/C O R R E C T I O N -- Pintec Technology Holdings Limited/

In the news release, PINTEC ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FIRST HALF OF 2023, issued 28-Dec-2023 by Pintec Technology Holdings Limited over PR Newswire, we are advised by the company that in the Interim Report, the Company disclosed the gain from disposal of its wholly owned subsidiary Sky City Holding Limited and its subsidiaries (collectively "SCHL Group") for RMB6.71 million. However, when preparing the financial statements for the year ended December 31, 2023, the Company noted the following errors were made inadvertently: 1) the cumulative foreign currency translation loss (recorded as accumulated other comprehensive loss) related to SCHL Group of RMB45.59 million should be treated as loss from disposal of SCHL Group which increased our net loss from RMB0.71 million to a net loss of RMB46.30 million; and 2) the non-controlling interest in a subsidiary included in SCHL Group of RMB139.34 million should be treated as other payable to non-controlling interest holders which increased accrued expenses and other liabilities from RMB 30.20 million to RMB 169.54 million and decreased the non-controlling interest from RMB 153.47 million to RMB 14.12 million. The complete, corrected release follows:

PINTEC ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE FIRST HALF OF 2023

BEIJING, May 6, 2024 /PRNewswire/ -- Pintec Technology Holdings Limited (Nasdaq: PT) ("Pintec" or the "Company"), a Nasdaq-listed company providing technology enabled financial and digital services to micro, small and medium enterprises ecosystem, today announced its unaudited financial results for the six months ended June 30, 2023.

First Half 2023 Financial Highlights

    --  Total revenues were RMB35.09 million (US$4.86 million) for the first
        half of 2023 compared to total revenues of RMB39.82 million for the same
        period of 2022.
    --  Gross profit decreased by 79.48% to RMB4.21 million (US$0.58 million)
        for the first half of 2023 from RMB20.51 million for the same period of
        2022. Gross margin was 11.99% for the first half of 2023 compared to
        51.50% for the same period of 2022.
    --  Loss from operations decreased by 48.54% to RMB12.09 million (US$1.67
        million) for the first half of 2023 from RMB23.49 million for the same
        period of 2022.
    --  Net loss decreased by 62.54% to RMB46.30 million (US$6.41 million) for
        the first half of 2023 compared to net loss of RMB123.60 million for the
        same period of 2022.

First Half 2023 Operating Highlights

    --  Total loans facilitated decreased by 58.98% to RMB47.3 million (US$6.55
        million) for the first half of 2023 from RMB115.30 million for the same
        period of 2022.
    --  Loan outstanding balance decreased by 35.08% to RMB 61.71 million (US$
        8.54 million) as of June 30, 2023 from RMB95.06 million as of December
        31, 2022.
    --  The following table provides delinquency rates by balance for all loans
        facilitated by the Company as of the dates indicated:

                                   Delinquent for


                        16-30 days            31-60 days  61-90 days



     December 31, 2020       0.77                   0.97         0.95
                                 %                     %           %



     December 31, 2021       1.00                   1.30         1.18
                                 %                     %           %



     December 31, 2022       0.23                   0.58         0.18
                                 %                     %           %



     June 30, 2023           0.58                   1.06         0.22
                                 %                     %           %


Mr. Zexiong Huang, Chief Executive Officer and acting Chief Financial Officer of Pintec, commented, "Amidst the sluggish macroeconomic recovery, during the first half of 2023, we persistently focused on our core strategy. We continued to provide loan services and digital solutions to micro, small and medium enterprises ("MSME") ecosystem, as a direct lender, facilitator and enabler. Our business partners, financial partners, and end customers are able to enhance the efficiency and effectiveness of their financial services and their customers' navigating financial service processes driven by our digital technical services and our financial solutions. We are also continuously devoted to initiating innovative business models. At the same time, ongoing improvements in operation, strengthening risk management, optimizations to cost structures were implemented relentlessly to achieve the goal of break-even point. We are committed to cautious and sustainable growth, and prepare for the potential risks and uncertainty."

