Financial Performance - Adjusted net profit for 2022 reached RMB 688 million, a 152% increase compared to RMB 273 million in 2021[5] - Total financing transactions in 2022 were 556,000, a 5% increase from 2021, with financing amount reaching RMB 53 billion, up 18% year-on-year[5] - New core service revenue grew 54% to RMB 3.61 billion in 2022, up from RMB 2.347 billion in 2021[5] - The company's adjusted operating profit for 2022 was RMB 755.1 million, a significant increase from RMB 274.8 million in 2021, primarily due to revenue growth[22] - The company's adjusted net profit for 2022 was RMB 688.3 million, compared to RMB 273.2 million in 2021, also driven by revenue growth[23] - The company's operating profit for 2022 was RMB 400 million, up from RMB 102.2 million in 2021[22] - The company's net profit for 2022 was RMB 370.8 million, a substantial increase from RMB 28.9 million in 2021[23] - Total revenue increased by 49% year-over-year to RMB 5.20 billion in 2022, driven by rapid growth in the transaction platform business[24][25] - Core business revenue, including loan facilitation services and new self-operated transaction income, grew by 54% to RMB 3.61 billion in 2022[25] - Loan facilitation service revenue increased by 62% to RMB 3.15 billion, accounting for 61% of total revenue in 2022[26] - Transaction platform business revenue grew by 73% to RMB 3.98 billion, contributing 77% of total revenue in 2022[27] - Gross profit increased by RMB 1.11 billion or 62% to RMB 2.888 billion in 2022, with a gross margin of 56%, up from 51% in 2021[31] - Transaction platform business gross margin improved to 55% in 2022 from 49% in 2021, driven by higher percentage of high-yield businesses[32] - Net interest income for self-operated financing business increased by 6% to RMB 696.1 million in 2022, with a net interest yield of 5.5%, down 10 basis points from 2021[33] - Operating profit increased significantly to RMB 400 million in 2022 from RMB 102 million in 2021, primarily due to higher gross profit[39] - Net profit for the period rose to RMB 371 million in 2022 from RMB 29 million in 2021, driven by increased gross profit[41] Financing and Transactions - Used car transactions accounted for 52% of the total financing volume in 2022[5] - The company's new energy vehicle financing transaction volume increased by 153% YoY to approximately 35,000 units in 2022[8] - Total financing transactions for the year ended December 31, 2022, reached 556,000, a 5% YoY increase from 530,000 in 2021, with total financing amount rising to RMB 52.995 billion, up 18% YoY from RMB 44.928 billion[16] - New car financing transactions decreased by 9% YoY to 265,000 in 2022, while financing amount increased by 1% YoY to RMB 25.617 billion[16] - Used car financing transactions surged by 23% YoY to 291,000 in 2022, with financing amount jumping 40% YoY to RMB 27.379 billion[16] - New energy vehicle (NEV) financing transactions skyrocketed by 153% YoY to 35,000 in 2022, with financing amount surging 199% YoY to RMB 3.705 billion[16] - NEV financing accounted for 18% of total new car financing in H2 2022, up from 7% in 2021, with AION NEV contributing nearly 30% of total NEV financing transactions[17] - Used car financing represented 52% of the company's total financing transactions in 2022, driven by increased investment in sales teams and channel development[17] - The company facilitated approximately 463,000 financing transactions through loan facilitation services, with a 7% increase in transaction volume year-over-year[27] - Self-operated financing business revenue increased by 2% to RMB 1.22 billion in 2022, primarily due to new financing lease transactions[28] Risk Management and Asset Quality - The 90+ days delinquency rate slightly decreased to 1.92% as of December 31, 2022, compared to 1.95% in 2021[6] - The company developed a decision engine based on massive customer data to analyze repayment behavior and implement early warning measures[6] - The company adjusted risk policies proactively in response to external uncertainties and economic recovery delays[6] - The company's asset quality was impacted by delayed economic recovery and weakened customer repayment capabilities[6] - The overdue rate for financing transactions over 180 days decreased to 1.49% in 2022, down from 1.64% in 2021[50] - The overdue rate for financing transactions over 90 days (including over 180 days) decreased to 1.92% in 2022, down from 1.95% in 2021[50] - The company implemented stricter customer approval standards in 2022 to mitigate macroeconomic uncertainties[51] - Credit impairment losses surged by 176% to RMB 790 million in 2022, mainly due to increased provisions for expected credit losses on financing receivables[37] - The coverage ratio of expected credit loss provisions for net receivables from financing leases rose to 4.28% in 2022, compared to 3.49% in 2021[44] - The risk guarantee liability ratio increased to 2.55% in 2022, compared to 1.91% in 2021[48] New Energy Vehicles (NEV) - The penetration rate of new energy passenger vehicles reached 27% in 2022, reflecting strong growth momentum[5] - China's new energy vehicle sales reached 6.9 million units in 2022, accounting for over half of the global market share[8] - The company's new energy vehicle financing accounted for approximately 18% of total new vehicle financing in H2 2022[8] - The company strengthened cooperation with AION NEV, BYD, Chery NEV, and Changan Auto, focusing on expanding NEV financing services[17] - The company plans to deepen its involvement in the NEV industry chain through charging infrastructure, battery leasing, battery swapping, and