20 days after the official announcement, the capital increase plan of Chongqing ant Consumer Finance Co., Ltd. (hereinafter referred to as “ant consumer finance”) changed.
From January 13 to 14, the original capital increasing party, China Cinda, announced to withdraw from the capital increase ant Xiaojin. Subsequently, Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) and Shunyu optical technology successively issued announcements to suspend the capital increase.
In this regard, ant Xiaojin official responded to the Chinese reporter of the securities company, saying that it respected the business decisions of investors. “Under the guidance of the regulatory authorities, ant Xiaojin will actively consult with all investors, continue to determine a new capital increase plan as soon as possible in accordance with the market-oriented principle, and ensure that the rectification of consumer credit business is in place.”
After trading on January 14, the share prices of the above three companies performed differently. China Cinda fell nearly 10%; Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) the whole day was red and closed up 4.11%; Shunyu optical technology opened low and went high. It once fell nearly 3.5% in the morning and turned red in the afternoon, up more than 1%.
China Cinda is one of the four AMCs and a central financial enterprise. Yufu capital also has a state-owned background. Therefore, as soon as the original capital increase plan was disclosed, the market generally interpreted that the strength of state-owned assets in ant consumer finance stocks was enhanced; The capital increase plan has changed. Insiders told reporters that the shareholders “focus on the main business”. This number of shareholders withdrew and suspended the capital increase, which means that ant Xiaojin will reassess relevant investment matters after updating the capital increase plan.
China Cinda withdrew and the two shareholders suspended
Ant consumer capital increased and changed, China Xinda, a central financial enterprise, withdrew, Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) and Shunyu optics also announced to suspend the subscription of ant consumer finance equity.
China Cinda was the first to make an announcement. On January 13, China Cinda, as one of the subscribers of ant Xiaojin capital increase, issued the announcement of “not participating in equity subscription”. The announcement said that after further commercial careful consideration and negotiation with the target company (i.e. Chongqing ant Consumer Finance Co., Ltd.), the company plans not to participate in this equity subscription, and the equity subscription agreement referred to in the announcement is not submitted to the general meeting of shareholders for deliberation. Not participating in equity subscription will not have a significant adverse impact on the operation and financial status of the company.
In the early morning of January 14, Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) issued the “announcement on suspending the capital increase and transaction progress of participating companies”. According to the announcement, Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) received the notice from the target company on January 13, 2022. One of the partners, China Cinda, decided not to participate in the capital increase, and the capital increase plan needs to be further adjusted. Therefore, Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) , the target company and other partners agreed to suspend the matters related to the capital increase. After the target company updates the capital increase plan, Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) will reassess the relevant investment matters.
On January 14, Shunyu optical technology also announced in Hong Kong stocks that it “suspended the subscription of 6% equity of the target company”. Shunyu optical technology said that the target company had issued a notice on January 13, 2022, informing the company that it decided to suspend the capital increase because several subscribers withdrew from the equity subscription agreement. The company will issue a separate announcement after the target company puts forward the revised capital increase plan and the company further evaluates the plan.
After China Cinda announced its abandonment of the purchase, ant consumer finance responded in an interview that “we respect the business decisions of investors. Ant consumer finance will actively consult with all investors under the guidance of regulatory authorities, continue to determine a new capital increase plan as soon as possible in accordance with the market-oriented principle, and ensure that the rectification of consumer credit business is in place.”
it’s only 20 days since ant Xiaojin’s capital and share increase plan was reached.
On December 24, 2021, according to the publicly disclosed information, ant Xiaojin plans to issue an additional registered capital of 22 billion yuan to all subscribers for capital increase. After the capital increase is completed, the registered capital will increase from 8 billion yuan to 30 billion yuan, far surpassing its peers and becoming the largest consumer finance company.
The subscribers of this capital increase are only two original shareholders of ant consumer finance, ant group and Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) respectively subscribed 11 billion yuan and 1097.8 million yuan of new registered capital; New shareholders include China Xinda, Shunyu optics, boguan technology and Yufu capital.
According to the plan, after the capital increase is completed, the shareholding proportion of ant group, the major shareholder of ant consumer gold, will remain unchanged at 50%; China Cinda became the second largest shareholder; The third largest shareholder is sunny optics, with a shareholding ratio of 6%; Other shareholders include Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) , boguan technology, Nanyang Commercial Bank, Cathay Pacific Shihua Bank (China), Yufu capital, Contemporary Amperex Technology Co.Limited(300750) , China Transinfo Technology Co.Ltd(002373) , and China Huarong, with shareholding ratios of 4.99%, 4.407%, 4.003%, 2.667%, 2.6%, 2.133%, 1.869% and 1.331% respectively.
Why did the 10 billion capital increase change?
according to the announcement information, the reason why China Cinda withdrew from ant Xiaojin’s equity subscription is that “after further commercial careful consideration.”
Jiangsu Yuyue Medical Equipment And Supply Co.Ltd(002223) and Shunyu optics have been suspended one after another because they received the notice from the target company ant Xiaojin. One of the original partners, China Cinda, withdrew, and the capital increase plan needs to be further adjusted. Therefore, all parties agreed to suspend the matters related to the capital increase. After ant Xiaojin updated the capital increase plan, they will reassess the relevant investment matters.
