360 DigiTech Announces Third Quarter 2020 Unaudited Financial Results
360 DigiTech (QFIN) announced its Q3 2020 results, highlighting a 43.4% revenue increase to RMB3,703.5 million and a net income rise of 67.9% to RMB1,231.7 million. Loan origination volume grew 17.9% year-over-year to RMB66,000 million, with capital-light model loans increasing 48.7%. The company reported 155.96 million registered users, a 23.8% increase, and a 90-day+ delinquency ratio of 1.96%. 360 DigiTech raised its total loan origination forecast for FY 2020 to RMB242-244 billion.
- Revenue increased by 43.4% to RMB3,703.5 million.
- Net income rose by 67.9% to RMB1,231.7 million.
- Loan origination volume grew by 17.9% to RMB66,000 million.
- Cumulative registered users reached 155.96 million, up 23.8%.
- 90-day+ delinquency ratio improved to 1.96%.
- Regulatory headwinds reported late in the quarter.
- Decrease in referral services fees due to conservative customer acquisition.
SHANGHAI, Nov. 19, 2020 (GLOBE NEWSWIRE) -- 360 DigiTech, Inc. (QFIN) (“360 DigiTech” or the “Company”), a data driven, technology empowered digital platform, today announced its unaudited financial results for the third quarter ended September 30, 2020.
Third Quarter Operational Highlights
- Total loan origination volume*1 was RMB66,000 million, representing an increase of
17.9% from RMB55,965 million in the same period of 2019. Loan origination volume under capital-light model within Platform Services was RMB16,908 million, an increase of48.7% from RMB11,373 million in the same period of 2019. - Total outstanding loan balance*2 was RMB84,214 million as of September 30, 2020, an increase of
19.3% from RMB70,568 million as of September 30, 2019. Outstanding loan balance under capital-light model within Platform Services was RMB21,453 million as of September 30, 2020, an increase of97.2% from RMB10,877 million as of September 30, 2019. - The weighted average tenor of loans*3 originated in the third quarter of 2020 was approximately 8.40 months, compared with 7.90 months in the same period of 2019, and 8.54 months in the second quarter of 2020.
- Cumulative registered users was 155.96 million, an increase of
23.8% from 126.00 million as of September 30, 2019, and an increase of4.7% from 148.98 million as of June 30, 2020. - Users with approved credit lines*4 was 29.28 million as of September 30, 2020, an increase of
28.3% from 22.83 million as of September 30, 2019, and an increase of5.7% from 27.71 million as of June 30, 2020. - Cumulative borrowers with successful drawdown, including repeat borrowers was 18.71 million as of September 30, 2020, an increase of
27.0% from 14.73 million as of September 30, 2019, and an increase of5.3% from 17.77 million as of June 30, 2020. - 90 day+ delinquency ratio*5 was
1.96% as of September 30, 2020. - The percentage of funding from financial institutions*6 in the third quarter of 2020 was
99% . - Repeat borrower contribution*7 for the third quarter of 2020 was
86.7% .
1 “Total loan origination volume” refers to the total principal amount of loans originated through the Company’s platform during the given period, including loans volume originated through Intelligence Credit Engine (“ICE”). “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 originated through “ICE”, the Company do not provide post-loan risk management nor bear principal risk.
2 “Total outstanding loan balance” refers to the total amount of principal outstanding for loans originated through the Company’s platform at the end of each period, including loan balance for “ICE”, excluding loans delinquent for more than 180 days.
3 For loan facilitated in 2020, we use the actual term for extinguished loans and use the contractual term for outstanding loans to calculate the weighted average tenor.
4 “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 by the Company at the end of each period.
5 “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 our platform as of a specific date. Loans that are charged-off and loans under “ICE” are not included in the delinquency rate calculation.
6 “The percentage of funding from financial institutions” is based on cumulative loan origination during the given period, excluding loans originated by our own funds.
7 “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 origination volume through our platform during that period.
