The first licensed consumer gold company announced its annual performance

On March 11, Jiemian News reporter learned that Industrial Consumer Finance Co., Ltd. (hereinafter referred to as “Industrial Consumer Finance”) recently submitted a registration application report on the “Xingqing” series of personal consumer loan asset-backed securities in the next two years. The secondary registration quota is 10 billion yuan (RMB, the same below), the issuance arrangement is 4-8 installments (expected) within 2 years from the date of approval of registration, and the trading venue is the national inter-bank bond market.

The report also disclosed the performance of Industrial Consumer Finance in 2020. Data show that in 2020, Industrial Consumer Finance’s revenue was 6.465 billion yuan, an increase of 28.4% from the previous year’s 5.035 billion yuan; net profit was 1.35 billion yuan, an increase of 30.9% from the previous year’s 1.031 billion yuan; operating profit was 1.757 billion yuan , An increase of 35.6% from the previous year’s 1.296 billion yuan. As of the end of 2020, the total assets of Industrial Consumer Finance were 44.559 billion yuan, an increase of 19.3% from the beginning of the year; the balance of various loans was 40.924 billion yuan, 19.5% from the 34.260 billion yuan at the beginning of the year; and the owner’s equity was 4.908 billion yuan.

According to the registration application report,

Image source: Industrial Consumer Finance ABS Registration Application Report

From the perspective of asset quality, as of the end of 2020, Industrial Consumer Finance’s non-performing loan ratio was 2.34% (calculated as non-performing statistics based on more than 60 days overdue), and provision coverage ratio was 225.46% (calculated as non-performing statistics based on more than 60 days overdue). The loan provision ratio was 5.27%.

 

Image source: Industrial Consumer Finance ABS Registration Application Report

Judging from the performance data disclosed in the documents, from 2017 to 2020, the revenue, net profit, total assets and other performance of Industrial Consumer Finance have increased steadily in the four years from 2017 to 2020. In 2019, the company ranked third among 22 consumer finance companies that disclosed performance with a net profit of 1.031 billion yuan, second only to China Merchants Union Consumer Finance Company and Home Credit Consumer Finance Company.

 

It is understood that Industrial Consumer Finance obtained the qualification for asset securitization business approved by the Fujian Banking Regulatory Bureau in May 2018. As of the end of 2020, it has successfully initiated four phases of asset securitization projects in the inter-bank market, with a total issuance scale of 7.911 billion yuan.

According to the registration application report, the company applied for a personal consumption loan ABS with a scale of 10 billion yuan this time, and it plans to pool basic assets as its main product “household consumption loan.”

According to the report, the product is a credit loan issued to salaried customers and self-employed persons with stable sources of repayment for personal and family use in tourism, education, weddings, decoration, etc., for consumption purposes other than house purchases and car purchases. The company’s offline marketing team has expanded to verify the customer’s application intention and repayment ability through pro-nuclear and in-person visits, and issue the loan after confirming the purpose of the loan. At present, the “Family Consumption Loan” exhibition business area covers the main developed areas of the east coast (in Fujian Province, the Yangtze River Delta, the Pearl River Delta, the Bohai Economic Belt, etc.) and nearly 50 cities in the central and western provincial capitals.

Jiemian News reporter noted that, in addition to applying for the issuance of ABS to “replenish blood”, the company recently issued financial bonds with a scale of 1.5 billion yuan in the national inter-bank bond market. The issuance period is March 2 to 4, 2021. .

In addition, it is worth noting that in September 2020, Industrial Consumer Finance received its first fine since its opening. The company was fined 500,000 yuan in administrative penalties for failing to fulfill its “three inspections” duties and issuing loans that did not meet the requirements for consumer purposes. This is also the largest fine in the consumer finance industry in 2020.

Public information shows that Industrial Consumer Finance was established in December 2014 and is the first domestic consumer finance company controlled by a joint-stock commercial bank. As of the end of 2020, its registered capital is 1.9 billion yuan. Shareholders include Industrial Bank (66% shareholding), Quanzhou Cultural Tourism Development Group Co., Ltd. (24% shareholding), Xtep (China) Co., Ltd. (5% shareholding), Fucheng (China) Limited company (5% shareholding).

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