Yongan'S Net Profit Increased By More Than Three Times In 2019?

The need to share travel is bringing new growth momentum.

On the afternoon of January 12th, the Yongan bank announced that its net profit in 2019 was 489 million yuan ~5.37 billion yuan, an increase of 310.00%~350.00% over the same period last year. This information stimulated the A share price of the company to continue trading for two consecutive days.

Yongan explained that the main reason was that the financial assets held by the company increased significantly during the reporting period. Two, the revenue from the new product had brought about an increase in revenue for the sharing platform. Yongan's high investment in new energy sources helped drive bicycle sharing into the travel market, and the layout of Yongan's public bicycles, shared bicycles, shared power vehicles and shared electric vehicles promoted the development of shared travel.

At present, the sharing bicycle industry has ended the situation of subsidized chaos and returned to healthy competition. However, there is still a long way to go for us group cycling and harrow travel.

Differentiation strategy works

The development of shared bicycle industry is not smooth sailing. Yongan line company annual report shows that Yongan's net profit in 2017 was 516 million yuan, and net profit in 2018 was 119 million yuan, up 76.89% from the same period last year. In this regard, Yongan explained that the main reason is that in 2017, the company sold shares of its Jiangsu Yongan Low Carbon Technology Co., Ltd., earning 518 million yuan investment income, and 2018 no related investment income.

In the past few years, the Yongan line has been trying to make up for short board layout and share bicycles. In the second half of 2016, when the share bike was developing rapidly, Yongan entered the bureau to pay for sharing bicycles. The number of bicycles shared in Beijing, Shanghai, Chengdu and other second tier cities was about 50 thousand. However, the development of this business is not satisfactory. The announcement shows that in 2016, the share of Yongan bicycle sharing business was only 368 thousand and 300 yuan, accounting for only 0.05% of total revenue.

In October 24, 2017, Yongan line subsidiary Yongan line low carbon technology Co., Ltd. (hereinafter referred to as "low carbon technology") bought harrow bicycles and further opened up its market in the field of sharing bicycles. In 2017, sharing bicycles entered an awkward period of development, sharing chaos in the field of bicycles, and many sharing bicycles went offline, leaving only two players such as harrow, the United States and so on.

The difficulty of offline management is the bottleneck that still can hardly break through the sharing of bicycles. Entering the 2018, sharing bicycles bid farewell to barbarous growth, sharing bicycle company continuous failure or acquisition, and the market also had a disruptive change. On the other hand, the government has changed from original encouragement to wait-and-see, and from wait-and-see to initiative. Many governments have implemented inventory checks on shared bicycles, and the total number of cities has been effectively controlled.

Since October 31, 2017, Yongan bank has no longer been engaged in share free bicycle business. Then, in 2019, a new shared bicycle mode was set up, that is, the new generation of public bicycle system, which combined the public bicycle system with the shared bicycle. In addition, it opened up the network car service and further expanded the market share in the travel area. Public figures show that in August 2019, the turnover rate of public bicycles in Dongcheng and Xicheng two districts of Beijing increased year by year, which has exceeded the share bicycle and increased the possibility of joint operation between public bicycles and shared bicycles.

CITIC Securities analyst told reporters on twenty-first Century economic report that the performance driving factor of Yongan bank is mainly the continuous improvement of permeability in the three or four line cities and districts and counties, as well as the subsequent two or three phases of mining demand. In addition, the Changzhou intelligent transportation equipment base invested by the company has been put into operation, which has also eased the company's capacity bottlenecks and further improved its market share. In the future, it is expected to promote business transformation through advertising, new retail and other value-added services.

Share bicycle into profit period?

It is understood that the Yongan line for the sharing of bicycles, such as the existence of chaos and other problems, combined with the advantages of the orderly parking of public bicycles, made a new generation of public bicycle system. In Suzhou, Hangzhou, Nanchang and other places, public bicycles also learn to share bicycles, extend their operation time, and develop online renting procedures for mobile phones.

On the other hand, sharing bicycles is also actively learning from public bicycles. For example, the harrow bicycle also has no pile electronic fence, so that the shared bicycle can realize the "through loan and return" with the original "pile" public bicycle site, alleviating the problem of returning the car to users during rush hour.

As the second largest shareholder of harrow, Yongan Bank seems to have more prospects in investment. CITIC analysts believe that Yongan's profit growth is mainly due to investment income, the main business is in fact general. "After the share bicycle competition ebb tide, the industry competition pressure will be reduced, which will leave room for the promotion of the company's piling business. The business between Yongan and harrow is actually a competition in the broad sense, and the track is slightly different. In the future, piled bicycles will share bicycles with no piled bicycles at the urban level to form differential competition, with the main target customers located in the three or four tier cities.

In response to this question, Yongan banking company in April last year, in response to investor questions, Mr Tung also said that the company has been doing its own strategic planning to build shared bicycle and shared car and share car sharing platform business. The bicycle sharing business in Yongan was stripped in 2017 and combined with harrow bicycles.

Whether it's a stake or a stake free bicycle, there's a breathing space. Earlier, Harold travel co founder, Han Mei, told an exclusive interview with the economic news reporters in twenty-first Century that harrow's bicycle might be the first profitable platform because the business model had completely run through. The core of business operation is to reduce operation and maintenance costs by improving asset efficiency.

In the first half of 2019, almost all share bicycles, shared charging treasure and other collective prices rose. "The profit margins of public bicycles have always been there, but they have been suppressed in the past few years. After collective price increases, sharing bicycle industry may stop early. The CITIC analyst said that

However, before the arrival of the profit period, the shared travel platform still needs to find the path of self hematopoiesis. According to reports, ofo paid off its first half year debt in June 2018, and the second debt is also due to arrive in 2020 in February. In a contract dispute with Fujita, Tianjin, the court found that ofo had no property to be enforced.

Can ofo represent the whole industry? AI media consulting CEO Zhang Yi, in an interview with the economic news reporters in twenty-first Century, said that bicycle travel is still just needed, and the problem of ofo and small blue bicycle can not be attributed to the whole market. "The operation performance of Yongan bank, at least let the industry see hope. But this profit depends on long-term rather than short-term performance. Generally speaking, sharing bicycles will still have to find a balance between product experience, income and user level.