Share This

Public company info - 51 Credit Card Inc. , 02051.HK
Input the stock code or the company name     Search  
 
 Profile   Information   Data   Financial Ratios   Profit Loss   Cash Flow   Balance   Earnings   Dividend 

51 Credit Card Inc., 02051.HK - Company Profile
Chairman Sun Haitao
Share Issued (share) 1,358,000,000
Par Currency U.S. Dollar
Par Value 1.0E-5
Industry Other Financials
Corporate Profile Business Summary: The group is principally engaged in the provision of one-stop personal financial services covering personal credit management services, credit card technology services, and online credit facilitation and investment services (the “Listing Business”) in the People’s Republic of China (“China”, or the “PRC”). Performance for the year: The group’s total revenue decreased by 27.3% from approximately RMB2,812.0 million for the year ended 31 December 2018 to approximately RMB2,045.4 million for the year ended 31 December 2019. The group’s (loss)/profit for the year decreased from a net profit of approximately RMB2,168.8 million for the year ended 31 December 2018 to a net loss of approximately RMB1,111.0 million for the year ended 31 December 2019. Business Review The Company together with its subsidiaries (collectively, the “Group”) have created a comprehensive ecosystem built upon a widely-used credit card management platform, 51 Credit Card Manager App. In 2019, The group continued to maintain steady growth in user base. The number of registered users of 51 Credit Card Manager App grew 12.8% to approximately 85.6 million as of 31 December 2019 from approximately 75.9 million as of 31 December 2018, and the number of credit cards The group had managed cumulatively also grew 16.8% to approximately 143.7 million as of 31 December 2019 from approximately 123.0 million as of 31 December 2018. The group have also been enriching The group’s ecosystem to provide the users with better product experience. The group have established cooperation with six banks since the trial operation of the bank wealth management product referral business at the end of 2018. The group’s users can purchase the wealth management products issued by cooperating banks through the entrance on 51 Credit Card Manager App conveniently. As of 31 December 2019, the accumulated transaction amount of the bank wealth management product referral business had reached approximately RMB27.79 billion. 2019 was a challenging year for the fintech industry. Regulatory authorities of the PRC have issued a series of documents and guidances, specifying that healthy exiting and transformational development would be the general principle for the P2P industry. More efforts were put on P2P transformation and exiting by regulatory authorities across the PRC, and especially after October 2019, a number of provinces announced to start ceasing all P2P platforms in areas under their administration. Meanwhile, the further development of the special crackdown against organized crimes had an extensive effect on the post-loan debt collection industry. Risks in the personal consumption credit market have risen in a short time as a result of many of the above factors. To ensure the risks relating to the debt collection business is controllable, The group have stopped engaging independent third parties to collect loans which are overdue by thirty days or more since July 2019, and all relevant collection is managed by The group’s professional debt collection teams directly instead. However, on 21 October 2019, The group’s office located in Hangzhou was under the on-site investigation carried out by the relevant PRC government authorities due to the suspected violation of laws and regulations by a debt collection agency The group once cooperated with (the “1021 Event”, please refer to the announcements of the Company dated 21 and 22 October 2019 respectively, for details). After the occurrence of the 1021 Event, The group fully cooperated with the investigation and supervision of the relevant authorities and further improved The group’s compliance awareness. Meanwhile, The group made efforts to maintain positive communication and cooperation with The group’s business partners and resumed The group’s daily operations soon thereafter. The factors above have exposed The group’s business to relatively significant short-term risks. In particular, the default risk of the outstanding loans facilitated by us rose significantly in the fourth quarter of 2019. To cope with these risks, The group have proactively adopted more prudent strategies as compared to 2018, including implementing stricter and more cautious risk control, reducing the scale of the credit facilitation business proactively and stopping new facilitations of P2P funds. The balance of The group’s P2P online lending business decreased from approximately RMB13.24 billion as of 31 December 2018 to approximately RMB5.63 billion as of 31 December 2019 and further decreased to approximately RMB3.5 billion as of 29 February 2020. Affected by the risks and strategies above, The group’s total revenue in 2019 decreased from approximately RMB2,812.0 million in 2018 to approximately RMB2,045.4 million, and an adjusted net loss for the year of RMB847.1 million was recorded, mainly due to the decrease in credit facilitation volumes and the increase in expected credit loss (“ECL”) under International Financial Report Standard 9 (“IFRS 9”) as a result of the rising default risk of outstanding loans facilitated by us. 1. Credit Facilitation Service In terms of credit facilitation business, affected by the abovementioned regulatory documents, the 1021 Event and other factors, The group have adopted a series of measures in 2019, such as reducing business scale, focusing the business on credit card holders with low risks and stopping new facilitations of P2P funds, so as to cope with rising risks relating to personal credit business. In 2019, the overall credit facilitation business scale amounted to approximately RMB23.22 billion, representing a decline compared to 2018. Particularly, the credit facilitation scale attributable to credit card holders amounted to approximately RMB20.09 billion, reaching 86.5% of the overall credit facilitation business scale, and representing an increase as compared to 81.8% in 2018. Meanwhile, facing increasing risks during the transformation period of the P2P industry, The group have also reduced the average loan size and average loan term of The group’s main credit products. These two indicators of the loan products targeting credit card holders have decreased from approximately RMB14,900 and approximately 13.6 months in 2018 to approximately RMB10,600 and approximately 10.5 months in 2019, respectively. Such strategy may reduce The group’s revenue from each loan The group facilitated in the short term, but The group believe that it can diversify the potential risks more effectively and help us to better achieve sustainable development in the long run. To adapt to the tightening regulations in the industry and achieve The group’s strategic goal of long-term sustainable development, The group have continued to strengthen The group’s cooperation with various financial institutions since 2019. After the 1021 Event and starting from November 2019, all of the new credit facilitation business was funded by financial institutions. Currently, the credit line of the credit facilitation business The group secured from financial institution partners is sufficient to support the long-term and healthy development. 