360 DigiTech Announces Second Quarter 2022 Unaudited Financial Results and Declares Quarterly Dividend
360 DigiTech (QFIN) reported its second-quarter financial results for 2022, showing total net revenue of RMB4.18 billion, up 4.5% year-over-year. The company facilitated RMB98.3 billion in loans, an 11% increase compared to the previous year, with a significant portion (55.7%) coming from its capital-light model. However, net income declined to RMB979.8 million, down from RMB1.55 billion year-over-year. The company expects 2022 loan facilitation volume between RMB410 billion and RMB450 billion, projecting growth of 15% to 26% despite ongoing macroeconomic challenges.
- Total net revenue increased by 4.5% to RMB4.18 billion.
- Loan facilitation volume reached RMB98.3 billion, up 11% year-over-year.
- Cumulative borrowers with successful drawdown increased by 14.8% to 25.6 million.
- Cumulative users with approved credit lines rose by 19% to 41.3 million.
- Capital-light model represented 55.7% of total loan volume, mitigating risks.
- Net income declined to RMB979.8 million from RMB1.55 billion year-over-year.
- Operating income dropped significantly from RMB1.85 billion in the same quarter of 2021.
- Regulatory challenges persisted amidst macroeconomic pressures.
SHANGHAI, Aug. 18, 2022 (GLOBE NEWSWIRE) -- 360 DigiTech, Inc. (QFIN) (“360 DigiTech” or the “Company”), a leading Credit-Tech platform in China, today announced its unaudited financial results for the second quarter ended June 30, 2022.
Second Quarter 2022 Business Highlights
- As of June 30, 2022, our platform has connected 133 financial institutional partners and 197.9 million consumers*1 with potential credit needs, cumulatively, an increase of
12.5% from 175.9 million a year ago. - Cumulative users with approved credit lines*2 were 41.3 million as of June 30, 2022, an increase of
19.0% from 34.7 million as of June 30, 2021. - Cumulative borrowers with successful drawdown, including repeat borrowers was 25.6 million as of June 30, 2022, an increase of
14.8% from 22.3 million as of June 30, 2021. - In the second quarter of 2022, financial institutional partners originated 14,078,969 loans*3 through our platform. Total facilitation and origination loan volume reached RMB98,281 million*4, an increase of
11.1% from RMB88,452 million in the same period of 2021. - Out of those loans originated by financial institutions, RMB54,784 million was under capital-light model, Intelligence Credit Engine (“ICE”) and other technology solutions*5, representing
55.7% of the total, an increase of10.4% from RMB49,638 million in the same period of 2021. - Total outstanding loan balance*6 was RMB150,490 million as of June 30, 2022, an increase of
28.0% from RMB117,559 million as of June 30, 2021. - RMB82,580 million of such loan balance was under capital-light model, “ICE” and other technology solutions*7, an increase of
41.9% from RMB58,187 million as of June 30, 2021. - Financial institutions granted approximately RMB4.9 billion credit lines to small and micro-sized enterprises and their owners (collectively, SMEs)*8 through our platform in the second quarter of 2022.
- The weighted average contractual tenor of loans originated by financial institutions across our platform in the second quarter of 2022 was approximately 12.06 months, compared with 10.66 months in the same period of 2021.
- 90 day+ delinquency rate*9 of loans originated by financial institutions across our platform was
2.62% as of June 30, 2022. - Repeat borrower contribution*10 of loans originated by financial institutions across our platform for the second quarter of 2022 was
88.4% .
1 Refers to cumulative registered users across our platform.
2 “Users with approved credit lines” refers to the total number of users who had submitted their credit applications and were approved with a credit line at the end of each period.
3 Including 5,100,153 loans across “V-pocket”, and 8,978,816 loans across other products.
4 Refers to the total principal amount of loans facilitated and originated during the given period, including loan volume facilitated through Intelligence Credit Engine (“ICE”) and other technology solutions.
5 “ICE” is an open platform on our “360 Jietiao” APP, we match borrowers and financial institutions through big data and cloud computing technology on “ICE”, and provide pre-loan investigation report of borrowers. For loans facilitated through “ICE”, the Company does not bear principal risk. Loan facilitation volume through “ICE” was RMB5,523 million in the second quarter of 2022.
