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SIG SAUER Announces U.S. Army Designates Type Classification Milestone for the NGSW Lethality Program

NGSW Type Classified

NEWINGTON, N.H., May 21, 2025 /PRNewswire/ — SIG SAUER, industry leading manufacturer of elite military weapon systems, is proud to congratulate the U.S. Army on the milestone of officially designating Type Classification – Standard (TC-STD) to the SIG SAUER Next Generation Squad Weapon (NGSW) M7 rifle and M250 (belt fed) automatic rifle— cornerstone systems of the U.S. Army’s modernization program and overmatch efforts. The M7 is the M4 carbine replacement, and the M250 replaces the M249 Squad Automatic Weapon; the systems bring superior range and lethality over legacy systems, providing a greater threat to enemy forces through superior overmatch.

The Type Classification affirms the M7 and M250 meet stringent performance, safety, and reliability standards for widespread military use. This designation ensures seamless integration into the U.S. Army’s inventory, streamlining procurement, training, and maintenance across units and asserting the materiel fully satisfies U.S. Army operational needs. This milestone marks the transition of these advanced firearms from developmental to standardized status, signifying readiness for widespread fielding.

“This approval underscores the U.S. Army’s commitment to equipping our soldiers with next generation lethality to maintain tactical superiority and enhance mission success,” states Steve Rose, Executive Vice President, Defense Strategies Group. “The M7 and M250 represent a transformative leap in combat capability.”

The NGSW Program, initiated in 2017, aims to revolutionize small arms capabilities for the U.S. Army. Following a 27-month prototype phase, extensive testing culminated in the selection of SIG SAUER’s XM7 and XM250 in April 2022.

About SIG SAUER, Inc.:
SIG SAUER, Inc. is a leading provider and manufacturer of firearms, electro-optics, ammunition, airguns, suppressors, remote controlled weapons stations, and training. For over 250 years, SIG SAUER has evolved and thrived by blending American ingenuity, German engineering, and Swiss precision. Today, SIG SAUER is synonymous with industry-leading quality and innovation, which has made it the brand of choice amongst the U.S. Military, the global defense community, law enforcement, competitive shooters, hunters, and responsible citizens. Additionally, SIG SAUER is the premier provider of elite firearms instruction and tactical training at the SIG SAUER Academy. Headquartered in Newington, New Hampshire, SIG SAUER has over 3,400 employees across sixteen U.S. locations in three states, and four additional global facilities. SIG SAUER is certified a Great Place to Work™. For more information about the company and product line visit: sigsauer.com.

Media Contact:
Phil Strader
Vice President, Consumer Affairs
phil.strader@sigsauer.com

U.S. Army Designates Type Classification Milestone for the NGSW Lethality Program
U.S. Army Designates Type Classification Milestone for the NGSW Lethality Program

 

ESOC 2025: Combined oral contraceptives triple risk of cryptogenic stroke in young women, new study shows

HELSINKI, May 21, 2025 /PRNewswire/ — New research presented today at the European Stroke Organisation Conference (ESOC) 2025 revealed that the use of combined oral contraceptives (OCs) is associated with a threefold increase in the risk of cryptogenic ischaemic stroke (CIS) in young women.(1) The findings add to a growing body of evidence linking hormonal contraception to vascular risk in women of reproductive age.

Cryptogenic ischaemic stroke, which is stroke with no identifiable cause, accounts for up to 40% of all ischaemic strokes in young adults.(2) Despite its prevalence, the contribution of sex-specific risk factors, such as contraceptive use, has remained underexplored. While prior studies have associated combined OCs with stroke risk, this is among the few studies to focus specifically on cryptogenic stroke in young women.

The Searching for Explanations for Cryptogenic Stroke in the Young (SECRETO) study included 268 women aged 18–49 years with CIS and 268 age-matched stroke-free controls across 14 centres in Europe. Of the participants, 66 patients and 38 controls were using combined OCs. After adjusting for age and established comorbidities such as hypertension, smoking, migraine with aura, and abdominal obesity, OC use was associated with an adjusted odds ratio of 3.00 (95% CI: 1.61–5.57). No significant interactions were found between OC use and these risk factors, suggesting that the increased stroke risk may operate independently of other known contributors.

“Our findings confirm earlier evidence linking oral contraceptives to stroke risk,” said Dr. Mine Sezgin, Department of Neurology, Istanbul University, and lead author of the study. “What’s particularly notable is that the association remains strong even when accounting for other known risk factors, which suggests there may be additional mechanisms involved – possibly genetic or biological.”

Most OC users in the study were taking ethinylestradiol-based formulations, with a median dose of 20 micrograms. Other types of estrogen, such as estradiol hemihydrate and estradiol valerate, were also recorded.

“We calculated the equivalent estrogen dose for each patient to ensure consistency,” Dr Sezgin explained. “While our data provides important initial insights, larger studies are needed to determine if certain formulations carry different levels of risk. This knowledge could help guide more personalised contraceptive choices for women.”

While the researchers note that further prospective studies are needed, they advise clinicians to exercise caution when prescribing combined OCs to women with known vascular risk factors or a history of ischaemic stroke. “Our findings should prompt more careful evaluation of stroke risk in young women, particularly those with additional risk factors,” concluded Dr. Sezgin.

Moving forward, the researchers plan to explore biological and genetic mechanisms underlying the observed association between combined OC use and increased stroke risk to better understand how hormonal contraceptives may independently elevate stroke risk.

Note to editors:  

A reference to ESOC 2025 must be included in all coverage and/or articles associated with this study.  

About the study author:  

Dr. Mine Sezgin is a neurologist and stroke researcher based at the Istanbul University Faculty of Medicine. Her work focuses on sex-specific risk factors and stroke prevention in young adults.

About the European Stroke Organisation (ESO):  

The ESO is a pan-European society of stroke researchers and physicians, national and regional stroke societies and lay organisations that was founded in December 2007.

The aim of the ESO is to reduce the burden of stroke by changing the way that stroke is viewed and treated. This can only be achieved by professional and public education, and by making institutional changes. ESO serves as the voice of stroke in Europe, harmonising stroke management across the whole of Europe and taking action to reduce the burden of stroke regionally and globally.  

References:  

1.  Sezgin, M., et al. Hormonal contraception increases the risk of cryptogenic stroke in young women. Abstract O049, presented at the European Stroke Organisation Conference; 21 May 2025; Vienna, Austria.
2.  Yaghi, S., & Elkind, M. S. (2014). Cryptogenic stroke: A diagnostic challenge. Neurology. Clinical practice4(5), 386–393. https://doi.org/10.1212/CPJ.0000000000000086

Tuya Reports First Quarter 2025 Unaudited Financial Results

SANTA CLARA, Calif., May 21, 2025 /PRNewswire/ — Tuya Inc. (“Tuya” or the “Company”) (NYSE: TUYA; HKEX: 2391), a global leading cloud platform service provider, today announced its unaudited financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights

  • Total revenue was US$74.7 million, up approximately 21.1% year-over-year (1Q2024: US$61.7 million).
  • IoT platform-as-a-service (“PaaS”) revenue was US$53.7 million, up approximately 17.9% year-over-year (1Q2024: US$45.6 million).
  • Software-as-a-service (“SaaS”) and others revenue was US$10.0 million, up approximately 15.5% year-over-year (1Q2024: US$8.6 million).
  • Smart solution revenue was US$11.0 million, up approximately 47.1% year-over-year (1Q2024: US$7.5 million).
  • Overall gross margin was 48.5%, up 0.7 percentage point year-over-year (1Q2024: 47.8%). Gross margin of IoT PaaS increased to 48.4%, up 2.0 percentage points year-over-year (1Q2024: 46.4%).
  • Operating margin was negative 1.9%, improved by 24.6 percentage points year-over-year (1Q2024: negative 26.5%). Non-GAAP operating margin was 9.1%, improved by 10.0 percentage points year-over-year (1Q2024: negative 0.9%).
  • Net margin was 14.8%, improved by 20.5 percentage points year-over-year (1Q2024: negative 5.7%). Non-GAAP net margin was 25.8%, improved by 5.9 percentage points year- over-year (1Q2024: 19.9%).
  • Net profits were US$11.0 million (1Q2024: negative US$3.5 million). Non-GAAP net profits were US$19.3 million, up approximately 57.2% year-over-year (1Q2024: US$12.3 million).
  • Net cash generated from operating activities was US$9.4 million (1Q2024: US$14.5 million).
  • Total cash and cash equivalents, time deposits and treasury securities recorded as short- term and long-term investments were US$1,023.7 million as of March 31, 2025, compared to US$1,016.7 million as of December 31, 2024.

For further information on the non-GAAP financial measures presented above, see the section headed “Use of Non-GAAP Financial Measures.”

First Quarter 2025 Operating Highlights

  • IoT PaaS customers1 for the first quarter of 2025 were approximately 2,000 (1Q2024: approximately 2,000). Total customers for the first quarter of 2025 were approximately 2,800 (1Q2024: 3,000). The Company’s key-account strategy has enabled it to focus on serving strategic customers.
  • Premium IoT PaaS customers2 for the trailing 12 months ended March 31, 2025 were 287 (1Q2024: 269). In the first quarter of 2025, the Company’s premium IoT PaaS customers contributed approximately 88.7% of its IoT PaaS revenue (1Q2024: approximately 85.1%).
  • Dollar-based net expansion rate (“DBNER”)3 of IoT PaaS for the trailing 12 months ended December 31, 2025 was 118% (1Q2024: 116%).
  • Registered IoT device and software developers were over 1,417,000 as of March 31, 2025, up 7.7% from approximately 1,316,000 developers as of December 31, 2024.
  1. The Company defines an IoT PaaS customer for a given period as a customer who has directly placed orders for IoT PaaS with the Company during that period.
  2. The Company defines a premium IoT PaaS customer as a customer as of a given date that contributed more than US$100,000 of IoT PaaS revenue during the immediately preceding 12-month period.
  3. The Company calculates DBNER of IoT PaaS for a trailing 12-month period by first identifying all customers in the prior 12-month period (i.e., those have placed at least one order for IoT PaaS during that period), and then calculating the quotient from dividing the IoT PaaS revenue generated from such customers in the current trailing 12-month period by the IoT PaaS revenue generated from the same group of customers in the prior 12-month period. The Company’s DBNER may change from period to period, due to a combination of various factors, including changes in the customers’ purchase cycles and amounts and the Company’s customer mix, among other things. DBNER indicates the Company’s ability to expand customer use of the Tuya platform over time and generate revenue growth from existing customers.

Mr. Xueji (Jerry) Wang, Founder and Chief Executive Officer of Tuya, commented, “In the first quarter, typically a seasonally soft period, we delivered steady growth in GAAP net profit, driven by sustained revenue growth and healthy operating leverage under Tuya’s differentiated business model. Amid ongoing macroeconomic uncertainties and rapid AI evolution, we remain focused on building differentiated AIoT capabilities and empowering global developers. Tuya’s platform model continues to facilitate deeper integration of AI and smart devices, accelerating the intelligent transformation of the industry.”

Mr. Yi (Alex) Yang, Director and Chief Financial Officer of Tuya, added, “We delivered solid financial results in the first quarter of 2025, with revenue increasing 21.1% year-over-year to US$74.7 million and gross margin remaining stable at 48.5%. Continued cost discipline and an optimized expense structure supported steady improvement in GAAP net profit, which reached US$11.0 million, nearly double the full-year total for 2024, with a GAAP net margin reached record high of 14.8%. We also generated positive operating cash flow for the eighth consecutive quarter and ended the period with a healthy net cash position. These results provide both a solid execution base and financial flexibility to support sustained investment in AI innovation and Smart Solution expansion, and to deliver long-term shareholder value across macro volatility.”

