360 Finance, Inc. (QFIN) (“360 Finance” or the “Company”), a data
driven, technology empowered digital platform, today announced its
unaudited financial results for the second quarter ended June 30,
2020.
Second Quarter Operational
Highlights
- Total loan origination volume*1 was
RMB58,905 million, representing an increase of 21.8% from RMB48,378
million in the same period of 2019. Loan origination volume under
capital-light model within Platform Services was RMB14,616 million,
an increase of 282.3% from RMB3,823 million in the same period of
2019.
- Total outstanding loan balance*2
was RMB78,480 million as of June 30, 2020, an increase of 28.0%
from RMB61,289 million as of June 30, 2019. Outstanding loan
balance under capital-light model within Platform Services was
RMB18,840 million as of June 30, 2020, an increase of 438.9% from
RMB3,496 million as of June 30, 2019.
- The weighted average tenor of
loans*3 originated in the second quarter of 2020 was approximately
8.54 months, compared with 7.76 months in the same period of 2019,
and 8.18 months in the first quarter of 2020.
- Cumulative registered users was
148.98 million, an increase of 36.3% from 109.28 million as of June
30, 2019, and an increase of 5.2% from 141.63 million as of March
31, 2020.
- Users with approved credit lines*4
was 27.71 million as of June 30, 2020, an increase of 44.1% from
19.23 million as of June 30, 2019, and an increase of 6.1% from
26.11 million as of March 31, 2020.
- Cumulative borrowers with
successful drawdown, including repeat borrowers was 17.77 million
as of June 30, 2020, an increase of 41.7% from 12.54 million as of
June 30, 2019, and an increase of 5.7% from 16.81 million as of
March 31, 2020.
- 90 day+ delinquency ratio*5 was 2.82% as of June 30, 2020.
- The percentage of funding from
financial institutions*6 in the second quarter of 2020 was
98%.
- Repeat borrower contribution*7 was 86.4%.
(1) “Total loan origination volume” refers to
the total principal amount of loans originated through the
Company’s platform during the given period, including loans volume
originated through Intelligence Credit Engine (“ICE”). “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 originated through “ICE”, the Company do not
provide post-loan risk management nor bear principal risk. (2)
“Total outstanding loan balance” refers to the total amount of
principal outstanding for loans originated through the Company’s
platform at the end of each period, including loan balance for
“ICE”, excluding loans delinquent for more than 180 days.(3) For
loan facilitated in the second quarter of 2020 and first quarter of
2020, we use the actual term for extinguished loans and use the
contractual term for outstanding loans to calculate the weighted
average tenor.(4) “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.(5) “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 on our platform as of a specific date. Loans that are
charged-off and loans under “ICE” are not included in the
delinquency rate calculation.(6) “The percentage of funding from
financial institutions” is based on cumulative loan origination
during the given period.(7) “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 origination
volume through our platform during that period.
Second Quarter 2020 Financial
Highlights
- Total net revenue increased by
50.0% to RMB3,340.1 million (US$472.8 million) from RMB2,226.9
million in the same period of 2019.
- Income from operations increased by
19.7% to RMB993.2 million (US$140.6 million) from RMB829.6 million
in the same period of 2019.
- Non-GAAP*8 income from operations
increased by 17.2% to RMB1,058.9 million (US$149.9 million) from
RMB903.2 million in the same period of 2019.
- Operating margin was 29.7%. Non-GAAP operating margin was
31.7%.
- Net income increased by 41.8% to
RMB876.5 million (US$124.1 million) from RMB618.2 million in the
same period of 2019.
- Non-GAAP net income increased by
36.2% to RMB942.1 million (US$133.4 million) from RMB691.7 million
in the same period of 2019.
- Net income margin was 26.2%.
Non-GAAP net income margin was 28.2%.
