Source | Laser Finance
Author | Huang Laoxie
On August 12, China Unicom (600050) released the first half of 2020 financial report, disclosing the performance of China Merchants United Consumer Finance in the first half of the year.
In the five years since its establishment, China Merchants Union Consumer Finance saw its performance decline for the first time. In the first half of this year, its revenue was 6.023 billion yuan, a year-on-year increase of 30.76%; net profit was 578 million yuan, a year-on-year decrease of 18.56%; total assets were 92.076 billion yuan, a year-on-year decrease of 0.6%; Net assets were 9.938 billion yuan, a year-on-year increase of 6.17%.
Regarding the changes in the performance of China Merchants Union Consumer Finance, Laser Finance believes that the new crown pneumonia epidemic hit early this year, and many users are under closed isolation management. Pressing the pause button in offline consumption scenarios will affect the development of consumer finance business. At the same time, some companies have faced difficulties in resuming work, and some workers have faced falling wages or unemployment, and demand for consumer credit has fallen. Coupled with the fact that some old-aged groups are making waves, delaying repayment by malicious complaints, and increasing the loan overdue rate of consumer finance companies, the consumer finance industry has been hit.
This can be confirmed from the performance of consumer gold products in the same industry during the epidemic. From the perspective of the overdue rate, the Jieying 2020-1 product issued by Home Credit Consumer Finance and the Xingqing 2019-2 product issued by Industrial Consumer Finance have changed significantly due to the impact of the epidemic. The overdue rate increased sharply during February and March. .
From January to April this year, the 1--30-day overdue rates of Jieying 2020-1 products were 2.4%, 3.66%, 2.49%, and 2.52%, and the 30+ overdue rates were 0.65%, 1.33%, 2.83%, and 3.37%, respectively. .
In the same period, the 1-30 day overdue rates of Xingqing 2019-2 products were 1.04%, 5.95%, 0.71%, and 1.04%, respectively, and the 30+ overdue rates were 0.47%, 0.90%, 1.17%, and 1.14%, respectively.
It is worth noting that last year, China Merchants Union Consumer Finance saw a slowdown in net profit growth and an increase in NPL ratio year by year. From 2016 to 2019, the net profit of China Merchants Union Consumer Finance was 336 million yuan, 1.189 billion yuan, 1.253 billion yuan, and 1.466 billion yuan, respectively. The growth rate slowed down year by year; from 2016 to 2018, the non-performing loan rate of China Merchants Union Consumer Finance was respectively They were 0.82%, 1.24%, and 1.93%. In the first half of 2019, the non-performing loan ratio was 2.08%, increasing year by year.
Laser Finance found that during the epidemic this year, China Merchants Union Consumer Finance issued financial bonds three times, with a total scale of 7 billion yuan, and used up the quota of financial bonds approved in December 2019. In the third bond issuance, China Merchants Union Consumer Finance stated that the raised funds are mainly used to supplement the company's medium and long-term funds, optimize the company's asset-liability maturity structure, and further promote the development of its main business. China Merchants Union Consumer Finance also mentioned that its financing mainly relies on inter-bank loans, and its financing channels are relatively simple. It needs to pay attention to related risks such as its own capital liquidity management and internal control governance.
In terms of corporate governance, in the first half of this year, the senior management team of China Merchants Consumer Finance has changed. Executive Director, Vice President and Chief Financial Officer of China Merchants Bank served as Director of China Merchants Consumer Finance, and Wang Yaonan, General Manager of China Merchants Consumer Finance R&D Center, served as chief Information officer.
According to an enterprise search, China Merchants Union Consumer Finance was established on March 6, 2015 with a registered capital of 3.869 billion yuan. China Unicom holds 50% of the shares, China Merchants Wing Lung Bank Co., Ltd. holds 25.85%, and China Merchants Bank holds 24.15%.