Source | Laser Finance Author | Huang Laoxie
Recently, the senior management team of Beiyin Consumer Gold and Immediate Consumer Gold ushered in changes.
On September 7, the Beijing Banking and Insurance Regulatory Bureau approved Cao Ying's qualification to serve as deputy general manager of Beijing Bank of China Consumer Finance. On the same day, the Chongqing Banking and Insurance Regulatory Bureau approved Guo Jianni's qualifications as general manager of Immediate Consumer Finance.
▲Source: Official website of China Banking Regulatory Commission
The changes in personnel at the general manager level mean that many licensed consumer finance organizations have adjusted their strategies and personnel structures to achieve performance growth.
The direct reason is that, on the one hand, in the context of interest rate tightening, after deducting capital costs, operating costs, and bad debt costs, the consumer finance industry is facing an unprofitable situation, and business models and senior management changes are imperative;
On the other hand, in the post-epidemic era, online transformation has become a common choice for consumer finance agencies to develop new businesses and enhance their competitiveness. Especially for the early but underdeveloped consumer finance organizations such as Beijing Bank of China Consumer Finance, replacing members of the senior management team and strengthening the digital layout are the key to overtaking by the “lagging behind”.
Laser Finance noted that the Bank of China, established in March 2010, was the first group of consumer gold companies along with Bank of China, Sichuan Jincheng and Home Credit. Despite being a representative of the industry’s pioneering trials and having a shareholder team represented by Bank of Beijing (601169), Beijing Bank of China Consumer Finance failed to convert this advantage into performance.
▲The picture shows the proportion of shares held by shareholders of Beijing Bank of China Consumer Finance
According to an enterprise search, Beiyin Consumer Finance is a typical banking consumer finance company. Bank of Beijing, which holds 35.29% of its shares, is the largest shareholder. This means that Beiyin Consumer Finance can use its shareholders in terms of capital, customers, and risk control. The advantage of the company covers a wider range of sub-optimal groups and complements the resources of Bank of Beijing at the retail end.
At the same time, the shareholders of Beiyin Consumer Gold also include Lishi Group (holding 15% of shares) engaged in household goods, commercial chains, and commercial real estate, and Wanda Group (holding 5% of shares) engaged in commercial real estate, high-end hotels, cultural tourism and chain department stores ), Liandong Investment (5% shareholding), which is engaged in investment and operation of industrial parks, and China Dongshi Industrial (5%), which focuses on coal production, circular economy and organic food.
From the perspective of the luxurious shareholder lineup, Beijing Bank of China Consumer Finance can get help from diversified scenarios, quickly cut into real consumption scenarios, and establish a leading scale advantage. However, since its establishment, the performance of Beiyin Consumer Finance has not been stable. There have been losses within two years of its establishment, as well as continued profitability from 2013 to 2015, and the highlight of 2015-net profit of 40 million yuan and total assets of 21.42 billion yuan.
Since then, the performance of Beiyin Consumer Gold began to fall behind, with a loss of 1.394 billion yuan in 2016 and a loss of 79 million yuan in 2017. In 2018, it turned into a profit with a net profit of 35 million yuan, but total assets fell to 3.955 billion yuan, and a net profit of 41 million yuan in 2019 Yuan, ranking bottom in the industry.
Even in the first half of 2020, Beiyin Consumer Gold did not announce its revenue, but the overall performance represented by net profit and total assets declined, and it ranked at the bottom of the industry.
Public information shows that in the first half of 2020, the net profit of Beiyin Consumer Gold was 13 million yuan, down 60% year-on-year, which was only higher than Suning Consumer Gold (10 million yuan), Hubei Consumer Gold (4 billion yuan), and Huarong Consumer Gold (-80 million yuan), Xiaomi Xiaojin (-90 million yuan); total assets of 7.07 billion, only higher than Shengyin Xiaojin (4.179 billion yuan), Suning Xiaojin (3.851 billion yuan).