2. Referral Service Benefiting from the continuous user growth, the improvement in efficiency enabled by the application of technology and the cross-selling opportunities brought by The group’s ecosystem, the referral service fee increased by 42.3% from approximately RMB203.1 million in 2018 to approximately RMB289.1 million in 2019. 3. Credit Card Technology Service Affected by the macro environment in 2019, The group’s partner banks tightened their risk strategies for the credit card market. Although The group have introduced a number of new partner banks, The group’s revenue from credit card technology service decreased from approximately RMB255.7 million in 2018 to approximately RMB152.3 million in 2019. Prospects: The pneumonia caused by the novel coronavirus was firstly discovered in Hubei Province and then spread throughout the PRC rapidly since January 2020. To prevent further spread of the disease, all local governments in the PRC have put in place rigorous prevention measures, including extension of the Chinese New Year holiday, restriction on public transport, requesting enterprises to delay the resumption of work, etc. The abovementioned measures will have adverse effect on personal consumption financial market in the short term. However, The group expect that the demand of personal consumption will rebound after the end of epidemic, leading to further growth in the consumption financial market. The group also expect that the PRC government will implement looser monetary policies with the aim to stimulate the economic growth, including increasing the investment in personal consumption lending, reducing the funding cost, etc. Therefore, The group foresee that The group’s credit facilitation business and credit card technology service business will make improvements as directly benefiting from the gradual recovery of the personal consumption financial market after the end of epidemic. Meanwhile, The group will keep paying attention to the trend of risk changes in the personal consumption financial market and adjust The group’s business strategy in a timely manner to seize the favorable opportunity of development arising from the recovering financial market. In 2020, The group will also prepare for the overall exiting and transforming of the P2P business. Benefiting from The group’s quality customer base of credit card business that The group have accumulated over the years, together with The group’s comprehensive ecological service system built on the credit card management tools, which consist of management and repayment of credit cards, personal wealth management, consumer credit and other services, The group have established solid cooperation with various financial institutions. The group’s rich experiences in working with various financial institutions will provide The group’s business with sufficient support for the long-term and sustainable development. The group will continuously strengthen the cooperation with financial institutions and enhance the output of The group’s technological capability. In addition, The group are now proactively seeking measures to apply for the license for the Internet micro credit business mentioned in the Guidance on the Transformation of Online Lending Information Intermediary Institutions into Pilot Micro Credit Companies in order to fully transform and exit the P2P business. The group expect that by seizing the new opportunities arising after the transformation from the license for the Internet micro credit business and based on the cooperation with other financial institutions, The group’s long-term and sustainable development of the credit facilitation business will be supported. Since the fourth quarter of 2019, pursuant to the promotion made by regulatory authorities of the PRC, P2P operators have begun to connect to the Credit Reference Center of the People’s Bank of China (the “Reference Center”) successively. Currently, The group are in progress of connecting to the Reference Center. With the gradual optimization of the individual credit reference system in the PRC, The group believe that the risk performance of individual consumption credit aspect is becoming more stable. The group expect to see a favorable movement in the collection of the bad debts arising from previous credit facilitation business. n conclusion, in the promising and challenging year of 2020, we, by leveraging on The group’s highly compliant business philosophy, unique business model, advanced technology and large user base, with strategic objective of long-term and sustainable development, will continue to maintain The group’s competitive advantages in the financial technology market in the PRC.

Information from the financial statements of listed companies

Mobile | Full
Forum rule | About Us | Contact Info | Terms & Conditions | Privacy Statment | Disclaimer | Site Map
Copyright (C) 2024Suntek Computer Systems Limited. All rights reserved
Disclaimer : In the preparation of this website, 88iv endeavours to offer the most current, correct and clearly expressed information to the public. Nevertheless, inadvertent errors in information and in software may occur. In particular but without limiting anything here, 88iv disclaims any responsibility and accepts no liability (whether in tort, contract or otherwise) for any direct or indirect loss or damage arising from any inaccuracies, omissions or typographical errors that may be contained in this website. 88iv also does not warrant the accuracy, completeness, timeliness or fitness for purpose of the information contained in this website.