360 DigiTech Announces First Quarter 2021 Unaudited Financial Results

May 27, 2021 at 5:00 PM EDT

SHANGHAI, May 27, 2021 (GLOBE NEWSWIRE) -- 360 DigiTech, Inc. (QFIN) (“360 DigiTech” or the “Company”), a data driven, technology empowered digital platform, today announced its unaudited financial results for the first quarter ended March 31, 2021.

First Quarter 2021 Business Highlights

  • As of March 31, 2021, our digital platform has connected 105 financial institutional partners and 169.1 million consumers*1 with potential credit needs, cumulatively, an increase of 19.4% from 141.6 million a year ago.
  • Users with approved credit lines*2 was 32.7 million as of March 31, 2021, an increase of 25.1% from 26.1 million as of March 31, 2020.
  • Cumulative borrowers with successful drawdown, including repeat borrowers was 21.0 million as of March 31, 2021, an increase of 24.9% from 16.8 million as of March 31, 2020.
  • As of March 31, 2021, we had cooperated with 17 leading internet traffic platforms under the embedded finance (API) model, reaching 5.3 million potential customers cumulatively.
  • In the first quarter of 2021, financial institutional partners originated 23,347,135 loans*3, totaling RMB74,149 million*4, an increase of 40.4% from RMB52,807 million in the same period of 2020.
  • Out of those loans originated by financial institutions, RMB37,245 million was under capital-light model and other technology solutions, representing 50.2% of the total, an increase of 211.9% from RMB11,941 million in the same period of 2020.
  • Financial institutional partners retained total outstanding loan balance*5 of RMB101,920 million as of March 31, 2021, an increase of 37.5% from RMB74,125 million as of March 31, 2020.
  • RMB42,775 million of such loan balance was under capital-light model and other technology solutions, an increase of 159.0% from RMB16,515 million as of March 31, 2020.
  • Financial institutions granted approximately RMB5.8 billion credit lines to small and micro-sized enterprises (SMEs)*6 through our platform in the first quarter of 2021, an increase of 67% from approximately RMB3.5 billion in the prior quarter.
  • The weighted average contractual tenor of loans originated by financial institutions across our platform in the first quarter of 2021 was approximately 10.17 months, compared with 8.96 months in the same period of 2020, and 10.41 months in the fourth quarter of 2020.
  • 90 day+ delinquency ratio*7 of loans originated by financial institutions across our platform was 1.29% as of March 31, 2021.
  • Repeat borrower contribution*8 of loans originated by financial institutions across our platform for the first quarter of 2021 was 87.1%.

1 Refers to cumulative registered users across our platform.
2 “Users with approved credit lines” refers to the total number of users who had submitted their credit applications and were approved with a credit line by the Company at the end of each period.
3 Including 11,313,267 loans across “V-pocket”, and 12,033,868 loans across other products.
4 Refers to the total principal amount of loans facilitated and originated during the given period, including loans volume facilitated through Intelligence Credit Engine (“ICE”) and other technology solutions. “ICE” is an open platform on our “360 Jietiao” APP, we match borrowers and financial institutions through big data and cloud computing technology on “ICE”, and provide pre-loan investigation report of borrowers. For loans facilitated through “ICE”, the Company do not provide post-loan risk management nor bear principal risk.
5 “Total outstanding loan balance” refers to the total amount of principal outstanding for loans facilitated and originated at the end of each period, including loan balance for “ICE” and other technology solutions, excluding loans delinquent for more than 180 days.
6 SME loans are Loans issued to SMEs with e-commerce operations, with business sales receipt, and/or with business taxation record.
7 “90 day+ delinquency ratio” refers to the outstanding principal balance of on- and off-balance sheet loans that were 90 to 179 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans across our platform as of a specific date. Loans that are charged-off and loans under “ICE” and other technology solutions are not included in the delinquency rate calculation.
8 “Repeat borrower contribution” for a given period refers to (i) the principal amount of loans borrowed during that period by borrowers who had historically made at least one successful drawdown, divided by (ii) the total loan facilitation and origination volume through our platform during that period.

