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PR Newswire

Tencent Cloud powers up Global Tourism Economy Forum’s first-ever hybrid edition

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Hybrid event helps amplify the conversation on tourism economy beyond geographical boundaries, empowering businesses to go global more effectively through comprehensive digitized conferencing and business matching solutions

HONG KONG and MACAO, Dec. 3, 2020 — Tencent Cloud, the cloud business of Tencent, today announced its support of the Global Tourism Economy Forum · Macao 2020 (GTEF or the Forum), which will be held in a hybrid (online & offline) format for the first time ever under the "New Normal", to break through geographical and time zone barriers for global audience. Hosted by the Secretariat for Economy and Finance of the Macao SAR Government, the 9th edition of GTEF will take place on December 9 under the theme of "Solidarity and Innovation: Reshaping Tourism in the New Global Economy". The forum powered by Tencent Cloud will be presented in 3 main sessions starting with a GTEF Welcome Session from 12:15 to 14:30 (GMT+8), followed by the Main Program at MGM Macau to be live broadcast at GTEF official website from 14:30 to 19:15 (GMT+8). The entire program will be replayed from 12:15 to 19:15 (GMT+1) for global audience.

Norman Tam, General Manager, International Business Group of Tencent, said, "Going online has become more essential in sectors such as the MICE and tourism industries as the digital trend pushes further upward under the new normal. We are glad to extend our collaboration further with GTEF this year, providing broadcasting and online business matching solutions to help businesses in the travel and tourism sector to go global and be more connected. We look forward to enabling more organizations in the tourism sector and other industries to capture opportunities through Tencent Cloud’s advanced technologies and innovation in the future."

Pansy Ho, Vice Chairman and Secretary-General of GTEF, said, "Due to the pandemic, this year’s planning efforts for GTEF have faced many challenges. But as an international tourism city, a World Centre of Leisure and Tourism, as well as a core city of the Greater Bay Area, Macao kept its promise in holding the GTEF annually. Such determination reflects GTEF’s commitment to maintain its responsibility towards global citizens, to promote Macao, its motherland, and the world’s sustainable development of the tourism economy. GTEF will continue on in full-force in the spirit of solidarity and innovation, using technology to hold a hybrid online and offline format to breakthrough geographical and time zone barriers, allowing attendees from all corners of the world to attend the Forum. Together, we join hands to explore innovative solutions, embracing the ‘New Normal’ of the tourism economy."

Moderated by 4 celebrity hosts, Martina Fuchs, Carol Yu, Liu Xin, and Anita Mendiratta, the forum brings together more than 40 Chinese and international government, industry, and academic leaders to discuss the development of world tourism in the face of the pandemic and explore important insights and innovative technology on tourism under the "New Normal". This year’s event marks the second collaboration between GTEF and Tencent Cloud since 2019. GTEF 2020 is utilizing Tencent Cloud’s live broadcasting and online business matching capabilities to bring the event to a wider audience in real time.

  • Live Video Broadcast and Video-On-Demand: Through Tencent Cloud, the GTEF will allow the conversation on tourism economy to go beyond geographical boundaries and provide businesses a way to go global more effectively. Integrated with the GTEF website, the forum programs will feature livestreamed video feeds in four languages, viewable by audience members from mainland China, Hong Kong, Macao, Asia and all over the globe. The event will also be available after its live broadcast via video-on-demand.
  • Online Business Matching and Networking Platform: With business matching opportunities being an integral part of the annual GTEF, the segment is set to be held online this year leveraging Tencent Cloud’s solution, allowing businesses to connect without boundaries. Assuring higher efficiency, GTEF participants are able to register and make appointments as well as business matches on a dedicated online platform before the event. Successful matches will be notified via SMS, and would be made to conduct their online interaction via VooV Meeting, a seamless online conferencing tool powered by Tencent Cloud.

Through the support from Tencent Cloud’s innovative technologies, GTEF engages more industrial leaders to exchange insights on the global tourism development, reaches to global audience, opens up opportunities for local businesses to develop new partnerships and explores business leads in the industry around the world, remotely and seamlessly.

About Tencent

Tencent uses technology to enrich the lives of Internet users.

Our communications and social platforms, Weixin and QQ, connect users with each other and with digital content and services, both online and offline, making their lives more convenient. Our targeted advertising platform helps advertisers reach out to hundreds of millions of consumers in China. Our FinTech and business services support our partners’ business growth and assist their digital upgrade.

Tencent invests heavily in talent and technological innovation, actively promoting the development of the Internet industry. Tencent was founded in Shenzhen, China, in 1998. Shares of Tencent (00700.HK) was listed on the Main Board of the Stock Exchange of Hong Kong in 2004.

Media Contact

Irene Fung
Current Global
ifung@currentglobal.com 

PR Newswire

WeTrade Group Inc. Reports Third Quarter 2020 Unaudited Financial Results

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BEIJING, Dec. 3, 2020 — WeTrade Group Inc. ("Wetrade" or the "Company") (US: WETG), an emerging growth company engaged in the business of providing technical services and solutions via its membership-based social e-commerce platform, today reports its unaudited financial results for the third quarter ended September 30, 2020.

Mr. Pijun Liu, Chief Executive Officer of Wetrade, commented, "We are very pleased to report our markets and businesses continue to prove resilient in the face of a challenging macro-environment of COVID-19. Our third quarter results were above our expectations across the group from the top line to the bottom line. Revenue and net income were recorded $2.01 million and $0.74 million respectively. Our Q3 gross margin reached 78.7%, proving our strong profitability." 

Mr. Liu continued, "The competition among merchants on mainstream ecommerce platforms in China is intensifying, which creates opportunities for WeChat e-commerce(micro-business) and benefits its service providers like us. As a new decentralized model, WeChat e-commerce is the inevitable development of the next era and small and medium-sized merchants are the inevitable choice to seize traffic. Our customers are adapting to a new cadence in this environment, and we continue to adapt to support them in their evolving ways of working. The number of WeChat e-commerce users is expected to reach 100 million, 200 million and 360 million by the end of 2020, 2021 and 2022 respectively, demonstrating micro-business is a high-growth industry with a large total addressable market. To address this market, we independently developed a cloud intelligent system ("YCloud") for WeChat e-commerce through big data learning, social connection building, multi-channel data analysis, etc. We are engaging in providing better cloud intelligent solutions for micro-business users."

Mr. Kean Tat Che, Chief Financial Officer of Wetrade, commented, "We are very pleased to see that the Company maintains a sustained and rapid development. The revenue growth this quarter mainly comes from the Company’s technology and supply chain empowerment which enables customers to rapidly expand their consumer groups and establishing solid consumer base form a stable repurchase. YCloud in Q3 has served many customers including 12 million individuals, 60,000 Wechat group owners and over 2,000 hotels. Looking forward, we will focus on in-depth empowerment of new applications in the vertical field of WeChat e-commerce business, providing more scene-based applications and seeking new partnerships to explore new opportunities."

Third Quarter of 2020 Financial Results

For the Three Months Ended September 30,

($ millions, except per share data)

2020

2019

% Change

Revenue

2.01

–

NM

Gross Profit

1.58

–

NM

Gross Margin

78.7%

-%

NM

Operations Profit/(Loss)

1.18

(0.11)

NM

Net Income/(Loss)

0.74

(0.11)

NM

Earnings/(Loss) Per Share

0.00

(0.00)

NM

*Notes: pp represents percentage points

Revenue

Total revenue was $2.01 million for the three months ended September 30, 2020, compared with nil for the same period of last year, which was mainly due to increase in service revenue generated from auto-billing management system from micro-business users.

Cost of Sales

Total cost of sales was $0.43 million for the three months ended September 30, 2020, compared with nil for the same period of last year.

Gross profit and gross margin

Gross profit was $1.58 million for three months ended September 30, 2020, compared with nil for the same period of last year. 

Gross margin was 78.7% for the three months ended September 30, 2020, compared with nil for the same period of last year.

Operations Profit/(Loss)

General and administrative expenses increased by $0.30 million, or 267.0%, to $0.41 million for the three months ended September 30, 2020 from $0.11 million for the same period of last year. The increase was mainly due to increase in the payroll expenses as a result of 77 new staffs were recruited during the period.

Operations profit was $1.18 million for the three months ended September 30, 2020, compared with operations loss of $0.11 million for the same period of last year.

Net Income (loss)

Net income was $0.74 million for the three months ended September 30, 2020, compared with net loss of $0.11 million for the same period of last year. Basic and diluted earnings per share was nil for the three months ended September 30, 2020, compared with nil for the same period of last year.

Nine months ended September 30, 2020 Financial Results

For the Nine Months Ended September 30,

($ millions, except per share data)

2020

2019

% Change

Revenue

2.89

–

NM

Gross Profit

2.37

–

NM

Gross Margin

82.2%

-%

NM

Operations Profit/(Loss)

1.76

(0.26)

NM

Net Income/(Loss)

1.31

(0.26)

NM

Earnings/(Loss) Per Share

0.00

(0.00)

NM

*Notes: pp represents percentage points

Revenue

Total revenue was $2.89 million for the nine months ended September 30, 2020, compared with nil for the same period of last year, which was mainly from the service revenue generated from auto-billing management system from customers.

Cost of Sales

Total cost of sales was $0.52 million for the nine months ended September 30, 2020, compared with nil for the same period of last year.

Gross profit and gross margin

Gross profit was $2.37 million for nine months ended September 30, 2020, compared with nil for the same period of last year. 

Gross margin was 82.2% for the nine months ended September 30, 2020, compared with nil for the same period of last year.

Operations Profit/(Loss)

General and administrative expenses increased by $0.36 million, or 142.0%, to $0.62 million for the nine months ended September 30, 2020 from $0.26 million for the same period of last year. The increase was mainly due to increase in the payroll expenses as a result of 77 new staffs were recruited during the period.

Operations profit was $1.76 million for the nine months ended September 30, 2020, compared with operations loss of $0.26 million for the same period of last year.

Net Income/(loss)

Net income was $1.31 million for the nine months ended September 30, 2020, compared with net loss of $0.26 million for the same period of last year. Basic and diluted earnings per share was nil for the nine months ended September 30, 2020, compared with nil for the same period of last year.

Financial Condition

As of September 30, 2020, the Company had cash and cash equivalents for $6.79 million, compared to $6.59 million as of December 31, 2019. Net cash used in operating activities was $1,042,610 for the nine months ended September 30, 2020, compared to $509 for the same period of last year. Net cash provided by financing activities was $0.84 million for the nine months ended September 30, 2020, compared to $0.22 million for the same period of last year.

About WeTrade Group Inc.

WeTrade Group Inc. is an emerging growth company engaged in the business of providing technical services and solutions via its membership-based social e-commerce platform and the Company targets to provide technical and auto-billing management services for 100 million micro-business users in China. Wetrade has conducted its business operations in mainland China and trial operation in Hong Kong, Philippines and Singapore.  WeTrade has also formed the long-term technical cooperation with Yuetao App, Daren App, Yuebei App, Jingdong App, Yuedian App and Lvyue App. For more information, please visit http://www.wetradegroup.net.

Forward-Looking Statements

This press release contains information about the Company’s view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. The Company’s encourages you to review other factors that may affect its future results in the Company’s annual reports and in its other filings with the Securities and Exchange Commission.

