```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].

[FinVolution Group Q4 and Fiscal Year 2021 Financial Results](index=1&type=section&id=FinVolution%20Group%20Q4%20and%20Fiscal%20Year%202021%20Financial%20Results) [Operational and Financial Highlights](index=1&type=section&id=Operational%20and%20Financial%20Highlights) The company achieved record transaction volume and strong profit growth in 2021, driven by a surge in new borrowers Full Year 2021 vs 2020 Key Operational Metrics | Metric | Full Year 2020 | Full Year 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Total Transaction Volume (RMB in billion) | 65.1 | 137.4 | 111.1% | | Total No. of New Individual Borrowers ('000) | 1,639 | 4,415 | 169.4% | | New Individual Borrowers China's Mainland ('000) | 1,010 | 3,015 | 198.5% | | New Individual Borrowers International ('000) | 629 | 1,400 | 122.6% | Q4 2021 vs Q4 2020 Key Operational Metrics | Metric | Q4 2020 | Q4 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Total Transaction Volume (RMB in billion) | 21.5 | 39.0 | 81.4% | | Total No. of New Individual Borrowers ('000) | 663 | 1,041 | 57.0% | | Total outstanding principal of loans (RMB in billion) | - | 50.3 | 88.4% | Q4 2021 Key Financial Highlights | Metric | Q4 2020 | Q4 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Net Revenue (RMB in million) | 1,853.0 | 2,448.0 | 32.1% | | Net Profit (RMB in million) | 497.3 | 649.7 | 30.6% | | Diluted Net Profit per ADS (RMB) | - | 2.21 | 28.5% | - Asset quality improved, with the **90 day+ delinquency ratio decreasing to 1.26%** as of December 31, 2021, compared to 1.56% as of December 31, 2020[6](index=6&type=chunk) [Management Commentary](index=3&type=section&id=Management%20Commentary) Management highlighted record transaction volume that surpassed guidance and robust revenue growth in Q4 - CEO Feng Zhang noted that the full-year 2021 transaction volume reached an all-time high of **RMB137.4 billion**, a YoY increase of 111.1%, surpassing the company's guidance[10](index=10&type=chunk) - International market transaction volume for 2021 **grew by 270.0% year-over-year to RMB3.7 billion**, despite the resurgence of COVID-19 in Southeast Asia[10](index=10&type=chunk) - The number of small business owners served in Q4 **increased by 161.3% YoY to 507 thousand**, with their transaction volume accounting for 22.1% of the total[10](index=10&type=chunk) - CFO Jiayuan Xu reported that Q4 net revenues **increased by 32.1% YoY to RMB2.4 billion**, driven by operational optimization and technological deployment[12](index=12&type=chunk) - The company's un-restricted cash and short-term liquidity position strengthened to **RMB5.6 billion in Q4 2021**, up from RMB4.6 billion in the same period last year[12](index=12&type=chunk) [Detailed Financial Results](index=4&type=section&id=Detailed%20Financial%20Results) The company's financials show strong revenue growth offset by rising sales and marketing expenses [Fourth Quarter 2021 Financial Results](index=4&type=section&id=Fourth%20Quarter%202021%20Financial%20Results) Q4 revenue grew 32.1% YoY, but higher marketing costs led to a 12.1% decline in operating profit Q4 2021 Revenue Breakdown (RMB in millions) | Revenue Component | Q4 2020 | Q4 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Loan facilitation service fees | 643.3 | 1,005.1 | 56.2% | | Post-facilitation service fees | 175.7 | 422.3 | 140.4% | | Guarantee income | 667.4 | 624.1 | -6.5% | | Net interest income | 204.3 | 294.7 | 44.2% | | **Total Net Revenue** | **1,853.0** | **2,448.0** | **32.1%** | Q4 2021 Expense & Profitability (RMB in millions) | Item | Q4 2020 | Q4 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Sales and marketing expenses | 209.6 | 389.4 | 85.8% | | Credit losses for quality assurance | 308.7 | 