2345 sudden loss of more than 800 million, online lending “small giant” 260000 shareholders panic!

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Original title: sudden loss of more than 800 million, 260000 shareholders of online loan “small giant” panic! You must have seen it’s browser and URL
Daily economic news comprehensive Guosheng Securities Research Report, investor daily, Lujiazui, financial association, every app, etc
2345, a controversial software company, is being hit hard by the tightening of Internet financial regulatory policies. In 2020, the company’s net profit will turn into loss for the first time in the past seven years.
On the evening of January 24, 2345 released the performance forecast. It is estimated that the net loss attributable to shareholders of Listed Companies in 2020 will be about 806 million yuan to 998 million yuan, a year-on-year decrease of 206.23% – 231.53%; the basic earnings per share will be 0.14 yuan to 0.17 yuan. Meanwhile, as the goodwill of 2345 Internet information business shows signs of impairment, the provision for impairment is proposed to be 1.196-1.348 billion yuan.
Photo source: 2345 announcement
According to covid-19, the main reason for the change in performance is that the Internet financial services business has been adjusted in 2019, due to the change of the Internet financial services market environment. The company’s revenue declined in the 2020 year, and the net profit attributable to shareholders of listed companies fell year by year. The company’s Internet promotion activities were also affected by the epidemic, resulting in a decline in the company’s operating revenue in 2020 and a year-on-year decline in the net profit attributable to shareholders of listed companies.
As of the close of January 22, 2345 shares closed at 2.17 yuan, down 84.6% from the high of 14.08 yuan in March 2015.
After the performance forecast came out, I don’t know how the 260000 shareholders meeting of 2345 would feel?
The history of making a fortune is controversial
According to a research report of Guosheng securities in 2018, 2345.com was founded in 2005. It entered the Internet industry with “2345 website navigation” and is committed to creating an Internet access platform. In 2014, it completed the merger and reorganization with Hailong software, and entered the MSCI Emerging Market Index A-share list in 2017. In 2017, the company ranked 21st among the top 100 Internet enterprises in China.
Photo source: Guosheng securities
According to the 2345 official website, in 2020, 2345 ranked 65th in China’s Internet comprehensive strength enterprises, and has won the title of China’s top 100 Internet enterprises for nine consecutive years.
However, such a top 100 Internet companies in China, its early development process has been accompanied by the controversy of “rogue” software.
The predecessor of 2345 is Shanghai RuiChuang Network Technology Co., Ltd. (hereinafter referred to as “RuiChuang shares”), which originally planned an independent IPO in 2012. However, the IPO process was terminated due to its involvement in the “radish homeland” piracy case. It was not until 2014 that it was finally listed through the merger and acquisition of Hailong software, a listed company.
2345 web site navigation, founded in 2005, is not a pioneer in the web site navigation industry. At that time, a number of navigation websites such as hao123 (which has been acquired by Baidu) had been established for many years and occupied the main share of Web site navigation.
However, as a latecomer, 2345 has developed very rapidly, and once became the navigation website second only to hao123 and 360 in China. However, in the rapid growth of 2345, its disgraceful promotion method has been criticized by the outside world.
In April 2011, the Ministry of Public Security announced that after three months of careful investigation, the economic investigation and network security departments of Shanghai public security organs cracked the “radish homeland” large pirated software case on March 14, 2011. According to the investigation, since 2008, in order to promote the company’s website, Han and others instructed Wu and others to make pirated Windows XP, Windows 7 and other software, forming four versions of “radish homeland” and more than 1500 kinds of pirated operating system software, bundling and integrating malicious code in some pirated software, and sending pirated software download links and employing personnel to the computer market all over the country By distributing pirated CDs and other means, the company’s website click through rate and browsing times will be improved, paid advertisements will be attracted, paid links will be loaded, and huge illegal profits will be made.
Han Meng, the president of RuiChuang shares, was referred to in the circular. And the above-mentioned cases eventually led to the termination of the review of the IPO of RuiChuang shares.
The problem is not just piracy. According to a 2014 report by the investor daily, a customer who bought installation services on a famous e-commerce website said that many 2345 software, including 2345 navigation website and browser, were displayed on the computer he bought back. And 2345 navigation website can’t be deleted, no matter what browser you download (such as 360, chrome, etc.), the home page Jump is 2345 navigation, which makes it very annoying.
The e-commerce website customer service said: “2345 browser automatic jump conventional means really can not be deleted, the only way is to reload the system.”
However, the “rogue” software problem of 2345 is not a problem for Hailong software. At that time, Li Jing, Secretary of Hailong software, said in an interview with the investor daily, “there is no problem with the promotion method of 2345, but the specific issues still need to be answered from 2345.”
