-2023 Full Year Total Transaction Volume reached
new record high of RMB194.3 billion,
up 10.8% compared to Fiscal Year 2022-
-2023 Full Year Net Revenues reached new record
high to RMB12.5 billion, up 12.7%
compared to Fiscal Year 2022-
-2023 Full Year International Transaction Volume
increased to RMB7.85 billion, up
84.7% compared to Fiscal Year 2022-
-2023 Full Year International Revenues increased
to RMB2.1 billion, up 85.9% compared
to Fiscal Year 2022 and contributing 17.0% of total net
revenues-
SHANGHAI, March 18,
2024 /PRNewswire/ -- FinVolution Group ("FinVolution"
or the "Company") (NYSE: FINV), a leading fintech platform, today
announced its unaudited financial results for the fourth quarter
and fiscal year ended December 31,
2023.
|
For the
Three Months Ended/As of
December 31,
|
YoY
Change
|
For Full
Year
Ended
December 31,
|
YoY
Change
|
|
2022
|
2023
|
|
2022
|
2023
|
|
|
Total Transaction
Volume (RMB in
billion)[1]
|
48.6
|
52.4
|
7.8 %
|
175.4
|
194.3
|
10.8 %
|
|
Transaction Volume
(China's
Mainland)[2]
|
47.2
|
50.1
|
6.1 %
|
171.1
|
186.4
|
8.9 %
|
|
Transaction Volume
(International)[3]
|
1.37
|
2.25
|
64.2 %
|
4.25
|
7.85
|
84.7 %
|
|
Total Outstanding
Loan Balance
(RMB in billion)
|
64.6
|
67.4
|
4.3 %
|
64.6
|
67.4
|
4.3 %
|
|
Outstanding Loan
Balance (China's
Mainland)[4]
|
63.8
|
66.1
|
3.6 %
|
63.8
|
66.1
|
3.6 %
|
|
Outstanding Loan
Balance
(International)[5]
|
0.80
|
1.26
|
57.5 %
|
0.80
|
1.26
|
57.5 %
|
Fourth Quarter 2023 China Market Operational
Highlights
- Cumulative registered users[6] reached 155.6 million
as of December 31, 2023, an increase
of 8.1% compared with December 31,
2022.
- Cumulative borrowers[7] for the China market reached 25.2 million as of
December 31, 2023, an increase of
6.8% compared with December 31,
2022.
- Number of unique borrowers[8] for the fourth quarter
of 2023 was 2.1 million, a decrease of 14.9% compared with the same
period of 2022.
- Transaction volume[2] reached RMB50.1 billion for the fourth quarter of 2023,
an increase of 6.1% compared with the same period of 2022.
- Transaction volume facilitated for repeat individual
borrowers[9] for the fourth quarter of 2023 was
RMB42.8 billion, an increase of 4.4%
compared with the same period of 2022.
- Outstanding loan balance[4] reached RMB66.1 billion as of December 31, 2023, an increase of 3.6% compared
with December 31, 2022.
- Average loan size[10] was RMB9,044 for the fourth quarter of 2023, compared
with RMB7,682 for the same period of
2022.
- Average loan tenure[11] was 8.2 months for the
fourth quarter of 2023, compared with 8.6 months for the same
period of 2022.
- 90 day+ delinquency ratio[12] was 1.93% as of
December 31, 2023, compared with
1.41% as of December 31, 2022.
Fourth Quarter 2023 International Market Operational
Highlights
- Cumulative registered users[13] reached 24.6 million
as of December 31, 2023, an increase
of 58.7% compared with December 31,
2022.
- Cumulative borrowers[14] for the international
market reached 4.8 million as of December
31, 2023, an increase of 41.2% compared with December 31, 2022.
- Number of unique borrowers[15] for the fourth
quarter of 2023 was 0.87 million, an increase of 17.6%
compared with the same period of 2022.
- Number of new borrowers[16] for the fourth quarter
of 2023 was 0.33 million, an increase of 2.1% compared with the
same period of 2022.
- Transaction volume[3] reached RMB2.25 billion for the fourth quarter of 2023,
an increase of 64.2% compared with the same period of 2022.
- Outstanding loan balance[5] reached RMB1.26 billion as of December 31, 2023, an increase of 57.5% compared
with December 31, 2022.
