Monthly Archive: November 2020

Prelude to the banquet of 2.1 trillion Wealth

In March 2012, Peng Lei was appointed CEO of Alibaba micro financial services. In October 2014, the company was named “ant financial services group”. At that time, the “little ant” of Ali Group officially appeared on the stage.
Six years later, the little ant grew into an elephant, an ant group valued at $200 billion.
On July 20, 2020, ant group officially announced that it would launch a plan to simultaneously issue shares on the sci tech Innovation Board of Shanghai Stock Exchange and the main board of Hong Kong stock exchange.
Since then, its listing process has been rapidly promoted. On August 25, the Shanghai stock exchange accepted its IPO application, and on September 18, ant group launched its IPO and successfully passed the meeting. From submitting IPO application to successfully passing the meeting, ant group only took 25 days, and the speed of its sprint to the IPO of Kechuang board set a record.
On the evening of October 26, 2020, ant group announced the pricing, and the issuing price of a shares was determined to be 68.8 yuan per share, and that of Hong Kong was determined to be HK $80.00 per share, which means that its total market value is as high as 2.1 trillion yuan.
What is the market value of 2.1 trillion yuan?
Taking the A-share market as an example, when ant group announced its pricing, the listed company with the highest market value in the A-share market was Guizhou Maotai (600519. SH), with a total market value of 2.06 trillion yuan. This means that if it can be listed successfully, ant group is expected to surpass Guizhou Maotai and become the first share in the market value of a shares.
Its rapid growth can be seen from the changes in its valuation over the past few years. In 2015, ant group had a round of financing, and its post investment valuation was about 260 billion yuan. Just five years later, its valuation has almost jumped 8 times to 2.1 trillion yuan.
Different from many science and technology enterprises that continue to burn money and are still losing money when they go public, ant group has achieved continuous profits and the annual profit scale reaches 10 billion yuan. According to the prospectus disclosed by ant group, from 2017 to 2019, ant group realized the net profit of 6.951 billion yuan, 667 million yuan and 16.957 billion yuan respectively, and the net profit growth rates in 2018 and 2019 were – 90.40% and 2442.06% respectively.
In the novel coronavirus pneumonia, the first three quarters of 2020 were even more alarming: the ant group realized a business income of 118 billion 191 million yuan in January and September, up 42.56% from the same period last year, mainly from the growth of digital financial technology platform revenue, and realized gross profit of 69 billion 549 million yuan, an increase of 74.28%; the gross gross profit margin increased from 48.13% in the same period last year to 58.84%.
Although ant group passed the meeting quickly and set the world’s largest IPO fund-raising record, and its profitability was not general, in Liu Feng’s view, the timing of its listing was not a good time. Novel coronavirus pneumonia is catching up with the US general election, this year’s new crown pneumonia epidemic and some local debt crisis.
Many industry insiders interviewed by Caijing think that the reason why ant group chose to rush for IPO this year may be driven by the original shareholders behind it.
As for the novel coronavirus pneumonia’s rush to reallocate this year, Zhang Xiaorong believes that it may come from three aspects: first, the restriction of the US dollar outflow, which makes some foreign shareholders of the ant group hope to cash in as soon as possible; two is affected by the new crown pneumonia epidemic, some shareholders are pessimistic about the future economic development expectation, hoping to bag the security before the cold winter comes, and three is to go out. He is worried about Sino US relations. Previously, foreign media reported that the US government under trump had considered listing ant group in the trade blacklist. If this measure is implemented, it will affect the valuation of ant group when it is listed.
When it comes to the original shareholders of ant group before listing, its lineup can be described as luxurious, including national social security fund, China Post Group and other “national teams”, insurance funds such as China Life Insurance and Xinhua life insurance, as well as business tycoons such as Liu Yonghao, Shi Yuzhu and Wang Zhongjun, and many shareholders have not penetrated into the underlying private equity funds.
“Ant group’s shareholders, there may be more unknown big man.” “For example, some private equity funds, whose equity penetration is relatively difficult,” said the financial professionals to “Caijing”
According to the prospectus disclosed by ant group, its shares are relatively concentrated, and the top ten shareholders hold 93.36% of the shares in total.
Among them, Hangzhou Alibaba network technology company holds 32.64%, which is the largest shareholder. Ali is a senior management and internal employee shareholding platform. Hangzhou Junhan equity investment enterprise (hereinafter referred to as “Hangzhou Junhan”) and Hangzhou junao equity investment enterprise (hereinafter referred to as “Hangzhou junao”) hold 29.8% and 20.65% respectively, which are the second and third largest shareholders of the company. Thus, Alibaba and its members hold about 83% of the shares of ant group. In addition, among the top ten shareholders, there are national social security fund, China Life Insurance, Zhifu (Shanghai) investment center, etc.
According to the reporter of Finance and economics, the current equity structure of Hangzhou Junhan and Hangzhou junao is a transitional structure, which will eventually transform into 40% of all employees including management and 60% of shares of strategic investors including Ali.
At present, Ma Yun is the actual controller of ant group. In reply to the Shanghai Stock Exchange’s inquiry letter, ant group disclosed that Ma Yun indirectly controlled 50.5% of the company’s shares through Hangzhou Junhan and Hangzhou junao, which are the actual controllers of the company. According to the relevant articles of association and agreement, Jing Xiandong, Hu Xiaoming and Jiang Fang are the persons acting in concert of Ma Yun on matters related to the resolutions of the shareholders’ meeting of Hangzhou yunplatinum.
Previously, the industry expected that the listing of ant group will bring a new round of wealth making movement, and a large number of tens of millions and even Billionaires will be born. Ma Yun, senior executives of ant group and shares held by the company