NEV fleet management[17] - The company's BaaS (Battery as a Service) model is gaining wider acceptance, with potential opportunities in battery leasing, replacement, and echelon utilization[8] - NEV sales in China surged 93% YoY to 6.9 million units in 2022, with NEV penetration rate expected to reach 34% in 2023[13] Fintech and SaaS Business - The company's SaaS business achieved revenue of RMB 122 million in 2022, with a target to facilitate over RMB 10 billion in financing through its fintech platform in 2023[10] - The company has established partnerships with nearly 40 institutions in its fintech business as of December 31, 2022[10] - The company's fintech business achieved revenue of RMB 122 million in 2022, its first year of operation, and established partnerships with nearly 40 institutional clients[19] - The company aims to tap into the RMB 2 trillion automotive financing market through its fintech business, which focuses on providing technology-based solutions for the automotive financing industry[19] - SaaS service revenue reached RMB 122 million in 2022, contributing 2% of total revenue, with a significant growth trend in the second half of the year[27] Dividends and Shareholder Returns - The company plans to pay a final dividend of HK$0.0195 per share and a special dividend of HK$0.0130 per share, subject to shareholder approval[11] - The company proposed a final dividend of HK$0.0195 per share and a special dividend of HK$0.013 per share, totaling approximately HK$212 million (equivalent to RMB 185.5 million) based on 6,523,873,012 shares[83] - The company's distributable reserves as of December 31, 2022, were RMB 18,296,147,000, compared to RMB 16,641,777,000 in 2021[85] Corporate Governance and Leadership - Zhang Xu'an, CEO and Executive Director, has over 20 years of experience in internet, automotive, and financial industries, and has been instrumental in the development of Yiche Holding since its merger with Bitauto in November 2020[70] - Jiang Dong, Executive Director and Co-President, joined the company in March 2015 and previously served as Group Vice President of China Grand Automotive Services Co., Ltd. from February 2011 to March 2015[70] - Xie Qinghua, Non-Executive Director, has been with Tencent since December 2003 and currently serves as Vice President of the company[71] - Miao Qin, Non-Executive Director, joined JD.com in June 2020 and has been the President of JD Retail's Lifestyle Services Business Group since January 2021[71] - Zhu Zhixin, Non-Executive Director, has been the Managing Director of Black Horse Capital (Hong Kong) Limited since July 2014 and has over 10 years of investment banking experience[71] - Yuan Tianfan, Independent Non-Executive Director, has held various high-profile positions including CEO of the Hong Kong Stock Exchange and Vice Chairman of PCCW Limited[72] - Guo Chunhao, Independent Non-Executive Director, has served in senior roles at international financial institutions such as Credit Suisse (Hong Kong) Limited and Standard Chartered Bank (Hong Kong) Limited[73] - The company's board diversity policy considers factors such as gender, age, cultural and educational background, professional experience, and industry expertise[195] - The company has 2 female directors and aims to maintain at least this level while gradually increasing female representation when suitable candidates are identified[199] - The company adopted a Diversity Policy and Nomination Policy, both updated in September 2022, to ensure board diversity and effective governance[193] Strategic Partnerships and Business Expansion - The company has established partnerships with nearly 40 institutions in its fintech business as of December 31, 2022[10] - The company aims to expand its business to the upstream and downstream of the automotive industry chain, including smart transportation and Mobility-as-a-Service (MaaS)[9] - The company invested in a high-tech enterprise providing autonomous driving solutions through a "vehicle-road-cloud" integration approach[9] - The company renewed its used car service strategic cooperation agreement with Jingzhengu, a subsidiary of Tencent, for another three years starting January 1, 2023[131] - The company leverages Yunhan's financing platform to expand its auto finance customer base and increase business revenue[143] - The company deepens its business cooperation with Dalian Rongxin to reach new customers and generate revenue by providing asset management and guarantee enhancement services[145] - The company utilizes Tencent's vast user base to attract more consumers to its financial products and services, thereby expanding its customer base and promoting business growth[147] Regulatory and Compliance - The company is subject to new cybersecurity regulations requiring annual data security assessments and reporting obligations for overseas-listed companies[166] - The company has complied with all relevant laws and regulations in all material aspects[175] - The company adheres to high standards of corporate governance, including transparency, accountability, and integrity[176] - The company has adopted anti-corruption and whistleblowing policies to maintain ethical business practices[179] - The company's public float is 22.99% of issued share capital, which is below the standard requirement but has been granted an exemption by the Hong Kong Stock Exchange[173] Shareholder and Investor Relations - The company raised a net amount of approximately HKD 6.51 billion (equivalent to RMB 5.53 billion) from its initial public offering, with the funds allocated as follows: HKD 1.95 billion for sales and marketing, HKD 