Tagged: business

Asahi group acquires AB InBev Australia Business

Asahi group, a Japanese beer giant, said on Friday that it would suspend overseas investment after spending $11 billion to acquire the Australian business of AB InBev (65.14%, 1.57% and 2.47%), and is committed to halving the group’s debt.

Asahi group acquires AB InBev Australia Business

“Basically, we don’t think about any big acquisitions,” said Atsushi Katsuki, Asahi’s chief executive, who took office last month

 

The company said it plans to triple its debt to EBITDA ratio from six times at the end of last year.

 

In Japan, Asahi group has been hit more severely than its competitors in COVID-19 because of its dependence on selling barreled beer to restaurants and bars, as many restaurants and bars are in trouble in the long crisis. Nevertheless, the company forecast in February that its full year operating profit would exceed that of fy2019.

Battery business moves to China

Sk innovation, a battery subsidiary of SK group in South Korea, said on Tuesday that if the president of the United States does not overturn a ruling by the United States International Trade Commission (ITC) by April 11, it will consider all options, including the withdrawal of battery business from the United States.

Battery business moves to China

“The company has been consulting experts on how to withdraw our battery business from the United States,” said a sk innovation spokesman

 

“We are considering the option of moving our battery production in the United States to Europe or China, which will cost us tens of billions of won,” she said

 

Sk innovation has warned that Biden would be forced to stop building a $2.6 billion battery plant in Georgia if he did not use the 60 day presidential review period to overturn the decision.

 

Earlier this month, the U.

 

According to the opinion, there are serious destruction behaviors within sk. Sk senior management has instructed subordinates at all levels to destroy evidence, and collecting and destroying information has become the common practice of SK and is defaulted.

 

ITC also holds that LG’s claim that SK infringes on LG’s 22 trade secrets is tenable. Considering SK’s manpower and technical level, it is difficult for SK to independently develop relevant battery technology within 10 years. Therefore, the 22 Trade Secrets of LG will be the object of legal relief, and SK will be prohibited from exporting batteries and modules to the United States in the next 10 years. Sk has asked for a one-year ban on exports.

 

In addition, ITC has decided to suspend the import ban on Ford and Volkswagen for four and two years, so that the two companies will find other battery partners to replace SK during the period.

 

Last week SK filed a motion with the U.S. International Trade Commission to ask it not to enforce February’s ruling, calling the orders “catastrophic.”.

Behind the intensive financing of housing enterprises in the first year

Spark Global Limited

At the beginning of the year 2021, real estate companies are intensively financing in the bond market. Since January, more than 30 companies have disclosed bond issuance plans, and the total scale of domestic and foreign bond issuance has reached the order of 100 billion yuan.

Although this round of bond issuance has the inertia of “snatching away” at the beginning of the year, two important backgrounds cannot be ignored.

In 2020, the “three red lines” policy for real estate financing management and the centralized management system for real estate loans in the banking industry have been introduced successively, which will limit the debt scale of real estate enterprises to a certain extent. At the same time, 2021 will be the largest year for real estate companies to mature debt.

The Shell Research Institute recently released a report that the scale of debt due in 2021 (excluding the ultra-short-term bonds to be issued in 2021) is expected to exceed 1.2 trillion yuan, an increase of 36% year-on-year, and historically break through the trillion mark.

The “three red lines” superimposed on debt repayment pressure will enable real estate companies to usher in the most tight period of cash flow. Affected by this, real estate companies’ land acquisition, investment and other operational strategies will all be adjusted, and scale growth will inevitably slow down. From a longer-term perspective, the development thinking of the industry is gradually changing.

Tight cash flow will become the norm

High quotas, low interest rates, and mainly US dollar debt have become the characteristics of this round of real estate financing. In terms of cost, the final coupon rate of the 2.5 billion 5-year corporate bonds issued by Greentown Group is only 3.92%; the 1.0 billion 5-year corporate bonds proposed by Yuexiu Financial Holdings have a coupon rate as low as 3.3%-4.3%. .

