Financial Reporting - Pintec Technology Holdings Limited filed its 2022 Annual Report on Form 20-F on May 15, 2023[2] - The report was signed by CEO Zexiong Huang, indicating executive endorsement of the financial disclosures[3]

Financial Performance and Compliance - The company raised approximately US$40.7 million in net proceeds from its initial public offering on October 24, 2018[342]. - The company received notification from Nasdaq on December 9, 2021, for not complying with the minimum bid price requirement, with a closing price below US$1.00 for 30 consecutive trading days[353]. - The company amended the ratio of its ADS from one ADS representing seven Class A ordinary shares to one ADS representing thirty-five Class A ordinary shares on May 13, 2022[354]. - The company regained compliance with Nasdaq's minimum bid price requirement on June 2, 2022, after the ADS ratio change[355]. - On March 17, 2023, the company announced share purchase agreements to sell 254,450,000 Class A ordinary shares for a total of US$4,000,000, at a per share price of approximately US$0.0157[359]. - The company regained compliance with Nasdaq's minimum bid price requirement, with the closing bid price at US $1.00 per share for the last 10 consecutive business days[360]. Business Expansion and Acquisitions - In December 2018, the company established Pintec Solutions Pte. Ltd. in Singapore for international business expansion and acquired Anxunying (Tianjin) Commercial Factoring Co., Ltd. from Jimu Group[342]. - The company acquired Ganzhou Aixin Micro Finance for RMB230 million (US$35 million) in March 2019, enhancing its service offerings and data collection capabilities[343]. - On October 22, 2020, the company closed the acquisition of Yinchuan Chuanxi Technology Co., Ltd. for RMB400 million (US$61.3 million)[347]. - The company has established seven joint ventures or subsidiaries outside of China, including partnerships in Southeast Asia and Australia, to expand its market presence[438]. Loan Facilitation and Services - As of December 31, 2022, the company facilitated a cumulative total of approximately RMB49.3 billion (US$7.1 billion) in loans, serving close to 15.6 million borrowers[374]. - The total number of borrowers directly served by the company increased from 617 in 2021 to 946 in 2022, focusing on micro and small loans ranging from RMB5,000 to RMB1 million[375]. - The company provides point-of-sale lending solutions to 25 business partners, including BestPay, and personal installment lending solutions to 14 partners, including Ctrip[365]. - The total volume of point-of-sale installment loans facilitated by the company was approximately RMB0.3 billion, RMB25.6 million, and RMB5.6 million (US$0.8 million) for the years 2020, 2021, and 2022, respectively[379]. - In 2022, approximately 4,397 customers were approved for personal installment loan credit lines with an average credit limit of approximately RMB10,165.0 (US$1,473.8), and the aggregate amount of credit lines approved was RMB61.9 billion (US$9.0 billion)[381]. - The total volume of business installment loans facilitated was approximately RMB122.8 million, RMB76.7 million, and RMB124.5 million (US$18.0 million) for the years ended December 31, 2020, 2021, and 2022, respectively[383]. - Loans provided for MSMEs amounted to approximately RMB52 million, RMB124.0 million, and RMB227.8 million (US$33.0 million) for the years ended December 31, 2020, 2021, and 2022, respectively[384]. Risk Management and Technology - The company has established a strong risk management team with nine independent functions, enhancing its capabilities in fraud detection and prevention[421]. - The loan application and credit approval process can be completed within 10 seconds for the majority of applications, showcasing the company's operational efficiency[423]. - The credit assessment engine evaluates loan applications using over 10,000 data points, applying machine learning models for risk-based pricing decisions[416]. - The company utilizes a proprietary big data database, Data Lake, aggregating data from over 50 sources to enhance credit assessment efficiency and reduce costs[399]. - More than 99% of loan applications are processed and approved automatically through the company's credit assessment system[401]. - Advanced AI technologies are utilized for fraud detection, credit risk pricing, and asset allocation, leading to improved operational efficiencies[428]. Regulatory Environment - The PRC Foreign Investment Law establishes a pre-access national treatment plus negative list management system for foreign investment, effective January 1, 2022, expanding the scope of permitted foreign investment industries[450]. - The Negative List (2021 version) categorizes industries into restricted and prohibited, with specific restrictions on shareholding percentages and joint ventures for restricted industries[450]. - The registered capital requirement for a microfinance company is at least RMB5.0 million for limited liability companies and RMB10.0 million for companies limited by shares[454]. - The CBIRC's Administrative Measures for Consumer Protection became effective on March 1, 2023, requiring banking and insurance institutions to establish consumer protection mechanisms[467]. - The Law on Securities Investment Funds mandates registration or record-filing for institutions engaging in fund sales, with specific requirements for publicly raised securities investment fund distributors[469]. - The company must comply with the Regulations for Administration of Mobile Internet Application Information Services, which require obtaining relevant qualifications for mobile applications[479]. Market Trends and Challenges - The company has shifted its focus towards high-quality products and partnerships with industry leaders, improving loan repayment performance[418]. - The company has maintained a favorable position compared to peers during the COVID-19 pandemic due to its focus on consumption scenarios and agile risk management strategies[420]. - The company experiences seasonal fluctuations in transaction volume, particularly around major holidays in China[443]. - The company faces significant competition for skilled personnel, which is critical for its growth strategy[440].