Wealth of all parties temporarily failed after the suspension

After the suspension of listing, the focus of the market is: can ant group still be listed? Do the shareholders of ant group have any chance to cash in the capital market?
Many interviewees told Caijing that behind the IPO and suspension of listing of ant group, there is a big game between shareholders and all parties involved.
Many financial people interviewed by Caijing said that in the short term, it is difficult to restart the IPO of ant group. At present, it is difficult to judge how long it will take for ant group to restart its IPO.
The penetration of ant group’s large shareholder group may also become a problem that needs to be solved when it meets the listing conditions in the future.
“The ultimate equity penetration map may not be made public, but regulators need to master this information,” the financial professionals told Caijing According to the current technology, equity penetration is complex, but not impossible to implement. From the experience of overseas mature markets, equity penetration is relatively clear, but in our country, there are still many ways to go. In its view, in recent years, a large number of reduction and Realization of the company after listing is one of the reasons that affect the company’s difficulty in becoming bigger and stronger and the growth of China’s capital market.
As the huge IPO project with a market value of 2.1 trillion was suspended, the dream of wealth expected by the original shareholders and employees of ant group was temporarily stranded.
According to the public information of ant group, from 2015 to 2018, the company conducted several financing.
The round a financing took place from June to August 2015. At that time, 12 investors, including the National Council of social security fund, Shanghai Zhongfu equity investment management center, Beijing China Post investment center, China Life Insurance, China Pacific Life Insurance, Xinhua Life Insurance and Chunhua capital, participated in the financing of ant group. These shareholders contributed 19.2 billion yuan in total. After the completion of the financing, the company’s post investment valuation is about 260 billion yuan.
In May 2016, ant group conducted round B financing. At that time, 16 investors, including Zhifu (Shanghai) investment center, China Life Insurance, Shanghai Qihong investment center and China Gold Jiazi, participated in the round of financing, with a total investment of 29.1 billion yuan. After the completion of the financing, ant’s post investment valuation is about 390 billion yuan.
Ant group has conducted two rounds of financing at home and abroad in 2018. Overseas, ant international has introduced 45 overseas investment institutions including Temasek. Ant international has issued 1.838 billion shares to these institutions with a transaction consideration of 10.3 billion US dollars. In China, it raised 21.8 billion yuan from Beijing innovation and growth enterprise management company, China Pacific Life Insurance, China Life Insurance, Beijing qianshun investment company, etc., and the post investment valuation rose to 960 billion yuan, equivalent to about 150 billion US dollars.
According to the investment of round a investors and the final valuation of ant group, if ant group can be listed successfully this time, the investment income of round a investors is expected to reach 10 times in five years, from 19.2 billion yuan to 192 billion yuan.
For those employees who expect to rely on equity incentives to gain value-added assets, millions of wealth has been temporarily destroyed.
In the prospectus, ant group had planned to implement equity incentive plan for employees. Among them, it is planned to use no more than 914 million shares for employee incentive in the next four years by means of additional issuance or repurchase after listing, of which, the A-share restricted stock incentive plan will not use more than 822 million shares, and the H-share incentive plan will use no more than 92 million shares. At the same time, the A-share restricted stock incentive plan will also include no more than 396 million shares of Hangzhou Junhan.
According to the issue price of 68.8 yuan / share of a shares and 80 Hong Kong dollars / share of H shares of ant group, the market value of these proposed incentive shares is expected to reach 90 billion yuan.
Assuming that all the shares are granted to the current 16600 employees of ant group, each of them can get 5.4 million yuan. For executives with larger holdings, the losses are much higher than the average.
On the eve of the listing, investors in the last round of trading may be the least disappointed group among ant group shareholders.
On the evening of November 3, after ant group was suspended from listing, the issue of refund of investors’ subscription funds was also put on the agenda.
The next day, ant group announced that the applied share proceeds (together with 1.0% brokerage commission, 0.0027% SFC transaction levy and 0.005% Hong Kong stock exchange transaction fee) for the Hong Kong public offering will be returned in two batches without interest.
On the evening of November 5, ant group announced that the issuer and the joint lead underwriters will return the investors according to the subscription funds of new shares paid by investors and the corresponding brokerage commission for new shares placement (if any), plus the bank deposit interest for the same period. The issuer and the joint lead underwriters will start the refund procedure on November 6, 2020, and the relevant funds will be returned on November 9, 2020. The shares subscribed by investors will be cancelled on November 6, 2020.
Investors who won the lottery have different reactions to this. Some investors said that Daxin ant group paid 34400 yuan in the first lot, which is expected to double after listing. Compared with the current refund, this expectation is a little big. However, some investors are more happy: ant group’s listed share price performance may not be as expected after encountering supervision. If it breaks after listing, the loss will be greater.
As for the exit of the original shareholders, a senior securities industry personage told Caijing, “if you are a value investor, you don’t have to worry about when ant group will be listed. There is a valuation method, if the company can not be listed, do you buy it? If you don’t buy it, it’s not a value investment. “

