Original link: https://www.latepost.com/news/dj_detail?id=1653
Two major mergers and acquisitions in three years, Jitu broke industry practice with capital leverage
Last Friday, Jitu took over Fengwang, the franchised e-commerce business left behind by SF Express, for 1.183 billion yuan. This company, which only started delivering express delivery in China in 2020, has made two major mergers and acquisitions in less than three years.
In most cases, the competition in China’s express delivery industry mainly depends on the headquarters’ operational capabilities, financial strength and franchisee stability. The birth of Jitu broke this practice. Jitu’s founder, Li Jie, grew up in China’s backgammon system. In March 2020, Jitu relied on capital and joined forces with powerful partners (OPPO, Pinduoduo) to become the sixth domestic single volume player in just 10 months. courier company.
According to data from Qichacha, Jitu has received at least three rounds of financing from institutions such as Sequoia Capital, Temasek, and Hillhouse, totaling more than US$3.8 billion. Similar to Huang Zheng, the founder of Pinduoduo, who is inextricably linked, Li Jie is very aware of the importance of capital leverage – in the case of sufficient industry infrastructure (capacity), resources can be obtained through acquisitions of peers, and customers can be obtained through subsidies. , so we see:
- Jitu China’s express delivery business qualification comes from Shanghai Longbang Express, which was purchased in 2019;
- It became the country’s sixth exposed infrastructure short board, which was made up for by the acquisition of Best’s domestic business for 6.8 billion yuan;
- When the price war is limited and it is more difficult to develop new customers, it bought SF Express, which has an annual order volume of 1.1 billion pieces.
Among them, Jitu’s acquisition of Fengwang is equivalent to obtaining Fengwang’s customer orders at a unit price of more than 1 yuan. According to the estimation of CITIC Construction Investment, the revenue of SF Express last year was about 3 yuan per piece, which is about 0.2 to 0.3 yuan higher than that of ZTO Express, which has the highest price among the franchise express companies.
In March of this year, the average daily order volume of Yunda was 46.71 million, YTO 57.32 million, STO 42.61 million, and SF Express 33.32 million.
The transaction between Jitu and SF Express still needs to pass the anti-monopoly review of the State Administration for Market Regulation. Last year, the average daily package volume of Jitu and Fengwang was about 35 million to 37 million pieces and 3 million pieces respectively, accounting for 12.5% to 13.2% of the total express delivery business in the country. Market participants estimate that it will be reported to relevant departments for approval normally, and there is a high probability that the project can proceed normally.
SF Express has made a “coverage” guarantee for this transaction. SF Express will refund the deposits of all franchisees and give a certain percentage of compensation. This move can appease the original Fung.com franchisees to a certain extent, and agrees to bear the burden from March 31 this year to delivery. Fengwang profit and loss during the date. (Gong Fangyi’s intern Fu Xiaoyu also contributed)
Peer “job fair” opens at the gate of Zheku Technology
Throughout the day today, employees came out of Building 1 of Zhangrun Building, located at Lane 61, Shengxia Road, Pudong New District, Shanghai. Some of them were pulling suitcases, some were holding cardboard boxes, and some were simply carrying a few plastic bags. Fill it with personal items brought out of the company.
Almost all of these people come from ZEKU, OPPO’s chip subsidiary. On the night of last Thursday, Zheku sent a home office notice to all employees in the name of IT maintenance, and announced the dissolution decision at the all-staff online meeting the next day. According to Wandian Finance, Zheku has a team of about 2,000 people in Shanghai, and its core business is research and development of mobile phone APs (processor chips).
Several security guards at the scene were ready to maintain order at any time. They walked to the door of the company every once in a while to ask the headhunters who were constantly adding WeChat to go, and reminded everyone not to gather at the door. Maybe it’s because we spent two days on weekends digesting the news of the company’s disbandment. During our stay for a few hours, most Zheku employees looked relaxed.
A research and development engineer told us that the resignation process is very simple: return the company computer, hard disk and work card, sign the resignation agreement, and take away personal items. The company promises to transfer the compensation (N+3) to the employees’ respective bank cards within five days after signing the agreement.
