Consumer loan funds were misappropriated, and Xiaomi Consumer Finance received regulatory fines


On September 19, the Chongqing Banking and Insurance Regulatory Bureau issued a fine of 500,000 yuan to Chongqing Xiaomi Consumer Finance Co., Ltd. (hereinafter referred to as “Xiaomi Consumer Finance”) and warned a relevant responsible person.

The administrative penalty decision shows that the main violation of laws and regulations (cause of the case) is that the post-loan management was not in place, and consumer loan funds were misappropriated. The Chongqing Banking and Insurance Regulatory Bureau fined Xiaomi Consumer Finance 500,000 yuan and warned the responsible person Ai Hao.


  In May 2020, Xiaomi Consumer Finance was approved for opening, with a registered capital of 1.5 billion yuan, making it the 26th licensed consumer finance company in China. According to the official website of Xiaomi Consumer Finance, the current product matrix includes cash installments, consumption installments, and revolving loans.


  According to Tianyancha, the largest shareholder of Xiaomi Consumer Finance is Xiaomi Communication Technology Co., Ltd., holding 50%, the second largest shareholder is Chongqing Rural Commercial Bank Co., Ltd., holding 30%, and the other three shareholders are Chongqing Jinshan Holdings (Group) Co., Ltd., Chongqing Dashun Electric Appliances (Group) Co., Ltd., and Chongqing Golden Crown Jielai Hardware and Electromechanical Market Co., Ltd.

In February 2022 , Xiaomi Consumer Finance completed the first syndicated loan raising, raising 680 million syndicated loans. In May, Xiaomi Consumer Finance was officially approved to enter the national interbank lending market.


  On August 30, Chongqing Rural Commercial Bank disclosed its second quarterly report for 2022, mentioning the performance of the associate company Xiaomi Consumer Finance. As of the end of the reporting period, Xiaomi Consumer Finance had total assets of 9.661 billion yuan and net assets of 1.412 billion yuan; the net loss in the first half of the year was 93.196 million yuan, an increase of 43% year-on-year, and the net profit in 2021 was 3.68 million yuan.

The legal representative of Xiaomi Consumer Finance is Hong Feng, vice president of Xiaomi Group, and the president is Ji Chunjiang.


  Hong Feng is currently the legal representative and chairman of Xiaomi Micro Loan Co., Ltd. Previously, he also served as the legal representative and chairman of Tianxing Digital Technology Co., Ltd., onechanges, and the legal representative and chairman of the board have changed from Hong Feng to the vice president of Xiaomi Group. and Chief Financial Officer (CFO) Lin Shiwei.


  Lin Shiwei once said in the earnings conference call in the fourth quarter of 2021 that the main personal consumer loan product "Suixingzhuan" under the former Tianxing Digital Technology Co., Ltd. was changed from Xiaomi Small Loan Company to Xiaomi Consumer Finance Operation.


  On August 9, the Chongqing Banking and Insurance Regulatory Bureau approved Ji Chunjiang's qualification for the post of President of Xiaomi Consumer Finance. In March of this year, Wang Chuan, co-founder of Xiaomi Group, resigned from the directorship of Xiaomi Consumer Finance, and Ji Chunjiang served as a director for the first time.


  According to Xiaomi Group's 2022 second quarter financial report, the revenue of the Internet service segment was 6.97 billion yuan, a year-on-year decrease of 0.9%, mainly due to the decrease in revenue from the financial technology business, which was partially offset by the increase in revenue from TV value-added services and game business.


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