Strategic placement fund: from hot sale to class B exit

Ant group IPO derived from another drama, is the five innovative future strategic placement funds. “One yuan can be ant shareholder”, “star manager management” Rare themes, star fund managers and all-round publicity have jointly achieved this grand event of fund circle and become a rare opportunity for public funds to “break the circle”.
From the application, approval to issuance, the speed of the five funds can be described as “lightning”: on September 10, Huaxia, e-fund, Penghua, huitianfu and China Europe fund companies jointly reported the theme fund of “innovative future”, which attracted market attention. In just over a week, the five funds were officially approved.
Late in the night of September 22, five companies issued a prospectus together. At the same time, the official of the prospectus of ant group announced that the five funds will participate in the strategic placement of ant group together with the strategic placement fund previously established.
In the next few days, the fund advertisements were broadcast in the subway, bus station and building elevator in major cities. “You can see advertisements everywhere. It feels like the double 11 has been ahead of schedule.” One investor recalled.
In the early morning of September 25, the five funds were officially put on sale. A group of sales data with strong e-commerce color is: “it will sell 1 billion yuan in 2 minutes. In just one hour, the five funds sold 10.2 billion yuan. ” E-fund innovation, which ranked first in the future, will take the lead in reaching the sales quota of RMB 12 billion, and will close the issue ahead of schedule, “sold out in one day”.
It’s national day, and it’s going to cover the entire holiday season. The five ant strategic placement fund opened 118 live broadcasting projects in Alipay for the new development fund roadshow. It accumulated over 70 million people, and took turns to answer questions for investors during the holidays. The national day of Huaxia Fund was broadcast continuously for 8 days, with 4 hours of live broadcast every day, while huitianfu fund broadcast for 11 hours continuously on September 25. The fund manager also visited the live broadcasting room in person, setting a record for the longest live broadcast of financial management in a single session.
On the evening of October 8, all five innovation future funds were raised. According to relevant statistics, more than 10 million people have subscribed to the five funds, equivalent to 8 people buying every second. According to the total scale of 60 billion yuan, the fund’s per capita investment is only 6000 yuan, becoming the most inclusive new fund in history.
On November 3, the Shanghai Stock Exchange decided to suspend the listing of ant group. As soon as the news comes out, more and more fund investors ask for refund.
Most of the investors come to the ant fund. “If you don’t buy ant stock, the product will lose its core value. If the product has deteriorated, it should be returned.” Some investors have said so.
In fact, the “core value” understood by some investors is not the real “core value” of the fund. In terms of the proportion of the investment portfolio, only 10% of the participants participate in the ant battle, and where the remaining 90% is invested is the key factor that really determines the performance of the fund. And, this batch of fund is the partial stock mixed fund of stock investment not less than 60%. Therefore, they are essentially a high-risk product under the banner of ant strategic distribution.
Industry insiders have commented that looking back on the previous announcements of ant group and five funds, the label of “participating in ant battle allocation” only accounts for 10% of the actual portfolio, which is equivalent to using ant IPO to leverage investors’ expectations. With 10% of the position to pry a national high-risk investment feast, but also buried the expected failure after the hidden danger.
As high as investors’ expectations are, so are losses. According to the “Caijing” reporter’s sample survey of relevant fund investors (the sample number is more than 100), more than 70% of the funders think that the money should be refunded, and about 20% of the funders think that at least the purchase and redemption should be opened.
On the evening of November 5, the China Securities Regulatory Commission (CSRC) made a statement on this issue. Subsequently, e-fund, Penghua, China Central Europe, huitianfu and Huaxia announced the optimization plan: to apply for listing on the stock exchange to facilitate investors to sell on the spot.
It is difficult for investors to be satisfied with the plan of listing and transferring. Market participants believe that the business of custody transfer is strange and complex, which is too difficult for new fund investors to enter the market, and there is a high probability of discount after listing. Some public funders also said that at present, it can only be considered as a compromise scheme, and it is uncertain whether the redemption will be opened in the future.
Late in the night of November 10, five companies successively issued announcements and launched new plans. The new scheme adds class B shares, and investors can withdraw according to the net value of fund shares. At the same time, the five innovation future funds still apply for share listing and trading according to the statement on November 5.
At this point, investors’ withdrawal demands have been resolved, and the dispute about Innovation future fund has come to an end.
Looking from the rearview mirror, the Innovation future fund has not only lost the aura of participating in ant strategic placement, but also experienced a frenzy of “leverage” and pain of “deleveraging”.
After dropping expectations of participating in the ant battle, investors began to re-examine the five funds. Whether to go or not to stay, opinions began to diverge. “Finance and economics” reporter learned that some investors will resolutely redeem, “believe the fund manager’s words, it is better to buy open-end funds directly, there is no need to close for a year and a half.”. Others want to arbitrage, “buy it back after redemption, and you can earn the difference (because the secondary market is probably at a discount).” More people are beginning to realize that making money or not depends on 90%, not the 10% of the propaganda.
At present, the five funds have started to build positions. “As there is a one month exit option period from November 23 to December 22, positions should be controlled to cope with the pressure of redemption.” An analysis of fund practitioners.