The interest rates of US dollar bonds issued during the same period were mostly slightly lower than last year. For example, Country Garden plans to issue US$1.2 billion in bills with a maximum interest rate of only 3.3%.

From the perspective of bond issuance purposes, in addition to replenishing funds, borrowing new and repaying the old is also an important consideration. Some companies exchange old debts with higher interest rates for relatively cheap and longer-period new debt.

Yan Yuejin, director of the Think Tank Center of Shanghai E-House Research Institute, told the 21st Century Business Herald that although the beginning of the year was the traditional peak time for real estate financing, the intention of companies to seize the policy window period was also very obvious. Since last year, the real estate financial prudential management system has tried its best, which has made companies realize that the model of large-scale debt development has been difficult to work. In particular, the “three red lines” policy will directly limit the scale of corporate debt.

But before the “three red lines” policy is fully implemented, companies can still manage debt relatively flexibly. The emergence of this round of bond issuance has a factor of “break through” during the window period.

In fact, delaying the debt repayment cycle through debt swaps can also help ease the short-term debt repayment pressure. The report released by the Shell Research Institute shows that since 2018, the debt repayment scale of real estate companies has grown rapidly year by year. In 2021, the scale of due debt of real estate companies is expected to reach 1,244.8 billion yuan, a year-on-year increase of 36%, and a historic breakthrough in the trillion mark.

The only specail bank controlled by bank

On the evening of December 21, the Postal Savings Bank of China issued an announcement on the Shanghai Stock Exchange stating that it intends to wholly-fund the establishment of China Post Hui Wanjia Bank Co., Ltd. (hereinafter referred to as “Post Hui Wanjia Bank”) with a registered capital of RMB 5 billion. The place of registration is proposed to be Shanghai, and the postal savings bank will hold 100% of the shares.

money

This is the third independent legal person direct sales bank in China after CITIC Baixin Bank, which was established in 2017 and China Merchants Topology Bank, which was recently approved for establishment. It is also the only independent legal person direct sales bank that will be 100% controlled by the bank.

01
The first 100% bank holding

Being 100% wholly-owned by the bank, it is the biggest difference between Yuhui Wanjia Bank and the previous two direct banks. Baixin Bank and Topology Bank adopt a joint venture model of commercial bank + Internet company. Baidu and JD Digital both initially hold 30% of the shares.

At the same time, from the perspective of capital, the registered capital of Yuhui Wanjia Bank is planned to be 5 billion yuan, while the preparatory period for Baixin Bank and Topology Bank is 2 billion yuan (currently Baixin Bank has increased its capital to 5.6 billion yuan).

“The sum of 5 billion yuan in one breath shows the importance and high expectations of Postal Savings Bank of China’s direct banking subsidiaries.” Dong Ximiao, chief researcher of China Merchants Finance and a think tank researcher of the Asian Financial Cooperation Association, said in an interview with a reporter from the Financial Times.

Indeed, the Postal Savings Bank of China is sending the Yuhui Wanjia Bank to the bank’s reform and innovation test field. The Postal Savings Bank of China stated in the announcement that the establishment of the Postal Savings Bank of China is an important measure taken by the Postal Savings Bank to deepen the reform of the system and mechanism and actively explore financial technology innovation. The bank’s own business development needs will help to improve the service level and service efficiency of Postal Savings Bank, so as to better serve the rural revitalization strategy, implement digital inclusive finance, and support the development of the real economy.

“Unlike ordinary Internet banks which only have online service functions, Postal Savings Bank, as a group, can not only broaden service channels through direct banking, but also rely on nearly 40,000 offline outlets to better serve online customers and achieve’online “Online + offline” service linkage, resulting in a differentiated advantage that is different from other pure Internet banks.” Guosen Securities analyst Wang Jian believes.

In this announcement, the Postal Savings Bank of China specifically pointed out that the Post Hui Wanjia Bank “aims to explore an innovative business model for online and offline collaborative development”: revitalize and empower offline networks, accelerate digital, agile, and scenario-based transformations, and build The “second curve” of the transformation and development of Postal Savings Bank of China.