Third Quarter 2020 Financial Highlights
- Total net revenue increased by
43.4% to RMB3,703.5 million (US$545.5 million ) from RMB2,583.0 million in the same period of 2019. - Income from operations increased by
45.5% to RMB1,371.4 million (US$202.0 million ) from RMB942.4 million in the same period of 2019. - Non-GAAP*8 income from operations increased by
48.0% to RMB1,427.8 million (US$210.3 million ) from RMB964.7 million in the same period of 2019. - Operating margin was
37.0% . Non-GAAP operating margin was38.6% . - Net income increased by
67.9% to RMB1,231.7 million (US$181.4 million ) from RMB733.5 million in the same period of 2019. - Non-GAAP net income increased by
70.4% to RMB1,288.1 million (US$189.7 million ) from RMB755.8 million in the same period of 2019. - Net income margin was
33.3% . Non-GAAP net income margin was34.8% .
8 Non-GAAP income from operations (Adjusted Income from operations) and Non-GAAP net income (Adjusted net income) 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, “We are very pleased to report yet another strong quarter with best ever operational metrics and record setting financial results. In the third quarter, loans originated through our digital platform grew nearly
Throughout the quarter, we have witnessed continued recovery in consumer demand for credit and further improvement in asset quality. In fact, some key leading indicators of asset quality of our customers are at the best levels ever, a strong testimony for our effective risk management and solid overall execution. As the domestic outbreak of COVID-19 has been largely contained and the macro economy is on a recovery track, we are well positioned to benefit from the positive trends and to further strengthen our leadership position in the industry.
It has been a quite busy period over last few months on the regulation front. In July, the official release of the “Interim Measures for Administration of Internet Loans Issued by Commercial Banks” by the CBIRC clearly validated our business model and provided detailed guidelines for the industry. In August, the Supreme People’s Court of China issued “Guidelines on Laws Applicable to Trials of Private Lending Cases” setting a series of rules for private lending, including an interest rate cap. In early November, the CBIRC issued a draft version of “Interim Administrative Measures for Online Micro-credit Business” aiming to cap leverage ratios in micro lending and joint-lending activities. We believe this new set of rules are consistent with the regulators’ effort in recent years to deleverage the financial system and mitigate potential systematic risk. We have marginal exposure in micro lending and joint-lending. Also in November, the CBIRC issued “Notice on Promoting the Sustainable Development Capability of Consumer Finance and Auto Finance Companies and Improving Quality and Efficiency of Financial Services”, which clearly set out specific practices for the cooperation between consumer finance companies and loan facilitation platforms. Such regulatory changes appeared favoring leading platform with strong risk management and regulatory compliance capability. We see opportunities to expand the service scope and depth of our data driven technology empowered digital platform to reach our long-term strategic goals.”
“We are very excited to report our first ever billion RMB quarter in term of non-GAAP net income. During the quarter, total revenue reached RMB3.70 billion and non-GAAP net income reached RMB1.29 billion. The robust financial performance was driven by noticeable improvement in macro environment and continued optimization of our operations.” Mr. Alex Xu, Chief Financial Officer, commented “We are particularly pleased to see the initial impact of the latest interest rate cap was partially offset by improved operational efficiency. Unit customer acquisition cost remained relatively stable and weighted average funding cost reached another new low in the quarter. At the end of the quarter we had approximately RMB7.9 billion in cash and cash equivalent on the balance sheet, of which approximately RMB4.8 billion was non-restricted. While there are still some uncertainties concerning our industry, we are highly confident to exceed the stated operational targets we set out earlier this year.”
Mr. Yan Zheng, Chief Risk Officer, added, “The noticeable improvement in asset quality continued in the quarter. Among the key leading indicators, Day-1 delinquency*10 decreased to approximately
9 "We've used mainly data technology tools and AI risk management systems in the process of providing such services as loan facilitation, post-origination and borrowers' referral to our customers. Revenue from these technology powered services amount to
10 "D1 delinquency rate" is defined as (i) the total amount of principal that became overdue as a specified date, divided by (ii) the total amount of principal that was due for repayment as of such date.
11 "M1 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 a specified date, divided by (ii) the total amount of principal that became overdue as a specified date.
