July 24 (NBD) -- Guangzhou-based financial information service company Leadercf Monday announced the company faced loan defaults and lost touch with its actual controller. 

It is the first Guangzhou-based large P2P platform that reported defaults following similar cases in Hangzhou, Shanghai, Shenzhen and Beijing.

According to the website of Leadercf, as of July 24, around 7.59 billion yuan (1.1 billion U.S. dollars) had been lent out accumulatively on the P2P platform, with the unpaid principal and interest standing at approximately 1.3 billion yuan (191.5 million U.S. dollars).  

It's noticed on Leadercf's website that over 1,000 debts are being assigned with an annual interest rate up to 242 percent. The investment horizon of such debt assignment is short, often between two to eight days. Although the P2P platform appears to be operating in accordance with related laws and regulations, yet most of its guarantees are jade articles whose value could be exaggerated, Beijing Business Daily reported citing an investor. 

According to public information, founded in 2013, Leadercf is a member of the Guangdong Internet Financial and has got listed on the Shenzhen Qianhai Equity Exchange. So far, the company has finished two rounds of financing.

In addition, it gained investment from a state-backed enterprise, and became an official sponsor of Spanish foot club RCD Espanyol in 2017 and a sponsor of Portugal national football team of the 2018 FIFA World Cup. 

The company said it will set up a workgroup to examine and evaluate its assets, demand borrowers to repay in advance and dispose of collaterals in exchange for money. The money it collects from borrowers will be repaid to investors' bank accounts and the platform will lift the capping on transaction price of debt assignment. Moreover, the website and APP of Leadercf will maintain normal operation but will not issue new financial products, Leadercf added. 

Email:  tanyuhan@nbd.com.cn