解读价值万亿的独角兽蚂蚁金融.docx

World Bank rated Ant Financial as the most valuable fin tech company worldwide in heWorld Development Report 2019 issued in October 2018. As a financial services company that has just spun off from Alibaba Group for four years, it does deserve the title of "the mostvaluable company" with a valuation of USD 160 billion. In China, there is a huge gap between the lofty valuation of Ant Financial and the valuation of other unicorn companies.It can be seen that Ant Financial is growing rapidly and outperforming financial institutions that have been developing for decades in China and even the world. Ant Financial cannot be labeled as a simple fintech or a financial company. In terms of the 15- year accumulation and development from Alipay to Ant Financial, both the innovation capability of its financial business and the technical output capability serving third-party financial and non-financial institutions are indispensable consideration factors for its current success.Why choose Ant Financial?By making a summary and analysis of the development of Ant Financial, EO Intelligence illustrate the impetus for the industry brought by the technology and finance, and the logic behind it.License and Product InformationFailed exploration Zhaocai BaoReleased in April 2014, Zhaocai Bao positioned itself as a financial information service platform, with four major categories of products- loan, insurance, fund and receivables investment. However, the multiple guarantee measures set up bythe platform were still insufficient to ensure the safety of investment products. On December 15, 2016, Cosun bond defaulted, leading to an overdue of RMB 312 million. Even if the platform not bear the responsibility for compensation, concerning the immense public pressure, risk control problems of products exposed bythe event as well as the risk diffusion problems brought bythe platform have caused Ant Financial to stop the business of Zhaocai Bao on a gradual basis. All products related to private placement have been removed from the market and not been restored yet. CommunityIn order to compete with WeChat Pay, Alipay added chat functions in July 2015, which aimed to expand its social relationship chain by several round of promotion. In November 2016, Alipay added Community function in its newest updated version, establishing nearly 100 different “communities" based on the characteristics of the invited users. Among them, the community represented by “Campus Diary" had been in the center of a controversy due to improper rule setting and unhealthy contents posted by users without supervision, so relevant functions had been removed urgently. At the beginning of 2017, Ant Financial decided not to "set foot in social network" at the strategy meeting. That is to say, it would keep the existing social network, but no longer make any intentional attempt to develop social network business. Mutual InsuranceIn October 2018, Ant Insurance andTrust Mutual Life Insurance Companyjointly launched ''Mutual Insurance" which was available on the Alipay platform in the form of "Mutual Aid Plan for Serious Diseases". In November 2018, regulatory authorities urged Trust Mutual Life to suspend its ''Mutual Insurance" business for its failure to use the approved orfiled insurance terms and rates as required, publicity misleading in the sales process, as well as untrue and insufficient information disclosure. Affected bythis, the "Mutual Insurance'' was removed and then re-launched, with a new name "Xianghubao”. Xianghubao removed the insurance content in the original mutual aid plan and redefined it as a mutual aid based on the Internet mechanism. At present, the business is still in iteration, but no longer related to the Trust Mutual Life Insurance Company.Investment EventsWhen Ant Financial originated from Alipay, it merely positioned itself as a third-party payment enterprise. However, driven by Yu'e Bao, it changed its direction of development and began to expand by investing externally while continuously enriching its own business system.EO Intelligence has made summaries on Ant Financial's investment in China and other countries. Detailed investment events and data can facilitate a better understanding ofthe development strategy formulated by Ant Financial and the logic behind its strategy alteration in recent years. Ant Financial's investments in Mainland ChinaAs of December 31, 2018, Ant Financial has made 120 outbound investments during the 4 years after its inception (proposed investment events are not included), and expanded investment layout rapidly. In 2013, when Ant Financial began to invest abroad even before its official debut. In October 2013, it announced the acquisition of Tianhong Asset Management Co., Ltd., not completed until February 2015 due to disputes