1.30 billion for enhancing research and technical capabilities, HKD 1.30 billion for self-operated financing business, HKD 1.30 billion for potential investments or acquisitions, and HKD 650.76 million for working capital and other general corporate purposes[80][81] - As of December 31, 2022, the company had utilized HKD 6.25 billion (RMB 5.31 billion) of the raised funds, with HKD 196.53 million (RMB 166.86 million) utilized during the reporting period, leaving HKD 256.96 million (RMB 218.17 million) unused, primarily for enhancing research and technical capabilities[81] - The company expects to fully utilize the remaining funds for enhancing research and technical capabilities by the end of 2023, subject to further review[81] - The company's top five customers accounted for 35% of total revenue in 2022, with the largest single customer contributing 11%[169] - Revenue from the largest customer, Shanghai Pudong Development Bank, represented 11% of total revenue in 2022[169] - Purchases from the top five suppliers (excluding banks and financial institutions) accounted for 29% of total procurement in 2022, with the largest supplier contributing 23%[170] Operational Metrics and Market Trends - China's GDP growth slowed to 0.4% in Q2 2022 but rebounded to 3.0% for the full year, driven by stimulus policies and resumption of work in major cities[12] - China's new passenger car sales reached 23.6 million units in the reporting period, a 10% YoY increase, while used passenger car sales declined 8% YoY to 12.9 million units[13] - The company's aftermarket services business generated revenue of RMB 184 million in 2022, with 45% of the total aftermarket transaction value coming from used car customers[18] - The company has accumulated over 3 million customers by the end of 2022, providing a solid foundation for expanding and offering unique services throughout the service lifecycle[18] - The company's credit assessment system includes over 40 models analyzing user data, behavior, credit, and consumption patterns to evaluate creditworthiness[53] - Post-financing management includes GPS monitoring of vehicles and proactive repayment reminders sent three days before due dates[54] - The company considers writing off receivables overdue for more than 180 days, based on industry practices and historical recovery rates[55] Financial Position and Liquidity - Cash and cash equivalents increased to RMB 3.433 billion as of December 31, 2022, up from RMB 3.052 billion in 2021, driven by improved profitability and working capital management[56] - Total borrowings rose to RMB 12.5 billion as of December 31, 2022, compared to RMB 9.4 billion in 2021, with asset-backed securities and notes accounting for 32% of total borrowings[57] - Net current assets decreased by 12% to RMB 5.736 billion as of December 31, 2022, from RMB 6.534 billion in 2021, due to increased current liabilities from new borrowings[58] - Total equity increased to RMB 15.3 billion as of December 31, 2022, up from RMB 14.6 billion in 2021, primarily due to net profit recorded during the reporting period[59] - The company's asset-liability ratio increased to 31% as of December 31, 2022, from 21% in 2021, reflecting higher debt levels[60] - The company issued a total of RMB 44.9 billion in standardized products across various exchanges, including a groundbreaking RMB-denominated asset-backed note with an "AAA" international rating[57] - The company's liquidity ratio decreased to 1.52x as of December 31, 2022, from 1.78x in 2021, reflecting a higher proportion of current liabilities[60] - Current ratio decreased from 1.78 as of December 31, 2021, to 1.52 as of December 31, 2022, primarily due to an increase in short-term borrowings[61] - Debt-to-asset ratio increased to 31% as of December 31, 2022, from 21% as of December 31, 2021, mainly due to an increase in net debt[61] - Capital expenditure and investments totaled RMB 129.1 million in 2022, compared to RMB 428.6 million in 2021[63] Shareholder Structure and Ownership - Tencent Mobility Limited holds a beneficial interest of 489,922,607 shares, representing 7.51% of the issued shares[122] - THL H Limited holds a beneficial interest of 931,604,940 shares, representing 14.28% of the issued shares[122] - Teng Yue holds a beneficial interest of 2,093,833,612 shares, representing 32.09% of the issued shares[122] - JD.com Global Investment Limited holds a beneficial interest of 406,675,101 shares, representing 6.23% of the issued shares[122] - JD Financial Investment Limited holds a beneficial interest of 636,318,820 shares, representing 9.75% of the issued shares[122] - JD.com Investment Limited holds a controlled corporate interest of 1,042,993,921 shares, representing 15.99% of the issued shares[122] - Hammer Capital Holdco 1 Limited holds a beneficial interest of 422,125,440 shares, representing 6.47% of the issued shares[122] - Black Horse Capital holds a controlled corporate interest of 516,393,344 shares, representing 7.92% of the issued shares[122] - Zhang Xu'an holds 233,466,189 shares, representing 3.58% of the issued shares[117] - Jiang Dong holds 43,657,810 shares, representing 0.67% of the issued shares[117] - Tencent holds 489,922,607 shares through Tencent Mobility Limited, 931,604,940 shares through THL H Limited, and 2,093,833,612 shares through Tianyao, representing approximately 8.80% of the company's issued share capital as of December 31, 2022[123] - JD.com holds 406,675,101 shares through JD.com Global Investment Limited and 636,318,820 shares through JD Financial Investment Limited, with Max Smart Limited controlling 70.4% of JD
易鑫集团(02858) - 2022 - 年度财报