Chen Yongliang, Chairman of Ma upstream: Realizing the Industrial Dream with the Opportunity of the New Third Board Innovation

Chairman of the Board of Directors and CEO Chen Yongliang delivered a keynote speech at the scene

On July 16, 2016, the “Investment Logic Analysis of Innovation Layer – Taking the Shared Economy as an Example” hosted by Yi Sanban was held in Beijing. This forum brought together experts and scholars in the sharing economy, senior investment banks, and well-known PE people to conduct in-depth discussions on topics such as “How to choose investment targets in innovative companies”.

At the same time, as the only new three-board enterprise invited by this forum, Ma upstream (833158) made some useful explorations in the field of sharing economy. As a typical case and representative of the vertical field of the innovation layer, how does Ma’s upstream reach out and lead the trend?

We may be able to experience one or two from the keynote speech of Mr. Chen Yongliang, Chairman and CEO of Ma.

Chen Yongliang believes that the sharing economy is now more. With the development of China's economy and the improvement of everyone's income, tourism has gone from the era of taking pictures to the current era of leisure and holiday experience. So in the era of experience economy, a definition of tourism is to be tired of being familiar with you. I want to go through other people’s lives in other places. In fact, I have seen the sharing of the economy from this definition, because you are going to Going to other places to live the lives of others, the locals come to share their lives with you, you can understand this life. Therefore, the concept of sharing the economy is very relevant to tourism.

“Ma’s upstream hopes to pass the capital market, that is, our new three boards, especially the innovation layer, to further enhance our advantages in capital business and talents, and to build a leading integrated service operator for tourism destinations,” said Chen Yongliang. You hope to use the company's unique positioning and the unique opportunities of the new three-board innovation layer to realize the industry dream and the concept of capital market.

The following is a speech record:

Chen Yongliang: Our professor Gao gave us a macro economy. Our topic is also related to the macro economy. It is the sharing economy. Probably speaking, the sharing economy's subversion of the tourism industry and our exploration in this piece, as well as some ideas and feelings of the upstream of the horse entering the innovation layer, and finally the unique investment value of the upstream.

The subversion of the sharing economy to the tourism industry and the exploration of the upper reaches of Ma

Then, from the perspective of the world economy, the sharing economy is indeed a particularly big trend, because in the past few hundred years of manufacturing since the Industrial Revolution, there have been countless houses, cars and electronic products we use, but if we still If we continue to build billions of houses and billions of cars as before, then our planet can’t carry it. So in fact, this is also a requirement of the green economy.

The sharing economy has already explained a lot. I think there is a saying that it is better to judge that the marginal cost is zero. In this case, do one thing and share the economy. For example, Airbnb or Tujia or Uber, they are revitalizing idle resources. You may have a house there and no one will rent it. But if you take it out to give a bad or tourist to live at this time, then the economic gain you get, that is, the marginal cost is almost zero, so this case is called the sharing economy.

The sharing economy has a saying in the industry that the world economy is about to enter the era of shared economy from capitalism. That is, everything that everyone is doing in the future is a shared economy. It is said that more than 30% of the population in China is related to the sharing economy. Of course this It’s not particularly clear how the numbers come out. At least a lot of drip cars and Uber drivers are already involved in the sharing economy.

Sharing economy and tourism industry enter the era of experience economy

For tourism, the sharing economy is already prevalent in the world. In terms of single factors, for example, Airbnb mentioned just now is a “living” in tourism. Then Uber and Didi are the “rows”, of course, live and travel. It is part of the tour, but it is not really travel and travel.

Because with the development of China's economy and the improvement of everyone's income, tourism has now experienced the economy from the time of taking pictures and sightseeing to the present, which is leisure, vacation and experience. So in the era of experience economy, a definition of tourism is to say that you are tired of being familiar with the place, and want to go through the life of others. In fact, it has been seen from this definition to share the economy, because you are going to other Places have been to other people's lives, and the lives of others are shared with local people, you can understand this life. Therefore, the sharing economy is this concept, which is very suitable for tourism.

Then, to be more specific, for China's tourism, the first thing is that there is a problem of production capacity. Because China has a large population, Mr. Lu also mentioned that there are many Chinese people. Last year, it was about three to four trips per capita. By 2020, it may be More, there is a kind of statistics that is 6.8 billion person-times in domestic tourism and 500 million person-times in overseas tourism. Then there are 6.8 billion people in China, and many of them are concentrated in the Golden Week. At the same time, they will flock to a tourist destination. In fact, many incidents will occur. For example, in Zhangjiajie last year, many people went to Zhangjiajie in the peak season. There is no place. Living in the corridor of the hotel, it is hard to find a room. Then I was in Luoyang in April 2014, and the peony flower was the biggest peak season. Then I might have to queue for two or three hours in order to have lunch, and there was no place to live in the evening.

