMB1,030.0 million (US$153.8 million), compared to
RMB1,398.7 million in the same period of 2021 and RMB1,098.9
million in the prior quarter. The year-over-year decline was
primarily due to lower loan facilitation volume and lower average
prices under capital-light model, the sequential decline was mainly
due to lower average prices.
Referral services fees were RMB135.4 million
(US$20.2 million), compared to RMB160.3 million in the same period
of 2021 and RMB247.3 million in the prior quarter. The
year-over-year decline was primarily due to decline in traffic from
referral services, and partially offset by increase in ICE related
fees. The sequential decline was primarily due to the decrease in
loan facilitation volume through ICE.
Other services fees were RMB70.1 million
(US$10.5 million), compared to RMB37.9 million in the same period
of 2021 and RMB53.2 million in the prior quarter. The
year-over-year and sequential growth mainly reflected the growth in
fees from other technology solutions.
Total operating costs and
expenses were RMB3,172.4 million (US$473.6 million),
compared to RMB2,148.4 million in the same period of 2021 and
RMB2,960.8 million in the prior quarter.
Facilitation, origination and servicing expenses
were RMB555.6 million (US$83.0 million), compared to RMB558.0
million in the same period of 2021 and RMB614.9 million in the
prior quarter. The year-over-year and sequential decreases were in
part due to improvement in operational efficiency.
Funding costs were RMB123.9 million (US$18.5
million), compared to RMB83.2 million in the same period of 2021
and RMB103.8 million in the prior quarter. The year-over-year and
sequential increases were mainly due to the growth in funding from
ABS and trusts.
Sales and marketing expenses were RMB615.1
million (US$91.8 million), compared to RMB499.9 million in the same
period of 2021 and RMB552.6 million in the prior quarter. The
year-over-year and sequential increases were mainly due to a more
proactive customer acquisition strategy focusing on higher quality
users.
General and administrative expenses were RMB93.9
million (US$14.0 million), compared to RMB139.3 million in the same
period of 2021 and RMB122.3 million in the prior quarter. The
year-over-year and sequential declines was due to lower
professional service fees and our continued effort to improve
operational efficiency.
Provision for loans receivable was RMB416.1
million (US$62.1 million), compared to RMB247.0 million in the same
period of 2021 and RMB491.2 million in the prior quarter. The
year-over-year increase was mainly due to growth in on-balance
sheet loans. The sequential decrease was mainly due to a slight
decline in on-balance sheet loans.
Provision for financial assets receivable was
RMB103.7 million (US$15.5 million), compared to RMB58.5 million in
the same period of 2021 and RMB60.5 million in the prior quarter.
The year-over-year and sequential changes reflected the Company’s
consistent approach in assessing provisions commensurate with its
underlying loan profile.
Provision for accounts receivable and contract
assets was RMB63.4 million (US$9.5 million), compared to RMB100.7
million in the same period of 2021 and RMB53.6 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
RMB1,200.7 million (US$179.3 million), compared to RMB461.9 million
in the same period of 2021 and RMB961.9 million in the prior
quarter. The year-over-year and sequential changes reflected the
Company’s consistent approach in assessing provisions commensurate
with its underlying loan profile.
Income from operations was
RMB1,010.8 million (US$150.9 million), compared to RMB1,853.1
million in the same period of 2021 and RMB1,359.3 million in the
prior quarter.
Non-GAAP income from operations
was RMB1,057.5 million (US$157.9 million), compared to RMB1,920.4
million in the same period of 2021 and RMB1,411.3 million in the
prior quarter.
Operating margin was 24.2%.
Non-GAAP operating margin was 25.3%.
Income before income tax
expense was RMB1,155.3 million (US$172.5 million),
compared to RMB1,953.2 million in the same period of 2021 and
RMB1,390.8 million in the prior quarter.
Net income attributed to the
Company was RMB979.8 million (US$146.3 million), compared
to RMB1,547.6 million in the same period of 2021 and RMB1,179.5
million in the prior quarter.
