Winning the new financial era

Chapter 368 General
Shen Beipeng told Zhang Yida that Heishan Capital would cash out part of it when Yimin Wangjin issued additional shares this time.

Zhang Yida understood this, after all, there is no banquet that never ends.

Venture capital accompanies entrepreneurs all the way to start a business, just for this last moment.

If it weren't for the United States' heavy restrictions on major shareholders, he would also like to cash out a lot of money.

"Yida, Yimindai is going to IPO soon, why do you want to cash out?"

Shen Beipeng thought for a long time, but he still asked the question that had been hidden in his heart for a long time.

"Two considerations, one is that major shareholders are not easy to cash out after the US stock market is listed, and the other is that various domestic mutual fund chaos makes me a little uneasy.

When starting a business in China, the biggest fear is policy fluctuations. "

Shen Beipeng nodded, this was similar to the reason he imagined.

But he always felt that things were not that simple, but Zhang Yida didn't want to say more, and he was too lazy to ask questions without interest.

In the early hours of December 12, Beijing time, Yimin Wangjin (NASDAQ: YM) submitted a Form F-12 document to the US Securities and Exchange Commission (SEC) on Monday, stating that it plans to issue 1 million additional American depositary shares (ADS), representing 1550 million shares of common stock.

According to the document, Yimin Wangjin will provide 930 million American depositary shares in this transaction, and the selling shareholders will provide 620 million American depositary shares. Each American depositary share represents 1 Class A ordinary shares. .

Yimin Wangjin will not receive any income from the sale of American depositary shares by selling shareholders.

Yimin Wangjin expects that after deducting commissions and issuance expenses, if the underwriters do not implement the over-allotment option, the company will obtain a net cash of US$4.352 million through additional issuance;

If the over-allotment option is executed, net cash of US$5.004 million can be obtained.

Yimin Wangjin intends to use the net cash from this additional offering for general corporate purposes, which may include business expansion in Southeast Asia, capital expenditures, fintech research and development, sales and marketing, business development, working capital, and other general and administrative matters.

Investment banks Goldman Sachs, Morgan Stanley, CICC, and Bank of America Merrill Lynch acted as joint underwriters for the additional issuance of Yimin Wangjin.

The document also shows that Blackshirt Capital is the selling shareholder of the additional issuance of Yimin.com.

Before the additional issuance, Blackshirt Capital held 8000 million Class A ordinary shares of Yimin Wangjin, accounting for 6.82% of the total share capital and 1.3% of voting rights;

After the additional issuance, the company's shareholding will be reduced to 4900 million shares, accounting for 3.92% of the total share capital and 0.74% of voting rights.

……

Yiyindai CEO Tang Lin was surprised when he saw this financial news.

Yimin Wangjin wants to raise another 5 million US dollars?
Counting the more than 8 million US dollars raised in the IPO and the more than 4 million US dollars raised before the IPO, the total financing in the past two years has reached almost 20 billion US dollars.

What are you doing with so much money?Isn't Yimin Wangjin profitable?Looking at the financial report, the net profit in the third quarter exceeded 1 million US dollars.

Tang Lin felt a lot of pressure. If so much money was invested in the Chinese market, Yiyindai would not be able to catch up with the other party.

He felt that one of the most wrong decisions he made was to let Yiyindai go public late, and now the limelight and market attention have been taken away by Yimin Wangjin.

Yiyindai was established a year earlier than Yimin Wangjin, but it was overtaken by others.

However, the mobile Internet was underdeveloped two years ago, and although Yiyindai was established a year earlier, it did not occupy much of a first-mover advantage.

The annual turnover in 13 was only 2 million yuan. After receiving the blessing of Ruixiang's traffic, Yimin Wangjin quickly surpassed the scale of Yiyindai.

Speaking of which, Ruixiang was "raised" by Yiyindai, which made him even more uncomfortable.

Yiyindai estimates that the scale of loan matching in 16 will be 200 billion yuan, and the net profit will be about 11 billion yuan.

Compared with Yimin Wangjin, this volume is only more than twice the difference, but the market value is five times worse.

The biggest problem is the bad debt rate and customer acquisition cost.

The bad debt rate of Yiyindai’s four types of borrowers ranges from 5.1% to 8.2%, and they were defrauded of more than 8000 million yuan in loans last quarter.

Yiyindai's risk control is as leaky as a sieve, so the stock price has not been able to rise.

The cost of customer acquisition is also frighteningly high. The marketing expenses spent on customer acquisition by borrowers and lenders in one year exceed 15 billion yuan, and it is still rising.

He also wants to learn from Yimin Wangjin, focusing on products with an annualized interest rate of less than 24% to attract high-quality borrowers.

However, the cost of customer acquisition, capital cost, and risk control technology determine that this road will not work.

The capital cost is more than a dozen points, plus the bad debt rate of 20 points, this is almost [-] points.

Including sales expenses, employee salaries, and the annual interest rate of the loan does not reach [-] to [-]%, it is absolutely impossible to make a profit.

If you can introduce bank funds like Yimin Wangjin and reduce the yield of P2P products to below 10%, you can also try to make loan products with an annualized interest rate of less than 24%.

He has carefully studied the various operating data and financial reports of Yimin Wangjin, and has controlled the customer acquisition cost and bad debt rate very well.

Despite this, the net profit margin of Yimin Wangjin is still not as high as that of Yiyindai. The former is only a little over 20%, while Yimindai is above 35%.