"Going forward, despite the market uncertainties, we are committed to prudently execute our MSME ecosystem strategy by solidifying our competencies in technology innovation, enhancing overall risk management, attracting customers and strengthening partnership, refining operations, expanding our business and implementing cost-effective initiatives to ensure successful execution of our future growth plans. We believe that sustainable quality-based development is valuable." Mr. Huang concluded.

First Half 2023 Financial Results

Revenues

Total revenues decreased by 11.89% to RMB35.09 million (US$4.86 million) for the first half of 2023 from RMB39.82 million for the same period of 2022.

    --  Revenues from technical service fees decreased by 17.90% to RMB19.83
        million (US$2.75 million) for the first half of 2023 from RMB24.16
        million for the same period of 2022. The decrease in revenues from
        technical service fees was mainly due to we ceased the risk-sharing loan
        facilitation business.
    --  Revenues from installment service fee decreased by 16.55% to RMB7.53
        million (US$1.04 million) for the first half of 2023 from RMB9.02
        million for the same period of 2022. The decrease in revenues from
        installment service fee was mainly due to the decrease in volume of SMEs
        loans in the first half of 2023.
    --  Revenues from wealth management service fees increased by 16.32% to
        RMB7.73 million (US$1.07 million) for the first half of 2023 from
        RMB6.64 million for the same period of 2022. The increase in revenue of
        the wealth management was mainly due to increased revenue generated from
        our insurance brokerage service business.

Cost of Revenues

Cost of revenues increased by 59.90% to RMB30.88 million (US$4.27 million) for the first half of 2023 from RMB19.31 million for the same period of 2022. This increase was mainly attributable to:

    --  Funding cost. Funding cost mainly consists of interest expense the
        Company pays in relation to the funding debts to fund its financing
        receivables. Funding cost increased RMB 9.28 million to RMB9.31 million
        (US$1.29 million) compared to funding cost of RMB0.03 million in the
        same period of 2022. We recorded interest expenses of RMB9.31 million
        during the first half of 2023, which was mainly represents an
        out-of-period adjustments amount to RMB9.30 million from prior years. In
        July 2018, Minheng, a subsidiary of our variable interest entity,
        entered into loan agreements with a shareholder of ours (the "Lender"),
        these loans have principal amount of RMB190 million, and the annual
        interest rates are 10.3%, which are similar to market interest rate. In
        August 2018, Minheng and the Lender entered into a supplementary
        agreement which changed the interest rates, retroactive to the first
        date of each loan, to 0.6%. The differences of interest expenses between
        the market interest rate and the actual rates amount to RMB9.30 million
        was deemed as contribution by the shareholder to the Company, which was
        an out-of-period adjustments to correct prior period errors relating to
        recording the additional paid-in capital and funding cost.
    --  Reversal of credit losses. Reversal of credit losses of RMB0.38 million
        (US$52 thousand) in first half of 2023 compared to provision for credit
        losses of RMB0.94 million in the same period of 2022, which was mainly
        due to collection of financial receivables exceeding the credit losses
        accrued during the first half of 2023.
    --  Origination and servicing cost. Origination and servicing cost increased
        by 27.76% to RMB23.86 million (US$3.30 million) compared to RMB18.67
        million in the same period of 2022, which was mainly due to the
        increased cost of insurance brokerage services and credit assessment
        services.
    --  Recover on guarantee. Recover on guarantee increased by 422.80% to
        RMB1.90 million (US$0.26 million) compare to RMB0.36 million in the same
        period of 2022, as we purposely and gradually ceased providing credit
        enhancement for loans that we facilitated with any financial partners
        from 2020 in order to improve the overall quality of our
        off-balance-sheet loans, which lead to the increase of reimbursement for
        defaulted loans being outpaced by the recovery of reimbursement for
        defaulted loans in 2022 and 2023.
    --  Service cost charged by the related party. We had service cost charge by
        the related party of RMB0.03 million and nil for the first half of 2022
        and 2023, respectively. The decrease was primarily attributable to the
        expiration of the loan facilitated under risk-sharing model with Jimu
        Group, a related party.

Gross Profit

Gross profit decreased to RMB4.21 million (US$0.58 million) for the first half of 2023 from RMB20.51 million for the same period of 2022. Gross margin was 11.99% in the first half of 2023 compared to 51.50% in the same period of 2022.

