[? A billion euro guide? ]? How to live when the gas field is dim.

By Zeng Zeng Le

Editor Yang Yaru

Compared with the listing two years ago, the aura of "the first share of used car e-commerce" has been slightly bleak. In less than two years, compared with the market value of $2.97 billion on the day of listing, the market value of Xinyou evaporated by nearly $2.5 billion, and the stock price fell by 80%. This time, the heart has the choice to "slim down" and hand over the story of "having a heart" to 58 cities to continue telling.

On March 24th, 58 Tongcheng announced that it had signed an agreement with Xinyou Group to acquire Xinyou B2B used car online auction business for 654.38+05 billion US dollars (about 746 million yuan). After the transaction is completed, Xinyou will focus on the main business "national purchase", and 58 cities will build a circulation system for the used car industry.

As soon as this news came out, it triggered a high mood in the capital market. On the day of the announcement, the share prices of 58 Tongcheng and Xinyou once rose by more than 8% and 17% respectively.

Talking about this cooperation, according to Dai Kun, founder, chairman and CEO of Xinyou Group, "B2B business is the starting point for Xinyou to explore the second-hand car e-commerce in China, but with the transformation of Xinyou to the personal consumer market, the strategic focus of the group has shifted." The implication is that after divesting this business, Xinyi will focus on B2C "national purchase" business.

Yao Jinbo, CEO of Buyer 58 City, said, "Providing used car auction services to car dealers is part of our core strategy. In the future, we will continue to improve our service capabilities in the B-end market, not only helping car dealers sell cars, but also helping them collect cars through online auctions to promote the efficient circulation of the used car industry. "

According to the wishes of both parties, this acquisition is a hit-and-run business, and everyone is profitable.

In other words, it is not so much strategic cooperation as strategic complementarity with 58 cities. On the one hand, there is a need for sufficient cash flow to maintain the company's development; On the other hand, the excellent letter service can meet the needs of 58 cities to broaden their business scope.

Heart has the day of listing on Nasdaq/Heart has the official Weibo.

But it is not difficult to see that this acquisition is another helpless move to survive. In July last year, Xinyou used its used car trading to help Golden? Pacers (58 Finance) merged and upgraded. Since then, it has been reported that 58 cities will acquire Xinyou, but it was later denied by both parties.

Now, Xin has once again stripped off his racket and handed the second card to 58 cities. This can't help but make people curious. What stories are left in today's heart?

0 1? Behind the "slimming" plan: the heart has a broken arm to survive

It is not without warning that there is a choice to sell and an auction business.

The stock price has been in a long-term downturn, the operating expenses are high, the debt continues, and the cash flow pressure is high ... The heart that has fallen into many crises is even worse under the influence of the epidemic "black swan".

An internal letter of "employees stop work and wait for posts, executives reduce their salaries" highlights the difficult situation in their hearts. On March 1 day, I wrote to some employees, saying that due to the company's operating difficulties, employees need to stop working from now on and wait for their posts. Just one day ago, Xinyou issued a document to adjust the salaries of some employees: ordinary employees will be reduced by 20%-30%, and executives will be reduced by more than 40%. The regulation lasts for three months and will be implemented temporarily until May 3, this year1day.

Have a stop notice/network screenshot?

In response, the heart responded that "this move is to cope with the impact of the epidemic and tide over the difficulties. It has won the support and understanding of the vast majority of employees and will persist in not laying off employees in a responsible manner. "

Therefore, selling the business of "having a heart" and getting timely cash flow through "slimming" has become the only way out for the heart to save itself.

For a long time in the past, I have been worried about the decline of the stock price. Suffering from "malicious short selling" once became a "dark moment" in my heart. Affected by this, the share price of Xinyou once fell by more than 50%, and the market value of that day evaporated by 385 million US dollars.

Watchmaker/Yiou Automobile Business Analyst? Zeng le

At the same time, the performance of its financial data can also show that the heart is really "short of money."

The third quarter financial report of Xinyou 20 19 shows that after considering the impact of the divestiture of loan assistance business, the total income is 46 1 100 million yuan, up by 33.4% year on year; Although the adjusted net loss of non-GAAP narrowed by 48.3% year-on-year, it still lost 268 million yuan. During the period of 2065438+the first nine months of 2009, there was a heart loss of101300 million yuan. In the past few years, XinYou has been losing money. It is understood that from 20 16 to 20 18, there were net losses of139,300 yuan, 2.748 billion yuan and153,800 yuan respectively.