For more information, please contact:

WeTrade Group Inc.
ir@wetradegroup.net

Ascent Investor Relations LLC
Tina Xiao
+1-917-609-0333
tina.xiao@ascent-ir.com  

 

WETRADE GROUP INC

BALANCE SHEETS

(All amounts shown in U.S. Dollars)

September 30,
2020

December 31,
2019

(unaudited)

(audited)

ASSETS

Current Assets:

Cash and Cash Equivalents

$

6,787,535

$

6,591,128

Accounts Receivables

1,030,920

–

Other receivables

276,400

–

Prepayments

197,097

–

Non current Assets:

Right of use assets

2,832,007

–

Intangible asset, net

77,196

–

Prepaid expense

10,327

–

Total Assets:

11,211,481

6,591,128

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Accrued expenses

220,412

32,000

Tax payables

556,802

–

Amount due to related parties

416,500

1,754,515

Lease liabilities, current

304,973

–

Total Current Liabilities

1,498,687

1,786,515

Lease liabilities, non- current

2,581,882

–

Total Liabilities

4,080,569

1,786,515

Stockholders’ Equity:

Common Stock; $0.00 per share par value; 305,451,498 issued and outstanding at September 30,

2020 and 300,222,000 issued and outstanding at December 31, 2019*

–

–

Additional Paid in Capital

6,057,520

222,020

Share to be issued

–

5,000,000

Accumulated other comprehensive income (loss)

183,673

–

Retained Earning/ (Accumulated Deficit)

889,719

(417,407)

Total Stockholders’ Equity

7,130,912

4,804,613

Total Liabilities and Stockholders’ Equity

$

11,211,481

$

6,591,128

*Share and per share amounts have been retroactively adjusted to reflect the increased number of shares resulting from a 1:3 stock split. 

 

WETRADE GROUP INC

STATEMENTS OF OPERATIONS

Unaudited

Three

 Months

ended S

eptember

30

2020

Three

Months

 ended

September

30

2019

Nine

 Months

 ended

September

 30,

2020

 From

 inception to

 September 30, 2019

Revenue:

Service revenue, non-related party

518,269

–

$

518,269

–

Service revenue, related party

1,493,829

2,370,192

Total Revenue:

2,012,098

2,888,461

Cost of revenue

(427,647)

(515,195)

Gross Profit

1,584,451

–

2,373,266

–

Operating Costs and expenses:

General and Administrative

407,067

110,921

617,216

255,010

Operations Profit/ (Loss)

1,177,384

(110,921)

1,756,050

(255,010)

Other income/ (loss)

38,939

–

39,060

Net Profit/ (Loss) before Income Tax

1,216,323

(110,921)

1,795,110

(255,010)

Income tax expense

475,431

–

487,984

–

Net income (loss) attributable to noncontrolling interest

740,893

(110,921)

1,307,126

(255,010)

Other Comprehensive Income (Loss)

Foreign currency translation adjustment

244,292

–

183,826

–

Total comprehensive Income (Loss)

985,185

(110,921)

1,490,952

(255,010)

Basic and Diluted Net Income (Loss) per share:

0.00

(0.00)

0.00

(0.00)

Weighted average number of shares outstanding*; Basic and

Diluted

308,704,888

300,073,998

304,166,073

300,024,666

*Share and per share amounts have been retroactively adjusted to reflect the increased number of shares resulting from a 1:3 stock split.

 

WETRADE GROUP INC

STATEMENTS OF CASH FLOWS

 From the

period

March 28,

2019

For the

Period

September

30, 2020

 (Inception)

to

September 

30,2019

(unaudited)  

(unaudited) 

Cash Flows from Operating Activities:

Net Income/ (Loss)

$

1,307,126

(255,010)

Changes in Operating Assets and Liabilities:

Trade Receivables

(1,028,044)

–

Other receivables

(275,629)

–

Prepaid expenses

(206,845)

–

Amount due to related parties

(560,020)

144,501

Intangible assets

(76,980)

–

Accrued expenses

187,839

110,000

Tax payables

555,248

–

Right of use assets

(824,106)

–

Lease liabilities

878,801

–

Net Cash Flows Used in Operating Activities:

(1,042,610)

(509)

Cash flow from financing activities:

Proceeds from issuance of common stock

835,500

222,020

Net cash provided by financing activities:

835,500

222,020

Effect of exchange rate changes on cash

403,517

–

Change in Cash and Cash Equivalents:

196,407

221,511

Cash and Cash Equivalents, Beginning of Period

6,591,128

–

Cash and Cash Equivalents, End of Period

$

6,787,535

221,511

Supplemental Cash Flow Information:

Cash paid for interest

$

–

–

Cash paid for taxes

–

–
PR Newswire

PT. ALTO Network Partners with INETCO to Secure Indonesia’s National Payment Gateway

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INETCO’s real-time payment fraud detection platform increases the security of every end-to-end payment transaction

VANCOUVER, Canada, Dec. 3, 2020 — INETCO Systems Limited, a leader in real-time payment fraud prevention, today announced that PT. ALTO Network (ALTO), a National Payment Gateway for Indonesia, has chosen the INETCO Insight software to deliver world-class performance and security monitoring. This partnership further supports the National Non-Cash Movement and Bank Indonesia’s National Payment System vision.

ALTO is Indonesia’s leading provider of end-to-end payment switching and digital banking solutions. Licensed by Bank Indonesia as the institution that implements the National Payment Gateway (GPN) to uphold the interconnection and interoperability of Indonesia’s national payment system. Providing services to 40+ issuing and acquiring member banks, ALTO connects to 100,000+ automated teller machines (ATMs) and 1,000,000+ electronic data capture (EDC) machines across Indonesia. In September 2020, ALTO announced a partnership with Visa for domestic debit-card transaction processing. ALTO implemented the INETCO Insight payment monitoring and analytics platform to comply with Visa security regulations and guarantee the stability and safety of every end-to-end payment transaction.

 "Payment fraud is greatly under regulated in Indonesia," said Patricco Baron, CTO at PT. ALTO Network. "Together, with world-class partners such as INETCO, we can actively work to prevent card present and card-not-present fraud attacks. We want to make customers feel safe when it comes to digital payment migration and help our member banks protect themselves against financial loss and a tarnished reputation – neither of which can be easily recovered." 

The ALTO fraud risk team relies on INETCO Insight to identify and analyze transaction-level payment fraud attacks in milliseconds – before major financial loss, customer risk or reputational harm occurs. The round trip performance of every domestic ATM, debit and inter-bank funds transfer transaction is correlated and profiled in real-time, giving ALTO complete visibility across 120+ links that include:

  • From every issuing and acquiring member bank to the ALTO Retail Payment Solution (RPS) switch
  • From the ALTO RPS switch to the host authorization points

In addition to visibility across the end-to-end payment journey, INETCO Insight decodes all protocol message fields contained within each transaction, including message types, card numbers, amounts, transaction dates and times, response codes, terminal IDs and ISO 8583 messages. These are the data fields that the ALTO fraud risk team uses to meet Visa security requirements, and to feed proactive rules-based alerts, fraud analytics, predictive machine learning models and real-time risk scoring for each individual customer – instantly updated every time a transaction occurs.  

"INETCO is dedicated to helping ALTO deliver world-class payment security and service excellence to all their member banks and customers," says Bijan Sanii, CEO of INETCO. "We have a proven track record of increasing the safety and stability of payment transactions, and are excited by the opportunity to drive financial inclusion and the adoption of non-cash payments across Indonesia." 

You can read the full ALTO case study here.

About ALTO

Founded in 1994, PT. ALTO Network (ALTO) is Indonesia’s leading provider of end-to-end bank switching and digital payment solutions. Licensed by Bank Indonesia as the institution that implements the National Payment Gateway (GPN), ALTO’s business has grown from shared ATM Network, to the provision of digital end-to-end solutions with extensive domestic ATM network, GPN’s debit transaction processing services, real-time payment disbursement, cross-border remittance transactions, QR code payment system, card-not-present transactions, and other value-added services. ALTO is currently servicing 40+ issuing and acquiring major banks and major non-banks, handling over 25 million transactions per month with a connection to 100,000+ automated teller machines (ATMs) and 1,000,000+ electronic data capture (EDC) machines across Indonesia. For more information, visit https://www.alto.co.id/

About INETCO

INETCO® builds smart technology that increases the reliability, safety and value of every digital and self-service payment. Our real-time transaction monitoring and analytics platform, INETCO Insight, has been selected by leading banks, payment service providers and retailers – in over 35 countries – to accelerate their digital transformation strategies and to speed up the detection of payment fraud and performance issues threatening to impact revenue, reputation and the end customer experience.

Website: https://www.inetco.com 
Twitter: @INETCOInsight 
Facebook: www.facebook.com/INETCO 
LinkedIn: www.linkedin.com/company/inetco 
YouTube: http://www.youtube.com/inetcoinsight

INETCO, INETCO Insight, the INETCO logo, and the INETCO Insight logo are trademarks or registered trademarks of INETCO Systems Ltd. All other trademarks are the property of their respective owners.

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PR Newswire

Itiviti plans large scale staff expansion for 2021

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Hiring driven by investment in global FX and Fixed Income trading capabilities

LONDON, Dec. 2, 2020 — Itiviti, a leading trading technology and service provider to financial institutions worldwide, today announced a large-scale, multi-year hiring plan to support the company’s growth and continued investment into its FX and Fixed Income trading technology across markets in Europe, North America and Asia.

"This hiring plan is a part of our multi-year strategy to deliver innovative and reliable technology that will help our clients achieve sustainable long-term growth," said Rob MacKay, CEO, of Itiviti. "We grew our team by over 6% in 2020 and we plan to accelerate that growth in 2021." 

Itiviti will be adding more than 200 new research and development (R&D), quality assurance (QA) and client service positions in 2021 and 2022 to keep pace with the firm’s ambitious product roadmap. The majority of new staff will be joining the company in its St Petersburg, Cluj and Mumbai offices.

Launching such a large scale investment in staff during this time while other organizations are downsizing is very exciting and promising for us," said Karoline Raets, Head of People Office, Itiviti. "Throughout the pandemic our flexible work environment has kept employees highly engaged and motivated with no adverse impact on the company’s performance.  As such, we are very enthusiastic about the career opportunities we can offer going forward for both internal and external talent."

Continued MacKay: "We made a lot of progress this year to improve our offering in the face of rapidly changing market requirements As trusted providers of trading and connectivity solutions, our commitment to innovation will enable us to deliver on the full potential of our platform no matter where and how our clients choose to operate." 

Visit our newly revamped website and keep up to date on open positions here: itiviti.com/careers.

For further information, please contact:
Mireille Adebiyi
Chief Marketing Officer
Itiviti Group
Email: mireille.adebiyi@itiviti.com

About Itiviti

Itiviti provides nearly 2,000 financial institutions worldwide with flexible, cross-asset trading solutions that cover the full trade lifecycle. Through its commitment to technology innovation, relentless pursuit of workflow efficiency and an entrepreneurial culture, Itiviti is disrupting the industry with highly scalable solutions that deliver unprecedented cost savings for clients.

Itiviti is owned by Nordic Capital.

For more information, please visit www.itiviti.com.

 

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/itiviti-group-ab/r/itiviti-plans-large-scale-staff-expansion-for-2021,c3247410

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PR Newswire

X Financial Reports Third Quarter 2020 Unaudited Financial Results

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SHENZHEN, China, Dec. 2, 2020 — X Financial (NYSE: XYF) (the "Company" or "we"), a leading technology-driven personal finance company in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 Financial Highlights

  • Total net revenue was RMB559.8 million (US$82.5 million), representing a decrease of 34.5% year-over-year and an increase of 44.3% quarter-over-quarter.
  • Loss from operations was RMB101.4 million (US$14.9 million), compared with income from operations of RMB214.7 million in the same period of 2019 and loss from operations of RMB341.5 million in the previous quarter.
  • Net loss attributable to X Financial shareholders was RMB113.0 million (US$16.6 million), compared with net income attributable to X Financial shareholders of RMB169.6 million in the same period of 2019 and net loss attributable to X Financial shareholders of RMB343.7 million in the previous quarter.
  • Non-GAAP[1] adjusted net loss attributable to X Financial shareholders was RMB111.7 million (US$16.5 million), compared with non-GAAP adjusted net income attributable to X Financial shareholders of RMB208.0 million in the same period of 2019 and non-GAAP adjusted net loss attributable to X Financial shareholders of RMB325.9 million in the previous quarter.
  • Net loss per basic and diluted American depositary share ("ADS")[2] was RMB2.10 (US$0.31) and RMB2.10 (US$0.31), respectively, compared with net income per basic and diluted American depositary share ("ADS") of RMB3.24 and RMB3.12, respectively, in the same period of 2019.
  • Non-GAAP adjusted net loss per basic and adjusted diluted ADS was RMB2.10 (US$0.31), and RMB2.10 (US$0.31), respectively, compared with non-GAAP adjusted net income per basic and adjusted diluted ADS of RMB3.96 and RMB3.84, respectively, in the same period of 2019.