Sometimes he laughs at Zhang Yida for being too idealistic.

As long as Yimin Wangjin adjusts the product interest rate to 36%, even if the overdue rate doubles, the profit will be doubled.

Tang Lin also heard that Yimin bank has started to make achievements in Southeast Asia, which made him also want to go to Southeast Asia for expansion.

Last year, he still felt that the timing was a bit immature.Looking at it now, if I don't go there, I don't even have to drink the soup.

After making up his mind, Tang Lin decided to rely on the old man to sell the old man again one day, and go to Zhang Yida to chat and get some useful information.

……

On the same day, the press conference of Zaidaibei was held as scheduled. Dozens of reporters surrounded the headquarters of Zaidaibei and rushed to report.

At the meeting, Zaidaibei announced that it will stop collecting collection fees from overdue debtors, and the platform will only charge 7% of the repayable principal and interest to debtors who are overdue for more than 5 days as a transaction service fee, and the rate will no longer increase with the number of overdue days.

What was the original late administration fee?

From the next day after the overdue period, the basic overdue management fee will be paid to the lender according to the standard of "total outstanding principal and interest as of the current day × 0.1%/day";
On the 16th day of overdue, an additional special overdue management fee shall be paid according to the algorithm of "the sum of outstanding principal, interest, penalty interest and basic overdue management fee × 20%";
On the 76th day overdue, this ratio rises to 30%.

Some people have calculated that even the most basic overdue management fee daily interest rate of 36.5/[-] converted into annual interest rate has reached [-]%.

According to the provisions of the Supreme Law on private lending, an annual interest rate lower than 24% belongs to the judicial protection zone;
If the annual interest rate is between 24% and 36%, it belongs to the natural debt zone;
If it exceeds 36%, it is an invalid area and is not protected by law.

Many borrowers clamored directly on the Internet because the overdue management fee for the loan was too high, so they couldn't pay back the money.

In addition, Diandaibei also announced: banning users under the age of 22; divesting the collection business to create a pure C2C business model.

And become one of the most compliant P2P platforms in the P2P industry.

After Hu Gang and Wang Xiaojie finished their work, bad news came from Hantai Fund.

"Touronghui has removed all stock fund products of Hantai Fund!"

"What does this mean?"

Wang Xiaojie sneered, glanced at his partner and said, "You still don't understand? He's just venting his dissatisfaction!"

"What is he dissatisfied with? Is it because of the fixed increase last year? Isn't that how it is done? It is legal!"

The clay figurine was also very angry, and Hu Gang was also a little angry.The CFO of the fund company in the front foot came to point fingers, and the product cooperation was cut off in the back foot.

Is Handing Group shameless?

As a large group with a total market capitalization of more than 150 billion U.S. dollars, its size is no worse than Ruixiang, which has an inflated valuation, right?

"This little fellow really can't tolerate a grain of sand in his eyes!"

Huang Xiaojie sneered, and said again: "Tell me, how to deal with it?"

"Since he doesn't show mercy, then we don't have to show mercy to him."

Hu Gang looked at his partner, "How about we bought back the shares?"

"Will he be willing?" Wang Xiaojie didn't believe that Zhang Yida would quit so easily.

Hu Gang said again: "It's simple, it doesn't matter if you don't withdraw the shares, we will suspend the cooperation with Lingqianbao."

"Damn it, you're crazy!"

Huang Xiaojie stared wide-eyed at the boss, "Do you know how big Lingqianbao is now? How important is it to Hantai Fund?

Among the 113 domestic public offerings, our Hantai Fund has been established for less than three years, and we can rank 14th in terms of management scale.

Excluding the 2000 billion Lingqianbao Monetary Fund, the total size of our other funds is less than 200 billion, and I am afraid that it will be ranked in the seventy or eighty.

In the first three quarters of this year, the revenue was 10.79 billion, and Lingqianbao contributed 9.45 million, accounting for 87.6% of the company's total revenue;

The net profit in the first three quarters was 2.8 million yuan, and Lingqianbao contributed 2.62 million yuan, accounting for 93.8% of the company's net profit. "

"Important to us, isn't it important to Ruixiang?"

Hu Gang said with a smile: "Without Lingqianbao, the activity of Touronghui users will drop by at least half.

For Ruixiang, making money through Lingqianbao is secondary, and the most important thing is to use it to activate users.

Think about it, what would happen if Alipay lost the change treasure? "

“It’s true that monetary funds earn hard money.

There are no subscription and redemption fees, and the annual rates of management fees, custody fees, and sales service fees are 0.3%, 0.08%, and 0.25% respectively, and the total is only 0.63%.

Even if 2000 billion is released for a year, it will only generate a revenue of more than a billion. "

Huang Xiaojie added: "However, if Yu'e Bao can achieve a scale of nearly one trillion yuan, the profit is still not small. A net profit of 20 billion a year is definitely not a problem."

"Are you really going to force him to suspend the cooperation with Lingqianbao?" Huang Xiaojie asked again.

"It's just angry words, but that kid is too angry, it's good to scare him.

If we don't do this, we simply don't take us as a major shareholder seriously. "

Thinking of the net profit of hundreds of millions a year, Hu Gang was really reluctant to suspend the cooperation with Lingqianbao.

"That's right, let's try him out as well."

Huang Xiaojie complained, "Everyone divides the sphere of influence and makes money together happily, isn't it good? He insists on making money!"

(End of this chapter)