First Quarter 2025 Unaudited Financial Results

REVENUE

Total revenue in the first quarter of 2025 increased by 21.1% to US$74.7 million from US$61.7 million in the same period of 2024, mainly due to the increase in IoT PaaS revenue and smart solution revenue.

  • IoT PaaS revenue in the first quarter of 2025 increased by 17.9% to US$53.7 million from US$45.6 million in the same period of 2024, primarily due to increasing demand compared with the same period of 2024 and the Company’s strategic focus on customer needs and product enhancements. As a result, the Company’s DBNER of IoT PaaS for the trailing 12 months ended March 31, 2025 increased to 118% from 116% for the trailing 12 months ended March 31, 2024.
  • SaaS and others revenue in the first quarter of 2025 increased by 15.5% to US$10.0 million from US$8.6 million in the same period of 2024, primarily due to an increase in revenue from cloud software products. During the quarter, the Company remained committed to offering value-added services and a diverse range of software products with compelling value propositions to its customers.
  • Smart solution revenue in the first quarter of 2025 increased by 47.1% to US$11.0 million from US$7.5 million in the same period of 2024, primarily due to the increasing customer demand for smart devices with integrated intelligent software capabilities the Company developed beyond IoT.

COST OF REVENUE

Cost of revenue in the first quarter of 2025 increased by 19.5% to US$38.4 million from US$32.2 million in the same period of 2024, generally in line with the increase in the Company’s total revenue.

GROSS PROFIT AND GROSS MARGIN

Total gross profit in the first quarter of 2025 increased by 22.9% to US$36.3 million from US$29.5 million in the same period of 2024. The gross margin in the first quarter of 2025 was 48.5%, compared to 47.8% in the same period of 2024, reaching a record high since the establishment of the Company.

  • IoT PaaS gross margin in the first quarter of 2025 was 48.4%, compared to 46.4% in the same period of 2024.
  • SaaS and others gross margin in the first quarter of 2025 was 74.4%, compared to 72.3% in the same period of 2024.
  • Smart solution gross margin in the first quarter of 2025 was 25.7%, remained relatively steady sequentially, and compared to 28.3% in the same period of 2024.

Gross margin of each revenue stream increased or fluctuated primarily due to changes in products and solutions mix. As a developer platform with rich ecosystem of smart devices and applications, the Company is committed to focusing on software products with compelling value propositions while maintaining cost efficiency.

OPERATING EXPENSES

Operating expenses decreased by 17.8% to US$37.7 million in the first quarter of 2025 from US$45.9 million in the same period of 2024. Non-GAAP operating expenses decreased by 2.0% to US$29.4 million in the first quarter of 2025 from US$30.0 million in the same period of 2024. For further information on the non-GAAP financial measures presented above, see the section headed “Use of Non-GAAP Financial Measures.”

  • Research and development expenses in the first quarter of 2025 were US$22.8 million, down 2.8% from US$23.5 million in the same period of 2024, primarily because of (i) the lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized and (ii) partially offset by an increase in cloud services costs. Non-GAAP adjusted research and development expenses in the first quarter of 2025 were US$20.8 million, compared to US$20.0 million in the same period of 2024.
  • Sales and marketing expenses in the first quarter of 2025 were US$8.3 million, down 7.1% from US$9.0 million in the same period of 2024, primarily because of (i) the decrease in employee-related costs, (ii) the lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized, and (iii) partially offset by increased spending in marketing events compared to the same period of 2024. Non-GAAP adjusted sales and marketing expenses in the first quarter of 2025 were US$7.6 million, compared to US$7.6 million in the same period of 2024.
  • General and administrative expenses in the first quarter of 2025 were US$8.9 million, down 42.3% from US$15.5 million in the same period of 2024, primarily because of (i) the lower share-based compensation expenses as equity incentive awards granted at higher valuations in previous years have been gradually amortized and (ii) operational optimization. Non- GAAP adjusted general and administrative expenses in the first quarter of 2025 were US$3.4 million, compared to US$4.6 million in the same period of 2024.
  • Other operating income, net in the first quarter of 2025 was US$2.4 million, primarily due to the receipt of software value-added tax refunds and various general subsidies for enterprises.

LOSS/PROFIT FROM OPERATIONS AND OPERATING MARGIN

Loss from operations in the first quarter of 2025 narrowed by 91.1% to US$1.5 million from US$16.4 million in the same period of 2024. The Company had a non-GAAP profit from operations of US$6.8 million in the first quarter of 2025, compared to a non-GAAP loss from operations of US$0.6 million in the same period of 2024, consistently achieving operating profitability on a non-GAAP basis.

Operating margin in the first quarter of 2025 was negative 1.9%, improved by 24.6 percentage points from negative 26.5% in the same period of 2024. Non-GAAP operating margin in the first quarter of 2025 was 9.1%, improved by 10.0 percentage points from negative 0.9% in the same period of 2024.

NET LOSS/PROFIT AND NET MARGIN

The Company had a net profit of US$11.0 million in the first quarter of 2025, compared to a net loss of US$3.5 million in the same period of 2024.

The difference between loss from operations and net profit in the first quarter of 2025 was primarily because of a US$12.4 million interest income achieved mainly due to well implemented treasury strategies on the Company’s cash, time deposits and treasury securities recorded as short-term and long-term investments.

The Company had a non-GAAP net profit of US$19.3 million in the first quarter of 2025, up 57.2% compared to US$12.3 million in the same period of 2024, demonstrating the Company’s ability to sustain strong profitability on a non-GAAP basis.

Net margin in the first quarter of 2025 was 14.8%, improving by 20.5 percentage points from negative 5.7% in the same period of 2024. Non-GAAP net margin in the first quarter of 2025 was 25.8%, improving by 5.9 percentage points from 19.9% in the same period of 2024.

BASIC AND DILUTED NET LOSS/PROFIT PER ADS

Basic and diluted net profit per ADS was US$0.02 in the first quarter of 2025, compared to basic and diluted net loss of US$0.01 in the same period of 2024. Each ADS represents one Class A ordinary share.

Non-GAAP basic and diluted net profit per ADS was US$0.03 in the first quarter of 2025, compared to non-GAAP basic and diluted net profit of US$0.02 in the same period of 2024.

CASH AND CASH EQUIVALENTS, TIME DEPOSITS AND TREASURY SECURITIES RECORDED AS SHORT-TERM AND LONG-TERM INVESTMENTS

Cash and cash equivalents, time deposits and treasury securities recorded as short-term and long-term investments were US$1,023.7 million as of March 31, 2025, compared to US$1,016.7 million as of December 31, 2024, which the Company believes is sufficient to meet its current liquidity and working capital needs.

NET CASH GENERATED FROM OPERATING ACTIVITIES

Net cash generated from operating activities in the first quarter of 2025 was US$9.4 million, compared to US$14.5 million in the same period of 2024. The net cash generated from operating activities for the first quarter of 2025 mainly due to working capital changes in the ordinary course of business.

For further information on non-GAAP financial measures presented above, see the section headed “Use of Non-GAAP Financial Measures.”

Business Outlook

From the initial enthusiasm at the beginning of the year about the accelerated evolution of AI technologies, to the shift in sentiment and industry slowdown caused by global trade fluctuations under geopolitical policy influences in early April, the macro environment has undergone frequent and dramatic changes. These shifts have posed significant challenges to the cycles of the smart consumer electronics sector and its upstream and downstream supply chains. Although the external environment has shown some recent signs of improvement, uncertainties remain. We will continue to monitor developments in the entire business environment. Nonetheless, we remain positive on the long-term value that intelligent technologies can bring to all stakeholders. Therefore, with the effective implementation of the Company’s customer and product strategies, along with the utilization and innovation of emerging technologies like AI, the Company is confident in its long-term business prospects.

In response to this evolving market environment, the Company will remain committed to continuously iterating and improving its products and services and further enhancing software and hardware capabilities, particularly by leveraging the AI capabilities, expanding key customer base, investing in innovations and new opportunities, diversifying revenue streams, and further optimizing operating efficiency. At the same time, the Company understands that future trajectories may encounter challenges, including shifting consumer spending patterns, regional economic disparities, inventory management, foreign exchange rate and interest rates volatility, the imposition of new tariffs, or adjustments in existing tariffs or trade barriers, and broader geopolitical uncertainties.

Conference Call Information

The Company’s management will hold a conference call at 08:30 P.M. U.S. Eastern Time on Tuesday, May 20, 2025 (08:30 A.M. Beijing Time on Wednesday, May 21, 2025) to discuss the financial results. In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive access details for this conference including a conference access code, a PIN number (personal access code), the dial-in number, and an e-mail with detailed instructions to join the conference call.

Online registration:
https://register-conf.media-server.com/register/BIe169304a39d646bcb658aa96f86ff680

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.tuya.com, and a replay of the webcast will be available following the session.

About Tuya Inc.

Tuya Inc. (NYSE: TUYA; HKEX: 2391) is a global leading AI cloud platform service provider with a mission to build an AIoT developer ecosystem and enable everything to be smart. Tuya has pioneered a purpose-built AI cloud platform with cloud and generative AI capabilities that delivers a full suite of offerings, including Platform-as-a-Service, or PaaS, Software-as-a-Service, or SaaS, and smart solutions for developers of smart device, commercial applications, and industries. Through its AIoT developer platform, Tuya has activated a vibrant global developer community of brands, OEMs, AI agents, system integrators and independent software vendors to collectively strive for smart solutions ecosystem embodying the principles of green and low-carbon, security, high efficiency, agility, and openness.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses non-GAAP financial measures, such as non-GAAP operating expenses, non-GAAP (loss)/profit from operations (including non-GAAP operating margin), non-GAAP net profit (including non-GAAP net margin), and non-GAAP basic and diluted net profit per ADS, as supplemental measures to review and assess its operating performance. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company defines non-GAAP financial measures by excluding the impact of share-based compensation expenses and credit-related impairment of long-term investments from the respective GAAP financial measures. The Company presents the non-GAAP financial measures because they are used by the management to evaluate its operating performance and formulate business plans. The Company also believes that the use of the non-GAAP financial measures facilitates investors’ assessment of its operating performance.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using the aforementioned non-GAAP financial measures is that they do not reflect all items of expenses that affect the Company’s operations. Share-based compensation expenses and credit-related impairment of long-term investments have been and may continue to be incurred in the business and are not reflected in the presentation of non-GAAP measures. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP measures to the most directly comparable U.S. GAAP measures, all of 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.

