(Yicai Global) Oct. 12 -- Lakala Payment Co., a new-type of financial services operator, has recently undertaken new structural initiatives.
"Lakala has been restructured into a holding group and this group has been divided into two: Lakala Payment Group Co. and Kaola Financial Service Group Co.," Mr. Sun Taoran, the board chairman of Lakala Holding Group Co. said on Oct. 11.
Mr. Sun further stated that Lakala Payment Group deals with all the businesses falling within the supervisory ambit of "one bank and three commissions," while Kaola Financial Service Group handles those businesses supervised by the government's Financial Office and Financial Bureau. 'One bank and three commissions' refers to the People's Bank of China (PBOC), the China Banking Regulatory Commission (CBRC), the China Securities Regulatory Commission (CSRC) and the China Insurance Regulatory Commission (CIRC).
Mr. Sun also noted that Lakala Payment Group has embraced the pre-listing tutoring period. Nevertheless, no conclusion has been reached as to whether Lakala will be listed as a whole or in a spun-off manner, and whether it will list on overseas exchanges or on the A-share market, but this is currently under deliberation, he said.
Mr. Sun explained that the company had expected to list the entire Lakala Group in the form of a single A-share company, but regulatory changes forced the suspension of this plan. Currently, enterprises subject to licensing by the Financial Office, such as small loan companies, still fall into the range of industries restrained from listing, while those businesses licensed by the "one bank and three commissions" face fewer barriers when going public in the domestic market.
Mr. Sun added that Lakala Group's profits this year are predicted to reach CNY600 million (USD90 million), exceeding the after-tax profit of CNY450 million gained in the first half of the year. He said that securities companies will be the third major business of Lakala in the future, and the company is coordinating with Legend Holdings Corp. to prepare a securities company with the intention of serving emerging enterprises based on Internet big data technology. Lakala and Legend Holdings are also inclined to apply for private bank licensing upon compliance.
Lakala is a new-style financial services group offering services such as payment, credit, financing and community finance for individuals and enterprises.