FinVolution Group 6-K, filed Nov 21, 2023
FinVolution Group (FINV)
About this 6-K
FinVolution Group filed this 6-K on November 21, 2023.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2023
Commission File Number: 001-38269
FinVolution Group
Building G1, No. 999 Dangui Road
Pudong New District, Shanghai 201203
The People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| FinVolution Group | ||
| By: | /s/ Jiayuan Xu | |
| Name: | Jiayuan Xu | |
| Title: | Chief Financial Officer | |
Date: November 21, 2023
Exhibit Index
Exhibit 99.1—Press Release—FinVolution Group Reports Third Quarter 2023 Unaudited Financial Results
Exhibit 99.1
FinVolution Group Reports Third Quarter 2023 Unaudited Financial Results
-International transaction volume increased 99.1% year-over-year, contributing 18.3% of total revenue-
-International revenue reached RMB584.8 million, a year-over-year increase of 67.3%-
SHANGHAI, Nov. 20, 2023 /PRNewswire/ – FinVolution Group (“FinVolution” or the “Company”) (NYSE: FINV), a leading fintech platform, today announced its unaudited financial results for the third quarter ended September 30, 2023.
| For the Three Months Ended / As of | YoY Change |
|||||||||||
| September 30, 2022 | September 30, 2023 | |||||||||||
| Total Transaction Volume (RMB in billions)1 |
45.5 | 51.3 | 12.7 | % | ||||||||
| Transaction Volume (China’s Mainland)2 |
44.4 | 49.1 | 10.6 | % | ||||||||
| Transaction Volume (International)3 |
1.11 | 2.21 | 99.1 | % | ||||||||
| Total Outstanding Loan Balance (RMB in billions) |
60.3 | 65.9 | 9.3 | % | ||||||||
| Outstanding Loan Balance (China’s Mainland)4 |
59.6 | 64.6 | 8.4 | % | ||||||||
| Outstanding Loan Balance (International)5 |
0.64 | 1.29 | 101.6 | % | ||||||||
Third Quarter 2023 China Market Operational Highlights
| • | Cumulative registered users6 reached 152.6 million as of September 30, 2023, an increase of 8.3% compared with September 30, 2022. |
| • | Cumulative borrowers7 for the China market reached 24.8 million as of September 30, 2023, an increase of 6.9% compared with September 30, 2022. |
| • | Number of unique borrowers8 for the third quarter of 2023 was 2.3 million, a decrease of 8.0% compared with the same period of 2022. |
| • | Transaction volume2 reached RMB49.1 billion for the third quarter of 2023, an increase of 10.6% compared with the same period of 2022. |
| • | Transaction volume facilitated for repeat individual borrowers9 for the third quarter of 2023 was RMB42.4 billion, an increase of 9.0% compared with the same period of 2022. |
| • | Outstanding loan balance4 reached RMB64.6 billion as of September 30, 2023, an increase of 8.4% compared with September 30, 2022. |
| • | Average loan size10 was RMB8,505 for the third quarter of 2023, compared with RMB7,202 for the same period of 2022. |
| • | Average loan tenure11 was 8.2 months for the third quarter of 2023, compared with 8.6 months for the same period of 2022. |
| • | 90 day+ delinquency ratio12 was 1.67% as of September 30, 2023, compared with 1.44% as of September 30, 2022. |
Third Quarter 2023 International Market Operational Highlights
| • | Cumulative registered users13 reached 22.5 million as of September 30, 2023, an increase of 69.2% compared with September 30, 2022. |
| • | Cumulative borrowers14 for the international market reached 4.4 million as of September 30, 2023, an increase of 41.9% compared with September 30, 2022. |
| • | Number of unique borrowers15 for the third quarter of 2023 was 0.93 million, an increase of 27.4% compared with the same period of 2022. |
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| • | Number of new borrowers16 for the third quarter of 2023 was 0.42 million, an increase of 27.3% compared with the same period of 2022. |
| • | Transaction volume3 reached RMB2.21 billion for the third quarter of 2023, an increase of 99.1% compared with the same period of 2022. |
| • | Proportion of transaction volume in the Indonesia market funded by the local financial institutions increased to 74.0% for the third quarter of 2023 from 54.9% for the same period of 2022. |
| • | Outstanding loan balance5 reached RMB1.29 billion as of September 30, 2023, an increase of 101.6% compared with September 30, 2022. |
| • | International business revenue was RMB584.8 million (US$80.2 million) for the third quarter of 2023, an increase of 67.3% compared with the same period of 2022, representing 18.3% of total revenue for the third quarter of 2023. |
Third Quarter 2023 Financial Highlights
| • | Net revenue was RMB3,197.5 million (US$438.3 million) for the third quarter of 2023, an increase of 7.6% from RMB2,971.4 million for the same period of 2022. |
| • | Net profit was RMB574.7 million (US$78.8 million) for the third quarter of 2023, a decrease of 5.1% from RMB605.5 million for the same period of 2022. |
