Sector: Consumer Credit
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.