Bank Of Nanjing Co.Ltd(601009) acquisition of the controlling interest of Suning Consumer Finance Co., Ltd. (hereinafter referred to as “Suning Xiaojin”) has made new progress.
On March 7, Bank Of Nanjing Co.Ltd(601009) announced that according to the bank’s strategic planning and high-quality development requirements, it plans to acquire a total of 41% equity held by other shareholders of Suning Xiaojin through agreement transfer in the near future, so as to obtain the controlling stake of Suning Xiaojin.
After the completion of this acquisition, Bank Of Nanjing Co.Ltd(601009) holds 56% of Suning Xiaojin’s equity from 15%, with a total investment amount of 38786 million yuan. The acquisition still needs to be approved by the regulatory authority.
388 million yuan to win the controlling equity of Suning financial products
It is understood that on March 4, Bank Of Nanjing Co.Ltd(601009) signed the equity transfer agreement with BNP Paribas and Suning.Com Co.Ltd(002024) (hereinafter referred to as ” Suning.Com Co.Ltd(002024) group”). The object of equity transfer is the 39% equity of Suning Xiaojin held by Suning.Com Co.Ltd(002024) group and all rights and interests attached thereto. Among them, Bank Of Nanjing Co.Ltd(601009) paid 3405.6 million yuan and transferred 36% equity of Suning Xiaojin held by Suning.Com Co.Ltd(002024) group; BNP Paribas paid 28.38 million yuan to acquire the 3% equity of Suning Xiaojin held by Suning.Com Co.Ltd(002024) group.
On the same day, Bank Of Nanjing Co.Ltd(601009) also signed the equity transfer agreement with Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) (hereinafter referred to as ” Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) “). The subject matter of equity transfer is the 5% equity of Suning Xiaojin held by Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) and all rights and interests attached thereto. The purchase price of the subject equity is 47.3 million yuan.
The reporter noted that BNP Paribas, which participated in the acquisition, is the largest shareholder of Bank Of Nanjing Co.Ltd(601009) .
Public information shows that Suning Xiaojin, founded in May 2015, is a non bank financial institution jointly funded by Suning.Com Co.Ltd(002024) group, Xiansheng zaikang Jiangsu Pharmaceutical Co., Ltd. Bank Of Nanjing Co.Ltd(601009) , BNP Paribas personal finance group and Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) five enterprises. With an initial registered capital of 300 million yuan, the company increased its capital by 300 million yuan in October 2016 and a registered capital of 600 million yuan. Headquartered in Nanjing, the company is a consumer finance company mainly sponsored by Internet retail enterprises.
After the acquisition, the shareholding structure of Suning Xiaojin will be changed to: Bank Of Nanjing Co.Ltd(601009) shareholding ratio will be increased from 15% to 56%, becoming the largest shareholder; BNP Paribas increased its shareholding from 15% to 18%; The shareholding ratio of Xiansheng zaikang Jiangsu Pharmaceutical Co., Ltd. is 16%, which remains unchanged Suning.Com Co.Ltd(002024) the shareholding ratio of the group decreased from 49% to 10% Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) quit and no longer hold Suning Xiaojin shares.
The above announcement also disclosed the comparison between Suning Xiaojin and Bank Of Nanjing Co.Ltd(601009) some financial data. As of June 30, 2021, Suning Xiaojin had total assets of 1.115 billion yuan, accounting for 0.07% of Bank Of Nanjing Co.Ltd(601009) total assets; Shareholders’ equity is 537 million yuan, accounting for 0.47% of Bank Of Nanjing Co.Ltd(601009) shareholders’ equity; From January to June 2021, Suning Xiaojin’s operating revenue accounted for 0.52% of the bank’s operating revenue and its net profit accounted for – 0.40%.
Bank Of Nanjing Co.Ltd(601009) said that the acquisition had little impact on the bank’s operating conditions and would not have a significant impact on the bank’s operating results. This acquisition does not constitute a matter of horizontal competition or a new connected transaction.
The bank also said that after the completion of this acquisition, Bank Of Nanjing Co.Ltd(601009) will establish a long-term business cooperation relationship with Suning.Com Co.Ltd(002024) in the field of consumer finance business, and rely on the holding consumer finance company to cooperate with Suning.Com Co.Ltd(002024) in consumer finance business.
Toutou city commercial banks have taken shares in Xiaojin company
With the promotion of large retail strategy, Bank Of Nanjing Co.Ltd(601009) has made continuous efforts in the field of consumer finance business in recent years. As early as 2007, the bank and cetelem, a wholly-owned subsidiary of its strategic partner, jointly established the retail consumer credit center, which is the earliest predecessor of Bank Of Nanjing Co.Ltd(601009) consumer finance center (CFC). Since then, the strategic position of the bank’s consumer finance business has become increasingly prominent and the development model has become increasingly clear.
By the end of June 2021, Bank Of Nanjing Co.Ltd(601009) consumer finance center had a consumer loan balance of 44.9 billion yuan, added 1.54 million customers, served nearly 22.5 million customers in total, and the non-performing loan rate on the balance sheet was 1.22%.
In addition, according to the bank’s 2021 semi annual report, by the end of June 2021, Bank Of Nanjing Co.Ltd(601009) consumer loans had a balance of 109404 billion yuan, accounting for 47.90% of the balance of personal loans, an increase of 0.41 percentage points over the end of the previous year.
It is pointed out that the feasibility study will help the industry to break through the growth limit of the non local market. Limited by the expansion of regional banks in different places, Bank Of Nanjing Co.Ltd(601009) has not set up a new branch outside the province since 2010. By holding Suning consumer finance and replenishing Bank Of Nanjing Co.Ltd(601009) consumer finance license, consumer finance business is expected to increase rapidly and form a new profit growth pole.
The reporter noted that in recent years, the head city commercial bank has actively arranged the gold consumption license. At the end of 2021, Bank Of Ningbo Co.Ltd(002142) announced that it would take 70% of the equity of Huarong consumer finance at the transfer price of 1.091 billion yuan and become its controlling shareholder. In addition, Bank Of Beijing Co.Ltd(601169) , Bank Of Shanghai Co.Ltd(601229) , Bank Of Jiangsu Co.Ltd(600919) , and Bank Of Jiangsu Co.Ltd(600919) also take shares in consumer finance companies. According to qixinbao, Bank Of Beijing Co.Ltd(601169) holds 37.5% of the equity of Bank of China Consumer Finance and is its largest shareholder Bank Of Shanghai Co.Ltd(601229) holds 38% equity of Shanghai Shangcheng consumer finance Bank Of Jiangsu Co.Ltd(600919) holds 50.1% equity of Suyin Kaiji consumer finance.