So this is some of the huge problems that the Chinese people have seen in the peak season. You have no place to live, no food to eat, this experience is completely impossible to talk about, very sad. But at the same time, whether it is Zhangjiajie or Luoyang, in fact, Luoyang 6.8 million residents, 2.5 people have a house, a lot of houses, but its professional travel agencies and tour guides, and professional three- and five-star hotels and hotel capacity to receive tourists Not enough, this thing is also called Chaoshan Economics mentioned by Professor Zhou Qiren of Peking University, that is, it has a peak. In order to cater to this peak, you build a thousand hotels overnight, and it is neither realistic to establish hundreds of restaurants. Impossible, because what to do during the off-season. Therefore, in order to solve the problem of tourism production capacity, it is also necessary to share the economy. The ordinary people will share these idle, redundant and marginal cost opportunities with our tourists.

The other is also related to the new form of our entire tourism economy. The original tour is a group of people and guides. There is a saying that I think that the Chinese middle class consumption has been upgraded. We have all worn blue from the time. Green clothes have arrived at Metersbonwe and then to international brands, with so much progress. However, our tourism products, like the reform and opening up in the early 1980s, went on a trip to Luoyang, which is the Longmen Grottoes, the White Horse Temple, and a water mat, and then went to Shaolin Temple in the afternoon. But when I went to Luoyang in 2014, if you are traveling with a group or this product. That is to say, more than 30 years have passed, and the tourism products are still the three axes.

Therefore, this is no longer possible, because nowadays, after 80s, 90s, and 00s are the demands of the deep experience of diversified and personalized tourism, then this is actually called the so-called scale in the manufacturing industry. Personalized customization, each person must have different clothes, that is, scale, not a few people but everyone must be customized, if the mainstream in the tourism becomes 80, 90, and 00 personalized needs That is, everyone is a personalized travel demand, it is also mass production and personalization.

Everyone solves the problem of tourism productivity for everyone

Then you think, if you are as it is, for example, Luoyang tourism is very developed, it has one or two hundred exchange agencies, there are thousands of tour guides, but you flock to 1 million people, everyone must be personalized, this is Unable to solve. Therefore, it is necessary to develop the local people. The local people and everyone are everyone. Only everyone can solve this problem of productivity and large-scale individualized needs. So this is the sharing economy. I think It is the only solution in the context of the rise of mass tourism in China's experience-based economy and with individualized needs.

This is actually a list of the sharing economy of all walks of life, Uber, which has just been mentioned. It also talks about some concepts, such as now emphasizing the right to use and diluting ownership, which is a feature of the sharing economy. In fact, I have some understanding in this place. Last year I went to the United States to live in the American home with Airbnb. It was late in the day and it was almost noon. Anyway, we thought that Americans were not at home at noon, and he went to work. Then, cooking in his kitchen, drinking his red wine or something, is to make Ding Ding very busy. As soon as the door opened and the owner returned, we were both surprised by each other, but he immediately relieved, and everyone was very happy to talk together.

In fact, I think that sharing the economy means letting us return to the warm and intimate era of our original humanity from the indifference of industrialization and commodity separation. In fact, your table, your kitchen, your red wine are all on this planet. Therefore, the sharing economy can also allow us to sublimate from the younger to the big one, without me, so this is to emphasize the right to use.

And it has changed the entire service organization. For example, in the past, it was a travel agency to provide services. Now that there is the Internet, with the sharing economy, it deconstructs the organization. From these local people, tour guides, ordinary people, he You can provide services through the Internet platform, and then the platform is to have some services for security, experience, and service assurance.

In fact, I have already said something about what we are doing in the upper reaches of the horse. It was just some of the characteristics of the entire sharing economy. We will do a deeper sharing from our exploration and practice.

Ma upstream: How to build a one-stop service system with shared economic thinking

Here is a brief introduction to the company. Our upstream in the New Third Board was listed last year. This year we entered the innovation layer. Our two major shareholders, one is Hunan Dianguang Media. It may be that Hunan Satellite TV and Mango TV may be familiar to everyone. In fact, what we do is still a tourist. The phrase that is fashionable now is called supply-side reform, because the demand is there, as long as there is money and leisure, everyone wants to play, every normal and healthy person wants to travel. However, our production capacity, our quality control, many of our travel services and tourism product innovations are still far from enough. And we have come up with a way to use the sharing economy to make continuous travel destinations, innovations in tourism products, and experience in tourism services through the Internet.

This is one of our models, that is, we are building a one-stop service system for tourists of tourist destinations. Online is an online platform for our APP or website. We will call these online. Maker, is to mobilize the local people to be a tour guide, or he has food, or he has their own free house to provide, so we are collectively referred to as Maker, then we have to go to the real name certification, to Conducting quality control will also help them to do training. Even if they do well, we can also support them in crowdfunding and finance.