Under other technology solutions, we offer financial institutions on-premise deployed, modular risk management SaaS, which helps financial institution partners improve credit assessment results. Loan facilitation volume through other technology solutions was RMB 19,554 million in the second quarter of 2022.
6 “Total outstanding loan balance” refers to the total amount of principal outstanding for loans facilitated and originated at the end of each period, including loan balance for “ICE” and other technology solutions, excluding loans delinquent for more than 180 days.
7 Outstanding loan balance for “ICE” and other technology solutions were RMB9,600 million and RMB18,827 million, respectively, as of June 30, 2022.
8 SME loans are loans issued to SMEs with e-commerce operations, with business sales receipt, and/or with business taxation record.
9 “90 day+ delinquency rate” refers to the outstanding principal balance of on- and off-balance sheet loans that were 91 to 180 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans across our platform as of a specific date. Loans that are charged-off and loans under “ICE” and other technology solutions are not included in the delinquency rate calculation.
10 “Repeat borrower contribution” for a given period refers to (i) the principal amount of loans borrowed during that period by borrowers who had historically made at least one successful drawdown, divided by (ii) the total loan facilitation and origination volume through our platform during that period.
Second Quarter 2022 Financial Highlights
- Total net revenue increased by
4.5% to RMB4,183.2 million (US$624.5 million ) from RMB4,001.6 million in the same period of 2021. - Income from operations was RMB1,010.8 million (US
$150.9 million ), compared to RMB1,853.1 million in the same period of 2021. - Non-GAAP*11 income from operations was RMB1,057.5 million (US
$157.9 million ), compared to RMB1,920.4 million in the same period of 2021. - Operating margin was
24.2% . Non-GAAP operating margin was25.3% . - Net income was RMB975.0 million (US
$145.6 million ), compared to RMB1,547.9 million in the same period of 2021. - Non-GAAP net income was RMB1,021.7 million (US
$152.5 million ), compared to RMB1,615.2 million in the same period of 2021. - Net income attributed to the Company was RMB979.8 million (US
$146.3 million ), compared to RMB1,547.6 million in the same period of 2021. - Net income margin was
23.3% . Non-GAAP net income margin was24.4% .
11 Non-GAAP income from operations (Adjusted Income from operations), Non-GAAP net income (Adjusted net income), Non-GAAP operating margin and Non-GAAP net income margin are non-GAAP financial measures. For more information on this non-GAAP financial measure, please see the section of “Use of Non-GAAP Financial Measures Statement” and the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.
Mr. Haisheng Wu, Chief Executive Officer and Director of 360 DigiTech, commented, “Despite experiencing very challenging macro environment and prolonged lockdowns and travel restrictions in Shanghai and other regions of China to counter the spread of COVID-19, we managed to deliver another solid quarter during which we achieved our key operational and financial targets. In the second quarter, total facilitation and origination volume was RMB98.3 billion, up approximately
During the quarter, we continued our efforts to optimize our user base to lower overall credit risks and higher user retention. Such efforts not only enabled us to drive better risk performance in an otherwise challenging environment, but also allowed us to further lowered our product pricing during this quarter. Average IRR of the loans originated and facilitated through our platform was well below
On the regulatory front, as one of the leading Credit-Tech platforms, we have worked diligently to implement necessary rectification to our operations and achieved key milestones in accordance with regulatory guidance and timelines. We note regulators’ recent comments regarding gradually shifting focus from rectification to regular supervision in many aspects of platform operations and we are also encouraged to see continued supportive statements for platform economy by various regulators.”
“We are pleased to report another quarter of solid financial results in a challenging macro environment. Total revenue was RMB4.18 billion and non-GAAP net income was RMB1.02 billion,” Mr. Alex Xu, Chief Financial Officer, commented. “During the quarter, we have smoothly navigated through the peak of the resurgence of COVID-19 and economic headwinds. Although we started to see modest recovery in consumer credit after lockdown measures were lifted in certain regions of China, we plan to continue to take a prudent approach to manage our business growth and risks. At the end of the second quarter, our total cash and cash equivalent*13 was approximately RMB11.4 billion, of which approximately RMB7.0 billion was non-restricted, further strengthening our financial positions to deal with near term economic challenges.”