Operating Expenses

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 of 2022. The Company has been continuously optimizing and refining its organizational structure, marketing strategies and product matrix to reduce expenses since the beginning of 2023.

    --  Sales and marketing expenses in the first half of 2023 decreased by
        38.72% to RMB8.51 million (US$1.18 million) from RMB13.89 million in the
        same period of 2022. This decrease was primarily driven by the decrease
        in payroll cost.
    --  General and administrative expenses in the first half of 2023 decreased
        by 74.15% to RMB5.06 million (US$0.70 million) from RMB19.57 million in
        the same period of 2022. This decrease was primarily driven by 1) the
        reversal of share-based compensation expense of RMB6.87 million; and 2)
        strict overall cost control for the reduction of various items
        including, among other things, professional services fees and payroll
        cost. The reversal of share-based compensation expense was RMB6.9
        million during the first half of 2023 based on the actual forfeiture
        rate, which was an out-of-period adjustments from prior years.
    --  Research and development expenses in the first half of 2023 decreased by
        74.13% to RMB2.73 million (US$0.38 million) from RMB10.54 million in the
        same period of 2022, primarily due to personnel structure optimization
        as part of the business transformation of the Company.

Loss from operations

Loss from operations decreased by 48.54% to RMB12.09 million (US$1.67 million) for the first half of 2023 from RMB23.49 million for the same period of 2022.

Other income and expenses

Other expenses, net decreased by 53.81% to RMB45.59 million (US$6.31 million) for the first half of 2023 from RMB98.70 million for the same period of 2022. The decrease was primarily due to the decrease in impairment loss of long-term investments of RMB86.60 million and the increase in loss of RMB38.88 million from disposal of Sky City Holding Limited and eight of its subsidiaries (collectively, "SCHL Group") in May 2023.

Income tax (expense)/benefit

Income tax was recorded as income tax benefit of RMB11.38 million (US$1.57 million) for the first half of 2023 compared to income tax expense of RMB1.41 million recorded for the first half of 2022. It was primarily attributable to the income tax benefit of RMB12.32 million (US$1.71 million) arose from the derecognition of income tax payable accrued in 2017, which now has passed the five-year statute of limitations and our tax filling in 2017 is no longer under examination by the PRC tax authority.

Net loss

As a result of the foregoing, net loss was recorded RMB46.30 million (US$6.41 million) for the first half of 2023 compared to RMB123.60 million recorded for the same period of 2022.

Net loss attributable to ordinary shareholders was recorded RMB44.86 million (US$6.21 million) for the first half of 2023 compared to net loss attributable to ordinary shareholders of RMB122.04 million recorded for the same period of 2022.

Adjusted net loss was RMB65.50 million (US$9.07 million) for the first half of 2023 compared to RMB119.22 million for the same period of 2022.

Net Loss Per Share

Basic and diluted net loss per ordinary share in the first half of 2023 were both RMB0.10 (US$0.01). Basic and diluted net loss per American Depositary Share ("ADS") in the first half of 2023 were RMB3.62 (US$0.50) and RMB3.61 (US$0.50), respectively. Each ADS represents thirty-five of the Company's Class A ordinary shares.

Adjusted basic and diluted net loss per ordinary share in the first half of 2023 were both RMB0.15 (US$0.02). Adjusted basic and diluted net loss per ADS in the first half of 2023 were RMB5.17 (US$0.72) and RMB5.16 (US$0.71), respectively.

Balance Sheet

The Company has combined cash and cash equivalents, short-term and long-term restricted cash of RMB19.46 million (US$2.69 million) as of June 30, 2023, compared to RMB256.21 million as of December 31, 2022.

Out-of-period adjustment

For the year ended December 31, 2022, the Company recorded an out-of-period adjustment to correct previous period errors relating to accounts receivable of RMB6.05 million (US$0.84 million). For six months ended June 30, 2023, we recorded an out-of-period adjustment to correct previous period errors relating to reclassification of additional paid-in capital and accumulated deficits of RMB7.69 million (US$1.06 million). We evaluated the impacts of the out-of-period adjustment to correct the errors for the year ended December 31, 2022, for the six months ended June 30, 2023, and for previous periods, both individually and in the aggregate, and concluded that the adjustments were not material to the consolidated financial statements for the year ended December 31, 2022, for the six months ended June 30, 2023, and all impacted periods.