with othershareholders.From 2014 to 2018, Ant Financial have invest 120 times, involving 110 companies and covering 19 industries z which are: finance (37 times), enterprise service (19 times), trip (11 times), food & beverage (7 times), life service (7 times), Al (6 times), e-commerce (6 times), automobile traffic (4 times), culture & entertainment (4 times), medical & healthy (3 times), logistics transportation (2 times), education (2 times), agriculture (2 times), real-estate (2 times), tourism (2 times), retail (2 times), tool software (2 times), blockchain (1 time) and environment protection (1 time).It can be seen that in the field of external layout, Ant Financial has not been satisfied with its simple financial business structure. Amongthe 49 investment events in 2018, only 6are in the financial sector. Although reducing the investment in the financial sector, the investments focus of Ant Financial have been transferred to new fields: retail, has long been, tourism, logistics transportation, tools software, blockchain and environmental protection. It is also the first time that Ant Financial looked at and made investment in these seven fields, which may become its new focus in the future.2014DiDi:Series G/$4.5B2015Dasouche： SeriesC/$100M20162017Youon： SeriesA/Undisclosed2018ofo： StrategicFinancing/Undisclosediancheng：Angel Round/ ¥ 200MHello Bike： SeriesD/$350Mofo： Series E+/$866M;e： SeriesE/$700MLike Chuxing： SeriesB/¥ More than 100MFinancing/UndisclosedFinancing/ ¥ Ten millionsA+/$40MMegvii: Series C/$460MOrbbec： Series D/$200MEO Intelligence: Ant Financial Investment sin Mainland ChinaWangjinshe： StrategicFinancing/UndisclosedMybank： AngelRound/Undisclosed36Kr： Series D/$150MShangyun Feiliu： AngelRound/UndisclosedShanghai Gildata： SeriesA/¥390M： StrategicFinancing/UndisclosedFinancing/ ¥ 100Mi rip11 timesrotecno1 timeSeries C1/Y107MSeries C2/ ¥ 100MUIIUII1.IIUII Ulllllllll.Series A/UndisclosedFinancing/ ¥ Ten millionsRound/UndisclosedFinancing/ ¥ Ten millionsI. .1! AB/¥100MRound/UndisclosedFinancing/¥ Nearly 100MA/¥50MTraffic4 timesFinancing/ ¥ 200M2 timesSeries B+/UndisclosedmillionsSeries C/¥600MA+/ ¥ Ten millionsEntertainment4 timesD/UndisclosedRound/UndisclosedC/¥600M¥ Ten millionsSinoiov： SeriesA/¥700MC/¥1B2 timesTianhong Asset：M&A/¥1.18BHundsun： ShareTransfer/¥3.299BTebonFund: M&A/ ¥ BillionsShanghai Xinqian： AngelRound/UndisclosedWuma Shicai：AngelRound/UndisclosedZhiyi Licai： SeriesA/UndisclosedAnt Credit Pay： StrategicFinancing/Undisclosed19 Pay：M&A/¥293.92MXueqiu：SeriesD/$120Mrazuo：Tebon Fund: StrategicFinancing/UndisclosedQudian：SeriesE/$200MTianjin Financial Assets：Series A/UndisclosedZheshang Bank： StrategicFinancing/$30MGolden Beta： SeriesA/UndisclosedCD Finance： StrategicFinancing/UndisclosedV Finance： Series B/$TenmillionsAnt Petty Loan： StrategicFinancing/¥ 8.2B:u： Series C+/UndisclosedA+/ ¥ Ten millions19 timeseneslionsRound/UndisclosedZ 一 Financing/UndisclosedionsPlacement/ ¥ 460MShumi Fund： M&A/¥ 199MCathay Insurance： StrategicFinancing/UndisclosedChina Postal Savings Bank：Strategic Financing/ ¥ 45.IBSuntime： Strategic Financing,¥250M¥833M,:rategiFinancing/Undisclosed¥11.2BM&A/UndisclosedFinance37 timesIPO/$250MA.Afa Jinrong： Series A/ ¥TenmillionsFinancing/ ¥ BillionsEIUIIIU. MldieglLFinancing/$400MEleme：M&A/$9.5BFinancing/$1.25BA/$460MFinancing/UndisclosedSeries A/$200MFinancing/UndisclosedUUUA： Olf dLtglCFinancing/ ¥ 1.2BNeisha： Series A+/ qFl5M¥ Ten millionsA+/UndisclosedA+/¥ 15M3 timesmillionsTransfer/ ¥ 23MFinancing/UndisclosedB/UndisclosedA/UndisclosedStrategic Financing/ ¥ 320MPlacement/ ¥ 80MRound/ ¥ Ten millions LUPlacement/¥ 1.057BFinancing/ ¥ 55MPACS+，tratpcirFinancing/UndisclosedStrategic Financing/ ¥ 100MFinancing/¥ 220MRound/¥ Ten millionsA/UndisclosedFinancing/ ¥ Ten millionsA/Undisclosed¥ BillionsInvestment Events Ant Financial's Foreign InvestmentsIn addition to the investment in China, Ant Financial have also established branches in 14 countries and regions around the world, reaching cooperation agreements with at least 25 countries. For example, Alipay, one of the dominating player in mobile payment market, is available in 13,000 LAWSON stores across Japan and its users can use Alipay for shopping and transaction at Finnair flights and so on. The foreign investment of Ant Financial is more indicative of its global layout than simply extending Alipay business beyond China.As of December 31,2018, it has 17 overseas investment events involving 14 enterprises, including the proposed acquisition of WorldFirst (at the time of this writing, the investment was completed on February 14, 2019, and WorldFirst became a wholly-owned subsidiary of Ant Financial), a British cross-border payment company. Its investment covers 11 countries and regions including Singapore, India, Thailand, America, South Korea, the