Ownership Structure - As of February 28, 2023, directors and executive officers own 32,940,707 Class A ordinary shares and 96,471,795 Class B ordinary shares, representing 29.7% of the issued shares and 76.5% of total voting power[4] - No shareholder owns more than 5% of the Company's outstanding shares, apart from certain investment funds, none of which has a controlling interest[4] Regulatory Compliance - The Company was conclusively identified by the SEC as a Commission-Identified Issuer under the Holding Foreign Companies Accountable Act due to its audit report issued by PricewaterhouseCoopers Zhong Tian LLP[3]

Financial Data and Key Metrics Changes - Total revenue for Q4 2022 decreased by 0.2% to RMB 248.3 million, while full-year revenue increased by 22.9% to RMB 989.7 million from RMB 805 million in the prior year [19] - Net loss for Q4 2022 was RMB 20.2 million, a significant reduction from RMB 48.3 million in the same period of 2021, while full-year net loss decreased to RMB 134.3 million from RMB 204.1 million in the prior year [24][25] - Operating loss margin improved to 11.9% in Q4 2022 from 24.6% in Q4 2021, and full-year operating loss margin improved to 15.4% from 32.1% [24] Business Line Data and Key Metrics Changes - Revenue from recommendation services increased by 8.5% to RMB 171.3 million in Q4 2022, driven by a 37.9% year-over-year increase in loan recommendation services [19] - Revenue from credit card recommendation services decreased by 3.5% year-over-year in Q4 2022, while full-year revenue from recommendation services increased by 27.2% to RMB 731.7 million [20] - Revenue from marketing and other services increased by 62% year-over-year to RMB 161 million for the full year, despite a decrease of 11.9% in Q4 [21] Market Data and Key Metrics Changes - The company expanded its partnerships with 56 banks, accounting for over 80% of online credit card issuing banks in China, enhancing its market position [9] - The average fee per credit card and domestic loan application increased by 3.4% and 27.8% to RMB 113.6 and RMB 14.6 respectively [20] Company Strategy and Development Direction - The company aims to empower the digital transformation of financial service providers and expand into adjacent categories, leveraging its technological capabilities [8][11] - Strategic partnerships with leaders in telecommunications, e-commerce, and lifestyle sectors are being pursued to enhance digital transformation efforts [11][28] - The company is committed to improving efficiency and reducing risks through diversification and category expansion strategies [28] Management's Comments on Operating Environment and Future Outlook - Management noted that the easing of COVID-19 restrictions could restore consumer confidence, albeit at a moderate pace [14] - The government is expected to maintain policies aimed at stimulating the economy, with a GDP growth target of around 5% for 2023 [15] - The company anticipates a more stable recovery in the economy and its business in the second half of the year, with a focus on quality growth [16] Other Important Information - The company received several awards for its innovation and data security compliance, highlighting its capabilities in the fintech sector [10] - Total operating expenses decreased by 15% year-over-year in 2022, contributing to margin improvements [13] Q&A Session Summary Question: Can you elaborate on the diversification and category expansion strategies? - Management emphasized the importance of leveraging technological capabilities and partnerships to enhance business efficiency and reduce risks, while also targeting new segments and geographical areas for growth [26][28]

Financial Performance - RONG360 Inc. raised approximately US$204.9 million (approximately RMB1,358.0 million) in net proceeds from its IPO on November 16, 2017[187]. - Total revenues for 2021 were RMB 805.0 million (US$ 126.3 million), with recommendation services accounting for 71.5% of total revenues[289]. - Total revenues increased by 37.4% from RMB585.8 million in 2020 to RMB805.0 million (US$126.3 million) in 2021, driven by growth in recommendation services and advertising[332]. - The company recorded an impairment for goodwill of RMB 12.6 million in 2020 due to the negative impact of COVID-19 on acquired entities[286]. - Net loss narrowed to RMB204.1 million (US$32.0 million) in 2021, compared to a net loss of RMB312.1 million in 2020[334]. - The company had cash and cash equivalents of RMB 762.8 million (US$ 119.7 million) and working capital of approximately RMB 424.9 million (US$ 66.7 million) as of December 31, 2021[288]. - The company intends to fund future cash requirements with existing cash balance, bank loans, and operational cash inflows[347]. Revenue Sources - As of December 31, 2021, RONG360 facilitated the issuance of over 23 million credit cards, with credit card recommendation services accounting for 50.7% of total revenues in 2021[193]. - The company generated approximately 