Original title: Ant Consumer Finance has not yet opened, and existing shareholders plan to sell shares
Source: Consumer Finance Channel
author: Gedong
As a state-owned asset management company, China Huarong had vigorously deployed its consumer finance business. Now its business has not improved, but it has to leave the market early.
Ant Consumer Finance has not yet opened, and some shareholders have variables. After China Huarong intends to transfer its controlling stake in Huarong Consumer Finance, market news has revealed that Huarong will also transfer its 4.99% stake in Ant Consumer Finance.
According to Bloomberg News, people familiar with the matter saidAnt GroupPerhaps it will acquire the shares of Ant Consumer Finance held by Huarong. After the acquisition is completed, Ant Group will coordinate other shareholders to carry out a capital increase plan for Ant Consumer Finance.
Huarong originally wanted to use Ant Consumer Finance to continue to develop its consumer finance business, but was unable to withdraw from the non-core business by regulatory requirements, and finally had to reluctantly remove its consumer finance license. Even if it is not affected by regulation, it is not easy for Huarong to break through in the consumer finance sector. On the one hand, Huarong’s genes may not be suitable for the consumer finance business model; on the other hand, ant consumer finance suddenly encountered rectification, and Huarong did not catch up with a good time.
Sell shares
Ant Consumer Finance was approved to be established in September 2020, with a registered capital of 8 billion yuan. Coupled with the consumer finance scenario, traffic and experience advantages of Ant Group, Ant Consumer Finance is expected to become a domestic consumer finance giant.
In the equity structure of Ant Consumer Finance, Ant Technology Group Co., Ltd. invested RMB 4 billion, accounting for 50% of the company’s registered capital, and is the largest shareholder.Huarong contributed RMB 399.2 million, accounting for 4.99% of the company’s registered capital, andDiving MedicalTied as the smallest shareholder.
Although its shareholding ratio is relatively low, Ant Consumer Finance has a relatively large volume and its future performance is expected, which will surely bring Huarong a lot of benefits. At the moment Ant Consumer Finance has not yet opened, Huarong is facing regulatory pressure and will cut off this big piece of meat. However, this may be a good thing for Ant Group. If it can be successfully acquired, Ant Group’s control over Ant Consumer Finance will also increase.
In addition to withdrawing from Ant Consumer Finance, China Huarong also issued an announcement stating that it plans to implement the equity transfer project of Huarong Consumer Finance. The equity transfer of Huarong Consumer Finance intends to adopt an open method to transfer the company’s shares of Huarong Consumer Finance (a total of 630 million shares, 70% of the equity) in a legally established property rights transaction agency at or above the provincial level (including the provincial level). The initial listing price shall not be lower than the asset evaluation result filed by the Ministry of Finance.
Huarong Consumer Finance is a consumer finance project that Huarong focuses on, but it has been on the verge of loss since its opening. Its bleak performance and humble industry status determine its value may be greatly reduced. The transfer price of the consumer finance license is based on the net assets and fundamentals of the company’s business. Huarong’s consumer finance business is flat, and there may be little room for equity premiums.
The controversy over Huarong’s consumer finance business can be seen from Huarong’s consumer finance. Huarong Consumer Finance’s self-operated business is mediocre, mainly relying on loan assistance, and the scene relies on loan assistance platforms and Internet traffic platforms.
In the loan assistance business, Huarong Consumer Finance has been criticized so far. The year before last, Huarong Consumer Finance and Aiyoumi, an instalment platform under the Aicai Group, were involved in a cooperation dispute, which led to the two-way repayment of borrowers, and some borrowers were mistakenly registered for credit.
Huarong Consumer Finance said that due to Aiyoumi’s unilateral reasons, it has withdrawn the authorization of Aiyoumi and its related parties to withhold loan repayment funds from borrowers. Huarong Consumer Finance, as the loan creditor, will directly charge the borrower The loan repayment funds are deducted and repaid.
