Beijing Business Daily News (reporter Meng fanxia, Liu Sihong) Hong Kong stock listed financial technology company 51 credit card is getting deeper and deeper in the loss mire. On August 13, the reporter of Beijing business daily noted that after the 51 credit card issued a profit warning announcement on July 31, which is expected to record a major loss in the first half of 2020, 51 credit card issued a supplementary profit warning notice again on August 11. It is estimated that the company’s loss will reach 350 million yuan to 750 million yuan in the six months ending June 30, 2020. < p > < p > 51 credit card has disclosed the reasons for the loss recorded in the first half of 2020: including the group’s preparation for the liquidation of P2P business in the first half of 2020. In order to ensure that it has sufficient funds to support the liquidation of P2P business, the group has significantly reduced marketing expenses and slowed down the growth of new users, thus affecting the business development. In addition, the reasons for the loss include that the epidemic situation in the first half of 2020 has brought huge downward pressure on China’s economy, resulting in a decline in the willingness of individual consumption and a reduction in the demand for personal consumer credit, as well as a corresponding increase in the default rate. < / P > < p > it is worth noting that the 51 credit card also made a profit of 181 million yuan in the first half of 2019, but it has suffered losses since the second half of 2019. According to the annual performance report of credit card 51 in 2019, the revenue of credit card 51 in 2019 was 2.045 billion yuan, which was 27.3% lower than that of 2.812 billion yuan in 2018, and the net loss after adjustment reached 847 million yuan. < p > < p > in view of the long-term losses and how to deal with the problems in the later stage, the reporter of Beijing Commercial Daily interviewed the 51 credit card, and the latter said it was not convenient to respond. < / P > < p > 51 credit card is positioned as a financial technology innovation enterprise. It mainly provides users with personal credit management services, credit card technology services, online loan matching and investment services, etc. it has a number of apps such as “51 credit card housekeeper”, “51 personality”, “51 credit card credit”, “for you”. From the perspective of income composition, 51 credit card income is divided into credit matching and service fee, credit card technology service fee, introduction service fee and other income, of which credit matching service fee accounts for more than 50%. < p > < p > Yu Baicheng, President of the 01 Research Institute, believes that the 51 credit card has been in a loss since the second half of 2019, which is due to both common industry factors and its own business reasons. Since last year, the e-Loan industry has been affected by the slowdown in macroeconomic growth and strict supervision. The scale of institutional matching loans has declined, while the risk of default has increased. Most financial technology companies related to online lending business have been affected. In addition, the above adverse effects continue to aggravate due to the outbreak of the epidemic this year. < / P > < p > “on the other hand, 51 credit card is located in Zhejiang Province, and the P2P business is very resolute. After the continuous three decline of its 51 credit card, it stopped issuing bids in February this year and chose to withdraw completely. In the process of liquidation, each company’s business, scale and bad debt situation are not the same. To complete the benign liquidation, the platform and shareholders need to solve it, thus affecting the company’s profitability and even causing losses. ” Yu Baicheng explained to the reporter of Beijing business daily. < p > < p > 51 the change of credit card from profit to loss is only a microcosm of many financial technology companies which have experienced rapid development and dividend period. Su Xiaorui, a senior researcher at the hemp bag Research Institute, also points out that in this rapidly changing industry, there are few outstanding people who can overcome the market challenges and survive. < / P > < p > “51 credit card started with the help of card butler service, but the business only has a drainage effect, and the pillar business is still credit related. In recent years, the overall asset quality of China’s credit industry has declined, coupled with the tightening of supervision on the back-end of loans, and the impact of the epidemic situation, the overdue rate has become an indisputable fact. ” Su Xiaorui pointed out that in addition to the objective reasons, facing the increasingly strict regulatory environment and the downward asset quality, 51 credit card has a slow pace in the transformation, which is also one of the reasons. < / P > < p > most of the revenue depends on the 51 credit card of credit matching service fee. After the withdrawal of P2P business, what is the latest transformation progress? How to survive in the later period? In response to this problem, the 51 credit card also did not respond. Su Xiaorui believes that in order to withdraw from the online loan, the first is to fully communicate with the local regulatory authorities; the second is to keep good contact with the lender and disclose the repayment information in a timely manner; the third is to strengthen the overdue collection efforts, increase the introduction of external funds, and strive to deal with the creditor’s rights projects in the hands of individual investors as soon as possible. < p > < p > Yu Baicheng said that the 51 credit card began to transform from the second half of last year. The source of funds for the loan service was the licensed institutions, and they were striving to apply for the Internet small loan license. These directions were also the mainstream choices for the transformation of online loan companies. However, the premise of smooth transformation is still to complete the clearing of existing P2P business. At present, if the risk of P2P business accumulation can be fully released through short-term large losses, and new capital support from shareholders can be obtained, it may also be an opportunity for the subsequent smooth transformation. < / P > < p > “in recent years, financial technology companies are in the high-speed development of the industry track, the strategic focus of the head organization has experienced from self-supporting business to platform business, and then to the development path of open ecology and technology output. The main profit model has changed from operating balance sheet to operating profit statement, and the underlying logic has changed significantly.” In Su Xiaorui’s opinion, if 51 credit card tends to go to the road of to B, it is recommended to refer to the head financial technology company to strengthen its strength in technology output and open ecological construction; if you are not willing to give up the expertise of to C, then you can strengthen the content and brand construction through the mode of credit card vertical website + diversion.