Non-GAAP net income
attributed to the Company was RMB1,026.6 million
(US$153.3 million), compared to RMB1,614.9 million in the same
period of 2021 and RMB1,231.6 million in the prior quarter.
Net income margin was 23.3%.
Non-GAAP net income margin was 24.4%.
Net income per fully diluted
ADS was RMB6.12 (US$0.92).
Non-GAAP net income per fully diluted
ADS was RMB6.42 (US$0.96).
Weighted average basic ADS used in
calculating GAAP and non-GAAP net income per ADS was
155.81 million.
Weighted average diluted ADS used in
calculating GAAP and non-GAAP net income per ADS was
159.94 million.
16 “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.
30 Day+ Delinquency Rate by Vintage and
180 Day+ Delinquency Rate by Vintage
The following charts and tables display the
historical cumulative 30 day+ delinquency rates by loan
facilitation and origination vintage and 180 day+ delinquency rates
by loan facilitation and origination vintage for all loans
facilitated and originated through the Company’s platform. Loans
under “ICE” and other technology solutions are not included in the
30 day+ charts and the 180 day+ charts:
http://ml.globenewswire.com/Resource/Download/eca7dc86-f93a-426e-bd97-1405b87958ff
http://ml.globenewswire.com/Resource/Download/92402b65-c80e-46f3-9ffe-a5ebce9e7697
Quarterly Dividend
The board of directors of the Company has
approved a dividend of US$0.09 per ordinary share, or US$0.18 per
ADS, for the second fiscal quarter of 2022 in accordance with the
Company’s dividend policy, which is expected to be paid on October
28, 2022 to shareholders of record as of the close of business on
September 16, 2022.
Business Outlook
Given the current macro economic conditions, the
Company expects to continue to take a prudent approach in its
business planning. As such 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 Thursday,
August 18, 2022 (8:30 AM Beijing Time on Friday, August 19).
United States: |
+1-646-722-4977 |
Hong Kong: |
+852-3027-6500 |
Mainland China: |
400-821-0637 |
International: |
+65-6408-5782 |
PIN: |
22390058# |
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 25,
2022:
United States: |
+1-646-982-0473 |
International: |
+65-6408-5781 |
Access code: |
520003785# |
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
RMB6.6981 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, 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 DigiTechE-mail: ir@360shuke.com
Christensen
In ChinaMr. Eric YuanPhone: +86-138-0111-0739E-mail:
Eyuan@christensenir.com
In USMs. 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, |
|
June 30, |
|
June 30, |
|
2021 |
|
2022 |
|
2022 |
|
RMB |
|
RMB |
|
USD |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and
cash equivalents |
6,116,360 |
|
6,965,238 |
|
1,039,883 |
Restricted
cash |
2,643,587 |
|
3,764,988 |
|
562,098 |
Security
deposit prepaid to third-party guarantee companies |
874,886 |
|
698,478 |
|
104,280 |
Funds
receivable from third party payment service providers |
153,151 |
|
312,447 |
|
46,647 |
Accounts
receivable and contract assets, net |
3,097,254 |
|
3,499,385 |
|
522,444 |
Financial
assets receivable, net |
3,806,243 |
|
3,618,560 |
|
540,237 |
Amounts due
from related parties |
837,324 |
|
733,386 |
|
109,492 |
Loans
receivable, net |
9,844,481 |
|
10,850,458 |
|
1,619,931 |
Prepaid
expenses and other assets |