Zheku’s fighting power is enough to attract some well-known companies in the industry to hold “job fairs” at the door of the company: We met a deputy general manager of the listed company Fullhan Micro at the downstairs of Zheku Company. He said that he came first, and HR followed. arrive. In the Seasaw coffee shop next door, a Xiaomi employee in a blue polo shirt interviewed Zheku’s audio chip team one by one. A headhunter told us that a person in charge of the Huawei Hisilicon RF analog chip also showed up with a team that afternoon. Last weekend, the QR code of the recruitment group specially set up by DJI for Zheku employees has been spread first…
A number of chip headhunters who “hunt people” at the company’s entrance told “Wandian Finance” that Zheku has a good reputation in the industry for its technical strength. Most senior engineers with more than five years of experience are not worried about leaving the company. The annual school recruits newcomers to Zheku.
At around 11:00 noon, two former Zheku employees looked at the future around them in the crowded Seasaw coffee shop:
- “Is this the last time this Seasaw is doing so well?”
- “What are you thinking, there are bytes next door.”
- “Oh, the vacant office in Zhangrun Building may not be available for rent. Who can rent so many floors at once like us? The rent is very expensive.”
- “Why don’t you think about what to have for lunch…”
- “Xiuli, it’s all set, some of them will go first.”
- “Why are you eating Xiuli again?”
- “This is the last time…” (Qiu Hao)
Cudi Coffee intends to double the number of stores in two months, including stores within stores
From 1 to 5,000 stores, Ruixing took about 3 years. Cudi Coffee is only intended to be used for most of the year. On October 22 last year, they opened their first store in Fuzhou, and they opened up franchises within a month. Management announced last week that as of May 11, the number of Cudi Coffee outlets has reached 2,500 and is expected to reach 5,000 by the end of July.
This is no longer an asset-heavy shop. According to the information on the official website, in addition to the common standard stores and brand stores, there will also be cache stores with simple structures (such as indoor open-air stores), outdoor stores (similar to pop-up stores), and even stores in stores, such as Rent a few square meters in convenience stores and pharmacies to sell coffee.
Some practitioners pointed out that it will take at least half a year for the single restaurant model to work. Let go of the franchise quickly, it may be that not enough money has been raised. According to the Financial Associated Press, the investment information of Kudi shows that the investment amount of different stores is between 268,000 yuan and 705,000 yuan. After opening, a service fee ranging from 10% to 25% will be commissioned based on the gross profit exceeding 20,000 yuan.
Since October last year, Cudi Coffee has sponsored a series of sports events such as the Chengdu Marathon, and was also the Chinese sponsor of the Argentine national team during the World Cup. At the end of February this year, Cudi announced the launch of a joint model with Glory of Kings. Last week, it announced the launch of 12 new products in batches, as well as hanging ear coffee and espresso liquid co-branded with Mexican artists.
The price is lower than Ruixing. Open the review software, in addition to coffee at 8.8 yuan, there are also hot dog buns at 6.99 yuan and ice cream at 1.99 yuan recommended by users. According to the official website, Cudi also plans to sell cakes, Western-style light meals, and freshly baked goods. In November last year, Cudi Coffee invested 300 million yuan to establish a supply chain company in Hainan.
Unlike Ruixing who only did direct sales at the beginning, Cudi Coffee expanded rapidly by relying on “class franchising”. The official website reads, “full joint operation, no direct sales, full support for joint ventures”, “no franchise fee, profit will be shared after profit”, “trusteeship available, reducing the burden on joint ventures”. According to media reports, Cudi Coffee also promised that if the stores signed before the middle of this year lose money, Cudi will make up the difference, and the equipment can also be recycled at a discount.
Lu Zhengyao, the founder of Cudi Coffee, has successively founded three listed companies, China Auto Rental, China UCAR, and Luckin Coffee. In 2020, he left Ruixing due to financial fraud. In January last year, Lu Zhengyao founded the “Bite of the Tongue Hero”, which specializes in pre-made dishes, and news of a large-scale closure came out half a year later. (Lin Guangying)
Largest intergenerational wealth transfer in U.S. history
More than half of the total US$140 trillion household wealth in the United States belongs to a group of elderly people aged 60-80. In order to avoid high inheritance taxes, they are leading the largest intergenerational transfer of wealth in the United States.
These “baby boomers,” born between 1946 and 1964, will transfer $84 trillion to the next generation by 2045. But even among this group, the wealth disparity is staggering. The top 10 percent of wealthy households own most of the wealth. This is because some of the “Baby Boomer” generation invested in the financial and real estate markets and made a lot of money.
