"Shake Qian Shu" to become a "drag bottle" listed companies withdraw from mutual gold business

Author: Guo Jianhang source: China business network

The attitude of listed companies to Internet financial business is changing quietly. A number of listed companies have quietly terminated their investment in Internet banking business and began to withdraw from the industry.

Third-party statistics show that the number of listed companies involved in Internet finance has risen year after year, from the initial (2011) three, to the 2015 31. By the first half of 2017, the attitude of listed companies to P2P has changed from hot to cold, and only three listed companies are on-line, and all of them are concentrated in the first quarter.

Recently, the textile city (600790.SH) also announced that due to the P2P industry environment and regulatory situation has changed greatly, decided to stop investment in the establishment of Internet financial services companies.

Investments in Internet financial services in Textile City began in 2015, when the announcement showed that Shaoxing China Textile City Financial Holding Co., Ltd. was to be set up wholly by 50 million yuan, and the latter led the establishment of Internet financial services companies, engaged in P2P lending business.

Zhang Weifu, the Secretary of Textile City, told China Business Daily that the main reasons for the termination of the investment were two aspects: first, the current market environment has changed greatly, and it is not appropriate to conduct business at this time; second, considering looking for experienced companies to cooperate in mutual fund business at the beginning of its establishment, but there has been no special fit. A suitable company is decided to terminate after research.

In the first half of 2018, due to changes in the industry environment, the mutual fund platforms invested by listed companies were overdue or their business was affected, resulting in losses in the profits of listed companies. The business was stopped in time for the consideration of stopping losses.

Attitude changes from heat to colder.

Public information shows that the Limited by Share Ltd of Zhejiang China Light Textile City Group was founded in March 1993. In February 1997, the stock of "Textile City" was listed and circulated on the Shanghai Stock Exchange. It was once known as "the first share of China's professional wholesale market". Its main assets include China Textile City Market and China Textile City International Logistics Center. Its main business comes from the leasing business of market and warehouse.

Textile City on August 29, 2018 reported that its operating income 468 million yuan, an increase of 1.05%, including market rental revenue 364 million yuan, warehousing rental revenue 146 million yuan. Net profit attributable to shareholders of listed companies was 227 million yuan, down 6.73% compared to the same period last year.

According to the reporter's understanding, the textile city first set foot in the financial field in 2007, the registered capital of 90 million yuan, the establishment of Zhejiang Light and Medium Guarantee Co., Ltd., as a financing guarantee company. According to the company's official website, the company mainly provides credit guarantee services for small and medium-sized enterprises, individual businesses and individuals. In the process of business development, innovative bank and government investment projects, small and micro enterprise loans, two-year guarantee business and other types of guarantees, providing customers with different channels and ways of financing.

There are some well-known merchants in China's Textile City market. Some merchants will choose to borrow through Zhejiang Zhongqing Guarantee Co., Ltd. when they carry out the turnover of goods funds.

In 2015, light textile city began to explore the Internet finance. This year, the Internet financial industry is in a period of rapid development, various types of capital into the industry, a number of listed companies through acquisitions or investment in the establishment of the Internet financial industry.

Song Guoliang, director of the Financial Products and Investment Research Center of the University of Foreign Trade and Economics, believes that listed companies still want to catch up with the wind and expand new areas by intervening in P2P. In 2014 and 2015, from the perspective of industrial development, Internet finance began to boom.

According to the announcement issued on August 17, 2015 by the Textile City, Shaoxing China Textile City Financial Investment Co., Ltd. is to be established solely as a sole proprietorship. After the establishment of the financial investment company, the financial assets of the company will be integrated on this platform, and the financial investment company will lead the formation of an Internet financial services company.

Looking back on the decision to enter into mutual fund business in 2015, Zhang Weifu said that the company's cash flow is relatively good and has been considering making some appropriate foreign investment, and the mutual fund industry environment in 2015 is better. In addition, he also hopes to provide short-term financing services for more than 20,000 market operators in Textile City through mutual fund. Considering the above reasons, the company decided to set foot in the mutual gold business in 2015. Zhang Weifu said that the current textile city's guarantee company, but also for more than 20,000 market merchants to provide services.

