Capital Watch
YX Asset Recovery Ltd.
Company Profile
Sector: Consumer Credit
Industry: FinTech
Sub-Industry: Recovery of Receivables
YX Asset Recovery Ltd. is a leading provider of delinquent consumer debt collection in China, operating nationwide. According to independent market analyst iResearch, YX is the largest provider of delinquent credit card receivables recovery service in China in terms of the total value of receivables under collection and the number of collection specialists employed as of June 30, 2019, and total commission for the six months ended June 30, 2019.
The company aims to be a pioneer in establishing a transparent Chinese consumer credit recovery industry by helping borrowers rebuild credit, maximizing financial institutions' recovery and nurturing a new generation of talent, according to the prospectus filed with the U.S. Securities and Exchange Commission.
YX collects delinquent consumer receivables such as credit card receivables originated by commercial banks, and online receivables originated by online consumer finance companies. The clients engage YX to collect delinquent consumer receivables and the company primarily generates commission-based fees based on its collection success.
The company focuses on the collection of tertiary receivables. For the six months ended June 30, 2019 it derived 72.3% of its revenues from its credit card receivables collection services and the rest from online financing providers. In the full year 2018, 80.5% of YX’s revenues were generated from credit card receivables recovery.
For the six months ended June 30, 2019, and the years 2018 and 2017, YX reported revenue of $75 million, $110 million and $87 million, respectively. Net income was $4.7 million in the first half-year in 2019 and $18.1 million in 2018, up 13% year-over-year, according to the filing.
The company has an experienced team. Its founder, Man Tan, has more than 15 years of experience in collecting delinquent consumer receivables. As of June 30, 2019, YX had 10,915 full-time collection specialists in its operating centers located in 29 cities in China, which include 1,109 collection specialists who have years of experience and are qualified to conduct direct negotiation with debtors.
Corporate Information
Address:
Xincheng Science and Technology Park Building 7
West Yuelu Road No. 588 Changsha 410205,
Hunan Province, People's Republic of China
Phone: +86 731-81829999
Email: yongxiong@hnyongxiong.com
Key Executives
Man Tan, CEO and Chairman
Mr. Tan has served as the chief executive officer and the chairman of the board of YX since 2015. Mr. Tan currently serves as a director of Tulane-YX International Credit Law Research Center, the vice president of the Research Association of the Litigation Law Society of Hunan Law Association, a director of the Anti-Corruption Rule of Law Research Institute of Hunan Province and a part-time professor of Hunan Normal University Law School and Xiangtan University Law School. Mr. Tan received an LL.B. degree from the Law School of Xiangtan University in 2000, where he is currently a Ph.D. candidate.
Joe Huaqiao Zhang, Executive Vice Chairman and Director
Mr. Zhang currently serves on the board of six publicly listed companies on the Stock Exchange of Hong Kong. From 2008 to 2011, Mr. Zhang served as the deputy head of China investment banking of UBS AG, where he was the head of research from 1999 to 2006. Mr. Zhang received a bachelor's degree from Zhongnan University of Economics and Law, formerly known as Hubei Institute of Economics and Finance, in 1983, and a master's degree from the Australian National University in 1991.
Xiong Zhou, Executive Vice President
Mr. Zhou in charge of business management and quality supervision. Mr. Zhou is also a visiting professor at the Credit Risk Management Institute of Xiangtan University. Mr. Zhou is the brother of Mr. Tan's spouse, Ms. Zhou.
Investor FAQs
1. When was YX established?
YX was founded in 2015.
2.When does YX's fiscal year end?
YX's fiscal year ends on December 31.
3.On which exchange is YX's stock traded and what is the ticker symbol?
YX's American depositary shares (ADSs) are expected to be listed on the New York Stock Exchange with the symbol “YXR”.
4.Who are YX’s underwriters?
CMB International Capital Ltd., Raymond James & Associates Inc., AMTD Global Markets Ltd., SunTrust Robinson Humphrey Inc., Deutsche Bank Securities Inc., China Everbright Securities (HK) Ltd., Wedbush Securities Inc., Prime Number Capital LLC, China Investment Securities Int'l Brokerage Ltd., Guotai Junan Securities (Hong Kong) Ltd., Tiger Brokers (NZ) Ltd. and Fortune (HK) Securities Ltd. will act as the underwriters on the expected IPO.
5.How can I obtain a copy of YX's annual report?
Annual reports are available via this website. All SEC documents are also accessible online through the SEC filings page.
6.Who is YX's U.S. legal counsel?
Zhong Lun Law Firm
7.How many employees does YX have currently?
There are 11,489 employees.
8.How does YX intend to use the proceeds from its IPO?
YX said it plans to use 60% of the proceeds from its offering to enhance delinquent consumer receivable collection operations and increase the number of call centers, 30% to upgrade technology and IT infrastructure and for working capital and general corporate purposes.
9. What is YX's depositary bank for ADSs?
The Bank of New York Mellon
Key Eexcutives
Lei Li, Executive Vice President
Mr. Li is in charge of the department of risk and compliance, field research center, research and development center, and the executive office. Mr. Li is also a part-time professor at the Credit Risk Management Institute of Xiangtan University. Mr. Li received an LL.B. and a master's degree in education from Hunan Agricultural University. Mr. Li is a practicing lawyer.
Kung Chik Chiu, CFO
Mr. Chiu currently serves on the board of directors of China Fortune Financial Group Ltd. and Beijing Enterprises Clean Energy Group Ltd. Prior to joining the YX, Mr. Chiu worked at China Smartpay Group Holdings Ltd. from 2015 to 2017. Mr. Chiu received a bachelor's degree from the University of Chicago in 2008.
IR Contacts
In the United States:
Ben Wang
Financial Analyst
Email: benjamin.wang@capitalwatch.com