Third Quarter 2020 Financial Results
Total net revenues was RMB3,703.5 million (US
Net revenue from Credit Driven Services was RMB2,955.4 million (US
Loan facilitation and servicing fees-capital heavy were RMB1,220.7 million (US
Financing income*12 was RMB530.8 million (US
Revenue from releasing of guarantee liabilities was RMB1,172.6 million (US
Other services fees were RMB31.2 million (US
Net revenue from Platform Services was RMB748.1 million (US
Loan facilitation and servicing fees-capital light were RMB663.4 million (US
Referral services fees were RMB68.1 million (US
Other services fees were RMB16.7 million (US
Total operating costs and expenses were RMB2,332.1 million (US
Origination and servicing expenses were RMB408.7 million (US
Funding costs were RMB144.6 million (US
Sales and marketing expenses were RMB271.1 million (US
General and administrative expenses were RMB102.4 million (US
Provision for loans receivable was RMB67.4 million (US
Provision for financial assets receivable was RMB81.6 million (US
Provision for accounts receivable and contract assets was RMB66.2 million (US
Provision for contingent liability was RMB1,190.2 million (US
Income from operations was RMB1,371.4 million (US
Non-GAAP income from operations was RMB1,427.8 million (US
Operating margin was
Income before income tax expense was RMB1,459.0 million (US
Income taxes expense was RMB227.3 million (US
Net income attributed to the Company was RMB1,231.9 million (US
Non-GAAP net income attributed to the Company was RMB1,288.3 million (US
Net income margin was
Net income per fully diluted ADS was RMB7.98 (US
Non-GAAP net income per fully diluted ADS was RMB8.35 (US
Weighted average basic ADS used in calculating GAAP and non-GAAP net income per ADS was 150.09 million.
Weighted average diluted ADS used in calculating GAAP and non-GAAP net income per ADS was 154.32 million.
12 “Financing income” is generated from loans originated through the Company’s platform funded by the consolidated trusts and Fuzhou Microcredit, which charge fees and interests from borrowers.
M1+ Delinquency Rate by Vintage and M6+ Delinquency Rate by Vintage
The following charts and tables display the historical cumulative M1+ delinquency rates by loan origination vintage and M6+ delinquency rates by loan origination vintage for all loans originated through the company’s platform:
http://ml.globenewswire.com/Resource/Download/f3cac188-719e-4204-86ae-79c9c00f0e97
http://ml.globenewswire.com/Resource/Download/56137440-b531-4b7d-9629-16301f0aa360
Business Outlook
While it is still prudent to take a conservative approach in business and financial planning given the fast changing regulatory environment as well as some residual impact from the COVID-19, we are encouraged by the strong business momentum. As such the Company would like to raise its total loan origination volume target for fiscal year 2020 to the range of RMB 242 billion to RMB 244 billion, from previous guidance of RMB 200 billion to RMB 220 billion. This forecast reflects the Company’s current and preliminary views, which is subject to change.
Recently Adopted Accounting Guidance
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which has subsequently been amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11 and ASU 2020-03. This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2019, including final periods within those fiscal years.
We have adopted the new standard effective January 1, 2020, using the modified retrospective transition method. The new guidance requires the recognition of credit losses to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). ASC 326 establishes a new accounting principle which requires gross accounting for guarantee liability. That is, to record both a guarantee obligation and an allowance for credit losses, calculated using the CECL impairment model, in addition to the guarantee obligation under ASC 460. As a result, at inception of the guarantee, we have recognized both a stand-ready guarantee liability under ASC 460 with an associated financial assets receivable, and a contingent guarantee liability with an allowance for credit losses under CECL model. Subsequent to the initial recognition, the ASC 460 stand-ready guarantee is recognized into guarantee revenue over the term of the guarantee, while the contingent guarantee is reduced by the payouts made by the company to compensate the investors upon borrowers' default. Upon adoption, we recognized the cumulative effect of approximately RMB1.43 billion after tax as a decrease to the opening balance of retained earnings and RMB1.9 billion as an increase to the opening balance of guarantee liabilities as of January 1, 2020.
