Reborn multinational giant

"Split Paypass?" When Fang Zhe proposed to split Paypass, all the executives in the room except for Li Yifei, who has always been in charge of Paypass, were thoughtful.

"President Fang, I don’t understand why we need to split Alipay. Although Alipay is a subsidiary, the business of Alipay is very much related to our parent company. Now that the split of Alipay will affect Alipay. And the development of the parent company, and I am afraid it is not conducive to our future capital valuation!"

The question is raised by Huizhong’s Vice President Huang Siyi in charge of Huizhong’s foreign investment business over the past two years. He has been responsible for the specific work of Huizhong’s foreign investment since assisting Zheng Siwen in establishing the investment department of Huizhong. As Huizhong invests more and more abroad, his status in the company is getting higher and higher. Until two months ago, he was promoted to the position of vice president of Huizhong parent company and added Huizhong's core management.

He has been immersed in the investment industry for many years, so when Fang Zhe said that he planned to "split out PayTong", he was the first to express his doubts, because from the perspective of investment and financing, splitting PayTong out was very unfavorable to Huizhong. The overall valuation of the parent company is also not conducive to the future development and internationalization of Alipay.

However, Fang Zhe did not directly answer his doubts, but looked at the thoughtful Li Yifei and asked:

"President Li, you have been in charge of PayTong, what do you think?"

Li Yifei was named by Fang Zhe. He looked up for a circle, and finally fixed his gaze on Fang Zhe, saying, "Mr Fang, are you worried about the regulatory authorities?"

Fang Zhe's face was calm, and he nodded lightly. It seemed that Li Yifei had already seen this step.

Li Yifei did not wait for Fang Zhe to speak, and directly explained to other executives:

“Since the end of last year, the above and the central bank’s supervision of third-party payment companies and related financial companies has become stricter. A few days ago, the central bank issued new regulations requiring non-bank payment companies to obtain relevant payment licenses to operate in China. Our Alipay is a third-party payment company, and we have also received notice from the Central Bank."

"But what does this have to do with our spin-off of Alipay? Is it... foreign capital?" Huang Siyi asked half of the question and guessed the answers to some questions.

Li Yifei replied: "Yes, the regulations point out that any payment company that accepts foreign investment must comply with the relevant regulations in terms of business scope, foreign investment qualifications, and foreign investment proportions in order to obtain a license."

Huang Siyi nodded. It seems that it is the same as he guessed. It is related to foreign investment. If Huizhong accepts overseas capital investment in the future, the restriction of Paypass is indeed a problem that needs to be considered. However, Huang Siyi is still a little puzzled. Asked:

"Then we have to follow the regulations. Why bother to split the payment system, so that in the short term, it will have a lot of adverse effects on the development of our parent company and the payment system. Even if we wait for another year or two to spin off. It’s better than now!"

With an inexplicable smile on Li Yifei's face, he said: "Although the regulations state that there are foreign investment access conditions, the specific conditions are not clearly stated!"

When Huang Siyi heard him say this, his face was confused, but without waiting for him to think about it, Fang Zhe opened his mouth:

"Don't think too much. We are not only Alipay who do third-party payment in China, but also two larger Tenpay and Alipay, especially Alipay, which has been developed on Taobao for more than 6 years. Now people are this. The leader of the industry!"

As the head of Huizhong Investment Department, Huang Siyi naturally understood what Fang Zhe meant when he said this. Obviously, the above curse was mainly for the leader of Alipay, you know, Alipay, where Alipay is located The largest shareholders are all foreign investors!

Fang Zhe said: "Seeing this regulation, I think Mr. Ma should have more headaches than us. The above did not specify the specific access conditions, which shows that there are still many variables in this matter.

The payment and financial industries are different from others. Both at home and abroad, they are very strict about this area. When we will raise Huizhong's financing or even go overseas to list in the future, the proportion of foreign investment cannot be completely controlled by us. Once we tighten the spell Too tight, it is likely to affect the development of our entire company.

Moreover, the payment and financial industries are related to many industries, and each industry may have different foreign investment access conditions. Rather than being so troublesome in the future, it is better to spin off the payment system before we introduce foreign capital."

Several executives nodded in agreement, and Li Yifei added:

"Now that the relationship between Alipay’s business and the parent company is getting lower and lower, the e-commerce business has become the main driving force for the current development of Alipay. However, I guess Mr. Fang, you should give us Alipay and prepare a big gift. !"

Fang Zhe looked at him and smiled, thinking that this guy is getting better and better now. Indeed, WeChat and Alipay are still two independent products. When WeChat develops and grows in the future, many WeChat users will be Fang Zhe. A great gift for Paypay!

Thinking of the number of users of WeChat Pay far surpassing Alipay in the past, Fang Zhe is even more looking forward to the combination of WeChat and Alipay, which has huge users all over the world, what potential will it have in the future?

On the morning of June 9, Fang Zhe held a high-level meeting at the headquarters of Yanjing Huizhong.

At the meeting, Fang Zhe announced to all senior executives that Huizhong had decided to split its wholly-owned subsidiary Paypass into an independent company. After the split, some of the existing shareholders and some senior executives of Huizhong will become the company’s The shareholder, and Fang Zhe, is still the largest shareholder of Alipay.

Fang Zhe, through another company that Fang Zhe owns 100% of the shares, will hold 85% of PayTong's shares, while Li Yifei, Zheng Siwen and other shareholders will hold 7%, 3% and 5% of the shares respectively.

After the spin-off of Alipay, Li Yifei still serves as the president and CEO, and Fang Zhe serves as the chairman. Considering the future development of Alipay and its complicated business relationship with Huizhong, Fang Zhe and Zheng Siwen are shareholders of Huizhong, It also raised funds through shareholder dividends and other methods, and injected nearly 1 billion yuan into Alipay!

Although the future Alipay will develop independently in name, the business relationship between it and Huizhong may continue to be complicated. Fortunately, whether it is Alipay or Huizhong, their big boss is Fangzhe, even if it will be listed on the market in the future. There are many problems to be dealt with for various reasons, but for Fang Zhe, it is not a big deal.

President Ma of Ali in the previous life, the situation facing Alipay and Alibaba is much more complicated than that of him. Don't people still play very well? The master is the teacher, Fang Zhe only needs to learn from these great people!