FinVolution Group Reviews First Quarter 2022 Unaudited Monetary Outcomes

-Eight consecutive quarters of transaction quantity growth-

-Complete Transaction Quantity in Q1 2022 reaching new document excessive of RMB39.7 billion–

SHANGHAI, Might 31, 2022 /PRNewswire/ – FinVolution Group (“FinVolution,” or the “Firm”) (NYSE: FINV), a number one fintech platform, as we speak introduced its unaudited monetary outcomes for the primary quarter ended March 31, 2022.

First Quarter 2022 Operational Highlights

Continued transition in direction of better-quality debtors

• Complete cumulative registered customers^[5] reached 145.3 million as of March 31, 2022.
• Complete variety of distinctive debtors^[6] for the primary quarter of 2022 was 3.2 million.
• Complete variety of repeat debtors^[7] for the primary quarter of 2022 was 2.4 million.

Complete Transaction Quantity and excellent principal of loans continued record-breaking momentum

• Complete transaction quantity reached RMB39.7 billion for the primary quarter of 2022, a rise of 48.1% in comparison with the identical interval of 2021.
• Transaction quantity facilitated for brand spanking new particular person debtors^[8] for the primary quarter of 2022 was RMB6.4 billion, a rise of 14.3% in comparison with the identical interval of 2021.
• Complete excellent principal of loans reached RMB53.8 billion as of March 31, 2022, a rise of 65.5% in comparison with March 31, 2021.

Small enterprise homeowners’ loans continued to scale up with regular development

• Transaction quantity facilitated for small enterprise homeowners for the primary quarter of 2022 was RMB9.8 billion, representing 24.7% of whole transaction quantity within the first quarter of 2022 and a rise of 122.7% in comparison with the identical interval of 2021.
• Complete numbers of small enterprise homeowners served for the primary quarter of 2022 was 507 thousand, a rise of 66.2% in comparison with the identical interval of 2021.

Worldwide growth continued to strengthen with transition to better-quality debtors

• Transaction quantity facilitated within the worldwide markets for the primary quarter of 2022 was RMB0.86 billion, a rise of 13.2% in comparison with the identical interval of 2021.
• Excellent mortgage stability for worldwide markets^[4] as of March 31, 2022 was RMB0.36 billion, representing a rise of 44.0% from March 31, 2021.

Extra operational highlights

• 90 day+ delinquency ratio^[9] was 1.64% as of March 31, 2022, in comparison with 1.13% as of March 31, 2021.
• Common mortgage dimension^[10] was RMB7,107 for the primary quarter of 2022, in comparison with RMB4,369 in the identical interval of 2021.
• Common mortgage tenor^[11] was 8.8 months for the primary quarter of 2022, in contrast with 8.4 months in the identical interval of 2021.

First Quarter 2022 Monetary Highlights

• Internet income was RMB2,446.8 million (US$386.0 million) for the primary quarter of 2022, a rise of 15.8% from RMB2,112.9 million for a similar interval of 2021.
• Internet revenue was RMB534.3million (US$84.3 million) for the primary quarter of 2022, a lower of 9.9% from RMB592.8 million for a similar interval of 2021.
• Non-GAAP adjusted working earnings^[12], which excludes share-based compensation bills earlier than tax, was RMB602.1 million (US$95.0 million) for the primary quarter of 2022, a lower of 10.3% from RMB671.2 for a similar interval of 2021.
• Diluted web revenue per American depositary share (“ADS”) was RMB1.81 (US$0.29) and diluted web revenue per share was RMB0.36 (US$0.06), a lower of 9.5% from the identical interval of 2021. Non-GAAP diluted web revenue per ADS was RMB1.88 (US$0.30) and Non-GAAP diluted web revenue per share was RMB0.38 (US$0.06), a lower of 8.3% from the identical interval of 2021. Every ADS of the Firm represents 5 Class A unusual shares of the Firm.

Mr. Feng Zhang, Chief Government Officer of FinVolution, commented, “Our robust technological basis and strategic transition in direction of better-quality debtors enabled us to flexibly navigate challenges and ship stable, constant outcomes, highlighted by our eighth consecutive quarter of development in whole transaction quantity. Within the first quarter of 2022, we achieved record-setting whole transaction quantity of RMB39.7 billion, representing a year-over-year improve of 48.1% and a sequential improve of 1.8%.

“Our operations aimed toward empowering small enterprise homeowners additionally maintained stable development momentum. In the course of the quarter, we served over 507 thousand small enterprise homeowners throughout a number of sectors, together with retail, wholesale and repair industries, amongst others, representing a rise of 66.2% from the identical interval in 2021. In the meantime the transaction quantity facilitated for small enterprise homeowners elevated 122.7% year-over-year to a document excessive of RMB9.8 billion, contributing 24.7% of whole transaction quantity for a similar interval.

