#1Investor Presentation May 2021 FinVolution Group FINVOLUTION#2Disclaimer This presentation has been prepared by FinVolution Group (the "Company") pursuant to Section 5(d) of the U.S. Securities Act of 1933, as amended (the "Securities Act") solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any investment activity or trading strategy, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever, in the United States or anywhere else. This presentation does not constitute legal, regulatory, accounting or tax advice to you, we recommend that you seek independent third party legal, regulatory, accounting and tax advice regarding the contents of this document. 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The Company or any of its affiliates, advisors or representatives has not independently verified market, industry and product testing data provided by other third-party sources. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such information and estimates. This presentation also contains non-GAAP financial measures (including non-GAAP adjusted operating income and non-GAAP adjusted operating margin), which are provided as additional information to help you compare business trends among different reporting periods on a consistent basis and to enhance your overall understanding of the historical and current financial performance of the Company's operations. These non-GAAP financial measures should be considered in addition to results prepared in accordance with the U.S. GAAP, but should not be considered a substitute for or superior to the Company's U.S. GAAP results. In addition, the Company's calculation of these non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. This presentation contains certain forward-looking statements, including statements related to industry developments and the Company's future financial or business performance, strategies or expectations. 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 statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often include words such as "anticipates," "estimates," "expects," "projects," "intends," "plans," "believes" and words and terms of similar substance in connection with discussions of future performance. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements as a result of various factors and assumptions, many of which are beyond the Company's control. Neither the Company nor any of its affiliates, advisors, representatives has any obligation to, nor do any of them undertake to, revise or update the forward-looking statements contained in this presentation to reflect future events or circumstances. 2#3Corporate overview#4We leverage technologies to empower the financial institutions by connecting them with quality borrowers Do E (J Consumption Installment Consumption & Micro-small enterprise Quality Borrowers L Cash Installment High-quality Assets Credit Tech Post-loan Tech 信也 FINVOLUTION Data Security Anti-fraud Smart Marketing Stable and Low-cost Funding Tech Enabler Licensed Fls Deep Collaboration 4#5Proven operating history enabled by technology Digital platform with successful transition With improving funding cost and delinquency rates High quality growth Through shifting towards better quality borrowers Loan origination volume (2) RMB in billions 5+54%~84% 61.5 65.1 100-120 13.1 13.2 17.3 26.8 21.6 29-30 13-year proven operating history * Successful shift towards 100% Institutional funds(1) Advanced proprietary technology Thousands of variables for credit assessment FY 18 FY 19 FY20 FY21F 20Q1 Domestic loans Outstanding loan balance (3) RMB in billions Diversified business strategy Expansion into Southeast Asia 20Q2 20Q3 20Q4 21Q1 21Q2F ■International loans 32.5 29.1 26.7 26.7 24.3 24.0 21.1 22.3 FY 18 FY 19 FY20 20Q1 20Q2 20Q3 20Q4 21Q1 ■Domestic loan balance ■International loan balance (1)The proportion of loans facilitated by institutional partners increased from 44.8% in 2019 to 100.0% in 4Q19 and beyond. (2)Loan origination volume includes domestic and international business. (3)Outstanding loan balance represents loan balance of all businesses at the end of each period. 5#6Key milestones One of the largest P2P platforms in China Successful strategical transformation : -Funding from individual investors to licensed institutions. -Shift towards better quality borrowers. 