Mr. Yan Zheng, Chief Risk Officer, added, “Second quarter presented unique challenges to risk management. On the one hand, lockdown measures related to COVID-19 hampered our collection operations in certain regions of China, which resulted in lower 30-day collection rates*14 early in the quarter. Following the easing of lockdown and other travel restrictions in June, 30-day collection rates recovered noticeably. Overall 30-day collection rates for the second quarter remained stable at around
12 We’ve mainly used data technology tools and AI credit assessment systems in the process of providing such services as loan facilitation, post-facilitation and borrowers’ referral to our customers. Revenues from these technology powered services accounted for
13 Including “Cash and cash equivalents”, “Restricted cash”, and “Security deposit prepaid to third-party guarantee companies”.
14 “30 day collection rate” is defined as (i) the amount of principal that was repaid in one month among the total amount of principal that became overdue as of specified date, divided by (ii) the total amount of principal that became overdue as of a specified date.
15 “Day-1 delinquency rate” is defined as (i) the total amount of principal that became overdue as of a specified date, divided by (ii) the total amount of principal that was due for repayment as of such date.
Second Quarter 2022 Financial Results
Total net revenue was RMB4,183.2 million (US
Net revenue from Credit Driven Services was RMB2,947.8 million (US
Loan facilitation and servicing fees-capital heavy were RMB580.4 million (US
Financing income*16 was RMB819.6 million (US
Revenue from releasing of guarantee liabilities was RMB1,524.5 million (US
Other services fees were RMB23.3 million (US
Net revenue from Platform Services was RMB1,235.4 million (US
Loan facilitation and servicing fees-capital light were RMB1,030.0 million (US
Referral services fees were RMB135.4 million (US
Other services fees were RMB70.1 million (US
Total operating costs and expenses were RMB3,172.4 million (US
Facilitation, origination and servicing expenses were RMB555.6 million (US
Funding costs were RMB123.9 million (US
Sales and marketing expenses were RMB615.1 million (US
General and administrative expenses were RMB93.9 million (US
Provision for loans receivable was RMB416.1 million (US
Provision for financial assets receivable was RMB103.7 million (US
Provision for accounts receivable and contract assets was RMB63.4 million (US
Provision for contingent liability was RMB1,200.7 million (US
Income from operations was RMB1,010.8 million (US
Non-GAAP income from operations was RMB1,057.5 million (US
Operating margin was
Income before income tax expense was RMB1,155.3 million (US
Net income attributed to the Company was RMB979.8 million (US
Non-GAAP net income attributed to the Company was RMB1,026.6 million (US
Net income margin was
Net income per fully diluted ADS was RMB6.12 (US
Non-GAAP net income per fully diluted ADS was RMB6.42 (US
Weighted average basic ADS used in calculating GAAP and non-GAAP net income per ADS was 155.81 million.
Weighted average diluted ADS used in calculating GAAP and non-GAAP net income per ADS was 159.94 million.
16 “Financing income” is generated from loans facilitated through the Company’s platform funded by the consolidated trusts and Fuzhou Microcredit, which charge fees and interests from borrowers.
30 Day+ Delinquency Rate by Vintage and 180 Day+ Delinquency Rate by Vintage
The following charts and tables display the historical cumulative 30 day+ delinquency rates by loan facilitation and origination vintage and 180 day+ delinquency rates by loan facilitation and origination vintage for all loans facilitated and originated through the Company’s platform. Loans under “ICE” and other technology solutions are not included in the 30 day+ charts and the 180 day+ charts:
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Quarterly Dividend
The board of directors of the Company has approved a dividend of US
Business Outlook
Given the current macro economic conditions, the Company expects to continue to take a prudent approach in its business planning. As such the Company would like to maintain its outlook for loan facilitation and origination volume for 2022 at between RMB410 billion and RMB450 billion, representing year-on-year growth of
Conference Call
360 DigiTech’s management team will host an earnings conference call at 8:30 PM U.S. Eastern Time on Thursday, August 18, 2022 (8:30 AM Beijing Time on Friday, August 19).
| United States: | +1-646-722-4977 |
| Hong Kong: | +852-3027-6500 |
| Mainland China: | 400-821-0637 |
| International: | +65-6408-5782 |
| PIN: | 22390058# |
Please dial in 15 minutes before the call is scheduled to begin and provide the PIN to join the call.
