Back in 2012, there was only Fengchaos Qianlang express delivery company in the express cabinet market.
Over the past eight years, the industry has attracted large and small players, attracting all kinds of capital to bow down. Fengchao, which has spread more than 180000 express cabinets nationwide, has already smashed in billions of yuan. Not only that, but Fengchao is also later ranked as the most powerful rival, express delivery.
There are probably no winners in the express cabinet market.
However, the actual controller of Fengchao is Wang Wei, who obviously does not think so.
Wang Wei is also the actual controller and chairman of Shunfeng holding, a legendary tycoon in Chinas logistics industry. He owns both Shunfeng express and Fengchao express cabinets, which may have a chance to form a perfect business combination.
The most valuable company in the future is not the one making money, but the one with data. For express cabinet industry related questions, Wang Wei said this sentence.
On May 6, Shunfeng holdings issued the announcement on giving up the right of preferred capital increase and related party transactions of joint stock companies, in which it said:
Shenzhen Shunfeng Investment Co., Ltd., the former transit subsidiary of Shunfeng holding, holds 14.43% of the equity of Shenzhen Fengchao Technology Co., Ltd. (hereinafter referred to as Fengchao technology). In 2019, Fengchao technology carried out equity restructuring based on its business development needs, and its overseas financing platform hiveboxhold - ings Limited (hereinafter referred to as Fengchao Cayman) controlled Fengchao technology through agreement control. After the reorganization, the ownership structure of Fengchao technology has not changed substantially. The company holds 13.67% equity of Fengchao Cayman through its overseas subsidiary radiant beyond Limited (liangyue Co., Ltd.).
In order to expand and strengthen the main business of intelligent express cabinets, integrate high-quality resources in the industry, quickly seize the last kilometer of the advantage location of express logistics, and provide more high-quality services to couriers and consumers, now Fengchao Cayman plans to make an important layout in the intelligent express cabinet market. Shenzhen Fengchao network technology Co., Ltd., a subsidiary of Fengchao Cayman and Fengchao Cayman (hereinafter referred to as Fengchao network) uff09With China Post Zhidi Technology Co., Ltd. (hereinafter referred to as China Post Zhidi) and its shareholders, China post Capital Management Co., Ltd. (hereinafter referred to as China Post capital), Chengdu Santai Holding Group Co., Ltd. (002312.sz, Hereinafter referred to as Santai holding), Zhejiang Yibao Network Technology Co., Ltd. (hereinafter referred to as Zhejiang Yibao) and Shenzhen Mingde holding Development Co., Ltd. (hereinafter referred to as Mingde holding) intend to sign a package deal agreement.
After the completion of this transaction, the original shareholders of China Post Zhidi, such as China Post capital, Santai holding, Zhejiang Yibao and Mingde holding (hereinafter referred to as the original shareholder or capital reducing party) will withdraw the capital reduction from China Post Zhidi, and China Post Zhidi will become a wholly-owned subsidiary of Fengchao network. The original shareholders of China Post Zhidi (including the subsidiary designated by the original shareholder) will have the right to subscribe the newly issued shares of Fengchao Cayman to become Fengchao Shareholders of the company. Shunfeng holding is not the original shareholder of China Post Zhidi, and does not participate in the subscription of new shares of Fengchao Cayman. After the original shareholders (including the subsidiary designated by the original shareholders) of China Post Zhidi exercise the warrants, the companys shareholding ratio in Fengchao Cayman will be from 13.67% Dilute to 9.75% u3002
In popular language, Fengchao Cayman makes the original shareholders of China Post Zhidi become the new shareholders of Fengchao Cayman by issuing additional shares. After the original shareholders of China Post Zhidi withdraw from the capital reduction, China Post Zhidi becomes a wholly-owned subsidiary of Fengchao network, a subsidiary of Fengchao Cayman.
The main business of China Post intelligent delivery is China Post Express Express Express Express cabinet.
In fact, the founder of express mail is not China Post capital, but the actual controller of Santai holding. In 2012, Bujian developed a 24-hour smart package self-service collection cabinet developed by Chengdu I Lai Grid Information Technology Co., Ltd. (the predecessor of China Post Zhidi, renamed in February 2019), and then began to promote it in the market.
In 2012, there was no Fengchao in the market, only express mail.
The promotion cost of express mail is high, and the capital investment for building express cabinets is huge. It was once thought that the supplementary construction could make profits soon, but in fact it is not. The huge investment led to the delay of Santai holding, a listed company, for two consecutive years, leading to the loss of Santai holding by st in 2017.
Despite the loss, the business development of express is very rapid. In 2017, the founder Bujian was unable to continue to operate express, and finally decided to sell most of the shares of express to China Post, rookie and Fosun.
When selling the shares of express mail, Bujian once sighed to the reporter of Economic Observer: capital is bloody. Do I have a choice? No choice! Let logistics giants promote express delivery!
At this time, Fengchao has just been established for two years. In the express cabinet market, Fengchao is a latecomer.
Now, the latecomers are on top. After Fengchao merges express express, it will become the unique leader in Chinas express cabinet Market and start to have a monopoly scale.
On May 12, according to the rolling figures on the official website of express delivery, 3.53 billion express deliveries have been delivered, serving 251 cities in China. Fengchaos scale is even larger. The official website claims that the layout of its terminal express cabinets has become the first in the industry, and it completed a round of financing of 2.5 billion yuan in January 2017 and January 2018, respectively.
Monopolizing express cabinet Market
The first to enter the express cabinet industry is the actual controller of Santai holding.
At this time, Bujian drew a beautiful blueprint: the courier used the express cabinet for receiving and dispatching. The express cabinet solved the problem that the receiver could not receive the express in person when he was not at home. At the same time, the express cabinet can also improve the dispatch efficiency of the courier, from only sending more than 100 bills a day to sending hundreds of bills.
The emergence of intelligent express cabinets immediately attracted the attention of the market. This is a market with huge potential. We need to know that there are billions of express packages in China in 2012, and by 2019, the number has grown to 50 billion.
Facing the huge market, Bujian is excited. In the work report of the board of directors in 2013, as the chairman of the board of directors, he wrote: Chengdu, a wholly-owned subsidiary, has set up branches and subsidiaries in more than ten cities in China, accelerating the strategic layout of express business in major cities in China, and improving the market share of express business. Express construction adopts a gradual mode and Internet thinking to solve the problem of the last 100 meters of express. Its construction speed and market scale are highly concerned by the industry, effectively improving the user experience. Express has become a domestic community service brand with great influence.
As the terminal and efficient offline entrance of logistics distribution, express is a typical grid operation service form, which needs to achieve scale effect through rapid expansion. After the formation of scale advantage, the difficulty of network expansion will be greatly reduced, the expansion speed will be rapidly improved, the bargaining power will be significantly improved, and the operation cost will be quickly diluted. An o2o offline comprehensive convenient service platform will be formed, which can not only meet the needs of community residents for convenient and quick one-stop service, but also become an important infrastructure for the construction of smart city in the era of Internet of things.
At this time, Santai holdings share price soared because of express mail, rising from the lowest 7 yuan to 20 yuan per share. Bujian did not expect that in just a few years, the rapid expansion of express mail will drag Santai holdings into the financial abyss.
The supplementary express business has made great progress. It has settled in more than ten cities, such as Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Chongqing, etc. by the end of 2013, 1200 communities have been distributed, and more than 5 million packages have been delivered safely through express.
In 2014, Santai holdings net profit after deducting non recurring profit and loss decreased by 19%, and the companys key investment in express mail offline development encountered challenges. However, Bujian still firmly believes that the selection direction of the new business model of express will bring a broader market space for the companys development.
The emergence of intelligent express cabinets has attracted the attention of all kinds of capital. This is a new industry, a new investment outlet, facing a large number of packages and users. The key is that it is still growing at a high speed, not growing by double digits every year. The double 11 held by Ali has broken the transaction record continuously.
Express cabinets may have an immeasurable future.
At this time, there is no choice but to invest more money, lay more express cabinets, occupy the community as much as possible, and occupy more market share of express cabinets, so as to compete with Fengchao established by the giants.
But it needs huge capital investment and fierce market competition, which will soon drag Santai holdings into the abyss of loss.
In 2015, Santai holdings continued to invest a large amount of money in the express business, and the company fell into a loss, with a loss of up to 400 million in that year. The company said that the competition in the express cabinet industry is intensified, and there is a risk of weakening the leading edge.
In fact, it is the same.
In the short three years after the establishment of Fengchao, a new force emerged. After several shuffles, Fengchao became a benchmark enterprise in the industry. In January 2017, 2.5 billion a rounds of financing were completed, and in the first quarter of 2018, a + rounds of financing were completed, with a market valuation of up to 9 billion.
After returning to China, Xu Yubin, CEO of Fengchao express cabinet, who asked dick (English name of Wang Wei, chairman of Shunfeng) to do the innovation project, recalled:
In 2015, in the face of the decision to acquire express mail, we chose to give up considering the difficult coordination of the business development team and the firm confidence of the Fengchao team in the future market. In the later (2017) acquisition of e stack, we won it decisively. E stacks strategic planning is very good. Its outlets are concentrated in North, Shanghai, Guangzhou and Shenzhen. It will be a sharp sword if it is incorporated into any terminal operation company.
E stack refers to Zhongji e stack, an intelligent express cabinet developed and operated by Shenzhen Zhongji e-commerce logistics technology Co., Ltd. (hereinafter referred to as Zhongji e-commerce).
2017 is a year of dramatic changes in the express cabinet industry.
Trapped in the abyss of years of losses and unable to carry on, the company has invested in a more powerful logistics giant, China Post, as well as Zhejiang Yibao and private capital Fosun of Ali department. The company has added national team capital to express mail, which has also changed its name to China Post Express. I came to Chengdu to change my name to China Post Zhike.
Fengchao was also judged as a chinese Unicorn enterprise for its acquisition of Zhongji e stack.
The market competition is still fierce. Both sides are expanding their territory, laying more express cabinets and occupying more market shares.
Until May 2020, Fengchao integrated express delivery was revealed.
From 2015 to 2020, Wang Wei finally completed the monopoly position of the express cabinet industry, and strengthened the relationship between Shunfeng and Fengchao. For example, if Shunfeng express users take away within 2 hours after arriving at Fengchao express cabinet, they can get a 2-yuan red packet, which is 1 yuan within 4 hours.
Is there a winner in the express cabinet industry? At present, it is impossible to judge whether this business type can make profits.
But behind the data mentioned by Wang Wei is a cruel reality:
In addition to Shunfeng, there are also rookies. Rookies gather more and larger data. In addition to Fengchao, there are also rookie stations everywhere. Most rookie stations are in the form of small sales department and parcel receiving and sending points, which is different from Fengchaos display of people in cold express cabinets. Cainiao post station can store packages of various logistics companies (including Shunfeng). The physical space for storing packages is larger and there is no charge.
Is this a win-win deal?
First, lets look at the financial situation of China Post Zhidi (express delivery). The data comes from Santai Holdings announcement on package deal of foreign investment on May 6.
This means that Fengchao, which has the first market share of express cabinets, and express mail, which has the second market share, have been in a loss state since their establishment. The net assets of express mail are negative, but the loss amount in 2019 is not as large as Fengchao.
Santai holding said that the companys, five hundred and fifty-five point five five five six The paid in registered capital of ten thousand yuan was fully reduced and 75% of the reduced capital was obtained, five hundred and fifty-five point five five five six The price of this package deal is based on the valuation of 9 billion yuan of equity transfer of Fengchao technology in June 2018, and determined through friendly consultation between Fengchao Cayman and the original shareholders of China Post intelligent delivery. In the process, the development potential of intelligent express cabinet market, operation efficiency, number of express cabinet outlets of both parties and other factors are comprehensively considered. After the completion of this transaction, China Post Zhidi will become a subsidiary of Fengchao Cayman. Dailuhold-ingslimited, a wholly-owned subsidiary of the company, will hold Fengchao Cayman 6.65% Of the company.
According to the reverse calculation of 6.65% equity of Fengchao Cayman obtained from the capital reduction of RMB 756 million of Santai holdings, after the merger, the current valuation of Fengchao is at least above RMB 11.362 billion.
