Source | Laser Finance (leishecaijing)
Jincheng Consumer Finance, known as the leading consumer finance and housing loan company, has adjusted its self-operated credit business and returned to the housing loan scenario.
"Laser Finance" exclusively learned that Jincheng Consumer Finance has suspended some of its self-operated microfinance business, and its Jinnangdai App has been removed from the shelves. At present, self-operated credit is only open to existing housing loan customers and provident fund customers. Public information shows that Jinnangdai is a microfinance product launched by Jincheng Consumer Finance around 2018.
According to people familiar with the matter, Jincheng Consumer Finance has long since removed Jinnangdai, and its related self-operated credit business has been suspended for a long time. Now it only provides mortgage loans and provident fund loans. "Jincheng Consumer Finance's self-operated credit business has shrunk. It may be that leaders feel that the overdue rate is high and business returns are low."
Regarding the adjustment of self-operated credit business, "Laser Finance" asked the staff of Jincheng Consumer Finance for confirmation, and the other party confirmed that some self-operated credit business has been suspended. "Jin Nang Dai App is temporarily unable to apply for new loans. Our company mainly deals in housing mortgage loans and provident fund loans, and we have no recommendations for others."
After the adjustment, Jincheng Consumer Finance's self-operated credit business mainly targets old housing loan customers and provident fund customers around Sichuan, and other small loan businesses rely on loan assistance channels. Jinxiangdai, the original self-operated housing loan business, is still operating normally.
In terms of products, Jincheng Consumer Finance launched Jinfu Loan and Rongxiang Loan for old housing loan customers. According to the official introduction, Jinfu Loan is a mortgage loan product issued to high-quality whitelist customers who have settled the Jincheng consumer finance mortgage product Jinxiangdai. The amount is between 50,000 and 200,000, and the annualized interest rate is 16%.
Rongxiangdai is a credit loan product issued to high-quality whitelist customers who have not yet settled on Jinxiangdai. The amount is between 30,000 and 50,000, and the annual interest rate is 15%.
According to industry insiders, Jincheng Consumer Finance gave up its self-operated microfinance business. In addition to risks and returns, the reasons may also include its own capital adequacy pressure. On-balance sheet expansion is limited, and self-operated operations can only select the best whitelist customer groups. . Narrowing the business scenarios and customer groups to housing mortgage and provident fund groups, while relying on the fixed-income model to earn income from loan assistance, is the best choice for Jincheng Consumer Finance.
As an established consumer finance company, Jincheng Consumer Finance's business focus has always been in the field of offline housing loans. Its online business is relatively cautious. In addition to loan assistance, self-operated credit accounts for a relatively small proportion. Now that the strategy is once again moving towards offline and housing loan scenarios, we can see the shortcomings of Jincheng Consumer Finance’s genes and expansion.
Although it was one of the first four consumer finance companies to open, Jincheng Consumer Finance’s size and performance clearly lag behind that of leading consumer finance companies. On the one hand, this is related to the genes of Jincheng Consumer Finance. Stability is the main tone. Early leaders advocated deeply exploring the local market and becoming a small and sophisticated consumer finance company.
On the other hand, the ability of shareholders also limits the growth of Jincheng Consumer Finance. Compared with the parent bank and sponsoring shareholders of other leading consumer finance companies, Bank of Chengdu has a large strength gap. The traffic ecology of other shareholders is average and it is difficult for Jincheng Xiaojin to bring significant gains in customer acquisition.
Seeing its peers catching up and surpassing itself, Jincheng Consumer Finance also began to break through regional constraints, trying to develop national business through the development of offline agency channels, and introducing Internet gene shareholders to balance ecological deficiencies. The first round of capital increase and share expansion introduced Chow Tai Fook, Uxin, and Haoze Water Purification, but the ecological synergy gains brought by the new shareholders do not seem to be obvious.
After the capital increase, Jincheng Consumer Finance’s registered capital is 420 million yuan, ranking at the bottom of licensed consumer finance companies. As the volume gradually expands and risky assets increase, the capital pressure of Jincheng Consumer Finance becomes prominent.
The financial report shows that in 2021, Jincheng Consumer Finance achieved operating income of 998 million yuan, a year-on-year increase of 33%; it achieved net profit of 251 million yuan, doubling year-on-year. Total assets are 11.321 billion yuan and net assets are 1.345 billion yuan.
In 2022, Jincheng Consumer Finance's total assets are 11.723 billion yuan, net assets are 1.57 billion yuan, operating income is 1.035 billion yuan, and net profit is 257 million yuan. Relying on profits to retain capital can still be sufficient, but there is limited room for on-balance sheet expansion.
Judging from the ratio of existing capital and risk assets, Jincheng Consumer Finance's leverage level is already relatively high. If you want to continue to expand, you either need to increase the upper limit of capital scale through cash capital increase and other means to drive on-balance sheet growth; or you need to use loan assistance business to strengthen off-balance sheet and maintain performance growth.
At the end of December 2022, Jincheng Consumer Finance announced the launch of the second round of capital increase and share expansion. Through the method of "capital reserve transfer + cash capital increase", an additional registered capital of 580 million yuan will be added. After the capital increase, the company's registered capital will be 1 billion yuan. . Among them, the major shareholder Bank of Chengdu increased its capital in the same proportion. After the capital increase, its shareholding ratio is still 38.86%, making it the largest shareholder of Jincheng Consumer.
At the beginning of this year, Jincheng Consumer Finance planned to add three new shareholders and increase its registered capital by 303 million yuan through listing on the exchange. If the capital increase is implemented, it will not only relieve capital pressure, but also inject new shareholder ecology to fill the ecological shortcomings of Jincheng Consumer Finance.
While busy increasing capital, Jincheng Consumer Finance is accelerating the expansion of its offline business. Since the beginning of the year, Jincheng Consumer Finance has issued a number of recruitment announcements for offline customer acquisition channels, with deployment in Luoyang, Jiujiang, Huaihua, Wuhan, Suzhou, Zhenjiang, Huanggang, and Suzhou. Waiting places.
Jincheng Consumer Finance continues to expand its offline business scope. The main reasons include: First, as a consumer finance company with traditional offline business, Jincheng Consumer Finance’s flagship product is housing mortgage loans. The product structure determines the offline business development method. host.
Secondly, Jincheng Consumer Finance wants to expand its assets nationwide, and offline businesses with relatively mature experience have become the first choice. Through the nationwide regional distribution of agency channels, it can help Jincheng Consumer Finance quickly open new markets and obtain incremental assets on and off the balance sheet.
As long as the fundamentals of offline business are solid, abandoning some of the online businesses that bear own risks will not have any major impact on performance.