The fourth to last trading day of 2021.
As soon as the Hong Kong stock market opened after Christmas, China Cinda (01359), whose stock price had been silent for half a year, suddenly rose sharply in the morning, with the largest increase of 20%, even more dazzling than the "popular star" Chinese medicine, leading the Hong Kong Stock Connect.
The reason for the change came from an announcement.
On December 24, China Cinda disclosed that Chongqing Ant Consumer Finance Co., Ltd. (hereinafter referred to as "Ant Consumption") intends to issue an additional registered capital of 22 billion yuan, and the registered capital will increase from 8 billion yuan to 30 billion yuan after the completion of the capital increase, and China Cinda will become its second largest shareholder.
Time rewinds to November 2020, when Ant Group abruptly announced a suspension of listing on the eve of landing on the Sci-Tech Innovation Board. The new regulatory documents have an important impact on its profit structure, and where Ant Group will go has become an important issue of concern to the capital market.
After a year, Ant Group's important subsidiary Ant Consumption Gold completed the capital increase. With the central enterprise financial enterprise becoming its second largest shareholder, does this mean that the "national team" has officially entered the Ant Group? Has the road to the listing of the "largest unicorn" gradually cleared the fog?
1 Shareholding ratio of state-owned background institutions rises to 27.93%
Before the capital increase, ant consumption shareholders were also very luxurious.
Ant Group holds 50% of the shares and is the largest shareholder. Nanyang Commercial Bank is the second largest shareholder, holding 15%; the third largest shareholder, Cathay Shihua Bank (China), holds 10%; the fourth largest shareholder, CATL, holds 8%; Qianfang Technology is the fifth largest shareholder; And China Huarong and Yuyue Medical each hold 4.99%.
According to the announcement information, there are 6 enterprises participating in the capital increase and share expansion of Ant Consumer Finance.
Ant Group invested 11 billion yuan, a total of 15 billion yuan, with a shareholding ratio of 50%, to consolidate its position as the largest shareholder.
China Cinda increased its capital by 6 billion yuan and subscribed for 20% of the shares in cash, becoming the second largest shareholder of Ant Consumer Finance. After the completion of the capital increase, China Cinda and its subsidiary Nanyang Commercial Bank will collectively hold a 24.003% stake interest.
Yufu Capital, a subsidiary of Chongqing State-owned Assets Supervision and Administration Commission, invested 780 million yuan, with a shareholding ratio of 2.6%.
Cinda, Nanyang Commercial Bank and Huarong with a total shareholding of 25.33% in the background of the "Chinese" character are 25.33%; at this point, the proportion of shares held by all state-owned asset background institutions is 27.93% of the central capital plus local state-owned assets.
In terms of industrial capital, Shunyu Optics, a large private enterprise, invested 1.8 billion yuan and subscribed to 6% of the company's equity, becoming the third largest shareholder. With a market value of more than HK$200 billion, Sunny Optics has been actively exploring the application scenarios of its visual perception in the field of AIoT, including face recognition, gesture recognition, eye tracking, etc., which can be used for face brush payment and other scenarios, and actively cooperates with Ant Group in the field of AIoT.
In addition, NetEase's Boguan Technology invested 1.322 billion yuan, with a shareholding ratio of 4.407%. Ding Lei, the founder of NetEase, like Ali Ma Yun and Shun Yu Ye Liaoning, is also one of the most outstanding Zhejiang business leaders in China.
The original fifth largest shareholder, Qianfang Technology, abandoned the subscription of the new registered capital, and its shareholding ratio was diluted from more than 7% to less than 1.9%.
On the surface, the equity of Ant Group and all other shareholders is half open, but the second largest shareholder of Qianfang Technology is Ali Network, which is in the same vein as Ant Group. Therefore, the actual share ratio of Ant Group may still exceed 51%.
According to media reports, after the completion of the capital increase of Ant Consumption, the board of directors consists of 9 directors, of which Ant Group nominates 2 directors, Cinda and Sunny Optics, which hold more than 5% of the shares, each nominates 1 director, and the nomination and remuneration committee nominates 2 executive directors and 3 independent directors.
The Supervisory Board consists of 5 supervisors, 3 employee representative supervisors, and 2 shareholder supervisors nominated by Cathay Shihua and Qianfang Technology respectively.
