-International transaction volume guidance for
full-year 2023 raised to RMB7.7
billion, representing year-over-year growth of around
80.0%-
-International transaction volume increased 100.0% year-over-year,
contributing 16.3% of total revenue-
-International revenue reached RMB502.5
million, a year-over-year increase of 112.1%-
SHANGHAI, Aug. 28,
2023 /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,
2023.
|
For the
Three Months Ended / As of
|
YoY
Change
|
|
June 30,
2022
|
June 30,
2023
|
|
Total Transaction
Volume (RMB in billions)[1]
|
41.5
|
47.3
|
14.0 %
|
|
Transaction Volume
(China's Mainland)[2]
|
40.6
|
45.5
|
12.1 %
|
|
Transaction Volume
(International)[3]
|
0.91
|
1.82
|
100.0 %
|
|
Total Outstanding
Loan Balance (RMB in billions)
|
56.4
|
63.7
|
12.9 %
|
|
Outstanding Loan
Balance (China's Mainland)[4]
|
55.9
|
62.6
|
12.0 %
|
|
Outstanding Loan
Balance (International)[5]
|
0.48
|
1.11
|
131.3 %
|
Second Quarter 2023 China Market Operational
Highlights
- Cumulative registered users[6] reached 149.4 million
as of June 30, 2023, an increase of
8.3% compared with June 30,
2022.
- Cumulative borrowers[7] for the China market reached
24.4 million as of June 30, 2023, an
increase of 7.0% compared with June 30,
2022.
- Number of unique borrowers[8] for the second quarter
of 2023 was 2.3 million, a decrease of 6.9% compared with the same
period of 2022.
- Transaction volume[2] reached RMB45.5 billion for the second quarter of
2023, an increase of 12.1% compared with the same period of
2022.
- Transaction volume facilitated for repeat individual
borrowers[9] for the second quarter of 2023 was
RMB40.3 billion, an increase of 11.9%
compared with the same period of 2022.
- Outstanding loan balance[4] reached RMB62.6 billion as of June
30, 2023, an increase of 12.0% compared with June 30, 2022.
- Average loan size[10] was RMB7,816 for the second quarter of 2023, compared
with RMB6,978 for the same period of
2022.
- Average loan tenure[11] was 8.4 months for the
second quarter of 2023, compared with 8.7 months for the same
period of 2022.
- 90 day+ delinquency ratio[12] was 1.68% as of
June 30, 2023, compared with 1.60% as
of June 30, 2022.
Second Quarter 2023 International Market Operational
Highlights
- Cumulative registered users[13] reached 19.9 million
as of June 30, 2023, an increase of
74.6% compared with June 30,
2022.
- Cumulative borrowers[14] for the international
market reached 4.0 million as of June 30,
2023, an increase of 48.1% compared with June 30, 2022.
- Number of unique borrowers[15] for the second
quarter of 2023 was 0.79 million, an increase of 23.4% compared
with the same period of 2022.
- Number of new borrowers[16] for the second quarter
of 2023 was 0.31 million, an increase of 22.0% compared with the
same period of 2022.
- Transaction volume[3] reached RMB1.82 billion for the second quarter of
2023, an increase of 100.0% compared with the same period of
2022.
- Proportion of transaction volume in the Indonesia market funded by local financial
institutions has increased to 65.2% for the second quarter of 2023
from 39.0% for the same period of 2022.
- Outstanding loan balance[5] reached
RMB1.11 billion as of June 30, 2023, an increase of 131.3% compared
with June 30, 2022.
- International business revenue was RMB502.5 million (US$69.3
million) for the second quarter of 2023, an increase of
112.1% compared with the same period of 2022, representing 16.3% of
total revenue for the second quarter of 2023.
Second Quarter 2023 Financial Highlights
- Net revenue was RMB3,075.7 million (US$424.2 million) for the second quarter of 2023,
an increase of 15.4% from RMB2,666.0
million for the same period of 2022.
- Net profit was RMB590.1 million
(US$81.4 million) for the second
quarter of 2023, an increase of 0.8% from RMB585.2 million for the same period of
2022.
- Non-GAAP adjusted operating income,[17] which
excludes share-based compensation expenses before tax, was
RMB606.9 million (US$83.7 million) for the second quarter of 2023,
a decrease of 10.9% from RMB681.5
million for the same period of 2022.