A telephone replay of the call will be available after the conclusion of the conference call until August 25, 2022:
| United States: | +1-646-982-0473 |
| International: | +65-6408-5781 |
| Access code: | 520003785# |
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of the Company's website at ir.360shuke.com.
About 360 DigiTech
360 DigiTech, Inc. (NASDAQ: QFIN) (“360 DigiTech” or the “Company”) is a leading Credit-Tech platform. Through its platform the Company enables financial institutions to provide better and targeted products and services to a broader consumer base. The Company also offers standardized risk management service, in the form of SaaS modules to institutional clients. The Company’s solutions provide seamless experiences and create noticeable advantages in customer acquisition, funding optimization, risk assessment and post-lending management.
For more information, please visit: ir.360shuke.com
Use of Non-GAAP Financial Measures Statement
To supplement our financial results presented in accordance with U.S. GAAP, we use non-GAAP financial measure, which is adjusted from results based on U.S. GAAP to exclude share-based compensation expenses. Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are set forth in tables at the end of this earnings release, which provide more details on the non-GAAP financial measures.
We use non-GAAP income from operation, non-GAAP operation margin, non-GAAP net income, non-GAAP net income margin, Non-GAAP net income attributed to the Company and Non-GAAP net income per fully diluted ADS in evaluating our operating results and for financial and operational decision-making purposes. Non-GAAP income from operation represents income from operation excluding share-based compensation expenses, non-GAAP net income represents net income excluding share-based compensation expenses, non-GAAP net income attributed to the Company represents net income attributed to the Company excluding share-based compensation expenses and non-GAAP net income per fully diluted ADS represents net income per fully diluted ADS excluding share-based compensation. Such adjustments have no impact on income tax. We believe that non-GAAP income from operation and non-GAAP net income help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in results based on U.S. GAAP. We believe that non-GAAP income from operation and non-GAAP net income provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. Our non-GAAP financial information should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for or superior to U.S. GAAP results. In addition, our calculation of non-GAAP financial information may be different from the calculation used by other companies, and therefore comparability may be limited.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.6981 to US
Safe Harbor Statement
Any forward-looking statements contained in this announcement are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. 360 DigiTech may also make written or oral forward-looking statements in its reports to the U.S. Securities and Exchange Commission ("SEC"), 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. Statements that are not historical facts, including the Company’s business outlook, beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, which factors include but not limited to the following: the Company’s growth strategies, the Company’s cooperation with 360 Group, changes in laws, rules and regulatory environments, the recognition of the Company’s brand, market acceptance of the Company’s products and services, trends and developments in the credit-tech industry, governmental policies relating to the credit-tech industry, general economic conditions in China and around the globe, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks and uncertainties is included in 360 DigiTech's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and 360 DigiTech does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For more information, please contact:
