FinVolution Group Reports Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results
-2023 Full Year Total Transaction Volume reached new record high of
-2023 Full Year
-2023 Full Year International Transaction Volume increased to
-2023 Full Year International Revenues increased to
|
For
the
Three Months Ended/As of |
YoY Change |
For Full Year
Ended |
YoY Change |
||
|
2022 |
2023 |
|
2022 |
2023 |
|
Total Transaction Volume (RMB in |
48.6 |
52.4 |
7.8 % |
175.4 |
194.3 |
10.8 % |
Transaction Volume ( |
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 |
64.6 |
67.4 |
4.3 % |
64.6 |
67.4 |
4.3 % |
Outstanding Loan Balance ( |
63.8 |
66.1 |
3.6 % |
63.8 |
66.1 |
3.6 % |
Outstanding Loan Balance |
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 withDecember 31, 2022 . - Cumulative borrowers[7] for the
China market reached 25.2 million as ofDecember 31, 2023 , an increase of 6.8% compared withDecember 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 ofDecember 31, 2023 , an increase of 3.6% compared withDecember 31, 2022 . - Average loan size[10] was
RMB9,044 for the fourth quarter of 2023, compared withRMB7,682 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 ofDecember 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 withDecember 31, 2022 . - Cumulative borrowers[14] for the international market reached 4.8 million as of
December 31, 2023 , an increase of 41.2% compared withDecember 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 ofDecember 31, 2023 , an increase of 57.5% compared withDecember 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% fromRMB3,050.0 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% fromRMB556.3 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% fromRMB637.8 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 wasRMB0.38 (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 wasRMB2.04 (US$0.29 ) and non-GAAP diluted net profit per share wasRMB0.41 (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 |
[2]
Represents our transaction volume facilitated in |
[3]
Represents our transaction volume facilitated in international markets outside |
[4]
Outstanding loan balance ( |
[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 |
[7]
On a cumulative basis, the total number of borrowers in |
[8]
Represents the total number of borrowers in |
[9]
Represents the transaction volume facilitated for the repeat borrowers in |
[10]
Represents the average loan size on the Company's platform in |
[11]
Represents the average loan tenor on the Company's platform in |
[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 |
[13]
On a cumulative basis, the total number of users registered on the Company's platforms outside |
[14]
On a cumulative basis, the total number of borrowers on the Company's platforms outside |
[15]
Represents the total number of borrowers outside |
[16]
Represents the total number of new borrowers outside |
[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
"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
Mr.
"Moreover, we strove to continuously optimize shareholder returns through our capital return program. For full-year 2023, we deployed a total of approximately
Fourth Quarter 2023 Financial Results
Net revenue for the fourth quarter of 2023 increased by 5.7% to
Loan facilitation service fees decreased by 8.4% to
Post-facilitation service fees maintained relatively stable at
Guarantee income increased by 37.7% to
Net interest income decreased by 22.3% to
Other revenue decreased by 4.6% to
Origination, servicing expenses and other costs of revenue increased by 9.1% to
Sales and marketing expenses remained relatively stable at
Research and development expenses decreased by 7.2% to
General and administrative expenses maintained relatively stable at
Provision for accounts receivable and contract assets decreased by 67.6% to
Provision for loans receivable decreased by 14.6% to
Credit losses for quality assurance commitment increased by 35.6% to
Operating profit decreased by 16.9% to
Non-GAAP adjusted operating income, which excludes share-based compensation expenses before tax, was
Other income increased by 4.8% to
Income tax expense was
Net profit was
Net profit attributable to ordinary shareholders of the Company was
Diluted net profit per ADS was
As of
The following chart and table display the historical cumulative 30-day plus past due delinquency rates by loan origination vintage in
Click here to view the chart.
