On December 22nd, it was announced that Tianjin Bank will jointly participate in the restructuring of Jiexin Consumer Finance Co., Ltd. (also known as "Jiexin Consumer Finance") with Guangzhou Jingdong Trading Co., Ltd., Online Banking (Beijing) Business Service Co., Ltd., China Foreign Economic and Trade Trust Co., Ltd., Tianjin Economic and Technological Development Zone State owned Assets Management Co., Ltd.
According to the announcement, the five new shareholders plan to adjust the registered capital of Jiexin Consumer Finance by reducing it first and then increasing it. The specific adjustment will be reduced from the original 7 billion yuan to 5 billion yuan. According to the disclosure, after the equity restructuring, Guangzhou Jingdong Trading Co., Ltd. holds 50% of the shares, and Online Banking Online (Beijing) Business Services Co., Ltd. holds 15% of the shares. Among them, Guangzhou Jingdong Trading Co., Ltd. is a wholly-owned subsidiary of Beijing Jingdong Century Trading Co., Ltd; Online Banking Online (Beijing) Business Services Co., Ltd. is a wholly-owned subsidiary of JD Technology Holdings Co., Ltd. Therefore, the two main enterprises under JD will jointly hold 65% of the shares. After the restructuring is completed, JD.com is expected to obtain a consumer finance license.
Screenshot of Tianjin Bank Announcement
Regarding the restructuring matter, JD.com responded that under the guidance of the Tianjin Municipal Government and relevant regulatory agencies, we will participate in the restructuring of Jiexin Consumer Finance Co., Ltd. in an orderly manner with China Foreign Economic and Trade Trust Co., Ltd., Tianjin Economic and Technological Development Zone State owned Assets Management Co., Ltd., Tianjin Bank Co., Ltd., and Home Credit N.V (Jiexin Group) to create a better consumer experience for consumers.
Public information shows that Jiexin Consumer Finance was established in 2010 and is one of the first four pilot companies in consumer finance. Its registered address is in Binhai New Area, Tianjin, and it conducts personal consumer credit business nationwide.
It is understood that Jiexin Consumer Finance was once the "leader" in the consumer finance industry. However, in recent years, its performance has declined due to market factors and the rise of domestic technology giants. Tianjin Bank announced that in 2023, Jiexin Consumer Finance had a net loss of 3.199 billion yuan after tax.
JD's acquisition of Jiexin Consumer Finance has attracted widespread attention in the industry. Industry insiders point out that consumer finance licenses still have extremely high value. As a leading e-commerce platform, JD.com already has a huge user base and rich consumer scenarios. After obtaining a license, not only will its compliance be strengthened, but it is also expected to achieve rapid growth in business scale. However, at present, the competition in the consumer finance market is fierce. In addition to traditional commercial banks and consumer finance companies, there are many Internet enterprises involved in this field. JD will face strong competition.