Zhongguancun committed to HC NET, what is the reason?

The rumours of Zhongguancun's "prostitution", which had been on and off for months, ended on the evening of March 17 by a belated announcement. However, the final buyers are not the rumors of Beijing east, but in the industry rather low-key old business-to-business enterprise HC Net.

According to reports, March 17 Evening News, HC Network issued a notice said, has reached an acquisition with Zhongguancun intention, HC NET will be 1.5 billion yuan to buy Zhongguancun, including the main domain name www.zol.com.cn (zhongguancun), www.zol.com (Zhongguancun Mall) and Www.ea3w.com (the worldwide network of home grid) sites and other assets.

The bulletin shows that the HC NET will be additional shares and cash to buy Zhongguancun. In the 1.5 billion bid, HC delivers 30% of its cash and the remaining 70% will come from additional shares.

According to the letter of intent, Zhongguancun needs to be in the next three years after the promise of net profit to achieve: 100 million yuan, 130 million yuan, 170 million yuan. Data show that Liu is the Zhongguancun's largest shareholder, accounting for 60% of shares, according to this calculation Liu will be 900 million yuan after the transaction.

It was also reported that Zol general manager Liu accounted for 60% of the shares, as the largest shareholder can be set now 900 million yuan. This morning, Liu sent an email revealing that Zhongguancun February 1 from Cbsi officially independent, after only 45 days after the completion of the transaction. This is the third time that Zol has been acquired under Liu for 15 years.

Why did you come to HC net? Liu in the letter said, Hui Cong early is the domestic industry market leader brand, Zhongguancun started the science and technology quotes business has been a lot of inspiration, and two enterprises in the business model synergy has more potential to enhance the future of the two sides in the industry resources and so many can complement each other, In addition, he has always respected the founder of Guofan.

Liu said that in the future, Zhongguancun will be from a media platform to provide advertising services, transition to financial services, E-commerce, O2O, such as the main diversified industrial platform.

Take the purchase transformation

HC Network is one of the oldest business-to-business enterprises, to provide enterprise users with a huge supply of information and inquiries and other services, mainly through advertising and membership fees and other modes of profit. But while the model still has time, the growth ceiling is already clear. HC network to this end to make a transition.

Last October, HC CEO Guo said in an interview with the media, HC network from the Business-to-business 1.0 model to the Business-to-business 2.0 model transformation, that is, from the era of information and advertising to deal with the era of financial transformation.

The acquisition of Zhongguancun's assets, in fact, is also in the expansion of the transaction link. Because Zhongguancun as the largest vertical it Web site, also has e-commerce services, and has a good reputation.

Last October, the Guo from Hong Kong's gem to the Hong Kong main board, and the hope was to be able to buy a vertical type of company for a quarter. "Investment standard one is to expand the product line, do not involve the HC net before the business, another is vertical line, buy a product vertical company, try a lot of previously never involved in the industry." "He said at the time.

In fact, the Guo has already made a fuss about finance and trading before the turn-board listing. 2013, HC Network cooperated with Minsheng Bank to provide credit services for small and medium-sized enterprises; At the end of 2013, the digital investment of Shenzhou 1 billion was set up as a small loan company. 2014, HC Network also subscribed to the IC components of business-to-business vertical commercial core city stock, become the latter cornerstone investors.

1.5 billion yuan is not expensive?

In the 1.5 billion-yuan acquisition of ZHONGGUANCUN assets, HC made full use of the opportunity to issue additional financing in the Hong Kong motherboard, with cash deliveries of 30% and the remaining 70% coming from additional shares.

In this transaction, the valuation of the Zhongguancun is 1.5 billion yuan, and the next three years after the promise of net profit to be achieved: 100 million yuan, 130 million yuan, 170 million yuan. In accordance with the net profit of 100 million yuan next year, HC net in the acquisition of Zhongguancun 15 times multiples, in accordance with the annual net profit of 170 million yuan, p/E is only 8.8 times times.

In its current business model, the Hong Kong market offers a 20-fold p/e ratio, according to the HC network. IC Components of business-to-business vertical electric business through the core of the city's price-to-earnings ratio also reached 30 times. Therefore, Hong Kong investors should be satisfied with the Zhongguancun's purchase price/earnings ratio.

However, it should be noted that Zhongguancun's current revenue still comes from advertising sales, mall business under the impact of other electric dealers in fact, it is difficult to guarantee a good profit, and to complete the 3-year net profit growth of 30% of the target is actually difficult.

"Weak and weak join forces"?

According to the It Times Network report, the Chinese Academy of Social Sciences Information Research Center Secretary General Qiping said, "The wisdom of the model is more in line with the overall direction of development, but the Zhongguancun model is somewhat problematic." ”

Qiping said Zhongguancun's acquisition was not without reason, its IT equipment profit margins have been falling, the added value is too low, which means that its industry fundamentals are bad. Compared with it, although wisdom is also a simple quote started, but early in a few years ago, Hui Cong began strategic transformation and upgrading. Focus from the simple IT industry upgrades for all walks of life, from the main product upgrade to the main service, transformation into all walks of life information push point. At the same time, HC's capital integrates all aspects of IT industry's resources and improves efficiency.

Many people believe that Zhongguancun and HC are the products of the past PC era, now some "outdated", when asked about the combination of the two to other similar enterprises will bring what inspiration, Qiping said: "This tells us, not technology to do technology." This is an ERA of integration! Qiping also cited an example: Big data, in the United States, the largest number of data flows is the Amazon. And why? Because it's a combination of big data and business. By contrast, Microsoft, Google are only in the "closed-door" big data, so do not go out.

It is reported that since 04 Cbsi entered China, has acquired 14 local websites, involving an amount of about 50 million U.S. dollars, covering the four areas of technology, automobiles, fashion, regional consumption, in order to differentiate the operation of the group, just technology groups include Zhongguancun, PChome Bathers, ZDNet to the top of the network, Hummingbird Network, the worldwide grid, bnet Business Excellence Network, the western Regions it network, three qin it network and the national 85 branches.

According to insiders, as the mobile end of the emergence of the PC end of the declining, most of these sites are losing money. Earlier this year, employees revealed that PChome had been "kicked out" and that the sale of Zhongguancun was known all over the town.

By Yu Huicong nets and Zhongguancun are the Internet + community "old children", are still in the PC end, so some people in the industry to the two "combination" is not optimistic that this is "weak weak joint", but the Internet observer Ding has different views.

Ding that, from the site traffic, user volume and other indicators, Zhongguancun is currently in the industry leading position, from it information to the evaluation and other related information available. and HC NET, in addition to business-to-business this is more familiar with the business, but also launched the media, market research and other business. According to the information he had received from his previous visit to HC executives, a subsidiary of HC had valued more than 1 billion, or would be listed during the year. And the wisdom of these years also around the shot, involved in a number of areas, investment and development of a lot of new business, but relatively low-key, to the industry a kind of Hui Cong from the Internet industry disappeared impression.