Combine with the physical industry to build an ecological chain, the third-party payment field mergers and acquisitions surge

The US group commented on the recent completion of a wholly-owned acquisition of the third-party payment company, Qianbao. Relevant persons of the US Mission told reporters on September 27 that after obtaining a third-party payment license, the layout of the US-based payment payment eco-platform will be initially completed.

The license was suspended "upper new", so that third-party payment of license stock market mergers and acquisitions surge, Hong Lei shares (quote 002647, buy), Xinli Finance (quote 600318, buy) and other listed companies have tried to "surf", licensed companies The valuation has risen for a while. Insiders pointed out that the combination of license companies and physical industries forms an ecological value chain, and the value of third-party payment licenses can be reflected; if blindly involved, it may lead to a double loss situation.

Mergers and acquisitions

Recently, companies with third-party payment licenses have been particularly fragrant in the M&A market, and related M&A transactions have been frequent. In the buyer's camp, in addition to Evergrande Group, Midea Group (quote 000333, buy), US group reviews and other companies, Xinli Finance, Honglei shares and other A-share listed companies are also involved.

For the wholly-owned acquisition of the Qianbaobao, the US group comment did not disclose the amount and specific details. The reporter learned that Qianbaobao is one of the first companies in China to obtain a third-party payment license, and is committed to providing a complete payment comprehensive solution for small and micro businesses. The license scope of Qianbaobao's payment license includes Internet payment, mobile phone payment, bank card receipt and other services, and is an important partner of major commercial banks.

Prior to this case, at the end of August, some media reported that Midea Group had completed the equity change in the acquisition of 50% equity of Shenzhen Shenzhou Tongtong, and the transaction price was 300 million yuan.

The reporter learned from the national enterprise credit system that Shenzhen Shenzhou Tongfu Technology Co., Ltd. has a registered capital of 100 million yuan, and its business scope includes Internet payment and mobile phone payment services. The payment business license is valid until June 26, 2017. Foshan Shunde District Midea Appliance Industry Co., Ltd. is a new shareholder of Shenzhou Tongfu's equity change on April 26, with an investment amount of 50 million yuan and a shareholding ratio of 50%. The registered capital of Midea Appliance Industry Co., Ltd. in Shunde District of Foshan City is 2 billion yuan. The shareholders include the listed company Midea Group, and its investment amount is 300 million yuan.

Previously, Haier and other home appliance companies have entered the third-party payment field through mergers and acquisitions. Haier acquired Expresspay Payments in March 2014 and obtained the Internet payment business license; TCL Group (quote 000100, Buy) also established Shenzhen Qianhai Huiyintong Payment Technology Co., Ltd. in 2014 to apply for a license.

Beijing Haike Rongtong Payment Service Co., Ltd., which has a third-party payment license, is a “marriage” listed company. After the breach of the transaction between Haike Rongtong and Yongda Group (quote 002622, Buy), Xinli Finance announced on September 7 that it intends to acquire 100% of Haike Rongtong for 2.378 billion yuan. After the completion of the acquisition, the company will intervene in the third party. Payment area.

According to the restructuring plan, the acquisition is limited to Haike Rongtong, excluding its holding subsidiaries and shareholding companies, and its holding subsidiaries, Zhongxin Finance and Rongtong Interactive, will be divested from Haike Rongtong. The valuation has also been adjusted accordingly. Compared with the estimated value of 2.969 billion yuan when the Yongda Group was restructured, the valuation of 2.378 billion yuan was about 20% off, and the proportion of cash payment increased from 10.3% to 23.8. %.

Haike Rongtong obtained the “Payment Business License” issued by the People's Bank of China in 2011. It has the qualification to operate third-party payment services nationwide and has the functions of non-financial payment institutions. The main business is traditional POS receipt and intelligence. MPOS acquiring business. According to the announcement, as of July 31, 2016, Haike Rongtong had approximately 210,600 existing merchants, and the merchants had a transaction volume of 54.463 billion yuan.

Honglei shares also announced on the evening of May 12 that the company intends to acquire a 90% stake in Guangdong Heli, a 51% stake in Shenzhen Legend and a 100% stake in Beijing Tianzhu. According to the announcement, Guangdong Heli and Shenzhen Legend are engaged in third-party payment services. Beijing Tianzhu is engaged in bank credit card consumption services and is one of the earliest B2B2C models in the field. Honglei shares plans to accelerate the transformation of its main business by arranging the third-party payment business and credit card consumer service areas with strong profitability and broad development prospects.

Since the beginning of this year, a number of listed companies have initiated M&A transactions with third-party payment institutions, including Tibet Tourism (quotation 600,749, buy), Tianzhu New Materials (quotation 300169, buy), Highly Meida (quote 002537, buy Into the company.

Regulatory

It is understood that the central bank has issued 270 payment licenses since 2011. During the period from 2015 to 2016, Zhejiang Yishi, Guangdong Yimin and Shanghai Changshang were successively cancelled by the central bank for payment of licenses due to illegal appropriation of customer reserve funds and suspected illegal storage. There are currently 267 payment licenses left on the market. Since the receipt of the payment license by Guangwu E-Commerce Co., Ltd. in March 2015, the central bank has not issued the payment license yet, and the applications for competing enterprises have not been approved.

