On the morning of October 11, Guangzhou Lakala On-line Small Loan Company formally settled down at the Non-governmental Finance Street of Guangzhou. Sun Taoran, chairman of Lakala Holding Group, announced that Lakala has been changed into a holding group, which will be divided into Lakala Payment Group and Kaola Financial Service Group. Sun said that the headquarters of Kaola Financial Service Group will be established in Guangzhou, while the Lakala Payment Group is accepting pre-listing tutoring and strive to summit the application for IPO at the appropriate time.

 

It's worth noting that, in the first half of the year, Lakala tried reverse merger, planning to make Lakala listed by merging itself into Tibet Travel through the restructuring of the latter. However, due to a variety of reasons, such as the adjustment of supervision policies and stricter control of cross-industry restructuring, the plan was inquired for two times by Shanghai Stock Exchange. Finally, Tibet Travel stopped the plan to merge and acquire Lakala with RMB11 billion.

 

Sun said that Lakala has been prepared for being listed and it needs to be listed. In the future, it will continue to strive for being listed in an appropriate way at appropriate time. “Personally speaking, I expected very much that it can be listed at the A-share market, because our market and users are all in China.”

 

Sun told that Lakala Holding Group is developing toward an Internet service entity with licenses for all related operations. Currently, the business Lakala deals covers payment, financial management, credit investigation, financing and community finance, with more than 20 licenses. Lakala is cooperating with Legend Holdings to jointly establish a security company, namely Lianxin Securities, and also preparing to establish a consumer finance company. In addition, Lakala has been in close cooperation with Legend Holdings to make studies on applying for licenses for private banks.

 

This year, Lakala has shown a fast and all-around development trend in a variety of fields. As predicted by Sun, by the end of the year, it may see a net profit after tax of RMB600 million, more than that (RMB450 million) estimated at the time of planning restructuring for listing. Sun said that all the operations of Lakala in the field of finance entered an explosive development period this year and the objectives on profit of 2016 have been fulfilled in the first half of the year. the credit operations have shown the strongest development trend. In the first half of the year, the number of applicants nearly increased by five times, and the accumulated loans reached more than RMB130 billion. The loans granted in the first half of the year increased by more than 150% over the second half of last year. The bad debt rate was kept below 2%.

 

Sun said, “After the separation, Lakala Payment Group and Kaola Financial Service Group will become independent systems. The group headquarters is located in Beijing, while Lakala Payment Group will focus on Shanghai and Kaola Financial Service Group will focus on Guangzhou.” It was learnt that, Xu Qing, a founding member of Lakala, will hold the post of chairman of Kaola Financial Service Group, and Wang Guoqiang, former high management of Huarun Bank, will hold the post of president of the group. The group will consist of small loan, financial leasing, factoring and rating businesses and other businesses under supervision of local offices for financial work. Guangzhou Lakala On-line Small Loan Company is a wholly-owned subsidiary of Lakala.

 

Source: Translated from Invest Guangzhou, October 12,al offices for financial work. Guangzhou Lakala On-line Small Loan Co 2016