- Diluted net profit per American depositary share ("ADS") was
RMB1.95 (US$0.27) and diluted net profit per share was
RMB0.39 (US$0.05) for the second quarter of 2023, a
decrease of 1.5% from the same period of 2022. Non-GAAP diluted net
profit per ADS was RMB2.06
(US$0.28) and non-GAAP diluted net
profit per share was RMB0.41
(US$0.06) for the second quarter of
2023, which remained unchanged compared to the same period of 2022.
Each ADS of the Company represents five Class A ordinary shares of
the Company.
|
[1]
Represents the total transaction volume facilitated in China's
Mainland and the international markets on the Company's platforms
during the period presented.
|
|
[2] Represents our transaction volume
facilitated in China's Mainland during the period
presented.
|
|
[3]
Represents our transaction volume facilitated in international
markets outside China's Mainland during the period
presented.
|
|
[4] 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 the
given date.
|
|
[5]
Outstanding loan balance (international) as of any date refers to
the balance of outstanding loans in the international markets'
delinquent within 30 days from the given date.
|
|
[6] On a
cumulative basis, the total number of users in China's Mainland
market registered on the Company's platforms as of June 30,
2023.
|
|
[7] On a
cumulative basis, the total number of borrowers in China's Mainland
market on the Company's platform as of June 30, 2023.
|
|
[8]
Represents the total number of borrowers in China's Mainland who
have successfully borrowed on the Company platform during the
period presented.
|
|
[9]
Represents the transaction volume facilitated for the repeat
borrowers in China's Mainland who successfully completed their
transaction on the Company's platform during the period
presented.
|
|
[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] "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.
|
|
[13] On
a cumulative basis, the total number of users registered on the
Company's platforms outside China's Mainland market as of June 30,
2023.
|
|
[14] On
a cumulative basis, the total number of borrowers outside China's
Mainland market, on the Company's platforms during the period
presented.
|
|
[15] Represents the total number of
borrowers outside China's Mainland who have successfully borrowed
on the Company platform during the period presented.
|
|
[16] Represents the total number of
new borrowers outside China's Mainland whose transactions were
facilitated on the Company's platforms during the period
presented.
|
|
[17] Please refer to "UNAUDITED
Reconciliation of GAAP And Non-GAAP Results" for reconciliation
between GAAP and Non-GAAP adjusted operating income.
|
Mr. Tiezheng Li, Chief Executive
Officer of FinVolution, commented, "During the second quarter of
2023, total transaction volume reached RMB47.3 billion for a year-over-year increase of
14.0%, while our total outstanding loan balance reached
RMB63.7 billion, representing a
year-over-year increase of 12.9%.
"Our 'Local Focus, Global Outlook' strategy empowers our
progressive growth in the China market while we pursue rapid growth
internationally. In the second quarter, international transaction
volume reached RMB1.82 billion,
representing an increase of 100.0% year-over-year, while our
international outstanding loan balance reached RMB1.11 billion, representing an increase of
131.3% year-over-year. These achievements propelled our
international revenue to RMB502.5
million, up by 112.1% year-over-year and contributing 16.3%
of total revenue in the quarter," concluded Mr. Li.
Mr. Jiayuan Xu, FinVolution's
Chief Financial Officer, continued, "We are encouraged by the
financial results we achieved in the second quarter. Net revenue
for the second quarter reached RMB3,075.7
million (US$424.2 million),
representing a year-over-year increase of 15.4%. Our total
liquidity position as of the end of June
2023 further strengthened to RMB8,196.3 million (US$1,130.3 million), a year-over-year increase of
58.1% and a sequential increase of 5.8%.
Moreover, we remained committed to optimizing shareholder value
through our annual dividend policy and share repurchase policy. In
the first half of 2023, we deployed approximately US$46.3 million to repurchase our stock, which we
believe is an efficient use of our capital in the current
environment," concluded Mr. Xu.
Second Quarter 2023 Financial Results
Net revenue for the second quarter of 2023 increased by
15.4% to RMB3,075.7 million
(US$424.2 million) from RMB2,666.0 million for the same period of 2022,
primarily due to the increase in loan facilitation service fees,
post facilitation service fees and guarantee income.
