"Miss Hui Qi, it's not me who makes it difficult for Hong Leong Group. Controlling Jincheng Consumer Finance is something we have planned for a long time.
Nowadays, it is not popular in mainland China to imitate Lei Feng and do good deeds. It is popular to use the word "profit" first."
In a conference room of Jinjiang Hotel, Zhang Yida explained the truth to Guo Huiqi, the successor of Hong Leong Group.
"Something that was planned a long time ago?"
Guo Huiqi captured the important information and asked: "Did you have such a motive when you bought a stake in Jincheng Consumer Finance?"
Zhang Yida nodded, "I'm not embarrassed to admit it. Rui has always been a major shareholder, and the benefits created for you small shareholders far exceed those of your previous holdings of large shares.
This old consumer finance company, established in 2010, cannot lend money to P2P companies, so it has used a good hand in vain.
Three years ago, the annual profit was just over 70 million yuan. Now we have increased this number by more than ten times.
Whether you take the shares and other dividends, or sell them someday, it will be better than the original sluggish appearance.
What era is it now? If you still stick to offline, you are too backward."
Guo Huiqi looked at Zhang Yida who was talking eloquently and said with a smile, "Mr. Zhang, don't get me wrong. We can all see the substantial changes that Ruixiang has brought to Jincheng Consumer Finance.
Hong Leong doesn’t have any other meaning, it’s just that it’s a bit heartbreaking to see such a good asset, but it has to give up its shares in a big way.”
Zhang Yida asked curiously, "How much does Rongcheng Bank want you to transfer?"
"We will transfer 9 points, Chengdu Bank will transfer 7 points, and then we will give you 16 points."
Zhang Yida smiled and said, "This way you still have 20 points, which is quite a lot. It's good to be a financial investment shareholder."
Guo Huiqi smiled and waved her hands, "Let's not talk about this anymore."
"I heard that Ruixiang is about to go public? The world's largest IPO in history?"
Zhang Yida asked with a smile, "Even Malaysia knows about it?"
"Not only do you know, Chinese newspapers have published endless reports praising you as the "Light of Asia."
It fights against Penguin and Ahri internally, and attacks Facebook externally. It is also the largest shareholder of Grab, the largest Internet group in Southeast Asia..."
Zhang Yida chuckled, it seemed that his influence had finally broken through.
…
The next day, in the building where Jincheng Consumer Finance Company is located, the three parties signed an equity transfer letter.
Based on a valuation of RMB 15 billion, Ruixiang paid RMB 2.4 billion to take over the 16% shares transferred by Chengdu Bank and Hong Leong Group, raising the shareholding ratio to 51%.
Chengdu Bank’s shareholding was reduced to 29%, and Hong Leong Group’s shareholding was reduced to 20%.
"The next round of capital increase is needed. Home Credit's registered capital is 7 billion, and the immediate consumption fund is 4 billion. Our 2.5 billion is somewhat out of date."
Taking advantage of the fact that all the shareholders were here today, Zhang Yida came up with a new idea after signing the equity transfer agreement.
"We have increased capital three times in the past three years. Is there still another increase?"
The equity transfer money has not yet been received, and it has to be spent again. Zhang Peng asked this question.
“10 times leverage, based on the registered capital of 2.5 billion, can only support the balance to be collected of 25 billion.
According to the current development rate, the limit will be exceeded soon."
Zhang Yida said with a smile, "You haven't increased your capital yet and are you waiting to receive a fine from the regulatory agency?"
After becoming a regular army, this aspect is not good and the supervision is extremely strict.
When we were engaged in P2P in the past, with a registered capital of 10 million, you could lend hundreds of billions in loans and no one would care about you.
"How much will it increase to?" Zhang Peng asked.
"Doubled, 5 billion!"
Zhang Yida reported the calculated figures, "We invested 1.275 billion, and the two of you invested a total of 1.225 billion.
If there is any difficulty, it will be no problem for our family to take care of it."
"No difficulty, no difficulty."
Zhang Peng waved his hands repeatedly, he did not want his shares to be diluted again.
He calculated that he could get 1.05 billion by transferring the shares and increase the capital proportionally by 725 million, and there would still be some leftover.
"Hong Leong Group has no problem, we will follow."
Guo Huiqi doesn't take this amount of capital increase seriously. She is very optimistic about the development of Jincheng Consumer Finance.
If possible, she actually wanted to take over the shares from Chengdu Bank, but Zhang Peng was unwilling to do so.
Anyone who is a normal person now knows that there is no loss in doing business with Zhang Yida. There are too many examples to count.
…
A group of shareholders of Yi'an Insurance also received a message from Rui Xiang, requesting a board meeting.
"I'll just tell you the truth!"
After all shareholders had arrived, Zhang Yida said, "Ruixiang made an agreement with all shareholders three years ago, and the most important one is that the net assets reach 5 billion yuan.
This task has been overfulfilled so far, and it is time for everyone to fulfill their commitments and transfer part of their shares to Ruixiang."
Cheng Xiangjun, chairman of Yinzhijie, smiled and said, "Mr. Zhang, according to the agreement at the time, shareholders other than Yinzhijie transferred 36% of the shares to Ruixiang, bringing Ruixiang's shareholding ratio to 51%.
But things have changed. Last year, the China Banking and Insurance Regulatory Commission issued the revised "Measures for the Equity Management of Insurance Companies."
Reduce the upper limit of the shareholding ratio of a single shareholder of an insurance company from 51% to one-third to strengthen equity supervision, make up for regulatory shortcomings, and effectively prevent risks.