We recorded two out-of-period adjustments to correct previous period errors relating to: (1) Cost of revenues and additional paid-in capital of RMB9.30 million (US$1.29 million); (2) General and administration expense and additional paid-in capital of RMB6.87 million (US$0.95 million). The net effect on net loss is RMB2.43 million (US$0.34 million). We evaluated the impacts of the out-of-period adjustment to correct the errors for the year ended December 31, 2022, for the six months ended June 30, 2023, and for previous periods, both individually and in the aggregate, and concluded that the adjustments were not material to the consolidated financial statements for the year ended December 31, 2022 and material for the six months ended June 30, 2023.

Disposal of SCHL Group

On May 26, 2023, the Company entered into an equity transfer agreement with Otov Alfa Holdings Limited ("Otov Alfa"), a British Virgin Islands business company designated by Ningxia Fengyin Enterprise Management Consulting LLP ("Ningxia Fengyin"), under which the Company transferred 100% of its equity interest in subsidiaries including Sky City Holding Limited, and its subsidiaries (collectively "SCHL Group") to Otov Alfa, at nil consideration (the "Deconsolidation"), in order to settle all outstanding convertible loan owed by the Group to Ningxia Fengyin. SCHL Group mainly served as a holding company for a group of investment companies with no material operations, and meanwhile, as the obligator of the outstanding convertible loan and interest. The Deconsolidation of SCHL Group was not a strategic shift as it has no material impact on the Group's business, therefore it was not qualified as discontinued operation. Upon the completion of the Deconsolidation, the control of SCHL Group was transferred to Otov Alfa on May 30, 2023 (the "Closing Date"), and the assets and liabilities of SCHL Group, including the outstanding convertible loan and interest payable, cash in bank, property and some other assets and liabilities with a net liability balance of RMB6.71 million were transferred to Otov Alfa, resulting in settlement of the outstanding convertible loan and a gain from disposal of RMB6.71 million. The cumulative foreign currency translation loss (recorded as accumulated other comprehensive loss) related to SCHL Group of RMB45.59 million was released as a loss, with a total loss of RMB38.88 million recognized related to the disposal of SCHL Group for the six months ended June 30, 2023.

The non-controlling interest in a subsidiary included in SCHL Group of RMB139.34 million is included in the accrued expenses and other liabilities. The investment from the non-controlling interest holder was utilized by the Company in the form of working capital loan to its currently consolidated subsidiaries, VIEs and VIEs subsidiaries and was waived by SCHL Group before Deconsolidation. As the Group is not able to ascertain that the non-controlling interest holder will not claim from the Group for its interest in SCHL Group after the disposal of SCHL Group in the foreseeable future, the Group recognized balance of noncontrolling interest as of the disposal date as other payables due to the non-controlling interest holder upon Deconsolidation.

On May 26, 2023, as part of the Deconsolidation, the Company entered into a termination agreement with Otov Alfa ("Warrant Termination Agreement"), under which the Company and Otov Alfa agree that all terms and provisions in the warrant (which was accounted in the convertible loan together with consideration payable to Ningxia Fengyin) shall be terminated, and all rights and obligations of the relevant parties under the warrant shall be ceased and terminated with immediate effect upon the effectiveness of the Warrant Termination Agreement. The Company had pledged 100% equity interest of one of the consolidated VIE's subsidiary Ganzhou Aixin Network Micro Finance Co., Ltd to Ningxia Fengyin on December 2, 2020 to secure the convertible loan, such pledge was also released upon the Deconsolidation and the termination of the warrant.

