Corporate Profile

Corporate Profile

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Overview
We are a leading online consumer finance platform for educated young adults in China. We strategically focus on serving the credit needs of educated young adults aged between 18 and 36 in China, featuring young people with high income potential, high educational background, high consumption needs, a strong desire to build their credit profile, and an appreciation for efficient user experience. Our online consumer finance platform, Fenqile, addresses our users' credit needs by offering personal installment loans, installment purchase loans and other loan products. We offer a wide variety of competitively priced products on our e-commerce channel and allow users to use their credit lines to finance purchases. We match user loans with diversified funding sources, including individual investors on our Juzi Licai online investment platform, institutional funding partners in our direct lending programs and investors of our asset-backed securities.

Our Users
From our inception in August 2013 through the end of 2018, we originated loans to over 7.2 million users on a cumulative basis. In 2016, 2017 and 2018, we originated loans to approximately 3.0 million, 4.1 million and 4.9 million active users through our platform, representing a compound annual growth rate, or CAGR, of 28%. Our online consumer finance platform features a high proportion of repeat users. Of all active users on our platform in 2016, 2017 and 2018, approximately 74%, 80% and 80%, respectively, were repeat users who had made at least one transaction on our platform before in the same year or in the previous year. As of December 31, 2018, we had over 10.5 million users with an approved credit line and over 37.3 million registered users.

Our Loan Products
We launched Fenqile, our online consumer finance and e-commerce channel, in October 2013. On Fenqile, we offer personal installment loans and installment purchase loans using available credit lines approved by us with flexible repayment solutions. All of our loan products are unsecured and feature fixed monthly payments with various terms. In 2017 and 2018, we originated RMB47.7 billion and RMB66.1 billion (US$9.6 billion) in loans, representing a 38.5% increase. As of December 31, 2016, 2017 and 2018, the average user loan balance was RMB4,838, RMB6,580 and RMB9,048 (US$1,316), respectively.

Our E-Commerce Channel
The e-commerce channel on Fenqile offers competitively priced products across 17 categories with relatively high value, including electronics, fashion accessories, home furnishings and decor, and outdoor apparel. The product offerings on our e-commerce channel specifically meet the shopping needs of educated young adults. Our e-commerce channel features both direct sales of merchandise curated by us, as well as a marketplace through which third-party online merchants offer and sell their own products and services, such as leisure travel and continuing education. On our online marketplace, user orders are placed and fulfilled directly by the third-party merchants. The GMV of our e-commerce channel amounted to RMB4.0 billion in 2016, RMB4.1 billion in 2017, and RMB5.8 billion (US$848 million) in 2018. In 2018, we had provided over 1.2 million stock keeping units to our users.

Our Investors and Funding Partners
We benefit from our position of having diversified funding sources, including a wide array of types of investors and funding partners. Our various investment programs and products are designed to cater to investors and funding partners with different risk-and-return parameters.

Institutional funding partners in our direct lending programs Beginning in 2015, we expanded our funding sources to include institutional funding partners, including commercial banks, consumer finance companies, other licensed financial institutions and peer-to-peer lending platforms. In our direct lending programs, we refer qualified users to institutional funding partners which provide the funds to finance the loans, based on their risk-and-return requirements. Our proprietary Wormhole system, operated by Qianhai Dingsheng, one of our variable interest entities, connects our users and funding partners' systems in an automated process that minimizes manual review and approval by the funding partners, and allocates funding needs to various funding sources with different risk-and-return parameters.

Individual investors on Juzi Licai
We offer our Juzi Licai online investment platform to individual investors seeking attractive risk-adjusted investment returns. We have experienced strong growth in both the number of individual investors and the investment amount per investor in recent years. On Juzi Licai, we had over 442,000 cumulative individual investors as of December 31, 2018. In 2018, over 225,000 individual investors invested through Juzi Licai, compared to over 171,000 in 2017 and over 131,000 in 2016, among which over 98,000, 126,000 and 170,000 were repeat investors who had invested at least once before in the same year or in the previous year in 2016, 2017 and 2018, respectively. We had over 97,000, over 114,000 and over 134,000 new active individual investors in 2016, 2017 and 2018, respectively, who invested through Juzi Licai during the relevant year but had not done so prior to the beginning of that year. As of December 31, 2018, Juzi Licai had over 141,000 individual investors who had outstanding investments, with an average AUM of RMB94,599 (US$13,759).