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HONG KONG, Oct 19, 2015 - (ACN Newswire) - China Success Finance Group Holdings Limited ("Success Finance" or the "Group"; Stock code: 3623.HK), China's first Hong Kong-listed non-state-owned investment and financial service provider with financial guarantee business as main body for small and medium-sized enterprises ([SMEs]), is pleased to announce that the Group has established an indirect non-wholly owned subsidiary, Foshan Success Financial Services Outsourcing Limited("Success Finance Services Outsourcing") on 15 October, to engage in providing real estate financial services("Property Financing Business"). The Group has also signed two strategic cooperation agreements on 18 October with Foshan Branch of Bank of China Limited and Foshan Branch of China Construction Bank Corporation Limited respectively, to mainly cooperate in housing mortgage business of the "Property Financing Business".
The Group through Shenzhen Qianhai Success Housing Wealth Management Limited, a 100% indirectly-owned subsidiary of the Group, holds 60% of the shareholding interests in Success Finance Services Outsourcing. Upon the establishment of the new company and through the operation of its new business, Success Finance is to officially enter the "Internet + property financing" market. In the meantime, this business has also entered into strategic cooperation with large-sized state-owned commercial banks. Based on the line of credit granted by the competent authorities at higher level for the housing mortgage business, two banks will proactively procure an additional specialized credit line to be granted, which shall be no less than RMB100 million initially. And they will strive to increase the business scale to RMB1 billion within 3 years for carrying out the housing mortgage business of the "Property Financing Business". The recognition and strong support from the banking authorities will provide substantive guarantee for the "Property Financing Business", pushing it from an innovative concept into a practice with growth.
Mr. Zhang Tiewei, Chairman and Executive Director of Success Finance, said, "The Group has been exploring the business potential of 'Internet +' for some time and have taken our first step into the property financing industry, which we believe is still in the fast-growth stage. The demand for property financing is expected to thrive continuously under less and less restrictive property policy.
The burgeoning development of the internet has changed the landscape of traditional industries, as well as investment methods and people's lives, becoming a revolutionary influence that cannot be readily eradicated. As such, the combination of internet and property financing is inevitable; using the online platform to provide healthy capital flow in the property market, and the added advantage of value protection of that property in turn provides the environment that online financial products need, creating a win-win situation."
Online and offline drivers
The "Property Financing Business" solves problems of property investment and financing
Adapting to the trend, Success Finance will strive to build the "Property Financing Business". Its "Internet + Property Financing" model is set to trigger a new reform on property transaction and investment. The "Property Financing Business" will focus on the demand in the vertical property industrial chain, achieving a partnership model with property agents and breaking into the close environment of the traditional property industry. Through online and offline drivers, the new business strives to resolve problems of property investment and financing. It plans to combine online P2P transactions with offline property transactions: a borrower who has a short-term property financing need can be recommended to the "Property Financing Business" by a professional property agent. After strict credit assessments, the "Property Financing Business" would then send the message of financing to general investors through the P2P platform, and let them decide whether they want to take part in the investment. On the other hand, the "Property Financing Business" supervises the entire process of the property transaction. Borrowers need to repay the capital and interest in installments, while investors may collect both the principal and the interest income not lower than the average market level when they are paid. Within the entire transaction process, the "Property Financing Business" also plans to provide guarantee and mortgage services.
In the era of the rapidly-growing internet, the "Property Financing Business" has been developed to remove the weakness of traditional property industry and to satisfy the real demand of borrowers and investors. It aims to build a direct, highly efficient and convenient one-stop bridge between customers and financial institutions. For home buyers, a short-term shortage of funds and the slow processing of bank housing mortgage loans are no longer problems. For home sellers, lack of money for redemption and long waits for collection of the remaining balance after property disposal are no longer problems. For investors, the fund threshold for property investment is to be greatly lowered. The "Property Financing Business" not only can address small idle funds, but also carries the chance of providing an fair investment revenue.
Overall business realizes synergetic development
The "Property Financing Business" helps to build an internal profit earning mode
With Foshan as the starting point, the Group plans to gradually expand the "Property Financing Business" throughout the Pearl River Delta region as well as across China through acquisition, investment by purchase of shares, joint venture and setting up branch offices. It plans to realise a strategic goal of multi-city coverage and multi-party cooperation, as well as building a transaction platform of billions RMB.
There is no doubt that Success Finance's strategic blueprint is certainly not limited to the "Property Financing Business". Starting from 2014, the Group has begun initiating transformation of its business model, gradually expanding from dual businesses of finance guarantee and small loans at the time of listing to a comprehensive financial service platform which also covers financial consultancy, financial leasing and equity investment services. The establishment of the "Property Financing Business" has marked not only the Group's successful foray into a newly prosperous sector, but also an official commencement of the wealth segment of Success Finance. It is expected that the development and effective operation of the "Property Financing Business" will provide a large number of high quality mortgage assets and long-term effective support for the Group's dual drivers of capital and assets built in a long time. Besides, it can find many quality customers among both sellers and buyers, as well as create growth opportunities for the Group's existing businesses including financial guarantee, micro credit, financial consultancy and financial leasing. Meanwhile, the Group's existing businesses can be involved in cooperation with the "Property Financing Business" and provide strong support for it. Under such circumstance, the Group's businesses is expected to realize tremendous synergies and momentum, so as to create a positive financial ecosystem around the core of serving brokers, and develop a sustainably internal profit earning mode for Success Finance.
Mr. Chen Hui, Executive Director & Chief Executive Officer of Success Finance, said, "The integration of finance and the internet presents opportunities as well as challenges. Success Finance's 'Property Financing Business' aims to provide a more secure, flexible property financing service with a lower entry threshold and high revenue to customers by stringent offline examination. In the meantime, the 'Property Financing Business' will be driving the Group's overall business transformation and upgrade, which will present a deeper strategic significance of the investment in this business segment. The year 2015 is set to create a bumper harvest for Success Finance. We believe that the synergetic development of the Group's overall business will generate a huge profit, set a new strategic direction and create scope for future business growth."
Contact:
Strategic Financial Relations (China) Limited
Ms. Karen Hung Tel: (852) 2864 4845 karen.hung@sprg.com.hk
Ms. Angel Li Tel: (852) 2114 4954 angel.li@sprg.com.hk
Ms. Ella Lu Tel: (852) 2114 4968 ella.lu@sprg.com.hk
Topic: Press release summary
Source: China Success Finance Group Holdings Limited
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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