| • | Non-GAAP adjusted operating income17, which excludes share-based compensation expenses before tax, was RMB583.8 million (US$80.0 million) for the third quarter of 2023, a decrease of 14.5% from RMB683.0 million for the same period of 2022. |
| • | Diluted net profit per American depositary share (“ADS”) was RMB2.05 (US$0.28) and diluted net profit per share was RMB0.41 (US$0.06) for the third quarter of 2023, which remained unchanged compared with the same period of 2022. Non-GAAP diluted net profit per ADS was RMB2.16 (US$0.30) and non-GAAP diluted net profit per share was RMB0.43 (US$0.06) for the third quarter of 2023, an increase of 1.4% 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 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 September 30, 2023. |
| 7 | On a cumulative basis, the total number of borrowers in China’s Mainland market on the Company’s platform as of September 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 September 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. |
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| 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 third quarter of 2023, total transaction volume reached RMB51.3 billion, representing a year-over-year increase of 12.7%, while our total outstanding loan balance reached RMB65.9 billion, representing a year-over-year increase of 9.3%.
“Our tactical approach of maintaining progressive growth in the China market while pursuing faster growth in the international markets has proven very effective under the uneven macro conditions in the markets where we operate. During the third quarter, international transaction volume reached RMB2.21 billion, representing a year-over-year increase of 99.1%, while outstanding loan balance reached RMB1.29 billion, rising 101.6% year-over-year. The increased international transaction volume and outstanding loan balance contributed the growth of our international revenue to RMB584.8 million, up 67.3% year-over-year and contribute 18.3% 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 third quarter. Net revenue for the third quarter reached RMB3,197.5 million (US$438.3 million), representing a year-over-year increase of 7.6%. Our total liquidity position as of the end of September 2023 reached RMB8,525.2 million (US$1,168.5 million), representing a year-over-year increase of 58.2% and a sequential increase of 4.0%.”
“Moreover, through our annual dividend policy and share repurchase policy, we have consistently optimized the returns for our shareholders. During the first nine months of 2023, we deployed approximately US$65.9 million to repurchase our stock, reflecting our strong commitment to enhancing shareholders value,” concluded Mr. Xu.
Third Quarter 2023 Financial Results
Net revenue for the third quarter of 2023 increased by 7.6% to RMB3,197.5 million (US$438.3 million) from RMB2,971.4 million for the same period of 2022, primarily due to the increase in guarantee income and post-loan facilitation service fees.
Loan facilitation service fees decreased by 3.3% to RMB1,129.8 million (US$154.8 million) for the third quarter of 2023 from RMB1,168.7 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 increased by 1.3% to RMB498.9 million (US$68.4 million) for the third quarter of 2023 from RMB492.3 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 40.1% to RMB1,152.0 million (US$157.9 million) for the third quarter of 2023 from RMB822.2 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.
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Net interest income decreased by 17.1% to RMB273.3 million (US$37.5 million) for the third quarter of 2023, from RMB329.6 million for the same period of 2022, primarily due to the decrease in transaction volume of consolidated trust accounts.
Other revenue decreased by 9.6% to RMB143.5 million (US$19.7 million) for the third quarter of 2023 from RMB158.7 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 5.1% to RMB520.0 million (US$71.3 million) for the third quarter of 2023 from RMB495.0 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 RMB530.1 million (US$72.7 million) for the third quarter of 2023, compared with RMB535.2 million for the same period of 2022, as a result of our proactive efforts for acquiring more new borrowers in both China and the international markets.
Research and development expenses increased by 5.6% to RMB132.6 million (US$18.2 million) for the third quarter of 2023 from RMB125.6 million for the same period of 2022, due to the increase in investments for technology development.
General and administrative expenses decreased by 1.8% to RMB98.6 million (US$13.5 million) for the third quarter of 2023 from RMB100.4 million for the same period of 2022, primarily due to the increase in operating efficiency.
