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PR Newswire

One third of Australians approaching retirement have never received any advice reveals Smart

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LONDON, Dec. 8, 2020 — YouGov research: One third of respondents – and one quarter of those over 55 – said that they did not understand the retirement finance options available to them well

  • Financial advisors (53%), Superannuation funds (50%) or government websites (41%) are the places most people would expect to get advice
  • However, these sources do not appear to live up to expectations. When asked where they had received the most useful advice, 29% of 55+ respondents said financial advisors and only 16% mentioned their superannuation fund
  • Smart Retire guides users through retirement, giving them the confidence to make informed decisions through a simple pot solution

New research commissioned by global retirement technology provider, Smart, carried out by YouGov, has found that an astounding 34% of Australians aged 55+ (38% aged 45-55) have never received any advice on retirement.  The research also found that two thirds (66%) of respondents consider online tools important when planning for their retirement, with 30% feeling that following the covid pandemic, managing retirement finances online was more important than before.

The news comes as Smart, which now manages almost AUS $2.7bn of assets, launches Smart Retire (www.smartretire.com.au), an innovative product that gives people flexibility to plan and manage retirement savings in a personalised way. Flexibility in retirement is increasingly important as one third of savers expect to continue to work part time during retirement and will need the opportunity to flex their income as necessary.

Will Wynne, Group Managing Director, Smart, said:

"Retirement is complex and we know people need help if they are to make the most of their savings. That’s why we’ve invested tens of thousands of hours conducting research, testing and developing our new Smart Retire technology solution which gives people flexibility and control, while guiding them through important decisions to ensure they are using their money in the right way. Importantly our approach, which helps people navigate their retirement options, bridges the advice gap while empowering people to make the most of their retirement savings."

Smart Retire

Smart Retire guides members through the complexities in the run up to retirement, filling the so-called ‘advice gap’ through guidance rather than often expensive advice. Members can use this solution in conjunction with personalised advice from a professional. 

Designed by Smart’s in-house research and UX team, Smart Retire has been built to be as flexible as possible, allowing users to scenario plan and change their retirement strategy as required.

Built with a ‘four pots’ model, based on user research, Smart Retire accommodates life’s unpredictability and ensures users avoid both under-spending and running out of money in their retirement.

Of the four pots, two are income pots:

  • Flexible income pot – monthly income in the early years of retirement
  • Later life pot – leave money invested to buy a guaranteed income from an annuity provider later on in retirement

And two savings pots:

  • Rainy day pot – dip in to this pot for emergencies
  • Inheritance pot – put money aside to leave to a loved one

Interestingly, Smart’s user research shows that the inheritance pot isn’t required by Australian  retirees, with property being the preferred method of transferring wealth – this has been further supported by the findings from the Retirement Income Review.

The output of Smart’s research will initially see the solution configured to three ‘buckets’ for the Australian market (Flexible income, Later years and Buffer), and will also incorporate the Age Pension, providing members with a single view of their retirement and giving them confidence to plan and spend effectively.

Through the development of the roadmap, there will be a greater focus on non-super assets such as housing wealth, to ensure that Australian’s are equipped with the ability to maximise their retirement income.

Mark Vaughan, Managing Director of financial services consulting firm, QMV, said:

"QMV is excited to see innovation and international perspectives enter the market, providing opportunities for helping members to gain cost effective access to self-service retirement planning tools. This is particularly relevant given the recent release of the Retirement Incomes Review report and continued focus on superannuation policy settings."

Smart Retire will initially be available to members of the Smart Pension Master Trust in the UK with it being rolled out globally in 2021.

Recognising that consumers have long enjoyed technology advancements in banking, payments and investments, Smart’s global mission is to transform pensions savings and financial well-being across all generations around the world through technology, and bring the pensions sector into the 21st century.

Notes to editor:

Smart’s research, carried out among 6,000 people across the UK, USA, and Australia, shows millions of people coming up to retirement across the globe are crying out for technology to solve these problems.

