NOVEMBER 29TH, 2016
With Over RMB100 Billion in Total Assets, Ping An Leasing Ushers in China’s Leasing Market Era 2.0
Hong Kong, Shanghai, 29 November 2016 – Ping An International Financial Leasing Co., Ltd. (hereafter “Ping An Leasing” or “the Company”), a subsidiary of Ping An Insurance (Group) Company of China, Ltd. (hereafter “Ping An” or “the Group”, HKEx: 2318; SSE: 601318) held a ceremony earlier in Shanghai to mark its exceeding RMB100 billion in total assets and ushering in China’s Leasing Market Era 2.0. Ping An Leasing has grown rapidly since its establishment and become one of the top players in China’s leasing market in just more than three years. Mr. Jason Yao, Executive Vice President of Ping An, Ms. Guo Zhiying, Deputy Director of the Pudong Financial Service Bureau at China (Shanghai) Pilot Free Trade Zone, Mr. Sudhir P. Amembal, an American expert in the leasing industry, and Mr. Wu Xiaobo, a well-known economist, attended the ceremony.
Commenting on the rapid growth of the Company, Fang Weihao, Chairman and CEO of Ping An Leasing, said that the sense of crisis and the curiosity inherited from the Group have been key factors driving the growth of Ping An Leasing. Since Ping An ushered in its era 3.0 of “integrated finance +” and “internet +”, its leasing arm has been proactively pursuing breakthroughs and reforms. A new business model has been developed in order to achieve leapfrogging growth and lead the industry through changes in the Leasing Market Era 2.0.
RMB100 Billion Sparks of Brilliance
Industry Leaders All Rooting for Ping An Leasing
Unlike traditional finance channels like banking, insurance and trust, Ping An Leasing has established and deepened its market presence through three years of rapid development, and accomplished the exploration of the leasing industry. Thanks to these efforts, the Company has achieved a vertical take-off in its business, expanding at a higher-than-average speed and building absolute advantages in several business areas. As at November 2016, the total assets of Ping An Leasing exceeded RMB100 billion, while there are only around 10 leasing companies with over RMB100 billion in total assets in the market. In all, Ping An Leasing has grown rapidly over the past three years to become a first-tier company in the leasing industry.
According to Ping An’s financial report for Q3 2016, despite the grim economic situation this year, its overall leasing business bucked the trend and continued to perform well, outpacing its peers in expansion and innovation breakthroughs, and putting itself at an absolutely advantageous position in a number of business areas.
In the three years of rapid development from September 2013 to September 2016, Ping An Leasing’s total assets reached RMB97.5 billion at a CAGR of 120%, its revenue grew to RMB4.3 billion at a CAGR of 137%, and its net profit expanded at a CAGR of 351%.
Mr. Jason Yao, Executive Vice President of Ping An, stated in his speech that, “cross-boundary” and “integration” are the essence of the Group’s integrated finance strategy. At the start of 2016, Ping An Leasing first floated the idea of “innovative leasing” within the industry, calling for actively exploring leasing business in areas of personal consumption, operating lease and industrial operation.
Ms. Guo Zhiying, Deputy Director of the Pudong Financial Service Bureau at China (Shanghai) Pilot Free Trade Zone, stated that “the innovative growth model of Ping An Leasing has played a very positive role in transforming and repositioning the traditional financial service segments in mainland China, and serves as a sample for standardizing the development of the Chinese financial leasing industry.”
Government leaders and industry experts from across the country and more than 500 partners from the capital side and the asset side witnessed this glorious moment for Ping An Leasing. As the representative of strategic partners of the capital side, Mr. Sha Ying, Deputy General Manager of Shanghai Pudong Development Bank Shanghai Branch, said that “the total volume of financial leasing transactions in China is expected to exceed RMB3 trillion next year which is about to overtake the US. The market potential of the leasing industry in China is immense. After years of rapid development of the financial leasing industry, financial leasing companies will eventually achieve higher status and value reflecting the needs of the society by utilizing movable asset finance to increase the capital utilization rate of the industry and by driving the entity industry to further develop its intrinsic value.”
