After falling in love with C2B, profit is the second hand business.


After falling in love with C2B, profit is the second hand business.

Zhao Chenting

The profit problem of the second-hand car is imminent, and the capital will pay more attention to the growth rate and the price earnings ratio of the enterprise. With the increase of financing difficulty and investment, the second-hand car must have the ability of self hematopoiesis, so that it can not be backward.

The application submitted by IPO to the US did not cool down the hot second-hand car business of the past two years.

As a matter of fact, the second half of 2018 will be a new situation for the second-hand car business market.

This time, the focus of the market is no longer confined to what the media dubbed "War Within Three Kingdoms".

Compared with the three main C2C and B2C models of "War Within Three Kingdoms", C2B has recently been favored by capital.

In the same day, the car set up 800 million yuan D round financing, and the car family also announced that the convertible debt form investment online auction platform to take 100 million dollars a day.

You know, whether they are cars or daily cars, both of them are using C2B mode to cut into second-hand car trading market.

In fact, in addition to the car, at present, the domestic C2B auction platform also has the "car speed pat" under the "many car groups" of the melon seed parent company, "everyone is quick to sell" under the banner of all cars, and the original car of the big search car is easy to take.

This also means that the main C2C mode melon seeds and everyone car companies have extended their hands to the C2B market.

CEO Huang music, founder and founder of the car, believes that more players participate in the C2B track is a good thing, the C2B second-hand car market is so big, now the share of the entire e-commerce is still very small, at least we can do this market together. For the competition, Huang believes that infrastructure construction and the formation of barriers are costly. In the short term, new players are hard to shake the current pattern, and some players are just a new story for financing.

Statistics show that in 2017, the volume of second-hand cars traded in China was about 12000000, and it was expected to reach about 15000000 vehicles this year, but only 10% of the used cars sold through the network platform.

In fact, the C2B market has also experienced a round of shuffle, and some participants are constantly withdrawing from the market.

Even with the tree of Ping An Group, a safe car was suspended in February 2016, and the business was later integrated into safety insurance.

But the benefit of C2B mode connecting personal owners and vehicle dealers is that the single car marketing cost is lower than the C2C model, and the threshold is lower than that of the B2B model, so the profitability will be stronger.

This is why the B2C and C2C models, including the excellent letter and melon seeds, are still doing the money loss business, and some C2B companies, including the car, have been able to tell the story of the profit.

The previously disclosed prospectus revealed that the net loss of you was 2 billion 747 million 800 thousand yuan in 2017, compared with a loss of 1 billion 392 million 900 thousand yuan in 2016, up to 97.3% from the same year.

However, if deducted from the one-time impact of equity and derivative liabilities, the net loss recorded by the non US accounting standards (NON-GAAP) would be narrowed to 1 billion 696 million 100 thousand yuan.

We have to mention that, before this, because of the heavy investment in the purchase of heavy assets, advertising marketing and so on, some second-hand electric business enterprises who have burned money too fast have been staying in the cycle of "financing, burning money, refinancing, and burning money again".

To this end, everyone car CEO Li Jian has ridiculed "every few months to melt some, and then a few months and then melt some, afraid that the letter is not enough."

But when most of the used platform has been raised to the D wheel, the relatively large number of remaining companies means that future competition will go into the deep water.

In other words, profit driven capital is limited. In the latter part of the investment of second-hand car business, capital will only be more cautious in investing money.

Huang Le's view is that after 2019, the financing of second-hand car companies will become difficult. Only efficient companies can get money. Otherwise, IPO will be merged, and the industry pattern will be set up at that time.

And this also means that the profit problem of the second-hand car is imminent. The capital will pay more attention to the growth rate and the price earnings ratio. With the increase of financing difficulty and investment, the second-hand car must have the ability of self hematopoiesis, so that it can not be backward.


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