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PINTEC TECHNOLOGY HOLDINGS LIMITED

(PT)
Real-time Estimate Quote. Real-time Estimate Cboe BZX - 12/06 10:39:14 am
0.666 USD   +1.17%
12/03Asian ADRs Decline in Friday Trading
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10/27PINTEC ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FIRST HALF OF 2021 - Form 6-K
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PINTEC ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FIRST HALF OF 2021 - Form 6-K

10/27/2021 | 06:28am EST

PINTEC ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FIRST HALF OF 2021

BEIJING, Oct. 26, 2021 (PR Newswire) - Pintec Technology Holdings Limited (Nasdaq: PT) ("PINTEC" or the "Company"), a leading independent technology platform enabling financial services in China, today announced its unaudited financial results for the six months ended June 30, 2021.

First Half 2021 Financial Highlights

Total revenues were RMB91.6 million (US$14.2 million) for the first half of 2021 compared to total revenues of RMB251.6 million for the same period of 2020.

Gross profit decreased by 1.6% to RMB42.0 million (US$6.5 million) for the first half of 2021 from RMB42.7 million for the same period of 2020. Gross margin was 45.8% for the first half of 2021 compared to 17.0% for the same period of 2020.

Operating loss decreased by 66.0% to RMB34.0 million (US$5.3 million) for the first half of 2021 from RMB100.0 million for the same period of 2020.

Net loss decreased by 60.7% to RMB41.0 million (US$6.3 million) for the first half of 2021 from RMB104.2 million for the same period of 2020.

1

Adjusted net loss1 decreased by 60.0% to RMB38.8 million (US$6.0 million) for the first half of 2021 from RMB96.9 million for the same period of 2020.

First Half 2021 Operating Highlights

Total loans facilitated decreased by 66.7% to RMB 0.4 billion (US$77.4 million) for the first half of 2021 from RMB 1.2 billion for the same period of 2020.

Loan outstanding balance decreased by 50.0% to RMB 0.3 billion (US$46.5 million) as of June 30, 2021 from RMB 0.6 billion as of December 31, 2020.

The following table provides delinquency rates by balance for all loans facilitated by the Company as of the dates indicated:

Delinquent for
16 - 30
days
31 - 60
days
61 - 90
days

December 31, 2017

1.11 % 1.02 % 0.74 %

December 31, 2018

1.27 % 2.35 % 2.33 %

December 31, 2019

1.72 % 2.98 % 2.86 %

December 31, 2020

0.77 % 0.97 % 0.95 %

June 30, 2021

0.68 % 0.85 % 0.75 %
1

Adjusted net income/(loss) is a non-GAAP financial measure, representing net income/(loss) before share-based compensation expenses. For more information on non-GAAP financial measures, please see the section of "Use of Non-GAAP Financial Measures Statement" and the tables captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this release.

2

Mr. Victor Li, Chief Executive Officer of PINTEC, commented, "As we navigate through the short-term uncertainties into 2021, I am encouraged by our team's focus on executing our strategic business transformation initiatives and early signs of recovery in market demand. We continued to adjust insurance models, expand the strengths of our brands, deepen our partner channels, vigilantly manage risk profile while enhancing our asset quality. One of the key milestones I am excited to share is the recent new offering of the small and medium enterprise ("SME") technical services. Specifically, we plan to utilize our proven "SaaS + Fintech" model as a total solution in order to accelerate the digitization of SMEs, encompassing technology-based credit services and solutions to the manufacturing process and operations of these SMEs. As usual, we continue to deliver exceptional digitization services, and best-in-class solutions with innovative technology, thus to solidify our partnerships, satisfy our clients, and improve our overall delinquency rates.