- International business revenue was RMB602.1 million (US$84.8
million) for the fourth quarter of 2023, an increase of
52.5% compared with the same period of 2022, representing 18.7% of
total revenue for the fourth quarter of 2023.
Fourth Quarter 2023 Financial Highlights
- Net revenue was RMB3,223.6
million (US$454.0 million) for
the fourth quarter of 2023, an increase of 5.7% from RMB3,050.0 million for the same period of
2022.
- Net profit was RMB528.8 million
(US$74.5 million) for the fourth
quarter of 2023, a decrease of 4.9% from RMB556.3 million for the same period of
2022.
- Non-GAAP adjusted operating income[17], which
excludes share-based compensation expenses before tax, was
RMB547.0 million (US$77.0 million) for the fourth quarter
of 2023, a decrease of 14.2% from RMB637.8
million for the same period of 2022.
- Diluted net profit per American depositary share ("ADS") was
RMB1.92 (US$0.27) and diluted net profit per share was
RMB0.38 (US$0.05) for the fourth quarter of 2023,
remaining unchanged compared with the same period of 2022. Non-GAAP
diluted net profit per ADS was RMB2.04 (US$0.29)
and non-GAAP diluted net profit per share was RMB0.41 (US$0.06)
for the fourth quarter of 2023, an increase of 2.5% compared with
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
excluding loans delinquent for more than 180 days from such
date.
|
|
[5]
Outstanding loan balance (international) as of any date refers to
the balance of outstanding loans in the international markets'
excluding loans delinquent for more than 30 days from such
date.
|
|
[6]
On a cumulative basis, the total number of users in China's
Mainland market registered on the Company's platforms as of
December 31, 2023.
|
|
[7]
On a cumulative basis, the total number of borrowers in China's
Mainland market on the Company's platform as of December 31,
2023.
|
|
[8]
Represents the total number of borrowers in China's Mainland who
have successfully borrowed on the Company's 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 December 31, 2023.
|
|
[14] On a cumulative basis, the
total number of borrowers on the Company's platforms outside
China's Mainland market during the period presented.
|
|
[15] Represents the total number of
borrowers outside China's Mainland who have successfully borrowed
on the Company platforms 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, "We continued to grow our business across the board
despite evolving macroeconomic challenges. Total transaction volume
for full year 2023 reached RMB194.3
billion while total outstanding loan balance climbed to
RMB67.4 billion, representing
year-over-year increases of 10.8% and 4.3% respectively.
"Our international business grew exceptionally well in 2023,
propelled by our effective strategy of pursuing sustained growth
domestically in tandem with rapid growth overseas. International
transaction volume for full-year 2023 soared to RMB7.85 billion and outstanding loan balance rose
to RMB1.26 billion, representing
increases of 84.7% and 57.5%, respectively. This accelerated growth
drove international revenue to RMB2,136.9
million (US$301.0 million) for
the full year 2023, up 85.9% year-over-year, representing 17.0% of
total revenue," concluded Mr. Li.
Mr. Jiayuan Xu, FinVolution's
Chief Financial Officer, continued, "Our strong full-year financial
results speak for our outstanding strategic execution throughout
2023. Full-year net revenues increased to RMB12,547.4 million (US$1,767.3 million) and net profit reached
RMB2,383.5 million (US$335.7 million), up 12.7% and 4.5%,
respectively, year-over-year. Our total liquidity position as of
December 31, 2023, stood at
RMB7,930.1 million (US$1,116.9 million), representing a
year-over-year increase of 12.3%.
"Moreover, we strove to continuously optimize shareholder
returns through our capital return program. For full-year 2023, we
deployed a total of approximately US$160.0
million in dividend distributions and share repurchases
representing a capital return of 48.5% of the Company's net income
for fiscal year 2023, demonstrating our steadfast commitment to
enhancing shareholder value," concluded Mr. Xu.
Fourth Quarter 2023 Financial Results
Net revenue for the fourth quarter of 2023 increased by
5.7% to RMB3,223.6 million
(US$454.0 million) from RMB3,050.0 million for the same period of 2022,
primarily due to the increase in guarantee income.
Loan facilitation service fees decreased by 8.4% to
RMB1,107.4 million (US$156.0 million) for the fourth quarter of 2023
from RMB1,208.6 million for the same
period of 2022. This decrease was primarily due to the decrease in
service fee rates, partially offset by the increase in transaction
volume.
