Shenzhen WeZhongCredit Technology Co., Ltd. (hereinafter referred to as “WeZhongCredit”), previously known as the “first stock of credit investigation” in the industry, has suddenly suspended its listing process on the science and technology innovation board.
Released on February 2, the Shanghai stock exchange, according to the disclosure of information on February 1, 2021, micro the letter by the issuer and its controlling shareholders, actual controllers for alleged embezzlement, bribery, embezzlement, misappropriation of property or disruption of the socialist market economic order, or probe into alleged corruption and illegal or other important information disclosure relates to national security, public safety, ecological safety, production safety and public health in the areas of major illegal behavior, by investigation or by judicial organs initiate an investigation, has yet to be solved. In accordance with Article 64 (1) of the Audit Rules, the Exchange suspends the audit of its offering and listing.
On February 3, Wechat responded that the matter involved the individual behavior of the actual controller, who did not participate in the operation of the company at ordinary times, and the company’s operation is normal at present.
Even so, the actual controller with 41.59% of the voting rights is suspected of a number of major illegal acts, and the listing process of WeZhongxinke is full of uncertainties.
The listing process has entered the sprint phase
WeZhongxin Branch, a company whose name makes people easily associate with QQ Music’s WeBank, has nothing to do with WeBank. Instead, it is in the arms of Alibaba, which is opposite Tencent’s camp.
Yunxin Venture Capital, a subsidiary of Ant Financial, paid 430 million yuan in July 2018 to subscribe for 8.22 million yuan of its increased registered capital, holding 26 percent of its shares. Before Wechat’s IPO, Yunxin Venture Capital still held 25.9% of its shares, the second largest institutional shareholder outside the actual controller.
The reason why Ant Group directly took the leader in the field of enterprise credit investigation is to complement its C-end credit investigation in large probability and fill the gap in its B-end credit investigation.
Originally, micro public letter section listing process has entered the sprint stage.
On December 7, 2020, the listing committee of the science and innovation board of the Shanghai Stock Exchange held the 115th session of the review, and the review results said that WeWeChing Branch met the issuing conditions, listing conditions and information disclosure requirements.
But on municipal party committee referred to in the site information problem, micro sun Hao actual control people add the letter, signed statement on December 30, 2019, made it clear that it will vote in the general meeting of shareholders to buy back the action items, the items can’t through the action of, at the same time sun Hao tian will negotiate with investors by its obligation of repurchase, the statement is also in the investment agreement signed after the consistent.
Shanghai Municipal Party Committee requires the representative of WeWexinke to clarify whether WeWexinke and its actual controller Sun Haotian have explicitly informed the investors of the above meaning when signing the Shareholder Agreement, and the investors have no objection. And please sponsor representative to express a clear opinion.
According to the prospectus of WeZhongXin Branch, Sun Haitian controls 41.59% of the voting rights of WeZhongXin Branch through 32.04% of the voting rights of China Resources Sifang Control Company, 7.73% of the voting rights of YiYin No. 1 Control Company and 1.82% of the voting rights of Communist Youth City GuoJun Control Company. He is the actual controller of WeZhongXin Branch.
Obviously, Sun Haotian, who has 41.59% of the voting rights, has absolute influence on WeZhongXin Branch.
Now the Shanghai Stock Exchange put forward to “suspend” the listing process of WeZhongXin Section. In view of the influence of Sun Haotian, and all the suspected illegal acts, it is not clear whether the subsequent “suspend” will change into “terminate”.
There are worries about the core business
Put aside the actual controller Sun Haotian was put on record, micro public letter section all the way behind the worries have been singing.
On December 7, 2020, the listing committee of science and technology innovation board required WeWeXing to comprehensively revise the contents of core technology and business model in the prospectus by using concise language and combining with some cases in accordance with relevant regulations.
In the on-site inquiry link, Shanghai Municipal Party Committee also required WeChat to explain the four key issues:
1. The ratio of the data applied in the credit investigation business of WeWechat comes from the collection method of suppliers and the supply method of customers.
2. Specific requirements and main contents of the data collected by the data collection service provider, whether the data collection service provider has the data collection qualification stipulated by the state, and how to guarantee the legality and compliance of the data collection.
3. If there is any data provided by the customer, whether the application has relevant compliance application and management requirements; if so, how to check the compliance subsequently?
4. Whether the qualification of the service objects is verified according to relevant laws and regulations, the issuer itself and the organization providing data to the issuer, and whether there is legal risk in obtaining data.