In addition, for the first half of 2021, we significantly narrowed our net loss despite the expected period-over-period revenue contraction, primarily by significantly enhancing our gross margin by almost 2,900 basis points from optimized product portfolio, as well as disciplined cost management. Every line item of our expenses has declined, resulting in a total operating expense reduction of 46.8% compared to the same period in 2020. We will continue to be prudent in reviewing our cost measures, financial leverage and liquidity position to ensure the smooth execution of our growth plan for the future. We are delighted of the progress so far in 2021, and we are committed in achieving the goals we have previously set for our business transformation."

3

First Half 2021 Financial Results

Total Revenues

Total revenues decreased by 63.6% to RMB91.6 million (US$14.2 million) for the first half of 2021 from RMB251.6 million for the same period of 2020.This decrease was mainly due to (i) the impact of Covid-19 which resulted in an industry downturn, and (ii) the Company's overall business transformation efforts.

Revenues from technical service fees decreased by 71.4% to RMB60.8 million (US$9.4 million) for the first half of 2021 from RMB212.1 million for the same period of 2020. This decrease was mainly due to the reduction of risk-sharing loan facilitation business, which in turn resulted in the decrease of off-balance sheet loans facilitated in the first half of 2021.

Revenues from installment service fees decreased by 75.2% to RMB8.6 million (US$1.3 million) for the first half of 2021 from RMB34.8 million for the same period of 2020. This decrease was primarily due to the reduction in the Company's on-book installment loan volume during the first half of 2021.

Revenues from wealth management service fees increased by 378.0% to RMB22.2 million (US$3.4 million) for the first half of 2021 from RMB4.7 million for the same period of 2020. This increase was mainly attributable to the successful adjustment of the Company's insurance brokerage business model, thus expanding revenue generation.

4

Cost of Revenues

Cost of revenues decreased by 76.2% to RMB49.6 million (US$7.7 million) for the first half of 2021 from RMB208.9 million for the same period of 2020. This decrease was mainly attributable to: (1) a decrease in funding cost from RMB14.8 million for the first half of 2020 to RMB2.0 million (US$0.3 million) for the same period of 2021, primarily due to maturity of the funding debts resulting in significant interest expense reduction;(2) a decrease from a provision for credit losses of RMB35.3 million for the first half of 2020 to a reversal of provision for credit losses of RMB7.5 million (US$1.2 million) for the same period of 2021, primarily due to the credit loss provision reversal from payment collection which was better than expected in the first half of 2021; (3) a decrease in servicing origination cost from RMB58.9 million for the first half of 2020 to RMB54.2 million (US$8.4 million) for the same period of 2021, primarily attributable to a reduction in collection expenses and user acquisition costs, partially offset by an increase in insurance brokerage operating expenses; (4) a decrease in cost on guarantee liability from RMB81.1 million for the first half of 2020 to a reversal of RMB0.6 million (US$0.1 million) for the same period of 2021, primarily because the Company's guaranteed liabilities gradually expired, and the cost associated with guaranteed liability recovered in the first half of 2021 were better than the actual cash outlays;(5) a decrease in price split cost to Jimu Holdings Limited and its subsidiaries and variable interest entities ("Jimu Group") from RMB18.9 million for the first half of 2020 to RMB1.5 million (US$0.2 million ) for the same period of 2021, primarily attributable to the termination of the risk-sharing model with Jimu Group. All of these efforts resulted in a significant improvement of the delinquency rates as compared to the first half of 2020.

5

Gross Profit

Gross profit decreased slightly to RMB42.0 million (US$6.5 million) for the first half of 2021 from RMB42.7 million for the same period of 2020. Gross margin was 45.8% in the first half of 2021 compared to 17.0% in the same period of 2020.

Operating Expenses

Total operating expenses decreased by 46.8% to RMB76.0 million (US$11.8 million) for the first half of 2021 from RMB142.7 million for the same period of 2020. The Company has been continuously optimizing and refining its organizational structure, marketing strategies and product matrix since the beginning of 2020.

Sales and marketing expenses in the first half of 2021 decreased by 20.1% to RMB19.9 million (US$3.1 million) from RMB24.9 million in the same period of 2020. This decrease was primarily driven by decreased promotion expenses.

