Alibaba's New Move In The New Retail Layout

According to the world clothing and shoe net, in January 10th, Yintai business (01833) announced that the process of privatization started, and the joint offer parties include Alibaba group's wholly owned subsidiary. Alibaba Shen Guojun, a wholly owned company of investment and founder of Yintai business.

This round of privatization is seen by the industry as another move in the new retail layout of Alibaba, and does not rule out the possibility of the listing of A shares in Yintai business after privatization.

　 Privatization is a strategy for exploring long-term development.

According to the announcement, the joint offer Party will pay HK $10 per share, which is about 53.59% higher than its average closing price on the last 60 trading days, which is about 42.25% higher than the closing price of 7.03 Hong Kong dollars on the last trading day before December 28, 2016 suspension. The maximum amount of cash required to complete the proposed exchange is about HK $19 billion 800 million (about 17 billion 700 million yuan). Privatization transactions also need to wait for relevant practices to complete, including the approval of independent shareholders and the Grand Court of Cayman Islands. The joint inviting party is paying the exchange requirements with internal cash resources or external debt financing.

The announcement shows that under the transformation environment of the retail industry, Alibaba plans to launch more in-depth cooperation with Yintai, explore new opportunities for development and implement a series of long-term development strategies. The relevant measures may affect the short-term development of the company. After privatization, the company can focus on long-term interests and avoid the pressure of market expectations and stock price fluctuations of publicly listed companies.

INtime business In the announcement, the current Hong Kong stock platform is not sufficient for the company's business and growth as a result of low liquidity in share trading. After privatization, the company can enjoy freedom and opportunity to motivate employees in a flexible way.

Through the first investment in July 2014 and the conversion of convertible bonds in June 2016, Alibaba now owns about 28% interest in Yintai. According to the proposed transaction, Alibaba will become the controlling shareholder of Yintai, and its shareholding ratio is expected to increase to about 74%.

Yintai's role and status in the Alibaba, Zhang Yong, CEO of Alibaba group, explained at the time when he was chairman of Yintai commercial board. "Yintai is a platform for Alibaba to merge and innovate on the line of retail business. In the era of integration of real economy and digital economy, if Alibaba is the air force, we need to find an army partner to form an integrated force, and this army partner is Yintai."

Yintai Ali's "new retail" strategic key

Ma Yun, chairman of Alibaba, put forward the concept of "new retail" in October 2016, emphasizing the integration of online, offline and logistics. After that, the action of the Alibaba line continued. In November 2016, Alibaba acquired a 32% stake in Sanjiang's shopping market by buying 2 billion 150 million yuan by its subsidiary company.

More than two years ago, Yintai chose to cooperate with Alibaba in the environment of electricity supplier and retail sales. In March 2014, Alibaba invested HK $5 billion 300 million in Yintai to become the second largest shareholder. Since then, Shen Guojun, founder of Yintai business, has been transferring shares, making Alibaba a single largest shareholder of Yintai business. In May 19, 2015, Alibaba CEO Zhang Yong succeeded Shen Guojun as chairman of Yintai commercial board.

In May 28, 2013, Alibaba and Yintai business jointly built "China intelligent logistics backbone network" project, namely rookie network, the first investment was 100 billion yuan, led by Ali, Yintai group was the second largest shareholder; in October 2013, Alibaba group announced a strategic cooperation with Yintai.

Since then, Alibaba and Yintai business have jointly launched innovative products such as Yintai Bao, meow goods, meow street and so on. They have realized the payment and membership system, and many Amoy brands have entered Yintai. In June 2016, Alibaba completed the conversion of Yintai business and became the largest shareholder of Yintai business.

In October 2013, Ali announced the strategic cooperation with Yintai, and became the largest shareholder of Yintai business after that. Yintai has become the key to Ali's new retail strategy. The main form of cooperation between Ali and Yintai lies in the marketing, payment, the opening of online and offline commodities, and the application of new technologies, such as sweeping and shopping, AR interactive games.

In January last year, Ali's first project "Yintai department store Xiasha factory" was officially opened after it entered Yintai. It was intended to implement the mode of quality and price sharing. The sales department manager of Hangzhou Xiasha factory, Yintai department store, has said that the 4 days after the opening of the store, the Mall accepts more than 200 thousand customers. In the past eleven years' activities of "double two", Yintai has always been indispensable.

In January 10th, after announcing the privatization of Yintai business, Zhang Yong, chief executive of Alibaba group, said: "the total scale of China's retail industry has reached US $4 trillion and 500 billion and is growing at an annual rate of 10.7%. Alibaba group is reconstructing traditional formats and innovating users with offline retailers. consumption Experience and embrace practical opportunities to embrace the long-term development opportunities of new retail. We believe that there is no distinction between entity and virtual economy. If we ignore opportunities, we will inevitably be marginalized or even eliminated. If we integrate the power of mobile Internet, real-time user data and technology to enhance operational efficiency, entity retailers can create new value for consumers. The combination of Alibaba group and Yintai business will help us grasp the long-term development opportunities brought about by China's Internet technology and data-driven new retail. "

According to the data provided by Alibaba, as of the end of September 2016, 78% of the volume of China's retail platform's trading volume came from the mobile terminal, and the number of active monthly mobile users reached 450 million in 9 months.

　 Yintai will A shares go public in the future?

The announcement of privatization by Yintai will inevitably lead to speculation that it will be listed on A shares in the future.

Wang Xiaodi, a researcher at China Merchants Securities (Hongkong) securities research department, and Liu Siyuan, a researcher at CIC securities (Hongkong), said that they were optimistic about the privatization of Yintai business and believed that Yintai business might be listed on A shares in the future.

Wang Xiaodi told Zhitong finance and economics that after several years of mutual O2O strategy between Ali and Yintai, further cooperation is inevitable. Yintai privatization is good for both sides. She believes that it is more likely that Yintai will be privatized back to A, because the market recognizes that A shares are better and more valued than Hong Kong stocks.

Liu Siyuan believes that Yintai start privatization, probably because the company wants to find a better platform to enhance its valuation, do not rule out the possibility of listing on A shares. She believes that according to the positioning of Ali to Yintai, the management of Yintai will concentrate more on developing O2O projects after privatization. Ali and Yintai's latest O2O project is in December 24th, Alibaba and Yintai business jointly built the first home industry self-service shopping store in Hangzhou. There may be other projects coming out in the future.

Liu Siyuan pointed out that Ali's "new retail" strategy is actually a kind of O2O thinking, promoting online and offline integration, the same price of goods, and offline space as online display, which helps to shorten the inefficient supply chain. She is optimistic about the privatization of Yintai.

For the conjecture of Yintai's privatization back to A, Ali said it was temporarily inconvenient to comment. More consultation, please pay attention to world clothing. Shoes and Hats Net.