Financial Performance - Total revenues for 2020 were RMB 378,264 thousand (approximately US$ 57,971), a decrease from RMB 1,285,236 thousand in 2019[15] - Technical service fees in 2020 amounted to RMB 330,665 thousand, down from RMB 1,077,760 thousand in 2019, representing a decline of approximately 69.4%[15] - The company reported a net loss of RMB 296,140 thousand (approximately US$ 45,386) for 2020, compared to a net income of RMB 2,171 thousand in 2018[16] - Total operating expenses for 2020 were RMB 299,329 thousand (approximately US$ 45,874), a significant increase from RMB 1,243,983 thousand in 2019[16] - The gross profit for 2020 was RMB 92,490 thousand, a decrease from RMB 515,548 thousand in 2019, indicating a decline of approximately 82.1%[15] Assets and Liabilities - As of December 31, 2020, total assets were RMB 978,504 thousand (approximately US$ 149,963), down from RMB 1,560,599 thousand in 2019[18] - The company had total liabilities of RMB 930,454 thousand (approximately US$ 142,598) as of December 31, 2020, compared to RMB 1,201,879 thousand in 2019[18] - As of December 31, 2020, the company reported short-term financing receivables of RMB70.8 million (US$10.8 million) and long-term financing receivables of RMB2.8 million (US$0.4 million) on its balance sheet[35] Regulatory Environment - Regulatory uncertainties relating to online consumer finance in China could harm the company's business and financial results[23] - Regulatory uncertainties in China may require the company to modify its current arrangements with financial partners to comply with existing or future laws[42] - The evolving regulatory environment in China poses challenges for the company in navigating compliance and business planning[31] - The annual interest and fees charged to customers in connection with loans facilitated by the company have been capped at 24% since September 1, 2019, down from a previous cap of 36%[44] - The Private Lending Judicial Interpretations (2020 version) set a cap on total annual percentage rates at 15.4%, based on the LPR of 3.85% published on August 20, 2020[45] Credit and Funding Risks - The company faced credit risks in most funding situations, which may adversely affect its financial condition and results of operations[23] - The company had a provision for credit losses related to financing receivables of RMB45.1 million (US$6.9 million) for the year ended December 31, 2020[35] - The company bears credit risk for a higher proportion of its funding in 2019 compared to its initial public offering, and has gradually reduced its technical services using a risk-sharing model since 2020[33] - The company’s ability to collect fees may be adversely affected by limitations on interest and fees that can be charged to borrowers, as outlined in the Private Lending Judicial Interpretations[43] Business Model and Strategy - The company has a limited operating history, with its lending solutions platform Dumiao launched in June 2015, and its wealth management platforms Hongdian and Polaris launched in September 2015 and June 2016, respectively[28] - The company is shifting its business focus towards digital-centric services while substantially reducing risk-sharing services[61] - The company generated 49.9% of its total revenues through cooperation with its top five business partners in 2020, indicating a reliance on a limited number of partners[55] Operational Challenges - The company faces challenges in achieving market acceptance for its technology-based services and solutions, which are critical for maintaining competitiveness[56] - Rapid growth may strain management and operational resources, leading to increased expenses that could outpace revenue growth[100] - The company relies on senior management for operations, and any disruption in their roles could severely impact business continuity[101] Compliance and Internal Controls - The company identified a material weakness in internal control over financial reporting as of December 31, 2020, due to insufficient personnel knowledgeable in U.S. GAAP and SEC reporting requirements[115] - Measures have been taken to address control deficiencies, but the company cannot guarantee that these measures will fully remediate the issues, which could lead to inaccuracies in financial statements[116] - The company faces risks of material misstatements in financial statements and potential loss of investor confidence if internal controls are not effective[117] International Expansion - The company is expanding internationally through joint ventures in Southeast Asia, including PIVOT Fintech Pte. Ltd. and Avatec.ai (S) Pte. Ltd.[124] - International expansion may expose the company to risks such as reliance on local partners and compliance with additional regulations[125] Shareholder Rights and Corporate Governance - Class B ordinary shares, held by core founders, constitute approximately 16.8% of total issued share capital but account for 75.2% of voting power due to the dual-class share structure[187] - The company does not expect to pay any cash dividends in the foreseeable future, focusing instead on funding business development and potential mergers and acquisitions[188] - The board of directors has complete discretion over dividend distribution, with no guarantee of future dividends based on operational results and cash flow[189] Economic and Market Risks - Changes in China's economic, political, or social conditions could materially affect the company's business and financial results[144] - A severe or prolonged downturn in the Chinese or global economy could materially and adversely affect the company's business and financial condition[153]

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 ...