Behind the high loss is the heavy debt repayment pressure.

From the third quarter of 20 18 to the third quarter of 20 19, the existing asset-liability ratio continued to grow and remained high. In the third quarter of 20 19, the debt-to-asset ratio reached 78.5 1%, the highest point in the past year.

By combing the financial report and announcement information, Yiou Automobile found that "convertible bonds" are the main debts currently in mind.

In the past year and a half, Xinyou has issued convertible bonds three times in a row. After the second issue of convertible bonds and the divestiture of financial business, as of June 30, 2009, there were convertible bonds158100000 yuan in mind and long-term loans of 293 million yuan. 2065438+July 2009, did you send a message to the Pacific Ocean? The bridge sold convertible bonds, adding 350 million yuan. So far, the accumulated long-term debt (including convertible bonds) has exceeded 2.2 billion yuan. ?

Watchmaker/Yiou Automobile Business Analyst? Zeng le

Under the debt, the heart that continues to suffer huge losses even needs to "sell blood to survive." ?

Besides selling the loan business to Golden? Pacers, the heart has got $654.38 billion in cash. June 5438+this year 10, Xinyou sold its accident car auction business to Boche. Com was sold for 330 million yuan. Plus $6,543.8+500 million yuan (about 746 million yuan) from the sale of the "heart-sent" business. This means that through "cutting meat and slimming down", Xinyou * * has obtained a cash flow of about 654.38+78.7 million yuan. This figure is far below the total accumulated debt. Insolvency has become a more embarrassing pain point, and it has not crossed the profit balance point.

In fact, it is no longer the current cash cow to have a racket. When Xinyou went public in June, 20 18, Xinyou Pai was the pillar business of Xinyou. At that time, Xinyou's business included Xinyou's second-hand car, Xinyou's racket and Xinyou's finance. Contrasting with the financial data of 20 17 years, the total revenue is 195 1 100 million yuan and the total transaction amount reaches 43.4 billion yuan. Among them, the contribution of user transaction funds from terminal C is 26 billion1600 million yuan, the contribution of user transaction funds from terminal B is1737.8 billion yuan, and the contribution of used car loans is1306.5 billion yuan.

However, from the third quarter of 20 18 to the third quarter of 20 19, the B2B business of Xinyou always accounted for less than 30% of the total revenue. On the contrary, the national procurement business achieved a substantial increase. The idea of starting with the B2B business of used cars has turned the original important income source of the 2B business into an "abandoned child".

Watchmaker/Yiou Automobile Business Analyst? Zeng le

"If you put your car through your heart, you can get a better source of car, which can form the basis of trust. Only by doing it on a large scale can we make money. Once the supply is large, the size of retailers will rise. " Dai Kun once said this in an interview with the media. But before this happens, Xinyou has managed to change the lane 2C.

Facing the shrinking 2B business, Xinyoupai has become a "hot potato". Did the heart say that it was to stop bleeding better, but to give up this hand? According to the analysis of insiders, there is no problem with the B2B business model itself, which can provide online auction services for merchants. However, for Xinyou, the commercial profit of B2B is limited, and its development has been in a bottleneck. The departure of its CEO, Jing Wenbing, once again proves that the value of having a heart is not great.

Coupled with the environmental impact, the used car business has basically stagnated in the past two months. According to the data released by china automobile dealers association, the national used car market was about 7. 1 10000 in February, down 9 1. 19% year-on-year. According to insiders of Xinyou, the average daily transaction volume of Xinyou's main business in China can reach more than 300 orders, and now it is only about 80 orders, a drop of more than 70%. Obviously, the heart has reached the moment of "life and death". The most important task at present is to survive.

Therefore, dismantling the heart has auction business, which means that the heart has concentrated its strength while isolating high risks, making its financial situation healthier; But another practical problem is that the heart can no longer survive by splitting the existing business.

The last battle is a direct way out for the heart.

02? The Ideal Gold Mine: All of it? In the "national procurement"

Visible to the naked eye, at present, some of the main business of the heart has been relaxed, leaving only the "national purchase" card.

Dai Kun once called this business an "ideal gold mine". In his view, this "gold mine" has solved three problems: raising the matching relationship between supply and demand of used cars to the height of "unlimited choice", realizing digital transparency, and providing one-stop service for car delivery and nationwide warranty.

