This article comes from the WeChat public account:Invest in China (ID: China-Venture), author: dawn, from the head of FIG. unsplash
Since the beginning of 2015, with the rise of Internet finance, mutual financial companies headed by Yirendai have been listed overseas, which is their highlight moment and the peak period of the mutual financial industry.
However, in the following less than three years, with the thunder of non-compliant platforms in the industry, regulatory rectification continued to tighten.
Affected by this, the performance of the stock prices and profits of some mutual gold listed companies continued to decline, and some platforms even faced the risk of delisting.
So, after a lapse of many years, how are the mutual gold companies going to the US listed?
“Car loan one brother” ended dismal, publicly announced its withdrawal from the online loan industry
After half of the time in 2020, the old P2P platform that has been in operation for 9 years and has been listed on the New York Stock Exchange-Weidai.com, gave investors the worst answer in the past four years. Although its performance is not loss-making, its sharply declining operating income and net profit are enough to amaze.
The financial report shows that for the whole year of 2019, the operating income of Weidai.com was 3.358 billion yuan, a year-on-year decrease of 14.2%, and the net profit was 254 million yuan, a year-on-year decrease of 64.72%.
(data source: wind, financial report drawing: vote.net)
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At the same time as the performance encountered Waterloo, this platform that once occupied 35% of the domestic car loan market, surpassing the total market share of the 2nd to 10th, also issued an unexpected announcement. , That is, to withdraw from the online loan industry and no longer operate the online loan information intermediary business.
In the financial report, Weidai.com said that at present, the main business of the platform has changed. Since February 2020, it has stopped providing new loan projects to investors.
In other words, the P2P online loan business will no longer be the main business of the micro loan network.
Abandoning the online loan business, Weidai.com is not a whim, but has been planning for a long time. This can be glimpsed from the data released by Weidai.com’s financial report and subsequent platform operations.
Through 2019, Weidai.com’s expenditures have shown a downward trend, in which R&D expenses decreased by 41.4% year-on-year; sales and marketing expenses decreased by 37.6%; and management expenses decreased by 25.7%. In the financial report, Weidai.com uniformly stated that it was mainly due to the company’s cost and personnel optimization.
That is to say, in 2019, Weidai.com not only reduced the platform’s operating expenses, but also optimized the company’s personnel. This is enough to see that since 2019, Weidai.com has already begun to have Plan to reduce the size of the platform.
In addition, just after the third day of the release of the financial report, on May 31, Weidai.com published an article on its WeChat public account, saying that based on national policies and industry trends, due to careful research and decision, it will be in 2020 Withdraw from the online loan industry before June 30 and no longer operate the online loan information intermediary business.
At this point, Weidai.com has given up its online loan business and it is a foregone conclusion.
Under the industry’s upheaval, the online loan business that various platforms have been proud of has become a hot potato. Now that the online loan business is thrown away, can the platforms sit back and relax? There is more trouble.
Today, Weidai.com is facing the risk of delisting.
According to New York Stock Exchange regulations, as long as the listed company’s share price is less than $1 for 30 consecutive trading days, it will trigger the delisting mechanism. If the company’s performance has not been improved within 90 days, it will be ordered to delist.
But according to snowball data, as of June 1, 2020, the market value of Weidai.com was only US$116 million, with only a fraction of the highlights, and its share price plummeted from the issue price of US$10/ The stock fell to $1.59 per share, a distance below $1, just one step away. On June 4, the closing price of Weidai.com was US$1.64 per share.
Between the road and the thorns, it took 7 years to become a “car loan one brother”, but the micro loan network failed to escape the industry’s downward cycle.
According to data from the website of Weidai.com, as of February 2020, the platform’s loan balance was 8.583 billion yuan, and the cumulative loan amount was 298.663 billion yuan.
The stock price fell, delisting, and the desolation of mutual gold listed companies
In fact, among the mutual gold listed companies, it is not only the micro-loan network that is facing the risk of delisting.