Loan facilitation service fees increased by 6.0% to
RMB1,115.0 million (US$153.8 million) for the second quarter of 2023
from RMB1,052.1 million for the same
period of 2022. 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 1.1% to
RMB488.2 million (US$67.3 million) for the second quarter of 2023
from RMB482.8 million for the same
period of 2022, primarily due to the increase in outstanding loans
served by the Company and the rolling impact of deferred
transaction fees.
Guarantee income increased by 51.2 % to RMB1,072.9 million (US$148.0 million) for the second quarter of 2023
from RMB709.5 million for the same
period of 2022. This increase was primarily due to the increased
outstanding loan balance of off-balance sheet loans and the rolling
impact of deferred guarantee income. 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.
Net interest income decreased by 7.0% to
RMB263.0 million (US$36.3 million) for the second quarter of 2023,
from RMB282.9 million for the same
period of 2022, primarily due to the decrease in transaction volume
of consolidated trust accounts.
Other revenue decreased by 1.5% to RMB136.5 million (US$18.8
million) for the second quarter of 2023 from RMB138.6 million for the same period of
2022.
Origination, servicing expenses and other costs of
revenue decreased by 2.6% to RMB516.0 million (US$71.2
million) for the second quarter of 2023 from RMB529.7 million for the same period of
2022, primarily due to the reduction in loan collection
expenses as a result of higher percentage of repeat borrowers and
improved loan performance.
Sales and marketing expenses increased by 43.3% to
RMB468.8 million (US$64.7 million) for the second quarter of 2023
from RMB327.1 million for the same
period of 2022 as a result of proactive customer acquisition
efforts focusing on higher-quality borrowers in both China and
international markets.
Research and development expenses increased by
7.4% to RMB124.6 million
(US$17.2 million) for the second
quarter of 2023 from RMB116.0 million
for the same period of 2022, due to the increase in investments for
technology development.
General and administrative expenses decreased by 5.2% to
RMB90.8 million (US$12.5 million) for the second quarter of 2023
from RMB95.8 million for the same
period of 2022, primarily due to the increase in operating
efficiency.
Provision for accounts receivable and contract assets
decreased by 28.5% to RMB67.5 million
(US$9.3 million) for the second
quarter of 2023 from RMB94.4 million
for the same period of 2022, primarily due to the
better-than-expected default rate, partially offset by the
increases in loan volume and outstanding loan balances of
off-balance sheet loans.
Provision for loans receivable increased by 169.4% to
RMB159.2 million (US$22.0 million) for the second quarter of 2023,
from RMB59.1 million for the same
period of 2022, primarily due to the increase in loan volume and
outstanding loan balances in the international markets.
Credit losses for quality assurance commitment increased
by 36.4% to RMB1,073.5 million
(US$148.0 million) for the second
quarter of 2023 compared with RMB787.1
million for the same period of 2022. The increase was
primarily due to the increases in loan volume and outstanding
loan balances in both China and international markets.
Operating profit decreased by 12.4% to RMB575.4 million (US$79.4
million) for the second quarter of 2023 from RMB656.7 million for the same period of 2022.
Non-GAAP adjusted operating income, which excludes
share-based compensation expenses before tax, was RMB606.9 million (US$83.7
million) for the second quarter of 2023, representing a
decrease of 10.9% from RMB681.5
million for the same period of 2022.
Other income increased by 155.7% to RMB119.9 million (US$16.5
million) for the second quarter of 2023 from RMB46.9 million for the same period of 2022,
mainly due to the increases in gains from increased cash management
efficiency as well as government subsidies.
Income tax expense was RMB105.2 million
(US$14.5 million) for the second
quarter of 2023, compared with RMB118.4
million for the same period of 2022. This decrease was
mainly due to the decrease in pre-tax profit for the second
quarter.
Net profit was RMB590.1
million (US$81.4 million) for
the second quarter of 2023, compared with RMB585.2 million for the same period of 2022.
Net profit attributable to ordinary shareholders of the
Company was RMB554.4 million
(US$76.5 million) for the second
quarter of 2023, compared with RMB581.2
million for the same period of 2022.