Provision for accounts receivable and contract assets decreased by 21.6% to RMB86.9 million (US$11.9 million) for the third quarter of 2023 from RMB110.9 million for the same period of 2022, primarily due to the decrease in provision from other third-party platform.
Provision for loans receivable increased by 34.7% to RMB176.8 million (US$24.2 million) for the third quarter of 2023, from RMB131.3 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 35.2% to RMB1099.2 million (US$150.7 million) for the third quarter of 2023 compared with RMB813.2 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 16.1% to RMB553.4 million (US$75.8 million) for the third quarter of 2023 from RMB659.8 million for the same period of 2022.
Non-GAAP adjusted operating income, which excludes share-based compensation expenses before tax, was RMB583.8 million (US$80.0 million) for the third quarter of 2023, representing a decrease of 14.5% from RMB683.0 million for the same period of 2022.
Other income increased by 113.0% to RMB124.4 million (US$17.0 million) for the third quarter of 2023 from RMB58.4 million for the same period of 2022, mainly due to the additional gains from increased investment in investment products as well as government subsidies.
Income tax expense was RMB103.1 million (US$14.1 million) for the third quarter of 2023, compared with RMB112.7 million for the same period of 2022. This decrease was mainly due to the decrease in pre-tax profit for the third quarter.
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Net profit was RMB574.7 million (US$78.8 million) for the third quarter of 2023, compared with RMB605.5 million for the same period of 2022.
Net profit attributable to ordinary shareholders of the Company was RMB566.0 million (US$77.6 million) for the third quarter of 2023, compared with RMB599.0 million for the same period of 2022.
Diluted net profit per ADS was RMB2.05 (US$0.28) and diluted net profit per share was RMB0.41 (US$0.06) for the third quarter of 2023, which remained unchanged compared with the same period of 2022. Non-GAAP diluted net profit per ADS was RMB2.16 (US$0.30) and non-GAAP diluted net profit per share was RMB0.43 (US$0.06) for the third quarter of 2023, an increase of 1.4% compared with the same period of 2022. Each ADS represents five Class A ordinary shares of the Company.
As of September 30, 2023, the Company had cash and cash equivalents of RMB5,700.7 million (US$781.3 million) and short-term investments, mainly in wealth management products and term deposit, of RMB2,824.5 million (US$387.1 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 September 30, 2023:
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Shares Repurchase Update
On August 28, 2023, the board of directors of the Company approved the Company’s third repurchase program, 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$150 million, effective from August 29, 2023 until August 29, 2025.
During the first nine months of 2023, the Company deployed a total of US$65.9 million to repurchase its own Class A ordinary shares in the form of ADSs in the market. As of September 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$248.2 million.
Conference Call
The Company’s management will host an earnings conference call at 7:30 p.m. U.S. Eastern Time on November 20, 2023 (8:30 a.m. Beijing/Hong Kong Time on November 21, 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 November 27, 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: | 2339865 |
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 September 30, 2023, the Company had over 175.0 million cumulative registered users across China, Indonesia and the Philippines.
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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 RMB7.2960 to US$1.00, the rate in effect as of September 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.