The founder, chairman and CEO of Xinyou Group? Dai Kun/Heart has an official Weibo.

Thus, from 2065438 to June 2007, Xinyou officially launched the national direct purchase business, which was called "the first" in the used car e-commerce platform at that time. At that time, with the gradual implementation of the policy of "removing the restrictions on the movement of used cars", consumers' acceptance of cross-regional car purchase became higher and higher, which provided more imagination space for the used car market. Therefore, it is not difficult to understand the initial intention of doing a good job in 2C national procurement business.

Under the existing key layout, its 2C business income has accounted for more than 70% of its total income in the past year. ? Obviously, it is hopeful that the "national procurement" of 2C business will be regarded as a major focus to turn the tide.

At present, the business of Heart 2C is mainly divided into two major sources of income: commission income and value-added expenses. ? Among them, the former is similar to the "intermediary fee", which is charged to consumers according to a certain proportion of the car sales price; The latter refers to the cost of value-added services such as insurance and warranty. ?

The financial reports of Xinyou 20 19Q2 and Q3 show that the commission income in the past two quarters is higher than the value-added expenses after the divestiture of the loan assistance business. However, the gap between the two tends to decrease, and the value-added cost is quite "chasing". It can be seen that Xinyi is not willing to be only an online "used car intermediary", and value-added services are still the key content of Chengyou's future revenue.

According to the recent financial data of Xinyou, in the third quarter of 20 19, the revenue of Xinyou 2C business was 327.5 million yuan, up by 246.9% year-on-year; 2C transaction volume increased to 23,566 transactions, with a year-on-year increase of 107.3%. It is indicated that 2C's national purchasing business has achieved seven consecutive quarters of growth.

However, by combing the data, Yiou Automobile found that the growth rate of the national purchase business with 2C in mind was relatively slow. In the third quarter of 20 19, the business income only increased by RMB 60 million compared with the previous quarter. ?

Watchmaker/Yiou Automobile Business Analyst? Zeng le

In 20 16, the policy of restricting the movement of used cars in China began to be gradually cancelled. Up to now, more than 60% cities in China have cancelled the restrictions. This makes used cars become non-standardized goods, which can break the constraints of regional consumption differences, logistics and other issues. Therefore, in 20 17, Xinyou launched the cross-regional second-hand car sales business "national purchase" for C-end, breaking the restriction that second-hand cars can only be traded locally. ?

Today, the "national purchase" business has been favored by other players in the industry, and this business is becoming a hot business model of used car companies. In March last year, melon seeds were purchased nationwide. Judging from its official data, the performance is not backward. When the national open platform for purchasing melon seeds was launched 1 month, nearly 30,000 third-party businesses were connected. The goodwill between Scylla and Charybdis faces many tests.

Looking back, the "national purchase" business has not completely avoided risks. In the existing "national procurement" business, the company needs to set up warehouses all over the country to deliver goods on demand. In this asset-oriented operation mode, the inventory cost and risk will further increase the loss gap.

In addition, a used car dealer with many years of experience said that online B2C transactions are difficult to promote, so many platforms gain popularity by burning money and advertising. At the same time, in the transaction process, it is difficult for consumers to judge the vehicle situation, and the price is prone to moisture and disputes.

Coupled with the impact of the epidemic, the used car market, including Xinyou, is experiencing an unprecedented disaster. Although the heart has made a choice. However, without the excellent letter of B-end hematopoiesis, in the future, we can only continue to exert our strength in the national purchase business that seems to have more profit space, seek new profit points and tell new stories.

Heart has a booth/heart has an official Weibo.

On the other hand, the second-hand car industry is now facing certain development difficulties. In addition to the heart, only in hundreds of offline stores, melon seeds used cars with heavy asset model are facing high operating costs. Pay cuts for all employees, policy optimization, closure or relocation of some stores, car purchase and maintenance business nationwide ... Big search car and melon seeds are also carrying out "slimming" plans.

The situation of used car e-commerce is not easy now.

03? Old wine in new bottles: the ambition of 58 cities

For 58 cities, this business seems to be good.

The same city can consolidate B2B business by acquiring Youxinpai, which is a great upgrade to its system. In addition, in this environment, the price of 1 100 million dollars is relatively cheap for 58 cities, and the pressure is not great.

