Pintec Announces Unaudited Financial Results for the First Half of 2021
Pintec Technology Holdings Limited (Nasdaq: PT) reported its unaudited financial results for the first half of 2021, showing total revenues of RMB91.6 million (US$14.2 million), down 63.6% from RMB251.6 million in the previous year. Gross profit was RMB42.0 million (US$6.5 million) with a gross margin of 45.8%. Operating loss decreased by 66% to RMB34.0 million (US$5.3 million), while net loss contracted by 60.7% to RMB41.0 million (US$6.3 million). The company highlighted an increase in wealth management revenues by 378%. Operating expenses were reduced by 46.8% compared to 2020.
- Gross margin improved to 45.8%, up from 17.0% YoY.
- Wealth management service fees increased by 378% to RMB22.2 million (US$3.4 million).
- Operating loss decreased by 66% to RMB34.0 million (US$5.3 million).
- Total operating expenses reduced by 46.8% YoY.
- Total revenues fell by 63.6% to RMB91.6 million (US$14.2 million).
- Technical service fees declined by 71.4% to RMB60.8 million (US$9.4 million).
- Installment service fees decreased by 75.2% to RMB8.6 million (US$1.3 million).
- Loan facilitation decreased by 66.7% to RMB0.4 billion (US$77.4 million).
BEIJING, Oct. 26, 2021 /PRNewswire/ -- Pintec Technology Holdings Limited (Nasdaq: PT) ("PINTEC" or the "Company"), a leading independent technology platform enabling financial services in China, today announced its unaudited financial results for the six months ended June 30, 2021.
First Half 2021 Financial Highlights
- Total revenues were RMB91.6 million (US
$14.2 million ) for the first half of 2021 compared to total revenues of RMB251.6 million for the same period of 2020. - Gross profit decreased by
1.6% to RMB42.0 million (US$6.5 million ) for the first half of 2021 from RMB42.7 million for the same period of 2020. Gross margin was45.8% for the first half of 2021 compared to17.0% for the same period of 2020. - Operating loss decreased by
66.0% to RMB34.0 million (US$5.3 million ) for the first half of 2021 from RMB100.0 million for the same period of 2020. - Net loss decreased by
60.7% to RMB41.0 million (US$6.3 million ) for the first half of 2021 from RMB104.2 million for the same period of 2020. - Adjusted net loss[1] decreased by
60.0% to RMB38.8 million (US$6.0 million ) for the first half of 2021 from RMB96.9 million for the same period of 2020.
First Half 2021 Operating Highlights
- Total loans facilitated decreased by
66.7% to RMB 0.4 billion (US$77.4 million ) for the first half of 2021 from RMB 1.2 billion for the same period of 2020. - Loan outstanding balance decreased by
50.0% to RMB 0.3 billion (US$46.5 million ) as of June 30, 2021 from RMB 0.6 billion as of December 31, 2020. - The following table provides delinquency rates by balance for all loans facilitated by the Company as of the dates indicated:
[1] Adjusted net income/(loss) is a non-GAAP financial measure, representing net income/(loss) before share-based compensation expenses. For more information on non-GAAP financial measures, please see the section of "Use of Non-GAAP Financial Measures Statement" and the tables captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this release. |
Delinquent for | |||||
16 - 30 days | 31 - 60 days | 61 - 90 days | |||
December 31, 2017 | |||||
December 31, 2018 | |||||
December 31, 2019 | |||||
December 31, 2020 | |||||
June 30, 2021 |
Mr. Victor Li, Chief Executive Officer of PINTEC, commented, "As we navigate through the short-term uncertainties into 2021, I am encouraged by our team's focus on executing our strategic business transformation initiatives and early signs of recovery in market demand. We continued to adjust insurance models, expand the strengths of our brands, deepen our partner channels, vigilantly manage risk profile while enhancing our asset quality. One of the key milestones I am excited to share is the recent new offering of the small and medium enterprise ("SME") technical services. Specifically, we plan to utilize our proven "SaaS + Fintech" model as a total solution in order to accelerate the digitization of SMEs, encompassing technology-based credit services and solutions to the manufacturing process and operations of these SMEs. As usual, we continue to deliver exceptional digitization services, and best-in-class solutions with innovative technology, thus to solidify our partnerships, satisfy our clients, and improve our overall delinquency rates.
