Top of the Great Era

Chapter 3010 Spin-off

In May, after a series of invitations, Zhou Buqi finally couldn't sit still anymore and had to show up at a charity dinner held by JD.com in New York.

Make the final push for JD.com’s IPO.

He went there with Senior Sister Zhen Yu.

It is worth mentioning that Chen Dong, who has been stationed in Japan for a long time, also came here specially.

JD.com is one of the major shareholders of Jingtao, and the "Jing" in "Jingtao" actually comes from JD.com. Now that JD.com is going public, Chen Dong made a special trip here, which is also a gesture of affection, and by the way, he also showed off his private jet.

Among the friends in the Entrepreneurship Alliance, besides Zhou Buqi and Zhen Yu who have their own private jets, the next one is Chen Dong.

Zhou Buqi is very familiar with these capital institutions in New York.

Basically, he has had dealings with and knows all capital institutions with a fund size of more than 100 billion US dollars.

The trip to New York was not in vain.

Because Ziweixing International’s IPO is coming next month, just treat it as a warm-up.

Liu Qiangdong was undoubtedly the protagonist of this charity dinner.

He brought his female companion.

A beautiful girl who is nearly twenty years younger than him is said to be his current girlfriend and they may be getting married.

It seems that taking Zhang Zetian in as a secretary did not affect her marriage, and Zhou Buqi felt much more relaxed.

Chen Dong was not familiar with the Americans present, so naturally he stood mainly with Zhou Buqi.

Zhou Buqi was too proud of his status to take the initiative to socialize, so he just stood there and waited for others to come over to him, chat with him, and toast him. If a lady came over, he would hug her and kiss her on the cheek, which was a bit awkward.

The ladies who come to this place are generally older, and the big bosses always come with their wives instead of female assistants or secretaries.

Chen Dong smiled and said, "With so many people here, JD.com's IPO will definitely be a success."

Zhou Buqi nodded. "On the one hand, it's my reputation, and on the other hand, it's the attraction of the three major underwriters. Americans don't understand JD.com. Haven't you read the media reports? They all say it's the 'Amazon of China'. They rely on this concept to attract investors."

Chen Dongdao: "Amazon has not spun off its logistics business."

“The spin-off is right.”

Zhou Buqi agrees more with Liu Qiangdong's choice on this point.

JD Group currently has two core businesses, one is JD Mall and the other is JD Logistics. The listing this time is mainly the JD Mall business under JD Group, excluding JD Logistics.

This will have a great advantage, as it will allow the company to gain more favor from the capital market due to the concept of "pure Internet".

Zhou Buqi said: "If JD Logistics is also included, it will not only cause a significant loss in JD's financial report, but also cause the listed entity's price-to-earnings ratio to be too low due to its heavy asset business."

"Yes!" Chen Dong sighed, "I feel it now too."

Zhou Buqi smiled and said, "Jingtao is developing very well. A market value of 220 billion US dollars? This is more than half of JD.com."

Chen Dong said: "If the logistics business is separated, it may be more popular."

When Jingtao went public, it did not adopt a split-up plan, but listed as a whole package. Jingtao Logistics' heavy assets, high debt, and huge expenses have, to a certain extent, dragged down Jingtao's main e-commerce business.

Zhou Buqi supported him without hesitation, "It's up to you, anything is fine!"

Senior Sister Zhen Yu smiled and said, "I think the split is good. You don't get paid at Jingtao, right?"

Chen Dong nodded, "Yes, no salary, no options."

Zhen Yu said softly, "If it's a pure Internet company, this option is actually better. But it's not necessary with the logistics business. You don't get paid, so it's not convenient to cover your daily expenses." "You can cash out your stocks." Chen Dong didn't have much pressure on finance, mainly because of the good foundation laid by Boss Zhou. "Xu Baihui notified me and suggested that we choose an opportunity to cash out the stocks of Jieyu Media and Yuanwei Group in the next year."

Zhou Buqi smiled and said, "Yes, that's what I mean."

Zhen Yu said, "You should get some salary, at least you can pay some personal income tax locally and have a better-looking personal tax form. Japan is different from the leftist trend in Europe and America. Japanese culture is more down-to-earth and cares about hard work and gains. Social entities that pay more personal taxes can often be treated preferentially. You can't always hold the company's tax return."

Chen Dong stopped talking.

