• Achieved an adjusted net profit of RMB331.5million despite a market downturn
  • Recommended the distribution of an interim dividend of HK10 cents

VCREDIT Holdings Limited (VCREDIT or the Group; HKG: 2003), a leading independent online consumer finance provider in China, announced its unaudited interim results for the 6 months ended 30 June 2022 (the Period). During the Period, the Group achieved a solid performance from operations despite a number of challenges, including outbreaks of the COVID-19 coronavirus and lockdown of Shanghai and other cities in China and deterioration in the real estate sector. The Group recorded a total income of RMB1,582.5 million, and an adjusted Net Profit of RMB331.5 million. The Board has recommended the distribution of an interim dividend of HK10 cents per ordinary share of the Company (the “Share”) for the Period to shareholders of the Company.

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 the risk management model to reflect market developments and behavioural changes that affect demand for its products as the Group maintains its strategy of targeting higher quality prime and near-prime borrowers.

Its loan origination volume reached a record high of RMB24.64 billion for the Period, representing an increase of 9.4% compared to the six months ended June 30, 2021 and an increase of 35.5% compared to the six months ended December 31, 2021. The outstanding loan balance exceeded RMB20.49 billion as of June 30, 2022, representing an increase of 31.1% compared to RMB15.64 billion as of December 31, 2021.

Initiate strategy changes that foster flexibility

By using dynamic data analytics to constantly refine its penetration as well as enrich its service to customers, the number of its registered users increased to 118.1 million, and is 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 the market downturn

Despite the added risks within China’s macro environment due to the effects of outbreaks of COVID-19 and lockdown of Shanghai and other cities in China and deterioration in the real estate sector in 2021, which persisted throughout the first half of 2022, the Group manages to improve its delinquency ratios and asset quality metrics which are currently at levels that are considerably better than the second half of 2021.

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 in 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 to present 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.


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 streamlining and extending 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 VCREDIT Holdings Limited (HKG: 2003)
VCREDIT Holdings Limited (HKG: 2003) (VCREDIT) is a leading player in China’s consumer finance industry with over 10 years of track record. The Company caters to prime and near-prime borrowers underserved by traditional financial institutions by offering credit card balance transfer products, and consumption credit products. To match the funding needs for these products, the Company primarily engages institutional funding partners through three types of sustainable and scalable funding structures: trust lending, credit-enhanced loan facilitation and pure loan facilitation. Through such funding structures, VCREDIT provides institutional funding partners with solutions at varying levels of risk discretion and flexible profit-sharing arrangements.

For enquiries, please contact Hill+Knowlton Strategies Asia:
Vivian Kwan / Jennifer Wong
Tel: (852) 9146 6322 / (852) 2894 6255
Email: vcredit@hkstrategies.com