PINTEC Expands Cooperation with China Telecom Bestpay to Offer Handset Installment Services to Government and Enterprise Customers

Rhea-AI Summary

Pintec Technology Holdings Ltd. (NASDAQ: PT) announced an expanded partnership with China Telecom Bestpay, enhancing their cooperation on intelligent handset installment services for government and enterprise clients. This initiative builds on a previous collaboration initiated in 2017. The Chengfenqi product, designed for high-credit customers, aims to reduce financing costs for handset purchases. As of 2019, these services generated a loan volume of RMB513 million, showcasing the partnership's growth. Pintec continues to collaborate with major telecom operators, emphasizing its commitment to inclusive financing solutions.

Positive

• Expanded cooperation with China Telecom Bestpay for intelligent handset installment services.
• Development of Chengfenqi product tailored for government and enterprise employees, aiming to reduce financing costs.
• 2019 loan volume from collaboration reached RMB513 million, indicating strong market presence.
• Partnership with all three major telecom operators in China enhances service capabilities.

Negative

• None.

BEIJING, June 19, 2020 (GLOBE NEWSWIRE) -- Pintec Technology Holdings Ltd. (NASDAQ: PT) (“PINTEC” or the “Company”), a leading independent fintech solutions provider, today announced that it has expanded its cooperation with China Telecom Bestpay (“Bestpay”), a wholly-owned subsidiary of China Telecom Corporation Limited (“China Telecom”) and one of the largest payment platforms in China, to provide intelligent handset installment services to Bestpay’s government and enterprise customers. The Company began working with Bestpay to expand its cooperation scope in March 2020.

Leveraging PINTEC’s technological expertise, Bestpay has launched its handset financing product Chengfenqi to provide individual customers with intelligent installment payment services. Both parties have decided to develop the Chengfenqi product for government and large enterprise employees, which is a group of customers generally characterized by above-average credit quality. By utilizing the Company’s intelligent credit solutions, Chengfenqi is able to reduce the cost of financing for the targeted customer group and thus enable these customers to purchase handsets that are within their range of credit through installment payments.

PINTEC originally established its cooperation with Bestpay in February 2017 to provide technical support in the development of Bestpay’s financing products. These products, jointly developed by both parties, are currently available in over 70,000 China Telecom retail stores throughout 432 cities in 29 provinces across China. In 2019, those financing services that the Company jointly developed with Bestpay generated a total loan volume of RMB513 million.

“In order to fully satisfy the financing needs of Bestpay’s government and enterprise customers, we have further refined our service offerings and existing product matrix to develop financing solutions tailored to the specific needs of the targeted customer profile. Going forward, we plan to continue utilizing our extensive service experience and fintech expertise to provide Bestpay with advanced technical support,” commented PINTEC.

“In addition to our work with China Telecom, we have also established collaborations with both China Mobile Hebao Payments and China Unicom Wopay to develop world-class smart credit solutions. As one of the few fintech companies to serve all three major telecom operators in China, our success in this area continues to demonstrate our industry-leading service capabilities. Moreover, it is also further evidence of our ability to accelerate the development of inclusive financing services as well as eliminate the barriers to financing for those consumers who have been traditionally underserved in the domestic market. Looking into 2020 and beyond, we remain confident in the promise of this consumer segment and its potential to drive growth throughout the economy.”

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 online consumer finance in China, the Company’s reliance on Jimu Group for a significant portion of its funding 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, publicity regarding the consumer finance industry and the evolving regulatory environment governing this industry in China, 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 point-of-sale financing, personal installment loans and business installment loans, 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, peer-to-peer platforms and other similar institutions. For more information, please visit ir.pintec.com.

Investor Relations Contact

Joyce Tang
Pintec Technology Holdings Ltd.
Phone: +1-646-308-1622
E-mail: ir@pintec.com

Jack Wang
ICR Inc.
Phone: +1-646-308-1622
E-mail: pintec@icrinc.com

FAQ

What is Pintec Technology Holdings Ltd.'s recent announcement regarding China Telecom Bestpay?

Pintec announced an expanded partnership with China Telecom Bestpay to provide intelligent handset installment services to government and enterprise customers.

How much loan volume was generated from the partnership with Bestpay in 2019?

The partnership generated a total loan volume of RMB513 million in 2019.

What is the Chengfenqi product introduced by Pintec and Bestpay?

Chengfenqi is a handset financing product aimed at providing installment payment services for government and large enterprise employees.

When did Pintec originally start its cooperation with Bestpay?

Pintec originally began its cooperation with Bestpay in February 2017.

What are the potential benefits of Pintec's expanded cooperation with Bestpay?

The expansion aims to reduce financing costs for high-credit government and enterprise customers, thereby enhancing accessibility to handset purchases.