IPO suspension of Ant 2.1 trillion

After the IPO was suspended, the probability of ant group’s IPO restart in the short term became smaller, and the exit of the original shareholders was also delayed
The sharp contrast between the quick and the one night stop makes the unicorn company stand on the front line. Figure / IC
Reporter Yang Xiuhong and Huang Huiling of Finance and Economics
Editor Lu Ling
Ant group (688688. SH), which was expected to win the world’s largest IPO, has experienced sudden changes. As a result, 2.1 trillion yuan of wealth feast has been drawn to rest.
In the autumn of 2020, ant group first pushed forward the IPO process at an astonishing speed and got the token of listing on the science and technology innovation board, with an estimated value of 2.1 trillion yuan. Then, on the eve of the listing on November 5, the tuyere suddenly changed and the IPO stopped abruptly.
The sharp contrast between the quick and the one night stop makes the unicorn company stand on the front line.
“Ant group has an annual profit of over $2 billion, and it doesn’t look short of money. One of the factors behind the choice of IPO Financing this year may be driven by investment shareholders. ” Zhang Xiaorong, President of the Institute of deep science and technology, told Caijing.
“For those who are in a hurry (to promote the listing of ant group), some people may put leverage into it. If they don’t go public, they can’t realize it, and they have to pay the interest.” An industry observer also told Caijing that “these people are really ants, but they are in hot pot.”
A professional in the financial field told Caijing that the promotion of listing by investment shareholders may be a secondary factor. One of the main reasons for ant group’s rapid IPO this year may be due to the demand of the domestic capital market for the external display of registration system, that is, not only overseas markets can allow large-scale innovative unicorns to be listed, but also the domestic capital market Pieces.
The IPO of ant group has been suspended. In addition to the new regulations on online loans issued by the regulatory authorities, it will have an important impact on the company’s business and valuation. Some people in the industry believe that this may also involve the game between the shareholders of ant group and all parties, and the penetration fog in the huge shareholder group of ant group.
“The original shareholders of ant group can be regarded as luxurious, which can be divided into three categories: the first is Ali family and their” relatives and friends “; the second is domestic investment institutions with strong strength; the third is some top overseas investment institutions, such as Singapore Investment Company, Malaysia Treasury holdings, Temasek, etc Zhang Xiaorong said: “the investment of these institutions often amounts to hundreds of millions.”
In addition, “ant group’s shareholder background is more complex, and the final penetration problem behind its huge shareholder group is not clear.” The financial professionals said.
In this regard, Liu Feng, chief economist of galaxy securities, once pointed out that “the basic condition for the effective operation of financial markets requires information symmetry, but investors and financiers naturally have asymmetric information. Therefore, we need to improve laws and regulations to make information transparent. ”
In an interview with the finance and economics reporter, Liu Feng said: “ant group is a good company with innovative ability. The loan mode provided by Alipay has benefited more people. But at the same time, its online loan business risk also needs to be prevented. At present, the new regulation of online loan issued by the regulatory layer is just to prevent the outbreak of large financial risks in the online loan industry. ”
When the realization of the original shareholders’ wealth is hindered, a large number of investors who participate in the subscription of ant group’s strategic placement fund are struggling to redeem the funds within the validity period. Some investors indicated that they would resolutely redeem the funds, while others realized that the profit of the strategic placement fund depended on how 90% of the fund was invested, rather than 10% of the ant group.
After the IPO was stopped, the probability of ant group to restart IPO in the short term became smaller, and the exit of original shareholders was delayed. Many financial people interviewed by Caijing said that in the short term, it is difficult to restart the IPO of ant group. At present, it is difficult to judge how long it will take for ant group to restart its IPO.
A few days ago, Fang Xinghai, vice chairman of China Securities Regulatory Commission, said that when ant group will be listed depends on how the government reorganizes the regulatory framework for financial technology enterprises, and also on how the enterprises respond to changes in the regulatory environment.
A senior person in the securities industry told Caijing that if you are a value investor, you don’t have to worry about when ant group will be listed.