At the same time, the new insurance regulations also require penetrating supervision of insurance companies.
Strengthen the penetrating review of investors’ background, qualifications and related relationships, and include persons acting in concert into related party management.
It is clear that the sources of funds can be traced upward, changes in actual controllers of insurance company shareholders are included in the filing management, and the focus is on solving problems such as concealed related relationships, invisible shareholders, and illegal holdings."
Zhang Yida nodded. He knew this. In the past, the major shareholders of insurance companies were too powerful and lacked checks and balances. They used insurance companies as cash machines to do whatever they wanted in the stock market.
The most typical example is Boss Yao, who used his Qianhai Life Insurance funds to acquire Vanke.
In the end, he fell short of success and was "heavily fined" 800,000 yuan, revoked from his position as chairman, and banned from the insurance industry for 10 years.
Nowadays, the regulatory agencies are very strict on issues such as agency holdings and related shareholders, and he does not dare to touch the minefield.
"So, Ruixiang decided to adjust and reduce the acquisition of 36% of the shares to 18.33%. We only hold 33.33% of the shares and no longer seek the 51% control line."
After Zhang Yida finished speaking, other shareholders nodded and smiled, indicating their agreement with the plan.
Backed by the big tree of Ruixiang, Yi'an Insurance has developed rapidly in the past three years.
There are insurance numbers in the Touronghui APP. At the same time, many new insurances sold by this app, such as aviation delay insurance when buying air tickets, accident insurance purchased when traveling, etc., are all provided by Yi'an Insurance.
There is also freight insurance on Pinduoduo, which is basically covered by Yi'an Insurance.
Without Ruixiang, Yi'an Insurance simply cannot compete with companies such as Zhongan Online, which is supported by the "Three Horses", Cathay Property & Casualty Insurance, Xinmei Mutual Insurance and other companies under Leechi Financial Services.
With just a license and no giants to support traffic and scenarios, it is impossible to start this insurance business.
Yi'an Insurance has an Internet property insurance license and can sell medical, critical illness, accident, group, and property insurance products, but it cannot sell life insurance.
Currently, there are no Internet life insurance licenses on the market, and traditional insurance companies are selling life insurance.
Coupled with Ruixiang's own insurance agency and insurance brokerage licenses, as well as the mutual insurance license owned by Diandianchou, Ruixiang's insurance license matrix is basically complete.
Compared with Ali and Penguin's layout in the insurance industry, the main difference lies in life insurance.
Penguin has invested in Hetai Life Insurance, Hong Kong Yinghuajie Life Insurance, and Ari’s related party Yunfeng Financial has acquired Hong Kong Yuntong Insurance.
Zhang Yida has also been looking for targets, but has never found a suitable target.
"How much can Ruixiang give for the valuation of Yi'an Insurance?" asked a shareholder.
Others also cheered up and took this matter very seriously because of their vital interests.
"Compared with ZhongAn Online's current market value of more than 30 billion, we can give Yi'an Insurance a valuation of 20 billion."
After Zhang Yida finished speaking, some shareholders whispered, "ZhongAn Online is undervalued. When it first went public, its market value was over hundreds of billions of Hong Kong dollars."
Zhang Yida sneered, "We don't talk about the past, only the present.
Yi'an Insurance has been able to develop to this day. I don't need to say more about who is shouldering the burden for everyone."
In addition to Jincheng Consumer Finance and Yi'an Insurance, Ruixiang's financial licenses that are not wholly owned or controlled include Xingwang Bank.
This is subject to relevant financial conditions and cannot be fully controlled.
Of course, Ruixiang will not be stupid enough to raise these companies as his own sons. The technical service fees, traffic fees, profit sharing, etc. that should be paid must not be less.
But from a certain perspective, these shareholders are still benefiting from Ruixiang's back. After all, many financial institutions are unable to find their way to the temple.
After some discussions, except for Yin Zhijie, the other shareholders gave Ruixiang 18.33% of their shares in proportion and transferred them, using Ruixiang's capital of 3.666 billion yuan.
The reason why Yin Zhijie can continue to hold 15% of the shares and firmly occupy the second largest shareholder position is mainly because the other party is engaged in finance and can bring some resources to Yi'an Insurance.
Other shareholders, such as Brightoil Cloud Oil and trading companies, have little connection with Yi'an Insurance business and can only serve as financial investment minority shareholders.
…
Ruixiang owns Hanzhou Securities, and its qualification as the lead underwriter for listing on the Science and Technology Innovation Board is naturally that the money will not go to outsiders, and it will underwrite it for the parent group.
Huaxing Capital also has a brokerage license, Bao Guangtou also played a major role in the merger of Ruixiang and Zhonghe, and Zhang Yida also gave them an underwriter qualification.
Bao Guangtou called Zhang Yida and complained directly, "Brother, can you calm down for a while and wait for the listing before investing in shares or engaging in capital operations?
Modifying the prospectus is a very annoying thing, and it also delays the listing time."
Zhang Yida didn't feel that Bao Fan had offended him. He knew that the other party was a sweetheart, so he smiled and replied, "Don't worry, all mergers and acquisitions have stopped, and there won't be anything like this again."
In addition to Bao Fan, Zhang Yida also asked Lan Lan to notify other underwriters and ask them to modify and update the prospectus.
Although the major securities firms and investment banks had some complaints, for the sake of money, they continued to work hard after a few words of criticism.