After rumors and denials, Meituan's placement came to an end. "
After rumors and denials, Meituan's placement came to an end.
It is reported that Meituan raised nearly US$7 billion through the issuance of new shares and US$3 billion through convertible bonds, adding up to as much as US$10 billion (about 65 billion yuan).
As the absolute leader in the takeaway delivery market, why is Meituan so short of money?Where will the funds be invested?What kind of chess is Wang Xing playing next?
One. Early this morning, Meituan announced on the Hong Kong Stock Exchange that Meituan raised nearly $10 billion through the issuance of new shares and convertible bonds.
Among them, Meituan raised nearly US$7 billion through the issuance of new shares, creating the largest additional issuance in the history of the Hong Kong Stock Exchange. Meituan was priced at 273 per shareHK$8** Placed 18.7 billion shares**, at the top of the guidance range, a 5. discount from the previous day's ** price3%。
Meituan also raised up to $3 billion through the issuance of convertible bonds, including 14$8.3 billion of zero-coupon convertible bonds due 2027 and $1.5 billion of zero-coupon convertible bonds due 2028.
It is reported that Meituan has entered into a subscription agreement with its shareholder Tencent Holdings, and Tencent has agreed to pay 273 per shareHK$80 to subscribe for 02%, about 1135260,000 shares, net subscription of $400 million.
Looking back, it was found that Meituan's fundraising incident had many variables, and it probably went through it as a whole"Rumors - denials - real hammers"and so on.
Recently, some Hong Kong media reported that the Hong Kong Stock Exchange's ** clearing system shareholding record query service data shows that some investors will exceed 300 million shares or 512% of the real-name shares were transferred to Goldman Sachs.
One stone stirred up a thousand waves, and then there were rumors that Meituan's major shareholders planned to place and leave, because Tencent's major shareholders had previously withdrawn through the transfer of positions to brokerages and then the allotment. At that time, Meituan responded that none of the market-related speculations were true.
After the rumors of Meituan's placement leaked out, the company's share price evaporated by more than HK$200 billion for two consecutive days**. Since then, with the anti-monopoly turmoil, the company's stock price has fallen endlessly, and its market value has evaporated by more than HK$1 trillion from this year's high.
Now that Meituan's announcement is in front of us, although there has been no phenomenon of major shareholders leaving the market, the fact of placement is a certainty, which shows that Meituan's previous comprehensive denial is inconsistent with reality.
The outside world complained that Meituan's move was not honest enough, and some netizens left a message:"Down,**Don't eat this set.**"；Some netizens left messages saying:"Don't pretend, come down! It's useless to die, and I've never been shocked by the bear"。
Two. In any case, Meituan's fundraising has already landed, and after the $10 billion is received, what new proposition does Meituan have?
It is reported that Meituan's financing is mainly used for scientific and technological innovation, including the research and development of cutting-edge technologies such as unmanned vehicles and drone delivery, as well as general enterprise purposes, which can better provide sufficient funds and develop innovative businesses such as communities.
It is worth mentioning that just yesterday, Meituan's new generation of self-developed unmanned delivery vehicles has been officially put into operation in Shunyi, Beijing, which is a new generation of L4 autonomous driving capabilities launched by Meituan on the basis of the exploration of unmanned delivery in the past five years.
It is reported that Meituan's new-generation unmanned delivery vehicle has a loading capacity of 150kg, a volume of nearly 540L, and a maximum delivery speed of 20km h, which can adapt to the needs of 24-hour operation a day, and the driving range of urban roads reaches 80km, which can sense obstacles 150 meters away and automatically slow down.
In 2020, in response to the delivery needs during the special period, Meituan took the lead in launching an unmanned delivery service in Shunyi, Beijing, which is the first time that Meituan's unmanned delivery vehicles have delivered users' actual orders indoors and in parks.
Unmanned delivery has opened up a new market space for Meituan. Up to now, Meituan's unmanned delivery service has covered more than 20 communities, with a total of 350,000 orders, nearly 300,000 kilometers of autonomous driving mileage.
Meituan said that the new generation of unmanned delivery vehicles initially has standardized mass production capacity. It is expected that in the next three years, Meituan will launch in Shunyi, Yizhuang, Shenzhen and other regions and cities in Beijing to realize unmanned delivery services for business scenarios such as food delivery, grocery shopping, and flash sales.
There is no doubt that affected by the pandemic"Black Swan"Meituan, which has firmly held the top spot in the takeaway market, is naturally not far behind, and community e-commerce has become Wang Xing's next starting point.