In April 2017, CRC was listed on the New York Stock Exchange with an opening price of US$6.65 and a total market value of US$420 million. But two years later, starting from April 17, 2019, Xinerfu began to walk on the verge of delisting, and its stock price fell below the $1 warning line, and the lowest was $0.23 per share.
Affected by this, in early May of that year, Shine Rich received a notification letter from the New York Stock Exchange, saying that the average closing price of its American Depositary Shares (ADS) in 30 consecutive trading days was less than $1/ The stocks no longer meet the standards of the New York Stock Exchange. Lingxin Fu took steps to rectify the company and rescue the sluggish stock price within six months in order to meet the listing standards again.
On June 4, 2020, Sinovel’s closing price was US$1.37, which was a 77.17% drop from the listing price of US$6 at the time of listing.
(Source: Snowball)
Hexin Credit also received a delisting warning in 2019.
On December 16, last year, Hexindai received a notification letter from the Nasdaq stock market due to the closing price of 30 consecutive trading days below $1, and was asked to make corrections.
In this regard, Hexin Credit said that if the platform’s closing price can reach or exceed US$1 for 10 consecutive trading days during the 180-day grace period (that is, before June 15, 2020), it will be deemed to have been Re-compliance with the aforementioned Nasdaq listing rules.
However, according to data, from May 28 this year to June 1, the closing price of Hexin Credit has been higher than $1 for three consecutive trading days.
But this does not mean that Hexin Credit has escaped the crisis. After all, the current share price of the platform is like dancing on the wire, and there is the possibility of breaking the string at any time.
(Source: Snowball)
Comparatively, J&P Technology under Rong 360 is among the three platforms, and finally received a warning.
Janepu Technology, which went public in November 2017 on May 11 this yearAnnounced that they have received a notification letter from the New York Stock Exchange that their stock price is less than one US dollar for a month, which is below the compliance standard, and a correction period of 6 months is given. The correction period will expire on December 22, 2020 .
(Source: Snowball)
However, it is understood that since mid-March of this year, J & P’s share price has mostly hovered between US$0.6-0.9 and has not yet broken through US$1.
It is worth mentioning that, similar to Weidai.com, among the above-mentioned three companies that were warned to delist, as early as April 2019, Xinerfu also announced the cessation of lending business for regulatory reasons. Hexin was also reported by the media at the beginning of this year to apply for a small loan license.
On the verge of delisting, have mutual funds listed companies really had a hard time?
According to incomplete statistics from ChinaNet.com, currently, among the 10 mutual gold companies listed in the U.S., in addition to Weidai.com, five companies have stock prices below US$1.6. Below $1, three companies received a delisting warning.
(Data source: Snowball: Cartography: vote.net)
According to the data, the listing time of the above 10 companies is between 2015 and 2018. Among them, the fun store’s issue price is the highest, at US$24/share, and the letter price is the lowest at US$6/share. .
But it used to be only once. Today, among the 10 listed companies, from the listing as of June 1, 2020, the number of companies whose share price fell by more than 90% has reached 3, and more than 60%-90% have reached 5.
Among them, Jane & Poor’s share price has even fallen below $1. On June 4, 2020, Jane & Poor’s closing price was $0.7, and Little Win’s was $0.86. The delisting risk is obvious.
The stock price bottomed out. Facing the delisting is just one aspect of mutual anxiety among listed companies, watching the market value continue to evaporate, or it is suffering.
According to incomplete statistics from ChinaNet.com, among the 10 mutual gold companies currently listed, except for Lexin, the market value of the remaining 9 companies has seriously shrunk compared with the valuation at the time of listing.
(Data source: Snowball: Cartography: vote.net)
Among them, there are 5 companies whose market value has fallen by more than 90% since their valuation at the time of listing.Don’t get rich for credit, Hexin, Xiaoying Technology, etc.; there are 2 more than 50%-90%; 2 more than 30%-50%.
