Financial Performance - The company reported a net loss of RMB 1,081.2 million for the period, compared to a net profit of RMB 6.2 million in the same period of 2019, reflecting a significant impact from COVID-19[13]. - Total revenue decreased by 35.3% to RMB 1,203.8 million, down from RMB 1,860.2 million in 2019[18]. - Operating loss for the period was RMB 1,339.1 million, compared to an operating profit of RMB 57.4 million for the same period in 2019, largely due to increased loan repayment delinquencies[62]. - The net loss attributable to the owners of the company for the six months ended June 30, 2020, was RMB 1,081,240 thousand, compared to a profit of RMB 6,174 thousand in the same period of 2019[166]. - The company’s total equity attributable to owners was RMB 2,059,936 thousand as of June 30, 2020, down from RMB 2,928,472 thousand as of June 30, 2019, reflecting a decline of approximately 30%[191]. Loan Performance - The online credit product loan origination volume for the first half of 2020 was RMB 13.31 billion, a decrease of 7.6% compared to the same period last year[9]. - As of June 30, 2020, the outstanding loan balance for online credit products was RMB 14.72 billion, down 15.8% from RMB 17.48 billion on December 31, 2019[9]. - The average loan size during the period increased by 43.6% to RMB 11,192 from RMB 7,796 in the same period last year[9]. - Total loan realizations for the first half of 2020 amounted to RMB 13,313.4 million, a decrease of 7.6% compared to RMB 14,402.9 million in the same period of 2019[25]. - Trust loans reached RMB 5,049.4 million, representing a 37.9% increase from RMB 5,056.9 million in the previous year[25]. Asset Quality - The first payment overdue rate improved significantly from 2.7% in January 2020 to 0.8% by June 2020, indicating better asset quality for new loans[10]. - The overdue rate for first payments dropped to 0.8% in Q2 2020 from 2.0% in Q1 2020, with an estimated rate of approximately 1.0% for the second half of 2020[28]. - The asset quality ratio has improved and is now lower than pre-COVID-19 levels, attributed to targeted risk control measures[21]. - The company incurred credit impairment losses of RMB 165,008 thousand for the six months ended June 30, 2020, compared to RMB 124,161 thousand in the same period of 2019, marking an increase of about 33%[164]. Operational Adjustments - The company implemented more prudent lending policies, focusing on high-quality borrowers to stabilize asset quality during the COVID-19 pandemic[9]. - The company adjusted its funding structure to secure more favorable terms for borrowers, benefiting from reduced funding costs due to the central bank's monetary easing[12]. - The company plans to enhance risk management capabilities and compliance in response to the changing regulatory environment[40]. - The company aims to implement cost-saving measures to address the weakening revenue environment[40]. Cash Flow and Liquidity - The company maintained a healthy cash flow with cash and cash equivalents amounting to RMB 1.81 billion as of June 30, 2020[13]. - Net cash inflow from operating activities was RMB 3,818,076 thousand for the six months ended June 30, 2020, significantly up from RMB 1,791,972 thousand for the same period in 2019[87]. - The company experienced a net decrease in cash and cash equivalents of RMB 355,349 thousand for the first half of 2020, compared to an increase of RMB 839,724 thousand in the same period of 2019[87]. - The net cash outflow from financing activities for the period was RMB 4,170.3 million, significantly higher than RMB 862.5 million for the six months ended June 30, 2019[88]. Employee and Organizational Changes - The company initiated the "Employee Vitality Project" to provide more career development opportunities and streamline its organizational structure[12]. - The group employed a total of 605 employees as of June 30, 2020[100]. - The company has established several share incentive plans to provide equity-based incentives and rewards for eligible individuals[100]. Shareholder and Capital Management - The company has a strategy to enhance shareholder value through performance incentives linked to share ownership[113]. - The company repurchased a total of 709,400 shares at a total cost of HKD 2,871,832, aimed at enhancing the net asset value per share for shareholders[155]. - Major shareholders include ASM Connaught House Fund II LP and its affiliates, holding 12.02% of the total issued shares[133]. - The company aims to benefit all shareholders through strategic share repurchase initiatives[155]. Future Outlook - The company anticipates positive contributions to its financial performance in the second half of 2020 due to the recovery of asset quality and loan facilitation volume[14]. - The company believes that the demand for consumer finance products will continue to grow in the long term, supported by effective government policies[16].