Automobile revolution will give birth to great enterprises

Today people are used to wheels. Children’s buggies, cars for travelling, bicycles for the elderly and wheelchairs for the disabled are all inseparable from one of the most basic elements: wheels. The birth of the wheel is so long that we don’t even know who invented it, but it is like a catalyst to promote the continuous development of human civilization, making the development of automobile like a rolling torrent.
When traveling around the country, the author not only looks at the scenery, but also pays attention to the earliest use of wheels by ancestors. A relatively accepted view is that the wheel was first invented in the Lianghe River Basin. The wheel for transportation was born in about 3200 BC. It was mainly used as a chariot for war or competition in Mesopotamia. The wheel is regarded as the oldest and most important invention of mankind, and scientists often compare it with the use of fire. Human beings have tamed fire for more than 1.5 million years, but only 6000 years have been spent using wheels. Before the invention of the wheel, the ancients used sleds to carry heavy objects. The simplest sled is a slope, and the more complicated one is a few rollers under the weight. This is how the ancient Egyptians piled huge stones into pyramids. Although the ancient Egyptians should have been inspired by the roller to invent the wheel, the ancient Egyptians were not the ancient Egyptians, but the ancient Babylonians. The greatest function of the wheel is that it enables people to move objects much more than their own weight, so the most common use of wheels is transportation. This is a very important enlightenment that human beings can use tools to achieve purposes far beyond their abilities.
In particular, the use of electric wheelchairs for children with disabilities has increased the range of children’s wheelchairs by a factor of 100 kilometers. And how to use this wheel well, human has never stopped to study. There are many ways to make the wheels turn. For example, the water wheel driven by water, the wagon driven by cattle, the windmill driven by wind, and the steam engine in the industrial revolution have driven trains, textile machinery, ships and fuel driven cars. Today, the automobile industry, once the pioneer of invention, is once again the target of new energy, and the vehicles driven by electricity also have an impact on people’s travel mode like their predecessors. In November this year, the general office of the State Council issued the new energy vehicle industry development plan (2021-2035), which requires in-depth implementation of the national strategy for the development of new energy vehicles, promote the high-quality and sustainable development of China’s new energy automobile industry, and accelerate the construction of an automobile power. See, the development of new energy vehicles has become a national strategy. The automobile was not invented by Chinese people, but now the largest automobile industry in the world is China, and the world’s largest automobile consumer market is also China. How to transform from traditional vehicles to new energy vehicles, China has a bright future. It is also possible for China to become a global leading country in the manufacture and consumption of new energy vehicles.
Looking back on history, the changes of transportation energy and power system not only greatly affect the development of human life, but also affect the world power. In the 1860s, with the birth of steam engine technology as the main symbol, it was coal and steam engine that greatly improved the productivity of human society, created the industrial economy and industrial civilization of human beings, and thus triggered the industrial revolution in Europe, making European countries become the world economic powers at that time. In the 1870s, oil and internal combustion engines replaced coal and steam engines, transforming the world economic structure from light industry to heavy industry, and the United States became a world power. At the same time, it brought human beings into the economic system and material prosperity based on oil. Now the third reform is in front of us. Oil and internal combustion engine have become alternative targets. The era of clean energy has become a visible reality. The author predicts that the third transformation of transportation energy and power system will change Asia and make Asia replace the United States as the engine of world economy.
On November 26, good news came that SAIC’s high-end brand l project finally appeared and officially named “Zhiji automobile”, with the goal of creating a cross-border intelligent electric new species driven by data. In order to speed up the building of independent high-end intelligent pure electric vehicle brand, SAIC Group plans to establish Shanghai Yuanjie intelligent technology equity investment fund partnership (limited partnership) with Zhang Jiang Gaoke and Hengxu capital, with a total amount of 7.2 billion yuan, including 5.399 billion yuan, 1.8 billion yuan and 01 million yuan respectively. The fund plans to make a special investment with Alibaba (China) Network Technology Co., Ltd. (including its designated subordinate investors) in the high-end intelligent pure electric vehicle project (tentatively named “Zhiji automobile”). This is China’s largest automobile manufacturing group stepping into the new energy vehicle industry. In January next year, the first model of Zhiji will be released in Shanghai, London and ces in North America. The speed is amazing, the new forces of China’s car making really appear in front of the world with the appearance of the third reform. Among the new automobile forces, Tesla, Weilai, ideality and Xiaopeng have reached the peak of market value. New forces in traditional automobile enterprises are taking shape: Dongfeng has lantu, BAIC has arcfox, Chang’an has CHN platform cooperating with Huawei and Ningde times. The drive engine is being replaced by electric motors and fuel is being replaced by power batteries. In the past, the seats in the car will also become intelligent cockpit.
There is also the core of enterprise research driven. China’s hub motor technology creatively

Ren Zhengfei cuts the meat in tears!