In addition, for the first half of 2021, we significantly narrowed our net loss despite the expected period-over-period revenue contraction, primarily by significantly enhancing our gross margin by almost 2,900 basis points from optimized product portfolio, as well as disciplined cost management. Every line item of our expenses has declined, resulting in a total operating expense reduction of
First Half 2021 Financial Results
Total Revenues
Total revenues decreased by
- Revenues from technical service fees decreased by
71.4% to RMB60.8 million (US$9.4 million ) for the first half of 2021 from RMB212.1 million for the same period of 2020. This decrease was mainly due to the reduction of risk-sharing loan facilitation business, which in turn resulted in the decrease of off-balance sheet loans facilitated in the first half of 2021. - Revenues from installment service fees decreased by
75.2% to RMB8.6 million (US$1.3 million ) for the first half of 2021 from RMB34.8 million for the same period of 2020. This decrease was primarily due to the reduction in the Company's on-book installment loan volume during the first half of 2021. - Revenues from wealth management service fees increased by
378.0% to RMB22.2 million (US$3.4 million ) for the first half of 2021 from RMB4.7 million for the same period of 2020. This increase was mainly attributable to the successful adjustment of the Company's insurance brokerage business model, thus expanding revenue generation.
Cost of Revenues
Cost of revenues decreased by
Gross Profit
Gross profit decreased slightly to RMB42.0 million (US
Operating Expenses
Total operating expenses decreased by
- Sales and marketing expenses in the first half of 2021 decreased by
20.1% to RMB19.9 million (US$3.1 million ) from RMB24.9 million in the same period of 2020. This decrease was primarily driven by decreased promotion expenses. - General and administrative expenses in the first half of 2021 decreased by
59.2% to RMB37.9 million (US$5.9 million ) from RMB93.0 million in the same period of 2020. This decrease was primarily driven by strict overall cost control for the reduction of various items including, among other things, bad debt provision, and professional services fees. - Research and development expenses in the first half of 2021 decreased by
34.8% to RMB16.2 million (US$2.5 million ) from RMB24.8 million in the same period of 2020, primarily driven by personnel structure optimization as part of the business transformation. - Intangible assets impairment in the first half of 2021 increased to RMB2.0 million (US
$0.3 million ) from nil in the same period of 2020, primarily due to the changing market environment and transformation of original business.
Operating Loss
Operating loss decreased by
Net Loss
Net loss decreased by
Net loss attributable to ordinary shareholders decreased by
Adjusted net loss decreased by
Net Loss Per Share
Basic and diluted net loss per ordinary share in the first half of 2021 were both RMB0.13(US
Adjusted basic and diluted net loss per ordinary share in the first half of 2021 were both RMB0.12 (US
Balance Sheet
The Company had combined cash and cash equivalents, short-term and long-term restricted cash of RMB368.9 million (US
The Company's total net financing receivables, including short-term and long-term receivables, increased by
Use of Non-GAAP Financial Measures
In evaluating its business, the Company considers and uses adjusted net income/loss as a supplemental measure to review and assess its operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines adjusted net income/loss as net income/loss excluding share-based compensation expenses.
The Company believes that this non-GAAP financial measure can help management evaluate the Company's operating performance and formulate business plans. Adjusted net income/loss enables management to assess operating results without considering the impact of share-based compensation expenses. The Company also believes that this non-GAAP financial measure provides useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by management in their financial and operational decision-making.
This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using adjusted net income/loss is that it does not reflect all items of income and expenses that affect the Company's operations. The company will continue to incur share-based compensation expenses in its business, which are reflected in the presentation of its adjusted net income/loss. Further, this non-GAAP financial measure may differ from non-GAAP financial information used by other companies, including peer companies, and therefore its comparability may be limited.
The Company compensates for these limitations by reconciling this non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure, net income/loss, which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.
Exchange Rate
This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.4566 to US
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. Among other things, the quotations from management in this announcement, as well as PINTEC's strategic and operational plans, contain forward-looking statements. PINTEC may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. 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 inherent 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, the Company's limited operating history, regulatory uncertainties relating to the markets and industries where the Company operates, and the need to further diversify its financial partners, the Company's reliance on a limited number of business partners, the impact of current or future PRC laws or regulations on wealth management financial products, and the Company's ability to meet the standards necessary to maintain the listing of its ADSs on the Nasdaq Global Market, including its ability to cure any non-compliance with Nasdaq'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 the Company 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.