(8) Non-GAAP income from operations (Adjusted
Income from operations) and Non-GAAP net income (Adjusted net
income) 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 Finance, commented, “We are very excited to report
a series of record breaking financial and operational metrics for
the second quarter of 2020 despite the still challenging macro
environment. Loan origination volume reached a record RMB58.9
billion, an increase of 22% year-on-year. More importantly, over
25% of the loan origination was under the capital-light model and
other technology solutions*9, for which we bear no or limited
principal risk. The continued progress in the capital-light model
is consistent with our long-term strategy to build a data driven,
technology empowered digital platform. To better reflect such
long-term strategy, we recently announced a proposed change of our
corporate legal name to 360 DigiTech from 360 Finance, pending
shareholders’ approval.
The first half of 2020 was an extraordinary
period of time for us and the industry. With our effective risk
management and solid overall execution, we not only navigated
through the extreme market condition induced by COVID-19 with
strong performance, but also thrived in the market recovery
thereafter and further solidified our leadership position in the
industry. We have seen both customer demand and asset quality
return to pre-pandemic levels at the end of the second quarter, and
some metrics were even at the best levels ever.
On the regulation front, the official release of
the “Interim Measures for Administration of Internet Loans Issued
by Commercial Banks” by the China Banking and Insurance Regulatory
Commission in July effectively validated our business model and
cleared a major overhang to the industry. The recently announced
“Guidelines on Laws Applicable to Trials of Private Lending Cases”
by the Supreme People’s Court of China set the new court protected
interest rate cap for private lending. Although our business is
almost entirely dealing with institutional lending, we believe this
new guideline is consistent with our view that the overall interest
rate in China will gradually trend lower in the intermediate term
and our business planning has been largely based on that
assumption. We are confident that we should be able to make timely
adjustment to our operations to comply with updating regulatory
environment while maintaining strong business momentum and pursuing
our long-term strategic goals.”
“During the quarter, total revenue reached
RMB3.34 billion and none-GAAP net income reached RMB942 million.
The record-setting financial results further demonstrated the
resilience and flexibility of our operations.” Mr. Alex Xu, Chief
Financial Officer, commented “As we experienced robust recovery in
our business, we continued to improve operational efficiency. Unit
customer acquisition cost remained near recent lows and weighted
average funding cost reached a new low during the quarter.
Meanwhile we are very pleased to see progresses in new products.
V-pocket, a virtual credit card product we re-launched in the
previous quarter, crossed multiple milestones with explosive
growth, despite still in the pilot stage. This product noticeably
increased stickiness and activity levels of our users. We will
continue to enhance features of new products and optimize their
risk profile with a broader user base. While there are still
lingering uncertainties concerning our industry and our operations,
we remain confident to achieve our operational targets.”
Mr. Yan Zheng, Chief Risk Officer of 360
Finance, added, “Since mid-May we have seen much better than
expected recovery in asset quality. Among the key leading
indicators, Day-1 delinquency*10 decreased to approximately 6.2% at
the end of the second quarter from approximately 7.8% at the peak
of COVID-19. This was even better than the pre-pandemic level of
approximately 6.5%. Meanwhile the 30-day collection rate*11 also
improved to the pre-pandemic level of approximately 88% at the end
of the second quarter, compared to the February low of
approximately 80%. Furthermore we are encouraged to see these
metrics continue to improve into the current quarter. This is
clearly indicative of the strength and resilience of our risk
control system and the effectiveness and flexibility of our
post-lending management operations.”
(9) "We've used mainly data technology tools and
AI risk management systems in the process of providing such
services as loan facilitation, post-origination and borrowers'
referral to our customers. Revenue from these technology powered
services amount to 48% of our total net revenue. "(10) "D1
delinquency rate" is defined as (i) the total amount of principal
that became overdue as a specified date, divided by (ii) the total
amount of principal that was due for repayment as of such date.(11)
"M1 collection rate" is defined as (i) the amount of principal that
was repaid in one month among the total amount of principal that
became overdue as a specified date, divided by (ii) the total
amount of principal that became overdue as a specified date.
Second Quarter 2020 Financial
Results
Total net revenues was
RMB3,340.1 million (US$472.8 million), compared to RMB2,226.9
million in the same period of 2019, and RMB3,182.9 million in the
prior quarter.
