The wealthy who were questioned as loan sharks landed on Nasdaq. The stock price on the first day of listing was like a roller coaster, barely falling below the issue price.
Source: Alien Finance, the original title of “The Rich” listed “making wealth” chairman? The cash is over 140 million yuan! More than 10,000 complaints were questioned and slashed interest rates.
Beijing time on August 15th, the 13-year mutual fund platform, Fufu officially landed on Nasdaq, opening at $10.88, up 14.5% from the $9.5 IPO issue price.
Under the influence of domestic regulatory uncertainty and other factors, it is not easy to get approval from US institutional investors. Judging from the current performance of the mutual stocks, the large area fell below the issue price. On the day of the listing of the company, the stock price rose twice and triggered a blow. The increase once expanded by more than 41.89%. Then the stock price fell sharply, and the lowest price fell to the issue price of 9.5 US dollars.
As of the close, the company’s share price rose 0.84% to 9.58 US dollars, barely maintained below the issue price, with a market value of 1.857 billion US dollars.
Loan service fee is the source of income, and revenue accounts for over 90%
Yufu was established in 2006. It has established more than ten independent wholly-owned or controlled subsidiaries, with five major business segments: digital technology, digital accounts, digital inclusive, digital wealth, and digital international. Each business segment has its own business. The series of products, including 玖富科技, 玖富普惠, 玖富钱包, 玖富万卡, Wukong Wealth Management, 玖富 Securities (Hong Kong), 玖富财富 (Hong Kong), etc., and holding or participating in insurance brokers, funds Sales, banking, financial leasing and other institutions with license qualifications.
The rich P2P funds end mainly have three lending apps: 玖富普惠, 玖富钱包, Wukong, and the asset side is 玖富万卡, education staging platform crayon staging, consumer financial services, rich and powerful, Yimeijian in the field of medical beauty.
(Source: 玖富集团’s official website)
The prospectus disclosed that its core product philosophy is to replace traditional personal wealth management products with digital products called “One Card”. Around One Card, the company has established an ecosystem of connected borrowers, investors, financial institutions and business partners to provide revolving loan products around the user’s specific spending needs and risk profile.
(Source: Prospectus)
According to the information disclosure of the prospectus, the income of the rich is mainly from the loan facilitation service fee, post-initiation service fee and other income. In 2016, 2017 and 2018, the net income of Yanfu Group was 2.261 billion yuan, 6.742 billion yuan and 5.557 billion yuan respectively. Loan facilitation service fee revenue accounted for 95.5%, 93.1% and 89.3%, respectively.
(Data Source: Prospectus)
In the first quarter of 2019, the specific income of these three parts was 1.043 billion yuan, 81.252 million yuan, and 79.932 million yuan. Among them, loan facilitation service fees accounted for 86.7% of the total net income, close to 90%.
(Data Source: Prospectus)
The complaints have been tens of thousands of people, and they have been questioned in disguise. They have been questioned as “usury”
The intermediary information service fee for online loans means that Yanfu Group charges a certain percentage of the loan principal to match the transaction between the lender and the investor.
According to the financial data of the prospectus, the loan facilitation service fee is the main source of income for the rich. With the increase in revenue, there are many complaints faced by the company’s products.
Ju complaint platform shows that as of 9:00 on August 16th, the number of complaints from Yufu Digital Science and Technology Group Co., Ltd. has reached 13,471, and the problems are mostly concentrated on high interest, yin and yang contracts, beheading, etc. The user is called “disguised usury.”
(screening of the complaints platform)
About the slashing interest, Yan Fu also disclosed in his prospectus: “At present, under our online loan information intermediary service, loan convenience service, service fee for late service, collection of company payment to third parties The loan collection service, the after-service fee for the arbitration service, and the insurance premium paid to the insurer or the payment to the custodian account and the guarantee service fee paid to the financing guarantee company, as the case may be Pay to the borrower at the same time.”
(Source: Prospectus)
Zhufu also disclosed in risk factors: Circular 141 prohibits online lending information intermediaries from deducting interest, commissions, management fees and deposits from loans before they are issued to borrowers. However, because Circular 141 is relatively new, it is still uncertain how the regulator will interpret and enforce these requirements. If our current method of charging is deemed by the relevant regulatory authorities to issue a pre-deposit of the loan to the borrower, or if our other practices are deemed to violate the above requirements, it may be necessary to modify the current business practices or be bound or penalized.
