OUR COMPANY
Who We Are
We are a leading financial
services enabler for SBOs in China. Our mission is to foster small business competitiveness and sustainability by providing individual entrepreneurs with access to financial products and services and empowering institutional partners to reach and
serve SBOs efficiently.
SBOs include both owners of legal entities and individuals who conduct their business as sole proprietors. SBOs
often own and operate multiple SMBs, either consecutively or concurrently, in the same or related industries and at different stages in their lifecycles.
We offer financing products designed principally to address the needs of SBOs. In doing so, we have established relationships with over 550
financial institutions in China, many of which have worked with us for over three years. These financial institutions provide funding and credit enhancement for the loans we enable as well as other products to enrich the SBO ecosystem that we are
creating.
We consider ourselves a non-traditional financial service provider, by which we mean we
apply cutting-edge technology to the enablement of transactions by traditional financial institutions, such as banks, which are licensed to accept deposits and make loans but which are limited in their market reach in certain respects by their
reliance on traditional offline business practices.
Enablement means that we make it possible for financing transactions to occur, by
connecting financial institutions to borrowers they would not otherwise reach, providing or arranging credit enhancement services to allow loans to be made, and providing post-origination services such as collection services, and value-added
services and tools.
Through our offline-to-online model
supported by our nationwide direct sales network, we have served a total of over 4.6 million, 5.9 million, and 6.6 million SBOs in China since the beginning of our business in 2005, as of December 31, 2020, 2021 and 2022,
respectively. The total outstanding balance of loans we enabled was RMB545.1 billion, RMB661.0 billion and RMB576.5 billion (US$82.9 billion) as of December 31, 2020, 2021 and 2022, respectively. We ranked second among non-traditional financial service providers for SBOs in China in terms of total outstanding balance of inclusive SMB loans as of June 30, 2022, with a market share of 17.6%.
What We Do
We are primarily engaged in
the enablement of loans in China. We enable loans under two distinct business models. Approximately 99.3%, 98.2% and 94.9% of the total outstanding loans we had enabled as of December 31, 2020, 2021 and 2022, respectively, are loans we enabled
under our core retail credit and enablement business model. These are large-ticket loans, having an average ticket size of RMB164,483, RMB199,502 and RMB240,179 for general unsecured loans enabled in 2020, 2021 and 2022, respectively, and
RMB390,467, RMB430,795, and RMB438,675 for secured loans enabled in 2020, 2021 and 2022, respectively. The remaining 0.7%, 1.8% and 5.1%, respectively, consist of loans we had enabled through our licensed consumer finance subsidiary. These are
small-ticket loans, having an average drawdown of RMB3,301, RMB3,797, RMB5,979 in 2020, 2021 and 2022, respectively. The enablement of loans accounted for nearly all of our total income in 2020, 2021 and 2022. In addition to the enablement of loans,
we have also begun to refer borrowers to banks through a product that we have branded Lujintong, which accounted for less than 2% of our total income during any year.
We operate our core retail credit and enablement business model under the Puhui brand. Puhui targets SBOs who require larger ticket size loans
on short notice for imminent operating commercial needs of their businesses, and to a lesser extent also salaried workers dealing with major life expenses. Puhui enables two types of loans,
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