Reconciliations of Tuya’s non-GAAP financial measures to the most comparable U.S. GAAP measures are included at the end of this press release.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statements. In some cases, forward-looking statements can be identified by words or phrases such as “may”, “will”, “expect”, “anticipate”, “target”, “aim”, “estimate”, “intend”, “plan”, “believe”, “potential”, “continue”, “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. The forward-looking statements included in this press release are only made as of the date hereof, and the Company disclaims any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances, except as required by law. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

Investor Relations Contact

Tuya Inc.
Investor Relations 
Email: ir@tuya.com

The Blueshirt Group 
Gary Dvorchak, CFA
Phone: +1 (323) 240-5796
Email: gary@blueshirtgroup.co

HL Strategy
Haiyan LI-LABBE
Email: hl@hl-strategy.com

 

 

TUYA INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
 AS OF DECEMBER 31, 2024 AND MARCH 31, 2025
(All amounts in US$ thousands (US$),
except for share and per share data, unless otherwise noted)

As of
December 31,
2024

As of
March 31,
2025

ASSETS

Current assets:

Cash and cash equivalents

653,334

763,788

Restricted cash

50

165

Short-term investments

194,536

89,985

Accounts receivable, net

7,592

9,591

Notes receivable, net

7,485

9,766

Inventories, net

23,840

21,583

Prepayments and other current assets, net

16,179

18,738

Total current assets

903,016

913,616

Non-current assets:

Property, equipment and software, net

6,619

8,557

Land use rights, net

8,825

8,793

Operating lease right-of-use assets, net

4,550

5,248

Long-term investments

180,092

181,875

Other non-current assets, net

678

314

Total non-current assets

200,764

204,787

Total assets

1,103,780

1,118,403

LIABILITIES AND SHAREHOLDERSEQUITY

Current liabilities:

Accounts payable

19,051

19,457

Advances from customers

31,346

27,145

Deferred revenue, current

7,525

7,797

Accruals and other current liabilities

32,257

67,806

Incomes tax payables

360

483

Lease liabilities, current

3,798

3,403

Total current liabilities

94,337

126,091

Non-current liabilities:

Lease liabilities, non-current

851

1,835

Deferred revenue, non-current

377

460

Other non-current liabilities

767

Total non-current liabilities

1,995

2,295

Total liabilities

96,332

128,386

TUYA INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
AS OF DECEMBER 31, 2024 AND MARCH 31, 2025
(All amounts in US$ thousands (US$),
except for share and per share data, unless otherwise noted)

As of
December 31, 2024

As of
March 31, 2025

Shareholdersequity:

Ordinary shares

Class A ordinary shares

25

27

Class B ordinary shares

4

4

Treasury stock

(15,726)

(1,050)

Additional paid-in capital

1,612,712

1,569,409

Accumulated other comprehensive loss

(19,716)

(19,539)

Accumulated deficit

(569,851)

(558,834)

Total shareholdersequity

1,007,448

990,017

Total liabilities and shareholdersequity

1,103,780

1,118,403

TUYA INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE (LOSS)/INCOME
(All amounts in US$ thousands (US$),
except for share and per share data, unless otherwise noted)

For the Three Months Ended

March 31, 2024

March 31, 2025

Revenue

61,662

74,687

Cost of revenue

(32,177)

(38,436)

Gross profit

29,485

36,251

Operating expenses:

Research and development expenses

(23,474)

(22,810)

Sales and marketing expenses

(8,983)

(8,347)

General and administrative expenses

(15,474)

(8,929)

Other operating incomes, net

2,079

2,383

Total operating expenses

(45,852)

(37,703)

Loss from operations

(16,367)

(1,452)

Other income

Other non-operating income, net

778

767

Financial income, net

12,807

12,395

Foreign exchange (loss)/gain, net

(105)

44

(Loss)/profit before income tax expense

(2,887)

11,754

Income tax expense

(656)

(737)

Net (loss)/profit

(3,543)

11,017

Net (loss)/profit attributable to Tuya Inc.

(3,543)

11,017

Net (loss)/profit attribute to ordinary shareholders

(3,543)

11,017

Net (loss)/profit

(3,543)

11,017

Other comprehensive (loss)/income

Transfer out of fair value changes of long-term investments

(65)

Foreign currency translation

(428)

177

Total comprehensive (loss)/income attributable to Tuya Inc.

(4036)

11,194

TUYA INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE (LOSS)/INCOME (CONTINUED)
(All amounts in US$ thousands (US$),
except for share and per share data, unless otherwise noted)

For the Three Months Ended

March 31, 2024

March 31, 2025

Net (loss)/profit attributable to Tuya Inc.

(3,543)

11,017

Net (loss)/profit attributable to ordinary shareholders

(3,543)

11,017

Weighted average number of ordinary shares used in computing net (loss)/profit per share, basic and diluted

– Basic

559,133,184

606,308,258

– Diluted

559,133,184

608,490,640

Net (loss)/profit per share attributable to ordinary shareholders, basic and diluted

– Basic

(0.01)

0.02

– Diluted

(0.01)

0.02

Share-based compensation expenses were included in:

Research and development expenses

3,506

2,016

Sales and marketing expenses

1,385

738

General and administrative expenses

10,923

5,521

TUYA INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in US$ thousands (US$),
except for share and per share data, unless otherwise noted)

For the Three Months Ended

March 31, 2024

March 31, 2025

Net cash generated from operating activities

14,490

9,352

Net cash generated from investing activities

16,195

101,183

Net cash generated from financing activities

254

2

Effect of exchange rate changes on cash and cash equivalents, restricted cash

(126)

32

Net increase in cash and cash equivalents, restricted cash

30,813

110,569

Cash and cash equivalents, restricted cash at the beginning of period

498,688

653,384

Cash and cash equivalents, restricted cash at the end of period

529,501

763,953

TUYA INC.
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO THE MOST
DIRECTLY COMPARABLE FINANCIAL MEASURES
(All amounts in US$ thousands (US$),
except for share and per share data, unless otherwise noted)

For the Three Months Ended

March 31, 2024

March 31, 2025

Reconciliation of operating expenses to non-GAAP operating expenses                                                       

Research and development expenses           

(23,474)

(22,810)

Add: Share-based compensation expenses

3,506

2,016

Adjusted Research and development expenses

(19,968)

(20,794)

Sales and marketing expenses

(8,983)

(8,347)

Add: Share-based compensation expenses

1,385

738

Adjusted Sales and marketing expenses

(7,598)

(7,609)

General and administrative expenses

(15,474)

(8,929)

Add: Share-based compensation expenses

10,923

5,521

Adjusted General and administrative expenses

(4,551)

(3,408)

Reconciliation of loss from operations to non-GAAP (loss)/profit from operations

Loss from operations

(16,367)

(1,452)

Operating margin

(26.5) %

(1.9) %

Add: Share-based compensation expenses

15,814

8,275

Non-GAAP (loss)/profit from operations

(553)

6,823

Non-GAAP Operating margin

(0.9) %

9.1 %

For the Three Months Ended

March 31, 2024

March 31, 2025

Reconciliation of net (loss)/profit to non-GAAP net profit

Net (loss)/profit

(3,543)

11,017

Net margin

(5.7) %

14.8 %

Add: Share-based compensation expenses

15,814

8,275

Non-GAAP Net profit

12,271

19,292

Non-GAAP Net margin

19.9 %

25.8 %

Weighted average number of ordinary shares used in computing non-GAAP net profit per share

– Basic

559,133,184

606,308,258

– Diluted

591,737,410

608,490,640

Non-GAAP net profit per share attributable to ordinary shareholders

– Basic

0.02

0.03

– Diluted

0.02

0.03

 

 

 

 

ZTO Reports First Quarter 2025 Unaudited Financial Results

Parcels  Volume Increased 19.1% to 8.5 Billion
Adjusted Net Income Grew 1.6% to RMB2.3 Billion
Annual Volume Guidance Reiterated to Grow 20%-24%

SHANGHAI, May 21, 2025 /PRNewswire/ — ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057), a leading and fast-growing express delivery company in China (“ZTO” or the “Company”), today announced its unaudited financial results for the first quarter ended March 31, 2025[1]. The Company grew parcel volume by 19.1% year over year while maintaining high quality of service and customer satisfaction. Adjusted net income[2] increased 1.6% to reach RMB2.3 billion. Net cash generated from operating activities was RMB2.4 billion.

F irst  Quarter 2025  Financial Highlights

  • Revenues were RMB10,891.5 million (US$1,500.9 million), an increase of 9.4% from RMB9,960.0 million in the same period of 2024.
  • Gross profit was RMB2,689.2 million (US$370.6 million), a decrease of 10.4% from RMB3,002.1 million in the same period of 2024.
  • Net income was RMB2,039.2 million (US$281.0 million), an increase of 40.9% from RMB1,447.7 million in the same period of 2024.
  • Adjusted EBITDA[3] was RMB3,686.7 million (US$508.0 million), an increase of 0.7% from RMB3,660.4 million in the same period of 2024.
  • Adjusted net income was RMB2,259.3 million (US$311.3 million), an increase of 1.6% from RMB2,224.0 million in the same period of 2024.
  • Basic and diluted net earnings per American depositary share (“ADS”[4]) were RMB2.50 (US$0.34) and RMB2.44 (US$0.34), an increase of 41.2% and 39.4% from RMB1.77 and RMB1.75 in the same period of 2024, respectively.
  • Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders[5] were RMB2.77 (US$0.38) and RMB2.71 (US$0.37), an increase of 1.1% and 1.1% from RMB2.74 and RMB2.68 in the same period of 2024, respectively.
  • Net cash provided by operating activities was RMB2,363.0 million (US$325.6 million), compared with RMB2,031.0 million in the same period of 2024.

Operational Highlights for F irst  Quarter 2025

  • Parcel volume was 8,539 million, an increase of 19.1% from 7,171 million in the same period of 2024.
  • Number of pickup/delivery outlets was over 31,000 as of March 31, 2025.
  • Number of direct network partners was approximately 6,000 as of March 31, 2025.
  • Number of self-owned line-haul vehicles was over 10,000 as of March 31, 2025, out of which, over 9,400 were high capacity 15 to 17-meter-long models compared to over 9,100 as of March 31, 2024.
  • Number of line-haul routes between sorting hubs was over 3,900 as of March 31, 2025.
  • Number of sorting hubs was 95 as of March 31, 2025, among which 91 were operated by the Company and 4 by the Company’s network partners.

(1)   An investor relations presentation accompanies this earnings release and can be found at http://zto.investorroom.com

(2)   Adjusted net income is a non-GAAP financial measure, which is defined as net income before share-based compensation expense and non-recurring items such as impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary and corresponding tax impact which management aims to better represent the underlying business operations.

(3)   Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses, and further adjusted to exclude the shared-based compensation expense and non-recurring items such as impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary which management aims to better represent the underlying business operations.

(4)   One ADS represents one Class A ordinary share.

(5)   Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders is a non-GAAP financial measure. It is defined as adjusted net income attributable to ordinary shareholders divided by weighted average number of basic and diluted American depositary shares, respectively.

Mr. Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO, commented, “During the first quarter, ZTO maintained leading service quality and achieved 8.5 billion of parcel volume and 2.3 billion of adjusted net income. Retail volume increased by 46% year over year for the quarter as we penetrated deeper into reverse logistics, and we continued to work closely with various e-commerce platform and enterprise customers to develop differentiated products and services which include time-definite delivery and customized KA consumer services.”

Mr. Lai added, “We believe competition in China’s express delivery industry has reached the “white-hot” stage, and it is further exacerbated by a greater portion of volume being either low value or loss-making for the logistic service providers. Our approach to network policies has been on maintaining consistency and cultivating long-term stability. At times of fierce competition, we are learning to better leverage our existing competitive advantage and at the same time, stay focused on initiatives that can bring about long-term prospects of profitable growth.”