General and administrative expenses in the first half of 2021 decreased by 59.2% to RMB37.9 million (US$5.9 million) from RMB93.0 million in the same period of 2020. This decrease was primarily driven by strict overall cost control for the reduction of various items including, among other things, bad debt provision, and professional services fees.

Research and development expenses in the first half of 2021 decreased by 34.8% to RMB16.2 million (US$2.5 million) from RMB24.8 million in the same period of 2020, primarily driven by personnel structure optimization as part of the business transformation.

Intangible assets impairment in the first half of 2021 increased to RMB2.0 million (US$0.3 million) from nil in the same period of 2020, primarily due to the changing market environment and transformation of original business.

6

Operating Loss

Operating loss decreased by 66.0% to RMB 34.0 million (US$5.3 million) for the first half of 2021 from RMB100.0 million for the same period of 2020.

7

Net Loss

Net loss decreased by 60.7% to RMB41.0 million (US$6.3 million) for the first half of 2021 from RMB104.2 million for the same period of 2020.

Net loss attributable to ordinary shareholders decreased by 62.8% to RMB38.8million (US$6.0 million) for the first half of 2021 from RMB104.3million for the same period of 2020.

Adjusted net loss decreased by 60.0% to RMB38.8 million (US$6.0 million) for the first half of 2021 from RMB96.9 million for the same period of 2020.

Net Loss Per Share

Basic and diluted net loss per ordinary share in the first half of 2021 were both RMB0.13(US$0.02). Basic and diluted net loss per American Depositary Share ("ADS") in the first half of 2021 were both RMB0.91 (US$0.14). Each ADS represents seven of the Company's Class A ordinary shares.

Adjusted basic and diluted net loss per ordinary share in the first half of 2021 were both RMB0.12 (US$0.02). Adjusted basic and diluted net loss per ADS in the first half of 2021 were both RMB0.84 (US$0.14).

Balance Sheet

The Company had combined cash and cash equivalents, short-term and long-term restricted cash of RMB368.9 million (US$57.1 million) as of June 30, 2021, compared to RMB522.3 million as of December 31, 2020.

8

The Company's total net financing receivables, including short-term and long-term receivables, increased by 9.6% to RMB80.7 million (US$12.5 million) as of June 30, 2021, compared to RMB73.6 million as of December 31, 2020, primarily due to the increase of the personal installment loans and the small and medium enterprise loans provided by our Ganzhou Aixin Network Micro Finance Co., Ltd.

Use of Non-GAAP Financial Measures

In evaluating its business, the Company considers and uses adjusted net income/loss as a supplemental measure to review and assess its operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines adjusted net income/loss as net income/loss excluding share-based compensation expenses.

9

The Company believes that this non-GAAP financial measure can help management evaluate the Company's operating performance and formulate business plans. Adjusted net income/loss enables management to assess operating results without considering the impact of share-based compensation expenses. The Company also believes that this non-GAAP financial measure provides useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by management in their financial and operational decision-making.

This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using adjusted net income/loss is that it does not reflect all items of income and expenses that affect the Company's operations. The company will continue to incur share-based compensation expenses in its business, which are reflected in the presentation of its adjusted net income/loss. Further, this non-GAAP financial measure may differ from non-GAAP financial information used by other companies, including peer companies, and therefore its comparability may be limited.

The Company compensates for these limitations by reconciling this non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure, net income/loss, which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

10

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.4566 to US$1.00, the noon buying rate in effect on June 30, 2021, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

11

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Among other things, the quotations from management in this announcement, as well as PINTEC's strategic and operational plans, contain forward-looking statements. PINTEC may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control. Forward-looking statements involve inherent risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, the Company's limited operating history, regulatory uncertainties relating to the markets and industries where the Company operates, and the need to further diversify its financial partners, the Company's reliance on a limited number of business partners, the impact of current or future PRC laws or regulations on wealth management financial products, and the Company's ability to meet the standards necessary to maintain the listing of its ADSs on the Nasdaq Global Market, including its ability to cure any non-compliance with Nasdaq's continued listing criteria.Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