7.6% of its revenue from loan product recommendations in overseas markets by the end of 2021[194]. - Revenue from insurance brokerage services accounted for 5.7% of total revenues in 2021, with a network of approximately 2,200 brokers across 17 provinces in China[197]. - In 2021, revenue from advertising and marketing services and other services grew by 167.2% compared to 2020, indicating successful expansion into adjacent and non-financial product categories[206]. - Revenues from recommendation services rose by 42.2% to RMB575.2 million (US$90.3 million) in 2021, with credit card recommendation services increasing by 38.4% to RMB407.8 million (US$64.0 million)[332]. Operational Strategy - RONG360 has established a diversified product offering, including credit cards, loans, and insurance products, enhancing its platform's value proposition[189]. - The company has expanded its operations to Southeast Asia, applying its successful business model from China to the overseas market[194]. - The company has cooperated with over 1,000 financial service providers to offer a wide variety of loan products on its platform as of December 31, 2021[194]. - The company has established a strong cooperative relationship with over 150 insurance companies, distributing more than 1,700 insurance products in China[208]. - The company has invested over ten years in building a stable network of financial service providers, differentiating itself from traditional institutions[189]. Technology and Innovation - RONG360's platform leverages AI and data analytics to provide tailored financial product recommendations to users[189]. - The platform's recommendation engine utilizes a complex algorithm that considers factors such as application approval likelihood and user satisfaction, enhancing user experience[200]. - The company has developed SaaS-based solutions to empower financial service providers, enhancing their operational efficiency and customer service capabilities[213]. - The personalized smart recommendation system predicts the success rate of financial product applications, helping users and financial service providers optimize their processes[220]. - The company developed an advanced search engine that generates personalized search results within milliseconds, utilizing real-time indexing and reinforcement learning technologies[220]. Marketing and User Acquisition - Approximately 70% of the credit card volume on the platform in 2021 was contributed by the social media and partner program, highlighting its effectiveness in user acquisition[204]. - The social media and partner program has effectively lowered total customer acquisition costs amidst rising online advertising expenses[206]. - The company has incurred significant expenses in marketing and user acquisition, which are expected to continue as it seeks to expand its user base[280]. - Cost of promotion and acquisition increased by 48.2% to RMB562.1 million (US$88.2 million) in 2021, aligned with the growth in recommendation and advertising services[332]. Regulatory Environment - The PRC Cybersecurity Law requires network operators to adopt measures to safeguard network operations and protect personal information, with penalties for violations[230]. - The PRC Personal Information Protection Law took effect on November 1, 2021, emphasizing the protection of personal information and requiring consent for processing[238]. - Violations of the PRC Personal Information Protection Law may result in administrative penalties, including fines and suspension of business operations[238]. - The Foreign Investment Law and its Implementing Rules took effect on January 1, 2020, replacing three previous laws on foreign investments in China[240]. - The company is subject to PRC regulatory scrutiny regarding its contractual arrangements with the VIEs, which may impact its operations[271]. Employee and Shareholder Information - The company had 839, 696, and 708 employees as of December 31 for the years 2019, 2020, and 2021, respectively[371]. - As of December 31, 2021, the company had 579 employees in Beijing, 26 in Shanghai, 9 in Shenzhen, and 94 in various other locations in China[371]. - The company has not paid dividends and will not be able to pay dividends until it generates accumulated profits and meets statutory reserve fund requirements[350]. - Major shareholders include Torch International Investment Ltd. with 29,661,224 Class A ordinary shares and Morgan Stanley Capital Services LLC with 27,366,180 Class A ordinary shares[382][384]. Financial Commitments and Future Outlook - The company expects an increase in costs of services in 2022 as business resumes growth, particularly in promotion and acquisition expenses[295]. - The company has not entered into any financial guarantees or derivative contracts that could affect its financial position[347]. - There are no known trends or uncertainties that are likely to materially affect net sales or profitability for the year ended December 31, 2021[352].