360 DigiTech
E-mail: ir@360shuke.com
Christensen
In China
Mr. Eric Yuan
Phone: +86-138-0111-0739
E-mail: Eyuan@christensenir.com
In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com
| Unaudited Condensed Consolidated Balance Sheets (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”) except for number of shares and per share data, or otherwise noted) | |||||
| December 31, | June 30, | June 30, | |||
| 2021 | 2022 | 2022 | |||
| RMB | RMB | USD | |||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 6,116,360 | 6,965,238 | 1,039,883 | ||
| Restricted cash | 2,643,587 | 3,764,988 | 562,098 | ||
| Security deposit prepaid to third-party guarantee companies | 874,886 | 698,478 | 104,280 | ||
| Funds receivable from third party payment service providers | 153,151 | 312,447 | 46,647 | ||
| Accounts receivable and contract assets, net | 3,097,254 | 3,499,385 | 522,444 | ||
| Financial assets receivable, net | 3,806,243 | 3,618,560 | 540,237 | ||
| Amounts due from related parties | 837,324 | 733,386 | 109,492 | ||
| Loans receivable, net | 9,844,481 | 10,850,458 | 1,619,931 | ||
| Prepaid expenses and other assets | 383,937 | 364,908 | 54,479 | ||
| Total current assets | 27,757,223 | 30,807,848 | 4,599,491 | ||
| Non-current assets: | |||||
| Accounts receivable and contract assets, net-non current | 223,474 | 291,908 | 43,581 | ||
| Financial assets receivable, net-non current | 597,965 | 683,078 | 101,981 | ||
| Amounts due from related parties | 140,851 | 55,136 | 8,231 | ||
| Loans receivable, net-non current | 2,859,349 | 3,657,879 | 546,107 | ||
| Property and equipment, net | 24,941 | 20,487 | 3,059 | ||
| Land use rights,net | 1,018,908 | 1,008,548 | 150,572 | ||
| Intangible assets | 4,961 | 5,231 | 781 | ||
| Deferred tax assets | 834,717 | 1,059,963 | 158,248 | ||
| Other non-current assets | 42,606 | 76,030 | 11,351 | ||
| Total non-current assets | 5,747,772 | 6,858,260 | 1,023,911 | ||
| TOTAL ASSETS | 33,504,995 | 37,666,108 | 5,623,402 | ||
| LIABILITIES AND EQUITY | |||||
| Current liabilities: | |||||
| Payable to investors of the consolidated trusts-current | 2,304,518 | 5,224,973 | 780,068 | ||
| Accrued expenses and other current liabilities | 2,258,329 | 2,117,357 | 316,113 | ||
| Amounts due to related parties | 214,057 | 178,687 | 26,677 | ||
| Short term loans | 397,576 | 611,164 | 91,244 | ||
| Guarantee liabilities-stand ready | 4,818,144 | 4,538,963 | 677,649 | ||
| Guarantee liabilities-contingent | 3,285,081 | 3,320,414 | 495,725 | ||
| Income tax payable | 624,112 | 654,347 | 97,691 | ||
| Other tax payable | 241,369 | 177,611 | 26,517 | ||
| Total current liabilities | 14,143,186 | 16,823,516 | 2,511,684 | ||
| Non-current liabilities: | |||||
| Deferred tax liabilities | 121,426 | 173,777 | 25,944 | ||
| Payable to investors of the consolidated trusts-noncurrent | 4,010,597 | 3,613,690 | 539,510 | ||
| Other long-term liabilities | 13,177 | 34,147 | 5,099 | ||
| Total non-current liabilities | 4,145,200 | 3,821,614 | 570,553 | ||
| TOTAL LIABILITIES | 18,288,386 | 20,645,130 | 3,082,237 | ||