12

About PINTEC

PINTEC is a leading independent technology platform enabling financial services in China. By connecting business and financial partners on its open platform, PINTEC enables them to provide financial services to end users efficiently and effectively. The Company offers its partners a full suite of customized solutions, ranging from digital retail lending, digital business lending, robotic process automation, to wealth management and insurance products. Leveraging its scalable and reliable technology infrastructure, PINTEC serves a wide range of industry verticals covering online travel, e-commerce, telecommunications, online education, SaaS platforms, financial technology, internet search, and online classifieds and listings, as well as various types of financial partners including banks, brokers, insurance companies, investment funds and trusts, consumer finance companies and other similar institutions. For more information, please visit ir.pintec.com.

For further information, please contact:

Pintec Technology Holdings Ltd.

Phone: +86 (10) 8564-3600

E-mail:ir@pintec.com

13

Pintec Technology Holdings Ltd.

Unaudited Condensed Consolidated Balance Sheets

(In thousands, except for share and per share data)

December 31,
2020
June 30,
2021
Unaudited
RMB RMB USD

ASSETS

Current assets:

Cash and cash equivalents

377,160 362,235 56,103

Restricted cash

137,220 1,218 189

Short-term financing receivables, net

70,783 80,650 12,492

Short-term financial guarantee assets, net

18,569 15,236 2,360

Accounts receivable, net

50,979 54,762 8,482

Prepayments and other current assets, net

66,160 57,708 8,939

Amounts due from related parties, net

30 1,548 240

Total current assets

720,901 573,357 88,805

Non-current assets:

Non-current restricted cash

7,964 5,417 839

Long-term financing receivables, net

2,835 - -

Long-term financial guarantee assets, net

698 204 32

Long-term investments

121,179 121,106 18,757

Deferred tax assets, net

1,053 3,329 516

Property, equipment and software, net

107,208 103,642 16,052

Intangible assets, net

16,666 9,882 1,531

Total non-current assets

257,603 243,580 37,727

TOTAL ASSETS

978,504 816,937 126,532

LIABILITIES

Current liabilities:

Short-term borrowings

130,000 - -

Short-term funding debts

2,841 1,297 201

Accounts payable

10,360 23,295 3,608

Amounts due to related parties

271,419 283,766 43,950

Tax payable

26,971 25,786 3,994

Financial guarantee liabilities

20,260 16,768 2,597

Accrued expenses and other liabilities

59,754 45,439 7,041

Total current liabilities

521,605 396,351 61,391

Non-current liabilities:

Convertible loan

400,000 400,000 61,952

Other non-current liabilities

8,849 16,461 2,550

Total non-current liabilities

408,849 416,461 64,502

TOTAL LIABILITIES

930,454 812,812 125,893

SHAREHOLDERS' EQUITY

Class A Ordinary Shares

232 238 37

Class B Ordinary Shares

42 42 6

Additional paid-in capital

1,985,792 1,987,532 307,830

Statutory reserves

30,763 30,865 4,780

Accumulated other comprehensive income

19,913 15,199 2,354

Accumulated deficit

(2,155,679 ) (2,194,547 ) (339,892 )

TOTAL SHAREHOLDERS' EQUITY

(118,937 ) (160,671 ) (24,885 )

Non-controlling interests

166,987 164,796 25,524

TOTAL EQUITY

48,050 4,125 639

TOTAL LIABILITIES AND EQUITY

978,504 816,937 126,532

14

Pintec Technology Holdings Ltd.

