-Ninth consecutive quarters of transaction volume
growth-
-Total Transaction Volume in Q2 2022 reached new record high of
RMB41.5 billion-
SHANGHAI, Aug. 22,
2022 /PRNewswire/ -- FinVolution Group
("FinVolution," or the "Company") (NYSE:
FINV), a leading fintech platform, today
announced its unaudited financial results for the second quarter
ended June 30, 2022.
|
For the
Three Months Ended / As of
|
YoY
Change
|
|
June 30,
2021
|
June 30,
2022
|
|
|
|
|
|
Total Transaction
Volume (RMB in billion)1
|
33.4
|
41.5
|
24.3 %
|
|
Transaction Volume
(China's Mainland)
|
32.5
|
40.6
|
24.9 %
|
|
Transaction Volume
(International)2
|
0.94
|
0.91
|
-3.2 %
|
|
Total Outstanding
Loan Balance (RMB in billion)
|
39.2
|
56.4
|
43.9 %
|
|
Outstanding Loan
Balance (China's Mainland)3
|
38.9
|
55.9
|
43.7 %
|
|
Outstanding Loan
Balance (International)4
|
0.30
|
0.48
|
60.0 %
|
|
|
|
|
Second Quarter 2022 Operational Highlights
Continued transition towards better-quality borrowers
- Total cumulative registered users5 reached 149.3
million as of June 30, 2022.
- Total number of unique borrowers6 for the second
quarter of 2022 was 3.1 million.
- Total number of repeat borrowers7 for the second
quarter of 2022 was 2.5 million.
Total Transaction Volume and outstanding loan balance
continued consistent growth momentum
- Total transaction volume reached RMB41.5
billion for the second quarter of 2022, an increase of 24.3%
compared to the same period of 2021.
- Transaction volume facilitated for repeat borrowers8
for the second quarter of 2022 was RMB36.7
billion, an increase of 39.5% compared to the same period of
2021.
- Total outstanding loan balance reached RMB56.4 billion as of June
30, 2022, an increase of 43.9% compared to June 30, 2021.
Small business owners' loans continued to scale up with
steady growth
- Transaction volume facilitated for small business owners for
the second quarter of 2022 was RMB10.4
billion, representing 25.1% of total transaction volume in
the second quarter of 2022 and an increase of 67.7% compared to the
same period of 2021.
- Total numbers of small business owners served for the second
quarter of 2022 was 501 thousand, an increase of 22.8% compared to
the same period of 2021.
International expansion continued to strengthen with
transition to better-quality borrowers
- Transaction volume facilitated in the international markets for
the second quarter of 2022 was RMB 0.91
billion, a decrease of 3.2% compared to the same period of
2021.
- Outstanding loan balance for international markets4
as of June 30, 2022 was RMB0.48 billion, representing an increase of
60.0% from June 30, 2021.
More operational highlights
- 90 day+ delinquency ratio9 was 1.60% as of
June 30, 2022, compared to 1.01% as
of June 30, 2021.
- Average loan size10 was RMB6,978 for the second quarter of 2022, compared
to RMB4,403 in the same period of
2021.
- Average loan tenor11 was 8.7 months for the second
quarter of 2022, compared with 8.1 months in the same period of
2021.
Second Quarter 2022 Financial Highlights
- Net revenue was RMB2,666.0
million (US$398.0 million) for
the second quarter of 2022, an increase of 11.8% from RMB2,384.1 million for the same period of
2021.
- Net profit was RMB585.2 million
(US$87.4 million) for the second
quarter of 2022, a decrease of 5.7% from RMB620.4 million for the same period of
2021.
- Non-GAAP adjusted operating income12, which excludes
share-based compensation expenses before tax, was RMB681.5 million (US$101.7
million) for the second quarter of 2022, a decrease of 6.1%
from RMB726.1 for the same period of
2021.
- Non-GAAP net profit attributable to FinVolution
Group13 was RMB606.0
million (US$90.5 million) for
the second quarter of 2022, a decrease of 6.5% from RMB647.8 for the same period of 2021.