Diluted net profit per ADS was RMB1.95 (US$0.27)
and diluted net profit per share was RMB0.39 (US$0.05)
for the second quarter of 2023, a decrease of 1.5% from the same
period of 2022. Non-GAAP diluted net profit per ADS was
RMB2.06 (US$0.28) and non-GAAP diluted net profit per
share was RMB0.41 (US$0.06) for the second quarter of 2023,
equivalent to the same period of 2022. Each ADS represents five
Class A ordinary shares of the Company.
As of June 30, 2023, the Company
had cash and cash equivalents of RMB4,724.9
million (US$651.6 million) and
short-term investments, mainly in wealth management products, of
RMB3,471.4 million (US$478.7 million).
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,
2023:
Click here to view the
chart.
Shares Repurchase 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.
During the first half of 2023, the Company has deployed a total
of US$46.3 million to repurchase its
own Class A ordinary shares in the form of ADSs in the market. As
of June 30, 2023, in combination with
the Company's historical and existing share repurchase programs,
the Company had cumulatively repurchased its own Class A ordinary
shares in the form of ADSs with a total aggregate value of
approximately US$228.6 million.
Business Outlook
The Company will continue to closely monitor changes in the
macro economy in the markets in
which it operates and remain
vigilant in its business operations. The Company announced that it
expects its China Mainland
transaction volume for the third quarter of 2023 to be around
RMB49.0 billion,
representing year-over-year
growth of approximately 10.4%. The Company also announced that it
expects its international markets transaction volume for the third
quarter of 2023 to be around RMB1.9
billion, representing year-over-year growth of approximately
72.7%.
Furthermore, the Company reiterates that it raised its
international transaction volume guidance for full year 2023 to RMB7.7 billion, representing year-over-year
growth of approximately 80.0%, while maintaining its China Mainland transaction volume guidance for
full year 2023 in the range of
RMB189.0 billion to RMB205.0 billion, representing year-over-year
growth of approximately 10.0% to 20.0%.
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
partner demands, all of which are subject to
change.
Conference Call
The Company's management will host an earnings conference call
at 8:30 p.m. U.S. Eastern Time on August 28, 2023 (8:30
a.m. Beijing/Hong Kong Time
on August 29, 2023).
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 September 04, 2023, by dialing the following
telephone numbers:
|
United States (toll
free):
|
+1-877-344-7529
|
|
Canada (toll
free):
|
+1-855-669-9658
|
|
International:
|
+1-412-317-0088
|
|
Replay Access
Code:
|
4673303
|
About FinVolution Group
FinVolution Group is a leading fintech platform with strong
brand recognition in China and the
international markets connecting borrowers of the young generation
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, 2023, the Company had over 169.3 million
cumulative registered users: across China, Indonesia and the
Philippines.
For more information, please visit https://ir.finvgroup.com
Use of Non-GAAP Financial Measures
We use non-GAAP adjusted operating income, non-GAAP operating
margin, non-GAAP net profit, 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 operating margin,
