A leading fintech platform, FinVolution Group ("FinVolution" or the "Company") (NYSE: FINV), today announced its unaudited financial results for the third quarter of 2023, which ended on September 30, 2023.
China Market Operational Highlights for the Third Quarter of 2023
Operational Highlights for the Third Quarter of 2023 in the International Market
Highlights of the financial results for the third quarter of 2023 
As stated by Tiezheng Li, Chief Executive Officer of FinVolution, the company's total transaction volume reached RMB51.3 billion during the third quarter of 2023, representing a 12.7% increase over the previous year, while the outstanding loan balance reached RMB65.9 billion, representing a 9.3% increase over the previous year.
"We have found that our tactical approach of maintaining progressive growth in the Chinese market and pursuing faster growth in the international markets under the difficult macro conditions in the markets where we operate has been very effective under the unbalanced macro conditions in the markets where we operate". It was reported that the volume of international transactions reached RMB2 billion during the third quarter.A total of 21 billion dollars were spent, which is a 99 percent increase year-over-year.The outstanding loan balance reached RMB100 million, an increase of 1% over the previous quarter.There are 29 billion people in the world, a rise of 101 percent.An increase of 6% over the previous year. Our international revenue increased by RMB584 million as a result of the increased volume of international transactions and outstanding loan balances.A total of 8.8 million, an increase of 67 percent.An increase of 3% year-over-year and a contribution of 18%.3% of the total revenue in the quarter," he concluded.. I am Lia
I am Lia
As FinVolution's Chief Financial Officer, Mr. Jiayuan Xu pointed out, "We are encouraged by the results we achieved in the third quarter." In the third quarter of 2023, the company generated a net revenue of RMB3,197.5 million (US$438.3 million), a 7.6% increase over the previous quarter. The total liquidity position of our company as of the end of September 2023 exceeded RMB8,525.2 million (US$1,168.5 million) representing a year-over-year increase of 58.2% as well as a sequential increase of 4.0%."
The company has consistently optimized the returns for its shareholders through its annual dividend policy and share repurchase policy, which have been consistently efficient. During the first nine months of 2023, we deployed approximately US$65.9 million to repurchase our stock, demonstrating our strong commitment to enhancing shareholders' value," concluded Mr. Xu.
Financial Results for the Third Quarter of 2023
As a result of the growth in guarantee income and post-loan facilitation service fees, the company's net revenue for the third quarter of 2023 increased by 7.6% to RMB3,197.5 million (US$438.3 million) from RMB2,971.4 million for the same period of 2022.
In the third quarter of 2023, loan facilitation service fees decreased by 3.3% to RMB1,129.8 million (US$154.8 million), a decrease of 3.3% from RMB1,168.7 million in the same period of 2022. It is evident that the decrease in service fee rates, partially offset by the increase in transaction volume, was primarily responsible for this decrease. 
It is estimated that the post-facilitation service fee for the third quarter of 2023 will increase by 1.3% to RMB498.9 million (US$68.4 million) from RMB492.3 million in the same period in 2022, primarily due to the increase in outstanding loans served by the Company and the roll-over effect of deferred transaction fees.
In the third quarter of 2023, guarantee income increased by 40.1% from RMB822.2 million in the same period of 2022 to RMB1,152.0 million (US$157.9 million). Due to an increase in off-balance sheet loan outstanding balances and the rolling impact of deferred guarantee income, this increase was primarily due to the increase in outstanding loan balances. In the course of the loan origination process, the fair value of quality assurance commitments is released as guarantee income over the course of the loan. 
As a result of the decrease in the transaction volume of consolidated trust accounts, the net interest income for the third quarter of 2023 decreased by 17.1% to RMB273.3 million (US$37.5 million), compared to RMB329.6 million for the same period of 2022.
In addition to the above, other revenues decreased by 9.6% for the third quarter of 2023 from RMB158.7 million in the same period of 2022 to RMB143.5 million (US$19.7 million), primarily due to the disposal of a pilot-run business that contributed to the decline. 
According to the third quarter of 2023, origination, servicing expenses, and other revenue costs increased by 5.1% to RMB520.0 million (US$71.3 million) from RMB495.0 million for the same period of 2022. As a result of the increased volume of transactions, facilitation costs and loan collection expenses increased as a result of these increases. 
It has been reported that sales and marketing expenses remained relatively stable for the third quarter of 2023 at RMB530.1 million (US$72.7 million), compared with RMB535.2 million for the same period in 2022, as a result of our proactive efforts to acquire more new borrowers in both China and internationally.
Due to the increase in investments for technology development, R&D expenses increased by 5.6% to RMB132.6 million (US$18.2 million) for the third quarter of 2023, from RMB125.6 million for the same period of 2022. This increase is the result of an increase in investments for technology development.
Due to the improved efficiency of the company's operations, the general and administrative expenses decreased by 1.8% to RMB98.6 million (US$13.5 million) for the third quarter of 2023 as compared to RMB100.4 million for the same period of 2022.
