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Artikel Bisnis Digital

FinVolution Group Reports First Quarter 2022 Unaudited Financial Results

Universitas Amikom Purwokerto, Kampus IT dan Bisnis Digital Banyumas, Jawa Tengah.

-Eight consecutive quarters of transaction volume growth-

-Total Transaction Volume in Q1 2022 reaching new record high of RMB39.7 billion

SHANGHAI, May 31, 2022 /PRNewswire/ – FinVolution Group (“FinVolution,” or the “Company”) (NYSE: FINV), a leading fintech platform, today announced its unaudited financial results for the first quarter ended March 31, 2022.


For the Three Months Ended

YoY Change


March 31, 2021

March 31, 2022





Total Transaction Volume (RMB in billion)[1]           

26.8

39.7

48.1%

Transaction Volume (China’s Mainland)

26.0

38.8

49.2%

Transaction Volume (International)[2]

0.76

0.86

13.2%

Total Outstanding Loan Balance (RMB in billion)

32.5

53.8

65.5%

Outstanding Loan Balance (China’s Mainland)[3]  

32.2

53.4

65.8%

Outstanding Loan Balance (International)[4]

0.25

0.36

44.0%





First Quarter 2022 Operational Highlights

Continued transition towards better-quality borrowers

  • Total cumulative registered users[5] reached 145.3 million as of March 31, 2022.
  • Total number of unique borrowers[6] for the first quarter of 2022 was 3.2 million.
  • Total number of repeat borrowers[7] for the first quarter of 2022 was 2.4 million.

Total Transaction Volume and outstanding principal of loans continued record-breaking momentum

  • Total transaction volume reached RMB39.7 billion for the first quarter of 2022, an increase of 48.1% compared to the same period of 2021.
  • Transaction volume facilitated for new individual borrowers[8] for the first quarter of 2022 was RMB6.4 billion, an increase of 14.3% compared to the same period of 2021.
  • Total outstanding principal of loans reached RMB53.8 billion as of March 31, 2022, an increase of 65.5% compared to March 31, 2021.

Small business owners’ loans continued to scale up with steady growth

  • Transaction volume facilitated for small business owners for the first quarter of 2022 was RMB9.8 billion, representing 24.7% of total transaction volume in the first quarter of 2022 and an increase of 122.7% compared to the same period of 2021.
  • Total numbers of small business owners served for the first quarter of 2022 was 507 thousand, an increase of 66.2% compared to the same period of 2021.

International expansion continued to strengthen with transition to better-quality borrowers

  • Transaction volume facilitated in the international markets for the first quarter of 2022 was RMB0.86 billion, an increase of 13.2% compared to the same period of 2021.
  • Outstanding loan balance for international markets[4] as of March 31, 2022 was RMB0.36 billion, representing an increase of 44.0% from March 31, 2021.

More operational highlights

  • 90 day+ delinquency ratio[9] was 1.64% as of March 31, 2022, compared to 1.13% as of March 31, 2021.
  • Average loan size[10] was RMB7,107 for the first quarter of 2022, compared to RMB4,369 in the same period of 2021.
  • Average loan tenor[11] was 8.8 months for the first quarter of 2022, compared with 8.4 months in the same period of 2021.

First Quarter 2022 Financial Highlights

  • Net revenue was RMB2,446.8 million (US$386.0 million) for the first quarter of 2022, an increase of 15.8% from RMB2,112.9 million for the same period of 2021.
  • Net profit was RMB534.3million (US$84.3 million) for the first quarter of 2022, a decrease of 9.9% from RMB592.8 million for the same period of 2021.
  • Non-GAAP adjusted operating income[12], which excludes share-based compensation expenses before tax, was RMB602.1 million (US$95.0 million) for the first quarter of 2022, a decrease of 10.3% from RMB671.2 for the same period of 2021.
  • Diluted net profit per American depositary share (“ADS”) was RMB1.81 (US$0.29) and diluted net profit per share was RMB0.36 (US$0.06), a decrease of 9.5% from the same period of 2021. Non-GAAP diluted net profit per ADS was RMB1.88 (US$0.30) and Non-GAAP diluted net profit per share was RMB0.38 (US$0.06), a decrease of 8.3% from the same period of 2021. Each ADS of the Company represents five Class A ordinary shares of the Company.

[1] Represents total transaction volume facilitated in China’s Mainland and overseas markets on the Company’s platforms during the period presented.

[2] Represents our overseas markets outside China’s Mainland.

[3] Outstanding loan balance (China’s Mainland) as of any date refers to the balance of outstanding loans in China’s Mainland market delinquent within 180 days from such date.

[4] Outstanding loan balance (international) as of any date  refers to the balance of outstanding loans in overseas markets delinquent within 30 days from such date.

[5] On a cumulative basis, the total number of users registered on the Company’s platforms as of March 31, 2022.

[6] Represents the total number of borrowers whose transactions were facilitated on the Company’s platforms during the period presented.

[7] Represents the total number of repeat borrowers who have successfully borrowed on our platform in the past and borrowed on the Company’s platforms during the period presented.

[8] Represents transaction volume facilitated for the new individual borrowers who successfully completed their first transaction on the Company’s platforms during the period presented.

[9] “90 day+ delinquency ratio” refers to the outstanding principal balance of on- and-off balance sheet loans that were 90 to 179 calendar days past due as a percentage of the total outstanding principal balance of on-and-off balance sheet loans on the Company’s platform as of a specific date. Loans that originated outside China’s Mainland are not included in the calculation.

[10] Represents the average loan size on the Company’s platform in China’s Mainland during the period presented.

[11] Represents the average loan tenor on the Company’s platform in China’s Mainland during the period presented.

