A total of 5 Internet Chinese companies completed the IPO this quarter, with a total fundraising of 753 million US dollars.
Editor’s note: This article comes from the WeChat public account “>” cast the net “(ID: China-Venture) , author: Chen Ying.
In the first quarter of 2020, due to the impact of the economic environment and the epidemic situation, the activity of the Internet industry ’s investment and financing market continued to decline year-on-year and hit a record low. Under the new crown epidemic, intensive offline consumption was restricted, and fresh farmers and other livelihood e-commerce companies stood out and were favored by capital. In addition, the application of big data in various fields is becoming more and more popular, especially during the epidemic period, and the rising trend of obtaining financing is remarkable.
A total of five Chinese Internet companies completed IPOs this quarter, with a total fundraising of US $ 753 million. The number and scale of IPOs have increased over the same period in history. In this issue, 80% of IPO Chinese companies are big data related industries, all listed on the Science and Technology Board. Under the epidemic situation, the role played by big data is particularly prominent, and the development of big data enterprises has also ushered in a golden period.
First, Internet activity continues to decline, and big data has a significant upward trend
In the first quarter of 2020, due to the impact of the economic environment and the epidemic situation, the activity of the Internet industry investment and financing market continued to decline year-on-year, hitting a record low. Under the new crown epidemic, intensive offline consumption was restricted, and fresh farmers and other livelihood e-commerce companies stood out and were favored by capital. In addition, the application of big data in various fields is becoming more and more popular, especially during the epidemic period, and the rising trend of obtaining financing is remarkable.
1, Internet activity continues to decline, and the amount of financing has been cut off
Looking at historical data, from the first quarter of 2018 to the third quarter of 2018, the Internet industry showed a steady trend in the number of transactions, and then the number of transactions began to decline until it fell to the lowest point in the first quarter of 2020. In the first quarter, there were only 72 financings in the Chinese Internet industry, a year-on-year decrease of 64.71% and a month-on-month decrease of 49.30%.
In terms of financing scale, from the first quarter of 2018 to the third quarter of 2018, the overall trend is rising. In 2019, due to the impact of the capital winter, the development of the Internet industry has slowed down and financing has been active.The degree of financing declined in the first quarter of 2020, reaching US $ 1.113 billion, a decrease of 29.24% year-on-year and a decrease of 80.50% month-on-month. Affected by the epidemic, the amount and scale of financing have been reduced to the lowest point.
Figure 1-2018Q1-2020Q1 China Internet industry VC / PE financing situation
2. Big data has the largest financing scale and occupies half of the country
In terms of transaction size, big data took the lead with US $ 560 million in financing, accounting for 51%, accounting for half of the country.
Figure 2-2020Q1 China ’s Internet market segments accounted for the proportion of transaction scale
In terms of transaction volume, e-commerce received the most investment in the first quarter of 2020, with a total of 26, accounting for 36%, ranking first.
Figure 3-2020Q1 The proportion of transactions in the Chinese Internet market segment
3. E-commerce sits firmly in the first segment of the Internet segment
E-commerce ranked first:
Over the past years of financing data, e-commerce has always ranked first in the Internet industry in terms of financing.
During this season, under the influence of the New Crown epidemic, intensive consumption has been restricted, e-commerce is taking advantage of the layout of the sinking market, and livelihoods and other e-commerce companies have stood out and are favored by capital. Compared with other sub-sectors, the development of e-commerce is still in a leading position.
Big data has a significant upward trend:
Looking at past data, the amount of investment obtained by big data has increased year by year, accounting for 33% in the first quarter of 2020, an increase of 11% over the same period last year. The development trend of big data is remarkable.
This season, big data performed well during the epidemic, covering many “anti-epidemic” scenarios such as the investigation of high-risk populations, the review and management of corporate resumption of work, and community epidemic prevention and control.
