Extreme rabbit 6.8 billion yuan to buy Baishi domestic express business
The express delivery industry suddenly ushered in a "change".
65438129 October, Baishi Group and JT Extreme Rabbit Express announced that they had reached a strategic cooperation intention, and Baishi Group agreed to transfer its domestic express delivery business to Extreme Rabbit at a price of about 6.8 billion yuan. In the future, Best will further focus on express delivery, supply chain and international core logistics business, and deeply cultivate integrated smart supply chain services.
In response to this transaction, Zhou Shaoning, founder, chairman and CEO of Baishi Group, said, "I believe this cooperation is in the interests of all parties and is conducive to promoting the establishment of a benign and positive industry ecology. Best has been committed to building a comprehensive smart supply chain service, empowering the digital economy with advanced information technology and excellent operational capabilities. This strategic cooperation is also to better adapt to the new development pattern and implement the Group's long-term strategic planning. Best will concentrate its energy and resources to further promote the deep integration of supply chain, express delivery and international business, accelerate business development, and build an international integrated smart supply chain service. "
Fan Suzhou, CEO of Extreme Rabbit, also said, "Best Express has accumulated many years of industry experience, good infrastructure and excellent franchisee network resources. The complementary advantages of this acquisition can optimize the terminal network layout of both parties in the China market, promote the refined operation of the network, provide better services to customers, and promote the healthy and healthy growth of the industry. "
It is worth noting that Baishi Group said that this business transfer only involves domestic express delivery business and has no impact on international, express delivery and supply chain business.
According to the financial report data of the second quarter of this year, the total freight volume of Best Express in the second quarter reached 2.44 million tons, up 9.3% year-on-year, and its leading position in the industry was further consolidated. The gross profit margin of Baishi supply chain increased to 9% in the second quarter, an increase of nearly 4 percentage points over the previous quarter. Best International's express delivery business in Southeast Asia has shown a good development momentum. In the second quarter, the total package volume in Southeast Asia increased by 65,438+040.7% year on year.
At present, the two sides are making steady progress on the transfer. According to PR Newswire, Baishi is currently expected to get about 3.9 billion yuan in cash from this business. The sale depends on the specific trading conditions and the approval of the applicable regulatory authorities. The transaction is currently expected to be completed in the first quarter of 2022.
On the evening of the 29th, Baishi Group rose sharply before trading, ending at $2.65.
Almost forever bankrupt
Baishi Group transferred its domestic express delivery business to Polar Rabbit Express, which is inseparable from its own operation.
Best Group's main income sources are express delivery and express delivery, and it has been losing money in recent years.
According to the financial report-
In 2020, Best Group's annual operating income was 30 billion yuan, down 7.3% year-on-year, and its annual net loss was 20.5/kloc-0.0 billion yuan, and its gross profit also dropped 85.5% to 238 million yuan.
In the first half of 20021,the half-year revenue of Baishi group was 138438+0 billion yuan, and the net loss was185 million yuan. At the same time, its asset-liability ratio has exceeded 95%, which means that it is only one step away from insolvency.
Best Group once said in the financial report that the net loss increased sharply in 2020, and the operating cash flow pressure was greater, mainly due to the negative impact of the epidemic in the first quarter of 2020 and the fierce market competition between the express delivery industry and the China freight service market, which caused greater downward pressure on the express delivery and freight service charges.
In the first half of this year, the national express delivery business volume totaled 49.39 billion pieces, a year-on-year increase of 45.8%. The growth rate of Baishi Express's business volume obviously lags behind the growth rate of the industry, and its market share further fell to 8.2% in the first half of the year.
Figure/Shuang Yi Consulting
"Jisu" polar rabbit
On the other hand, according to public information, Extreme Rabbit Express Company was established in August 2065438+2005, started in Southeast Asia market, and went online in China last March, with rapid growth.
