Vcredit Holdings Limited · HKEX:2003
Vcredit — FY2024 Earnings Presentation
25 slides from Vcredit's earnings presentation, March 2025
Slide 1: VCREDIT Holdings Limited Investor Presentation
VCREDIT Holdings Limited Investor Presentation March 2025
Slide 2: Table of contents
Table of contents 1 Corporate Vision 2 Market Overview 3 Company Strategy and Drivers of Profitability & Growth 4 2024 Annual Results Overview 5 Key Management 6 Strategic Initiatives 1
Slide 3: Corporate Vision
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Slide 4: A leading independent online consumer finance service provider in China
A leading independent online consumer finance service provider in China Differentiated value propositions to borrowers and partners Underserved consumers/small business owners Fulfilling needs Transactions Traffic support Risk management Precision Post-loan marketing & monitoring Joint modeling Fund
Slide 5: Diversified Funding Structure
Diversified Funding Structure Trust lending Credit- and direct enhanced loan Pure loan lending facilitation facilitation VCREDIT Trust lending: ― Select and recommend ― Select and Capital-light Licensed financing ― Underwrite subordinated borrowers recommend borrowers operations guarantee company tr
Slide 6: Adopted a prudent operating strategy with diversified funding structure
Adopted a prudent operating strategy with diversified funding structure Loan origination volume Outstanding balance Funding structure (RMB mn) (RMB mn) (RMB mn) 75,248 75,248 17% 55,753 55,753 14% 36,198 36,198 34,466 67% 31,379 14% 27,023 26,603 26,220 27,023 63% 16% 71% 59% 14% 21% 13% 23% 2% 2% 2
Slide 7: Remain profitable amid challenging environment
Remain profitable amid challenging environment Income breakdown Adjusted OPEX breakdown(1) Adjusted net profit(2) (RMB mn) (RMB mn) %:as percentage of total loan origination volume (RMB mn) 2.9% 3.2% 2.7% 3.6% 2,058 2,023 3,930 6% 6% 3,569 9% 5% 16% 19% 3% 3% 50% 63% 1,053 1,918 6% 1,738 479 869 456
Slide 8: Our History and Key Milestones
Our History and Key Milestones More is coming Oversea Markets Smart Finance Era 2024 • Registered users reached Online only Business Platform 158M Expansion Stage • Hong Kong business became 2022 Gradually Transferred to the first money lender in Hong Online Business • Registered users reached 127M
Slide 9: Market Overview
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Slide 10: Large and addressable consumer finance market
Large and addressable consumer finance market China’s consumer loan balance(1) (RMB tn) 2028E : 26.8 CAGR: 5.5% 2023A : 20.5 Note: (1) Source: iResearch Inc. , updated on October 2024 The size of the consumer Credit-Tech market in China refers to the total outstanding balance of consumer loans offer
Slide 11: Company Strategy and Drivers of Profitability & Growth
Company Strategy and Drivers of Profitability & Growth
Slide 12: Growing customer base
Growing customer base Cumulative verified users Cumulative borrowers (1) (mn) (mn) 10.7% 14.4% 11.1 119.6 10.1 9.7 9.1 111.9 108.0 102.2 2023H1 2024H1 2023 2024 2023H1 2024H1 2023 2024 Steady growth in the number of verified users and borrowers Note: (1) Represent the total number of customers who m
Slide 13: Our data source and customer strategy
Our data source and customer strategy Our strategy Chinese social media ▪ Optimizing risk management framework with accurate identification ability E-commerce ▪ Utilizing artificial intelligence to enhance platform customer experience and drive Our data sustainable growth source Payment company ▪ Ai
Slide 14: Robust credit risk management capability enhanced by cutting-edge technology
Robust credit risk management capability enhanced by cutting-edge technology Interception 24/7 Fully automated engine transaction process enabled by Policies and ‘Smart lending’ technology rules engine Scorecard engine Machine- learning engine Decisioning engine 90+ data sources Anti-fraud engine 20
Slide 15: Asset quality
Asset quality Vintage based M3+ delinquency ratio) 10% 8% 6% 4% 2% 0% 4 5 6 7 8 9 10 11 12 Month on book 2017-2019 2020 2021 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 2024Q3 First payment delinquency ratio & M3+ ratio 7.07% Macroeconomic headwind & 5.56% Proactive adjustm
Slide 16: We aim to achieve higher customer life-time value
We aim to achieve higher customer life-time value Target premium Higher life-time customers value ⚫ Target higher profit on single ⚫ Expand high-quality customer loan basis acquisition channels ⚫ Enhance risk management system ⚫ Sustainable revenue with brand recognition and customer loyalty ⚫ Enhan
Slide 17: 2024 Annual Results Overview
2024 Annual Results Overview
Slide 18: 2024 Annual Results Overview
2024 Annual Results Overview ⚫ Continuously strengthen risk management capabilities, enhance operational efficiency, and commit to achieving long-term sustainable development ⚫ Drivers of business sustainability − Refined risk management − Enhanced existing customer operation − Acquired high-quality
Slide 19: Financial Review
Financial Review in RMB mn 2024 2023 Change 2024H1 2023H1 Change Total income 3,930 3,569 10.1% 1,738 1,918 -9.3% Net interest and similar income 1,623 1,150 41.2% 875 599 46.2% Loan facilitation service fees 1,949 2,241 -13.0% 940 1,105 -15.0% Other income/(expenses) 358 178 99.8% (77) 214 NM Adjus
Slide 20: Operating performance overview
Operating performance overview Key operating metrics No. of transaction of online consumption products (K) 2023 2024 6,405 5,282 Cumulative 144.1mn 158.0mn registered users 3,325 2,264 Cumulative 108.0mn 119.6mn verified users 2023H1 2024H1 2023 2024 Average ticket size Average loan tenure (RMB k) (
Slide 21: Key Management
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Slide 22: Experienced and stable management team leading cohesive talent development
Experienced and stable management team leading cohesive talent development Lawrence Ma Stephen Liu Thomas Liu Founder, Chairman Founder, CEO COO Lan Xue Jiafang Jin Ethan Gong General Manager CSO CRO Ray Yu Hongzhe Shi Hong Bai CMO CTO CFO Credit-risk Front office (1) Technology- 45% driven efficien
Slide 23: Dividend
Dividend Time Dividend per Share 2023 Interim Regular HK 15 cents 2023 Final Regular HK 10 cents 2024 Final Regular HK 20 cents (Recommended by Board) 22
Slide 24: Strategic Initiatives
Strategic Initiatives
Slide 25: We are well positioned to keep growing core business
We are well positioned to keep growing core business Proprietary data demand ⚫ Long history in retail lending business ⚫ Sufficient customer attributes ⚫ Effective score card Existing/potential funding partners will need our service Comprehensive services ⚫ More efficient borrower acquisition throug