Xingyi Pay receives a 8.47 million yuan fine, and its parent company Newland's full-license financial compliance faces scrutiny

Third-party payment industry faces continued strict regulation, and a core payment institution under A-share listed company Newland (000997.SZ) has received another penalty notice.

Recently, the Fujian branch of the People’s Bank of China announced an administrative penalty decision, stating that Fujian Xingyi Payment Technology Co., Ltd. (hereinafter “Xingyi Payment”) was warned, had illegal gains of 3.4219 million yuan confiscated, and was fined 5.05 million yuan for violating regulations on acquiring merchant payments and conducting transactions with unidentified customers. The total penalty amounts to 8.4719 million yuan, and responsible personnel were fined 190,000 yuan. The public notice period for the punishment is five years.

Another Multi-Million Yuan Double Penalty Notice

The administrative penalty decision (Min Yin Fa Gui Zhi [2026] 6) shows that Fujian Xingyi Payment Technology Co., Ltd. committed two violations: one for violating regulations on acquiring merchant payments, and another for conducting transactions with unidentified customers. The People’s Bank of China Fujian branch issued a warning, confiscated illegal gains of 3,421,878.39 yuan, and imposed a fine of 5.05 million yuan.

Additionally, an administrative penalty decision (Min Yin Fa Gui Zhi [2026] 8) shows that related personnel Lin was responsible for the violations. He was warned and fined 190,000 yuan by the People’s Bank of China Fujian branch.

It is understood that Xingyi Payment was formerly Fujian Guotong Xingyi Network Technology Co., Ltd., established in June 2010. In 2012, it obtained the People’s Bank of China’s “Payment Business License,” holding nationwide acquiring qualifications for bank cards, making it one of the early licensed payment institutions in China.

Public information indicates that in 2016, Newland completed a 686 million yuan acquisition of 100% equity of Guotong Xingyi. In December 2025, Guotong Xingyi was officially renamed Fujian Xingyi Payment Technology Co., Ltd. According to Qichacha, Newland currently directly holds 60% of Xingyi Payment’s shares and indirectly holds 20%, totaling an 80% stake.

Regarding payment licenses, Xingyi Payment completed a license renewal on February 27, 2026, valid until June 26, 2027, with business type classified as Category I payment transaction processing.

However, regulatory records show that Xingyi Payment’s compliance issues are not new. In June 2025, its Liaoning branch was fined 103,100 yuan for violating regulations related to non-financial institution payment services; in March 2024, it was fined 1.8 million yuan for violations of transaction information management; and in June 2023, it confiscated illegal gains of 401.99 yuan and fined 500,000 yuan for providing T+0 services to non-compliant merchants.

The largest fine received by Xingyi Payment in recent years was in 2021, when the company was fined nearly 70 million yuan for 12 violations, involving customer identity verification, suspicious transaction reporting, and other serious anti-money laundering issues.

License Matrix and Compliance Challenges Coexist

As one of Newland’s core financial licenses, Xingyi Payment has experienced rapid business growth in recent years.

According to Newland’s 2025 Q3 report, total payment service transaction volume reached 1.62 trillion yuan in the first three quarters of 2025, with nearly 570 billion yuan from July to September alone, representing over an 18% year-on-year increase. Since Q3 2024, the growth has maintained quarter-over-quarter increases.

According to Newland’s 2025 semi-annual report, Guotong Xingyi (i.e., Xingyi Payment) achieved approximately 1.412 billion yuan in operating revenue and about 318 million yuan in net profit in the first half of 2025, both showing year-on-year growth.

Additional information shows that besides Xingyi Payment, Newland also holds licenses for Guangzhou Wshang Financing Guarantee Co., Ltd., Guangzhou Wshang Commercial Factoring Co., Ltd., and Guangzhou Wshang Microloan Co., Ltd.

According to its official website, Guangzhou Wshang Financing Guarantee Co., Ltd. is a wholly owned subsidiary of Newland, with a registered capital of 180 million yuan, holding a financing guarantee license, mainly providing financing and credit enhancement services for micro and small merchants and partner organizations.

Guangzhou Wshang Commercial Factoring Co., Ltd. is also wholly owned by Newland, with a registered capital of 50 million yuan, holding a commercial factoring license, focusing on accounts receivable financing, management, and credit risk control.

Guangzhou Wshang Microloan Co., Ltd. is a holding subsidiary of Newland, with a 97.61% stake and a registered capital of 500 million yuan, holding an internet microloan license, offering operational loans to micro and small enterprises, individual businesses, and entrepreneurs nationwide.

The company’s announcements indicate that Newland has provided guarantees for its subsidiaries Wshang Rongdan and SuShang Bank, as well as for business collaborations between Wshang Factoring and XinWang Bank.

Additionally, Guangzhou Wshang Microloan Co., Ltd. appears on Ningxia Bank’s “white list” for loan assistance.

Industry insiders point out that these three institutions share merchant resources, risk control models, and technical systems with Xingyi Payment, forming a collaborative pattern of “payment traffic, guarantee credit enhancement, factoring circulation, and small loans.” For Newland, this layout broadens merchant service boundaries and shifts revenue from hardware sales and payment fees toward financial value-added services.

However, under the environment of tightening financial regulation, the increasing number of subsidiaries and extended business chains pose higher requirements for group consolidated management, compliance penetration, and risk isolation.

Frequent penalties on payment institutions are an inevitable result of the industry shifting from scale expansion to high-quality development. For Newland, the penalties against Xingyi Payment are not only short-term financial impacts but also a test of its financial sector governance capabilities. How to maintain business growth while addressing compliance gaps, restoring license credibility, and integrating full-license risk control will directly influence its license renewal in 2027 and the long-term value of its fintech sector. As regulators intensify enforcement of “strict punishment for violations and repeat offenders,” industry reshuffling in payments and fintech will continue.