U.S. Markets closed
  • S&P 500

    3,934.38
    -29.13 (-0.73%)
     
  • Dow 30

    33,476.46
    -305.02 (-0.90%)
     
  • Nasdaq

    11,004.62
    -77.39 (-0.70%)
     
  • Russell 2000

    1,796.66
    -21.63 (-1.19%)
     
  • Crude Oil

    71.59
    +0.13 (+0.18%)
     
  • Gold

    1,809.40
    +7.90 (+0.44%)
     
  • Silver

    23.68
    +0.43 (+1.87%)
     
  • EUR/USD

    1.0545
    -0.0014 (-0.1371%)
     
  • 10-Yr Bond

    3.5670
    +0.0760 (+2.18%)
     
  • Vix

    22.83
    +0.54 (+2.42%)
     
  • GBP/USD

    1.2250
    +0.0012 (+0.0980%)
     
  • USD/JPY

    136.5500
    -0.0800 (-0.0586%)
     
  • BTC-USD

    17,159.44
    -51.01 (-0.30%)
     
  • CMC Crypto 200

    402.11
    -4.14 (-1.02%)
     
  • FTSE 100

    7,476.63
    +4.46 (+0.06%)
     
  • Nikkei 225

    27,901.01
    +326.58 (+1.18%)
     

360 DigiTech Announces Second Quarter 2022 Unaudited Financial Results and Declares Quarterly Dividend

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 of 10.4% 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 was 25.3%.

  • 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 was 24.4%.

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 11% year-on-year. Approximately 56% of the loans was facilitated under the capital-light model, ICE and other technology solutions*12, which enabled us to mitigate some near term risks as we continued to pursue long term sustainable technology driven business models.

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 24% in the second quarter, and we are in compliance with the rate cap requirement. In the second quarter, with ample supply of liquidity in the financial system, we continued to expand our partnership with larger financial institutions with national operations, and further lowered overall funding costs.

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 86% sequentially. On the other hand, as we optimized our risk model and brought in more high quality users, overall risk profile of our borrowers continued to improve. Day-1 delinquency*15 further improved to 4.9% from 5.2% quarter-on-quarter, a historic low. Overall, under current economic conditions, we expect to see continued improvement in asset quality for the remainder of the year primarily due to our further penetration into better user segments.”

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 43% of our total net revenue for the second quarter 2022.
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$624.5 million), compared to RMB4,001.6 million in the same period of 2021, and RMB4,320.0 million in the prior quarter.

Net revenue from Credit Driven Services was RMB2,947.8 million (US$440.1 million), compared to RMB2,404.7 million in the same period of 2021, and RMB2,920.6 million in the prior quarter.

Loan facilitation and servicing fees-capital heavy were RMB580.4 million (US$86.6 million), compared to RMB540.7 million in the same period of 2021 and RMB561.4 million in the prior quarter. The year-over-year and sequential increases were primarily due to higher average tenor of the loans.

Financing income*16 was RMB819.6 million (US$122.4 million), compared to RMB488.1 million in the same period of 2021 and RMB789.2 million in the prior quarter. The year-over-year and sequential increases were primarily due to the growth in average outstanding on-balance-sheet loan balance.

Revenue from releasing of guarantee liabilities was RMB1,524.5 million (US$227.6 million), compared to RMB1,352.3 million in the same period of 2021, and RMB1,550.0 million in the prior quarter. The year-over-year and sequential changes mainly reflected changes in average outstanding balance of off-balance-sheet capital-heavy loans during the period.

Other services fees were RMB23.3 million (US$3.5 million), compared to RMB23.6 million in the same period of 2021, and RMB20.0 million in the prior quarter. The year-over-year and sequential changes reflected the changes in late payment fees under capital-heavy model.

Net revenue from Platform Services was RMB1,235.4 million (US$184.4 million), compared to RMB1,596.9 million in the same period of 2021 and RMB1,399.4 million in the prior quarter.

Loan facilitation and servicing fees-capital light were RMB1,030.0 million (US$153.8 million), compared to RMB1,398.7 million in the same period of 2021 and RMB1,098.9 million in the prior quarter. The year-over-year decline was primarily due to lower loan facilitation volume and lower average prices under capital-light model, the sequential decline was mainly due to lower average prices.

Referral services fees were RMB135.4 million (US$20.2 million), compared to RMB160.3 million in the same period of 2021 and RMB247.3 million in the prior quarter. The year-over-year decline was primarily due to decline in traffic from referral services, and partially offset by increase in ICE related fees. The sequential decline was primarily due to the decrease in loan facilitation volume through ICE.

Other services fees were RMB70.1 million (US$10.5 million), compared to RMB37.9 million in the same period of 2021 and RMB53.2 million in the prior quarter. The year-over-year and sequential growth mainly reflected the growth in fees from other technology solutions.

