Strong policies support economic resilience

A1 We are deeply encouraged by the measures taken by China's State Council to stimulate consumer spending. China is one of the world's greatest economies and boasts enormous potential in terms of market capacity and development, with its population of nearly 1.4 billion. To meet the current and potential needs of consumers, Home Credit financial services help residents achieve cross-period optimization of consumption behaviors, playing an active role in expanding domestic demand and increasing consumption.

The policy to encourage financial institutions to innovate consumer credit products and services as well as promote the development of consumer financial organizations has ushered in tremendous opportunities for professional consumer finance companies like Home Credit. With this favorable policy, Home Credit's strengths in service quality, risk control, diversified service scenes, and more are playing a key role in promoting the development of the consumer credit market and, more importantly, contributing to the sustainable development of China's high-quality economy.

A2 As incomes and consumption continue to grow, China's domestic demand has become a powerful force in driving economic growth. With forward spending for premium products and services gradually becoming a new norm for young people here, Home Credit aims to unlock new consumer finance scenarios based on the changing preferences and habits of millennials. Home Credit has expanded its product and service categories from traditional 3C products (computers, communications and consumer electronics) to household appliances and new service areas with strong demand, such as fitness, lifestyle, fashion and beauty, tourism, and more.

Meanwhile, there is a massive consumption potential in China's third-and fourth-tier cities as well as rural areas that remains unexplored. Because of its comparatively imperfect credit data and limited profit due to the small amount of loans, the traditional bank credit business has not been able to fully cover consumer demand as of yet.

A3 As consumption becomes the primary driving force of China's economic growth, we have identified several business opportunities.

First, we have observed a rise in diversified shopping scenarios. As incomes have skyrocketed, consumption demand has gradually diversified. Previously, Home Credit's main consumption scenario was to provide loans for mobile phones. However, we realized that the growth rate of the domestic mobile phone market has slowed, and that future opportunities are in service-related areas. That's why Home Credit has now entered emerging scenarios such as household appliances, home decor, beauty, tourism, vocational education, and fitness, to match people's wide-ranging needs for a high-quality life.

Second, with the integration of online and offline services, the rise in diversified services has propelled the industry to new heights. In order to meet the wide range of customer service needs and ensure high-quality customer experiences along the way, Home Credit has built a multichannel service system covering an official website, mobile app, WeChat account, Weibo account and customer service hotlines.