- Diluted net profit per American depositary share ("ADS") was
RMB1.98 (US$0.30) and diluted net profit per share was
RMB0.40 (US$0.06), a decrease of 6.2% from the same
period of 2021. Non-GAAP diluted net profit per ADS was
RMB2.06 (US$0.31) and non-GAAP diluted net profit per
share was RMB0.41 (US$0.06), a decrease of 5.1% from the same
period of 2021. Each ADS of the Company represents five Class A
ordinary shares of the Company.
|
1 Represents total
transaction volume facilitated in China's Mainland and overseas
markets on the Company's platforms during the period
presented.
|
|
2 Represents our overseas markets
outside China's Mainland.
|
|
3
Outstanding loan balance (China's Mainland) as of any date refers
to the balance of outstanding loans in China's Mainland market
delinquent within 180 days from such date.
|
|
4
Outstanding loan balance (international) as of any date refers to
the balance of outstanding loans in overseas markets delinquent
within 30 days from such date.
|
|
5 On a
cumulative basis, the total number of users registered on the
Company's platforms as of June 30, 2022.
|
|
6 Represents
the total number of borrowers whose transactions were facilitated
on the Company's platforms during the period presented.
|
|
7 Represents
the total number of repeat borrowers who have successfully borrowed
on our platform in the past and borrowed on the Company's platforms
during the period presented.
|
|
8 Represents
transaction volume facilitated for the repeat borrowers who
successfully completed their transaction on the Company's
platforms during the period presented.
|
|
9 "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 the Company's platform
as of a specific date. Loans that originated outside China's
Mainland are not included in the calculation.
|
|
10
Represents the average loan size on the Company's platform in
China's Mainland during the period presented.
|
|
11
Represents the average loan tenor on the Company's platform in
China's Mainland during the period presented.
|
|
12 Please
refer to "UNAUDITED Reconciliation of GAAP And Non-GAAP Results"
for reconciliation between GAAP and Non-GAAP adjusted operating
income.
|
|
13 Please
refer to "UNAUDITED Reconciliation of GAAP And Non-GAAP Results"
for reconciliation between GAAP and Non-GAAP adjusted net profit
attributable to FinVolution Group.
|
Mr. Feng Zhang, Chief Executive
Officer of FinVolution, commented, "Together with the Company's
ongoing transition towards better quality borrowers in both
domestic and international markets coupled with our long-term goal
of financial inclusion, these advantages further contributed to our
growth momentum in this challenging quarter. Encouragingly,
our total transaction volume continuously increased for the ninth
consecutive quarter, reaching RMB41.5
billion and representing a year-over-year increase of 24.3%
and a quarter-over-quarter increase of 4.5%".
"We also remained committed towards supporting small business
owners during this challenging period. During the second quarter,
we served over 500 thousand small business owners across a variety
of industries such as wholesale, retail and manufacturing, among
others, representing an increase of 22.8% from the same period of
2021. Transaction volume for this business further increased 67.7%
year-over-year to a new record high of RMB10.4 billion in the second quarter of 2022,
contributing 25.1% of total transaction volume in the same
period".
With Covid-19 policies easing in the Southeast Asia region, transaction volume in
our international markets increased to RMB0.91 billion in the second quarter of 2022.
More excitingly, outstanding loan balances for our international
markets increased to RMB0.48 billion
as of June 30, 2022, representing a
year-over-year increase of 60.0% and a quarter-over-quarter
increase of 33.3%.
"Last but not least, we continued to make strides in improving
our ESG management practices and advancing our ESG initiatives
during the quarter. Our recently distributed fourth annual ESG
report of the Company, highlights our ESG policies and
accomplishments in 2021 as well as our ongoing endeavors. We will
continue to reinforce our ESG engagement and responsibilities at
multiple levels," concluded Mr. Zhang.
Mr. Jiayuan Xu, FinVolution's
Chief Financial Officer, continued, "Consistent improvements in
numerous operational metrics across multiple market cycles clearly
illustrate the effectiveness of our technological refinements.
Bolstered by these strengths, our net revenues for the second
quarter grew to RMB2.7 billion, an
increase of 11.8% year-over-year."
"Even more encouragingly, we also delivered a strong non-GAAP
adjusted operating income12 of RMB681.5 million and maintained a substantial
balance sheet with RMB11.4 billion in
total shareholders' equity as of June 30,
2022. Supported by a strong financial position, we are well
prepared to capture both existing and new opportunities in the
markets in which we operate," concluded Mr. Xu.
Second Quarter 2022 Financial Results
Net revenue for the second quarter of 2022 increased by
11.8% to RMB2,666.0 million
(US$398.0 million) from RMB2,384.1 million in the same period of 2021,
primarily due to the increase in loan facilitation service fees and
post facilitation service fees.
Loan facilitation service fees increased by 10.5% to
RMB1,052.1 million (US$157.1 million) for the second quarter of 2022
from RMB952.4 million in the same
period of 2021. This increase was primarily due to the increase in
transaction volume, partially offset by the decrease in service fee
rates.
Post-facilitation service fees increased by 61.1% to
RMB482.8 million (US$72.1 million) for the second quarter of 2022
from RMB299.6 million in the same
period of 2021, primarily due to the increase in outstanding loans
served by the Company and the rolling impact of deferred
transaction fees.
