Source of article: letter list (ID: wujicaijing) , author: Sun Ruliang, thematic map source: vision China

Lu Zhengyao has n’t decided whether to resign. He is already in Lalang and is looking for a new owner for car rental in China.

On April 10, Interface News reported that at present, the Geely Group and the Investment Department are in contact with relevant institutions to discuss the purchase of Shenzhou car rental.

The report said that on January 31 of this year, a few days before the first report of Ruixing Coffee was released by Hunshui, a key person from Ruixing and Shenzhou Car Rental found the strategic investment department of Geely Group Looking for buyers. However, Geely responded to the alphabet list saying: “We have no such plan.”

Interestingly, just a few hours ago, Ctrip just spoke out denying the news of its intention to acquire a car rental in China on the evening of April 9. In this regard, another source said to the media that the two false news is that China Car Rental intends to release the news to attract buyers. “The news was received by the media last night, but it was only revealed this morning.”

Regardless of the truth, behind the two acquisitions of Oolong a day, it was revealed that under the influence of the domino effect of Ruixing Coffee ’s financial fraud, the company in China was falling apart. Among them, car rental in China is the most implicated. On the evening of April 2nd, after Ruixing Coffee disclosed that the amount of financial fraud was as high as 2.2 billion yuan, the stock price of Shenzhou Car Rental plunged more than 50% on the second day, and the suspension was announced on the same day.

Despite several clarifications over the past week that Shenzhou car rental has nothing to do with Ruixing, it is still difficult to offset the cliff-shaped decline in share prices. “Financial Times” reported on April 9 that Lu Xingyao, chairman of Ruixing Coffee, will try to distance himself from China Car Rental and China Excellent Car, and will consider resigning from the chairmanship of China Car Rental to try to prevent the stock price of China Car Rental from falling further. .

The current signs indicate that due to the impact of Ruixing ’s counterfeiting incident, under the strong doubts and pressure from the market and the public, it is difficult for the Chinese department to develop in accordance with the blueprint set by Lu Zhengyao. As the most high-quality assets in the Chinese department, there is no shortage of inquirers for car rental and car rental.


Shenzhou Car Rental is a famous work of Lu Zhengyao, chairman of Ruixing Coffee.

Shenzhou Car Rental was listed on the Hong Kong Stock Exchange in September 2014. It is known as China ’s first car rental company and is Lu Zhengyao ’s first listed company. Since then, the Lu’s IPO plant has officially opened, and then the China Automobile listed on the New Third Board and the Ruixing Coffee listed on the NASDAQ are the products of Lu Zhengyao’s copy of China’s car rental experience.

The three companies are all named Lu. The majority shareholders of Ruixing Coffee and China UCAR are Lu Zhengyao, holding 23.94% and 10.05% respectively; in terms of car rental in China, Lu Zhengyao and his wife Guo Lichun are the largest shareholders, holding 29.76% of the shares, respectively serving as the board of directors The position of chairman and non-executive director.

According to the previously announced 2019 annual results, the total annual revenue of China Car Rental in 2019 was 7.691 billion yuan, an increase of 19.35% year-on-year; of which, rental income was 5.559 billion yuan, an increase of 4.1% year-on-year; used car sales revenue was 2.132 billion yuan, year-on-year A substantial increase of 93.2%. However, the net profit for the year was only 30.77 million yuan, a year-on-year decrease of 89.3%.

During the reporting period, the total size of the car rental fleet in China was 148,894, of which the average daily car rental fleet was 111,636, a year-on-year increase of 21.6%. The annual average daily rent for 2019 decreased by 3.7% year-on-year to RMB 210. Coupled with factors such as depreciation and financial costs, its 2019 net profit was 31 million yuan, and adjusted net profit was 290 million yuan.