non-GAAP net 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 RMB7.2513 to US$1.00, the rate in effect as of June 30, 2023 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, IRC
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,
|
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
3,636,380
|
|
4,724,925
|
|
651,597
|
|
Restricted
cash
|
|
2,842,707
|
|
2,491,689
|
|
343,620
|
|
Short-term
investments
|
|
3,427,020
|
|
3,471,381
|
|
478,725
|
|
Investments
|
|
1,084,084
|
|
1,112,445
|
|
153,413
|
|
Quality
assurance receivable, net of credit loss allowance for
quality assurance receivable of RMB374,304 and
RMB420,018
as of December 31, 2022 and June 30, 2023,
respectively
|
|
1,669,855
|
|
1,660,999
|
|
229,062
|
|
Intangible
assets
|
|
98,692
|
|
98,692
|
|
13,610
|
|
Property, equipment
and software, net
|
|
141,345
|
|
169,118
|
|
23,322
|
|
Loans receivable, net
of credit loss allowance for loans receivable
of RMB294,355 and RMB267,488 as of December 31, 2022
and June 30, 2023, respectively
|
|
2,136,432
|
|
1,383,245
|
|
190,758
|
|
Accounts receivable
and contract assets, net of credit loss
allowance for accounts receivable and contract assets of
RMB496,918 and RMB422,359 as of December 31, 2022 and
June 30, 2023, respectively
|
|
2,217,445
|
|
2,202,510
|
|
303,740
|
|
Deferred tax
assets
|
|
919,361
|
|
1,315,170
|
|
181,370
|
|
Right of use
assets
|
|
192,428
|
|
172,496
|
|
23,788
|
|
Prepaid expenses and
other assets
|
|
2,966,751
|
|
2,852,409
|
|
393,365
|
|
Goodwill
|
|
50,411
|
|
50,411
|
|
6,952
|
|
Total
assets
|
|
21,382,911
|
|
21,705,490
|
|
2,993,322
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Deferred guarantee
income
|
|
1,805,164
|
|
1,831,396
|
|
252,561
|
|
Liability from quality
assurance commitment
|
|
3,555,618
|
|
3,758,572
|
|
518,331
|
|
Payroll and welfare
payable
|
|
274,408
|
|
202,380
|
|
27,909
|
|
Taxes
payable
|
|
134,027
|
|
134,299
|
|
18,521
|
|
Funds payable to
investors of consolidated trusts
|
|
1,845,210
|
|
1,185,798
|
|
163,529
|
|
Contract
liability
|
|
5,109
|
|
5,109
|
|
705
|
|
Deferred tax
liabilities
|
|
232,188
|
|
317,669
|
|
43,809
|
|
Accrued expenses and
other liabilities
|
|
909,708
|
|
998,688
|
|
137,725
|
|
Leasing
liabilities
|
|
176,990
|
|
159,287
|
|
21,967
|
|
Total
liabilities
|
|
8,938,422
|
|
8,593,198
|
|
1,185,057
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
FinVolution Group
Shareholders' equity
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
103
|
|
103
|
|
14
|
|
Additional paid-in
capital
|
|
5,692,703
|
|
5,714,469
|
|
788,061
|
|
Treasury
stock
|
|
(568,595)
|
|
(858,133)
|
|
(118,342)
|
|
Statutory
reserves
|
|
698,401
|
|
698,401
|
|
96,314
|
|
Accumulated other
comprehensive income
|
|
52,237
|
|
103,772
|
|
14,308
|
|
Retained
Earnings
|
|
6,496,852
|
|
7,330,707
|
|
1,010,951
|
|
Total FinVolution
Group shareholders' equity
|
|
12,371,701
|
|
12,989,319
|
|
1,791,306
|
|
Non-controlling
interest
|
|
72,788
|
|
122,973
|
|
16,959
|
|
Total shareholders'
equity
|
|
12,444,489
|
|
13,112,292
|
|
1,808,265
|
|
Total liabilities
and shareholders' equity
|
|
21,382,911
|
|
21,705,490
|
|
2,993,322
|
|
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,
|
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan facilitation
service fees
|
|
1,052,129
|
|
1,115,041
|
|
153,771
|
|
2,053,492
|
|
2,283,294
|
|
314,881
|
|
Post-facilitation
service fees
|
|
482,790
|
|
488,187
|
|
67,324
|
|
941,226
|
|
975,358
|
|
134,508
|
|
Guarantee
income
|
|
709,506
|
|
1,072,913
|
|