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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
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FinVolution Group
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share data, or otherwise noted)
| As of December 31, | As of September 30, | |||||||||||
| 2022 | 2023 | |||||||||||
| RMB | RMB | USD | ||||||||||
| Assets |
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| Cash and cash equivalents |
3,636,380 | 5,700,722 | 781,349 | |||||||||
| Restricted cash |
2,842,707 | 2,163,022 | 296,467 | |||||||||
| Short-term investments |
3,427,020 | 2,824,471 | 387,126 | |||||||||
| Investments |
1,084,084 | 1,126,652 | 154,421 | |||||||||
| Quality assurance receivable, net of credit loss allowance for quality assurance receivable of RMB374,304 and RMB465,872 as of December 31, 2022 and September 30, 2023, respectively |
1,669,855 | 1,716,680 | 235,291 | |||||||||
| Intangible assets |
98,692 | 98,692 | 13,527 | |||||||||
| Property, equipment and software, net |
141,345 | 149,459 | 20,485 | |||||||||
| Loans receivable, net of credit loss allowance for loans receivable of RMB294,355 and RMB277,619 as of December 31, 2022 and September 30, 2023, respectively |
2,136,432 | 1,556,097 | 213,281 | |||||||||
| Accounts receivable and contract assets, net of credit loss allowance for accounts receivable and contract assets of RMB496,918 and RMB412,194 as of December 31, 2022 and September 30, 2023, respectively |
2,217,445 | 2,246,671 | 307,932 | |||||||||
| Deferred tax assets |
919,361 | 1,455,433 | 199,484 | |||||||||
| Right of use assets |
192,428 | 168,910 | 23,151 | |||||||||
| Prepaid expenses and other assets |
2,966,751 | 2,974,613 | 407,705 | |||||||||
| Goodwill |
50,411 | 50,411 | 6,909 | |||||||||
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| Total assets |
21,382,911 | 22,231,833 | 3,047,128 | |||||||||
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| Liabilities and Shareholders’ Equity |
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| Deferred guarantee income |
1,805,164 | 1,869,869 | 256,287 | |||||||||
| Liability from quality assurance commitment |
3,555,618 | 3,703,989 | 507,674 | |||||||||
| Payroll and welfare payable |
274,408 | 222,626 | 30,513 | |||||||||
| Taxes payable |
134,027 | 172,623 | 23,660 | |||||||||
| Funds payable to investors of consolidated trusts |
1,845,210 | 1,225,856 | 168,018 | |||||||||
| Contract liability |
5,109 | 5,109 | 700 | |||||||||
| Deferred tax liabilities |
232,188 | 336,835 | 46,167 | |||||||||
| Accrued expenses and other liabilities |
909,708 | 979,336 | 134,229 | |||||||||
| Leasing liabilities |
176,990 | 159,575 | 21,872 | |||||||||
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| Total liabilities |
8,938,422 | 8,675,818 | 1,189,120 | |||||||||
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| Commitments and contingencies |
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| FinVolution Group Shareholders’ equity |
||||||||||||
| Ordinary shares |
103 | 103 | 14 | |||||||||
| Additional paid-in capital |
5,692,703 | 5,738,613 | 786,542 | |||||||||
| Treasury stock |
(568,595 | ) | (998,356 | ) | (136,836 | ) | ||||||
| Statutory reserves |
698,401 | 698,401 | 95,724 | |||||||||
| Accumulated other comprehensive income |
52,237 | 88,861 | 12,181 | |||||||||
| Retained Earnings |
6,496,852 | 7,896,663 | 1,082,328 | |||||||||
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| Total FinVolution Group shareholders’ equity |
12,371,701 | 13,424,285 | 1,839,953 | |||||||||
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| Non-controlling interest |
72,788 | 131,730 | 18,055 | |||||||||
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| Total shareholders’ equity |
12,444,489 | 13,556,015 | 1,858,008 | |||||||||
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| Total liabilities and shareholders’ equity |
21,382,911 | 22,231,833 | 3,047,128 | |||||||||
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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 September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||
