Strategic Analysis and Financial Return Expectations of Yuwell Medical's Investment in Chongqing Ant Consumer Finance

Based on the collected data, I will provide you with an analysis of the strategic layout and financial return expectations of Yuwell Medical’s investment in Chongqing Ant Consumer Finance.

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Yuwell Medical (Jiangsu Yuwell Medical Equipment Co., Ltd., Stock Code: 002223.SZ) is a leading platform enterprise for home medical devices in China, whose main business covers multiple medical device segments including respiratory therapy, diabetes care, emergency care, blood pressure monitoring, in vitro diagnostics, etc.[0] The company currently has a market value of approximately USD 40.27 billion, a price-to-earnings ratio of 23.04 times, maintains a healthy return on equity (ROE) of 13.27%, and has a high net profit margin of 21.53%, with sound financial conditions[0].

Chongqing Ant Consumer Finance Co., Ltd. was established in June 2021. It is a licensed consumer finance institution approved by the China Banking and Insurance Regulatory Commission, co-founded by Ant Group Co., Ltd. and a number of well-known enterprises[1]. With an initial registered capital of RMB 8 billion, after two rounds of capital increases and share expansions in 2022 and 2023, its registered capital has increased to RMB 23 billion[1].

As of the end of 2024, the equity structure of Chongqing Ant Consumer Finance is as follows[1]:

Shareholder Name	Shareholding Ratio
Ant Group Co., Ltd.	50.000%
Hangzhou Data Group Co., Ltd.	10.000%
Zhejiang Sunny Optical Co., Ltd.	6.000%
Nanyang Commercial Bank Co., Ltd.	5.221%
Transfar Zhilian Co., Ltd.	5.010%
Jiangsu Yuwell Medical Equipment Co., Ltd.	4.990%
Chongqing Yufu Huamao State-owned Asset Management Co., Ltd.	4.041%
Cathay United Bank (China) Co., Ltd.	3.478%
Guangzhou Boguan Information Technology Co., Ltd.	3.344%
Contemporary Amperex Technology Co., Limited (CATL)	2.783%
Beijing TransInfo Technology Co., Ltd.	2.438%
China CITIC Financial Asset Management Co., Ltd.	1.736%
Chongqing Rural Credit Investment Group Co., Ltd.	0.959%

Yuwell Medical ranks as the sixth-largest shareholder with a 4.990% shareholding, and is one of the important industrial capital shareholders besides Ant Group[1].

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Consumer finance companies hold scarce financial licenses in China. As of the end of 2024, there were only 31 licensed consumer finance companies nationwide[2]. Regulators have strict requirements on the qualifications of shareholders of consumer finance companies; since 2023, at least 5 consumer finance companies have undergone equity transfers due to the qualification issues of their original shareholders[2]. As a leading enterprise in the medical device industry, Yuwell Medical’s successful participation in a licensed consumer finance company reflects its comprehensive strength and regulatory recognition.

The strategic significance of Yuwell Medical’s investment in Ant Consumer Finance is mainly reflected in the following dimensions:

The core products of Ant Consumer Finance, “Huabei” and “Jiebei”, rely on the Alipay ecosystem and cover multiple consumption scenarios such as e-commerce shopping, life services, and healthcare. Yuwell Medical’s medical device products (such as blood pressure monitors, blood glucose meters, ventilators, etc.) can achieve precise marketing and user reach through the consumption scenarios of Ant Consumer Finance, forming a synergy of “Healthcare + Consumer Finance”[3].

Ant Consumer Finance has industry-leading capabilities in intelligent risk control, big data modeling, fintech and other fields. Yuwell Medical can learn from its technical experience in user profiling, precise marketing, risk control, etc., to promote the digital transformation and intelligent upgrading of its own business.

The consumer finance industry has gained development opportunities against the background of the national policy of “expanding domestic demand and promoting consumption”. In 2025, the State Administration of Financial Regulation issued a special document requiring financial institutions to develop consumer finance and help boost consumption[4]. By participating in a leading consumer finance company, Yuwell Medical can share the investment returns brought by industry growth.