Net revenue from Credit Driven
Services was RMB3,081.1 million (US$436.1 million),
compared to RMB2,015.2 million in the same period of 2019, and
RMB2,810.1 million in the prior quarter. The year-over-year growth
was mainly due to the releasing of guarantee liabilities under the
new accounting standard, and the sequential growth was mainly
driven by increase in loan origination.
Loan facilitation and servicing fees-capital
heavy were RMB1,353.9 million (US$191.6 million), compared to
RMB1,679.4 million in the same period of 2019 and RMB1,167.1
million in the prior quarter. The year-over-year decrease was
primarily due to a decrease in loan origination volume under the
capital-heavy model as we gradually increase the contribution of
capital-light model. The sequential growth was mainly related to
the recovery of our operations post-COVID-19.
Financing income*12 was
RMB628.1 million (US$88.9 million), compared to RMB234.3 million in
the same period of 2019 and RMB609.4 million in the prior quarter.
The growth was primarily due to an increase in loan balance through
the consolidated trusts.
Revenue from releasing of guarantee liabilities
was RMB1,076.6 million (US$152.4 million), compared to RMB47.3
million in the same period of 2019, and RMB1,006.2 million in the
prior quarter. The year-over-year increase was mainly due to the
change of accounting standard.
Other services fees wereRMB22.6 million (US$3.2
million), compared to RMB54.2 million in the same period of 2019,
and RMB27.4 million in the prior quarter. The decreases were
primarily due to the decline of late payment fees.
Net revenue from Platform
Services was RMB258.9 million (US$36.7 million), compared
to RMB211.8 million in the same period of 2019 and RMB372.8 million
in the prior quarter.
Loan facilitation and servicing fees-capital
light were RMB178.6 million (US$25.3 million), compared to RMB114.1
million in the same period of 2019 and RMB303.6 million in the
prior quarter. The year-over-year increase was primarily due to
growth in loan origination volume under capital-light model.
Referral services fees were RMB64.5 million
(US$9.1 million), compared to RMB96.3 million in the same period of
2019 and RMB54.6 million in the prior quarter. The year-over-year
decline was primarily due to a decrease in volume of referral
business as a result of a more conservative customer acquisition
strategy adopted during the first half of 2020 in the backdrop of
the COVID-19.
Other services fees were RMB15.9 million (US$2.2
million), compared to RMB1.3 million in the same period of 2019 and
RMB14.7 million in the prior quarter. The increases were mainly due
to growth in revenue from late fees and in loan origination volume
under capital-light model.
Total operating costs and
expenses were RMB2,346.8 million (US$332.2 million),
compared to RMB1,397.3 million in the same period of 2019 and
RMB2,998.7 million in the prior quarter.
Origination and servicing expenses were RMB399.8
million (US$56.6 million), compared to RMB256.2 million in the same
period of 2019 and RMB347.7 million in the prior quarter. The
increases were primarily due to growth in loan origination volume
and an increase in collection fees since we proactively expanded
our collection operations to cope with market uncertainty.
Funding costs were RMB161.1 million (US$22.8
million), compared to RMB64.7 million in the same period of 2019
and RMB158.6 million in the prior quarter. The increases were
mainly driven by growth in loan origination volume while funding
cost percentage continued to decline.
Sales and marketing expenses were RMB269.1
million (US$38.1 million), compared to RMB837.8 million in the same
period of 2019 and RMB223.0 million in the prior quarter. The
year-over-year decline was primarily due to a more conservative
customer acquisition strategy and more effective customer
acquisition operations during the first half of 2020.
General and administrative expenses were
RMB109.5 million (US$15.5 million), compared to RMB126.6 million in
the same period of 2019 and RMB108.7 in the prior quarter. The
year-over-year decline in general and administrative expenses
reflected our continued effort to improve operational efficiency,
while professional fees and rental fees increased and payroll
decreased.
Provision for loans receivable was RMB218.6
million (US$30.9 million), compared to RMB37.3 million in the same
period of 2019 and RMB307.3 million in the prior quarter. The
year-over-year increase was mainly due to the change of accounting
standard.