Move from Nasdaq Global Market to Nasdaq Global Select Market
The Company’s application to move the listing of its ADSs from The Nasdaq Global Market to the higher tier of The Nasdaq Global Select Market has been approved by Nasdaq, and its ADSs has begun trading on The Nasdaq Global Select Market from November 19, 2020.
Conference Call
360 DigiTech’s management team will host an earnings conference call at 8:00 PM U.S. Eastern Time on Thursday, November 19, 2020 (9:00 AM Beijing Time on November 20).
Dial-in details for the earnings conference call are as follows:
| United States: | +1-646-722-4977 |
| Hong Kong: | +852-3027-6500 |
| Mainland China: | 400-821-0637 |
| International: | +65-6408-5782 |
| PIN: | 60180978# |
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 November 27, 2020:
| United States: | +1-646-982-0473 |
| International: | +65-6408-5781 |
| Access code: | 319338659# |
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 data driven, technology empowered digital 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. When coupled with its partnership with 360 Group, the Company’s solutions created 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 and non-GAAP net income margin 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, and non-GAAP net income represents net income excluding share-based compensation expenses. 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 RMB6.7896 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. 360 Finance may also make written or oral forward-looking statements in its reports to the U.S. Securities and Exchange Commission ("SEC") on Forms 20-F and 6-K, 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 for 2019, 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. Further information regarding such risks and uncertainties is included in 360 Finance'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 Finance 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, | September 30, | September 30, | |||
| 2019 | 2020 | 2020 | |||
| RMB | RMB | USD | |||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 2,108,123 | 4,821,031 | 710,061 | ||
| Restricted cash | 1,727,727 | 2,400,617 | 353,573 | ||
| Security deposit prepaid to third-party guarantee companies | 932,983 | 654,633 | 96,417 | ||
| Funds receivable from third party payment service providers | 118,860 | 149,436 | 22,010 | ||
| Accounts receivable and contract assets, net | 2,332,364 | 2,225,995 | 327,854 | ||
| Financial assets receivable, net | 1,912,554 | 3,023,254 | 445,277 | ||
| Amounts due from related parties | 478,767 | 244,687 | 36,039 | ||
| Loans receivable, net | 9,239,565 | 8,164,168 | 1,202,452 | ||
| Prepaid expenses and other assets | 652,545 | 457,484 | 67,380 | ||
| Total current assets | 19,503,488 | 22,141,305 | 3,261,063 | ||
| Non-current assets: | |||||
| Accounts receivable and contract assets, net-non current | 19,508 | 314,967 | 46,390 | ||
| Financial assets receivable, net-non current | 59,270 | 551,607 | 81,243 | ||
| Property and equipment, net | 17,113 | 20,706 | 3,050 | ||
| Intangible assets | 3,512 | 3,547 | 522 | ||
| Deferred tax assets | 697,348 | 1,150,562 | 169,459 | ||
| Other non-current assets | 55,362 | 54,766 | 8,066 | ||
| Total non-current assets | 852,113 | 2,096,155 | 308,730 | ||
| TOTAL ASSETS | 20,355,601 | 24,237,460 | 3,569,793 | ||