383,937 |
|
364,908 |
|
54,479 |
Total current assets |
27,757,223 |
|
30,807,848 |
|
4,599,491 |
Non-current assets: |
|
|
|
|
|
Accounts
receivable and contract assets, net-non current |
223,474 |
|
291,908 |
|
43,581 |
Financial
assets receivable, net-non current |
597,965 |
|
683,078 |
|
101,981 |
Amounts due
from related parties |
140,851 |
|
55,136 |
|
8,231 |
Loans
receivable, net-non current |
2,859,349 |
|
3,657,879 |
|
546,107 |
Property and
equipment, net |
24,941 |
|
20,487 |
|
3,059 |
Land use
rights,net |
1,018,908 |
|
1,008,548 |
|
150,572 |
Intangible
assets |
4,961 |
|
5,231 |
|
781 |
Deferred tax
assets |
834,717 |
|
1,059,963 |
|
158,248 |
Other
non-current assets |
42,606 |
|
76,030 |
|
11,351 |
Total non-current assets |
5,747,772 |
|
6,858,260 |
|
1,023,911 |
TOTAL ASSETS |
33,504,995 |
|
37,666,108 |
|
5,623,402 |
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Payable to
investors of the consolidated trusts-current |
2,304,518 |
|
5,224,973 |
|
780,068 |
Accrued
expenses and other current liabilities |
2,258,329 |
|
2,117,357 |
|
316,113 |
Amounts due
to related parties |
214,057 |
|
178,687 |
|
26,677 |
Short term
loans |
397,576 |
|
611,164 |
|
91,244 |
Guarantee
liabilities-stand ready |
4,818,144 |
|
4,538,963 |
|
677,649 |
Guarantee
liabilities-contingent |
3,285,081 |
|
3,320,414 |
|
495,725 |
Income tax
payable |
624,112 |
|
654,347 |
|
97,691 |
Other tax
payable |
241,369 |
|
177,611 |
|
26,517 |
Total current liabilities |
14,143,186 |
|
16,823,516 |
|
2,511,684 |
Non-current liabilities: |
|
|
|
|
|
Deferred tax
liabilities |
121,426 |
|
173,777 |
|
25,944 |
Payable to
investors of the consolidated trusts-noncurrent |
4,010,597 |
|
3,613,690 |
|
539,510 |
Other
long-term liabilities |
13,177 |
|
34,147 |
|
5,099 |
Total non-current liabilities |
4,145,200 |
|
3,821,614 |
|
570,553 |
TOTAL LIABILITIES |
18,288,386 |
|
20,645,130 |
|
3,082,237 |
TOTAL 360 DIGITECH INC EQUITY |
15,203,863 |
|
17,018,256 |
|
2,540,759 |
Noncontroling interests |
12,746 |
|
2,722 |
|
406 |
TOTAL EQUITY |
15,216,609 |
|
17,020,978 |
|
2,541,165 |
TOTAL LIABILITIES AND EQUITY |
33,504,995 |
|
37,666,108 |
|
5,623,402 |
|
|
|
|
|
|
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, |
|
2021 |
|
2022 |
|
2022 |
|
|
2021 |
|
2022 |
|
2022 |
|
|
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
Credit driven services |
2,404,695 |
|
2,947,767 |
|
440,090 |
|
|
4,856,038 |
|
5,868,397 |
|
876,129 |
|
Loan facilitation and servicing fees-capital heavy |
540,737 |
|
580,360 |
|
86,645 |
|
|
1,265,047 |
|
1,141,771 |
|
170,462 |
|
Financing income |
488,088 |
|
819,572 |
|
122,359 |
|
|
897,528 |
|
1,608,820 |
|
240,191 |
|
Revenue from releasing of guarantee liabilities |
1,352,307 |
|
1,524,547 |
|
227,609 |
|
|
2,647,734 |
|
3,074,515 |
|
459,013 |
|
Other services fees |
23,563 |
|
23,288 |
|
3,477 |
|
|
45,729 |
|
43,291 |
|
6,463 |
|
Platform services |
1,596,863 |
|
1,235,432 |
|
184,446 |
|
|
2,744,729 |
|
2,634,849 |
|
393,373 |
|
Loan facilitation and servicing fees-capital light |
1,398,713 |
|
1,030,024 |
|
153,779 |
|
|
2,392,602 |
|
2,128,955 |
|
317,845 |
|
Referral services fees |
160,264 |
|
135,352 |
|
20,208 |
|
|
286,594 |
|
382,650 |
|
57,128 |
|
Other services fees |
37,886 |
|
70,056 |
|
10,459 |
|
|
65,533 |
|
123,244 |
|
18,400 |