Third Quarter 2020 Operational Highlights

  • The total loan facilitation amount[3] was RMB8,027 million, representing a decrease of 25.3% from RMB10,750 million in the same period of 2019 and an increase of 30.4% from RMB6,153 million in the second quarter of 2020.
  • The loan facilitation amount of Xiaoying Credit Loan[4] was RMB6,847 million, representing a decrease of 15.3% from RMB8,086 million in the same period of 2019 and an increase of 49.4% from RMB4,583 million in the second quarter of 2020. Xiaoying Credit Loan accounted for 85.3% of the Company’s total loan facilitation amount, compared with 75.2% in the same period of 2019.
  • The total outstanding loan balance[5] as of September 30, 2020 was RMB12,280 million, compared with RMB19,606 million as of September 30, 2019 and RMB12,185 million as of June 30, 2020.
  • The average loan amount per transaction[6] of Xiaoying Term Loan[7] was RMB9,041, representing a decrease of 29.6% from RMB12,848 in the same period of 2019 and an increase of 8.2% from RMB8,356 for the second quarter of 2020.
  • The delinquency rates for all outstanding loans that are past due for 31-90 days and 91–180 days as of September 30, 2020 were 2.13% and 4.62%, respectively, compared with 3.53% and 9.44%, respectively, as of June 30, 2020, and 2.95% and 4.50%, respectively, as of September 30, 2019.
  • The number of cumulative borrowers, each of whom made at least one transaction on the Company’s lending platform, as of September 30, 2020 was 6,326,338.
  • Total cumulative registered users reached 51.1 million as of September 30, 2020.
  • Institutional funding accounted for 100.0% of the total loan facilitation amount, compared with 97.4% in the second quarter of 2020.

[1] The Company uses in this press release the following non-GAAP financial measures: (i) adjusted net income (loss), (ii) adjusted net income (loss) attributable to X Financial shareholders, (iii) adjusted net income (loss) per basic ADS, and (iv) adjusted net income (loss) per diluted ADS, each of which excludes share-based compensation expense. For more information on non-GAAP financial measure, please see the section of "Use of Non-GAAP Financial Measures Statement" and the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.

[2] Each American depositary share ("ADS") represents six Class A ordinary shares. On November 19, 2020, a ratio change that has the same effect as a 1-for-3 reverse ADS split took effect, and as a result, one ADS currently represents six Class A ordinary shares.

[3] Represents the total amount of loans that X Financial facilitated during the relevant period.

[4] X Financial integrated Xiaoying Card Loan and Xiaoying Preferred Loan into one general product category, Xiaoying Credit Loan, in 2018.

[5] Represents the total amount of loans outstanding for loans X Financial facilitated at the end of the relevant period. Loans that are delinquent for more than 180 days are charged-off and are excluded in the calculation of delinquency rate by balance, except for Xiaoying Housing Loan. Xiaoying Housing Loan is a secured loan product and the Company is entitled to payment by exercising its rights to the collateral. X Financial does not charge off Xiaoying Housing Loans delinquent for more than 180 days and such loans are included in the calculation of delinquency rate by balance.

[6] Calculated by dividing the total loan facilitation amount by the number of loans facilitated during the relevant period.

[7] Xiaoying Term Loan refers to the loans with fixed repayment periods including Xiaoying Credit Loan, Xiaoying Housing Loan, and Internet Channel.

Mr. Justin Tang, the Founder, Chief Executive Officer and Chairman of the Company, commented, "Despite the impact from COVID-19 and the tightened regulatory environment in China, we delivered encouraging operational and financial results in the third quarter. Thanks to the solid recovery in loan facilitation amount of Xiaoying Credit Loan, our total loan facilitation amount increased by 30.4% quarter-over-quarter to RMB8,027 million."

"We continued to adhere to our prudent risk management approach. The delinquency rates for all outstanding loans that are past due for 31-90 days and 91–180 days as of September 30, 2020 decreased further to 2.13% and 4.62%, respectively, compared with 3.53% and 9.44%, respectively, as of June 30, 2020. As the epidemic continues to ease and the macro economic environment recovers gradually in China, our credit risk profile continues to improve."

"Based on the solid progress we have made on the operational front, we improved both our top and bottom lines. Our total net revenue increased by 44.3% quarter-over-quarter and net loss attributable to X Financial shareholders narrowed to RMB113.0 million from RMB343.7 million in the previous quarter, demonstrating our strong capability to navigate in an uncertain regulatory environment and challenging economy."

"In August 2020, the Supreme People’s Court of the PRC lowered the ceiling of the private lending interest rate protected by law. We believe this new policy is currently only applicable to private lending, which mainly refers to loans made to individuals or companies by private organizations or individuals instead of financial institutions. The regulation does put pressure on the whole lending sector, but it’s not directly applicable to our business at this moment as we are a financial institution regulated by local financial regulatory authorities."

"Recently, the Chinese government also planned to impose tighter regulations on small loans offered online by microloan companies. The regulators have started seeking public opinion on the interim measures for the administration of online small lending businesses. The new ruling will significantly affect the fundamentals of the online small lending industry with requirements on borrowing limits, fund leverage, prohibition of multi-regional lending and other measures. It is expected that the new regulations will be finalized by the end of this year. Due to the low visibility caused by regulatory uncertainties, it is difficult for companies in this sector to precisely evaluate its impact on their businesses at this moment but they will need to adjust their strategies and bring substantial changes to their operations over a transitional period of one to three years to comply with the new policies."

"Despite all the challenges ahead, we will continue to expand and improve our offerings to cater to the growing demand for personal financing in China. We are on track to apply for an online microcredit license and will keep a close watch on the evolving market dynamics and regulatory environment. We have experienced reforms and navigated difficult periods before, and emerged stronger as a key player in this industry. We are confident that we are capable of making strategic adjustments in a timely way to fit into the new business environment."

Mr. Simon Cheng, President of the Company, added, "We continued to expand our cooperation with financial institutions. In the third quarter, we successfully achieved 100% institutional funding for the new loans facilitated through our platform, compared with 97.4% in the previous quarter. Both the total available credit lines and the number of financial institutional partners have continued to expand. Our risk management capabilities and proven record have been fully recognized by our financial institutional partners."

"Our exit from the P2P business has progressed in an orderly manner. The outstanding loan balance of the P2P business continued to decrease from RMB1.6 billion as of June 30, 2020 to RMB0.4 billion as of September 30, 2020 and further decreased to RMB0.3 billion as of October 31, 2020. Protecting the interests of our investors is always our top priority and we believe it helps us minimize regulatory risks and establish a solid foundation of trust and integrity in the personal finance sector."

"During the third quarter, our number of active borrowers continued to grow to 692,997, representing an increase of 10.8% from 625,707 in the previous quarter, mainly due to an increase in the number of active borrowers of Xiaoying Credit Loan. This is further acknowledgement of the high value and quality of the loan products we offer to borrowers, as well as the traction and growth momentum we gained as the market continues to gradually recover."

"Overall, we will continue to strengthen our cooperation and relationships with financial institutions and keep diversifying our institutional funding sources. With China’s steady economic rebound and implementation of favorable policies to support domestic consumption, we are confident in our execution capabilities to create long-term value for our investors and shareholders."

Mr. Frank Fuya Zheng, Chief Financial Officer of the Company, added, "We are pleased to have seen gradual recovery during the third quarter, thanks to the overall improving market conditions and our continuous efforts to enhance the top line growth and reduce costs across various parts of our business."

"We continued to strengthen our risk management capabilities and focused on expanding the quality of our borrower base. The improvement in our credit risk profile has brought a significant decrease of RMB56.3 million in the bad debt provisions for accounts receivable and loans receivable in the third quarter when compared with the previous quarter. Together with other cost control initiatives, we successfully narrowed the net loss for the quarter. So far into the fourth quarter, we are seeing more positive signs on the borrower side. As of October 31, 2020, the delinquency rates for all outstanding loans that are past due for 31-90 days and 91–180 days further dropped to 1.94% and 3.84%, respectively, an outstanding performance showing the high effectiveness of our risk control model and improvements in the quality of our borrowers."

"In addition, our efforts to expand and deepen our cooperation with financial institutional partners continued to bear fruit. The total number of financial institutions which we cooperate with continued to increase during the third quarter, and at the same time, we also managed to reduce overall funding costs in this quarter. We will continue to engage with more financial institutions to further optimize our cost structure. In the meantime, we continued to diversify our partnerships with third-party financial guarantee companies."

"In conclusion, we will continue to closely monitor regulations and market conditions, and ensure we will adapt quickly in response to any potential impact on our business due to changes in the macro environment. In addition, we will continue to provide more attractive loan products, further improve the credit quality of our borrower base and explore additional cooperation opportunities with financial institutions to capture untapped growth in the personal finance industry."

Third Quarter 2020 Financial Results

Total net revenue decreased by 34.5% to RMB559.8 million (US$82.5 million) from RMB854.3 million in the same period of 2019, primarily due to a decline in total loan facilitation amount in this quarter when compared with the same period of 2019.

Loan facilitation service fees under the direct model decreased by 37.7% to RMB350.4 million (US$51.6 million) from RMB562.1 million in the same period of 2019, primarily due to the combined effect of (i) a decrease in the amount of loans facilitated through direct model compared with the same period of 2019, and (ii) a change in the product mix.

Loan facilitation service fees under the intermediary model was RMB3.0 million (US$0.4 million), compared with RMB50.2 million in the same period of 2019, primarily due to the fact that substantially all of the institutional investors invested their funds in the loans facilitated under direct model and/or trust model, depending on their investment strategies.

Post-origination service fees decreased by 37.1% to RMB49.5 million (US$7.3 million) from RMB78.8 million in the same period of 2019, as a result of the cumulative effect of decreased volume of loans facilitated in the previous quarters. Revenues from post-origination services are recognized on a straight-line basis over the term of the underlying loans as the services are being provided.

Financing income increased by 1.8% to RMB138.8 million (US$20.4 million) from RMB136.4 million in the same period of 2019, primarily due to an increase in average loan balances held by the Company. These loans do not qualify for sales accounting, and the service fees are recognized as financing income over the life of the underlying financing using the effective interest method.

Other revenue decreased by 32.6% to RMB18.1 million (US$2.7 million) from RMB26.9 million in the same period of 2019, primarily due to a decrease in penalty fees for late or early repayment and commission fees for introducing borrowers to other platforms.

Origination and servicing expenses increased by 19.9% to RMB561.2 million (US$82.7 million) from RMB468.2 million in the same period of 2019, primarily due to the following factors: (i) an increase in collection expenses resulting from a more active policy taken to address the impact of COVID-19, and (ii) an increase in interest expenses related to financing income.  Meanwhile, to better reflect the origination and servicing expenses incurred in connection with the loans facilitated through the Consolidated Trusts, the management fees paid to third-party trust companies, amounting to RMB15.2 million compared with RMB5.5 million in the same period of 2019, have been reclassified from general and administrative expenses to origination and servicing expenses. The comparative figures have been reallocated to conform with the current period’s classification.