Listing at the time when the industry is popular, or between delisting and industry decline, mutual gold companies that once sang all the way, now whether it is from the perspective of stock price changes or market value, are far beyond the expectations of the helms. In addition, it was obviously the online loan of Fengkou, but why did it fail day by day?
Regulatory pressure, the industry is down, the cycle that players can’t escape
Most of the early-stage businesses of today’s mutual gold listed companies are related to lending. Although later, almost all the platforms have allowed themselves to be fintech companies, but the genes of’loaning’ are the history that these platforms cannot erase.
2015 to 2017 was the peak period for the development of Internet finance. During this period, industry platforms grew wildly. Although thunderstorms and road running incidents happen from time to time, this has not affected the enthusiasm of players and investors in the industry.
The head platforms, on the one hand, seek to raise more funds for use, on the other hand, they intend to use the background of the listing as an endorsement of the platform, to increase their visibility, to attract users, to start a collective listing model, and to go to the United States for listing.
It was a highlight moment for the leaders of mutual funds. They survived in the spotlight and shined, but with the thunder of several major domestic online loan platforms and the tightening of supervision in the second half of 2018, the entire mutual gold The industry is buzzing.
At that time, some data showed that in July 2018 alone, P2P platforms decreased by 218. The number of active investors and borrowers were 3.343 million and 3.571 million, respectively. Among them, the number of investors fell by 18.13% and the number of borrowers. Down 13.79%.
For a time, almost all of the surviving P2P platforms have not been able to protect themselves from being implicated, and the listed mutual financial companies have not been able to escape this robbery.
Later, with the clearing of the online loan industry, the P2P platform has no way out, and the transition or exit has become the only choice for survivors, and some of the mutual gold platforms that have jumped on the market due to the rush of online loan outlets It also failed in this battle, the stock price fell all the way, and the market value shrank seriously.
So, do mutual gold listed companies still have a chance to rebound after traversing the industry downturn?
At least in the first and second quarters of this year, the situation is not optimistic.
According to the current many have been released in 2020The mutual financial listed company in the first quarter financial report said that due to the impact of the epidemic and industry regulation, platform profits and revenues have declined simultaneously, and will face the same difficult situation in the second quarter.
In addition, the rectification of the online loan industry continues to be regulated. Clearance and transformation are the general trend. If the operating platforms fail to find new exports in time, the last thing left is undoubtedly an empty shell, even if it is The same is true of listed companies, and how can they survive the crisis and revive the glory.
There are two main factors that affect the long-term performance of stock prices. One is valuation, such as the price-earnings ratio, and the other is profit. The price-earnings ratio is affected by performance expectations. At present, the price-earnings ratio of some listed companies is relatively low, which shows the market’s uncertainty about the future of listed companies.
“At present, whether these companies’ share prices can be reversed depends on their future expectations, which mainly include the supervision and market competition related to online lending.” Yu Baicheng, Dean of Zero One Research Institute, said in Among the mutual gold listed companies, some platforms mainly focus on P2P business, and some platforms are different from P2P. The future transformation of companies related to online lending depends on the attitude of domestic supervision towards institutional transformation. Regulation is beneficial to the platform, and the expectations of listed companies will become better.
“If the net profit of the platform increases, it will also help the platform to reverse the stock price, but since the second half of last year, the net profit of some listed companies related to online lending is not optimistic, but due to the epidemic, the profit of the mutual gold platform has fallen. , Or will continue into the second and third quarters.”
From this point of view, it is not impossible for a mutual exchange company listed in the United States to reverse its share price and increase its market value, but how can it be operated in compliance with regulations, achieve a dazzling performance, and win investor recognition, obviously It is a difficult problem that various platforms need to solve urgently, and it is also a necessary way to return to the highlight moment.
This article comes from the WeChat public account:Invest in China (ID: China-Venture), author: dawn