Ant Xiaojin has made a large increase in capital, the power of state-owned capital control has been strengthened, and after rectification, Huabei has just announced brand isolation, which will become the exclusive consumer credit brand of Ant Xiaojin.

China Cinda contributed 6 billion yuan

According to the announcement of China Cinda and other companies on December 24th, Chongqing Ant Consumer Finance Co., Ltd. (hereinafter referred to as Ant Xiaojin) issued an additional 22 billion yuan of registered capital to all subscribers, and after the capital increase is completed, the registered capital will increase from 80 yuan to 30 billion yuan.

A number of companies have participated in this investment, includingAnt Group contributed 11 billion yuan; China Cinda contributed 6 billion yuan; Yuyue Medical contributed 1.098 billion yuan; Sunny Optical, Boguan Technology and Yufu Capital contributed 1.8 billion yuan, 1.322 billion yuan and 780 million yuan respectively.

After the completion of the capital increase, Ant Group is still the largest shareholder of Ant Xiaojin, with a shareholding ratio of 50%. China Cinda and its Nanyang Commercial Bank have a combined shareholding of 24%, making it the second largest shareholder.The other shareholders are Sunny Optical, Yuyue Medical, Boguan Technology, Cathay Pacific Shihua, Yufu Capital, Ningde era, Qianfang Technology and China Huarong.

China Cinda is a representative of state-owned assets, which is held by the Ministry of Finance, the Council of the National Social Security Foundation and China Ocean Shipping Group Co., Ltd., respectively. 14.04% and 5%. China Cinda business focuses on non-performing assets management and mainly provides financial solutions and asset management services to customers. Nanyang Commercial Bank is a subsidiary of China Cinda and its main business is in Hong Kong and mainland China.

As for the capital increase, China Cinda said that in the context of the growth of consumer demand and the improvement of the regulatory system, the scale of the consumer financial industry continues to expand, and the use of financial technology makes financial innovation driven by technology. The directors believe that Ant Xiaojin has investment value by virtue of financial technology empowerment, business scenarios and customer flow.

Some original shareholders abandoned the capital increase. Qianfang Technology (002373) announced that the company decided not to participate in Ant Xiaojin's capital increase based on development planning and business status, agreed to Ant's capital increase plan and gave up priority subscription rights. After the completion of Ant Xiaojin's capital increase, the company's shareholding decreased from 7.01% to 1.869%.

After the completion of the capital increase, the background of Ant Xiaojin shareholders is very diverse, and the strength of state-owned assets is significantly enhanced. In addition to China Cinda, the representative of state-owned capital is Yufu Capital, which is out of control by Chongqing SASAC, which is mainly engaged in asset acquisition and disposal. In terms of private capital, Guotai Shihua is mainly engaged in foreign exchange business, while China Huarong is mainly engaged in the management of non-performing assets; in addition, there are a number of science and technology enterprises. Ningde Times, Qianfang Science and Technology, Yuyue Medical, Sunny Optical and Boguan Technology are respectively engaged in the business of power batteries, big data services, medical devices, optical devices, and game software.

Flower is the exclusive consumer credit brand of Ant Xiaojin.

According to the announcement, from its establishment in June 2021 to the end of the third quarter of this year, Ant Xiaojin achieved a total income of 291 million yuan, a loss of 618 million yuan before tax, a total asset of 60.098 billion yuan and a net asset of 7.475 billion yuan.

Ant Xiaojin was first set up in September 2020, but it was only approved in June this year because the listing of ants ran aground at the end of 2020 and the financial business faced regulatory rectification. The newly opened Ant Xiaojin is composed of Huang Hao, president of Ant Group Digital Finance Group, as chairman and Chen Huaisheng as general manager.

According to the notice on further standardizing the Internet loan Business of Commercial Banks issued by the General Office of the Banking and Insurance Regulatory Commission in February this year, Ant Consumer Financial Company, as a licensed financial institution, it should be strictly restricted in terms of operating rules such as capital contribution ratio, concentration and quota of joint loans.

After being required by regulation, Huabai recently announced brand isolation. On November 24, Huabai announced that it will become the exclusive consumer credit brand of Ant Xiaojin and focus on small and medium-sized consumer demand, while consumer credit fully funded by banks and other financial institutions will be updated to a "credit purchase" type of service.

According to the announcement, after brand isolation, the core experience of "credit purchase" services such as interest free period, account audit and repayment will be consistent, and the rates of "credit purchase" services will remain stable; in the future, the rates of "credit purchase" services will be independently approved and determined by financial institutions, and will also follow the principle of inclusive benefits to benefit users as much as possible.