Tagged: competition

Alibaba is investigated

On the morning of the 24th, the People’s Daily client published a comment entitled “Strengthening Anti-Monopoly Supervision Is for Better Development”. The full text is as follows:

Recently, the State Administration of Market Supervision has filed a case for suspected monopolistic behaviors such as “choose one out of two” on Alibaba Group Holdings Co., Ltd. based on previous inspections and research based on reports. This is an important measure for my country to strengthen anti-monopoly supervision in the Internet field, which is conducive to standardizing the order of the industry and promoting the long-term and healthy development of the platform economy.

In recent years, my country’s online economy has developed vigorously, and new business forms and new models have emerged one after another, which has played an important role in promoting high-quality economic development and meeting the people’s growing needs for a better life. But at the same time, the online economy is also showing a trend of increasing market concentration by virtue of its data, technology, and capital advantages. Market resources are accelerating to concentrate on leading platforms. There are increasing reports and reports on platform monopoly issues, showing that online There are some risks and hidden dangers in economic development. The recent meetings of the Political Bureau of the Central Committee and the Central Economic Work Conference both clearly requested the strengthening of anti-monopoly and the prevention of disorderly expansion of capital, which received enthusiastic response and widespread support from the society. It can be seen that antitrust has become an urgent issue related to the overall situation.

Alibaba

Anti-monopoly and anti-unfair competition are inherent requirements for improving the socialist market economy system and promoting high-quality development. Fair competition is the core of the market economy. Only a fair competitive environment can achieve effective resource allocation and the survival of the fittest. Monopoly hinders fair competition, distorts resource allocation, harms the interests of market entities and consumers, and stifles technological progress. Regulators have been highly vigilant. Development and safety hazards. Since the birth of the online economy, my country has always supported and encouraged Internet platform enterprises to innovate and develop and enhance their international competitiveness. In August 2019, the “Guiding Opinions on Promoting the Standardized and Healthy Development of the Platform Economy” was issued, proposing measures to increase policy guidance, support and guarantees. It should be said that my country’s platform economy and online economy are in the forefront of the world and cannot be separated from the great era of reform and opening up. They benefited from China, the world’s largest market, and benefited from the government’s policy measures to encourage development and innovation. However, encouragement and regulation should be given equal attention. The online economy must be innovative and developed in accordance with laws and regulations. If the restrictions of laws and regulations are exceeded, market monopoly, disorderly expansion, and barbaric growth will eventually make the entire industry unable to achieve healthy and sustainable development. This time, the regulatory authorities initiated investigations into Internet companies suspected of monopolistic behavior in accordance with laws and regulations, precisely in order to better regulate and develop the online economy and allow the Internet industry to move better on the track of the rule of law.

Looking at the world, anti-monopoly is an international practice, which is conducive to protecting fair market competition and innovation, and safeguarding consumer rights. Faced with the “super platform” of the Internet, anti-monopoly law enforcement agencies around the world have adopted strict regulatory attitudes and restrictive measures. Strengthening anti-monopoly supervision, protecting the legitimate rights and interests of consumers, maintaining fair competition in the market order, and stimulating market vitality have become the general trend and popular desire. The United States is the first country in the world to promulgate antitrust laws. In recent years, the United States has continuously increased its antitrust investigations against Internet technology giants, focusing on the abuse of market dominance, suppressing competitors, obstructing innovation, and harming consumers. Interest etc. On December 15, the European Union promulgated the “Digital Services Law” and the “Digital Market Law” aimed at curbing unfair competition on large online platforms. In the past four years, Google, Apple, Facebook, Amazon and other technology giants have been subject to antitrust investigations around the world. Among them, the EU has imposed antitrust penalties on Google for three consecutive years from 2017 to 2019, with a cumulative amount of more than 9 billion US dollars.

Strengthening anti-monopoly supervision will also effectively promote innovation and promote co-governance. my country is recognized as one of the leading countries in the development of the global digital economy. It is more necessary to promote the healthy development of the industry through anti-monopoly, improve the digital rules, and lay a solid foundation for building a new development pattern. In recent years, my country’s anti-monopoly rule of law in the Internet field has made great progress. The “Guidelines for Anti-monopoly in the Platform Economy Field” have been publicly solicited for comments, which will effectively enhance the operability and predictability of the anti-monopoly legal system; announced earlier this year The “Anti-Monopoly Law” Amendment Draft (Draft for Public Comment) for the first time added provisions on the basis for determining the basis for Internet operators’ market dominance. It must be noted that the “Anti-Monopoly Law” applies to all entities and treats domestic and foreign capital, state-owned and private enterprises, large and medium-sized enterprises, Internet enterprises and traditional enterprises equally and equally. The purpose is to ensure the equal participation of various market entities. market competition. Only by continuously improving the legal norms of platform enterprise monopoly identification, data collection and use management, consumer rights protection, etc., and maintaining fair market competition, can the entire industry maintain its innovative vitality and achieve healthy development.