| TOTAL 360 DIGITECH INC EQUITY | 15,203,863 | 17,018,256 | 2,540,759 | ||
| Noncontroling interests | 12,746 | 2,722 | 406 | ||
| TOTAL EQUITY | 15,216,609 | 17,020,978 | 2,541,165 | ||
| TOTAL LIABILITIES AND EQUITY | 33,504,995 | 37,666,108 | 5,623,402 | ||
| Unaudited Condensed Consolidated Statements of Operations (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”) except for number of shares and per share data, or otherwise noted) | |||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||
| 2021 | 2022 | 2022 | 2021 | 2022 | 2022 | ||||||||
| RMB | RMB | USD | RMB | RMB | USD | ||||||||
| Credit driven services | 2,404,695 | 2,947,767 | 440,090 | 4,856,038 | 5,868,397 | 876,129 | |||||||
| Loan facilitation and servicing fees-capital heavy | 540,737 | 580,360 | 86,645 | 1,265,047 | 1,141,771 | 170,462 | |||||||
| Financing income | 488,088 | 819,572 | 122,359 | 897,528 | 1,608,820 | 240,191 | |||||||
| Revenue from releasing of guarantee liabilities | 1,352,307 | 1,524,547 | 227,609 | 2,647,734 | 3,074,515 | 459,013 | |||||||
| Other services fees | 23,563 | 23,288 | 3,477 | 45,729 | 43,291 | 6,463 | |||||||
| Platform services | 1,596,863 | 1,235,432 | 184,446 | 2,744,729 | 2,634,849 | 393,373 | |||||||
| Loan facilitation and servicing fees-capital light | 1,398,713 | 1,030,024 | 153,779 | 2,392,602 | 2,128,955 | 317,845 | |||||||
| Referral services fees | 160,264 | 135,352 | 20,208 | 286,594 | 382,650 | 57,128 | |||||||
| Other services fees | 37,886 | 70,056 | 10,459 | 65,533 | 123,244 | 18,400 | |||||||
| Total net revenue | 4,001,558 | 4,183,199 | 624,536 | 7,600,767 | 8,503,246 | 1,269,502 | |||||||
| Facilitation, origination and servicing | 557,979 | 555,631 | 82,954 | 1,035,735 | 1,170,561 | 174,760 | |||||||
| Funding costs | 83,164 | 123,862 | 18,492 | 162,242 | 227,630 | 33,984 | |||||||
| Sales and marketing | 499,937 | 615,080 | 91,829 | 884,946 | 1,167,657 | 174,327 | |||||||
| General and administrative | 139,278 | 93,890 | 14,017 | 243,774 | 216,148 | 32,270 | |||||||
| Provision for loans receivable | 246,979 | 416,090 | 62,121 | 381,887 | 907,317 | 135,459 | |||||||
| Provision for financial assets receivable | 58,516 | 103,703 | 15,482 | 103,576 | 164,217 | 24,517 | |||||||
| Provision for accounts receivable and contract assets | 100,684 | 63,417 | 9,468 | 157,116 | 117,025 | 17,471 | |||||||
| Provision for contingent liabilities | 461,910 | 1,200,742 | 179,266 | 1,220,586 | 2,162,638 | 322,873 | |||||||
| Total operating costs and expenses | 2,148,447 | 3,172,415 | 473,629 | 4,189,862 | 6,133,193 | 915,661 | |||||||
| Income from operations | 1,853,111 | 1,010,784 | 150,907 | 3,410,905 | 2,370,053 | 353,841 | |||||||
| Interest income, net | 46,491 | 43,771 | 6,535 | 82,875 | 68,188 | 10,180 | |||||||
| Foreign exchange gain (loss) | 21,886 | (91,610 | ) | (13,677 | ) | 13,895 | (86,658 | ) | (12,938 | ) | |||
| Other income, net | 31,697 | 196,410 | 29,323 | 50,811 | 203,458 | 30,375 | |||||||
| Investment loss | - | (4,096 | ) | (612 | ) | - | (8,996 | ) | (1,343 | ) | |||
| Income before income tax expense | 1,953,185 | 1,155,259 | 172,476 | 3,558,486 | 2,546,045 | 380,115 | |||||||
| Income taxes expense | (405,305 | ) | (180,303 | ) | (26,919 | ) | (663,357 | ) | (396,732 | ) | (59,231 | ) | |
| Net income | 1,547,880 | 974,956 | 145,557 | 2,895,129 | 2,149,313 | 320,884 | |||||||
| Net (income) loss attributable to noncontrolling interests | (235 | ) | 4,883 | 729 | (42 | ) | 10,024 | 1,497 | |||||
| Net income attributable to ordinary shareholders of the Company | 1,547,645 | 979,839 | 146,286 | 2,895,087 | 2,159,337 | 322,381 | |||||||