Ms. Huiping Yan, Chief Financial Officer of ZTO, commented, “ZTO’s core express ASP decreased by 11 cents largely driven by 16 cents in higher volume incentives and 6 cents lower weight average per parcel partially offset by 12 cents increase in KA unit price. Combined unit sorting and transportation costs decreased 9 cents thanks to cost productivity gain initiatives. SG&A as a percentage of revenue was 4.7%. Cash flow from operating activities was 2.4 billion, and capital spending was 2 billion.”

Ms. Yan added, “Volume, backed by high quality of services, remains our top priority. Healthier profitability by the ZTO brand and its network partners relative to our peers are built upon decades of interdependent and cooperative relationship founded on our “shared success” philosophy. Achieving a reasonable level of corporate earnings, and at the same time, laying the groundwork and support our franchise partners to maintain confidence in long-term prospects, to reengineer last mile delivery processes and hereby reduce costs, and to increase their couriers’ share into retail profit, our concerted effort will forge new competitive advantage to expand ZTO’s volume leadership.”

F irst  Quarter 2025  Unaudited Financial Results

Three Months Ended March 31,

2024

2025

RMB

%

RMB

US$

%

(in thousands, except percentages)

Express delivery services

9,240,172

92.8

10,122,290

1,394,889

92.9

Freight forwarding services

202,747

2.0

179,219

24,697

1.7

Sale of accessories

485,062

4.9

560,297

77,211

5.1

Others

32,025

0.3

29,659

4,087

0.3

Total revenues

9,960,006

100.0

10,891,465

1,500,884

100.0

Total Revenues were RMB10,891.5 million (US$1,500.9 million), an increase of 9.4% from RMB9,960.0 million in the same period of 2024. Revenue from the core express delivery business increased by 9.8% compared to the same period of 2024, as a net result of a 19.1% growth in parcel volume and a 7.8% decrease in parcel unit price. KA revenue, generated by direct sales organizations, increased by 129.3% driven by increase in e-commerce return parcels. Revenue from freight forwarding services decreased by 11.6% compared to the same period of 2024 mainly due to declining cross-border e-commerce pricing. Revenue from sales of accessories, largely consisted of sales of thermal paper used for digital waybills’ printing, increased by 15.5%. Other revenues were derived mainly from financing services.

Three Months Ended March 31,

2024

2025

% of

% of

RMB

revenues

RMB

US$

revenues

(in thousands, except percentages)

Line-haul transportation cost

3,371,493

33.9

3,483,065

479,979

32.0

Sorting hub operating cost

2,168,201

21.8

2,314,595

318,960

21.3

Freight forwarding cost

188,382

1.9

172,792

23,811

1.6

Cost of accessories sold

133,047

1.3

133,259

18,364

1.2

Other costs

1,096,798

11.0

2,098,534

289,186

19.2

Total cost of revenues

6,957,921

69.9

8,202,245

1,130,300

75.3

Total cost of revenues was RMB8,202.2 million (US$1,130.3 million), an increase of 17.9% from RMB6,957.9 million in the same period last year.

Line haul transportation cost was RMB3,483.1 million (US$480.0 million), an increase of 3.3% from RMB3,371.5 million in the same period last year. The unit transportation cost decreased 12.8% or 6 cents mainly attributable to better economies of scale, improved load rate and more effective route planning.

Sorting hub operating cost was RMB2,314.6 million (US$319.0 million), an increase of 6.8% from RMB2,168.2 million in the same period of last year. The increase primarily consisted of (i) RMB109.9 million (US$15.2 million) increase in labor-associated costs partially offset by automation-driven efficiency and (ii) RMB69.2 million (US$9.5 million) increase in depreciation and amortization costs associated with equipment and facilities. Sorting hub operating cost per unit decreased 10.0% or 3 cents as automation and standardization in operating procedures plus effective performance evaluation continued to dig deep for productivity gain. As of March 31, 2025, there were 631 sets of automated sorting equipment in service, compared to 461 sets as of March 31, 2024.

Cost of accessories sold was RMB133.3 million (US$18.4 million), increased by 0.2% compared with RMB133.0 million in the same period last year.

Other costs of RMB2,098.5 million (US$289.2 million), increased 91.3% from RMB1,096.8 million in the same period last year, which included an increase of RMB957.4 million (US$131.9 million) for serving higher-valued enterprise customers.

Gross Profit was RMB2,689.2 million (US$370.6 million), decreased by 10.4% from RMB3,002.1 million in the same period last year. Gross margin rate was 24.7% compared to 30.1% in the same period last year.

Total Operating Expenses were RMB283.8 million (US$39.1 million), compared to RMB735.4 million in the same period last year.

Selling, general and administrative expenses were RMB737.5 million (US$101.6 million), decreased by 17.7% from RMB896.6 million in the same period last year. The decrease consisted of a RMB109.1 million (US$15.0 million) decrease in compensation and benefit expenses. Excluding a RMB37.3 million one-time charge in the same period last year for loss on collection with a supplier, the decrease was 14.2% year over year.

Other operating income, net was RMB453.7 million (US$62.5 million), compared to RMB161.3 million in the same period last year. Other operating income mainly consisted of (i) RMB407.6 million (US$56.2 million) of government subsidies and tax rebates, and (ii) RMB35.9 million (US$4.9 million) of rental and other income.

Income from operations was RMB2,405.4 million (US$331.5 million), an increase of 6.1% from RMB2,266.7 million for the same period last year. The operating margin rate was 22.1% compared to 22.8% in the same period last year.

Interest income was RMB198.4 million (US$27.3 million), compared with RMB245.0 million in the same period last year.

Interest expenses was RMB68.9 million (US$9.5 million), compared with RMB83.9 million in the same period last year.

Gain  from fair value changes of financial instruments was RMB36.6 million (US$5.0 million), compared with a gain of RMB42.7 million in the same period last year. Such gain or loss from fair value changes of the financial instruments is quoted by commercial banks according to market-based estimation of future redemption prices.

Income tax expenses were RMB531.6 million (US$73.3 million) compared to RMB566.3 million in the same period last year. Taxable income for the same period last year reflected a RMB478.4 million non-tax-deductible impairment losses on investment in Cainiao Smart Logistics Network Limited upon a tender offer repurchase. 

Net income was RMB2,039.2 million (US$281.0 million), which increased by 40.9% from RMB1,447.7 million in the same period last year.

Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB2.50 (US$0.34) and RMB2.44 (US$0.34), compared to basic and diluted earnings per ADS of RMB1.77 and RMB1.75 in the same period last year, respectively.

Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were RMB2.77 (US$0.38) and RMB2.71 (US$0.37), compared with RMB2.74 and RMB2.68 in the same period last year, respectively.

Adjusted net income was RMB2,259.3 million (US$311.3 million), compared with RMB2,224.0 million during the same period last year.

EBITDA [1] was RMB3,466.6 million (US$477.7 million), compared with RMB2,884.1 million in the same period last year.

Adjusted EBITDA was RMB3,686.7 million (US$508.0 million), compared to RMB3,660.4 million in the same period last year.

Net cash provided by operating activities was RMB2,363.0 million (US$325.6 million), compared with RMB2,031.0 million in the same period last year.

(1)   EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses which management aims to better represent the underlying business operations.

Recent Developments

Change of Board Composition

The Board of Directors of the Company (the “Board”) has announced the following changes, effective April 25, 2025: Ms. Di Xu has been appointed as a director, and Mr. Xudong Chen has resigned from his position as a director. The Company confirms that Mr. Chen’s resignation was not related to any disagreement with the Company.

Company Share Repurchase Program

The Board has approved its share repurchase program in November 2018 and made subsequent modifications, whereby the latest modification increased the aggregate value of shares that may be repurchased to US$2.0 billion and extended the effective period through June 30, 2025. As of March 31, 2025, the Company had purchased an aggregate of 50,899,498 ADSs for US$1,228.3 million on the open market, including repurchase commissions. The remaining funds available under the share repurchase program are US$771.7 million.

On May 20, 2025, the Company announced to extend the current share repurchase program to June 30, 2026. The Company believes that the share repurchase program represents ZTO’s confidence in the overall market opportunities as well as ZTO’s solid operating fundamentals and financial strength for sustained profitable growth and value creation for its shareholders.

Business Outlook

Based on current market and operating conditions, the Company reiterates its 2025 parcel volume guidance of 40.8 billion to 42.2 billion, reflecting a 20% to 24% year over year growth. Such estimates represent management’s current and preliminary view, which are subject to change.

Exchange Rate

This announcement contains translation of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at the exchange rate of RMB7.2567 to US$1.00, the noon buying rate on March 31, 2025 as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve Systems.

Use of Non-GAAP Financial Measures

The Company uses EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders, and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders, each a non-GAAP financial measure, in evaluating ZTO’s operating results and for financial and operational decision-making purposes.

Reconciliations of the Company’s non-GAAP financial measures to its U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures.

The Company believes that such Non-GAAP measures help identify underlying trends in ZTO’s business that could otherwise be distorted by the effect of the related expenses and gains that the Company includes in income from operations and net income. The Company believes that EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by ZTO’s management in its financial and operational decision-making.

EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders should not be considered in isolation or construed as an alternative to net income or any other measure of performance or as an indicator of the Company’s operating performance. Investors are encouraged to compare the historical non-GAAP financial measures to the most directly comparable GAAP measures. EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to ZTO’s data. ZTO encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure.

Conference Call Information

ZTO’s management team will host an earnings conference call at 8:30 PM U.S. Eastern Time on Tuesday, May 20, 2025 (8:30 AM Beijing Time on May 21, 2025).

Dial-in details for the earnings conference call are as follows:

United States:

1-888-317-6003

Hong Kong:

800-963-976

Mainland China:

4001-206-115

Singapore:

800-120-5863

International:

1-412-317-6061

Passcode:

7604109

Please dial in 15 minutes before the call is scheduled to begin and provide the passcode to join the call.

A replay of the conference call may be accessed by phone at the following numbers until May 27, 2025:

United States:

1-877-344-7529

International:

1-412-317-0088

Passcode:

5288285

Additionally, a live and archived webcast of the conference call will be available at http://zto.investorroom.com

About ZTO Express (Cayman) Inc.

ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK:2057) (“ZTO” or the “Company”) is a leading and fast-growing express delivery company in China. ZTO provides express delivery service as well as other value-added logistics services through its extensive and reliable nationwide network coverage in China.

ZTO operates a highly scalable network partner model, which the Company believes is best suited to support the significant growth of e-commerce in China. The Company leverages its network partners to provide pickup and last-mile delivery services, while controlling the mission-critical line-haul transportation and sorting network within the express delivery service value chain.

For more information, please visit http://zto.investorroom.com

Safe Harbor Statement

This announcement contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and other similar expressions. Among other things, the business outlook and quotations from management in this announcement contain forward-looking statements. ZTO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “HKEX”), in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of the HKEX, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including but not limited to statements about ZTO’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: risks relating to the development of the e-commerce and express delivery industries in China; its significant reliance on certain third-party e-commerce platforms; risks associated with its network partners and their employees and personnel; intense competition which could adversely affect the Company’s results of operations and market share; any service disruption of the Company’s sorting hubs or the outlets operated by its network partners or its technology system; ZTO’s ability to build its brand and withstand negative publicity, or other favorable government policies. Further information regarding these and other risks is included in ZTO’s filings with the SEC and the HKEX. All information provided in this announcement is as of the date of this announcement, and ZTO does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

UNAUDITED CONSOLIDATED FINANCIAL DATA

Summary of Unaudited Consolidated Comprehensive Income Data:

Three Months Ended March  31,

2024

2025

RMB

RMB

US$

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

Revenues

9,960,006

10,891,465

1,500,884

Cost of revenues

(6,957,921)

(8,202,245)

(1,130,300)

Gross profit

3,002,085

2,689,220

370,584

Operating (expenses)/income:

Selling, general and administrative

(896,641)

(737,511)

(101,632)

Other operating income, net

161,257

453,669

62,517

Total operating expenses

(735,384)

(283,842)

(39,115)

Income from operations

2,266,701

2,405,378

331,469

Other income/(expenses):

Interest income

245,021

198,392

27,339

Interest expense

(83,916)

(68,876)

(9,491)

Gain from fair value changes of financial instruments

42,720

36,613

5,045

Gain on disposal of equity investees, subsidiaries and others

451

147

20

Impairment of investment in equity investees

(478,364)

Foreign currency exchange gain/(loss)before tax

5,384

(4,044)

(557)

Income before income tax, and share of income in equity method investments

1,997,997

2,567,610

353,825

Income tax expense

(566,305)

(531,574)

(73,253)

Share of income in equity method investments

16,055

3,145

433

Net income

1,447,747

2,039,181

281,005

Net income attributable to non-controlling interests

(21,701)

(45,934)

(6,330)

Net income attributable to ZTO Express (Cayman) Inc.

1,426,046

1,993,247

274,675

Net income attributable to ordinary shareholders

1,426,046

1,993,247

274,675

Net earnings per share attributed to ordinary shareholders

Basic

1.77

2.50

0.34

Diluted

1.75

2.44

0.34

Weighted average shares used in calculating net earnings per ordinary

share/ADS

Basic

804,935,791

798,486,427

798,486,427

Diluted

836,144,858

832,052,527

832,052,527

Net income

1,447,747

2,039,181

281,005

Other comprehensive income/(expenses), net of tax of nil:

Foreign currency translation adjustment

(82,330)

8,701

1,199

Comprehensive income

1,365,417

2,047,882

282,204

Comprehensive income attributable to non-controlling interests

(21,701)

(45,934)

(6,330)

Comprehensive income attributable to ZTO Express (Cayman) Inc.

1,343,716

2,001,948

275,874

 

Unaudited Consolidated Balance Sheets Data:

As of

December 31,

March 31,

2024

2025

RMB

RMB

US$

(in thousands, except for share data)

ASSETS

Current assets

Cash and cash equivalents

13,465,442

12,417,946

1,711,239

Restricted cash

37,517

29,263

4,033

Accounts receivable, net

1,503,706

1,011,360

139,369

Financing receivables

1,178,617

1,001,378

137,994

Short-term investment

8,848,447

10,604,175

1,461,294

Inventories

38,569

35,521

4,895

Advances to suppliers

783,599

857,199

118,125

Prepayments and other current assets

4,329,664

4,533,838

624,780

Amounts due from related parties

168,160

80,108

11,039

Total current assets

30,353,721

30,570,788

4,212,768

Investments in equity investees

1,871,337

1,870,351

257,741

Property and equipment, net

33,915,366

34,527,479

4,758,014

Land use rights, net

6,170,233

6,299,962

868,158

Intangible assets, net

17,043

15,493

2,135

Operating lease right-of-use assets

566,316

552,064

76,076

Goodwill

4,241,541

4,241,541

584,500

Deferred tax assets

984,567

1,102,658

151,950

Long-term investment

12,017,755

11,538,510

1,590,049

Long-term financing receivables

861,453

949,391

130,830

Other non-current assets

919,331

938,888

129,382

Amounts due from related parties-non current

421,667

542,387

74,742

TOTAL ASSETS

92,340,330

93,149,512

12,836,345

LIABILITIES AND EQUITY

Current liabilities

Short-term bank borrowing

9,513,958

9,288,291

1,279,961

Accounts payable

2,463,395

2,541,205

350,187

Advances from customers

1,565,147

1,542,284

212,532

Income tax payable

488,889

479,582

66,088

Amounts due to related parties

202,766

137,613

18,964

Operating lease liabilities

183,373

176,356

24,303

Dividends payable

14,134

2,049,875

282,480

Convertible senior notes

7,270,081

7,238,497

997,492

Other current liabilities

6,571,492

5,602,727

772,073

Total current liabilities

28,273,235

29,056,430

4,004,080

Long-term bank borrowing

17,000

2,343

Non-current operating lease liabilities

377,717

363,217

50,053

Deferred tax liabilities

1,014,545

847,067

116,729

TOTAL LIABILITIES

29,665,497

30,283,714

4,173,205

Shareholders’ equity

Ordinary shares (US$0.0001 par value; 10,000,000,000 shares authorized;

810,339,182 shares issued and 798,622,719 shares outstanding as of December 31,
2024; 804,468,490 shares issued and 799,752,637 shares outstanding as of March
31, 2025)

523

519

72

Additional paid-in capital

24,389,905

24,355,076

3,356,219

Treasury shares, at cost

(1,131,895)

(271,027)

(37,349)

Retained earnings

39,098,553

38,415,878

5,293,850

Accumulated other comprehensive loss

(294,694)

(285,993)

(39,410)

ZTO Express (Cayman) Inc. shareholders’ equity

62,062,392

62,214,453

8,573,382

Noncontrolling interests

612,441

651,345

89,758

Total Equity

62,674,833

62,865,798

8,663,140

TOTAL LIABILITIES AND EQUITY

92,340,330

93,149,512

12,836,345

 

Summary of Unaudited Consolidated Cash Flow Data:

Three Months Ended March  31,

2024

2025

RMB

RMB

US$

(in thousands)

Net cash provided by operating activities

2,031,020

2,362,976

325,627

Net cash used in investing activities

(2,378,652)

(3,158,465)

(435,248)

Net cash provided by / (used in) financing activities

130,130

(261,091)

(35,979)

Effect of exchange rate changes on cash, cash equivalents and restricted cash   

38,603

(12,560)

(1,730)

Net decrease in cash, cash equivalents and restricted cash

(178,899)

(1,069,140)

(147,330)

Cash, cash equivalents and restricted cash at beginning of period

13,051,310

13,530,947

1,864,614

Cash, cash equivalents and restricted cash at end of period

12,872,411

12,461,807

1,717,284

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows:

As of

December 3 1 ,

March 3 1 ,

2024

2025

RMB

RMB

US$

(in thousands)

Cash and cash equivalents

13,465,442

12,417,946

1,711,239

Restricted cash, current

37,517

29,263

4,033

Restricted cash, non-current

27,988

14,598

2,012

Total cash, cash equivalents and restricted cash   

13,530,947

12,461,807

1,717,284

 

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended March  31,

2024

2025

RMB

RMB

US$

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

Net income

1,447,747

2,039,181

281,005

Add:

Share-based compensation expense [1]

298,387

220,269

30,354

Impairment of investment in equity investees [1]

478,364

Gain on disposal of equity investees, subsidiaries and others, net of income
   taxes

(451)

(121)

(17)

Adjusted net income

2,224,047

2,259,329

311,342

Net income

1,447,747

2,039,181

281,005

Add:

Depreciation

752,119

789,108

108,742

Amortization

33,980

37,819

5,212

Interest expenses

83,916

68,876

9,491

Income tax expenses

566,305

531,574

73,253

EBITDA

2,884,067

3,466,558

477,703

Add:

Share-based compensation expense

298,387

220,269

30,354

Impairment of investment in equity investees

478,364

Gain on disposal of equity investees, subsidiaries and others, before income
   taxes

(451)

(147)

(20)

Adjusted EBITDA

3,660,367

3,686,680

508,037

 

(1)   Net of income taxes of nil

 

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended March  31,

2024

2025

RMB

RMB

US$

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

Net income attributable to ordinary shareholders

1,426,046

1,993,247

274,675

Add:

Share-based compensation expense [1]

298,387

220,269

30,354

Impairment of investment in equity investees [1]

478,364

Gain on disposal of equity investees, subsidiaries and others, net of income

   taxes

(451)

(121)

(17)

Adjusted Net income attributable to ordinary shareholders

2,202,346

2,213,395

305,012

Weighted average shares used in calculating net earnings per ordinary share/ADS   

Basic

804,935,791

798,486,427

798,486,427

Diluted

836,144,858

832,052,527

832,052,527

Net earnings per share/ADS attributable to ordinary shareholders

Basic

1.77

2.50

0.34

Diluted

1.75

2.44

0.34

Adjusted net earnings per share/ADS attributable to ordinary shareholders

Basic

2.74

2.77

0.38

Diluted

2.68

2.71

0.37

 

(1)   Net of income taxes of nil

For investor and media inquiries, please contact:
ZTO Express (Cayman) Inc.
Investor Relations
E-mail: ir@zto.com
Phone: +86 21 5980 4508

 

FinVolution Group Reports First Quarter 2025 Unaudited Financial Results

-First quarter Transaction Volume reached RMB52.1 billion, up 7.9% year-over-year-

-First quarter International Transaction Volume reached RMB3.0 billion, up 36.4% year-over-year-

-First quarter Revenue reached RMB3,481.0 million, up 10.0% year-over-year-

-First quarter International Revenues reached RMB710.5 million, up 19.5% year-over-year and representing 20.4% of total net revenues-

SHANGHAI, May 21, 2025 /PRNewswire/ —  FinVolution Group (“FinVolution” or the “Company”) (NYSE: FINV), a leading fintech platform in China, Indonesia and the Philippines, today announced its unaudited financial results for the first quarter ended March 31, 2025.

For the Three Months Ended/As of

YoY

Change

March 31, 2024

March 31, 2025

Total Transaction Volume (RMB in billions)[1]           

48.3

52.1

7.9 %

Transaction Volume (China’s Mainland)[2]

46.1

49.1

6.5 %

Transaction Volume (International)[3]

2.2

3.0

36.4 %

Total Outstanding Loan Balance (RMB in billions)

65.3

74.1

13.5 %

Outstanding Loan Balance (China’s Mainland)[4]  

64.0

72.2

12.8 %

Outstanding Loan Balance (International)[5]

1.3

1.9

46.2 %

 

First Quarter 2025 China Market Operational Highlights

  • Cumulative registered users[6] reached 177.2 million as of March 31, 2025, an increase of 11.7% compared with March 31, 2024.
  • Cumulative borrowers[7] reached 27.3 million as of March 31, 2025, an increase of 7.1% compared with March 31, 2024.
  • Number of unique borrowers[8] for the first quarter of 2025 was 2.2 million, an increase of 22.2% compared with the same period of 2024.
  • Transaction volume[2] reached RMB49.1 billion for the first quarter of 2025, an increase of 6.5% compared with the same period of 2024.
  • Transaction volume facilitated for repeat individual borrowers[9] for the first quarter of 2025 was RMB42.6 billion, an increase of 8.4% compared with the same period of 2024.
  • Outstanding loan balance[4] reached RMB72.2 billion as of March 31, 2025, an increase of 12.8% compared with March 31, 2024.
  • Average loan size[10] was RMB10,494 for the first quarter of 2025, compared with RMB10,121 for the same period of 2024.
  • Average loan tenure[11] was 8.2 months for the first quarter of 2025, which remained unchanged compared with the same period of 2024.
  • 90 day+ delinquency ratio[12] was 2.04% as of March 31, 2025.

