Hua win loan Hongkong listed related party loans for self financing?

Hua win loan Hongkong listed related party loans for self financing?

Author: Guo Jianhang source: China business network

On October 4, the Hangzhou Platform Huaying Loan (Hangzhou Huazhi Winning Investment Management Co., Ltd.) was owned by the Hong Kong listed company Hualong Jincon (01682. HK) in a VIE framework. As for the reasons for Hualong King's entry into China to win loans, the public report on the acquisition issue stated that "directors believe that the Group's experience in the lending industry can create synergies for OPCO Group's P2P financing information business."

It is noteworthy that Huaying Loan Parent Company is Zhi's Holding Group Limited (hereinafter referred to as "Zhi's Holding"), while Zhi's Holding Company acquired Gaorui China Federation of Things, a listed company in Hong Kong, at the end of 2017, and subsequently renamed Hualong King Control. The main reason for this acquisition is through the acquisition of Listed Companies in Hong Kong holding Chi's shares, thereby increasing the credibility of the China Winning Loan Platform. However, whether the China Winning Loan Platform itself has the advantage of operating on the platform is doubtful.

Wu Fei, director of Huaying Loan Operations, told China Business News that "there are indeed reasons to increase trust for the platform and boost investor confidence."

Listing on the basis of "affinity"

In 2018, the Internet financial industry entered a deep-water period of shuffling, in this context, few listed companies in this time to buy mutual funds platform.

Beijing Internet financial practitioners told reporters, "Because the direction of the industry is not clear, the outside world is generally not optimistic about the mutual fund industry. Now all platforms in the industry are faced with the loss of investment users and the sharp decline in capital inflows. In this case, the other party will give a very low purchase price even if it has already been negotiating the acquisition cooperation.

At the same time, the other side said, "because the other side of the platform business prospects and the acquisition of platform, in the near future almost no, this situation is more likely to appear in the head platform, but the head platform valuation is higher, generally will not sell equity."

Reporters noted that in the past six months, the Internet financial industry's market has been depressed, most platforms continued to decline in the number of investors, new investors decreased, some platforms trading mainly by platform-matched debt-to-project realization, the actual scale of borrowing business matching reduced.

According to the data released by the Internet Loan House, the industry's total turnover in September was 110.737 billion yuan, 7% year-on-year shrinkage, 52.9% year-on-year decline. The comprehensive reference rate of return was 10.3%, the average borrowing period was 14.87 months, the outstanding balance was 8536.71 yuan, down 5.55% from the previous year, 25.5% from the same period of the same period. The industry transaction continued to decline in September, with a net capital outflow of 49.613 billion yuan.

In this context, Hualong Gold Control announces that WFOE, an indirectly wholly owned subsidiary of the company, has entered into VIE agreements with OPCO and Chinese shareholders. Through the VIE agreement, the WFOE will have practical control over the financial and operational aspects of OPCO and will enjoy the full economic benefits and benefits of OPCO. Following the VIE agreement, OPCO's financial performance will be incorporated into the group's consolidated financial statements, and OPCO will be a wholly owned subsidiary of the company.

The announcement shows that OPCO, namely Hangzhou Huazhi Win Investment Management Co., Ltd., its main business is P2P financing, and network lending information intermediaries operating for China Win Loan operating company, set up on November 03, 2014, the legal representative for China, registered capital of 50 million yuan, paid-in capital of 13.726 million yuan.

It is noteworthy that in Huaying Loan and Hualong King Control shareholders, there are frequent Zhi's holding company, as well as Zhi Hua, chairman and general manager of Zhi's holding company.

Huayingloan is the Internet financial information intermediary platform of Zhizhi Holding Group. Zhizhi Holding Group was founded by Zhihua, registered and paid in capital of 300 million yuan. At present, the shareholder of Hua win loan is 90% of the holding company and 10% of the natural person Yu Xiaoling. While the large shareholder of Zhi's holding group accounted for 60% of the shares, and Yu Xiaoling accounted for 40% of the shares.

In addition, according to reporters, Zhi's Holding Group completed the acquisition of shares of Gaorui China Federation of Things, a listed company on the main board of Hong Kong, in 2017 with $300 million, holding the shares and renamed Hualong King Control.

After Chinalco completed its acquisition of Hualong Gold Control, Chinalco owns 62% of the company, with Wu Jung (15.85%) as its second largest shareholder.

