PT

• Victor mentioned 2020 was challenging due to pandemic, but initiated business transformation like eliminating legacy services, optimizing product mix. Digital technical services has over 400 corporate clients and is shifting to recurring revenue. • Steven echoed Victor's sentiments, noted pandemic and internal transformation impacted top and bottom lines, had onetime write-offs of RMB85.3 million, reduced headcount by 39% in 2020, completed RMB400 million financing, and announced acquisitions of Riche Bright and Jishengtai for wealth management business.

• Uncertainties from pandemic are short-term. • No future financial impact from past write-offs. • Focus on continued investment in core talents, discipline cost management, enhance balance sheet and liquidity. • Acquisitions of Riche Bright and Jishengtai are seen as growth drivers for wealth management business with long-term synergistic values.

Pintec's total revenues for 2020 decreased by 70.6% year-over-year to RMB378.3 million. The digital technical services business includes digital retail credit management, corporate credit process management, etc., with over 400 corporate clients. Technical services service fees in 2020 decreased by 69.3% to RMB330.7 million. Revenues from installment services in 2020 declined by 77.2% to RMB42.7 million, mainly due to COVID-19 outbreak and portfolio optimization.

• Unprecedented global pandemic impacted business. • Macroeconomic headwinds and domestic PRC regulatory tightening led to onetime write-offs. • Headcount reduction as part of cost-cutting measures.

Q: Regarding the Riche Bright and Jishengtai acquisition, what revenue contribution do you foresee and margin profile changes? How will you integrate into wealth management services and wealth management revenue growth target?

A: Steven Sim said Riche Bright is expected to contribute normal margins, with a small B2B2C model having higher take rate. Integration with wealth management should go smoothly as they've known the team, and the digital brokerage business adds to portfolio. For wealth management, 2021 expects growth organically and potential M&As.