PINTEC(PT) - 2023 Q3 - Quarterly Report

Financial Performance - Total revenues for the first half of 2023 were RMB35.09 million (US$4.86 million), a decrease of 11.89$0.58 million) for the first half of 2023, with a gross margin of 11.99% compared to 51.50% for the same period in 2022[4][9]. - Revenues from technical service fees decreased by 17.90% to RMB19.83 million (US$2.75 million) for the first half of 2023, primarily due to the cessation of the risk-sharing loan facilitation business[4]. - Revenues from wealth management service fees increased by 16.32$1.07 million) for the first half of 2023, driven by increased revenue from the insurance brokerage service business[5]. - The net loss attributable to Pintec Technology Holdings Limited shareholders for the six months ended June 30, 2023, was RMB 739 thousand, a substantial improvement compared to a net loss of RMB 122,036 thousand in the same period of 2022[36]. - Adjusted net loss for the six months ended June 30, 2023, was RMB 19,908 thousand, compared to RMB 119,219 thousand in the same period of 2022, indicating a reduction in losses[37]. - The company reported a total comprehensive loss of RMB 219 thousand for the six months ended June 30, 2023, significantly lower than the total comprehensive loss of RMB 132,200 thousand in the same period of 2022[36]. - The company reported a loss from operations of RMB 12,088 thousand for the six months ended June 30, 2023, down from a loss of RMB 23,489 thousand in the same period of 2022, showing operational improvements[36]. Expenses and Liabilities - Total operating expenses decreased by 62.96% to RMB16.30 million (US$2.26 million) for the first half of 2023 from RMB44.00 million for the same period in 2022[10]. - The company continues to incur share-based compensation expenses, which are reflected in its adjusted net income/loss[27]. - Total liabilities decreased from RMB776.01 million to RMB371.42 million during the same period[34]. - The total liabilities and deficit amounted to RMB 528,871 thousand as of June 30, 2023, compared to RMB 154,101 thousand in the previous year, indicating a significant increase in financial obligations[36]. Cash and Assets - Cash and cash equivalents, along with restricted cash, totaled RMB19.46 million (US$2.69 million) as of June 30, 2023, down from RMB256.21 million as of December 31, 2022[17]. - Total current assets decreased from RMB389.19 million to RMB104.22 million from December 31, 2022, to June 30, 2023[34]. - The Company’s total assets decreased from RMB528.87 million to RMB154.10 million from December 31, 2022, to June 30, 2023[34]. Tax and Income - The company recorded an income tax benefit of RMB11.38 million (US$1.57 million) for the first half of 2023, compared to an income tax expense of RMB1.41 million for the same period in 2022[14]. - The company recognized an income tax benefit of RMB 11,377 thousand for the six months ended June 30, 2023, compared to an expense of RMB 1,412 thousand in the same period of 2022[36]. Business Developments - The company disposed of SCHL Group on May 26, 2023, resulting in a gain from disposal of RMB6.71 million (US$0.93 million)[20]. - The Company has reached an agreement to obtain a line of credit facility of up to US$40 million to alleviate capital turnover pressure[22]. - The Company acknowledges uncertainties regarding future capital raising and its ability to meet budget goals[23]. - The Company has pledged 100$6.55 million) for the first half of 2023 from RMB115.30 million for the same period in 2022[3]. - The weighted average number of ordinary shares outstanding increased to 433,743,535 for the six months ended June 30, 2023, compared to 300,059,264 in the same period of 2022[37]. - The company experienced a significant increase in long-lived assets impairment, reporting RMB 3,737 thousand for the six months ended June 30, 2023, compared to no impairment in the same period of 2022[36].