BEIJING,
Financial Highlights for the Year Ended
- Total revenues were
RMB1,285.2 million decreased by 19.9% to (US$184.6 million ) fromRMB1,603.6 million in the full year of 2018. - Gross profit was
RMB515.5 million (US$74.1 million ) compared toRMB518.9 million in the full year of 2018. Gross margin was 40.1% compared to 32.4% in the full year of 2018. - Operating loss was
RMB728.4 million (US$104.6 million ) compared to operating income ofRMB11.3 million in the full year of 2018. - Net loss was
RMB906.5 million (US$130.2 million ) compared to net income ofRMB2.2 million in the full year of 2018. The net loss was due toRMB890.7 million of provision for credit loss in amounts due from a related party, Jimu Group, andRMB200.0 million of impairment in prepayment for long-term investment. Excluding the total non-cash provision and impairment charge ofRMB1,090.7 million , the net profit would have beenRMB184.2 million . - Adjusted net loss1 was
RMB888.6 million (US$127.6 million ) compared to adjusted net income ofRMB133.4 million in the full year of 2018. Excluding the aforementioned total non-cash provision and impairment charge, the adjusted net profit would have beenRMB202.1million .
Operating Highlights for the Year Ended
- Total loans facilitated decreased by 25.2% to
RMB11.0 billion (US$1.6 billion ) fromRMB14.7 billion in the full year of 2018. - Loan outstanding balance decreased by 43.1% to
RMB3.3 billion (US$0.5 billion ) as ofDecember 31, 2019 , fromRMB5.8 billion as ofDecember 31, 2018 . - The following table provides delinquency rates for all loans facilitated by the Company as of the dates indicated:
Delinquent for | ||||||
16 ‑30 days | 31 ‑ 60 days | 61 ‑ 90 days | ||||
0.47% | 0.76% | 0.63% | ||||
1.11% | 1.02% | 0.74% | ||||
1.27% | 2.35% | 2.33% | ||||
1.72% | 2.98% | 2.86% |
________________
1 Adjusted net income/(loss) is a non-GAAP financial measure, representing net income/(loss) before share-based compensation expenses. For more information on non-GAAP financial measures, please see the section of "Use of Non-GAAP Financial Measures Statement" and the tables captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this release.
Mr.
Mr.
Full Year 2019 Financial Results
Total Revenues
Total revenues in the full year of 2019 decreased by 19.9% to
- Revenues from technical service fees in the full year of 2019 decreased by 17.0% to
RMB1,077.8 million (US$154.8 million ) fromRMB1,297.8 million in the full year of 2018. This decrease was mainly due to the year-over-year decrease in the total volume of loans facilitated by the Company. - Revenues from installment service fees in the full year of 2019 decreased by 35.6% to
RMB187.4 million (US$26.9 million ) fromRMB291.1 million in the full year of 2018. This decline was due to the reduction in the Company’s on-book installment loan volume, which was in line with the Company’s ongoing strategy to refine its loan portfolio. - Revenues from wealth management service fees in the full year of 2019 increased by 35.8% to
RMB20.1 million (US$2.9 million ) fromRMB14.8 million in the full year of 2018. This increase was primarily attributable to the steady development of the Company’s insurance solution offerings.
Cost of Revenues
Cost of revenues in the full year of 2019 decreased by 29.0% to
- Cost on guarantee in the full year of 2019 increased to
RMB193.4 million (US$27.8 million ) as the Company began to share the credit risks for off-balance sheet loans with a larger group of select financial partners. - Service cost charged by Jimu Group in the full year of 2019 decreased to
RMB200.2 million (US$28.8 million ) fromRMB529.6 million in the full year of 2018. The decrease was primarily due to the adoption of a new cooperation model with Jimu Group since 2019, under which the Company reimbursed Jimu Group for part of the losses under loans that we facilitated using Jimu Group as a funding source and that were not recorded on our balance sheet. - Origination and servicing costs in the full year of 2019 decreased by 10.2% to
RMB290.4 million (US$41.7 million ) fromRMB323.3 million in the full year of 2018, primarily due to a decrease in user acquisition cost in connection with the decrease in the volume of loans facilitated, which was offset by an increase in service fee for loan collection.