Provision for financial assets receivable was
RMB79.2 million (US$11.2 million), compared to RMB31.8 million in
the same period of 2019 and RMB93.7 million in the prior quarter.
The outbreak of COVID-19 during the first half of 2020 had an
impact on the expected default rates, we provided increased
allowance to ensure sufficient coverage for loans facilitated both
in prior periods and current quarter.
Provision for accounts receivable and contract
assets was RMB90.8 million (US$12.9 million), compared to RMB43.0
million in the same period of 2019 and RMB57.0 in the prior
quarter. The outbreak of the COVID-19 during the first half of 2020
had an impact on the expected default rates, we provided increased
allowance to ensure sufficient coverage.
Provision for contingent liability was RMB1018.9
million (US$144.2 million), compared to RMB1,702.8 million in the
prior quarter. The sequential decline was mainly due to reduction
of allowance for loans originated in prior quarters as those loans
performed better than initially expected.
Income from operations was
RMB993.2 million (US$140.6 million), compared to RMB829.6 million
in the same period of 2019 and RMB184.2 million in the prior
quarter.
Non-GAAP income from operations
was RMB1,058.9 million (US$149.9 million), compared to RMB903.2
million in the same period of 2019 and RMB255.5 million in the
prior quarter.
Operating margin was 29.7%.
Non-GAAP operating margin was 31.7%.
Income before income tax
expense was RMB1,042.7 million (US$147.6million), compared
to RMB791.1 million in the same period of 2019 and RMB228.1 million
in the prior quarter.
Income taxes expense was
RMB166.3 million (US$23.5 million). Effective tax rate was 15%,
compared to 20% in the same period of 2019 and 15% in the prior
quarter.
Net income attributed to the
Company was RMB876.5 million (US$124.1 million), compared
to RMB618.2 million in the same period of 2019 and RMB183.2 million
in the prior quarter.
Non-GAAP net income attributed
to the Company was RMB942.2 million (US$133.4 million), compared to
RMB691.7 million in the same period of 2019 and RMB254.5 million in
the prior quarter.
Net income margin was 26.2%.
Non-GAAP net income margin was 28.2%.
Net income per fully diluted
ADS was RMB5.76 (US$0.82).
Non-GAAP net income per fully diluted
ADS was RMB6.19 (US$0.88).
Weighted average basic ADS used in
calculating GAAP and non-GAAP net income per ADS was
147.87 million.
Weighted average diluted ADS used in
calculating GAAP and non-GAAP net income per ADS was
152.29 million.
(12) “Financing income” is generated from loans
originated through the Company’s platform funded by the
consolidated trusts and Fuzhou Microcredit, which charge fees and
interests from borrowers.
M6+ Delinquency Rate by
Vintage
The following chart and table display the
historical cumulative M6+ delinquency rates by loan origination
vintage for all loans originated through the company’s
platform:
http://ml.globenewswire.com/Resource/Download/36459612-a9ad-4e6a-851a-f3b68402a527
Recently Adopted Accounting
Guidance
In June 2016, the FASB issued ASU No. 2016-13,
Financial Instruments—Credit Losses (Topic 326): Measurement of
Credit Losses on Financial Instruments which has subsequently been
amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU
2019-11 and ASU 2020-03. This ASU is intended to improve financial
reporting by requiring timelier recording of credit losses on loans
and other financial instruments held by financial institutions and
other organizations. This ASU requires the measurement of all
expected credit losses for financial assets held at the reporting
date based on historical experience, current conditions, and
reasonable and supportable forecasts. For public business entities,
the guidance is effective for fiscal years beginning after December
15, 2019, including final periods within those fiscal years.
We have adopted the new standard effective
January 1, 2020, using the modified retrospective transition
method. The new guidance requires the recognition of credit losses
to be measured using an expected credit loss model (referred to as
the current expected credit loss (CECL) model). ASC 326 establishes
a new accounting principle which requires gross accounting for
guarantee liability. That is, to record both a guarantee obligation
and an allowance for credit losses, calculated using the CECL
impairment model, in addition to the guarantee obligation under ASC
460. As a result, at inception of the guarantee, we have recognized
both a stand-ready guarantee liability under ASC 460 with an
associated financial assets receivable, and a contingent guarantee
liability with an allowance for credit losses under CECL model.
