上市捷报丨沙利文助力K Cash集团有限公司成功赴港上市(2483.HK)

K CashGroup Co., Ltd. (Stock Code:2483.HK) on2023year12month5The company successfully listed on the Hong Kong Capital Market Main Board on [date]. It is a licensed lender in Hong Kong, focusing on providing unsecured loans through fintech while creating a convenient customer experience. By empowering digital finance, it enables anyone who cannot obtain traditional mainstream credit products in Hong Kong to access unsecured loans. Frost & SullivanFrost & Sullivan,Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') isK CashGroup Co., Ltd. has successfully gone public by providing exclusive industry advisory services. We hereby extend our warmest congratulations on its successful listing.

K CashGroup Co., Ltd. (hereinafter referred to as "K Cash"") Yu2023year12month5The company plans to go public on the 1st of July1.25100 million sharesHstocks, among which90%For international distribution,10%For public offering, there are also15%Excess share options. The final issue price is1.80HK$, net proceeds of approximately1.94HK$10 billion.

During the Hong Kong listing process, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, uncovering, supporting, and highlighting the issuer's competitive advantages through objective market data analysis, assisting the issuer, investment banks, and other intermediaries in completing the writing of relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important sections), helping the issuer communicate with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and providing feedback on various industry-related issues to the Hong Kong Stock Exchange.

Investment highlights

The company is a licensed lender in Hong Kong, ranking among the top five in the licensed unsecured financing market in Hong Kong and among the top three in the licensed unsecured owner's loan market;

The company continues to enhance the customer lending experience and streamline workflows by adopting fintech applications to provide cost-effective loan services;

The company has comprehensive credit risk management capabilities, leveraging technology and industry experience;

The company has efficiently deployed an online and offline loan platform, strategically established branches, and adopted diversified and effective market promotion measures to more effectively target its target customers;

The company has a professional and experienced management and fintech team.

According to a report by Frost & Sullivan, by2023Annual Income, Company:

Ranked fourth in the licensed unsecured financing market in Hong Kong;

Ranked first in the Hong Kong mortgage-free housing scheme property loan market;

One of the leading fintech application companies in the licensed unsecured financing market

Overview of Licensed and no mortgage loans market in Hong Kong

Driven by the increase in consumer income and expenditure, unsecured personal loans are2017Year-end2022Year-on-year stable growth. Specifically,2017Year-end2022The nominal per capita total local resident income for the year was375,400The Hong Kong dollar increased to404,100Hong Kong dollar, with a compound annual growth rate of approximately2.5%, while the average monthly expenditure per household was2015year27,600The Hong Kong dollar increased to2020year30,200Hong Kong dollar, with a compound annual growth rate of about1.8%The total value of unsecured private loans and advances is2017year115HK$ billion increased to2022year132HK$10 billion, with a compound annual growth rate of about2.8%As borrowers' financing needs for unexpected expenses increase, it is expected that the value of unsecured private loans and advances will be2027annual reach159HK$10 billion,2023Year-end2027The compound annual growth rate for the year is about3.6%.

Source: Frost & Sullivan report

Unsecured homeowner loans are targeted at borrowers who need quick access to funds but find it difficult to obtain mortgage loans from banks. The demand for unsecured homeowner loans has grown rapidly, partly due to an increase in the number of assisted sales units, from2017year400,000The number of partners has increased to2022year437,000group, compound annual growth rate is about1.8%The total value of unsecured owner loans granted by licensed lenders2017approximately100HK$10 billion increased to2022year116HK$10 billion, with a compound annual growth rate of3.0%The growth trend may continue, and the forecast figures are as follows:2027Yandaoyou142HK$10 billion,2023Year-end2027The compound annual growth rate for the year is4.1%.

Even if there are no property mortgages under the mortgage-free owner's loan, borrowers' credit is generally considered better than that of those without any property, hence licensed lenders usually charge lower interest rates on mortgage-free owner's loans. In line with the value growth of mortgage-free owner's loans granted by licensed lenders, the total turnover generated from mortgage-free owner's loans2017approximately20HK$10 billion increased to2022year22HK$10 billion, with a compound annual growth rate of1.9%to2027In [year], driven by the steadily rising demand, it is estimated that the total turnover of this segment will be approximately26HK$10 billion,2023Year-end2027The compound annual growth rate for the year is3.1%.

Source: Frost & Sullivan report

Yu2017Year-end2022In the year, the value of unsecured private property owner loans and advances was8,841.7One million Hong Kong dollars increased to10,182.8One million Hong Kong dollars, with a compound annual growth rate of approximately2.9%, while the turnover of unsecured private property owner loans and advances was2022annual reach1,963.3One million Hong Kong dollars,2017Year-end2022The compound annual growth rate for the year is about2.3%Looking ahead, the value and turnover of unsecured private property owners will be2023Year-end2027Annually as per the contract3.9%and3.7%Compound annual growth rate increases.