02
What will Yuhui Wanjia do in the future?
China Postal Savings can be traced back to the postal savings business established in 1919. It has a history of one hundred years. The business philosophy of “people are too subtle and cumbersome; do not strive for profit, but seek stability” is deeply rooted in the hearts of the people. The “stable” gene is deeply rooted in the blood of the Postal Savings Bank.

As the name suggests, “Postal Benefit Wanjia” has inherited the “Puhui” gene of Postal Savings Bank. The relevant person in charge of the bank introduced to reporters that the representative of “Post” in “Postal Hui Wanjia Bank” is in the same line as the Post and Postal Savings Bank and embodies the brand gene; “Benefit” reflects the inclusive responsibility of direct selling banks; “Wanjia” It means “benefit all families and serve all families”.

“From the perspective of the name, it is still the parent bank logo (CITIC, China Merchants, China Post) + bank name (Baixin, Topology, Yuhui Wanjia) model.’Youhui Wanjia’ is a homonym for’Preferential Wanjia’, with It has a strong local flavor, which fits its main positioning of serving the “three rural areas” and small and micro enterprises.” Dong Ximiao believes.

According to the announcement issued by the Postal Savings Bank of China, the Post-Hui Wanjia Bank aims to explore an innovative business model for online and offline coordinated development, based on technological means, inclusive concepts, and market operations, implement the national rural revitalization strategy, and practice “services” The development mission of “agriculture, rural areas and farmers, helping small and micro businesses, and benefiting the general public” is to create an innovative connection platform for financial services for rural revitalization and technology to help a better life.

The Central Economic Work Conference held a few days ago clearly stated, “We must continue to stimulate the vitality of market entities, improve tax and fee reduction policies, strengthen inclusive financial services, and make greater efforts to promote reform and innovation, so that market entities, especially small, medium and micro enterprises and individual businesses Increase vitality”; “We must comprehensively promote rural revitalization, grasp agricultural production, and promote rural reform and rural construction.”

It can be seen that for Yuhui Wanjia Bank, it is both a responsibility and an opportunity to implement inclusive finance and serve the “three rural” and small and micro enterprises.

In this regard, the relevant person in charge of the Postal Savings Bank of China stated that the Post-Hui Wanjia Bank will give full play to its own advantages, help rural revitalization by building a financial service model suitable for the modernization of agricultural and rural development, and use financial technology to help alleviate the financing difficulties and expensive financing of small and micro enterprises. , The problem of slow financing makes financial services more convenient, more diverse, and more affordable, and covers more and wider customer groups.

03
Is expected to become a strong assist in the transformation of the parent bank

“The biggest advantage of Yuhui Wanjia Bank is still the resources of the parent bank. The biggest challenge is how to integrate the resources of the parent bank. The linkage between the parent bank and the subsidiary bank, and the online and offline collaboration, has a long way to go.” Dong Ximiao emphasized the analysis.

“Retailers gain the world” is the consensus of the industry. As a large state-owned commercial bank, Postal Savings Bank of China has nearly 40,000 business outlets, covering 99% of counties and cities in China; personal customers exceed 600 million, covering more than 40% of China’s total population, and it has a natural retail endowment. In recent years, Postal Savings Bank of China is accelerating its deployment of new retail with digital transformation as the main line, and the establishment of a wholly-owned direct selling bank is also expected to be a powerful assist in the bank’s transformation.

“After a traditional bank opens a direct bank, the most important thing is to increase coverage of new customer groups through the Internet and other means, or to dig deeper into the value of old customers, that is, to bring’incremental value’ to the bank, otherwise the direct bank becomes a simple Internet banking.” Wang Jian believes that the establishment of a direct bank by Postal Savings Bank of China is expected to bring incremental value to Postal Savings Bank in terms of opening up new customer groups and tapping the value of old customers.

Industry insiders further analyzed that Postal Savings Bank has a large number of customers, most of which are obtained by Postal Savings Bank through offline outlets across the country. Compared with other major banks and national banks such as joint-stock banks, the outlets of Postal Savings Bank are more sinking, and the proportion of distribution in economically developed regions is relatively low.

