As one of the first companies in China to obtain a consumer finance license, Jiexin Consumer Finance, which has been deeply mired in business difficulties in recent years, has been receiving attention from the industry. After years of negotiations with multiple institutions, the restructuring issue of Jiexin Consumer Finance has finally been settled.
According to the announcement released by Tianjin Bank on the evening of December 20th, two main enterprises under JD.com will jointly hold 65% of the shares of Jiexin Consumer Finance, becoming its largest shareholder. Industry insiders say that after the restructuring is completed, JD Group is expected to obtain a consumer finance license.
Multiple parties jointly participate in the restructuring work
On December 20th, Tianjin Bank issued a notice on "Disclosures Required for Transaction Investment in Jiexin Consumer Finance", stating that it has signed agreements with Guangzhou Jingdong Trading Co., Ltd. (referred to as "Jingdong Trading"), Online Banking Online (Beijing) Business Service Co., Ltd. (referred to as "Online Banking Online"), China Foreign Economic and Trade Trust Co., Ltd. (referred to as "Foreign Trade Trust"), Tianjin Economic and Technological Development Zone State owned Assets Management Co., Ltd. (referred to as "Tianjin Economic Development State owned Assets"), HomeCredit N.V. (Jiexin Group), and Jiexin Consumer Finance to jointly participate in the restructuring of Jiexin Consumer Finance.
Source: Announcement from Tianjin Bank
According to the announcement, this equity restructuring will adjust the registered capital of Jiexin Consumer Finance from 7 billion yuan to 5 billion yuan through equity restructuring methods such as first reducing capital and then introducing strategic investors to increase capital. The capital reduction procedure is to reduce the registered capital of Jiexin Consumer Finance. The capital increase procedure involves introducing Jingdong Trading, Online Banking, Foreign Trade Trust, Tianjin Economic Development State owned Assets, and Tianjin Bank as new shareholders.
It is reported that the equity restructuring work is led by JD.com. After the restructuring is completed, JD's two subsidiaries, Jingdong Trading and Online Banking, will contribute a total of 3.25 billion yuan and jointly hold 65% equity of Jiexin Consumer Finance; Foreign Trade Trust will contribute 600 million yuan and hold 12% of the shares; Tianjin Economic Development State owned Assets invested 550 million yuan and holds 11% of the shares; Tianjin Bank invested 500 million yuan and holds a 10% stake; Former parent company HomeCreditN V (Jiexin Group) invested 100 million yuan and holds 2% of the shares.
Source: Announcement from Tianjin Bank
The relevant person in charge of Jiexin Consumer Finance stated that this is an important part of Jiexin Consumer Finance's plan to introduce strategic investors for equity restructuring. The plan has been ongoing for some time, and ultimately the company will become a solid foundation enterprise, seizing market opportunities and steadily moving forward. The company's move is to better adapt to China's rapidly growing consumer finance market and will continue to invest in business operations in the future.
JD.com is expected to obtain a consumer finance company license
As one of the first four pilot companies for consumer finance in China, Jiexin Consumer Finance was established in 2010 and conducts personal consumer credit business nationwide. In recent years, Jiexin Consumer Finance has been mired in operational difficulties. In December 2024, Jiexin Consumer Finance released multiple non-performing loan transfer announcements, clearing some of its non-performing assets and reducing financial pressure, which was considered by the industry as "preparing for acquisition".
Dong Ximiao, Chief Researcher of Zhaopin, told reporters that the equity restructuring of Jiexin Consumer Finance is the first merger and acquisition case after the newly revised "Management Measures for Consumer Finance Companies" was released, and also the second merger and acquisition case after Ningbo Bank's acquisition of Huarong Consumer Finance Company in 2021, which has multiple positive significance.
Firstly, JD.com is expected to obtain a consumer finance company license. For a long time, JD.com has accumulated many advantages in e-commerce, financial technology, and other areas, accumulating a large number of customers and data. Combining with the consumer finance company license will enhance JD's ability to serve customers and promote the healthy development of the platform economy. Secondly, it will help resolve the risks of Jiexin Consumer Finance Company. Jiexin Consumer Finance Company is the first foreign-owned consumer finance company in China, but its development has not been smooth in the past few years, accumulating some risks. After JD.com and Tianjin Bank invest, it will accelerate the resolution of existing risks and better safeguard the legitimate rights and interests of investors and consumers. "said Dong Ximiao.
When it comes to the reasons for investing in Jiexin Consumer Finance, Tianjin Bank stated in the announcement that this move is beneficial for Tianjin Bank to expand its inclusive finance customer base, enhance its inclusive finance development capabilities, promote mutual promotion and coordinated development with other investors in the new development pattern, advance professional market-oriented operations, innovate financial products, and improve profitability. It will help Tianjin Bank maintain its competitive advantage in the fierce market competition and achieve sustainable development.
Industry insiders indicate that the main target audience of consumer finance companies is those who traditional commercial banks cannot reach or whose services are insufficient. The specialized consumer credit function of consumer finance companies is more prominent, with relatively low loan amounts, shorter loan terms, and greater flexibility. The equity restructuring of Jiexin Consumer Finance may bring a new atmosphere to the consumer finance market. In 2025, as China's economy continues to recover and consumer policies are implemented to boost consumption, the consumer finance market will usher in new opportunities.