“With the COVID-19 scenario largely underneath management in Southeast Asia our transaction quantity reached RMB0.86 billion in our worldwide markets throughout the first quarter of 2022, representing a rise of 13.2% year-over-year. It’s significantly noteworthy that the excellent mortgage stability for our worldwide markets reached RMB0.36 billion, representing a rise of 44.0% year-over-year and 9.1% sequentially. We are going to proceed to domesticate our partnerships with completely different gamers within the area whereas introducing new services and products to enhance our providing combine.

“Final however not least, I want to share that since Sustainalytics awarded us a “low-risk” score final quarter, extra impartial ESG platforms akin to ESG Enterprise, have included us of their ESG rankings, offering our stakeholders with even larger perception into our ESG objectives. We firmly imagine that our long-term strategic plan, together with monetary, technological and ESG objectives, will lead FinVolution to its subsequent part of development and prosperity,” concluded Mr. Zhang.

Mr. Jiayuan Xu, FinVolution’s Chief Monetary Officer, continued, “Pushed by our constant efforts in R&D, steady improvement of our chain of applied sciences and enchancment throughout a number of operational metrics, our web revenues for the primary quarter rose to RMB2.4 billion, a rise of 15.8% year-over-year. Extra encouragingly, we’ve additionally delivered a robust Non-GAAP working earnings¹² of RMB602.1 million and maintained a considerable stability sheet with RMB10.8 billion in whole shareholder’s fairness as of March 31, 2022.

“As well as, our unrestricted money and short-term liquidity place elevated to RMB6.3 billion from RMB5.6 billion on the finish of the earlier quarter, representing a sequential improve of 12.5%, additional demonstrating the robustness of our stability sheet. Supported by our robust monetary place, efficient enterprise technique and execution, we’re assured that we will proceed to unlock large worth for all stakeholders,” concluded Mr. Xu.

First Quarter 2022 Monetary Outcomes

Internet income for the primary quarter of 2022 elevated by 15.8% to RMB2,446.8 million (US$386.0 million) from RMB2,112.9 million in the identical interval of 2021, primarily because of the improve in mortgage facilitation service charges and put up facilitation service charges.  

Mortgage facilitation service charges elevated by 31.5% to RMB1001.4 million (US$158.0 million) for the primary quarter of 2022 from RMB761.6 million in the identical interval of 2021, primarily as a result of the rise in transaction quantity, partially offset by the lower in service charge charges.

Publish-facilitation service charges elevated by 102.5 % to RMB458.4million (US$72.3 million) for the primary quarter of 2022 from RMB226.4 million in the identical interval of 2021, primarily because of the improve in excellent loans served by the Firm and the rolling influence of deferred transaction charges.

Assure earnings was RMB612.1million (US$96.6 million) for the primary quarter of 2022 in comparison with RMB659.2 million in the identical interval of 2021, because of improved asset high quality. The truthful worth of high quality assurance dedication upon mortgage origination is launched as assure earnings systematically over the time period of the loans topic to high quality assurance dedication. Because the Firm transitioned its enterprise in direction of higher high quality debtors, the truthful worth of high quality assurance dedication upon mortgage origination decreased as a result of higher asset high quality ensuing within the lower in assure earnings.

Internet curiosity earnings decreased by 4.0% to RMB269.1million (US$42.5million) for the primary quarter of 2022, from RMB280.4 million in the identical interval of 2021, primarily because of the lower in rates of interest, partially offset by the rise within the excellent mortgage stability of on stability sheet loans.

Different income decreased by 42.9 % to RMB105.8 million (US$16.7 million) for the primary quarter of 2022 from RMB185.2 million in the identical interval of 2021, primarily because of the lower in buyer referral charges from different third-party platforms. 

Origination, servicing bills and different price of income elevated by 20.5% to RMB497.7 million (US$78.5 million) for the primary quarter of 2022 from RMB413.1 million in the identical interval of 2021, primarily because of the improve in workers’ expenditures and costs paid to the third-party service suppliers because of the rise in mortgage origination quantity.  

Gross sales and advertising and marketing bills decreased by 0.7% to RMB332.0 million (US$52.4 million) for the primary quarter of 2022 from RMB334.2 million in the identical interval of 2021.

Analysis and improvement bills elevated by 19.8% to RMB112.4 million (US$17.7 million) for the primary quarter of 2022, from RMB93.8 million in the identical interval of 2021, because of the elevated investments in expertise improvement.  

Common and administrative bills decreased by 19.1% to RMB91.1 million (US$14.4 million) for the primary quarter of 2022 in comparison with RMB112.6 million in the identical interval of 2021, because of the improve in working effectivity.

