On March 14, the issuance document of “Ruize 2022 phase I personal automobile mortgage asset-backed securities” was released. Chery Huiyin Auto Finance Co., Ltd. (hereinafter referred to as “Chery finance”) plans to issue about 3.999 billion vehicles to offset ABS financing, with subordinated property accounting for 19.98%. Up to now, Chery finance has issued 53 billion ABS.
Chery finance, initiated by Chery Automobile and Huishang bank, was approved to open the next year in June 2008. Chery Automobile and Chery holdings currently hold 49% and 31% respectively, and Huishang bank holds 20%.
Chery finance involves retail loan business and dealer loan business, and retail loan is currently its main source of income. In the first half of 2021, Chery Finance issued 187600 retail loans, with a total loan amount of 14.665 billion yuan, 60000 loans for non Chery brand new car business and 100000 loans for second-hand cars. By the end of the year, the balance of retail loans was 29.93 billion yuan, accounting for 59.2% of the total.
From the details of assets entering the pool, the mortgage vehicle brands of Chery financial retail business include Dongfeng Automobile Co.Ltd(600006) , Beiqi Foton Motor Co.Ltd(600166) , Sinotruk Jinan Truck Co.Ltd(000951) , Faw Jiefang Group Co.Ltd(000800) , Jiangling Motors Corporation Ltd(000550) , etc. Among them, Dongfeng Automobile Co.Ltd(600006) Finance Co., Ltd. owned by Dongfeng Automobile Co.Ltd(600006) is engaged in auto finance business.
It is disclosed that by the end of June 2021, Chery had total financial assets of 32.634 billion yuan, liabilities of 25.388 billion yuan, loans and advances of 29.846 billion yuan, non-performing loan ratio of 0.72% and net profit of 396 million yuan in the first half of the year. The chart shown shows that the total profit during the reporting period was 593 million yuan.
On March 15, on the black cat complaint platform, Chery financial loan users complained with their real names attached with their identity information. Due to the epidemic in the border mountainous area in January 2020, they were unable to go down the mountain for payment due to the epidemic prevention policy, resulting in overdue payment, which currently affects the application for housing loan. The complaint request is to cancel the credit investigation.
According to the credit investigation records provided by the parties concerned, there are records within 30 days overdue, and the loan has been settled in November 2021.
The user also attached a certificate issued by the local government on March 1. The certificate mentioned that in the four time periods from December 5, 2019 to January 23, 2020 and from May 25, 2020 to September 30, 2020, due to the epidemic, the personnel in the border area were under strict control and could not go down the mountain at any time.
According to the complaint information, Chery customer service told him that the epidemic was not serious at that time, so the request was not accepted.
Chery financial submitted the form to the Hong Kong Stock Exchange in 2015, and the application expired six months later. In May 2017, Chery finance publicized the prospectus submitted to the CSRC. Up to now, Chery financial has only pre disclosed the prospectus and has made no other progress.
On March 4, 2022, Chery finance signed a cooperation framework agreement with Jiangbei industrial concentration zone in Anhui Province. According to the news released by the industrial park, Liu Yang, member of the Standing Committee of the Party committee of Chery holdings, executive deputy general manager and chairman of Chery finance, said at the signing ceremony that Chery Huiyin plans to start the listing plan in 2022. Liu Yang was replaced in 2021, and the former chairman was Zhou Biren.
Chery group, the parent company, has sought to be listed since 2008. It submitted an application for A-share listing in 2010. After that, it was revealed that it had an accelerated listing plan in 2020, and has been running with it so far. Chery new energy had the opportunity to backdoor Zhejiang Wanliyang Co.Ltd(002434) ( Zhejiang Wanliyang Co.Ltd(002434) ) to go public, but it didn’t go. In February, Luxshare Precision Industry Co.Ltd(002475) ( Luxshare Precision Industry Co.Ltd(002475) ), a listed company of “fruit chain”, planned to acquire the equity of many companies of “Chery series” with RMB 10.054 billion, and the adjustment of shareholders may have an impact on the listing process.
Unlike most auto financial institutions, Chery Huiyin finance has banking shareholders. Huishang bank has a net profit of 9.461 billion yuan in the first three quarters of 2021. Its shareholding financial institutions include Chery finance, Huiyin Financial Leasing Co., Ltd., Jinzhai Huiyin Village Bank Co., Ltd. and Wuwei Huiyin Village Bank Co., Ltd. At the end of 2021, Huiyin financial leasing received a penalty of 2.1 million yuan for evading the management of related party transactions and providing financing to shareholders. Soon after, Huishang bank was fined for illegal inflow of credit funds into the real estate market.
In June 2021, Chery finance was fined 200000 yuan for failing to fulfill its duties in the “three inspections” of the dealer’s vehicle purchase loan, and the person in charge at that time was warned. Three checks usually refer to pre loan investigation, loan review and post loan inspection.
Chery finance was involved in a number of disputes. According to the judgment dispute, when Chery finance sued overdue loan users, the court verified in the second instance that the user recruitment and ID card recruitment at the contract signing site retained by Chery finance were obviously different from Chery finance. In addition, Chery finance has also been affected by criminal cases such as loan fraud. According to tianyancha data, Chery finance was once listed as the executee. China executive information disclosure network shows that at present, there is no record of Chery finance being executed.