Financial Position - Pintec Technology Holdings Limited's total assets as of December 31, 2021, amounted to RMB 761,233,000, a decrease from RMB 978,504,000 in 2020[18] - The company's total liabilities were RMB 826,262,000 as of December 31, 2021, compared to RMB 930,454,000 in 2020, indicating a reduction in financial obligations[18] - The cash and cash equivalents for Pintec decreased from RMB 377,160,000 in 2020 to RMB 217,901,000 in 2021, reflecting a significant decline in liquidity[18] - Pintec's total equity deficit increased from RMB 118,937,000 in 2020 to RMB 224,929,000 in 2021, highlighting ongoing financial challenges[18] - Total revenues for the year ended December 31, 2021 were RMB 173,240 thousand, a significant decrease from RMB 378,264 thousand in 2020[26] - The gross profit for the year ended December 31, 2021 was RMB 83,520 thousand, compared to RMB 92,490 thousand in 2020, indicating a decline in profitability[26] - The net loss for the year ended December 31, 2021 was RMB 108,820 thousand, which is an increase from a net loss of RMB 296,140 thousand in 2020[26] Revenue and Profitability - Total revenues for the year ended December 31, 2019, were $1,285,236 million, with a significant contribution from VIEs at $1,280,814 million[19] - The net loss attributable to Pintec's shareholders for the year ended December 31, 2019, was $905,895 million, reflecting a challenging operational environment[19] - Operating expenses totaled $1,243,983 million for the year ended December 31, 2019, indicating a high cost structure relative to revenues[19] - For the year ended December 31, 2020, total revenues increased to $378,264 million, with a notable contribution from WFOEs at $80,857 million[20] - The net loss attributable to Pintec's shareholders for the year ended December 31, 2020, was $293,935 million, showing a reduction in losses compared to the previous year[20] - For the year ended December 31, 2021, total revenues were $173,240 million, with a significant portion coming from VIEs at $148,957 million[20] - The net loss attributable to Pintec's shareholders for the year ended December 31, 2021, was $101,729 million, reflecting ongoing challenges in profitability[20] Regulatory Environment - The company is subject to significant oversight by the Chinese government, which may impact its operations and value of its American Depositary Shares (ADSs)[15] - The company has obtained the necessary licenses and permits from PRC authorities for its operations, but future requirements may arise due to evolving regulations[15] - Regulatory uncertainties in China regarding consumer finance may materially affect the company's business and results of operations[43] - The company is subject to extensive and evolving legal regulations in China, which may materially affect its business and financial condition[44] - The company may face penalties if deemed to operate a financing guarantee business without the necessary approvals, which could significantly impact its operations[52] - The company is not regulated as a financial service provider but may be affected by PRC financial regulations related to wealth management products on its platform[76] - The company may face scrutiny from PRC tax authorities regarding contractual arrangements, potentially leading to additional tax liabilities[199] Operational Challenges - The company has been adversely affected by the COVID-19 pandemic, impacting its business operations and financial condition[43] - Loan volume decreased by 59% in 2021 compared to 2020 due to the impact of the COVID-19 pandemic and market challenges[85] - The COVID-19 pandemic has led to temporary closures and significant operational challenges, impacting the company's business partners, particularly in the online travel agency and telecom industries[84] - The company has ceased facilitating loans through technology enablement platforms since February 2020, reducing exposure to associated risks[72] - The company has experienced significant changes in management, including multiple resignations and appointments, which may disrupt business operations and financial conditions[144] Business Model and Strategy - The company is shifting its business focus towards digital-centric services while reducing risk-sharing services in response to market conditions[85] - The company's business model is unproven and relies on acquiring more business and financial partners to achieve higher transaction volumes[94] - The company aims for rapid growth, which may strain management and operational resources, potentially leading to expenses growing faster than revenues[140] - The company’s partnerships are not exclusive, and contracts typically last one year, which poses risks if partners change policies or do not renew agreements[79] Risks and Liabilities - The company may face significant volatility in its trading price due to evolving PRC financial regulations affecting the consumer finance industry[75] - The company may face increased costs and potential sanctions if it or its financial partners fail to comply with anti-money laundering laws and regulations[97] - The company has limited insurance coverage, which may expose it to significant costs and business disruptions, as it does not maintain property or business interruption insurance[175] - The company may face material and adverse tax consequences if the PRC tax authorities determine that contractual arrangements among its variable interest entities were not entered into on an arm's length basis, potentially leading to increased tax liabilities[200] Cybersecurity and Data Protection - The company has implemented security measures to protect user data, but risks of breaches remain due to various vulnerabilities[121] - The evolving cybersecurity regulations in China present uncertainties that could disrupt operations and adversely affect business results[125] - The company relies on third-party data for credit assessments, which may be inaccurate, potentially leading to mispricing of loans[132] International Expansion - The company is expanding internationally, having established seven joint ventures or subsidiaries outside of China, which may expose it to additional operational risks[177] Internal Controls and Compliance - A material weakness in internal control over financial reporting was identified, which could result in significant misstatements in future financial statements if not addressed[162] - The company has identified material weaknesses and control deficiencies in its internal control over financial reporting, which may lead to inaccuracies in financial statements and compliance issues[163] - If the PCAOB cannot inspect the company's auditors for three consecutive years, trading of the company's ADSs may be prohibited, adversely affecting investment value[167]

Pintec Technology Holdings Limited (NASDAQ:PT) Q4 2020 Earnings Conference Call April 14, 2021 8:00 AM ET Company Participants Joyce Tang - Director of Investor Relations Victor Li - Chief Executive Officer Steven Sim - Chief Financial Officer Conference Call Participants Operator Good day and welcome to the Pintec Full Year 2020 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. ...

Pintec Technology Holdings Limited (NASDAQ:PT) Q2 2020 Results Conference Call September 21, 2020 8:00 AM ET Company Participants Joyce Tang - IR Director Victor Li - CEO Steven Sim - CFO Conference Call Participants Daphne Poon - Citigroup Operator Good morning and good evening everyone. Thank you for standing by and welcome to Pintec Technology Holdings Limited's First Half 2020 Earnings Call. At this time, all participants are in a listen-only mode. After today's presentation, there will be an opportun ...

