Financial Performance - Total transaction volume for FY 2022 reached RMB 175.4 billion, a year-over-year increase of 27.7%[2] - Fourth quarter 2022 net revenue was RMB 3,050.0 million, up 24.6% from RMB 2,448.0 million in Q4 2021[13] - Net revenue for 2022 increased by 17.6% to RMB11,134.2 million (US$1,614.3 million) from RMB9,470.1 million in 2021[29] - Net revenues for Q4 2022 reached RMB 3,049,976, representing a 24.6% increase from RMB 2,448,023 in Q4 2021[64] - The operating profit for the year ended December 31, 2022, was RMB 2,515,338, a decrease of 3.7% compared to RMB 2,613,766 in 2021[61] - Non-GAAP net profit for Q4 2022 was RMB 577,309, down 16.0% from RMB 686,605 in Q4 2021[64] - Non-GAAP net profit attributable to FinVolution Group for the year 2022 was RMB 2,355,412, a decrease of 9.5% from RMB 2,604,160 in 2021[64] User and Transaction Metrics - Total cumulative registered users reached 159.4 million as of December 31, 2022, a 13.6% increase compared to the same period in 2021[5] - Transaction volume for repeat individual borrowers in Q4 2022 was RMB 42.1 billion, an increase of 34.1% compared to Q4 2021[5] - International business revenue contribution was 12.9% of total revenue in Q4 2022, increasing by 121.9% year-over-year to RMB 394.9 million[2] Loan and Financial Position - Outstanding loan balance as of December 31, 2022 was RMB 64.6 billion, reflecting a 28.4% increase year-over-year[5] - Average loan size for Q4 2022 was RMB 7,682, compared to RMB 6,114 in the same period of 2021[9] - Cash and short-term liquidity position strengthened to RMB 7,063.4 million as of December 31, 2022, a year-over-year increase of 25.6%[12] - As of December 31, 2022, the Company had cash and cash equivalents of RMB3,636.4 million (US$527.2 million) and short-term investments of RMB3,427.0 million (US$496.9 million)[27] Profitability and Margins - Net profit for Q4 2022 was RMB 556.3 million, a decrease of 14.4% from RMB 649.7 million in Q4 2021[25] - Diluted net profit per ADS was RMB1.91 (US$0.28), a decrease of 13.6% year-over-year[26] - The operating margin for Q4 2022 was 20.2%, compared to 21.4% in Q4 2021, indicating a decline in profitability[64] Provisions and Liabilities - Provision for accounts receivable increased by 489.0% to RMB 112.5 million in Q4 2022, up from RMB 19.1 million in Q4 2021[20] - Provision for accounts receivable and contract assets increased by 180.8% to RMB390.9 million (US$56.7 million) for 2022[35] - The total liabilities of FinVolution Group increased to RMB 8,938,422 as of December 31, 2022, compared to RMB 7,428,941 as of December 31, 2021, reflecting a rise of 20.3%[60] Shareholder Information - The company had cumulatively repurchased its own Class A ordinary shares in the form of ADSs with a total aggregate value of approximately US$182.3 million[44] - The weighted average number of ordinary shares used in computing net income per share for the year ended December 31, 2022, was 1,412,648,862[61] - The company reported a basic net profit per share attributable to FinVolution Group's ordinary shareholders of RMB 1.60 for the year ended December 31, 2022[61] - The weighted average number of diluted ordinary shares for 2022 was 1,454,291,316, compared to 1,482,501,832 in 2021[64] Future Guidance - The Company expects domestic full year transaction volume for 2023 to be in the range of RMB189.0 billion to RMB205.0 billion, representing a year-over-year growth of approximately 10.0% to 20.0%[45] - The Company announced international full year transaction volume guidance for 2023 to be around RMB6.4 billion, representing a year-over-year growth of approximately 50.0%[45]

FinVolution Group (NYSE:FINV) Q3 2022 Earnings Conference Call November 14, 2022 7:30 PM ET Company Participants Jimmy Tan - Head, IR Feng Zhang - CEO Jiayuan Xu - CFO Conference Call Participants Yada Li - CICC Alex Ye - UBS Frank Zheng - Crédit Suisse Thomas Chong - Jefferies Operator Hello, ladies and gentlemen. Thank you for participating in the third quarter 2022 Earnings Conference Call for FinVolution Group. [Operator Instructions]. Today's conference call is being recorded. I would now turn the call ...

| --- | --- | --- | --- | |-------|-------|-----------------------|-------| | | | | | | | | Investor Presentation | | | . | | Aug 2022 | | mmun ..... Disclaimer This presentation has been prepared by FinVolution Group (the "Company") pursuant to Section 5(d) of the U.S. Securities Act of 1933, as amended (the "Securities Act") solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any investment activi ...

