FinVolution Group Reports 4th Quarter and Fiscal Year 2022 Unaudited Financial Results and Announces Management Changes.

SHANGHAI: FinVolution Group ("FinVolution," or the "Company") (NYSE: FINV), a leading fintech platform, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2022.

For the Three Months Ended

December 31,

YoY

Change

For Full Year

Ended

December 31,

YoY

Change

2021

2022

2021

2022

Total Transaction Volume (RMB in

billion)1

39.0

48.6

24.6 %

137.4

175.4

27.7 %

Transaction Volume (China's Mainland)

38.0

47.2

24.2 %

133.6

171.1

28.1 %

Transaction Volume (International)2

0.97

1.37

41.2 %

3.7

4.3

16.2 %

Total Outstanding Loan Balance

(RMB in billion)

50.3

64.6

28.4 %

50.3

64.6

28.4 %

Outstanding Loan Balance (China's

Mainland)3

50.0

63.8

27.6 %

50.0

63.8

27.6 %

Outstanding Loan Balance

(International)4

0.30

0.80

166.7 %

0.30

0.80

166.7 %

Fourth Quarter 2022 Operational Highlights

Total cumulative registered users5 reached 159.4 million as of December 31, 2022, an increase of 13.6% compared to the same period of 2021.

Total number of unique borrowers6 for the fourth quarter of 2022 was 3.2 million, a decrease of 8.6% compared to the same period of 2021.

Total number of repeat borrowers7 for the fourth quarter of 2022 was 2.5 million, remaining stable compared to the same period of 2021.

Total transaction volume and outstanding loan balance maintained consistent growth momentum

Total transaction volume reached RMB48.6 billion for the fourth quarter of 2022, an increase of 24.6% compared to the same period of 2021.

Total outstanding loan balance reached RMB64.6 billion as of December 31, 2022, an increase of 28.4% compared to December 31, 2021.

Transaction volume facilitated for repeat individual borrowers8 for the fourth quarter of 2022 was RMB42.1 billion, an increase of 34.1% compared to the same period of 2021.

Small business owners' loans continued to progress

Transaction volume facilitated for small business owners for the fourth quarter of 2022 was RMB11.9 billion, representing 24.5% of total transaction volume in the fourth quarter of 2022 and an increase of 38.4% compared to the same period of 2021.

Total number of small business owners served for the fourth quarter of 2022 was 497 thousand, a decrease of 2.0% compared to the same period of 2021.

International expansion strengthens with increased funding from local financial institutions

Transaction volume facilitated in international markets for the fourth quarter of 2022 was RMB1.37 billion, an increase of 41.2% compared to the same period of 2021.

Proportion of transaction volume in the Indonesia market funded by local financial institutions has increased to 63% in the fourth quarter of 2022 from 10% in the same period last year.

Outstanding loan balance for international markets4 as of December 31, 2022 was RMB0.80 billion, representing an increase of 166.7% from December 31, 2021.

International business revenue was RMB394.9 million (US$57.3 million) for the fourth quarter of 2022, an increase of 121.9% compared to the same period of 2021.

More operational highlights

90 day+ delinquency ratio9 was 1.41% as of December 31, 2022, compared to 1.26% as of December 31, 2021.

Average loan size10 was RMB7,682 for the fourth quarter of 2022, compared to RMB6,114 in the same period of 2021.

Average loan tenor11 was 8.6 months for the fourth quarter of 2022, compared with 8.9 months in the same period of 2021.

Fourth Quarter 2022 Financial Highlights

Net revenue was RMB3,050.0 million (US$442.2 million) for the fourth quarter of 2022, an increase of 24.6% from RMB2,448.0 million for the same period of 2021.

Net profit was RMB556.3 million (US$80.7 million) for the fourth quarter of 2022, a decrease of 14.4% from RMB649.7 million for the same period of 2021.

Non-GAAP adjusted operating income,12 which excludes share-based compensation expenses before tax, was RMB637.8 million (US$92.5 million) for the fourth quarter of 2022, an increase of 13.8% from RMB560.4 million for the same period of 2021.

Diluted net profit per American depositary share ("ADS") was RMB1.91 (US$0.28) and diluted net profit per share was RMB0.38 (US$0.06), a decrease of 13.6% from the same period of 2021. Non-GAAP diluted net profit per ADS was RMB1.98 (US$0.29) and non-GAAP diluted net profit per share was RMB0.40 (US$0.06), a decrease of 15.0% from the same period of 2021. Each ADS of the Company represents five Class A ordinary shares of the Company.

1 Represents the total transaction volume facilitated in China's Mainland and the overseas markets on the Company's platforms during the period presented.

2 Represents our overseas markets outside China's Mainland.

3 Outstanding loan balance (China's Mainland) as of any date refers to the balance of outstanding loans in China's Mainland market delinquent within 180 days from such date.

4 Outstanding loan balance (international) as of any date refers to the balance of outstanding loans in the overseas markets delinquent within 30 days from such date.

5 On a cumulative basis, the total number of users registered on the Company's platforms as of December 31, 2022.

6 Represents the total number of borrowers whose transactions were facilitated on the Company's platforms during the period presented.

7 Represents the total number of repeat borrowers who have successfully borrowed on our platform in the past and borrowed on the Company's platforms during the period presented.

8 Represents transaction volume facilitated for the repeat borrowers who successfully completed their transaction on the Company's platforms during the period presented.

9 "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 on the Company's platform as of a specific date...