The clearing of the controlling shareholder of Dongzheng Finance (02718. HK), the “first share of auto finance” listed in Hong Kong, has ushered in the latest progress. The protagonist of the takeover is Saic Motor Corporation Limited(600104) , the largest auto group in China.
On May 19, Saic Motor Corporation Limited(600104) ( Saic Motor Corporation Limited(600104) ) announced that the company successfully bid for 71.04% of the shares of Shanghai Dongzheng Auto Finance Co., Ltd. through the judicial auction network platform of jd.com at the price of 1.607 billion yuan.
This means that Saic Motor Corporation Limited(600104) will become the largest shareholder of Dongzheng finance after successful bidding.
obtaining a license by improper means
Zhengtong automobile equity is ordered to be refunded
According to public information, Dongzheng finance was established on March 11, 2015. It is one of the 25 authorized auto finance companies in China, with a registered capital of 2.140 billion yuan and a legal representative of Lin fan. After its establishment, Dongzheng finance mainly provides auto financial services for luxury auto brands and other brands sold by its controlling shareholder China Zhengtong auto service Holding Co., Ltd. (hereinafter referred to as “Zhengtong Auto”).
Enterprise investigation information shows that Zhengtong automobile (01728. HK) is also a listed company in Hong Kong. Its main business is the distribution of luxury and ultra luxury automobile brands. The distribution brands include BMW, Land Rover, Volvo, Audi, Mercedes Benz and Porsche. By the end of 2020, the company has 125 business outlets in China.
In October 2020, the Shanghai regulatory bureau of the China Banking and Insurance Regulatory Commission issued an administrative ruling, which showed that Zhengtong automobile was wholesale and set up Dongzheng finance through improper means, which seriously violated the relevant provisions of the administrative license law of the people’s Republic of China, the banking supervision and administration law of the people’s Republic of China and the Interim Measures for the equity management of commercial banks. In addition, in April 2019, August 2019 and August 2020, when Dongzheng finance carried out some dealer loan business, the pre loan purpose investigation, fund payment management control and post loan management seriously violated the prudent operation rules.
In this regard, the Shanghai Banking and Insurance Regulatory Bureau ordered Dongzheng finance to rectify and issue a “ticket” of 2 million yuan. At the same time, the Shanghai Banking and insurance regulatory bureau also restricted the shareholders’ rights of Zhengtong automobile, the controlling shareholder of Dongzheng finance, and ordered it to return all its shares.
On April 16 this year, the Shanghai financial court issued an auction announcement on the judicial auction network platform of jd.com. The auction target is the equity of Dongzheng finance held by Zhengtong automobile, totaling 1.52 billion shares, accounting for 71.04% of the total shares. The starting price is 1.607 billion yuan, the deposit is 160 million yuan, and the price increase range is 5 million and its multiples. The auction time is from 10:00 on May 18 to 10:00 on May 19.
Now, with the takeover of Saic Motor Corporation Limited(600104) , the “drama” of equity retreat, which has attracted the attention of the auto finance industry, has finally come to an end.
winning becoming equity
Saic Motor Corporation Limited(600104) intends to expand auto finance business
According to the announcement disclosed by Saic Motor Corporation Limited(600104) disclosure, on May 19, the company successfully bid for 71.04% of the shares of Dongzheng finance at the starting price of 1.607 billion yuan.
Saic Motor Corporation Limited(600104) said in the announcement that the company’s acquisition of relevant shares of Dongzheng finance is conducive to the synergy between the two sides at the business level. As the largest automobile group in China, Saic Motor Corporation Limited(600104) can provide Dongzheng finance with a wide range of customer resources and help it achieve better development in the automobile financial market. Meanwhile, as one of the 25 authorized auto finance companies in China, the acquisition of Dongzheng finance will also help the development of Saic Motor Corporation Limited(600104) auto finance business and create value for all shareholders.
According to the annual report of Saic Motor Corporation Limited(600104) 2021, Saic Motor Corporation Limited(600104) has two companies engaged in auto finance business, namely, Shanghai Automotive Group Finance Co., Ltd. and SAIC General Motors Finance Co., Ltd. Among them, the operating revenue of the former in 2021 was 9.077 billion yuan and the net profit was 4.957 billion yuan; The latter had an operating revenue of 7.455 billion yuan and a net profit of 3.568 billion yuan in 2021.
Industry insiders said that at present, there are only 25 licensed auto finance companies, which are scarce resources. Dongzheng finance is the only listed auto finance company at present. After Saic Motor Corporation Limited(600104) acquires the shares of the company, it will be conducive to Saic Motor Corporation Limited(600104) ‘s auto finance business expansion.