Provision for accounts receivable and contract belongings elevated by 83.7% to RMB73.1 million (US$11.5 million) for the primary quarter of 2022 in comparison with RMB39.8 million in the identical interval of 2021, because of the rise in excellent mortgage balances, partially offset by decrease default price because of the transition to raised high quality debtors.

Provision for loans receivable was RMB99.5 million (US$15.7 million) for the primary quarter of 2022, in comparison with RMB18.8 million in the identical interval of 2021. The rise was primarily because of the improve in mortgage quantity of on stability sheet loans, partially offset by decrease default price because of the transition to raised high quality debtors.

Credit score losses for high quality assurance dedication have been RMB659.0 million (US$104.0 million) for the primary quarter of 2022 in comparison with RMB444.9 million in the identical interval of 2021, primarily because of the improve in excellent mortgage balances, partially offset by decrease default price because of the transition to raised high quality debtors.

Working revenue decreased by 11.2% to RMB582.0 million (US$91.8 million) for the primary quarter of 2022 from RMB655.7 million in the identical interval of 2021.

Non-GAAP adjusted working earnings, which excludes share-based compensation bills earlier than tax, was RMB602.1 million (US$95.0 million) for the primary quarter of 2022, representing a lower of 10.3% from RMB671.2 million in the identical interval of 2021.

Different earnings elevated by 19.0% to RMB50.8 million (US$8.0 million) for the primary quarter of 2022 from RMB42.7 million in the identical interval of 2021, primarily because of the improve in authorities subsidy, partially offset by a lower in funding positive factors.

Revenue tax expense was RMB98.6 million (US$15.6 million) for the primary quarter of 2022, in comparison with earnings tax bills of RMB105.7 million in the identical interval of 2021, primarily as a result of decline in working revenue.

Internet revenue was RMB534.3 million (US$84.3 million) for the primary quarter of 2022, in comparison with RMB592.8 million in the identical interval of 2021.

Internet revenue attributable to unusual shareholders of the Firm was RMB534.7 million (US$84.3 million) for the primary quarter of 2022, in comparison with RMB590.4 million in the identical interval of 2021.

Diluted web revenue per ADS was RMB1.81 (US$0.29) and diluted web revenue per share was RMB0.36 (US$0.06), a lower of 9.5% year-over-year. Non-GAAP diluted web revenue per ADS was RMB1.88 (US$0.30) and Non-GAAP diluted web revenue per share was RMB0.38 (US$0.06), a lower of 8.3% year-over-year. Every ADS represents 5 Class A unusual shares of the Firm.

As of March 31, 2022, the Firm had money and money equivalents of RMB3,621.0 million (US$571.2 million) and short-term investments primarily in wealth administration merchandise of RMB2,689.6 million (US$424.3 million).

The next desk supplies the delinquency charges for all excellent loans on the Firm’s platform in China’s Mainland as of the respective dates indicated.

The next chart and desk show the historic cumulative 30-day plus overdue delinquency charges by mortgage origination classic in China’s Mainland for all mortgage merchandise facilitated by means of the Firm’s on-line platform as of March 31, 2022. Click on right here to view the chart.

Enterprise Outlook

Given COVID-19’s resurgence in China for the reason that starting of 2022, the Firm will proceed to intently monitor the pandemic and stay vigilant in its enterprise operations. As such, the Firm holds a cautious view on its operations and anticipates its transaction quantity within the second quarter of 2022, to be within the vary of RMB40.0 billion to RMB41.0 billion, representing a year-over-year improve of 19.8% to 22.8%.

The above forecast relies on the present market situations and displays the Firm’s present preliminary views and expectations on market and operational situations and the regulatory and working atmosphere, in addition to buyer and institutional investor calls for, all of that are topic to alter.

Shares Repurchase Program Replace

On November 17, 2021, the board of administrators of the Firm permitted an extension of the Firm’s present US$60 million share repurchase program for an additional twelve months, efficient from January 1, 2022, by means of December 31, 2022. As of April 30, 2022, together with the Firm’s earlier repurchase applications, the Firm had repurchased its personal Class A unusual shares within the type of ADSs in a complete combination worth of roughly US$147.2 million. The share repurchase program shall be topic to common enterprise situations and market situations.

Convention Name

The Firm’s administration will host an earnings convention name at 8:30PM U.S. Jap Time on Might 31, 2022 (8:30AM Beijing/Hong Kong Time on June 1, 2022).

Dial-in particulars for the earnings convention name are as follows:

Members ought to dial-in at the very least 5 minutes earlier than the scheduled begin time and ask to be linked to the decision for “FinVolution Group.”

Moreover, a dwell and archived webcast of the convention name might be out there on the Firm’s investor relations web site at https://ir.finvgroup.com.