As for the reasons why Hualong Gold Control acquired China's loans, Hualong Gold Control explained that the financial technology market is developing vigorously, the Group believes that it is full of opportunities to become one of the pioneers in the P2P financing industry.

In most Internet financial platforms facing the loss of investors, almost no capital inflows, many platforms will be through some good news for their own credit, boosting investor confidence. But insiders pointed out that this does not mean that the platform itself has advantages.

However, regarding the situation of China Winning Loan's own capital side, Wu Fei said, "the current inflow and outflow of funds is flat, the platform funds to be collected in about 800 million yuan."

Borrowers are linked to the branch's holding business.

Zhi's holding company has many businesses, including real estate development, construction projects, municipal construction, mineral resources, import and export trade and Internet finance. The reporter noticed that there are many enterprises in construction materials decoration and other industries in the borrowing enterprises of Huaying Loan, and whether the enterprises owned by Zhi's holding company exist or not. What is the situation of online financing and borrowing through Hua win loan?

According to the content of Huaying Loan Network, Huaying Loan mainly provides financing services for project managers in the construction industry to solve the financing problems commonly existing in the industry.

According to the borrower's information, a number of borrowers borrowed for personal credit, or secured loans from decorative materials companies, such as a loan for decorative materials. The mode is "borrowers borrow for purchasing decorative materials, and merchants cooperating with Huaying loan recommend housing decoration borrowers to apply to Huaying loan platform." Borrowing.

As for the assets of Huaying Loan, Wu Fei said that the current platform assets mainly focus on the bidding and operation of municipal projects, specifically divided into two parts: one is the bidding margin of municipal projects, the margin paid by the project manager when bidding; the other is that after the successful bidding, the raw materials are collected after the project starts bidding. Loan for purchase.

According to Wu Fei, the platform borrowers are mainly personal credit loans from project managers. The amount of single loan is between 200,000 and 800,000 yuan. At present, the platform accumulates about 2,000 borrowers mainly from Hangzhou, many of them are project managers affiliated with Zhongtian Guangxia and Ningbo Binhai Group. .

The bidding projects are mainly municipal projects, including roads, bridges and old city renovation projects.

According to the reporter's understanding, Zhi's holding company under the Hangzhou Zhihua Municipal Engineering Co., Ltd. (hereinafter referred to as "Zhihua Municipal"), the business mainly for municipal engineering projects. Zhihua Municipality shows that the legal person is Zhihua, the shareholders are Zhizhi Holdings, accounting for 60%, Zhihua 30%, Yu Xiaoling 10%.

As the business is related and the assets of the Huaying Loan Platform are recommended by the cooperating merchants, Wu Fei said that "the examination of the previous arrangement is to ensure the truth of the subject matter and the capital of the project manager or the project party who borrows on the Huaying Loan Platform. Invest in clear. " But the other side said, "we will develop platform business with the advantage of group."

According to the reporter's understanding, the definition of platform self-financing or related borrowing has been changed three times since December 2015, when the Internet lending regulatory policy was introduced. The first definition of "self-financing" is "using the Internet platform of this institution to finance its own or related borrowers" in the Interim Measures for the Management of Operational Activities of Internet Lending Information Intermediaries (Draft for Consultation), issued in December 2015.

The second change is "financing for oneself or disguised as oneself" in the Interim Measures for the Management of Business Activities of Internet Lending Information Intermediaries promulgated in August 2016.

The third change is the "Fact Recognition and Rehabilitation Requirements for Internet Lending Information Intermediaries" issued by Beijing, "Financing on the Platform by oneself; Financing on the Platform by related parties but not fully disclosed information; Financing in the form of self-financing (e.g. shareholders, executives, actual controllers and their close relatives, company employees). In the name of financing, the platform itself is used.

At present, the common definition in the whole country is "financing for oneself or disguised as oneself". Whether the related party financing on the platform belongs to "self-financing" or not is not clearly explained in the industry. But industry insiders pointed out that if the platform used the money for its own operation and development, this is undoubtedly self-financing behavior. If it belongs to the related shareholders of the platform, it has not been clearly stipulated in terms of industrial development, structural adjustment and supervision.

Public information shows that the place where Huaying Loan is registered is the financial supervision department, and the funds are still in docking. As of October 9, Huaying had accumulated 6.963 billion yuan, 23,253 loans, 806 million yuan and 3798 loans.

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