The central bank: not to let the market be short of money and resolutely not to engage in “flooding”
The central bank released the third quarter report on China’s monetary policy implementation. This year, the central bank has launched monetary policy response measures involving 9 trillion monetary funds. In the first 10 months, the financial sector gave about 1.25 trillion interest to the real economy! The report also pointed out that in the next stage, we should not only maintain reasonable and sufficient liquidity, prevent the market from being short of money, but also resolutely refrain from “flooding” and letting the market’s money overflow.
Firmly adhere to the position that the house is for living, not for speculation
The stock market index continued to pick up, and the volume of trading and financing increased year on year. At the end of September, the Shanghai Composite Index closed at 3218 points, up 7.8% from the end of June; the Shenzhen composite index closed at 12907 points, up 7.6% from the end of June. In the first three quarters, the total turnover of Shanghai and Shenzhen stock markets reached 158.4 trillion yuan, with an average daily turnover of 865.8 billion yuan, a year-on-year increase of 58.6%. The amount of funds raised in the stock market increased significantly year-on-year, with a total of 803.8 billion yuan raised in the first three quarters, up 63.6% year on year.
Feng Lei said that the central bank mentioned not to let the market be short of money and not to flood the market. The former is to prevent deflation, and the latter is to prevent inflation. If the central bank is still concerned about the stock market volume, it is still not concerned about the trading volume of the stock market directly.
In the first 10 months, the financial profit was 1.25 trillion yuan, and the target of 1.5 trillion yuan could be achieved in the whole year. Among them, the bank must have paid the most money. This year, the bank shares are relatively miserable, but the profits will come to an end. With the recovery of the entities, the bank shares will usher in opportunities. It is obvious that there are not many bank stocks to let more than 1.5 trillion yuan in profits. These withdrawals are more than ten trillion yuan.
This is good for today’s market.
Ren Zhengfei: once divorced, it’s not a broken tie
Glory can call down Huawei
Ren Zhengfei’s speech at the glory farewell meeting was published on Huawei’s internal website Xinsheng community.
Ren Zhengfei said that we should fully embrace global industrial resources and establish relations with suppliers as soon as possible.
Adhere to all advanced learning, including learning from people you don’t like. The United States is a powerful country in science and technology in the world, and many of its companies are excellent, so we should firmly and boldly cooperate with them;
At the same time, we should cooperate with our domestic partners and grow with them.
Glory wants to be Huawei’s strongest competitor in the world. Surpassing Huawei, you can even call down Huawei and become a self-motivated slogan.
Once the “divorce” is over, we are adults. We should deal with the separation rationally, strictly abide by the compliance management, strictly abide by the international rules, and realize their respective goals.
Feng Lei said that Ren Zhengfei said two lines of poetry. It’s hard to get along with each other. It’s hard to get along with each other. President Ren was forced to marry his daughter, and he would never come back. It’s really a great entrepreneur’s bearing to say this. Ren Zhengfei also explained why we want to sell glory. The main reason is that the United States wants to kill Huawei. Glory is no longer alive. It also involves a large number of agents, dealers and the jobs of millions of people. Without Huawei’s arms, glory can live. I hope the United States will not find fault again.
Next, Xiaomi, oppo and Meizu will be in trouble.
Does the national development and Reform Commission name Baoneng automobile really make cars or take land?
On November 25, a red headed document issued by the national development and Reform Commission (as shown in the figure below) quickly swiped the screen, requiring all localities to carry out investigation on the production and project situation of new energy vehicles, and named two enterprises.
The date of signing was November 13, and it has been more than ten days since the document was released. Why the fermentation has been rapid in these two days is unknown. Some media reported the latest progress, and the national development and Reform Commission has responded to the above-mentioned “notice”: “this matter is being implemented, and it is not convenient to talk about it now.” The side confirmed the authenticity of the document.
New energy vehicle industry is going to change?
I can’t help but think of the news a few days ago that Baoneng automobile Xi’an base was officially completed and put into operation, with a total planned production capacity of 1 million vehicles! At that time, leveraged real estate still discussed with friends, can Bao sell so many cars?
Feng Lei said that when a financial company wants to build a car, it has revealed its ambition. Obviously, there is a story in this. Baoneng and Evergrande, under the banner of making cars, are engaged in financial business with Evergrande. If they don’t do anything, they can just take the land, and they can achieve empty handed white wolf. Therefore, everything is to die, no wonder others
Domestic events
CAAC: release the passenger transport price of domestic routes operated by more than three air transport enterprises.
CCTV: officials from international organizations said that China’s poverty reduction experience is a treasure house.
Voice of the community: if Huawei issues a resolution, who will advise to build a car again can be transferred from his post.
Observer: on the detention of 53 Australian coal ships in China, the Australian Prime Minister said that we want to live in harmony with China.
Financial affairs
Ministry of industry and information technology and Health Commission: jointly organize the application of 5g + medical and health application pilot project.
Ministry of industry and information technology: accelerate the digital transformation of manufacturing industry and strengthen the construction of new infrastructure such as industrial Internet and 5g network.
Financial Association: Condiment prices rose, the price of scallion rose, and the supply was tight before the Spring Festival.
SAIC Group: it plans to participate in the establishment of a partnership with nearly 5.4 billion yuan, and the fund plans to invest in Zhiji automobile with Alibaba.
China Securities News: Wang Jianlin sells five-star hotel project in the United States! Wanda empties its overseas real estate and withdraws funds to deleverage.

In the past, shopping paradise has become a “ghost business circle”! What happened?

Many Chinese tourists who have visited South Korea have been to Mingdong, the bustling District of Seoul. There not only gathered all kinds of Korean brand stores, but also a number of large department stores and duty-free shops, which are very popular among tourists. Affected by the epidemic, the vacancy rate of shops in Mingdong business district is as high as 28.5%, which is even called “ghost business district” by South Korean media.
Video of CCTV finance and Economics
In South Korea, the famous Mingdong business district is located in a place where it has been the top land price in South Korea for 17 consecutive years, about RMB 1.18 million per square meter.
The shops at the entrance of the main street in Mingdong are all gold shops. However, many shops have been closed or even empty, and there are not a few such shops in Mingdong. Nowadays, most of the people who visit Mingdong are office workers nearby. It’s hard to connect the ever crowded Mingdong with the scene in front of you. Even so near the main street, some alleys are almost empty.
South Korea’s first store in Mingdong, an internationally renowned fashion brand, will close at the end of this month, and buildings near the landmark Mingdong art theater are also being rented.
According to the data released recently by Korea’s real estate research institute, the vacancy rate of small shops with a total area of less than 330 square meters under two floors in Seoul in the third quarter of this year was 5.7%, the highest since statistics. The vacancy rate of Mingdong is five times of the average, as high as 28.5%.
As a landmark business district in Seoul and a popular tourist attraction for foreign tourists to visit South Korea, the top ten land prices in South Korea are basically located in Mingdong. Affected by the epidemic situation, the number of tourists visiting South Korea has dropped sharply this year, which has directly hit Mingdong and reduced the flow of personnel by nearly 90%. Many businesses said that their sales volume is less than 30% of that of previous years.