|
Total net revenue |
4,001,558 |
|
4,183,199 |
|
624,536 |
|
|
7,600,767 |
|
8,503,246 |
|
1,269,502 |
|
Facilitation, origination and servicing |
557,979 |
|
555,631 |
|
82,954 |
|
|
1,035,735 |
|
1,170,561 |
|
174,760 |
|
Funding costs |
83,164 |
|
123,862 |
|
18,492 |
|
|
162,242 |
|
227,630 |
|
33,984 |
|
Sales and marketing |
499,937 |
|
615,080 |
|
91,829 |
|
|
884,946 |
|
1,167,657 |
|
174,327 |
|
General and administrative |
139,278 |
|
93,890 |
|
14,017 |
|
|
243,774 |
|
216,148 |
|
32,270 |
|
Provision for loans receivable |
246,979 |
|
416,090 |
|
62,121 |
|
|
381,887 |
|
907,317 |
|
135,459 |
|
Provision for financial assets receivable |
58,516 |
|
103,703 |
|
15,482 |
|
|
103,576 |
|
164,217 |
|
24,517 |
|
Provision for accounts receivable and contract assets |
100,684 |
|
63,417 |
|
9,468 |
|
|
157,116 |
|
117,025 |
|
17,471 |
|
Provision for contingent liabilities |
461,910 |
|
1,200,742 |
|
179,266 |
|
|
1,220,586 |
|
2,162,638 |
|
322,873 |
|
Total operating costs and expenses |
2,148,447 |
|
3,172,415 |
|
473,629 |
|
|
4,189,862 |
|
6,133,193 |
|
915,661 |
|
Income from operations |
1,853,111 |
|
1,010,784 |
|
150,907 |
|
|
3,410,905 |
|
2,370,053 |
|
353,841 |
|
Interest income, net |
46,491 |
|
43,771 |
|
6,535 |
|
|
82,875 |
|
68,188 |
|
10,180 |
|
Foreign exchange gain (loss) |
21,886 |
|
(91,610 |
) |
(13,677 |
) |
|
13,895 |
|
(86,658 |
) |
(12,938 |
) |
Other income, net |
31,697 |
|
196,410 |
|
29,323 |
|
|
50,811 |
|
203,458 |
|
30,375 |
|
Investment loss |
- |
|
(4,096 |
) |
(612 |
) |
|
- |
|
(8,996 |
) |
(1,343 |
) |
Income before income tax expense |
1,953,185 |
|
1,155,259 |
|
172,476 |
|
|
3,558,486 |
|
2,546,045 |
|
380,115 |
|
Income taxes expense |
(405,305 |
) |
(180,303 |
) |
(26,919 |
) |
|
(663,357 |
) |
(396,732 |
) |
(59,231 |
) |
Net income |
1,547,880 |
|
974,956 |
|
145,557 |
|
|
2,895,129 |
|
2,149,313 |
|
320,884 |
|
Net (income) loss attributable to noncontrolling interests |
(235 |
) |
4,883 |
|
729 |
|
|
(42 |
) |
10,024 |
|
1,497 |
|
Net income attributable to ordinary shareholders of the
Company |
1,547,645 |
|
979,839 |
|
146,286 |
|
|
2,895,087 |
|
2,159,337 |
|
322,381 |
|
Net income per ordinary share attributable to ordinary shareholders
of 360 DigiTech, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
5.04 |
|
3.14 |
|
0.47 |
|
|
9.46 |
|
6.94 |
|
1.04 |
|
Diluted |
4.81 |
|
3.06 |
|
0.46 |
|
|
9.02 |
|
6.74 |
|
1.01 |
|
|
|
|
|
|
|
|
|
Net income per ADS attributable to ordinary shareholders of 360
DigiTech, Inc. |
|
|
|
|
|
|
|
Basic |
10.08 |
|
6.28 |
|
0.94 |
|
|
18.92 |
|
13.88 |
|
2.08 |
|
Diluted |
9.62 |
|
6.12 |
|
0.92 |
|
|
18.04 |
|
13.48 |
|
2.02 |
|
|
|
|
|
|
|
|
|
Weighted average shares used in calculating net income per ordinary
share |
|
|
|
|
|
|
|
Basic |
306,879,800 |
|
311,615,233 |
|
311,615,233 |
|
|
305,886,883 |
|
311,109,257 |
|
311,109,257 |
|
Diluted |
321,969,767 |
|
319,874,351 |
|
319,874,351 |
|
|
320,958,192 |
|
320,251,194 |
|
320,251,194 |
|
|
|
|
|
|
|
|
|
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, |
|
2021 |
|
2022 |
|
2022 |
|
|
2021 |
|
2022 |
|
2022 |
|
|
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
Net cash provided by operating activities |
1,256,531 |
|
1,118,314 |
|
166,960 |
|
|
2,001,639 |
|
2,537,911 |
|
378,900 |
|
Net cash (used in) investing activities |