| 2022 | 2023 | 2022 | 2023 | |||||||||||||||||||||
| RMB | RMB | USD | RMB | RMB | USD | |||||||||||||||||||
| Operating revenue: |
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| Loan facilitation service fees |
1,168,650 | 1,129,776 | 154,849 | 3,222,142 | 3,413,070 | 467,800 | ||||||||||||||||||
| Post-facilitation service fees |
492,253 | 498,916 | 68,382 | 1,433,479 | 1,474,274 | 202,066 | ||||||||||||||||||
| Guarantee income |
822,242 | 1,152,047 | 157,901 | 2,143,870 | 3,211,480 | 440,170 | ||||||||||||||||||
| Net interest income |
329,636 | 273,274 | 37,455 | 881,692 | 821,953 | 112,658 | ||||||||||||||||||
| Other Revenue |
158,664 | 143,514 | 19,670 | 403,044 | 403,071 | 55,245 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net revenue |
2,971,445 | 3,197,527 | 438,257 | 8,084,227 | 9,323,848 | 1,277,939 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Operating expenses: |
||||||||||||||||||||||||
| Origination, servicing expenses and other cost of revenue |
(495,022 | ) | (519,985 | ) | (71,270 | ) | (1,522,401 | ) | (1,548,373 | ) | (212,222 | ) | ||||||||||||
| Sales and marketing expenses |
(535,158 | ) | (530,110 | ) | (72,658 | ) | (1,194,287 | ) | (1,396,061 | ) | (191,346 | ) | ||||||||||||
| Research and development expenses |
(125,595 | ) | (132,588 | ) | (18,173 | ) | (353,965 | ) | (383,381 | ) | (52,547 | ) | ||||||||||||
| General and administrative expenses |
(100,426 | ) | (98,641 | ) | (13,520 | ) | (287,373 | ) | (274,813 | ) | (37,666 | ) | ||||||||||||
| Provision for accounts receivable and contract assets |
(110,899 | ) | (86,884 | ) | (11,908 | ) | (278,387 | ) | (217,535 | ) | (29,816 | ) | ||||||||||||
| Provision for loans receivable |
(131,336 | ) | (176,776 | ) | (24,229 | ) | (289,933 | ) | (479,281 | ) | (65,691 | ) | ||||||||||||
| Credit losses for quality assurance commitment |
(813,172 | ) | (1,099,154 | ) | (150,652 | ) | (2,259,317 | ) | (3,153,288 | ) | (432,194 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total operating expenses |
(2,311,608 | ) | (2,644,138 | ) | (362,410 | ) | (6,185,663 | ) | (7,452,732 | ) | (1,021,482 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Operating profit |
659,837 | 553,389 | 75,847 | 1,898,564 | 1,871,116 | 256,457 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Other income, net |
58,403 | 124,387 | 17,049 | 156,169 | 327,065 | 44,828 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Profit before income tax expense |
718,240 | 677,776 | 92,896 | 2,054,733 | 2,198,181 | 301,285 | ||||||||||||||||||
| Income tax expenses |
(112,741 | ) | (103,061 | ) | (14,126 | ) | (329,788 | ) | (343,528 | ) | (47,084 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net profit |
605,499 | 574,715 | 78,770 | 1,724,945 | 1,854,653 | 254,201 | ||||||||||||||||||
| Net profit attributable to non-controlling interest shareholders |
6,465 | 8,757 | 1,200 | 10,038 | 38,377 | 5,260 | ||||||||||||||||||
| Net profit attributable to FinVolution Group |
599,034 | 565,958 | 77,570 | 1,714,907 | 1,816,276 | 248,941 | ||||||||||||||||||
| Foreign currency translation adjustment, net of nil tax |
40,350 | (88,159 | ) | (12,083 | ) | 88,650 | (36,624 | ) | (5,020 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total comprehensive income attributable to FinVolution Group |
639,384 | 477,799 | 65,487 | 1,803,557 | 1,779,652 | 243,921 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Weighted average number of ordinary shares used in computing net income per share |
||||||||||||||||||||||||
| Basic |
1,412,291,188 | 1,356,802,618 | 1,356,802,618 | 1,421,982,509 | 1,385,417,916 | 1,385,417,916 | ||||||||||||||||||
| Diluted |
1,463,337,838 | 1,382,049,817 | 1,382,049,817 | 1,468,882,368 | 1,414,900,795 | 1,414,900,795 | ||||||||||||||||||
| Net profit per share attributable to FinVolution Group’s ordinary shareholders |
||||||||||||||||||||||||
| Basic |
0.42 | 0.42 | 0.06 | 1.21 | 1.31 | 0.18 | ||||||||||||||||||
| Diluted |
0.41 | 0.41 | 0.06 | 1.17 | 1.28 | 0.18 | ||||||||||||||||||
| Net profit per ADS attributable to FinVolution Group’s ordinary shareholders (one ADS equal five ordinary shares) |