Some media commented that Cinda and Huarong were established for dealing with non-performing assets such as state-owned large banks, and the actual controller was the Ministry of Finance. The directors nominated by Cinda will be very familiar with asset quality and risk control, which will have a positive effect on the standardized development of Ant Gold and the prevention of financial risks. In addition, if the state-owned assets can nominate another director, it will have a greater influence on ant consumption.
2 How the lending model will be reshaped remains to be seen
Tianfeng Securities believes that the core reason for the capital increase is to undertake the demand for consumer credit of "Huabei" and "Borrowing", but the lack of registered capital has formed a constraint.
Ant Consumption Gold opened on June 3 this year and will assume the task of business rectification as the main business entity of Ant Group to carry out consumer credit business. According to the rectification plan, Ant Consumption Gold must complete the brand rectification work of "Huabei" and "Borrowing" within 6 months of opening, and undertake the consumer credit business of the two small loan companies as the main operators of "Huabei" and "Borrowing" in an orderly manner within 1 year of opening. In November, "Huabei" and "Borrowing" have successively launched brand isolation work and become the exclusive consumer credit products of Ant Consumption Gold, and the consumer credit products fully funded by other financial institutions have been updated to "credit purchase" and "credit loan" respectively.
After Ant Consumption Fund gradually undertakes business, the joint loan shall be subject to the total amount and leverage ratio required by the Measures for the Administration of Internet Loans of Commercial Banks and the Notice on Further Regulating the Internet Loan Business of Commercial Banks.
CITIC Securities pointed out that although the capital increase will help Ant Consumption to better cope with the current scale bottleneck, the existing business must still rely on the loan model to digest, and how the loan model will be reshaped remains to be seen.
CITIC Securities said that the capital adequacy ratio of consumer finance companies is required to be 10%, and if calculated according to the risk weight of personal loans of 75%, the maximum leverage multiple is 13 times. Ant Consumption Capital increased from 8 billion yuan to 30 billion yuan, and the maximum self-operated balance it could undertake increased from about 100 billion yuan to about 400 billion yuan. If all of them are used for joint loans, the balance of "credit loans" and "credit purchases" that can be undertaken increases from about 350 billion yuan to 1.3 trillion yuan.
According to the balance of 1.7 trillion yuan of consumer loans of Ant Group at the end of June 2020, at least 400 billion yuan must rely on the loan assistance model. Considering that ant consumption is more engaged in self-operated business in the early stage, the balance that needs to be digested in the mode of loan assistance should be higher than this calculation. CITIC Securities expects that the growth of Ant Group's micro-loan business will also come more from the loan assistance model in the future.
3 It is expected to become a leader in the consumer finance industry
Tianfeng Securities said that the capital increase can significantly enhance the business capabilities of Ant Consumption Andc, and is expected to become a leader in the consumer finance industry.
As of December 25, there are a total of 30 consumer finance companies in China, and the registered capital of the head companies, Zhonglian Consumer, Home Credit and Ping An, is 10 billion yuan, 7 billion yuan and 5 billion yuan respectively, and Ant Consumption Will leap to the first place and take a significant lead after the completion of the capital increase.
According to the announcement of China Cinda, as of September 30, Ant Consumption Gold has achieved operating income of 291 million yuan and total assets of 60.1 billion yuan since its opening in the three months. The traffic platform under the business model of Internet consumer finance has core advantages, and it is expected that the market will maintain a high degree of industry concentration.
It is expected that with the completion of the capital increase, the asset scale and performance of Ant Consumption Will be significantly improved. Investors may wish to pay attention to the relevant adjustments of the company's business after the entry of the background of state-owned assets such as China Cinda.
4 Ant Group may usher in an important change opportunity
On October 20 this year, the one-year period for Ant Group's IPO registration last year officially expired. This also means that Ant Group's first IPO road has come to an end. If you want to go public again, you need to resubmit it for review.
The entry of central enterprises is not necessarily a bad thing for Ant Group. Market participants pointed out that under the premise of maintaining standardized development, Ant Group is expected to restart its own listing process after this.
CITIC Securities also said that in the long run, strict supervision will accelerate the liquidation of the industry and gradually have an alpha foundation. Wealth management and outbound investment are emerging as new profitable growth points. Although there is no timetable for the company to restart its IPO, it is still the company with the best business model in the fintech industry.
The world's first "unicorn" ant group may usher in an important change opportunity.
This article originated from the Zhitong Finance APP