Start Time: 20:30 January 1, 0000 9:28 PM ET FinVolution Group (NYSE:FINV) Q2 2022 Earnings Conference Call August 22, 2022, 20:30 PM ET Company Participants Feng Zhang - CEO Jiayuan Xu - CFO Jimmy Tan - Head of IR Conference Call Participants Frank Zheng - Credit Suisse Yada Li - CICC Alex Ye - UBS Thomas Chong - Jefferies Operator Hello, ladies and gentlemen. Thank you for participating in the Second Quarter 2022 Earnings Conference Call for FinVolution Group. At this time, all participants are in listen- ...

FinVolution Group (NYSE:FINV) Q1 2022 Earnings Conference Call May 31, 2022 8:30 PM ET Company Participants Jimmy Tan - Head of Investor Relations Feng Zhang - Chief Executive Officer Jiayuan Xu - Chief Financial Officer Conference Call Participants Yada Li - CICC Frank Zheng - Credit Suisse Alex Ye - UBS Operator Hello, ladies and gentlemen. Thank you for participating in the First Quarter 2022 Earnings Conference Call for FinVolution Group. At this time, all participants are in a listen-only mode. After m ...

```markdown [Executive Summary](index=1&type=section&id=Executive%20Summary) [First Quarter 2022 Unaudited Financial Results Overview](index=1&type=section&id=1.1%20First%20Quarter%202022%20Unaudited%20Financial%20Results%20Overview) FinVolution Group reported its unaudited financial results for Q1 2022, highlighting its **eighth consecutive quarter** of transaction volume growth, reaching a new record high of **RMB39.7 billion** - FinVolution Group achieved its **eighth consecutive quarter** of transaction volume growth[1](index=1&type=chunk) Key Financial and Operational Metrics (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB billion) | Q1 2022 (RMB billion) | YoY Change | | :---------------------------------- | :----------------------- | :----------------------- | :--------- | | Total Transaction Volume | 26.8 | 39.7 | 48.1% | | Transaction Volume (China's Mainland) | 26.0 | 38.8 | 49.2% | | Transaction Volume (International) | 0.76 | 0.86 | 13.2% | | Total Outstanding Loan Balance | 32.5 | 53.8 | 65.5% | | Outstanding Loan Balance (China's Mainland) | 32.2 | 53.4 | 65.8% | | Outstanding Loan Balance (International) | 0.25 | 0.36 | 44.0% | [First Quarter 2022 Operational Highlights Summary](index=1&type=section&id=1.2%20First%20Quarter%202022%20Operational%20Highlights%20Summary) The company continued its strategic transition towards better-quality borrowers, achieving record transaction volume and outstanding loan balances, with significant growth in small business and international operations, despite an increased 90-day+ delinquency ratio - The company continued its strategic transition towards better-quality borrowers[3](index=3&type=chunk) Key Operational Metrics (Q1 2022) | Metric | Value (Q1 2022) | YoY Change | | :---------------------------------- | :---------------- | :--------- | | Total cumulative registered users | 145.3 million | N/A | | Total unique borrowers | 3.2 million | N/A | | Total repeat borrowers | 2.4 million | N/A | | Total transaction volume | RMB39.7 billion | 48.1% | | Transaction volume for new individual borrowers | RMB6.4 billion | 14.3% | | Total outstanding principal of loans | RMB53.8 billion | 65.5% | | Transaction volume for small business owners | RMB9.8 billion | 122.7% | | Number of small business owners served | 507 thousand | 66.2% | | Transaction volume (international) | RMB0.86 billion | 13.2% | | Outstanding loan balance (international) | RMB0.36 billion | 44.0% | | 90 day+ delinquency ratio | 1.64% | +0.51 pp | | Average loan size | RMB7,107 | +62.7% | | Average loan tenor | 8.8 months | +0.4 months| [First Quarter 2022 Financial Highlights Summary](index=2&type=section&id=1.3%20First%20Quarter%202022%20Financial%20Highlights%20Summary) Net revenue increased by 15.8% year-over-year, driven by loan facilitation and post-facilitation service fees, though net profit and Non-GAAP adjusted operating income decreased due to increased operating expenses and credit losses Key Financial Highlights (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :---------------------------------- | :-------------------- | :-------------------- | :--------- | | Net revenue | 2,112.9 | 2,446.8 | 15.8% | | Net profit | 592.8 | 534.3 | -9.9% | | Non-GAAP adjusted operating income | 671.2 | 602.1 | -10.3% | | Diluted net profit per ADS | RMB2.00 | RMB1.81 | -9.5% | | Non-GAAP diluted net profit per ADS | RMB2.05 | RMB1.88 | -8.3% | [Operational Performance](index=1&type=section&id=Operational%20Performance) [User and Borrower Metrics](index=1&type=section&id=2.1%20User%20and%20Borrower%20Metrics) As of March 31, 2022, FinVolution Group's cumulative registered users reached **145.3 million**, serving **3.2 million** unique borrowers, including **2.4 million** repeat borrowers User and Borrower Statistics (as of March 31, 2022) | Metric | Value | | :-------------------------- | :------------ | | Total cumulative registered users | 145.3 million | | Total unique borrowers (Q1 2022) | 3.2 million | | Total repeat borrowers (Q1 2022) | 2.4 million | [Transaction Volume and Loan Balance](index=1&type=section&id=2.2%20Transaction%20Volume%20and%20Loan%20Balance) The company achieved record-breaking total transaction volume and outstanding loan balances, demonstrating robust growth across its platforms, including a