About Smart:

Smart is a global savings and investments technology platform provider, co-founded in 2014 by Andrew Evans, Group CEO, and Will Wynne, Group MD. Link Group, Legal & General Investment Management (LGIM), J.P. Morgan, Natixis Investment Managers and Barclays are all strategic investors in Smart.

The Smart platform powers the award-winning master trust, Smart Pension Master Trust. Launched in 2015, the Smart Pension Master Trust has grown from £100 million in AUM to £1.5 billion in two years. It is overseen by independent professional trustees and regulated by The Pensions Regulator. Smart Pension is a signatory of the UN Principles of Responsible Investing (PRI).

Visit https://www.smart.co/  for more information.

Related Links :

https://www.smart.co/

PR Newswire

Maxonrow partners with National Chiao Tung University

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Collaboratively establishes research center for technological breakthrough discovery works

HSINCHU, Dec. 4, 2020 — Blockchain tech startup company Maxonrow and Taiwan’s leading university National Chiao Tung University jointly established the "Technology Management and Blockchain Research Center" which is dedicated towards the development of blockchain technology applications, promote cross-domain integrated application systems, and contribute to the development of blockchain-industry ecosystem alliance. The inauguration ceremony of research center was held recently on 24th November, 2020.

The "Technology Management and Blockchain Research Center" which was founded by National Chiao Tung University‘s Institute of Technology Management Professor Grace Lin and Maxonrow Taiwan Chief Technology Officer (CTO) Don Hsieh. The former is positioned as director of the research center, whereas the latter is taking on technical director role.

In addition, the research center successfully collaborated with many public sector organizations, academic units and well-known corporations, including Chunghwa Telecom, General Chamber of Commerce of the Republic of China, Taiwan Blockchain Alliance, Hsinchu City Government, and Industrial Technology Research Institute — the very initial collaboration that has received firm support from political, business and academic circle.

At present, Taiwan is at a crucial moment for the approval of STO virtual securities financial regulations. Also, the domestic demand for blockchain technology on commercial applications is gradually sprouting and expanding. National Chiao Tung University is well-known for its science and engineering, which comprises of leading academicians and conducive research atmosphere, has occupied the global leading position in electronics, information communications, optoelectronics and many other relevant fields.

By collaborating with blockchain tech startup company Maxonrow, which has leading advantages of being highly familiar with blockchain and matured True Asset Issuing (TAI) technology, the research center aims to focus on:

  • Medical biotechnology industry
  • Agricultural and fishery production along with its sales record management
  • FinTech applications
  • Smart logistics and cold chain
  • Smart Factory Industry 4.0
  • Renewable energy management
  • Enterprise information security certificate software

With the evolution of blockchain technology, rapid adaptation and successful transformation has became a key factor in today’s organizations. The research center aims to assist organizations in seeking a compatible future development, and building a highly interactive ecosystem alliance between industry experts and academic achievers. The "Technology Management and Blockchain Research Centre" is looking forward to realizing the true potential of blockchain applications by introducing cutting-edge technology in near future.

For more information on Maxonrow, visit www.maxonrow.com.

About Maxonrow Ltd ("Maxonrow")

Maxonrow is a leading technology company committed to building a safe and efficient digital world. The company develops an array of products and services powered by blockchain technology, focusing on increasing security and efficiency in digital processes, including DMS (document management system), tokenization services (FT & NFT) and digital identity wallet solutions. Maxonrow works proactively with global regulators and governments to build a healthy ecosystem for new technologies to flourish. With Maxonrow, companies can enjoy all the benefits blockchain offers without sacrificing regulatory oversight.

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

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

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

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.

PR Newswire

BlueVisor Takes Second Place in Fintech Unicorn Battle in Asia

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SEOUL, South Korea, Nov. 27, 2020 — BlueVisor, a member company of Born2Global Centre, placed second in the latest Fintech Unicorn Battle in Asia, receiving recognition for its technological prowess and business viability.

The Fintech Unicorn Battle in Asia is a global pitch competition organized by Startup.Network. It provides an opportunity for investors to discover competitive startups and an opportunity for such startups to attract investment and enable their global growth.

