9F Backs Hubei Consumer Finance, Becomes Second-Largest Stakeholder
The digital finance platform, which recently completed its IPO in New York, said the acquisition is a strategic move.
Financial account platform 9F Inc. (Nasdaq: JFU) announced that it is acquiring a strategic stake in a Wuhan-based licensed consumer finance company through its wholly-owned subsidiary.
9F, based in Beijing, said in a statement today that its investment will make it the second-largest shareholder in Hubei Consumer Finance Co., though it did not reveal the details on the deal. Hubei Bank Corporation Ltd. is the largest stakeholder in the company.
"It is another step in our strategy to develop stronger relationships with financial institutions and will expand our ecosystem deeper into the consumer finance sector," Lei Sun, the chief executive officer of 9F, said in the statement.
Founded in April 2015, Hubei Consumer Finance is one of the top consumer finance providers in Central China, according to the report.
9F, a tech-driven digital finance platform, said it will leverage its technological experience to assist Hubei Consumer Finance with traffic acquisition and deploying AI technology across its consumer finance business.
Consumer finance companies are non-financial institutions providing micro loans to individual consumers to buy products like mobile phones in China.
9F successfully completed its initial public offering in August, raising $84.6 million for 8.9 million American depositary shares.
On Thursday, the stock in 9F closed at $10.97 per share, up more than 1% on the day.
9F said it plans to release its second quarter results on Friday.