Subsequent to the initial recognition, the ASC 460 stand-ready
guarantee is recognized into guarantee revenue over the term of the
guarantee, while the contingent guarantee is reduced by the payouts
made by the company to compensate the investors upon borrowers'
default. Upon adoption, we recognized the cumulative effect of
approximately RMB1.43 billion after tax as a decrease to the
opening balance of retained earnings and RMB1.9 billion as an
increase to the opening balance of guarantee liabilities as of
January 1, 2020.
Business Outlook
While the Company continues to maintain strong
business momentum, it is still prudent to take a conservative
approach in business and financial planning given recent changes in
regulatory front. As such the Company will maintain its total loan
origination volume guidance for fiscal year 2020 to be in the range
of RMB 200 billion to RMB 220 billion. This forecast reflects the
Company’s current and preliminary views, which is subject to
change.
Conference Call
360 Finance’s management team will host an
earnings conference call at 8:00 AM U.S. Eastern Time on Monday,
August 24, 2020 (8:00 PM Beijing Time on the same day).
Dial-in details for the earnings conference call
are as follows:
United States: |
+1-646-722-4977 |
Hong Kong: |
+852-3027-6500 |
Mainland China: |
400-821-0637 |
International: |
+65-6408-5782 |
PIN: |
94065487# |
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 31,
2020:
United States: |
+1-646-982-0473 |
International: |
+65-6408-5781 |
Access code: |
319336601# |
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.360jinrong.net.
About 360 Finance
360 Finance, Inc. (NASDAQ: QFIN) (“360 Finance”
or the “Company”) is a leading digital consumer finance platform
and the finance partner of the 360 Group. The Company provides
tailored online consumer finance products to prime, underserved
borrowers funded primarily by its funding partners. The Company’s
proprietary technology platform enables a unique user experience
supported by resolute risk management. When coupled with its
partnership with 360 Group, the Company’s technology translates to
a meaningful borrower acquisition, borrower retention and funding
advantage, supporting the rapid growth and scaling of its
business.
For more information, please visit:
ir.360jinrong.net
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 and non-GAAP net income
margin 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, and non-GAAP net income represents net
income excluding share-based compensation expenses. 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
RMB7.0651 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, 2020.
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. 360 Finance may
also make written or oral forward-looking statements in its reports
to the U.S. Securities and Exchange Commission ("SEC") on Forms
20-F and 6-K, 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 for 2019, 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. Further information
regarding such risks and uncertainties is included in 360 Finance'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 Finance does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
For more information, please
contact:
360 Finance
E-mail: ir@360jinrong.net
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, |
June 30, |
June 30, |
|
2019 |
2020 |
2020 |
|
RMB |