Financial Performance - The company reported a net loss of RMB 1,081.2 million for the period, compared to a net profit of RMB 6.2 million in the same period of 2019, reflecting a significant impact from COVID-19[13]. - Total revenue decreased by 35.3% to RMB 1,203.8 million, down from RMB 1,860.2 million in 2019[18]. - Operating loss for the period was RMB 1,339.1 million, compared to an operating profit of RMB 57.4 million for the same period in 2019, largely due to increased loan repayment delinquencies[62]. - The company reported a net loss attributable to owners of the company of RMB 1,081,240 thousand, compared to a profit of RMB 6,174 thousand in the same period last year[164]. - The company incurred credit impairment losses of RMB 165,008 thousand, compared to RMB 124,161 thousand in the previous year, reflecting a 33% increase[164]. - The company reported a total comprehensive loss of RMB (1,076,876) thousand for the period, compared to a total comprehensive income of RMB 5,603 thousand in the previous year[166]. Loan and Credit Metrics - The online credit product loan volume for the first half of 2020 was RMB 13.31 billion, a decrease of 7.6% compared to the same period last year[9]. - As of June 30, 2020, the outstanding loan balance for online credit products was RMB 14.72 billion, down 15.8% from RMB 17.48 billion on December 31, 2019[9]. - The average loan size during the period increased by 43.6% to RMB 11,192 from RMB 7,796 in the same period last year[9]. - The overdue rate for first payments dropped to 0.8% in Q2 2020 from 2.0% in Q1 2020, with an estimated rate of approximately 1.0% for the second half of 2020[28]. - Total loan realizations for the first half of 2020 amounted to RMB 13,313.4 million, a decrease of 7.6% compared to RMB 14,402.9 million in the same period of 2019[25]. - Trust loans reached RMB 5,049.4 million, representing a 37.9% increase from RMB 5,056.9 million in the previous year[25]. Revenue and Income - Interest income rose by 13.7% to RMB 1,310.6 million, while interest expenses increased by 12.8% to RMB 446.5 million[18]. - Net interest income for the first half of 2020 was RMB 864.1 million, an increase from RMB 756.7 million in the same period of 2019[43]. - Total interest income for the six months ended June 30, 2020, was RMB 1,310.6 million, an increase of 13.7% compared to RMB 1,152.6 million for the same period in 2019[47]. - Loan facilitation service fees decreased by 58.4% to RMB 238.2 million from RMB 572.9 million in the previous year, primarily due to a conservative lending strategy adopted in response to the COVID-19 pandemic[48]. - Other income for the six months ended June 30, 2020, was RMB 101.5 million, a significant decrease of 80.9% from RMB 530.6 million in the same period of 2019[52]. Operational Adjustments - The company implemented more prudent lending principles during the pandemic, focusing on high-quality borrowers[9]. - The company adjusted its risk underwriting policies and post-loan services to maintain business stability during the pandemic[8]. - The company has implemented targeted risk control measures to manage and reduce credit risk exposure, leading to an improvement in asset quality ratios[21]. - The company anticipates positive contributions to its financial performance in the second half of 2020 due to the recovery of asset quality and loan realization volume[14]. - The company plans to enhance risk management capabilities through technology-driven strategies and improve compliance in a changing regulatory environment[40]. Cash Flow and Liquidity - The company maintained a healthy cash flow with cash and cash equivalents amounting to RMB 1.81 billion as of June 30, 2020[13]. - Net cash inflow from operating activities increased to RMB 3,818,076 thousand for the six months ended June 30, 2020, from RMB 1,791,972 thousand for the same period in 2019[87]. - The company’s cash and cash equivalents decreased by RMB 355,349 thousand during the period, ending at RMB 1,814,054 thousand as of June 30, 2020[87]. - The net cash outflow from financing activities for the period was RMB 4,170.3 million, significantly higher than RMB 862.5 million for the six months ended June 30, 2019[88]. Employee and Management Initiatives - The company launched the "Employee Vitality Project" to provide more career development opportunities for employees[12]. - The group had a total of 605 employees as of June 30, 2020, focusing on attracting and retaining talented staff[100]. - The company has established several share incentive plans to provide equity-based incentives and rewards for eligible individuals[100]. Shareholder and Ownership Structure - The company is controlled by various entities, with significant ownership percentages including 37.99% by Ma Ting-hsiung and 12.02% by Chen Jian[135][152]. - The company has multiple controlled entities, including Skyworld-Best Limited and Wealthy Surplus Limited, each with substantial shareholdings[135]. - The company’s management has reviewed the interim report with the audit committee[158]. Future Outlook - The company believes that the demand for consumer finance products will continue to grow in the long term, supported by effective government policies[16]. - The company aims to provide tailored consumer finance products to high-quality borrowers underserved by traditional financial institutions, indicating a focus on market expansion and innovation in financial services[196].