Zhou Buqi thought it made sense and said, "Then let's do this. You can go ahead and split Jingtao Logistics from Jingtao and then list it separately. You don't need to get paid at Jingtao, but you can get a high salary at Jingtao Logistics. You can do a good job with the personal income tax. When you are away from home, you can't always think about avoiding taxes and taking advantage."

Zhen Yu smiled and said, "You don't have many shares in Jingtao, so you can take advantage of the split to get a large amount of management shares. After the split... Jingtao can hold 60% of Jingtao Logistics' shares, you can personally hold 25%, and the rest can be used to attract some capital institutions and option pools."

This is her profession.

It is a typical financial technique.

Many companies are constantly splitting, integrating, splitting, and integrating. The process is full of financial techniques, and the actual controllers can reap huge profits in this process.

This includes JD.com.

The reason why JD Logistics was separated and listed separately is because Mr. Liu wanted to gain more personal benefits through the financial means of spin-off listing.

Including the subsequent spin-offs and listings of JD.com, JD Health, Dada, JD Industrial, and JD Industrial Development... In fact, it was because when Mr. Liu was running JD.com in the early days, his own shares were diluted too much, which led him to feel that his interests were damaged, so he relied on some financial techniques to get back some of the profits.

Such financial behavior is actually not recognized by the Internet industry, because the Internet is "high-end" and "idealistic", and everyone is pursuing dreams rather than making money.

Whether it is Apple, Google, Facebook, Amazon in the United States, or BAT in China, basically they do not practice splitting up.

Regardless of whether they are asset-heavy or asset-light, online or offline, they are all packaged together in one listed entity to express their disdain for the capital market. They just want to run the company and do business honestly, rather than playing the financial trick of splitting and listing, which is only for money.

When Alibaba was at its lowest point, it once wanted to "split one into seven". CEO Zhang, who came from the financial field, wanted to use financial tricks to save the stock price. As a result, Boss Ma suddenly returned, stopped the plan in time, and forced CEO Zhang to step down and replaced the leadership.

Jingtao doesn't need any idealism when doing business in Japan.

I went there just for the money.

Of course, we will do whatever benefits us.

Chen Dong was not so shameless and said, "I am not short of money. All my bills are reimbursed by the company. It doesn't matter if I get paid or not."

Zhou Buqi disagrees. "The spin-off is right. By spinning off Jingtao Logistics, we can use the Jingtao brand to incubate more local businesses. For example, Jingtao Finance, Jingtao Housing Rental, Jingtao Car Rental, etc., to do some businesses that are more in line with localization. In addition to Jingtao's main e-commerce business, you must firmly grasp it. For other spun-off subsidiaries, you can introduce more local capital to cooperate and rely on the subsidiaries to build stronger local business relationships."

Chen Dong was brought up by Boss Zhou, so he agreed immediately, "Okay, I'll plan it later!"

Zhou Buqi smiled and said, "The current Jingtao is still a bit like a 'strong dragon'. In the future, we should split it up more and get more 'local tyrants' to protect the 'strong dragon'."

Chen Dong is very confident when talking about this. "Jingtao is developing very well now, but it is suppressed by the logistics business. The e-commerce business is developing very fast. In Japan's e-commerce market, Rakuten occupies 25% of the market share, Amazon occupies 23%, and Jingtao's share has reached 22%. By the end of the year, Jingtao will definitely surpass Amazon and become the second largest e-commerce platform in the Japanese market."

The popularity of e-commerce in Japan is not as high as that in China and the United States, and e-commerce accounts for only 10% of social consumer goods.

But this is the world's third largest economy after all.

Even a consumption ratio of 10% is enough to make Japan the third largest e-commerce country in the world.

Chen Dong is very proud of achieving such results.

Zhou Buqi asked: "Is Helo Japan's traffic connection effective?"

"Well, the effect is very significant." Chen Dong laughed, and then put forward his own needs, "The cooperation between Jingtao and Google Japan has expired. If we continue the cooperation and attract all the traffic from Google, we will have more advantages. Yahoo Japan relies on its own traffic advantage, and its e-commerce share is growing year by year. In the long run, the e-commerce competitor in the Japanese market may not be Rakuten and Amazon, but Yahoo."

Zhou Buqi said, "It just so happens that Google wants to talk to me about business recently, so I'll tell them about the renewal of the contract between Google Japan and Jingtao. You're right, the Internet business is ultimately a traffic business. E-commerce platforms are actually similar, with little differences. The main thing is to see who has more traffic."