FinVolution 6K (formerly known as PPDAI Group Inc.) Reports Third Quarter 2019 Unaudited Financial Results | FINV 19 Nov 19

Exhibit 99.1

FinVolution Group (formerly known as PPDAI Group Inc.) Reports Third Quarter 2019 Unaudited Financial Results

Total Loan Origination Volume Facilitated by Institutional Partners Exceeded 75%

SHANGHAI, November 19, 2019 /PRNewswire/ – FinVolution Group, formerly known as PPDAI Group Inc., (“FinVolution,” or the “Company”) (NYSE: PPDF), a leading online consumer finance marketplace in China, today announced its unaudited financial results for the third quarter ended September 30, 2019.


	As of
	September 30, 2018			June 30, 2019			September 30, 2019
Cumulative registered users¹(’000)		83,949			99,022			102,847
Cumulative number of borrowers²(’000)		13,440			16,528			17,445

	For Three Months Ended						YoY Change
	September 30, 2018			September 30, 2019
Number of unique borrowers³(’000)		2,750			3,537			28.6	%
Loan origination volume⁴ (RMB, million)		14,771			24,579			66.4	%
Repeat borrowing rate⁵(%)		69.8	%		79.4	%		13.8	%
Average loan size⁶ (RMB)		3,396			3,156			-7.1	%

Third Quarter 2019 Financial and Operational Highlights

•

Operating revenues increased by 35.0% to RMB1,512.4 million (US$211.6 million) in the third quarter of 2019, from RMB1,120.4 million in the same period of 2018.

•

Loan facilitation service fees increased by 26.3% to RMB893.6 million (US$125.0 million) in the third quarter of 2019, from RMB707.7 million in the same period of 2018.

•

Operating income was RMB648.9 million (US$90.8 million) for the third quarter of 2019, representing an increase of 32.3% from RMB490.6 million in the same period of 2018.

•

Non-GAAP adjusted operating income, which excludes share-based compensation expenses before tax, was RMB657.8 million (US$92.0 million) for the third quarter of 2019, representing an increase of 44.8% from RMB454.4 million in the same period of 2018.

•

Cumulative registered users¹ reached approximately 102.8 million as of September 30, 2019.

•

Cumulative number ofborrowers² was approximately 17.4 million as of September 30, 2019.

•

Number of unique borrowers³ was approximately 3.5 million for the third quarter of 2019, representing an increase of 28.6% from the same period of 2018.

•

Loan origination volume⁴ was approximately RMB24.6 billion for the third quarter of 2019, representing an increase of 66.4% from the same period of 2018.

•

The proportion of total loan origination volume facilitatedby institutional funding partners increased to approximately 75.1% for the third quarter of 2019 from 44.8% for the second quarter of 2019.

•

Average loan tenure⁷ was 8.2 months for the third quarter of 2019.

¹	On a cumulative basis, number of users registered on our platform as of September 30, 2019.

²	On a cumulative basis, number of borrowers whose loans were funded on or prior to September 30, 2019.

³	Represents the total number of borrowers whose loans on our platform were facilitated during the period presented.

⁴	Represents the loan origination volume facilitated during the period presented.

⁵	Represents the percentage of loan volume generated by repeat borrowers who have successfully borrowed on our platform before.

⁶	Represents the average loan size on our platform during the period presented.

⁷	Represents the average loan tenure period on our platform during the period presented.

Mr. Jun Zhang, Chairman andCo-Chief Executive Officer of FinVolution, commented, “We are pleased to deliver solid results and continued transition of our funding sources towards institutions. For the quarter, total loan origination volume increased by 66.4% year-over-year to RMB24.6 billion, operating revenue increased by 35.0% year-over-year to RMB1.5 billion, and the proportion of loan originations facilitated by institutional partners further increased to over 75.1%.

Both the demand and outlook of our institutional partners remain solid as we continue to strategically expand our business. As the business evolves with the dynamics of the industry, we continue to transition our investor base from individuals to institutions. Meanwhile, we are repositioning our brand to better align with the current business model. In our most recent Annual General Meeting, our shareholders approved our Board’s proposal to change our corporate name and ticker symbol. Looking ahead, we are committed to broadening our spectrum of technology capabilities in order to service our borrowers and deepen our cooperation with institutional partners.”