2007 • Founded in July 2007, one of the largest P2P platforms in China known as PPDAI. In November, listed on NYSE(PPDF). •As of Sep 30, total cumulative origination volume reached RMB75 bn. As of Sep 30, total cumulative registered users reached 58mm. 2017 • Started exiting P2P business. • In July, entered into Strategic Agreement with Zhejiang University to Develop Al Research and Development Center. 2018 2019 • Successfully transited to loan-facilitation business model. • In November, strategically upgraded group name to FinVolution Group and proposed ticker symbol change from PPDF to FINV. • In December, approved by PBOC to access Credit Reference Center. • In December, invested in Haixia bank. • In December, subsidiary received a P2P license from the Financial Services Authority of Indonesia. • In December, fully exited from P2P business. ⚫ In December, 50+ cumulative financial institutional partners. • In December, total cumulative origination volume reached RMB300 bn. 2020 • In December, total cumulative registered users reached 116mm. 6#7Massive and fast-growing opportunity Underserved consumer finance demand Domestic China -Consumer credit-to-GDP at 13% vs 20% in US(1) -46% of adult population have credit records vs 81% in US(2) Consumer credit balance--- China vs US RMB in trillions International expansion -Large population of 700mm in SE Asia, of which 60% are under 35 -35% smartphone penetration Online consumer credit penetration % in SE Asia (3) 19.90% 18.40% 26.8 28.1 29.3 25.5 21.6 23.2 23.9 13.30% 13.2 China(2019): 21% 12.1 9.6 5.40% 3.2 5.9 3.9 4.8 2013 Sources: 2014 2015 2016 2017 2018 I consumer credit in China consumer credit in China/GDP% consumer credit in US 2019 consumer credit in US/GDP% (1)Wind, National Statistics, PBOC, World Bank, Federal Reserve. (2)US: Consumer Financial Protection Bureau, May 2015; China: PBOC Credit Reference Center, 2017; FinVolution estimates. (3)including online cash loan and consumption loan 35% 31% 27% 1% 1% Indonesia Philippines ■ 2019 ■ 2025E 1% Vietnam 7#8We leverage our innovative technologies to empower financial institutions Magic Mirror Big-Data Credit Assessment 99% of loan applications processed automatically(1) 92% of customer enquiries solved by Al customer service(2) Anomaly Detection goo Precision Complex Network Customer Targeting Virtual Collection 信也 FINVOLUTION Technology-enabled services Smart Bull Intelligent Collection & Customer Service Natural Language Processing Al Platform €2 (1) Source: Company filings (2) Data as of Mar 31, 2021 Octopus Dynamic Customer Acquisition Real-time Monitoring R Multi-factor Algorithm Match borrowers with funding partners within seconds 99% success rate in matching of funds (2) Magic Cube Efficient Capital Allocation 8#9Borrower acquisition through diverse online channels Joint modeling Online advertising TOUTIAO G Search engine BaiduB 搜狗搜索 marketing 应用宝上 vivo App stores Customer referrals 信也 FINVOLUTION 21% new borrower contribution (1) Do Our borrowers are from 97% of the cities in China Over 81% of our borrowers are between 20-40 years old (2) RMB 4,369 Average principal amount(3) 8.4 Months Average loan tenure(3) (1) % of loan volume generated by new borrowers. New borrowers are borrowers who have never successfully borrowed on our platform before in the three months ended Mar 31, 2021. (2) Calculated based on borrowers in Mainland China whose loans were facilitated in the three months ended Mar 31, 2021. (3) Calculated based on loans originated on our marketplace in Mainland China in the three months ended Mar 31, 2021. 9#10Sophisticated risk management technologies and capabilities 1 2 3 4 Automated fraud detection Credit scoring and assessment Post-facilitation monitoring Loan collection ANALYSIS Analytic rules Anti-fraud team 厚 Social network analysis Multiple partners' joint efforts Anomaly detection -D User info Proprietary data Third-party data A Magic Mirror Model Massive database of fraud cases (1) Loan applicants with credit rating of VIII will be rejected. Excellent Poor II, II, III, ...VII, VII (1) N: ☐ Automated message reminder before due date Third-party collection service providers Al-enabled internal collection team 10 10#11Shift to better quality