Financial Performance - Total revenue increased by 41.2% to RMB 3,864.4 million, driven by growth in loan realization volume and a surge in loan facilitation service fees by 362.3% to RMB 1,247.4 million[32]. - Operating profit rose by 51.9% to RMB 154.4 million, while adjusted operating profit increased by 7.2% to RMB 457.8 million[26]. - Adjusted net profit grew by 24.5% to RMB 368.2 million, reflecting effective business strategies and improved operational efficiency[26]. - Total loan realization volume reached RMB 181.2 billion, accounting for 53.7% of total loan realization volume, marking a 157.7% increase compared to 2018[24]. - Loan facilitation service fees for the year ended December 31, 2019, were RMB 1,247.4 million, an increase of 362.3% compared to RMB 269.8 million for the year ended December 31, 2018[80]. - Other income for the year ended December 31, 2019, was RMB 837.1 million, a 63.8% increase from RMB 511.2 million for the year ended December 31, 2018[83]. - The company reported a net profit of RMB 64.8 million for the year ended December 31, 2019, compared to a net loss of RMB 1,027.0 million for the year ended December 31, 2018[92]. User Growth and Market Expansion - The number of registered users increased by 40.4% to 83.8 million from 59.7 million in December 2018[23]. - In 2019, the company achieved a strong growth with a 40.4% increase in new registered users, enhancing domestic recognition and market share[41]. - The company aims to maintain its leading position in the online consumer credit finance sector through a compliance-focused business model[19]. - The company is optimistic about the potential of the Chinese consumer finance market and aims to leverage its competitive advantages for further efficiency improvements[34]. - Market expansion plans include entering two new regions, projected to increase market share by 10%[1]. Partnerships and Collaborations - The company added 15 institutional funding partners in 2019, bringing the total to 45 partners[19]. - The company continues to strengthen relationships with existing partners while seeking new collaborations[19]. - The company launched a strategic partnership with China Mobile to develop installment loan products, enhancing its product offerings[42]. - The company collaborated with Baidu to develop a borrower credit scoring system based on big data integration[19]. - The company’s collaboration with Baidu led to the development of a borrower credit scoring system, which may be licensed to other financial institutions for financial benefits[41]. Risk Management and Compliance - The first payment delinquency rate peaked in Q3 but recovered to approximately 2.0% in the last quarter, demonstrating the effectiveness of risk control policies[25]. - The company plans to enhance risk pricing capabilities and invest in R&D to improve risk management and compliance in a changing regulatory environment[68]. - The management team emphasized the importance of risk management, with a dedicated focus on consumer lending risk strategies[1]. Governance and Management - The company has established a strong governance framework with a diverse board composition, ensuring effective oversight and strategic direction[153]. - The board includes key figures such as Ms. Shen, who has been with the company since October 2019 and has a strong background in operations management at TPG Capital[143]. - The company has a clear policy for the appointment and re-election of directors, ensuring accountability and governance[174]. - Non-executive directors, including independent non-executive directors, constitute more than half of the board, ensuring significant independence in decision-making[175]. - The company emphasizes continuous professional development for directors, covering updates on laws, regulations, and their responsibilities[183]. Financial Strategy and Future Outlook - The company has set a future outlook with a revenue guidance of $600 million for the next fiscal year, indicating a growth target of 20%[1]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on enhancing user experience and engagement[1]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of $30 million earmarked for potential deals[1]. - The company has sufficient resources to meet foreseeable working capital needs, considering available borrowing capacity and internal resources[126].

