Recently, the Hong Kong-listed company Vcredit (02003.HK) handed in its midterm report.

In recent years, despite the complex and volatile external macro environment, as a veteran fintech company, Vcredit has continuously strengthened its operational management and risk control capabilities and delivered sustainable operational results with its prudent business strategy and profound understanding of market dynamics.

According to the financial report, the company achieved a total revenue of 1.738 billion yuan (RMB) in the first half of the year, with a net profit of 0.12 billion yuan; earnings per share were 0.25 yuan.

From the company's core performance indicators, Vcredit's overall operational foundation remains solid and stable.

This judgment is mainly based on the following two aspects:

First, stable business operation.

This is directly reflected in its continuously expanding funding cooperation network and solid user base.

In the first half of the year, Vcredit's loan volume reached 27.02 billion yuan, and by establishing long-term relationships with 109 funding partners, it has enhanced the diversity and stability of funding sources.

In addition, Vcredit has continuously improved the user experience and enhanced customer satisfaction and loyalty by optimizing user operation strategies, such as shortening the loan disbursement time and reducing user operation paths.

According to the financial report, as of June 2024, Vcredit has accumulated a registered user base of 0.149 billion, a year-on-year growth of 9.8%. In addition, in the first half of the year, repeat borrowers accounted for 89.5% of the total loan volume. The increasing number of registered users and the proportion of repeat borrowers also demonstrate the company's impressive ability to attract and retain customers.

It is worth mentioning that the company's operations are not limited to the mainland, as Vcredit has also expanded its reach to Hong Kong, China.

For example, through its collaboration with China Mobile Hong Kong, Vcredit became the first loan company to cooperate with China Mobile Hong Kong, providing consumer financial products to the Hong Kong market. This cross-regional collaboration not only expands the company's business scope but also brings new growth opportunities.

By establishing mutual beneficial relationships with online platforms in different industries, Vcredit is able to better meet users' customized financial needs and further enhance its competitiveness in the fintech field.

Secondly, there is continuous improvement in asset quality.

Asset quality is one of the important indicators for assessing fintech companies, and Vcredit's performance in this area is commendable, with impressive core indicator data.

In the first half of the year, Vcredit continued to strengthen its asset quality. According to the financial report, the company's first payment delinquency rate in the second quarter of 2024 decreased by 29.6% to 0.50% compared to the fourth quarter of 2023.

This significant downward trend indicates that the company has made substantial progress in credit risk management. The decrease in the delinquency rate not only reduces potential credit losses, but also reflects the company's high efficiency in risk identification and post-loan management.

At the same time, it can also be seen that the company has improved its ability to identify and manage borrower risks and the quality of the loan approval process through upgrading risk models, adjusting credit limit policies, and utilizing AI technology to optimize the risk control system. With the combined effect of these measures, Vcredit has ensured the health of asset quality while maintaining business growth, laying a solid foundation for the company's long-term stability and development.

In addition to the continuous consolidation of the business foundation, as a senior participant in the fintech industry, Vcredit's series of achievements in technology innovation are also highlights that cannot be ignored in this financial report.

Through the promotion of intelligence upgrading, the company has not only improved its operational efficiency, but also continuously empowered the industry, and is committed to building a safe, compliant, and win-win digital technology ecosystem.

In terms of artificial intelligence application, Vcredit has launched the "Golden Crow Grand Model", the application of which greatly improves the operational efficiency of the enterprise, especially in the field of intelligent credit, significantly enhancing the statistical analysis and quality control level of customer service. At the same time, this model also helps the R&D team focus more on the design optimization of data architecture and system construction, and further improves the efficiency and quality of R&D through intelligent means of assisting code generation.

In addition, the company has iteratively upgraded its core risk control system "Fengniao" through the use of AI technology, further improving the operational efficiency of risk control and transforming the rule engine to reduce operational risks. This not only enhances the company's risk management capabilities, but also provides partners with safer and more reliable financial services.

Vcredit has also integrated and promoted its technological solutions to funding partners, providing comprehensive digital support for financial institutions to help them achieve digital transformation and upgrading.

Based on this path, it also opens up a new growth curve for Vcredit. By exporting its own technological capabilities to the industry, the company has the potential to explore new market opportunities, form new performance growth points, and even reshape its own business model.

It can be said that Vcredit has more confidence to participate in the fierce industry competition by driving its own business growth and improving quality and efficiency through technological innovation, while also empowering the industry.

Conclusion

Recently, there has been a continuous strengthening of regulatory policies in the industry.

In this process, it may also mean that those industry participants who are non-compliant or weaker in strength will face greater operational pressure, and even withdraw from the market competition. Obviously, this also brings opportunities to companies with advantages.

As a company that has been established for 18 years, Vcredit has unparalleled advantages in regulatory adaptability, risk management, market insight, etc., which also determines that it will continue to traverse the market cycles and reap the benefits of the industry's continuous development and transformation.