| LIABILITIES AND EQUITY LIABILITIES | |||||
| Current liabilities: | |||||
| Payable to investors of the consolidated trusts-current | 4,423,717 | 3,498,751 | 515,310 | ||
| Accrued expenses and other current liabilities | 720,918 | 829,935 | 122,238 | ||
| Amounts due to related parties | 55,622 | 53,794 | 7,923 | ||
| Short term loans | 200,000 | 184,870 | 27,228 | ||
| Guarantee liabilities-stand ready | 2,212,125 | 3,647,546 | 537,225 | ||
| Guarantee liabilities-contingent | 734,730 | 3,525,452 | 519,243 | ||
| Income tax payable | 1,056,219 | 935,778 | 137,825 | ||
| Other tax payable | 263,856 | 156,614 | 23,067 | ||
| Total current liabilities | 9,667,187 | 12,832,740 | 1,890,059 | ||
| Non-current liabilities: | |||||
| Deferred tax liabilities | - | 14,825 | 2,183 | ||
| Payable to investors of the consolidated trusts-noncurrent | 3,442,500 | 3,138,526 | 462,255 | ||
| Other long-term liabilities | 31,184 | 20,544 | 3,026 | ||
| Total non-current liabilities | 3,473,684 | 3,173,895 | 467,464 | ||
| TOTAL LIABILITIES | 13,140,871 | 16,006,635 | 2,357,523 | ||
| Ordinary shares | 20 | 21 | 3 | ||
| Additional paid-in capital | 5,117,184 | 5,309,654 | 782,028 | ||
| Retained earnings | 2,071,332 | 2,932,733 | 431,945 | ||
| Other comprehensive income (loss) | 24,906 | (12,540 | ) | (1,847 | ) |
| TOTAL 360 DIGITECH INC EQUITY | 7,213,442 | 8,229,868 | 1,212,129 | ||
| Noncontrolling interests | 1,288 | 957 | 141 | ||
| TOTAL EQUITY | 7,214,730 | 8,230,825 | 1,212,270 | ||
| TOTAL LIABILITIES AND EQUITY | 20,355,601 | 24,237,460 | 3,569,793 | ||
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 September 30, | Nine months ended September 30, | ||||||||||||
| 2019 | 2020 | 2020 | 2019 | 2020 | 2020 | ||||||||
| RMB | RMB | USD | RMB | RMB | USD | ||||||||
| Credit driven services | 2,129,275 | 2,955,392 | 435,282 | 6,034,567 | 8,846,546 | 1,302,954 | |||||||
| Loan facilitation and servicing fees-capital heavy | 1,555,089 | 1,220,748 | 179,797 | 4,994,681 | 3,741,738 | 551,098 | |||||||
| Financing income | 409,763 | 530,766 | 78,173 | 724,223 | 1,768,279 | 260,439 | |||||||
| Revenue from releasing of guarantee liabilities | 119,579 | 1,172,640 | 172,711 | 204,261 | 3,255,371 | 479,464 | |||||||
| Other services fees | 44,844 | 31,238 | 4,601 | 111,402 | 81,158 | 11,953 | |||||||
| Platform services | 453,764 | 748,129 | 110,187 | 784,399 | 1,379,922 | 203,240 | |||||||
| Loan facilitation and servicing fees-capital light | 336,269 | 663,354 | 97,701 | 465,007 | 1,145,564 | 168,723 | |||||||
| Referral services fees | 113,004 | 68,086 | 10,028 | 312,720 | 187,149 | 27,564 | |||||||
| Other services fees | 4,491 | 16,689 | 2,458 | 6,672 | 47,209 | 6,953 | |||||||
| Total net revenue | 2,583,039 | 3,703,521 | 545,469 | 6,818,966 | 10,226,468 | 1,506,194 | |||||||
| Origination and servicing | 290,003 | 408,693 | 60,194 | 753,789 | 1,156,112 | 170,277 | |||||||
| Funding costs | 118,402 | 144,596 | 21,297 | 209,148 | 464,272 | 68,380 | |||||||
| Sales and marketing | 896,907 | 271,082 | 39,926 | 2,424,948 | 763,144 | 112,399 | |||||||
| General and administrative | 85,584 | 102,387 | 15,080 | 309,230 | 320,606 | 47,220 | |||||||
| Provision for loans receivable | 151,010 | 67,383 | 9,924 | 205,808 | 593,211 | 87,371 | |||||||