General and administrative expenses decreased by 37.1% to RMB35.8 million (US$5.3 million) from RMB56.9 million in the same period of 2019, primarily due to a decrease in share-based compensation expenses.

Sales and marketing expenses decreased by 85.0% to RMB3.9 million (US$0.6 million) from RMB25.9 million in the same period of 2019, primarily due to a reduction in promotional and advertising expenses since the outbreak of COVID-19. 

Reversal of provision for contingent guarantee liabilities was RMB19.4 million (US$2.9 million) primarily attributable to the decrease in estimated default of the loans subject to guarantee liabilities facilitated in prior periods.

Provision for accounts receivable and contract assets decreased by 71.2% to RMB24.3 million (US$3.6 million) from RMB84.7 million in the same period of 2019, primarily due to the combined effect of (i) a decrease in accounts receivable and contract assets, and (ii) a decrease in the estimated default rates.

Provision for loans receivable was RMB58.1 million (US$8.6 million), compared with RMB3.9 million in the same period of 2019, primarily due to an increase in loans receivable from credit loans and revolving loans.

Loss from operation was RMB101.4 million (US$14.9 million), compared with income from operation of RMB214.7 million in the same period of 2019.

Loss before income taxes and loss from equity in affiliates was RMB108.2 million (US$15.9 million), compared with income before income taxes and gain from equity in affiliates of RMB188.1 million in the same period of 2019.

Income tax expenses was RMB1.6 million (US$0.2 million), compared with RMB26.5 million in the same period of 2019, primarily due to a decrease in the taxable income.

Net loss attributable to X Financial shareholders was RMB113.0 million (US$16.6 million), compared with net income attributable to X Financial shareholders of RMB169.6 million in the same period of 2019.

Non-GAAP adjusted net loss attributable to X Financial shareholders was RMB111.7 million (US$16.5 million), compared with non-GAAP adjusted net income attributable to X Financial shareholders of RMB208.0 million in the same period of 2019.

Net loss per basic and diluted ADS was RMB2.10 (US$0.31), and RMB2.10 (US$0.31), respectively, compared with net income per basic and diluted ADS of RMB1.08 and RMB3.12, respectively, in the same period of 2019.

Non-GAAP adjusted net loss per basic and diluted ADS was RMB2.10 (US$0.31), and RMB2.10 (US$0.31), respectively, compared with non-GAAP adjusted net income per basic and diluted ADS of RMB3.96 and RMB3.84, respectively, in the same period of 2019.

Cash and cash equivalents was RMB324.3 million (US$47.8 million) as of September 30, 2020, compared with RMB333.5 million as of June 30, 2020.

Business Outlook

Given the ongoing regulatory changes, all market players are taking a more prudent risk management approach and the Company is in the process of reassessing its institutional cooperators. Based on the Company’s preliminary assessment, the deposits paid to its institutional cooperators are subject to impairment risks. Consequently, the Company is unable to reasonably determine a near-term outlook for its business.

Conference Call

X Financial’s management team will host an earnings conference call at 7:00 AM U.S. Eastern Time on Wednesday, December 2, 2020 (8:00 PM Beijing / Hong Kong Time on the same day).

Dial-in details for the earnings conference call are as follows:

United States:

1-888-346-8982

Hong Kong:

852-301-84992

Mainland China:

4001-201203

International:

1-412-902-4272

Passcode:

X Financial

Please dial in ten minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the conference call may be accessed by phone at the following numbers until December 9, 2020:

United States:

1-877-344-7529

International:

1-412-317-0088

Passcode:

10150253

Additionally, a live and archived webcast of the conference call will be available at http://ir.xiaoyinggroup.com.

About X Financial

X Financial (NYSE: XYF) (the "Company") is a leading technology-driven personal finance company in China focused on meeting the huge demand for credit from individuals and small-to-medium-sized enterprise owners. The Company’s proprietary big data-driven risk control system, WinSAFE, builds risk profiles of prospective borrowers using a variety data-driven credit assessment methodology to accurately evaluate a borrower’s value, payment capability, payment attitude and overall creditworthiness. X Financial has established a strategic partnership with ZhongAn Online P&C Insurance Co., Ltd. in multiple areas of its business operations to directly complement its cutting-edge risk management and credit assessment capabilities. ZhongAn Online P&C Insurance Co., Ltd. provides credit insurance on X Financial’s investment products which significantly enhances investor confidence and allows the Company to attract a diversified and low-cost funding base from individuals, enterprises and financial institutions to support its growth. X Financial leverages financial technology to provide convenient, efficient, and secure investment services to a wide range of high-quality borrowers and mass affluent investors which complements traditional financial institutions and helps to promote the development of inclusive finance in China.

For more information, please visit: http://ir.xiaoyinggroup.com.

Use of Non-GAAP Financial Measures Statement

In evaluating our business, we consider and use non-GAAP measures as supplemental measures to review and assess our operating performance. We present the non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of the non-GAAP financial measures facilitates investors’ assessment of our operating performance.

We use in this press release the following non-GAAP financial measures: (i) adjusted net income, (ii) adjusted net income attributable to X Financial shareholders, (iii) adjusted net income per basic ADS, and (iv) adjusted net income per diluted ADS, each of which excludes share-based compensation expense. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, investors should not consider them in isolation, or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP.  

We mitigate these limitations by reconciling the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and Non-GAAP results" set forth at the end of this press release.

New Accounting Pronouncements

In June 2016, the FASB issued Accounting Standard Update ("ASU") No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of the Group’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. The Company have adopted the new standard effective January 1, 2020, using a modified retrospective basis under which prior comparative periods are not restated. The impact of the adoption of this guidance on the Group’s consolidated statements of comprehensive income after tax amounts to RMB17.2 million as of January 1, 2020.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.7896 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2020.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets," "guidance" and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), 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. Any statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: the Company’s goals and strategies; its future business development, financial condition and results of operations; the expected growth of the credit industry, and marketplace lending in particular, in China; the demand for and market acceptance of its marketplace’s products and services; its ability to attract and retain borrowers and investors on its marketplace; its relationships with its strategic cooperation partners; competition in its industry; and relevant government policies and regulations relating to the corporate structure, business and industry. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this announcement is current as of the date of this announcement, and the Company does not undertake any obligation to update such information, except as required under applicable law.

For more information, please contact:

X Financial
Mr. Frank Fuya Zheng
E-mail: ir@xiaoying.com

Christensen

In China
Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: eyuan@christensenir.com  

In US 
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: lbergkamp@christensenir.com

 

 

X Financial

Unaudited Condensed Consolidated Balance Sheets

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

As of December 31, 2019

As of September 30, 2020

 RMB 

RMB

USD

 ASSETS 

 Cash and cash equivalents 

1,005,980

324,251

47,757

 Restricted cash 

514,323

758,207

111,672

 Accounts receivable and contract assets, net of
allowance for doubtful accounts 

771,154

306,369

45,123

 Loans receivable from Xiaoying Credit Loans and
Revolving Loans, net 

289,553

1,002,131

147,598

 Loans at fair value 

2,782,333

1,839,056

270,864

 Deposits to institutional cooperators 

518,720

1,850,925

272,612

 Prepaid expenses and other current assets 

707,450

523,697

77,132

 Financial guarantee derivative 

719,962

503,284

74,126

 Deferred tax assets, net 

465,441

576,978

84,980

 Long term investments 

292,142

302,044

44,486

 Property and equipment, net 

20,139

13,121

1,933

 Intangible assets, net 

35,127

37,786

5,565

 Loan receivable from Xiaoying Housing Loans, net 

89,536

60,011

8,839

 Other non-current assets 

68,772

40,058

5,900

 TOTAL ASSETS 

8,280,632

8,137,918

1,198,587

 LIABILITIES 

 Payable to investors 

3,006,349

3,259,161

480,023

 Guarantee liabilities 

17,475

10,119

1,490

 Financial guarantee derivative 

–

51,675

7,611

 Short-term bank borrowings 

–

322,495

47,498

 Accrued payroll and welfare 

63,649

49,210

7,248

 Other tax payable 

58,086

39,311

5,790

 Income tax payable 

340,996

294,006

43,302

 Deposit payable to channel cooperators 

108,923

24,733

3,643

 Accrued expenses and other liabilities 

274,440

315,104

46,410

 Other non-current liabilities 

42,300

18,200

2,681

 Deferred tax liabilities 

1,309

573

84

 TOTAL LIABILITIES 

3,913,527

4,384,587

645,780

 Commitments and Contingencies 

 Equity: 

 Common shares 

201

201

30

 Additional paid-in capital 

2,987,363

3,043,185

448,213

 Retained earnings 

1,311,194

658,163

96,937

 Other comprehensive income 

67,101

50,494

7,437

 Total X Financial shareholders’ equity 

4,365,859

3,752,043

552,617

 Non-controlling interests 

1,246

1,288

190

 TOTAL EQUITY 

4,367,105

3,753,331

552,807

 TOTAL LIABILITIES AND EQUITY 

8,280,632

8,137,918

1,198,587

 

 

X Financial

Unaudited Condensed Consolidated Statements of Comprehensive Income

Three Months Ended September 30,

Nine Months Ended September 30,

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

2019

2020

2020

2019

2020

2020

 RMB 

RMB

USD

 RMB 

RMB

USD

 Net revenues 

 Loan facilitation service-Direct Model 

562,066

350,381

51,606

1,662,568

793,967

116,939

 Loan facilitation service-Intermediary Model 

50,186

2,959

436

221,137

41,190

6,067

 Post-origination service 

78,768

49,514

7,293

248,326

162,452

23,927

 Financing income 

136,353

138,826

20,447

214,344

441,171

64,977

 Other revenue 

26,901

18,120

2,669

76,571

37,881

5,579

 Total net revenue 

854,274

559,800

82,451

2,422,946

1,476,661

217,489

 Operating costs and expenses: 

 Origination and servicing 

468,226

561,241

82,662

1,231,021

1,520,781

223,987

 General and administrative 

56,914

35,791

5,271

164,904

142,846

21,039

 Sales and marketing 

25,854

3,874

571

83,299

30,771

4,532

 (Reversal of) provision for contingent guarantee liabilities 

–

(19,438)

(2,863)

–

2,152

317

 Provision for accounts receivable and contract assets 

84,659

24,346

3,586

188,915

134,722

19,842

 Provision for loans receivable 

3,923

58,135

8,562

44,390

211,501

31,151

 (Reversal of) credit losses for other financial assets 

–

(2,718)

(400)

–

6,879

1,013

 Total operating costs and expenses 

639,576

661,231

97,389

1,712,529

2,049,652

301,881

 Income (loss) from operations 

214,698

(101,431)

(14,938)

710,417

(572,991)

(84,392)

 Interest income, net 

7,286

5,752

847

12,692

15,990

2,355

 Foreign exchange gain (loss) 

692

8,984

1,323

(159)

8,911

1,312

 Investment loss 

–

–

–

(12,538)

–

–

 Change in fair value of financial guarantee derivative 

(84,690)

(26,579)

(3,915)

(198,952)

(143,621)

(21,153)

 Fair value adjustments related to Consolidated Trusts 

49,079

3,245

478

130,930

(43,416)

(6,394)

 Other income (loss), net 

1,042

1,798

265

10,028

10,789

1,589

 Income (loss) before income taxes and gain (loss) from equity in affiliates 

188,107

(108,231)

(15,940)

652,418

(724,338)

(106,683)

 Income tax benefit (expense)  

(26,514)

(1,576)

(232)

27,358

72,912

10,739

 Gain (loss) from equity in affiliates 

7,983

(3,224)

(475)

15,027

(1,564)

(230)

 Net income (loss) 

169,576

(113,031)

