Sina Technologies News Beijing time October 27 noon news, 360 Finance yesterday formally submitted a prospectus to the United States Securities and Exchange Commission (SEC) for listing on the New York Stock Exchange, the stock code is "QFIN".
The IPO is expected to raise no more than $200 million. The issue price range of IPO and the number of shares issued have not been disclosed in the prospectus. The IPO underwriters are Goldman Sachs and Citigroup.
In the prospectus, 360 Finance disclosed that the company's high dependence on 360 Group, regulatory issues, financial reporting internal control deficiencies are the main risks facing the company.
Business and Industry Risk
- the operation time of the company is not long, so it is difficult to assess the future prospects.
Online consumer finance is a new industry that is evolving rapidly and it is difficult to assess the future prospects.
The company relies heavily on the 360 group to get user traffic and technical support from it. If the 360-degree group's user traffic or other services are limited, weakened, or inefficient, cost-effective, or the company can not continue to receive support, or the 360-degree group brand awareness can not continue to benefit the company, the company's business may suffer a setback.
- For the online consumer finance industry and online microfinance companies, China's laws and regulations are still being adjusted and rapidly changing. If the company's business ethics violates national laws or regulations, the business, financial situation, operating performance will suffer a major blow.
- the credit cycle and credit deterioration of the borrower will bring some risks to the company.
- If a platform fraud occurs, it may adversely affect the company's operating performance, brand, reputation, resulting in fewer users of loan products and services.
- Companies rely on proprietary risk management models to assess borrowers'creditworthiness and loan risk. If the company's model is defective, or invalid, can not manage the loan risk, or is considered to be unable to correctly manage, the company's reputation, market share may be impacted, thus seriously affecting business and operating performance.
- Companies need to rely on risk management teams to design and implement risk management policies. If the risk management team or key team members are unable or unwilling to stick to their current positions, the company's business can be seriously impacted.
- The third party provides the company with credit and other borrower-related information that may be inaccurate or inaccurate in reflecting the borrower's credit, which may affect the accuracy of credit assessment.
- If a company fails to promote and maintain its brand in an efficient and low-cost way, its business or operational performance may be compromised.
- If the company's loan amount cannot be maintained or increased, existing borrowers can not be left behind, new borrowers can be attracted, or borrowers'financial needs can not be met, the company will not be able to capture long-term growth opportunities from users, business and operating performance may be affected.
- The reputation, performance and financial position of a company may be affected if it fails to continue to cooperate with financial institution partners or to provide sufficient financial support to borrowers.
- If the cooperation violates laws and regulations, the business and operational performance of the company may be seriously damaged.
- If Beijing Zi-hyun Information Technology Limited prohibits its operations or fails to attract enough individual investors to fund the company's loans, the company's business and operating performance may be seriously affected.
- The company's online microfinance companies may not be able to provide enough money to ensure continued growth. In addition, regulation of online small loan companies has been changing and full of uncertainties.
- If the company's financial partners violate anti-money laundering, anti-terrorist financing and other laws and regulations, the company's business and operational performance may be harmed.
- The company needs to cooperate with the guarantee company. The guarantee company can make the company's financial partners feel more comfortable and enhance the sense of credibility. The company should assume the corresponding accounting guarantee responsibility. If the company can not get the support of the guarantee company, can not satisfy the fund partners, and provide services at a reasonable price, the cooperation between the company and the fund partners will be affected, operating performance will also be seriously hurt. If the company's liability for security does not match the current situation, the company's financial situation may change unexpectedly.
- If the company's loan products are not well accepted in the market, financial performance and competitiveness may be hurt.
- Companies are facing fierce competition, and if they can't compete effectively, their operating performance can be hurt.
- If the ability to recover defaulted loans is weakened, the company's business and operational performance may be affected.
- If the company's brand or reputation is damaged, or if the reputation of the online consumer finance industry is damaged, the company's business and operating performance may also be affected.
- If the company's employees or third-party service providers misconduct, errors or errors, the company's business and reputation may be affected.
- changes in interest rates may have adverse effects on loans.
- Companies must protect the borrower's confidential information, which is threatened by cyber attacks, computer viruses, physical and electronic intrusions, interruptions.
Operating business needs value-added telecommunications licenses and other necessary licenses, approval or documentation, if the company can not obtain and continue to have a license, the company's business, financial situation, operating performance may be affected.
- The company relies on Internet infrastructure, fixed-line telecommunications networks, and mobile operating systems and networks that are beyond its control.
- If a company's platform or computer system is severely damaged, including by certain events (beyond the company's control), the company may not be able to process the loans, thereby weakening the platform's appeal and leading to a loss of borrowers.
- The company's platform and internal systems are highly software-dependent, and the software technology is high, it may have undetectable errors, the company's business may be affected.
- The company may not be able to prevent other unauthorized users from using the company's intellectual property rights, thereby affecting the company's business and competitiveness.
The company's platform uses some open source software, and if it fails to meet one or more open source licensing requirements, the company's business may be impacted.
- Companies may face intellectual property infringement litigation, which is costly to protect themselves and may destroy the company's business and operations.
The company has suffered losses in the past and may continue to net losses in the future.
The company's business is highly dependent on the continuous efforts of the management team. If one or more of the key executives can't or won't stick to their positions, the company's business can be badly hit.
- The company assesses and completes strategic investments and acquisitions from time to time, and these transactions require a high level of management attention, which may undermine the company's business and seriously affect financial performance.
- From its inception to December 31, 2016, and in the year to the end of 2017, the company audited the consolidated financial statements for these two periods. Independent certified public accounting firms and companies found two major deficiencies in the internal control of financial statements. If a company fails to establish an effective internal control mechanism for financial reporting and keep it in effect, it may not be able to report financial performance accurately or prevent fraud effectively.
- the quarterly performance of the company may fluctuate and can not fully reflect the real performance of the business.
- Competition for employees is fierce, and companies may not be able to attract and retain highly skilled employees, without which business development is difficult.
- Rising labor costs in China may have an impact on the company's business and operating performance.
- the coverage of the company's commercial insurance may not be enough. (Dirk)
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