| Provision for financial assets receivable | 44,607 | 81,642 | 12,025 | 101,517 | 254,565 | 37,493 | |||||||
| Provision for accounts receivable and contract assets | 54,156 | 66,163 | 9,745 | 183,149 | 213,950 | 31,511 | |||||||
| Provision for contingent liabilities | - | 1,190,176 | 175,294 | - | 3,911,793 | 576,145 | |||||||
| Total operating costs and expenses | 1,640,669 | 2,332,122 | 343,485 | 4,187,589 | 7,677,653 | 1,130,796 | |||||||
| Income from operations | 942,370 | 1,371,399 | 201,984 | 2,631,377 | 2,548,815 | 375,398 | |||||||
| Interest (expense) income, net | (25,546 | ) | 19,623 | 2,890 | (27,478 | ) | 44,601 | 6,569 | |||||
| Foreign exchange (loss) gain | (64,793 | ) | 63,408 | 9,339 | (67,521 | ) | 39,521 | 5,821 | |||||
| Other income, net | 70,409 | 4,609 | 679 | 94,305 | 96,899 | 14,272 | |||||||
| Income before income tax expense | 922,440 | 1,459,039 | 214,892 | 2,630,683 | 2,729,836 | 402,060 | |||||||
| Income taxes expense | (188,952 | ) | (227,315 | ) | (33,480 | ) | (559,077 | ) | (438,492 | ) | (64,583 | ) | |
| Net income | 733,488 | 1,231,724 | 181,412 | 2,071,606 | 2,291,344 | 337,477 | |||||||
| Net loss attributable to noncontrolling interests | 73 | 151 | 22 | 73 | 453 | 67 | |||||||
| Net income attributable to ordinary shareholders of the Company | 733,561 | 1,231,875 | 181,434 | 2,071,679 | 2,291,797 | 337,544 | |||||||
| Net income per ordinary share attributable to ordinary shareholders of 360 DigiTech, Inc. | |||||||||||||
| Basic | 2.55 | 4.10 | 0.60 | 7.20 | 7.73 | 1.14 | |||||||
| Diluted | 2.45 | 3.99 | 0.59 | 6.88 | 7.50 | 1.10 | |||||||
| Net income per ADS attributable to ordinary shareholders of 360 DigiTech, Inc. | |||||||||||||
| Basic | 5.10 | 8.20 | 1.20 | 14.40 | 15.46 | 2.28 | |||||||
| Diluted | 4.90 | 7.98 | 1.18 | 13.76 | 15.00 | 2.20 | |||||||
| Weighted average shares used in calculating net income per ordinary share | |||||||||||||
| Basic | 288,054,825 | 300,174,655 | 300,174,655 | 287,788,219 | 296,518,120 | 296,518,120 | |||||||
| Diluted | 299,107,729 | 308,646,862 | 308,646,862 | 301,306,666 | 305,520,538 | 305,520,538 | |||||||
Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/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 September 30, | |||||
| 2019 | 2020 | 2020 | |||
| RMB | RMB | USD | |||
| Net income | 733,488 | 1,231,724 | 181,412 | ||
| Other comprehensive income, net of tax of nil: | |||||
| Foreign currency translation adjustment | 68,476 | (64,847 | ) | (9,551 | ) |
| Other comprehensive income (loss) | 68,476 | (64,847 | ) | (9,551 | ) |
| Total comprehensive income | 801,964 | 1,166,877 | 171,861 | ||
| Net loss attributable to noncontrolling interests | 73 | 151 | 22 | ||
| Comprehensive income attributable to ordinary shareholders | 802,037 | 1,167,028 | 171,883 | ||
| Nine months ended September 30, | |||||
| 2019 | 2020 | 2020 | |||
| RMB | RMB | USD | |||
| Net income | 2,071,606 | 2,291,344 | 337,477 | ||
| Other comprehensive income, net of tax of nil: | |||||
| Foreign currency translation adjustment | 65,946 | (37,446 | ) | (5,515 | ) |
| Other comprehensive income (loss) | 65,946 | (37,446 | ) | (5,515 | ) |
| Total comprehensive income | 2,137,552 | 2,253,898 | 331,962 | ||
| Net loss attributable to noncontrolling interests | 73 | 453 | 67 | ||
| Comprehensive income attributable to ordinary shareholders | 2,137,625 | 2,254,351 | 332,029 | ||