Going Concern

The Company acknowledged that there were recurring losses from operation since year 2019. For the six months ended June 30, 2023, the Company reported a net loss of RMB46.30 million (US$6.41 million). In addition, as of June 30, 2023, the Company reported a negative working capital of RMB398.90 million (US$55.20 million) had an accumulated deficit of RMB2,478.84 million (US$343.05 million). The Company's operating results in future periods are subject to numerous uncertainties, and it is uncertain whether the Company will be able to reduce or eliminate its net loss in the foreseeable future. In order to alleviate the pressure on capital turnover, the Company has reached an agreement with a third-party institution to obtain a line of credit facility with an amount up to US$ 40 million.

Due to the unpredictable future of the capital markets and the industry in which we operate, there can be no assurance that the Company will be successful in achieving its budget goals, that the Company's future capital raising will be sufficient to support its ongoing operations, or that any additional financing will be available in a timely manner or with acceptable terms, if at all. If the Company is unable to raise sufficient financing or events or circumstances occur such that the Company does not meet its budget goals, it may have a material adverse effect on the Company's financial position, results of operations, cash flows, and ability to achieve its intended business objectives. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company's ability to operate profitably, to generate cash flows from operations, and to pursue financing arrangements to support its working capital requirements.

Use of Non-GAAP Financial Measures

In evaluating its business, the Company considers and uses adjusted net income/loss as a supplemental measure to review and assess its operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines adjusted net income/loss as net income/loss excluding share-based compensation expenses and income tax benefit recognized due to reversal of uncertain tax position.

The Company believes that this non-GAAP financial measure can help management evaluate the Company's operating performance and formulate business plans. Adjusted net income/loss enables management to assess operating results without considering the impact of share-based compensation expenses and income tax benefit recognized due to reversal of uncertain tax position. The Company also believes that this non-GAAP financial measure provides useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by management in their financial and operational decision-making.

This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using adjusted net income/loss is that it does not reflect all items of income and expenses that affect the Company's operations. The Company will continue to incur share-based compensation expenses in its business, which are reflected in the presentation of its adjusted net income/loss. Further, this non-GAAP financial measure may differ from non-GAAP financial information used by other companies, including peer companies, and therefore its comparability may be limited.

The Company compensates for these limitations by reconciling this non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure, net income/loss, which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2258 to US$1.00, the noon buying rate in effect on June 30, 2023, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

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. Among other things, the quotations from management in this announcement, as well as Pintec's strategic and operational plans, contain forward-looking statements. Pintec may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. 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 inherent 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, the Company's limited operating history, regulatory uncertainties relating to the markets and industries where the Company operates, and the need to further diversify its financial partners, the Company's reliance on a limited number of business partners, the impact of current or future PRC laws or regulations on wealth management financial products, and the Company's ability to meet the standards necessary to maintain the listing of its ADSs on the Nasdaq Global Market, including its ability to cure any non-compliance with Nasdaq'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 the Company 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.

About Pintec

Pintec is a Nasdaq-listed company providing technology enabled financial and digital services to micro, small and medium enterprises in China. It connects business partners and financial partners on its open platform and enables them to provide financial services to end users efficiently and effectively. Pintec empowers its business partners by providing them with the capability to add a financing option to their product offerings. It helps its financial partners adapt to the new digital economy by enabling them to access the online population that they could not otherwise reach efficiently or effectively. Pintec continues to deliver exceptional digitization services, diversified financial products, and best-in-class solutions with innovative technology, to solidify its relationship with its business partners and satisfy its clients' needs. Pintec currently holds internet micro lending license, fund distribution license, insurance brokerage license and enterprise credit investigation license in China. For more information, please visit ir.pintec.com.

For further information, please contact:

Pintec Technology Holdings Ltd.
Phone: +86 (10) 6506-0227
E-mail: ir@pintec.com


                                                              
              
               Pintec Technology Holdings Ltd.