RMB |
USD |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
2,108,123 |
3,823,221 |
541,142 |
Restricted cash |
1,727,727 |
2,920,013 |
413,301 |
Security deposit prepaid to third-party guarantee companies |
932,983 |
694,882 |
98,354 |
Funds receivable from third party payment service providers |
118,860 |
239,870 |
33,951 |
Accounts receivable and
contract assets, net |
2,332,364 |
1,879,332 |
266,002 |
Financial assets receivable, net |
1,912,554 |
2,560,544 |
362,421 |
Amounts due from related parties |
478,767 |
291,262 |
41,225 |
Loans receivable, net |
9,239,565 |
9,261,127 |
1,310,827 |
Prepaid expenses and other assets |
652,545 |
502,935 |
71,189 |
Total current assets |
19,503,488 |
22,173,186 |
3,138,412 |
Non-current assets: |
|
|
|
Accounts receivable and contract assets, net-non current |
19,508 |
251,194 |
35,554 |
Financial assets receivable, net-non current |
59,270 |
422,398 |
59,787 |
Property and equipment, net |
17,113 |
20,795 |
2,943 |
Intangible assets |
3,512 |
2,997 |
424 |
Deferred tax assets |
697,348 |
1,048,321 |
148,380 |
Other non-current assets |
55,362 |
61,877 |
8,758 |
Total non-current assets |
852,113 |
1,807,582 |
255,846 |
TOTAL ASSETS |
20,355,601 |
23,980,768 |
3,394,258 |
|
|
|
|
LIABILITIES AND EQUITY
LIABILITIES |
|
|
|
Current liabilities: |
|
|
|
Payable to investors of the consolidated trusts-current |
4,423,717 |
4,893,594 |
692,643 |
Accrued expenses and other
current liabilities |
720,918 |
1,072,941 |
151,865 |
Amounts due to related parties |
55,622 |
66,056 |
9,350 |
Short term loans |
200,000 |
188,314 |
26,654 |
Guarantee liabilities-stand ready |
2,212,125 |
3,098,504 |
438,565 |
Guarantee liabilities-contingent |
734,730 |
3,072,975 |
434,951 |
Income tax payable |
1,056,219 |
767,271 |
108,600 |
Other tax payable |
263,856 |
131,548 |
18,619 |
Total current liabilities |
9,667,187 |
13,291,203 |
1,881,247 |
Non-current liabilities: |
|
|
|
Deferred tax liabilities |
- |
18,177 |
2,573 |
Payable to investors of the consolidated trusts-noncurrent |
3,442,500 |
3,634,829 |
514,477 |
Other long-term liabilities |
31,184 |
28,030 |
3,967 |
Total non-current liabilities |
3,473,684 |
3,681,036 |
521,017 |
TOTAL LIABILITIES |
13,140,871 |
16,972,239 |
2,402,264 |
Ordinary shares |
20 |
21 |
3 |
Additional paid-in
capital |
5,117,184 |
5,254,235 |
743,689 |
Retained earnings |
2,071,332 |
1,700,858 |
240,741 |
Other comprehensive
income |
24,906 |
52,307 |
7,404 |
TOTAL 360 FINANCE INC EQUITY |
7,213,442 |
7,007,421 |
991,837 |
Noncontroling interests |
1,288 |
1,108 |
157 |
TOTAL EQUITY |
7,214,730 |
7,008,529 |
991,994 |
TOTAL LIABILITIES AND EQUITY |
20,355,601 |
23,980,768 |
3,394,258 |
|
|
|
|
|
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, |
|
2019 |
2020 |
2020 |
|
2019 |
2020 |
2020 |
|
RMB |
RMB |
USD |
|
RMB |
RMB |
USD |
Credit driven services |
2,015,172 |
3,081,104 |
436,101 |
|
3,905,292 |
5,891,154 |
833,839 |
Loan facilitation and servicing fees-capital
heavy |
1,679,410 |
1,353,871 |
191,628 |
|
3,439,592 |
2,520,990 |
356,823 |
Financing income |
234,275 |
628,117 |
88,904 |
|
314,460 |
1,237,513 |
175,159 |
Revenue from releasing of guarantee
liabilities |
47,331 |
1,076,555 |
152,376 |
|
84,682 |
2,082,731 |
294,791 |
Other services fees |
54,156 |
22,561 |
3,193 |
|
66,558 |
49,920 |
7,066 |
Platform services |
211,776 |
258,948 |
36,651 |
|
330,635 |