Post-facilitation service fees maintained relatively
stable at RMB495.4 million
(US$69.8 million) for the fourth
quarter of 2023 from RMB496.4 million
for the same period of 2022, as the result of the increase in
outstanding loans served by the Company and the rolling impact of
deferred transaction fees.
Guarantee income increased by 37.7% to RMB1,267.5 million (US$178.5 million) for the fourth quarter of 2023
from RMB920.6 million for the same
period of 2022. This increase was primarily due to the increased
outstanding loan balance of off-balance sheet loans, higher
guarantee rates 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 22.3% to RMB227.4 million (US$32.0 million) for the fourth quarter of
2023, from RMB292.5 million for the
same period of 2022, due to the decrease in loan volume and
outstanding loan balances of on-balance sheet loans.
Other revenue decreased by 4.6% to RMB125.8 million (US$17.7 million) for the fourth quarter of
2023 from RMB131.8 million for the
same period of 2022, primarily due to the disposal of a
pilot-run business.
Origination, servicing expenses and other costs of
revenue increased by 9.1% to RMB563.1 million (US$79.3 million) for the fourth quarter of
2023 from RMB516.2 million for the
same period of 2022, primarily due to the increase in
facilitation costs and loan collection expenses as a result of
higher transaction volume.
Sales and marketing expenses remained relatively stable
at RMB491.4 million (US$69.2 million) for the fourth quarter of
2023, compared with RMB490.7 million
for the same period of 2022, as we maintained our proactive efforts
in acquiring better quality borrowers in both China and the international markets.
Research and development expenses decreased by 7.2% to
RMB127.6 million (US$18.0 million) for the fourth quarter of
2023 from RMB137.5 million for the
same period of 2022, due to the increase in efficiency for
technology development.
General and administrative expenses maintained relatively
stable at RMB115.2 million
(US$16.2 million) for the fourth
quarter of 2023 from RMB114.4 million
for the same period of 2022 as a result of stable operating
efficiency.
Provision for accounts receivable and contract assets
decreased by 67.6% to RMB36.4 million
(US$5.1 million) for the fourth
quarter of 2023 from RMB112.5 million
for the same period of 2022, due to the decrease in provision from
other third-party platforms.
Provision for loans receivable decreased by 14.6% to
RMB107.6 million (US$15.2 million) for the fourth quarter of
2023, from RMB126.0 million for the
same period of 2022, primarily due to the decrease in loan volume
and outstanding loan balances of on-balance sheet loans, partially
offset by the rise in delinquency rate.
Credit losses for quality assurance commitment increased
by 35.6% to RMB1,269.5 million
(US$178.8 million) for the
fourth quarter of 2023 compared with RMB935.9 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 the international markets.
Operating profit decreased by 16.9% to RMB512.8 million (US$72.2 million) for the fourth quarter of
2023 from RMB616.8 million for the
same period of 2022.
Non-GAAP adjusted operating income, which excludes
share-based compensation expenses before tax, was RMB547.0 million (US$77.0
million) for the fourth quarter of 2023, representing a
decrease of 14.2% from RMB637.8
million for the same period of 2022.
Other income increased by 4.8% to RMB67.6 million (US$9.5
million) for the fourth quarter of 2023 from RMB64.5 million for the same period of 2022,
mainly due to the additional gains from increased investment in
investment products and interest income.
Income tax expense was RMB51.6
million (US$7.3 million) for
the fourth quarter of 2023, compared with RMB125.0 million for the same period of 2022.
This decrease was mainly due to the decrease in pre-tax profit and
the change in effective tax-rate in the fourth quarter.
Net profit was RMB528.8
million (US$74.5 million) for
the fourth quarter of 2023, compared with RMB556.3 million for the same period of 2022.
Net profit attributable to ordinary shareholders of the
Company was RMB524.6 million
(US$73.9 million) for the fourth
quarter of 2023, compared with RMB551.5
million for the same period of 2022.
