Sprint for 5 Years Still Fruitless: Mash Consumer Finance's IPO Stumbles

How does the insufficient number of independent directors impact the upcoming IPO process of Mashang Consumer Finance?

“In January 2021, Mashang Consumer Finance filed for guidance with the Chongqing Securities Regulatory Bureau and signed guidance agreements with sponsorship institutions China International Capital Corporation (CICC) and CITIC Securities. The company planned to issue shares publicly and go public. Prior to the withdrawal of this guidance, CICC and CITIC Securities conducted twenty-one rounds of guidance for Mashang Consumer Finance.”

According to the official website of the China Securities Regulatory Commission, recently, the IPO guidance status of Mashang Consumer Finance Co., Ltd. (referred to as “Mashang Consumer Finance”) has been changed to “withdrawn from guidance” record.

A five-year-long IPO journey, after 21 rounds of guidance, has ultimately ended with the company voluntarily withdrawing.

Five Years of IPO Failures

Mashang Consumer Finance officially commenced operations in June 2015.

Between 2016 and 2020, Mashang Finance completed five rounds of financing. Shareholders include Chongqing Department Store (600729.SH) with 31.06%, Beijing Zhongguancun Kejin Technology Co., Ltd. with 29.506%, Wumart Technology Group Co., Ltd. with 16.121%, Chongqing Bank with 15.53%, among others.

On September 11, 2020, the original Chongqing Banking and Insurance Regulatory Bureau approved, in principle, Mashang Consumer Finance’s first public offering of A-shares, with a scale of no more than 1.333 billion shares; the funds raised after deducting issuance costs should be fully used to supplement the company’s core Tier 1 capital.

On January 6 of the following year, Mashang Consumer Finance registered for guidance with the Chongqing Securities Regulatory Bureau and signed guidance agreements with sponsors CICC and CITIC Securities, planning to issue shares publicly and list. Over the following years, the company’s progress toward listing attracted market attention but remained at the guidance record stage.

Before the guidance was withdrawn, CICC and CITIC Securities conducted twenty-one guidance sessions for Mashang Consumer Finance.

The latest guidance progress report indicated that the main issue still facing Mashang Consumer Finance is that the number of independent directors on the board is less than one-third.

According to disclosed information, Mashang Consumer Finance’s board currently has ten members, including Chairman Zhao Guoqing, Director and General Manager Guo Jianni, Director and Deputy General Manager Cao Jingquan, Yin Xiangdong, Dong Yingqiu, Yi Xin, and Wang Yu, among four other directors. There are three independent directors: Xu Liwei, Chen Guanglei, and Ouyang Rihui.

According to the “Management Measures for Independent Directors of Listed Companies,” the proportion of independent directors on the board of directors must not be less than one-third, and at least one must be an accounting professional. The 18th guidance progress report disclosed in April 2025 pointed out that independent director Deng Gang resigned during the guidance period, resulting in the company’s independent directors accounting for less than one-third.

At that time, the two guidance agencies mentioned that the company would promote the election and appointment of new independent directors to meet regulatory requirements before the official application, but until the guidance record was withdrawn, Mashang Consumer Finance’s new independent directors had not yet taken office.

Regarding the reason for withdrawal, Mashang Consumer Finance responded: “Considering the changes in the capital market environment, the company has proactively adjusted its listing schedule and temporarily suspended guidance. The company’s current operations are good, and we will continue to focus on business development and steadily advance the listing when the time is right.”

It is worth noting that currently, no consumer finance company in China has completed an IPO. In recent years, other consumer finance institutions have also expressed intentions to go public, but none have succeeded.

Jiexin Consumer Finance submitted a prospectus to the Hong Kong Stock Exchange in July 2019, planning to list in September of the same year. However, after passing the HKEX’s review, the listing process was repeatedly delayed, and the plan was finally terminated in November of that year. In the following years, Jiexin Consumer Finance experienced ups and downs, and by the end of 2024, JD Group acquired a 65% stake through a restructuring agreement, and Jiexin Consumer Finance exited the market.

Concerns over Violent Collection Behind Rapid Performance Growth

Mashang Finance’s performance has continued to rise over the years.

According to the financial report of major shareholder Chongqing Department Store, from 2021 to 2023, Mashang Finance achieved revenues of 10.01 billion yuan, 13.53 billion yuan, and 15.795 billion yuan, respectively; net profits of 1.382 billion yuan, 1.788 billion yuan, and 1.982 billion yuan; total assets of 61.091 billion yuan, 66.51 billion yuan, and 71.28 billion yuan.

In 2024, Mashang Finance “reduced revenue and increased profit,” with revenue decreasing to 15.149 billion yuan but net profit rising to 2.281 billion yuan, and total assets decreasing to 65.56 billion yuan.

In the first half of 2025, Mashang Finance reported revenue of 8.735 billion yuan, net profit of 1.155 billion yuan, and total assets of 68.1 billion yuan.

According to Chongqing Department Store’s 2025 semi-annual report

In terms of revenue scale, it ranks second in the industry; in terms of net profit, it ranks third, becoming one of the few industry players to surpass 1 billion yuan in net profit in the first half of the year.

However, behind the “booming” performance, complaints on social media remain high.

Entering “Mashang Consumer Finance” on the Black Cat Complaint platform yields over 86,000 related complaints, involving harassment of family members,爆通讯录, high-interest loans,套路贷, and unexplained deductions.

In October 2024, The Paper published a major article titled “Undercover Collection Companies for 30 Days: Witnessed Threats, Insults, and Others’ Credit Card Records,” describing undercover reporters’ experiences in four collection companies in Hefei, Anhui. The report included internal scenes and work processes, revealing threats, insults,爆通讯录, harassment of family members, and almost routine misconduct, with banks and microloan companies’ supervision appearing ineffective. The four companies involved included Mashang Consumer Finance.

In September 2025, Mashang Consumer Finance disclosed its list of partner collection agencies on its official website, totaling 135.

One agency, Chongqing Xinmeng Technology Development Co., Ltd., attracted significant attention. Xinmeng Technology is a wholly owned subsidiary of Beijing Zhongguancun Kejin Technology Co., Ltd., which is the second-largest shareholder of Mashang Consumer Finance, holding nearly 30%. Additionally, Mashang Finance’s founder Zhao Guoqing served as chairman of Zhongguancun Kejin for a long time until stepping down at the end of 2025.

From 2020 to 2024, Mashang Consumer Finance paid agency collection fees totaling 10.693 billion yuan. In 2024 alone, the fees reached 3.128 billion yuan, accounting for 20.65% of that year’s revenue.

The intertwined relationships among shareholders and executives mean Xinmeng Technology is more than just an ordinary outsourcing partner. The outside world has even dubbed it “lending with one hand and collecting with the other.”

The five-year IPO preparation ultimately paused, representing both a setback and perhaps a necessary adjustment for Mashang Consumer Finance. Given the industry environment—slowing consumer credit growth, intensified competition, and stricter regulation—the valuation logic for consumer finance companies in the capital market is changing.