On July 23, the 21st century economic report reporter learned that China Ping An Property Insurance Co., Ltd. (hereinafter referred to as Ping An Property Insurance) recently approved the acquisition of shares in auto home (athm. N). Specifically, Ping An Property insurance purchased about 26% of the shares of autohome Inc. with its own funds (the shareholding ratio depends on the situation of capital exchange).
The current stock price of auto home is 80.21 U.S. dollars, which is basically the same as the stock price at the beginning of this year, and the current total market value is 9.551 billion US dollars. According to this calculation, the acquisition of 26% equity of auto home by Ping An Property Insurance will cost about US $2.48 billion (about RMB 17.4 billion). Ping An Property Insurance is a property insurance subsidiary of Ping An of China (601318. Sh, 2318. HK). Ping An Group has acquired the equity of auto home a few years ago.
At present, it is not clear from which shareholders Ping An Property Insurance will buy shares in auto home. In response to the inquiry of 21st century economic report reporter, Ping An Property Insurance said: Ping An Property Insurance is optimistic about the long-term development of automobile home. Both sides will cooperate closely in the future to provide better service and experience for consumers around the car ecology.
Previously, according to the documents submitted by auto home to the US SEC, as of June 18, US Eastern time, Ping An of China held about 58.72 million class a common shares of auto home through its wholly-owned subsidiary Yunchen capital Cayman (Yunchen capital), with a shareholding ratio of 49.4%. Yunchen capital reduced its holding of 3.1 million ads shares on June 18, at a price of 82.1 per ads, with a total cash withdrawal of about 255 million US dollars (about 1.81 billion yuan). This is the first large-scale reduction of Ping Ans holdings in four years since ping an entered the auto home.
Ping Ans first reduction
In 2016, it was the largest shareholder of Pingan auto Co., Ltd., which was the largest shareholder of China Auto Co., Ltd. with a total of US $4.5 billion on the acquisition date of 2016. The heated dispute over equity has come to an end temporarily.
Founded in 2005, auto home is positioned as an automotive vertical website, providing users with information on car selection, purchase, use and replacement. In 2013, it was listed on the NYSE with an offering price of $17 and a financing of $132.94 million. On April 15, 2016, Telstra, the largest shareholder of autohome, sold its 47.7% shares to Ping An insurance group of China. On April 16, the companys management led by Qin Zhi, CEO of auto home, as well as Boyu, hillhood capital and Sequoia China, prepared to privatize at a price of $31.50 per ads, while Ping An did not appear on the list of buyers. Although the price of the privatization consortium is higher than that of Ping An Trust, Telstra has not accepted this privatization scheme.
After a series of struggles among car home, Australia Telecom and Ping An of China, the control power of automobile home finally fell to Ping An of China. On June 25, 2016, Telstra and Ping An Trust officially completed the equity delivery. Ping An Trust became the largest shareholder of auto home with 47.4% equity. The shares of founder Li Xiang and CEO Qin Zhi were diluted to 2.6% and 2.9% respectively. At the same time, Ping An of China has made a great change in the senior management team of auto home. Lu Min, chairman and CEO of Ping An health insurance company, serves as chairman and CEO of auto home, Kang Yan from Ping An Trust serves as president and supervises the overall business of media business department; Wang Junlang serves as vice president and chief financial officer of the company.
In February 2017, Telstra sold the remaining 6.5% of its shares in auto home to Ping An at a price of $217 million, withdrawing from the ranks of auto homes shareholders. The stake was taken over by Yun Chen capital Cayman, a Ping An company. So far, Ping An of China undertook 53.9% shares of Australia Telecom.
Ping An of China has not increased or reduced its stake in auto home for several years since it became the largest shareholder.
According to the data, as of April 7, 2017, Yunchen capital held about 61.82 million shares, accounting for 53.3%. It was the largest shareholder, and Anderson capital management company held 5.9% of the shares. As of March 31, 2018, Yunchen capital held about 61.82 million shares, accounting for 52.7%, and Anderson capital management company held 7.5%. As of March 31, 2019, Yunchen capital held about 61.82 million shares, accounting for 52.2%; Anderson Capital Management Co., Ltd. held more than 10%, accounting for 10.6%; in addition, auto home was increased by OBIS investment company, holding 7.2%, becoming the third largest shareholder. As of February 29, 2020, Yunchen capital held about 61.82 million shares, accounting for 51.9%. Anderson capital management company was the second largest shareholder with a shareholding of 9.2%.