A replay of the convention name might be accessible roughly one hour after the conclusion of the dwell name till June 07, 2022, by dialing the next phone numbers:

About FinVolution Group

FinVolution Group is a number one fintech platform in China connecting underserved particular person debtors with monetary establishments. Established in 2007, the Firm is a pioneer in China’s on-line client finance trade and has developed revolutionary applied sciences and has amassed in-depth expertise within the core areas of credit score threat evaluation, fraud detection, massive information and synthetic intelligence. The Firm’s platform, empowered by proprietary cutting-edge applied sciences, includes a extremely automated mortgage transaction course of, which allows a superior person expertise. As of March 31, 2022, the Firm had over 145.3 million cumulative registered customers.

For extra info, please go to https://ir.finvgroup.com

Use of Non-GAAP Monetary Measures

We use Non-GAAP working revenue, Non-GAAP primary and diluted web revenue per share and per ADS that are Non-GAAP monetary measures, in evaluating our working outcomes and for monetary and operational decision-making functions. We imagine that adjusted working revenue assist determine underlying developments in our enterprise by excluding the influence of share-based compensation bills and anticipated discretionary measures. We imagine that adjusted working revenue present helpful details about our working outcomes, improve the general understanding of our previous efficiency and future prospects and permit for larger visibility with respect to key metrics utilized by our administration in its monetary and operational decision-making.

Non-GAAP adjusted working revenue, Non-GAAP primary and diluted web revenue per share and per ADS will not be outlined underneath U.S. GAAP and isn’t introduced in accordance with U.S. GAAP. These Non-GAAP monetary measures has limitations as analytical device, and when assessing our working efficiency, money flows or our liquidity, traders mustn’t take into account it in isolation, or as an alternative choice to web (loss)/earnings, money flows supplied by working actions or different consolidated statements of operation and money stream information ready in accordance with U.S. GAAP. The Firm encourages traders and others to evaluation our monetary info in its entirety and never depend on a single monetary measure.

For extra info on this Non-GAAP monetary measure, please see the desk captioned “Reconciliations of GAAP and Non-GAAP outcomes” set forth on the finish of this press launch.

Trade Fee Data

This announcement accommodates translations of sure RMB quantities into U.S. {dollars} at a specified price solely for the comfort of the reader. Except in any other case famous, all translations from RMB to U.S. {dollars} are made at a price of RMB6.3393 to US$1.00, the speed in impact as of March 31, 2022 as licensed for customs functions by the Federal Reserve Financial institution of New York.

Protected Harbor Assertion

This press launch accommodates forward-looking statements. These statements represent “forward-looking” statements inside the which means of Part 21E of the Securities Trade Act of 1934, as amended, and as outlined within the U.S. Personal Securities Litigation Reform Act of 1995. These forward-looking statements may be recognized by terminology akin to “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “goal,” “assured” and related statements. Such statements are based mostly upon administration’s present expectations and present market and working situations and relate to occasions that contain recognized or unknown dangers, uncertainties and different components, all of that are tough to foretell and lots of of that are past the Firm’s management. Ahead-looking statements contain dangers, uncertainties and different components that might trigger precise outcomes to vary materially from these contained in any such statements. Potential dangers and uncertainties embrace, however will not be restricted to, uncertainties as to the Firm’s skill to draw and retain debtors and traders on its market, its skill to extend quantity of loans facilitated by means of the Firm’s market, its skill to introduce new mortgage merchandise and platform enhancements, its skill to compete successfully, legal guidelines, laws and governmental insurance policies referring to the web client finance trade in China, common financial situations in China, and the Firm’s skill to satisfy the requirements vital to keep up itemizing of its ADSs on the NYSE, together with its skill to treatment any non-compliance with the NYSE’s continued itemizing standards. Additional info concerning these and different dangers, uncertainties or components is included within the Firm’s filings with the U.S. Securities and Trade Fee. All info supplied on this press launch is as of the date of this press launch, and FinVolution doesn’t undertake any obligation to replace any forward-looking assertion because of new info, future occasions or in any other case, besides as required underneath relevant legislation.

For investor and media inquiries, please contact:

In China:

FinVolution Group
Head of Investor Relations
Jimmy Tan
Tel: +86 (21) 8030-3200 Ext. 8601
E-mail: [email protected]

The Piacente Group, Inc.
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: [email protected] 

In the USA:

The Piacente Group, Inc.  
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]

FinVolution Group
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(All quantities in hundreds, besides share information, or in any other case famous)
                                                                                       

FinVolution Group
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 (All quantities in hundreds, besides share information, or in any other case famous)

FinVolution Group
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All quantities in hundreds, besides share information, or in any other case famous)

                                    

FinVolution Group
UNAUDITED Reconciliation of GAAP and Non-GAAP Outcomes
 (All quantities in hundreds, besides share information, or in any other case famous)

SOURCE FinVolution Group