Vcredit Holdings Limited · HKEX:2003
Vcredit — Investor Presentation (August 2020)
14 slides from Vcredit's investor presentation, August 2020
Slide 1: VCREDIT Holdings Limited Management Presentation
VCREDIT Holdings Limited Management Presentation August 2020
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 Economic slowdown caused by Covid-19 outbreak Persistent efforts by government to regulate the use of Latest personal data and unlawful collection practices development Ongoing P2P platform exits and effective 36% APR cap Circular 141, 175 and 83, and ancillary regulatory pieces
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 10% ratio for better 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 Capped at Ultra-short IRR 36% Fairly tenors priced products Growing
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 60% Loan Facilitation 1% Facilitation • 2 online small loan Credit-enhancement licenses • Clear regulatory through own fin
Slide 7: Experienced and stable management team leading cohesive talent development
Experienced and stable management team leading cohesive talent development Lawrence Ma Stephen Liu Thomas Liu Lan Xue Founder, Chairman Founder, CEO COO General Manager Jiafang Jin Ethan Gong Ray Yu Daniel Zhou CTO CRO CMO CFO Adaptive to Credit-risk Technology- Institutional regulatory centric driv
Slide 8: Financial highlights
Financial highlights
Slide 9: Business Overview
Business Overview Loan origination volume Outstanding balance of loans to customers(1) (RMB mn) (RMB mn) 33,746 19,138 9% 15,892 15,773 15,689 24,544 6% 13,796 18% 10% 61% 29% 20,756 13% 59% 31% 32% 22% 14,403 23% 41% 70% 13,313 19% 54% 79% 58% 65% 39% 48% 50% 32% 41% 46% 24% 21% 2017 2018 2019 2019
Slide 10: Financial overview
Financial overview Funding structure Income breakdown (RMB mn) (RMB mn) 3,864 33,746 22% 6% 2,706 2,737 11% 19% 3% 32% 24,544 10% 4% 48% 12% 20,756 1,860 10% 28% 1,204 24% 120% 8% 14,403 107% 31% 20% 13,313 68% 10% 1% 79% 109% 62% 54% 60% 60% 45% (21%) (37%) 35% 38% (34%) (36%) (22%) 5% 6% 1% 1% 1%
Slide 11: Financial overview (cont'd)
Financial overview (cont’d) Adjusted operating expenses breakdown(1) Adjusted net profit(2) (RMB mn) (RMB mn) (%: as percentage of total loan origination volume) 1,193 0.4% 368 1,036 293 296 1.1% 0.3% 923 0.3% 0.1% 0.6% 193 0.7% 0.1% 0.3% 530 450 0.3% 4.2% 0.3% 0.9% 2.1% 0.7% 0.1% 2.5% 0.1% 2.8% 2.1
Slide 12: 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 As of As of WFOE, instead of a VIE which is December 31, June 30 commonly adopted by industry 11.0% 2017 2018 2019 2020 peers Tru
Slide 13: Our strategic focuses
Our strategic focuses Mutually Beneficial Strategic Operating Efficiency Funding Partnerships Collaborations Optimization Initiated partnerships Provide advanced Streamline with leading internet technology solutions organization structure companies Formed collaborations Enhance Enable precision with
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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