Since 1983, the average price of a US home has increased fivefold and the stock market has risen over 28x, compared to a mere 2x increase in consumer prices. It is mainly white groups who have seized this wave of opportunities.
According to the U.S. tax law, U.S. citizens can only inherit an inheritance of 12.9 million U.S. dollars tax-free, and the excess will face high inheritance taxes. It is estimated that by 2045, high-net-worth and ultra-high-net-worth individuals in the United States (with at least US$5 million in cash and US$20 million in realizable assets) can inherit more than US$30 trillion, which may involve estate taxes and transfer taxes as high as US$4.20 trillion.
Therefore, rich families try to transfer assets to heirs by purchasing real estate and other methods that do not impose inheritance tax. The younger generation no longer needs to wait for the old man to die, but to obtain family wealth earlier. This phenomenon has broader implications as the cost of living, such as housing, education, and healthcare, continues to rise — as Fiona Greig, head of investor research and policy at Vanguard, the world’s largest mutual fund, points out, “except for the wealthiest Besides, all are financially ill-prepared to retire in some way.” (Intern Fu Xiaoyu)
Know it later丨The RF front-end chip unicorn with a valuation of 12 billion yuan went public this week
There were at least 4 IPOs for A shares this week.
- Huayuan Co., Ltd.: a manufacturer of automotive filters. Last year, the company’s revenue was 505 million yuan and its net profit was 38.44 million yuan. It plans to raise funds of 120 million yuan. It closed up 38% today.
- Huizhiwei: A design company for 5G/4G RF front-end chips, which are used in smart phones, Internet of Things and other fields. Customers include Samsung, OPPO, etc. The company was valued at 12 billion yuan last year, and Sequoia Capital, GSR Ventures and other institutions participated in the financing. Last year’s revenue was 360 million yuan. During the reporting period, R&D investment continued to increase, losses continued to expand, and the gross profit margin was far lower than that of domestic and foreign counterparts. It plans to raise 1.5 billion yuan.
- Huawei Technology: A spring manufacturer that provides suspension springs, brake springs, etc. to car companies. Last year’s revenue was 890 million yuan, a year-on-year increase of 23%. Partners include BYD, Geely, Great Wall, etc. It is expected to invest and raise 434 million yuan.
- Shengnan Technology: A manufacturer of aviation equipment and military batteries. Its products include aviation deceleration controllers, aviation dampers, etc. Last year, revenue increased by 25% year-on-year to 140 million yuan, and net profit increased by 90% year-on-year to 47 million yuan. It plans to raise 168 million yuan.
There is at least one IPO in US stocks this week.
- Strong Global Entertainment (SGE): A manufacturer of high-end large-format projection screens, mainly for movie theater exhibitors, theme parks, educational institutions, etc. The company is the world’s largest 3D screen manufacturer, headquartered in the United States. The financial situation fell sharply in 2020 due to the epidemic, but growth will resume in 2021. It plans to raise USD 8 million. (Intern Meng Xiaohan)
OTHER NEWS
Central Bank: The triple pressure of demand contraction, supply shock, and weakening expectations has been eased.
The central bank released today the first quarter of 2023 China’s monetary policy implementation report, pointing out that the triple pressure of China’s demand contraction, supply shocks, and weakening expectations has been eased, but it must also be noted that the domestic economy’s endogenous driving force is not strong and demand is still insufficient, while the global Affected by economic slowdown, high inflation, and tightening policies of major central banks. The report mentioned that in the next stage, we will implement a sound monetary policy, improve cross-cycle adjustments, focus on supporting the expansion of domestic demand, pay attention to marginal changes in price trends, coordinate financial support for the real economy and risk prevention, and use policy development financial tools to drive private investment, etc. wait.
The official Chinese version of Midjourney begins to accept applications for internal testing.
Wenshengtu app Midjourney announced on May 15 that it will launch a Chinese version of the service on the QQ channel, and open internal test applications at 6:00 pm every Monday and Friday, and the entrance will be closed after reaching a certain number of people. Click here for details.
Meituan Optimal will establish a provincial system, and each province will be responsible for its own profits and losses.