borrowers with improving delinquency rates Delinquency rates by vintage(1) 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 1 2 3 4 5 6 7 8 9 10 11 12 2018Q1 ⚫2018Q2 .2019Q3 .2019Q4 2018Q3 -2020Q1 .2018Q4 2019Q1 2019Q2 2020Q2 2020Q3 2020Q4 Note: Data as of Mar 31, 2021. Represents the historical cumulative 30-day plus past due delinquency rates by loan origination vintage for all loan products in Mainland China. Vintage is defined as loans facilitated during a specified time period. Delinquency rate by vintage is defined as (i) the total amount of principal for all loans in a vintage that become delinquent, less (ii) the total amount of recovered past due principal for all loans in the same vintage, and divided by (iii) the total amount of initial principal for all loans in such vintage. (1) 11#12Successful business model transition Successful shift to institutional funding Shift towards better quality borrowers Loan volume % by funding sources Proportion of loan volume by credit rating(1) 100% 20.4% 10.0% 2Q18 4Q18 !!! 90% 20% 16% 80% 70% 22% 26% 27% 60% 29% 100.0% 100.0% 50% 40% 24% 31% 25% 32% 30% 20% 21% 14% 19% 10% 14% 0% 4Q19 FY20&1Q21 FY18 FY19 FY20 1Q21 ■Loans facilitated by individual investors as % of total loan volume ■Loans facilitated by institutional partners as % of total loan volume (1) Credit rating refers to Magic Mirror scores, with Level I representing the lowest risk and Level VII the highest. IV V VI VII 12#13Our digitalization strategies surrounding customers & product innovation 1) Digitalization in multiple aspects of our strategy - Rapid growth in global customer acquisition - Strengthening risk management capabilities - Exploring other business concepts with different partners both domestically and internationally - Empower a variety of businesses across multiple scenarios in different industries 2) Deepen relationships with customers & institutional partners - Progressive loan origination volume growth in mainland, China - Rapid loan origination volume growth in International market - Rapid penetration into small business loans serving over 305 thousand small business owners in Q1, 2021 - Introduced Baas Solutions to enhance institution partners strength 3) Consistent investment into research & development Enhance technologies capabilities - Comprehensive innovative product lines (1) As of Mar 31,2021 13#14Committed and professional management team GU Shaofeng Co-founder Chairman & Chief Innovation Officer Microsoft Education: LI Tiezheng Co-founder Deputy Chairman & President 中国民生银行 CHINA MINSHENG BANKING CORP.LTD. ■ Education: Shanghai Jiao Tong University Shanghai Jiao Tong University China Europe International Business School HU Honghui Co-founder Advisor to the Company ICBC ■ Education: Shanghai Jiao Tong University Fudan University ZHANG Feng Chief Executive Officer XU Jiayuan Chief Financial Officer Capital One Education: - Tsinghua University - Duke University pwc NCB ■ Education: - 南洋商業銀行 Shanghai Jiao Tong University China Europe International Business School ZHANG Jun Co-founder Advisor to the Company WICRESOFT Microsoft ■Education: Shanghai Jiao Tong University WANG Yuxiang Chief Product Officer & Chief Technology officer Bail Opera ■ Education: Fudan University 14#15112 110 Operation & Financial metrics 16.23 12.86 113.9 30.08 18.91 $1.35 16 22 17.4 9.8 47,9 0.20 2.30 37 1.25 1.56 87.6 110.6 4,81 0,40 0,68 122.2 1.46 1.95 3,15 112.5 30. 1.79 1.25 2.59 137.78 2,37 3,07 3.33 61,76 11,2 448,21 1.56 36 0.90 3.74 99.6 102.1 89.3 443087 17.47 9648361 MAM JJASOND 3657 18433T 938377 765749 1220400 17.7 40.91 90.37 14.8 17.96 3.06 1.35 1.45 2.03 106.9 21,40 900812 14.8. 44.08 27.94 3,44 0.70 0.75 1.97 102.9 468739 18,60 27.33 -31.94 9.60 1,48 0.00 0.90 2.69 105.2 1892940 18.14 15,39 17,90 13.50 1,47 1,52 4,48 20,07 9.53 110.73 1,14 0,40 0.80 2.26 2,09 25.62 -91,86 2,79 0.25 0.25 1,09 105,6 BB.O 101.5 3466428 10.01 69.40 1196668 0.10 14 1509 8,91 16,77 12.74 4.54 2.00 5.00 644 16.16#16Operating metrics Cumulative borrowers(1) Thousands Outstanding loan balance(2) RMB in billions 34.5 15,433 16,528 17,445 17,926 18,535 18,729 19,138 19,800 20,806 31.3 32.5 29.1 27.1 26.7 24.0 22.3 21.1 15,433 18,528 18,184 18,352 18,559 18,936 19,556 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Domestic borrowers ■International borrowers Average principal amount(3) RMB 1Q19 2019 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 ■Domestic loan balance Average loan tenure(3) Months ■International loan balance 4,369 4,095 4,041 9.6 3,873 3,867 3,681 8.8 8.2 8.4 8.4 8.3 8.3 8.2 8.4 3,387 3,156 3,029 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 (1) Total number of borrowers whose loans were facilitated on our platform at least once. (2) As of the end of each period. (3) Calculated based on loans originated on our platform during each period in Mainland China. 