First Quarter 2021 Financial Highlights

  • Total net revenue increased by 13.1% to RMB3,599.2 million (US$549.3 million) from RMB3,182.9 million in the same period of 2020.
  • Income from operations increased by 745.7% to RMB1,557.8 million (US$237.8 million) from RMB184.2 million in the same period of 2020.
  • Non-GAAP*9 income from operations increased by 533.0% to RMB1,617.3 million (US$246.9 million) from RMB255.5 million in the same period of 2020.
  • Operating margin was 43.3%. Non-GAAP operating margin was 44.9%.
  • Net income increased by 635.4% to RMB1,347.2 million (US$205.6 million) from RMB183.2 million in the same period of 2020.
  • Non-GAAP net income increased by 452.8% to RMB1,406.8 million (US$214.7 million) from RMB254.5 million in the same period of 2020.
  • Net income margin was 37.4%. Non-GAAP net income margin was 39.1%.

9 Non-GAAP income from operations (Adjusted Income from operations), Non-GAAP net income (Adjusted net income), Non-GAAP operating margin and Non-GAAP net income margin are non-GAAP financial measures. For more information on this 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.

Mr. Haisheng Wu, Chief Executive Officer and Director of 360 DigiTech, commented, “We are very pleased to report a great quarter that exceeded our expectations across multiple fronts of operations. During the quarter, financial institutions originated record setting RMB74.1 billion loans, up 40% year-on-year. More importantly, we made significant progress in technology driven strategic transition and upgrading. During the quarter, over 50% of the loans was facilitated under the capital-light model and other technology solutions *10, exceeding our initial target by a wide margin. This marked a milestone of fundamental change to the nature of our business, from capital driven to technology driven.

“As of March 31, 2021 our embedded finance model gained further popularity among our business partners with 17 leading traffic platforms on board, contributing over 35% of new customer acquisition. On the SME front, we have ramped the operations rapidly with 67% sequential growth as both online and offline channels gained meaningful traction. Our unique owner + SME “dual core” risk management models have performed exceptionally well thus far, ensuring better than expected return in our SME operations. Our strategic collaboration with Kincheng Bank of Tianjin Co., Ltd. (“KCB”) also progressed faster than planned. KCB has already become the largest institution partner in terms of loan facilitation volume.

“We are very excited to start 2021 with a big bang! As macro economy in China continues to recover, we have experienced robust customer demand and further improvement in asset quality. We also believe recent regulatory actions will ultimately provide additional regulatory clarity for the leading platforms like us and pave the way for a healthy and consolidated industry. As our strategic initiatives achieved outstanding results across our operations, we further position ourselves to become one of the premium digital platforms in the long run. We feel more confident and thrilled than ever.”

“We are very pleased to report another quarter of record profitability in a seasonally slow period. Total revenue was RMB3.60 billion and non-GAAP net income reached RMB1.41 billion. The strong financial performance was driven by better than expected macro recovery, solid contribution from our business initiatives, and consistent executions,” Mr. Alex Xu, Chief Financial Officer, commented. “Continued improvement in asset quality and increased contribution from capital light model also drove noticeable improvement in operating margins for the quarter. At the end of the quarter we had approximately RMB9.2 billion in cash and cash equivalent on the balance sheet, of which approximately RMB6.0 billion was non-restricted. We are off to a robust start in 2021 and the strong momentum continues into the current quarter, which gives us increased confidence to exceed our operational targets for 2021.”

Mr. Yan Zheng, Chief Risk Officer, added, “Our key risk management metrics continued to set new record during the quarter as overall asset quality continued to improve. Among the key leading indicators, Day-1 delinquency*11 decreased to approximately 5.0% in the first quarter, a new low in our corporate history. Meanwhile the 30-day collection rate*12 continued to stay above 90%. As we continue to take prudent approach in overall risk management operations, the effectiveness of our systems should enable us to support a faster growth of business while maintaining outstanding overall asset quality throughout 2021.”