South Korea
In addition to the Mingdong business district, the vacancy rate of shops in Jiangnan, Xincun, Zhonglu and other business districts where South Korean people are concentrated is two to three times higher than that of last year. In particular, South Korea’s domestic consumption shrank, and many brand stores and cinemas were closed, which accelerated the depression of business circle.
Earlier, the South Korean government called on shop owners to reduce shop rents by reducing corporate tax or income tax. With the long-term epidemic, the South Korean government recently extended this policy to June next year. Many shop owners in Mingdong said that even if the rent is reduced to 50%, it still can not stop the pace of shop tenants withdrawing.
Recently, the epidemic situation in South Korea has worsened again. Under the high-intensity epidemic prevention measures, the passenger flow has been further reduced, making the business circle’s operation worse. In the past, the noisy and lively streets of Mingdong are now only the music played by the shops.

Talking about the market

International events
Surging news: get rid of “menstrual poverty”! Scotland has become the first region in the world to provide free menstrual supplies.
China News Network: Pakistan prime minister approved draft legislation on chemical castration of rapists.
World Wide Web: trump announced a pardon for former national security adviser Michael Flynn.
Observer: UK GDP is expected to shrink by 11.3% this year, the biggest contraction in 300 years.
Global network: Ethiopia’s prime minister said that 72 hours after the ultimatum, the army had been ordered to march into Tigre state capital.
Talking about the market
Yesterday, the U.S. market was closed… The day before yesterday, a wave of killing was not enough. Yesterday, another wave was killed in the day.
Look at the end of the day before yesterday that look for life and death of children, yesterday morning, the second kill fall is not unexpected.
But what happened? It also provides an excellent opportunity for foreign investors to copy the bottom.
Yesterday’s such a good opportunity, people are really rude. They have been flowing in all day and accelerating again in the end of the day. By the end of the day, the net inflow was as high as 8.1 billion, which was a match with the tens of billions on Monday.
It has to be said that domestic funds are still wasted, which can not be compared with overseas funds.
At the end of the year, the central bank should be able to raise the stock market by a large margin.
Even the Asia Pacific stock market is against you, including Hong Kong stocks, which are close to each other. At the end of the year, it is the time for major funds to rush performance. Looking at the recent plate performance, traditional industries are obviously stronger, such as wine making, finance and several major cycle sectors. New energy vehicles are one of the few emerging industries that contribute to performance. This shows that funds tend to be conservative in order to maintain their rankings near the end of the year.
Ali joined hands with SAIC to build a car
In November 26th, SAIC and the government of Pudong New Area signed a strategic cooperation agreement at the Shanghai center. SAIC’s high-end smart electric vehicle project was officially named “Chi Chi car” and settled in Pudong. At present, Zhiji automobile has completed the initial round financing of more than 10 billion yuan, which is jointly built by SAIC Group, Pudong New Area and Alibaba group.
Under the market orientation, only two types of new energy vehicles have real competitiveness, that is, low-end vehicles compete with cost and high-end vehicles compete with intelligence.
Obviously, in order to develop new energy vehicles, high-end models full of intelligent technology are indispensable puzzles; coincidentally, high-end brands are just the fields that almost all Chinese automobile enterprises have been pursuing, but have not been able to. In recent ten years, the two major strategies of China’s automobile industry, electrification and high-end, have been deeply overlapped, and high-end intelligent electric vehicles are imperative.
So many car makers need batteries? Obviously, Ningde and BYD have big opportunities.
Important information of individual stocks
Baoxin Technology: Jiangsu jiedeng will become the controlling shareholder of the company by transferring 5% of the company’s shares at a premium
Qin’an Co., Ltd.: the hybrid products developed by the subsidiary are in the early stage of research and development, and there are no mature and applicable products at present

How can a pen support the trillion market?

I don’t know if you have noticed that more than ten years ago, the products in the stationery shop were still divided into two parts, half real color and half morning light. Now, stationery stores rarely see real color products again.

Looking at the recent situation of Chenguang, we can get a glimpse from the latest financial report.

cheng guang

8 times growth of “small track”

On October 27, Chenguang stationery released the third quarter report of 2020.

According to the report, the company achieved 8.538 billion yuan of operating revenue in the first three quarters, with a year-on-year growth of 7.43%, and a net profit of 913 million yuan, a year-on-year increase of 13.85%.

In the past eight years, the overall revenue growth of Chenguang stationery has been maintained above 22%, which is no less than that of Maotai and Haitian; in terms of net profit, it has increased from 129 million yuan in 2011 to 1.06 billion yuan in 2019, an increase of more than 8 times.

Stationery is an industry that can make money stably through the economic cycle: the demand elasticity is small, the industry periodicity is weak, and the fluctuation of enterprise development is small.

As a leader in the industry, Chenguang naturally receives more attention. Since listing, it has risen from the lowest 7.7 yuan to the highest 83.27 yuan in five and a half years.

However, we can see that the growth rate of stationery market is slowing down.

With the change of domestic population structure, the decline of birth rate, and the gradual promotion of network and paperless office teaching, the contribution of stationery industry relying on quantity growth is weakened, and more growth comes from consumption upgrading and product upgrading.

However, China’s per capita stationery consumption is only 105 yuan / year, which is more than double the global average consumption level of 240 yuan / year. If the per capita consumption is doubled, the stationery market size is expected to exceed 300 billion yuan in the future.