Diluted net profit per ADS was RMB1.92 (US$0.27)
and diluted net profit per share was RMB0.38 (US$0.05)
for the fourth quarter of 2023, which remained unchanged compared
with the same period of 2022. Non-GAAP diluted net profit per
ADS was RMB2.04 (US$0.29) and non-GAAP diluted net profit per
share was RMB0.41 (US$0.06) for the fourth quarter of 2023, an
increase of 2.5% compared with the same period of 2022. Each ADS
represents five Class A ordinary shares of the Company.
As of December 31, 2023, the
Company had cash and cash equivalents of RMB4,969.3 million (US$699.9 million) and short-term investments,
mainly in wealth management products and term deposit, of
RMB2,960.8 million (US$417.0 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
December 31, 2023:
Click here to view the
chart.
Fiscal Year 2023 Financial Results
Net revenue for 2023 increased by 12.7% to RMB12,547.4 million (US$1,767.3 million) from RMB11,134.2 million in 2022, primarily due to the
increase in loan facilitation service fees, post facilitation
service fees and the increase in guarantee income as a result of
the increase in transaction volume. The increase in net revenue was
partially offset by the decrease in the average rate of transaction
fees.
Loan facilitation service fees increased by 2.0% to
RMB4,520.5 million (US$636.7 million) for 2023 from RMB4,430.8 million in 2022, primarily due to the
increase in loan volume, partially offset by the decrease in
average rate of transaction fees.
Post-facilitation service fees increased by 2.1% to
RMB1,969.7 million (US$277.4 million) for 2023 from RMB1,929.9 million in 2022, primarily due to the
increase in outstanding loans served by the Company and the rolling
impact of deferred transaction fees, partially offset by the
decrease in the average rate of transaction fees.
Guarantee income increased by 46.2% to RMB4,479.0 million (US$630.9 million) for 2023 from RMB3,064.4 million in 2022. This increase was
primarily due to the increased outstanding loan balance of
off-balance sheet loans, higher guarantee rates 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 for 2023 decreased by 10.6% to
RMB1,049.4 million (US$147.8 million) compared with RMB1,174.2 million in 2022, due to the decrease
in loan volume and outstanding loan balances of on-balance sheet
loans.
Other revenue decreased by 1.1% to RMB528.9 million (US$74.5
million) for 2023 from RMB534.9
million in 2022, as a result of the disposal of a pilot-run
business.
Origination, servicing expenses and other cost of revenue
increased by 3.6% to RMB2,111.5
million (US$297.4 million) for
2023 from RMB2,038.6 million in 2022,
primarily due to the increase in facilitation costs and loan
collection expenses as a result of higher transaction volume.
Sales and marketing expenses increased by
12.0% to RMB1,887.4 million
(US$265.8 million) for 2023 from
RMB1,685.0 million in 2022, as a
result of proactive customer acquisition efforts focusing on
higher-quality borrowers in both domestic and international
markets.
Research and development expenses increased by 4.0% to
RMB511.0 million (US$72.0 million) for 2023, compared with
RMB491.5 million in 2022, primarily
due to the increased investment in technology development.
General and administrative expenses decreased by 2.9% to
RMB390.0 million (US$54.9 million) for 2023 from RMB401.7 million in 2022, mainly due to the
increase in operating efficiencies.
Provision for accounts receivable and contract assets
decreased by 35.0% to RMB253.9
million (US$35.8 million) for
2023, compared with RMB390.9 million
in 2022, due to the decrease in provision from other third-party
platforms.
Provision for loans receivables increased by 41.1% to
RMB586.8 million (US$82.7 million) for 2023, compared with
RMB415.9 million in 2022, primarily
due to the increase in loan volume in international markets.
Credit losses for quality assurance commitment increased
by 38.4% to RMB4,422.8 million
(US$622.9 million) for 2023, compared
with RMB3,195.2 million in 2022,
primarily due to the increase in loan volume and outstanding loan
balance.
Operating profit decreased by 5.2% to RMB2,383.9 million (US$335.8 million) for 2023 from RMB2,515.3 million in 2022.
Non-GAAP adjusted operating income, which excludes
share-based compensation expenses before tax, was RMB2,500.3 million (US$352.2 million) for 2023, representing a
decrease of 4.0% from RMB2,604.4
million in 2022.
Other income increased by 78.8% to RMB394.7 million (US$55.6
million) for 2023, from RMB220.7
million in 2022, primarily due to additional gains from
increased investment in investment products.