10 "We've used mainly data technology tools and AI risk management systems in the process of providing such services as loan facilitation, post-facilitation and borrowers' referral to our customers. Revenue from these technology powered services amount to 52% of our total net revenue. "
11 "D1 delinquency rate" is defined as (i) the total amount of principal that became overdue as of a specified date, divided by (ii) the total amount of principal that was due for repayment as of such date.
12 "M1 collection rate" is defined as (i) the amount of principal that was repaid in one month among the total amount of principal that became overdue as a specified date, divided by (ii) the total amount of principal that became overdue as a specified date.

First Quarter 2021 Financial Results

Total net revenues was RMB3,599.2 million (US$549.3 million), compared to RMB3,182.9 million in the same period of 2020, and RMB3,337.5 million in the prior quarter.

Net revenue from Credit Driven Services was RMB2,451.3 million (US$374.1 million), compared to RMB2,810.1 million in the same period of 2020, and RMB2,557.1 million in the prior quarter.

Loan facilitation and servicing fees-capital heavy were RMB724.3 million (US$110.6 million), compared to RMB1,167.1 million in the same period of 2020 and RMB854.8 million in the prior quarter. The year-over-year and sequential declines were primarily due to decrease in facilitation volume under capital-heavy model.

Financing income*13 was RMB409.4 million (US$62.5 million), compared to RMB609.4 million in the same period of 2020 and RMB415.9 million in the prior quarter. The year-over-year and sequential declines were primarily due to decrease in outstanding balance of on-balance sheet loans.

Revenue from releasing of guarantee liabilities was RMB1,295.4 million (US$197.7 million), compared to RMB1,006.2 million in the same period of 2020, and RMB1,251.6 million in the prior quarter. The year-over-year growth was mainly due to increase in outstanding balance of capital-heavy loans.

Other services fees were RMB22.2 million (US$3.4 million), compared to RMB27.4 million in the same period of 2020, and RMB34.8 million in the prior quarter. The year-over-year and sequential declines were primarily due to fluctuation of late payment fees.

Net revenue from Platform Services was RMB1,147.9 million (US$175.2 million), compared to RMB372.8 million in the same period of 2020 and RMB780.4 million in the prior quarter.

Loan facilitation and servicing fees-capital light were RMB993.9 million (US$151.7 million), compared to RMB303.6 million in the same period of 2020 and RMB681.1 million in the prior quarter. The year-over-year and sequential growth was primarily due to growth in loan facilitation volume under capital-light model.

Referral services fees were RMB126.3 million (US$19.3 million), compared to RMB54.6 million in the same period of 2020 and RMB78.2 million in the prior quarter. The year-over-year and sequential increases were in part due to the facilitation volume growth through ICE.

Other services fees were RMB27.6 million (US$4.2 million), compared to RMB14.7 million in the same period of 2020 and RMB21.1 million in the prior quarter. The year-over-year and sequential increases were mainly due to growth in late payment fees as loan facilitation volume under capital-light model increased.

Total operating costs and expenses were RMB2,041.4 million (US$311.6 million), compared to RMB2,998.7 million in the same period of 2020 and RMB2,096.1 million in the prior quarter.

Facilitation, origination and servicing expenses were RMB477.8 million (US$72.9 million), compared to RMB347.7 million in the same period of 2020 and RMB444.5 million in the prior quarter. The year-over-year and sequential increases was primarily due to growth in loan facilitation and origination volume.

Funding costs were RMB79.1 million (US$12.1 million), compared to RMB158.6 million in the same period of 2020 and RMB131.4 million in the prior quarter. The year-over-year and sequential declines were mainly due to increase in volume of loans funded by ABS and microcredit with lower funding costs.

Sales and marketing expenses were RMB385.0 million (US$58.8 million), compared to RMB223.0 million in the same period of 2020 and RMB316.4 million in the prior quarter. The year-over-year and sequential increases were mainly due to a much more proactive customer acquisition strategy, and reflected higher online user acquisition costs as overall business activities continued to expand in China.