Mr. Shi Hong, Deputy General Manager of SAIC General Motors, spoke highly of the auto finance business of Ping An Leasing. “We found the market position of Ping An Leasing to be very clear, namely taking advantage of the mature experience of auto leasing overseas and the resources of Ping An Group’s auto ecosystem to vigorously advance the development of the car rental business adapted to the Chinese market on Ping An’s Auto Concierge platform,” He said.
Robust growth of 19 types of business in “Leasing Museum”
Mr. Fang Weihao, Chairman and CEO of Ping An Leasing, presented an onsite TED talk. He described the rapid development of the Company as a “vertical takeoff”, in which the total assets exceeded RMB100 billion and the total headcount exceeded 1,200 employees within about 3 years, a very rare case in the industry. Until now, based in Shanghai, Ping An Leasing has established strategic business presence across the country with 8 subsidiaries and 17 offices. At the same time, it has 19 vertical business lines penetrating different industries, and built competitive advantages in various segments. In four major business areas, i.e. health care, energy and metallurgy, construction, and education and culture, Ping An Leasing has achieved market leadership and become the industry benchmark.
Ping An Leasing has built a “Leasing Museum” to vividly showcase operations of the financial leasing industry to guests and customers. The Company uses artistic reliefs to show different “physical assets” such as aircraft, autos, factory tools, school buildings and medical equipment in a lively way, to demonstrate the Company’s directions in different industry lines and innovative businesses, and to present Ping An Leasing’s development history and key milestones since its establishment. These objects signify Ping An Leasing’s efforts behind its total assets of RMB100 billion in different professional areas and show Ping An Leasing’s attempts in innovative fields. With the trust of its 39,000 customers, Ping An Leasing is blending itself into different industries across the country with ongoing operations, facilitating the progress of the industry and real economy.
Four Major Innovations in Leasing Market Era 2.0 Showing China’s Power
With Ping An Leasing’s total assets reaching RMB100 billion, a Leasing Market Era 2.0 in China has been ushered in. During the event, leasing experts, representatives of the real economy, and economists from China and America had productive and intense discussions and debates on future development of the leasing industry.
Sudhir Amembal, a world-renowned leasing expert, praised the achievements of the financial leasing industry in China. According to him, the leasing industry in the U.S. has developed for more than 60 years and experienced two industry cycles, and is relatively mature with diversified leasing products and an overall penetration rate of approximately 22%. However, as the leasing industry in China was “restarted” only 10 years ago, its overall penetration rate is far lower than that in the U.S., meaning great room for development.
Yang Gang, chairman of the Leasing Committee of China Association of Enterprises with Foreign Investment, believes that China’s financial technology has become the industry leader across the world. China’s financial leasing industry should build confidence in its own institutions and theories, and explore better development paths for itself.
Well-known economist Wu Xiaobo has been concerned about the development of small and medium-sized enterprises in China. He mentioned at the event that SMEs have been in a weak condition in the financial market, and capital shortage is a major hurdle in their struggle for survival and development. With the development of financial leasing, this new financial service could become an important measure to help enterprises clear stumbling blocks and achieve success in a counter-cyclical economic environment.
In fact, the financial leasing industry in China is highly competitive. The industry scale is expanding fast, but if compared with those of developed countries, the advantage of China’s leasing industry is far from being played out. Against this background, Ping An Leasing pioneered the innovative concept of “Leasing Market Era 2.0”. According to Fang Weihao, the Leasing Market Era 2.0 focuses on four major innovation directions: lease + the internet, lease for personal consumers, operating lease, and operational lease. He believes the Leasing Market Era 2.0 represents the future directions for China’s financial leasing industry. With the industry’s continuous innovation and improvement in the Leasing Market Era 2.0, China’s financial leasing industry will show its power to the world.