Ctrip Disclosure shares investment expenditure and shareholding, more attention to strategic direction layout

Yesterday, Ctrip released the 2013-year report for the first time detailed disclosure of its investment, mergers and acquisitions of various expenditures and shareholding.

Over the past year, China's online tourism industry has taken place in a number of mergers and acquisitions, especially in the industry leading Ctrip Travel Network (hereinafter referred to as Ctrip) mostly.

Yesterday, Ctrip released the 2013-year report for the first time detailed disclosure of its investment, mergers and acquisitions of various expenditures and shareholding. In addition to the hotel investment, in the past two years Ctrip's acquisition center of gravity to the expansion of important markets and the upstream hotel products suppliers control. A hi car rental, easy to use cars, fast hotel housekeeper, passers-by, passers-by wind network, Hui Assessment network, such as the outside world is expected to appear in Ctrip published investment list.

Strong Consulting CEO Wei Changren to the "Daily economic news" reporter analysis, now ctrip can be seen as more emphasis on the strategic direction of the layout and business advantages of the replenishment of a number of strategic business ahead of the layout for their long-term development to provide stamina and greater imagination space.

However, there are also insiders believe that in China's outbound tourism market is increasingly open to the present, mergers and acquisitions after the difficulties of integration and even failure cases are not uncommon.

Increase investment in hotels and upstream industries

The annual report shows that as of December 31, 2013, Ctrip held 15.39% shares such as home hotel and Hanting Hotel 9%. Strikingly, the report notes, "in December 2013, we bought about 4%keystonelodgingholdingslimited's ordinary shares with 25.5 million dollars, In 2013, Keystonelodgingholdingslimited merged 7-day hotel chains. At this point, "Ctrip" to become China's three major economic hotel-type group of investors has become a fact.

Zheng, CEO of Love Travel Watch, told the Daily Economic news reporter, "Investment in the three major economic hotel group, will be ctrip in a longer cycle of price war, the exclusive resources of the leading opponents." Ctrip and other OTA (online travel agency) before the market competition, has used this influence to cut off other OTA booking, which will win more long-term competition for Ctrip. ”

The reporter noted that Ctrip also acquired two hotel wholesalers. The annual report shows that in August 2013, Ctrip completed the acquisition of two hotel and air ticket wholesalers. A single RMB 46 million to a hotel business-to-business (corporate marketing) booking service provider acquisition of its 51% of the shares, and a single 120 million Hong Kong dollars for a hotel and air ticket wholesale company wholly-owned acquisition.

A person close to Ctrip told reporters that Ctrip accounted for 51% of the hotel wholesalers are Shanghai's largest business-to-business hotel booking service provider Shanghai Metropolitan Travel Service, wholly-owned acquisition of Hong Kong's largest mainland hotel booking wholesalers Hong Kong Hua min tourism.

Zheng that the "Ctrip" by controlling the main south and east China Hotel wholesalers, especially the "prepaid" type of wholesalers, will enrich the hotel product line Ctrip. At the same time, also help Ctrip to resist from where to go nets, such as a prepaid model of the challenge of cattle.

Big mergers and acquisitions, risk of integration

Early in the establishment of the beginning, Ctrip through the series of investment to taste the acquisition of sweetness. In the past two years, Ctrip's focus has shifted to the expansion of important market areas and the control of upstream hotel product suppliers. June 2013, Ctrip also invested 6 million U.S. dollars, accounting for 33% of the shares, with the hotel booking application of the butler to reach a purchase or investment agreement. In November 2013, Ctrip acquired a 35% stake in Shanghai Yi Shang Network Technology Co., Ltd. by the cost of RMB 22 million cash plus equity.

In addition, in the domestic vacation apartment booking platform preemption, Ctrip to 14.6 million U.S. dollars and 33.33 million shares callable convertible shares (total 36.7 million U.S. dollars) as the price, to achieve the control of the pedestrian network. The report also pointed out that the December 2013 Ctrip to 23.09 million U.S. dollars holding the wind network, but did not disclose the proportion of shares.

Ctrip's business layout also involved car rental business, the annual report pointed out that 2013 Ctrip's most generous investment is to spend 94.05 million of dollars, bought a hi car rental 19.6% convertible Preferred shares. In addition, Ctrip used 23 million of dollars to purchase the easy to use car 20% convertible priority shares, easy to use car is an internet-based business car rental service platform.

"Investment in the global car rental self-driving platform, in its upstream and downstream industry chain of a full set of layout." Users will provide traffic support for the rental companies they invest in after booking air tickets and hotels. Zheng to reporter analysis pointed out.

"Ctrip may engage in global acquisitions," Ctrip CFO Sun said at a recent annual report analysis. "From the strategic choice, Ctrip vice President Mr. Said, 2014 will definitely be Ctrip's" investment year. "

However, some insiders pointed out that in China's increasingly open outbound tourism market at the moment, Chinese tourism enterprises to the global market, but the integration after the merger difficulties or even failure cases are not uncommon.