Original title: Shentong fell
It took eight years for Shentong to fall from the top.
In 2014, the market share of this old-fashioned express delivery giant was still in the first place, but by May 2022, Shentong was already at the tail end of the Tongda department.
According to Shentong’s announcement on June 18, in May, Shentong’s business volume was only 1.003 billion, while Yunda and Yuantong reached 1.485 billion and 1.554 billion respectively.
Even, the company has been surpassed by the new entrant Jitu.
On June 15th, Jitu Express held a major customer exchange meeting in Wuhan. According to a number of participants who confirmed to the 21st Century Business Herald reporter, the exchange meeting revealed that in May, the average daily ticket volume of Jitu Express on the entire network exceeded 4,000. Ten thousand.It means that in the whole of May, the business volume of Jitu has exceeded 1.24 billion.
At the other end, Shentong Express has reached a key node in the change of actual controllers.According to the previous agreement, if Alibaba exercises its rights, it will hold 46.0% of its shares and become the controlling shareholder.The agreement deadline is December 27 this year.
Various changes are taking place.
"Ferocious Rabbit"
In fact, the express delivery market has tended towards stock competition.
Data from the State Post Bureau shows that in 2021, the total business volume of express delivery service enterprises nationwide will complete 108.30 billion pieces, a year-on-year increase of 29.9%, and the growth rate will decrease by 1.3 percentage points compared with the previous year; An increase of 0.2 percentage points over the previous year.
E-commerce, the core driving force of express delivery growth, is hardly optimistic.The 2022 618 e-commerce sales report on the whole network released by Xingtu data shows that the total transaction volume of the whole network in the current period is 695.9 billion yuan.Among them, the total sales of comprehensive e-commerce platforms was 582.6 billion yuan, an increase of only 0.7% over the same period last year.
This situation falls on everyone involved.A person in charge of a Tao-based merchant told the 21st Century Business Herald reporter that the sales volume of 618 in previous years was about 3-4 times higher than usual, but this year’s 618 sales only increased by 1.5 times compared to usual, with a drop of at least half.
The company where the person in charge works is involved in the design, production and manufacture of household paper products, and has also invited celebrity endorsements.have a certain scale.
Under the market downturn, merchants are more concerned about freight rates."The current freight rate is ok and can't go up any more." The aforementioned person in charge stated.The low freight rate, regardless of profit or revenue, has a great impact on the express delivery industry.
The current price is still at a historical low, not far from the cost line.
Data from the State Post Bureau shows that in May, the price of a single express ticket was 9.44 yuan, a year-on-year increase of 0.7%.In Yiwu, the wind vane of the express delivery industry, the price of a single ticket was 2.91 yuan, a year-on-year increase of 9.1%, and a slight decline from the previous month, a decrease of 0.15 yuan.
In this situation, the Rabbit came.
According to 21st Century Business Herald reporters, after the integration of Best Express, the single-ticket transportation cost of Jitu has dropped significantly from the previous month. significantly decreased.
On the other side, the Taoxian entrance brings a new space.According to multiple confirmations from 21st Century Business Herald reporters, the current internal direction of Jitu is to tie the revenue and expenditure by the end of this year, and also hope to increase the proportion of Taobao's business volume in the overall business volume.
In addition, Jitu's distance does not stop at making profits.Some industry executives who are in close contact with Jitu revealed that Jitu's short-term and mid-term goal is to tie the first echelon of the industry's mastery department.The financial report shows that in the first quarter of this year, the average daily business volume of Zhongtong, the head of the Tongda Department, was close to 58 million votes.
As the growth rate of the industry declines, Jitu has to point to the stock in order to achieve its high growth target.Shentong is undoubtedly the thinnest piece of wood.
It is worth noting that, according to Shentong’s official Weibo disclosure on June 22, driven by the 618 promotion, its entire network has continuously placed 45 million orders in recent days, a year-on-year increase of 30%.
This may be Shentong's response to Jitu's single-volume overtaking in May.However, based on the large differences in market fundamentals between June 18 and May, and the greater volatility of the data in a few days compared with the whole month, the actual comparability between the two is limited.
Other head express companies did not disclose 618 data.
"Governance Issues"
In fact, Shentong's fall has multiple factors.
Northeast Securities believes that after 2016, the growth rate of Shentong's business volume was lower than that of its peers and the market share of the industry declined significantly. The core reason is that the direct sales rate of its transshipment center assets is insufficient, which in turn suppresses the improvement of efficiency.
