The company created a “one master, two wings” pattern with financial services such as pawnbrokers, wealth management, leasing, and guarantees as the main body, with trade and investment as the two wings. In terms of financial services, the company started with a pawnbroking business and has established a leading position in Zhejiang's pawnbroking industry in terms of credit and scale, while developing steadily in leasing and guarantee fields. In the future, the wealth management investment business will be an important business innovation point for the company, and the company plans to actively expand the market by developing supply chain financial services in combination with trade business. The first coverage gave a “Highly Recommended - A” rating.
In 2015, the company's trade business grew rapidly, and various types of financial services were steady and developed continuously. Among them: 1) revenue from the pawnbroker business was 77.18 million, a decrease of 7% from the previous year; 2) revenue from the leasing business was 24.43 million, an increase of 109% over the previous year; 3) revenue from the guarantee business was 18.87 million, down 11% from the previous year.
Pawn: Leading in Zhejiang Province. Zhejiang Yuantai Pawn and Xiang Yi Deqi Pawn are the largest pawnbroking companies in Zhejiang and Ningbo respectively. In 2015, in order to expand the exhibition area, a new pawnbroker company was set up in Shanghai, a pawnbroker branch was set up in Jiaxing, and the development of the pawnbroker business was accelerated, and the structure was optimized. “Small, fast, and standardized products” are the main characteristics of the company's pawnbroker business.
Guarantee: Mainly commercial performance guarantees, and the risk is low. Xiang Yi Guarantee is mainly engaged in commercial performance guarantee business (that is, engineering guarantee business, accounting for more than 90%). In 2015, the amount of corporate financing guarantees accrued was 21 million, and the amount of commercial performance guarantees accrued was 1.05 billion. At present, guarantee companies have a wide range of market resources and popularity in the Jiangsu, Zhejiang, and Yangtze River Delta regions, and occupy a certain market share.
Financial leasing: Continued and stable development. Xiang Yi Leasing was founded in February 2008. Relying on the brand advantages of the parent company, Xiang Yi Leasing launched a financial leasing business. It obtained financial leasing qualifications in 2013, and its scope of business covered the Yangtze River Delta and the whole country. In 2015, the company signed 4 financial leasing contracts. Currently, a total of 11 existing and new leasing projects have been signed, with a total contract amount of 516 million.
Wealth management: An important innovation point for future business. The company first got involved in the wealth management business in 2014, and its two platforms were engaged in this business, namely Xiang Yi Rong Tong (Zhejiang) Investment and Shanghai Donghai Xiang Yi Rong Asset Management. The investment plan announced by the company in 2016 was no more than 1.2 billion yuan. The target markets were mainly in the Jiangsu, Zhejiang and Shanghai regions. The business targets were mainly small and medium-sized enterprises and ordinary high-net-worth people.
Risk warning: Continued downturn in economic growth has led to reduced demand for financing.