【Text/Observer Network Lv Dong Editor/Zhou Yuanfang】
In the first four months, the net profit exceeded that of last year, the product with the highest annualized interest rate of the loan was shut down, the major shareholder liquidated the transfer of shares, and the continuous violent collection by user complaints, China Post Consumer Finance Co., Ltd. (hereinafter referred to as China Post Consumer Finance Co., Ltd.) has repeatedly become the focus of the market recently.
In fact, user complaints are also a common phenomenon in the consumer finance industry. In addition to China Post Consumption Gold, companies such as BOC Consumption Gold, Industrial Consumption Gold, Beiyin Consumption Gold, Hubei Consumption Gold and other companies have also been complained by a large number of users about excessive interest, violent collection, non-lending and other violations.
At present, the regulatory policy on the consumer finance industry is continuing to tighten. In February this year, the central bank clearly stressed that it is necessary to adhere to expanding domestic demand and stimulating domestic consumption potential, but not relying on the development of consumer finance to expand domestic demand; it is necessary to adhere to financial innovation under the premise of prudent supervision.
Shut down high interest rates "mail you spend"
Financial data show that in the past three years, the performance growth rate of China Post Consumer Gold has shown a rapid slowdown trend.
From 2018 to 2020, the net profit growth rate of China Post Consumer Gold was 199%, 71.92% and 15.17%, the revenue growth rate was 228%, 78.23% and 30.5%, and the total asset growth rate was 75.42%, 29.5% and 10.9%, respectively.
Entering 2021, the growth rate of net profit of China Post Consumer Gold has improved significantly. Specifically, from January to April 2021, China Post Consumer Finance achieved revenue of 1.633 billion yuan and net profit of 572 million yuan, while for the whole year of 2020, China Post Consumer Gold achieved revenue of 4.863 billion yuan and net profit of 402 million yuan.
Comparing the data, it is not difficult to find that the net profit of China Post Consumer Gold in the first four months of 2021 has exceeded the net profit of the whole year of 2020.
As of April 2021, the total assets of China Post Consumer Were 33.270 billion yuan and the net assets were 4.288 billion yuan, and in 2020, the total assets of China Post Consumer Finance were 34.005 billion yuan and the net assets were 3.836 billion yuan.
Some industry views believe that last year's new crown epidemic had a greater impact on the consumer finance industry, and the overdue rate of consumer financial institutions has increased, eroding some net profits. With the improvement of the epidemic this year, consumer demand in the first quarter was strong, and consumer financial institutions began to increase their lending efforts. As a result, the business of consumer finance companies has improved.
Financial data of China Post Consumer Finance
In terms of business structure, China Post Consumption Mainly has three major product systems: "Mail You Loan", "Mail You Buy" and "Mail You Spend".
Among them, "Mail You Loan" is an unsecured credit product, including revolving loan, speed loan, owner loan, plus mail loan and other products; "Mail You Purchase" is an installment mall; "Mail You Flower" is a scene consumer loan product.
Surprisingly, in the context of the sharp increase in performance, China Post Consumption Gold chose to shut down the product with the highest annualized interest rate of loans - "Mail You Flower".
According to the "Announcement on Pricing and Charging Items of Proprietary Loan Business (2021 Edition)" disclosed on the official website of China Post Consumer Finance, the annualized interest rate of "Mail You Loan" revolving line products is 10.8% to 23.76% (calculated according to simple interest, the same below), the annualized interest rate of non-revolving (one-time) line products is 14.04% to 23.76%; the annualized interest rate of "Mail You Purchase" loan is 14.04% to 25.36%; the annualized interest rate of "Mail You Spend" loan is the highest, which is 14.4% to 32.4%, and the annualized interest rate of "Mail You Spend" loan is the highest, which is 14.4% to 32.4%, and the annualized interest rate of "Mail You Spend" loan is the highest, which is 14.4% to 32.4%. This product was discontinued on March 8, 2021.
Screenshot of the official website of China Post Consumer Gold
This is not unrelated to the continuous tightening of regulatory policies in consumer finance.
On February 8, 2021, the "Report on the Implementation of China's Monetary Policy in the Fourth Quarter of 2020" released by the Chinese Bank for the first time clearly defined the tone, which is to adhere to the strategic basis of expanding domestic demand and stimulate domestic consumption potential, but not to rely on the development of consumer finance to expand domestic demand; to adhere to financial innovation under the premise of prudential supervision.