Guarantee income was RMB709.5
million (US$105.9 million) for the second quarter of
2022 compared to RMB665.7 million in
the same period of 2021. This increase was primarily due
to the increased outstanding loan balance of off-balance sheet
loans, partially offset by the improved asset quality. The fair
value of quality assurance commitment upon loan origination is
released as guarantee income systematically over the term of the
loans subject to quality assurance commitment. As the Company
transitioned its business towards better quality borrowers, the
fair value of quality assurance commitment upon loan origination
decreased due to better asset quality.
Net interest income decreased by 8.3% to
RMB282.9 million (US$42.2 million) for the second quarter of 2022,
from RMB308.5 million in the same
period of 2021. This decrease was primarily due to the decrease in
interest rates, partially offset by the increase in the outstanding
loan balance of on balance sheet loans.
Other revenue decreased by 12.2% to RMB138.6 million (US$20.7
million) for the second quarter of 2022 from RMB157.9 million in the same period of 2021,
primarily due to the decrease in customer referral fees from other
third-party platforms.
Origination, servicing expenses and other costs of
revenue increased by 16.4% to RMB529.7
million (US$79.1 million) for
the second quarter of 2022 from RMB455.0
million in the same period of 2021, primarily due to the
increase in employees' expenditures and fees paid to the
third-party service providers as a result of the increase in loan
origination volume.
Sales and marketing expenses decreased by 30.9% to
RMB327.1 million (US$48.8 million) for the second quarter of 2022
from RMB473.2 million in the same
period of 2021 as a result of the decreased investments in the
acquisition of new borrowers on the Company's platform due to
Covid-19 resurgence in China.
Research and development expenses increased by 10.9% to
RMB116.0 million (US$17.3 million) for the second quarter of 2022,
from RMB104.6 million in the same
period of 2021, due to the increased investments in technology
development.
General and administrative expenses decreased by 24.0% to
RMB95.8 million (US$14.3 million) for the second quarter of 2022
compared to RMB126.1 million in the
same period of 2021, primarily due to the increase in operating
efficiency.
Provision for accounts receivable and contract assets
increased by 99.2% to RMB94.4 million
(US$14.1 million) for the second
quarter of 2022 compared to RMB47.4
million in the same period of 2021. This increase was
primarily due to the increase in outstanding loan balances,
partially offset by a lower expected default rate as a result of
the transition to better quality borrowers.
Provision for loans receivable was RMB59.1 million (US$8.8
million) for the second quarter of 2022, compared to
RMB81.9 million in the same period of
2021. The decrease was primarily due to a lower-than-expected
default rate as a result of the transition to better quality
borrowers, partially offset by the increase in outstanding loan
balance of on balance sheet loans.
Credit losses for quality assurance commitment were
RMB787.1 million (US$117.5 million) for the second quarter of
2022 compared to RMB391.1 million in
the same period of 2021. This increase was primarily due to the
increase in outstanding loan balances, partially offset by lower
expected default rate as a result of the transition to better
quality borrowers.
Operating profit decreased by 6.8% to RMB656.7 million (US$98.0
million) for the second quarter of 2022 from RMB704.7 million in the same period of 2021.
Non-GAAP adjusted operating income, which excludes
share-based compensation expenses before tax, was RMB681.5 million (US$101.7
million) for the second quarter of 2022, representing a
decrease of 6.1% from RMB726.1
million in the same period of 2021. Non-GAAP net profit
attributable to FinVolution Group was RMB606.0 million (US$90.5
million) for the second quarter of 2022, representing a
decrease of 6.5% from RMB647.8 for
the same period of 2021.
Other income increased by 81.8% to RMB46.9 million (US$7.0
million) for the second quarter of 2022 from RMB25.8 million in the same period of 2021,
mainly due to the increase in government subsidy and investment
gains.
Income tax expense was RMB118.4 million
(US$17.7 million) for the second
quarter of 2022, compared to income tax expenses of RMB110.1 million in the same period of 2021. This
increase was mainly due to a change in preferential tax rate for
certain qualified subsidiaries, partially offset by the decline
in pre-tax profit.
Net profit was RMB585.2
million (US$87.4 million) for
the second quarter of 2022, compared to RMB620.4 million in the same period of 2021.
Net profit attributable to ordinary shareholders of the
Company was RMB581.2 million
(US$86.8 million) for the second
quarter of 2022, compared to RMB626.4
million in the same period of 2021.
Diluted net profit per ADS was RMB1.98 (US$0.30)
and diluted net profit per share was RMB0.40 (US$0.06),
a decrease of 6.2 % year-over-year. Non-GAAP diluted net profit
per ADS was RMB2.06 (US$0.31) and non-GAAP diluted net profit per
share was RMB0.41 (US$0.06), a decrease of 5.1% year-over-year.
