Recently, Tianjin Bank announced that it has signed restructuring agreements with multiple institutions, including Guangzhou Jingdong Trading Co., Ltd., Online Banking (Beijing) Business Services Co., Ltd., China Foreign Economic and Trade Trust Co., Ltd., Tianjin Economic and Technological Development Zone State owned Assets Management Co., Ltd., Home Credit N.V., and Jiexin Consumer Finance itself.
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. It is worth noting that Guangzhou Jingdong Trading Co., Ltd. (a wholly-owned subsidiary of JD.com) holds 50% of the shares, while Online Banking Online (a wholly-owned subsidiary of JD Technology Holdings) holds 15%. The total shareholding ratio of JD Group and its affiliated companies is as high as 65%. The capital contribution of the original single shareholder Home Credit N.V has decreased from 7 billion yuan to 100 million yuan, and the shareholding ratio has decreased from 100% to 2%. This means that after the regulatory approval for the restructuring is completed, JD.com will become the largest shareholder of Jiexin Consumer Finance.
The announcement also revealed that before the completion of the restructuring, Jiexin Consumer Finance will properly settle, restructure or dispose of all its financing liabilities, related party liabilities and operating liabilities.
Public information shows that Jiexin Consumer Finance was established in 2010 and is one of the first four pilot companies for consumer finance in China. It is also the only foreign-owned consumer finance company in China, registered in Binhai New Area, Tianjin. It is worth mentioning that Jiexin Consumer Finance was once the "leader" in the consumer finance industry.
However, in recent years, due to the impact of the epidemic and the rise of domestic technology giants, the high cost operation model of Jiexin Consumer Finance, which mainly focuses on offline business, has gradually lost its market competitiveness and its performance has declined significantly. Tianjin Bank announced that in 2023, Jiexin Consumer Finance had a net loss of 3.199 billion yuan after tax.
In this situation, news about the transfer of the Jiexin Consumer Finance license has been circulating frequently. Potential successors include both mutual funds platforms and commercial banks, but progress has been delayed due to historical burdens, prices, and other factors. It was not until the addition of JD Group that substantial progress was made in this restructuring work.
For JD Group, acquiring Jiexin Consumer Finance can further expand its market share and influence in the consumer finance field; On the other hand, with the rich experience and customer resources of Jiexin Consumer Finance in the field of consumer finance, JD.com can further improve its financial ecosystem, enhance the quality and efficiency of financial services.
Regarding the restructuring matter, JD.com responded to reporters 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.
For other companies participating in the restructuring, such as Tianjin Bank, this investment in Jiexin Consumer Finance also has important strategic value. Tianjin Bank announced that investing in Jiexin Consumer Finance is beneficial for the bank to expand its inclusive finance customer base, enhance its inclusive finance development capabilities, promote mutual promotion and coordinated development with other investors, advance professional market-oriented operations, innovate financial products, and improve profitability.