As a result of the decrease in provision from other third-party platforms, the provision for accounts receivable and contract assets decreased by 21.6% for the third quarter of 2023 to RMB86.9 million (US$11.9 million) from RMB110.9 million for the third quarter of 2022. 
During the third quarter of 2023, the provision for loans receivable increased by 34.7% to RMB176.8 million (US$24.2 million), up from RMB131.3 million during the same period of 2022, primarily due to the rise in loan volume and outstanding loan balances on international markets.
The credit losses for quality assurance commitments increased by 35.2% to RMB1099.2 million (US$150.7 million) for the third quarter of 2023, compared to RMB813.2 million for the same period of 2022. There was a significant increase in the loan volume as well as the outstanding loan balances on both the Chinese and international markets, resulting in the increase in the amount of loans outstanding.
There was a 16.1% decrease in operating profit for the third quarter of 2023 from RMB659.8 million for the same period of 2022 to RMB553.4 million (US$75.8 million) for the third quarter of 2023.
It is important to note that the non-GAAP adjusted operating income, which excludes the share-based compensation expenses before taxes, was RMB583.8 million (US$80.0 million) for the third quarter of 2023, representing a decrease of 14.5% compared with RMB683.0 million for the same period of 2022.
For the third quarter of 2023, other income increased by 113.0% to RMB124.4 million (US$17.0 million) compared to RMB58.4 million for the same period in 2022, which is mainly due to the additional gains from the increased investment in investment products and government subsidies.
There was an income tax expense of RMB103.1 million (US$14.1 million) for the third quarter of 2023, compared with the RMB112.7 million for the same period of 2022. The decrease in income tax expense is primarily due to the decline in pre-tax profit for the third quarter of 2023.
In the third quarter of 2023, the company made a net profit of RMB574.7 million (US$78.8 million), compared with RMB605.5 million in the same period of 2022.
Attributable to ordinary shareholders of the Company, the net profit for the third quarter of 2023 was RMB566.0 million (US$77.6 million), compared to RMB599.0 million for the same period of 2022.
According to the third quarter of 2023, the diluted net profit per ADS was RMB2.05 (US$0.28) and the diluted net profit per share was RMB0.41 (US$0.06), both of which remained unchanged from the third quarter of 2022. It was reported for the third quarter of 2023 that non-GAAP diluted net profits per ADS were RMB2.16 (US$0.30) and non-GAAP diluted net profits per share were RMB0.43 (US$0.06), an increase of 1.4% over the same period in 2022. There are five Class A ordinary shares of the Company for every ADS.
It is reported that as of September 30, 2023, the Company had cash and cash equivalents of RMB5,700.7 million (US$781.3 million) and short-term investments, mainly in wealth management products and term deposits, of RMB2,824.5 million (US$387.1 million).
As of September 30, 2023, the following chart and table provide an indication of the historical cumulative 30-day plus past due delinquency rates by loan origination vintage in China's Mainland for all products facilitated through the Company's online platform as of that date:
The chart can be viewed by clicking here.
An update on the repurchase of shares
In August of 2023, the board of directors of the Company approved the third repurchase program of the Company, which allows the Company to repurchase its own Class A ordinary shares in the form of ADSs at an aggregate value of up to $150 million, beginning on August 29, 2023 and ending on August 29, 2025.
A total of US$65.9 million was invested in repurchasing its own Class A ordinary shares in the form of ADSs in the first nine months of 2023, as the Company has committed to repurchasing its own shares in the form of ADSs. The Company had cumulatively repurchased its own Class A ordinary shares in the form of ADSs with an aggregate value of approximately US$248.2 million as of September 30, 2023 by combining its historical and existing share repurchase programs.
Call for a conference call
The management of the Company will host a conference call in order to discuss the Company's earnings on November 20, 2023 at 7:30 p.m. U.S. Eastern Time (8:30 a.m. Beijing/Hong Kong Time on November 21, 2023).
The following are the dial-in details for the earnings conference call:
There is a requirement that participants dial in at least five minutes before the scheduled start time of the event and ask to be connected to the "FinVolution Group" call.
It should also be noted that a live and archived webcast of the conference call will be made available on the Company's investor relations website at https://ir.finvgroup.com as well.
There will be a replay of the conference call available approximately one hour after the conclusion of the live call until November 27, 2023. You can access the replay by dialing the following telephone numbers:
The FinVolution Group is a global provider of financial solutions 
With a strong brand recognition in China and the international markets, FinVolution Group aims to be a leading platform that connects borrowers of the young generation with financial institutions worldwide. Since its establishment in 2007, the Company has pioneered China's online consumer finance industry and has developed innovative technologies and has accumulated extensive experience in the core areas of credit risk assessment, fraud detection, big data analysis and artificial intelligence to position itself as a leader in the field.. Powered by proprietary cutting-edge technologies, the Company's platform offers a highly automated loan transaction process, which enables a more user-friendly process for its clients.. The Company had over 175 employees at the end of September 30, 2023.In total, there are over 0 million registered users across China, Indonesia, and the Philippines
In total, there are over 0 million registered users across China, Indonesia, and the Philippines
We encourage you to visit our website at https://ir.finvgroup.com for more information.