The shareholder lineup of Chongqing Ant Consumer Finance brings together leading enterprises in multiple fields including technology (Ant Group, Hangzhou Data Group), optics (Sunny Optical), banking (Nanyang Commercial Bank, Cathay United Bank), and industrial capital (CATL, Yuwell Medical, Transfar Zhilian)[1]. This shareholder structure provides Yuwell Medical with a platform for cross-industry resource integration, especially with cooperation potential in fields such as supply chain finance and industrial digitalization.

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Chongqing Ant Consumer Finance has shown a high-growth trend in recent years:

Financial Indicator	2022	2023	2024	YoY Change
Operating Revenue (RMB 100 million)	-	86.29	152.13	+76.3%
Net Profit (RMB 100 million)	-	1.52	30.51	+1907%
Balance of Credit Business (RMB 100 million)	897.74	2270.32	3108.48	+36.9%

In 2024, Chongqing Ant Consumer Finance achieved an operating revenue of RMB 15.213 billion, a year-on-year increase of 76.3%; its net profit reached RMB 3.051 billion, surging 19 times year-on-year[5]. This performance makes it the most profitable licensed consumer finance company in 2024, with its net profit significantly leading peers such as Bank of China Consumer Finance (RMB 0.06 billion), China Post Consumer Finance (RMB 0.804 billion), and Masan Consumer Finance (RMB 2.281 billion)[1].

Based on the 4.990% shareholding ratio, Yuwell Medical’s investment returns from Chongqing Ant Consumer Finance can be calculated from the following perspectives:

If Chongqing Ant Consumer Finance distributes profits, based on the 2024 net profit of RMB 3.051 billion, Yuwell Medical can obtain approximately RMB 0.152 billion in investment returns (RMB 3.051 billion × 4.99%), which is equivalent to 8.4% of Yuwell Medical’s 2024 net profit attributable to parent company (RMB 1.806 billion)[0][5].

As of the end of 2024, the total owner’s equity of Chongqing Ant Consumer Finance is RMB 26.003 billion, including RMB 23 billion in paid-in capital and RMB 2.679 billion in undistributed profits[1]. Calculated based on the 4.99% shareholding ratio, Yuwell Medical holds approximately RMB 1.298 billion in shareholder equity.

It should be noted that since its establishment in 2021, Chongqing Ant Consumer Finance has not distributed dividends in recent years as it is still in the period of business expansion and capital accumulation[1]. Lianhe Credit Rating’s report stated that the company “will adhere to the coordinated development of internal capital and external capital increase”, which means that shareholders may find it difficult to obtain cash dividend returns in the short term.

However, from a long-term perspective, this investment has significant appreciation potential:

The balance of credit business of Chongqing Ant Consumer Finance has grown from RMB 89.8 billion at the end of 2022 to RMB 310.8 billion at the end of 2024, with a compound annual growth rate of over 86%[1]. With the expansion of business scale and maturity of profit model, the dividend distribution capacity will gradually improve.

Referring to the valuation level of comparable companies, the price-to-book (PB) ratio of leading consumer finance companies is generally between 1.5-2.5 times. If Chongqing Ant Consumer Finance launches an IPO process or introduces strategic investors, the equity value of Yuwell Medical is expected to be significantly enhanced.

According to public information, Chongqing Ant Consumer Finance has undergone two important capital increases[1]:

• 2022:
  The registered capital increased from RMB 8 billion to RMB 18.5 billion, with new shareholders including Hangzhou Data Group, Sunny Optical, Transfar Zhilian, etc.
• 2023:
  The registered capital increased from RMB 18.5 billion to RMB 23 billion, with new shareholder Chongqing Yufu Huamao State-owned Asset Management Co., Ltd.

As a founding shareholder, Yuwell Medical’s initial investment cost was approximately RMB 0.4 billion (calculated based on initial registered capital of RMB 8 billion × 4.99%). Considering that the shareholding ratio remained stable (always 4.99%) during the subsequent capital increases, its comprehensive investment cost is expected to be in the range of RMB 1.1-1.2 billion. Calculated based on this, the book investment return rate (calculated based on 2024 net assets) is approximately 8%-10%, and if future listing expectations are taken into account, the potential return space is considerable.

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The consumer finance industry is facing an increasingly strict regulatory environment. The “Measures for the Administration of Consumer Finance Companies” puts forward higher requirements on corporate governance, business development and risk control[1]. In addition, the continuous decline of the loan prime rate (LPR) compresses the interest margin space, and the decline of comprehensive pricing level may affect the profitability of the industry[1].

