51 A Hunan debt collection company will go to the United States for listing

category:Finance
 51 A Hunan debt collection company will go to the United States for listing


Since 2013, the non-performing of banks has increased, and a series of industries related to non-performing disposal have been flourishing, including the collection industry for disposal of non-performing assets of unsecured credit. For the people with good credit, debt collection companies are basically invisible, but for the regular defaulters, debt collection companies follow suit.

In fact, collection is a traditional, fully competitive industry dominated by private capital. In the words of industry insiders, the threshold of this industry is low, and everyone can come in, but not everyone can survive.

In recent years, with the collection industry coming into the spotlight, the negative aspects of the industry have been exposed, especially in the aspect of profiteering collection. In addition, the relevant policies and regulations need to be improved, the boundary is unclear, the good and the bad are uneven, resulting in frequent industry problems and low overall reputation.

According to the prospectus, Hunan yongxiong was initially founded in April 2014. Zhou Xiaofang and other shareholders jointly established Hunan yongxiong Investment Management Co., Ltd.

In July 2015, the equity structure of Hunan yongxiong changed. Zhou Xiaofang and his spouse Tan man held 3% and 97% of the equity of yongxiong investment respectively. In the same year, yongxiong investment changed its name to yongxiong group.

Its predecessor is a law firm with 10000 employees. It has developed in many fields such as credit card, consumer finance, personal credit non-performing asset management, and has cooperated with many financial institutions such as Ping An, CITIC and Pudong development.

In addition, two familiar faces also appear in the management of yongxiong investment. One is Zhang Huaqiao, who has served as deputy general manager of UBS China for many years, and is currently a member of the board of directors of six listed companies.

Another is Wang Kaiguo, a 24-year veteran of Haitong Securities, who served as the chairman of Haitong Securities. At present, he is also a member of the board of directors of four listed companies.

In terms of employment performance, Hunan yongxiongs income mainly comes from two parts: bank credit card collection and receivables collection of online consumer finance companies.

In 2017, 2018 and the six months to June 30, 2019, Hunan yongxiong obtained 96.6%, 80.5% and 72.3% of the revenue from credit card collection, and 3.1%, 19.5% and 27.7% from online receivables collection.

It can be seen that Hunan yongxiong initially highly relied on the bank credit card collection business, but in recent years, a series of business adjustments have been made, and the proportion of collection revenue of consumer finance companies has increased rapidly.

However, it is worth noting that Hunan yongxiongs performance realization this year has been adjusted to some extent. According to the prospectus, from 2016 to 2018, the operating revenue of yongxiong assets was 436 million yuan, 595 million yuan and 758 million yuan respectively, and the net profit was 97.65 million yuan, 110 million yuan and 124 million yuan respectively.

In addition, Hunan yongxiong also relies heavily on several major customers. According to the prospectus, Hunan yongxiongs total service revenue from the top five customers accounted for 99.2%, 90.2% and 79.2% of the total revenue in 2017, 2018 and the six months ended June 30, 2019, respectively.

Hunan yongxiong is not the first collection company to rush into the capital market. As early as 2015, Enoch Yinhua, which is known as the first share of debt collection, applied for landing on the new third board.

Xu Bei, Executive Deputy Secretary General of Guangdong Association of small loan companies, told the first financial reporter that there are still many obstacles in the listing of collection companies in China. On the one hand, the industry still lacks a sound policy and regulatory system so far, with unclear boundaries, weak supervision and frequent problems. On the other hand, the listing involves the data disclosure of collection companies to customers, among which Most of them are bad data of banks. At the customer level, there may be many obstacles.

But for the industry itself, when its time to get its name right, a large-scale collection company can not only increase its reputation and solve the capital problem, but also, more importantly, seek the formulation of industry standards and seize the opportunity. Xu Bei said.

In recent years, the collection industry has been involved in negative, especially involving cash loans and P2P violent collection. On the evening of October 21, the official microblog of Hangzhou Public Security said that 51 credit card entrusted outsourcing collection companies to act as state organs to collect debts by means of soft violence such as intimidation and harassment, suspected of such crimes as provocation and trouble making, and the case is still under further investigation.

Hunan yongxiong also wrote in the risk tip of the prospectus: employees may violate laws and regulations in the process of collecting debtor information. Our employees may use illegal means such as counterfeiting government officials or falsifying documents to influence the debtor. They may illegally collect personal information of the debtor and sell the debtors information to a third party for personal financial gain. According to the prospectus of Hunan yongxiong, although these actions are personal, they will have adverse effects on the business, such as reputation damage, capital punishment or business loss. If the violation is serious, the customer may terminate the cooperation. For example, due to the misconduct of our employees, one of our major customers suspended our collection service in Anhui Province in June 2018. In addition, the government may also investigate the operation of the company. If there is a violation of laws and regulations, the administrative penalty will be given less, and the business will be suspended more seriously. Source: First Financial Editor: Zhong Qiming

Hunan yongxiong also wrote in the risk tip of the prospectus: employees may violate laws and regulations in the process of collecting debtor information. Our employees may use illegal means such as counterfeiting government officials or falsifying documents to influence the debtor. They may illegally collect personal information of the debtor and sell the debtors information to a third party for personal financial gain.

According to the prospectus of Hunan yongxiong, although these actions are personal, they will have adverse effects on the business, such as reputation damage, capital punishment or business loss. If the violation is serious, the customer may terminate the cooperation. For example, due to the misconduct of our employees, one of our major customers suspended our collection service in Anhui Province in June 2018. In addition, the government may also investigate the operation of the company. If there is a violation of laws and regulations, the administrative penalty will be given less, and the business will be suspended more seriously.