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 16#17Growing Loan origination volume with increasing new borrowers on the platform Number of new borrowers (1) Thousands Loan volume funded by institutional partners Loans facilitated for total new borrowers as % of total volume (2) RMB in billions 11.9% Cost of funds on the platform(3) 11.1% 10.5% 10.0% 9.4% 8.8% 8.2% 7.5% 7.5% 26.8 21.0 17.0 13.1 18.5 16.9 13.1 15.9% 20.7% 386 285 12.0% 7.7% 10.7% 18.8% 24.7% 23.2% 20.6% 993 1,095 917 الست الالا 9.7 619 5.9 202 115 480 26 377 258 207 169 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Number of international new borrowers Number of domestic new borrowers Loans facilitated for total new borrowers as % of total volume (1) Total loan volume funded either by institutional partners and individual investors. (2) (3) New borrowers are those who have never successfully borrowed on our platform before each period. Comprehensive cost of funds for risk-bearing models including intermediary fees of off-balance sheet loans facilitated in mainland China. 17#18Increasing operating income with consistent R&D investment R&D expenses RMB in millions Non-GAAP adjusted operating income (1) RMB in millions 45.1% 60.0% 31.1% 31.8% 22.0% 30.0 0.0% 20.0% 10.0% 0.0% 10.0% 30.0% 40.0% 2,689 2,351 60.0% 70.0% 80.0% 100.0% ■.. IL. 391 370 88 94 ∙110.0% 120.0% 671 464 130.0% 140.0% 03 FY2019 FY2020 1Q2020 1Q2021 FY2019 FY2020 (1)Non GAAP adjusted operating income for FY2019, which excludes share-based compensation expenses of RMB42.3 million. -Non GAAP adjusted operating income for FY2020, which excludes share-based compensation expenses of RMB43.2 million. -Non GAAP adjusted operating income for 1Q 2020, which excludes share-based compensation expenses of RMB8.0 million. -Non GAAP adjusted operating income for 1Q 2021, which excludes share-based compensation expenses of RMB15.4 million. 1Q2020 1Q2021 Non-GAAP adjusted operating income Non-GAAP adjusted operating income margin 18#19Strong balance sheet Leverage ratio(1) 7.0 06.00 Pre-CECL Post-CECL(3) 56.00 4.5x 4.6x 4.3x 4.0 3.0 20 1.0 3.7x 3.3x 3.7x 3.2x 2.8x 2.8x Short-term liquidity(2) RMB in millions 3,351 2,418 2,182 2,439 2,417 3,382 3,386 5,098 4,603 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 (1) Leverage ratio = Risk-bearing outstanding loan balance / net assets (2) Short-term liquidity= Cash and cash equivalents + short-term investments. For illustrative purpose only. (3) Effective January 1, 2020, FinVolution Group adopted the ASC 326, Measurement of Credit Losses on Financial Instruments or "CECL", using a modified retrospective method. Source: Company data 19#20Value returned to shareholders USD million FY2018 FY2019 FY2020 1Q21 Dividend per ADS (USD) 0.19 0.12 0.17 Cumulative Amount Since IPO* 0.48 Shares repurchase amount 67.3 6.7 55.0 2.3 131.3 Total dividend amount 58.4 36.7 47.8 142.9 Total value returned to 125.7 43.4 102.8 2.3 274.2 shareholders *Company IPO in Nov, 2017. Figures as of Mar 31,2021. 20 20#21Consolidated statements of comprehensive income Million FY2019 FY2020 1Q2020 102021 102021 RMB RMB RMB RMB USD Loan facilitation service fees 3,311 1,909 375 762 116 Post-facilitation service fees 1,200 673 183 226 35 Net interest income 1,107 1,113 315 280 43 Other Revenue 345 482 84 185 28 Changes in expected discretionary payment to IRF investors Guarantee income(1) 3,386 1,150 659 101 Net revenue 5,963 7,563 2,106 2,113 322 Origination and servicing expenses (1,208) (1,326) (249) (413) (63) Sales and marketing expenses (720) (483) (91) (334) (51) General and administrative expenses (436) (461) (96) (113) (17) Research and development expenses Provision for loans receivable Provision for