147,961
|
|
1,321,628
|
|
2,059,433
|
|
284,009
|
|
Net
interest income
|
|
282,934
|
|
263,047
|
|
36,276
|
|
552,056
|
|
548,679
|
|
75,666
|
|
Other
Revenue
|
|
138,629
|
|
136,490
|
|
18,823
|
|
244,380
|
|
259,557
|
|
35,795
|
|
Net
revenue
|
|
2,665,988
|
|
3,075,678
|
|
424,155
|
|
5,112,782
|
|
6,126,321
|
|
844,859
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination,
servicing expenses and other cost of
revenue
|
|
(529,675)
|
|
(515,960)
|
|
(71,154)
|
|
(1,027,379)
|
|
(1,028,388)
|
|
(141,821)
|
|
Sales and marketing
expenses
|
|
(327,149)
|
|
(468,833)
|
|
(64,655)
|
|
(659,129)
|
|
(865,951)
|
|
(119,420)
|
|
Research and
development expenses
|
|
(115,967)
|
|
(124,577)
|
|
(17,180)
|
|
(228,370)
|
|
(250,793)
|
|
(34,586)
|
|
General and
administrative expenses
|
|
(95,808)
|
|
(90,770)
|
|
(12,518)
|
|
(186,947)
|
|
(176,172)
|
|
(24,295)
|
|
Provision for accounts
receivable and contract
assets
|
|
(94,438)
|
|
(67,451)
|
|
(9,302)
|
|
(167,488)
|
|
(130,651)
|
|
(18,018)
|
|
Provision for loans
receivable
|
|
(59,129)
|
|
(159,189)
|
|
(21,953)
|
|
(158,597)
|
|
(302,505)
|
|
(41,717)
|
|
Credit losses for
quality assurance commitment
|
|
(787,136)
|
|
(1,073,451)
|
|
(148,036)
|
|
(1,446,145)
|
|
(2,054,134)
|
|
(283,278)
|
|
Total operating
expenses
|
|
(2,009,302)
|
|
(2,500,231)
|
|
(344,798)
|
|
(3,874,055)
|
|
(4,808,594)
|
|
(663,135)
|
|
Operating
profit
|
|
656,686
|
|
575,447
|
|
79,357
|
|
1,238,727
|
|
1,317,727
|
|
181,724
|
|
Other income,
net
|
|
46,917
|
|
119,901
|
|
16,536
|
|
97,766
|
|
202,678
|
|
27,951
|
|
Profit before income
tax expense
|
|
703,603
|
|
695,348
|
|
95,893
|
|
1,336,493
|
|
1,520,405
|
|
209,675
|
|
Income tax
expenses
|
|
(118,416)
|
|
(105,230)
|
|
(14,512)
|
|
(217,047)
|
|
(240,467)
|
|
(33,162)
|
|
Net
profit
|
|
585,187
|
|
590,118
|
|
81,381
|
|
1,119,446
|
|
1,279,938
|
|
176,513
|
|
Net
profit attributable to non-controlling interest
shareholders
|
|
3,977
|
|
35,684
|
|
4,921
|
|
3,573
|
|
29,620
|
|
4,085
|
|
Net profit
attributable to FinVolution Group
|
|
581,210
|
|
554,434
|
|
76,460
|
|
1,115,873
|
|
1,250,318
|
|
172,428
|
|
Foreign currency
translation adjustment, net of nil tax
|
|
50,846
|
|
80,703
|
|
11,129
|
|
48,300
|
|
51,535
|
|
7,107
|
|
Total comprehensive
income attributable
to FinVolution
Group
|
|
632,056
|
|
635,137
|
|
87,589
|
|
1,164,173
|
|
1,301,853
|
|
179,535
|
|
Weighted average
number of ordinary shares used in
computing net income per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1,422,833,623
|
|
1,387,090,179
|
|
1,387,090,179
|
|
1,427,265,435
|
|
1,398,767,090
|
|
1,398,767,090
|
|
Diluted
|
|
1,470,156,102
|
|
1,423,975,798
|
|
1,423,975,798
|
|
1,472,303,208
|
|
1,430,367,809
|
|
1,430,367,809
|
|
Net profit per share
attributable to FinVolution
Group's
ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.41
|
|
0.40
|
|
0.06
|
|
0.78
|
|
0.89
|
|
0.12
|
|
Diluted
|
|
0.40
|
|
0.39
|
|
0.05
|
|
0.76
|
|
0.87
|
|
0.12
|
|
Net profit per ADS
attributable to FinVolution
Group's
ordinary shareholders (one ADS equal
five
ordinary shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
2.04
|
|
2.00
|
|
0.28
|
|
3.91
|
|
4.47
|
|
0.62
|
|
Diluted
|
|
1.98
|
|
1.95
|
|
0.27
|
|
3.79
|
|
4.37
|
|
0.60
|
|
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,
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
Net cash provided
by/(used in)
operating activities
|
(323,259)
|
|
506,617
|
|
69,866
|
|
