January 6, Yuntong Express Co., Ltd. Director of Strategic Investment Huang Yifeng to 21st Century Business Herald revealed that Yuantong Express subsidiary Yuantong International Holdings Limited (hereinafter referred to as 'Yuantong International Holdings') and the Hong Kong Stock Exchange listed companies up to the first International Logistics Holdings Limited (06123.HK) All parties involved in the sale completed the relevant equity delivery formalities recently, expected to be completed in the near future. Upon completion of the delivery, the Company holds 61.75% shares of First International Holding Co., Ltd. through Yuantong International Holdings, Holding.
Yuantong acquired the first department in China's express delivery industry cross-border mergers and acquisitions case, the China Institute of Logistics invited researcher Yang Taqing that mergers and acquisitions First International is Yuantong 'upward' intervention in the supply chain service and 'out' to expand services Cross-border electricity A breakthrough in the international express delivery business, expected to have more and more courier companies to seek mergers and acquisitions to enter the overseas path.
Why is up first?
In the context of the global trade slowdown, trade leaps on the wings of the Internet soaring the wind.It is estimated that by 2020 the global cross-border electricity supplier logistics market at least 1 trillion yuan.
According to industry statistics, international logistics accounts for 15% to 20% of the costs of cross-border e-commerce, which means that in the United States to buy 300 yuan of products to pay nearly 60 yuan Logistics costs.Express international courier fees are not affordable for all, the nationals also called for manufacturing and China made with China's trade, cost-effective integration of integrated logistics services.
In recent years, domestic courier companies have started to take the initiative to expand overseas markets. However, for cautious consideration, the domestic courier companies are mostly opting for small-scale self-owned self-support systems or using agency models to go to the sea. There is very little overseas expansion through large-scale mergers and acquisitions, Yuantong has opened up China's express delivery enterprises to the sea new style of play.
In May this year, Yuantong disclosed its intention to acquire Saida International, a merger and acquisition case that began to emerge.Shanda International is a Hong Kong listed company established in 1995 to provide local air and sea services at the beginning of its establishment, It has become a well-known international logistics company with more than 50 independent and stable organizations in 16 countries around the world, forming a network of strategic deployments and offices throughout Asia, the United States and Europe, providing integrated services.
Affected by the downturn in the market of air cargo and shipping, the performance of International Group Limited in recent years was not very good. In 2016, the international first reached only HK $ 2,867 million, a year-on-year decrease of 11.1% and the net profit of HK $ 5,000,000, 90%.
In the two years before being acquired by Yuantong, Dayader International began to seek cooperation with Rookie Network to divert the volume of cross-border e-commerce business to the downturn, and it was during this period that Daader International was first approached by Yuantong. 'Both of us Contact with more than a year.Huang Yifeng explained to 21st Century Business Herald reporter that Yuantong fancy firsthand, on the one hand fancy its core value of resources, as a listed company, up to normative, business and high stability. At the same time, as the nearest overseas capital market to the Mainland, Hong Kong's developed financial environment has a very strong offshore financing capability and serves as a platform for capital.
Furthermore, up to the point of ownership of major self-established business sites in the main markets, unlike many freight forwarding companies, which currently have corporate entities in 17 countries and regions, 52 self-established sites around the world and covering more than 150 countries Over 2000 international routes, and these countries and regions are the major national markets for China's main trade partners and the Belt and Road initiative.
In addition, the core group from the first come from Hong Kong and Europe and the United States.Location of local subsidiaries basically realized the management of the interpretation of the integration of Chinese and Western cultures, globalization and localization.Up as a pioneer, to some extent, slowed the tact out of the sea Cultural conflicts encountered in the process.
First up will be tact overseas platform
'Acquisition of the first international, not to buy a shell, but a strategic acquisition, the two sides made a decision based on the common strategic objectives.' Huang Yifeng told 21st Century Economic Reporter that tact will rely on first reached the global strategy.
Prior to this, YuTong Express Chairman Yu Weijia disclosed that Yuntong's overseas strategy and vision are clear: follow the strategy of 'One Belt and One Road' and go out with Chinese enterprises in China and cross-border e-commerce platforms and Ali platform. On the target, Yuantong Become the new benchmark of service in China and form a business network covering the whole world. Relying on scientific and technological internet technology, it has become a leading integrated express logistics operator and supply chain integrator in the world.
Strategic mergers and acquisitions first reached the tactics is the direct embodiment of Yuantong, first up in the future layout of tact tactics is also very clear, Huang Yifeng said that the first reached the delivery strategy shares, will be the only overseas business platform tactone.
Huang Yifeng revealed to 21st Century Business Herald reporter that the first listed company in Hong Kong, First International, will be renamed in the future in order to reflect the fact that Yuantong is the controlling shareholder. However, the subsidiary's business brand will be retained while the entire first International management team, with its expertise to assist Yuantong sea. At the same time, Yuntong's only overseas business platform, Yuantong Express will be gradually international resources and the team into the first international business and business development to be sufficient stand by.
Huang Yat-feng said Yuantong wants to build a public platform for multimodal transport in land, sea and air in Hong Kong, which not only serves Yuantong but also serves all counterparts and courier companies and even serves the construction of the "One Belt and One Road." In addition, Hong Kong will become Yuantong Global Forwarding Center, Yuantong since the beginning of this year, in Hong Kong conducted a large-scale investment and layout, set up their own distribution network, put in more Hong Kong truck operations. As Yuantong International Business Headquarters, first up to help tact convergence International Talent, integration of global resources.In addition, tactually prepared by the Global Parcel Union (GPA), has now completed the establishment of a global headquarters in Hong Kong, through the alliance to open up international network resources.