                                                           
              
               Condensed Consolidated Balance Sheets


                                                    
              
               (In thousands, except for share and per share data)




                                                                                                                                         As of December
                                                                                                                                          31,                                    As of June 30,


                                                                                                                               2022       2023           2023


                                                                                                                                         RMB                                   RMB              US$


                                                                                                                                          (Unaudited)              (Unaudited)


                                                                                                                                          (As              (As
                                                                                                                                             restated)               restated)



              
                
                  ASSETS



              
                
                  Current assets:



              Cash and cash equivalents                                                                                      249,728       14,462            2,001



              Restricted cash                                                                                                  1,482



              Short-term investment                                                                                            1,001



              Short-term financing receivables, net                                                                           87,087       59,563            8,243



              Short-term financial guarantee assets, net                                                                       6,480           97               13



              Accounts receivable, net                                                                                        18,627       15,049            2,083



              Prepayments and other current assets, net                                                                       22,628       13,944            1,928



              Amounts due from related parties, net                                                                            2,161        1,104              153



              
                
                  Total current assets                                                               389,194      104,219           14,421





              
                
                  Non-current assets:



              Non-current restricted cash                                                                                      5,000        5,000              692



              Long-term investments                                                                                           35,000       35,000            4,844



              Property, equipment and software, net                                                                           89,795



              Intangible assets, net                                                                                           9,882        9,882            1,368



              
                
                  Total non-current assets                                                           139,677       49,882            6,904





              
                
                  TOTAL ASSETS                                                                       528,871      154,101           21,325





              
                
                  LIABILITIES



              
                
                  Current liabilities:



              Convertible loan, current                                                                                      113,000



              Accounts payable                                                                                                22,684       16,247            2,248



              Amounts due to related parties, current                                                                        294,634      296,549           41,040



              Tax payable                                                                                                     36,476       20,683            2,862



              Financial guarantee liabilities                                                                                  6,914           97               13



              Accrued expenses and other liabilities                                                                          52,277      169,542           23,462



              
                
                  Total current liabilities                                                          525,985      503,118           69,625





              
                
                  Non-current liabilities:



              Deferred tax liabilities                                                                                         2,470        2,470              342



              Long-term loan                                                                                                 236,755



              Other non-current liabilities                                                                                   10,798        5,175              716



              
                
                  Total non-current liabilities                                                      250,023        7,645            1,058





              
                
                  TOTAL LIABILITIES                                                                  776,008      510,763           70,683





              
                
                  DEFICIT



              Class A Ordinary Shares (US$ 0.000125 par                                                                          233          454               63
    value per share; 1,750,000,000 shares authorized
    as of December 31, 2022 and June 30, 2023;
    252,789,098 and 507,239,098 shares
    outstanding as of December 31, 2022 and June
    30, 2023)



              Class B Ordinary Shares (US$ 0.000125 par                                                                           42           42                6
    value per share; 250,000,000 shares authorized
    as of December 31, 2022 and June 30, 2023;
    50,939,520 and 50,939,520 shares outstanding
    as of December 31, 2022 and June 30, 2023)



              Additional paid-in capital                                                                                   1,998,822    2,036,473          281,834



              Statutory reserves                                                                                              31,995        9,320            1,290



              Accumulated other comprehensive income                                                                          15,685       61,765            8,548



              Accumulated deficit                                                                                        (2,448,823) (2,478,840)       (343,054)



              
                
                  Total shareholders' deficit                                                      (402,046)   (370,786)        (51,313)





              Non-controlling interests                                                                                      154,909       14,124            1,955





              
                
                  TOTAL DEFICIT                                                                    (247,137)   (356,662)        (49,358)





              
                
                  TOTAL LIABILITIES AND DEFICIT                                                      528,871      154,101           21,325


                                                                 
              
                Pintec Technology Holdings Ltd.


                                        
              
                Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss


                                                       
              
                (In thousands, except for share and per share data)




                                                                                                                                                         For the six months ended June 30,


                                                                                                                                   2022             2023                     2023


                                                                                                                                                         RMB                                   RMB               US$


                                                                                                                                                                                 (As restated)     (As restated)



              
                
                  Revenues:



              Technical service fees                                                                                              24,158             19,834                      2,745



              Installment service fees                                                                                             9,020              7,527                      1,042



              Wealth management service fees and others                                                                            6,643              7,727                      1,069



              
                
                  Total revenues                                                                          39,821             35,088                      4,856





              
                
                  Cost of revenues:



              Funding cost                                                                                                          (33)           (9,305)                   (1,288)



              (Provision of)/reversal of credit losses                                                                             (937)               378                         52