(16,647)

694,803

(652,990)

(96,174)

 Less: net income (loss) attributable to non-controlling interests 

–

(7)

(1)

200

41

6

 Net income (loss) attributable to X Financial shareholders 

169,576

(113,024)

(16,646)

694,603

(653,031)

(96,180)

 Net income (loss) 

169,576

(113,031)

(16,647)

694,803

(652,990)

(96,174)

 Other comprehensive income, net of tax of nil: 

 Foreign currency translation adjustments 

4,644

(26,816)

(3,950)

7,375

(16,607)

(2,446)

 Comprehensive income (loss) 

174,220

(139,847)

(20,597)

702,178

(669,597)

(98,620)

 Less: comprehensive income (loss) attributable to non controlling interests 

–

(7)

(1)

200

41

6

 Comprehensive income (loss) attributable to X Financial shareholders 

174,220

(139,840)

(20,596)

701,978

(669,638)

(98,626)

 Net income per share—basic 

0.54

(0.35)

(0.05)

2.23

(2.03)

(0.30)

 Net income per share—diluted  

0.52

(0.35)

(0.05)

2.18

(2.03)

(0.30)

 Net income per ADS—basic 

3.24

(2.10)

(0.31)

13.38

(12.18)

(1.79)

 Net income per ADS—diluted  

3.12

(2.10)

(0.31)

13.08

(12.18)

(1.79)

 Weighted average number of ordinary shares outstanding—basic 

316,387,394

321,262,508

321,262,508

311,794,242

320,913,563

320,913,563

 Weighted average number of ordinary shares outstanding—diluted 

323,103,017

327,099,971

327,099,971

318,509,865

326,751,026

326,751,026

 

 

X Financial

Unaudited Reconciliations of GAAP and Non-GAAP Results

Three Months Ended September 30,

Nine Months Ended September 30,

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

2019

2020

2020

2019

2020

2020

RMB

RMB

USD

RMB

RMB

USD

GAAP net income (loss)

169,576

(113,031)

(16,647)

694,803

(652,990)

(96,174)

Add: Share-based compensation expenses (net of tax of nil)

38,421

1,292

190

119,574

55,448

8,167

Non-GAAP adjusted net income (loss)

207,997

(111,739)

(16,457)

814,377

(597,542)

(88,007)

Net income (loss) attributable to X Financial shareholders

169,576

(113,024)

(16,646)

694,603

(653,031)

(96,180)

Add: Share-based compensation expenses (net of tax of nil)

38,421

1,292

190

119,574

55,448

8,167

Non-GAAP adjusted net income (loss) attributable to X Financial shareholders

207,997

(111,732)

(16,456)

814,177

(597,583)

(88,013)

 Non-GAAP adjusted net income (loss) per share—basic 

0.66

(0.35)

(0.05)

2.61

(1.86)

(0.27)

 Non-GAAP adjusted net income (loss) per share—diluted  

0.64

(0.35)

(0.05)

2.56

(1.86)

(0.27)

 Non-GAAP adjusted net income (loss) per ADS—basic 

3.96

(2.10)

(0.31)

15.66

(11.16)

(0.54)

 Non-GAAP adjusted net income (loss) per ADS—diluted  

3.84

(2.10)

(0.31)

15.36

(11.16)

(0.54)

 Weighted average number of ordinary shares outstanding—basic 

316,387,394

321,262,508

321,262,508

311,794,242

320,913,563

320,913,563

 Weighted average number of ordinary shares outstanding—diluted 

323,103,017

327,099,971

327,099,971

318,509,865

326,751,026

326,751,026

 

 

Related Links :

http://www.xiaoyinggroup.com

PR Newswire

Ruhnn Special Committee Retains Financial Advisor and Legal Counsel

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HANGZHOU, China, Dec. 1, 2020 — Ruhnn Holding Limited ("ruhnn" or the "Company") (NASDAQ: RUHN), a leading internet key opinion leader ("KOL") facilitator in China, today announced that the independent special committee (the "Special Committee") of the Company’s Board of Directors (the "Board") has retained Duff & Phelps, LLC as its financial advisor, and Gibson, Dunn & Crutcher LLP as its U.S. legal counsel to assist the Special Committee in its evaluation and consideration of the previously announced preliminary non-binding proposal from three founders of the Company, Min Feng, Lei Sun and Chao Shen (together with their respective affiliates, the "Buyer Group") that the Board received on November 25, 2020, proposing to acquire all outstanding Class A ordinary shares, including Class A ordinary shares represented by American depository shares (the "ADSs," each representing five Class A ordinary shares), and Class B ordinary shares (together with the Class A ordinary shares, the "Shares") of the Company not already owned by the Buyer Group for US$3.40 per ADS (or US$0.68 per Share) in cash in a going private transaction (the "Proposed Transaction").

The Board cautions the Company’s shareholders and others considering trading in its securities that no decisions have been made by the Special Committee with respect to the Company’s response to the Proposed Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be entered into or that the Proposed Transaction or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to the Proposed Transaction or any other transaction, except as required by applicable law.

About Ruhnn Holding Limited

Ruhnn Holding Limited is a leading KOL facilitator in China. The Company connects influential KOLs who engage and impact their fans on the internet to its vast commercial network to build the brands of fashion products. Ruhnn pioneered the commercialization of the KOL ecosystem in China, and operates under both platform and full-service models. The Company’s platform model promotes products sold in third-party online stores and provides advertising services on KOL’s social media spaces to third-party merchants. The full-service model integrates key steps of the e-commerce value chain from product design and sourcing and online store operations to logistics and after-sale services. As of September 30, 2020, the Company had 180 signed KOLs with an aggregate of 295.3 million fans across major social media platforms in China.

For more information, please visit http://ir.ruhnn.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of 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" and similar statements. Among other things, the business outlook and quotations from ruhnn’s management as well as ruhnn’s strategic and operational plans contain forward-looking statements. Ruhnn may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC") on Forms 20-F and 6-K, 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. Statements that are not historical facts, including statements about ruhnn’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statements, including but not limited to the following: the Company’s goals and strategies; the Company’s future business development, financial condition and results of operations; trends in the internet KOL facilitator industry in China and globally; competition in the Company’s industry; fluctuations in general economic and business conditions in China; and the regulatory environment in which the Company operates. Further information regarding these and other risks is included in the Company’s filings with the SEC, including its registration statement on Form F-1, as amended, and its annual reports on Form 20-F. All information provided in this press release is as of the date of this press release, and ruhnn does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Ruhnn Holding Limited
Sterling Song
Senior Director of Investor Relations
Tel: +86-571-2825-6700
E-mail: ir@ruhnn.com

The Piacente Group, Inc.
Emilie Wu
Tel: +86-21-6039-8363
E-mail: ruhnn@thepiacentegroup.com

In the United States:

The Piacente Group, Inc. 
Brandi Piacente
Tel: +1-212-481-2050
E-mail: ruhnn@thepiacentegroup.com

PR Newswire

EVONET Global Pte. Ltd Raises USD30 Million in Series A Round of Financing

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SINGAPORE, Dec. 1, 2020 — EVONET Global ("the Company") is excited to announce that it has successfully raised USD 30 million in series A round funding from TIS Inc. (www.tis.co.jp) through CardInfoLink. The proceeds will be used to set up an innovative platform and business for financial services to support interoperability among mobile wallet operators, QR code acquirers and financial service providers. Once established, the platform will enable cross-border retail payment transactions and digitized financial services such as remittance, insurance and other services on mobile wallets globally. Users of mobile wallets can safely and conveniently access the services anytime, anywhere.

This new round of investment will also enable EVONET Global to capitalize on its position as a new technology leader in the mobile payment and financial services industry in East Asia to further expand its global footprints. As the mobile payment and financial services in the region are growing exponentially, the platform can help to grow the business to greater height through interoperability and shared financial services.

"The platform can create a new revenue stream and increase competitive advantage for mobile wallet operators by enabling interoperability retail payment and allowing mobile wallet users to access Northeastern Asia digitized financial services. The transaction volume is expected to grow rapidly in near future thanks to strong mobile lifestyle adoption," said James Zhao, CEO of EVONET Global.

About EVONET Global Pte. Ltd.

EVONET Global Pte. Ltd. is a fully owned subsidiary for CardInfoLink. It is an innovative financial services platform which helps to create a new revenue stream and increase the competitive advantage to connected mobile wallet partners by offering digitized financial services and cross-border retail payment service to their users.

About TIS Inc.

TIS Inc., a member of the TIS INTEC Group provides several IT solution services including entrusted development, data center and cloud services. At the same time, TIS is contributing to the growth of its customers business, a client base of more than 3,000 customers from various industries, such as financial services, manufacturing, logistics/distribution, public services and telecommunications, by being their technology partner and offering global support to companies with a presence mainly in China and the ASEAN region.

About CardinfoLink

CardInfoLink was established in. 2010. It provides innovative payment technological solutions to more than 100 banks and non-banks for processing payment transactions in China, Japan, Korea and South East Asia. The international payment brands supported are Visa, MasterCard, UnionPay, Amex, JCB, Discover, Diners Club, MPU, Truemoney, GrabPay, WeChat Pay and AliPay . In addition, it also provides loyalty programs, escrow payment, mini-program and other innovative services. It has established offices in Shanghai, Wuxi, Hong Kong, Tokyo, Bangkok and Singapore to serve the increasing number of customers.

Contact:
Foo Kok Hee
Regional Business Development Head
kokhee.foo@evonetglobal.com

PR Newswire

Noah Holdings Limited Announces Unaudited Financial Results for the Third Quarter of 2020

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SHANGHAI, Dec. 1, 2020 — Noah Holdings Limited ("Noah" or the "Company") (NYSE: NOAH), a leading wealth and asset management service provider in China with a focus on global investment and asset allocation services for high net worth individuals and enterprises, today announced its unaudited financial results for the third quarter of 2020.

THIRD QUARTER 2020 FINANCIAL HIGHLIGHTS

[1] Noah’s Non-GAAP financial measures are its corresponding GAAP financial measures excluding the effects of all forms of share-based compensation, fair value changes of equity securities (unrealized), adjustment for sale of equity securities and net of relevant tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.

  • Net revenues for the third quarter of 2020 were RMB859.1 million (US$126.5 million), a 2.0% increase from the corresponding period in 2019, and a 14.9% increase from the second quarter of 2020.

(RMB millions,

except percentages)

Q3 2019

Q3 2020

YoY Change

Wealth management

542.4

627.7

15.7%

Asset management

240.4

222.4

(7.5%)

Lending and other businesses

59.2

9.0

(84.8%)

Total net revenues

842.0

859.1

2.0%
  • Income from operations for the third quarter of 2020 was RMB347.2 million (US$51.1 million), a 48.2% increase from the corresponding period in 2019, and an 8.7% increase from the second quarter of 2020.

(RMB millions,

except percentages)

Q3 2019

Q3 2020

YoY Change

Wealth management

83.5

248.4

197.1%

Asset management

145.7

113.7

(22.0%)

Lending and other businesses

5.1

(14.9)

N.A.

Total income from operations

234.3

347.2

48.2%
  • Net income attributable to Noah shareholders for the third quarter of 2020 was RMB285.6 million (US$42.1 million), a 49.1% increase from the corresponding period in 2019, while a 4.7% decrease from the second quarter of 2020.
  • Non-GAAP[1] net income attributable to Noah shareholders for the third quarter of 2020 was RMB301.1 million (US$44.3 million), a 14.9% decrease from the corresponding period in 2019, and a 2.0% decrease from the second quarter of 2020.

THIRD QUARTER 2020 OPERATIONAL UPDATES

Wealth Management Business

The Company offers financial products and provides value-added services to high net worth clients in China and overseas for its wealth management business. Noah primarily distributes public securities, private equity, credit and insurance products denominated in RMB and other currencies.