“By establishing a direct sales bank, Postal Savings Bank of China is expected to further expand its customer acquisition channels on the basis of traditional offline outlets, thereby covering new customer groups, especially customer groups in economically developed regions, and will help to further strengthen channels in economically developed regions. Advantages to increase customer coverage.” Wang Jian believes.

At the same time, the direct bank to be established by Postal Savings Bank of China is essentially an “Internet Bank” controlled by a commercial bank. Therefore, it is expected to increase the means and effects of serving customers through the application of the Internet and big data, so as to better serve customers. Mining the value of existing customers.

“PSB has 600 million individual customers who have brought a lot of low-cost deposits to the bank, and there is still room for deep digging into customer asset business and wealth management business value. The establishment of a direct bank is expected to help the company better tap customer value. “Wang Jian analyzed.

In addition, the establishment of direct selling banks is expected to further enhance the strength of Postal Savings Bank in Internet finance, which also fully reflects the spirit of active reform of traditional commercial banks under the background of new technology and new economy.

“Every year, about 3% of its operating income is invested in the field of information technology.” The reporter learned from the Postal Savings Bank that in recent years the bank has regarded information technology as the core driving force for business development and continues to increase its investment in information technology.

Brokerage “clearance style” selling sales department!

Recently, the news that China Development Bank Securities sold 90% of its sales offices in one breath has attracted the attention of the industry. Although it is common for brokers to abolish sales offices and branches in the industry, it is still quite rare for brokers to start such a ruthless. Some insiders pointed out that CDB Securities’ move is behind the company’s strategic transformation or cost considerations, but on the other hand, it is also a microcosm of the current changes in the functions of the brokerage business department.
Earlier, the brokerage business accounted for a relatively large proportion of the brokerage’s main income. In order to seize the share, brokerages also raced to compete and set up sales departments or branches across the country. It can be said that at that time, the sales Contributions to the development and growth of China are indispensable. However, in recent years, under the tide of the transition from brokerage business to wealth management business, the functions of the brokerage business department have also quietly changed, starting to shift from the traditional heavy trading model to the service heavy, and light or new business departments may become mainstream in the future.

Brokerage “clearance style” sales sales department
Or for these reasons
On November 16, the Beijing Financial Assets Exchange posted a message that CDB Securities intends to transfer the assets and related rights and interests of its nine business departments at a price of RMB 72,957,700. According to public information, the total number of business departments under CDB Securities is 10, in other words, CDB Securities intends to sell 90% of its sales offices this time, which is almost a “clearance” deal.
According to the transfer information, the 9 business offices that China Development Bank Securities intends to transfer are located in Beijing, Tianjin, Baoding and Shanghai. The transfer price is RMB 72,957,700. In addition, 7 of the 9 sales offices transferred this time have been established for a long time, at least more than 7 years.
Such a “heavy hand” has naturally attracted the attention of the industry. Although the abolition of the sales department is not new in the securities, under the epidemic situation at the beginning of the year, many brokerages have also adjusted their branches and sales departments, but it has to be said that 90% of the sales under the one-time “package sale” The brokerage of the Ministry is still very rare in the industry.
So, what are the considerations for China Development Bank Securities’ move?
“The abolition of the sales department is mainly due to the consideration of reducing costs and increasing efficiency. The competition in the industry has become fierce, and the brokers who have always been considered by the market to be rich in money do not dare to spend money randomly. The sales department that cannot create obvious value for the company will definitely be Abolition. In addition to the direct cause of cost reduction, the abolition of the business department also reflects a deeper strategic change in the securities industry. With the empowerment of financial technology, the continuous advancement of onlineization has made it convenient for customers and saved brokerage costs.” Beijing Yizhong Insiders of the brokerage said.
A related person in the Fed’s securities brokerage business told reporters that a few years ago, major brokerages laid out a large area of ​​offline outlets. With the transformation of business models to online, it is normal for offline outlets to be cancelled. Necessary for the normal operation of the brokerage.
The relevant person in charge of Guojin Securities said that in the past, the abolition of the business department was more due to poor management and the closure of the store. In this case, the package sale of the business department reflected the result of the brokerage’s initiative to make strategic transformation and focus on institutional services. According to the country’s overall plan, in the future, there will be aircraft carrier-level leading brokerage firms. Therefore, cases of mergers and reorganizations among brokerage firms should not be new. “In the future, each brokerage firm chooses not to do anything, how to make a differentiated competitive advantage and avoid falling into the quagmire of the price war of homogeneous competition, which may be a problem that every brokerage firm needs to think about.”