On February 20, the China Banking and Insurance Regulatory Commission (CBIRC) issued the Notice on Further Regulating the Internet Lending Business of Commercial Banks, which explicitly brings dozens of trust companies and consumer finance companies under the new regulatory rules. From the content point of view, the Notice mainly includes strictly prohibiting risk control outsourcing, clarifying the three large-scale indicators in terms of capital contribution ratio, concentration and quota management, and restricting off-site operations.
On February 26, the China Banking and Insurance Regulatory Commission (CBIRC) issued the Interim Measures for the Implementation of Recovery and Disposal Plans for Banking and Insurance Institutions (Draft for Solicitation of Comments), which requires financial institutions such as banks, insurance, trusts, AMC, consumer finance, and wealth management subsidiaries to formulate recovery plans and disposal plans in case major risk events occur, so as to have a predetermined plan to promote institutions to restore their ability to continue to operate.
While regulation is tightening, the number of licensed consumer finance companies is also increasing. In 2020, 5 consumer finance companies, including Chongqing Xiaomi Consumer Finance, Beijing Sunshine Consumer Finance, Chongqing Ant Consumer Finance, Suyin KGI Consumer Finance, and Vipin Fubon Consumer Finance, were approved for establishment.
Even Internet giants that have not been directly approved to establish consumer finance companies are entering the market. For example, Du Xiaoman invested 30% in Harbin Consumer Finance in 2019, and Jiufu Digital was approved to invest in Hubei Consumer Finance in May 2020 with a shareholding ratio of 24.47%.
In December 2020, Zhang Tao, chief operating officer of BOC Consumer Finance, said in an interview with the media that if "strict supervision and standardization" is the main theme of the consumer gold consumption industry in 2020, looking forward to the future, the approval of consumer finance licenses will become normalized, and under the comprehensive regulatory system, the steady development of the industry can be expected, and it is expected to usher in a new era of compliance and orderly development.
Liquidated and transferred by major shareholders
Although executives believe that the future of the industry can be expected, the major shareholders have not expressed their support with action.
After living peacefully for more than 5 years, Haiyin finally chose to part ways with China Post Consumption Gold.
On June 15, Haiyin announced that it intends to transfer the 1.1667% equity of China Post Consumer Gold held by it through public listing, and the listing price of this equity transfer is not less than the audited net assets corresponding to the equity, calculated according to the audited net assets of China Post Consumer Gold as of December 31, 2020, the audited net assets of China Post Consumer Gold are 3.836 billion yuan, and the transfer price is not less than 44.7546 million yuan.
After the completion of this listing transaction, Haiyin shares will no longer hold the equity of China Post Consumer Gold.
Screenshot of Haiyin's announcement
China Post Consumer Finance Co., Ltd., approved by the China Banking and Insurance Regulatory Commission, was established in November 2015 and headquartered in Guangzhou, is a national financial institution that provides consumer financial services for individuals.
At the beginning of its establishment, the registered capital of China Post Consumer Finance was 1 billion yuan, with Postal Savings Bank as the largest shareholder with a shareholding ratio of 61.5%; DBS Bank as the second largest shareholder with a shareholding ratio of 12%; and other shareholders Bohai Trust, Lakala, Grandbuy Shares, Haiyin Shares and Sanzheng Group with shareholding ratios of 11%, 5%, 3.5%, 3.5% and 3.5% respectively.
As one of the founding shareholders of China Post Consumer Gold, Haiyin Co., Ltd. once had high hopes for China Post Consumer Gold.
Haiyin co., Ltd. has said that the initiation of the establishment of China Post Consumption Gold has accelerated the pace of the company's construction of a financial service platform with service business and entertainment as the core - "Haiyin Financial Services", while also broadening the company's business scope, promoting the development and implementation of diversification strategies, and improving the company's profitability.
In addition, Haiyin believes that with the help of the "China Post Consumer Finance" platform, it can form a cross-industry alliance with many well-known high-quality enterprises such as Postal Savings Bank to achieve resource complementarity and enhance the company's brand image.