Income tax expenses were RMB395.1
million (US$55.6 million) for
2023, compared with RMB454.8 million
in 2022, mainly due to the change in the effective tax rate from
the same period last year.
Net profit was RMB2,383.5
million (US$335.7 million) for
2023, compared with RMB2,281.3
million in 2022.
Net profit attributable to ordinary shareholders of the
Company was RMB2,340.8 million
(US$329.7 million) for 2023, compared
with RMB2,266.4 million in 2022.
Shares Repurchase Update
For the fiscal year of 2023, the Company deployed a total of
US$97.6 million to repurchase its own
Class A ordinary shares in the form of ADSs in the market. As of
December 31, 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$280.0 million over a
period of six years.
Change of Management
The Board of Directors of the Company (the "Board") has
appointed Ms. Pingping Chen to
assume the role of President, effective March 18, 2024. She will serve as President and
Chief Compliance Officer of the Company while retaining her current
responsibilities across legal, compliance, human resources and
internal controls, which she has held since 2019. Ms. Chen was the
Chief Executive Officer of Pai Pai
Xin, from 2016 to 2018. Prior to that, she held the position
of Vice President of the Company, overseeing the legal, compliance,
government relations, and innovation departments from 2013 to 2016.
With this long and distinguished tenure at the Company, Ms. Chen
brings a wealth of valuable institutional knowledge and deep
experience to her new role. Ms. Chen received her master's degree
in law from Fudan University and her EMBA from the China Europe
International Business School.
Business Outlook
While the macroeconomic recovery continued to gain traction with
pockets of improvement in the beginning of 2024, uncertainties
persist in the markets in which we operate. The Company has
observed encouraging signs of recovery and will continue to closely
monitor macro conditions across our pan-Asian markets and remain
prudent in our business operations. Given this backdrop, the
Company currently expects its full-year 2024 transaction volume for
the China market to be in the
range of RMB195.7 billion to
RMB205.0 billion, representing
year-over-year growth of approximately 5.0% to 10.0%. At the same
time, the Company expects full-year 2024 transaction volume for its
international markets to be in the range of RMB9.4 billion to RMB11.0
billion, representing year-over-year growth of approximately
20.0% to 40.0%.
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
partners' 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 March
18, 2024 (8:30 a.m.
Beijing/Hong Kong Time on
March 19, 2024).
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 March 25, 2024, 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:
|
4318516
|
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 platforms, empowered by proprietary
cutting-edge technologies, features a highly automated loan
transaction process, which enables a superior user experience. As
of December 31, 2023, the Company had
over 180.2 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, and 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 income, non-GAAP operating margin,
non-GAAP net profit, non-GAAP net profit attributable to
FinVolution Group, and non-GAAP basic and diluted net profit per
share and per ADS are not defined under U.S. GAAP and are 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 RMB7.0999 to US$1.00, the rate in effect as of December 29, 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