582.5 | 88.7% | | **Operating profit** | **595.6** | **523.5** | **-12.1%** | | **Net profit** | **497.3** | **649.7** | **30.6%** | [Fiscal Year 2021 Financial Results](index=7&type=section&id=Fiscal%20Year%202021%20Financial%20Results) Full-year revenue rose 25.2%, with operating profit up 13.3% despite a sharp rise in marketing spend Fiscal Year 2021 Revenue Breakdown (RMB in millions) | Revenue Component | FY 2020 | FY 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Loan facilitation service fees | 1,908.9 | 3,794.2 | 98.8% | | Post-facilitation service fees | 673.0 | 1,309.6 | 94.6% | | Guarantee income | 3,386.0 | 2,593.5 | -23.4% | | **Total Net Revenue** | **7,563.1** | **9,470.1** | **25.2%** | Fiscal Year 2021 Expense & Profitability (RMB in millions) | Item | FY 2020 | FY 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Sales and marketing expenses | 482.9 | 1,584.2 | 228.1% | | **Operating profit** | **2,307.5** | **2,613.8** | **13.3%** | | **Net profit** | **1,968.6** | **2,495.3** | **26.8%** | [Asset Quality and Delinquency Rates](index=6&type=section&id=Asset%20Quality%20and%20Delinquency%20Rates) Asset quality improved significantly, with the 90 day+ delinquency ratio decreasing to 1.26% - The **90 day+ delinquency ratio** for loans in China's Mainland improved to **1.26%** as of December 31, 2021, from 1.56% as of December 31, 2020[6](index=6&type=chunk) Delinquency Rates of Outstanding Loans (China's Mainland) | As of | 30-59 days | 60-89 days | 90-119 days | 150-179 days | | :--- | :--- | :--- | :--- | :--- | | Dec 31, 2020 | 0.55% | 0.48% | 0.52% | 0.55% | | Dec 31, 2021 | 0.67% | 0.55% | 0.49% | 0.36% | [Business Outlook and Corporate Actions](index=8&type=section&id=Business%20Outlook%20and%20Corporate%20Actions) The company projects cautious 2022 transaction volume growth and extended its share repurchase program [2022 Business Outlook](index=8&type=section&id=2022%20Business%20Outlook) The company forecasts 2022 transaction volume between RMB175 billion and RMB180 billion - The company forecasts its transaction volume for the full year 2022 to be in the range of **RMB175 billion to RMB180 billion**[30](index=30&type=chunk) - This guidance represents an expected year-over-year growth of **27.4% to 31.0%**[30](index=30&type=chunk) [Share Repurchase Program Update](index=9&type=section&id=Share%20Repurchase%20Program%20Update) The US$60 million share repurchase program was extended through December 31, 2022 - The company's board extended the existing **US$60 million share repurchase program** for another twelve months, through December 31, 2022[32](index=32&type=chunk) - As of December 31, 2021, the company had repurchased a total aggregate value of approximately **US$131.5 million** of its ADSs[32](index=32&type=chunk) [Unaudited Financial Statements](index=12&type=section&id=Unaudited%20Financial%20Statements) Unaudited statements show a strengthened balance sheet with increased assets, equity, and cash reserves [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to RMB18.1 billion, driven by increased cash and shareholders' equity Key Balance Sheet Items (RMB in thousands) | Item | Dec 31, 2020 | Dec 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | 2,632,174 | 4,418,127 | | Total assets | 14,882,185 | 18,138,551 | | Total liabilities | 6,451,855 | 7,428,941 | | Total shareholders' equity | 8,430,330 | 10,709,610 | [Consolidated Statements of Comprehensive Income](index=13&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Full-year net revenue grew 25.2% to RMB9.5 billion, boosting net profit to RMB2.5 billion Key Income Statement Items - Full Year (RMB in thousands) | Item | FY 2020 | FY 2021 | | :--- | :--- | :--- | | Net revenue | 7,563,087 | 9,470,128 | | Operating profit | 2,307,533 | 2,613,766 | | Net profit attributable to FinVolution Group | 1,972,700 | 2,508,947 | | Diluted net profit per ADS (RMB) | 6.61 | 8.46 | [Consolidated Statements of Cash Flows](index=14&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased, but strong investing inflows boosted the year-end cash position Key Cash Flow Items - Full Year (RMB in thousands) | Item | FY 2020 | FY 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | 2,206,909 | 630,227 | | Net cash provided by investing activities | 1,041,496 | 1,994,845 | | Net cash (used in)/provided by financing activities | (3,091,279) | (239,800) | | Cash, cash equivalent and restricted cash at end of period | 6,116,401 | 8,491,541 | [Reconciliation of GAAP and Non-GAAP Results](index=15&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) Non-GAAP results, which exclude share-based compensation, show higher adjusted operating income - The company uses Non-GAAP measures to evaluate operating results, primarily by excluding the impact of **share-based compensation expenses**[38](index=38&type=chunk) GAAP vs. Non-GAAP Operating Income (RMB in thousands) | Period | GAAP Operating Income | Share-based Compensation | Non-GAAP Adjusted Operating Income | | :--- | :--- | :--- | :--- | | Q4 2021 | 523,511 | 36,923 | 560,434 | | Full Year 2021 | 2,613,766 | 95,213 | 2,708,979 | Non-GAAP Diluted Net Profit per ADS (RMB) | Period | Q4 2020 | Q4 2021 | FY 2020 | FY 2021 | | :--- | :--- | :--- | :--- | :--- | | Non-GAAP Diluted Net Profit per ADS | 1.77 | 2.33 | 6.76 | 8.78 |

FinVolution Group (NYSE:FINV) Q4 2021 Earnings Conference Call March 14, 2022 8:30 PM ET Company Participants Jimmy Tan - Head, IR Feng Zhang - CEO Jiayuan Xu - CFO Conference Call Participants Yada Li - CICC Frank Zheng - Crédit Suisse Hanyang Wang - 86Research Limited Alex Ye - UBS Thomas Chong - Jefferies Operator Good morning, ladies and gentlemen. Thank you for participating in the Fourth Quarter and Full Year 2021 Earnings Conference Call for FinVolution Group. [Operator Instructions]. Today's confere ...

FinVolution Group (NYSE:FINV) Q3 2021 Earnings Conference Call November 18, 2021 7:00 AM ET Company Participants Jimmy Tan – Head-Investor Relations Feng Zhang – Chief Executive Officer Jiayuan Xu – Chief Financial Officer Conference Call Participants Eric Lu – China Renaissance Hanyang Wang – 86Research Alex Ye – UBS Thomas Chong – Jefferies Operator Hello, ladies and gentlemen. Thank you for participating in the Third Quarter 2021 Earnings Conference Call for FinVolution Group. At this time, all particip ...

| --- | --- | --- | --- | |----------|-------|-----------------------|-------| | | | | | | | | Investor Presentation | | | ... . ● | | Nov 2021 | | 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 investm ...

FinVolution Group (NYSE:FINV) Q2 2021 Earnings Conference Call August 23, 2021 8:00 AM ET Company Participants Jimmy Tan - Head of Investor Relations Feng Zhang - Chief Executive Officer Jiayuan Xu - Chief Financial Officer Conference Call Participants Thomas Chong - Jefferies Alex Ye - UBS Eric Lu - China Renaissance Hans Fan - CLSA Securities Operator Hello, ladies and gentlemen. Thank you for participating in the Second Quarter 2021 Earnings Conference Call for FinVolution Group. At this time, all partic ...

FinVolution Group (NYSE:FINV) Q1 2021 Earnings Conference Call May 25, 2021 8:00 AM ET Company Participants Jimmy Tan - Head of Investor Relations Feng Zhang - Chief Executive Officer Jiayuan Xu - Chief Financial Officer Conference Call Participants Thomas Chong - Jefferies Yiran Zhong - Credit Suisse Alex Ye - UBS Eric Lu - China Renaissance Henry Liang - Gold Dragon Operator Hello, ladies and gentlemen. Thank you for participating in the First Quarter 2021 Earnings Conference Call for FinVolution Group. A ...