Riding on the leading Fintech in the industry, the Group continuously enhanced the customer acquisition algorithms and improved its credit risk assessment and management models. The current highly intelligent and autonomous risk management system has led the Group to adapt to volatile market situations and uncertainties such as the COVID-19 pandemic. The Group primarily offers two credit products through its pure online loan lending processes: (1) credit cards balance transfer products, and (2) consumption credit products, both of which are installment-based.

In spite of the stringent supervision on the online consumer lending sector imposed by the Chinese government, the Group has overcome obstacles and continued to enhance its collaborations with existing institutions, while introducing new consumer finance companies, banks and trust companies to the ecosystems. As the P2P exists come to an end and the crackdown on undesirable debt collection methods permeates the market, asset quality stabilizing in the consumer lending sector in China will benefit the Group in the long run.

The Group’s strategic cooperation with China Telecom Corporation Limited (“China Telecom”) and China Mobile Communications Corporation Limited (“China Mobile”) also presented outstanding performance. During the period, the Group’s collaborations with China Telecom covered 265 cities in China, which accounted for a total loan volume of RMB89.9 million. The collaboration with China Mobile resulted in total loans of RMB184.9 million to more than 24,000 China Mobile customers provided by the Group.

The Group also invested RMB20 million to acquire a 0.27% interest in Guoren Property and Casualty Insurance Co. Ltd. (“Guoren P&C”) to become one of its shareholders. Relying on the highly advanced Fintech, the Group and Guoren P&C will carry out in-depth cooperation in insurance technology, consumer finance and other related business fields to digitalize risk management models, customer service capabilities and post-loan management processes. With the aim of creating and capturing synergies, the Group has established a joint business division with Guoren P&C to support talent communication and share technology specialties, jointly explore new business fields in Fintech and insurance.