FinVolution expecting second-half rebound
New York-listed FinVolution, which reported a first-quarter revenue growth of 44 percent, said it expects that transaction volume and business will rebound in the second half.
Transaction value will see little change in the second quarter and gradually rebound in the second half, with more users and a recovered economy in China after the pandemic, the Shanghai-based online finance platform said.
In the first quarter, revenue reached 2.11 billion yuan (US$300 million). Net profit was 420 million yuan, a 40 percent decrease from a year ago.
Zhang Feng, the company’s chief executive, said it faced “a challenging start” in 2020 because of COVID-19. But he started “seeing signs of improvement since early March which continued throughout April and May.”
The company, with more than 108 million users by March, has increased spending and adapted its business clients structure to boost business.
In the first quarter, the company spent 87.6 million yuan on research. By May 20, it had registered 139 software patents.
FinVolution, formerly known as PPDai, has shifted focus from individual lenders toward institutional lenders, a move which promises more capital stability and fewer risks.
