Winning the new financial era

Chapter 503
"Just because of the Leech Golden Clothes, we were hanged up and beaten by us in Southeast Asia!"

Tong Shijie from GGV Capital spoke very aggressively. With a height of more than 1.8 meters 200 and a weight of nearly [-] catties, he suppressed Zhonghe's momentum for a while.

He is an early investor of rice mobile phone, and he has a high status in the domestic venture capital circle, so his words still have some weight.

“To be fair to Softbank, Leech Financial’s e-wallets in Southeast Asia are indeed weaker than Ruixiang’s.

RPay and GrabPay rank first and second respectively in the Southeast Asian market, and No.3 is AirPay controlled by Penguin Capital.

DANA, GCash, TNG and other e-wallets supported by Ari can only rank in the second echelon.

But in India, Paytm has stabilized BBPay.

As for countries and regions such as South Korea, Japan, and Hong Kong, there is not much difference between the two, or Ruixiang barely leads a little bit.

As for several countries such as Pakistan, Bangladesh, and Nepal, everyone has just opened the market, and there is no difference. "

Zhang Liping of Blackstone clapped his hands and applauded: "Boss Xue said well, Ruixiang's overseas layout can only be said to be evenly matched with Leech Golden Clothes.

However, in China, Leech Financial Services is heading for the top in mobile payment, consumer finance, wealth management, and digital technology. "

"This is farting. I don't deny that the market share of mobile payment is lower than that of Leech Financial Services."

Gan Renping of Qiming Venture Partners was very excited, "But we are not weaker than them in several sectors such as consumer finance and wealth management.

These business segments are very similar to financial supermarkets. Our business launch time is earlier than that of Leech Financial Services, and we have more experience in operation.

Products including Mung Bean Credit, Tiance Technology’s ToB business, Yongbei, and Daibei are all launched from the second half of 13 to the first half of 14, all earlier than Leech Financial Services.

So we are the industry leader, and Leech Financial Services is just following suit.

In addition, we launched a small program ahead of them, and cooperated with more than half of the domestic licensed financial institutions..."

Xue Cunhe was also a little upset after being sprayed, and responded angrily: "What about the industry leader? Goudongbaitiao was launched in February 14, earlier than Ruixiang, and earlier than Leech Golden Clothes, but what So what? What is the scale of lending?
Go out and ask yourself, look at the analysis of brokerage analysts, and the Hurun rankings. Who ranks Ruixiang ahead of Leech Financial Services?

In addition, Softbank is both a shareholder of Ruixiang and a shareholder of Zhonghe. We will not favor anyone, just to be fair. "

Xu Xiaoming and Shen Beipeng stayed silent. They were similar to Softbank in that they held shares at both ends. If they spoke hastily, they were easily suspected of their positions, so they simply stood on the sidelines.

"Okay, everyone, stop arguing. I understand that the biggest difference is the valuation."

Although Bao Fan's net worth is not high, he is well-rounded, and he has no interests in both companies.

At this moment when he spoke, everyone fell silent.

"Bet on each other? Let's rely on the actual future business performance to speak."

The investors present looked at each other, let alone, this is really a good idea.

"How to bet against each other?" Lin Zhenyang asked.

Bao Fan smiled, "Don't ask me, it should be discussed by the two of you, and there is no external call for revenue, profit, etc."

Lu Qi nodded, "Yes, Zhonghe is very confident in its future development."

He glanced at the Ruixiang investor who was sitting at the long table opposite, and said with a smile, "I just wonder if Ruixiang has confidence?"

Lu Qi's tone and expression fell into the eyes of Ruixiang's investors, which was undoubtedly a provocation.

Tong Shijie appeared to be full of confidence, and responded very decisively: "Okay, the bet is the bet, is the bet revenue or profit?"

"Gambling revenue, Penguin's price-to-sales ratio is 9 times, Ahri's price-to-sales ratio is 10 times, we will follow the exchange rate, 1 million revenue corresponds to a valuation of 1 million US dollars."

Lu Qi has a very clear understanding of the potential of the various business sectors of Zhonghe Group. The revenue of the next year or two can be estimated at seven or eight out of ten. He does not believe that Ruixiang's revenue can exceed that of Zhonghe Group. .

The investors from Ruixiang were a little undecided, and turned their attention to Lin Zhenyang.

Lin Zhenyang is also a little hesitant. He has read Zhonghe's financial report and counted all the acquired companies such as Blue Hole, Kuaishou, and Xiaohongshu. Last year's revenue was only close to 400 billion yuan.

It is far behind Ruixiang's revenue of more than 500 billion yuan.

