PINTEC ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FIRST HALF OF 2024

Financial Performance - Total revenues decreased by 57.5% to RMB14.92 million (US$2.09 million) for the first half of 2024 compared to RMB35.09 million for the same period of 2023 [2][6] - Gross profit increased by 111.6$1.25 million) for the first half of 2024, with a gross margin of 59.66% compared to 11.99% in the same period of 2023 [2][12] - Net loss decreased by 82.0% to RMB8.34 million (US$1.17 million) for the first half of 2024, compared to a net loss of RMB46.30 million for the same period of 2023 [3][20] Operational Highlights - Total loans facilitated decreased by 2.4$6.48 million) for the first half of 2024 from RMB47.3 million for the same period of 2023 [4] - Loan outstanding balance decreased by 9.0% to RMB56.14 million (US$7.88 million) as of June 30, 2024, from RMB61.74 million as of December 31, 2023 [4] Revenue Breakdown - Revenues from technical service fees decreased by 86.6$0.37 million) for the first half of 2024, primarily due to a reduction in this business segment [7] - Revenues from installment service fees decreased by 13.7% to RMB6.49 million (US$0.91 million) for the first half of 2024, attributed to a decrease in loan volumes [8] - Revenues from wealth management service fees decreased by 25.3$0.81 million) for the first half of 2024, mainly due to new regulations affecting insurance brokerage [9] Cost Structure - Cost of revenues decreased by 80.51% to RMB6.02 million (US$0.85 million) for the first half of 2024, largely due to a significant reduction in funding costs [10] - Origination and servicing costs decreased by 78.8$0.71 million) compared to RMB23.86 million in the same period of 2023 [11] Operating Expenses - Total operating expenses increased by 1.3% to RMB16.51 million (US$2.32 million) for the first half of 2024 from RMB16.30 million for the same period of 2023 [13] - Sales and marketing expenses increased by 0.3$1.20 million) due to the addition of personnel for expanding Wealth Management Solutions [14] - General and administrative expenses increased by 12.8% to RMB5.71 million (US$0.80 million), primarily due to the absence of prior year adjustments [15] Balance Sheet and Cash Position - The company reported combined cash and cash equivalents and long-term restricted cash of RMB53.42 million (US$7.50 million) as of June 30, 2024, compared to RMB45.51 million as of December 31, 2023 [24] - The company acknowledged a negative working capital of RMB388.96 million (US$54.58 million) and an accumulated deficit of RMB2,520.97 million (US$353.73 million) as of June 30, 2024 [25] Management Commentary - The CEO highlighted the company's focus on financial stability and risk management amidst industry challenges, emphasizing operational efficiency and cost optimization as key strategies for future growth [5]