However, in 2018, the registered capital of China Post Consumption Fund increased to 3 billion yuan, and Haiyin shares did not participate in the capital increase, and the shareholding ratio dropped to 1.167%, and Bohai Trust and Lakala did not participate in the capital increase, and the shareholding ratio declined.
After the completion of the capital increase of China Post Consumption, Postal Savings Bank holds 70.5%, DBS Bank holds 15%, Guangdong Sanzheng Group holds 4.5%, Bohai International Trust holds 3.666%, Grandbuy holds 3.5%, and Lakala holds 1.667%.
Screenshot of the shareholding structure of China Post Consumer Gold Haiyin shares announcement
Based on the 35 million yuan invested when it first entered the shares, the profit from the transfer of The equity of China Post Consumption Gold of Haiyin Shares will be no less than 9.755 million yuan.
Holding shares for more than 5 years, Haiyin shares choose to liquidate at this time, which may mainly have two considerations:
The first is the issue of their own performance.
According to the official website, Haiyin Co., Ltd. was founded in 1991 and listed on the Shenzhen Stock Exchange in 2008, is one of the few privately held commercial listed companies in Guangzhou, one of the top 500 private enterprises in China, one of the top 100 private enterprises in Guangdong Province and Guangzhou City; in 2015, the company launched the two-wheel drive strategy of "business + finance" to build a development pattern of "commercial operation + financial services".
In recent years, the revenue and net profit of Haiyin shares have shown a downward trend as a whole.
In 2020, Haiyin achieved revenue of 1.302 billion yuan, down 46.56% year-on-year, a decline of 46.56% over the same period of the previous year; net profit attributable to the mother of 31.8786 million yuan, down 77.13% year-on-year; earnings per share of 0.02 yuan.
Entering 2021, the decline in the performance of Haiyin shares has not been reversed. In the first quarter of 2021, the company achieved revenue of 261 million yuan, down 8.71% year-on-year; net profit attributable to shareholders of listed companies was 13.0976 million yuan, down 45.18% year-on-year.
Observer Network also noted that as of the end of the first quarter of this year, the monetary funds on the account of Haiyin shares were 307 million yuan, down 4% from the end of 2020, while its short-term borrowings reached 347 million yuan, and its non-current liabilities due within one year reached 1.61 billion yuan.
Speaking of the purpose of the transfer of the equity of China Post Consumption Gold, Haiyin shares said in the announcement that the transaction is conducive to the company's revitalization of stock resources, optimization of the company's asset structure, and concentrated advantages to develop the main business.
Haiyin shares in the last 5 years of performance data
However, there are views in the market that in addition to its own business needs, the transfer of equity in Haiyin shares may also be related to the prospects of the gold consumption industry.
Some industry analysts pointed out that with the continuous increase and improvement of policies, consumer finance has bid farewell to the stage of rapid expansion, and the growth rate of performance has slowed down. For some companies that want to make short-term profits by investing in licensed gold companies, the value of this license is not so large. Coupled with the increase in the number of gold consumption platforms, the competition is more intense, and the profits of the gold consumption platform are inevitably affected to a certain extent.
In response, China Post Consumer Finance said that the transfer of Haiyin shares is a normal business behavior carried out by the shareholder's strategic adjustment, the shareholder is a financial investor, the amount of capital contribution is 35 million yuan, and the equity accounted for 1.167%, which will not affect the daily operation and management of the company.
There are nearly 30,000 judicial adjudication documents
In the past two years, the situation of consumer finance overdue is grim, and the number of judicial cases in which licensed consumer finance companies such as China Post, Bank of China, Industrial Industry, Beiyin, Hubei Consumer Finance and other licensed consumer finance companies have sued borrowers has increased sharply, and behind a large number of adjudication documents are the long-standing bad debts of licensed consumer finance companies.
Enterprise investigations show that more than 90% of the judicial cases involved in the current licensed consumer gold companies are financial loan contract disputes.
Among them, the judicial collection of China Post Consumption Fund is more typical.
On the China Judgment Documents Network, a search was conducted with the keyword "China Post Consumption Gold" and 27,494 documents were displayed. Among them, there are as many as 17,647 judgment documents in 2020, most of which are disputes over financial loan contracts.