Compared with the self-operated rate of the transshipment centers of various express companies in 2017, Shentong Express was only 56%, the lowest among the leading companies in the industry.In addition, the low direct sales rate makes it difficult to upgrade the transshipment center. Before 2018, Shentong’s capital expenditure was far lower than that of comparable companies in the same industry.The backward upgrade has evolved into slow production capacity improvement and low operating efficiency. Under the pressure of the industry's continuous price war, its profitability and competitiveness have continued to be weakened.
This may just be superficial.A number of Tongda senior executives and senior franchisees admitted to the 21st Century Business Herald reporter that the key to the growth of Shentong is the many hills.
Objectively, based on historical reasons, each of the Tongda Departments has factional problems, but it is particularly evident in Shentong.Some senior executives from the Tongda department revealed that the opinions of Shentong’s decision-makers are not unified, and all kinds of pulls will be magnified in the interests.
Judging from the current actual controllers, Chen Dejun and Chen Xiaoying have a combined shareholding ratio of 35.84%.Chen Dejun is the chairman of Shentong, and Chen Xiaoying did not join the board of directors. Her first husband was Shentong founder Nie Tengfei. In 1998, Nie Tengfei died in a car accident. Subsequently, Chen Xiaoying and Chen Dejun took over Shentong.Chen Dejun is Chen Xiaoying's older brother.
It is worth mentioning that after Nie Tengfei passed away, his younger brother Nie Tengyun left Shentong and founded Yunda.
Or it is precisely in order to solve various disputes, the actual controller of Shentong chose to leave.
In July 2019, Shentong's original controlling shareholder De Yin Holdings and actual controllers Chen Dejun and Chen Xiaoying signed the "Share Option Agreement" with Alibaba.The agreement stipulates that Ali has the right to purchase the company's shareholder equity as stipulated in the agreement within three years from December 28, 2019.
In September 2020, De Yin Holdings, Shanghai De Yin Derun Industry signed the "Split Agreement" with Ali; at the same time, Chen Dejun and Chen Xiaoying signed the "Amended and Restated Share Option Agreement" with Ali.
After the completion of the above matters, Ali will hold 25% of the shares of Shentong through the newly established De'e Industry under the Separation Agreement.
In September 2021, De Yin Holdings, Chen Dejun and Chen Xiaoying signed the Second Amended and Restated Share Option Agreement with Ali.If Ali exercises the new "Share Option Agreement" (effective date to December 27, 2022) and completes the corresponding equity transfer, Ali will directly hold 21.0% of Shentong's shares, or indirectly through Shanghai Derun Er Industrial and Gongzhirun respectively. Holding 4.9% and 16.1% of Shentong's shares, they will hold a total of 46.0% of Shentong's shares and become the actual controller.
According to the 21st Century Business Herald reporter, Ali's infiltration of Shentong has already happened.At the end of 2020, Ali began to influence the appointment of managers at the provincial level in Shentong. In February 2021, Wang Wenbin, who had been the general manager of Ali Cainiao Network, was "airborne" to Shentong as the director and general manager, and brought a large number of Ali departments. cadre.
This situation has caused certain fluctuations in the operation of Shentong.A senior franchisee of Tongda Department revealed that Chen Dejun still often goes to the grassroots level, but the franchisees have discounted his trust.
"Everyone knows that what he (Chen Dejun) says doesn't necessarily count, and it affects the morale of franchisees." The aforementioned franchisees said.
According to the 21st Century Business Herald reporter, during the price war period, Shentong’s distribution fee was still at a high level in the industry, which stabilized the network and raised costs.Last year, its revenue was 25.255 billion yuan, a year-on-year increase of 17.10%; its net loss was 909 million yuan, a year-on-year decrease of 2603.16%.
However, the situation did not affect Shentong's expansion.
According to Shentong's May investor exchange minutes, in the next three years, it will invest tens of billions of funds to carry out capacity improvement projects based on diversified financing channels. It is expected that by the end of 2022, the normal throughput capacity will exceed 50 million pieces per day.
Although Ali has not yet decided whether to exercise the rights, Shentong's changes have never stopped.
According to its official Weibo account, from June 22 to 24, STO started a “listen-in” tour of the president’s outlets, with 11 stops in 3 days and nearly 2,000 kilometers.
This time, the protagonist is Wang Wenbin.