Gross Profit
Gross profit in the full year of 2019 was
Operating Expenses
Total operating expenses in the full year of 2019 increased by 145% to
- Sales and marketing expenses in the full year of 2019 decreased by 30.2% to
RMB69.6 million (US$10.0 million ) fromRMB99.7 million in the full year of 2018. The reduction was the result of the Company’s ongoing efforts to refine its product matrix and wind down its offline personal installment loan business, the latter of which has been occurring since the end of 2018. - General and administrative expenses in the full year of 2019 were
RMB1,095.3 million (US$157.3 million ) compared toRMB313.0 million in the full year of 2018. This significant increase was mainly due to the provision for credit loss ofRMB890.7 million on amounts due from the related party Jimu Group.Pintec determined that the amounts due from Jimu Group were unrecoverable as Jimu Group has become insolvent, and subsequently inFebruary 2020 announced its exit from its online lending platform business with significant outstanding loan balances on its platform left unpaid. As a result, the Company has provided a full provision for these balances. - Research and development expenses in the full year of 2019 decreased by 16.7% to
RMB79.1 million (US$11.4 million ) fromRMB95.0 million in the full year of 2018, primarily driven by the Company’s efforts to streamline its research and development operations.
Operating Income/Loss
Operating loss in the full year of 2019 was
Net Income/Loss
Net loss in the full year of 2019 was
Net loss attributable to ordinary shareholders in the full year of 2019 increased to
Adjusted net loss in the full year of 2019 was
Net Loss per Share
Basic and diluted net loss per ordinary share in the full year of 2019 were
Adjusted basic and diluted net loss per ordinary share in the full year of 2019 were
Balance Sheet
The Company had combined cash and cash equivalents and restricted cash of
The Company’s total net financing receivables, including short-term and long-term receivables, decreased by 41.8% to
Restatement
The Company revisited its consolidated financial statements and identified certain material misstatements for the years ended
As a result, all financial data presented in this release for the full year ended
The Company’s Financial Statements are prepared and presented in accordance with
Conference Call Information
The Company’s management team will hold a Direct Event conference call on
Event Title: | Pintec Technology Holdings Ltd.’s Full Year 2019 Earnings Conference Call |
Conference ID: | #6597508 |
Registration Link: | http://apac.directeventreg.com/registration/event/6597508 |
Due to the global outbreak of the novel coronavirus, operator assisted conference calls are not available at the moment. All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique access PIN, which can be used to join the conference call.
The replay will be accessible through
International: | +61-2-8199-0299 |
United States Toll Free: | +1-855-452-5696 |
Conference ID: | 6597508 |
A live and archived webcast of the conference call will also be available at the Company's investor relations website at http://ir.pintec.com/.
Accounting Policy Change
The Company adopted ASC Topic 606 (“ASC 606”), Revenue from Contracts with Customers and all subsequent ASUs that modified Topic 606 on
The Company recorded an increase to opening accumulated deficit of
The impacts of the adoption of ASC 606 in the year ended
Items | As Reported | Impacts of ASC606 Adoption | Amount without ASC 606 Adoption | |||||||
RMB | RMB | RMB | ||||||||
Total revenues | 1,285,236 | 53,063 | 1,232,173 | |||||||
Income tax (expenses)/benefit | (1,968) | (13,266) | 11,298 | |||||||
Net loss | (906,490) | 39,797 | (946,287) |
The impacts of the adoption of ASC 606 as of
Items | As Reported | Impacts of ASC606 Adoption | Balances without ASC 606 Adoption | |||||||
RMB | RMB | RMB | ||||||||
Assets: | ||||||||||
Deferred tax assets | 64,675 | 4,775 | 59,900 | |||||||
Liabilities: | ||||||||||
Accrued expenses and other liabilities | 157,945 | 19,105 | 138,840 | |||||||
Equity: | ||||||||||
Accumulated deficit | (1,860,640) | (14,330) | (1,846,310) |
Use of Non-GAAP Financial Measures
In evaluating its business, the Company considers and uses adjusted net income/loss as a supplemental measure to review and assess its operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with
The Company believes that this non-GAAP financial measure can help management evaluate the Company’s operating performance and formulate business plans. Adjusted net income/loss enables management to assess operating results without considering the impact of share-based compensation expenses. The Company also believes that this non-GAAP financial measure provides useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by management in their financial and operational decision-making.