After entering the domestic market, Polar Rabbit once again plunged the express delivery industry into a bitter battle of low-price competition. According to media reports, the early polar rabbit can be 1 ~ 1.5 yuan lower than Tongda line, and enjoy the preferential treatment of 5 yuan, which is the first in China and half cheaper than Tongda line. The person in charge of the polar rabbit even said that he was prepared to lose money for two years.
At the same time, relying on the strong binding with many products, the number of polar rabbits keeps rising. According to the latest report of Haitong Securities in September, the market share of Polar Rabbit has reached 14%, second only to Zhongtong, Dayun and Tong Yuan, making it the fourth largest e-commerce express company in China.
According to public data, in June 2020, 10 and early this year, the daily orders of polar rabbits reached 5 million, 10 and 20 million respectively.
In April this year, Extreme Rabbit completed a new round of financing of $654.38+$800 million, and its current valuation has reached $7.8 billion. In one year, Polar Rabbit's team in China has expanded to 654.38+0.5 million, with a global team of 350,000. At present, it has basically covered all provinces, autonomous regions and municipalities in China.
Extremely rabbit is expected to get involved in Ali e-commerce?
It is reported that at present, Polar Rabbit has access to almost all e-commerce platforms except Ali.
It is worth noting that, according to LatePost, after the completion of this acquisition, Ali will maintain the interface with Best Express China for a long time, while Best Express China will maintain independent brand operation.
The deeper significance of this move is that perhaps in the future, Extreme Rabbit will access Ali's e-commerce system, which is more valuable than the transaction itself for Extreme Rabbit, which is in urgent need of incremental orders.
According to analysis, Extreme Rabbit has been eager to access the Ali e-commerce platform.
Extreme rabbit 6.8 billion yuan to buy Baishi domestic express business
Pinduoduo's orders helped Polar Rabbit gain a firm foothold in the China market, but after the second quarter of this year, the growth of Pinduoduo's own users and orders will soon hit the ceiling.
Pinduoduo's recent financial report shows that from the middle of last year to the middle of this year, the number of active buyers reached 849 million. According to the data released by China Internet Network Information Center at the beginning of the year, the number of netizens in China is only 989 million, and the penetration rate in Pinduoduo has exceeded 86%.
According to the Red Star Capital Bureau, at the beginning of this year, Li Jie, the founder of Extreme Rabbit, interviewed Liu Zheng, CFO of Alibaba Group's rookie network, about accessing the Ali system, but Ali did not agree with Li Jie's request at that time.
Only in the Ali system, eternal life has become the breakthrough of the extremely rabbit. According to public information, Ali is the largest single shareholder of Baishi, with a shareholding ratio of 37%. Ali is also the most important source of orders for Best.
Does the industry usher in a new round of reshuffle?
If the acquisition is successfully completed, the pattern of "four links, one reaching and one shunfeng" maintained by the express delivery industry for many years will be broken and become a new pattern of "three links, one reaching and one rabbit+shunfeng".
As mentioned above, the rapid rise of polar rabbit benefits from its low price strategy. However, for the price war in the express delivery industry, the supervision has turned red.
On April 9 this year, Yiwu Post Office punished Extreme Rabbit and Best Express Company for dumping at low prices, and some distribution centers of these two express companies in Yiwu were also shut down for rectification. The State Administration of Market Supervision has also promulgated the Provisions on Administrative Punishment for Price Violations, and the market chaos caused by the price war in the express delivery industry is also regulated here.
Some analysts believe that the price war of express delivery in China has ushered in an "inflection point". Through integration and reorganization, the network processing ability of Polar Rabbit has been strengthened, which is expected to enhance its market competitiveness and reduce disorderly competition in the industry. After changing the domestic express delivery business to rabbit, Best can better focus on the development of express delivery, supply chain and international business and transform the international supply chain platform.
Source | 265438+20th Century Business Herald, Beijing Daily, LatePost, 36Kr, Red Star Capital Bureau.
Editor intern Wang of this issue