Mr. Feng Zhang,Co-Chief Executive Officer of FinVolution, added, “We have undergone a significant transition - in a little more than 12 months, our platform went from being mainly facilitated by individual investors to predominantly our institutional partners. During this transition period, we have sustained consistent performance as highlighted by our continuous loan volume growth, relatively stable delinquency trends and healthy profitability. Our transition has been rapid and smooth, and demonstrates our strong execution and management capability.

Looking forward, the consumer finance market in China is vast and remains under-penetrated. We are confident that with our experience and capabilities, FinVolution Group is well-positioned to connect and facilitate individual’s financing needs with banks and financial institutions.”

Mr. Simon Ho, Chief Financial Officer of FinVolution, commented, “We are pleased to report another solid quarter. Ournon-GAAP adjusted operating income increased year over year by a solid 44.8% andnon-GAAP operating margin was at a healthy level of 43.5%. Our balance sheet remained strong with approximately RMB2.2 billion of cash and short-term liquidity.

“Notably, our quality assurance fund remains sufficiently funded with a total balance of RMB6.0 billion, equivalent to 21.0% of the total outstanding loans and interest with quality assurance. With healthy loan origination demand for the foreseeable future, an innovative technology-driven platform matching requirements of different institutional partners, FinVolution remains the leading online consumer finance marketplace in China.”

Third Quarter 2019 Financial Results

Operating revenues for the third quarter of 2019 increased by 35.0% to RMB1,512.4 million (US$211.6 million) from RMB1,120.4 million in the same period of 2018, primarily due to the increase in loan facilitation service fees, post-facilitation service fees and net interest income from loans invested mainly through trusts.

Loan facilitation service fees increased by 26.3% to RMB893.6 million (US$125.0 million) for the third quarter of 2019 from RMB707.7 million in the same period of 2018, primarily due to the increase in loan origination volume.

Post-facilitation service fees increased by 25.3% to RMB300.7 million (US$42.1 million) for the third quarter of 2019 from RMB239.9 million in the same period of 2018, primarily due to the increase in loan origination volume and the rolling impact of deferred transaction fees.

Net interest income and loan provision losses were an income of RMB264.9 million (US$37.1 million) for the third quarter of 2019, compared to an income of RMB16.1 million in the same period of 2018, primarily due to increased interest income from the expansion in the outstanding loan balances of consolidated trusts.

Other revenue decreased by 52.5% to RMB53.2 million (US$7.4 million) for the third quarter of 2019 from RMB112.1 million in the same period of 2018, primarily due to a decrease in management fees from investment programs that invest in loans protected by the quality assurance fund.

Origination and servicing expenses increased by 46.8% to RMB332.1 million (US$46.5 million) for the third quarter of 2019 from RMB226.2 million in the same period of 2018, primarily due to an increase in fees paid to third party providers for loan collection services and an increase in salaries and benefits.

Sales and marketing expenses increased by 24.2% to RMB229.2 million (US$32.1 million) for the third quarter of 2019 from RMB184.5 million in the same period of 2018, primarily due to the increase in online customer acquisition expenses.

General and administrative expenses increased by 24.2% to RMB124.8 million (US$17.5 million) for the third quarter of 2019 from RMB100.5 million in the same period of 2018, primarily due to an increase in fees paid to third parties for trust management. General and administrative expenses for the period included share-based compensation of RMB8.9 million (US$1.2 million).

Research and development expenses increased by 31.7% to RMB108.2 million (US$15.1 million) for the third quarter of 2019 from RMB82.1 million in the same period of 2018, primarily due to increased investments in technology.

Provision for doubtful accounts was RMB69.2 million (US$9.7 million) for the third quarter of 2019, compared with RMB36.4 million in the same period of 2018 due to the increase in loan origination volume.

Operating income increased by 32.3% to RMB648.9 million (US$90.8 million) for the third quarter of 2019 from RMB490.6 million in the same period of 2018.

Other income was RMB80.2 million (US$11.2 million) for the third quarter of 2019, compared with other income of RMB251.1 million in the same period of 2018. Other income primarily consisted of (1) a gain of RMB34.3 million (US$4.8million) from the quality assurance fund, (2) a realized gain of RMB37.2 million (US$5.2 million), (3) a loss of RMB43.5 million (US$6.1 million) from the fair value change of financial guarantee derivatives, (4) other income of RMB52.1 million (US$7.3 million). The Companyre-evaluates the expected default rate at each balance sheet date to reflect the views of market participants of future defaults of the Company’s loan portfolio based on the latest market changes. For the third quarter of 2019, RMB21.1 billion of loans facilitated on the Company’s platform had quality assurance protection.