According to a number of media reports, China Post Consumer Finance regards judicial collection as the main collection method, and once the borrower is overdue, it will sue the overdue borrower in batches in court. If the borrower fails to perform on the court's judgment within the time limit, the court may employ credit punishment methods such as fines, detention, restriction of high consumption, and inclusion in the judgment defaulter.
In terms of penalty interest, the penalty interest rate of the three products of "mail you loan", "mail you buy" and "mail you spend" are all 1.5 times the borrowing interest rate.
However, a number of recent judgment documents disclosed by the China Judgment Documents Network show that the court believes that the penalty interest rate agreed between China Post Consumer Finance and the borrower is too high, and it is discretionary to calculate 5% of the total amount of principal and interest until the final principal and interest are fully repaid.
Screenshot of China Judgment Documents Network
On some online complaint platforms, there are also many complaints about China Post Consumption.
On June 23, some users complained that they, his wife and his family were continuously harassed by the self-proclaimed China Post Consumer Financial Customer Service, and strongly demanded that they be returned on the same day, and if they were not returned on the same day, they threatened to contact their families and colleagues (the so-called follow-up impact of the burden); in the afternoon of the same day, without the authorization of the parties and the parties, they contacted the elderly at home, and kept harassing until repayment. The malicious actions of China Post Consumer Finance seriously affected the normal life and work of my family.
Screenshot of the black cat complaint platform
According to another borrower, in January 2020, he borrowed 30,000 yuan of capital turnover in China Post Consumption, and has now repaid 25,836 yuan for 15 installments, and 13,958 yuan if he needs to repay in advance. At present, the 16th installment should be repaid, because the capital turnover is not overdue for 4 days, the China Post Consumer Gold Telephone harasses the family, violent collection, so far the calculation of the China Post Consumption Loan Interest Rate has exceeded 32.5%.
On another complaint platform, some users complained that from January 21, 2020 to April 28, 2020, in the case of overdue 20265 yuan and the actual overdue principal of 16914 yuan, the penalty interest for 10 days was as high as 201 yuan, and the annualized interest rate was as high as 43.4%, naked usury.
Easy to complain platform screenshot
Complaints about the illegal leakage of personal privacy and theft of information by China Post Consumer Finance also occur from time to time.
For example, a customer said that he had not paid for a loan in China Post Consumer Finance, but when he checked the personal credit report, he found that the credit report showed that on November 8, 2020, China Post Consumer Gold Co., Ltd. issued 17549 yuan of other personal consumption loans to him, which matured on April 8, 2022, and the current balance was 10907. It has never filled in personal information on the platform, nor has it received any bank card that has received the amount of information, but now it is directly on the credit report, hoping that the platform will come forward to deal with it as soon as possible, otherwise it will complain to a higher-level department.
Also complained about by users was BOC Consumer Gold. Some users complained that they borrowed 1,000 yuan in BOC Consumer Finance, with an annual interest rate of up to 35.77%, which has far exceeded the annualized interest rate disclosed by BOC Consumer Finance in its official website; and some users complained online, the annualized interest rate changed from 8.5% at the beginning to 17.117% after the formalities were completed.
In addition to complaints of high interest rates, there are also a large number of complaints about boc's malicious collection of gold consumption and high interest rates in the black cat complaints. Some borrowers complained that during the settlement period, their families received malicious collection from BOC Consumer Finance, and slandered and fabricated facts to harass them by Means of WeChat phone calls, threatening and intimidating and not negotiating solutions.
Against the backdrop of the continuous increase in financial loan contract disputes between consumer finance companies and users, the China Banking and Insurance Regulatory Commission issued a notice on June 7 saying that it decided to organize the "Year of Internal Control and Compliance Management Construction" activities in the banking and insurance industry.
It is mentioned that it is necessary to pay close attention to the design and development, pricing management, agreement formulation and other links of crowd-related financial products, strengthen product evaluation and compliance review, strengthen key information disclosure, and prevent damage to the legitimate rights and interests of consumers in the name of financial innovation; strengthen consumer information security protection, establish and improve the customer complaint handling mechanism, promote dispute resolution, promote complaint traceability and rectification of institutions and businesses with large complaints and prominent risks, and gradually expand consumer protection work from back-end complaint handling to the whole process of operation.
This article is an exclusive manuscript of the Observer Network and may not be reproduced without authorization.