In fact, the technology platform of the sharing economy is similar to that of our leaders like Uber and Didi. On the surface, it seems to be a match between makers and tourists. In fact, there are still many technical support behind, then we have to put tourists Information on various needs and information on maker products and services are analyzed, imaged, and accurately matched, supported by the big data platform behind.

In fact, as I mentioned earlier, there is a new way to provide a new travel service experience. This is in addition to the technical support, but also organizational innovation, that is, we are through a destination. After picking up a travel agency to concentrate on purchasing our tickets and hotels, we must also have a plan to design the itinerary. Finally, a guide will take you to eat, live, and play.

But this kind of organizational structure has been for many years, and it is more than 30 years. We believe that in the era of the new Internet+, in the case of sharing the economy, it will still exist, but many people will deconstruct, it is its tour guide, maybe His calculations don't have to go to work in a travel agency. He can use the platform to design a good tourist route as a maker to submit. He comes to take our tourists to play, not necessarily through the travel agency, he is obtained through the platform. Customers and benefits.

The other is to launch a lot of former non-professionals (local people) to provide resources or provide services, or to provide product creativity and design, so this is to deconstruct the original service organization, and because this requires a lot of people in the middle If food or such as wild hot springs are connected in series, then we hope to form a mechanism for continuous innovation in the local area.

For example, Luoyang, which I did, has not changed its tourism products for 30 years. Maybe we will go to Luoyang to be a joint venture company and create 3 to 10 creative routes for it, but next year, everyone will feel like playing. We hope to have a continuous mechanism. There are many people in the local area, and there are many plans. They constantly form new products and form a continuous innovation mechanism.

In other words, the organization said that the innovation of this supply chain is also a form of self-organization through the Internet. In fact, I have basically said that just online, we are promoting, cooperating, and managing the service products of the makers. Do training and planning.

After nearly a year of brewing, this platform has been officially launched on July 8. The first pilot is in Zhangjiajie. If you are interested in playing, you can go to Zhangjiajie through our platform to find the most authentic food. For example, to the Hmong and Tujia shacks to live, there are many fresh ways to play.

What opportunities are brought to the upstream of the entry into the innovation layer?

The opportunity brought by entering the innovation layer is that a company like ours has entered the innovation layer. We mainly have several considerations:

Consider 1: I hope that as Lu said, the future innovation layer will have better financing ability for the target Nasdaq. Before we listed the new three board, we had a strategic investment of 123 million yuan, and then there were 100 million sets after the listing. Increase, then hope to enter the innovation layer, we have more financing.

Consider 2: After entering the New Third Board, we also made a merger, and acquired an offline travel agency to carry out the online and offline integration, which cost us 90 million. In the future, we will have a series of strategic investment mergers and acquisitions in the entire industry chain. It is also a new opportunity that we hope to bring based on the innovation layer. We want to attract more partners and first-class talents, and hope to have a higher reputation.

Consider 3: I hope that, like Mr. Lu said, our new three board, especially the innovation layer, has become China's third exchange, and even it is even more than the company that marks the GEM.

Basically, we hope that we have a unique position to use the shared economy to create a comprehensive service operator for the destination, and then hope to further enhance our capital business through the capital market, that is, our new three boards, especially the innovation layer. The talent advantage, I hope to be able to build a leading integrated service operator in China's tourist destinations.

I may not understand it right. I am not professional in the capital market. My understanding is that China's capital market has its own unique places. For example, LeTV, when LeTV was listed in 2010, its market capitalization is 730 million. Everyone did not expect that it was a bit low, but now it is still falling or rising, probably more than 100 billion.

So probably in the 6 years after the listing, there is a 150-fold increase, which is definitely related to his own efforts, but also related to China's capital market. Therefore, we have a lot of giants in the tourism industry. Everyone has heard about Ctrip, where to go, Tuniu, Yilong, and of course these listed companies are all in the United States. We feel that our unique position is for tourism purposes. Land, sharing resources through the sharing of the economy, to create a new tourism service supply chain, and comprehensively enhance the tourism service experience. We are able to use the new three boards and the unique opportunities of the innovation layer. We can still have this huge market. Our chance, even one day, just as LeTV has surpassed the Nasdaq-listed Youku potatoes that were very bullish at the time, we may also surpass the giants already listed in the US. The tourism industry is huge and growing rapidly. The 16 trillion US dollars is a huge market. We are not just doing tourism in China. Now we are making a journey and making a global tourism market in the future.

The growth of online travel is also very fast, reaching more than 540 billion this year, which has increased by 39.9% compared with last year, but the penetration rate of the entire Chinese tourism industry on the industry is 11.5%, according to the forecast of 5 to 10 in the future. The annual meeting will reach 30% or even 45%, so the space is still very large.

Therefore, we hope that we have just mentioned, using our unique positioning and the unique opportunities of the New Third Board and the Innovation Layer to realize our industry dreams and ideas in the capital market. thank you all.