Total operating costs and expenses were RMB3,172.4 million (US$473.6 million), compared to RMB2,148.4 million in the same period of 2021 and RMB2,960.8 million in the prior quarter.

Facilitation, origination and servicing expenses were RMB555.6 million (US$83.0 million), compared to RMB558.0 million in the same period of 2021 and RMB614.9 million in the prior quarter. The year-over-year and sequential decreases were in part due to improvement in operational efficiency.

Funding costs were RMB123.9 million (US$18.5 million), compared to RMB83.2 million in the same period of 2021 and RMB103.8 million in the prior quarter. The year-over-year and sequential increases were mainly due to the growth in funding from ABS and trusts.

Sales and marketing expenses were RMB615.1 million (US$91.8 million), compared to RMB499.9 million in the same period of 2021 and RMB552.6 million in the prior quarter. The year-over-year and sequential increases were mainly due to a more proactive customer acquisition strategy focusing on higher quality users.

General and administrative expenses were RMB93.9 million (US$14.0 million), compared to RMB139.3 million in the same period of 2021 and RMB122.3 million in the prior quarter. The year-over-year and sequential declines was due to lower professional service fees and our continued effort to improve operational efficiency.

Provision for loans receivable was RMB416.1 million (US$62.1 million), compared to RMB247.0 million in the same period of 2021 and RMB491.2 million in the prior quarter. The year-over-year increase was mainly due to growth in on-balance sheet loans. The sequential decrease was mainly due to a slight decline in on-balance sheet loans.

Provision for financial assets receivable was RMB103.7 million (US$15.5 million), compared to RMB58.5 million in the same period of 2021 and RMB60.5 million in the prior quarter. The year-over-year and sequential changes reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile.

Provision for accounts receivable and contract assets was RMB63.4 million (US$9.5 million), compared to RMB100.7 million in the same period of 2021 and RMB53.6 million in the prior quarter. The year-over-year decline was primarily due to a decrease in facilitation volume under capital-light model. The sequential increase mainly reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile.

Provision for contingent liability was RMB1,200.7 million (US$179.3 million), compared to RMB461.9 million in the same period of 2021 and RMB961.9 million in the prior quarter. The year-over-year and sequential changes reflected the Company’s consistent approach in assessing provisions commensurate with its underlying loan profile.

Income from operations was RMB1,010.8 million (US$150.9 million), compared to RMB1,853.1 million in the same period of 2021 and RMB1,359.3 million in the prior quarter.

Non-GAAP income from operations was RMB1,057.5 million (US$157.9 million), compared to RMB1,920.4 million in the same period of 2021 and RMB1,411.3 million in the prior quarter.

Operating margin was 24.2%. Non-GAAP operating margin was 25.3%.

Income before income tax expense was RMB1,155.3 million (US$172.5 million), compared to RMB1,953.2 million in the same period of 2021 and RMB1,390.8 million in the prior quarter.

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 and RMB1,179.5 million in the prior quarter.

Non-GAAP net income attributed to the Company was RMB1,026.6 million (US$153.3 million), compared to RMB1,614.9 million in the same period of 2021 and RMB1,231.6 million in the prior quarter.

Net income margin was 23.3%. Non-GAAP net income margin was 24.4%.

Net income per fully diluted ADS was RMB6.12 (US$0.92).

Non-GAAP net income per fully diluted ADS was RMB6.42 (US$0.96).

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:

http://ml.globenewswire.com/Resource/Download/eca7dc86-f93a-426e-bd97-1405b87958ff

http://ml.globenewswire.com/Resource/Download/92402b65-c80e-46f3-9ffe-a5ebce9e7697

Quarterly Dividend

The board of directors of the Company has approved a dividend of US$0.09 per ordinary share, or US$0.18 per ADS, for the second fiscal quarter of 2022 in accordance with the Company’s dividend policy, which is expected to be paid on October 28, 2022 to shareholders of record as of the close of business on September 16, 2022.

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 15% to 26%. This outlook reflects the Company’s current and preliminary views, which is subject to material changes.

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$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 30, 2022.

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 30% equity interest of Shanghai 360 Changfeng Technology Co., Ltd. (“360 Changfeng”). Before the transaction, the Company owns 40% equity interest of 360 Changfeng and accounted for it as equity method investment. As such, it consolidated 360 Changfeng's financial statement into its financial statements after the transaction. The transaction is between entities under common control and has been retrospectively reflected in the consolidated financial statements from the beginning of 2021, but not to prior year as there is no impact. 360 Changfeng's major transaction in 2021 is to purchase the land use right at the amount of RMB 1 billion in the first half year which is classified as "net cash used in operating activities" reflected in the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021. The details of the transaction was provided in the Company's press release furnished to the SEC on form 6-K which dated on December 20, 2021.


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

%