According to Jiemian News, Meituan Optimal is about to start a new round of adjustments. The main direction is to establish a provincial system, each province is responsible for its own profits and losses, and to give the person in charge of the province the right to make decisions about operations, while weakening the management authority of the business department. Previously, I later exclusively reported on the major management adjustments of Meituan Optimal. The gap between Meituan Optimal and Duoduomaicai is partly caused by the organizational management model. Duoduomaicai adopts the “provincial and regional autonomy” model, which is more efficient than Meituan Optimal’s management method of “headquarters unified management + regional partial autonomy + vertical lines”. flexible.
Alibaba Cloud claimed that the 70% layoffs in the autopilot business of Dharma Institute are not true.
In response to the news of 70% layoffs in the autonomous driving team of Dharma Institute, Alibaba Cloud stated that there is no such thing as a layoff of 70%. In addition to the transfer of some personnel from the autonomous driving business of Dharma Institute to Cainiao, a considerable number of personnel have entered other businesses of Alibaba. Earlier media reports said that currently only nearly 100 people from the autonomous driving team of Dharma Institute have been transferred to Cainiao Group, and the remaining nearly 200 people have been laid off, accounting for about 70% of the layoffs.
China’s gold trading volume in the first four months of this year rose by 17.62% year-on-year, and the turnover rose by 28.13%.
According to the China Gold Association, from January to April this year, the cumulative trading volume of all gold varieties on the Shanghai Gold Exchange was about 7346.5 tons, a year-on-year increase of 17.62%, and the cumulative trading volume was 3.1 trillion yuan, a year-on-year increase of 28.13%. The rise in gold prices was the main reason why turnover rose more than volume. On May 4 this year, spot gold on the New York Mercantile Exchange once rose to US$2,076.2/oz (425.44 yuan/g), a record high. Today’s Shanghai gold spot price is quoted at 451.91 yuan/gram.
Affected by the decline in game revenue, Sohu’s revenue in the first quarter fell by 16% year-on-year.
Sohu’s revenue in the first quarter of this year was 162 million US dollars, a year-on-year decrease of 16%, and its online game business revenue fell by 18% year-on-year. Sohu’s online game business generated US$129 million in revenue in the first quarter, accounting for nearly 80% of the overall revenue. Its main game is the “Tian Long Ba Bu” series of games launched in 2007. In addition, Sohu’s other main business brand advertising revenue in the first quarter was 23 million US dollars, a year-on-year decrease of 5%.
The domestically-made novel coronavirus mRNA vaccine has started to be vaccinated and used for free booster shots.
Recently, the mRNA COVID-19 vaccine of CSPC completed the first nationwide vaccination at the Taoyuan Community Health Service Center in Shijiazhuang City. According to media reports, the vaccine is a free booster shot. Currently, 18 vaccination sites in Shijiazhuang have been given one after another, and it will be available in other parts of the country soon. The company’s revenue last year increased by 11% to 30.937 billion yuan.
Nintendo brings the year’s highest-grossing movie and best-rated game.
The global box office of “Super Mario Bros. The Movie” launched by Nintendo exceeded 1.2 billion US dollars, becoming the highest-grossing movie in the world this year. “Super Mario Bros. The Movie” surpassed last year’s “Avatar: Way of Water” at the box office and is currently the highest-grossing video game adaptation. The Legend of Zelda: Tears of the Kingdom has become the UK’s biggest-selling physical game of the year after its official release on May 12. On Chinese social media, players showed various in-game self-made vehicles, and a single video had more than one million views.
ChatGPT steals Bing’s share.
According to market research firm Statcounter, Bing’s desktop computer search engine market share in October last year (ChatGPT has not yet been released) was 9.92%, and this figure fell to 7.14% in April this year. Googel’s market share increased by about 3% over the same period to 86.71%. According to SimilarWeb, ChatGPT’s global traffic in April has surpassed Bing, second only to Google, Baidu and Russia’s Yandex. Although the page views of Bing increased by 15.8% in March and Google decreased by about 1%, users may use ChatGPT directly or continue to use Google compared to Bing.
Apple began testing the M3 chip, using the 3nm process for the first time.
According to well-known technology reporter Mark Gurman, Apple is testing the M3 self-developed chip, and is expected to launch iMac and MacBook equipped with M3 by the end of this year or early next year. According to his speculation, what Apple is testing is the M3 Pro version, which will use the 3nm manufacturing process for the first time, with 12 CPUs, 18 GPUs and 36GB of memory (compared to the M2 Pro’s increase of 2 CPUs and GPUs and 4GB of memory each). He had previously speculated that the first notebook with the M2 chip would be available this summer. Mac sales fell by 30% in the first quarter , comparable to the performance of the entire PC industry.