(2,235,840 |
) |
(252,787 |
) |
(37,740 |
) |
|
(2,287,998 |
) |
(2,694,432 |
) |
(402,267 |
) |
Net cash provided by financing activities |
562,253 |
|
1,052,143 |
|
157,081 |
|
|
1,351,545 |
|
2,129,177 |
|
317,877 |
|
Effect of foreign exchange rate changes |
(1,316 |
) |
1,443 |
|
215 |
|
|
(2,752 |
) |
(2,377 |
) |
(355 |
) |
Net (decrease) increase in cash and cash equivalents |
(418,372 |
) |
1,919,113 |
|
286,516 |
|
|
1,062,434 |
|
1,970,279 |
|
294,155 |
|
Cash, cash equivalents, and restricted cash, beginning of
period |
8,255,072 |
|
8,811,113 |
|
1,315,465 |
|
|
6,774,266 |
|
8,759,947 |
|
1,307,826 |
|
Cash, cash equivalents, and restricted cash, end of period |
7,836,700 |
|
10,730,226 |
|
1,601,981 |
|
|
7,836,700 |
|
10,730,226 |
|
1,601,981 |
|
|
|
|
|
|
|
|
|
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 half year which
is classified as "net cash used in operating activities" reflected
in the Condensed Consolidated Statements of Cash Flows for the six
months ended June 30, 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 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, |
|
|
2021 |
|
2022 |
|
2022 |
|
|
RMB |
RMB |
|
USD |
Net income |
|
1,547,880 |
|
974,956 |
|
145,557 |
Other comprehensive income, net of tax of nil: |
|
|
|
|
|
Foreign currency translation adjustment |
|
(22,013 |
) |
49,579 |
|
7,402 |
Other comprehensive (loss) income |
|
(22,013 |
) |
49,579 |
|
7,402 |
Total comprehensive income |
|
1,525,867 |
|
1,024,535 |
|
152,959 |
Comprehensive (income) loss attributable to noncontrolling
interests |
|
(235 |
) |
4,883 |
|
729 |
Comprehensive income attributable to ordinary
shareholders |
|
1,525,632 |
|
1,029,418 |
|
153,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
2021 |
|
2022 |
|
2022 |
|
|
RMB |
RMB |
|
USD |
Net income |
|
2,895,129 |
|
2,149,313 |
|
320,884 |
Other comprehensive income, net of tax of nil: |
|
|
|
|
|
Foreign currency translation adjustment |
|
(15,792 |
) |
43,320 |
|
6,468 |
Other comprehensive (loss) income |
|
(15,792 |
) |
43,320 |
|
6,468 |
Total comprehensive income |
|
2,879,337 |
|
2,192,633 |
|
327,352 |
Comprehensive (income) loss attributable to noncontrolling
interests |
|
(42 |
) |
10,024 |
|
1,497 |
Comprehensive income attributable to ordinary
shareholders |
|
2,879,295 |
|
2,202,657 |
|
328,849 |
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, |
|
|
2021 |
|
2022 |
|
2022 |
|
|
RMB |
RMB |
USD |
Reconciliation of Non-GAAP Net Income to Net
Income |
|
|
|
|
Net
income |
|
1,547,880 |
|
974,956 |
|
145,557 |
Add:
Share-based compensation expenses |
|
67,285 |
|
46,759 |
|
6,981 |
Non-GAAP net income |
|
1,615,165 |
|
1,021,715 |
|
152,538 |
GAAP net
income margin |
|
38.7 |
% |
23.3 |
% |
|
Non-GAAP net
income margin |
|
40.4 |
% |
24.4 |
% |
|
|
|
|
|
|
Net
income attributable to shareholders of 360 DigiTech,
Inc |
|
1,547,645 |
|
979,839 |
|
146,286 |
Add:
Share-based compensation expenses |
|
67,285 |
|
46,759 |
|
6,981 |
Non-GAAP net income attributable to shareholders of 360
DigiTech, Inc |
|
1,614,930 |
|
1,026,598 |
|
153,267 |
Weighted
average ADS used in calculating net income per ordinary share for
both GAAP and non-GAAP EPS -diluted |
|
160,984,884 |
|
159,937,176 |
|
159,937,176 |
Net income
per ADS attributable to ordinary shareholders of 360 DigiTech, Inc.