Each ADS represents five Class A ordinary shares of the
Company.
As of June 30, 2022, the Company
had cash and cash equivalents of RMB4,277.3
million (US$638.6 million) and
short-term investments mainly in wealth management products of
RMB907.3 million (US$135.5 million).
The following table provides the delinquency rates for all
outstanding loans on the Company's platform in China's Mainland as of the respective dates
indicated.
|
As of
|
15-29
days
|
30-59
days
|
60-89
days
|
90-119
days
|
120-149
days
|
150-179
days
|
|
June 30,
2019
|
0.86 %
|
1.42 %
|
1.37 %
|
1.19 %
|
1.26 %
|
1.21 %
|
|
September 30,
2019
|
0.90 %
|
1.50 %
|
1.35 %
|
1.31 %
|
1.17 %
|
1.20 %
|
|
December 31,
2019
|
1.34 %
|
2.40 %
|
1.86 %
|
1.76 %
|
1.62 %
|
1.53 %
|
|
March 31,
2020
|
1.34 %
|
3.03 %
|
2.33 %
|
2.44 %
|
2.64 %
|
2.17 %
|
|
June 30,
2020
|
0.71 %
|
1.36 %
|
1.70 %
|
2.00 %
|
2.75 %
|
2.38 %
|
|
September
30,2020
|
0.46 %
|
0.72 %
|
0.74 %
|
0.90 %
|
1.07 %
|
1.43 %
|
|
December 31,
2020
|
0.35 %
|
0.55 %
|
0.48 %
|
0.52 %
|
0.49 %
|
0.55 %
|
|
March 31,
2021
|
0.29 %
|
0.52 %
|
0.43 %
|
0.39 %
|
0.38 %
|
0.36 %
|
|
June 30,
2021
|
0.30 %
|
0.45 %
|
0.39 %
|
0.32 %
|
0.36 %
|
0.33 %
|
|
September 30,
2021
|
0.34 %
|
0.51 %
|
0.43 %
|
0.39 %
|
0.33 %
|
0.32 %
|
|
December 31,
2021
|
0.39 %
|
0.67 %
|
0.55 %
|
0.49 %
|
0.41 %
|
0.36 %
|
|
March 31,
2022
|
0.35 %
|
0.64 %
|
0.57 %
|
0.58 %
|
0.57 %
|
0.49 %
|
|
June 30,
2022
|
0.31 %
|
0.55 %
|
0.58 %
|
0.53 %
|
0.55 %
|
0.52 %
|
The following chart and table display the historical cumulative
30-day plus past due delinquency rates by loan origination vintage
in China's Mainland for all loan
products facilitated through the Company's online platform as of
June 30, 2022: Click here to view the chart.
Business Outlook
Given COVID-19's resurgence in China since the beginning of 2022, the Company
will continue to closely monitor the pandemic situation and remain
vigilant in its business operations. As such, the Company holds a
cautious view of its operations and anticipates its transaction
volume in the third quarter of 2022, to be in the range of
RMB44.0 billion to RMB45.0 billion, representing a year-over-year
increase of 15.5% to 18.1%.
The above forecast is based on the current market conditions and
reflects the Company's current preliminary views and expectations
on market and operational conditions and the regulatory and
operating environment, as well as customer and institutional
investor demands, all of which are subject to change.
Shares Repurchase Program Update
On August 21, 2022, the board of
directors of the Company approved the expansion of the
Company's existing share repurchase program from up to US$60 million to up to US$140 million and the extension for another
twelve months from January 1, 2023,
through December 31, 2023, which
allows the Company to repurchase its own Class A ordinary shares in
the form of ADSs with an aggregate value of up to US$140 million until December 31, 2023. This share repurchase program
was initially approved by the board of directors of the Company on
August 24, 2020, and an extension of
the term of this share repurchase program until December 31, 2022, was approved by the board of
directors of the Company on November
17, 2021. The share repurchase program shall be subject
to general business conditions, market conditions and applicable
securities regulations.
As of July 31, 2022, in
combination with the Company's historical and existing share
repurchase programs, the Company had repurchased its own Class A
ordinary shares in the form of ADSs with a total aggregate value of
approximately US$158.0 million.
Conference Call
The Company's management will host an earnings conference call
at 8:30 PM U.S. Eastern Time on
August 22, 2022 (8:30 AM Beijing/Hong Kong Time on August 23, 2022).