significant increase in new individual borrower transactions [Total Transaction Volume](index=1&type=section&id=2.2.1%20Total%20Transaction%20Volume) Total transaction volume reached **RMB39.7 billion** in Q1 2022, marking an increase of **48.1%** year-over-year and an **eighth consecutive quarter** of growth Total Transaction Volume (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB billion) | Q1 2022 (RMB billion) | YoY Change | | :-------------------- | :----------------------- | :----------------------- | :--------- | | Total Transaction Volume | 26.8 | 39.7 | 48.1% | [Transaction Volume for New Individual Borrowers](index=1&type=section&id=2.2.2%20Transaction%20Volume%20for%20New%20Individual%20Borrowers) Transaction volume facilitated for new individual borrowers grew by **14.3%** year-over-year, reaching **RMB6.4 billion** in Q1 2022 Transaction Volume for New Individual Borrowers (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB billion) | Q1 2022 (RMB billion) | YoY Change | | :---------------------------------- | :----------------------- | :----------------------- | :--------- | | Transaction volume for new individual borrowers | N/A | 6.4 | 14.3% | [Total Outstanding Loan Balance](index=1&type=section&id=2.2.3%20Total%20Outstanding%20Loan%20Balance) The total outstanding principal of loans reached **RMB53.8 billion** as of March 31, 2022, representing a substantial **65.5%** increase compared to the previous year Total Outstanding Loan Balance (as of March 31, 2022 vs. 2021) | Metric | March 31, 2021 (RMB billion) | March 31, 2022 (RMB billion) | YoY Change | | :---------------------------------- | :------------------------------ | :------------------------------ | :--------- | | Total Outstanding Loan Balance | 32.5 | 53.8 | 65.5% | [Small Business Owners' Loans](index=1&type=section&id=2.3%20Small%20Business%20Owners'%20Loans) Loans for small business owners significantly increased, with transaction volume growing **122.7%** to **RMB9.8 billion** and the number of owners served rising **66.2%** Small Business Owners' Loan Metrics (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 | Q1 2022 | YoY Change | | :---------------------------------- | :------ | :------ | :--------- | | Transaction volume for small business owners | N/A | RMB9.8 billion | 122.7% | | % of total transaction volume | N/A | 24.7% | N/A | | Total numbers of small business owners served | N/A | 507 thousand | 66.2% | [International Expansion](index=2&type=section&id=2.4%20International%20Expansion) International markets continued to strengthen, with transaction volume increasing by **13.2%** to **RMB0.86 billion** and outstanding loan balance growing by **44.0%** to **RMB0.36 billion**, reflecting a focus on better-quality borrowers in these regions International Market Metrics (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB billion) | Q1 2022 (RMB billion) | YoY Change | | :---------------------------------- | :----------------------- | :----------------------- | :--------- | | Transaction volume (international) | 0.76 | 0.86 | 13.2% | | Outstanding loan balance (international) | 0.25 | 0.36 | 44.0% | [Asset Quality and Loan Characteristics](index=2&type=section&id=2.5%20Asset%20Quality%20and%20Loan%20Characteristics) The 90-day+ delinquency ratio increased to **1.64%** as of March 31, 2022, with average loan size and tenor also rising, indicating a shift in loan portfolio characteristics Loan Quality and Characteristics (Q1 2022 vs. Q1 2021) | Metric | March 31, 2021 | March 31, 2022 | Change | | :-------------------------- | :------------- | :------------- | :----- | | 90 day+ delinquency ratio | 1.13% | 1.64% | +0.51 pp | | Average loan size (Q1) | RMB4,369 | RMB7,107 | +62.7% | | Average loan tenor (Q1) | 8.4 months | 8.8 months | +0.4 months | [Management Commentary](index=3&type=section&id=Management%20Commentary) [CEO's Remarks](index=3&type=section&id=3.1%20CEO's%20Remarks) CEO Feng Zhang highlighted the company's strong technological foundation and strategic shift to better-quality borrowers, driving record transaction volume and growth in small business and international operations, alongside new ESG ratings - CEO emphasized strong technological foundation and strategic transition towards better-quality borrowers as drivers for solid, consistent results[9](index=9&type=chunk) - Record-setting total transaction volume of **RMB39.7 billion**, a **48.1% YoY increase**, was achieved[9](index=9&type=chunk) - Operations empowering small business owners maintained solid growth, with transaction volume increasing **122.7% YoY to RMB9.8 billion**[10](index=10&type=chunk) - International transaction volume grew **13.2% YoY to RMB0.86 billion**, with outstanding loan balance up **44.0% YoY**, supported by partnerships and new product introductions[11](index=11&type=chunk) - FinVolution Group received a '**low-risk**' rating from Sustainalytics and was included in ESG ratings by platforms like ESG Enterprise, reinforcing its commitment to ESG goals[12](index=12&type=chunk) [CFO's Remarks](index=3&type=section&id=3.2%20CFO's%20Remarks) CFO Jiayuan Xu attributed the **15.8%** net revenue increase to R&D and operational improvements, highlighting strong Non-GAAP operating income of **RMB602.1 million** and a robust balance sheet with **RMB10.8 billion** in