Slide 1: Second Quarter 2023 Earnings Results
Second Quarter 2023 Earnings Results August 21, 2023
Slide 2: Safe Harbor Statement and Disclaimer
Safe Harbor Statement and Disclaimer This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act
Slide 3: Section I Operational and Financial Highlights
Section I Operational and Financial Highlights
Slide 4: 2Q 2023 & 1H 2023 Financial and Operating Highlights
2Q 2023 & 1H 2023 Financial and Operating Highlights Continue to Deliver YoY Revenue Growth 1 More Diversified and Balanced Business Mix… 2 Despite Macro Headwinds… 2Q 2023 &1H 2023 Total Revenue 17% 16% 26% 575 Marketing and other services +22% 9% 10% 473 9% 24% Big data and 28% system-based risk m
Slide 5: 2Q 2023 & 1H 2023 Financial and Operating Highlights
2Q 2023 & 1H 2023 Financial and Operating Highlights And Sustained Improvement in Operational Led to A Remarkable Quarterly Result of 3 Efficiency 4 Approaching Breakeven ROI of Recommendation Services and Quarterly Net Margin Improvement Marketing and Other Services1 1Q 2022 2Q 2022 3Q 2022 4Q 2022
Slide 6: Section II Financial Details
Section II Financial Details
Slide 7: More Balanced and Diversified Business Mix with YoY Revenue Growth
More Balanced and Diversified Business Mix with YoY Revenue Growth Total Revenue Breakdown RMB mm +22% 575 472 149 +8% 81 51 43 286 113 145 265 38 71 23 28 67 84 236 230 138 103 2Q 2022 2Q 2023 1H 2022 1H 2023 Cre dit Card Recommendation Loan Recommendation Big Data and System-based Risk Management
Slide 8: Improved Operational Efficiency and ROI Enhancement
Improved Operational Efficiency and ROI Enhancement ROI of Recommendation Services, Marketing and Other Services1 ROI of Recommendation Services, Marketing and Other Services Recommendation 14 5% Services Ma rketing and 12 percentage 13 5% Other Services points From 2Q22 to 2Q23 12 5% 14 5% 1.35 11
Slide 9: Ongoing Disciplined Cost Control Measures and Expenses Optimization
Ongoing Disciplined Cost Control Measures and Expenses Optimization Operating Expenses1 and Expenses as % of Total Revenue2 RMB mm Operating Expenses Expenses as % of Total Revenue 3 9 - 7.5% percentage 39% percentage points points 183 34% 170 31% 12% 30% 57 10% 55 10% - 3.5% 10% 13% 89 86 59 11% 50
Slide 10: Achieved Significant Margin Improvement and Approaching Breakeven
Achieved Significant Margin Improvement and Approaching Breakeven Loss from Operations and Net Loss RMB mm Loss from Operations Net Loss -36 -11 -91 -34 -36 -0.9 -89 -22 -0.3% -3.7% -3.8% -5.9% -13.5% -13.5% -18.8% -19.1% - 70.5% - 62.2% - 97.5% - 75.6% 2Q 2022 2Q 2023 1H 2022 1H 2023 2Q 2022 2Q 202
Slide 11: Appendix
Appendix 11 11
Slide 12: Unaudited Consolidated Balance Sheet Data
Unaudited Consolidated Balance Sheet Data Note: Assumes USD RMB FX rate of 7.2513 As of December 31, 2022 As of June 30, 2023 As of June 30, 2023 (in Millions) (RMB) (RMB) (USD) Current Assets: - Cash and cash equivalents 346.5 316.6 43.7 - Restricted time deposits 297.6 308.8 42.6 - Accounts receiv
Slide 13: Unaudited Income Statement Data
Unaudited Income Statement Data For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2023 2023 2022 2023 2023 (in Millions) (RMB) (RMB) (USD) (RMB) (RMB) (USD) Revenues: Recommendation Services: Loans 66.5 83.8 11.6 113.1 145.5 20.1 Credit Cards 138.2 102.7 14.2 235.8 229.7 31.