Income tax expensesincreased by 41.8% to RMB130.7 million (US$18.3 million) for the third quarter of 2019 from RMB92.2 million in the same period of 2018 as a result of the increase in proportion of loan volume facilitated by institutional funding, which has a higher effective tax rate.

Net profit decreased by 7.9% to RMB598.5 million (US$83.7 million) for the third quarter of 2019, from RMB649.5 million in the same period of 2018.

Net profit attributable to ordinary shareholders of the Company decreased by 7.9% to RMB597.9 million (US$83.7 million) for the third quarter of 2019, from RMB649.3 million in the same period of 2018.

As of September 30, 2019, the Company had cash and cash equivalents of RMB1,762.7 million (US$246.6 million) and short-term investments mainly in wealth management products of RMB419.3 million (US$58.7 million).

The total balance of the quality assurance fund, which includes restricted cash of RMB3,074.1 million (US$430.1 million) and the quality assurance fund receivable of RMB2,901.7 million (US$406.0 million), was equivalent to 21.0% of the total outstanding loans and interest with quality assurance.

The following table provides the delinquency rates for all outstanding loans on the Company’s platform as of the respective dates indicated.


As of	15-29 days			30-59 days			60-89 days			90-119 days			120-149 days			150-179 days
March 31, 2017		0.57	%		0.95	%		0.79	%		0.59	%		0.54	%		0.51	%
June 30, 2017		0.86	%		1.11	%		0.79	%		0.51	%		0.55	%		0.52	%
September 30, 2017		0.89	%		1.40	%		1.15	%		1.02	%		0.79	%		0.60	%
December 31, 2017		2.27	%		2.21	%		1.72	%		1.63	%		1.36	%		1.20	%
March 31, 2018		0.87	%		2.11	%		2.43	%		3.83	%		2.29	%		1.89	%
June 30, 2018		0.83	%		1.21	%		1.05	%		0.98	%		1.60	%		2.03	%
September 30, 2018		1.03	%		1.77	%		1.49	%		1.29	%		1.06	%		1.02	%
December 31, 2018		0.92	%		1.63	%		1.41	%		1.45	%		1.44	%		1.34	%
March 31, 2019		0.80	%		1.61	%		1.45	%		1.29	%		1.31	%		1.20	%
June 30, 2019		0.86	%		1.42	%		1.37	%		1.19	%		1.26	%		1.21	%
September 30, 2019		0.90	%		1.50	%		1.35	%		1.31	%		1.17	%		1.20	%

The following chart and table display the historical cumulative30-day plus past due delinquency rates by loan origination vintage for all loan products facilitated through the Company’s online marketplace:

LOGO


	Month on Book
Vintage	2^nd			3^rd			4^th			5^th			6^th			7^th			8^th			9^th			10^th			11^th			12^th
2017Q1		1.20	%		2.01	%		2.68	%		3.32	%		3.87	%		4.33	%		4.68	%		4.98	%		5.33	%		5.61	%		5.80	%
2017Q2		1.72	%		2.89	%		3.81	%		4.55	%		5.14	%		5.78	%		6.32	%		6.79	%		7.05	%		7.19	%		7.24	%
2017Q3		1.82	%		2.93	%		4.08	%		5.16	%		6.13	%		6.64	%		6.88	%		7.04	%		7.16	%		7.22	%		7.26	%
2017Q4		2.51	%		4.12	%		5.16	%		5.68	%		5.97	%		6.18	%		6.29	%		6.39	%		6.47	%		6.50	%		6.50	%
2018Q1		1.35	%		2.18	%		2.97	%		3.65	%		4.30	%		4.85	%		5.22	%		5.50	%		5.66	%		5.74	%		5.77	%
2018Q2		1.75	%		3.08	%		4.35	%		5.43	%		6.31	%		6.97	%		7.45	%		7.79	%		7.99	%		8.08	%		8.13	%
2018Q3		1.42	%		2.48	%		3.50	%		4.36	%		5.07	%		5.58	%		5.96	%		6.27	%		6.49	%		6.64	%		6.72	%
2018Q4		1.42	%		2.48	%		3.54	%		4.41	%		5.17	%		5.76	%		6.19	%		6.54	%
2019Q1		1.33	%		2.38	%		3.45	%		4.36	%		5.13	%
2019Q2		1.33	%		2.34	%

Business Outlook

The Company currently expects total loan origination volume to be in the range of RMB16 billion to RMB19 billion for the fourth quarter of 2019. This is within the Company’s previous guidance for loan originations facilitated by institutional partners to be in the range of RMB32 billion to RMB38 billion for the second half of 2019.