Zhengfu also disclosed in the prospectus that as of March 31, 2019, the loan balance of the annual interest rate between 24% and 36% was 17.9 billion yuan ($2.7 billion). Before the announcement, the loan balance with an annual interest rate higher than 36% was 6.3 billion yuan ($900 million). We can continue to provide loans at an annual interest rate of 24% or more, but not more than 36%. If any such loan defaults, we will not be able to collect more than 24% of the annual borrowing costs through Chinese judicial enforcement.
The information disclosed in the wealthy prospectus also self-certifies that it has the act of issuing “usury loans”.
Under the general trend of strong supervision, Fufu is also negatively affected by policy supervision. As of March 31, 2019, the number of active borrowers on the platform is 600,000, compared with the same period in 2018. 1 million reductions of 40.0%; and active borrowings at the end of 2016, 2017 and 2018 were 1.3 million, 3.6 million and 2.3 million respectively, an increase of 171.5% in 2017 and a decrease of 36.3% in 2018.
As of 2019In the three months of March 31, the number of active investors on the platform was 300,000, a decrease of 31.1% from 400,000 in the same period in 2018. Previously, the number of active investors in the platform increased from 700,000 in 2016 to 1.2 million in 2017, an increase of 66.5%. In 2018, the number of active investors in the platform dropped to 900,000, a decrease of 28.6%.
The equity institution is suspicious, and the chairman of the “Growing Rich” listed is over 140 million yuan.
Yu Fu’s American Depositary Receipt represents one share of Class A common stock. Fufu issued 6.75 million American depositary receipts, and the selling shareholders will sell 2.15 million American depositary receipts. It is worth mentioning that the 2.15 million American depositary receipts sold by existing shareholders are all from Sun Lei, founder and CEO of Yanfu.
Based on the issue price of $9.5/ADS, Sun Lei will cash out $20.425 million. Yan Fu said that the funds from this part of the cash will be used to repay the loans issued by Baosheng Bank. Yanfu Capital Co., Ltd. previously applied for a loan from Baosheng Bank, which was mainly used to repay the related party loans owed to the company.
According to the prospectus disclosure, before the IPO, Sun Lei, the founder and CEO, was the largest shareholder, and directly held 39.1% of the common stock through Nine F Capital Limited. Anyone who sailed through Nine Fortune Limited held 23.3%. NineF Capital Limited and Nine Fortune Limited are trust projects set up by two people abroad. Xiao Changxing, the founding partner of Weihun Capital, passed DFM Capital Ltd. Holding 7.4%, it is the third largest shareholder. Any sail and Xiao Changxing are not group executives.
(Source: Prospectus)
After the IPO, Sun Lei’s direct shareholding ratio will fall to 36.8% and have 70.2% of voting rights. Any Fan and Xiao Changxing will each have 9.4% and 3.0% of voting rights; Jiangnanchun will continue to hold 5.5%. Shares and 2.3% of voting rights.
According to the official news of the Fufu Group, it has been awarded several rounds of financing since its establishment. In the prospectus, you can see the situation of the BCDE round of financing.
(Source: Prospectus)
According to media reports, on November 15, 2017, Yanfu officially announced the completion of hundreds of millions of dollars of financing, China Cinda (HK.01359) under China’s Cinda (Hong Kong) Holdings Co., Ltd., Jiang Nanchun shares. Among them, CINDA 9F INVESTMENT LP is China Cinda Investment.
On September 27, 2018, 玖富官方微信 announced that SBI Group (SBI Holdings, Inc.), the world’s leading financial technology company, has invested in the company’s strategic investment. This is the new round of E round after the D round of financing. Financing. However, the specific financing amount was not disclosed.
It is worth noting that after several rounds of financing, there are only natural persons in the wealthy equity institutions, and no well-known investment institutions have appeared in the list of shareholders with a large share of equity.
In fact, the shareholder structure disclosed by Yanfu Group is not complete. Only 76.3% of the shares of Yanfu Group were disclosed in the shareholding list, and 23% of the shares were not clearly reflected.
From the perspective of financing history, the financing of the early years of 2006 and 2009 was obtained from Gaoyang Technology. On the other hand, the shareholders of Yanfu Jinke, Fan Yi, Sun Lei, Xiao Changxing, Zhong Zhenxiang, Gao Guangwu It was exposed to Gaoyang Technology.
Therefore, there is media interpretation. Any one of the shareholders’ sails is only a representative. In fact, Hongyang’s listed company, Gaoyang Technology, is the actual controller of the wealthy.