Since 2024, the non-performing loan ratio of the consumer finance industry has increased[5]. As of the end of 2024, the balance of credit business of Chongqing Ant Consumer Finance exceeds RMB 310 billion, and the potential risk exposure deserves attention. However, the company has sufficient provision levels and strong risk offset capabilities[1].

Ant Group is facing challenges such as the decline of Alipay’s market share and tightened supervision of online micro-loans[5]. In addition, bank-affiliated consumer finance companies continue to expand by virtue of their capital cost advantages, which may form competitive pressure on the market position of Ant Consumer Finance.

At present, Chongqing Ant Consumer Finance has not clarified its listing plan. If the IPO process is not as expected, the equity liquidity of Yuwell Medical will be restricted, and the exit return time may be prolonged.

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Evaluation Dimension	Rating	Explanation
Strategic Value	★★★★☆	Participate in a scarce consumer finance license, obtain layout opportunities in the consumer finance field and industrial synergy opportunities
Financial Return	★★★★☆	Net profit surged 19 times in 2024, with great long-term appreciation potential, but short-term dividends are limited
Risk Control	★★★☆☆	Need to pay attention to risks such as regulatory policies, asset quality and exit channels
Valuation Level	★★★★☆	PB is about 1 time calculated based on net assets, with reasonable and low valuation

Yuwell Medical’s investment in Chongqing Ant Consumer Finance is a financial investment with long-term strategic value. Although short-term dividend returns are limited, with the continuous expansion of Chongqing Ant Consumer Finance’s business scale and the gradual emergence of its profitability, this investment is expected to bring considerable shareholder returns to the company. At the same time, the synergy potential between consumer finance scenarios and medical device business cannot be ignored, which is expected to promote the company’s transformation into an integrated solution provider of “Healthcare + Financial Services”.

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Yuwell Medical’s 4.99% stake in Chongqing Ant Consumer Finance is an important step in its “Industry + Finance” strategic layout. This investment has the following characteristics:

1. Clear strategic intent:
   By participating in a leading licensed consumer finance company, achieve expansion of consumption scenarios and upgrading of digital capabilities;
2. Accurate investment timing:
   Invested during the integration period of the consumer finance industry, enjoying the scarcity of licenses and the advantages of shareholder resource integration;
3. Great return potential:
   The 2024 performance explosion of Chongqing Ant Consumer Finance shows that its business model has been successfully verified, and long-term appreciation space can be expected;
4. Controllable risks:
   Ant Group has a strong background, the shareholder structure is diversified, and the investment risks are relatively controllable.

The realization of returns from this investment depends on the following factors:

• Sustained profitability and dividend policy of Chongqing Ant Consumer Finance;
• Expectations of Ant Consumer Finance’s IPO or introduction of strategic investors;
• Implementation of synergy between Yuwell Medical and Ant Consumer Finance in consumer healthcare scenarios;
• Changes in regulatory policies of the consumer finance industry.

Overall, this investment is a high-quality asset allocation that balances short-term financial returns and long-term strategic value, and is expected to create continuous value appreciation for Yuwell Medical’s shareholders.

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[0] Jinling API - Yuwell Medical Company Profile and Financial Data (https://gilin-data.oss-cn-beijing.aliyuncs.com)

[1] Lianhe Credit Rating - Credit Rating Report on the 1st Tranche of Financial Bonds of Chongqing Ant Consumer Finance Co., Ltd. in 2025 (https://www.lhratings.com/reports/A014750-P81636-2025.pdf)

[2] CCXI - China Consumer Finance Company Outlook January 2025 (https://pdf.dfcfw.com/pdf/H3_AP202501261642571789_1.pdf)

[3] CaiZhongShe - Ant Group’s 2024 Net Profit Increased 61% YoY Amid In-depth Traffic Decline (https://m.rccaijing.com/news-7334036385999550455.html)

[4] Eastmoney - Interpretation of the Policy of the State Administration of Financial Regulation on Developing Consumer Finance to Boost Consumption (https://pdf.dfcfw.com/pdf/H3_AP202503161644419401_1.pdf)

[5] The Beijing News - 2024 Performance Data of Chongqing Ant Consumer Finance (https://media.bjnews.com.cn/fz/html/AttachPubDev/2025/4/lilei2025429834272498744.jpg)