From heavy transaction to heavy service
The functions of the brokerage business department quietly changed
Despite the company’s strategic transformation or cost considerations behind the sale of 90% of the sales department of CDB Securities, from another perspective, it is also a microcosm of the current changes in the functions of the securities business department.
A few years ago, the traditional sales department played an important role in the securities dealers’ race-staking. Under the pressure of competition to seize market share, the establishment of sales departments and branches across the country became an inevitable choice for most securities companies. There are more and more of them, and more of them show a trend of “heavy duty”. It can be said that at that time, the brokerage business department contributed to the development and growth of its brokerage business. However, in recent years, the functions of the brokerage business department have quietly changed, and they have begun to transform into a light or new type of business department.
An insider of a medium-sized brokerage firm in Beijing said, “Many functions of the traditional sales department, such as transactions, can already be realized online. From the customer’s operating habits, fewer and fewer people are willing to go to the sales department for on-site transactions. To attract customers, it is necessary to provide more characteristic services.” In his view, the positioning of the sales department should complement online services and provide customers with high-end, differentiated, and online services that are difficult to achieve and satisfy. Some sales departments can even be built as ‘image shops’ to function as brand maintenance.
The above-mentioned Fed securities brokerage business person also said that at present, the business department is the business promotion terminal, customer service terminal, and experience display terminal of the brokerage. A relevant person from a brokerage firm in East China said that since the beginning of this year, the brokerage business department has switched to online business. This has not only tested the online services of brokerage firms, but also made more brokers think about the necessity of offline business departments.
“In the post-Internet era of today’s brokerage firms, especially after experiencing the test of the epidemic, the onlineization of customers’ various counter services and regular services has become a general trend, and the original counter-handling functions of the sales department will gradually weaken.” , Said the above-mentioned person in charge of China International Finance Securities. It said that the main functions and positioning of the sales department may be transformed into four directions, one is the outlets that receive high-net-worth customers. Some customers, especially high-net-worth customers, often need to be customized for their individual needs, or the financial products they purchase are more complex, and it is difficult to complete the purchase online, so face-to-face communication with customers in the sales department. It is a more effective way of communication. The second is a place for communication between customers. Through holding salons, seminars, etc., customers and employees, customers and customers form a good interaction, and increase the customer’s dependence on the company. The third is the local promotion network of tools and products. “As the saying goes, “The smell of wine is also afraid of the deep alleys.” After the company headquarters has good tools and products, it often needs to be promoted offline to realize the popularization of applications.” The fourth is the function of brand promotion. In his view, the sales department outlets are to make customers feel that there is a place that they can see and touch offline. When they have problems, in addition to online customer service, there is also an offline outlet to provide services to customers at any time. Will make customers feel better.
It can be seen that the current brokerage business department has gradually shifted from the traditional heavy trading to the service-oriented direction. Especially as the brokers are transforming to wealth management, the investor experience is more important. Insiders of a medium-sized brokerage firm in Beijing said that the C-type sales department may become the mainstream in the future. Compared with the traditional A-type business department and the B-type business department that can provide some on-site transaction services, the C-type business department neither provides on-site transaction services, nor does it need to be equipped with corresponding computer room equipment, which is in line with the trend of light assets.
The relevant person in charge of Ping An Securities also stated that the current investment advisory teams of the branches of each business department provide face-to-face services to customers in the region at the business outlets. “In fact, only a small amount of face-to-face, most of which provide services through corporate WeChat and on-site salons. This layer combines and connects standardized, high-quality services and personalized and warm services.”