Newman Mining, the world’s largest gold miner, may acquire a competitor for US$19 billion.
Today, Australian mining company Newcrest (Newcrest) said it agreed to sell to the world’s largest gold miner Newman Mining (Newmont) for US$19 billion. This may be the world’s largest gold mining enterprise merger and acquisition transaction, which still needs regulatory approval. Newman Mining said it expects to generate $500 million in annual synergies and generate $2 billion in incremental cash flow, while “also increasing annual copper production, a metal critical to the new energy economy” . As investors have bought gold as a safe haven , the price of gold has recently reached an all-time high.
The sales of Cartier’s parent company increased by 27% in the first quarter, because Chinese consumers went to Europe for consumption again.
Benefiting from Chinese people starting to travel overseas, Richemont Group’s sales in the first quarter of this year increased by 27% year-on-year, much higher than the average growth rate of less than 20% in the previous three quarters. However, the management said that Chinese consumers are currently more cautious in spending, and the domestic market is not expected to rebound strongly, while overseas travel is limited by expensive air tickets. Richemont Group’s sales in the latest year are about 20 billion euros, nearly half of which come from Cartier, and other brands include Van Cleef & Arpels.
Chinese apps have become mainstream around the world, mainly thanks to TikTok and fellow editing app CapCut.
According to Sensor Tower statistics, from January to March this year, 156 of the 475 apps in the top 5 by downloads in 95 countries and regions were from China. Among them, TikTok and its fellow video editing app CapCut ranked in the top five in 82 and 48 regions respectively. SHEIN ranks in the top five in 10 countries including Spain and Brazil. New apps include Temu, Lemon8, etc. The latter is the overseas version of “Little Red Book” launched by Douyin, which is very popular in Japan and the United States.
The “Exchange Link” service between the Mainland and the Hong Kong Special Administrative Region was officially launched.
According to the People’s Bank of China, the Mainland and Hong Kong Special Administrative Region interest rate swap market interconnection cooperation (referred to as “swap link”) was officially launched on the 15th. The initial opening of the Northbound “Swap Link” allows Hong Kong and other foreign investors to participate in the mainland inter-bank financial derivatives market via Hong Kong, and conveniently complete RMB interest rate swap transactions and centralized clearing. In July last year, the People’s Bank of China, the Hong Kong Securities Regulatory Commission, and the Hong Kong Monetary Authority jointly issued the “Swap Link” and made it clear that it will be launched in 6 months.
China Xiamen Tungsten New Energy and France’s Orano established a joint venture in the battery field.
China Xiamen Tungsten New Energy Energy Materials Co., Ltd. and France’s Orano (Orano) plan to invest 1.5 billion euros (about 11.4 billion yuan) to establish a battery cathode material joint venture and a precursor joint venture in Dunkirk, France. French President Emmanuel Macron said the joint venture is expected to create 1,700 jobs and secure France’s upstream position in the lithium battery production value chain. During his previous visit to China in April, Macron had met Jiang Long, director and general manager of Xiamen Tungsten New Energy in Guangzhou.
Tiger Global is considering cashing out the equity of non-listed companies such as ByteDance.
According to people familiar with the matter, Tiger Global is considering selling the equity of some unlisted companies and returning the funds to some investors, including ByteDance, payment service provider Stripe, and big data company Databricks. Previously, Tiger Global’s venture capital fund suffered its worst annual loss in 2022, with a writedown of about 33% on the value of investments in unlisted companies, resulting in a $23 billion reduction in the value of its startup portfolio.
U.S. consumers are still shopping offline, and nearly half of e-commerce brands have opened physical stores.
According to the statistics of consulting firm Coresight, nearly half of pure e-commerce apparel brands in the United States have opened stores offline, partly because of the increase in online advertising costs, but customers are still accustomed to offline shopping. According to statistics from Cushman & Wakefield, the vacancy rate of U.S. shopping malls fell to 5.6% in the first quarter of this year, the lowest level since tracking began in 2007. Last year, 85% of total retail sales in the United States still took place offline, only slightly lower than before the epidemic. During the same period, China was about 73%.
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