First Quarter 2025 International Market Operational Highlights

  • Cumulative registered users[13] reached 38.9 million as of March 31, 2025, an increase of 45.1% compared with March 31, 2024.
  • Cumulative borrowers[14] for the international market reached 7.6 million as of March 31, 2025, an increase of 49.0% compared with March 31, 2024.
  • Number of unique borrowers[15] for the first quarter of 2025 was 1.7 million, an increase of 106.1% compared with the same period of 2024.
  • Number of new borrowers[16] for the first quarter of 2025 was 0.7 million, an increase of 89.3% compared with the same period of 2024.
  • Transaction volume[3] reached RMB3.0 billion for the first quarter of 2025, an increase of 36.4% compared with the same period of 2024.
  • Outstanding loan balance[5] reached RMB1.9 billion as of March 31, 2025, an increase of 46.2% compared with March 31, 2024.
  • International business revenue was RMB710.5 million (US$97.9 million) for the first quarter of 2025, an increase of 19.5% compared with the same period of 2024, representing 20.4% of total revenue for the first quarter of 2025.

First Quarter 2025 Financial Highlights

  • Net revenue was RMB3,481.0 million (US$479.7 million) for the first quarter of 2025, compared with RMB3,165.1 million for the same period of 2024.
  • Net profit was RMB737.6 million (US$101.7 million) for the first quarter of 2025, compared with RMB532.0 million for the same period of 2024.
  • Non-GAAP adjusted operating income[17], which excludes share-based compensation expenses before tax, was RMB917.9 million (US$126.5 million) for the first quarter of 2025, compared with RMB658.7 million for the same period of 2024.
  • Diluted net profit per American depositary share (“ADS”) was RMB2.84 (US$0.39) and diluted net profit per share was RMB0.57 (US$0.08) for the first quarter of 2025, compared with RMB1.97 and RMB0.39 for the same period of 2024, respectively.
  • Non-GAAP diluted net profit per ADS was RMB2.97 (US$0.41) and non-GAAP diluted net profit per share was RMB0.59 (US$0.08) for the first quarter of 2025, compared with RMB2.08 and RMB0.42 for the same period of 2024, respectively. Each ADS of the Company represents five Class A ordinary shares of the Company.

[1] Represents the total transaction volume facilitated in China’s Mainland and the international markets on the Company’s platforms during the period presented.

[2] Represents our transaction volume facilitated in China’s Mainland during the period presented. During the first quarter, RMB18.4 billion was facilitated under the capital-light model, for which the Company does not bear principal risk.

[3] Represents our transaction volume facilitated in markets outside China’s Mainland during the period presented.

[4] Outstanding loan balance (China’s Mainland) as of any date refers to the balance of outstanding loans in China’s Mainland market excluding loans delinquent for more than 180 days from such date. As of March 31, 2025, RMB31.9 billion was facilitated under the capital-light model, for which the Company does not bear principal risk.

[5] Outstanding loan balance (international) as of any date refers to the balance of outstanding loans in the international markets excluding loans delinquent for more than 30 days from such date.

[6] On a cumulative basis, the total number of users in China’s Mainland market registered on the Company’s platform as of March 31, 2025.

[7] On a cumulative basis, the total number of borrowers in China’s Mainland market registered on the Company’s platform as of March 31, 2025.

[8] Represents the total number of borrowers in China’s Mainland who successfully borrowed on the Company’s platform during the period presented.

[9] Represents the transaction volume facilitated for repeat borrowers in China’s Mainland who successfully completed a transaction on the Company’s platform during the period presented.

[10] Represents the average loan size on the Company’s platform in China’s Mainland during the period presented.

[11] Represents the average loan tenor on the Company’s platform in China’s Mainland during the period presented.

[12] “90 day+ delinquency ratio” refers to the outstanding principal balance of loans, excluding loans facilitated under the capital-light model, that were 90 to 179 calendar days past due as a percentage of the total outstanding principal balance of loans, excluding loans facilitated under the capital-light model on the Company’s platform as of a specific date. Loans that originated outside China’s Mainland are not included in the calculation.

[13] On a cumulative basis, the total number of users registered on the Company’s platforms outside China’s Mainland market, as of March 31, 2025.

[14] On a cumulative basis, the total number of borrowers on the Company’s platforms outside China’s Mainland market, as of March 31, 2025.

[15] Represents the total number of borrowers outside China’s Mainland who successfully borrowed on the Company platforms during the period presented.

[16] Represents the total number of new borrowers outside China’s Mainland whose transactions were facilitated on the Company’s platforms during the period presented.

[17] Please refer to “UNAUDITED Reconciliation of GAAP and Non-GAAP Results” for reconciliation between GAAP and Non-GAAP adjusted operating income.

[18] Change in Presentation of Consolidated Statements of Cash Flows: During the fourth quarter of 2024, the Company elected to change its presentation of the cash flows associated with funds held for customers and funds paid on behalf of customers within its Consolidated Statements of Cash Flows. The balances for the first quarter of 2024 have been adjusted to conform to the current period presentation.

Mr. Tiezheng Li, Vice Chairman and Chief Executive Officer of FinVolution, commented, “We delivered strong first quarter results in 2025 despite seasonal softness. Total transaction volume reached RMB52.1 billion and outstanding loan balance rose to RMB74.1 billion, representing year-over-year increases of 7.9% and 13.5%, respectively. This performance demonstrates the continued strong execution of our Local Excellence, Global Outlook strategy.

“As of the end of the first quarter of 2025, we had cumulatively served 35.0 million borrowers across China, Indonesia and the Philippines, while adding 1.2 million new borrowers within the quarter—our third straight quarter surpassing the one million mark. Looking ahead, we are confident that our diversified and resilient business is well-positioned to navigate ongoing global macro uncertainties. While maintaining a prudent approach, we remain optimistic about achieving growth across our footprint markets,” concluded Mr. Li.

Mr. Jiayuan Xu, Chief Financial Officer of FinVolution, continued, “Our strong first quarter performance was reflected across our key financial metrics. Net revenue reached RMB3,481.0 million, marking a healthy 10.0% increase compared to the same period last year, while net profit grew 38.7% year-over-year to RMB737.6 million. Our international business maintained its growth momentum, with its revenues increasing 19.5% year-over-year to RMB710.5 million. This revenue stream represented 20.4% of total net revenue, up from 18.8% in the same period last year, demonstrating increasing contribution from our global operations.

“In addition, our total liquidity position, consisting of cash and cash equivalents and short-term investments, remained strong at RMB8.5 billion, underscoring a robust balance sheet that supports our ongoing operations and our efforts to consistently enhance shareholder returns,” concluded Mr. Xu.

First Quarter 2025 Financial Results

Net revenue for the first quarter of 2025 was RMB3,481.0 million (US$479.7 million), compared with RMB3,165.1 million for the same period of 2024. This increase was primarily due to the increase in loan facilitation service fees and other revenue.

Loan facilitation service fees were RMB1,477.8 million (US$203.6 million) for the first quarter of 2025, compared with RMB985.9 million for the same period of 2024. The increase was primarily due to the increase in the transaction volume and average rate of transaction service fees. 

Post-facilitation service fees were RMB380.6 million (US$52.5 million) for the first quarter of 2025, compared with RMB465.2 million for the same period of 2024. This decrease was primarily due to the rolling impact of deferred transaction fees.

Guarantee income was RMB1,099.5 million (US$151.5 million) for the first quarter of 2025, compared with RMB1,346.1 million for the same period of 2024. This decrease was primarily due to the decrease in risk-bearing loans in the China market, as well as the rolling impact of deferred guarantee income. The fair value of quality assurance commitment upon loan origination is released as guarantee income systematically over the term of the loans subject to quality assurance commitment. 

Net interest income was RMB241.6 million (US$33.3 million) for the first quarter of 2025, compared with RMB231.3 million for the same period of 2024. This increase was primarily due to the increase in the average outstanding loan balances of on-balance sheet loans in the China market.

Other revenue was RMB281.5 million (US$38.8 million) for the first quarter of 2025, compared with RMB136.5 million for the same period of 2024. This increase was primarily due to the increase in the contributions from other revenue streams including referral fees.

Origination, servicing expenses and other costs of revenue were RMB620.5 million (US$85.5 million) for the first quarter of 2025, compared with RMB539.6 million for the same period of 2024. This increase was primarily due to the increase in facilitation costs and loan collection expenses as a result of higher outstanding loan balances. 

Sales and marketing expenses were RMB529.7 million (US$73.0 million) for the first quarter of 2025, compared with RMB449.2 million for the same period of 2024, as a result of our more proactive customer acquisition efforts focusing on quality borrowers in both China and the international markets.

Research and development expenses were RMB126.0 million (US$17.4 million) for the first quarter of 2025, compared with RMB120.5 million for the same period of 2024. This increase was primarily due to the increased investment in technology development.

General and administrative expenses were RMB106.9 million (US$14.7 million) for the first quarter of 2025, compared with RMB82.3 million for the same period of 2024. This increase was primarily due to the increased benefits we provided to our employees.

Provision for accounts receivable and contract assets was RMB117.7 million (US$16.2 million) for the first quarter of 2025, compared with RMB65.7 million for the same period of 2024. The increase was primarily due to higher transaction volume of off-balance sheet loans in the international markets. 

Provision for loans receivable was RMB85.4 million (US$11.8 million) for the first quarter of 2025, compared with RMB81.3 million for the same period of 2024. This increase was primarily due to the increase in the loan volume and the outstanding loan balances of on-balance sheet loans in the China market.

Credit losses for quality assurance commitment were RMB1,011.6 million (US$139.4 million) for the first quarter of 2025, compared with RMB1,198.1 million for the same period of 2024. The decrease was primarily due to the decrease in risk-bearing loans in the China market, partially offset by the increase in risk-bearing loans in the international markets.

Operating profit was RMB883.2 million (US$121.7 million) for the first quarter of 2025, compared with RMB628.4 million for the same period of 2024.

Non-GAAP adjusted operating income, which excludes share-based compensation expenses before tax, was RMB917.9 million (US$126.5 million) for the first quarter of 2025, compared with RMB658.7 million for the same period of 2024.

Other income was RMB8.4 million (US$1.2 million) for the first quarter of 2025, compared with RMB31.0 million for the same period of 2024. The decrease was mainly due to reduced income from investments.

Income tax expense was RMB153.9 million (US$21.2 million) for the first quarter of 2025, compared with RMB127.5 million for the same period of 2024. This increase was mainly due to the increase in pre-tax profit and partially offset by the decrease in effective tax rate.  

Net profit was RMB737.6 million (US$101.7 million) for the first quarter of 2025, compared with RMB532.0 million for the same period of 2024.

Net profit attributable to ordinary shareholders of the Company was RMB746.4 million (US$102.9 million) for the first quarter of 2025, compared with RMB527.7 million for the same period of 2024.

Diluted net profit per ADS was RMB2.84 (US$0.39) and diluted net profit per share was RMB0.57 (US$0.08) for the first quarter of 2025, compared with RMB1.97 and RMB0.39 for the same period of 2024, respectively.

Non-GAAP diluted net profit per ADS was RMB2.97 (US$0.41) and non-GAAP diluted net profit per share was RMB0.59 (US$0.08) for the first quarter of 2025, compared with RMB2.08 and RMB0.42 for the same period of 2024, respectively. Each ADS represents five Class A ordinary shares of the Company.

As of March 31, 2025, the Company had cash and cash equivalents of RMB5,406.5 million (US$745.0 million) and short-term investments, mainly in wealth management products and term deposits, of RMB3,055.7 million (US$421.1 million).

The following chart shows the historical cumulative 30-day plus past due delinquency rates by loan origination vintage for loan products facilitated through the Company’s platform in China’s Mainland as of March 31, 2025. Loans facilitated under the capital-light model, for which the Company does not bear principal risk, are excluded from the chart.

Click here to view the chart. 

Business Outlook

Strong execution of our Local Excellence, Global Outlook Strategy drove continued growth in the first quarter of 2025 despite domestic macro headwinds and seasonal softness. We remain confident in capitalizing on China’s recovery while maintaining growth momentum in our international expansion. The Company reiterates its full-year 2025 total revenue guidance to be in the range of approximately RMB14.4 billion to RMB15.0 billion, representing year-over-year growth of approximately 10.0% to 15.0%.

The above forecast is based on the current market conditions and reflects the Company’s current preliminary views and expectations on market and operational conditions and the regulatory and operating environment, as well as customers’ and institutional partners’ demands, all of which are subject to change.

Conference Call

The Company’s management will host an earnings conference call at 8:30 PM U.S. Eastern Time on May 20, 2025 (8:30 AM Beijing/Hong Kong Time on May 21, 2025).

Dial-in details for the earnings conference call are as follows:

United States (toll free):

+1-888-346-8982

Canada (toll free):

+1-855-669-9657

International:

+1-412-902-4272

Hong Kong, China (toll free):

800-905-945

Hong Kong, China:

+852-3018-4992

Mainland, China:

400-120-1203

Participants should dial in at least five minutes before the scheduled start time and ask to be connected to the call for “FinVolution Group”.

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.finvgroup.com.

A replay of the conference call will be accessible approximately one hour after the conclusion of the live call until May 27, 2025, by dialing the following telephone numbers:

United States (toll free):

+1-877-344-7529

Canada (toll free):                

+1-855-669-9658

International:

+1-412-317-0088

Replay Access Code:

2098969

 

About FinVolution Group 

FinVolution Group is a leading fintech platform with strong brand recognition in China, Indonesia and the Philippines, connecting borrowers of the young generation with financial institutions. Established in 2007, the Company is a pioneer in China’s online consumer finance industry and has developed innovative technologies and has accumulated in-depth experience in the core areas of credit risk assessment, fraud detection, big data and artificial intelligence. The Company’s platforms, empowered by proprietary cutting-edge technologies, features a highly automated loan transaction process, which enables a superior user experience. As of March 31, 2025, the Company had 216.2 million cumulative registered users across China, Indonesia and the Philippines.

For more information, please visit https://ir.finvgroup.com

Use of Non-GAAP Financial Measures

We use non-GAAP adjusted operating income, non-GAAP operating margin, non-GAAP net profit, non-GAAP net profit attributable to FinVolution Group, and non-GAAP basic and diluted net profit per share and per ADS which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. We believe that these non-GAAP financial measures help identify underlying trends in our business by excluding the impact of share-based compensation expenses and expected discretionary measures. We believe that non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

Non-GAAP adjusted operating income, non-GAAP operating margin, non-GAAP net profit, non-GAAP net profit attributable to FinVolution Group, and non-GAAP basic and diluted net profit per share and per ADS are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tool, and when assessing our operating performance, cash flows or our liquidity, investors should not consider it in isolation, or as a substitute for net income, cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review our financial information in its entirety and not rely on a single financial measure.

For more information on this non-GAAP financial measure, please see the table captioned “Reconciliations of GAAP and Non-GAAP results” set forth at the end of this press release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.2567 to US$1.00, the rate in effect as of March 31, 2025 as certified for customs purposes by the Federal Reserve Bank of New York.

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. 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 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, uncertainties as to the Company’s ability to attract and retain borrowers and investors on its marketplace, its ability to increase volume of loans facilitated through the Company’s marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, laws, regulations and governmental policies relating to the online consumer finance industry in China, general economic conditions in China, and the Company’s ability to meet the standards necessary to maintain listing of its ADSs on the NYSE, including its ability to cure any non-compliance with the NYSE’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 FinVolution 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.

For investor and media inquiries, please contact:

In China:
FinVolution Group
Head of Capital Markets
Yam Cheng
Tel: +86 (21) 8030-3200 Ext. 8601
E-mail: ir@xinye.com 

Piacente Financial Communications
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: finv@tpg-ir.com   

In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: finv@tpg-ir.com

 

 

 

FinVolution Group

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except share data, or otherwise noted)

As of December 31,

As of March 31,

2024

2025

RMB 

RMB

USD

Assets

Cash and cash equivalents

4,672,772

5,406,481

745,033

Restricted cash

2,074,300

2,018,526

278,160

Short-term investments

2,832,382

3,055,696

421,086

Investments

1,173,003

1,141,890

157,357

Quality assurance receivable, net of credit loss allowance for
    quality assurance receivable of RMB426,949 and
    RMB432,418 as of December 31, 2024 and March 31, 2025,
    respectively 

1,639,591

1,537,306

211,846

Intangible assets

137,298

147,898

20,381

Property, equipment and software, net

623,792

616,120

84,904

Loans receivable, net of credit loss allowance for loans receivable
    of RMB226,467 and RMB263,237 as of December 31, 2024 and
    March 31, 2025, respectively

4,157,621

3,760,389

518,195

Accounts receivable and contract assets, net of credit loss
    allowance for accounts receivable and contract assets of
    RMB290,267 and RMB307,974 as of December 31, 2024 and
    March 31, 2025, respectively 

2,405,880

2,641,636

364,027

Deferred tax assets

2,513,865

2,795,057

385,169

Right of use assets

36,826

37,668

5,191

Prepaid expenses and other assets

1,289,380

1,221,091

168,271

Goodwill

50,411

50,411

6,947

Total assets

23,607,121

24,430,169

3,366,567

Liabilities and Shareholders’ Equity

Deferred guarantee income

1,515,950

1,381,146

190,327

Liability from quality assurance commitment

2,964,116

2,995,732

412,823

Payroll and welfare payable

290,389

190,907

26,308

Taxes payable

705,928

947,691

130,595

Short-term borrowings

5,594

26,968

3,716

Funds payable to investors of consolidated trusts

796,122

571,678

78,779

Contract liability

10,185

3,582

494

Deferred tax liabilities

491,213

552,681

76,161

Accrued expenses and other liabilities

1,245,184

1,421,397

195,874

Leasing liabilities

28,765

32,070

4,419

Dividends payable

510,201

70,308

Total liabilities

8,053,446

8,634,053

1,189,804

Commitments and contingencies

FinVolution Group Shareholders’ equity

Ordinary shares

103

103

14

Additional paid-in capital

5,815,437

5,854,162

806,725

Treasury stock

(1,765,542)

(1,772,993)

(244,325)

Statutory reserves

852,723

852,723

117,508

Accumulated other comprehensive income

92,626

76,353

10,522

Retained Earnings

10,208,717

10,444,922

1,439,349

Total FinVolution Group shareholders’ equity

15,204,064

15,455,270

2,129,793

Non-controlling interest

349,611

340,846

46,970

Total shareholders’ equity

15,553,675

15,796,116

2,176,763

Total liabilities and shareholders’ equity

23,607,121

24,430,169

3,366,567

 

 

 

FinVolution Group

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 (All amounts in thousands, except share data, or otherwise noted)

For the Three Months Ended March 31,

2024

2025

RMB 

RMB

USD

Operating revenue:

Loan facilitation service fees

985,940

1,477,798

203,646

Post-facilitation service fees

465,192

380,614

52,450

Guarantee income

1,346,115

1,099,514

151,517

     Net interest income

231,307

241,614

33,295

Other Revenue

136,527

281,501

38,792

Net revenue

3,165,081

3,481,041

479,700

Operating expenses:

       Origination, servicing expenses and other cost of revenue

(539,555)

(620,465)

(85,502)

Sales and marketing expenses

(449,209)

(529,703)

(72,995)

Research and development expenses

(120,495)

(126,041)

(17,369)

General and administrative expenses

(82,327)

(106,894)

(14,730)

Provision for accounts receivable and contract assets

(65,662)

(117,718)

(16,222)

Provision for loans receivable

(81,285)

(85,414)

(11,770)

Credit losses for quality assurance commitment

(1,198,099)

(1,011,615)

(139,404)

Total operating expenses

(2,536,632)

(2,597,850)

(357,992)

Operating profit

628,449

883,191

121,708

Other income, net

31,004

8,381

1,155

Profit before income tax expense

659,453

891,572

122,863

Income tax expenses

(127,477)

(153,931)

(21,212)

Net profit

531,976

737,641

101,651

Less: Net profit/(loss) attributable to non-controlling interest shareholders

4,275

(8,765)

(1,208)

Net profit attributable to FinVolution Group

527,701

746,406

102,859

Foreign currency translation adjustment, net of nil tax

11,132

(16,273)

(2,242)

Total comprehensive income attributable to FinVolution Group

538,833

730,133

100,617

Weighted average number of ordinary shares used in computing net income per share

Basic

1,311,510,218

1,265,759,932

1,265,759,932

Diluted

1,341,193,159

1,315,948,116

1,315,948,116

Net profit per share attributable to FinVolution

        Group’s ordinary shareholders

Basic

0.40

0.59

0.08

Diluted

0.39

0.57

0.08

Net profit per ADS attributable to FinVolution Group’s ordinary shareholders (one ADS equal five ordinary shares)

Basic

2.01

2.95

0.41

Diluted

1.97

2.84

0.39

 

 

 

FinVolution Group

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS[18]

 (All amounts in thousands, except share data, or otherwise noted)

Three Months Ended March 31,

2024

2025

RMB 

RMB

USD

Net cash provided by/(used in) operating activities

213,310

522,335

71,982

Net cash provided by/(used in) investing activities

925,695

365,196

50,326

Net cash provided by/(used in) financing activities

(310,143)

(198,331)

(27,332)

Effect of exchange rate changes on cash and cash equivalents

(8,204)

(11,265)

(1,554)

Net increase/(decrease) in cash, cash equivalent and restricted cash

820,658

677,935

93,422

Cash, cash equivalent and restricted cash at beginning of period

6,769,390

6,747,072

929,771

Cash, cash equivalent and restricted cash at end of period

7,590,048

7,425,007

1,023,193

 

 

 

 FinVolution Group

UNAUDITED Reconciliation of GAAP and Non-GAAP Results

 (All amounts in thousands, except share data, or otherwise noted)

For the Three Months Ended March 31,

2024

2025

RMB   

RMB

USD

Net Revenues

3,165,081

3,481,041

479,700

Less: total operating expenses

(2,536,632)

(2,597,850)

(357,992)

Operating Income

628,449

883,191

121,708

Add: share-based compensation expenses

30,289

34,679

4,779

Non-GAAP adjusted operating income

658,738

917,870

126,487

Operating Margin

19.9 %

25.4 %

25.4 %

Non-GAAP operating margin

20.8 %

26.4 %

26.4 %

Non-GAAP adjusted operating income

658,738

917,870

126,487

Add: other income, net

31,004

8,381

1,155

Less: income tax expenses

(127,477)

(153,931)

(21,212)

Non-GAAP net profit

562,265

772,320

106,430

Less: Net profit/(loss) attributable to non-controlling interest shareholders

4,275

(8,765)

(1,208)

Non-GAAP net profit attributable to FinVolution Group

557,990

781,085

107,638

Weighted average number of ordinary shares used in computing net income per share

Basic

1,311,510,218

1,265,759,932

1,265,759,932

Diluted

1,341,193,159

1,315,948,116

1,315,948,116

Non-GAAP net profit per share attributable to FinVolution Group’s ordinary shareholders

Basic

0.43

0.62

0.09

Diluted

0.42

0.59

0.08

Non-GAAP net profit per ADS attributable to FinVolution Group’s ordinary shareholders (one ADS equal five

ordinary shares)

Basic

2.13

3.09

0.43

Diluted

2.08

2.97

0.41

 

Health In Tech to Participate as Gold Sponsor at American Trust Investment Services National Conference 2025

STUART, Fl., May 21, 2025 /PRNewswire/ — Health In Tech (Nasdaq: HIT), an Insurtech platform company backed by third-party AI technology, today announced that CEO Tim Johnson and CFO Julia Qian will represent the company as a Gold Sponsor at the American Trust Investment Services National Conference 2025, to be held June 16–18, 2025, at the Andaz Hotel in San Diego, California.