equity and increased liquidity - CFO attributed net revenue growth to consistent R&D efforts and continuous development of technologies[13](index=13&type=chunk) Key Financial Strength Indicators (as of March 31, 2022) | Metric | Value (RMB) | | :---------------------------------- | :------------ | | Non-GAAP operating income | 602.1 million | | Total shareholder's equity | 10.8 billion | | Unrestricted cash and short-term liquidity | 6.3 billion | - Unrestricted cash and short-term liquidity increased by **12.5% sequentially to RMB6.3 billion**, demonstrating balance sheet robustness[13](index=13&type=chunk) [Detailed Financial Analysis](index=4&type=section&id=Detailed%20Financial%20Analysis) [Net Revenue Breakdown](index=4&type=section&id=4.1%20Net%20Revenue%20Breakdown) Net revenue for Q1 2022 increased by **15.8%** to **RMB2,446.8 million**, primarily driven by significant increases in loan facilitation service fees and post-facilitation service fees, partially offset by decreases in guarantee income, net interest income, and other revenue Net Revenue (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Net revenue | 2,112.9 | 2,446.8 | 15.8% | [Loan Facilitation Service Fees](index=4&type=section&id=4.1.1%20Loan%20Facilitation%20Service%20Fees) Loan facilitation service fees increased by **31.5%** to **RMB1,001.4 million**, mainly due to higher transaction volume, despite a decrease in service fee rates Loan Facilitation Service Fees (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :---------------------------------- | :-------------------- | :-------------------- | :--------- | | Loan facilitation service fees | 761.6 | 1,001.4 | 31.5% | [Post-Facilitation Service Fees](index=4&type=section&id=4.1.2%20Post-Facilitation%20Service%20Fees) Post-facilitation service fees saw a substantial increase of **102.5%** to **RMB458.4 million**, driven by the growth in outstanding loans and the rolling impact of deferred transaction fees Post-Facilitation Service Fees (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :---------------------------------- | :-------------------- | :-------------------- | :--------- | | Post-facilitation service fees | 226.4 | 458.4 | 102.5% | [Guarantee Income](index=4&type=section&id=4.1.3%20Guarantee%20Income) Guarantee income decreased by **7.1%** to **RMB612.1 million**, primarily due to improved asset quality and the company's transition to better-quality borrowers, which reduced the fair value of quality assurance commitments Guarantee Income (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Guarantee income | 659.2 | 612.1 | -7.1% | [Net Interest Income](index=4&type=section&id=4.1.4%20Net%20Interest%20Income) Net interest income decreased by **4.0%** to **RMB269.1 million**, mainly due to lower interest rates, partially offset by an increase in the outstanding balance of on-balance sheet loans Net Interest Income (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Net interest income | 280.4 | 269.1 | -4.0% | [Other Revenue](index=4&type=section&id=4.1.5%20Other%20Revenue) Other revenue declined by **42.9%** to **RMB105.8 million**, primarily due to a decrease in customer referral fees from third-party platforms Other Revenue (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Other revenue | 185.2 | 105.8 | -42.9% | [Operating Expenses](index=4&type=section&id=4.2%20Operating%20Expenses) Total operating expenses increased, driven by higher origination and servicing costs and increased R&D investments, while sales and marketing and general and administrative expenses saw slight decreases or improved efficiency [Origination, Servicing Expenses and Other Cost of Revenue](index=4&type=section&id=4.2.1%20Origination,%20Servicing%20Expenses%20and%20Other%20Cost%20of%20Revenue) These expenses increased by **20.5%** to **RMB497.7 million**, mainly due to higher employee expenditures and fees paid to third-party service providers, correlating with the increase in loan origination volume Origination, Servicing Expenses and Other Cost of Revenue (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :---------------------------------- | :-------------------- | :-------------------- | :--------- | | Origination, servicing expenses and other cost of revenue | 413.1 | 497.7 | 20.5% | [Sales and Marketing Expenses](index=4&type=section&id=4.2.2%20Sales%20and%20Marketing%20Expenses) Sales and marketing expenses remained relatively stable, decreasing slightly by **0.7%** to **RMB332.0 million** Sales and Marketing Expenses (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :-------------------------- | :-------------------- | :-------------------- | :--------- | | Sales and marketing expenses | 334.2 | 332.0 | -0.7% | [Research and Development Expenses](index=4&type=section&id=4.2.3%20Research%20and%20Development%20Expenses) Research and development expenses increased by **19.8%** to **RMB112.4 million**, reflecting increased investments in technology development Research and Development Expenses (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :---------------------------------- | :-------------------- | :-------------------- | :--------- | | Research and development expenses | 93.8 | 112.4 | 19.8% | [General and Administrative Expenses](index=4&type=section&id=4.2.4%20General%20and%20Administrative%20Expenses) General