Dial-in details for the earnings conference call are as
follows:
|
United States (toll
free):
|
1-888-346-8982
|
|
Canada (toll
free):
|
1-855-669-9657
|
|
International:
|
1-412-902-4272
|
|
Hong Kong, China (toll
free):
|
800-905-945
|
|
Hong Kong,
China:
|
852-3018-4992
|
|
Mainland,
China:
|
400-120-1203
|
Participants should dial-in at least five minutes before the
scheduled start time and ask to be connected to the call for
"FinVolution Group."
Additionally, a live and archived webcast of the conference call
will be available on the Company's investor relations website at
https://ir.finvgroup.com.
A replay of the conference call will be accessible approximately
one hour after the conclusion of the live call until August 29, 2022, by dialing the following
telephone numbers:
|
United States (toll
free):
|
1-877-344-7529
|
|
Canada (toll
free):
|
855-669-9658
|
|
International:
|
1-412-317-0088
|
|
Replay Access
Code:
|
3371733
|
About FinVolution Group
FinVolution Group is a leading fintech platform in China connecting underserved individual
borrowers with financial institutions. Established in 2007, the
Company is a pioneer in China's
online consumer finance industry and has developed innovative
technologies and has accumulated in-depth experience in the core
areas of credit risk assessment, fraud detection, big data and
artificial intelligence. The Company's platform, empowered by
proprietary cutting-edge technologies, features a highly automated
loan transaction process, which enables a superior user experience.
As of June 30, 2022, the Company had
over 149.3 million cumulative registered users.
For more information, please visit https://ir.finvgroup.com
Use of Non-GAAP Financial Measures
We use non-GAAP adjusted operating income, non-GAAP net profit
attributable to FinVolution Group,non-GAAP basic and diluted net
profit per share and per ADS which are non-GAAP financial measures,
in evaluating our operating results and for financial and
operational decision-making purposes. We believe that these
non-GAAP financial measures help identify underlying trends in our
business by excluding the impact of share-based compensation
expenses and expected discretionary measures. We believe that
non-GAAP financial measures 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.
Non-GAAP adjusted operating profit, non-GAAP basic and diluted
net profit per share and per ADS are not defined under U.S. GAAP
and is not presented in accordance with U.S. GAAP. These non-GAAP
financial measures have limitations as analytical tool, and when
assessing our operating performance, cash flows or our liquidity,
investors should not consider it in isolation, or as a substitute
for net income, cash flows provided by operating activities or
other consolidated statements of operation and cash flow data
prepared in accordance with U.S. GAAP. The Company encourages
investors and others to review our financial information in its
entirety and not rely on a single financial measure.
For more information on this non-GAAP financial measure, please
see the table captioned "Reconciliations of GAAP and Non-GAAP
results" set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts
into U.S. dollars at a specified rate 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 rate in effect as of June 30, 2022 as certified for customs purposes
by the Federal Reserve Bank of New
York.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates," "target,"
"confident" and similar statements. Such statements are based upon
management's current expectations and current market and operating
conditions and relate to events that involve known or unknown
risks, uncertainties and other factors, all of which are difficult
to predict and many of which are beyond the Company's control.
Forward-looking statements involve risks, uncertainties and other
factors that could cause actual results to differ materially from
those contained in any such statements. Potential risks and
uncertainties include, but are not limited to, uncertainties as to
the Company's ability to attract and retain borrowers and investors
on its marketplace, its ability to increase volume of loans
facilitated through the Company's marketplace, its ability to
introduce new loan products and platform enhancements, its ability
to compete effectively, laws, regulations and governmental policies
relating to the online consumer finance industry in China, general economic conditions in
China, and the Company's ability
to meet the standards necessary to maintain listing of its ADSs on
the NYSE, including its ability to cure any non-compliance with the
NYSE's continued listing criteria. Further information regarding
these and other risks, uncertainties or factors is included in the
Company's filings with the U.S. Securities and Exchange Commission.
All information provided in this press release is as of the date of
this press release, and FinVolution does not undertake any
obligation to update any forward-looking statement as a result of
new information, future events or otherwise, except as required
under applicable law.
For investor and media inquiries, please contact:
In China:
FinVolution Group
Head of Investor Relations
Jimmy Tan
Tel: +86 (21) 8030-3200 Ext. 8601
E-mail: ir@xinye.com
The Piacente Group, Inc.
