Sector: Financial Services
Industry: Credit Services
Sub-Industry: Consumer Finance
9F is a leading digital financial account platform integrating and personalizing financial services in China with footprint expanding overseas. The company provides a comprehensive range of financial products and services across loan products, online wealth management products, and payment facilitation, all integrated under a single digital financial account.
According to Oliver Wyman, among the independent marketplace lending platforms in China, 9F is the largest online consumer finance platform in terms of outstanding loan balance as of December 31, 2018. The company leverages technology, a deep understanding of its large user base and strategic partner relationships to create a one-stop experience bringing together borrowers, investors, financial institution partners and merchant partners.
The core of 9F's value proposition is a digital alternative to conventional personal finance offerings which the company call One Card ( GRAPHIC ). Around One Card, 9F has built an ecosystem connecting borrowers, investors, financial institution partners and merchant partners. It offers revolving loan products tailored to the specific spending needs and risk profiles of millions of One Card users. 9F's One Card users can utilize their approved credit limits to purchase products from 9F's strategic partners including China UnionPay that has connected more than three million merchants, and from the One Card Mall, 9F's proprietary online shopping platform.
Additionally, 9F's One Card users can also draw down cash from approved credit limits to meet other financial needs. The company also offer non-revolving loan products that cover key consumption verticals such as home improvement, education, elective medical care services and consumer electronics.
9F's total net revenues increased from RMB1,092.4 million for the three months ended March 31, 2018 to RMB1,204.0 (US$179.4 million) for the same period in 2019. Net income increased from RMB290.7 million for the three months ended March 31, 2018 to RMB527.4 million (US$78.6 million) for the same period in 2019. Excluding the effect of share-based compensation expenses, the company's adjusted net income increased from RMB412.3 million for the three months ended March 31, 2018 to RMB561.0 million (US$83.6 million) for the same period in 2019.
As of June 30, 2019, 9F's institutional funding partners had approved the funding limit in the aggregate amount of over RMB70 billion (US$10.4 billion) under direct lending program. The percentage of loan origination volume funded by institutional funding partners to total loan origination volume has increased significantly from approximately 10.5% for the three months ended March 31, 2019 to 58.0% for the three months ended June 30, 2019.