Corporate Structure and Regulatory Environment - Jianpu Technology Inc. operates primarily through its PRC subsidiaries and VIEs, with no direct equity ownership in the VIEs[28]. - The company relies on contractual arrangements with its VIEs to provide value-added telecommunication services, which are subject to PRC regulations[33]. - RDD, one of the VIEs, holds a value-added telecommunication services license (ICP license) obtained in July 2017[33]. - The PRC government's regulatory authority poses risks that could materially affect the company's operations and the value of its ADSs[28]. - The company faces uncertainties regarding the enforceability of its contractual arrangements with VIEs due to the evolving legal environment in China[32]. - Recent regulatory developments may impact the company's ability to conduct overseas listings and securities offerings[37]. - The evolving regulatory environment in China poses risks, as new laws may impose additional compliance costs and operational challenges[77]. - The company may be indirectly subject to PRC financial regulations due to the financial products on its platform, which could adversely affect its business and financial condition[94]. - The company is required to obtain approval from the credit reporting industry regulatory department to engage in personal credit reporting activities, with penalties for non-compliance[89]. - The regulatory framework for cybersecurity and data protection in China is evolving, leading to uncertainties that may negatively impact the company's business practices and financial condition[88]. Financial Performance and Condition - For the years ended December 31, 2018, 2019, and 2020, profit appropriation to statutory surplus fund was approximately nil, RMB1.9 million, and nil respectively[38]. - The company has not paid dividends from its PRC subsidiaries and will not be able to until they generate accumulated profits[38]. - Total revenues for the year ended December 31, 2020, were RMB 1,435,727 million, a decrease from RMB 1,921,876 million in 2018, representing a decline of approximately 25.3%[44]. - Gross profit for 2020 was RMB 1,301,759 million, down from RMB 1,727,384 million in 2018, indicating a decrease of about 24.6%[44]. - The net loss for the year ended December 31, 2020, was RMB 313,420 million, compared to a net loss of RMB 164,259 million in 2019, indicating a worsening of approximately 90.5%[44]. - Cash used in operating activities for 2020 was RMB 72,827 million, a significant increase from RMB 9,120 million in 2019[44]. - The company reported a loss from subsidiaries and VIEs of RMB 272,793 million in 2020, which was an increase from RMB 160,399 million in 2018[44]. - The company reported a significant increase in cash provided by financing activities, totaling RMB 951,909 million in 2020, compared to RMB 60,399 million in 2019[44]. - The company recorded an impairment of RMB12.6 million in 2020 due to the negative impact of the COVID-19 pandemic on acquired entities' financial performance[135]. - The company believes its current cash and cash equivalents will be sufficient for at least the next 12 months, but future capital raising may be challenging under unfavorable conditions[142]. Operational Challenges and Market Conditions - The company faces risks related to compliance with new regulations in new business domains, which could lead to higher costs and impact profitability[141]. - The global economic downturn, exacerbated by COVID-19, may negatively impact the company's business and financial condition[145]. - The company’s operations are heavily reliant on face-to-face communications, which were disrupted by quarantine measures during the pandemic[149]. - The company’s ability to expand its service offerings overseas has been negatively impacted by the pandemic, particularly in Southeast Asia[149]. - The competitive landscape in China's retail financial market is rapidly changing, with potential new entrants and existing competitors posing challenges[71]. - The company may face significant challenges in international expansion, including local competition and the need for substantial capital investment[137]. Compliance and Legal Risks - The company is subject to various regulations that could result in penalties, including the revocation of licenses and administrative fines, if it fails to comply with content regulations[131]. - The company may face legal disputes with third parties, which could divert managerial resources and incur substantial costs[133]. - The company has been named in several shareholder class action lawsuits, which could adversely affect its financial condition and reputation[146]. - The company is subject to a putative securities class action alleging material misstatements and omissions related to the review, which could lead to further legal and financial repercussions[167]. Internal Controls and Governance - Three material weaknesses in internal controls over financial reporting were identified and continue to exist as of December 31, 2020, potentially affecting the accuracy of financial reporting and investor confidence[171]. - The company identified three material weaknesses in internal control over financial reporting for the years ended December 31, 2018, 2019, and 2020, leading to ineffective internal controls[172]. - The