opened, Chongqing Ant Consumer Finance Co., Ltd. ushered in the first round of significant capital increase, with registered capital rising from 8 billion yuan to 30 billion yuan. China Cinda, one of the four major national asset management companies (AMCs), will invest 6 billion yuan to become the second largest shareholder.
htmlOn December 24, China Cinda (1359.HK) disclosed on the Hong Kong Stock Exchange that the company entered into an equity subscription agreement with Ant Consumer Finance, Ant Group, Yuyue Medical (002223.SZ), Sunny Optics (2382.HK), Guangzhou Boguan Information Technology Co., Ltd. (the ultimate actual controller is NetEase, 0999.HK), Yufu Capital and others. According to the agreement, Ant Consumer Finance issued an additional registered capital of RMB 22 billion to all capital-increasing subscribers. After the capital increase ofis completed, the registered capital of Ant Consumer Finance will increase from RMB 8 billion to RMB 30 billion, and China Cinda Group (China Cinda + Nanyang Commercial Bank ) will hold 24.003% of Ant Consumer Finance's shares.
Ant Consumer Finance, which is responsible for the brand rectification of Huabei and Jiebei , has made a large increase in capital, and the control of state-owned capital has been strengthened. After the rectification, Huabei has just announced its brand isolation and will become an exclusive consumer credit brand of Ant Consumer Finance.
Ant Consumer Finance increased its capital by 22 billion
China Cinda invested 6 billion
htmlOn November 24, China Cinda Asset Management Co., Ltd. (1359.HK) issued an announcement stating that, as one of the capital increase subscribers, the company entered into an equity subscription agreement with Chongqing Ant Consumer Finance Co., Ltd. (hereinafter referred to as Ant Consumer Finance), other capital increase subscribers and other existing shareholders.According to the equity subscription agreement, Ant Consumer Finance issued an additional registered capital of RMB 22 billion to all capital-increasing subscribers. Among them, China Cinda will invest RMB 6 billion to subscribe to 20.000% of Ant Consumer Finance's shares in cash.
has a total of 6 companies participating in this capital increase and expansion. In addition to China Cinda, it also includes Ant Consumer Finance's controlling shareholder Ant Group (invested 11 billion yuan, accounting for 50% of the shares after the subscription is completed, the same as before the Ant Consumer Finance capital increase), Yuyue Medical (invested 1.0978 billion yuan, accounting for 4.99% of the shares after the subscription, the same as before the Ant Consumer Finance capital increase.), Sunny Optics subscribed 1.8 billion yuan, holding 6% of the shares after the subscription; Boguan Technology subscribed 1.322 billion yuan, holding 4.41% of the shares after the subscription; Yufu Capital subscribed 780 million yuan, holding 2.6% of the shares after the subscription.
Except for Ant Group and Yuyue Medical, the other four companies are new shareholders. After
completes the capital increase, the registered capital of Ant Consumer Finance will increase from 8 billion yuan to 30 billion yuan. With the new round of capital increase and share expansion, the shareholder shareholding ratio of Ant Consumer Finance has changed. The shareholding ratio of Ant Group remains unchanged, still at 50%. China Cinda's subsidiary will hold 24.003% of Ant Consumer Finance's shares, making it the second largest shareholder, and Sunny Optics is the third largest shareholder, holding 6% of the shares. The remaining shareholders hold less than 5%.
Regarding participating in this capital increase, China Cinda said that against the backdrop of growing consumer demand and an increasingly perfect regulatory system, the scale of the consumer finance industry continues to expand, and the use of financial technology has enabled technology to drive financial innovation. The director believes that the target company has investment value by relying on financial technology empowerment, relying on business scenarios and customer traffic. "By participating in capital increase, the company can establish close cooperative relationships with the industry's most leading consumer finance service providers, and learn from customers' sharing, financial technology, and financial industry chain services, and make up for each other's strengths and weaknesses, and win-win results."
According to the Economic Observer, "capital increase will enhance Ant Consumer Finance's lending capabilities and expand the scale of consumer business." Zhang Gang, chief analyst of Southwest Securities , said that Ant Group has made a large-scale subscription, demonstrating its determination to support consumer finance business.
China Cinda also disclosed that since its opening, as of the end of September, Ant Consumer Finance has achieved operating income of 291 million yuan, but its net profit loss was 525 million yuan, total assets were 60.098 billion yuan, and net assets were 7.475 billion yuan.