The competition was divided into four categories: fintech, AI, healthtech, and other technologies. Over 1,800 companies from 125 countries around the world participated, and about 200 advanced to the main competition.

Selected as one of the top 10 companies in the fintech category, BlueVisor presented its plan to the judges and addressed their questions in the final round, which was streamed online. Over 40 investors from R3i Ventures and other companies participated as judges.

BlueVisor introduced a proposal for its flagship item HIGHBUFF, an AI asset management platform, which was highly rated for its concept, potential market, and competitiveness by judges. It won second place in the overall vote.

Yong-guk Hwang, CEO of Bluevisor, and Seo-yeon Hong, CMO of Bluevisor, said, "Placing second in a competition for promising global technology companies in AI, IoT, fintech, logistics, and other areas, means that we’ve received international recognition for our technology and marketability. Through this competition, international investors now know BlueVisor, and we are now presented with opportunities to partner with other fintech and IT companies. We hope to develop into a global fintech company."

In addition to the existing AI asset management platform HIGHBUFF, BlueVisor has launched HIGHBUFF Interview, an AI interview solution that allows objective interviews in the age of contact-free communication. Further, the company has developed I.EARN, an AI content management solution, and is working on marketing these solutions, which are establishing themselves in the industry as products that limit human risk and offer time-saving and other material benefits.

For more detailed information on Bluevisor, visit https://bluevisor.kr/eng/  and https://play.google.com/store/apps/details?id=ai.entrusta.www.eng_hb&hl=da.

Media Contact

BlueVisor: yrkim@bluevisor.kr 
Born2Global Centre: jlee@born2global.com

PR Newswire

Mercurity Fintech Holding Inc. Reports Third Quarter 2020 Financial Results

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BEIJING, Nov. 27, 2020 — Mercurity Fintech Holding Inc. (Nasdaq: MFH) today announced its unaudited financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 Financial and Operating Highlights

  • Q3 2020 GAAP revenues of $41 thousand, compared to $580 thousand in Q3 2019.
  • Q3 2020 GAAP gross profit of $11 thousand, compared to $464 thousand in Q3 2019.
  • Q3 2020 GAAP net loss of $631 thousand, compared to a profit of $396 thousand in Q3 2019.
  • Q3 2020 Non-GAAP net loss of $427 thousand, compared to $396 net income in Q3 2019.

Commenting on the quarter, Ms. Alva Zhou, Chairperson of the Board and Chief Executive Officer, said, "As challenges of the pandemic persist and due to our new focus on capturing the opportunity of the digital assets industry, the Q3 2020 operating results reflect the stage of our initial business transition. We are building our team and products to execute this strategic transition."

Mr. Erez Simha, Chief Financial Officer and Interim President of the company, commented, "I joined the company in late August this year because I believe in the tremendous opportunity that the digital assets industry represents. Since I joined, I have been working with our executive teams to analyze our potential addressable markets, forming our business strategy, aligning our product road map and building a team that is necessary to execute it. We have launched and introduced our DeFi platform earlier this month and plan to introduce additional products linked to our DeFi platform in the next few months. We will invest majority of our resources and focus on bringing a comprehensive DeFi offering to the market."

FINANCIAL RESULTS

Summary of Third Quarter Results:

Revenues for the third quarter of 2020 were $41 thousand compared to $580 thousand in the same period last year. The revenues for the third quarter of 2020 consisted of software development fees earned from a new client who entered into a contract with the company in July 2020. The software development and maintenance contracts signed in 2019 were completed in the second quarter of 2020.

Cost of revenues for the third quarter of 2020 were $30 thousand, compared to $116 thousand in the same period last year. The cost of revenues consisted primarily of the direct cost related to the contract signed in July 2020. 

Gross profit for the third quarter of 2020 was $11 thousand, compared to $464 thousand in the same period last year.