Analysts said that from the relevant industry policies released in recent years, it is expected that the central bank will strictly control the number of licenses in the future, and at the same time cancel the licenses of illegal institutions and eliminate market participants with insufficient capacity. In addition, many “licensed” institutions are faced with the requirements of merger and business scope reduction, and the future payment license resources will become scarcer.

Some insiders predict that in the future, the entire payment industry will have a large number of mergers and acquisitions. The source pointed out that the central bank has clarified that the main regulatory thinking of non-bank payment institutions is: in a period of time, in principle, no new institutions will be approved, and the standard guidance and risk mitigation work for existing institutions will be focused on, and systematic and Regional risk is the bottom line. With the reshuffle of the third-party payment market by M&A transactions, the concentration of the third-party payment industry will be further enhanced. On the one hand, similar payment institutions will increase their competitive advantage through mergers and acquisitions, business integration, etc. (Aiji, net worth, information); on the other hand, in the absence of a new institution for a period of time, the acquisition has Companies that pay licenses will be the primary means of obtaining payment licenses.

Insiders of the US Mission revealed to the China Securities Journal that an important reason for the acquisition of third-party payment licenses was that the company was once reported by the relevant person due to the lack of payment licenses, and the US group payment was also offline. Under the background of strict supervision of the payment industry, the company initiated a merger and acquisition to obtain a payment license, which is also a demand for business layout.

The payment license is a license for the enterprise to carry out the payment business, and may not be transferred, rented or loaned. However, payment licenses can be obtained by acquiring licensed companies. The acquisition of related companies with third-party payment licenses has become a “passport” for listed companies to lay out the business. Correspondingly, the boom in mergers and acquisitions has risen, and the price of license plate companies has risen.

This phenomenon has already attracted the attention of the regulatory authorities. Taking Xinli Finance as an example, the company announced on the evening of September 8 that it received a letter from the Shanghai Stock Exchange asking the company to further explain and supplement the disclosure of the issue of shares and payment of cash to purchase assets and raise matching funds and related party transactions. According to the plan, the net assets of the 100% equity of Haike Rongtong were 524 million yuan, the transaction price was 2.378 billion yuan, and the value-added rate was nearly 353.82%. The inquiry letter requested that the price-earnings ratio of the listed companies in the same industry and the comparable market transaction cases be combined to supplement the disclosure of the reasonableness of the price.

According to the performance commitment, Haike Rongtong's net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses in 2016-2019 is not less than 100 million yuan, 195 million yuan, 270 million yuan and 335 million yuan respectively. According to financial data, the net profit of Haike Rongtong in 2014, 2015 and January-July 2016 was -597.14 million, -18,868,800 yuan and 11,329,95,000 respectively. The inquiry letter requested that, in combination with business data such as business contracts, number of online merchants, and daily transaction volume, the company added supplementary disclosure of the reasons for the substantial increase in net profit from January to July 2016, and net profit after deducting non-recurring gains and losses from the underlying assets during the reporting period. Whether there is a significant risk in the performance of the performance of the underlying assets.

Building an ecology

The rapid growth of the payment market is a trend. iResearch expects that by 2019, the scale of third-party Internet payment transactions in China may reach 26,941.09 billion yuan.

The ecology of the payment industry will also change. The Notice on Improving the Pricing Mechanism for Bank Card Credit Cards has been implemented since September 6. The service fee of the issuing bank is changed from the policy pricing of different merchant categories to the government guidance price and price limit management of the business category. The issuer's service fee rate level, while reducing the network service fee rate level. Chen Qizhang, CEO of Yisheng Jinfu, said in an interview with China Securities Journal that after the fee change, the profit rate of the payment industry company will be further reduced. It is difficult for the payment industry to become an independent development industry and must be attached to a large enough real economy to survive. . However, third-party payment institutions have mastered the sales data of enterprises, and the value of big data in the Internet era is immeasurable.

“The process of issuing a large number of licenses is trial and error and innovation. The current strict adjustment is necessary. The combination of payment licenses and physical industries will generate greater value, which is the value brought by ecology.” Chen Qizhang introduced, “Easy Gold Backed by HNA Group, the company arranges travel payment, tourism finance and third-party services. Optimistic about the development prospects of the tourism industry and the ecological layout of HNA Group, Yisheng Jinfu will deeply cultivate the tourism finance field."

The relevant person in charge of the first batch of institutions that have obtained payment licenses also believes that business model innovation is imminent. Large institutions will reduce the number of players in the financial sector through the acquisition of payment institutions. The companies around the group will further develop, and the pure payment market competition will be more The more intense it is.

Mu Rongjun, Senior Vice President of the US Mission Group, said that “Meeting Group’s third-party payment license is beneficial to provide users and merchants with safer and more convenient services. In the future, we will continue to adhere to the principle of “open and win-win” and each Bank financial institutions, card organizations and other payment institutions openly cooperate to provide users and merchants with diversified choices, and go hand in hand with partners to achieve a win-win development of the O2O ecosystem."

Some insiders reminded that “surfing” in the field of third-party payment still needs to be cautious. He said that at present, the profit margin of the third-party payment field has been greatly reduced, and many institutions have accelerated their transformation. The "high price" acquisition of listed companies may not be able to obtain expected profits. Moreover, some companies are not suitable or able to build an Internet financial ecosystem. If synergies are not exerted, mergers and acquisitions may lead to a double loss situation.