Piacente Financial Communications
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: finv@tpg-ir.com
In the United States:
Piacente Financial Communications
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 December
31,
|
|
2022
|
|
2023
|
|
RMB
|
|
RMB
|
USD
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
3,636,380
|
|
4,969,319
|
699,914
|
|
Restricted
cash
|
2,842,707
|
|
1,800,071
|
253,535
|
|
Short-term
investments
|
3,427,020
|
|
2,960,821
|
417,023
|
|
Investments
|
1,084,084
|
|
1,135,133
|
159,880
|
|
Quality
assurance receivable, net of credit loss allowance for
quality assurance receivable of RMB374,304 and
RMB529,392 as of December 31, 2022 and December
31, 2023,
respectively
|
1,669,855
|
|
1,755,615
|
247,273
|
|
Intangible
assets
|
98,692
|
|
98,692
|
13,900
|
|
Property, equipment
and software, net
|
141,345
|
|
140,933
|
19,850
|
|
Loans receivable, net
of credit loss allowance for loans receivable
of RMB294,355 and RMB214,550 as of December 31, 2022
and
December 31, 2023,
respectively
|
2,136,432
|
|
1,127,388
|
158,789
|
|
Accounts receivable
and contract assets, net of credit loss
allowance for accounts receivable and contract assets
of
RMB496,918 and RMB310,394 as of December 31, 2022
and
December
31, 2023,
respectively
|
2,217,445
|
|
2,208,538
|
311,066
|
|
Deferred tax
assets
|
919,361
|
|
1,624,325
|
228,781
|
|
Right of use
assets
|
192,428
|
|
38,110
|
5,368
|
|
Prepaid expenses and
other assets
|
2,966,751
|
|
3,384,317
|
476,671
|
|
Goodwill
|
50,411
|
|
50,411
|
7,100
|
|
Total
assets
|
21,382,911
|
|
21,293,673
|
2,999,150
|
|
Liabilities and
Shareholders' Equity
|
|
|
Deferred guarantee
income
|
1,805,164
|
|
1,882,036
|
265,079
|
|
Liability from quality
assurance commitment
|
3,555,618
|
|
3,306,132
|
465,659
|
|
Payroll and welfare
payable
|
274,408
|
|
261,528
|
36,835
|
|
Taxes
payable
|
134,027
|
|
207,477
|
29,223
|
|
Short-term borrowing
loan
|
-
|
|
5,756
|
811
|
|
Funds payable to
investors of consolidated trusts
|
1,845,210
|
|
436,352
|
61,459
|
|
Contract
liability
|
5,109
|
|
5,109
|
720
|
|
Deferred tax
liabilities
|
232,188
|
|
340,608
|
47,974
|
|
Accrued expenses and
other liabilities
|
909,708
|
|
941,899
|
132,664
|
|
Leasing
liabilities
|
176,990
|
|
35,878
|
5,053
|
|
Total
liabilities
|
8,938,422
|
|
7,422,775
|
1,045,477
|
|
Commitments and
contingencies
|
|
|
|
|
|
FinVolution Group
Shareholders' equity
|
|
|
|
|
|
Ordinary
shares
|
103
|
|
103
|
15
|
|
Additional paid-in
capital
|
5,692,703
|
|
5,748,734
|
809,692
|
|
Treasury
stock
|
(568,595)
|
|
(1,199,683)
|
(168,972)
|
|
Statutory
reserves
|
698,401
|
|
762,472
|
107,392
|
|
Accumulated other
comprehensive income
|
52,237
|
|
80,006
|
11,267
|
|
Retained
Earnings
|
6,496,852
|
|
8,357,153
|
1,177,080
|
|
Total FinVolution
Group shareholders' equity
|
12,371,701
|
|
13,748,785
|
1,936,474
|
|
Non-controlling
interest
|
72,788
|
|
122,113
|
17,199
|
|
Total shareholders'
equity
|
12,444,489
|
|
13,870,898
|
1,953,673
|
|
Total liabilities
and shareholders' equity
|
21,382,911
|
|
21,293,673
|
2,999,150
|
|
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 December 31,
|
|
For the Year Ended
December 31,
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
RMB
|
|
RMB
|
USD
|
|
RMB
|
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenue:
|
|
|
|
|
|
|
|
|
|
|
Loan facilitation
service fees
|
1,208,636