If it is more profitable, the sharp direction of revenue balance is even more of a crowd.

"Excessive pursuit of revenue is meaningless!"

Lin Zhenyang was very cautious, and did not easily agree to bet against revenue, but talked about the truth.

"Isn't there a new media recently writing an article to disclose it? It's called "The Unicorn Who Coughs Blood".

This year, the investment circle is also hotly discussed. LPs do not pay attention to the book return now, but care about the DPI cash return rate.

Only the dividends you get are real.

Excessive competition and excessive burning of money are unhealthy operating models. "

Lin Zhenyang's words deeply attracted investors from both sides. Such honest entrepreneurs are as rare as giant pandas.

Ordinary entrepreneurs, who cares about the life and death of venture capital institutions?The money that should be burned and the money that should not be burned are never soft.

Many investment institutions present have encountered such a problem. The valuation in the primary market is very high, and the stock price plummets as soon as it reaches the secondary market.

A stock invested for US$20 billion has fallen to hundreds of millions of US dollars. How can investment institutions withdraw?How to explain to LP?

A large part of the reason for this kind of valuation inversion is that start-up companies are desperately burning money to build scale, and when they stop burning money, they will return to their original shape.

"Again, high revenue doesn't mean real money! And starting a business, after all, is a business.

To create the maximum profit and return for shareholders is the real intrinsic value of the company. "

Rui took the lead in applauding the shareholders here, and Tong Shijie even praised: "That's very well said, if there are more entrepreneurs like you, our investors will be much more relaxed."

For gambling profits, Lu Qi would definitely not agree.

Because he knows that whether it is a big entertainment business or an e-commerce business, it will not be able to make a profit within three or two years, and instead needs to continue to increase investment.The profitable business may be short videos and games.

But Ruixiang is different. In addition to cutting-edge businesses such as digital technology, other consumer finance, wealth management, and even mobile payment have begun to make money.

It's not that the ratio of Zhonghe is sharply worse, but that the stages of development are different.

Ruixiang has reached a mature stage, while Zhonghe is still in its infancy, and there are too many foundations to be perfected.

"The rankings of the world's top [-] companies are all based on revenue, so why is it worthless in the mouth of Mr. Lin?"

Lu Qi smiled and said: "Take Goudong as an example, how did it grow and grow? It is because of its larger revenue than Penguin and Ahri.

A large revenue scale means a steady stream of cash flow. "

Hearing this, everyone understood that they were no strangers to Goudong's model, which was to suppress other people's money.

As long as there is no problem with the business, there will be no problem with the capital chain.

Including retail shopping malls and real estate, many companies are doing this.

"Yes, revenue is the first criterion for judging the size of a company. It is not necessary to make money, or even lose money. As long as the revenue continues to grow, future profits can also be expected."

Bao Zheyu strongly supported this statement, and gave many examples to everyone, including real estate developers in Hong Kong.

"I'm not saying that revenue is not important. Let's continue to take Goudong as an example. In a quarter, the revenue is 900 billion yuan, but the profit is only more than 5 million yuan, and the market value is only more than 500 billion US dollars."

As soon as Lin Zhenyang finished speaking, Tong Shijie answered again: "That's right, it also depends on the net profit margin. The net profit margin of Ruixiang's several businesses is quite high.

Take consumer finance as an example, Ruixiang’s net profit margin is more than 60.00%. "

"Hehe, the net profit margin of Zhonghe's game business can reach 80.00% or even [-]%."

Zhang Liping said without showing any weakness, thinking to himself, don't think that you have cash cows, but we also have them, and the profit rate is higher than your lending.

None of the investors here in Ruixiang have spoken. Which industry dares to compare with games?Unless you come to a loan with a super high interest rate.

But it is unrealistic. On the one hand, it is not compliant and legal. On the other hand, it is not big and will not be done soon.

Lu Qi's face was full of smiles, once the game came out, who would compete with him?

The reason why Penguin is so greedy is not because the cash cow of the game gave him the opportunity to lay out the ecology, invest in this, and acquire that.

Slowly, the moat was built.

Including WeChat's defeat of Michat, which has the first-mover advantage, is also because of Krypton Gold, which has more servers across the country, which can give users a better product experience.

Running a company is like playing games. If you don’t spend money, you want to grow big. Is there a system or black technology?
Lu Qi read a few online articles in order to understand the business, and he became fascinated by it. At this moment, he thought of some clips.

The scene was embarrassing for a while, and the negotiation was simply ended.Both parties need to go back and think about it carefully, and plan a gambling plan that is more beneficial to their own side.

(End of this chapter)