① Recently, Tianjin Tongrong E-Commerce Co., Ltd., the parent company of Douyin Pay, increased its capital by 207%. In other words, the registered capital increased from 700 million yuan to 2.15 billion yuan. ② The industry believes that this move may be related to the new non-bank payment regulations. ③ Recently, Douyin Group is relying on Tianjin Tongrong to promote the acquisition plan of the second payment license Linkage Advantage E-Commerce Co., Ltd.
Financial Services Association, May 7 (Reporter Guo Zishuo) Another payment company under a major platform reported news related to capital increases. Recently, the parent company of Douyin Payment, Tianjin Tongrong E-Commerce Co., Ltd. (hereinafter referred to as Tianjin Tongrong) increased its capital by 207%. In other words, the registered capital increased from 700 million yuan to 2.15 billion yuan.
Regarding this capital increase, the industry believes there may be two considerations.
“On the one hand, the capital increase in Tianjin Finance, the parent company of Douyin Pay, may be paving the way to meet the requirements for registered capital such as industry, commerce, taxation, etc. in the future of linked commerce.” Wang Pengbo, a senior financial analyst at Broadcom Consulting, told the Financial Association reporter that on the other hand, this may also be related to new regulations such as non-bank payment regulations.
According to the relevant provisions of the Regulations, Douyin Pay must meet the requirements relating to the ratio of the net assets of non-bank payment institutions to the average daily balance of allowances and the minimum registered capital of non-bank payment institutions. The joint advantage that Tianjin Tongrong has just won has a nationwide bank card receipt license. Douyin's huge traffic is bound to help increase the scale of transactions on the platform.
“It may be related to the Regulations.” A person from a South China payment agency also told the Financial Federation reporter. The source said that as required by the aforementioned Regulations, the minimum added value of registered capital increases by RMB 5 million for every additional province, autonomous region, or municipality directly under the Central Government in the operating area of a payment institution other than where it resides. On the other hand, the minimum net assets of non-bank payment institutions are calculated based on the average daily balance of provisions, which also places requirements on the capital reserves of enterprises.
However, according to the Regulations, the net assets of non-bank payment institutions are mainly related to the average daily balance of provisions and are determined according to the adoption of excessive regressions. Specifically, the portion with an average daily balance of no more than 50 billion yuan is calculated at 5%; the portion exceeding 50 billion yuan to 200 billion yuan is calculated at 4%; the portion exceeding 200 billion yuan to 500 billion yuan is calculated at 3%; the portion exceeding 500 billion yuan to 100 billion yuan is calculated at 2%; and the portion exceeding 1 trillion yuan is calculated at 1%.
Just got my second payment license
According to Tianyan research, if you look closely, Tianjin Tongrong is owned 1% of the shares by Zhang Lidong, the legal representative of Douyin Co., Ltd., and Zhang Yiming, the founder of ByteDance, holds 99% of the shares.
According to public information, recently, Douyin Group is relying on Tianjin Tongrong to promote the acquisition plan of the second payment license Linkage Advantage E-Commerce Co., Ltd. (hereinafter referred to as Linkage Commerce), with the aim of supporting Douyin Group's offline transaction business scenarios such as lifestyle services. This also means that on the basis of obtaining an Internet payment license, the Douyin Group will further qualify for mobile phone payments and bank card receipts.
Prior to announcing the acquisition of Linked Commerce, Tianjin Tongrong had acquired 100% of Wuhan Hezhong eBao's shares in 2020 and completed the share change in the same year. However, whether it is Tianjin Tongrong or Wuhan Hezhong Yibao, the registered capital of both has not changed. In other words, this round of capital increase is also the first capital increase since Tianjin Tongrong initiated the acquisition of a payment license.
Hailian Jinhui (002537.SZ) recently announced that the company has signed an “Equity Transfer Agreement” with Tianjin Tongrong on April 3 to transfer 100% of the shares in Linkage Business held by its wholly-owned subsidiary Liandong Advantage Technology Co., Ltd. (hereinafter referred to as Linkage Advantage) to Tianjin Tongrong. Meanwhile, after completing the equity settlement of the joint business, Tianjin Tongrong plans to merge the joint business through its wholly-owned subsidiary Wuhan Hezhong Yibao Technology Co., Ltd.
According to the announcement, the price of this equity transfer is the benchmark transfer consideration of 750 million yuan, plus the net asset amount after deducting agreed matters and adjusted from the consolidated statement of the underlying company's share delivery date, and the adjusted amount for other matters.