Figure 4-2018Q1-2020Q1 Proportion of transactions in the Chinese Internet market segment
4. Key financing cases in the Internet field
TOP1: The Ten Groups completed a US $ 88.3 million financing
Investors in this round include Joy Capital, Zhuce Capital, Qiming Venture Capital, Alibaba, Zhen Fund and Huachuang Capital. The funds raised will be used for investment in supply chain and technology to deepen the construction of the industrial chain.
TOP2: “Peas Princess” completed a new financing of 5.3 billion yen
Investors in this round are SBI Holdings Co., Ltd., Japan’s large-scale drug store chain SugiHoldings Co., Ltd., and Xinjin Holdings, a cross-border investment platform of CITIC Group (referred to as Xinjin Holdings). This round of financing will be used for operations, markets, teams and other investment.
Table 1-2020Q1 Key Cases for Internet Enterprises to Obtain Financing TOP10
Second, the number of mergers and acquisitions continued to decline, and the scale of the merger was slightly improved
Due to the cold winter and epidemic situation, the Internet industry announced that the number and scale of merger and acquisition transactions in 2020Q1 both declined, and the scale of completed mergers and acquisitions increased by 20% over the same period, achieving a slight rebound.
1, the number of mergers and acquisitions continued to decline, and the scale of completion has rebounded slightly
In the first quarter of 2020, Internet mergers and acquisitions announced 37 transactions, down 9.76% year-on-year and 21.28% quarter-on-quarter. Announced that the transaction size reached 1.165 billion US dollars, a year-on-year decrease of 43.39% and a chain increase of 12.56%. The number and scale of transactions announced this quarter have declined compared to the same period.
Figure 5-2018Q1-2020Q1 China Internet Industry M & A Market Announces Transaction Trends Graph
In the first quarter, 17 Internet M & A transactions were completed, a year-on-year decrease of 19.05%, and a decrease of 32% month-on-month. Announced that the transaction volume reached 1.369 billion US dollars, an increase of 21.37% year-on-year, and an increase of 103.72% month-on-month. The scale of completed transactions has rebounded from the same period.
Figure 6-2018Q1-2020Q1 China Internet industry M & A market completion transaction trend chart
2. Information services have sprung up, and the scale of mergers and acquisitions tops the list
In terms of the number of completed M & A transactions, the Internet ranked first in the first quarter of 2020, with a total of 6 cases, accounting for 33%.
Figure 7-2020Q1 Proportion of transactions in the Chinese Internet market segment
In terms of the scale of transactions completed through M & A, information services have sprung up in the first quarter of 2020, with a scale of US $ 993 million, accounting for 72%, ranking first in the list.
This quarter is mainly affected by large-scale cases such as the acquisition of 21% equity of Tongfang shares by CNNC Capital, and the scale of information service mergers and acquisitions is relatively large.
Figure 8-2020Q1 Proportion of transaction scale in China ’s Internet market segment
3. Key M & A cases in the Internet field
TOP1 case: On January 7, 2020, CNNC Capital acquired RMB 21.38% of Tongfang ’s shares at RMB 6.398 billion.
After the completion of the share transfer, Tsinghua Holdings still directly holds 4.75% of the company ’s shares, and indirectly holds 2.35% of the shares through Ziguang Group, holding a total of 7.10% of the shares of Tongfang; CNNC Capital holds 21% of the company ’s shares . China Nuclear Capital became the controlling shareholder of the company, and the actual controller of the company was changed from the Ministry of Education to the State-owned Assets Supervision and Administration Commission of the State Council.
TOP2 case: On March 6, 2020, Jiangsu Hengtong Optoelectronics Co., Ltd. (600487.SH) acquired a 51% stake in Huawei Ocean.
Huawei Ocean was established on January 25, 2008 and is the fourth largest submarine cable engineering company in the world. It is currently engaged in the construction of global submarine cable communication networks and is a provider of submarine cable communication network construction solutions.
Table 2-2020Q1 Internet Chinese companies complete M & A TOP5
Figure 9-2018Q1-2020Q1 China Internet industry IPO fundraising situation
2. Big data becomes the main force for listing
Youke has 1.944 billion science and technology board listed:
On January 20, 2020, cloud computing service provider Youkede (6881