Vcredit Holdings Limited · HKEX:2003
Vcredit — Investor Presentation (August 2019)
14 slides from Vcredit's investor presentation, August 2019
Slide 1: VCREDIT Holdings Limited Management Presentation
VCREDIT Holdings Limited Management Presentation August 2019
Slide 2: At the forefront of online inclusive consumer finance
At the forefront of online inclusive consumer finance Unique product offerings Large addressable market Serving theunderserved borrowers 900mn people covered by CCRC credit database(1) Offering readily available inclusive consumer finance 450mn people with credit history in CCRC traceable Establishi
Slide 3: Recent developments
Recent developments Circular 141 and 175, and ancillary regulatory pieces Latest Ongoing serial P2P platform collapses development Stricter oversight on collection practices as a result of the anti-gangsterous campaign Loan origination volume(1) Funding partners(2) RMB14.4bn 38 Operating Registered
Slide 4: Effective credit rating and risk management
Effective credit rating and risk management M3+ Delinquency Ratio distribution Cohort-based M3+ delinquency ratio for online credit products(2) across risk rating categories(1) 12% Lower pricing and delinquency ratio for better 10% risk profiles M3+ Delinquency Ratio 8% 6% 4% 2% 0% 0 5 10 15 20 25 3
Slide 5: Foster credit profiles for young adults with promising income growth prospects
Foster credit profiles for young adults with promising income growth prospects Inclusive Finance Private Lending Universal Up to credit profiles Excessive rates RMB80k ticket size Token Full-fledged consumer finance services amount 24.4%(1) Ultra-short APR tenors Fairly priced products Growing Indeb
Slide 6: Promote inclusive finance by partnering with licensed financial institutions
Promote inclusive finance by partnering with licensed financial institutions On-Balance Sheet Model Facilitation Model Platform Model Credit-Enhanced Pure Loan 1% Direct Lending 54% Loan Facilitation 10% Facilitation • 2 online small loan Credit-enhancement licenses • Clear regulatory through own fi
Slide 7: Experienced management team with structured talent acquisition
Experienced management team with structured talent acquisition Lawrence Ma Stephen Liu Thomas Liu Lan Xue Founder, Chairman Founder, CEO COO General Manager Jiafang Jin Daniel Zhou Ray Yu Ethan Gong CTO CFO CMO CRO Adaptive to Credit-risk Technology- Institutional regulatory centric driven efficienc
Slide 8: Financial highlights
Financial highlights
Slide 9: Stable growth in business scale
Stable growth in business scale Loan origination volume Outstanding balance of loans to customers(1) (RMB mn) (RMB mn) 15,892 15,773 24,544 10% 13,796 14,040 18% 20,756 29% 13% 49.6% 31% 32% 35% 22% 14,403 41% 23% 7,903 19% 16% 9,627 54% 7,870 19% 63% 58% 65% 17% 38% 48% 50% 49% 41% 19% 10% 64% 46%
Slide 10: Increasingly diversified income growth
Increasingly diversified income growth Funding structure Income breakdown (RMB mn) (RMB mn) Strategic trending Strategic trending Direct lending Interest income/interest type income(1) Trust lending Loan facilitation service fees Credit-enhanced loan facilitation Other income Pure loan facilitation
Slide 11: Unique capital structure and stable funding cost
Unique capital structure and stable funding cost Unique and flexible capital structure Stable funding expense (1) Historical funding cost (%) ▪ Our company is set up as a 10.4% As of As of December 31, June 30 WFOE, instead of a VIE which is 10.2% 2016 2017 2018 2019 commonly adopted by industry pee
Slide 12: Gradually improved operating efficiency
Gradually improved operating efficiency Adjusted operating expenses breakdown(1) Adjusted operating profit(2) (RMB mn) (RMB mn) (%: as percentage of total loan origination volume) 1,193 427 0.4% 364 1.1% 923 0.3% 244 1.0% 0.7% 647 185 0.4% 0.3% 556 1.8% 0.3% 450 0.8% 1.3% 0.3% 3.3% 1.1% 0.6% 2.5% 0.
Slide 13: Our strategic focuses
Our strategic focuses Mutually Beneficial Vertical Specific Operating Efficiency Funding Partnerships Collaborations Optimization Initiated partnerships Provide advanced Streamline in wellness and technology solutions organization structure education verticals Formed collaborations Enable precision
Slide 14: Leading market position with proven track record and unique market focus
Leading market position with proven track record and unique market focus Regulatory Serving the Diversified encouraged underserved institutional business model funding Extensive industry know-how and Promotion of technology driven Structured and securitized funding insights in China inclusive financ
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