General and administrative expenses were RMB104.5 million (US$15.9 million), compared to RMB108.7 million in the same period of 2020 and RMB135.3 million in the prior quarter. The year-over-year and sequential declines were due to decreases in share based compensations and our continued effort to improve operational efficiency.

Provision for loans receivable was RMB134.9 million (US$20.6 million), compared to RMB307.3 million in the same period of 2020 and RMB105.5 million in the prior quarter. The year-over-year decline was mainly due to continued improvement in asset quality. The sequential increase reflects the Company’s consistently prudent approach in assessing provisions.

Provision for financial assets receivable was RMB45.1 million (US$6.9 million), compared to RMB93.7 million in the same period of 2020 and RMB57.5 million in the prior quarter. The year-over-year and sequential declines were in part due to decrease in facilitation volume under capital-heavy model.

Provision for accounts receivable and contract assets was RMB56.4 million (US$8.6 million), compared to RMB57.0 million in the same period of 2020 and RMB23.3 million in the prior quarter. The year-over-year decreases were in part due to improvement in asset quality of loans under capital-light model. The sequential increase was primarily due to growth in loan facilitation volume under capital-light model.

Provision for contingent liability was RMB758.7 million (US$115.8 million), compared to RMB1,702.8 million in the same period of 2020 and RMB882.3 million in the prior quarter. The yea-over-year decline was mainly due to continued improvement in asset quality. The sequential decline was mainly due to decrease in facilitation volume under capital-heavy model.

Income from operations was RMB1,557.8 million (US$237.8 million), compared to RMB184.2 million in the same period of 2020 and RMB1,241.3 million in the prior quarter.

Non-GAAP income from operations was RMB1,617.3 million (US$246.9 million), compared to RMB255.5 million in the same period of 2020 and RMB1,349.1 million in the prior quarter.

Operating margin was 43.3%. Non-GAAP operating margin was 44.9%.

Income before income tax expense was RMB1,605.3 million (US$245.0 million), compared to RMB228.1 million in the same period of 2020 and RMB1,351.9 million in the prior quarter.

Net income attributed to the Company was RMB1,347.4 million (US$205.7 million), compared to RMB183.4 million in the same period of 2020 and RMB1,204.8 million in the prior quarter.

Non-GAAP net income attributed to the Company was RMB1,407.0 million (US$214.7 million), compared to RMB254.8 million in the same period of 2020 and RMB1,312.5 million in the prior quarter.

Net income margin was 37.4%. Non-GAAP net income margin was 39.1%.

Net income per fully diluted ADS was RMB8.44 (US$1.28).

Non-GAAP net income per fully diluted ADS was RMB8.81 (US$1.34).

Weighted average basic ADS used in calculating GAAP and non-GAAP net income per ADS was 152.44 million.

Weighted average diluted ADS used in calculating GAAP and non-GAAP net income per ADS was 159.71 million.

13 “Financing income” is generated from loans facilitated through the Company’s platform funded by the consolidated trusts and Fuzhou Microcredit, which charge fees and interests from borrowers.

M1+ Delinquency Rate by Vintage and M6+ Delinquency Rate by Vintage

The following charts and tables display the historical cumulative M1+ delinquency rates by loan facilitation and origination vintage and M6+ delinquency rates by loan facilitation and origination vintage for all loans facilitated and originated through the company’s platform, loans that are charged-off and loans under “ICE” and other technology solutions are not included in the charts:

http://ml.globenewswire.com/Resource/Download/0bf3da5b-0e03-4118-a917-1ff4c869f98a

http://ml.globenewswire.com/Resource/Download/e72fe0dd-4bb5-4c56-9831-7086ae446195

Business Outlook

While we intend to keep our tradition of prudent decision making and business planning, we are encouraged to see continued strong business momentum so far in 2021. As such we now expect total loan facilitation and origination volume for the second quarter of 2021 to be between RMB85 billion and RMB87 billion, representing sequential growth of 15% to 17%. Meanwhile, for the time being, we would like to maintain our 2021 full year loan facilitation and origination volume target unchanged at between RMB310 billion and RMB330 billion, representing year-on-year growth of 26% to 34%. This forecast reflects the Company’s current and preliminary views, which is subject to material change.