              Origination and servicing cost                                                                                    (18,673)          (23,856)                   (3,301)



              Reversal of guarantee                                                                                                  364              1,903                        263



              Service cost charged by the related party                                                                             (33)



              
                
                  Cost of revenues                                                                      (19,312)          (30,880)                   (4,274)





              
                
                  Gross profit                                                                            20,509              4,208                        582





              
                
                  Operating expenses:



              Sales and marketing expenses                                                                                      (13,886)           (8,509)                   (1,178)



              General and administrative expenses                                                                               (19,569)           (5,059)                     (700)



              Research and development expenses                                                                                 (10,543)           (2,728)                     (378)



              
                
                  Total operating expenses                                                              (43,998)          (16,296)                   (2,256)





              
                
                  Loss from operations                                                                  (23,489)          (12,088)                   (1,674)





              Long-term investments impairment                                                                                  (86,600)



              Share of loss from equity method investments                                                                         (934)



              Long-lived assets impairment                                                                                                         (3,737)                     (517)



              Loss
               
              from disposal of subsidiaries                                                           (2,176)          (38,883)                   (5,381)



              Financial expenses, net                                                                                           (11,295)           (4,273)                     (591)



              Other income, net                                                                                                    2,304              1,305                        181





              
                
                  Loss before income tax (expense)/benefit                                             (122,190)          (57,676)                   (7,982)



              Income tax (expense)/benefit                                                                                       (1,412)            11,377                      1,574



              
                
                  Net loss                                                                             (123,602)          (46,299)                   (6,408)





              Less: 
              Net loss attributable to non-controlling interest                                                 (1,566)           (1,444)                     (200)



              Net loss attributable to Pintec Technology Holdings                                                              (122,036)          (44,855)                   (6,208)
    Limited shareholders





              
                
                  Other comprehensive (loss)/income:



              Foreign currency translation adjustments, net of nil tax                                                           (8,598)            46,080                      6,377



              
                
                  Total other comprehensive (loss)/income                                                (8,598)            46,080                      6,377





              
                
                  Total comprehensive loss                                                             (132,200)             (219)                      (31)



              Total comprehensive loss attributable to non-controlling                                                           (1,566)           (1,444)                     (200)
    interest



              Total comprehensive (loss)/income attributable to Pintec                                                         (130,634)             1,225                        169
    Technology Holdings Limited shareholders





              
                
                  Net loss per ordinary share



              Basic                                                                                                               (0.41)            (0.10)                    (0.01)



              Diluted                                                                                                             (0.41)            (0.10)                    (0.01)



              
                
                  Weighted average ordinary shares outstanding



              Basic                                                                                                          300,059,264        433,743,535                433,743,535



              Diluted                                                                                                        300,059,264        434,294,424                434,294,424


                                                                         
              
                Pintec Technology Holdings Ltd.


                                                             
              
                Unaudited Reconciliations of GAAP and Non-GAAP Results


                                                               
              
                (In thousands, except for share and per share data)




                                                                                                                                                                For the six months ended June 30,


                                                                                                                                                 2022      2023                     2023


                                                                                                                                                                RMB                                   RMB               US$


                                                                                                                                                                                        (As restated)     (As restated)



              Net loss                                                                                                                       (123,602)   (46,299)                   (6,408)



              Add: Share-based compensation expenses                                                                                             4,383     (6,884)                     (952)



              Less: Income tax benefit recognized due to reversal of uncertain                                                                             12,319                      1,705
    tax position



              
                
                  Adjusted net loss                                                                                  (119,219)   (65,502)                   (9,065)



              Less: Adjusted n
              et loss attributable to non-controlling interest                                                      (1,566)    (1,444)                     (200)



              Adjusted net loss attributable to Pintec Technology Holdings                                                                   (117,653)   (64,058)                   (8,865)
    Limited shareholders



              
                
                  Adjusted net loss per ordinary share



              Basic and diluted                                                                                                                 (0.39)     (0.15)                    (0.02)



              
                
                  Weighted average number of ordinary shares outstanding



              Basic and diluted                                                                                                            300,059,264 433,743,535                433,743,535

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SOURCE Pintec Technology Holdings Limited