The chief financial technology analyst of a securities firm in North China told reporters that “ant’s capital increase will certainly be pushed out in the follow-up”. In his view, in the capital increase plan a few weeks ago, ants subscribed for 11 billion yuan, which showed their determination to support the consumer finance business. At that time, the old shareholders did not “support” the subscription, which also showed the cautious actions of some shareholders in the current financial regulatory environment.
For a long time, ant Xiaojin’s limited credit scale with a registered capital of 8 billion yuan has attracted much attention. He judged that capital increase is a necessary link for the rectification of relevant businesses. According to the previous rectification plan of ant group, ant Xiaojin will undertake the rectification of Huabai and borrow Bai brands within 6 months of opening. Now the time limit has expired. As of September 30, 2021, ant consumer had total assets of RMB 60.098 billion and net assets of RMB 7.475 billion.
In the original capital increase plan, China Cinda will become the second largest shareholder and subscribe for 20% equity of ant consumer finance in cash (RMB 6 billion). Together with the shares held by its subsidiary Nanyang Commercial Bank, China Cinda will hold 24.003% equity of ant consumer finance in the future, becoming the second largest shareholder.
It will also be the second AMC institution among ant consumer gold shareholders. The other is China Huarong, which currently holds 4.99%.
Therefore, Xinda’s failure to further subscribe for and increase its holdings in Chongqing ant consumer gold company is likely due to the requirements of focusing on the main business and investment concentration, “In recent years, the regulatory authorities have continued to guide the AMC industry (financial asset management companies and local AMCs) to \’return to its origin and focus on its main business\’, continuously improve its core capabilities such as non-performing asset disposal, and give better play to its role in financial risk prevention and resolution.
”A senior third-party observer believes that.
At the end of December 2021, China Huarong transferred the equity of Huarong Xiaojin to Bank Of Ningbo Co.Ltd(002142) . One major reason is that according to regulatory requirements, Huarong’s assets will return to the main business of non-performing assets disposal in 2021 and dispose of its licensed institutions and domestic subsidiaries as soon as possible, so as to fill the bad debts and reduce the consumption of the parent company’s net capital.
According to the data on the official website, China Cinda’s main business is in Hong Kong and China. Based on the main business of non-performing asset management, it focuses on problem asset investment and problem institution rescue, and focuses on resolving the risk of non-performing assets of financial institutions and entity enterprises. By the end of 2020, China Cinda had total assets of RMB 1518.084 billion (the same below), attributable to the shareholders’ equity of the company of RMB 172.109 billion, total income from continuing operations of RMB 100.134 billion and annual net profit of RMB 13.248 billion.
When the capital increase plan was disclosed at that time, China Cinda said that “under the background of the growth of consumer demand and the improvement of the regulatory system, the scale of the consumer finance industry continued to expand, and the application of financial technology enabled technology to drive financial innovation”. The directors of the company believe that “ant Xiaojin has investment value by virtue of financial technology empowerment and relying on business scenarios and customer traffic.”
The withdrawal of China Cinda and the suspension of capital increase by several shareholders mean that ant Xiaojin will reassess relevant investment matters after updating the capital increase plan.
The gold consumption license is overweight by the “head” city commercial bank
Some people go to the examination room at night, others resign and return to their hometown. Recently, urban commercial banks with strong scale and strength are overweight in the layout of licensed consumer finance companies.
On January 13, Bank Of Nanjing Co.Ltd(601009) the proposal to acquire the controlling interest of participating financial institutions approved by the board of directors unanimously showed that it meant Suning Consumer Finance Co., Ltd. (hereinafter referred to as “Suning consumer finance”).
By the end of June 2021, Bank Of Nanjing Co.Ltd(601009) consumer loans had a balance of 44.9 billion yuan and served nearly 22.5 million customers. At present, Bank Of Nanjing Co.Ltd(601009) holds 15% equity of Suning consumer finance and is the third largest shareholder.
Suning consumer finance was founded in May 2015 with a registered capital of 600 million yuan and headquartered in Nanjing. It is the first consumer finance company in China with Internet retail enterprises as the main sponsors. It is jointly invested and established by Suning.Com Co.Ltd(002024) , 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) with shareholding ratios of 49%, 16% and 16% respectively 15%、15%、5%。
On December 27, 2021, China Huarong and Bank Of Ningbo Co.Ltd(002142) also announced that through public listing and auction, China Huarong’s consumer finance company finally transferred 70% of its equity to Bank Of Ningbo Co.Ltd(002142) for RMB 1.091 billion.
In recent years, through a series of layout, Bank Of Beijing Co.Ltd(601169) , Bank Of Shanghai Co.Ltd(601229) , Bank Of Jiangsu Co.Ltd(600919) , Bank Of Ningbo Co.Ltd(002142) , Bank Of Nanjing Co.Ltd(601009) these urban commercial banks have won the consumer finance license. Up to now, according to the statistics of public information, the reporter has been approved to prepare for the establishment of 33 consumer finance companies, including 30, including more than 19 “banking” shareholder companies.
In the view of insiders, the consumer finance license has become a powerful tool for urban commercial banks to break the regional geographical space restrictions and extend their retail territory. “New customers of consumer finance companies expand rapidly, and new customers make a high contribution to the business scale. As an increasing incremental market, consumer finance is an effective supplement to the long tail customer base of bank consumer finance.” “On the other hand, under the situation of regulating the market, consumer finance \’licenses\’ with advantages in capital leverage and national exhibition industry are also favored by market subjects,” a person from huadongcheng commercial bank told reporters