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 September 30, | |||||
| 2019 | 2020 | 2020 | |||
| RMB | RMB | USD | |||
| Reconciliation of Non-GAAP Net Income to Net Income | |||||
| Net income | 733,488 | 1,231,724 | 181,412 | ||
| Add: Share-based compensation expenses | 22,320 | 56,396 | 8,306 | ||
| Non-GAAP net income | 755,808 | 1,288,120 | 189,718 | ||
| Non-GAAP net income margin | 29.3 | % | 34.8 | % | |
| GAAP net income margin | 28.4 | % | 33.3 | % | |
| Net income attributable to shareholders of 360 DigiTech, Inc | 733,561 | 1,231,875 | 181,434 | ||
| Add: Share-based compensation expenses | 22,320 | 56,396 | 8,306 | ||
| Non-GAAP net income attributable to shareholders of 360 DigiTech, Inc | 755,881 | 1,288,271 | 189,740 | ||
| Weighted average ADS used in calculating net income per ordinary share -diluted | 149,553,865 | 154,323,431 | 154,323,431 | ||
| Net income per ADS attributable to ordinary shareholders of 360 DigiTech, Inc. -diluted | 4.90 | 7.98 | 1.18 | ||
| Non-GAAP net income per ADS attributable to ordinary shareholders of 360 DigiTech, Inc. -diluted | 5.05 | 8.35 | 1.23 | ||
| Reconciliation of Non-GAAP Income from operations to Income from operations | |||||
| Income from operations | 942,370 | 1,371,399 | 201,984 | ||
| Add: Share-based compensation expenses | 22,320 | 56,396 | 8,306 | ||
| Non-GAAP Income from operations | 964,690 | 1,427,795 | 210,290 | ||
| Non-GAAP operating margin | 37.3 | % | 38.6 | % | |
| GAAP operating margin | 36.5 | % | 37.0 | % | |
| Nine months ended September 30, | |||||
| 2019 | 2020 | 2020 | |||
| RMB | RMB | USD | |||
| Reconciliation of Non-GAAP Net Income to Net Income | |||||
| Net income | 2,071,606 | 2,291,344 | 337,477 | ||
| Add: Share-based compensation expenses | 164,702 | 193,447 | 28,492 | ||
| Non-GAAP net income | 2,236,308 | 2,484,791 | 365,969 | ||
| Non-GAAP net income margin | 32.8 | % | 24.3 | % | |
| GAAP net income margin | 30.4 | % | 22.4 | % | |
| Net income attributable to shareholders of 360 DigiTech, Inc | 2,071,679 | 2,291,797 | 337,544 | ||
| Add: Share-based compensation expenses | 164,702 | 193,447 | 28,492 | ||
| Non-GAAP net income attributable to shareholders of 360 DigiTech, Inc | 2,236,381 | 2,485,244 | 366,036 | ||
| Weighted average ADS used in calculating net income per ordinary share -diluted | 150,653,333 | 152,760,269 | 152,760,269 | ||
| Net income per ADS attributable to ordinary shareholders of 360 DigiTech, Inc. -diluted | 13.76 | 15.00 | 2.20 | ||
| Non-GAAP net income per ADS attributable to ordinary shareholders of 360 DigiTech, Inc. -diluted | 14.84 | 16.27 | 2.40 | ||
| Reconciliation of Non-GAAP Income from operations to Income from operations | |||||
| Income from operations | 2,631,377 | 2,548,815 | 375,398 | ||
| Add: Share-based compensation expenses | 164,702 | 193,447 | 28,492 | ||
| Non-GAAP Income from operations | 2,796,079 | 2,742,262 | 403,890 | ||
| Non-GAAP operating margin | 41.0 | % | 26.8 | % | |
| GAAP operating margin | 38.6 | % | 24.9 | % | |
FAQ
What were 360 DigiTech's Q3 2020 financial results for QFIN?
What drove the increase in loan origination volume for 360 DigiTech in Q3 2020?
How did the user base of 360 DigiTech change in Q3 2020?
What is the current delinquency ratio for 360 DigiTech?
What is the updated loan origination guidance from 360 DigiTech for FY 2020?