accounts receivable Credit losses for quality assurance commitment(¹) Total operating expenses Operating profit (391) (370) (88) (94) (14) (300) (463) (296) (19) (3) (262) (145) (33) (40) (6) (2,008) (797) (445) (68) (3,316) (5,256) (1,651) (1,457) (222) 2,646 2,308 456 656 101 Gain from quality assurance fund 98 Realized gain (loss) from financial guarantee derivatives 31 Fair value change of financial guarantee derivatives Other income, net Profit before income tax expenses Income tax expenses Net profit (56) 136 116 54 43 7 2,856 2,424 510 698 107 (482) 2,375 (455) (89) (106) (16) 1,969 420 593 90 (1)Before the adoption of ASC 326 on January 1, 2020, gain or losses related to quality assurance commitments were recorded in one combined financial statement line item within other income. After the adoption of ASC 326, the guarantee income (i.e. the release of ASC 460 component of guarantee liability) was recorded as a separate financial statement line item within revenue and the credit losses for quality assurance commitments (i.e. the recognition of CECL losses) was recorded within expenses. 21 24#22Consolidated balance sheets As of Dec 31, 2019 As of Dec 31, As of Mar 31, Million Cash and cash equivalents RMB 2020 RMB 2021 RMB USD 2,325 2,632 2,560 391 Restricted cash Short-term investments Investments 3,686 3,484 3,547 541 115 1,971 2,539 387 953 951 989 151 Quality assurance receivable, net of credit loss allowance for quality assurance receivable Intangible assets 3,850 1,122 1.105 169 84 99 99 15 Property, equipment and software, net Loans receivable, net of credit loss allowance for loans receivable Accounts receivable, net of credit loss allowance for accounts receivable Deferred tax assets 134 94 92 14 4,808 2,355 1,343 205 882 884 1,215 185 130 158 183 28 Contract assets Right of use assets 21 98 55 53 8 Prepaid expenses and other assets Goodwill 1,391 1,050 1.135 173 50 50 Total assets Payable to platform customers 18,304 14,882 50 14,909 8 2,276 885 103 94 14 Quality assurance payable 4,776 Deferred guarantee income 1,259 1,282 193 Expected credit losses for quality assurance commitment 2,391 2,651 405 Payroll and welfare payable 177 221 129 20 Taxes payable 128 154 151 23 Short-term borrowings 235 Funds payable to investors of consolidated trusts 3,660 1,662 827 126 Contract liability 56 3 3 0 Deferred tax liabilities 199 104 101 15 Accrued expenses and other liabilities 292 511 589 90 Leasing liabilities 85 43 40 8 Dividends payable 318 48 Total liabilities 10,293 6,452 6,165 941 Ordinary shares 103 103 103 18 Additional paid-in capital 5,841 5,680 5,647 862 Treasury stock (47) (402) (385) (58) Statutory reserves 317 458 458 70 Accumulated other comprehensive income 70 (5) 9 1 Retained earnings 1,987 2,652 2,925 448 Total FinVolution Group shareholders' equity 7,948 8,363 Non-controlling Interest 64 87 8,675 69 1,324 11 Total shareholders' equity 8,011 8,430 8,744 Total liabilities and shareholders' equity 18,304 14,882 14,909 1,335 2,276 22 22#23Consolidated statements of cash flows FY2019 FY2020 1Q2020 1Q2021 Million Net cash provided by (used in) operating activities Net cash provided by (used in) investing activities Net cash provided by (used in) financing activities RMB RMB RMB RMB USD (216) 2,207 (583) 293 45 (828) 1,041 (260) 557 1,750 (3,091) (431) (869) 85 (133) Effect of exchange rate changes on cash and cash equivalents 11 (51) 3 10 1 Net increase (decrease) in cash, cash equivalent and restricted cash Cash, cash equivalent and restricted cash at beginning of period Cash, cash equivalent and restricted cash at end of period 717 106 (1,272) (10) (2) 5,294 6,011 6,011 6,116 934 6,011 6,116 4,739 6,106 932 23 23#24Appendix#25Off-balance sheet loans (1) Key account items related to service fees 1Q 2021 (RMB mm) Loan facilitation 762 service fees ☐ For each loan facilitated on our platform, we receive a transaction fee Loan facilitation service fees are the portion of transaction fees received in relation to work we perform in connecting borrowers with investors and facilitating the origination of loan transactions. Such fees are recognized as revenue upon execution of loan agreement. As % of Total Revenues 36% Income Post-facilitation 226 Statement service fees Post-facilitation service fees are the portion of transaction fees received in relation to services we provide after loan origination, such as repayment facilitation and loan collection. 