As credit service of science and technology, micro the letter mainly for banking financial institutions to provide credit scenario enterprise credit, credit reports, credit risk decision system integration solutions, such as credit technology products and services, power Banks build pure credit, online mass, intelligence, automation, micro, small and medium enterprises credit products. At the same time, it also provides non-bank customers with credit technology products such as enterprise authentication products and transaction verification products under commercial transaction scenarios.
At the customer level, the company basically serves commercial banks.
As of June 30, 2020, the company’s main customers included six major state-owned banks, according to its prospectus. There are 9 joint-stock commercial banks, 12 private banks and 32 city commercial banks. The products mainly provide commercial banks with credit science and technology, risk decision, credit science and technology integration of three businesses.
The contributions of the top five customers in the first quarter from 2017 to 2020 were 26.346,900 yuan, 47.336,700 yuan, 84.905 million yuan and 16.678,400 yuan, respectively, accounting for 81.75%, 68.25%, 55.04% and 52.47% of the total revenue of each period.
It can be seen that although the proportion of the top five customers in the revenue has declined, they still account for more than 50%, with a high degree of concentration.
The company’s main business products are mainly divided into credit science and technology, risk decision-making, credit science and technology integration, and so on.
From the perspective of service content and product provision of various services, the three major services show the characteristics from easy to difficult. Credit investigation technology service is the most basic, and risk decision-making needs to be involved in the bank’s specific business, while the integration of credit technology is like the combination of credit investigation technology and risk decision-making.
Consumer found that the most basic credit science and technology services have contributed the largest share of the company’s revenue.
According to its prospectus data, from 2017 to Q1 of 2020, the contribution revenue of credit information technology business was 31.3906 million yuan, 60.332,000 million yuan, 109.672 million yuan and 20,659,400 million yuan respectively, and the proportion of credit information technology business in each period was 97.39%, 86.99%, 71.1% and 64.53% respectively.
In the early stage of the establishment of the company, limited by resources and professional degree, it will concentrate on the superior strength to expand the relatively basic credit investigation technology services, which correspondingly leads to a relatively high proportion of the revenue of this business.
With the accumulation of experience and the increase of resources, it has gradually expanded its main business structure and the other two businesses which require higher technical ability and professional degree.
Correspondingly, it also makes the credit science and technology service revenue proportion has declined, but from the absolute amount of revenue contribution, credit science and technology services is still the “ballast” business revenue. Play a supporting role in the company’s expansion of other businesses.
With more and more financial technology enterprises, industry giants pay attention to the credit science and technology of this huge cake, the competitive pressure facing WeZhongxin Branch is self-evident.
In this case, if we do not expand the revenue scale and revenue ratio of the other two businesses in addition to the credit investigation business as soon as possible, it will inevitably impact its business after more competitors attack the business of credit investigation technology.
With products heavily dependent on data quality, policy risks are hard to ignore
The products provided by the company are mainly credit investigation products, so it is inevitable to use a variety of data. As a direct participant of 9 provinces and cities’ banking and tax interactive platform in the early stage, the company enjoys natural advantages and can directly obtain tax data of small, medium and micro enterprises from the banking and tax interactive platform.
But as the policy of “no. 113” and release, asked the silver tax directly connected, the company tax-related data to rely on to maintain product competitiveness, is no longer a separate use of resource, through the silver tax interactive platform, in the past the tax-related data obtained the direct mode is no longer work, need to through bank this channel for the corresponding tax related data.
This makes the direct mode, not only the company’s labor costs have increased, more importantly, the direct mode will increase a barrier, and lose some customers.
At the same time, “No. 113” also desensitizes the tax-related data requirements of the direct connection mode. Although the scope of desensitization has not been announced for the time being, desensitization data will undoubtedly affect the quality of the company’s credit investigation technology service, and then affect the company’s business.
In addition, the direct model, make domestic trade can have the same credit qualification of enterprises through cooperation with bank, obtain the corresponding tax related data, and provide the corresponding credit report, not through the bank and the company ever obtain tax-related data model no longer works, also suggests companies and competition in the same starting line.
In this case, the company will undoubtedly intensify the industry competition, and then affect the company’s business.
Therefore, it is not difficult to find through the above that the credit investigation industry is naturally affected by the policy factors are particularly large.
Especially related to data protection, because the company is not only involved in the use of tax data, but also the use of enterprise business data provided by customers, as well as the industrial and commercial data, judicial data and other data collected by third-party suppliers.
How to ensure the security and rationality of the data used is also a problem that B-end credit investigation enterprises have to face.