|
|
1,107,434
|
155,979
|
|
4,430,778
|
|
4,520,504
|
636,700
|
|
Post-facilitation
service fees
|
496,434
|
|
495,431
|
69,780
|
|
1,929,913
|
|
1,969,705
|
277,427
|
|
Guarantee
income
|
920,570
|
|
1,267,515
|
178,526
|
|
3,064,440
|
|
4,478,995
|
630,853
|
|
Net
interest income
|
292,512
|
|
227,426
|
32,032
|
|
1,174,204
|
|
1,049,379
|
147,802
|
|
Other
Revenue
|
131,824
|
|
125,791
|
17,717
|
|
534,868
|
|
528,862
|
74,489
|
|
Net
revenue
|
3,049,976
|
|
3,223,597
|
454,034
|
|
11,134,203
|
|
12,547,445
|
1,767,271
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Origination, servicing expenses and other cost of
revenue
|
(516,223)
|
|
(563,142)
|
(79,317)
|
|
(2,038,624)
|
|
(2,111,515)
|
(297,401)
|
|
Sales and marketing
expenses
|
(490,735)
|
|
(491,381)
|
(69,210)
|
|
(1,685,022)
|
|
(1,887,442)
|
(265,841)
|
|
Research and
development expenses
|
(137,519)
|
|
(127,605)
|
(17,973)
|
|
(491,484)
|
|
(510,986)
|
(71,971)
|
|
General and
administrative expenses
|
(114,358)
|
|
(115,209)
|
(16,227)
|
|
(401,731)
|
|
(390,022)
|
(54,933)
|
|
Provision for accounts
receivable and contract
assets
|
(112,495)
|
|
(36,413)
|
(5,129)
|
|
(390,882)
|
|
(253,948)
|
(35,768)
|
|
Provision for loans
receivable
|
(125,969)
|
|
(107,562)
|
(15,150)
|
|
(415,902)
|
|
(586,843)
|
(82,655)
|
|
Credit losses for
quality assurance commitment
|
(935,903)
|
|
(1,269,514)
|
(178,807)
|
|
(3,195,220)
|
|
(4,422,802)
|
(622,939)
|
|
Total operating
expenses
|
(2,433,202)
|
|
(2,710,826)
|
(381,813)
|
|
(8,618,865)
|
|
(10,163,558)
|
(1,431,508)
|
|
Operating
profit
|
616,774
|
|
512,771
|
72,221
|
|
2,515,338
|
|
2,383,887
|
335,763
|
|
Other income,
net
|
64,524
|
|
67,633
|
9,526
|
|
220,693
|
|
394,698
|
55,592
|
|
Profit before income
tax expense
|
681,298
|
|
580,404
|
81,747
|
|
2,736,031
|
|
2,778,585
|
391,355
|
|
Income tax
expenses
|
(124,987)
|
|
(51,572)
|
(7,264)
|
|
(454,775)
|
|
(395,100)
|
(55,649)
|
|
Net
profit
|
556,311
|
|
528,832
|
74,483
|
|
2,281,256
|
|
2,383,485
|
335,706
|
|
Net profit
attributable to non-controlling interest
shareholders
|
4,836
|
|
4,273
|
602
|
|
14,874
|
|
42,650
|
6,007
|
|
Net profit
attributable to FinVolution Group
|
551,475
|
|
524,559
|
73,881
|
|
2,266,382
|
|
2,340,835
|
329,699
|
|
Foreign currency
translation adjustment, net of nil tax
|
(19,644)
|
|
8,855
|
1,247
|
|
69,006
|
|
(27,769)
|
(3,911)
|
|
Total comprehensive
income attributable
to FinVolution
Group
|
531,831
|
|
533,414
|
75,128
|
|
2,335,388
|
|
2,313,066
|
325,788
|
|
Weighted average
number of ordinary shares used in
computing net income per share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1,419,627,691
|
|
1,342,940,746
|
1,342,940,746
|
|
1,412,648,862
|
|
1,374,713,018
|
1,374,713,018
|
|
Diluted
|
1,445,075,313
|
|
1,367,430,282
|
1,367,430,282
|
|
1,454,291,316
|
|
1,402,947,561
|
1,402,947,561
|
|
Net profit per share
attributable to FinVolution
Group's ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.39
|
|
0.39
|
0.06
|
|
1.60
|
|
1.70
|
0.24
|
|
Diluted
|
0.38
|
|
0.38
|
0.05
|
|
1.56
|
|
1.67
|
0.24
|
|
Net profit per ADS
attributable to FinVolution
Group's ordinary shareholders (one ADS equal
five ordinary shares)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.94
|
|
1.95
|
0.28
|
|
8.02
|
|
8.51
|
1.20
|
|
Diluted
|
1.91
|
|
1.92
|
0.27
|
|
7.79
|
|
8.34
|
1.18
|
|
FinVolution
Group
|
|
UNAUDITED INTERIM
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(All amounts