11% Provision for accounts receivables -40 Mar 31, 2021 (RMB mm) Accounts receivable 1,215 Balance Sheet Contract liability 3 " Such fees are deferred and amortized over the period of the loan. Provision for doubtful accounts mainly consists of provision for past due transaction fees that are potentially uncollectible. Accounts receivable mainly consists of transaction fees for loan facilitation and post-facilitation services. Such transaction fees are collected in monthly installments. As % of Total Assets 8% Contract liability includes deferred post-facilitation service fees. As % of Total Liabilities (1) Mainly loans facilitated on our marketplace by institutional partners (banks, consumer finance companies, and other financial institutions). 25#26Off-balance sheet loans (1) Key account items related to credit risk 1Q 2021 (RMB mm) Guarantee income 659 Income Statement Credit losses for quality assurance -445 commitment Mar 31, 2021 (RMB mm) Restricted cash (Quality Assurance) 1,639 Represents the release of deferred guarantee income as loans and their related risks are reduced. The deferred guarantee income is released systematically over the term of the loans subject to quality assurance commitment. Represents expected life time credit losses related to our quality assurance commitment to institutional partners. Represents the residual amounts in quality assurance accounts after receipt of quality assurance contributions, payouts made to compensate for delinquent loan principal and interest, and amounts recovered from defaulted borrowers. " Quality assurance 1,105 receivable The Company determines for each loan the guarantee fee, or quality assurance contributions required from each borrower. Such fees or contributions are collected on a monthly basis. Balance A quality assurance receivable is recognized at loan inception at fair value, which takes into account the expected default rate. Sheet Expected credit losses for quality Represents the expected future payouts we would be required to make under our quality assurance commitment to investors. 2,651 assurance commitment As % of Total Revenues 31% As % of Total Assets 11% 7% As % of Total Liabilities 43% Deferred guarantee 1,262 income After adoption of ASC 326, the deferred guarantee income are released as a revenue systematically over the term of the loans subject to quality assurance commitment. 20% (1) Mainly loans facilitated on our marketplace by institutional partners (banks, consumer finance companies, and other financial institutions). 26 26#27On-balance sheet loans (1) Key account items 1Q 2021 (RMB mm) Interest income 302 " Represents interest income on loan receivables, which is recognized on an accrual basis using effective interest rate method Such loan receivables represent loans originated through the Company's micro-lending company, and by consolidated trusts As % of Total Revenues Income Statement Interest expenses -22 " Provision for loans receivable -19 Mar 31, 2021 (RMB mm) Loans receivables, net of provision for loan losses 1,343 Balance Sheet Funds payable to investors of 827 consolidated trusts " Mainly represents the investment returns of third-party investors in the trusts Recognized on an accrual basis Provision for potential losses on loan receivables based on expected life time credit losses of the loans Represents loans originated by the Company through its micro-lending company, and the consolidated trusts, net of allowances for loan losses. The Company is the primary beneficiary of the trusts, which solely invest in loans on the Company's platform Their assets, liabilities, results of operations, cash flows are consolidated. 13% As % of Total Assets 9% Represents the funds payable to third-party investors in the trusts. As % of Total Liabilities (1) Mainly loans facilitated on our marketplace by trusts and our micro-lending company. 