and administrative expenses decreased by **19.1%** to **RMB91.1 million**, indicating improved operating efficiency General and Administrative Expenses (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :---------------------------------- | :-------------------- | :-------------------- | :--------- | | General and administrative expenses | 112.6 | 91.1 | -19.1% | [Provisions and Credit Losses](index=4&type=section&id=4.3%20Provisions%20and%20Credit%20Losses) Provisions for accounts receivable, loans receivable, and credit losses for quality assurance commitment all increased year-over-year, primarily due to the growth in outstanding loan balances, despite efforts to transition to better-quality borrowers [Provision for Accounts Receivable and Contract Assets](index=4&type=section&id=4.3.1%20Provision%20for%20Accounts%20Receivable%20and%20Contract%20Assets) Provision for accounts receivable and contract assets increased by **83.7%** to **RMB73.1 million**, driven by the increase in outstanding loan balances, partially mitigated by a lower default rate from better-quality borrowers Provision for Accounts Receivable and Contract Assets (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :---------------------------------- | :-------------------- | :-------------------- | :--------- | | Provision for accounts receivable and contract assets | 39.8 | 73.1 | 83.7% | [Provision for Loans Receivable](index=5&type=section&id=4.3.2%20Provision%20for%20Loans%20Receivable) Provision for loans receivable significantly increased to **RMB99.5 million** from **RMB18.8 million** in the prior year, mainly due to higher on-balance sheet loan volume, with some offset from improved borrower quality Provision for Loans Receivable (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :---------------------------------- | :-------------------- | :-------------------- | :--------- | | Provision for loans receivable | 18.8 | 99.5 | 429.3% | [Credit Losses for Quality Assurance Commitment](index=5&type=section&id=4.3.3%20Credit%20Losses%20for%20Quality%20Assurance%20Commitment) Credit losses for quality assurance commitment increased to **RMB659.0 million** from **RMB444.9 million**, primarily due to the increase in outstanding loan balances, partially offset by a lower default rate from the transition to better-quality borrowers Credit Losses for Quality Assurance Commitment (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :---------------------------------- | :-------------------- | :-------------------- | :--------- | | Credit losses for quality assurance commitment | 444.9 | 659.0 | 48.1% | [Profitability Metrics](index=5&type=section&id=4.4%20Profitability%20Metrics) Operating profit and net profit both decreased year-over-year despite increased net revenue, primarily due to higher operating expenses and credit loss provisions, while other income, net, increased due to government subsidies [Operating Profit](index=5&type=section&id=4.4.1%20Operating%20Profit) Operating profit decreased by **11.2%** to **RMB582.0 million** in Q1 2022 Operating Profit (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Operating profit | 655.7 | 582.0 | -11.2% | [Non-GAAP Adjusted Operating Income](index=5&type=section&id=4.4.2%20Non-GAAP%20Adjusted%20Operating%20Income) Non-GAAP adjusted operating income, excluding share-based compensation, decreased by **10.3%** to **RMB602.1 million** Non-GAAP Adjusted Operating Income (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :---------------------------------- | :-------------------- | :-------------------- | :--------- | | Non-GAAP adjusted operating income | 671.2 | 602.1 | -10.3% | [Other Income, Net](index=5&type=section&id=4.4.3%20Other%20Income,%20Net) Other income, net, increased by **19.0%** to **RMB50.8 million**, primarily due to an increase in government subsidies, partially offset by a decrease in investment gains Other Income, Net (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Other income, net | 42.7 | 50.8 | 19.0% | [Income Tax Expense](index=5&type=section&id=4.4.4%20Income%20Tax%20Expense) Income tax expense decreased to **RMB98.6 million**, mainly due to the decline in operating profit Income Tax Expense (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :-------------------- | :-------------------- | :-------------------- | :--------- | | Income tax expense | 105.7 | 98.6 | -6.7% | [Net Profit and EPS](index=5&type=section&id=4.4.5%20Net%20Profit%20and%20EPS) Net profit decreased by **9.9%** to **RMB534.3 million**, with diluted net profit per ADS falling **9.5%** to **RMB1.81** and Non-GAAP diluted net profit per ADS decreasing **8.3%** to **RMB1.88** Net Profit and EPS (Q1 2022 vs. Q1 2021) | Metric | Q1 2021 (RMB million) | Q1 2022 (RMB million) | YoY Change | | :---------------------------------- | :-------------------- | :-------------------- | :--------- | | Net profit | 592.8 | 534.3 | -9.9% | | Diluted net profit per ADS | RMB2.00 | RMB1.81 | -9.5% | | Non-GAAP diluted net profit per ADS | RMB2.05 | RMB1.88 | -8.3% | [Liquidity and Capital Position](index=5&type=section&id=4.5%20Liquidity%20and%20Capital%20Position) As of March 31, 2022, the company maintained a strong liquidity position with **RMB3,621.0 million** in cash and cash equivalents and **RMB2,689.6 million** in short-term investments