The Company plans to discontinue its online information intermediary business between individual borrowers and individual investors, that is the part of FinVolution’s business in which loans on the Company’s platform are facilitated by individual investors. The Company will continue its strategy of expanding loan facilitations on the platform by institutional funding partners. In the third quarter of 2019, loan originations facilitated by institutional partners increased to 75.1% of total loan origination volume, and the Company expects this proportion to further increase in the fourth quarter of 2019. As the Company’s business model of loan facilitation by institutional funding partners has a relatively short operating history, the Company’s operations and future growth may be subject to uncertainty.

The above outlook is based on current market conditions and reflects the Company’s preliminary expectations as to market conditions, its regulatory and operating environment, as well as customer demand, all of which are subject to change.

Conference Call

The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on November 19, 2019 (9:00 PM Beijing/Hong Kong time on November 19, 2019).

Dial-in details for the earnings conference call are as follows:


United States (toll free):		1-888-346-8982
International:		1-412-902-4272
Hong Kong, China (toll free):		800-905-945
Hong Kong, China:		852-3018-4992
Mainland China:		400-120-1203

Participants shoulddial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for “PPDAI Group.”

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website athttp://ir.ppdai.com.

A replay of the conference call will be accessible approximately one hour after the conclusion of the live call until November 26, 2019, by dialing the following telephone numbers:


United States (toll free):		1-877-344-7529
International:		1-412-317-0088
Replay Access Code:		10136591

About FinVolution Group.

FinVolution is a leading online consumer finance platform in China connecting underserved individual borrowers with financial institutions. Established in 2007, the Company is a pioneer in China’s online consumer finance industry and has developed strong innovative technologies and has accumulatedin-depth experience in the core areas of credit risk assessment, fraud detection, big data and artificial intelligence. The Company’s platform, empowered by proprietary cutting-edge technologies, features a highly automated loan transaction process, which enables a superior user experience. As of September 30, 2019, the Company had over 102 million cumulative registered users.

For more information, please visithttp://ir.ppdai.com.

Use ofNon-GAAP Financial Measures

We useNon-GAAP operating income, aNon-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. We believe that adjusted operating income help identify underlying trends in our business by excluding the impact of share-based compensation expenses and expected discretionary measures. We believe that adjusted operating 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.

Non-GAAP adjusted operating income is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. ThisNon-GAAP financial measure has limitations as analytical tool, and when assessing our operating performance, cash flows or our liquidity, investors should not consider it in isolation, or as a substitute for net (loss)/income, cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review our financial information in its entirety and not rely on a single financial measure.

For more information on thisNon-GAAP financial measure, please see the table captioned “Reconciliations of GAAP andNon-GAAP results” set forth at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.1477 to US$1.00, the rate in effect as of September 30, 2019 as certified for customs purposes by the Federal Reserve Bank of New York.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “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. 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,” “target,” “confident” and similar statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. 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 anynon-compliance with the NYSE’s continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and FinVolution does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

FinVolution Group

Head of Investor Relations

Jimmy Tan

Tel: +86 (21) 8030 3200-8601

E-mail: ir@ppdai.com

Sylvie Deng

Tel: +86 (21) 8030 3200-8601

E-mail: ir@ppdai.com

The Piacente Group, Inc.

Jenny Cai

Tel: +86 (10) 6508-0677

E-mail:paipaidai@tpg-ir.com

In the United States:

The Piacente Group, Inc.

