Recently, according to the administrative penalty decision information disclosure form disclosed by the Fujian branch of the People's Bank of China, Fujian Guotong Xingyi Network Technology Co., Ltd. (“Guotong Star Station”) was warned and fined 1.8 million yuan by the People's Bank of China for violating transaction information management regulations. Meanwhile, Shi Mouyang, then deputy general manager and general manager of Guotong Xingyi, was responsible for the above illegal acts and was warned by the People's Bank of China and fined 90,000 yuan. The administrative penalty decision date is March 27.
On January 22, the Guizhou branch of the central bank announced several administrative penalty notices. Guotong Xingyi was punished for poor KYC.
According to the fines, Guizhou Branch of Guotong Xingyi was fined 90,000 yuan of illegal proceeds for not taking timely and effective measures against suspicious transactions; not promptly settling transaction funds into the settlement account of the authorized merchant's billing bank in accordance with the provisions of the agreement; and not strictly complying with the real name system for authorized merchants to manage the three types of offenses. This is also the first ticket issued by the Guizhou branch of the central bank this year.
On January 5 of this year, the Gansu branch of the central bank announced the first ticket of the year, which fell on the Gansu branch of Guotong Xingyi. The company was warned and fined 560,000 yuan due to failure to implement the real-name management requirements for authorized merchants and inadequate localized operation and management of authorized merchants.
In December of last year, Guotong Xingyi Guangxi Branch was fined 30,000 yuan for not accurately labeling and completely sending transaction information. In June of last year, Guotong Xingyi was warned, confiscated 4,019,900 yuan of illegal proceeds, and fined 500,000 yuan for the illegal act of “providing T+0 billing services to special merchants that did not meet the requirements.”
In 2021, Guotong Xingyi was also warned by the central bank's Fuzhou Central Branch for 12 illegal acts, confiscated 2.61 million yuan of illegal proceeds, and imposed an sky-high fine of 67.1 million yuan.
According to business information, Guotong Xingyi was founded in June 2010 and obtained a payment license in 2012. The company invested 300 million yuan and can engage in bank card receipt business nationwide. The payment license is valid until June 26, 2027. Currently, the main business of Guotong Xingyi is to provide merchants with integrated payment services such as bank card payments, code scanning payments, NFC payments, and face-swiping payments. It focuses on sub-brands such as “Xingyi Pay,” “StarPay,” “StarPay,” “StarPay Partner,” “Post Station Pay,” and “Postal Convenience Service Station.” The listed company Xindalu Technology Group Co., Ltd. is its controlling shareholder.
In addition, Guotong Xingyi needed to refund about 756 million yuan due to the “code hopping” incident, resulting in a net loss of 823 million yuan in 2022, a decrease of about 1091% compared with 83 million yuan in 2021. Affected by this, Xindalu's revenue in 2022 was 7.369 billion yuan, down 4.26% year on year; net profit attributable to shareholders of listed companies was -381 million yuan, down 154.20% year on year from profit to loss compared to 704 million yuan in 2021.