Long its software 480 million mergers and acquisitions billion integration wall business mixed

Liuchuan every reporter Zengjian since September 10 long its software (002279, the former closing price of 30.90 yuan) issued a plan to increase, announced to 480 million yuan acquisition of Beijing billion Joint Technology Co., Ltd. (hereinafter referred to billion) and the recovery of the card, the company's shares rose for more than 60%. The market's optimism about the merger is evident. Benefiting from the explosive growth of mobile Internet, main for the integration wall advertising business billion in recent years, revenue and profits to achieve rapid growth, gross margin, net profit and other profitability indicators are also very bright. But insiders also pointed out that the integration of the wall business has a poor experience of advertising, retention rate is low, but also faced with the introduction of micro-letter advertising business to the market after the squeeze, the future integration wall Market size is difficult to increase significantly. In order to understand more about billion-plus technology integration wall business and the industry's judgment, the daily economic news reporter has repeatedly called the software aspect, but the reporter has not received its direct response to the issue. Integration Wall Business relies on iOS system for a long time its software program shows that billion in 2013, 2014 1 ~ July to achieve operating income of 22.3362 million yuan and 90.2669 million yuan respectively, net profit of 2.5779 million yuan and 16.5276 million yuan respectively. The integral wall business income accounted for 96.54% and 93.62% of the same period of operating income, is the main source of revenue of billion. The main platform of the technology integration Wall is called point into mobile advertising platform (hereinafter referred to as the point of entry). Public data show that the integration wall is applied to the mobile Internet in the field of new advertising services business. The integral wall usually appears in the mobile Application (APP) interface, after the user points open may download according to the integral wall request, installs the designated APP (for the continuous use days, the landing times may also have the request), then obtains the corresponding fictitious prop, the fictitious currency, the integral and so on rewards. The integral wall is used to promote the app to get advertisers to pay the advertising fees, resulting in income and profits. To understand the pros and cons of the integral wall industry as well as the development prospects, "Daily News reporter" (hereinafter referred to as NBD) interviewed the domestic can automatically monitor the number of mainstream iOS integration wall launch of the app Camp Public Welfare site responsible for Kang Yiwen. NBD: What about the integral wall advertising industry? Kang Yiwen: On the iOS side, now basically 100 yuan advertising budget, 50~60 yuan to use the integral wall. Multi-Union, the United States, there are meters, points into the four points of the company is relatively large, basically accounted for the market share of the integral wall of 80%. Among them, the largest market share of the alliance, the reputation is relatively good. NBD: Are there any differences in the above four families? What is the core competitive advantage of the integral wall advertisement? Kang Yiwen: From the point of view of the integration wall, the above four are not different, four companies of the CPA (advertisers in the advertising effect in accordance with each installation or activation of the mode of payment of advertising costs) the price is similar. For an integrated wall advertising company, the core competitiveness is to see who is more, who has more users. NBD: The future exhibition of the integral wallWhat is the trend? Kang Yiwen: The scale of the integral wall advertisement will be smaller and larger, if the future micro-letter platform opened advertising, the integration wall of advertising revenue will be greatly reduced, advertisers should be advertising micro-letter. Now the quality of the integration wall ads users are very poor, but the app developers have to vote. NBD: What is the quality difference of the integral wall advertisement customer? Kang Yiwen: This is mainly reflected in the user when open app does not turn back, the user retained very poor. NBD: Why did app developers have to throw in the integral wall? Kang Yiwen: The current Apple iOS system is still closed, no third-party stores, which caused the promotion channel is very small, so although Apple is now in the fight against the integration wall ads, but the integration wall ads can not be replaced for the time being. The announcement shows that billion-2014 1 ~ July iOS System advertising revenue accounted for 96.03%. The technical director, who left the daily economic news a few months ago, noted that in the 4 months before its software announced its acquisition of billion-dollar technology in September this year (that is, this May), Han Hui, the chief technology officer of Technology, had just left office a few months ago and had mastered the operation of the technology. Information shows that billion in the beginning of the establishment of technology in 2007, mainly engaged in Internet advertising services business, 2011, the company's comprehensive transformation of mobile Internet, launched point into mobile advertising platform. At the same time, June 2011 billion of the joint technology holding shareholder Wang Xin and technical director Han Hui signed an equity incentive related agreements. In the agreement, Wang Xin will be held by the billion-5% of the shares of technology, after the two sides to fulfill the contract content of three years transfer to Han Hui. The contract actually ended in December 2013. May 10, 2014, Han Hui and Wang Xin signed the "Equity transfer Agreement", Han Hui its name of the capital contribution of 45,000 yuan (accounting for 4.5% of the registered capital of the Joint Science and Technology) and Wang Niewei for the implementation of the equity incentive plan for the amount of 5,000 yuan (0.5% of the registered capital) transferred to Wang Xin, The transfer price refers to the net assets of the company, totaling 717,000 yuan. According to a long time its software release plan, billion of the joint technology 100% equity valuation of 480 million yuan, then its 5% equity valuation of 24 million. From Wang Xin May 10 this year signed a share transfer agreement with Han Hui, to this year September 12 long its software release on the joint science and Technology of the plan, billion in the joint technology holding shareholder Wang Xin to 717,000 of the cost, in a short period of 4 months, a big gain of 23.283 million yuan.