User Growth and Loan Origination - As of June 30, 2019, the total registered user base increased by 30.4% year-on-year to 69.7 million[14] - The loan origination volume for the first half of 2019 reached RMB 14,402.9 million, representing a 49.6% increase compared to the same period last year[14] - The total loan origination volume completed through the credit enhancement pure loan matching structure was RMB 9,130.6 million, accounting for 63.4% of the total loan origination volume in the first half of 2019[15] - The loan origination volume increased by 29.4% compared to the second half of 2018, which was RMB 11,129.7 million[14] - The total loan realization for the first half of 2019 reached RMB 14,402.9 million, a significant increase from RMB 9,626.5 million in the same period of 2018, representing a growth of 49.0%[39] - The total number of loan transactions increased to 1,847 in the first half of 2019, up from 1,072 in the same period of 2018, marking a growth of 72.1%[39] Financial Performance - Total revenue for the first half of 2019 increased by 46.4% year-on-year to RMB 1,860.2 million[18] - Loan facilitation service fees surged by 901.9% to RMB 572.9 million, driven by the growth in credit enhancement pure loan facilitation business[18] - Non-IFRS adjusted operating profit rose by 31.8% to RMB 244.0 million, while non-IFRS adjusted net profit increased by 101.6% to RMB 192.8 million[24] - Operating expenses (excluding share-based compensation and non-recurring items) decreased by 11.1% to RMB 449.9 million, enhancing overall financial performance[18] - Interest income decreased by 26.6% to RMB 1,152.6 million, reflecting the strategic shift towards credit enhancement loan facilitation[24] - The company reported a profit attributable to owners of the company of RMB 6,174 thousand, a significant recovery from a loss of RMB 1,010,373 thousand in the same period last year[200] Business Model and Strategy - The company shifted its business model from direct loans and trust loans to a credit enhancement loan matching structure[14] - The company has focused on enhancing customer acquisition capabilities through advanced precision marketing algorithms[14] - The company aims to maintain asset quality despite achieving strong performance in the first half of 2019[17] - The management is optimistic about the potential of the Chinese consumer finance market and plans to adapt business strategies for sustainable growth[21] - The company aims to leverage its proprietary credit risk assessment technology to enhance user experience and service underserved borrowers[26] - The company transformed into a pure online consumer finance business, achieving a loan volume of RMB 468.2 million for the first half of 2019, compared to RMB 150.0 million for the entire year of 2018[30] Risk Management and Compliance - The cumulative lifetime credit losses have reached expected levels, indicating the effectiveness of the latest credit policies[17] - The overdue rate for loans over three months remained stable at around 2.0%, indicating effective credit policies despite an increase in loan volume[44] - The company is focused on maintaining compliance in a changing regulatory environment while enhancing its market position[57] - The regulatory environment remained stable, reducing uncertainties in the consumer loan industry, which is expected to support business development[21] Shareholder and Corporate Governance - Major shareholder Ma Tingxiong holds 37.91% of the beneficial interest with 8,450,000 shares[167] - The company has established multiple share incentive plans to provide equity-based incentives and rewards[128] - The board has adopted corporate governance principles in compliance with the Hong Kong Stock Exchange listing rules[129] - The company has measures in place to ensure compliance with the standard code for securities transactions by directors[133] - The company has a significant concentration of ownership, with several shareholders holding over 10% of the total shares[167] Research and Development - The company aims to continue investing in R&D to improve risk management capabilities and develop AI platforms for customer service and collections[57] - Research and development expenses rose by 22.5% to RMB 41.1 million for the six months ended June 30, 2019, up from RMB 33.5 million in the same period of 2018[76] - The company’s research and development expenses rose to RMB 41,059 thousand, up from RMB 33,507 thousand year-over-year, indicating a focus on innovation[200] Employee Engagement and Incentives - The company employs a total of 703 employees as of June 30, 2019[127] - The company aims to encourage capital accumulation and direct participation in its success through these share option plans[145] - The options granted to other employees totaled 171,850, with an exercise period until November 19, 2023[149] - The company has implemented these plans to align the interests of employees and shareholders, thereby enhancing profitability contributions[145]

