-International business revenue contribution reached 11.8% of total revenue for the third quarter of 2022-<\/p>\n
SHANGHAI<\/span>, Nov. 15, 2022 \/PRNewswire\/ — FinVolution Group (“FinVolution,” or the “Company”) (NYSE: FINV), a leading fintech platform, today announced its unaudited financial results for the third quarter ended September 30, 2022<\/span>.<\/span><\/p>\n For <\/b>the <\/b>Three Months Ended \/ As of <\/b><\/span><\/p>\n<\/td>\n YoY Change<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n September 30, 2021<\/b><\/span><\/p>\n<\/td>\n September 30, 2022<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n Total Transaction Volume (RMB in billion)[1] <\/sup><\/b><\/span><\/p>\n<\/td>\n 38.1<\/b><\/span><\/p>\n<\/td>\n 45.5<\/b><\/span><\/p>\n<\/td>\n 19.4 %<\/span><\/p>\n<\/td>\n<\/tr>\n Transaction Volume (China’s Mainland)<\/span><\/p>\n<\/td>\n 37.1<\/span><\/p>\n<\/td>\n 44.4<\/span><\/p>\n<\/td>\n 19.7 %<\/span><\/p>\n<\/td>\n<\/tr>\n Transaction Volume (International)[2]<\/sup><\/span><\/p>\n<\/td>\n 1.05<\/span><\/p>\n<\/td>\n 1.11<\/span><\/p>\n<\/td>\n 5.7 %<\/span><\/p>\n<\/td>\n<\/tr>\n Total Outstanding Loan Balance (RMB in billion)<\/b><\/span><\/p>\n<\/td>\n 44.9<\/b><\/span><\/p>\n<\/td>\n 60.3<\/b><\/span><\/p>\n<\/td>\n 34.3 %<\/span><\/p>\n<\/td>\n<\/tr>\n Outstanding Loan Balance (China’s Mainland)[3]<\/sup> <\/span><\/p>\n<\/td>\n 44.5<\/span><\/p>\n<\/td>\n 59.6<\/span><\/p>\n<\/td>\n 33.9 %<\/span><\/p>\n<\/td>\n<\/tr>\n Outstanding Loan Balance (International)[4]<\/sup><\/span><\/p>\n<\/td>\n 0.34<\/span><\/p>\n<\/td>\n 0.64<\/span><\/p>\n<\/td>\n 88.2 %<\/span><\/p>\n<\/td>\n<\/tr>\n Third Quarter 2022 Operational Highlights<\/b><\/p>\n Continued transition towards better-quality borrowers<\/b><\/p>\n Total transaction volume and outstanding loan balance maintained consistent growth momentum<\/b><\/p>\n Small business owners’ loans continued to scale up with steady growth<\/b><\/p>\n International expansion continued to strengthen with transition to better-quality borrowers<\/b><\/p>\n More operational highlights<\/b><\/p>\n Third Quarter 2022 Financial Highlights <\/b><\/p>\n [1]<\/sup> Represents total transaction volume facilitated in China’s Mainland and overseas markets on the Company’s platforms during the period presented.<\/span><\/p>\n<\/td>\n<\/tr>\n [2]<\/sup> Represents our overseas markets outside China’s Mainland.<\/span><\/p>\n<\/td>\n<\/tr>\n [3] <\/sup>Outstanding loan balance (China’s Mainland) as of any date refers to the balance of outstanding loans in China’s Mainland market delinquent within 180 days from such date.<\/span><\/p>\n<\/td>\n<\/tr>\n [4] <\/sup>Outstanding loan balance (international) as of any date refers to the balance of outstanding loans in overseas markets delinquent within 30 days from such date.<\/span><\/p>\n<\/td>\n<\/tr>\n [5] <\/sup>On a cumulative basis, the total number of users registered on the Company’s platforms as of September 30, 2022.<\/span><\/p>\n<\/td>\n<\/tr>\n [6] <\/sup>Represents the total number of borrowers whose transactions were facilitated on the Company’s platforms during the period presented.<\/span><\/p>\n<\/td>\n<\/tr>\n [7] <\/sup>Represents the total number of repeat borrowers who have successfully borrowed on our platform in the past and borrowed on the Company’s platforms during the period presented.<\/span><\/p>\n<\/td>\n<\/tr>\n [8] <\/sup>Represents transaction volume facilitated for the repeat borrowers who successfully completed their transaction on the Company’s platforms during the period presented.<\/span><\/p>\n<\/td>\n<\/tr>\n [9]<\/sup> “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 the Company’s platform as of a specific date. Loans that originated outside China’s Mainland are not included in the calculation.<\/span><\/p>\n<\/td>\n<\/tr>\n [10] <\/sup>Represents the average loan size on the Company’s platform in China’s Mainland during the period presented.<\/span><\/p>\n<\/td>\n<\/tr>\n [11] <\/sup>Represents the average loan tenor on the Company’s platform in China’s Mainland during the period presented.<\/span><\/p>\n<\/td>\n<\/tr>\n [12] <\/sup>Please refer to “UNAUDITED Reconciliation of GAAP And Non-GAAP Results” for reconciliation between GAAP and Non-GAAP adjusted operating income.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n Mr. Feng Zhang<\/span>, Chief Executive Officer of FinVolution, commented, “As we continued to navigate the challenges in the macro environment by leveraging our advanced technologies and experienced management team, our total transaction volume for the third quarter of 2022 reached RMB45.5 billion<\/span>, representing a quarter-over-quarter growth of 9.6% and a year-over-year growth of 19.4%.