This non-GAAP financial measure is not defined under
The Company compensates for these limitations by reconciling this non-GAAP financial measure to the most directly comparable
Exchange Rate
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the
About
Investor Relations Contact
Phone: +1-646-308-1622
E-mail: ir@pintec.com
Phone: +1-646-308-1622
E-mail: pintec@icrinc.com
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Unaudited Condensed Consolidated Balance Sheets | |||||||||
As of | |||||||||
(In thousands, except for share and per share data) | |||||||||
2018 Restated | 2019 | ||||||||
RMB | RMB | USD | |||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | 457,442 | 102,755 | 14,760 | ||||||
Restricted cash | 252,599 | 382,695 | 54,971 | ||||||
Short-term financing receivables, net | 753,169 | 430,387 | 61,821 | ||||||
Short-term financial guarantee assets, net | 15,569 | 91,374 | 13,125 | ||||||
Accounts receivable, net | 47,652 | 74,251 | 10,665 | ||||||
Prepayments and other current assets | 208,399 | 78,330 | 11,250 | ||||||
Amounts due from related parties | 475,426 | 64 | 9 | ||||||
Total current assets | 2,210,256 | 1,159,856 | 166,601 | ||||||
Non-current assets: | |||||||||
Non-current restricted cash | - | 95,454 | 13,711 | ||||||
Amounts due from related parties-nc | - | 10,000 | 1,436 | ||||||
Long-term financing receivables, net | 18,882 | 19,100 | 2,744 | ||||||
Long-term financial guarantee assets, net | 5,040 | 3,647 | 524 | ||||||
Long-term investments | 58,038 | 108,603 | 15,600 | ||||||
Deferred tax assets | 36,901 | 64,675 | 9,290 | ||||||
Property, equipment and software, net | 7,806 | 14,317 | 2,057 | ||||||
Intangible assets, net | 5,423 | 49,790 | 7,152 | ||||||
| 25,680 | 35,157 | 5,050 | ||||||
Total non-current assets | 157,770 | 400,743 | 57,564 | ||||||
TOTAL ASSETS | 2,368,026 | 1,560,599 | 224,165 | ||||||
LIABILITIES | |||||||||
Current liabilities: | |||||||||
Short-term borrowings | 220,000 | 320,000 | 45,965 | ||||||
Short-term funding debts | 694,978 | 300,212 | 43,123 | ||||||
Accounts payable | 38,850 | 57,719 | 8,291 | ||||||
Amounts due to related parties | 96,596 | 10,191 | 1,464 | ||||||
Tax payable | 57,081 | 52,535 | 7,546 | ||||||
Debt instrument | - | 81,053 | 11,643 | ||||||
Financial guarantee liabilities | 15,537 | 101,933 | 14,642 | ||||||
Accrued expenses and other liabilities | 157,462 | 157,945 | 22,686 | ||||||
Total current liabilities | 1,280,504 | 1,081,588 | 155,360 | ||||||
Non-current liabilities: | |||||||||
Long-term funding debts | 21,498 | 21,498 | 3,088 | ||||||
Long-term borrowings | - | 80,000 | 11,491 | ||||||
Deferred tax liabilities | - | 2,128 | 306 | ||||||
Other non-current liabilities | 8,748 | 8,683 | 1,247 | ||||||
Consideration payable for acquisition | - | 7,982 | 1,147 | ||||||
Total non-current liabilities | 30,246 | 120,291 | 17,279 | ||||||
TOTAL LIABILITIES | 1,310,750 | 1,201,879 | 172,639 | ||||||
SHAREHOLDERS’ EQUITY | |||||||||
Class A Ordinary Shares | 185 | 212 | 30 | ||||||
Class B Ordinary Shares | 43 | 42 | 6 | ||||||
Additional paid-in capital | 1,896,993 | 1,977,365 | 284,030 | ||||||
Statutory reserves | 1,739 | 29,659 | 4,260 | ||||||
Accumulated other comprehensive income | 31,014 | 42,890 | 6,161 | ||||||
Accumulated deficit | (872,698) | (1,860,640) | (267,264) | ||||||
1,057,276 | 189,528 | 27,223 | |||||||
Non-controlling interests | - | 169,192 | 24,303 | ||||||
TOTAL EQUITY | 1,057,276 | 358,720 | 51,526 | ||||||
TOTAL LIABILITIES AND EQUITY | 2,368,026 | 1,560,599 | 224,165 | ||||||
Unaudited Condensed Consolidated Statements of Operations and Comprehensive income | |||||||||||
For the 2019 Year Ended | |||||||||||
(In thousands, except for share and per share data) | 2018 Restated | 2019 | 2019 | ||||||||
RMB | RMB | USD | |||||||||
Revenues: | |||||||||||
Technical service fees | 1,297,758 | 1,077,760 | 154,810 | ||||||||