In fact, 58 cities have long taken a fancy to the used car business. As early as 20 16, 58 cities, which are relatively located in the fields of recruitment, real estate and local life, have already laid out in the field of used cars.

From 2065438 to March 2006, 58 Tongcheng was also one of its shareholders in the $204.5 million financing of melon seeds used cars. But soon, this "marriage" collapsed. In the first quarter of 20 19, 58 Tongcheng announced that it would withdraw more than 700 million dollars from the used car of Guazi, but 58 still owns a minority stake in Guazi and has business cooperation with Guazi.

In recent years, investing in melon seeds used cars has brought huge profits to 58 cities. 58 The financial report of Tongcheng 20 19 fiscal year shows that the net profit attributable to ordinary shareholders is 8.28 billion yuan, up by 3 14.5% year-on-year, and the net profit attributable to ordinary shareholders under non-American accounting standards is 7.98 billion yuan, up by 193% year-on-year. Excluding the investment income from the sale of Cheduo shares and the income tax expenses that should be borne, the net profit of non-American accounting standards in 2065438+2009 was 3.6 billion yuan, a year-on-year increase of 32.4%.

Back to the heart, there is a connection with 58 cities, and the cooperation between the two sides can be traced back to May last year.

Less than three months after withdrawing from melon seeds, 58 cities transferred the proceeds to the heart. 2065438+May 2009, Xinyou announced the completion of a new round of strategic financing of about $230 million. In this round of financing, in addition to existing investors such as Huaping Investment and TPG, 58 Tongcheng, as a new strategic investment partner, made the industry connect the two for the first time.

Watchmaker/Yiou Automobile Business Analyst? Zeng le

At that time, the binding between 58 cities and melon seeds was not profound. Judging from the rate of return, at the beginning of 20 19, melon seeds were valued at almost $9 billion, even exceeding the market value of 58 cities (about $8.75 billion). At this time, withdrawing cash means high cash.

In addition, from the analysis of business portfolio, 58 cities are engaged in the business of selling traffic and buying traffic through large traffic portals such as Baidu. According to Yiou Automobile, Xinyou accepted 58 quotations about high flow, and then the two sides began to cooperate. On the one hand, the heart can make up for the lack of car sources and services in 58 cities. On the other hand, Yao Jinbo in 58 cities also bluntly took a fancy to the "all-people purchase" business.

After the acquisition of Tongcheng Youxinpai, the business scope of the company was updated, and the second-hand car distribution, brokerage and appraisal were all included in the business. "Through the advantages of platform traffic and resources, we will strengthen our online auction ability and make it an authoritative brand for online circulation of used cars. At the same time, the two sides will achieve a high degree of synergy in terms of traffic acquisition, vehicle source, vehicle detection, big data and SaaS. " 58 city said.

58 The same city is increasing the trading volume of used cars, and it does not rule out continuing to expand the automobile business in the future.

However, it is not difficult for 58 cities to put old wine into new bottles. It is inevitable to encounter obstacles in B2B business in 58 cities. Controlling used car dealers scattered in the area is a headache. In the used car market, there is always a lack of trust in the buying atmosphere, which makes the already delicate market relationship more tense. Whether the same city can really solve the problems faced by the used car industry is still unknown.

Street at night /pexels

Nowadays, the "blue ocean" of the used car market is becoming a "red sea".

The entry of giants such as BAT and Ping An has enriched the players in the used car market. In recent years, financing wars, marketing wars and model wars in the industry have been staged in turn. No one wants to give up the "cake" of the used car market in China easily.

At the same time, the used car platform has been in constant turmoil in recent years. At the beginning of 20 19, everyone's car was exposed to bankruptcy rumors; In June 5438+February of the same year, Chezhibao, a used car platform, was caught in rumors such as "fraud" and "empty building". Under the influence of the epidemic, the fragile capital chain was "worse". Major used car e-commerce companies have exposed the news of layoffs, and it has become a helpless move for most used car companies to better "live" by reducing labor costs.

For the used car market that has experienced crazy money burning and barbaric growth, the unclear profit model has become a mountain in front of it. The second-hand car e-commerce platform wants to make a profit, which is not a one-off event and requires deep business precipitation. With the ebb of capital, it is difficult for players to continue to seize the market share of used cars by burning money. In any case, trust, brand and word-of-mouth are the constant themes of the used car market.

At present, there is not much time left for my heart.

This article comes from car home, the author of the car manufacturer, and does not represent car home's position.