China Huarong's "slimming" continues, and 70 percent equity in Huarong Consumer Finance is listed for transfer
2021-09-15: [Original Article Link].
According to the project information disclosed by the Beijing Financial Assets Exchange, Huarong Consumer Finance Co., Ltd. (hereinafter referred to as Huarong Consumer Finance) 70% shares began to be listed for transfer, and the transferor of China Huarong. The project start date is 6 September, and the deadline is October 21.
According to the latest equity transfer announcement, Huarong Consumer Finance in 2020 has achieved a turnaround. Huarong consumer finance in 2020, to achieve operating income of 1.101 billion yuan, net profit of 0.0064 billion yuan. As 2020, at the end of the total assets is 7.955 billion yuan, the liabilities amounted to 7.166 billion yuan.
In addition, according to Hefei Department recently released the 2021, semi annual report data show that during the reporting period to Huarong consumer finance under the equity method confirmed the investment profits or losses at 853,300 trillion yuan. According to its stake to 15.33% calculates Huarong of gold 2021, to come out in the first half of about profits 0.0056 billion yuan.
Aug 2, China Huarong has announced that according to regulators and financial asset management companies gradually withdraw from the non-principal requirements of the company intends to hold the Huarong consumer finance 70% external equity public transfer, a total of 0.63 billion unit.
Data show that Huarong Consumer Finance was established in January 2016, with China Huarong as the main sponsor, and jointly established by Hefei Department Store, Shenzhen Huaqiang, Xin'an Assets and other investors. As the only asset management licensed consumer finance company in the industry, Huarong Consumer Finance's performance since its opening is not satisfactory.
2016,-2019, Huarong of consumer finance total income are respectively 90.1 million yuan, 0.766 billion yuan, 1.201 billion yuan, 1.029 billion yuan, corresponding to the pre-tax profit respectively 0.037 billion yuan, 0.128 billion yuan, 0.0168 billion yuan,-0.263 billion yuan.
Gao Gan, assistant to the president of China Huarong, said at a performance conference held at the end of August that in accordance with regulatory requirements, Huarong's return to its main business is an overall regulatory requirement and a general trend, in the past few years, China Huarong has actually actively promoted the slimming of institutions in accordance with regulatory requirements. At present, the equity transfer of Huarong's trading center, the equity transfer of Huarong Consumer Finance, and the reorganization of the equity of Huarong Trust are being implemented, and the company's governance procedures have been completed, and make an announcement in accordance with the company's information disclosure requirements.
Note: This is auto-translated version of an article meant for Chinese audience. A mature and nuanced reading is suggested.