631,793 |
89,424 |
Loan facilitation and servicing fees-capital
light |
114,092 |
178,588 |
25,277 |
|
128,738 |
482,210 |
68,252 |
Referral services fees |
96,341 |
64,497 |
9,129 |
|
199,716 |
119,063 |
16,852 |
Other services fees |
1,343 |
15,863 |
2,245 |
|
2,181 |
30,520 |
4,320 |
Total net
revenue |
2,226,948 |
3,340,052 |
472,752 |
|
4,235,927 |
6,522,947 |
923,263 |
Origination and servicing |
256,180 |
399,766 |
56,583 |
|
463,786 |
747,419 |
105,790 |
Funding costs |
64,682 |
161,062 |
22,797 |
|
90,746 |
319,676 |
45,247 |
Sales and marketing |
837,790 |
269,054 |
38,082 |
|
1,528,041 |
492,062 |
69,647 |
General and administrative |
126,646 |
109,488 |
15,497 |
|
223,646 |
218,219 |
30,887 |
Provision for loans receivable |
37,279 |
218,569 |
30,936 |
|
54,798 |
525,828 |
74,426 |
Provision for financial assets receivable |
31,778 |
79,199 |
11,210 |
|
56,910 |
172,923 |
24,476 |
Provision for accounts receivable and contract
assets |
42,966 |
90,811 |
12,853 |
|
128,993 |
147,787 |
20,918 |
Provision
for contingent liabilities |
- |
1,018,860 |
144,210 |
|
- |
2,721,617 |
385,220 |
Total operating costs
and expenses |
1,397,321 |
2,346,809 |
332,168 |
|
2,546,920 |
5,345,531 |
756,611 |
Income from
operations |
829,627 |
993,243 |
140,584 |
|
1,689,007 |
1,177,416 |
166,652 |
Interest (expense) income, net |
(5,109) |
15,228 |
2,155 |
|
(1,932) |
24,978 |
3,535 |
Foreign exchange (loss) gain |
(35,264) |
4,685 |
663 |
|
(2,728) |
(23,887) |
(3,381) |
Other income, net |
1,854 |
29,569 |
4,185 |
|
23,896 |
92,290 |
13,063 |
Income before income
tax expense |
791,108 |
1,042,725 |
147,587 |
|
1,708,243 |
1,270,797 |
179,869 |
Income taxes expense |
(172,929) |
(166,260) |
(23,533) |
|
(370,125) |
(211,177) |
(29,890) |
Net
income |
618,179 |
876,465 |
124,054 |
|
1,338,118 |
1,059,620 |
149,979 |
Net loss attributable to noncontrolling
interests |
- |
49 |
7 |
|
|
302 |
43 |
Net income
attributable to ordinary shareholders of the Company |
618,179 |
876,514 |
124,061 |
|
1,338,118 |
1,059,922 |
150,022 |
Net income per ordinary share attributable to ordinary shareholders
of 360 Finance, Inc. |
|
|
|
|
|
|
|
Basic |
2.15 |
2.96 |
0.42 |
|
4.65 |
3.60 |
0.51 |
Diluted |
2.04 |
2.88 |
0.41 |
|
4.43 |
3.50 |
0.49 |
|
|
|
|
|
|
|
|
Net income per ADS attributable to ordinary shareholders of 360
Finance, Inc. |
|
|
|
|
|
|
|
Basic |
4.30 |
5.93 |
0.84 |
|
9.30 |
7.19 |
1.02 |
Diluted |
4.07 |
5.76 |
0.82 |
|
8.86 |
6.99 |
0.98 |
|
|
|
|
|
|
|
|
Weighted average shares used in calculating net income per ordinary
share |
|
|
|
|
|
|
|
Basic |
287,652,707 |
295,737,611 |
295,737,611 |
|
287,652,707 |
294,669,797 |
294,669,797 |
Diluted |
303,477,406 |
304,583,237 |
304,583,237 |
|
301,933,074 |
303,261,250 |
303,261,250 |
|
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidated Statements of
Comprehensive (Loss)/Income |
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("USD")
except for number of shares and per share data, or otherwise
noted) |
|
|
|
|
|
Three months ended June 30, |
|
2019 |
2020 |
2020 |
|
RMB |
RMB |
USD |
Net
income |
618,179 |
876,465 |
124,054 |
Other comprehensive income, net of tax of nil: |
|
|
|
Foreign currency translation adjustment |
37,483 |
(3,559) |
(504) |
Other comprehensive income (loss) |
37,483 |
(3,559) |
(504) |
Total comprehensive income |
655,662 |
872,906 |
123,550 |
Net loss attributable to noncontrolling interests |