  • Total number of registered clients as of September 30, 2020 was 350,409, a 21.6% increase from September 30, 2019 and a 5.5% increase from June 30, 2020.
  • Total number of active clients[2] which excluded mutual fund clients during the third quarter of 2020 was 4,466, a 31.0% increase from the corresponding period in 2019 and a 32.6% increase from the second quarter of 2020. Counting in mutual funds clients, the total number of clients who transacted with us during the third quarter of 2020 was 20,509, a 105.9% increase from the third quarter of 2019, and a 39.5% increase from the second quarter of 2020.
  • Aggregate value of financial products distributed during the third quarter of 2020 was RMB28.8 billion (US$4.2 billion), a 122.2% increase from the corresponding period in 2019, due to the significant increase in the distribution of public securities products and private equity products.

[2] "Active clients" for a given period refers to registered high net worth clients who purchase financial products distributed or provided by Noah during that given period, excluding clients who transacted on our online mutual fund platform.

 

Product type

Three months ended September 30,

2019

2020

(RMB in billions, except percentages)

Public securities products

7.5

57.5%

20.9

72.4%

Private equity products

3.5

26.8%

7.2

25.1%

Credit products

1.5

11.7%

0.1

0.4%

Other products

0.5

4.0%

0.6

2.1%

All products

13.0

100.0%

28.8

100.0%
  • Coverage network in mainland China included 266 service centers covering 79 cities as of September 30, 2020, compared with 264 service centers covering 78 cities as of June 30, 2020, which is stable quarter over quarter, and compared with 307 services centers covering 81 cities as of September 30, 2019, primarily as a result of consolidation of duplicate service centers in order to optimize costs and expenses since fourth quarter of 2019.
  • Number of relationship managers was 1,204 as of September 30, 2020, a 0.7% increase from June 30, 2020. The turnover rate of core "elite" relationship managers was 2.3%, compared with 1.4% as of June 30, 2020.

Asset Management Business

The Company’s asset management business is conducted through Gopher Asset Management Co., Ltd. ("Gopher Asset Management"), a leading alternative multi-asset manager in China also with international offices in Hong Kong, United States and Canada. Gopher Asset Management develops and manages assets ranging from private equity, real estate, public securities, credit to multi-strategy investments denominated in Renminbi and other currencies. 

  • Total assets under management as of September 30, 2020 were RMB155.7 billion (US$22.9 billion), a 2.3% decrease from June 30, 2020 due to the repayments of certain credit products and a 11.8% decrease from September 30, 2019.

Investment type

As of
June 30,
2020

Growth

Distribution/

Redemption

As of
September 30,
2020

(RMB billions, except percentages)

Private equity

107.7

67.6%

7.6

5.9

109.4

70.3%

Real estate

17.3

10.8%

0.1

0.6

16.8

10.7%

Credit

14.1

8.9%

0.1

2.5

11.7

7.5%

Public securities[3]

11.8

7.4%

0.9

1.9

10.8

7.0%

Multi-strategies

8.5

5.3%

0.3

1.8

7.0

4.5%

All Investments

159.4

100.0%

9.0

12.7

155.7

100.0%

 

[3] The distribution/redemption of public securities also includes market appreciation or depreciation.

Lending and Other Businesses

The Company’s lending business utilizes an advanced risk-management system to assess and facilitate short-term loans to high quality borrowers, often secured with collateral. The total amount of loans originated during the third quarter of 2020 was RMB0.1 billion, compared with RMB1.3 billion in the corresponding period of 2019 as our voluntary reduction of loan origination. Other businesses include an online financial advisory platform.

Ms. Jingbo Wang, co-founder and CEO of Noah, said, "We are very pleased to report a really strong quarter: our transaction value increased 122.2% from the third quarter in 2019 to RMB28.8 billion, driven by significantly higher portion of public securities and private equity distribution. Public securities transaction value grew to a record high of RMB20.9 billion. This indicates our continued success in our transformation to standardized products while maintaining the leading market position in private equities. We also continued to exit from single-counterparty private credit products. The total number of active clients grew 105.9% from the third quarter of 2019 to reach 20,509, benefiting from the onshore and offshore paralleled mutual fund platforms, Fund Smile and iNoah, which represents a recovery of client confidence. Noah Holdings celebrated its 10th Listing Anniversary on the NYSE a few weeks ago. We are grateful for the support the capital markets provided to us and have confidence in our continued growth in the coming decade."

THIRD QUARTER 2020 FINANCIAL RESULTS

Net Revenues

Net revenues for the third quarter of 2020 were RMB859.1 million (US$126.5 million), a 2.0% increase from the corresponding period in 2019, primarily driven by increased one-time commissions, recurring service fee revenues and performance-based income, and partially offset by decreased other service fees.

  • Wealth Management Business

– Net revenues from one-time commissions for the third quarter of 2020 were RMB189.6 million (US$27.9 million), a 26.8% increase from the corresponding period in 2019 due to an increase in financial products distributed in third quarter of 2020.
– Net revenues from recurring service fees for the third quarter of 2020 were RMB380.5 million (US$56.0 million), a 19.3% increase from the corresponding period in 2019. The increase was primarily due to the service fees recognized upon liquidation of certain credit products with higher fee rates.
– Net revenues from performance-based income for the third quarter of 2020 were RMB33.7 million (US$5.0 million), a 679.3% increase from the corresponding period of 2019, primarily due to an increase in performance-based income from public securities products.
– Net revenues from other service fees for the third quarter of 2020 were RMB23.8 million (US$3.5 million), a 65.7% decrease from the corresponding period in 2019, primarily due to less value-added services Noah offers to its high net worth clients during the COVID-19 epidemic.

  • Asset Management Business

– Net revenues from recurring service fees for the third quarter of 2020 were RMB179.5 million (US$26.4 million), a 10.4% decrease from the corresponding period in 2019. The decrease was primarily due to a decrease in assets under management.
– Net revenues from performance-based income for the third quarter of 2020 were RMB36.8 million (US$5.4 million), a 3.6% decrease from the corresponding period in 2019.

  • Lending and Other Businesses

– Net revenues for the third quarter of 2020 were RMB9.0 million (US$1.3 million), an 84.8% decrease from the corresponding period in 2019. The decrease was primarily due to reduced loan origination since the second half of 2019 as well as the ongoing impact of COVID-19.

Operating Costs and Expenses

Operating costs and expenses for the third quarter of 2020 were RMB511.8 million (US$75.4 million), a 15.8% decrease from the corresponding period in 2019. Operating costs and expenses primarily consisted of compensation and benefits of RMB362.5 million (US$53.4 million), selling expenses of RMB69.9 million (US$10.3 million), general and administrative expenses of RMB61.7 million (US$9.1 million) and other operating expenses of RMB23.1 million (US$3.4 million).

  • Operating costs and expenses for the wealth management business for the third quarter of 2020 were RMB379.3 million (US$55.9 million), a 17.3% decrease from the corresponding period in 2019, primarily due to a decrease in compensation and benefits as well as selling and general and administrative expenses.
  • Operating costs and expenses for the asset management business for the third quarter of 2020 were RMB108.7 million (US$16.0 million), a 14.7% increase from the corresponding period in 2019, primarily due to an increase in compensation and benefits.
  • Operating costs and expenses for the lending and other businesses for the third quarter of 2020 were RMB23.8 million (US$3.5 million), a 56.0% decrease from the corresponding period in 2019, primarily due to a decrease in compensation and benefits as well as other operating expenses.

Operating Margin

Operating margin for the third quarter of 2020 was 40.4%, compared with 27.8% for the corresponding period in 2019.

  • Operating margin for the wealth management business for the third quarter of 2020 was 39.6%, compared with 15.4% for the corresponding period in 2019, due to continuously operating efficiency improvement and less legal expenses incurred related to Camsing case.
  • Operating margin for the asset management business for the third quarter of 2020 was 51.1%, compared with 60.6% for the corresponding period in 2019.
  • Loss from operations for the lending and other businesses for the third quarter of 2020 was RMB14.8 million (US$2.2 million), compared with income from operations in the amount of RMB5.1 million in the corresponding period of 2019 due to reduced loan origination.

Investment Income

Investment income for the third quarter of 2020 was RMB0.8 million (US$0.1 million), compared with investment loss of RMB48.4 million for the corresponding period in 2019. There is little fair value change of investment for the third quarter of 2020, while the loss in the third quarter of 2019 was primarily due to changes in fair value of equity securities and other investments.

Income Tax Expenses

Income tax expenses for the third quarter of 2020 were RMB84.9 million (US$12.5 million), an 89.9% increase from the corresponding period in 2019, primarily due to higher taxable income. 

Income from Equity in Affiliates

Income from equity in affiliates for the third quarter of 2020 was RMB4.7 million (US$0.7 million), a 91.4% decrease from the corresponding period in 2019, primarily due to decrease of net income of the funds of funds we manage and invest in as the general partner or manager.

Net Income

  • Net Income

– Net income for the third quarter of 2020 was RMB283.8 million (US$41.8 million), a 39.3% increase compared to the corresponding period in 2019.
– Net margin for the third quarter of 2020 was 33.0%, up from 24.2% for the corresponding period in 2019.
– Net income attributable to Noah shareholders for the third quarter of 2020 was RMB285.6 million (US$42.1 million), a 49.1% increase from the corresponding period in 2019.
– Net margin attributable to Noah shareholders for the third quarter of 2020 was 33.2%, up from 22.8% for the corresponding period in 2019.
– Net income attributable to Noah shareholders per basic and diluted ADS for the third quarter of 2020 was RMB4.63 (US$0.68) and RMB4.60 (US$0.68), respectively, compared with RMB3.13 and RMB3.10 respectively, for the corresponding period in 2019.

  • Non-GAAP Net Income Attributable to Noah Shareholders

– Non-GAAP net income attributable to Noah shareholders for the third quarter of 2020 was RMB301.1 million (US$44.3 million), a 14.9% decrease from the corresponding period in 2019, due to one non-recurring gain from sale of equity securities in the amount of RMB137.3 million in the third quarter of 2019.
– Non-GAAP net margin attributable to Noah shareholders for the third quarter of 2020 was 35.0%, down from 42.0% for the corresponding period in 2019.
– Non-GAAP net income attributable to Noah shareholders per diluted ADS for the third quarter of 2020 was RMB4.85 (US$0.71), down from RMB5.73 for the corresponding period in 2019.

Balance Sheet and Cash Flow

As of September 30, 2020, the Company had RMB4,597.4 million (US$677.1 million) in cash and cash equivalents, compared with RMB3,669.2 million as of September 30, 2019 and RMB4,170.7 million as of June 30, 2020.

Net cash inflow from the Company’s operating activities during the third quarter of 2020 was RMB360.8 million (US$53.1 million), compared to net cash inflow of RMB220.4 million in the corresponding period in 2019. The increase was mainly due to increase in net income as well as changes in working capital.

Net cash inflow from the Company’s investing activities during the third quarter of 2020 was RMB165.7 million (US$24.4 million), compared to net cash inflow of RMB440.0 million in the corresponding period in 2019. The cash inflow was primarily due to proceeds from the disposal of various investments.

Net cash outflow from the Company’s financing activities was RMB22.9 million (US$3.4 million) in the third quarter of 2020, compared to net cash inflow of RMB40.6 million in the corresponding period in 2019, primarily due to the distribution to our non-controlling shareholders of a consolidated subsidiary.

OTHER COMPANY DEVELOPMENTS

The Company also announced that Mr. Yi Zhao, the president of the Company, has resigned from the Company due to personal reasons, which took effect on November 30, 2020. The Company currently has no plan to appoint a new president as his replacement and the duties of Mr. Zhao will be redirected amongst current members of the management team.