Liquidity and Capital Position (as of March 31, 2022) | Metric | Value (RMB million) | | :-------------------------- | :------------------ | | Cash and cash equivalents | 3,621.0 | | Short-term investments | 2,689.6 | [Asset Quality and Delinquency Rates](index=6&type=section&id=Asset%20Quality%20and%20Delinquency%20Rates) [Delinquency Rates for Outstanding Loans](index=6&type=section&id=5.1%20Delinquency%20Rates%20for%20Outstanding%20Loans) The delinquency rates for outstanding loans in China's Mainland showed fluctuations across different delinquency buckets as of March 31, 2022, with a general increase compared to March 31, 2021, particularly in the 90-179 days past due categories Delinquency Rates for Outstanding Loans (China's Mainland) as of March 31, 2022 | Delinquency Period | March 31, 2021 | March 31, 2022 | | :----------------- | :------------- | :------------- | | 15-29 days | 0.29% | 0.35% | | 30-59 days | 0.52% | 0.64% | | 60-89 days | 0.43% | 0.57% | | 90-119 days | 0.39% | 0.58% | | 120-149 days | 0.38% | 0.57% | | 150-179 days | 0.36% | 0.49% | [Historical Cumulative 30-Day Plus Past Due Delinquency Rates](index=6&type=section&id=5.2%20Historical%20Cumulative%2030-Day%20Plus%20Past%20Due%20Delinquency%20Rates) The report includes historical cumulative 30-day plus past due delinquency rates by loan origination vintage in China's Mainland, offering insights into long-term asset quality trends[22](index=22&type=chunk) [Business Outlook and Corporate Actions](index=7&type=section&id=Business%20Outlook%20and%20Corporate%20Actions) [Business Outlook for Q2 2022](index=7&type=section&id=6.1%20Business%20Outlook%20for%20Q2%202022) Due to COVID-19 resurgence in China, the company anticipates Q2 2022 transaction volume between **RMB40.0 billion to RMB41.0 billion**, a **19.8% to 22.8%** year-over-year increase, subject to market conditions - The company holds a cautious view on Q2 2022 operations due to COVID-19 resurgence in China[23](index=23&type=chunk) Q2 2022 Transaction Volume Forecast | Metric | Forecast (RMB billion) | YoY Increase | | :-------------------- | :------------------------ | :----------- | | Transaction Volume | 40.0 - 41.0 | 19.8% - 22.8%| [Shares Repurchase Program Update](index=7&type=section&id=6.2%20Shares%20Repurchase%20Program%20Update) The board extended the **US$60 million** share repurchase program for another twelve months, with approximately **US$147.2 million** worth of ADSs repurchased under current and previous programs as of April 30, 2022 - The **US$60 million** share repurchase program was extended for another twelve months, from January 1, 2022, to December 31, 2022[24](index=24&type=chunk) Share Repurchase Program Status (as of April 30, 2022) | Metric | Value | | :---------------------------------- | :-------------- | | Total aggregate value repurchased (current and previous programs) | Approximately US$147.2 million | [Additional Information](index=7&type=section&id=Additional%20Information) [Conference Call Details](index=7&type=section&id=7.1%20Conference%20Call%20Details) Details for the earnings conference call, including dial-in numbers for various regions and webcast information, are provided for investors and media - Conference call details, including dial-in numbers for the US, Canada, International, Hong Kong, and Mainland China, are provided for the earnings call on May 31, 2022[25](index=25&type=chunk)[26](index=26&type=chunk) - A live and archived webcast of the conference call is available on the company's investor relations website[26](index=26&type=chunk) [About FinVolution Group](index=8&type=section&id=7.2%20About%20FinVolution%20Group) FinVolution Group is a leading China-based fintech platform, established in 2007, connecting underserved borrowers with financial institutions using advanced technologies and serving over **145.3 million** users - FinVolution Group is a leading fintech platform in China, established in 2007, connecting underserved individual borrowers with financial institutions[29](index=29&type=chunk) - The company utilizes proprietary technologies in credit risk assessment, fraud detection, big data, and artificial intelligence[29](index=29&type=chunk) - As of March 31, 2022, FinVolution Group had over **145.3 million** cumulative registered users[29](index=29&type=chunk) [Use of Non-GAAP Financial Measures](index=8&type=section&id=7.3%20Use%20of%20Non-GAAP%20Financial%20Measures) Non-GAAP financial measures, such as adjusted operating profit and diluted net profit per share/ADS, are used to evaluate operating results by excluding share-based compensation, but are not U.S. GAAP defined and should not be considered in isolation - Non-GAAP financial measures (operating profit, basic/diluted net profit per share/ADS) are used for evaluating operating results and financial decision-making[30](index=30&type=chunk) - These Non-GAAP measures exclude share-based compensation expenses to identify underlying business trends[30](index=30&type=chunk) - Non-GAAP measures are not defined under U.S. GAAP and should not be considered in isolation or as a substitute for GAAP measures[31](index=31&type=chunk) [Exchange Rate Information](index=8&type=section&id=7.4%20Exchange%20Rate%20Information) The report specifies that all RMB to U.S. dollar translations are made at a rate of **RMB6.3393 to US$1.00**, the rate in effect as of March 31, 2022 - All RMB to U.S. dollar translations in the announcement are based on an exchange rate of **RMB6.3393 to US$1.00**, as of March 31, 2022[32](index=32&type=chunk) [Safe Harbor Statement](index=9&type=section&id=7.5%20Safe%20Harbor%20Statement) The press release contains forward-looking statements subject to known and unknown risks and uncertainties that could cause actual results to differ materially, with no obligation to update unless legally required - The press release contains forward-looking statements, which are subject to various known and unknown risks and uncertainties[33](index=33&type=chunk) - Potential risks include the company's ability to attract borrowers/investors, increase loan volume, introduce new products, compete effectively, and comply with regulations[33](index=33&type=chunk) - FinVolution does not undertake any obligation to update forward-looking statements, except as required by applicable law[33](index=33&type=chunk) [Investor and Media Inquiries](index=9&type=section&id=7.6%20Investor%20and%20Media%20Inquiries) Contact information for investor and media inquiries is provided for both China and the United States, including direct contacts at FinVolution Group and The Piacente Group, Inc - Contact information for investor and media inquiries is provided for both China (FinVolution Group and The Piacente Group, Inc.) and the United States (The Piacente Group, Inc.)[34](index=34&type=chunk) [Unaudited Interim Condensed Consolidated Financial Statements](index=10&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) [Balance Sheets](index=10&type=section&id=8.1%20Balance%20Sheets) The unaudited interim condensed consolidated balance sheets present the company's financial position as of March 31, 2022, with total assets of **RMB19,399.8 million** and total liabilities of **RMB8,572.6 million** Key Balance Sheet Figures (as of March 31, 2022) | Metric | Value (RMB thousands) | | :---------------------------------- | :-------------------- | | Total assets | 19,399,791 | | Total liabilities | 8,572,586 | | Total shareholders' equity | 10,827,205 | | Cash and cash equivalents | 3,621,008 | | Short-term investments | 2,689,558 | | Loans receivable, net | 2,415,650 | [Statements of Comprehensive Income](index=11&type=section&id=8.2%20Statements%20of%20Comprehensive%20Income) The unaudited interim condensed consolidated statements of comprehensive income detail the company's revenues, expenses, and net profit for the three months ended March 31, 2021, and 2022, showing a net profit of **RMB534.3 million** for Q1 2022 Key Comprehensive Income Figures (Q1 2022) | Metric | Value (RMB thousands) | | :---------------------------------- | :-------------------- | | Net revenue | 2,446,794 | | Total operating expenses | (1,864,753) | | Operating profit | 582,041 | | Profit before income tax expense | 632,890 | | Net profit | 534,259 | | Diluted net profit per ADS | 1.81 | [Statements of Cash Flows](index=12&type=section&id=8.3%20Statements%20of%20Cash%20Flows) The unaudited interim condensed consolidated statements of cash flows show that for the three months ended March 31, 2022, the company had net cash used in operating activities of **RMB35.2 million**, net cash used in investing activities of **RMB1,743.2 million**, and net cash provided by financing activities of **RMB401.2 million** Key Cash Flow Figures (Q1 2022) | Metric | Value (RMB thousands) | | :---------------------------------- | :-------------------- | | Net cash provided by/ (used in) operating activities | (35,152) | | Net cash provided by/ (used in) investing activities | (1,743,175) | | Net cash provided by/ (used in) financing activities | 401,228 | | Cash, cash equivalent and restricted cash at end of period | 7,112,346 | [Reconciliation of GAAP and Non-GAAP Results](index=13&type=section&id=8.4%20Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) This section reconciles GAAP to Non-GAAP financial measures for operating income and net profit by adjusting for share-based compensation, showing Non-GAAP adjusted operating income of **RMB602.1 million** and net profit of **RMB554.8 million** for Q1 2022 GAAP to Non-GAAP Reconciliation (Q1 2022) | Metric | GAAP (RMB thousands) | Adjustment (RMB thousands) | Non-GAAP (RMB thousands) | | :---------------------------------- | :------------------- | :------------------------- | :----------------------- | | Operating Income | 582,041 | +20,098 (share-based comp) | 602,139 | | Net Profit attributable to FinVolution Group | 534,663 | +20,098 (share-based comp) | 554,761 | | Non-GAAP diluted net profit per ADS | N/A | N/A | 1.88 | ```