||||||||||||||||||||||||
| Basic |
2.12 | 2.09 | 0.29 | 6.03 | 6.55 | 0.90 | ||||||||||||||||||
| Diluted |
2.05 | 2.05 | 0.28 | 5.84 | 6.42 | 0.88 | ||||||||||||||||||
10
FinVolution Group
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands, except share data, or otherwise noted)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| 2022 | 2023 | 2022 | 2023 | |||||||||||||||||||||
| RMB | RMB | USD | RMB | RMB | USD | |||||||||||||||||||
| Net cash provided by/(used in) operating activities |
325,837 | 178,370 | 24,448 | (32,574 | ) | 1,357,273 | 186,030 | |||||||||||||||||
| Net cash provided by/(used in) investing activities |
(1,280,514 | ) | 591,067 | 81,012 | (1,081,347 | ) | 1,516,238 | 207,818 | ||||||||||||||||
| Net cash provided by/ (used in) financing activities |
(56,246 | ) | (110,924 | ) | (15,203 | ) | (350,048 | ) | (1,516,270 | ) | (207,822 | ) | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents |
18,225 | (11,383 | ) | (1,560 | ) | 48,668 | 27,416 | 3,757 | ||||||||||||||||
| Net increase in cash, cash equivalent and restricted cash |
(992,698 | ) | 647,130 | 88,697 | (1,415,301 | ) | 1,384,657 | 189,783 | ||||||||||||||||
| Cash, cash equivalent and restricted cash at beginning of period |
8,068,938 | 7,216,614 | 989,119 | 8,491,541 | 6,479,087 | 888,033 | ||||||||||||||||||
| Cash, cash equivalent and restricted cash at end of period |
7,076,240 | 7,863,744 | 1,077,816 | 7,076,240 | 7,863,744 | 1,077,816 | ||||||||||||||||||
11
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 September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||
| 2022 | 2023 | 2022 | 2023 | |||||||||||||||||||||
| RMB | RMB | USD | RMB | RMB | USD | |||||||||||||||||||
| Net Revenues |
2,971,445 | 3,197,527 | 438,257 | 8,084,227 | 9,323,848 | 1,277,939 | ||||||||||||||||||
| Less: total operating expenses |
(2,311,608 | ) | (2,644,138 | ) | (362,410 | ) | (6,185,663 | ) | (7,452,732 | ) | (1,021,482 | ) | ||||||||||||
| Operating Income |
659,837 | 553,389 | 75,847 | 1,898,564 | 1,871,116 | 256,457 | ||||||||||||||||||
| Add: share-based compensation expenses |
23,142 | 30,376 | 4,163 | 68,032 | 82,192 | 11,265 | ||||||||||||||||||
| Non-GAAP adjusted operating income |
682,979 | 583,765 | 80,010 | 1,966,596 | 1,953,308 | 267,722 | ||||||||||||||||||
| Operating Margin |
22.2 | % | 17.3 | % | 17.3 | % | 23.5 | % | 20.1 | % | 20.1 | % | ||||||||||||
| Non-GAAP operating margin |
23.0 | % | 18.3 | % | 18.3 | % | 24.3 | % | 20.9 | % | 20.9 | % | ||||||||||||
| Non-GAAP adjusted operating income |
682,979 | 583,765 | 80,010 | 1,966,596 | 1,953,308 | 267,722 | ||||||||||||||||||
| Add: other income, net |
58,403 | 124,387 | 17,049 | 156,169 | 327,065 | 44,828 | ||||||||||||||||||
| Less: income tax expenses |
(112,741 | ) | (103,061 | ) | (14,126 | ) | (329,788 | ) | (343,528 | ) | (47,084 | ) | ||||||||||||
| Non-GAAP net profit |
628,641 | 605,091 | 82,933 | 1,792,977 | 1,936,845 | 265,466 | ||||||||||||||||||
| Net profit attributable to non-controlling interest Shareholders |
6,465 | 8,757 | 1,200 | 10,038 | 38,377 | 5,260 | ||||||||||||||||||
| Non-GAAP net profit attributable to FinVolution Group |
622,176 | 596,334 | 81,733 | 1,782,939 | 1,898,468 | 260,206 | ||||||||||||||||||
| Weighted average number of ordinary shares used in computing net income per share |
||||||||||||||||||||||||
| Basic |
1,412,291,188 | 1,356,802,618 | 1,356,802,618 | 1,421,982,509 | 1,385,417,916 | 1,385,417,916 | ||||||||||||||||||
| Diluted |
1,463,337,838 | 1,382,049,817 | 1,382,049,817 | 1,468,882,368 | 1,414,900,795 | 1,414,900,795 | ||||||||||||||||||
| Non-GAAP net profit per share attributable to FinVolution Group’s ordinary shareholders |
||||||||||||||||||||||||
| Basic |
0.44 | 0.44 | 0.06 | 1.25 | 1.37 | 0.19 | ||||||||||||||||||
| Diluted |
0.43 | 0.43 | 0.06 | 1.21 | 1.34 | 0.18 | ||||||||||||||||||
| Non-GAAP net profit per ADS attributable to FinVolution Group’s ordinary shareholders (one ADS equal five ordinary shares) |
||||||||||||||||||||||||
| Basic |
2.20 | 2.20 | 0.30 | 6.27 | 6.85 | 0.94 | ||||||||||||||||||
| Diluted |
2.13 | 2.16 | 0.30 | 6.07 | 6.71 | 0.92 | ||||||||||||||||||
12