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: finv@tpg-ir.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: finv@tpg-ir.com
|
FinVolution Group
UNAUDITED INTERIM
CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in
thousands, except share data, or otherwise noted)
|
|
|
As of December
31,
|
|
As of June
30,
|
|
2021
|
|
2022
|
|
RMB
|
|
RMB
|
USD
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
4,418,127
|
|
4,277,291
|
638,583
|
|
Restricted
cash
|
4,073,414
|
|
3,791,647
|
566,078
|
|
Short-term
investments
|
1,204,901
|
|
907,300
|
135,456
|
|
Investments
|
971,117
|
|
1,022,468
|
152,650
|
|
Quality assurance
receivable, net of credit loss allowance for
quality assurance receivable of RMB239,506
and
RMB289,486 as of
December 31, 2021 and June 30, 2022,
respectively
|
931,798
|
|
1,237,150
|
184,702
|
|
Intangible
assets
|
98,947
|
|
98,692
|
14,734
|
|
Property, equipment
and software, net
|
112,397
|
|
102,767
|
15,343
|
|
Loans receivable, net
of credit loss allowance for loans receivable
of RMB427,873 and RMB386,602 as of December 31, 2021 and
June 30, 2022, respectively
|
1,982,276
|
|
2,526,379
|
377,178
|
|
Accounts receivable
and contract assets, net of credit loss
allowance for accounts receivable and contract assets of
RMB250,696 and RMB362,451 as of December 31, 2021 and
June 30, 2022, respectively
|
1,890,846
|
|
2,114,238
|
315,647
|
|
Deferred tax
assets
|
455,741
|
|
774,401
|
115,615
|
|
Right of use
assets
|
49,138
|
|
33,334
|
4,977
|
|
Prepaid expenses and
other assets
|
1,899,438
|
|
2,705,737
|
403,956
|
|
Goodwill
|
50,411
|
|
50,411
|
7,526
|
|
Total
assets
|
18,138,551
|
|
19,641,815
|
2,932,445
|
|
Liabilities and
Shareholders' Equity
|
|
|
Deferred guarantee
income
|
1,089,503
|
|
1,416,140
|
211,424
|
|
Liability from quality
assurance commitment
|
3,188,561
|
|
3,286,946
|
490,728
|
|
Payroll and welfare
payable
|
252,918
|
|
192,674
|
28,765
|
|
Taxes
payable
|
200,648
|
|
198,354
|
29,613
|
|
Funds payable to
investors of consolidated trusts
|
1,795,640
|
|
2,096,450
|
312,992
|
|
Contract
liability
|
8,436
|
|
6,239
|
931
|
|
Deferred tax
liabilities
|
137,632
|
|
173,630
|
25,922
|
|
Accrued expenses and
other liabilities
|
722,247
|
|
839,753
|
125,372
|
|
Leasing
liabilities
|
33,356
|
|
22,157
|
3,308
|
|
Total
liabilities
|
7,428,941
|
|
8,232,343
|
1,229,055
|
|
Commitments and
contingencies
|
|
|
|
|
|
FinVolution Group
Shareholders' equity
|
|
|
|
|
|
Ordinary
shares
|
103
|
|
103
|
16
|
|
Additional paid-in
capital
|
5,694,733
|
|
5,715,772
|
853,342
|
|
Treasury
stock
|
(324,171)
|
|
(444,165)
|
(66,312)
|
|
Statutory
reserves
|
610,403
|
|
610,403
|
91,131
|
|
Accumulated other
comprehensive income
|
(16,769)
|
|
31,531
|
4,707
|
|
Retained
Earnings
|
4,690,951
|
|
5,434,341
|
811,326
|
|
Total FinVolution
Group shareholders' equity
|
10,655,250
|
|
11,347,985
|
1,694,210
|
|
Non-controlling
interest
|
54,360
|
|
61,487
|
9,180
|
|
Total shareholders'
equity
|
10,709,610
|
|
11,409,472
|
1,703,390
|
|
Total liabilities
and shareholders' equity
|
18,138,551
|
|
19,641,815
|
2,932,445
|
|
FinVolution Group
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(All amounts
in thousands, except share data, or otherwise noted)
|
|
|
|
|
|
|
For the Three Months
Ended June 30,
|
|
|
For the Six Months
Ended June 30,
|
|
2021
|
|
2022
|
|
|
2021
|
|
2022
|
|
RMB
|
|
RMB
|
USD
|
|
|
RMB
|
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Loan facilitation
service fees
|
952,405
|
|
1,052,129
|
157,079
|
|
|
1,714,030
|
|