Hosted by American Trust Investment Services, this exclusive event will bring together registered representatives, advisors, and preferred sponsors for an immersive three-day conference focused on business growth, collaboration, and innovation in financial services. As a Gold Sponsor, Health In Tech will showcase its leading AI-backed underwriting technology and self-funded healthcare solutions designed for small and mid-sized businesses.

“We’re excited to join the 2025 American Trust National Conference as a Gold Sponsor,” said Tim Johnson, Chairman & CEO of Health In Tech. “This event provides a unique opportunity to connect with influential advisors and share how our platform is enhancing transparency, efficiency, and affordability in healthcare benefits.”

HIT will actively participate in one-on-one meetings, engage with attendees in the vendor room, and present its strategic vision to raise awareness of its platform and highlight its role in driving innovation across the healthcare industry.

About Health In Tech

Health In Tech (Nasdaq: “HIT”) is an Insurtech platform company backed by third-party AI technology, which offers a marketplace that aims to improve processes in the healthcare industry through vertical integration, process simplification, and automation. By removing friction and complexities, we streamline the underwriting, sales and service process for insurance companies, licensed brokers, and TPAs. Learn more at healthintech.com.

About American Trust Investment Services

American Trust Investment Services, Inc. (“ATIS”) is a privately owned boutique broker-dealer and investment advisory firm serving clients nationwide. ATIS offers a full range of traditional and alternative investment solutions, including wealth management, insurance consulting, and access to capital markets. With clearing services through RBC and custodial relationships with leading financial institutions, ATIS is committed to supporting advisors through integrity, flexibility, and personalized service. Learn more at https://www.amtruinvest.com/investment-services.

Use of ForwardLooking Statements

Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about Health In Tech’s possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as “may,” “will,” “should,” “design,” “target,” “aim,” “hope,” “expect,” “could,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “predict,” “project,” “potential,” “goal,” or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to Health In Tech’s future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause Health In Tech’s actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Health In Tech’s control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Health In Tech’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to Health In Tech’s operations, results of operations, growth strategy and liquidity.

Investor Contact
Investor Relations
ir@healthintech.com

MWX Announces World’s First Open, Decentralized AI Marketplace for SMEs, Launching Soon to Bring Enterprise-Grade AI to 400 Million Businesses Worldwide

Powered by the team behind Southeast Asia’s premier AI builders, MWX prepares to launch an agentic, self-serve AI marketplace, removing barriers and opening access to ready-to-use AI for the world’s 400 million SMEs

SINGAPORE, May 21, 2025 /PRNewswire/ — MWX today announced its upcoming global launch, introducing the world’s first decentralized, open-access AI marketplace designed to bring powerful, ready-to-use AI tools directly to SMEs, without intermediaries or gatekeepers. Targeting the world’s 400 million SMEs, MWX is positioned as a transformative platform that bridges AI access by enabling business owners to deploy enterprise-grade AI solutions with simplicity, transparency, and autonomy.

MWX is the first decentralized AI marketplace for ready-to-use business solutions
MWX is the first decentralized AI marketplace for ready-to-use business solutions

MWX is built on the expertise and proven leadership of the same pioneers behind MediaWave, Indonesia’s most trusted digital intelligence platform. Over the past decade, the MediaWave team has delivered critical AI-powered platforms that supported nationwide projects and major corporations across Southeast Asia. Their track record includes innovations such as Indonesia’s first social media monitoring platform in 2010, Asia’s first political sentiment AI in 2012, the world’s first GenAI political dashboard Pemilu.AI in 2023, and the launch of Reporthink.AI in 2024, automating sustainability and annual reports.

MWX’s founding team brings together Southeast Asia’s leading AI, digital transformation, and Web3 leaders, including Nanda Ivens, former Tokocrypto CMO and APAC CEO of Mirum Agency, alongside Yose Rizal, the original builders behind MediaWave’s award-winning AI products. Together, they are applying their real-world enterprise experience to create an open, decentralized AI economy purpose-built for SMEs. Supported by global advisor Pandu Sastrowardoyo, the team is focused on removing the friction that has kept AI locked behind corporate firewalls.

Through MWX’s agentic AI marketplace, where next-generation AI agents are designed to act with autonomy, proactivity, and the ability to make decisions on behalf of users, SMEs will soon access self-serve AI services that automate key business functions through intuitive AI solutions and APIs. This empowers small business owners to deploy AI agents that can autonomously interact with other agents, services, and platforms. Built for interoperability, these AI solutions and APIs enable seamless integrations across tools and systems, creating connected, frictionless workflows that scale with business needs.

“At MWX, we are building on the legacy of AI that has served multinational corporations, but now we are doing it for the 400 million SMEs, which is the backbone of the world’s economy,” said Nanda Ivens, Co-Founder and CEO of MWX. “This is about opening the gates to technologies that were once inaccessible and making them work for real businesses, in their daily operations, at their pace. It’s not about buzzwords; it’s about bringing AI down to earth, letting SMEs own it, use it, and shape it. At the same time, we’re enabling AI startups across the region to access global markets, helping them scale their innovations and connect with businesses worldwide.”

Pandu Sastrowardoyo, Global Advisor at MWX, added, “MWX isn’t just riding the wave of generative AI. Instead, it’s built on over 15 years of real-world AI and machine learning tools that are already being used across industries. The platform we’re making allows businesses to not just use digital solutions; they also help shape and grow them. We aim to bridge the AI access gap and to lay the groundwork for any small business to adopt AI and ML in a right-sized way.”

With a roadmap that includes decentralized finance integrations, analytics dashboards, and business growth insights, MWX is setting itself apart as more than just a platform, it is positioning itself as the digital growth partner for SMEs worldwide, aiming to onboard 1,000,000 SME users and thousands AI startups across the region by 2028. MWX will open private beta access in the coming months, followed by community driven governance. To explore how MWX is building the future of decentralized AI for real-world business, visit mwxplatform.ai.

About MWX

MWX is the world’s first fully decentralized AI marketplace designed for ready-to-use business solutions, targeting the global SME market. Built by Southeast Asia’s leading AI and Web3 veterans, MWX brings together agentic AI services, DAO governance, and deflationary tokenomics into a unified ecosystem. The platform allows SMEs to access and transact AI solutions via fiat or crypto (MWXT), while embedding real economic value into its token economy through on-chain buyback and burn mechanisms. Backed by the team behind MediaWave and platforms like Pemilu.AI and Reporthink.AI, MWX merges enterprise-grade AI with Web3-native continuity and transparency. Learn more atmwxplatform.ai.

 

GATE Energy & HD Hyundai Heavy Industries Enter Strategic MOU for Offshore EPC & Commissioning Collaboration

HOUSTON, May 21, 2025 /PRNewswire/ — GATE Energy and HD Hyundai Heavy Industries (HHI) have signed a Memorandum of Understanding (MOU) formalizing their intent to collaborate on offshore energy infrastructure projects, marking a strategic alignment between two leaders in engineering, procurement, construction, and commissioning (EPCC).

GATE Energy and HD Hyundai Heavy Industries (HHI) have signed a Memorandum of Understanding (MOU).
GATE Energy and HD Hyundai Heavy Industries (HHI) have signed a Memorandum of Understanding (MOU).

Under the MOU, the two companies will jointly pursue Engineering, Procurement, Construction, and Installation (EPCI) opportunities in the offshore oil and gas sector, targeting global markets. HHI and GATE Energy will work together as strategic partners, leveraging their respective strengths in EPC and commissioning to deliver seamless project execution, with roles defined according to project-specific needs.

Mark Myhre, President of Commissioning at GATE Energy, commented, “This MOU represents the next chapter in a strong and growing relationship between GATE and HHI. Our collaboration on the King’s Quay and Shenandoah projects demonstrated what’s possible when two organizations align in both technical expertise and delivery mindset. We’re proud to formalize our intent to pursue future opportunities together, delivering value to clients across the offshore landscape.”

Jung-Ho, Park, Vice President of HHI, commented: “This MOU represents the next step in an already strong partnership built on mutual respect, technical excellence, and shared success. Through landmark projects like King’s Quay, Shenandoah, and the ongoing Project, we have forged a collaborative framework that consistently delivers superior outcomes. Together with GATE Energy, we are committed to advancing the offshore energy sector by providing integrated solutions that enhance predictability and create lasting value for our clients worldwide.”

The agreement underscores a shared commitment to delivering turnkey solutions that enhance schedule predictability in complex offshore environments. Both organizations bring proven execution experience across floating production systems, with HHI’s strength in hull and topside EPC delivery complemented by GATE Energy’s commissioning and startup capabilities.

Lee Jordan, CEO at GATE Energy, commented, “This agreement further builds on the deep working relationship between HHI and GATE Energy and positions us to jointly and efficiently deliver the next generation of facilities to the offshore energy industry.

The MOU provides a general framework for future cooperation and information sharing, with the flexibility to align on specific tenders as opportunities arise. It also includes provisions for joint planning, resource integration, and the potential development of execution models tailored to developer requirements.

About GATE Energy

GATE Energy is a 100% employee-owned, global project delivery firm, with a mission to improve project certainty in an uncertain world. They help developers successfully deliver projects —from front-end due diligence and owner’s engineering through construction management, turnkey commissioning, and initial startup. With a global footprint spanning North America, Asia, and Latin America—and decades of experience delivering both large and small projects—GATE Energy combines the scale of a multinational with the agility of a specialized partner that enables predictable project outcomes and safeguards project investments.

For more information on GATE Energy, visit www.gate.energy

About HD Hyundai Heavy Industries

HD Hyundai Heavy Industries (HHI) is a global leader in shipbuilding and EPC with extensive expertise across offshore platforms, FPSOs, FPUs, naval vessels, and large-scale energy infrastructure. Over its 50-year history, HHI has built a strong reputation for delivering complex projects with precision and reliability. Offshore & Energy Business Unit plays a pivotal role in advancing next-generation energy solutions. In addition to its proven capabilities in oil and gas, HHI is expanding its portfolio into eco-friendly energy, including offshore wind power, small modular reactors (SMRs), and carbon capture and storage (CCS) systems. Through these initiatives, HHI supports the global transition toward a low-carbon future.

For more information on HHI, visit https://english.hhi.co.kr

GATE Energy and HD Hyundai Heavy Industries (HHI) have signed a Memorandum of Understanding (MOU).
GATE Energy and HD Hyundai Heavy Industries (HHI) have signed a Memorandum of Understanding (MOU).