If you don’t follow the rules, you can’t make a circle. This investigation does not mean that the country’s attitude towards the encouragement and support of the platform economy has changed. It is precisely for the purpose of better regulating and developing the platform economy, guiding and promoting its healthy development, with a view to making improvements for the high-quality development of the Chinese economy. Great contribution. I believe that by strengthening anti-monopoly supervision, obstacles that affect the healthy development of the platform economy can be eliminated, and the platform economy will also usher in a better development environment.

How Brands Occupy Users Under The Intellectual Controversy

Recently, Jiang Nanchun, chairman of Focus Media, attended the “King of the New Economy” conference and reviewed the rapid rise of China’s new economy with a number of market participants, including Internet giants, investment institutions, local governments and traditional enterprises. The economy for the next decade. Years of impossibility.

In a discussion titled “A Decade of Mind Controversy,” Jiang Nanchun, Chen Xiaohua, chairman and CEO of Swan Daojia, and Bai Rubing, co-founder of Che Haoduo, discussed the new economic decade, how the company is positioning itself and how brands are taking over users’ minds.

照度

“Go back to today, go back to ten years ago, when you couldn’t use the Internet for food and taxis, and I’m sure everyone couldn’t go back. I believe that the whole consumer’s life has changed dramatically. The last ten years seem to change every year, a little bit, but the sum of ten years is a huge change. During this decade, there have been many changes, and many have not. Lots of changes, lots of Internet stories. There’s a lot of constant, maybe 10 years, 20 years, and even a place that continues to go deep and deep, but there’s also a lot of opportunity.” “Said Jiang Nanchun, chairman of the board of directors of the media.

As for the frequent traffic wars between Internet companies, Jiang Nanchun said: “At present, promotion is effective in the short term and can be increased in the short term. However, if it is not promoted later, it will not be sold. Transportation has to go with promotions, and transportation is getting more and more expensive. The trouble for many Chinese companies is that they have entered a state of double murder, with transport costs continuing to rise, unit prices for customers continuing to fall and margins getting thinner. Only by moving towards the brand can it change from quantity to quality.”

As for the difference between brand advertising and performance advertising, Nan Chun Jiang offers an interesting analogy. “The advantage of results advertising is that it produces results quickly, so you can see results quickly because it sees results, so trust it,” he said. Brand advertising may often need to be see and believe, so the effect of advertising often arouses your emotions, trigger some kind of behavior, is a kind of behavior, but the brand advertising depends on whether you have the common understanding of the brand advertising is therefore in shaping consumer awareness, and traffic advertisement is to arouse your emotions, two to three seconds after reading you must get a point, if you don’t click it, you’ll pass, so I think the difference between the two is not the same.

“In the ten years of the new economy, my biggest experience is to have rules,” said Jiang. To create a brand in the new economy, you have to create a category or identity, and therefore have a distinctive value. Society, we must seize the time window, in the time window, saturation attack, using its brand in consumers’ minds is a preconceived, I look forward to the future, in the critical period of transformation and upgrading of China’s economy, focus media can provide you with help more companies out of the homogeneity competition and price competition, the most effective way to use your unique brand infiltrate into the hearts of consumers, and create tens of billions and billions of a brand.”

