Chongqing Xiaomi Consumer Finance Posts H1 Net Loss of $13.47M

Chongqing Rural Commercial Bank, which is listed on the Hong Kong Stock Exchange (HKEx), disclosed on August 25 its latest semi-annual report, also mentioning the performance of its joint venture Chongqing Xiaomi Consumer Finance Co., Ltd., which owns its shares. As of the end of the reporting period, the firm had total assets of 9.661 billion yuan ($1.4 billion) and net assets of 1.412 billion yuan ($200 million). Its net loss in the first half of the year was 93.19 million yuan ($13.47 million), while its net profit last year was 3.68 million yuan ($531,961).

The company was established in May 2020 with registered capital of 1.5 billion yuan ($220 million). It is a national non-bank financial institution jointly initiated by Xiaomi Communication Technology Co., Ltd. and Chongqing Rural Commercial Bank Co., Ltd., mainly engaged in individual consumption credit business.

At present, Hong Feng, the co-founder of the company, serves as the firm’s chairman, legal person and chairman of Airstar.com. In March, the company amended its official registration with China’s Industrial and Commercial Administration, showing that Xiaomi‘s co-founder Wang Chuan withdrew from the directorship and was replaced by Michael Ji. He used to be the CRO of CreditEase and Airstar.com. In August, Ji’s qualification as President of the firm was approved.

Alain Lam, the vice president and CFO of Xiaomi, said in a financial report conference call for Q4 of 2021 that Xiaomi Finance had changed its name to Airstar.com, and denied the spin-off plan. He also disclosed that its original individual consumption credit product “Suixingjie” was operated by Chongqing Xiaomi Consumer Finance instead of Xiaomi Credit Company. At present, the website of the product and Xiaomi‘s installment interface both show that the service is provided by Chongqing Xiaomi Consumer Finance, while the signing subjects of the user agreement are still Airstar.com and Xiaomi Credit.

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The firm’s official website explains that it covers scenarios like tourism, home decoration, education, 3C, meeting online and offline consumption demands, and providing cash and consumption installment services. The firm’s partners include Chongqing Rural Commercial Bank, Bank of Communications, and China Merchants Bank.

The above-mentioned Xiaomi subsidiary, Airstar.com, which focuses on financial technology business lines, was reported to have reduced its team size. The firm denied this and said that it had adjusted its organizational structure in Q4 of 2021, integrating relevant business lines into the digital industry finance department and digital retail finance department.