It is reported that after the completion of the equity transfer, the strategic integration of Yuantong and Xian Da will bring full cooperation between the two networks at home and abroad. Yuantong's highly efficient logistics service network in China and its first business service network in the world will provide China and the world Clients provide global interoperability with global logistics services and further complement and collaborate on trunk resources and customs.
Both parties will also promote the synergy of franchisees and clients resources on both sides and provide more diversified businesses and products. The two parties will further develop top-level global partners and develop local international express delivery business together.
Yang Taqing believes that the acquisition of the first international is Yuantong 'go up' that is to intervene in the supply chain services and 'going out' that is to expand the service of a cross-border e-commerce international express a breakthrough.
'Courier competition next stop, or the next big market is' fast chain '' Yang Daqing that the courier companies to get out of the short-chained profits of the value chain services to the long chain of fast-track services that are based on big data Under the quick and precise supply chain service migration.In this migration, a class like Jingdong Logistics, Suning Logistics, Commodities Chun Express and other companies backed by e-commerce platform with a natural digital supply chain service advantages; second class like SF Ali Jingdong's enterprises, has laid out the electricity supplier and commercial, concurrency force cold chain, medicine, IT areas of the chain services, with the ecological closed loop; three categories such as Yuntong and other rookie member companies, the business layout if Ali and electricity providers Highly synergistic, will be able to win more resources Yuantong acquisitions in the ASEAN, Hong Kong and other market-leading first reached the international tactics tactics, but also with the synergy of Ali-based clusters.
Cross-border mergers and acquisitions wind blowing
Generally speaking, a country's international logistics service capabilities are compatible with its foreign trade scale. At present, China's foreign trade and economic cooperation with the United States is quite high, reaching 3.7 trillion U.S. dollars in 2016, but China has not yet seen a global logistics giant.
Yang Taqing that mergers and acquisitions is DHL and other international courier giant layout of a global path.At present, the global fast market is facing the downturn in the east, the consumer base in China and the incremental electricity supplier in the world's leading case, decided the next five to ten years , The global fast market to the east look Express delivery 13th Five-Year Plan proposed to build one or two international express brand in the next five to ten years will gradually become China's leading express delivery. 'I believe Yuantong there will be some international mergers and acquisitions.' Yang Daqing that .
In an interview with Czechoslovakia and Hungary, 21st Century Business Herald noted that Yuntong's business network has explored these Central European countries. Zhou Xing, China's business counselor in Hungary, revealed to 21st Century Business Herald reporter that Yuantong has an agent on the Czech border , Is considering the establishment of a second point in Hungary, the use of land, sea and air transport logistics transit, the Chinese goods through Hungary at this point, transported to the Balkans and Central Europe, and Romania, Bulgaria and other places.
'From the business development, the overseas market will certainly have to do their job afterwards.' 'An unidentified' Stone 'of a express delivery executives told the 21st Century Economic Reporter frankly, in fact, after the listing, each Home express delivery companies are actively layout of overseas markets, the overseas market for how to do, starting from what piece, with what mode of advancement, each is secretly observing and research, and did not dare to rush ahead, 'overseas risk is indeed quite high , The loss can not afford. "The executives disclosed that their own companies are currently South Korea's logistics for small-scale equity investments, in order to test the water, will see the effect again.
'Yuantong respected leading culture.' Huang Yifeng told reporters in the 21st Century Business Herald, Yu Tong, chairman of Yuantong has been to its executives that the global courier companies need to do a breakthrough Attempts to 'step by step can not be the boss', it is in this concept, Yuntong things first fight, bold planning, including investment in aviation and the establishment of the Global Union and other packages.
Yuantong mergers and acquisitions first, or will break through the domestic courier counterparts overseas layout 'step by step' psychological defense, detonated courier overseas mergers and acquisitions, as the original Shen Tong first backdoor listing, causing the courier companies listed on the tide, then which regions and the subject will be the first to become China Courier companies M & A goals?
Yang Taqing believes that the ASEAN market, with a population of nearly 600 million, is currently the largest beneficiary of the spillover effect in the Chinese market, followed by South Asia, including India, which is also a new growth engine and emerging population markets such as Nigeria and South Africa with high population densities, all of which may be domestic Express delivery business investment or acquisition of the layout of the area.
Huang Yifeng frankly stated that in order to expand the overseas territory, Yuantong will continue to seek new acquisition targets in the future. He believes that Southeast Asia and Europe will all be the focus areas of Yuantong, which have network advantages in these regions and are in line with Yuantong's business orientation Of the enterprises, will be Yuantong diversified investment goals.
However, it is noteworthy that not all the overseas mergers and acquisitions are successful cases, the integration of irreversible drag the example abound Yang Taqing that China is a backward market, the international logistics talent pool and management experience have not established the leading edge , In which case Chinese manufacturing companies such as TCL have spent similar tuition in the globalization process if they make beheaded acquisitions - wholly-owned acquisitions of local leaders and higher follow-up risks, especially in the leading markets. Investing and building interest communities are relatively sound. It is especially important to establish a talent pool and international experience in the Pathfinder.
Huang Yifeng also said that tact also concerns about the cultural integration after the merger. Therefore, it specifically invited international consulting firms to make transitional arrangements to assist in coordinating and rationalizing the mechanisms and models. In addition, the two parties fully communicated the concept of international development before mergers and acquisitions , Reached a consensus before promoting mergers and acquisitions.