On August 24th, 2003.HK announced its results for the first half of 2023.

According to the financial report, in the first half of 2023, the total income of Weixin Jinke reached 1.92 billion yuan, an increase of 21.2 percent over the same period last year, and the amount of loans reached 36.2 billion yuan, an increase of 31.4 percent over the previous month.

In addition to the expansion in the size of the performance, in the financial report, Vixinco also announced the latest dividend plan-HK $0.15 per share. This continues the dividend policy of the company in recent years. Under the background that the Hong Kong stock market is in the doldrums and it is more difficult to obtain capital gains in recent years, stable dividends show the company's long-term and stable growth and inherent investment value.

In addition, the business level of "seeking change in stability" is the intuitive feeling that the interim performance report of Weixin Jinke brings to investors, which can be seen from the following aspects.

1) maintaining the light asset model is conducive to steady growth.

As a financial technology service provider, Weixin Jinke's business development has a close relationship with the external macro environment. Since the beginning of this year, the economic recovery of "strong expectations, weak reality" has objectively challenged the growth of many industries, but Weixin Jinke still achieved double-digit revenue growth.

This is inseparable from the continuous development of its loan business. In the first half of this year, the company's loan matchmaking service fee income was 1.105 billion yuan, an increase of 59.6% over the same period last year, accounting for 57.64% of the total revenue, which is still the main source of the company's growth momentum.

The loan business reflects the path of the transformation from Weixin Jinke to light asset operation mode. In particular, under the pure loan matchmaking business model, the company provides customer acquisition and risk advice to licensed financial institutions, does not bear credit risk, and is a light asset operation model for pure technology export. In the first half of 2023, the loan volume of this part of the business reached 5.081 billion yuan, accounting for 14%, an increase of 2.3% over the same period last year.

The essence of the lending business is that Weixin Jinke helps other financial institutions get customers, and also helps customers with financing needs to find suitable financial institutions. In order to give full play to the bilateral effect of Weixin Jinke as a platform, how to expand the ecology is very important.

To this end, Weixin Jinke has reached a cooperation agreement with well-known content platforms, photo editing applications, Internet logistics platforms and other channels to analyze user behavior and enrich user portraits, so as to achieve accurate push of high-quality customers. In the first half of 2023, the cumulative number of registrations of Weixin Gold increased by 7.1% compared with the second half of 2022.

On the other hand, relying on its own customer and technological advantages, Weixin Jinke has attracted more and more cooperation institutions and built a more stable and reliable third-party funding channel. By the end of June 2023, Weixin has established cooperative relations with 96 financial institutions, including 21 national joint-stock commercial banks, consumer finance companies and trust funds.

In addition to developing the existing domestic consumer finance business, Weixin Jinke is also focusing on exploring more new growth opportunities.

In the first half of this year, Vixinco launched the localized consumer finance brand "CreFIT" in Hong Kong, China, and agreed to acquire Banco Portugu ê s de Gest ã o, S.A., a credit institution registered with the Bank of Portugal, and was given a ticket to enter the elimination business in the Portuguese and European markets.

With the continuous expansion of the scale of customers and third-party financial institutions, it is conducive to the further play of bilateral effects, thus accelerating the progress of the company's transformation to a light asset model.

2) comply with the tide of AI and promote the transformation of digitization

If the steady growth of performance and the firm transformation of the light asset model reflect "stability", then grasping the general trend of AI to promote digital transformation is the core "change" that Weixin Jinke's performance has brought to the market.

Since the beginning of this year, the emergence of CHATGPT has ignited a fire of AI to the global market, not only reflected in the frequent changes in concept stocks related to the capital market, but more importantly, the productivity change symbolized by AI has brought endless imagination space for the future development of various industries.

Focusing on China's policy side, the digital economy is the main tone of the current economic transformation and upgrading. According to the Digital China Development report (2022), the scale of China's digital economy reached 50.2 trillion yuan in 2022, ranking second in the world and accounting for 41.5% of GDP.

Then, how to promote their own digital transformation with the help of the general trend of AI has become a must-answer for every enterprise.

As a technology-driven financial technology company, Weixin Jinke can be widely recognized in the industry, and has such a high customer loyalty, largely because of its technological advantages to bring excellent products and services.

In the first half of this year, Weixin Jinke launched AI intelligent online customer service robot, which helps to respond to user needs in a timely manner, facilitate customer operation and enhance user experience.

Not only that, Weixin Jinke continuously improves the user experience and customer loyalty by introducing the user willingness model. In the first half of this year, refinancing customers contributed 82.1% of the total loans.

This is inseparable from Weixin Jinke's long-term attention to technological research and development. In the first half of 2023, research and development costs of Weixin Jinke increased by 24.1% compared with the same period last year.

Technological progress is not only reflected in customer service, but also conducive to the improvement of their own management efficiency. In the first half of this year, the company officially launched the VOS (Weixin core business system) new generation platform to streamline business modules and optimize the system architecture, which is conducive to the substantial improvement of R & D efficiency.

At the same time, Weixin Jinke is also actively exploring potential technical cooperation with financial partners and deepening the digital alliance with financial partners. As a data intelligence-oriented enterprise, through landing intelligent distribution routes, Weixin Jinke continues to improve the automation and stability of capital allocation, improve operational efficiency and better optimize the capital cost structure.

Conclusion

With the gradual recovery of the macro-economy, the business development environment of Weixin Jinke will become warmer. Driven by the upturn of the economic cycle, Weixin Jinke, which can achieve reverse growth, has the ability to burst out stronger growth momentum. More importantly, under the background of AI promoting industrial change, Weixin Jinke can actively seek change and actively embrace this major trend, which will help it to obtain incremental opportunities in a longer time dimension.