Installment service fees | 291,077 | 187,359 | 26,912 | ||||||||
Wealth management service fees and others | 14,796 | 20,117 | 2,890 | ||||||||
Total revenues | 1,603,631 | 1,285,236 | 184,612 | ||||||||
Cost of revenues: | |||||||||||
Funding cost | (161,384) | (51,759) | (7,435) | ||||||||
Provision for credit losses | (70,411) | (33,942) | (4,875) | ||||||||
Origination and servicing cost | (323,342) | (290,398) | (41,712) | ||||||||
Cost on guarantee | - | (193,426) | (27,784) | ||||||||
Service cost charged by Jimu Group | (529,593) | (200,163) | (28,752) | ||||||||
Cost of revenues | (1,084,730) | (769,688) | (110,558) | ||||||||
Gross profit | 518,901 | 515,548 | 74,054 | ||||||||
Operating expenses: | |||||||||||
Sales and marketing expenses | (99,671) | (69,593) | (9,996) | ||||||||
General and administrative expenses | (312,979) | (1,095,311) | (157,332) | ||||||||
Research and development expenses | (94,989) | (79,079) | (11,359) | ||||||||
Total operating expenses | (507,639) | (1,243,983) | (178,687) | ||||||||
Operating (loss)/income | 11,262 | (728,435) | (104,633) | ||||||||
Change in fair value of convertible loans | (9,552) | - | - | ||||||||
Share of loss from equity method investments | (2,652) | (8,149) | (1,171) | ||||||||
Impairment on prepayment for long-term investment | - | (200,000) | (28,728) | ||||||||
Other (expenses)/income, net | 8,822 | (11,094) | (1,595) | ||||||||
Interest income from related parties | - | 43,156 | 6,199 | ||||||||
(Loss)/Income before income tax expense | 7,880 | (904,522) | (129,928) | ||||||||
Income tax expense | (5,709) | (1,968) | (283) | ||||||||
Net (loss)/income | 2,171 | (906,490) | (130,211) | ||||||||
Net loss attributable to non-controlling interest | - | (595) | (85) | ||||||||
Net (loss)/income attributable to | 2,171 | (905,895) | (130,126) | ||||||||
Pre-IPO Preferred shares redemption value accretion | (76,770) | - | - | ||||||||
Net loss attributable to ordinary shareholders | (74,599) | (905,895) | (130,126) | ||||||||
Other comprehensive income: | |||||||||||
Foreign currency translation adjustments net of nil tax | 30,173 | 11,876 | 1,706 | ||||||||
Total other comprehensive income | 30,173 | 11,876 | 1,706 | ||||||||
Total comprehensive(loss)/ income | 32,344 | (894,614) | (128,505) | ||||||||
Total comprehensive loss attributable to non-controlling interest | - | (595) | (85) | ||||||||
Total comprehensive (loss)/income attributable to | 32,344 | (894,019) | (128,420) | ||||||||
Pre-IPO Preferred shares redemption value accretion | (76,770) | - | - | ||||||||
Comprehensive loss attributable to ordinary shareholders | (44,426) | (894,019) | (128,420) | ||||||||
Loss per ordinary share | |||||||||||
Basic and Diluted | (0.74) | (3.21) | (0.46) | ||||||||
Weighted average ordinary shares outstanding | |||||||||||
Basic and Diluted | 101,094,197 | 282,129,663 | 282,129,663 |
Unaudited Reconciliations of GAAP and Non-GAAP Results | ||||||||||
For the Year Ended | ||||||||||
(In thousands, except for share and per share data) | December 31, | December 31, | December 31, | |||||||
2018 Restated | 2019 | 2019 | ||||||||
RMB | RMB | USD | ||||||||
Net(Loss)/ income | 2,171 | (906,490) | (130,211) | |||||||
Add: Share-based compensation expenses | 131,260 | 17,847 | 2,563 | |||||||
Adjusted net (loss)/income | 133,431 | (888,643) | (127,648) | |||||||
Net loss attributable to ordinary shareholders | (74,599) | (905,895) | (130,126) | |||||||
Add: Share-based compensation expenses | 131,260 | 17,847 | 2,563 | |||||||
Adjusted net (loss)/income attributable to ordinary shareholders | 56,661 | (888,048) | (127,563) | |||||||
Adjusted net (loss)/income per ordinary share | ||||||||||
Basic and diluted | 0.56 | (3.15 ) | (0.45) | |||||||
Weighted average number of ordinary shares outstanding | ||||||||||
Basic and diluted | 101,094,197 | 282,129,663 | 282,129,663 |
Source:
2020 GlobeNewswire, Inc., source