| Net income per ordinary share attributable to ordinary shareholders of 360 DigiTech, Inc. | |||||||||||||
| Basic | 5.04 | 3.14 | 0.47 | 9.46 | 6.94 | 1.04 | |||||||
| Diluted | 4.81 | 3.06 | 0.46 | 9.02 | 6.74 | 1.01 | |||||||
| Net income per ADS attributable to ordinary shareholders of 360 DigiTech, Inc. | |||||||||||||
| Basic | 10.08 | 6.28 | 0.94 | 18.92 | 13.88 | 2.08 | |||||||
| Diluted | 9.62 | 6.12 | 0.92 | 18.04 | 13.48 | 2.02 | |||||||
| Weighted average shares used in calculating net income per ordinary share | |||||||||||||
| Basic | 306,879,800 | 311,615,233 | 311,615,233 | 305,886,883 | 311,109,257 | 311,109,257 | |||||||
| Diluted | 321,969,767 | 319,874,351 | 319,874,351 | 320,958,192 | 320,251,194 | 320,251,194 | |||||||
| Unaudited Condensed Consolidated Statements of Cash Flows (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”) except for number of shares and per share data, or otherwise noted) | |||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||
| 2021 | 2022 | 2022 | 2021 | 2022 | 2022 | ||||||||
| RMB | RMB | USD | RMB | RMB | USD | ||||||||
| Net cash provided by operating activities | 1,256,531 | 1,118,314 | 166,960 | 2,001,639 | 2,537,911 | 378,900 | |||||||
| Net cash (used in) investing activities | (2,235,840 | ) | (252,787 | ) | (37,740 | ) | (2,287,998 | ) | (2,694,432 | ) | (402,267 | ) | |
| Net cash provided by financing activities | 562,253 | 1,052,143 | 157,081 | 1,351,545 | 2,129,177 | 317,877 | |||||||
| Effect of foreign exchange rate changes | (1,316 | ) | 1,443 | 215 | (2,752 | ) | (2,377 | ) | (355 | ) | |||
| Net (decrease) increase in cash and cash equivalents | (418,372 | ) | 1,919,113 | 286,516 | 1,062,434 | 1,970,279 | 294,155 | ||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 8,255,072 | 8,811,113 | 1,315,465 | 6,774,266 | 8,759,947 | 1,307,826 | |||||||
| Cash, cash equivalents, and restricted cash, end of period | 7,836,700 | 10,730,226 | 1,601,981 | 7,836,700 | 10,730,226 | 1,601,981 | |||||||
| In December 2021, the Company acquired | |||||||||||||
| Unaudited Condensed Consolidated Statements of Comprehensive Income (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”) except for number of shares and per share data, or otherwise noted) | ||||||
| Three months ended June 30, | ||||||
| 2021 | 2022 | 2022 | ||||
| RMB | RMB | USD | ||||
| Net income | 1,547,880 | 974,956 | 145,557 | |||
| Other comprehensive income, net of tax of nil: | ||||||
| Foreign currency translation adjustment | (22,013 | ) | 49,579 | 7,402 | ||
| Other comprehensive (loss) income | (22,013 | ) | 49,579 | 7,402 | ||
| Total comprehensive income | 1,525,867 | 1,024,535 | 152,959 | |||
| Comprehensive (income) loss attributable to noncontrolling interests | (235 | ) | 4,883 | 729 | ||
| Comprehensive income attributable to ordinary shareholders | 1,525,632 | 1,029,418 | 153,688 | |||
| Six months ended June 30, | ||||||
| 2021 | 2022 | 2022 | ||||
| RMB | RMB | USD | ||||
| Net income | 2,895,129 | 2,149,313 | 320,884 | |||
| Other comprehensive income, net of tax of nil: | ||||||
| Foreign currency translation adjustment | (15,792 | ) | 43,320 | 6,468 | ||
| Other comprehensive (loss) income | (15,792 | ) | 43,320 | 6,468 | ||
| Total comprehensive income | 2,879,337 | 2,192,633 | 327,352 | |||
| Comprehensive (income) loss attributable to noncontrolling interests | (42 | ) | 10,024 | 1,497 | ||
| Comprehensive income attributable to ordinary shareholders | 2,879,295 | 2,202,657 | 328,849 | |||