Ms. Jingbo Wang, co-founder and CEO of Noah, said, "On behalf of the Board and the company, I would like to thank Mr. Zhao for the invaluable support he has provided to Noah during the past several years, and wish him continued success in the future."

2020 FORECAST

The Company estimates that non-GAAP net income attributable to Noah shareholders for the full year 2020 will be in the range of RMB900 million to RMB1.0 billion. This forecast reflects management’s current business outlook and is subject to further change.

CONFERENCE CALL

Senior management will host a combined English and Chinese language conference call to discuss the Company’s third quarter 2020 unaudited financial results and recent business activities.

The conference call may be accessed with the following details:

 

Conference call details

Date/Time:

 

Monday, November 30, 2020 at 7:00 p.m., U.S. Eastern Time

Tuesday, December 1, 2020 at 8:00 a.m., Hong Kong Time

Dial in details:

– United States Toll Free

+1-888-317-6003

– Mainland China Toll Free

4001-206-115

– Hong Kong Toll Free

800-963-976

– International

1-412-317-6061

Conference Title:

Noah Holdings 3Q20 Earnings Conference Call

Participant Password:

6699621

A telephone replay will be available starting one hour after the end of the conference call until December 07, 2020 at +1-877-344-7529 (US Toll Free) or 1-412-317-0088 (International Toll). The replay access code is 10149103.

A live and archived webcast of the conference call will be available at Noah’s investor relations website under the News & Events section at http://ir.noahgroup.com.

DISCUSSION OF NON-GAAP MEASURES        

In addition to disclosing financial results prepared in accordance with U.S. GAAP, the Company’s earnings release contains non-GAAP financial measures excluding the effects of all forms of share-based compensation, fair value changes of equity investments (unrealized), adjustment for sale of equity securities and net of tax impact, if any. See "Reconciliation of GAAP to Non-GAAP Results" at the end of this press release.

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for financial measures prepared in accordance with U.S. GAAP. The financial results reported in accordance with U.S. GAAP and reconciliation of GAAP to non-GAAP results should be carefully evaluated. The non-GAAP financial measures used by the Company may be prepared differently from and, therefore, may not be comparable to similarly titled measures used by other companies.

When evaluating the Company’s operating performance in the periods presented, management reviewed the foregoing non-GAAP net income attributable to Noah shareholders and per diluted ADS and non-GAAP net margin attributable to Noah shareholders to supplement U.S. GAAP financial data. As such, the Company’s management believes that the presentation of the non-GAAP financial measures provides important supplemental information to investors regarding financial and business trends relating to its results of operations in a manner consistent with that used by management.  

ABOUT NOAH HOLDINGS LIMITED

Noah Holdings Limited (NYSE: NOAH) is a leading wealth and asset management service provider in China with a focus on high net worth individuals. In the first nine months of 2020, Noah distributed RMB73.4 billion (US$10.8 billion) of financial products. Through Gopher Asset Management, Noah had assets under management of RMB155.7 billion (US$22.9 billion) as of September 30, 2020.

Noah’s wealth management business primarily distributes private equity, public securities, credit and insurance products denominated in RMB and other currencies. Noah delivers customized financial solutions to clients through a network of 1,204 relationship managers across 266 service centers in 79 cities in mainland China, and serves the international investment needs of its clients through offices in Hong Kong, Taiwan, United States, Canada, Australia and Singapore. The Company’s wealth management business had 350,409 registered clients as of September 30, 2020. As a leading alternative multi-asset manager in China, Gopher Asset Management manages private equity, real estate, public securities, credit and multi-strategy investments denominated in Renminbi and other currencies. The Company also provides lending services and other businesses.

For more information, please visit Noah at ir.noahgroup.com.

FOREIGN CURRENCY TRANSLATION

In this announcement, the unaudited financial results for the third quarter of 2020 ended September 30, 2020 are stated in RMB. This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB6.7896 to US$1.00, the effective noon buying rate for September 30, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board.

SAFE HARBOR STATEMENT

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of 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," "confident" and similar statements. Among other things, the outlook for 2020 and quotations from management in this announcement, as well as Noah’s strategic and operational plans, contain forward-looking statements. Noah 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. Statements that are not historical facts, including statements about Noah’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause Noah’s actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: its goals and strategies; its future business development, financial condition and results of operations; the expected growth of the wealth management and asset management market in China and internationally; its expectations regarding demand for and market acceptance of the products it distributes; its expectations regarding keeping and strengthening its relationships with key clients; relevant government policies and regulations relating to its industries; its ability to attract and retain qualified employees; its ability to stay abreast of market trends and technological advances; its plans to invest in research and development to enhance its product choices and service offerings; competition in its industries in China and internationally; general economic and business conditions in China; and its ability to effectively protect its intellectual property rights and not to infringe on the intellectual property rights of others. Further information regarding these and other risks is included in Noah’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. All information provided in this press release and in the attachments is as of the date of this press release, and Noah does not undertake any obligation to update any such information, including forward-looking statements, as a result of new information, future events or otherwise, except as required under the applicable law.

 

 

— FINANCIAL AND OPERATIONAL TABLES FOLLOW —

Noah Holdings Limited

Condensed Consolidated Balance Sheets

(unaudited)

As of

June 30,

September 30,

September 30,

2020

2020

2020

RMB’000

RMB’000

USD’000

Assets

Current assets:

Cash and cash equivalents

4,170,704

4,597,443

677,130

Restricted cash

4,098

727

107

Short-term investments

61,151

55,382

8,157

Accounts receivable, net

334,411

360,189

53,050

Loans receivable, net

619,811

476,730

70,215

Amounts due from related parties

766,189

696,806

102,628

Other current assets

199,908

194,464

28,641

Total current assets

6,156,272

6,381,741

939,928

Long-term investments, net

836,442

824,562

121,445

Investment in affiliates

1,291,255

1,252,054

184,408

Property and equipment, net

262,648

250,106

36,837

Operating lease right-of-use assets, net

343,925

291,694

42,962

Deferred tax assets

164,749

178,358

26,269

Other non-current assets

148,590

165,559

24,382

Total Assets

9,203,881

9,344,074

1,376,231

Liabilities and Equity

Current liabilities:

Accrued payroll and welfare expenses

461,530

510,043

75,121

Income tax payable

77,381

136,582

20,116

Deferred revenues

163,608

125,092

18,424

Other current liabilities

351,690

318,964

46,978

Total current liabilities

1,054,209

1,090,681

160,639

Operating lease liabilities, non-current

346,241

289,076

42,576

Deferred tax liabilities

56,480

53,891

7,937

Other non-current liabilities

3,526

867

128

Total Liabilities 

1,460,456

1,434,515

211,280

Equity

7,743,425

7,909,559

1,164,951

Total Liabilities and Equity

9,203,881

9,344,074

1,376,231

 

 

Noah Holdings Limited

Condensed Consolidated Income Statements

(In RMB’000, except for USD data, per ADS data and percentages)

(unaudited)

Three months ended 

September 30,

September  30,

September  30,

Change

2019

2020

2020

Revenues:

RMB’000

RMB’000

USD’000

Revenues from others:

One-time commissions

129,786

125,000

18,411

(3.7%)

Recurring service fees

135,201

200,075

29,468

48.0%

Performance-based income

4,383

27,217

4,009

521.0%

Other service fees

131,950

33,985

5,005

(74.2%)

Total revenues from others

401,320

386,277

56,893

(3.7%)

Revenues from funds Gopher
   manages:

One-time commissions

21,137

71,112

10,474

236.4%

Recurring service fees

386,381

363,274

53,504

(6.0%)

Performance-based income

38,299

43,673

6,432

14.0%

Total revenues from funds
   Gopher manages

445,817

478,059

70,410

7.2%

Total revenues

847,137

864,336

127,303

2.0%

Less: VAT related surcharges 

(5,150)

(5,282)

(778)

2.6%

Net revenues

841,987

859,054

126,525

2.0%

Operating costs and expenses:

Compensation and benefits

Relationship managers

(148,572)

(144,977)

(21,353)

(2.4%)

Others

(246,277)

(217,549)

(32,042)

(11.7%)

Total compensation and
    benefits

 

(394,849)

 

(362,526)

 

(53,395)

(8.2%)

Selling expenses

(83,592)

(69,882)

(10,293)

(16.4%)

General and administrative
   expenses 

 

(88,455)

 

(61,656)

 

(9,081)

(30.3%)

Provision for credit losses

(15,995)

(5,166)

(761)

(67.7%)

Other operating expenses 

(52,838)

(23,129)

(3,407)

(56.2%)

Government grants 

28,049

10,552

1,554

(62.4%)

Total operating costs and
   expenses 

 

(607,680)

 

(511,807)

 

(75,383)

(15.8%)

Income from operations 

234,307

347,247

51,142

48.2%

Other income (expense):

Interest income 

13,774

12,080

1,779

(12.3%)

Investment (loss) income

(48,405)

751

111

N.A.

Other (expense) income

(5,114)

4,041

595

N.A.

Total other (expense) income

(39,745)

16,872

2,485

N.A.

Income before taxes and
   income from equity in
   affiliates

194,562

364,119

53,627

87.1%

Income tax expense

(44,737)

(84,944)

(12,511)

89.9%

Income from equity in affiliates

53,974

4,652

685

(91.4%)

Net income

203,799

283,827

41,801

39.3%

Less: net income (loss) 
   attributable to non-controlling
   interests

 

 

12,201

 

 

(1,789)

 

 

(263)

 

 

N.A.

Net income attributable to
   Noah shareholders 

191,598

285,616

42,064

49.1%

Income per ADS, basic

3.13

4.63

0.68

47.9%

Income per ADS, diluted

3.10

4.60

0.68

48.4%

 

Margin analysis:

Operating margin

27.8%

40.4%

40.4%

Net margin

24.2%

33.0%

33.0%

 

Weighted average ADS
   equivalent[1]:

Basic

61,308,638

61,723,592

61,723,592

Diluted

61,759,161

62,075,224

62,075,224

ADS equivalent outstanding at
   end of period

 

61,480,292

 

61,752,197

 

61,752,197

[1] Assumes all outstanding ordinary shares are represented by ADSs. Each ordinary share represents two
ADSs.

 

 

Noah Holdings Limited

Condensed Comprehensive Income Statements

(unaudited)

Three months ended 

September 30,

September 30,

September 30,

Change

2019

2020

2020

RMB’000

RMB’000

USD’000

Net income

203,799

283,827

41,801

39.3%

Other comprehensive income, net of tax:

Foreign currency translation adjustments

119,641

(108,684)

(16,007)

N.A.

Fair value fluctuation of available for sale
Investment (after tax)

(3,191)

–

–

N.A.

Comprehensive income

320,249

175,143

25,794

(45.3%)

Less: Comprehensive income (loss)
attributable to non-controlling interests

12,052

(1,694)

(249)

N.A.

Comprehensive income attributable to
Noah shareholders

308,197

176,837

26,043

(42.6%)

 

 

Noah Holdings Limited

Supplemental Information

(unaudited)

As of

September 30,
2019

September 30,
2020

Change

Number of registered clients 

288,245

350,409

21.6%

Number of relationship managers 

1,368

1,204

(12.0%)

Number of cities in mainland China under
coverage

81

79

(2.5%)

Three months ended

September 30,
2019

September 30,
2020

Change

(in millions of RMB, except number of active clients and
percentages)

Number of active clients[4]

3,409

4,466

31.0%

Number of active clients including mutual fund
clients

9,961

20,509

105.9%

Transaction value:

Public securities products

7,444

20,844

180.0%

Private equity products

3,477

7,222

107.7%

Credit products

1,517

112

(92.6%)

Other products

513

602

17.3%

Total transaction value

12,951

28,780

122.2%

[4] "Active clients" for a given period refers to registered high net worth clients who purchase financial products
distributed or provided by Noah during that given period, excluding clients who transacted on our online
mutual fund platform.