[12] Please refer to “UNAUDITED Reconciliation of GAAP And Non-GAAP Results” for reconciliation between GAAP and Non-GAAP adjusted operating income.

Mr. Feng Zhang, Chief Executive Officer of FinVolution, commented, “Our strong technological foundation and strategic transition towards better-quality borrowers enabled us to flexibly navigate challenges and deliver solid, consistent results, highlighted by our eighth consecutive quarter of growth in total transaction volume. In the first quarter of 2022, we achieved record-setting total transaction volume of RMB39.7 billion, representing a year-over-year increase of 48.1% and a sequential increase of 1.8%.

“Our operations aimed at empowering small business owners also maintained solid growth momentum. During the quarter, we served over 507 thousand small business owners across multiple sectors, including retail, wholesale and service industries, among others, representing an increase of 66.2% from the same period in 2021. Meanwhile the transaction volume facilitated for small business owners increased 122.7% year-over-year to a record high of RMB9.8 billion, contributing 24.7% of total transaction volume for the same period.

“With the COVID-19 situation largely under control in Southeast Asia our transaction volume reached RMB0.86 billion in our international markets during the first quarter of 2022, representing an increase of 13.2% year-over-year. It is particularly noteworthy that the outstanding loan balance for our international markets reached RMB0.36 billion, representing an increase of 44.0% year-over-year and 9.1% sequentially. We will continue to cultivate our partnerships with different players in the region while introducing new products and services to improve our offering mix.

“Last but not least, I would like to share that since Sustainalytics awarded us a “low-risk” rating last quarter, additional independent ESG platforms such as ESG Enterprise, have included us in their ESG ratings, providing our stakeholders with even greater insight into our ESG goals. We firmly believe that our long-term strategic plan, including financial, technological and ESG goals, will lead FinVolution to its next phase of growth and prosperity,” concluded Mr. Zhang.

Mr. Jiayuan Xu, FinVolution’s Chief Financial Officer, continued, “Driven by our consistent efforts in R&D, continuous development of our chain of technologies and improvement across multiple operational metrics, our net revenues for the first quarter rose to RMB2.4 billion, an increase of 15.8% year-over-year. More encouragingly, we have also delivered a strong Non-GAAP operating income12 of RMB602.1 million and maintained a substantial balance sheet with RMB10.8 billion in total shareholder’s equity as of March 31, 2022.

“In addition, our unrestricted cash and short-term liquidity position increased to RMB6.3 billion from RMB5.6 billion at the end of the previous quarter, representing a sequential increase of 12.5%, further demonstrating the robustness of our balance sheet. Supported by our strong financial position, effective business strategy and execution, we are confident that we can continue to unlock tremendous value for all stakeholders,” concluded Mr. Xu.

First Quarter 2022 Financial Results

Net revenue for the first quarter of 2022 increased by 15.8% to RMB2,446.8 million (US$386.0 million) from RMB2,112.9 million in the same period of 2021, primarily due to the increase in loan facilitation service fees and post facilitation service fees.  

Loan facilitation service fees increased by 31.5% to RMB1001.4 million (US$158.0 million) for the first quarter of 2022 from RMB761.6 million in the same period of 2021, primarily due to the increase in transaction volume, partially offset by the decrease in service fee rates.

Post-facilitation service fees increased by 102.5 % to RMB458.4million (US$72.3 million) for the first quarter of 2022 from RMB226.4 million in the same period of 2021, primarily due to the increase in outstanding loans served by the Company and the rolling impact of deferred transaction fees.

Guarantee income was RMB612.1million (US$96.6 million) for the first quarter of 2022 compared to RMB659.2 million in the same period of 2021, as a result of improved asset quality. The fair value of quality assurance commitment upon loan origination is released as guarantee income systematically over the term of the loans subject to quality assurance commitment. As the Company transitioned its business towards better quality borrowers, the fair value of quality assurance commitment upon loan origination decreased due to better asset quality resulting in the decrease in guarantee income.

Net interest income decreased by 4.0% to RMB269.1million (US$42.5million) for the first quarter of 2022, from RMB280.4 million in the same period of 2021, primarily due to the decrease in interest rates, partially offset by the increase in the outstanding loan balance of on balance sheet loans.

Other revenue decreased by 42.9 % to RMB105.8 million (US$16.7 million) for the first quarter of 2022 from RMB185.2 million in the same period of 2021, primarily due to the decrease in customer referral fees from other third-party platforms. 

Origination, servicing expenses and other cost of revenue increased by 20.5% to RMB497.7 million (US$78.5 million) for the first quarter of 2022 from RMB413.1 million in the same period of 2021, primarily due to the increase in employees’ expenditures and fees paid to the third-party service providers as a result of the increase in loan origination volume.  

Sales and marketing expenses decreased by 0.7% to RMB332.0 million (US$52.4 million) for the first quarter of 2022 from RMB334.2 million in the same period of 2021.

Research and development expenses increased by 19.8% to RMB112.4 million (US$17.7 million) for the first quarter of 2022, from RMB93.8 million in the same period of 2021, due to the increased investments in technology development.  

General and administrative expenses decreased by 19.1% to RMB91.1 million (US$14.4 million) for the first quarter of 2022 compared to RMB112.6 million in the same period of 2021, due to the increase in operating efficiency.

Provision for accounts receivable and contract assets increased by 83.7% to RMB73.1 million (US$11.5 million) for the first quarter of 2022 compared to RMB39.8 million in the same period of 2021, as a result of the increase in outstanding loan balances, partially offset by lower default rate as a result of the transition to better quality borrowers.

Provision for loans receivable was RMB99.5 million (US$15.7 million) for the first quarter…

Mahasiswa Jurusan Bisnis Digital Universitas Amikom Purwokerto

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