Brandi Piacente

Tel:+1-212-481-2050

E-mail:paipaidai@tpg-ir.com

FinVolution Group

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except share data, or otherwise noted)


	As of December 31,			As of September 30,
	2018			2019
	RMB			RMB			USD
Assets
Cash and cash equivalents		1,616,164			1,762,727			246,615
Restricted cash		3,677,557			6,000,323			839,476
Short-term investments		1,694,660			419,287			58,660
Investments		167,501			251,485			35,184
Quality assurance fund receivable		2,064,366			2,901,703			405,963
Intangible assets		68,880			64,280			8,993
Property, equipment and software, net		144,002			141,306			19,769
Loans receivable, net of provision for loan losses		2,331,108			4,548,985			636,426
Accounts receivable		812,042			1,101,462			154,100
Deferred tax assets		122,763			134,794			18,858
Financial guarantee derivative assets		56,287			4,606			643
Contract assets		112,103			38,142			5,336
Right of use assets		—			100,363			14,041
Prepaid expenses and other assets		224,623			1,969,262			275,509
Goodwill		50,411			50,411			7,053

Total assets		13,142,467			19,489,136			2,726,626

Liabilities and Shareholders’ Equity
Payable to platform customers		905,034			2,394,013			334,935
Quality assurance payable		3,819,379			5,373,640			751,800
Payroll and welfare payable		188,254			193,342			27,050
Taxes payable		225,101			190,129			26,600
Short-term borrowings		25,000			25,000			3,498
Funds payable to investors of consolidated trusts		1,505,909			2,970,895			415,644
Contract liability		165,469			92,430			12,931
Deferred tax liabilities		100,064			112,070			15,679
Accrued expenses and other liabilities		222,519			413,498			57,851
Leasing liabilities		—			91,348			12,780

Total liabilities		7,156,729			11,856,365			1,658,768

Commitments and contingencies
FinVolution Group Shareholders’ equity
Ordinary shares		102			103			14
Additionalpaid-in capital		5,896,017			5,630,852			787,785
Treasury stock		(332,121	)		(12,314	)		(1,723	)
Statutory reserves		256,006			256,006			35,817
Accumulated other comprehensive income		58,210			79,276			11,089
Retained Earnings		45,668			1,616,526			226,157

Total FinVolution Group shareholders’ equity		5,923,882			7,570,449			1,059,139

Non-controlling interest		61,856			62,322			8,719

Total shareholders’ equity		5,985,738			7,632,771			1,067,858

Total liabilities and shareholders’ equity		13,142,467			19,489,136			2,726,626

We have adopted ASU No.2016-02, “Leases,” beginning January 1, 2019 and elected to utilize a modified retrospective approach which allowed us to initially apply the new lease standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings of 2019, with no adjustments to prior periods presented. No cumulative effect adjustment to the opening balance of retained earnings were made. The adoption of the new guidance did not have a material effect on our results of operations, financial condition or liquidity.

FinVolution Group

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(All amounts in thousands, except share data, or otherwise noted)


	For the Three Months Ended September 30,									For the Nine Months Ended September 30,
	2018			2019						2018			2019
	RMB			RMB			USD			RMB			RMB			USD
Operating revenues:
Loan facilitation service fees		707,738			893,614			125,021			2,081,807			2,771,979			387,814
Post-facilitation service fees		239,880			300,671			42,065			672,910			924,542			129,348
Net interest income and loan provision losses		16,096			264,915			37,063			72,769			592,969			82,959
Other Revenue		112,092			53,229			7,447			269,113			243,542			34,073
Changes in expected discretionary payment to IRF investors		44,572			—			—			44,572			—			—

Total Operating revenues		1,120,378			1,512,429			211,596			3,141,171			4,533,032			634,194

Operating expenses:
Origination and servicing expenses		(226,227	)		(332,078	)		(46,459	)		(707,976	)		(903,053	)		(126,342	)
Sales and marketing expenses		(184,481	)		(229,190	)		(32,065	)		(529,853	)		(588,585	)		(82,346	)
General and administrative expenses		(100,507	)		(124,806	)		(17,461	)		(254,849	)		(334,630	)		(46,816	)
Research and development expenses		(82,145	)		(108,221	)		(15,141	)		(234,837	)		(297,504	)		(41,622	)
Provision for doubtful accounts receivables		(36,411	)		(69,185	)		(9,679	)		(53,631	)		(197,895	)		(27,687	)