(358,411)
|
|
1,178,903
|
|
162,578
|
|
Net cash
provided by/(used in)
investing activities
|
1,942,342
|
|
(880,715)
|
|
(121,456)
|
|
199,167
|
|
925,171
|
|
127,587
|
|
Net cash
provided by/(used
in)
financing
activities
|
(695,030)
|
|
(518,630)
|
|
(71,522)
|
|
(293,802)
|
|
(1,405,346)
|
|
(193,806)
|
|
Effect of exchange rate
changes on
cash and cash equivalents
|
32,539
|
|
65,202
|
|
8,991
|
|
30,443
|
|
38,799
|
|
5,351
|
|
Net
increase/(decrease)
in cash, cash
equivalent and restricted cash
|
956,592
|
|
(827,526)
|
|
(114,121)
|
|
(422,603)
|
|
737,527
|
|
101,710
|
|
Cash, cash equivalent
and restricted
cash at beginning of period
|
7,112,346
|
|
8,044,140
|
|
1,109,338
|
|
8,491,541
|
|
6,479,087
|
|
893,507
|
|
Cash, cash equivalent
and restricted
cash at end of period
|
8,068,938
|
|
7,216,614
|
|
995,217
|
|
8,068,938
|
|
7,216,614
|
|
995,217
|
|
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,
|
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Revenues
|
|
2,665,988
|
|
3,075,678
|
|
424,155
|
|
5,112,782
|
|
6,126,321
|
|
844,859
|
|
Less: total operating
expenses
|
|
(2,009,302)
|
|
(2,500,231)
|
|
(344,798)
|
|
(3,874,055)
|
|
(4,808,594)
|
|
(663,135)
|
|
Operating
Income
|
|
656,686
|
|
575,447
|
|
79,357
|
|
1,238,727
|
|
1,317,727
|
|
181,724
|
|
Add: share-based
compensation expenses
|
|
24,792
|
|
31,457
|
|
4,338
|
|
44,890
|
|
51,816
|
|
7,146
|
|
Non-GAAP adjusted
operating income
|
|
681,478
|
|
606,904
|
|
83,695
|
|
1,283,617
|
|
1,369,543
|
|
188,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Margin
|
|
24.6 %
|
|
18.7 %
|
|
18.7 %
|
|
24.2 %
|
|
21.5 %
|
|
21.5 %
|
|
Non-GAAP operating
margin
|
|
25.6 %
|
|
19.7 %
|
|
19.7 %
|
|
25.1 %
|
|
22.4 %
|
|
22.4 %
|
|
Non-GAAP adjusted
operating income
|
|
681,478
|
|
606,904
|
|
83,695
|
|
1,283,617
|
|
1,369,543
|
|
188,870
|
|
Add: other income,
net
|
|
46,917
|
|
119,901
|
|
16,535
|
|
97,766
|
|
202,678
|
|
27,951
|
|
Less: income tax
expenses
|
|
(118,416)
|
|
(105,230)
|
|
(14,512)
|
|
(217,047)
|
|
(240,467)
|
|
(33,162)
|
|
Non-GAAP net
profit
|
|
609,979
|
|
621,575
|
|
85,718
|
|
1,164,336
|
|
1,331,754
|
|
183,659
|
|
Net profit attributable
to non-controlling interest
shareholders
|
|
3,977
|
|
35,684
|
|
4,921
|
|
3,573
|
|
29,620
|
|
4,085
|
|
Non-GAAP net profit
attributable to FinVolution
Group
|
|
606,002
|
|
585,891
|
|
80,797
|
|
1,160,763
|
|
1,302,134
|
|
179,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in
computing net income per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1,422,833,623
|
|
1,387,090,179
|
|
1,387,090,179
|
|
1,427,265,435
|
|
1,398,767,090
|
|
1,398,767,090
|
|
Diluted
|
|
1,470,156,102
|
|
1,423,975,798
|
|
1,423,975,798
|
|
1,472,303,208
|
|
1,430,367,809
|
|
1,430,367,809
|
|
Non-GAAP net profit
per share attributable to
FinVolution Group's ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.43
|
|
0.42
|
|
0.06
|
|
0.81
|
|
0.93
|
|
0.13
|
|
Diluted
|
|
0.41
|
|
0.41
|
|
0.06
|
|
0.79
|
|
0.91
|
|
0.13
|
|
Non-GAAP net profit
per ADS attributable to
FinVolution Group's ordinary shareholders (one ADS
equal five ordinary shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
2.13
|
|
2.11
|
|
0.29
|
|
4.07
|
|
4.65
|
|
0.64
|
|
Diluted
|
|
2.06
|
|
2.06
|
|
0.28
|
|
3.94
|
|
4.55
|
|
0.63
|
View original
content:https://www.prnewswire.com/news-releases/finvolution-group-reports-second-quarter-2023-unaudited-financial-results-301911331.html
SOURCE FinVolution Group