2,053,492
|
306,578
|
|
Post-facilitation
service fees
|
299,613
|
|
482,790
|
72,079
|
|
|
526,044
|
|
941,226
|
140,521
|
|
Guarantee
income
|
665,706
|
|
709,506
|
105,926
|
|
|
1,324,887
|
|
1,321,628
|
197,314
|
|
Net
interest income
|
308,499
|
|
282,934
|
42,241
|
|
|
588,917
|
|
552,056
|
82,420
|
|
Other
Revenue
|
157,877
|
|
138,629
|
20,697
|
|
|
343,115
|
|
244,380
|
36,485
|
|
Net
revenue
|
2,384,100
|
|
2,665,988
|
398,022
|
|
|
4,496,993
|
|
5,112,782
|
763,318
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Origination,
servicing expenses and other cost of
revenue
|
(455,004)
|
|
(529,675)
|
(79,078)
|
|
|
(868,058)
|
|
(1,027,379)
|
(153,384)
|
|
Sales and marketing
expenses
|
(473,194)
|
|
(327,149)
|
(48,842)
|
|
|
(807,410)
|
|
(659,129)
|
(98,405)
|
|
Research and
development expenses
|
(104,647)
|
|
(115,967)
|
(17,313)
|
|
|
(198,431)
|
|
(228,370)
|
(34,095)
|
|
General and
administrative expenses
|
(126,129)
|
|
(95,808)
|
(14,304)
|
|
|
(238,754)
|
|
(186,947)
|
(27,910)
|
|
Provision for accounts
receivable and contract
assets
|
(47,440)
|
|
(94,438)
|
(14,099)
|
|
|
(87,228)
|
|
(167,488)
|
(25,005)
|
|
Provision for loans
receivable
|
(81,894)
|
|
(59,129)
|
(8,828)
|
|
|
(100,717)
|
|
(158,597)
|
(23,678)
|
|
Credit losses for
quality assurance commitment
|
(391,116)
|
|
(787,136)
|
(117,516)
|
|
|
(835,992)
|
|
(1,446,145)
|
(215,904)
|
|
Total operating
expenses
|
(1,679,424)
|
|
(2,009,302)
|
(299,980)
|
|
|
(3,136,590)
|
|
(3,874,055)
|
(578,381)
|
|
Operating
profit
|
704,676
|
|
656,686
|
98,042
|
|
|
1,360,403
|
|
1,238,727
|
184,937
|
|
Other income,
net
|
25,831
|
|
46,917
|
7,004
|
|
|
68,528
|
|
97,766
|
14,596
|
|
Profit before income
tax expense
|
730,507
|
|
703,603
|
105,046
|
|
|
1,428,931
|
|
1,336,493
|
199,533
|
|
Income tax
expenses
|
(110,074)
|
|
(118,416)
|
(17,679)
|
|
|
(215,745)
|
|
(217,047)
|
(32,404)
|
|
Net
profit
|
620,433
|
|
585,187
|
87,367
|
|
|
1,213,186
|
|
1,119,446
|
167,129
|
|
Net profit
attributable to non-controlling interest
shareholders
|
(5,950)
|
|
3,977
|
594
|
|
|
(3,567)
|
|
3,573
|
533
|
|
Net profit
attributable to FinVolution Group
|
626,383
|
|
581,210
|
86,773
|
|
|
1,216,753
|
|
1,115,873
|
166,596
|
|
Foreign currency
translation adjustment, net of nil tax
|
(16,472)
|
|
50,846
|
7,591
|
|
|
(1,876)
|
|
48,300
|
7,211
|
|
Total comprehensive
income attributable
to FinVolution
Group
|
609,911
|
|
632,056
|
94,364
|
|
|
1,214,877
|
|
1,164,173
|
173,807
|
|
Weighted average
number of ordinary shares used in
computing net income per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1,422,064,339
|
|
1,422,833,623
|
1,422,833,623
|
|
|
1,413,726,359
|
|
1,427,265,435
|
1,427,265,435
|
|
Diluted
|
1,487,138,052
|
|
1,470,156,102
|
1,470,156,102
|
|
|
1,481,517,231
|
|
1,472,303,208
|
1,472,303,208
|
|
Net profit per share
attributable to FinVolution
Group's
ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.44
|
|
0.41
|
0.06
|
|
|
0.86
|
|
0.78
|
0.12
|
|
Diluted
|
0.42
|
|
0.40
|
0.06
|
|
|
0.82
|
|
0.76
|
0.11
|
|
Net profit per ADS
attributable to FinVolution
Group's
ordinary shareholders (one ADS equal
five
ordinary shares)
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
2.20
|
|
2.04
|
0.30
|
|
|
4.30
|
|
3.91
|
0.58
|
|
Diluted
|
2.11
|
|
1.98
|
0.30
|
|
|
4.11
|
|
3.79
|
0.57
|
|
FinVolution Group
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts
in thousands, except share data, or otherwise noted)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2021
|
|
2022
|
|
2021