Curve listing
In January 2014, Hailong software announced that it plans to acquire 100% equity of Shanghai 2345 Network Technology Co., Ltd. for 2.65 billion yuan. In June of the same year, the acquisition was completed.
In March 2015, Hailong software announced that the name of the company will be changed from “Shanghai Hailong Software Co., Ltd.” to “Shanghai 2345 network Holding Group Co., Ltd.” the abbreviation of the company’s securities will be changed from “Hailong software” to “2345”, and the securities code will remain unchanged.

Hailong software said that considering the great significance of user traffic for the company to enter the Internet finance field and expand mobile Internet business, as well as the brand advantages accumulated by 2345 in the Internet field for a long time, in order to be more conducive to the promotion of the company’s Internet Finance and mobile Internet products, and to maximize the interests of shareholders, the company decided to change its name from “Shanghai Hailong software” The securities abbreviation is changed from “Hailong software” to “2345”.
Strict financial control becomes a turning point
After the completion of the acquisition, 2345’s net profit has maintained an extremely rapid growth since 2014 until 2019.
From 2014 to 2018, the net profit of 2345 increased by 301.70%, 252.38%, 52.20%, 49.23% and 44.30% respectively.
The sharp rise in profits is closely related to 2345’s timely shift of business to the hot Internet finance at that time. According to a report of Lujiazui in 2017, 2015 is the 10th anniversary of the founding of 2345 company, which is also considered by the company’s management as the second decade of entrepreneurship. After analyzing the advantages and external opportunities of 2345 website, the company team decided to concentrate resources and carry out Internet financial services.
Such a change is not impulsive. Just at the time when 2345 was acquired by Hailong software, smart phones are rapidly becoming popular. Mobile Internet has gradually replaced traditional PC as the entrance for people to connect to the Internet, and the traffic of PC navigation website is no longer the same. 2345 is also faced with PC shipment decline, user habits change, risk software threat and other problems, and its development once fell into a low ebb.
It is also during this period that the concept of Internet finance has become increasingly hot, and a large number of entrepreneurial teams have emerged to engage in online loan business. In the cost structure of network loan business, a considerable part of it belongs to “customer acquisition cost”, that is, the cost of purchasing traffic and acquiring customers.
2345, which has many years of flow entry advantages, chooses to complete the transformation to financial business by cooperating with financial institutions: 2345 provides flow, provides risk control screening, and provides technical services for small loans; a number of licensed financial institutions provide the funds needed by users to complete the lending operation.
In addition to cooperating with traditional financial institutions, 2345 also directly participates in upstream financial services in the form of equity investment. In December 2016, 2345 network technology subsidiary participated in the establishment of Guangzhou 2345 Internet microfinance Co., Ltd. In April 2017, the company signed the “sponsor agreement” with Bank of Jiangsu Co., Ltd., Kaiji Commercial Bank Co., Ltd. and Hailan home Co., Ltd. to participate in the establishment of a consumer finance company. In April 2017, the company completed the acquisition of 30% equity of yangke xiaodai.
With the development of Internet Finance in full swing, 2345 has also made a lot of money. In an interview with Lujiazui, Chen Yubing, chairman of 2345, said that the gross profit rate of the company’s financial sector and Internet information service sector can reach about 90%.
In 2017, the company’s semi annual report showed that the Internet financial services revenue reached 550 million yuan, accounting for 51.9%, and the PC business revenue reached 400 million yuan, accounting for 37.7%.
However, the rapid growth of net profit will stop abruptly in 2019. In this year, 2345’s net profit decreased by 44.48% year on year.
In the annual report of 2019, 2345 attributed the sharp drop in profits to the company’s business adjustment during the reporting period. First, 2345 launched and established the future development strategy of “mobile Internet + artificial intelligence” in the reporting period, focused on building the core technology competitiveness in the era of mobile Internet, and made key investment in the three directions of middle platform, intelligent algorithm and big data center. The above strategic development needs a certain amount of investment and accumulation. Second, affected by the changes in the market environment of Internet financial services business, 2345 adjusted the financial technology business.
Obviously, the changes in the financial regulatory environment in the past two years have dealt a great blow to 2345. After 2019, 2345’s net profit has turned from positive to negative in the past year, with a sharp drop of more than 200%, and its profitability has shrunk sharply.
According to the 2020 semi annual report, the main businesses of 2345 are Internet information services and financial information services, accounting for 83.9% and 16.06% of the revenue respectively, which is in sharp contrast to three years ago.
(this article is for reference only, and does not constitute an investment proposal. Therefore, we should bear the operational risk on our own.)
Editor Xia Zhijian Du Hengfeng Du Bo
Proofread by Cheng Peng