Foreign Exchange and Regulatory Risks - Limited hedging options in China may expose the company to foreign currency exchange risk, with no hedging transactions entered in 2021 [247]. - The PRC government controls the convertibility of RMB into foreign currencies, affecting the company's ability to utilize net revenues effectively [248]. - The PRC government has imposed more restrictive foreign exchange policies since 2016, which may hinder the company's ability to pay dividends in foreign currencies [249]. - PRC regulations on offshore investment activities may limit the company's ability to increase registered capital or distribute profits [253]. - Non-compliance with SAFE Circular 37 could restrict the company's ability to distribute profits and expose it to legal liabilities [254]. - Approval from the CSRC may be required for offshore offerings, with uncertainties regarding the timeline and conditions for obtaining such approvals [269]. - The Draft Provisions and Draft Administration Measures propose a new filing-based regime for overseas offerings, with potential fines ranging from RMB 1 million to RMB 10 million for non-compliance [272]. Taxation and Compliance Issues - The classification as a PRC resident enterprise could subject the company to a 25% enterprise income tax on global income, impacting net income [260]. - Uncertainties regarding tax residency rules may lead to unfavorable tax consequences for the company and its non-PRC shareholders [262]. - The company may not be able to obtain benefits under relevant tax treaties on dividends paid by its PRC subsidiaries [263]. - The company faces uncertainties regarding indirect transfers of equity interests in PRC resident enterprises, which may require reporting to PRC tax authorities [265]. - The SAT Public Notice 7 introduces a new tax regime for indirect transfers, potentially subjecting gains to PRC enterprise income tax at a rate of 10% [267]. - The company may incur additional compliance costs related to SAT Circular 698 and SAT Public Notice 7 for past and future transactions involving PRC taxable assets [268]. Corporate Governance and Shareholder Rights - The company is incorporated under the laws of the Cayman Islands, which may limit shareholders' ability to enforce judgments obtained in U.S. courts [294]. - As of March 31, 2022, holders of Class B ordinary shares own 93.2% of the aggregate voting power, significantly limiting the influence of Class A shareholders [301]. - Holders of ADSs may have limited rights to participate in future rights offerings, which could lead to dilution of their holdings [290]. - The depositary may determine it is unlawful or impractical to distribute dividends or other distributions to ADS holders, potentially causing a decline in the value of the ADSs [292]. - The depositary may close its transfer books at any time, which could limit the transferability of ADSs [293]. Financial Performance and Market Risks - The company relies on dividends and distributions from its PRC subsidiaries to meet liquidity requirements, with a current withholding tax rate of 10% on dividends paid to foreign investors, potentially reduced to 5% under certain conditions [264]. - The market price of the company's ADSs may be volatile due to factors beyond its control, including the performance of other Chinese companies listed in the U.S. [280]. - The trading volume and price of the company's ADSs may be affected by announcements related to product quality, changes in market valuations, and fluctuations in quarterly results [281]. - The company may face significant price declines in its ADSs due to substantial future sales or perceived potential sales in the public market [283]. Legal and Compliance Challenges - The PCAOB is currently unable to inspect the company's auditor in China, which may affect investor confidence in the quality of financial statements [275]. - The company expects to be identified as a "Commission Identified Issuer" shortly after the filing of its annual report on Form 20-F due to PCAOB's inability to inspect its auditor [276]. - If the PCAOB cannot conduct inspections before the issuance of the financial statements for the year ending December 31, 2023, trading of the company's shares and ADSs in the U.S. may be prohibited, significantly impairing capital raising efforts [277]. - A bill passed by the U.S. Senate could reduce the number of consecutive non-inspection years required for trading prohibitions under the HFCA Act from three years to two, potentially leading to trading prohibitions in 2023 [279]. - Being a public company has resulted in increased legal, accounting, and compliance costs, particularly after ceasing to qualify as an "emerging growth company" [313]. - The company faces potential securities class action suits that could divert management's attention and resources, negatively impacting operations [315]. - Significant expenses may be incurred to defend against any class action suits, regardless of their outcome [315]. - A successful claim against the company could result in substantial damages, adversely affecting financial condition and operational results [315]. Employee Compensation and Stock Options - The company has not made adequate contributions to employee benefit plans, which may result in penalties and affect financial condition [250]. - The company has granted options to purchase 127,415,885 Class A ordinary shares under the 2013 Plan, with a maximum of 221,917,800 shares authorized [304]. - Under the 2017 Plan, options to purchase 6,885,045 Class A ordinary shares were granted, with a maximum of 1,000,000,000 shares authorized [305]. - Share-based compensation expenses incurred in 2021 amounted to RMB95.2 million (US$14.9 million) related to options granted under both the 2013 and 2017 Plans [306]. - The company is likely classified as a Passive Foreign Investment Company (PFIC) for U.S. federal income tax purposes for the taxable year ended December 31, 2021 [312].