With the continuous increase in industry concentration

With the continuous increase in industry concentration, competition among real estate companies has become increasingly fierce. In the context of the market’s entry into rational development and high-quality development, along with changes in the market environment and policies, the real estate industry may usher in a series of brand-new changes, including entering the stock market, demand-side upgrades, and cash flow management. For enterprises, the growth of their own assets basically means to a large extent, they have more confidence.
During the reporting period, the average value of total assets of the A-share sample companies in the first half of 2020 was 219.544 billion yuan, an increase of 15.74% year-on-year, but the increase was not as good as the same period in 2019; the average value of net assets was 412.70 trillion yuan, an increase of 23.51% year-on-year, compared with 2019 The growth rate during the same period increased by 4.52 percentage points. The average value of total assets of H-share sample companies in the first half of 2020 is 290.175 billion yuan, an increase of 14.32% year-on-year, which is lower than the same period in 2019; the average value of net assets is 561.58 trillion yuan, a year-on-year increase of 14.7%, and the increase rate is 4.7 compared to the same period in 2019 Percentage points.
On the whole, as the industry concentration continues to rise, real estate companies continue to scale up while consciously striding forward to achieve quality growth. Although the growth rate of enterprise scale has slowed down, the scale dispute between real estate companies will not immediately stop. The industry concentration is on the rise. If you don’t advance, you will retreat. Cases of big fish eating small fish have begun to increase in the industry.
In terms of revenue, in the “2020·China Listed Real Estate Companies Value List”, the average total operating income of A-share sample companies in the first half of 2020 is 17.201 billion yuan, a year-on-year increase of 2.79%, which is lower than the year-on-year increase of 27.01% in the same period in 2019. speed. The average total operating income of H-share sample companies in the first half of 2020 was 24.737 billion yuan, a year-on-year increase of 8.78%, which was lower than the year-on-year growth rate of 14.52% in the same period in 2019. The year-on-year growth rate of A-shares and H-shares slowed down in the first half of 2020, which may be related to the impact of the epidemic in the first half of the year.
Although the average revenue growth of real estate companies has slowed down, it still maintains a certain degree of growth, and it is an indisputable fact that the profitability of real estate companies is decreasing. In terms of profit scale, in the first half of 2020, the average net profit of A-shares and H-shares after deductions were 41.27 billion yuan and 56.158 billion yuan, respectively. Compared with the same period in 2019, there were different declines, a year-on-year decrease of 20.95% , 17.18%.
In terms of yield, the average return on equity (ROE) of the A-share sample companies in the first half of 2020 was 2.99%, which was far lower than the same period in 2019, down 2.73 percentage points; while the average ROA fell by 0.44 percentage points to 0.61%. The sales net profit margin also fell even more sharply. In the first half of 2020, the net sales margin of the A-share sample companies was 3.96%, which was 4.13 percentage points lower than the same period in 2019. Similarly, the sales gross profit margin also dropped by 5.69 percentage points to 29.58%.
In terms of H shares, the average return on net assets of the sample real estate companies in the first half of 2020 was 5.92%, a year-on-year decrease of 2.1 percentage points; the average net interest rate of total assets was 0.76, down 0.33 percentage points from the same period last year. In addition, the sales gross profit margin and net profit margin of non-deductible sales also declined. In the first half of 2020, the gross profit margin of sales fell 2.54 percentage points from the same period in 2019 to 30.34%; the net profit margin of non-deductible sales fell by 3.32 percentage points. To 6.21%.