About PINTEC
PINTEC is a leading independent technology platform enabling financial services in China. By connecting business and financial partners on its open platform, PINTEC enables them to provide financial services to end users efficiently and effectively. The Company offers its partners a full suite of customized solutions, ranging from digital retail lending, digital business lending, robotic process automation, to wealth management and insurance products. Leveraging its scalable and reliable technology infrastructure, PINTEC serves a wide range of industry verticals covering online travel, e-commerce, telecommunications, online education, SaaS platforms, financial technology, internet search, and online classifieds and listings, as well as various types of financial partners including banks, brokers, insurance companies, investment funds and trusts, consumer finance companies and other similar institutions. For more information, please visit ir.pintec.com.
For further information, please contact:
Pintec Technology Holdings Ltd.
Phone: +86 (10) 8564-3600
E-mail: ir@pintec.com
Pintec Technology Holdings Ltd. | ||||||
Condensed Consolidated Balance Sheets | ||||||
As of | ||||||
(In thousands, except for share and per | December | June 30, | ||||
31, 2020 | 2021 | |||||
Unaudited | ||||||
RMB | RMB | USD | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | 377,160 | 362,235 | 56,103 | |||
Restricted cash | 137,220 | 1,218 | 189 | |||
Short-term financing receivables, net | 70,783 | 80,650 | 12,492 | |||
Short-term financial guarantee assets, net | 18,569 | 15,236 | 2,360 | |||
Accounts receivable, net | 50,979 | 54,762 | 8,482 | |||
Prepayments and other current assets, net | 66,160 | 57,708 | 8,939 | |||
Amounts due from related parties, net | 30 | 1,548 | 240 | |||
Total current assets | 720,901 | 573,357 | 88,805 | |||
Non-current assets: | ||||||
Non-current restricted cash | 7,964 | 5,417 | 839 | |||
Long‑term financing receivables, net | 2,835 | - | - | |||
Long-term financial guarantee assets, net | 698 | 204 | 32 | |||
Long‑term investments | 121,179 | 121,106 | 18,757 | |||
Deferred tax assets, net | 1,053 | 3,329 | 516 | |||
Property, equipment and software, net | 107,208 | 103,642 | 16,052 | |||
Intangible assets, net | 16,666 | 9,882 | 1,531 | |||
Total non-current assets | 257,603 | 243,580 | 37,727 | |||
TOTAL ASSETS | 978,504 | 816,937 | 126,532 | |||
LIABILITIES | ||||||
Current liabilities: | ||||||
Short-term borrowings | 130,000 | - | - | |||
Short-term funding debts | 2,841 | 1,297 | 201 | |||
Accounts payable | 10,360 | 23,295 | 3,608 | |||
Amounts due to related parties | 271,419 | 283,766 | 43,950 | |||
Tax payable | 26,971 | 25,786 | 3,994 | |||
Financial guarantee liabilities | 20,260 | 16,768 | 2,597 | |||
Accrued expenses and other liabilities | 59,754 | 45,439 | 7,041 | |||
Total current liabilities | 521,605 | 396,351 | 61,391 | |||
Non-current liabilities: | ||||||
Convertible loan | 400,000 | 400,000 | 61,952 | |||
Other non-current liabilities | 8,849 | 16,461 | 2,550 | |||
Total non-current liabilities | 408,849 | 416,461 | 64,502 | |||
TOTAL LIABILITIES | 930,454 | 812,812 | 125,893 | |||
SHAREHOLDERS' EQUITY | ||||||
Class A Ordinary Shares | 232 | 238 | 37 | |||
Class B Ordinary Shares | 42 | 42 | 6 | |||
Additional paid-in capital | 1,985,792 | 1,987,532 | 307,830 | |||
Statutory reserves | 30,763 | 30,865 | 4,780 | |||
Accumulated other comprehensive income | 19,913 | 15,199 | 2,354 | |||
Accumulated deficit | (2,155,679) | (2,194,547) | (339,892) | |||
TOTAL SHAREHOLDERS' EQUITY | (118,937) | (160,671) | (24,885) | |||
Non-controlling interests | 166,987 | 164,796 | 25,524 | |||