According to public information, China Cinda was established in April 1999. It is a company mainly engaged in the provision of financial services and the operation of non-performing assets. As of June 30, 2021, China Cinda held 58.00% of the shares of Ministry of Finance of the People's Republic of China, and 7.6% of the shares of the National Social Security Fund Council of the People's Republic of China.The company and its subsidiaries operate through three major branches. The financial service department is mainly engaged in providing financial services such as banking, securities, insurance, financial leasing and asset management; the non-performing asset management department is mainly engaged in managing assets and debt-to-equity assets generated by the acquisition of non-performing debt and providing liquidation and trusteeship services; the investment and asset management department is engaged in the financial investment management of private equity fund and other specific industries and enterprises.
Sunyu Optical was established in 1984. It is a subsidiary of Sunyu Optical Technology (Group) Co., Ltd. (Sunyu Optical, 02382.HK). Its main business is the design, research and development, production and sales of optical and optical related products.
Boguan Technology was founded in 2003. Its main business is game software design and production. As of the date of the announcement, the ultimate beneficial controller of Boguan Technology is Net Ease. Inc (NetEase, 09999.HK; NASDAQ: NTES).
Yufu Capital was established in 2004. Its main business is the acquisition of assets within the scope of authorized by the municipal government, disposal and related industrial investment, investment consulting, financial consulting, enterprises and asset custody , etc. As of the date of the announcement, the ultimate beneficial controller of Yufu Capital is the Chongqing State-owned Assets Supervision and Administration Commission.
Huabei is an exclusive consumer credit brand for Ant Consumer Finance
Ant Consumer Finance was established on June 4, 2021 with a registered capital of 8 billion yuan. It was jointly established by Ant Group (invested 4 billion yuan, holding 50% of the shares), Nanyang Commercial Bank (invested 15.01% of the shares), Cathay World Bank (invested 10% of the shares), CATL (300750.SZ, holding 8% of the shares), Qianfang Technology (002373.SZ, holding 7.01% of the shares), China Huarong (02799.HK, holding 4.99% of the shares), and Yuyue Medical (002223.SZ, holding 4.99% of the shares), that is, the first round of capital increase in Nanyang Commercial Bank, Cathay World Bank, CATL, Qianfang Technology, and China Huarong did not participate.
In June this year, Ant Consumer Finance was approved to open. The newly opened Ant Consumer Finance is chaired by Huang Hao and Chen Huaisheng as the general manager, the president of Ant Group’s Digital Finance Business Group.
Picture source: Visual China
Relevant person in charge of the non-bank department of the China Banking and Insurance Regulatory Commission said that after Ant Consumer Finance opens, it will orderly undertake consumer credit business in the two micro-loan companies that meet regulatory regulations in accordance with the rectification plan for Ant Group’s consumer credit business. During the one-year transition period since the opening of Ant Consumer Finance, the two micro-loan companies achieved stable and orderly market exits.
The two micro-loan companies mainly refer to the two main companies that operate Huabei and Jiebei, Chongqing Ant Small Micro Small Loan Co., Ltd. and Chongqing Ant Shangcheng Small Loan Co., Ltd. According to the prospectus book previously disclosed by Ant Group, the total consumer credit balance, mainly Huabei and Jiebei, is 1.73 trillion yuan.
Relevant person in charge of the non-bank department of the China Banking and Insurance Regulatory Commission said that according to the rectification plan, Ant Group should complete the brand rectification work of "Huabei" and "Jiebei" within 6 months of Ant Consumer Finance's opening. After the rectification is completed, "Huabei" and "Jiebei" will become the exclusive consumer credit products of Ant Consumer Finance. Consumer credit issued by other financial institutions with the help of data provided by Ant Group will no longer be marked with the names "Huabei" and "Jiebei".
Previously, consumer loan businesses such as Jiebei and Huabei were jointly invested by Ant Group and financial institutions, and financial institutions accounted for the vast majority. After the rectification, it also means that the brand loan business of Jiebei and Huabei will be completely funded by Ant Consumer Finance.
htmlOn November 24, Huabei released an announcement showing that in order to implement the regulatory requirements related to consumer credit and to more fully protect consumer rights, Huabei has started brand isolation work. Next, Huabei will become an exclusive consumer credit brand of Ant Consumer Finance and will focus on small and medium-sized amounts.Consumer credit, which is fully funded by banks and other financial institutions, will be updated to a "credit purchase" type service. The "credit purchase" service is consistent with the interest-free period of Huabei, and can only be used for consumption and cannot be withdrawn.After the
brand is isolated, Huabei and "credit purchase" services will remain consistent in core experiences such as interest-free period, account checking, and repayment, and the rates of "credit purchase" services will remain stable; in the future, the rates of "credit purchase" services will be independently approved and determined by financial institutions, and will also follow the principle of inclusiveness and benefit users as much as possible.
Editing| Cheng Peng Du Hengfeng Wang Jiaqi
Proofreading| paragraph practice
cover picture source: Visual China
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