Core Viewpoint - WeBank's microloan product, WeLiDai, has rapidly grown into a core business engine since its launch in 2015, leveraging Tencent's ecosystem and joint lending model, with cumulative lending reaching trillions and over 70 million users served [3][4]. Group 1: Growth Journey - WeLiDai was launched on May 15, 2015, as part of WeBank, China's first internet bank without physical branches, initially using a whitelist invitation system for credit assessment [6][7]. - By the end of 2015, WeLiDai had issued loans totaling 128.17 billion with 352,000 credit customers, and by 2019, cumulative loans reached 3.7 trillion, making it a key consumer credit product for Tencent [7][8]. Group 2: Challenges and Market Dynamics - WeLiDai faces challenges from tightening regulatory policies affecting the joint lending model, leading to reduced funding sources and increased credit risks due to a shift towards lower-income customer segments [4][8]. - The competitive landscape for consumer loans has intensified, with declining interest rates and increased pressure from state-owned banks, resulting in a significant drop in WeBank's personal consumer loans in 2024 [9][8]. Group 3: Profitability and Business Model - WeLiDai's revenue model has evolved from a joint lending approach to a "facilitation" model, focusing on customer acquisition and risk assessment while charging service fees, with a current bad debt rate of approximately 1.5% [10][11]. - The product has significantly contributed to WeBank's profitability, accounting for about 80% of the bank's profits, with revenue growth from 2.26 billion in 2015 to 38.128 billion in 2024, reflecting a compound annual growth rate of 76.8% [12][14]. Group 4: Risk and Customer Service Issues - The non-performing loan rate has increased from 0.12% in 2015 to 1.44% in 2024, attributed to a broader customer base with lower income stability, leading to higher default risks [16][18]. - Customer complaints have surged, particularly regarding aggressive debt collection practices, raising concerns about compliance with personal information protection laws [19][21].