So, in the new community e-commerce melee disturbed by capital, what is Meituan's combat power?
Three. Meituan has been deeply involved in the food delivery industry for many years and has long had a layout for community e-commerce, but the sudden outbreak of the epidemic in 2020 made Meituan more optimistic about the future of community e-commerce and further increased investment.
A few days ago, Meituan released its 2020 performance report, and Meituan achieved operating income of 114.8 billion yuan last year, a year-on-year increase of 177%；Achieved a net profit of 470.8 billion, up from 22 in the previous year3.9 billion yuan, a year-on-year increase of 1105%。
Behind Meituan's annual revenue exceeding the 100 billion mark for the first time, the operation of the company's three main businesses is difficult to explain. At present, Meituan's revenue mainly comes from three major segments: food delivery, in-store, hotel and tourism, new business and other businesses.
In 2020, Meituan's three main businesses accounted for the proportion of the company's total revenue. 8%。Among them, catering takeaway contributed 66.3 billion yuan, a year-on-year increase of 208%, accounting for more than half of Meituan's total revenue, is the company's revenue pillar.
The in-store, hotel and tourism business, which was most affected by the epidemic, gradually returned to normal with the improvement of the domestic epidemic, but has not yet fully recovered, contributing revenue of 21.3 billion yuan in 2020, a year-on-year decrease of 46%。
As for new and other businesses, revenue contributed $27.3 billion in 2020, up 33.3 billion year-on-year6%。However, most of Meituan's new businesses are in the early stages of burning money for scale, and there is still a long way to go before they become fully profitable.
With the continuous increase in investment, Meituan's net loss from new and other businesses widened from 6.7 billion yuan in 2019 to 10.9 billion yuan in 2020, including a loss of 6 billion yuan in the fourth quarter, and the operating profit fell to -649%。
Specifically, half of the 6 billion single-quarter operating loss came from Meituan Preferred, and other businesses that expanded their losses include Meituan Grocery Shopping, Meituan Taxi, and Meituan Kuaidu, a merchant purchase platform.
At Meituan's 2020 annual results** meeting, Meituan CEO Wang Xing said:"I am very satisfied with Meituan's financial report. The general can be summarized as follows: stable takeaway, cattle to the store, and fast new business. "
Having said that, the reality of Meituan is not optimistic. In recent years, Meituan's social reputation has deteriorated, the food delivery business has offended both merchants and riders, and consumers have begun to re-examine Meituan's market value.
Recently, the monopoly of the industry has ushered in strong supervision, and Meituan, which is a dominant company in the takeaway market, has also been affected"It is urgent to investigate and deal with the Meituan monopoly"。
For Meituan's move to develop community e-commerce, there are not a few people who are bearish. Some netizens said:"The community buys food is not fresh, and in the end, it will be more expensive than the store, don't believe it, takeaway is a good example. "
Four. Meituan continues to develop new businesses, even raising nearly $10 billion for it. It is foreseeable that new business will be Meituan's top priority in the future.
Nomura issued a report noting that the $10 billion raised by Meituan to support new business developments such as community** will give the company more cash on hand than Pinduoduo and JD.com.
After the fundraising is completed, Meituan will have $18 billion in net cash, compared to $17 billion for Pinduoduo and $15.7 billion for JD.com, with Meituan's cash reserves remaining at a leading low level for the time being.
Now, with 10 billion in fundraising, Meituan can replenish ammunition for new businesses. Meituan is trying to compete fiercely with Internet giants such as Pinduoduo and JD.com in the community ** field, and is ready for a long-term battle.
It is not difficult to see that Meituan wants to create a new profit growth point in addition to the catering delivery business, which reflects Wang Xing's anxiety about growth and monetization.
Previously, three major rating agencies, including Standard & Poor's and Moody's, all downgraded their rating outlook for Meituan. They argue that Meituan's massive investment in the community** will come at a heavy cost, generating negative free cash flow and weakening earnings.
Meituan has said that despite its record operating income in 2020, it will continue to lose money in the coming quarters due to large spending on new programs.
In addition to its old rivals, Meituan is also facing challenges from new rivals. Meituan preferably the main hit"Cheap and good", and Didi Chuxing's newly launched Orange Heart Preferred Shouts"Buying groceries is cheap", both are very close in name and positioning.
In the field of social e-commerce, Meituan has no obvious advantages. In the face of a red sea of community e-commerce, Meituan chooses to continue to bet, and whether Wang Xing can successfully create another Meituan takeaway is probably a question mark.
*: Investor Medicinal Sugar.