Recalling the evening of January 4, 2019, Hangzhou Jianbing Network Technology Co., Ltd. (hereinafter referred to as "51 Provident Fund"), the parent company of 51 Provident Fund, was eager to try out on HKEx.

However, this new company, which was only established in 2014, has been stranded. On July 5, Jianbing’s online listing application materials showed an “invalid” status. It is understood that "invalid" means that the IPO process will no longer continue. If you need to continue listing, you need to resubmit the materials.

In this regard, 51 Provident Fund has stated that the company's listing process is still advancing as planned, and the listing application materials will be updated in accordance with HKEx's public rules and guidelines. Resubmit the prospectus in a timely manner after the application information is updated. The invalidation of application information will not affect the listing plan. The specific update time shall be subject to the announcement on the HKEx website.

More than 70% of the income depends on online loans

In terms of business model, according to the previous prospectus, 51 Provident Fund mainly provides loan convenience services, credit card application services, investment convenience services and diversion Serve. In addition, 51 Provident Fund also provides risk assessment report services, including provident fund credit reports, personal risk assessment reports, social security credit reports, and corporate risk credit reports.

The prospectus shows that on September 30, 2016, 2017, and 2018, the 51 provident fund income was 24.246 million yuan, 111 million yuan, and 101 million yuan respectively; the gross profit was 16.76 million yuan and 77.757 million yuan respectively. yuan, 74.032 million yuan.

In terms of loan scale, as of September 30, 2016, 2017, and 2018, the cumulative loans of 51 provident fund loan convenience services were 2.3 billion yuan, 6.2 billion yuan, and 9 billion yuan respectively; the cumulative number of loans were respectively are 46,000, 146,000, and 209,000; the average loan sizes are 39,000 yuan, 24,000 yuan, and 22,000 yuan respectively, and the average terms of each period are 17.8 months, 17.4 months, and 16 months respectively.

In addition to loan convenience services, its diversion service income has also maintained a rapid development momentum. The prospectus shows that 51 Provident Fund provides information and links to super customers such as non-bank financial institutions and technology companies on the platform, allowing users to divert to the online interface of relevant customers on its platform. At the same time, 51 Provident Fund charges service fees from customers.

It is reported that 51 Provident Fund provides diversion services to more than 90 customers. As of September 30, 2016, 2017, and 2018, the revenue was 1.3 million yuan, 3.9 million yuan, and 12.9 million yuan respectively.

Eligibility is disputed. Eligibility is disputed.

It is reported that the 51 provident fund loan convenience service, which started as a provident fund inquiry business, has been controversial for a long time.

The prospectus also disclosed that failure to obtain authorized provident fund data may affect the platform’s ability to provide provident fund management services, and the ability of provident fund account holders to convert provident fund account holders into users may also be affected. If access is restricted, the platform's business, financial condition and operating results will be materially affected.

In fact, as early as January 2018, 51 Provident Fund received a rectification notice from the Finance Office of the People’s Government of Xihu District, Hangzhou City, requiring 51 Provident Fund to strengthen anti-fraud measures; according to the respective risks and risks of investors Tolerance level, conduct classified management of investors, and provide investors with clear investment risk reminders and other compliance rectifications.

The prospectus shows that 51 Provident Fund has been unable to engage in online lending business in compliance with regulations. The prospectus shows that starting from January 1, 2019, the 51 Provident Fund will take necessary measures to restrict the promotion of new loans in the investment facilitation business until registration is completed and an EDI license is obtained.

Public information shows that EDI is an online data and transaction processing license and one of the basic credentials for online lending companies to engage in business. Only after the local financial regulatory authorities complete the filing and approval will you have the opportunity to apply for EDI and engage in online lending business in compliance with regulations.

However, 51 Provident Fund stated that the above procedures will have little impact on the company, but after a resolution by the board of directors, the company will take necessary measures to avoid promoting new products in the investment facilitation business from January 1, 2019. Loans until registration is completed and an EDI license is obtained

Analysts believe that legal compliance mainly depends on how the data is obtained, whether it is fully authorized by the user, and whether the use meets regulatory requirements. Some lawyers said that if the platform does not explicitly state this and users mistakenly think it is the website or mobile client of the provident fund management department, they are suspected of illegally obtaining citizens' personal information.

The proliferation of "51xx loans"

Among them, the approved small loans include 51 Golden Flash Loan funded by Xiaoyudian Technology, 510,000 Golden Loan funded by Wanda Financial, and 510,000 Golden Loan funded by Gome Financial. 51 Jinmei Dai, 51 Jindai invested by Haier Cloud Loan, etc.

Consumer finance loans are 51 Jinsha Loan invested by Industrial Consumer Finance, 51 Jinyou Loan invested by China Post Consumer Finance, 51 Jin Youdai invested by Immediate Consumer Finance, and 551 Jinying invested by Zhongyuan Consumer Finance loan.

The three bank loans are 51 Xinmiao Loan contributed by China Guangfa Bank, 51 Xinfu Loan contributed by Bank of Nanjing and 5.1 Xinyi Loan contributed by Yilian Bank.

It is understood that the words "51xx Loan" appearing on the 51 Provident Fund platform include Haodai, Kuai Panda, Youqianhua, Yipay, Jie Dongfeng, Cheetah Loan, Doudou Wallet, etc. Among them, many lenders are P2P online lending platforms, and customer service said, “Our platform business is all in cooperation with regular banks or online lending companies.”

In fact, there are many problems with the loan business on the 51 Provident Fund platform. The complaint platform shows that as of now, some of the loan products (including cooperative products) under the 51 Provident Fund have problems such as high interest rates and huge profit collections, and there have been 181 complaints.

Take 51 Gold Small Loan as an example. Mr. Hao stated in the complaint that “51 Gold Small Loan on 51 Fund Manager charges usury, borrowing 7,200 yuan for 12 months, with monthly repayments of 870 yuan, and the annual interest rate is Up to 70". According to the IRR calculation formula, the monthly interest rate of Mr. Hao’s loan is 6 and the annual interest rate is 72.

This article comes from the Internet Financial News Center. Related questions and answers: