PINTEC ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FIRST HALF OF 2023

Core Viewpoint - Pintec Technology Holdings Limited reported a significant decrease in revenues and net loss for the first half of 2023, while also implementing cost-cutting measures and focusing on its core strategy to navigate a challenging macroeconomic environment [1][2][22]. Financial Highlights - Total revenues decreased by 11.89% to RMB35.09 million (US$4.86 million) for the first half of 2023 compared to RMB39.82 million for the same period of 2022 [5]. - Gross profit decreased by 79.48$0.58 million) with a gross margin of 11.99% for the first half of 2023, down from 51.50% in the same period of 2022 [8]. - Net loss decreased by 62.54% to RMB46.30 million (US$6.41 million) for the first half of 2023, compared to a net loss of RMB123.60 million for the same period of 2022 [14]. Operating Highlights - Total loans facilitated decreased by 58.98$6.55 million) for the first half of 2023 from RMB115.30 million for the same period of 2022 [3]. - Loan outstanding balance decreased by 35.08% to RMB61.71 million (US$8.54 million) as of June 30, 2023, from RMB95.06 million as of December 31, 2022 [3]. Revenue Breakdown - Revenues from technical service fees decreased by 17.90$2.75 million) due to the cessation of the risk-sharing loan facilitation business [6]. - Revenues from installment service fees decreased by 16.55% to RMB7.53 million (US$1.04 million) primarily due to a decrease in the volume of SME loans [6]. - Revenues from wealth management service fees increased by 16.32$1.07 million) due to increased revenue from the insurance brokerage service business [6]. Cost of Revenues - Cost of revenues increased by 59.90% to RMB30.88 million (US$4.27 million) for the first half of 2023, primarily due to increased funding costs and origination and servicing costs [7]. Operating Expenses - Total operating expenses decreased by 62.96$2.26 million) for the first half of 2023, driven by optimization of organizational structure and marketing strategies [9]. - Sales and marketing expenses decreased by 38.72% to RMB8.51 million (US$1.18 million) [10]. - General and administrative expenses decreased by 74.15$0.70 million) due to strict cost control measures [10]. Other Financial Metrics - Basic and diluted net loss per ordinary share for the first half of 2023 were both RMB0.10 (US$0.01) [15]. - The company reported a negative working capital of RMB398.90 million (US$55.20 million) as of June 30, 2023 [22]. Strategic Focus - The company is committed to cautious and sustainable growth, focusing on technology innovation, risk management, and expanding its business despite market uncertainties [4].