Group 1 - Haier Consumer Finance successfully issued 1 billion yuan in financial bonds at a record low interest rate of 2.20%, following a previous issuance of 1.5 billion yuan in ABS with a rate as low as 2.03% [1] - In the first half of 2025, seven licensed consumer finance institutions raised a total of 12.1 billion yuan through financial bonds, with the issuance amount being less than half of the 25.5 billion yuan raised in the same period of 2024 [2] - The financial bond market is becoming a key tool for leading consumer finance companies to optimize their asset-liability structure, with Haier Consumer Finance indicating that the funds will be used to supplement long-term financing [2] Group 2 - Asset-backed securities (ABS) have become an important tool for consumer finance companies to improve capital turnover efficiency, with several companies issuing nearly 10 billion yuan in ABS this year [3][4] - The continuous decline in ABS issuance rates reflects market recognition of quality consumer credit assets, with rates dropping from 2.50% to 2.04% within a year for Zhongyuan Consumer Finance [3] - The funds raised through ABS are primarily used for new personal consumption loans, targeting underserved customer segments [3] Group 3 - Despite the expansion of financing channels and decreasing costs, the consumer finance industry faces challenges, including a decline in short-term consumer loans, which fell below 10 trillion yuan [5] - In May 2025, eight consumer finance institutions transferred over 8 billion yuan in non-performing assets, indicating a focus on asset disposal [6] - Companies are also seeking to replace high-cost liabilities with low-cost financing to strengthen their financial positions [7] Group 4 - The financing market in the first half of 2025 exhibited a "Matthew effect," with several institutions building competitive barriers through diversified financing channels [8] - Haier Consumer Finance raised a total of 12.2 billion yuan through six ABS and two financial bond issuances, with financing costs decreasing significantly [8] Group 5 - The financing environment for the consumer finance industry is expected to continue improving, with more companies likely to issue ABS and financial bonds regularly [9] - Regulatory focus is shifting towards enhancing consumer finance companies' customer acquisition and risk control capabilities, emphasizing the need for reasonable loan interest rates [9] - The future competition in the consumer finance sector will shift from scale expansion to refined operations, necessitating a transformation in business philosophy to effectively utilize low-cost funds [10]

Core Viewpoint - Haier Consumer Finance plans to issue its first financial bond of 2025 with a scale of 1 billion RMB, marking another step in its financing efforts for the year [1][9] Financing Activities - The company previously issued 1.5 billion RMB in asset-backed securities (ABS) in March 2025 [1][9] - The financial bond will be issued from June 18 to June 20, 2025, with a three-year term and a minimum subscription amount of 10 million RMB [7][9] - The funds raised will be used to supplement medium to long-term capital and optimize the asset-liability structure [9][10] Company Background - Haier Consumer Finance was established in December 2014 and is the first consumer finance company in China initiated by an industrial group [8] - The company is backed by major shareholders including Haier Group, with a shareholding structure of 49%, 25%, 16%, and 10% respectively [8] Financial Performance - The company reported revenue growth from 1.71 billion RMB in 2022 to 3.17 billion RMB in 2024, with net profits increasing from 274 million RMB to 445 million RMB during the same period [10] - Total assets grew from 21.12 billion RMB in 2022 to 29.35 billion RMB in 2024, with loan balances increasing correspondingly [10] Business Strategy - The main business includes online cash loans and offline installment services, with online loans accounting for 81.90% of the total in 2024 [11] - The company plans to restart its home appliance installment business and enhance collaboration with the parent group [11] Risk Management - The company reported non-performing loan ratios of 2.35%, 2.34%, and 2.15% for the years 2022, 2023, and 2024 respectively [13] - Provision for loan impairment losses increased to 1.61 billion RMB in 2024, reflecting a 20.77% year-on-year growth [13] Market Trends - The issuance of financial bonds has become a common practice among consumer finance companies to strengthen their capital base and reduce financing costs [15] - In 2025, several consumer finance institutions have already issued a total of 10.6 billion RMB in financial bonds [14]