13% 27 27#28Delinquency rates by balance (1) Delinquent for 15-29 days 30-59 days 60-89 days 90-179 days March 31, 2018 0.87% 2.11% 2.43% 8.01% June 30, 2018 0.83% 1.21% 1.05% 4.61% September 30, 2018 1.03% 1.77% 1.49% 3.37% December 31, 2018 0.92% 1.63% 1.41% 4.23% March 31, 2019 0.80% 1.61% 1.45% 3.80% June 30, 2019 0.86% 1.42% 1.37% 3.66% September 30, 2019 0.90% 1.50% 1.35% 3.68% December 31, 2019 1.34% 2.40% 1.86% 4.91% March 31, 2020 1.34% 3.03% 2.33% 7.25% June 30, 2020 0.71% 1.36% 1.70% 7.13% September 30, 2020 0.46% 0.72% 0.74% 3.40% December 31, 2020 0.35% 0.55% 0.48% 1.56% March 31, 2021 0.29% 0.52% 0.43% 1.13% (1) Delinquency rate by balance is defined as the balance of outstanding principal for loans facilitated in Mainland China that were 15-29, 30-59, 60-89, 90-179 calendar days past due as of the date indicated as a percentage of the total outstanding principal for loans, excluding those at 180+ days delinquent, as of the same date. 28#29Delinquency rates by vintage(1) Month on book 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 2018Q1 1.37% 2.20% 2.99% 3.67% 4.32% 4.86% 5.23% 5.50% 5.66% 5.74% 5.77% 2018Q2 1.87% 3.12% 4.39% 5.46% 6.33% 6.99% 7.47% 7.80% 7.99% 8.08% 8.13% 2018Q3 1.45% 2.51% 3.53% 4.39% 2018Q4 1.43% 2.49% 3.55% 4.42% 5.18% 5.76% 5.09% 5.59% 5.97% 6.20% 6.54% 6.81% 6.28% 6.50% 6.64% 6.72% 7.01% 7.16% 2019Q1 1.34% 2.38% 3.45% 4.36% 5.13% 5.75% 6.22% 6.65% 6.99% 7.25% 7.43% 2019Q2 1.33% 2.34% 3.31% 4.18% 5.05% 5.82% 6.44% 6.98% 7.34% 7.50% 7.52% 2019Q3 1.02% 2.16% 3.42% 4.55% 5.64% 6.45% 6.92% 7.13% 7.20% 7.20% 7.15% 2019Q4 0.83% 2.07% 3.37% 4.45% 5.12% 5.50% 5.68% 5.79% 5.83% 5.80% 5.73% 2020Q1 0.81% 1.73% 2.46% 2.97% 3.35% 3.59% 3.71% 3.78% 3.82% 3.82% 3.80% 2020Q2 2020Q3 0.44% 0.92% 1.34% 1.65% 1.90% 2.08% 2.21% 2.30% 0.41% 0.81% 1.16% 1.47% 1.72% 2020Q4 0.36% 0.70% (1) The table display the historical cumulative 30-day plus as of Mar 31, 2021 represent past due delinquency rates by loan origination vintage for all loan products facilitated in Mainland China through the Company's online marketplace. 29 29#30Accounting policy change to CECL(1) The following table sets forth the impact to the financial position of the Company and retained earnings upon adoption of the standard on January 1, 2020: (RMB million) December 31, 2019 CECL adoption impact January 1, 2020 Credit loss allowance for assets Quality assurance receivable 809.5 35.0 844.5 Loans receivable 316.1 303.3 619.4 Accounts receivable 145.7 142.1 287.8 Liabilities Quality assurance payable 4,776.2 690.1 5,466.3(2) Retained earnings Total pre-tax impact 1,170.5 Tax effects (287.5) 883.0 (1) Effective January 1, 2020, FinVolution Group adopted the ASC 326, Measurement of Credit Losses on Financial Instruments or "CECL", using a modified retrospective method. As a result of adopting ASC 326, the Company recognized the cumulative effect of initially applying the standard as a decrease of approximately RMB 883.0 million to the opening balances of retained earnings. The adoption of this standard established a single credit loss model for all financial assets carried at amortized cost and certain off balance sheet credit exposures (i.e. guarantees). Under ASC 326, the Company is required to record the expected credit losses of the financial assets and off balance sheet credit exposures upon initial recognition, which is typically earlier than the old standard. Also, the CECL framework requires our estimate to reflect expected credit losses over the full expected life and considers expected future changes in the macroeconomic conditions. Further, before the adoption of ASC 326, guarantee liabilities subsequent to initial recognition, was recorded at the higher of our stand ready obligation (ASC 460 component) and the contingent component (ASC 450 component). Upon adoption of ASC 326, the expected credit losses, which replaces ASC 450 component, was recorded separately from and in addition to the ASC 460 component upon initial recognition. Subsequently, the ASC 460 component is released as revenue systematically over the term of the loans and the expected credit losses is trued up based on expected life time credit losses of the loans covered by the quality assurance commitments at each balance sheet date.. (2) Upon adoption of ASC 326, quality assurance payable is separated into deferred guarantee income (i.e. the unamortized ASC 460 component of guarantee) amounting to 1,873.3 million and expected credit losses for quality assurance commitment (i.e. CECL liability) amounting to 3,593.0 million. 30 50