Conference Call

360 DigiTech’s management team will host an earnings conference call at 8:30 PM U.S. Eastern Time on Thursday, May 27, 2021 (8:30 AM Beijing Time on May 28).

United States:+1-646-722-4977
Hong Kong:+852-3027-6500
Mainland China:400-821-0637
International:+65-6408-5782
PIN:18454785#

Please dial in 15 minutes before the call is scheduled to begin and provide the PIN to join the call.

A telephone replay of the call will be available after the conclusion of the conference call until June 2, 2021:

United States:+1-646-982-0473
International:+65-6408-5781
Access code:319340700#

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of the Company's website at http://ir.360jinrong.net/investor-relations.

About 360 DigiTech

360 DigiTech, Inc. (NASDAQ: QFIN) (“360 DigiTech” or the “Company”) is a data driven, technology empowered digital platform. Through its platform the Company enables financial institutions to provide better and targeted products and services to a broader consumer base. The Company also offers standardized risk management service, in the form of SaaS modules to institutional clients. When coupled with its partnership with 360 Group, the Company’s solutions created noticeable advantages in customer acquisition, funding optimization, risk assessment and post-lending management.

For more information, please visit: ir.360shuke.com

Use of Non-GAAP Financial Measures Statement

To supplement our financial results presented in accordance with U.S. GAAP, we use non-GAAP financial measure, which is adjusted from results based on U.S. GAAP to exclude share-based compensation expenses. Reconciliations of our non-GAAP financial measures to our U.S. GAAP financial measures are set forth in tables at the end of this earnings release, which provide more details on the non-GAAP financial measures.

We use non-GAAP income from operation, non-GAAP operation margin, non-GAAP net income, non-GAAP net income margin, Non-GAAP net income attributed to the Company and Non-GAAP net income per fully diluted ADS in evaluating our operating results and for financial and operational decision-making purposes. Non-GAAP income from operation represents income from operation excluding share-based compensation expenses, non-GAAP net income represents net income excluding share-based compensation expenses, non-GAAP net income attributed to the Company represents net income attributed to the Company excluding share-based compensation expenses and non-GAAP net income per fully diluted ADS represents net income per fully diluted ADS excluding share-based compensation. Such adjustments have no impact on income tax. We believe that non-GAAP income from operation and non-GAAP net income help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in results based on U.S. GAAP. We believe that non-GAAP income from operation and non-GAAP net income provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. Our 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 results. In addition, our calculation of non-GAAP financial information may be different from the calculation used by other companies, and therefore comparability may be limited.

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 RMB6.5518 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 March 31, 2021.

Safe Harbor Statement

Any forward-looking statements contained in this announcement are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. 360 DigiTech may also make written or oral forward-looking statements in its reports to the U.S. Securities and Exchange Commission ("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. Statements that are not historical facts, including the Company’s business outlook, beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, which factors include but not limited to the following: the Company’s growth strategies, the Company’s cooperation with 360 Group, changes in laws and regulations governing the online consumer finance industry and online microcredit companies, the recognition of the Company’s brand, market acceptance of the Company’s products, trends and developments in the consumer finance industry, governmental policies relating to the consumer finance industry, general economic conditions in China and around the globe, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks and uncertainties is included in 360 DigiTech's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and 360 DigiTech does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

360 DigiTech
E-mail: ir@360shuke.com

Christensen

In China
Mr. Eric Yuan
Phone: +86-138-0111-0739
E-mail: Eyuan@christensenir.com

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


 
Unaudited Condensed Consolidated Balance Sheets
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”) except for number of shares and per share data, or otherwise noted)
 