<\/p>\n “We maintained our prudent approach towards supporting small business owners. During the third quarter, we served a total of 504 thousand small business owners spread across China<\/span> in various industries, further reducing our related risk through geographic and sector diversification. We facilitated RMB11.3 billion<\/span> of loans for them, representing 24.8% of total transaction volume, an increase of 43.0% from the same period of 2021.<\/p>\n “We are very excited to report that with improvement across multiple operational fronts in our international markets, revenue contribution from this business reached 11.8% of total revenue in the third quarter, marking the first time our overseas revenue contribution exceeded double digits. Thanks to our stellar advertising efforts to strengthen branding, our transition to better-quality borrowers in international markets has also progressed faster than expected with transaction volume reaching RMB1.11 billion<\/span>, representing a quarter-over-quarter growth of 22.0% and a year-over-year increase of 5.7%. <\/p>\n Mr. Jiayuan Xu<\/span>, FinVolution’s Chief Financial Officer, continued, “Driven by our relentless efforts to optimize our operations, effective execution of our overall strategy and skillful deployment of our technological capabilities across businesses, our net revenues for the third quarter grew to RMB2,971.4 million<\/span>, representing a year-over-year increase of 17.7%.<\/p>\n “We also delivered a strong operating profit of RMB659.8 million<\/span> and maintained a substantial balance sheet with RMB12.0 billion<\/span> in total shareholder’s equity with a leverage ratio of 4.2 times as of September 30, 2022<\/span>. We are confident that our solid fundamentals will empower us to continue strengthening our international initiatives, reinforcing our successful transition to higher-quality borrowers and propelling technological innovation,” concluded Mr. Xu.<\/p>\n Third Quarter 2022 Financial Results<\/b><\/p>\n Net revenue<\/b> for the third quarter of 2022 increased by 17.7% to RMB2,971.4million<\/span> (US$417.7 million<\/span>) from RMB2,525.1 million<\/span> for the same period of 2021, primarily due to the increase in loan facilitation service fees, post facilitation service fees and guarantee income.<\/p>\n Loan facilitation service fees<\/i> increased by 8.7% to RMB1,168.7million<\/span> (US$164.3 million<\/span>) for the third quarter of 2022 from RMB1,075.1 million<\/span> for the same period of 2021. This increase was primarily due to the increase in transaction volume, partially offset by the decrease in service fee rates.<\/p>\n Post-facilitation service fees<\/i> increased by 36.3% to RMB492.3 million<\/span> (US$69.2 million<\/span>) for the third quarter of 2022 from RMB361.2 million<\/span> for the same period of 2021, primarily due to the increase in outstanding loans served by the Company and the rolling impact of deferred transaction fees.<\/p>\n Guarantee income<\/i> was RMB822.2 million<\/span> (US$115<\/span>.6 million) for the third quarter of 2022 compared to RMB644<\/span>.5 million for the same period of 2021. This increase was primarily due to the increased outstanding loan balance of off-balance sheet loans, partially offset by improved asset quality. The fair value of quality assurance commitment upon loan origination is released as guarantee income systematically over the term of the loans subject to quality assurance commitment. As the Company transitioned its business towards better-quality borrowers, the fair value of quality assurance commitment upon loan origination decreased due to better asset quality.<\/p>\n Net interest income<\/i> decreased by 0.9% to RMB329.6 million<\/span> (US$46.3 million<\/span>) for the third quarter of 2022, from RMB332.6 million<\/span> for the same period of 2021.<\/p>\n Other revenue<\/i> increased by 42.1% to RMB158.7 million<\/span> (US$22.3 million<\/span>) for the third quarter of 2022 from RMB111.7 million<\/span> for the same period of 2021, primarily due to the increase in customer referral fees from other third-party platforms. <\/p>\n Origination, servicing expenses and other costs of revenue<\/b> increased by 7.7% to RMB495.0 million<\/span> (US$69.6 million<\/span>) for the third quarter of 2022 from RMB459.6 million<\/span> for the same period of 2021, primarily due to the increase in employees’ expenditures and fees paid to third-party service providers as a result of the increase in loan origination volume.<\/p>\n Sales and marketing expenses<\/b> increased by 38.1% to RMB535.2 million<\/span> (\n\n
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