Source: Beijing Commercial Daily
Original title: Can SF Express introduce Ali’s 1+1 war vote in the same city to be greater than 2
On the eve of listing, SF Express chose Baotuan Ali. On November 30, SF Express announced on the Hong Kong Stock Exchange that it plans to issue nearly 131.2 million H shares through a Hong Kong IPO, with an offer price of HK$16.42-17.96 per share. It is expected to be listed on the Hong Kong Stock Exchange on December 14. It is worth noting that both Ali and Haro Travel are their strategic investors.Compared toDadaGroup andJingdongSF Express also found a traffic “big tree” in the same city. Resources betting on top companies again, what kind of changes will the same-city instant match track usher in?
Ali becomes an investor
It is understood that SF Express plans to issue nearly 131.2 million H shares through a Hong Kong IPO, of which 13,118,200 are offered in Hong Kong, approximately 118 million are offered in international offerings, and a 15% over-allotment option.
It is worth mentioning that before SF Express went public, it introduced Ali and Harbin Travel as cornerstone investors. According to the announcement, Taobao China Holdings Co., Ltd. has a subscription amount of HK$851 million. According to the minimum offer price of HK$16.42, Taobao China Holdings Co., Ltd. will subscribe for a total of 5,184,400 H shares. Assuming that the over-allotment option is not exercised, it accounts for the outstanding The share capital is approximately 5.55%. The subscription amount of Harbin Travel is HK$38.79 million. Under the same standard, the total number of H shares subscribed by it is 2,362,200 shares, accounting for approximately 0.25% of the issued share capital.
Hello, travel and Ali are also very close.According to the data, on November 9th, Haro Travel announced that it had obtainedAlibabaInvestors include Ant Group and Ali. This is both Ali’s first equity investment and Harbin Travel’s second financing this year.
Compared with the Dada Group backed by JD.com, SF Express has also found a large e-commerce company that can be leveraged. However, SF.com emphasized in the announcement that Ali will exist as a strategic investor and will not have the board of directors of SF.com.
Get traffic backer
It was a hit before going public, and the three parties all hoped to use the resources of the other party for a synergistic fit. For example, the cooperation between SF Express and Ali is mainly concentrated in the fields of marketing, supply chain, logistics and distribution, and software technology. These links are also links that SF Express is trying to strengthen.
In fact, in order to expand the order to form a scale effect, the marketing cost and distribution cost of the distribution company have always been the bulk of the expenditure. In the case of Dada Group, in the third quarter, Dada Group’s total costs and expenses totaled 2.28 billion yuan. In recent years, SF’s intra-city marketing expenses have also increased rapidly, from 12.2 million yuan in 2018 to 110 million yuan in 2020. Correspondingly, its customer base has also grown significantly. Active merchants increased from 13,000 to 167,000, and active users increased from 411,000 to approximately 5.1 million.
The significant expansion of user and merchant groups in 2020 is partly due to the catalysis of the epidemic on instant delivery. However, a reporter from Beijing Business Daily noted that the growth rate of SF Express on the merchant side and the user side has slowed down in recent years. From 2018 to 2020, its compound annual growth rate was 258.3%, 253.5% and 208.7%, while orders The compound annual growth rate of the volume is 424.1%, 105.7% and 152.5% respectively.
Therefore, when Ali’s intra-city retail ecology opens to SF Express, it will bring more traffic and business expansion opportunities for the latter. Data shows that during the “Double 11” period, the number of Ele.me merchants participating in half-price sales activities reached 1.3 million. This means that SF Express will not only have access to a huge merchant pool, but also have the opportunity to go deep into the fields of medicine and wine tourism.
As for the cooperation between SF Express and Haro Travel, the first focus is on the transportation capacity side. According to reports, the cooperation between the two parties will take the lead in two rounds of electricity exchange infrastructure, and will extend to local life services in the future. According to SF Express’s announcement, Haro Travel is conducting pilot tests on various emerging local services and products, including in-store service platforms, online ride-hailing services, hotel reservations, mobile grocery stores and online advertising services.
Intensified intra-city competition
With the rising costs of riders and manpower in the future, the investment in the same-city track will only continue to rise. From 2018 to 2020, the total loss of SF Express City has expanded from 328 million yuan to 758 million yuan. In the first five months of 2021, SF Express City has lost 353 million yuan.
As far as SF Express is concerned, the introduction of Ali can add more persuasiveness to its own development space and strive for the capital market’s confidence in the ready-to-distribute industry. Ali obtains the supplement of capacity from SF Express, which can stabilize the end-of-platform performance capability and integrate Hello, he will put more weight on the life business in the same city.
According to Ali’s financial report, as of September 30, 2021, the adjusted net profit was 28.52 billion yuan, a year-on-year decrease of 39%. In this regard, Ali explained that it was mainly due to the increase in investment by companies in key strategic areas that are showing steady business growth, including local life and community business platforms. In the third quarter, Ali’s local life service income was 9.51 billion yuan, an increase of 8% year-on-year, and its proportion of total revenue dropped slightly to 5%.
Adding another strategic partner also confirms Ali’s urgency to defend its business territory in the same city. It can be seen that Meituan remained stable in the third quarter of this year, with an increase in catering, food delivery, and in-store liquor travel. The financial report shows that in the past 12 months, Meituan’s annual transaction users reached 670 million, the number of active merchants reached 8.3 million, and the average annual number of users’ transactions reached 34.4, a year-on-year increase of 29%.
At the same time, JD.com is also adding ammunition to the same city retail. On the eve of “Double 11”, Dada Group undertook JD’s “hour shopping” business, and obtained traffic support from JD’s main website by embedding on the main website’s homepage, so as to grab users’ first choice for order placement with a shorter timeline. According to the latest financial report of Dada Group, in the 12 months ending September 30, 2021, the number of active users on the JD Daojia platform reached 57.1 million.
This time, Ali chose SF Express to tilt its resources toward leading companies, which means that ready-to-use companies such as flash delivery and UU errands will face more intense competition. Express professional Xu Yong believes that when Ali and SF Express choose to cooperate in the same city, differentiation will be formed on the subdivision of the track. Its businesses such as Hummingbird and SF Express have a low probability of competition among the same cities, and they mainly focus on resource scheduling and utilization and collaboration. “In the future market, under the circumstances of personalized, segmented, and fair services, resource sharing and industrial integration are the general trend. The upstream and downstream will enter the stage of the industrial chain. It is difficult for a single enterprise or supply chain to meet the needs of customers.”
Beijing Commercial Daily reporter He Qian