Mr. Adisak Sukumvitaya, Chief Executive Officer of Jay Mart Public Company Limited (JMART) revealed that after KB Kookmin Card Co., Ltd, a Korean leading company of credit card issuing businesses and installment loan services, has entered into joint venture of J Fintech Company Limited (J Fintech), a financial business subsidiary of JMART, by purchasing an additional shares of 650 million baht, equivalent to 49.99%, it would enhancing a strength to financial statement of JMART.
With the help of KB, J Fintech’s financial cost has decreased by 1-2% from 4.5%, leading the company to be able to compete in other line services, and JMART will receive a refund from J Fintech in the amount of 3 billion baht. In addition, J Fintech will acknowledge KB’s knowhow and technology, including applications, blockchain technology and be able to enter into a credit card business platform in both credit cards and installment loans.
J Fintech expected the joint venture to advance its loan and credit card businesses to be one of top five. J Fintech will reconstruct its company’s structure to meet the business standard of KB Kookmin Card and integrated JMART’s business nature of ecosystem and synergy. The new joint venture will creating more intensive marketing, with the target in young generation group and expands the credit card, installment loan and other financial services customer bases in line with business plan. There is also the introduction of financial technology to apply in J Fintech’s future operations, which includes having a lower costs in the future due to a strong financial shareholders.
For this year, JMART still maintains its revenue growth target of 10% and net profit growth of 25% JMART has lower financial cost and has no impact from covid-19 outbreak on the business because JMART has adjusted its more operated in online platform. JMART expects the company performance in the second half of the year would be better than the first half as the covid-19 spreading should be solved or not that much severe.