in thousands, except share data, or otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
Net cash provided
by/(used in)
operating activities
|
301,407
|
|
56,150
|
|
7,909
|
|
268,833
|
|
1,413,423
|
|
199,076
|
|
Net cash provided
by/(used in)
investing
activities
|
(471,881)
|
|
(102,748)
|
|
(14,472)
|
|
(1,553,228)
|
|
1,413,490
|
|
199,086
|
|
Net cash
provided by/(used
in)
financing
activities
|
(445,808)
|
|
(1,042,781)
|
|
(146,873)
|
|
(795,856)
|
|
(2,559,051)
|
|
(360,435)
|
|
Effect of exchange rate
changes on
cash and cash equivalents
|
19,129
|
|
(4,975)
|
|
(700)
|
|
67,797
|
|
22,441
|
|
3,162
|
|
Net increase/(decrease)
in cash, cash
equivalent and
restricted cash
|
(597,153)
|
|
(1,094,354)
|
|
(154,136)
|
|
(2,012,454)
|
|
290,303
|
|
40,889
|
|
Cash, cash equivalent
and restricted
cash at beginning of period
|
7,076,240
|
|
7,863,744
|
|
1,107,585
|
|
8,491,541
|
|
6,479,087
|
|
912,560
|
|
Cash, cash equivalent
and restricted
cash at end of period
|
6,479,087
|
|
6,769,390
|
|
953,449
|
|
6,479,087
|
|
6,769,390
|
|
953,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December
31,
|
For the Year Ended December 31,
|
|
2022
|
2023
|
2022
|
2023
|
|
RMB
|
RMB
|
USD
|
RMB
|
RMB
|
USD
|
|
|
|
|
|
|
|
|
Net
Revenues
|
3,049,976
|
3,223,597
|
454,034
|
11,134,203
|
12,547,445
|
1,767,271
|
|
Less: total operating
expenses
|
(2,433,202)
|
(2,710,826)
|
(381,813)
|
(8,618,865)
|
(10,163,558)
|
(1,431,508)
|
|
Operating
Income
|
616,774
|
512,771
|
72,221
|
2,515,338
|
2,383,887
|
335,763
|
|
Add: share-based
compensation expenses
|
20,998
|
34,215
|
4,819
|
89,030
|
116,407
|
16,396
|
|
Non-GAAP adjusted
operating income
|
637,772
|
546,986
|
77,040
|
2,604,368
|
2,500,294
|
352,159
|
|
|
|
|
|
|
|
|
Operating
Margin
|
20.2 %
|
15.9 %
|
15.9 %
|
22.6 %
|
19.0 %
|
19.0 %
|
|
Non-GAAP operating
margin
|
20.9 %
|
17.0 %
|
17.0 %
|
23.4 %
|
19.9 %
|
19.9 %
|
|
Non-GAAP adjusted
operating income
|
637,772
|
546,986
|
77,040
|
2,604,368
|
2,500,294
|
352,159
|
|
Add: other income,
net
|
64,524
|
67,633
|
9,526
|
220,693
|
394,698
|
55,592
|
|
Less: income tax
expenses
|
(124,987)
|
(51,572)
|
(7,264)
|
(454,775)
|
(395,100)
|
(55,649)
|
|
Non-GAAP net
profit
|
577,309
|
563,047
|
79,302
|
2,370,286
|
2,499,892
|
352,102
|
|
Net profit attributable
to non-controlling interest
shareholders
|
4,836
|
4,273
|
602
|
14,874
|
42,650
|
6,007
|
|
Non-GAAP net profit
attributable to FinVolution
Group
|
572,473
|
558,774
|
78,700
|
2,355,412
|
2,457,242
|
346,095
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in
computing net income per share
|
|
|
|
|
|
|
|
Basic
|
1,419,627,691
|
1,342,940,746
|
1,342,940,746
|
1,412,648,862
|
1,374,713,018
|
1,374,713,018
|
|
Diluted
|
1,445,075,313
|
1,367,430,282
|
1,367,430,282
|
1,454,291,316
|
1,402,947,561
|
1,402,947,561
|
|
Non-GAAP net profit
per share attributable to
FinVolution Group's ordinary shareholders
|
|
|
|
|
|
|
|
Basic
|
0.40
|
0.42
|
0.06
|
1.67
|
1.79
|
0.25
|
|
Diluted
|
0.40
|
0.41
|
0.06
|
1.62
|
1.75
|
0.25
|
|
Non-GAAP net profit
per ADS attributable to
FinVolution Group's ordinary shareholders (one ADS
equal five ordinary shares)
|
|
|
|
|
|
|
|
Basic
|
2.02
|
2.08
|
0.29
|
8.34
|
8.94
|
1.26
|
|
Diluted
|
1.98
|
2.04
|
0.29
|
8.10
|
8.76
|
1.23
|
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content:https://www.prnewswire.com/news-releases/finvolution-group-reports-fourth-quarter-and-fiscal-year-2023-unaudited-financial-results-302091352.html
SOURCE FinVolution Group