Author | Tang Guoguo Source | Technology Finance Online
Affected by the domestic epidemic in the first half of the year, the performance of Yixin Group (02858.HK), the “first auto finance stock”, suffered a heavy blow.
On August 24, Yixin Group released its 2020 interim results report. According to the report, the company achieved revenue of approximately 1.624 billion yuan in the first half of the year, a year-on-year decrease of 49%; of which, the new revenue from core businesses (including loan assistance and income from new proprietary financial leasing transactions) was approximately 476 million yuan, a year-on-year decrease of 57 %.
In response to the company's future business development trends, Yixin Group CEO, executive director and chairman of the board of directors Zhang Xuan stated in the financial report that the challenges brought about by the new coronavirus epidemic will continue to exist, and Yixin's business will take some time to fully recover.
The huge loss in the first half of the year exceeded 1 billion yuan
Public information shows that Yixin Group is a domestic professional auto finance transaction platform. Its core business is auto loan promotion and self-operated financial leasing business, including online platforms and offline experience stores, which provide consumers with self-operated and cooperative methods. Provide internet car financing services related to car purchase, after car purchase and disposal.
Due to the impact of the epidemic, the sales volume of China's auto market and consumer spending power are under pressure, and the business development of Yixin Group is not optimistic.
According to data from the China Association of Automobile Manufacturers, in the first half of 2020, China's sales of new and second-hand passenger vehicles dropped by approximately 21% year-on-year. In the same period, Yixin Group realized revenue of approximately 1.624 billion yuan, a decrease of 49% from 3.162 billion yuan in the same period last year. In this regard, Yixin Group explained that it was mainly due to the decrease in loan facilitating services and financial leasing services.
According to the data disclosed in the semi-annual report, the total number of auto financing transactions of Yixin Group in the first half of the year was 121,000, a year-on-year decrease of 58%. The auto financing through loan assistance and self-operated financial leasing business totaled 9.3 billion yuan, compared with 223 billion in the same period last year. 100 million yuan fell by nearly 60%.
In terms of profit, Yixin Group lost about 1.053 billion yuan after tax in the first half of the year, and its net profit was about 123 million yuan in the same period last year; the adjusted net loss was about 871 million yuan, compared with 343 million yuan in the same period last year. Yixin Group believes that the decrease is mainly due to the decrease in gross profit and the increase in the provision for credit impairment losses.
Financial data show that in the first half of 2020, Yixin Group's gross profit fell from 1.532 billion yuan in the same period of the previous year to 735 million yuan, a decrease of 52%. At the same time, the credit impairment loss of Yixin Group increased by approximately 181% year-on-year to 1.489 billion yuan from 530 million yuan in the same period last year.
Through the semi-annual report, it can be found that the credit impairment loss of Yixin Group is mainly due to the increase in the provision for expected credit losses of financial lease receivables. For the six months ended June 30, 2020, the company's expected credit loss provision for financial lease receivables was 1.381 billion yuan, compared with only 256 million yuan in the same period last year, mainly due to the epidemic and the decline in consumer repayment ability Caused by.
In this context, the asset quality of Yixin Group still deteriorated significantly. As of June 30, 2020, the overdue rates of all financing transactions of Yixin (including proprietary financial leasing services and loan promotion services) over 180 days and overdue rates over 90 days (including over 180 days) were 1.4% and 2.46%, respectively. The figures were 1.55% and 2.6% on March 31, 2020.
Zhang Xu'an, chairman of the board of directors of Yixin Group, stated in the financial report that he will continue to adopt more stringent risk assessments to ensure the healthy development of Yixin.
Internet giant Tencent
Despite the dismal performance in the first half of the year, Yixin Group is still attracting attention from outside capital.
On June 12, Yiche, the parent company of Yixin Group, issued an announcement stating that the company’s board of directors unanimously approved and formally signed a legally binding merger agreement with a buyer group composed of Tencent Holdings and Hammer Capital (Dark Horse Capital).
According to the financial report, Bitauto's net loss for 2019 is about 170 million US dollars (not according to the US GAAP net profit of about 4.8 million US dollars), and the figure continues to expand, and the 2018 annual net loss is about 97.6 million US dollars (not according to US GAAP net profit is approximately US$134 million).
In the first quarter of 2020, Bitauto’s operating income was 1.738 billion yuan, a year-on-year decrease of 57.36% from the operating income of the first quarter of 2019 (2.735 billion yuan); gross profit was 1.109 billion yuan, compared with the first quarter of 2019 (1.669 billion yuan) ) A year-on-year decrease of 50.50%; a net loss of 832 million yuan, compared with 33 million yuan in the same period last year.
Based on the unsatisfactory performance of Bitauto in recent years, many people in the industry believe that behind the acceleration of Bitauto's privatization process at this time, it may mean that Tencent intends to enter the Yixin Group through its subsidiary Yixin Group. Auto finance field.
Just three days after Bitauto reached an agreement with Tencent and Hammer Capital, Yixin Group issued an announcement showing that Bitauto announced its privatization on June 12. This move will result in a change in Bitauto’s legal control over Yixin. The buyer group And related parties obtain Yixin control.
Yixin Group also pointed out that after consulting the executives, the buyer group will make an Yixin share offer and an Yixin share option offer for all issued Yixin shares through the joint offerors (Tencent and Dark Horse Capital). The offer price is 1.9088 Hong Kong dollars per share and 1.8980 Hong Kong dollars per share option. The total value of the offer is approximately 2.84 billion Hong Kong dollars.
In the first half of this year, under the impact of the impact of the epidemic on the performance of Bitche and Yixin Group, whether Tencent's bottom-hunting at this time can make a difference from Bitche and Yixin remains to be answered.