58 What is the calculation of the two sides of the same city to acquire the Uxin shooting business?

58 What is the calculation of the two sides of the same city to acquire the Uxin shooting business?
On March 24th, Beijing time, 58 Tongcheng announced a long-term agreement with Uxin Group, a used car e-commerce platform, to 1.Acquired assets related to Uxinpai’s business for US $ 0.5 billion.In the first half of last year, 58 Tongcheng had withdrawn most of the equity of Guazi second-hand cars and participated in a new round of investment with Uxin and Huaping Investment, TPG and other investment institutions; since then, 58 Tongcheng and Uxin have had a lot of cooperation rumors, but both parties denied.But this M & A already has a foundation for cooperation.When the epidemic affects the global economy, used car platforms are even more difficult.At this time, it is a good time to initiate a merger and acquisition in 58 cities at the most suitable price. For Uxin, in the face of the downward market, it is also a part of self-help to take part in this businessKinds of choices.58 Tongcheng complements the closed-loop automobile business as the largest classified information life service platform in China. 58 Tongcheng has obvious advantages in recruitment, real estate, and local life, and automobile services are relatively inferior to the former.However, the 58 city has a long-term layout in the field of used cars. In March 2016, Guazi used cars were announced to be completed2.A new round of financing of $ 44.5 billion.Investors include shareholders of internationally renowned investment institutions, and 58 Tongcheng is also one of its non-controlling shareholders.In the first quarter of 2019, 58 Tongcheng issued an announcement that it withdrew more than 700 million US dollars from Guazi used cars. After that, 58 Tongcheng still owns a minority stake in Guazi and there is business cooperation with Guazi.The investment in used melon seeds is very profitable, which has increased the expected profit.58 City’s 2019 financial report shows that the net profit attributable to ordinary shareholders is 82.800 million yuan (11.$ 900 million), an annual increase of 314.5%, net profit attributable to ordinary shareholders of non-US accounting standards is 79.800 million yuan (11.400 million US dollars), an increase of 193 in ten years.0%.Excluding the investment income from the sale of many shares of the car and the payment of the expenses payable, the net profit of the non-US accounting standards for the same city in 2019 is 36.RMB 0 billion (5.200 million US dollars), an annual increase of 32.4%.While withdrawing from the equity of Guazi second-hand cars, in May 2019, 58 City and Uxin reached a strategic cooperation to participate in Uxin’s new round of financing, Huaping Investment, TPG and other investment institutions continued to follow the investment and raised about 2 funds.300 million US dollars.In July of that year, Uxin Group merged and upgraded the loan assistance business derived from its second-hand car transactions with Golden Pacer (58 Finance).Through this merger, based on the transaction consideration, Uxin will hold a certain percentage of Gold Pacer shares and receive US $ 100 million in cash.At the same time, the two parties will carry out a series of commercial cooperation.Golden Pacer will provide loan assistance services for Uxin’s used car online transactions.Since then, rumors of cooperation between 58 city and Uxin have been expanding.In October 2019, some media reported that “58 City’s acquisition of Uxin has ended.”58 Tongcheng stated that 58 Tongcheng had never initiated a wholly-owned acquisition offer for Uxin Group, and the news was not consistent with the facts.Uxin Group also stated that the report was seriously misrepresented. Uxin Group has never received a 58 city acquisition offer, and the two parties have never carried out any form of communication and negotiation on this matter.The transaction seems to have the expected value. Sauna and Yewang noticed that the attempted data showed that on March 17, 58 main operating companies in the same city had undergone industrial and commercial changes, increasing the scope of business to “engage in auction business”.On March 19, 58 Tongcheng responded to the sauna. Yewang said that the recent changes of May 8 Information Technology Co., Ltd. only involved further expansion of the business scope. At present, there is no progress in the relevant auction business in the company’s actual operation.For this merger, 58 Jincheng CEO Yao Jinbo believes that in 2020, 58 Tongcheng will provide used car auction services to car dealers as part of its core strategy.The second-hand car auction no longer improves the efficiency of selling cars, replaces the selling cycle, and at the same time increases the inflow of vehicles in the used car market.In the future, it will continue to improve the service capability of Uxinpai in the B-end market, not only helping car dealers sell cars, but also helping them collect cars through online auctions, and truly promote the efficient circulation of the used car industry.Internet analyst Ji Cheng believes that after reorganization, 58 Tongcheng continues to expand into new areas, incubate and cultivate, and merge and reorganize too many projects.After the online information distribution encounters growth and growth, 58 cities in the future may further expand to offline traffic, and there will be more investment in mergers and acquisitions.Used car companies are struggling to survive or become a trend, and used car platforms are constantly changing. In early 2019, Renren Auto was exposed and declared bankrupt.At the time, Renren said that for the purpose of false news, there was a case of intentional dissemination. At present, all business of the company is operating normally.But since then, people and vehicles have also been seriously injured.Around 2019, major second-hand car platforms have expanded the layout of offline stores, and huge cost pressures have also caused some corporate funds to have problems and closed some city stores.At the end of 2019, the second-hand car platform car Zhibao was caught in rumors of “arrears of wages”, “layoffs”, “fraud” and “people go empty”.In response to the current operation of the company, on March 11, Huang Le, the founder and chairman of Che Zhibao, told the sauna and Yewang.We are still full of confidence in the industry, and spring will always come.”At the same time, the new coronary pneumonia epidemic also put the used car industry in a difficult state.Companies such as Guazi, Uxin, and Dasouche have also heard news.In February of this year, it was reported that 70% of the layoffs of the Souche offline team.At the time, Yao Junhong, the founder and CEO of Soso, responded to external rumors that it should not make a fuss. This was an exaggeration of the company ‘s strategic adjustment. This time the personnel problem was only a partial optimization of Soso, which only accounted for about 13% -14%.On February 29, it was reported that Uxin Group announced a salary reduction for some employees.Subsequently, Uxin responded to the sauna. Yewang said that it temporarily adjusted the salary of some employees and adopted flexible employment methods for some positions. The salary reduction of general employees was between 20% and 30%.Above 40%.The pay cut will be in May.For employees who are flexibly employed, once the epidemic situation improves slightly, we will arrange for return to work.The sale of this business, Dai Kun, founder, chairman and CEO of Uxin Group, said that B2B business is the starting point for Uxin to explore the e-commerce of second-hand cars in China, and the use of Uxin ‘s expansion into the personal consumer market, group strategyThe center of gravity shifts.Uxin will focus on its B2C “national acquisition” business, and the cash flow obtained will also help its long-term development.Internet observer Ding Daoshi believes that the acquisition also improves the service capabilities of 58 City in the automotive sector.58 The same city complements the B2B business at a relatively suitable price. It is building a closed loop of a used car trading system and may continue to enrich the automotive business in the future.”The purchase price is beyond imagination. The B2B business should be very valuable, but it also reflects from the side. After the last year’s weakness and the impact of this year’s pneumonia epidemic, many companies have reached the moment of life and death.It is an opportunity for enterprises.”Ding Taoist, an internet observer, said.Sauna, Ye Wang Chen Weicheng Editor Chen Li proofreading Wei Zhuo

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