In addition, the concentration of China’s stationery industry is still very low. There are more than 8000 stationery enterprises in China, and only 5 enterprises with sales of more than 1 billion are Chenguang stationery, deli group, Qixin group, Guangbo shares and true color stationery.

Among them, the largest company, Chenguang stationery market share is only 7.3%, and the top five companies only account for 17%.

Compared with the 67% Cr5 market share of the stationery industry in the United States and 62.5% in the Japanese stationery industry, there is still more than three times the gap between the domestic leading enterprises, and there is still room for the growth of head enterprises.

Bottleneck and struggle

At the beginning of 2008, Chenguang was just a manufacturer selling refills. When the business reached a certain scale, it naturally faced the bottleneck of development, and its revenue has been unable to go up.

After inspecting a large number of markets, the chairman of the board decided to replace new signboards for the shops around the school free of charge. Each signboard cost at least 3000 yuan, which was also a big expense at that time. Of course, the premise was that the store could only sell the pen of morning light in the future.

The shop owner thought, in any case, a brand new white, sell whose pen is not sold?

As a result, Chenguang began to seize the market crazily. Later, Chenguang replaced the shelves of stores for free, on the condition of increasing sales categories, such as schoolbags, book clips, notebooks, stickers, toys, and so on. In this way, Chenguang transformed from a company that only sold pencil refills into a company of stationery categories, with explosive growth in revenue.

Up to now, Chenguang stationery has been involved in seven major businesses, including fine cultural and creative products, children’s fine arts, office stationery, popular stationery, krip, retail stores, and Chenguang technology. It has 36 first-class partners, second-class and third-class partners in nearly 1200 cities in China, and has more than 85000 retail terminals.

By the end of 2019, the number of terminal stores covered by morninglight reached 85000, an increase of 11.84% over the same period of the previous year, and the campus coverage rate exceeded 80%.

Among the 180000 stationery retail terminals in China, there are about 4 stationery retail terminals in Chenguang for every 10 school side stationery stores.

Bottleneck and struggle of chengguang

However, the company’s traditional retail business is also facing increasing competitive pressure.
The proportion of traditional core business of Chenguang is decreasing year by year. According to the 2019 annual report, “with the change of domestic population structure and the decline of birth rate, the contribution of traditional core business to income by increasing sales volume is weakening.”
Correspondingly, the new business for tob office market, Chenguang klip, is experiencing rapid growth. From 2016 to 2018, its revenue has doubled for three consecutive years, with an increase of 41.45% in 2019, which may become a highly anticipated new focus in the future development of Chenguang stationery.
As an office direct selling business platform, Chenguang krip mainly provides one-stop office procurement services for government, enterprises and institutions, Fortune 500 enterprises and other small and medium-sized enterprises.

cheng guang
Why direct marketing? American office stationery market gives the answer: direct selling is a good track.
According to ibis statistics, in 2016, the size of the U.S. office stationery market was about 43 billion yuan, of which the direct sales channel accounted for about 50%. The two leading companies, staples and Odie, occupy more than 80% of the market share. Both of them have been impacted by e-commerce, resulting in the shrinkage of offline retail business, but the b-end business is still strong. The reason is that the direct sales business is relatively stable and is not vulnerable to external shocks.
Office direct selling refers to the direct sales of office supplies enterprises by means of directional marketing, Direct stores, e-commerce, etc. the products cover office supplies, office consumables, office equipment and other fields. In China, the customers of direct selling business are mainly government agencies, large central enterprises, top 500 enterprises and enterprises with a certain scale.
In fact, the market capacity of office direct selling business is much higher than that of traditional retail market.
The data shows that the market scale of student stationery in China is about 50 billion yuan, and the retail market capacity of office stationery is about 90 billion yuan.
However, the direct sales market capacity of large office supplies is trillions (including IT equipment and other products), and the industry growth rate is faster than the traditional retail market.
According to the data of China industry information network, the market scale of domestic large office stationery (including office furniture, equipment, etc.) will be 2.07 trillion in 2019, and the compound average growth rate is expected to be about 9% in the next three to five years.
In 2019, the sales revenue of Chenguang office direct sales business reached 3.658 billion yuan, accounting for 32% of the total, surpassing the company’s traditional retail office stationery (21.07%) and writing tools (19.63%), becoming the company’s largest source of business income.
In addition, Chenguang has also opened the layout of offline retail stores, mainly including Chenguang life center and Jiumu sundry club. In 2019, the revenue of these offline retail stores is 600 million, with a year-on-year growth of 96%. Among them, the revenue of Jiumu sundry club is 460 million, with a year-on-year growth of 200%.
It can be seen that the growth of the morning light business is very fast, but at present most stores are in a state of loss, and the loss is gradually narrowing.
From the perspective of Chenguang’s gross profit margin, it has been maintained at about 26% in the past five years, while the net interest rate has declined slightly, from 10.86% in 2015 to 9.66% in 2019. The main reason is that the net interest rate of krip is very low, only about 3%, and the retail stores and Chenguang technology are in a state of loss or break even, which lowers the overall net interest rate.
It can be seen that Chenguang is trying its best to catch up with the top in terms of both the office direct sales business of Tob and the layout of new retail formats. However, it is still uncertain whether the healthy growth can be sustained in the future.