Ant's Consumer Finance Unit Ranks Last with Net Loss of over USD 163 million in 2021

Financials Author: Yijuan Li May 09, 2022 05:24 PM (GMT+8)

The top three Chinese consumer finance firms contributed over 60% of the total net profit in 2021, according to a list compiled by business media Jiemian

Finance, consumer finance

The consumer finance arm of China's Ant Group (Chinese: 蚂蚁消金) recorded a net loss of CNY 1.1 billion (USD 163.68 million) in 2021, ranking in last place in the 27 consumer finance firms that disclosed data, a media report found.

Established in 2021, Ant's consumer finance unit focuses on the consumer credit business, and its micro loan service Huabei (Chinese: 花呗), literally "spend," has become Ant's exclusive consumer credit brand.

According to the business media outlet Jiemian, among the nine consumer finance firms backed by internet companies, only DiDi's Hangyin Consumer Finance (Chinese: 杭银消费) entered the top 10 companies in terms of net profit. The consumer finance units of the retailer, the insurer Ping An, and Ant Group reported net losses.

The report also showed the top three Chinese consumer finance firms contributed over 60% of the total net profit. Merchants Union Consumer Finance (Chinese: 招联消费金融), a wholly-owned subsidiary of China Merchants Bank and China Unicom, topped the performance list for three consecutive years, followed by Xingye Consumer Finance (Chinese: 兴业消费金融) and Mashang Consumer Finance (Chinese: 马上消费金融).

Specifically, Merchants Union is the first consumer finance firm that booked a net profit of over CNY 3 billion. Xingye logged a net profit of CNY 2.23 billion, and Mashang announced CNY 1.382 billion last year.

As of 2021, the assets of the 23 consumer finance firms that disclosed data amounted to CNY 579.859 billion. Merchants Union boasted CNY 150 billion, making it the only firm with assets exceeding CNY 10 million. Xingye had CNY 61.79 billion, and Mashang owned CNY 61.091 billion in assets.