In the back of the acquisition of HC, the vertical industry replication mode

"Billion power network" yesterday afternoon, HC Network CEO Guo and Zhongguancun general manager Liu on two companies and the reasons for the future development planning and other issues, and billion power network and other media have in-depth communication. Guo pointed out that in the future development, two companies will continue to go vertical road, in the industry to do a heavy vertical, accelerate the process of industry b2b2c, at the same time in the vertical industry replication Zhongguancun model, the first object is the small household appliances industry. Guo told billion power network, at this stage, in all walks of life in China, IT, cars and real estate development is the best, in the future, China in the vertical industry will have many opportunities. He and Liu's conclusion is: China's industry will follow it, the automotive industry development trajectory, and some industries need three years five years, longer seven years and eight years, but eventually will become b2b2c, into community e-commerce. On the Internet that the two companies are "weak and weak alliance", Liu that these people do not see the momentum of the development of the Internet. "The development of the Internet is the first to subvert the media, and then information, reading, games, E-commerce." In fact, there is a larger area in the business-to-business industry, this heavy vertical industry in fact, the Internet is very low. We recognize the distribution of HC in the industry, and Zhongguancun is the strongest in internet-based information, social networking and even e-commerce solutions, and we are highly complementary. "Liu said. The following is a media question: question: Guo, do you think Zhongguancun model can be used for reference, that this model can be quickly copied successfully? Guo: I think the models are pretty much the same, it industry by the Internet so fast, less profit margins, manufacturers have to put the channel flat; in fact, the construction machinery industry is now very lucrative, but the Chinese economy is slowing, enterprises will compress channels, to channel, will no longer be suppliers and buyers in several layers of the situation. For example, Hui Cong do a very strong small household electrical appliances industry, in fact, when we do small household electrical appliances, there is no place to see (related information), in fact, 800 yuan and 20,000 yuan of air purifiers or there is a difference, but there is no site to share, we can not see. The future facing the final consumer, whether it is a business or individuals will have a kind of shopping guide, brand information, such as community sites appear, must do so, do not do this industry will die. Question: (in copy mode) What are the specific measures? Guo: Small east will immediately intervene in small household electrical appliances industry. Liu: After the end of the transaction, the two sides together, line online, all vertical areas of collaborative integration. We will start from the home appliance industry, HC Network in this industry accumulated very deep, there are two trade city, there are O2O exhibitions, industrial chain resources are very complete. We will be the industry's original products, information to do the integration, play a synergistic role to help them to the Internet faster transition, the hope that the small household electrical products users pay attention to upgrade, the brand to upgrade, hoping to put the network of small-scale appliance manufacturers, marketing are internet. In the future, it is possible to provide better financial services to them through the financial capabilities of the HC network. Guo: You don't understand business-to-business,HC Network is from traditional media to the Internet media, now in the Internet transactions and financial expansion we look very heavy. In the industry, 2011, the HC network of small industries do a good job, IT industry competition is more intense, so we choose the strategy to exit IT industry. Now we come back, hope to enlarge the market, it, home appliances, Enterprise is HC net The most important three industries in the future, we will first in these three industries to do, and then to gradually promote other industries. Question: Some people in the industry questioned the wisdom of the Fund is not enough to force these three industries, resources on how to tilt. What is Zhongguancun's role in it? Guo: Zhongguancun will develop independently and our three industries will continue to develop. We're going to develop and approach the Zhongguancun model, which doesn't cost that much. I think the Hong Kong market has the advantage of being able to keep getting the funds, and we are relatively easy to do the issue of additional issues or bonds, and we do not need to worry about capital investment. Question: HC net from last year transformation, Business-to-business 1.0 to Business-to-business 2.0, this year to B2B2C, what will be the following layout? Guo: Our layout is complete, five companies cover four areas. For example, our acquisition of trillion letter in the anti-counterfeiting certification this together. In fact, Ali is also in the security and two-dimensional code market, authentication and anti-counterfeiting is a huge market. The previous security through the Internet query serial number verified true and false, now we use the mobile phone to do the verification, there will be security and bar code in the same code, a sweep immediately to determine whether the real goods or fakes. In China is difficult to distinguish between true and false, which is the reason for the spread of fakes. HC bought last year trillion letter to do is anti-counterfeiting this piece of business, we will give the enterprise free hair Code, everyone printed up, glued up, users can verify true and false. HC NET to the Internet as the absolute big head, covering four areas, we will not enter other new areas. The next step is to get into the vertical industry, and recently we're talking about two companies investing, very professional business, we very much recognize the value of the vertical industry; O2O Wholesale market is very important, now every city has this thing is not necessary, Hui Cong speed to do O2O stores, with a store, two stores to cover the entire industry wholesale. Internet finance We are doing, after all, companies are short of money, we can provide enterprises with their needs, the integration of industrial chain services. Question: Zhongguancun said to sell for a long time, can disclose the details of the negotiations, who is chasing who? Liu: We talk about mergers and acquisitions in fact, the time is very short, are gossip; in fact, we have talked with the Beijing-east, domestic listed companies, HC network. Why do we choose investors? Because we do not want capital investors to intervene, but the hope is the involvement of strategic investors, I personally believe that Zhongguancun business value is greatly underestimated, our ability to have a lot of potential, and HC network cooperation is based on strategic synergy of choice. Guo: Small east is not who gave the high bid, do the people, this thing like falling in love, everyone through the merger, join hands to do things well. This is the fate, small east hope to stock, do not want to go, the Hui CongZhongguancun do bigger, this is our common idea. It doesn't matter who chases who. Question: Domestic (A-share) listed companies are very high prices, foreign listed companies are low valuations. Does HC want to go public in China? Guo: Now the gap between home and abroad is very big, we accept fate. High valuations do not represent the company well, the listed internet companies are the best, can be accepted overseas, overseas regulation is more stringent, HC did not consider the issue of domestic listing. In Hong Kong there will also be a chance, a shares hundreds of times times PE do not know whether this thing can be long, U.S. stocks and Hong Kong stocks prospered 10 years, a-share just half a year, Just Eat steamed bun do not envious, a a-share just last six months only crazy, we are good outside, the issue of financing ah easy, each have their own better, each have their own difficulties, or do their own things to do. Liu: The domestic investment direction is few, the investment point is little, everybody means not to maintain a lot of value, the domestic investor may understand the enterprise's price more. Domestic investors understand the value of these enterprises, understand their development of information, the stock fall more severe, foreign investors do not recognize the Chinese economy, I think foreign investment people have been singing down the Chinese economy, I think the two market valuations, investors judge different. GUO: HC NET and Zhongguancun, there is a problem of undervalued value, but we work together for the future.