[PART I](index=6&type=section&id=PART%20I) [Key Information](index=6&type=section&id=Item%203.%20Key%20Information) This section presents selected financial data, highlighting a significant revenue decrease and net loss in 2019, and details extensive risk factors [Selected Financial Data](index=6&type=section&id=A.%20Selected%20Financial%20Data) The company's 2019 financial performance shows a significant decline, with total revenues dropping to **RMB 1,285.2 million** and a net loss of **RMB 906.5 million** Selected Consolidated Financial Data (in thousands of RMB) | Financial Metric | 2017 (Restated) | 2018 (Restated) | 2019 | 2019 (US$) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | 763,014 | 1,603,631 | 1,285,236 | 184,612 | | **Gross Profit** | 196,307 | 518,901 | 515,548 | 74,054 | | **Operating (Loss)/Income** | (53,609) | 11,262 | (728,435) | (104,633) | | **Net (Loss)/Income** | (84,860) | 2,171 | (906,490) | (130,211) | | **Total Assets** | 2,450,799 | 2,368,026 | 1,560,599 | 224,165 | | **Total Liabilities** | 2,512,992 | 1,310,750 | 1,201,879 | 172,639 | | **Total Shareholders' Equity** | (62,195) | 1,057,276 | 358,720 | 51,526 | [Risk Factors](index=8&type=section&id=D.%20Risk%20Factors) The company faces significant risks including regulatory uncertainties, substantial credit exposure, the impact of Jimu Group's insolvency, and identified material weaknesses in internal controls - The insolvency of Jimu Group, announced in February 2020, presents a significant risk as the company determined it was probable that amounts due from Jimu Group (**RMB 866.0 million** as of Dec 31, 2019) were not collectible, which could impair the company's ability to fund operations and continue as a going concern[65](index=65&type=chunk)[68](index=68&type=chunk)[397](index=397&type=chunk) - The company's business has been materially and adversely affected by the COVID-19 outbreak, leading to a dramatic decrease in loan volume in Q1 2020 compared to Q1 2019[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) - Three material weaknesses in internal control over financial reporting were identified as of December 31, 2019: 1) Lack of sufficient U.S. GAAP and SEC reporting expertise. 2) Lack of effective controls over cash advances to Jimu Group. 3) Lack of effective controls over the investment process[103](index=103&type=chunk)[105](index=105&type=chunk)[107](index=107&type=chunk) - The company believes it is likely that it was classified as a **Passive Foreign Investment Company (PFIC)** for the 2019 taxable year, which could result in adverse U.S. federal income tax consequences to U.S. holders of its ADSs or ordinary shares[181](index=181&type=chunk)[184](index=184&type=chunk)[739](index=739&type=chunk) [Information on the Company](index=45&type=section&id=Item%204.%20Information%20on%20the%20Company) Pintec operates as an independent technology platform enabling financial services in China, utilizing a VIE structure, with its relationship with the now-insolvent Jimu Group fundamentally changed [History and Development of the Company](index=45&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) The company, incorporated in 2017 and IPO'd in 2018, expanded in 2019 through acquisitions to obtain a small loan license and enhance credit risk management systems - The company commenced trading on the Nasdaq Global Market under the symbol "PT" on October 24, 2018, raising approximately **US$40.7 million** in net proceeds[211](index=211&type=chunk) - In March 2019, the company acquired Ganzhou Aixin Network Micro Finance Co., Ltd. from Jimu Group for **RMB 230 million** to obtain a small loan business license[214](index=214&type=chunk) - In April 2019, the company acquired Infrarisk Pty Limited, an Australia-based SaaS company that provides systems for managing credit risk origination[215](index=215&type=chunk) [Business Overview](index=46&type=section&id=B.%20Business%20Overview) Pintec's technology platform connects business and financial partners, offering diverse loan, wealth management, and insurance solutions, with a key trend of diversifying funding sources away from Jimu Box Funding Sources by Outstanding Loans (in thousands of RMB) | Funding Source | 2017 | 2018 | 2019 | | :--- | :--- | :--- | :--- | | Online consumer finance platform (Jimu Box) | 4,742,261 | 3,593,302 | 801,676 | | Non-structured direct funding | 338,851 | 1,479,166 | 2,041,729 | | Trusts and other structured finance | 531,842 | 592,642 | 359,981 | | Public asset-backed securities | 256,643 | — | — | | **Total** | **5,887,707** | **5,803,034** | **3,301,897** | Loan Facilitation Metrics (2019) | Loan Type | Loans Facilitated (RMB million) | Outstanding Loans (RMB million) | Avg. Loan Size (RMB) | Weighted Avg. APR | | :--- | :--- | :--- | :--- | :--- | | Point-of-sale Installment | 2,448.4 | 850.0 | 706 | 12.0% | | Personal Installment | 7,784.0 | 2,199.3 | 7,454 | 22.2% | | Business Installment | 781.6 | 252.7 | 21,996 | 18.2% | Delinquency Rates for All Facilitated Loans | Delinquency Period | Dec 31, 2017 | Dec 31, 2018 | Dec 31, 2019 | | :--- | :--- | :--- | :--- | | 16 - 30 days | 1.11% | 1.27% | 1.72% | | 31 - 60 days | 1.02% | 2.35% | 2.98% | | 61 - 90 days | 0.74% | 2.33% | 2.86% | [Organizational Structure](index=76&type=section&id=C.