360 DigiTech Announces Q2 2021 Financial Results

Financials Author: EqualOcean News, Yiru Qian Aug 26, 2021 05:44 PM (GMT+8)

During the six months through June, 360 DigiTech's (QFIN:NASDAQ) net profit was CNY 1.548 billion, representing an increase of 76.6% year-on-year.

360 Finance

According to the performance report for Q2 2021:

- The revenue was CNY 4.002 billion (up 19.8%). 

- The net profit was CNY 1.548 billion (up 76.6%) and the net profit margin was 38.7%.

- The net income of credit driven services was CNY 2.441 billion, representing a year-on-year decrease of 20.8%. 

- The net income from platform services reached CNY 1.597 billion, achieving a year-on-year increase of 516.6%.

- The financing income was CNY 488 million, showing a decrease of 22.3%.

- The guaranteed debt release rose by 25.5%, with revenue reaching CNY 1.352 billion.

- As of June 30, 2021, the 360 DigiTech's platform has connected with 108 financial institutions and 176 million consumers with potential credit demand, with a year-on-year increase of 18.1%. 

- The cumulative users of approved credit lines were 34.7 million (up 25.3%). The cumulative number of borrowers including repeat borrowers was 22.3 million (up 25.3%). In Q2, among the loans issued by the company's financial institutions, the contribution of duplicate borrowers was 88.7%.  

- The financial institution partners issued more than 27.71 million loans through the platform, with a total loan of CNY 88.452 billion, representing a year-on-year increase of 50.2%. Among them, the balance of loans for light capital and other technical solutions was CNY 58.187 billion (up 186.4%); the credit lines to small and micro enterprises was CNY 7.1 billion (up 22.4%).  

- The weighted average term of loans granted by financial institutions on 360 DigiTech's platform was about 10.66 months, compared with 9.57 months in the same period last year. 

- As of June 30, 2021, the 90 days+ default rate was 1.19%.  

- The total operating costs and expenses were CNY 2.148 billion, which shows a year-on-year decrease of 8.4% and a month on month increase of 5.2%. 

According to QFIN, the growth trend in the first half of the year will continue in the following part of the year. Therefore, the total amount of loan facilitation and issuance of the company in 2021 is expected to reach CNY 340 billion to CNY 350 billion, achieving a year-on-year increase of 38% to 42%.