 December 31,March 31,March 31,
 202020212021
 RMBRMBUSD
ASSETS   
Current assets:   
Cash and cash equivalents4,418,416 5,974,026 911,814 
Restricted cash2,355,850 2,281,046 348,156 
Security deposit prepaid to third-party guarantee companies915,144 980,182 149,605 
Funds receivable from third party payment service providers131,464 89,345 13,637 
Accounts receivable and contract assets, net2,394,528 2,343,299 357,657 
Financial assets receivable, net3,565,482 3,802,989 580,449 
Amounts due from related parties193,305 448,468 68,450 
Loans receivable, net7,500,629 7,307,272 1,115,308 
Prepaid expenses and other assets401,224 410,349 62,630 
Total current assets21,876,042 23,636,976 3,607,706 
Non-current assets:   
Accounts receivable and contract assets, net-non current307,937 278,744 42,545 
Financial assets receivable, net-non current645,326 595,895 90,951 
Amounts due from related parties- 404,593 61,753 
Loans receivable, net-non current87,685.00 168,786 25,762 
Property and equipment, net19,360 19,564 2,986 
Intangible assets3,403 3,761 574 
Deferred tax assets1,398,562 1,487,501 227,037 
Other non-current assets48,990 39,219 5,986 
Total non-current assets2,511,263 2,998,063 457,594 
TOTAL ASSETS24,387,305 26,635,039 4,065,300 
    
LIABILITIES AND EQUITY LIABILITIES   
Current liabilities:   
Payable to investors of the consolidated trusts-current3,117,634 2,603,897 397,432 
Accrued expenses and other current liabilities809,761 1,084,153 165,474 
Amounts due to related parties71,562 98,850 15,087 
Short term loans186,800 231,898 35,395 
Guarantee liabilities-stand ready4,173,497 4,318,247 659,093 
Guarantee liabilities-contingent3,543,454 3,583,032 546,877 
Income tax payable1,227,314 1,232,439 188,107 
Other tax payable254,486 308,880 47,144 
Total current liabilities13,384,508 13,461,396 2,054,609 
Non-current liabilities:   
Deferred tax liabilities37,843 152,290 23,244 
Payable to investors of the consolidated trusts-noncurrent1,468,890 2,118,969 323,418 
Other long-term liabilities14,974 8,280 1,264 
Total non-current liabilities1,521,707 2,279,539 347,926 
TOTAL LIABILITIES14,906,215 15,740,935 2,402,535 
Ordinary shares21 21 3 
Additional paid-in capital5,417,406 5,476,951 835,946 
Retained earnings4,137,542 5,484,983 837,172 
Other comprehensive income (loss)(74,391)(68,170)(10,405)
TOTAL 360 DIGITECH INC EQUITY9,480,578 10,893,785 1,662,716 
Noncontrolling interests512 319 49 
TOTAL EQUITY9,481,090 10,894,104 1,662,765 
TOTAL LIABILITIES AND EQUITY24,387,305 26,635,039 4,065,300 
     


 
Unaudited Condensed Consolidated Statements of Operations
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”) except for number of shares and per share data, or otherwise noted)
 
    
 Three months ended March 31,
 2020 2021 2021 
 RMBRMBUSD
Credit driven services2,810,050 2,451,343 374,148 
    Loan facilitation and servicing fees-capital heavy1,167,119 724,311 110,551 
    Financing income609,396 409,440 62,493 
    Revenue from releasing of guarantee liabilities1,006,176 1,295,427 197,721 
    Other services fees27,359 22,165 3,383 
Platform services372,845 1,147,866 175,199 
    Loan facilitation and servicing fees-capital light303,622 993,889 151,697 
    Referral services fees54,566 126,330 19,282 
    Other services fees14,657 27,647 4,220 
Total net revenue3,182,895 3,599,209 549,347 
    Facilitation, origination and servicing347,653 477,756 72,920 
    Funding costs158,614 79,078 12,070 
    Sales and marketing223,008 385,009 58,764 
    General and administrative108,731 104,496 15,949 
    Provision for loans receivable307,259 134,908 20,591 
    Provision for financial assets receivable93,724 45,060 6,877 
    Provision for accounts receivable and contract assets56,976 56,433 8,613 
    Provision for contingent liabilities1,702,757 758,676 115,797 
Total operating costs and expenses2,998,722 2,041,416 311,581 
Income from operations184,173 1,557,793 237,766 
    Interest (expense) income, net9,750 36,384 5,553 
    Foreign exchange gain (loss)(28,572)(7,992)(1,220)
    Other income, net62,721 19,114 2,917 
Income before income tax expense228,072 1,605,299 245,016 
    Income taxes benefit (expense)(44,917)(258,051)(39,386)
Net income183,155 1,347,248 205,630 
    Net loss attributable to noncontrolling interests253 193 29 
Net income attributable to ordinary shareholders of the Company183,408 1,347,441 205,659 
Net income per ordinary share attributable to ordinary shareholders of 360 DigiTech, Inc.   
Basic0.62 4.42 0.67 
Diluted0.61 4.22 0.64 
    