%20Organizational%20Structure) The company operates via a VIE structure in China to comply with regulations, and its relationship with the now-insolvent Jimu Group has significantly diminished, leading to uncollectible receivables - The company utilizes a **VIE structure** to conduct operations in restricted industries in China, such as value-added telecommunications, insurance brokerage, and fund distribution[413](index=413&type=chunk)[414](index=414&type=chunk) - Funding from Jimu Box, previously the largest source, decreased from **62%** of outstanding loans at year-end 2018 to **24%** at year-end 2019. Following Jimu Group's exit from the online lending business in February 2020, this funding source is expected to be minimal going forward[395](index=395&type=chunk) - As of December 31, 2019, the company had **RMB 866.0 million** in amounts due from Jimu Group. Due to Jimu's insolvency, the company determined these amounts were not probable to be collected or recovered[397](index=397&type=chunk) [Operating and Financial Review and Prospects](index=81&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) The company's 2019 financial performance deteriorated significantly, with revenues declining and a substantial net loss primarily due to increased bad debt expenses related to Jimu Group, impacting liquidity [Operating Results](index=81&type=section&id=A.%20Operating%20Results) In 2019, total revenues decreased by **19.9%** to **RMB 1,285.2 million** due to lower loan volumes, leading to a net loss of **RMB 906.5 million** primarily from surging G&A expenses - Total revenue decreased by **19.9%** from **RMB 1,603.6 million** in 2018 to **RMB 1,285.2 million** in 2019, primarily due to a decrease in total loan volume from **RMB 14.7 billion** to **RMB 11.0 billion**[475](index=475&type=chunk) - Gross margin increased from **32.3%** in 2018 to **40.2%** in 2019, as the percentage decline in cost of revenues was greater than the decline in total revenue[484](index=484&type=chunk) - General and administrative expenses increased by **250.0%** in 2019, mainly due to an **RMB 819.3 million** increase in bad debt expenses, a significant portion of which was a provision for credit loss on amounts due from Jimu Group[471](index=471&type=chunk)[486](index=486&type=chunk) - The company reported a net loss of **RMB 906.5 million** in 2019, a stark contrast to the net income of **RMB 2.2 million** in 2018[488](index=488&type=chunk) [Liquidity and Capital Resources](index=102&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company's liquidity significantly weakened in 2019, with cash and cash equivalents decreasing to **RMB 102.8 million**, largely impacted by unrecoverable receivables from the insolvent Jimu Group Summary Consolidated Cash Flows (in thousands of RMB) | Cash Flow Activity | 2017 (Restated) | 2018 (Restated) | 2019 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 164,852 | 231,908 | 175,079 | | Net cash (used in)/provided by investing activities | (1,407,861) | 280,595 | (538,702) | | Net cash provided by/(used in) financing activities | 1,565,921 | (200,085) | 224,372 | | **Net increase/(decrease) in cash** | **322,878** | **334,150** | **(129,137)** | - The company made significant provisions for credit losses related to loans and prepayments involving Jimu Group, which became insolvent. These amounts were deemed unrecoverable and are expected to have a significant impact on future operating cash flow[562](index=562&type=chunk) - As of December 31, 2019, the company had **RMB 102.8 million** in cash and cash equivalents, a sharp decrease from **RMB 457.4 million** at the end of 2018[558](index=558&type=chunk) [Directors, Senior Management and Employees](index=107&type=section&id=Item%206.