The number of shares held by Ping An of China has not changed, but the proportion of shares has been declining. On June 18, Ping An of China made the first large-scale reduction of its holdings in auto home, with its shareholding ratio falling by 2.5% to 49.4%.
According to the first quarter performance report of automobile home in 2020, its revenue and net profit both declined. Its net income in the first quarter of 2020 decreased by 4% to 1.547 billion yuan, and its net profit decreased by 9.1% to 587.2 million yuan.
For Ping An Property Insurances acquisition of auto home equity, Ping An Property Insurances response is around the car ecology.
In its reply, the CIRC required that Ping An Property insurance should put forward five should requirements in the process of investment in autohome Inc. and subsequent operation and management.
Specifically, we should strictly abide by the relevant laws and regulations at home and abroad, effectively perform the responsibilities of shareholders, and promote business collaboration with the invested enterprises. We should urge autohome Inc. to establish and improve the corporate governance, improve the internal control mechanism, and strictly abide by the relevant laws and regulations at home and abroad to carry out business activities. We should establish and improve the risk isolation and related transaction management system with autohomeinc., strengthen the comprehensive risk management and prevent risk transmission. Investment management shall be regularly reported to the CIRC in accordance with regulatory provisions. In case of major or unexpected events, effective measures shall be taken in a timely manner and reporting obligations shall be performed.
In the story told by Ping An Group to the capital market, Finance + technology is mainly carried out around the five ecological circles, which is carried out by automobile home, Pingan Property Insurance, Pingan bank, Pingan financial leasing, etc.
According to the annual report of Ping An Group, in December 2019, the average daily number of independent users visiting the mobile terminal of auto home was 36.83 million, an increase of 25.0% over the same period of last year; by the end of December 2019, the number of registered users of Pingan good car owner app exceeded 90 million, of which about 49 million users were also vehicle insurance customers of Ping An Property Insurance Company. Ping An Bank promoted the owner credit card, integrated the rights and interests of owners and transaction services And financial services. At the institutional side, Ping An has more than 27000 paid distributors and 17000 data product customers; more than 90 host plants and 36 data product customers have been established. In terms of intelligent financial platform, auto home contributed nearly 24 billion financial loans and insurance transaction scale in the whole year. Ping An Banks auto finance business issued 156.674 billion yuan of new loans, and Ping An financial leasing car rental business invested 26.9 billion yuan.
However, auto home has not been doing well recently. According to the first quarter report of 2020, the net income of automobile home is 1.547 billion yuan, down 4% year on year; the net profit is 9.1% lower than that of 587.2 million yuan.
In the whole year of 2019, the net income of automobile home is 8.42 billion yuan, with a year-on-year growth of 16.4%; the adjusted net profit is 3.41 billion yuan, with a year-on-year growth of 10.7%. From the first quarter to the fourth quarter of 2019, the revenue growth rate of automobile home is 25.14%, 23.54%, 14.9% and 6.9% respectively.
Internet organizations enter the car
Auto home also faces competition from entrants such as BITA. N, both of which are automotive Internet companies and listed in the United States.
The difference is that Ping An group stands behind the auto home, while Tencent Holdings (0700. HK) stands behind the e-Car.
After nearly a years merger and acquisition, e-Car announced on June 12 that the privatization agreement between Tencent and hammercapital had been signed, and the buyer group would purchase e-Car shares at a cash price of US $16 per ads (about 15% premium), with a total transaction amount of US $1.1 billion, or about RMB 7.788 billion. After the final completion of the transaction, e-Car will delist from the NYSE and its subsidiary Yixin group (2858. HK) will also be included.
At the same time, on June 19, US SEC documents disclosed that Tencent increased its holdings of 1.68 million ads shares of Weilai automobile through its Huang River fund, and now holds about 159 million ordinary shares of Weilai automobile, becoming the second largest shareholder of Weilai automobile with 15.1% shares.
Tencent increased its holdings in Weilai and acquired e-Car; Ping An Property Insurance acquired the home of automobiles. The auto internet war continues.
(author: Xin Jizhao, intern song Doudou, editor: Li Yilin)
Source: responsible editor of 21st century economic report: Wang Fengzhi_ NT2541