And the latest announcement of Textile City said, "Up to now, the company has completed the business registration of Shaoxing China Textile City Finance Holding Co., Ltd., the registered capital has not been paid; Internet financial services companies have not yet been established. The announcement said that the above-mentioned 2015 board resolution, P2P industry environment and regulatory situation has undergone major changes, out of prudent decision-making considerations, the company decided to stop investment in the establishment of Internet financial services companies.

In fact, the attitude of listed companies to the Internet financial platform has quietly changed before.

Another listed company, Han Dingyu (300300.SZ), who has invested in a number of Internet financial platforms, has also cleared up its Internet financial business.

On June 7, 2018, HanDingyu announced the termination of the "Smart City-based Consumer Finance Platform" project and the "Smart City-based Experiential Commerce for New Business Operations" project, with a balance of 190 million yuan raised for permanent liquidity replenishment. According to the announcement, the two projects have invested nearly 94 million 840 thousand yuan in recent years, with a planned investment of up to 570 million yuan.

According to third-party statistics, there were 3 listed companies involved in Internet finance business in 2011, 5 in 2012, 11 in 2013, 30 in 2014 and 31 in 2015. By the first half of 2017, the attitude of listed companies to P2P has changed from hot to cold, and only three listed companies are on-line, and all of them are concentrated in the first quarter.

Fear of achievement

A number of listed companies have hoped to boost stock prices through the distribution of Internet financial platforms, acquiring Internet financial platforms has become a "cash cow" for listed companies. But as the industry environment and regulatory policy changes, for listed companies, the Internet financial platform began to become a hot potato.

According to the latest Panda Financial Control (600599.SH) semi-annual report for 2018, the company's revenue during the reporting period was 153 million yuan, down 29.79%, net profit was 3.0288 million yuan, down 67.66%. According to the financial report, the main reason for the decline in operating income in the first half of the year was that the disposal of subsidiaries led to a substantial reduction in operating income incorporated into the merger scope.

On September 14, Panda Financial Control announced that it would transfer 70% of its ownership of Hunan Yingang Consulting Management Co., Ltd. (the main operator of Panda Treasury) to Zhao Weiping, the actual controller of the listed company, at a transfer price of 57.123 million yuan.

Choosing to spin off the Panda Treasury at this time, Zhao Weiping said publicly that after receiving a 70% stake in the Treasury, he had strengthened his legal relationship with the Treasury and would become the general manager of the Treasury in order to ensure that all investors had no risk in their investments.

It is noteworthy that the announcement did not disclose the Panda Gold control under another wholly-owned online lending platform, "Silver Lake Network" related to the future plan. However, both Silver Lake and Panda Treasury were overdue, and Zhao Weiping said, "The company has spent 4.5 billion dollars to solve the bad debt problem.... Doing something depends to some extent on luck, and the expected return on the original acquisition could reach $12 billion.

Netband Tian Eye believes that for listed companies, the current Internet-related financial business, or will have a reverse effect on the stock price. Because if there are problems in Internet financial business, it will have a significant impact on the brand of the whole listed company, and if it is serious, it will even cause stock price fluctuations.

In addition, some listed companies will use part of the funds to carry out "blood transfusion" rescue on their platforms, which will have a greater impact on the performance of listed companies. At present, more and more listed companies begin to withdraw from the Internet financial industry, or reduce the layout of the industry, mainly because of the strict policy in the entire mutual fund industry, market environment has changed, listed companies for the future development prospects of the industry remain cautious.

In addition, for the Internet financial platform, the increasing compliance costs make it more difficult for listed companies to improve their performance. The possible negative information also affects the brand of listed companies and even leads to stock price volatility. These changes deviate from the original intention of listed companies to enter the Internet financial industry.

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