Pintec's Stock Slips 2% on Revenue Decline
The stock in Pintec Technology Holdings Ltd. (Nasdaq: PT) was trading down more than 2 percent by midday Monday after the company reported declining revenue for the first half-year.
The Beijing-based company said its revenue reached $69.8 million, down 17 percent year-over-year during the six months through June. Its net income hit $10.7 million, or 4 cents per American depositary share, skyrocketing 492 percent from a year ago, according to the report.
"In the face of difficult macroeconomic conditions and industry-wide challenges, we continued to execute our growth strategies and to transition our business focus towards providing technology services," Steven Sim, the chief financial officer of Pintec, said in a statement today.
In line with the shift of business, Pintec said that the volume of loans it has facilitated in the first half-year has declined 21 percent to $1 billion from a year ago. Meanwhile, the company has delved into markets of travel, education and mobile devices, expanded its cooperation with financial institutions and partnered with an offline travel agency, Caissa Travel.
Jun Dong, the chief executive officer of Pintec, said in a call with analysts today, "As we continue to face business environment changes, funding structure of our loan facilitation business has changed with less reliance on peer-to-peer or Jimu Box funding." The volume of loans facilitated at the company's lending unit Jimu Box has decreased by 60 percent in the first half-year, Pintec said.
He also said, "We also optimized our product offerings and continued to provide best-in-class services to our financial partners."
Sim added, "Going forward, we will continue to invest in optimizing our technical services, expanding our global footprint, and innovating our smart lending solutions."
The company recently announced that its former chairman and chief executive officer Wei Wei is taking a temporary medical leave.
Shares in Pintec soared more than 15 percent in early trading, then dropped to $2.24 per ADS on Monday afternoon.
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