Fiscal Year 2023 Financial Results
Net revenue for 2023 increased by 12.7% to
Loan facilitation service fees increased by 2.0% to
Post-facilitation service fees increased by 2.1% to
Guarantee income increased by 46.2% to
Net interest income for 2023 decreased by 10.6% to
Other revenue decreased by 1.1% to
Origination, servicing expenses and other cost of revenue increased by 3.6% to
Sales and marketing expenses increased by 12.0% to
Research and development expenses increased by 4.0% to
General and administrative expenses decreased by 2.9% to
Provision for accounts receivable and contract assets decreased by 35.0% to
Provision for loans receivables increased by 41.1% to
Credit losses for quality assurance commitment increased by 38.4% to
Operating profit decreased by 5.2% to
Non-GAAP adjusted operating income, which excludes share-based compensation expenses before tax, was
Other income increased by 78.8% to
Income tax expenses were
Net profit was
Net profit attributable to ordinary shareholders of the Company was
Shares Repurchase Update
For the fiscal year of 2023, the Company deployed a total of
Change of Management
The Board of Directors of the Company (the "Board") has appointed Ms.
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
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.
Dial-in details for the earnings conference call are as follows:
|
+1-888-346-8982 |
|
+1-855-669-9657 |
International: |
+1-412-902-4272 |
|
800-905-945 |
|
+852-3018-4992 |
Mainland, |
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 "
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
|
+1-877-344-7529 |
|
+1-855-669-9658 |
International: |
+1-412-317-0088 |
Replay Access Code: |
4318516 |
About FinVolution Group
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
Non-GAAP adjusted operating income, non-GAAP operating margin, non-GAAP net profit, non-GAAP net profit attributable to
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
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
For investor and media inquiries, please contact:
In
Head of Investor Relations
Tel: +86 (21) 8030-3200 Ext. 8601
E-mail: ir@xinye.com
Tel: +86 (10) 6508-0677
E-mail: finv@tpg-ir.com
In
Tel: +1-212-481-2050
E-mail: finv@tpg-ir.com
|
||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS |
||||
(All amounts in thousands, except share data, or otherwise noted) |
||||
|
|
|
|
|
|
As of |
|
As of |
|
|
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 |
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 |
2,136,432 |
|
1,127,388 |
158,789 |
Accounts receivable and contract assets, net of credit loss |
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 |
|
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 |
|
(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 |
|
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 |
|
|||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||||||||
(All amounts in thousands, except share data, or otherwise noted) |
|||||||||
|
|||||||||
|
For the Three Months Ended |
|
For the Year Ended |
||||||
|
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 |
(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 |
4,836 |
|
4,273 |
602 |
|
14,874 |
|
42,650 |
6,007 |
Net profit attributable to |
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 |
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 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 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 |
|
||||||||||||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
(All amounts in thousands, except share data, or otherwise noted) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Three Months Ended |
|
Year Ended |
|||||||||||||
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|||||||||
|
RMB |
|
RMB |
|
USD |
|
RMB |
|
RMB |
|
USD |
|||||
Net cash provided by/(used in) |
301,407 |
|
56,150 |
|
7,909 |
|
268,833 |
|
1,413,423 |
|
199,076 |
|||||
Net cash provided by
/(used in) |
(471,881) |
|
(102,748) |
|
(14,472) |
|
(1,553,228) |
|
1,413,490 |
|
199,086 |
|||||
Net cash
provided by
/(
used in) |
(445,808) |
|
(1,042,781) |
|
(146,873) |
|
(795,856) |
|
(2,559,051) |
|
(360,435) |
|||||
Effect of exchange rate changes on |
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 |
7,076,240 |
|
7,863,744 |
|
1,107,585 |
|
8,491,541 |
|
6,479,087 |
|
912,560 |
|||||
Cash, cash equivalent and restricted |
6,479,087 |
|
6,769,390 |
|
953,449 |
|
6,479,087 |
|
6,769,390 |
|
953,449 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
UNAUDITED Reconciliation of GAAP and Non-GAAP Results |
|||||||
(All amounts in thousands, except share data, or otherwise noted) |
|||||||
|
|||||||
|
For the Three Months Ended |
For the Year Ended |
|||||
|
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 |
572,473 |
558,774 |
78,700 |
2,355,412 |
2,457,242 |
346,095 |
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares used in |
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
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 |
View original content:https://www.prnewswire.com/news-releases/finvolution-group-reports-fourth-quarter-and-fiscal-year-2023-unaudited-financial-results-302091352.html
SOURCE