But Aiyoumi responded that it still maintains a cooperative relationship with Huarong Consumer Finance and has not been notified by the other party to stop withholding authorization. Users still have to repay through Aiyoumi. If the platform is overdue, it will continue to be collected.
At present, many borrowers still revealed to the Consumer Finance Channel that after Huarong Consumer Finance had repaid, because Huarong Consumer Finance did not synchronize the data to Aiyoumi, it caused Aiyoumi to collect and harass. There are also some users who have successfully repaid on Aiyoumi, but Huarong Consumer Finance does not approve it.
Ant’s thighs are not easy to hold
Huarong’s consumer finance ambitions are largely based on the ant ecology. Huarong Consumer Finance’s loan assistance business relies more on loans under the Ant Group. The loan business of Huarong Consumer Finance and Ant Boring Co., Ltd. will be officially put into operation in July 2019. In addition, Huarong Consumer Finance has previously cooperated with JD Finance, Weiwei Loan and other products to develop joint loans.
In August last year, China Huarong disclosed some operating data of its subsidiary Huarong Consumer Finance. Huarong Consumer Finance has issued a total of more than 100 billion yuan in loans, served more than 9.26 million customers, and issued more than 32.18 million loans. The average transaction amount is 3135 yuan.
China Huarong said that since 2019, Huarong Consumer Finance has actively explored new paths for business transformation, especially since the outbreak of the epidemic in 2020, Huarong Consumer Finance has accelerated its digital transformation, comprehensively deployed online products, and successfully launched “Ant Borrowing Phase II”. Wait for new products. As of the end of June 2020, the online business balance increased by 2.635 billion yuan from the beginning of the year. To list the borrowing items separately, it is enough to show that Huarong Consumer Finance relies on ants.
However, Ant Group is caught in a rectification storm, which may also make Huarong’s consumer finance business encounter a certain degree of uncertainty. Among the businesses that Ant has rectified, the micro-credit technology business is the top priority, especially the consumer loan business that uses Huabei and Bibai as the carrier.
As of the first half of 2020, the scale of Ant Group’s consumer loans is more than 1.7 trillion yuan. The leverage of this part of the business is too high, the transaction is complicated, and the supervision is difficult to penetrate. In accordance with regulatory requirements, this part of the business must be deleveraged and brought into supervision.
Until the establishment of Ant Consumer Finance, Huabei and Bianbai were integrated into the supervision of the main body. Huarong could have used the license of Ant Consumer Finance to continue to use Ant’s thighs to develop consumer finance business, but its own business rectification has allowed all of this. Fu Zhidongliu.
According to regulatory requirements, Ant Group should complete the brand rectification work of “Huabei” and “Bibai” within 6 months of the opening of Ant Consumer Finance. After the rectification, “HuaBai” and “BaiBai” will become the exclusive consumer credit products of Ant Consumer Finance Company. The consumer credit issued by other financial institutions with the help of the data provided by Ant Group will no longer be marked with “HuaBai” and “BaiBai”. “name. This is tantamount to saying that if Huarong does not withdraw from the shareholder sequence of Ant Consumer Finance, it will be able to enjoy the profits brought by Huabei and borrowing.
Huarong’s lack of improvement in consumer finance may be due to its own genetic problems. At the beginning of the establishment of Huarong Consumer Finance, China Huarong had declared that Huarong Consumer Finance would highlight the “four major genes” of Huarong Gene, Internet Gene, Innovation Gene, and Inclusive Gene, and strive to create consumer finance that conforms to the concept of inclusive finance. product. In fact, the Internet genes of Huarong Consumer Finance also rely on blood transfusions from foreign products such as chanting, and its own genetic advantages are not obvious.
In addition, industry insiders speculate that most of the former executives of Huarong Consumer Finance came from Huarong Xiangjiang Bank, who were in charge of corporate business, while consumer finance focused on a small, dispersed and more sinking customer base, which was obviously in line with Huarong’s Genetic mismatch.
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Editor in charge: Chen Jiahui
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