Non-GAAP Financial Measures and Their Use
In order to evaluate our operating results and for financial and operational decision-making purposes, we use non-GAAP operating income, non-GAAP operating margin, non-GAAP net profit, non-GAAP net profit attributable to FinVolution Group, and non-GAAP basic and diluted net profit per share and per ADS, all of which are non-GAAP financial measures.. By excluding the impact of share-based compensation expenses as well as expected discretionary measures, these non-GAAP financial measures are believed to help identify underlying trends in our business.. In our opinion, non-GAAP financial measures are useful for providing information about our operating results, enhancing one's overall understanding of our past performance and future prospects and providing greater visibility with respect to key metrics that are utilized by our management in order to make financial and operational decisions.
In our opinion, non-GAAP financial measures are useful for providing information about our operating results, enhancing one's overall understanding of our past performance and future prospects and providing greater visibility with respect to key metrics that are utilized by our management in order to make financial and operational decisions.
The non-GAAP adjusted operating income, the non-GAAP operating margin, the non-GAAP net profit, the non-GAAP net profit attributable to FinVolution Group, and the non-GAAP basic and diluted net profit per share and per ADS are not defined under U.S. GAAP.. In addition, they are not presented in accordance with U.S. GAAP. According to GAAP,. In addition, these non-GAAP financial measures have limitations as analytical tools, so when evaluating our operating performance, cash flows, or liquidity, investors should not take these measures in isolation or as a substitute for the net income, cash flows generated by operating activities or other consolidated statements of operations and cash flow data prepared in accordance with U. According to GAAP,. The Company encourages investors and others to review our financial information in its entirety and not to rely on a single financial measure as a measure of our performance
The Company encourages investors and others to review our financial information in its entirety and not to rely on a single financial measure as a measure of our performance
In order to get more information about this non-GAAP financial measure, please refer to the table labeled "Reconciliations of GAAP and Non-GAAP Results" at the end of this press release.
Information about the exchange rate
There are certain RMB amounts that have been translated into U.S. dollars in this announcement at a particular rate solely for the convenience of readers. It is important to note that all translations from RMB to US$1.00 will be made at a rate of RMB7.2960 to U.S.$1.00, which is the rate as of September 29, 2023, as certified by the Federal Reserve Bank of New York for customs purposes.
Statement of Safe Harbor
It is important to note that this press release contains forward-looking statements. The statements in this release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Securities and Exchange Commission's regulations.. In 1995, the Private Securities Litigation Reform Act was passed.. There are a number of forward-looking statements that can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," and similar terminology.. Generally, such statements are based on management's current expectations, the current market and operating conditions of the Company, and relate to events involving known or unknown risks, uncertainties and other factors, some of which are difficult to predict and some of which are beyond the Company's control.. A forward-looking statement involves risks, uncertainties, as well as other factors that could cause actual results to differ materially from those forecasted in such a statement.. Potential risks and uncertainties include, but are not limited to, uncertainties as to the Company's ability to attract and retain borrowers and investors on its marketplace, its ability to increase volume of loans facilitated through the Company's marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, laws, regulations and governmental policies relating to the online consumer finance industry in China, general economic conditions in China, and the Company's ability to meet the standards necessary to maintain listing of its ADSs on the NYSE, including its ability to cure any non-compliance with the NYSE's continued listing criteria. There is more information regarding these risks, uncertainties, or factors in the Company's filings with the Securities and Exchange Commission.. Commission of Securities and Exchange. Unless otherwise required by law, all information provided in this press release is as of the date this press release was issued, and FinVolution does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except to the extent required by law.
Unless otherwise required by law, all information provided in this press release is as of the date this press release was issued, and FinVolution does not undertake any obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except to the extent required by law.
In case of investor or media inquiries, please contact the following:
In China, there are the following companies:FinVolution GroupHead of Investor RelationsJimmy Tan, Investor RelationsEmail: [email protected]Tel: +86 (21) 8030-3200, Ext. 8601 
Jennifer Cai, Piacente Financial Communications, can be contacted at +86 (10) 6508-0677, or at [email protected].   
The following companies are located in the United States:Piacente Financial CommunicationsBrandi PiacenteTel: +1-212-481-2050E-mail: [email protected]
The FinVolution Group is the source of this information
FinVolution Group ("FinVolution", or the "Company") (NYSE: FINV), one of the leading fintech platforms in the world, today announced that it will report on its third quarter results before the end of next week...
FinVolution Group, Inc. ("FinVolution," or the "Company") (NYSE: FINV) a leading platform for fintech companies, today announced that the board of directors of the company has approved the issuance of new...
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