Vcredit Holdings Limited · HKEX:2003
Vcredit — FY2023 Earnings Presentation
25 slides from Vcredit's earnings presentation, March 2024
Slide 1: VCREDIT Holdings Limited Investor Presentation
VCREDIT Holdings Limited Investor Presentation March 2024
Slide 2: Table of contents
Table of contents 1 Corporate Vision 2 Market Overview 3 Company Strategy and Drivers of Profitability & Growth 4 2023 Annual Results Overview 5 Key Management 6 Strategic Initiatives 1
Slide 3: Corporate Vision
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Slide 4: A leading credit platform for underserved consumers and SMEs
A leading credit platform for underserved consumers and SMEs Differentiated value propositions to borrowers and partners Under-served consumers/small business owners Fulfilling needs Transactions Traffic support Risk management Precision Post-loan marketing & monitoring Joint modeling Funding partne
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: Continuous growth with diversified funding sources
Continuous growth with diversified funding sources Loan origination volume Outstanding balance Funding structure (RMB mn) (RMB mn) (RMB mn) 44.2% 37.5% 44.2% 75,248 75,248 17% 52,189 52,189 15% 36,198 36,198 34,466 67% 31,379 14% 24,642 25,066 24,642 61% 20,486 12% 71% 58% 22% 14% 27% 13% 3% 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) 3.2% 2.9% 3.2% 2.7% 2,058 3,569 6% 5% 3,119 1,679 16% 5% 6% 3% 17% 63% 2% 50% 1,053 1,918 537 11% 6% 1,582 456
Slide 8: Our History and Key Milestones
Our History and Key Milestones More is coming Oversea Markets Smart Finance Era Online only Business Platform Expansion Stage 2022 Gradually Transferred to • Registered users reached 127M Online Business • Issued HKD bonds of HK$200M 2019 • Invested in Opus Financial Group Startup Stage 2017 • Start
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) 2026e : 24.9 CAGR: 8.6% 2022A : 17.9 Notes: (1) Source: iResearch Inc. , forecast data updated on April 2022 and actual data updated on August 2023 (2) The size of the consumer Credit-Tech market in China refers
Slide 11: Company Strategy and Drivers of Profitability & Growth
Company Strategy and Drivers of Profitability & Growth
Slide 12: Continuous growth in user community
Continuous growth in user community Cumulative verified users Cumulative borrowers (1) (mn) (mn) 13.6% 17.0% 108.0 102.2 95.1 9.7 9.1 87.3 8.3 7.3 2022H1 2023H1 2022 2023 2022H1 2023H1 2022 2023 Steady growth in the number of verified users and borrowers Note: (1) Represent the total number of custo
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) 12% 10% 8% 6% 4% 2% 0% 4 5 6 7 8 9 10 11 12 Month on book 2017 2018 2019 2020 2021 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 2023Q3 First payment delinquency ratio & M3+ ratio 7.07% Macroeconomic headwind & 5.56% Proactive adjustments to Macroeconom
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: 2023 Annual Results Overview
2023 Annual Results Overview
Slide 18: 2023 Annual Results Overview
2023 Annual Results Overview ◼ Achieved a stable performance and sustainable business growth in 2023 with the record high loan originations against the challenging macro environment and the increasingly stringent regulatory policies on post- loan collection ◼ Drivers of business growth ✓ Enhanced ex
Slide 19: Financial Review
Financial Review in RMB mn 2023 2022 Change 2023H1 2022H1 Change Total income 3,569 3,119 14.4% 1,918 1,582 21.2% Net Interest type income 1,150 1,393 -17.5% 599 814 -26.5% Loan facilitation service fees 2,241 1,564 43.3% 1,105 692 59.6% Other income/(losses) 178 162 10.5% 214 76 182.6% Adjusted ope
Slide 20: Operating performance overview
Operating performance overview Key operating metrics No. of transaction of online consumption products (K) 30.8% 6,405 2022 2023 4,896 Cumulative 126.8mn 144.1mn registered users 3,325 Cumulative 2,128 95.1mn 108.0mn verified users Cumulative borrowers(1) 8.3mn 9.7mn 2022H1 2023H1 2022 2023 Average
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 IT Technology- 15% centric Back office (1) drive
Slide 23: Dividend
Dividend Time Dividend per Share 2022 Interim Regular HK 10 cents 2022 Final Regular HK 10 cents 2023 Interim Regular HK 15 cents 2023 Final Regular HK 10 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