lack of sufficient competent financial reporting personnel was noted as a recurring material weakness, impacting the preparation and review of consolidated financial statements[173]. - The company has implemented measures to address these material weaknesses but cannot assure continuous effectiveness or the absence of future weaknesses[173]. Data Protection and Cybersecurity - The PRC Cybersecurity Law mandates that personal information and important data collected by operators of critical information infrastructure must be stored within China, imposing heightened regulations and security obligations[80]. - The company has developed a comprehensive user information protection policy to comply with data protection laws and to clarify the purposes and methods of data collection[86]. - The Ministry of Industry and Information Technology identified the company for improper collection of personal information in July 2019, leading to necessary rectifications and improvements in data protection systems[86]. - The company has not been involved in any cybersecurity review investigations as of the date of the annual report, indicating a current lack of regulatory scrutiny[80]. Strategic Initiatives and Market Expansion - The company expanded its services to include insurance products in Q4 2019 and enriched its SaaS-based modules in 2019 and 2020, indicating a focus on product diversification[58]. - The company launched its Social Media and Partner Program in Q3 2018 to enhance user engagement and financial product recommendations[193]. - The insurance brokerage business commenced operations in Q4 2019, facing significant regulatory challenges from the China Banking and Insurance Regulatory Commission (CBIRC)[194]. - The company has expanded its footprint to Hong Kong and Southeast Asia since 2018, indicating a strategy for market expansion[58]. Financial Reporting and Audit Issues - The audit committee's independent review revealed overstated revenues of RMB 90 million for 2018 and RMB 164 million for 2019, representing approximately 4.5% and 10.1% of total revenues for those years respectively[167]. - The review also indicated that adjustments to overstated costs and expenses were approximately RMB 90 million and RMB 130 million for 2018 and 2019, resulting in a minimal net profit impact for 2018 and an increase in net loss of RMB 34 million for 2019[167]. - The company incurred significant costs related to the review, which required substantial management time and led to the termination of several employees[167]. Currency and Tax Risks - Fluctuations in the Renminbi against the U.S. dollar could materially impact revenues and earnings, with significant appreciation or depreciation posing risks to financial position[198]. - Limited hedging options in China may exacerbate exposure to foreign currency exchange risks, potentially affecting investment value[199]. - A withholding tax rate of 10% currently applies to dividends paid by a PRC "resident enterprise" to foreign enterprise investors, which may be reduced to 5% under certain conditions[212]. - The company does not have plans to distribute earnings overseas and intends to retain most funds in China for business operations and expansion[212].

Financial Performance - The company reported less than US$1.07 billion in revenue for the last fiscal year, qualifying as an "emerging growth company" under the JOBS Act[691]. Internal Control Weaknesses - As of December 31, 2019, the company did not maintain effective internal control over financial reporting due to identified material weaknesses[680]. - Three material weaknesses were identified, including ineffective controls related to credit card business, related party transactions, and insufficient financial reporting personnel[684][688][689]. - The company identified three material weaknesses in its internal controls over financial reporting as of December 31, 2019[691]. - There were no changes in internal controls over financial reporting that materially affected the company's internal control during the reporting period[694]. Remedial Measures - The company is implementing remedial measures to address these weaknesses, such as enhancing risk assessment procedures and improving financial reporting training[687][690]. Foreign Exchange and Interest Rate Risks - The company does not currently face significant direct foreign exchange risk as revenues and expenses are primarily in RMB, but fluctuations in the RMB to USD exchange rate could affect investment value[666]. - The company has not been exposed to material risks from changes in market interest rates and does not expect interest rate fluctuations to significantly impact financial conditions[668]. Inflation Impact - Inflation in China has not materially impacted the company's operations, with year-over-year consumer price index changes of 1.8%, 1.9%, and 4.5% for December 2017, 2018, and 2019 respectively[665]. ADR Program Reimbursements - The company received approximately $4.7 million in reimbursements from the depositary related to the establishment and maintenance of the ADR program as of December 31, 2020[677]. Auditor Attestation Exemption - The company is exempt from the auditor attestation requirement under Section 404 of the Sarbanes-Oxley Act of 2002 due to its emerging growth company status[693].

