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 ...