Net income per ADS attributable to ordinary shareholders of 360 DigiTech, Inc.   
Basic1.24 8.84 1.34 
Diluted1.22 8.44 1.28 
    
Weighted average shares used in calculating net income per ordinary share   
Basic293,592,210 304,883,875 304,883,875 
Diluted301,626,149 319,419,632 319,419,632 
    


 
Unaudited Condensed Consolidated Statements of Cash Flows
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”) except for number of shares and per share data, or otherwise noted)
    
 Three months ended March 31,
 20202021 2021 
 RMBRMBUSD
Net cash provided by operating activities1,372,5131,753,048 267,567 
Net cash provided (used in) by investing activities298,375(455,334)(69,498)
Net cash provided by financing activities386,470184,528 28,164 
Effect of foreign exchange rate changes2,388(1,436)(218)
Net increase in cash and cash equivalents2,059,7461,480,806 226,015 
Cash, cash equivalents, and restricted cash, beginning of year3,835,8506,774,266 1,033,955 
Cash, cash equivalents, and restricted cash, end of year5,895,5968,255,072 1,259,970 
      


 
Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/Income
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”) except for number of shares and per share data, or otherwise noted)
     
 Three months ended March 31,
 202020212021
 RMBRMBUSD
Net income183,1551,347,248205,630
Other comprehensive income, net of tax of nil:   
Foreign currency translation adjustment30,9606,221950
Other comprehensive income30,9606,221950
Total comprehensive income214,1151,353,469206,580
Net loss attributable to noncontrolling interests25319329
Comprehensive income attributable to ordinary shareholders214,3681,353,662206,609
    


 
Unaudited Reconciliations of GAAP and Non-GAAP Results
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“USD”) except for number of shares and per share data, or otherwise noted) 
     
 Three months ended March 31,
 2020 2021 2021
 RMBRMBUSD
Reconciliation of Non-GAAP Net Income to Net Income   
Net income183,155 1,347,248 205,630
Add: Share-based compensation expenses71,374 59,546 9,088
Non-GAAP net income254,529 1,406,794 214,718
Non-GAAP net income margin8.0%39.1% 
GAAP net income margin5.8%37.4% 
    
Net income attributable to shareholders of 360 DigiTech, Inc183,408 1,347,441 205,659
Add: Share-based compensation expenses71,374 59,546 9,088
Non-GAAP net income attributable to shareholders of 360 DigiTech, Inc254,782 1,406,987 214,747
Weighted average ADS used in calculating net income per ordinary share for both GAAP and non-GAAP EPS150,813,075 159,709,816 159,709,816
Net income per ADS attributable to ordinary shareholders of 360 DigiTech, Inc. -diluted1.22 8.44 1.28
Non-GAAP net income per ADS attributable to ordinary shareholders of 360 DigiTech, Inc. -diluted1.69 8.81 1.34
    
Reconciliation of Non-GAAP Income from operations to Income from operations   
Income from operations184,173 1,557,793 237,766
Add: Share-based compensation expenses71,374 59,546 9,088
Non-GAAP Income from operations255,547 1,617,339 246,854
Non-GAAP operating margin8.0%44.9% 
GAAP operating margin5.8%43.3% 
      

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