Financial Performance - In 2018, the company reported total revenues of RMB 1,766,348 thousand, a significant increase from RMB 1,348,361 thousand in 2017, representing a growth of approximately 31%[20] - The net loss attributable to the company's shareholders decreased to RMB 164,615 thousand in 2018 from RMB 202,125 thousand in 2017, indicating an improvement of about 18.5%[21] - The company's gross profit for 2018 was RMB 1,788,503 thousand, up from RMB 1,301,945 thousand in 2017, reflecting a growth of approximately 37%[20] - Operating expenses in 2018 totaled RMB 1,547,518 thousand, which accounted for 87.5% of total revenues, down from 91% in 2017[20] - Cash and cash equivalents as of December 31, 2018, were RMB 1,270,001 thousand, a decrease from RMB 1,543,811 thousand in 2017[25] - The company achieved net interest income of RMB 5,037 thousand in 2018, compared to no net interest income in previous years[20] - The total assets of the company increased to RMB 2,445,135 thousand in 2018 from RMB 1,913,515 thousand in 2017, marking a growth of approximately 28%[25] Business Strategy and Operations - The company aims to manage and reduce sales and marketing expenses, which accounted for 76.6% of total revenues in 2018[28] - The company completed a corporate restructuring to strengthen its positioning as an independent open platform, transferring the platform business from RONG360[26] - The majority of user traffic to the platform is generated from third-party channels, accounting for over one-third of user traffic in 2016, 2017, and 2018[35] - The largest financial service provider accounted for 19% of total revenues in 2016, 9% in 2017, and 13% in 2018[37] - The company incurs significant expenses on branding, marketing, and user traffic acquisition, which may continue in the future[35] - The ability to attract users and maintain the user base depends on the quantity and quality of financial products offered by financial service providers[37] - The company has limited control over the product and service quality of financial service providers, which may affect user satisfaction[46] Regulatory and Compliance Risks - A credit crisis or downturn in credit markets could lead to a material decline in revenues due to decreased transaction volumes[49] - Regulatory uncertainties in China's online consumer finance market may adversely affect the company's business and financial condition[50] - The company relies on financial service providers for the authenticity and accuracy of financial products, which is crucial for maintaining user trust[42] - The competitive landscape in China's retail financial market is rapidly evolving, posing challenges for user acquisition and retention[45] - The company must continue to innovate and enhance its platform to remain competitive and meet changing user preferences[44] - The company may be held liable for damages if it intentionally conceals material information or provides false information to financial service providers under PRC Contract Law[56] - Regulatory compliance is critical; any violation of PRC laws by financial products on the platform could materially affect the company's business and financial condition[57] - The company is indirectly subject to PRC financial regulations, which have become stricter since the issuance of various circulars regarding online lending and asset management practices[58] - The company has implemented internal control procedures to ensure compliance with relevant laws, but limited control over financial products may expose it to regulatory actions[61] - Recent reports indicated inappropriate conduct in financial products offered by third-party providers, prompting the company to review its practices and enhance internal controls[62] Data and Security Risks - The accuracy and timeliness of data from third parties are crucial; low-quality data could adversely affect the company's services and reputation[63] - The company faces risks from fraudulent activities on its platform, which could harm its brand and financial performance[67] - Security breaches could lead to unauthorized access to confidential information, damaging reputation and relationships with users and financial service providers[86] - The company has implemented measures to comply with the PRC Network Security Law, but there is no assurance that these measures will be effective[86] Economic and Market Risks - A prolonged downturn in the Chinese or global economy could negatively impact the company's business and financial condition[120] - The company operates primarily in China, where natural disasters and health epidemics could disrupt operations and adversely impact financial results[124] - Economic, political, or social changes in China could adversely affect the company's business and operating results, particularly given the government's significant control over economic growth[145] Corporate Governance and Shareholder Rights - The company is incorporated under the laws of the Cayman Islands, with corporate governance primarily based on its memorandum and articles of association and the Companies Law of the Cayman Islands[218] - Shareholder rights and fiduciary responsibilities of directors are less clearly established compared to jurisdictions like the United States, particularly Delaware[218] - The Cayman Islands has a less developed body of securities laws than the United States, impacting shareholder actions[218] - The corporate governance framework in the Cayman Islands may pose risks for investors seeking legal recourse[218] Legal and Tax Risks - The company faces significant uncertainties regarding the legality of existing and future foreign investments in internet-related businesses in China[156] - The company may not be able to maintain existing licenses or obtain new ones necessary for conducting its business in China[156] - The company faces significant tax liabilities if the PRC tax authorities determine that its related party transactions are not compliant with arm's length principles[140][141] - Dividends from PRC subsidiaries to foreign investors are subject to a withholding tax rate of 10%, which may be reduced to 5% under certain conditions[184] Shareholder and Market Dynamics - The trading price of the company's ADSs has fluctuated between $3.49 and $9.49 per ADS in 2018, indicating significant volatility[200] - As of March 31, 2019, the founders hold Class B ordinary shares and beneficially own approximately 77.1% of the aggregate voting power of the company[207] - The dual-class share structure allows Class B ordinary shares to have ten votes per share compared to one vote per Class A ordinary share, concentrating voting power among a few individuals[206] - The company does not expect to pay any cash dividends in the foreseeable future, intending to retain most of its available funds for business development[210]