Annual profit margin 18%-22% small loan company not a bad cake

Zhejiang Paradise Silicon Valley Entrepreneurial Group Co., Ltd. is a company specializing in High-tech industry, the venture capital investment institutions, registered 200 million yuan. Mainly engaged in industrial investment and development, High-tech enterprises and projects of the venture capital investment, investment in education for the Enterprise to provide investment consulting and management, accounting consulting (except for national prohibitions or Restrictions on advisory projects). The company is composed of nine shareholders, for domestic well-known enterprises and corporate senior management.

Recently, the government of Zhejiang Province, said the work of the reporter interviewed is that "paradise Silicon Valley is applying for the launch of a small loan company, the United Hangzhou City several well-known enterprises." Related materials have been reported to the relevant regulatory authorities, pending approval. ”

Paradise Silicon Valley Equity Investment Management Group for the largest equity investment and asset management company in Zhejiang Province, as of the end of 2011, Paradise Silicon Valley launched 62 of various funds, practically in place capital of nearly 5.3 billion yuan.

May 18, Paradise Silicon Valley company related to reporters confirmed the preparation of microfinance companies, but said "because the matter is not clear, inconvenient to receive specific interviews."

"Paradise Silicon Valley set up a small loan company, in fact, only private equity on the small loan Company's enthusiasm of the dominant, private and small loan companies before the existence of cooperation." In the inner circle, the company intends to set up a fund to buy the city firm, guarantee the stock right, the Wenzhou gold change, now also consider to set up a small loan company. "A private equity partner in Zhejiang Province said.

March 28 this year, "Zhejiang Province Wenzhou financial comprehensive reform pilot area overall plan" approved by the State Council, "eligible small loan company can be transformed into village and township banks" to the capital market appetite, more than the listed companies in Jiangsu and Zhejiang began to launch a small loan company.

"But PE launched a small loan company mainly fancy, is not a small loan company transformed into the possibility of village and township banks, but the small loan company itself profitability, and the reform of Zhejiang small loans after the approval and access conditions for relaxation." "According to their research, the private equity Partners said that in the past year, Zhejiang Small loan Company's annual profit margin is generally between 18%-22%."

In stark contrast, PE's IPO returns have also fallen sharply, matched by a new low price-earnings ratio. Wind data show that from January 2011 to March 2012, the average book return on institutional investors ' IPO exit has slipped from 13.46 times to 3.09 times times. PE "exhibition Industry" momentum is obviously improved.

In the case of Paradise Silicon Valley, in September 2011, it took the "industry + capital" model to theirs Kang husbandry for business transformation, explore new projects outside the IPO.

In the case of Zhejiang, at the end of 2011, the provincial government issued "on the in-depth promotion of microfinance companies Reform and development of a number of views", moderately relaxed the small loan companies access conditions. For example, the ceiling for first-time stakes in the main sponsor and its associated shareholders expanded to 30%.

"But for the average small and medium-sized PE company, the small loan company is still a difficult to eat cake." "Shenglen, chairman of Shanghai Sound Innovation Capital Company, said.

PE is involved in small lenders in two ways, he says. One is to raise capital equity acquisition, one is to launch the establishment of small loans companies, "two ways, PE institutions will face the threshold requirements of profit years, net assets, and many small and medium-sized PE is not only limited in scale, but also in the last two or three years established."

Take "Zhenjiang Rural microfinance Company (management measures)" as an example, for the main sponsor of microfinance companies to meet: the net assets of more than 30 million, the asset-liability ratio is not higher than 70%, the last two years of continuous profit, and two-year cumulative total net profit of more than 10 million yuan. General shareholding enterprises also require, "with two consecutive years of continuous profit." After the year-end distribution, net assets to reach the total asset of more than 30%, equity investment balance in principle no more than 50% of the company's net assets.

Shenglen said the small lenders, which had prospered under tight credit, faced enormous pressure from commercial banks as credit eased, "at the same time, with the rapid expansion of small-loan companies over the last year, the increase in competition will also create pressure on earnings".

According to the People's Bank of China Microfinance Data Statistics Report, as at the end of March 2012, the country has a total of 4,878 small loans, and the first quarter of last year, the data is only 3027, a year a small loan company rose more than 1800.