Home Credit confirms official launch of operations in China
Amsterdam, 12/27/2007
Home Credit Asia N.V., a wholly owned subsidiary of the Netherlands-based PPF Group N.V., today confirmed that it has officially commenced operations in China. PPF Group N.V. has developed the group of "Home Credit" companies as its arm in consumer finance and retail banking in Central Europe, former CIS and Asia and has already achieved to occupy the leading positions in the Czech Republic, Slovakia, the Russian Federation, Belarus, Ukraine and Kazakhstan.In line with the development strategy to expand its operations into the CIS and Asia, Home Credit Group's entry into Southern China in the Guangdong Province will provide the Group with a vast market of more than 1.3 billion consumers.
Home Credit China's country headquarters is based in the business centric city of Shenzen south of Guangdong, where mainland China borders with Hong Kong. As part of its strategic development, Home Credit China has established a national network of seven guarantee companies across the country covering approximately 30% of the Chinese population.
Home Credit China's distribution strategy will be to focus on expanding the retailer's network in the Guangdong market for the consolidation of point-of-sales (‘POS') loans - typically small loans used by borrowers to purchase ‘white' goods from high street stores - with future plans to develop a multi-product line strategy targeting both credit card and non-card holding customers over the following five years. Home Credit China will also prepare for expansion across a further eight provinces in China by 2010.
Commenting on the new development into the Chinese market, Alexander Labak, Chief Executive Officer of Home Credit Group said: "Home Credit Group continuously evaluates development opportunities for its consumer finance activities and our strategy is to focus on those transitional economies that demonstrate high growth prospects. China represents such a market and our plans are to build a sizeable and profitable consumer finance business by serving the fast growing consumer finance needs of urban mass Chinese consumers."
Mark Thundercliffe, CEO of Home Credit Asia added: "Whilst today's announcement confirms the official launch of Home Credit China, we have been quietly building our infrastructure and establishing our POS lending activities in China over the last eighteen months. During this time we have established head office facilities for our credit factory operations in Shenzhen, recruited high quality managers as well as sign distribution agreements with key partners for the Guangdong province. Drawing on our parent group's expertise in customer database management, distribution capabilities, risk management and access to external funding, Home Credit China is well placed to capitalize on the substantial opportunities afforded in this market."
For more information, please contact:
Markéta Mühlhoferová
Head of Investor Relations
E-mail: marketa.muhlhoferova@homecredit.eu
tel: +420 224 559 174
Press Inquiries:
Milan Tománek
Group Communication Manager
E-mail: milan.tomanek@homecredit.eu
tel: +420 224 559 573
Andrew Waterworth / Ed Gascoigne-Pees
Financial Dynamics
Tel: (+44) 20 7831 3113
E-mail: andrew.waterworth@fd.com / ed.gascoigne-pees@fd.com
Notes for editors:
The Home Credit Group belongs to the PPF international group of companies which has interests in insurance and consumer finance, and provides complex asset management services. During its 16 years in business, PPF Group has become a leading international financial investor, managing assets of over USD 10 billion as at the end of 2006.
Companies of the Home Credit Group have been operating in the Central and Eastern European as well as Central Asian consumer finance markets and had granted loans in the combined principal of USD 2.7 billion as of 2006 year end. Home Credit Group maintains a leading position in the consumer finance markets of the Czech Republic (entered in 1997), the Slovak Republic (1999), the Russian Federation (2002) and the Republic of Kazakhstan (since December of 2005). Home Credit Group also entered the Ukrainian and Belarusian market in 2006.
Home Credit a.s. (Moody'sA3,cz) is one of the leading consumer finance providers in the Czech Republic. The company provides loans in the form of consumer loans, revolving loans and cash loans. In 2006, the company granted loans in the combined principal of CZK 7.1 billion.]
[Home Credit Slovakia a.s. (Moody's A3.sk) is one of the leading consumer finance providers in the Slovak Republic. The company provides loans in the form of consumer loans, revolving loans and cash loans. In 2006, the company granted loans in the combined principal of SK 3.3 billion.]
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12/27/2007