User Growth and Loan Origination - As of June 30, 2019, the total registered user base increased by 30.4% year-on-year to 69.7 million[14] - The loan origination volume for the first half of 2019 reached RMB 14,402.9 million, representing a 49.6% increase compared to the same period last year[14] - The total loan origination volume completed through the credit enhancement pure loan matching structure was RMB 9,130.6 million, accounting for 63.4% of the total loan origination volume in the first half of 2019[15] - The loan origination volume increased by 29.4% compared to the second half of 2018, which was RMB 11,129.7 million[14] - The company successfully transformed into a pure online consumer finance business, achieving a loan volume of RMB 468.2 million for the first half of 2019, compared to RMB 150.0 million for the entire year of 2018[30] - The total loan volume for the first half of 2019 reached RMB 14,402.9 million, a significant increase from RMB 9,626.5 million in the same period of 2018, representing a growth of 49.0%[40] Financial Performance - Total revenue for the first half of 2019 increased by 46.4% to RMB 1,860.2 million compared to the same period last year[18] - Loan facilitation service fees surged by 901.9% to RMB 572.9 million, driven by the growth in loan facilitation volume[18] - Non-IFRS adjusted operating profit increased by 31.8% to RMB 244.0 million, while non-IFRS adjusted net profit rose by 101.6% to RMB 192.8 million[24] - Operating expenses (excluding share-based compensation and non-recurring items) decreased by 11.1% to RMB 449.9 million, enhancing overall financial performance[18] - Net profit for the six months ended June 30, 2019, was RMB 6.2 million, a significant recovery from a net loss of RMB 1,010.4 million in the same period of 2018[78] - Operating profit decreased by 24.5% to RMB 57.4 million for the six months ended June 30, 2019, down from RMB 76.4 million in the same period of 2018[77] Risk Management and Credit Policies - The cumulative lifetime credit losses have reached expected levels, indicating the effectiveness of the latest credit policies[17] - The overall first payment delinquency rate slightly increased to around 2.0%, consistent with the new product strategy[17] - The overdue rate for the first installment remained stable at around 2.0%, indicating effective credit policies despite an increase in loan volume[44] - The company plans to enhance risk pricing capabilities and invest in R&D to improve risk management[57] - The company aims to leverage its proprietary credit risk assessment technology to enhance user experience and service underserved borrowers[26] Strategic Partnerships and Collaborations - The company successfully partnered with 8 new funding partners, bringing the total number of licensed financial institution partners to 38[15] - The company established strategic partnerships with 15 new institutional partners since the beginning of 2019, including a national commercial bank, to expand its smart consumer finance ecosystem[30] - The company’s collaboration with China Telecom enabled services for customers in 228 cities across 25 provinces, addressing the financing needs for mobile phone purchases[32] Capital Structure and Financing - The company successfully issued USD 100 million 11.0% senior notes due in 2021 to strengthen its capital structure and expand financing sources[18] - The company issued USD 100 million of 11.0% senior notes listed on the Hong Kong Stock Exchange to enhance capitalization and expand institutional financing sources[33] - The company raised approximately HKD 1,400 million from its listing on June 21, 2018, with RMB 1,222 million allocated for various purposes as of June 30, 2019[114] Shareholder and Governance - Major shareholder Ma Tingxiong holds 37.91% of the beneficial interest with 8,450,000 shares[167] - The company has established multiple share incentive plans to provide equity-based incentives and rewards[128] - The board has adopted the corporate governance code principles and complied with applicable code provisions[129] - The audit committee has reviewed the interim report with senior management[193] Employee Engagement and Incentives - The company has implemented these plans to align the interests of employees and shareholders, thereby enhancing profitability contributions[145] - The company continues to focus on retaining key personnel through performance-based incentives linked to share ownership[145] - The total options exercised by directors under the 2017 Employee Stock Option Plan II amounted to 8,954,665, representing 5.38% of the total shares issued[154] Market Outlook and Business Strategy - The management is optimistic about the potential of the Chinese consumer finance market and plans to adapt business strategies for sustainable growth[21] - The company aims to expand its online consumer finance business and enhance compliance in a changing regulatory environment[57] - The regulatory environment remained stable, reducing uncertainties in the consumer loan industry, which is expected to support business development[21]

VCREDIT Holdings Limited 維信金科控股有限公司 (以存續方式於開曼群島註冊的有限公司) 股份代號: 2003 年報 2018 - 0 o 目錄 公司資料 主席報告書4 首席執行官報告5 管理層討論及分析8 董事會及高級管理層 27 企業管治報告 32 董事會報告 43 財務業績 獨立核數師報告 59 綜合全面收益表 66 綜合財務狀況表 68 綜合權益變動表 69 綜合現金流量表 71 綜合財務報表附註 73 四年財務資料概要 178 公司資料 Cha Johnathan Jen Wah先生 | --- | --- | |---------------------------------------|-----------------------------------------------------------------------| | 董事會 | 註冊辦事處 | | 執行董事 | TMF Group (Cayman) Ltd | | 廖世宏先生 （首席執行官） | 2nd Floor The Grand Pavilion Commercial Center | | 廖世強先 ...