 

 

Noah Holdings Limited

Segment Condensed Income Statements

 (unaudited)

         Three months ended September 30, 2020

Wealth
Management

 Business

Asset
Management

Business

Lending and
Other
Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Revenues from others

One-time commissions

124,645

355

–

125,000

Recurring service fees

199,423

652

–

200,075

Performance-based income

27,210

7

–

27,217

Other service fees

23,992

886

9,107

33,985

Total revenues from others

375,270

1,900

9,107

386,277

Revenues from funds Gopher manages

One-time commissions

66,201

4,911

–

71,112

Recurring service fees

183,594

179,680

–

363,274

Performance-based income

6,751

36,922

–

43,673

Total revenues from funds Gopher
   manages

256,546

221,513

–

478,059

Total revenues

631,816

223,413

9,107

864,336

Less: VAT related surcharges

(4,123)

(1,003)

(156)

(5,282)

Net revenues

627,693

222,410

8,951

859,054

Operating costs and expenses:

Compensation and benefits

Relationship managers

(144,534)

–

(443)

(144,977)

Others

(118,854)

(83,269)

(15,426)

(217,549)

Total compensation and benefits

(263,388)

(83,269)

(15,869)

(362,526)

Selling expenses

(58,836)

(8,759)

(2,287)

(69,882)

General and administrative
   expenses

 

(39,357)

 

(17,425)

 

(4,874)

 

(61,656)

Provision for credit losses

(6,898)

–

1,732

(5,166)

Other operating expenses

(17,298)

(1,848)

(3,983)

(23,129)

Government grants

6,471

2,597

1,484

10,552

Total operating costs and expenses

(379,306)

(108,704)

(23,797)

(511,807)

Income (loss) from operations

248,387

113,706

(14,846)

347,247

 

 

Noah Holdings Limited

Segment Condensed Income Statements

(unaudited)

Three months ended September 30, 2019

Wealth
Management
Business

Asset
Management
Business

Lending and
Other
Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Revenues from others

One-time commissions

129,099

687

–

129,786

Recurring service fees

133,825

1,376

–

135,201

Performance-based income

4,346

37

–

4,383

Other service fees

69,841

1,197

60,912

131,950

Total revenues from others

337,111

3,297

60,912

401,320

Revenues from funds Gopher
   manages

One-time commissions

21,053

84

–

21,137

Recurring service fees

186,251

200,130

–

386,381

Performance-based income

–

38,299

–

38,299

Total revenues from funds Gopher
   manages

207,304

238,513

–

445,817

Total revenues

544,415

241,810

60,912

847,137

Less: VAT related surcharges 

(2,067)

(1,368)

(1,715)

(5,150)

Net revenues

542,348

240,442

59,197

841,987

Operating costs and expenses:

Compensation and benefits

Relationship managers

(148,572)

–

–

(148,572)

Others

(155,102)

(66,914)

(24,261)

(246,277)

Total compensation and benefits

(303,674)

(66,914)

(24,261)

(394,849)

Selling expenses

(69,563)

(9,315)

(4,714)

(83,592)

General and administrative
   expenses 

 

(61,363)

(17,916)

(9,176)

(88,455)

Provision for credit losses

(16,007)

–

12

(15,995)

Other operating expenses

(33,905)

(2,947)

(15,986)

(52,838)

Government grants 

25,740

2,302

7

28,049

Total operating costs and expenses 

(458,772)

(94,790)

(54,118)

(607,680)

Income from operations

83,576

145,652

5,079

234,307

 

 

Noah Holdings Limited

Supplement Revenue Information by Geography

 (unaudited)

         Three months ended September 30, 2020

Wealth
Management

 Business

Asset
Management

Business

Lending and
Other
Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Mainland China

512,820

184,449

9,107

706,376

Hong Kong

76,584

27,276

–

103,860

Others

42,412

11,688

–

54,100

Total revenues

631,816

223,413

9,107

864,336

 

 

         Three months ended September 30, 2019

Wealth
Management

 Business

Asset
Management

Business

Lending and
Other
Businesses

Total

RMB’000

RMB’000

RMB’000

RMB’000

Revenues:

Mainland China

347,744

212,137

60,912

620,793

Hong Kong

139,406

26,829

–

166,235

Others

57,265

2,844

–

60,109

Total revenues

544,415

241,810

60,912

847,137

 

 

Noah Holdings Limited

Reconciliation of GAAP to Non-GAAP Results

(In RMB, except for per ADS data and percentages)

(unaudited)[5]

Three months ended

September 30,

September 30,

Change

2019

2020

RMB’000

RMB’000

Net income attributable to Noah shareholders

191,598

285,616

49.1%

Adjustment for share-based compensation

21,310

14,351

(32.7%)

Less: loss from fair value changes of equity securities
   (unrealized)

 

(6,047)

 

(968)

(84.0%)

Add: gains from sales of equity securities

139,816

3,523

(97.5%)

Less: tax effect of adjustments

5,059

3,384

(33.1%)

Adjusted net income attributable to Noah shareholders
   (non-GAAP)

353,712

301,074

(14.9%)

Net margin attributable to Noah shareholders

22.8%

33.2%

Non-GAAP net margin attributable to Noah shareholders

42.0%

35.0%

Net income attributable to Noah shareholders per ADS,
   diluted

3.10

4.60

48.4%

Non-GAAP net income attributable to Noah shareholders
   per ADS, diluted

5.73

4.85

(15.4%)

[5] Noah’s Non-GAAP financial measures are its corresponding GAAP financial measures excluding the
effects of all forms of share-based compensation, fair value changes of equity securities (unrealized),
adjustment for sale of equity securities and net of tax impact, if any.

 

 

Related Links :

http://www.noahwm.com

PR Newswire

Visa Invites Asia Pacific’s Top Startups to Unlock Their Global Potential

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Startups across the region can apply from today to seek one of up to six places in the Visa Accelerator Program

SINGAPORE, Dec. 1, 2020 — Visa, the world’s leader in digital payments, is announcing an accelerator program for startups across Asia Pacific that are looking to expand their businesses into new markets. Visa will select an elite group of up to six startups to be part of the first program cohort. The Visa Accelerator Program will focus on creating defined commercial opportunities for the startups to collaborate with Visa and its extensive network of bank and merchant partners in the region.

The Visa Accelerator Program is designed for startups that have launched successful solutions in their home markets, but are looking towards the next stage of growth. As the engine of global commerce, Visa is uniquely positioned to help startups break into new geographies and reach new customer groups.

"In Visa’s ongoing work with the startup community, we often see companies face challenges when taking their business from a local success story to becoming a player in multiple markets," said Chris Clark, regional president, Asia Pacific, Visa. "Visa has global expertise that can help startups take their expansion plans off the white board and into the real world."

Digital economy, small businesses, open data all key focus areas

Startups in the Visa Accelerator Program should be ready to work on some of the most pressing financial and technological opportunities in Asia Pacific. Visa is looking for startups that want to address areas such as:

  • Expanding access to the digital economy to consumers and businesses that may be underserved or cash-dependent
  • Supporting small businesses as they grapple with changing technology demands and the ongoing impacts of the COVID-19 pandemic
  • Leveraging the growing open data environment in the region to develop more personalised banking and shopping experiences
  • Developing new ways of moving money that aren’t dependent on traditional credit and debit cards

"There is no shortage of fantastic solutions coming out of the Asia Pacific startup community. What’s most important to Visa is how we can support those solutions getting elevated to a stage where in a few months’ time they could be pitched as a commercial deal to a leading bank, retailer or technology company in the region. A big differentiator for the Visa Accelerator Program is our concentration on a small number of startups that are truly ready to unlock that next level," said Clark.

Join the program

The Visa Accelerator Program is a new part of Visa’s broader set of platforms and activities for the startup community in Asia Pacific. With its dedication to supporting international expansion, the Visa Accelerator Program is the right fit for startups that are Series A and above, have a long-term commitment to Asia Pacific growth and existing operations in the region, and have a market-validated, proven solution.

For more information, including how to apply, visit: https://www.visa.com.sg/apaccelerator 

About Visa Inc.

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, visa.com/blog and @VisaNews.

PR Newswire

OneConnect Launches “Linked Port” in China’s Greater Bay Area

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SHENZHEN, China, Nov. 30, 2020 — OneConnect Financial Technology Co., Ltd. ("OneConnect" or the "Company") (NYSE: OCFT), an associate of the Ping An Group, and China Merchants Group recently launched the Guangdong-Hong Kong-Macao Greater Bay Area Port Logistics and Trade Facilitation Blockchain Platform Project for the ports Shekou and Shunde.

The "linked port" technology ecosystem for the two ports is the first step to ultimately improve cross-border trade efficiency across the whole Greater Bay Area, one of the world’s largest port zones. With increasing container throughput and cross-border trade, it is vital for the Greater Bay Area to integrate its 37 ports to remain competitive.

The technology project is part of the new infrastructure plan promoted by the Shenzhen municipal government and other governmental departments.

In a promising pilot, 200 twenty-foot equivalents (TEUs) of real goods were imported and exported between the Shekou and Shunde ports. The technology linking the two ports reduced import and export-related logistics processes from five to seven days to just two days. Transportation and customs declaration costs for enterprises also fell by 30%.

The integrated technology linking trade participants operating in the Greater Bay Area will improve communication, streamline port clearance processes and enhance the overall competitiveness of ports within the region.

The linked port project will use advanced technologies, including blockchain, big data, artificial intelligence (AI) and cloud computing, to help create smart ports, and enable smart regulation, smart trade and smart finance processes. OneConnect is a technical supporter of the project. It constructed the core port logistics data standards and the blockchain platform.

Using these technologies, trade participants will be able to connect with customs officials efficiently through a shared blockchain network across the Greater Bay Area. Trade participants will be able to swiftly identify the authenticity of any trade transaction through the validation of cross-border trade-related information registered on the blockchain.

The project focuses on four areas: smart ports, smart regulation, smart trade and smart finance. China Merchants Group’s port in Western Shenzhen will act as a key smart port that allows sharing of resources through blockchain technology, promoting efficient logistics and creating a digital ecosystem for port shipping in the Greater Bay Area.

Smart regulation will improve cooperation between custom officials and enterprises with a collaborative customs clearance process. Two separate customs declaration procedures will be simplified into one, with cross-validation capabilities made possible by blockchain technology and real-time information capture through Internet of Things (IoT)-based processes.

Trading enterprises will also benefit from smart trade solutions for convenient customs clearance, efficient logistics and digital finance, which will create a trust-based, convenient, efficient, and traceable trading environment. Digital financial services such as export tax rebate financing and cross-border e-commerce financing will enhance integrated trade finance services in the Greater Bay Area and build up core competitiveness.

As data on the blockchain cannot be tampered with and allows for automatic cross-verification with the data being encrypted, OneConnect will ensure the logistics data can be traceable and impossible to change. The linked port will greatly enhance authentication processes for logistics and transportation.

The platform will also issue real-time warnings to assist the customs departments in managing any sensitive data regarding ships, containers and cargo.

About OneConnect

OneConnect is a leading technology-as-a-service platform for financial institutions in China. The Company’s platform provides cloud-native technology solutions that integrate extensive financial services industry expertise with market-leading technology. The Company’s solutions provide technology applications and technology-enabled business services to financial institutions. Together they enable the Company’s customers’ digital transformations, which help them increase revenue, manage risks, improve efficiency, enhance service quality and reduce costs.

Our technology-as-a-service platform strategically covers multiple verticals in the financial services industry, including banking, insurance and asset management, across the full scope of their businesses – from sales and marketing and risk management to customer services, as well as technology infrastructure such as data management, program development, and cloud services.