Regarding the performance situation, Beiyin Consumer Finance responded to the outside world. In the early stage of development, there were no cases to find and no experience to learn from. "Continuously trying and exploring in the new consumer finance field has experienced challenges and tests." But compared with Home Credit Consumer Finance, which was established at the same time, this reason does not hold. As the first company in the industry with total assets of more than 100 billion yuan, Home Credit Consumer Finance last year had a revenue of 17.038 billion yuan and a net profit of 1.14 billion yuan, 27.14 times that of Beiyin Consumer Gold, and total assets of 104.536 billion yuan. 16.41 times that of gold.
In contrast, Immediately Consumer Gold, which was established in 2015, does not have the first-mover advantage of Beiyin Consumer Gold, but it has achieved “latecomers first” in terms of performance.
According to an enterprise search, the largest shareholder of Immediate Finance is Chongqing Department Store (600729), which owns the three major brands of Chongbai, New Century Department Store, and Shangshe Electrical Appliances, involved in department stores, supermarkets, electrical appliances and other business areas; Zhongguancun, the second largest shareholder Kojin operates an e-commerce platform-Gofan Mall; shopping malls under Wumart Technology, the third largest shareholder, are concentrated in North China, East China, and Northwest China; Chongqing Bank (01963.HK), the fourth largest shareholder, is a typical city commercial bank and will soon Became the first city commercial bank in western China to list "A+H" shares.
▲The picture shows the shareholding ratio of Immediately Consumers' shareholders
"Strike iron still needs its own hard work." Although it started five years later than Beiyin's consumer gold, its consumer gold performance was immediately gratifying. In 2019, its net profit was 853 million yuan, ranking fourth in the industry; revenue 8.99 billion yuan, ranking third in the industry; The total assets are 54.815 billion yuan, ranking third in the industry.
In June of this year, Xiaojin immediately showed its 5th anniversary transcript: registered users have exceeded 100 million, cumulative consumer loans have exceeded 400 billion yuan, cumulatively created more than 2,000 jobs, cumulative tax payment of 2.503 billion yuan, and 220 patent applications. It has independently developed more than 800 core systems, more than 200 cooperative financial institutions, and more than 1 million cooperative merchants.
It can be seen that the time of establishment cannot be a decisive factor for the development of consumer institutions. In a period of industry transformation, one can't stand loneliness to polish financial technology capabilities. Even the first movers will fall behind, and the latecomers will be able to take the lead. This is reflected in the Jinshang Consumer Finance established in 2016 and Hebei Happy Consumer Finance established in 2017.
From the perspective of development performance, Jinshang Consumer Finance's revenue in the first half of this year was 308 million yuan, a year-on-year increase of 38.12%; net profit was 36 million yuan, a year-on-year increase of 9.1%. In June of this year, Shanxi Merchants and Consumers were caught in a staging storm in the "beautiful house" rental scenario, which raised questions about their risk control capabilities.
According to the Sino-Singapore Jingwei client report, as many as 400 tenants were affected by similar operations, such as credit investigations. Most tenants reported that they were also shirked by the Meiliwu Company and Shanxi Merchants, which led to the failure of credit investigations. solve.
Hebei Fortune Consumers, which has not announced the results of the first half of this year, has just turned losses into profits in 2019, with a net profit of 50 million yuan, which is lower than Jinshang Consumers’s 52 million yuan, ranking low in the industry.
Laser Finance believes that in the context of the tightening of borrowing interest rates, whoever has the ability to innovate in technology will have the leading power in development and ride the waves on the shoulders of financial technology.
After all, a low enough borrowing interest rate ceiling also means low enough profit margins. Facing the heavy costs of capital, data, traffic, collection, etc., who can use accurate and high-quality risk control capabilities to target customers with more stable income, relatively strong debt solvency, and relatively low pricing, who can seize the next The commanding heights of a wave of consumer finance.