360 Finance announced that it signed a strategic cooperation agreement with China Everbright Bank, a joint-stock commercial bank in China, to jointly foster innovation within the fintech sector in order to better serve the needs of SMEs and individuals in China's transitioning economy. Together, both parties will develop new and innovative payment settlement, trade finance, credit card, retail finance, corporate finance, asset securitization, financial technology, and cross-border solutions. Both parties will also establish a financial technology data laboratory to develop big data models and applications to improve the safety, convenience, and affordability of online financial services.
360 Finance announced that it has adopted ASU 2014-09, Revenue from Contracts with Customers, and all subsequent ASUs that modified ASC 606 in the 4th quarter of 2018 and for the full year of 2018, and have elected to apply it retrospectively for the year ended December 31, 2017, in order to provide more comparable insights of the company's performance with industry peers. The cumulative adjustment as a result of transitioning to the new accounting policy will primarily arise from the timing of revenue recognition for service fees collected in monthly instalments related to the company's loan products being recognized earlier under the ASC 606. The most meaningful impacts are as follows: Under previous guidance ASC 605, transaction fees collected in monthly instalments are considered contingent and, therefore, are not allocable to different deliverables until the contingency is resolved. Upon adoption of new revenue recognition standards, revenue is recognized upon successful facilitation of the loans provided on the company's platform using the total consideration estimated to be received and allocated to the different performance obligations based upon their relative fair value. With the adoption of ASC 606, the company expects the total net revenue to be RMB1.7M for the period from the inception date of July 25, 2016 to December 31, 2016; RMB788M for the year ended December 31, 2017; and RMB2,880.7M for the nine-month period ended September 30, 2018. As ASC 606 mainly addresses revenue recognition from contracts with customers, the company expects the change in net income to be primarily driven by change in revenue. This change of accounting policy does not affect the company's ongoing business operations and the company is not aware of any abnormality in daily operation.
360 Finance (QFIN) priced 3.1M shares at $16.50, at the bottom of the $16.50-$18.50 range. Citigroup, Haitong International Securities, AMTD Global Markets and Lighthouse Capital International are acting as joint book runners for the offering.
The deal priced at the bottom of the $16.50-$18.50 range. Citigroup Global Markets Inc., Haitong International Securities Company Limited, AMTD Global Markets Limited, and Lighthouse Capital International are acting as joint book runners for the offering.