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss

For the Six Months Ended

(In thousands, except for share and per share data)

June 30,
2020
June 30,
2021
June 30,
2021
RMB RMB USD

Revenues:

Technical service fees

212,107 60,757 9,410

Installment service fees

34,831 8,622 1,335

Wealth management service fees and others

4,650 22,229 3,443

Total revenues

251,588 91,608 14,188

Cost of revenues:

Funding cost

(14,792 ) (1,998 ) (309 )

(Provision for)/reversal of credit losses

(35,310 ) 7,490 1,160

Origination and servicing cost

(58,861 ) (54,228 ) (8,400 )

(Cost on)/reversal of guarantee

(81,085 ) 624 97

Service cost charged by the related party

(18,889 ) (1,517 ) (235 )

Cost of revenues

(208,937 ) (49,629 ) (7,687 )

Gross profit

42,651 41,979 6,501

Operating expenses:

Sales and marketing expenses

(24,866 ) (19,868 ) (3,077 )

General and administrative expenses

(92,983 ) (37,920 ) (5,873 )

Research and development expenses

(24,824 ) (16,193 ) (2,508 )

Intangible assets impairment

- (1,984 ) (307 )

Total operating expenses

(142,673 ) (75,965 ) (11,765 )

Operating loss

(100,022 ) (33,986 ) (5,264 )

Share of income from equity method investments

1,540 - -

Other expenses, net

(6,861 ) (8,640 ) (1,338 )

loss before income tax expense

(105,343 ) (42,626 ) (6,602 )

Income tax benefit

1,147 1,669 258

Net loss

(104,196 ) (40,957 ) (6,344 )

Net income/(loss) attributable to Non-controlling interest

66 (2,191 ) (339 )

Net loss attributable to Pintec Technology Holdings Limited shareholders

(104,262 ) (38,766 ) (6,005 )

Other comprehensive income:

Fair value change in available for sale investment

- (494 ) (77 )

Foreign currency translation adjustments, net of nil tax

6,936 (4,220 ) (654 )

Total other comprehensive income/(loss)

6,936 (4,714 ) (731 )

Total comprehensive loss

(97,260 ) (45,671 ) (7,075 )

Total comprehensive income/(loss) attributable to Non-controlling interest

66 (2,191 ) (339 )

Total comprehensive loss attributable to Pintec Technology Holdings Limited shareholders

(97,326 ) (43,480 ) (6,736 )

Net loss per ordinary share

Basic and diluted

(0.35 ) (0.13 ) (0.02 )

Weighted average ordinary shares outstanding

Basic and diluted

296,393,017 299,441,438 299,441,438

15

Pintec Technology Holdings Ltd.

Unaudited Reconciliations of GAAP and Non-GAAP Results

For the Six Months Ended

(In thousands, except for share and per share data)

June 30,
2020
June 30,
2021
June 30,
2021
RMB RMB USD

Net loss

(104,196 ) (40,957 ) (6,344 )

Add: Share-based compensation expenses

7,335 2,203 341

Adjusted net (income)/loss

(96,861 ) (38,754 ) (6,003 )

Net loss attributable to non-controlling interest

66 (2,191 ) (339 )

Adjusted net loss attributable to Pintec Technology Holdings Limited shareholders

(96,927 ) (36,563 ) (5,664 )

Adjusted net loss per ordinary share

Basic and diluted

(0.33 ) (0.12 ) (0.02 )

Weighted average number of ordinary shares outstanding

Basic and diluted

296,393,017 299,441,438 299,441,438

16

Disclaimer

Pintec Technology Holdings Ltd. published this content on 27 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2021 10:27:02 UTC.


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Financials
Sales 2020 378 M 59,3 M 59,3 M
Net income 2020 -294 M -46,1 M -46,1 M
Net Debt 2020 156 M 24,4 M 24,4 M
P/E ratio 2020 -0,14x
Yield 2020 -
Capitalization 182 M 28,5 M 28,5 M
EV / Sales 2019 0,94x
EV / Sales 2020 1,14x
Nbr of Employees 157
Free-Float 70,5%
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Jun Dong Chairman
Ran Ren Chief Scientist
Jimin Zhuo Independent Director
Yong Chen Independent Director
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