Philippines, Indonesia, Malaysia, Pakistan, Bangladesh and Britain. On top of that, EO Intelligence has collated the number of population in overseas countries for which Ant Financial has confirmed layouts by the end of 2018 to supportthe goal of Ant Financial that it will serve 2 billion users worldwide in 2026. The followingfigure shows Ant Financial's foreign investment layout and offices in the world.Investment EventsEO Intelligence: Ant Financial Oversea Investments and Global OfficesUnited Kingdomakao Payinveyrnent platformFranceited StateapanaporeoneGlobalization areaAustraliaGlobal officeLuxembourg-EU hubNetherlands GermanyFebruary 2017 Strategic invest Mynt- digital financial vic.es providerSeptember 2016 W ：= M&A EyeVerift(nowZOLQ! biometrics enterpriseNovember 2017*Invest (Series A) TigerGraph -graph database for enterprise2017h joint venture with nedia companyaiwanPhilippinesjmber 2016est Ascend Money ententerprise彳 Ik September 20羽茎、I Planning to acquire Wp.rldFirst ( oversea paymeirfenterprise7November 2014 宵 步 Invest (Series B) V-key- mobile security and encryption technique providerStrategic invest bKash- mobile payment enterpriseIndia Thailan& September 201 5 . /tm twice (Series A nent gateway& October 2018 invest Zomato twice- )mmended platformEstablish joint venture with Touch 'n Go- electronic payment system providerc , , , Korea BangladeshApril 2017M&A hellopay- online payment systemSingaporeIndiaThailandUnited StateKoreaSingaporeIndiaThailandUnited StateKorea5.6M1.339B69M 326N51MPhilippines t105Mf32.08MtffttllffH#! 264MH11 f H 197MBangladesh f t t t t H t t ft 阚Chapter 2Ant Financial Development StrategyA company's business layout reveals its direction on developing strategy, decision on speed and quality and an understanding of its capability over a period of time.In the past four years, Ant Financial's original strategies have changed significantly. Besides the goal of globalization, Ant Financial has also included serving small and micro enterprises and credit system in its development goals for the next decade.In April 2016, after completing Series B financing, Ant Financial announced its three major strategic directions: international business, rural finance and green finance； later in October, Ant Financial announced structural adjustment and defined its three major strategies forthe next decadeglobalization, serving small and microenterprises and building a credit system.The strategy adjustment indicated an clearer development direction of Ant Financial. The globalization strategy with a focus on international business remained unchanged in the strategy adjustment, showing Ant Financial's determination to go global.International businessRural financeGreen financeGlobalizationServing small and micro enterpriseCredit system constructionThree Major Strategies - GlobalizationIn August 2007, Alipay expanded overseas business in Hong Kong, embarking on its first step toward globalization. In 2016, globalization tops as the most important strategies of the three by Ant Financial with the goal of covering 2 billion consumers worldwide in the next decade. As atthe end of 2018, Alipay and its partners had over 1 billion users, having their goals half done. From the investment cases above, it can be seen that Ant Financial already started to test the water of overseas investment in its early days of establishment.In the past few years, globalization of large enterprises has become a hot topic. The universal forms ofglobalization can be divided into： overseas investment, overseas business expansion and overseas cooperation.Successful overseas investment model drive Ant FinanciaFs overseas layout into the fast trackUnlike its investment logic in China, among the confirmed 16 overseas investment events, Ant FinanciaTs investments in the financial field take up the highest proportion of 68.75%, which are all in developing countries in Southeast Asia and South Asia. Compared to countries with relatively advanced financial systems such as Europe and America, those emerging countries have immature financial systems which underserve considerable individuals.Three Major Strategies - GlobalizationSuccessful overseas investment model drive Ant FinanciaFs overseas layout into the fast trackIndia is the first stop of Ant FinanciaTs globalization journey and also one of China*s important partners with frequent trade contracts. In terms of population, India has the world's second largest population, only second to China. At the beginning of the cooperation in 2015, India's GDP was only 20% that of China. With a population close to that of China, in 2017, India's number of credit cards per capita and number of debit cards per capita were only 1/14 and 1/7 of those in China, reflecting a relatively low development level in the banking indu