TOTAL EQUITY | 48,050 | 4,125 | 639 | |||
TOTAL LIABILITIES AND EQUITY | 978,504 | 816,937 | 126,532 |
Pintec Technology Holdings Ltd. | |||||||
Unaudited Condensed Consolidated Statements of Operations and Comprehensive loss | |||||||
For the Six Months Ended | |||||||
(In thousands, except for share and per share | June 30, | June 30, | June 30, | ||||
2020 | 2021 | 2021 | |||||
RMB | RMB | USD | |||||
Revenues: | |||||||
Technical service fees | 212,107 | 60,757 | 9,410 | ||||
Installment service fees | 34,831 | 8,622 | 1,335 | ||||
Wealth management service fees and others | 4,650 | 22,229 | 3,443 | ||||
Total revenues | 251,588 | 91,608 | 14,188 | ||||
Cost of revenues: | |||||||
Funding cost | (14,792) | (1,998) | (309) | ||||
(Provision for)/reversal of credit losses | (35,310) | 7,490 | 1,160 | ||||
Origination and servicing cost | (58,861) | (54,228) | (8,400) | ||||
(Cost on)/reversal of guarantee | (81,085) | 624 | 97 | ||||
Service cost charged by the related party | (18,889) | (1,517) | (235) | ||||
Cost of revenues | (208,937) | (49,629) | (7,687) | ||||
Gross profit | 42,651 | 41,979 | 6,501 | ||||
Operating expenses: | |||||||
Sales and marketing expenses | (24,866) | (19,868) | (3,077) | ||||
General and administrative expenses | (92,983) | (37,920) | (5,873) | ||||
Research and development expenses | (24,824) | (16,193) | (2,508) | ||||
Intangible assets impairment | - | (1,984) | (307) | ||||
Total operating expenses | (142,673) | (75,965) | (11,765) | ||||
Operating loss | (100,022) | (33,986) | (5,264) | ||||
Share of income from equity method | 1,540 | - | - | ||||
Other expenses, net | (6,861) | (8,640) | (1,338) | ||||
loss before income tax expense | (105,343) | (42,626) | (6,602) | ||||
Income tax benefit | 1,147 | 1,669 | 258 | ||||
Net loss | (104,196) | (40,957) | (6,344) | ||||
Net income/(loss) attributable to Non-controlling interest | 66 | (2,191) | (339) | ||||
Net loss attributable to Pintec Technology Holdings | (104,262) | (38,766) | (6,005) | ||||
Other comprehensive income: | |||||||
Fair value change in available for sale | - | (494) | (77) | ||||
Foreign currency translation adjustments, net | 6,936 | (4,220) | (654) | ||||
Total other comprehensive income | 6,936 | (4,714) | (731) | ||||
Total comprehensive loss | (97,260) | (45,671) | (7,075) | ||||
Total comprehensive income/(loss) attributable to | 66 | (2,191) | (339) | ||||
Total comprehensive loss attributable to Pintec | (97,326) | (43,480) | (6,736) | ||||
Net loss per ordinary share | |||||||
Basic and diluted | (0.35) | (0.13) | (0.02) | ||||
Weighted average ordinary shares outstanding | |||||||
Basic and diluted | 296,393,017 | 299,441,438 | 299,441,438 |
Pintec Technology Holdings Ltd. | ||||||
Unaudited Reconciliations of GAAP and Non-GAAP Results | ||||||
For the Six Months Ended | ||||||
(In thousands, except for share and per share data) | June 30, | June 30, | June 30, | |||
2020 | 2021 | 2021 | ||||
RMB | RMB | USD | ||||
Net loss | (104,196) | (40,957) | (6,344) | |||
Add: Share-based compensation expenses | 7,335 | 2,203 | 341 | |||
Adjusted net loss | (96,861) | (38,754) | (6,003) | |||
Net income/(loss) attributable to non-controlling | 66 | (2,191) | (339) | |||
Adjusted net loss attributable to Pintec Technology | (96,927) | (36,563) | (5,664) | |||
Adjusted net loss per ordinary share | ||||||
Basic and diluted | (0.33) | (0.12) | (0.02) | |||
Weighted average number of ordinary shares | ||||||
Basic and diluted | 296,393,017 | 299,441,438 | 299,441,438 |
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SOURCE Pintec Technology Holdings Limited
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