HONG KONG, March 24, 2022 – (ACN Newswire) – – VCREDIT Holdings Limited (“VCREDIT” or the “Group”; stock code: 2003.HK), a leading independent provider of online consumer credit in Chinais pleased to announce its audited consolidated results for the year ended December 31, 2021 (the year”).

During the Year, the Group’s total revenue increased significantly by 34.4% year-on-year for 3,458 million RMB (2020: 2,573 million RMB). The Group successfully completed its recovery, with net income of 1,179 million RMB (2020: net loss of 870 million RMB). The Group is committed to creating sustainable returns on investment for its shareholders, by sharing the fruits of the success of its operations. Therefore, following the declaration of a dividend for the first time in its interim results, the Board has recommended a final dividend of 15 HK cents per share for the year. With the interim dividend and special dividend totaling 20 HK cents per share already paid, the dividend for the full year was 35 HK cents per share.

Although the COVID-19 pandemic and the changing macro-economic environment have brought challenges and uncertainties, VCREDIT achieved outstanding operational performance and promising financial results during the year thanks to its technology-driven risk management and dynamic operational strategies. Thanks to the recovery of the macroeconomics in Chinaloan origination volume recorded significant growth, coupled with the Group’s strategies of migrating to a higher quality borrower and customer acquisition model, the Group succeeded in improving the overall quality of its assets, driving a significant increase in loan facilitation service fees from 115.9% to 1,540 million RMB. Interest income amounted to RMB 1,972 millionremained at a stable level compared to the previous year.

The Group primarily offers two credit products through its pure online loan origination processes, including credit card balance transfer products and consumer credit products, both of which are based on installment payments. . For the year, the total number of transactions was 3.4 million. The average term of the Group’s credit products was approximately 9.4 months and the average loan size was approximately RMB11,965. The Group has constantly adjusted its risk management and credit policies to maintain a prudent approach to risk and efficiency of operations, in order to deliver exceptional business growth and controllable credit risk performance.

The quantity and quality of customers have grown remarkably

Thanks to its proactive management, improved communication channels, targeted marketing and better brand recognition, the Group has succeeded in expanding its user base. The number of registered users of VCREDIT reached the level of “over 100 million” and grew to 112.5 million during the Year, which also led to a significant increase in its loan facilitation volume. At the same time, through the application of Big Data customer acquisition models driven by artificial intelligence, the Group has improved its operational efficiency and improved the identification of target customers and market penetration. In addition, the Group continued to refine its applications and online system to enhance the customer experience, which improved customer loyalty and retention rate. Benefiting from this, the Group has successfully transitioned its customer base to prime and high quality borrowers, resulting in a significant improvement in its default levels.

Optimize risk management to improve asset quality

The Group places great emphasis on technology-driven risk management, iterating its credit risk models through the introduction of multi-dimensional data sources, in-depth credit risk performance analyzes and testing. sophisticated. The Group has also constantly adjusted its risk management and credit policies to maintain a prudent approach to risk and efficiency of operations in order to generate exceptional business growth and controllable credit risk performance. In addition, the Group’s credit risk management capability allows it to maintain its core competitiveness and position itself well to support healthy business growth and defend against macroeconomic uncertainties. During the year, thanks to the timely adjustment of the policy and the optimization of the risk models, the Group managed to maintain its first delinquency rate at an industry-wide low level. by approximately 0.42%, which is conducive to improving the quality of the Group’s assets.

Win-win collaboration and close partnership with financial partners

To support the rapid and sustainable development of its business, the Group worked closely with 69 external financial partners during the Year, including national joint-stock commercial banks, consumer finance companies and trusts, which have built up a diversified and well-off funding pool. These lasting and stable collaborative relationships have enabled the Group to improve its financing costs. In addition, the Group’s guarantee companies, third-party guarantee companies and asset management companies form an ecosystem that ensures the Group’s financing flexibility and ensures the protection of its financial partners.

Outlook

Going forward, in order to create sustainable investment returns for its shareholders, the Group will strive to provide shareholders with regular dividends with a normal target payout ratio of between 20% and 30% of the Group’s audited consolidated net profit. each year, subject however to such factors as the Board deems relevant, i.e. the Group’s financial results, available distributable reserves and cash position, etc.

At the same time, in order to contribute to the continued growth of its consumer credit activity and to meet the financial needs of a high-quality clientele, the Group will endeavor to proactively refine its commercial strategies and develop its technology to better serve its customers. to improve brand recognition. While enhancing risk management capability through ever-evolving technology and artificial intelligence, the Group will enhance regulated and long-term collaborations with licensed financial institutional partners and other business partners, hoping to create a wide gap for business development. In addition to the organic growth of its existing consumer finance business, the Group will also seek to grow and diversify its business by actively identifying suitable investment and acquisition targets, thereby maintaining its competitiveness in an ever-changing macroeconomic environment. .

On VCREDIT Holdings Limited (2003.HK)

VCREDIT Holdings Limited (“VCREDIT”) is a leading player in China consumer finance industry with over 10 years of experience. The Group targets prime and near-prime borrowers underserved by traditional financial institutions by offering consumer products online. To meet the financing needs of these products, the Group primarily engages institutional financing partners through three types of sustainable and scalable financing structures: fiduciary loans, credit-enhanced loan facilitation and loan facilitation. pure. Thanks to these financing structures, VCREDIT provides institutional funding partners with solutions at varying levels of risk discretion and flexible profit-sharing arrangements.

Website: http://www.vcredit.com/

Copyright 2022 ACN Newswire. All rights reserved.

© Japan Corporate News, source JCN Press Releases