| Unaudited Reconciliations of GAAP and Non-GAAP Results (Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”) except for number of shares and per share data, or otherwise noted) | ||||||
| Three months ended June 30, | ||||||
| 2021 | 2022 | 2022 | ||||
| RMB | RMB | USD | ||||
| Reconciliation of Non-GAAP Net Income to Net Income | ||||||
| Net income | 1,547,880 | 974,956 | 145,557 | |||
| Add: Share-based compensation expenses | 67,285 | 46,759 | 6,981 | |||
| Non-GAAP net income | 1,615,165 | 1,021,715 | 152,538 | |||
| GAAP net income margin | 38.7 | % | 23.3 | % | ||
| Non-GAAP net income margin | 40.4 | % | 24.4 | % | ||
| Net income attributable to shareholders of 360 DigiTech, Inc | 1,547,645 | 979,839 | 146,286 | |||
| Add: Share-based compensation expenses | 67,285 | 46,759 | 6,981 | |||
| Non-GAAP net income attributable to shareholders of 360 DigiTech, Inc | 1,614,930 | 1,026,598 | 153,267 | |||
| Weighted average ADS used in calculating net income per ordinary share for both GAAP and non-GAAP EPS -diluted | 160,984,884 | 159,937,176 | 159,937,176 | |||
| Net income per ADS attributable to ordinary shareholders of 360 DigiTech, Inc. -diluted | 9.62 | 6.12 | 0.92 | |||
| Non-GAAP net income per ADS attributable to ordinary shareholders of 360 DigiTech, Inc. -diluted | 10.03 | 6.42 | 0.96 | |||
| Reconciliation of Non-GAAP Income from operations to Income from operations | ||||||
| Income from operations | 1,853,111 | 1,010,784 | 150,907 | |||
| Add: Share-based compensation expenses | 67,285 | 46,759 | 6,981 | |||
| Non-GAAP Income from operations | 1,920,396 | 1,057,543 | 157,888 | |||
| GAAP operating margin | 46.3 | % | 24.2 | % | ||
| Non-GAAP operating margin | 48.0 | % | 25.3 | % | ||
| Six months ended June 30, | ||||||
| 2021 | 2022 | 2022 | ||||
| RMB | RMB | USD | ||||
| Reconciliation of Non-GAAP Net Income to Net Income | ||||||
| Net income | 2,895,129 | 2,149,313 | 320,884 | |||
| Add: Share-based compensation expenses | 126,831 | 98,833 | 14,755 | |||
| Non-GAAP net income | 3,021,960 | 2,248,146 | 335,639 | |||
| GAAP net income margin | 38.1 | % | 25.3 | % | ||
| Non-GAAP net income margin | 39.8 | % | 26.4 | % | ||
| Net income attributable to shareholders of 360 DigiTech, Inc | 2,895,087 | 2,159,337 | 322,381 | |||
| Add: Share-based compensation expenses | 126,831 | 98,833 | 14,755 | |||
| Non-GAAP net income attributable to shareholders of 360 DigiTech, Inc | 3,021,918 | 2,258,170 | 337,136 | |||
| Weighted average ADS used in calculating net income per ordinary share for both GAAP and non-GAAP EPS -diluted | 160,479,096 | 160,125,597 | 160,125,597 | |||
| Net income per ADS attributable to ordinary shareholders of 360 DigiTech, Inc. -diluted | 18.04 | 13.48 | 2.02 | |||
| Non-GAAP net income per ADS attributable to ordinary shareholders of 360 DigiTech, Inc. -diluted | 18.83 | 14.10 | 2.11 | |||
| Reconciliation of Non-GAAP Income from operations to Income from operations | ||||||
| Income from operations | 3,410,905 | 2,370,053 | 353,841 | |||
| Add: Share-based compensation expenses | 126,831 | 98,833 | 14,755 | |||
| Non-GAAP Income from operations | 3,537,736 | 2,468,886 | 368,596 | |||
| GAAP operating margin | 44.9 | % | 27.9 | % | ||
| Non-GAAP operating margin | 46.5 | % | 29.0 | % | ||
FAQ
What were the second quarter 2022 financial results of 360 DigiTech (QFIN)?
How much did 360 DigiTech facilitate in loans during the second quarter of 2022?
What is the loan facilitation outlook for 360 DigiTech in 2022?
How did the pandemic impact 360 DigiTech's performance in Q2 2022?
