China Car Rental Transformation: Take the giant 3 billion investment, still "insatiable"

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For today's Shenzhou leasing, despite the acquisition of Lenovo, Warburg Hertz, the three major giants nearly 3 billion investment, but still "insatiable."

September 19, the Shenzhou rental in Hong Kong IPO. This is the second time the company has set foot on the market. As early as January 18, 2012, the Shenzhou rental car had submitted a prospectus to the U.S. SEC to raise 300 million dollars. In the following 2.5 months, the Shenzhou car Rental has submitted 9 consecutive revisions and reduced the amount raised to 1.5http://www.aliyun.com/zixun/aggregation/19203.html ">8 billion." The April 25, the Shenzhou car rental suddenly announced the suspension of the U.S. market IPO.

In the past two years, what has changed in the land rental in Shenzhou?

First of all, the Shenzhou car rental is driven by the strength of capital to the size of this year. By the end of 2009, Shenzhou had only 692 cars. In 2010, Lenovo held 1.2 billion huge investments, with a fleet of more than 10,000 vehicles. In 2012, after the termination of the U.S. listing, Warburg Amber Gem through the Chinese car rental investment 200 million U.S. dollars. In 2013, Hertz invested 100 million dollars in a car rental in Shenzhou.

These investments have become the scale of the divine. At present, the total size of the car rental in China is 52,498 vehicles. The fleet consists of 29 brands, 122 cars, net book value of about 4 billion yuan (short rental vehicles average purchase price of 98,000 yuan, long rental vehicles for 160,000 yuan).

Shenzhou Car Rental in the country's 69 major cities have 717 direct rental outlets (including 52 airports), including call center, the total number of employees nearly 5000 people. These are very high thresholds for the company tree. As more and more cities take restrictions on purchases and bans, they raise the demand for car rental, while curbing the expansion of competitors. China, for example, has 13,000 licences in Beijing, and 8000 in Guangzhou, and rivals are unable to surpass their size even if they have money.

In addition, the Government for easy to use car "private car with the mode" lights up the red light, pp car rental "Private car sharing model" on the owner of the risk is too large, two types of light asset model temporarily difficult to do, the model advantage of the Shenzhou rental car is almost unshakable.

Secondly, the efficiency of China's car rental operation increased. According to the prospectus, the average acquisition cost of the vehicles for short leases in Shenzhou is $96,000. Since 2011, the average daily rent has risen steadily, and the vehicle rental rate has been rising in the fluctuation. According to the 3721.html ">2014 quarterly data, operating 30 months to obtain 154,000 yuan rental income, processing second-hand car can be recovered cash 49,600 yuan." From buying to selling, the net income that a car brings to the Shenzhou car is about 108,000 yuan. 2.5 net earn a car.

China has a headache: in 2013, the average monthly failure to deal with the violation of the vehicles reached 7,624, accounted for a ratio of up to 23%, the entire year caused economic losses of 300 million yuan.

In the two quarter of 2014, the monthly outage reduced magically to 1967 units. China car Rental said to start employees and users "offset the deduction record", how to offset the vague. Whether the "elimination movement" to go public is a big problem. In addition, the 2014 Q1 data show that the company's direct operating costs equivalent to 34.3% of the rental income, the cost of a short rental business is 500 yuan, this value is not low. But in the first half of 2014, the average number of short leases rose to 3.9 days (2013 is 3.6 days).

For today's Shenzhou leasing, despite the acquisition of Lenovo, Warburg Hertz, the three major giants nearly 3 billion investment, but still "insatiable." Under Lenovo's guarantee, the Shenzhou rental car from a number of financial institutions to obtain 2.54 billion yuan loans (the first quarter of 2014), and from Lenovo and other institutions to obtain 1.78 billion "shareholder loans." Therefore, if the Chinese car rental through the threshold of the listing, it is also a "dead body."