With $369 million to take the title of "the king of the oscillation", users of the beijing-based consortous dragon network technology ltd. (hereinafter referred to as the "wing dragon leaf") who make loans are growing rapidly. In fact, however, the “household” of the wing dragon leaf is not strong, and how $369 million in advertising costs are offset is the most immediate issue before it. And behind the huge marketing effort, is this company with the othersP2p platformWhat's the difference
"the king of vision" hit the money high
Founded in 2007, the internet finance platform has been one of the earlier p2p platforms in the country, which received a strategic investment of $900 million in shared ownership in october 2014. Recently, with nearly $370 million in heavy gold, the adverts for gold after the news show exceeded the exclusive title of challenge impossible in the second season of 300 million won by chang anford and became the “platform” for this year's live bid。
The melting of 360 indicates that wing dragon has a two-sided character in viewing advertising events. While raising the brand profile of the wing dragon loan and significantly increasing the number of investors, it is highly likely that, if the platform has limited claims, it will become a financial anchor and increase the operational risks of the platform. In addition, an increase in the number of investors would in turn force an increase in assets, which would be a challenge。
According to the investors, the director of the wing dragon loans said that the huge advertising costs came from controlling shareholders — the union wanted to hold shares — “we are looking at advertising costs, but the figures are still waiting for the final publication. It is the long-term return, not the short-term benefit, that the consortium is committed to wing dragon. Therefore, there is no specific target for performance growth.”
The high-profile behaviour of the wing dragon leaf has brought rapid growth in turnover and user volumes for itself. On november 23rd, according to the wing dragon lender network, the turnover was $17,723 million and the number of users was 24,566,000. On 26 november, the turnover of rmb 17. 7 billion and the number of users of rmb 2. 481 million reached an alarming rate of 100 million per day and 10,000 per day。
The founder's name is wang si-chung
The chairman and founder of the wing yong loan went to beijing in his teens to develop in trade, pawns and loan guarantees。
According to him, in 2005, an occasional opportunity came to notice a website from abroad. This is zopa, a leading global network lending company. On the zopa web site, those who have the money to lend list the amounts, interest rates and the time they want to lend on the internet, some of whom offer relatively low interest rates but have higher creditworthiness requirements for borrowers, while lending conditions may be more flexible if interest rates are higher. At the same time, those in need of funds can compare the “products” of each loan to determine their own programme。
Soon, wang si-chun found a similar site in the united states, prosper. Prosper and zopa are mainly dependent on user fees, and both borrowers are required to pay certain fees。
After two years of market research and policy tests, in 2007 (also according to information for 2008) wang si-chun established the wing dragon loans company, registered in wenzhou, which was rapidly developing after the change of gold in winzhou. In 2010, it was further piloted in shanghai, beijing and wenzhou; in 2012, it was aimed at building national networks。
Join us. The village chief joins us
Unlike many p2p platforms that have roots in cities and branches of expansion patterns, the wing dragon loans rapidly occupy remote rural areas by joining forces, thus achieving rapid expansion。
According to the wing dragon loans network, it has established operational centres in hundreds of cities across the country covering more than 1,000 districts and plans to expand rapidly to 3,000 districts in the future. More detailed information is that the union operators network of wing dragons has been extended to more than 300 municipalities, 1,800 districts and 10,000 townships, making it the first p2p platform in rural lending。
In 2009, the wing dragon leaf began to take a rural route, using a coalition approach to provide loans to farmers, emphasizing the role of rural acquaintances and the local attributes of the association. Wang si-chun has publicly explained that finance itself has geographical and social attributes and that it is difficult to control it in rural areas on the basis of large data alone, requiring integration on and offline。
The wing dragon loan platform requires the länder to register locally companies of an investment and financial nature, which can be divided into city-level and district-level länder, depending on the size of the area of responsibility. The wing dragon loan requested the union to conduct a survey of borrowers' home visits and winding information, which was submitted to headquarters for a second review of the material. Following the final audit, headquarters issued a single bid for the loan. Disbursements are made from headquarters after completion. In order to prevent lax controls, such as overdue and bad debts on loan projects, the union is responsible for collecting and advancing funds。
Journalists have learned that the association of the wing dragons is mostly engaged in local undertakings, micro-credits, etc., and has better knowledge of local private financial markets. By charging membership fees and bonds, the wing dragon loan binds the association to a risk transfer. Accompanimentists rely on the brand endorsement of wing dragons to rapidly expand the market。
According to the wing dragon lenders network, loans issued by the platform are mostly for cash crop cultivation and livestock farming, for a single period of between 60,000 and 90,000 yuan for 6 and 12 months。
Through this model, it has achieved 95 per cent of the funds allocated to rural finance, which can better address the financial needs of rural growers。
In response, 360 analysts have stated that joining forces does allow companies to expand rapidly, but the moral hazard of joining forces is a problem that must be faced by the platform。
Analysts say their business model is risky
The loan rate of the wing dragon loan platform to the three farmers is generally around 18 per cent. The wing dragon lenders network, on the other hand, showed that the return on investors ranged from 5. 6 per cent to 12. 1 per cent. In response, one of the directors of the e-credit house revealed that, although almost all platforms claimed to be information intermediaries, in practice, the platform acted as a credit broker in the broader context of unbroken and intense competition, and that it continued to assume the principal and expected returns to investors in the event of overdue or bad debts。
In the view of the person in charge, the three-farm loan margin of the wing dragon loan was narrow, with little or no earnings. At the national level, most platforms have a margin of over 12 per cent. In turn, the operating costs of wing dragons are high. Wing dragon has operating centres where loans are granted, lack of effective personal information in traditional rural letters, and although line-down, collection and so forth are done by affiliated firms, the costs are higher, and the share of the proceeds of the wing dragon loan is shared by the associated firms, and the share of the proceeds is not very low. Moreover, the cost of management can be high in the country's large-scale association system。
According to winglong, “the company has not yet made a profit and, in the practice of plowing rural internet finance, has encountered `many difficulties and complex problems requiring specific analysis'.”
In addition to credit risk, zhang yexia, senior research fellow, yingqin, believes that the negative rate of loans is high, based on unexpected factors such as climate change and epidemics. These risks can be channelled to the wing dragon loans in the event of large-scale bad debts, difficulties in collecting and inability to pay. The investors did not recognize the group as a group, but rather as a wing loan, in which only advertising, regardless of whether it was paid or ultimately paid。