That is to say, although it has been losing money for years, the market value of Fengchao has reached 11.3 billion yuan.
Recently, Fengchao has become the focus of public opinion because of charging to users. In some communities in Shanghai and Hangzhou, Fengchao express cabinets announced free storage for 12 hours, and after that, they collected 50 cents every 12 hours. Subsequently, the industry committee and property management of many communities announced to boycott Fengchao express cabinets and stop using Fengchao express cabinets.
In fact, the practice of charging users for express delivery in 2017 has been quietly implemented. The same effect is not good. Users complain about the courier and refuse to store packages in the express cabinet, which leads to conflicts between users and the courier due to charging problems.
Fengchao is in a dilemma.
In an open letter to users from Fengchao technology on May 9, Fengchao technology said that up to now, Fengchao has laid more than 180000 smart cabinets across the country, even if the turnover rate has increased by only 1%, it will also bring about a great increase in the utilization rate of resources.
In order to encourage users to pick up the items as soon as possible, Fengchao also launched the function of relatives and friends to pick up the items as soon as possible, as well as the reward of getting red packets for picking up the items as early as possible, including charging users this time. Fengchaos purpose is also to hope that users can take away the express delivery as soon as possible, but it caused public concern and user resistance.
On May 5, the owner committee of dongxinyuan community in Hangzhou issued a notice: in view of the fact that Fengchao express cabinet will charge the receiver overtime storage fee from May 6 without negotiation, the industry committee thought that this behavior damaged the interests of the owners of the community and violated the situation introduced when Fengchao entered the small area for negotiation. At present, the industry committee is negotiating. Before Fengchao express cabinet gives the solution, the industry committee decides to suspend the use of express cabinet from the date when the express cabinet officially collects the overtime storage fee (May 6, 2020), during which, the owners are requested to pick up the express as soon as possible, and the courier is requested not to put the express into Fengchao again.
Shunfeng express brother, who is responsible for the delivery of Liangjiang Xinchen community in Chongqing, told reporters that he can get 80 cents for each express delivery of Fengchao. If he put it in the rookie post station, he would have to pay 5 cents back. Our couriers certainly like to put Fengchao, but many communities have been unable to enter since the epidemic.
One user said: Fengchao can charge, provided that the courier needs to get permission to store again, and now there are very few on-site delivery, and they dont call to directly put Fengchao, which I refuse to pay.
All of these, will the express cabinet industry become an industry without winners like sharing bicycles and cars? (in China, there are no winners in the market in the two industries of sharing cars and bicycles, which have been proved by examples). With heavy investment in assets, high maintenance costs, few incomes and difficult profits, even if Fengchao eats up express delivery, it will not be able to make profits in the industry monopoly.
On the morning of May 12, the reporter of the Economic Observer asked Wang Wei, the actual controller of Fengchao, about the above questions. His reply was very brief. He said: the most valuable enterprise in the future is not the one that makes money, but the one that owns data. Thus, a new paradox arises. If Fengchao merges express, its ambition is to get more users and big data of the terminal, not to make profits. Now, Fengchao begins to charge users, but it is resisted by users to stop using Fengchao, will it lose more terminal data? There is no doubt that through this transaction, Fengchao has become a monopolist in the express cabinet market, but when can Fengchao generate profits and in what way, or do you want to make profits? Its still something worth exploring. Source: Economic Observer Author: Zhang Xiaohui editor in charge: Wang Xiaowu_ NF
On the morning of May 12, the reporter of the Economic Observer asked Wang Wei, the actual controller of Fengchao, about the above questions. His reply was very brief. He said: the most valuable enterprise in the future is not the one that makes money, but the one that owns data.
Thus, a new paradox arises.
If Fengchao merges express, its ambition is to get more users and big data of the terminal, not to make profits. Now, Fengchao begins to charge users, but it is resisted by users to stop using Fengchao, will it lose more terminal data?
There is no doubt that through this transaction, Fengchao has become a monopolist in the express cabinet market, but when can Fengchao generate profits and in what way, or do you want to make profits? Its still something worth exploring.