General and administrative expenses for the third quarter of 2020 were $644 thousand, compared to $87 thousand in the same period last year. The general and administrative expenses consisted primarily of employee’s costs, office expenses and professional fees. The increase in general and administrative expenses primarily reflected increases in employees’ costs and office expenses as a result of our acquisition of NBpay Investment Limited in March 2020.  In the third quarter of 2020, share-based compensation of approximately $204 thousand was included in employees’ costs and professional fees.

Loss from operations for the third quarter of 2020 was $633 thousand compared to income from operations of $377 thousand in the same period last year.

Loss before provision for income taxes for the third quarter of 2020 was $631 thousand compared to an income before taxes of $396 thousand in the same period last year.

Non-GAAP net (loss)/income attributable to Mercurity Fintech Holding Inc. is a non-GAAP measure which excludes amortization of acquired intangible assets, impairment loss, share-based compensation, and related provision for income tax expenses. Non-GAAP net loss attributable to Mercurity Fintech Holding Inc. for the third quarter of 2020 was $427 thousand compared to a net income of $396 thousand in the same period of last year.

Cash and cash equivalents as of September 30, 2020 were $187 thousand, compared to $435 thousand as of December 31, 2019.

Total shareholders’ equity as of September 30, 2020 was $11.2 million, compared to total shareholders’ equity of $8.0 million as of December 31, 2019.

Non-GAAP Measures

To supplement the Company’s consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("U.S.GAAP"), the Company uses non-GAAP financial measures, including Non-GAAP (loss)/income from continuing operations and Non-GAAP net (loss)/income attributable to the Company, that are adjusted from results based on U.S. GAAP to exclude amortization of acquired intangible assets, impairment loss, share-based compensation and related provision for income tax expenses. The non-GAAP financial information is provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the historical and current financial performance of the Company’s operations and prospects for the future. The non-GAAP financial information should be considered in addition to results prepared in accordance with U.S. GAAP but should not be considered a substitute for or superior to U.S. GAAP financial results. In addition, the Company’s calculation of this non-GAAP financial information may be different from the calculation used by other companies, and therefore comparability may be limited. A limitation of using these non-GAAP financial measures is that amortization of acquired intangible assets, impairment of goodwill, share-based compensation and related provision for income tax benefits have been and may continue to be for the foreseeable future significant recurring expenses in the Company’s results of operations. The Company compensates for these limitations by providing reconciliations of non-GAAP financial measures to U.S. GAAP financial measures. Please see the reconciliation tables at the end of this earnings release.

BUSINESS OUTLOOK

Due to uncertainty as a result of the continued global pandemic and new product development, the Company will not provide a financial forecast for Q4 2020.

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 "aim," "anticipate," "believe," "estimate," "expect," "hope," "going forward," "intend, " "ought to, " "plan, " "project," "potential," "seek," "may," "might," "can," "could," "will," "would," "shall," "should," "is likely to" and the negative form of these words and other similar expressions. Among other things, statements that are not historical facts, including statements about the Company’s beliefs and expectations are or contain 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 statement. All information provided in this press release is as of the date of this press release and is based on assumptions that the Company believes to be reasonable as of this date, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

CONTACTS
Xingyan Gao
Mercurity Fintech Holding Inc.
ir@mercurity.com
Tel: +86 (10) 5360-6428

 

 

MERCURITY FINTECH HOLDING INC

CONSOLIDATED STATEMENTS OF OPERATIONS

(US dollars in thousands, except for number of shares and per share (or ADS) data)

Three Months Ended Sepetmber 30,

Nine months Ended Sepetmber 30,

2020

2019

2020

2019

Revenues

Third parties 

$                       41

$                580

$            1,433

$                  610

Total revenues

41

580

1,433

610

Cost of revenues

(30)

(116)

(109)

(153)

Gross profit 

$                       11

$                464

$            1,324

$                  457

Operating expenses:

General and administrative

(644)

(87)

(1,400)

(164)

Impairment loss

–

–

(835)

–

Total operating expenses

$                    (644)

$                 (87)

$           (2,235)

$                (164)

(Loss)/income from operations

$                    (633)

$                377

$              (911)

$                  293

Interest income, net

0

0

3

0

Other income/(Expenses), net

2

19

(28)

19

(Loss)/income before provision for income taxes

$                    (631)

$                396

$              (936)

$                  312

Income tax benefits

–

–

–

–

(Loss)/Income from continuing operations

$                    (631)

$                396

$              (936)

$                  312

Discontinued operations:

Loss from discontinued operations

$                          –

$                     –

$                    –

$             (1,421)

Net loss

$                    (631)

$                396

$              (936)

$             (1,109)

Net loss attributable to holders of ordinary shares of  
Mercurity Fintech Holding Inc.