%20Directors,%20Senior%20Management%20and%20Employees) This section details the company's leadership, including the Acting CEO, and highlights its dual-class share structure which concentrates **75.6%** of voting power with the three core founders - CEO Mr. Wei Wei has been on a medical leave of absence since September 2019. Mr. Jun Dong was elected Chairman of the Board and named Acting Chief Executive Officer[583](index=583&type=chunk)[584](index=584&type=chunk) - The company has a dual-class share structure. As of February 25, 2020, the three core founders (Wei Wei, Jun Dong, Xiaomei Peng) beneficially owned all Class B ordinary shares, representing approximately **18.3%** of total shares but **75.6%** of the aggregate voting power[178](index=178&type=chunk)[626](index=626&type=chunk) - As of December 31, 2019, the company had **256** employees, with **54%** being technology-focused personnel (Research & development, Risk management, Products development & operations)[289](index=289&type=chunk)[620](index=620&type=chunk)[621](index=621&type=chunk) [Major Shareholders and Related Party Transactions](index=117&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section outlines major shareholders and extensive related party transactions, primarily with Jimu Group, including significant cash advances and a **RMB 856.0 million** provision due to its insolvency - The company made undocumented cash advances to Jimu Group totaling **RMB 461.7 million** as of Dec 31, 2018, and an additional **RMB 697.8 million** in 2019. These were later formalized into loan agreements[645](index=645&type=chunk) - A provision of **RMB 856.0 million** was made for amounts due from Jimu Group as of December 31, 2019, as collection was deemed improbable following Jimu Group's insolvency announcement[647](index=647&type=chunk)[1101](index=1101&type=chunk) - In March 2019, the company acquired **100%** of Ganzhou Aixin Micro Finance from Jimu Group for **RMB 230 million**, with the purchase price netted against amounts due from Jimu Group[649](index=649&type=chunk) [Financial Information](index=122&type=section&id=Item%208.%20Financial%20Information) This section confirms the inclusion of consolidated financial statements, notes no material legal proceedings, and states no plans for future dividend payments - The company is not currently a party to any material legal or administrative proceedings[660](index=660&type=chunk) - The company has no plan to declare or pay any dividends in the near future, intending to retain earnings to operate and expand the business[661](index=661&type=chunk) [Additional Information](index=123&type=section&id=Item%2010.%20Additional%20Information) This section details the company's corporate governance, including its dual-class share structure, and highlights the high likelihood of PFIC classification for U.S. tax purposes - The company's dual-class share structure grants holders of Class B ordinary shares **fifteen votes per share**, while Class A ordinary shares receive **one vote per share**[675](index=675&type=chunk)[678](index=678&type=chunk) - The company is likely classified as a **Passive Foreign Investment Company (PFIC)** for its taxable year ending December 31, 2019, which could result in adverse U.S. federal income tax consequences for U.S. Holders[739](index=739&type=chunk) [PART II](index=139&type=section&id=PART%20II) [Controls and Procedures](index=140&type=section&id=Item%2015.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of December 31, 2019, due to three identified material weaknesses in internal control over financial reporting - Management concluded that as of December 31, 2019, the company's disclosure controls and procedures were **ineffective**[775](index=775&type=chunk) - A material weakness was identified related to the lack of sufficient financial reporting and accounting personnel with appropriate knowledge of U.S. GAAP and SEC reporting requirements[780](index=780&type=chunk) - A second material weakness was identified related to ineffective management and controls over cash advances to Jimu Group, including lack of a formal approval process and insufficient assessment of recoverability[782](index=782&type=chunk) - A third material weakness was identified related to a lack of effective controls over the investment process, including insufficient due diligence and creditworthiness assessment of investment targets[784](index=784&type=chunk) [Change in Registrant's Certifying Accountant](index=143&type=section&id=Item%2016F.%20Change%20in%20Registrant%27s%20Certifying%20Accountant) PricewaterhouseCoopers Zhong Tian LLP was dismissed as the independent auditor on August 20, 2019, and Marcum Bernstein & Pinchuk LLP was engaged, following identified material weaknesses during PwC's tenure - The company dismissed PricewaterhouseCoopers Zhong Tian LLP (PwC) on August 20, 2019, and engaged Marcum Bernstein & Pinchuk LLP as its new independent registered public accounting firm on September 4, 2019[796](index=796&type=chunk) - PwC's audit reports for fiscal years 2017 and 2018 did not contain adverse opinions or disclaimers. However, three material weaknesses were reported in the 2018 Form 20-F[797](index=797&type=chunk) [PART III](index=145&type=section&id=PART%20III) [Financial Statements](index=146&type=section&id=Item%2018.