In 2019, the number of used cars disposed of by China Rent-A-Car was 29.2 million units, while the number of used cars disposed by the company in the same period last year was 12.6 million units, an increase of 16.6 million vehicles. However, the number of used car disposals by China Rent-A-Car has increased significantly, but its cost of sales has not decreased significantly. The cost of sales has been higher than the sales revenue for two consecutive years.

S & P pointed out that the potential cash inflow of Shenzhou Car Rental’s proposed sale of used cars still provides some support for the company’s liquidity. However, the company’s used car sales depend on market demand. Adjusted the liquidity status of car rental in China from a little to weak.

In addition, the financial report of Shenzhou Car Rental shows that China UCAR is also a related party of China Car Rental. In 2019, the amount of car rental services between China Car Rental and China UCAR was 407 million yuan, and in 2018 it was 678 million yuan.

The previous Muddy Water report also involved the relationship between China UCAR and China Car Rental. In this regard, on April 9th, China Auto Rental announced that the company ’s main shareholder, China Automobile, a wholly-owned subsidiary of UCAR Technology Co., Ltd., holds 46.67 million shares of the company. > (Accounting for approximately 2.11% of the total issued share capital of the company as of the date of this announcement) On April 3, 2020, it was sold on the market in accordance with the terms of the relevant financing agreement at the request of certain Shenzhou UCAR lenders.

In fact, due to Lu Zhengyao ’s business strategy, the UCAR, which was born in the chaos of the online car-hailing chaos in 2014, shared the capital industry chain in the hands of Zhengyao from the beginning, and there has been continuous related transactions with car rental in China.

On the one hand, in recent years, the car rental industry has suffered from the impact of online car rental, and its growth has been weak. Revenues of Shenzhou Car Rental in 2015 ~ 2019 were 5 billion yuan, 6.45 billion yuan, 7.72 billion yuan, 6.443 billion yuan, and 7.69 billion yuan, respectively. The corresponding net profits are 1.4 billion yuan, 1.46 billion yuan, 880 million yuan, 290 million yuan, and 31 million yuan, respectively.

On the other hand, under the continuous strengthening of various regulatory measures, the online car-hailing industry is also not easy. China Unicar ’s revenue in 2017, 2018, and the first half of 2019 were 9.86 billion yuan, 5.949 billion yuan, 1.92 billion yuan, corresponding to net profit of ~ 260 million yuan, 270 million yuan, and ~ 652 million yuan.

Under such circumstances, the sale of car rental in China is likely to have been prepared before the Ruixing incident broke out. Earlier, there was news that the China Automobile Technology Center in Tianjin began to lay off employees and optimize, and employees in Tianjin and Xiamen have begun to replace new contracts, and the new employers rent cars for Baowo and Shenzhou.

According to previous reports in the interface news, it is mentioned that the car rental in China has been prepared for package sales. “On January 31 of this year, a few days before the first report of Ruixing Coffee was released by Hunshui, a key person from both Ruixing and Shenzhou Car Rental found the strategic investment department of Geely Group, saying that Shenzhou Car Rental was looking for a buyer.” < / p>


Despite the operating pressure and the impact of the Ruixing incident, car rental companies in China are still a piece of cake for companies intending to plan or increase their travel.

It is reported that the top three Chinese car rental companies are currently named Shenzhou Car Rental, Yihe Car Rental, and Wukong Car Rental. According to the official information of China, as of December 2017, it has more than 1,100 service outlets in more than 300 cities in China, with more than 10 million personal customers and tens of thousands of enterprise-level users.

As the first in the industry, the huge and dense service network and a large number of users owned by Shenzhou Car Rental will undoubtedly make any company interested in the travel field salivate. Although Ctrip and Geely have successively denied the intention to acquire Shenzhou, Shenzhou is clearly the one that they are missing or need to be strengthened.

Ctrip has a long history in the field of travel. All along, the industry keeps telling the news that Ctrip will increase the layout of the travel field. As early as 2013, Ctrip invested US $ 100 million in Yihe Car Rental, after which Ctrip became the second largest shareholder of Yihe.