$                    (631)

$                396

$              (936)

$             (1,109)

Net loss per ordinary share

Basic

$                   (0.00)

$               0.00

$             (0.00)

$               (0.00)

Diluted

$                   (0.00)

$               0.00

$             (0.00)

$               (0.00)

Weighted average shares used in calculating net loss
per ordinary share

Basic

2,388,513,555

1,619,027,948

2,388,513,555

1,619,027,948

Diluted

2,388,513,555

1,619,027,948

2,388,513,555

1,619,027,948

 

 

MERCURITY FINTECH HOLDING INC

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(US dollars in thousands) 

Three Months Ended Sepetmber 30,

Nine Months Ended Sepetmber 30,

2020

2019

2020

2019

Net loss

$                    (631)

$                396

$              (936)

$             (1,109)

Other comprehensive (loss)/income, net of tax of $nil:

$                    –

Change in cumulative foreign currency translation adjustment

368

(125)

363

(165)

Comprehensive loss

$                    (263)

$                271

$              (573)

$             (1,274)

 

 

MERCURITY FINTECH HOLDING INC

CONSOLIDATED BALANCE SHEETS 

(US dollars in thousands)

September 30, 2020

December 31, 2019

ASSETS:

Current assets:

Cash and cash equivalents

$                187

$            435

Accounts receivable

1,964

1,648

Prepaid expenses and other current assets, net

114

8

Amounts due from related parties

660

43

Total current assets

2,925

2,134

Non-current assets:

Intangible assets, net

373

1,208

Goodwill

8,455

5,529

Total non-current assets

8,828

6,737

TOTAL ASSETS

$           11,753

$         8,871

LIABILITIES AND SHAREHOLDER’S EQUITY :

Current liabilities:

Accrued expenses and other current liabilities

$                520

$            836

Amounts due to related parties

30

–

Total current liabilities

$                550

$            836

TOTAL LIABILITIES

$                550

$            836

Commitments and contingencies

Shareholders’ equity:

Ordinary shares

$                  30

$              21

Additional paid-in capital

649,063

645,331

Accumulated deficits

(639,304)

(638,368)

Accumulated other comprehensive (loss)/income

1,414

1,051

Total shareholders’ (deficit)/equity

$           11,203

$         8,035

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$           11,753

$         8,871

 

 

MERCURITY FINTECH HOLDING INC

Reconciliation of Non-GAAP financial measures to comparable GAAP measures

(US dollars in thousands)

Three Months Ended Sepetmber 30,

Nine Months Ended Sepetmber 30,

2020

2019

2020

2019

Income/(Loss) from continuing operations

$         (631)

$                     396

$         (936)

$                     312

Net loss attributable to Mercurity Fintech Holding Inc.

(631)

396

(936)

(1,109)

Amortization of acquired intangible assets (a)

–

–

–

–

Provision for income tax expenses (b)

–

–

–

140

Share-based compensation (c)

204

–

204

(293)

Impairment loss (d)

–

–

835

–

Non-GAAP (loss)/income from continuing operations (2019 periods (d), 2020 periods (c)(d))

$         (427)

$                     396

$          103

$                     312

Non-GAAP net (loss)/income attributable to Mercurity Fintech Holding Inc.(a)(b)(c)(d)

$         (427)

$                     396

$          103

$                (1,262)

Notes:

(a) Adjustment to exclude amortization of acquired intangible assets

(b) Adjustment to exclude provision for income tax expenses

(c) Adjustment to exclude share-based compensation

(d) Adjustment to exclude impairment loss

 

 

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