-diluted |
|
9.62 |
|
6.12 |
|
0.92 |
Non-GAAP net
income per ADS attributable to ordinary shareholders of 360
DigiTech, Inc. -diluted |
|
10.03 |
|
6.42 |
|
0.96 |
|
|
|
|
|
Reconciliation of Non-GAAP Income from operations to Income
from operations |
|
|
|
|
Income from
operations |
|
1,853,111 |
|
1,010,784 |
|
150,907 |
Add:
Share-based compensation expenses |
|
67,285 |
|
46,759 |
|
6,981 |
Non-GAAP Income from operations |
|
1,920,396 |
|
1,057,543 |
|
157,888 |
GAAP
operating margin |
|
46.3 |
% |
24.2 |
% |
|
Non-GAAP
operating margin |
|
48.0 |
% |
25.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
2021 |
|
2022 |
|
2022 |
|
|
RMB |
RMB |
USD |
Reconciliation of Non-GAAP Net Income to Net
Income |
|
|
|
|
Net
income |
|
2,895,129 |
|
2,149,313 |
|
320,884 |
Add:
Share-based compensation expenses |
|
126,831 |
|
98,833 |
|
14,755 |
Non-GAAP net income |
|
3,021,960 |
|
2,248,146 |
|
335,639 |
GAAP net
income margin |
|
38.1 |
% |
25.3 |
% |
|
Non-GAAP net
income margin |
|
39.8 |
% |
26.4 |
% |
|
|
|
|
|
|
Net
income attributable to shareholders of 360 DigiTech,
Inc |
|
2,895,087 |
|
2,159,337 |
|
322,381 |
Add:
Share-based compensation expenses |
|
126,831 |
|
98,833 |
|
14,755 |
Non-GAAP net income attributable to shareholders of 360
DigiTech, Inc |
|
3,021,918 |
|
2,258,170 |
|
337,136 |
Weighted
average ADS used in calculating net income per ordinary share for
both GAAP and non-GAAP EPS -diluted |
|
160,479,096 |
|
160,125,597 |
|
160,125,597 |
Net income
per ADS attributable to ordinary shareholders of 360 DigiTech, Inc.
-diluted |
|
18.04 |
|
13.48 |
|
2.02 |
Non-GAAP net
income per ADS attributable to ordinary shareholders of 360
DigiTech, Inc. -diluted |
|
18.83 |
|
14.10 |
|
2.11 |
|
|
|
|
|
Reconciliation of Non-GAAP Income from operations to Income
from operations |
|
|
|
|
Income from
operations |
|
3,410,905 |
|
2,370,053 |
|
353,841 |
Add:
Share-based compensation expenses |
|
126,831 |
|
98,833 |
|
14,755 |
Non-GAAP Income from operations |
|
3,537,736 |
|
2,468,886 |
|
368,596 |
GAAP
operating margin |
|
44.9 |
% |
27.9 |
% |
|
Non-GAAP
operating margin |
|
46.5 |
% |
29.0 |
% |
|
|
|
|
|
|
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