Total operating expenses		(629,771	)		(863,480	)		(120,805	)		(1,781,146	)		(2,321,667	)		(324,813	)
Other income (expenses)
Gain from quality assurance fund		276,593			34,321			4,802			487,425			91,331			12,778
Realized gain (loss) from financial guarantee derivatives		(28,108	)		37,235			5,209			(175,215	)		29,695			4,154
Fair value change of financial guarantee derivatives		(6,796	)		(43,474	)		(6,082	)		261,277			(51,681	)		(7,231	)
Other income, net		9,395			52,147			7,296			106,171			106,200			14,858

Profit before income tax expense		741,691			729,178			102,016			2,039,683			2,386,910			333,940
Income tax expenses		(92,189	)		(130,718	)		(18,288	)		(344,823	)		(424,870	)		(59,442	)

Net profit		649,502			598,460			83,728			1,694,860			1,962,040			274,498
Net profit (loss) attributable tonon-controlling interest shareholders		207			577			81			(40	)		466			65
Net profit attributable to FinVolution Group		649,295			597,883			83,647			1,694,900			1,961,574			274,433

Foreign currency translation adjustment, net of nil tax		36,625			21,335			2,985			47,080			21,066			2,947

Total comprehensive income attributable to FinVolution Group		685,920			619,218			86,632			1,741,980			1,982,640			277,380

Weighted average number of ordinary shares used in computing net income per share
Basic		1,483,389,904			1,553,399,525			1,553,399,525			1,502,800,121			1,521,577,804			1,521,577,804
Diluted		1,571,175,958			1,579,642,133			1,579,642,133			1,611,816,214			1,565,427,361			1,565,427,361
Income per share -Basic		0.4377			0.3849			0.0538			1.1278			1.2892			0.1804
Income perADS-Basic		2.1886			1.9244			0.2692			5.6391			6.4459			0.9018
Income per share -Diluted		0.4133			0.3785			0.0530			1.0515			1.2531			0.1753
Income perADS-Diluted		2.0663			1.8925			0.2648			5.2577			6.2653			0.8765

FinVolution Group

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(All amounts in thousands, except share data, or otherwise noted)


	Three Months Ended September 30,							Nine Months Ended September 30,
	2018			2019				2018			2019
	RMB			RMB		USD		RMB			RMB			USD
Net cash provided by operating activities		1,126,389			1,515,746		212,061		1,366,683			2,609,065			365,022
Net cash provided by (used in) investing activities		(1,117,253	)		28,870		4,040		(627,835	)		(1,094,495	)		(153,126	)
Net cash provided by financing activities		263,482			285,077		39,883		89,256			937,102			131,106
Effect of exchange rate changes on cash and cash equivalents		36,993			16,505		2,309		44,853			17,657			2,470
Net increase in cash, cash equivalent and restricted cash		309,611			1,846,198		258,293		872,957			2,469,329			345,472
Cash, cash equivalent and restricted cash at beginning of period		4,847,050			5,916,852		827,798		4,283,704			5,293,721			740,619
Cash, cash equivalent and restricted cash at end of period		5,156,661			7,763,050		1,086,091		5,156,661			7,763,050			1,086,091

FinVolution Group

UNAUDITED Reconciliation of GAAP AndNon-GAAP Results

(All amounts in thousands, except share data, or otherwise noted)


	For the Three Months Ended September 30,									For the Nine Months Ended September 30,
	2018			2019						2018			2019
	RMB			RMB			USD			RMB			RMB			USD
Total Operating revenues		1,120,378			1,512,429			211,596			3,141,171			4,533,032			634,194
Less: total operating expenses		(629,771	)		(863,480	)		(120,805	)		(1,781,146	)		(2,321,667	)		(324,813	)
Operating Income		490,607			648,949			90,791			1,360,025			2,211,365			309,381
Less: Change in expected discretionary payment to IRF investors		(44,572	)		—			—			(44,572	)		—			—
Add: share-based compensation expenses		8,321			8,890			1,244			40,764			32,827			4,593
Non-GAAP adjusted operating income		454,356			657,839			92,035			1,356,217			2,244,192			313,974

Operating Margin		43.8	%		42.9	%		42.9	%		43.3	%		48.8	%		48.8	%
Non-GAAP operating margin		40.6	%		43.5	%		43.5	%		43.2	%		49.5	%		49.5	%

FinVolution (FINV) 6-KFinVolution Group (formerly known as PPDAI Group Inc.) Reports Third Quarter 2019 Unaudited Financial Results