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【Introduction】Haier Consumer Finance issues financial bonds for the first time

China Fund News reporter Ma Jiaxin

Recently, Haier Consumer Finance Co., Ltd. (hereinafter referred to as Haier Consumer Finance) issued financial bonds with a scale of 1.5 billion yuan. This is the first successful issuance of financial bonds by the company since its establishment.

Successfully issued financial bonds for the first time

According to an announcement released by China Money Network, on August 23, Haier Consumer Finance successfully issued the first financial bond of 2024 with a scale of 1.5 billion yuan, a term of 3 years and a face interest rate of 2.35%.

According to the reporter, Haier Consumer Finance plans to issue financial bonds with a quota of 4 billion yuan. This is the first time the company has successfully issued financial bonds. The company responded that it is expected to issue financial bonds again this year.

Regarding the original intention of issuing financial bonds this time, a relevant person in charge of Haier Consumer Finance told our reporter that the funds raised will be mainly used for the company's business development, and actively explore ways to enhance user experience, further practice inclusive finance, and serve the real economy.

"The successful issuance of financial bonds not only provides the company with new financing channels and long-term funds, but also demonstrates the financial market's high recognition of the company's credit and operating capabilities, as well as its resilience and potential for sustained development in a complex and changing market environment." The above-mentioned person in charge said that looking forward to the future, the company will continue to adhere to the purpose of serving the real economy and contribute to social and economic development through diversified financing channels and innovative financial products.

According to the data, Haier Consumer Finance was established in December 2014 by Haier Group as the main sponsor. After its establishment, it has experienced several capital increases. So far, the company's registered capital has increased from the initial 500 million yuan to 1.5 billion yuan.

From the perspective of equity structure, the company's top three shareholders are: Haier Group Corporation holds 30% of the shares, Beijing Red Star Macalline International Furniture and Building Materials Plaza Co., Ltd. holds 25% of the shares, and Haier Group Finance Co., Ltd. holds 19% of the shares.

In terms of operating performance, as of the end of 2021, the end of 2022 and the end of 2023, Haier Consumer Finance's total assets were RMB 15.58 billion, RMB 21.125 billion and RMB 26.267 billion, respectively, and the scale of loans and advances issued was RMB 14.152 billion, RMB 19.903 billion and RMB 24.580 billion, respectively, with net profits of RMB 197 million, RMB 274 million and RMB 365 million, respectively.

Financing in the consumer finance industry has accelerated significantly

Since the beginning of this year, the financing of the consumer finance industry has accelerated significantly. According to incomplete statistics, there are 9 licensed consumer finance companies that have successfully issued financial bonds and 5 licensed consumer finance companies that have successfully issued ABS, and the interest rates are basically within 3%.

The "China Consumer Finance Company Development Report (2024)" released by the China Banking Association shows that in 2023, the overall asset scale and loan balance of my country's consumer finance company industry will both exceed the trillion yuan "threshold", reaching 120.87 billion yuan and 115.34 billion yuan respectively, with year-on-year growth rates of 36.7% and 38.2% respectively, which is higher than the speed of economic recovery and financial development.

In addition, in 2023, my country's consumer finance companies waived interest of 1.661 billion yuan for 1.1669 million customers, waived fees of 212 million yuan for 89,500 customers, deferred repayments of 1.89 billion yuan for 96,800 customers, and maintained the credit of 15,400 customers.

According to industry insiders, the issuance of financial bonds is different from ABS, and it places high demands on the capital adequacy and profitability, corporate governance and risk management of consumer finance companies. However, the "opening of the floodgates" of financial bonds also proves that consumer finance is developing steadily and in a positive direction.

Editor: Captain

Review: Xu Wen

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