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From the perspective of profitability, the overall profitability of real estate companies in the first half of 2020 was significantly lower than the same period in 2019. The main reason is that under the background of strict control of the epidemic in the first half of the year, the overall economic environment has been impacted, and customers have chosen to reduce travel due to subjective or objective factors, which has greatly affected the sales of real estate companies. In order to increase sales, many real estate companies have cut prices and sold them, which has reduced their profit scale and led to a decline in revenue.
Analyze the list with the characteristics of equity investment as the main theme of this research. Among the top 10 equity investment value rankings of A-share and H-share listed real estate companies, these companies mainly show good profitability, large enterprise scale, and strong financing capabilities Features.
In terms of A-shares, the total assets of the TOP10 real estate companies all exceed 250 billion yuan, and 9 of them are in the top 10 of the enterprise scale sub-list, and one is closely followed by the 12th. Among the TOP10 companies, there are a total of 3 real estate companies with total assets of more than one trillion yuan, which far surpasses other sample housing companies. Among them, Vanke’s total assets are 1.806 trillion yuan, Greenland’s total assets are 1.171 trillion yuan, and Poly’s total assets are 1.095. Rongsheng Development, which has the lowest total assets in the TOP10, reached 260.511 billion yuan.
In the sub-list of A-share companies, Vanke, relying on the long-term healthy development of the basic market and active exploration of diversified businesses, has ensured the long-term stable growth of the company’s main business and ranked first on the list. In the first half of 2020, Vanke achieved total operating income of 146.35 billion yuan, a year-on-year increase of 4.97%; net profit after deducting non-recurring gains and losses was 12.114 billion yuan, a year-on-year increase of 6.73%; total assets were 1,806.19 billion yuan, a year-on-year increase of 14.52%; Net assets were 291.26 billion yuan, a year-on-year increase of 25.29%. Vanke’s performance has grown steadily, ranking first among A-share listed real estate companies in terms of total assets, net assets and net profit after deducting non-recurring gains and losses. In addition, from the perspective of the growth of Vanke’s operating income and non-net profit from 2015 to 2019, the compound growth rate of Vanke’s operating income from 2015 to 2019 was 17.12%, and the net profit after deducting non-recurring gains and losses was 21.44%. The growth rate of net profit is faster than the growth rate of operating income, and the cost control ability has been improved.
TOP10 real estate companies generally have strong profitability, which means that they can bring higher returns to their shareholders and therefore have higher investment value. In the A-share profitability sub-list TOP10, the total list of TOP10 real estate companies occupy 7 seats, and there are a total of 3 net assets with a return on equity of more than 10%. They are Jinke shares 12.69%, China Fortune 12.17%, and Greenland Holdings 10.26% . Among them, China Fortune and Jinke shares are ranked in the forefront of the A-share profitability sub-list due to their high return on net assets, high return on total assets and net sales margin.
During the reporting period, China Fortune Land Development achieved revenue of RMB 37.372 billion, with an asset-liability ratio of 83.1%, a year-on-year decrease of 5.0 percentage points; the management expense ratio fell by 0.4 percentage points year-on-year, achieving three consecutive years of decline; the sales expense ratio was 1.6%, compared with the previous year Over the same period, it dropped by 0.6 percentage points. The net profit attributable to the parent was 6.062 billion yuan, and the net profit rate was 16.2%. The profitability was further released. In terms of Jinke shares, during the reporting period, the company achieved operating income of 30.306 billion yuan, a year-on-year increase of 16%; realized net profit of 4.259 billion yuan, a year-on-year increase of 34%, of which net profit attributable to shareholders of listed companies was 3.615 billion yuan, a year-on-year increase of 40% ; During the period, the net profit margin reached 14.05%, an increase of 2 percentage points from the same period last year.
In addition to leading scale and outstanding profitability, the top 10 real estate companies on the overall list also have their own advantages in financing, debt repayment, and operations. From the perspective of financing capacity, in the first half of 2020, the cash inflow generated by the A-share listed sample housing companies through financing activities reached 1,139.039 billion, with an average inflow of 21.905 billion; the data for the top 10 real estate companies on the total list reached 578.174 billion, with an average inflow of 578.17 100 million yuan, far exceeding the average financing scale of the industry. Among them, Poly Real Estate ranked first in the financing scale with 94.598 billion yuan in cash inflow from financing activities.
Poly Real Estate uses its strong background in central enterprises to obtain financing. The average financing cost in the first half of 2020 is 4.84%, and the cash inflow from financing activities is 94.598 billion yuan, ranking first in the financing ability sub-list. The company achieved total operating income of 73.706 billion yuan in the first half of the year, a year-on-year increase of 3.6%; net profit of 13.322 billion yuan, a year-on-year increase of 2.8%; net profit attributable to the parent of 10.124 billion yuan, a year-on-year increase of 1.7%, gross profit margin of 35.72%, and net profit margin of 18.07 %; Both revenue and net profit have grown steadily, achieving high-quality steady development.
In addition, in terms of operational capabilities, Greenland Holdings ranks first in the sub-list of sample companies’ operational capabilities, and is also the only large-scale real estate company with total assets of more than one trillion in the A-share operational capabilities list. Inventory turnover rate and total asset turnover rate were 0.27 and 0.18 respectively. High turnover drove the rapid expansion of enterprises. In the first half of 2020, Greenland Holdings paid back 125.7 billion yuan, and the return rate rose to 95% year-on-year. The quality of the return has improved significantly. Among them, the sales amount of residential products accounted for over 70%, and the return rate was as high as 106%.
In terms of H shares, during the reporting period, the total assets of TOP10 real estate companies exceeded 100 billion, of which Evergrande’s total assets exceeded 2 trillion, followed by Country Garden and Vanke, with total assets of nearly 2 trillion; There are three companies including Sunac, China Resources, and China Shipping; overall, the larger real estate companies still show high investment value. In the sub-list of H-share companies, China Evergrande and Country Garden have respectively become the leading models of asset scale and sales scale.
As the first real estate company whose assets exceeded RMB 2 trillion, “largest” is one of Evergrande’s main labels, and it has been leading other real estate companies so far. In the first half of 2020, China Evergrande’s total assets were 2,299.097 billion yuan, net assets were 316.455 billion yuan, and total operating income was 268.962 billion yuan, all of which ranked first among the sample companies. In terms of sales, Evergrande’s contracted sales amount in the first half of 2020 was 348.84 billion yuan, compared with 281.8 billion yuan in 2019, an increase of 23.8%, and 54% of the annual contracted sales target of 650 billion yuan was completed; the sales area was 38.632 million square meters. A year-on-year increase of 47.5%; cumulative sales collection was 312 billion yuan, a year-on-year increase of 66.5%, and the sales collection rate was 89.4%, a year-on-year increase of nearly 23 percentage points.
In the first half of 2020, Country Garden’s equity contract sales amount reached 266.95 billion yuan, and the equity sales area reached 31.85 million square meters. The sales amount and area continued to be the first in the industry; the equity contract sales return amount was 250.93 billion yuan, and the comprehensive equity return rate reached 94%, and has exceeded 90% for 5 consecutive years. From 2016 to 2019, Country Garden’s equity contract sales have a compound annual growth rate of 33%. Sufficient land reserves are the basis for the substantial growth of its sales scale. During the reporting period, Country Garden’s equity land reserves in Mainland China were 265.81 million square meters, equity saleable resources were 2,340.4 billion yuan, and equity saleable resources obtained were 1,6698 billion yuan. The potential saleable resources of equity is 670.6 billion yuan, and the abundant land reserves will strongly support the future development of Country Garden.