Source: Frost & Sullivan report

Competition landscape of the licensed unsecured financing market in Hong Kong

The licensed unsecured financing market is relatively concentrated, and by revenue, the top five market participants account for the84.4%Yu2022year,K CashThe income is233.5One million Hong Kong dollars, accounting for the market share of licensed unsecured financing in Hong Kong3.6%In addition, Yu2022In the year, in the mortgage-free housing scheme property loan market, the three major participants and their respective market shares wereK Cash (52.4%)Asia United Finance Co., Ltd.(20.9%)Ji'anxin Credit Co., Ltd.(13.2%).

Source: Frost & Sullivan report

Hong Kong Licensed Mortgage-free Financing MarketKey market drivers

Integrate with fintech to simplify and expedite approval processes

Licensed debt issuers are leveraging various fintech technologies, including artificial intelligence and robotic process automation, to simplify and speed up loan approval procedures. With the support of digital information infrastructure, licensed debt issuers can achieve more convenient and rapid loan approval processes compared to traditional financial institutions. This helps licensed debt issuers attract and retain more customers. Some companies can also use methods such as ATMs or bank transfers to quickly disburse loans to customers.

Consumption drives the economy, and the macroeconomy grows steadily

The licensed debt lending industry is closely related to the scale and growth of consumer spending, especially in the private lending sector. The increase in purchasing power has driven a continuous demand for credit services such as bank credit cards and related financial services such as private loans. For example,2022The total number of new card accounts reached approximately1,560,000Specifically, through unsecured private loans, borrowers can simplify their monthly credit card repayments at lower interest rates, alleviating and streamlining financial consequences. Therefore, stable shopping intentions and growing consumer capabilities will become the main drivers of growth for licensed debt financing industries.

Credit payment services are becoming more widespread.

According to the Hong Kong Monetary Authority's data, the total value of credit card transactions in Hong Kong2017Second quarter of the year1,550.76HK$10 increased to2022Second quarter of the year1,771.51HK$10 billion, with a compound annual growth rate of about2.7%The stable growth of credit payment services is expected to translate into increased borrowing, even defaulting on credit card bills. As a solution to personal liquidity problems, unsecured private loans are expected to be promoted by the popularization of credit payments.

The steady development of small and medium-sized enterprises

Small and medium-sized enterprises are the cornerstone of Hong Kong's economy.2022The number of enterprises reached340,000Percentage, out of the total number of enterprises98%and employing the labor force of private enterprises46%Given the limited resources and financial capabilities that constrain business scale, it is generally difficult for small and medium-sized enterprises (SMEs) to obtain funds from banks. Administrative costs can be high, and some SMEs may have an urgent need to meet working capital requirements and pay for operational expenses such as salaries and rent. Licensed debt brokers can provide them with highly flexible, well-organized, and customized financing products, with simpler processes and lower collateral requirements, which meet the needs of SMEs.

View the full prospectus

Frost & Sullivan has extensive research experience in the financial and business services industry, assisting well-known enterprises in successfully listing on capital markets. Successful listings include: Shengde Wealth (NASDAQ:PWM), Tiancheng JinhuiNASDAQ:TCJH), 9606 Finance (9636.HK), Lichen ChinaNASDAQ:LICN), Noah Holdings6686.HK), CEDC Advisory2176.HK), Bairen Cloud Creation6608.HK), Excellent Business Service6989.HK), Huazhu (1179.HK), Zhongguancun Technology Rental1601.HK), Baolong Commercial9909.HK), Travel Orange Culture8627.HK), Yincheng Life Services1922.HK), International Yongsheng8441.HK), Xinyuan Property (1895.HK), TAIEX Small Loan1915.HK), Zhongzhixin HoldingsNASDAQ:CIH), Haitong Hengxin1905.HK), Asian EraNASDAQ:ATIF), Liancheng Technology8635.HK), Aoyuan Health3662.HK), Jiazhaoye2168.HK), Ruize Asset Management1835.HK), TradeGo8017.HK), Baiying Leasing8525.HK), Zi Yuan Yuan8223.HK), WeCom Finance (2003.HK), Huifu Tianxia1806.HK), the balance is right (8403.HK), Junyi Global Finance8350.HK), Shengye Capital8469.HK), Chinese Art Finance1572.HK), Xingzheng International8407.HK), Bank of China Leasing1606.HK).