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
Net cash provided by/
(used in)
operating activities
|
119,460
|
|
(323,259)
|
|
(48,261)
|
|
274,351
|
|
(358,411)
|
|
(53,509)
|
|
|
Net cash provided
by investing
activities
|
980,789
|
|
1,942,342
|
|
289,984
|
|
1,675,628
|
|
199,167
|
|
29,734
|
|
|
Net cash
provided by/ (used
in)
financing
activities
|
(455,120)
|
|
(695,030)
|
|
(103,765)
|
|
(1,324,557)
|
|
(293,802)
|
|
(43,863)
|
|
|
Effect of exchange rate
changes on
cash and cash equivalents
|
(18,286)
|
|
32,539
|
|
4,857
|
|
(8,663)
|
|
30,443
|
|
4,545
|
|
|
Net increase in cash,
cash equivalent
and restricted cash
|
626,843
|
|
956,592
|
|
142,815
|
|
616,759
|
|
(422,603)
|
|
(63,093)
|
|
|
Cash, cash equivalent
and restricted
cash at beginning of period
|
6,106,317
|
|
7,112,346
|
|
1,061,846
|
|
6,116,401
|
|
8,491,541
|
|
1,267,754
|
|
|
Cash, cash equivalent
and restricted
cash at end of period
|
6,733,160
|
|
8,068,938
|
|
1,204,661
|
|
6,733,160
|
|
8,068,938
|
|
1,204,661
|
|
|
FinVolution Group
UNAUDITED
Reconciliation of GAAP and Non-GAAP Results
(All amounts
in thousands, except share data, or otherwise noted)
|
|
|
For the Three Months Ended June
30,
|
For the Six Months Ended June
30,
|
|
2021
|
2022
|
2021
|
2022
|
|
RMB
|
RMB
|
USD
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
Net
Revenues
|
2,384,100
|
2,665,988
|
398,022
|
4,496,993
|
5,112,782
|
763,318
|
|
Less: total operating
expenses
|
(1,679,424)
|
(2,009,302)
|
(299,980)
|
(3,136,590)
|
(3,874,055)
|
(578,381)
|
|
Operating
Income
|
704,676
|
656,686
|
98,042
|
1,360,403
|
1,238,727
|
184,937
|
|
Add: share-based
compensation expenses
|
21,413
|
24,792
|
3,701
|
36,852
|
44,890
|
6,702
|
|
Non-GAAP adjusted
operating income
|
726,089
|
681,478
|
101,743
|
1,397,255
|
1,283,617
|
191,639
|
|
|
|
|
|
|
|
|
Operating
Margin
|
29.6 %
|
24.6 %
|
24.6 %
|
30.3 %
|
24.2 %
|
24.2 %
|
|
Non-GAAP operating
margin
|
30.5 %
|
25.6 %
|
25.6 %
|
31.1 %
|
25.1 %
|
25.1 %
|
|
Non-GAAP adjusted
operating income
|
726,089
|
681,478
|
101,743
|
1,397,255
|
1,283,617
|
191,639
|
|
Add: other income,
net
|
25,831
|
46,917
|
7,004
|
68,528
|
97,766
|
14,596
|
|
Less: income tax
expenses
|
(110,074)
|
(118,416)
|
(17,679)
|
(215,745)
|
(217,047)
|
(32,404)
|
|
Non-GAAP net
profit
|
641,846
|
609,979
|
91,068
|
1,250,038
|
1,164,336
|
173,831
|
|
Net profit attributable
to non-controlling interest
shareholders
|
(5,950)
|
3,977
|
594
|
(3,567)
|
3,573
|
533
|
|
Non-GAAP net profit
attributable to FinVolution
Group
|
647,796
|
606,002
|
90,474
|
1,253,605
|
1,160,763
|
173,298
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in
computing net income per share
|
|
|
|
|
|
|
|
Basic
|
1,422,064,339
|
1,422,833,623
|
1,422,833,623
|
1,413,726,359
|
1,427,265,435
|
1,427,265,435
|
|
Diluted
|
1,487,138,052
|
1,470,156,102
|
1,470,156,102
|
1,481,517,231
|
1,472,303,208
|
1,472,303,208
|
|
Non-GAAP net profit
per share attributable to
FinVolution Group's ordinary shareholders
|
|
|
|
|
|
|
|
Basic
|
0.45
|
0.43
|
0.06
|
0.88
|
0.81
|
0.12
|
|
Diluted
|
0.43
|
0.41
|
0.06
|
0.84
|
0.79
|
0.12
|
|
Non-GAAP net profit
per ADS attributable to
FinVolution Group's ordinary shareholders (one ADS
equal five ordinary shares)
|
|
|
|
|
|
|
|
Basic
|
2.26
|
2.13
|
0.32
|
4.41
|
4.07
|
0.61
|
|
Diluted
|
2.17
|
2.06
|
0.31
|
4.21
|
3.94
|
0.59
|
View original
content:https://www.prnewswire.com/news-releases/finvolution-group-reports-second-quarter-2022-unaudited-financial-results-301609968.html
SOURCE FinVolution Group