Investment Highlights
1H 2022(RMB million)
Total Income: 1582.5
Operating Profit: 430.4
Net Profit: 328.0
Adjusted net profit: 331.5
Proposed Interim dividend: HK10 cents
During the Period, the Group achieved solid performance from operation in line with its expectations, notwithstanding adjustments to its business strategy and model to accommodate alignments between its product and regulatory limits on consumer finance interest rate and risks within the Chinese macro-economy arising from intermittent COVID-19. At the same time, the Company continued to make evolutionary adjustments to risk management model to reflect market developments and behavioural changes that affect demand for its products as the Group maintain its strategy of targeting higher quality prime and near-prime borrowers.
Its loan origination volume reached a record high of
Initiate strategy changes that foster flexibility
By using dynamic data analytics to constantly refine its penetration as well as enriching its service to customers, the number of its registered users increased to 118.1 million, and are paying dividends as 89.2% of its loan volume for the Period was contributed by repeat borrowers. In order to reach and stay connected with more of its target customers, the Group has expanded its network of customer acquisition channels and use of industry platforms with priority given to channels that capture high-quality customers.
The collaborations with newly-partnered channels, such as OPPO, Xiaomi and China Telecom, are proving mutually beneficial. Notwithstanding, to improve customer experience on its digital platform, the Group continues to refine its online APPs along with various loan facilitation and post-loan management services.
Asset quality remains robust despite market downturn
Despite the added risks within
As a leading fin-tech enterprise, the Group leveraged its leading finance technology and robust risk control capabilities to mitigate the inherent risks to its business and continued to optimize its credit risk policy in order to ensure the Group captured and served higher-quality customers in the sterner operating environment. As a result, the Group's credit control capabilities are evidenced by the outstanding performance of its asset quality metrics. The Group's first payment delinquency ratio achieved a new record low of around 0.25% for the Period, whilst its M1-M3 ratio and M3+ ratio declined to 2.07% and 2.06%, respectively, in the second quarter of 2022 from 4.01% and 2.39%, respectively, in the fourth quarter of 2021.
Stable financial institutional partners drive sustainable growth to the business
By the end of the Period, the Company had long-term collaborative relationships with 80 external funding partners, including commercial banks, consumer finance companies and trusts. Through these long-standing cooperations, funding costs continued presentation a declining trend.
Furthermore, third-party guarantee companies and asset management companies secure the ecosystem in terms of funding flexibility and protection to its funding partners. Moreover, to strengthen the relationship with its funding partners, the Group has been exploring potential technology cooperation opportunities to empower its digital capabilities.
Outlook
Looking forward, as an innovation-oriented and technology-driven finance company, the Group will strive to maintain its agile, efficient and regulated business approach. Fulfilling its prime and near-prime customers under-served credit demands is its driving force to systemise marketing strategies, upgrade credit risk algorithms and models, and optimise product operation.
Moving forward, the Group intends to continue to execute these strategies to maintain its growth in the industry, including streamline and extend its credit solutions to better serve its customers to improve brand recognition and customer loyalty and creditworthiness, enhance risk-centered technology capability through constant research and development; consolidate regulated and long-term collaborations with licensed financial institutional partners and business partners; compliance with the laws and regulations as the first priority to maintain the sustainability of its business; cultivate a dynamic enterprise value and culture and grow its in-house talents.
About
For enquiries, please contact Hill+Knowlton Strategies Asia:
Tel: (852) 9146 6322 / (852) 2894 6255
Email: vcredit@hkstrategies.com
Copyright 2022 ACN Newswire . All rights reserved.
© Japan Corporate News, source