- |
49 |
7 |
Comprehensive income
attributable to ordinary shareholders |
655,662 |
872,955 |
123,557 |
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
2019 |
2020 |
2020 |
|
RMB |
RMB |
USD |
Net
income |
1,338,118 |
1,059,620 |
149,979 |
Other comprehensive income, net of tax of nil: |
|
|
|
Foreign currency translation adjustment |
(2,530) |
27,401 |
3,878 |
Other comprehensive (loss) income |
(2,530) |
27,401 |
3,878 |
Total comprehensive income |
1,335,588 |
1,087,021 |
153,857 |
Net loss attributable to noncontrolling interests |
- |
302 |
43 |
Comprehensive income
attributable to ordinary shareholders |
1,335,588 |
1,087,323 |
153,900 |
|
|
|
|
|
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, |
|
2019 |
2020 |
2020 |
|
RMB |
RMB |
USD |
Reconciliation of
Non-GAAP Net Income to Net Income |
|
|
|
Net income |
618,179 |
876,465 |
124,054 |
Add: Share-based compensation expenses |
73,537 |
65,677 |
9,296 |
Non-GAAP net income |
691,716 |
942,142 |
133,350 |
Non-GAAP net income
margin |
31.1% |
28.2% |
|
GAAP net income margin |
27.8% |
26.2% |
|
|
|
|
|
Net income attributable to shareholders of 360 Finance,
Inc |
618,179 |
876,514 |
124,061 |
Non-GAAP net income attributable to shareholders of 360
Finance, Inc |
691,716 |
942,191 |
133,357 |
Weighted average ADS used in
calculating net income per ordinary share |
151,738,703 |
152,291,619 |
152,291,619 |
Net income per ADS
attributable to ordinary shareholders of 360 Finance, Inc.
-diluted |
4.07 |
5.76 |
0.81 |
Non-GAAP net income per ADS
attributable to ordinary shareholders of 360 Finance, Inc.
-diluted |
4.56 |
6.19 |
0.88 |
|
|
|
|
Reconciliation of
Non-GAAP Income from operations to Income from
operations |
|
|
|
Income from operations |
829,627 |
993,243 |
140,584 |
Add: Share-based compensation expenses |
73,537 |
65,677 |
9,296 |
Non-GAAP Income from operations |
903,164 |
1,058,920 |
149,880 |
Non-GAAP operating margin |
40.6% |
31.7% |
|
GAAP operating margin |
37.3% |
29.7% |
|
|
|
|
|
|
Six months ended June 30, |
|
2019 |
2020 |
2020 |
|
RMB |
RMB |
USD |
Reconciliation of
Non-GAAP Net Income to Net Income |
|
|
|
Net income |
1,338,118 |
1,059,620 |
149,979 |
Add: Share-based compensation expenses |
142,382 |
137,051 |
19,398 |
Non-GAAP net income |
1,480,500 |
1,196,671 |
169,377 |
Non-GAAP net income
margin |
35.0% |
18.3% |
|
GAAP net income margin |
31.6% |
16.2% |
|
|
|
|
|
Net income attributable to shareholders of 360 Finance,
Inc |
1,338,118 |
1,059,922 |
150,022 |
Non-GAAP net income attributable to shareholders of 360
Finance, Inc |
1,480,500 |
1,196,973 |
169,420 |
Weighted average ADS used in
calculating net income per ordinary share |
150,966,537 |
151,630,625 |
151,630,625 |
Net income per ADS
attributable to ordinary shareholders of 360 Finance, Inc.
-diluted |
8.86 |
6.99 |
0.99 |
Non-GAAP net income per ADS
attributable to ordinary shareholders of 360 Finance, Inc.
-diluted |
9.81 |
7.89 |
1.12 |
|
|
|
|
Reconciliation of
Non-GAAP Income from operations to Income from
operations |
|
|
|
Income from operations |
1,689,007 |
1,177,416 |
166,652 |
Add: Share-based compensation expenses |
142,382 |
137,051 |
19,398 |
Non-GAAP Income from operations |
1,831,389 |
1,314,467 |
186,050 |
Non-GAAP operating margin |
43.2% |
20.2% |
|
GAAP operating margin |
39.9% |
18.1% |
|
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