%20Financial%20Statements) This section contains the audited consolidated financial statements for 2017-2019, highlighting restatements for prior years, the adoption of ASC 606, and significant related party transactions - The financial statements for the years ended December 31, 2017 and 2018 have been **restated** to correct material misstatements, primarily related to the gross vs. net recognition of certain technical service fees[820](index=820&type=chunk)[1110](index=1110&type=chunk)[1111](index=1111&type=chunk) - The company adopted the new revenue recognition standard, **ASC 606**, effective January 1, 2019, using the modified retrospective method. This adoption increased reported revenue in 2019 by **RMB 53.1 million**[821](index=821&type=chunk)[534](index=534&type=chunk) - Subsequent to year-end, the **COVID-19 pandemic** has materially and adversely affected business operations, and the full financial impact cannot be reasonably estimated at this time[1127](index=1127&type=chunk)[1128](index=1128&type=chunk)[1130](index=1130&type=chunk)

Financial Data and Key Metrics Changes - Total revenues for 2019 decreased by 19.9% year-over-year to RMB 1.285 billion [25] - Revenues from technical service fees decreased by 17% to RMB 1.077 billion from RMB 1.297 billion in 2018 [25] - Net loss for 2019 was RMB 906.5 million compared to a net income of RMB 2.2 million in 2018 [31] - Adjusted net loss for 2019 was RMB 888.6 million compared to adjusted net income of RMB 133.4 million in 2018 [32] - Gross margin for 2019 was 40.1%, compared to 32.4% in 2018 [29] Business Line Data and Key Metrics Changes - Loan facilitation business volume decreased by 25% to RMB 11 billion in 2019 [6] - Revenues from installment service fees decreased to RMB 187.4 million from RMB 291.1 million in 2018 [27] - Revenues from wealth management service fees increased by 36% to RMB 20.1 million from RMB 14.8 million in 2018 [27] - Service fee charged by Jimu Group decreased to RMB 200.2 million from RMB 529.6 million in 2018 [28] Market Data and Key Metrics Changes - 71% of total loan facilitation in 2019 was generated through point-of-sale loans, with point-of-sale personal loans accounting for about 50% of total loan facilitation compared to 20% in 2018 [7] - Over 95% of total loan volume was funded by non-P2P financial partners in Q1 2019, with 78% for the full year 2019 compared to 51% in 2018 [8] Company Strategy and Development Direction - The company is focused on enhancing long-term competitive advantages and sustainability through new growth strategies [5] - Plans to wind down loan facilitation business significantly in 2020 due to increased risks associated with the economic environment [22] - Emphasis on technology-enabled strategies and partnerships with financial institutions to enhance service offerings [12][22] Management's Comments on Operating Environment and Future Outlook - Management anticipates high systemic risks and greater macroeconomic uncertainty in 2020 [11] - The decision to eliminate reliance on Jimu Group is expected to allow for renewed growth cycles focusing on risk-free technology services [34] - Management believes prioritizing technology services will provide better stability and quality earnings in the long run [35] Other Important Information - The company appointed Dr. Victor Li as Executive Vice President to oversee daily operations and enhance technology service capabilities [19] - The company has suspended its share buyback program due to the impact of COVID-19 [35] Q&A Session Summary - There were no questions during the Q&A session [37]

Pintec Technology Holdings Limited (NASDAQ:PT) Q2 2019 Results Earnings Conference Call September 23, 2019 7:30 AM ET Company Participants Joyce Tang - IR Director Allen Dong - Chairman and acting CEO Steven Sim - CFO Conference Call Participants Daphne Poon - Citibank Operator Good morning and good evening, everyone. Thank you for standing by, and welcome to Pintec Technology Holdings First Half of 2019 Earnings Call. [Operator Instructions] Now, I'll turn the call over to your speaker host today, Ms. Joyc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018. OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR o SHELL COMPANY REPORT PURSUANT TO S ...