Winning the new financial era

Chapter 505 Valuation Routine

After returning to China, Zhang Yida immediately arranged for the private legal counsel of the family office to check all the contracts that he needed to sign.

At present, he does not personally hold any shares in the two companies, and both are held by BVI Cayman Islands offshore companies.

Zhang Yida was also cautious about such a big transaction.Lawyers found three of them and conducted cross-examination.

After confirming that there were no problems with all the agreements, Zhang Yida got his name on the contract.

Zhang Yida originally held 58.64% of the shares of Zhonghe Group, but he only took 1.36% of the 1% of the shares that won the bet, and his total shareholding ratio increased to 59.64%.

The other 0.36% was allocated to company executives such as Lu Qi and Zhang Lan.

These are real equity, not options.Although the value is high, the management's contribution is also worthy of this treatment.

Especially Zhang Lan, she was the one who handled the commercialization of Doushi, and later handed it over to Su Hua, and she contributed a lot to winning the bet.

For Ruixiang, Zhang Yida holds 34.36% of the shares, which has remained unchanged since the completion of the E-round financing of US$66.66 billion last year.

According to the 1:1 share exchange method, Zhang Yida will hold 47% of the shares of the merged "Xinruixiang" group.

In addition, Zhang Yida increased Zhonghe Group’s capital by US$12 billion last year, and this part of the equity is held in the name of a family trust.

This is what Zhang Yida did deliberately. Gradually, he began to divide his personal property and family property, and built a few more caves, which can also play a role in hiding property.

After subsequent rounds of financing dilution, the family trust still holds a 1.88% stake in Zhonghe Group, which will be converted into a 0.94% stake in Xinruixiang Group.

The third phase of Ruixiang Industrial Investment Fund holds 3.12% of the shares of Zhonghe Group, which will be transformed into a 1.56% stake in Xinruixiang Group.

This fund is also a special existence. The original shareholder of Ruixiang holds one-fifth of the 1.56% equity.

In addition, 20% of the fund's investment return, as the fund management fee, also belongs to the original shareholders of Ruixiang.

After the fund's five-year lock-up period expires, when the fund exits, this part of the equity will be distributed to the original Ruixiang shareholders in the form of dividends, in the form of currency or equity, and has nothing to do with the shareholders of Zhonghe Group.

Roughly calculated, in this fund, Zhang Yida can get at least 0.1% equity of Xinruixiang Group.

And Zhang Yida's equity is divided into three shareholding platforms, Cayman Company, Family Trust, and Ruixiang Phase III Industrial Fund.

According to the latest round of financing information of the two companies, Xinruixiang Group’s valuation is:

666.66+642 is equal to 1308.66 billion US dollars!
According to the exchange rate of 6 US dollar to 1 yuan in June, the conversion into RMB is 6.4586 billion yuan.

However, this figure is obviously too conservative. Zhang Yida put forward his own suggestion: announced that Xinrui valued the group at US$1600 billion, equivalent to RMB 10334 billion!
According to the annual revenue of 950 billion yuan after the merger of the two companies, the price-to-sales ratio has actually reached 10.9 times, which is higher than that of Penguin and Ali.

But the investors present felt that this valuation was not high, even conservative.

"If you want me to say, directly announce the valuation of 2000 billion US dollars, and bring some big news to the media and netizens." As an activist, Tong Shihao was the first to propose.

After Zhang Yida signed and completed the process, the focus of a group of investors returned to valuation.

The valuations of Ruixiang and Zhonghe have never been discussed. According to the 1:1 exchange method, the valuations of the two companies are the same.

Whether it is more than 600 billion U.S. dollars or 1000 billion U.S. dollars, it does not affect everyone's equity ratio.

But on the caliber of external publicity, investors have expressed their different opinions.

Gan Renping also agrees with Tong Shihao's point of view, he said: "The representative of GGV is right, the valuation does not necessarily refer to the actual value of the company at present, but also includes part of the expectations for the future.

Xinruixiang Group is now the only company in China that challenges Ali and Penguin in an all-round way. We must build momentum!
We need to let the outside world have confidence in us and feel that the gap between us and their two companies is not insurmountable. "

"Isn't Ruixiang going to acquire the e-commerce company in Southeast Asia? We make the valuation a little higher, and everyone's shareholding ratio in the future can be less diluted."

Xu Xiaoming said with a smile, he also made up his mind.

"Great idea, I'm all for it!"

"Teacher Xu still has a way, so we have to do it like this!"

"I heard that the e-commerce company in Southeast Asia is valued at 50 billion US dollars. If you ask me, the bubble is a bit big. It is also appropriate for us to increase our value appropriately!"

……

Zhang Yida felt that he still underestimated the shamelessness of these capitalists, but as the biggest profiteer, he was still very tempted by this plan.

"To make the valuation stand up to scrutiny, we might as well conduct another round of financing to push up the post-investment valuation of Xinruixiang to 2000 billion U.S. dollars in one fell swoop!"

Hearing what Zhang Yida said, the investors, who were still in high spirits just now, became quiet all of a sudden.

Those who looked at the table looked at the table, those who looked at the ceiling looked at the ceiling... the scene was extremely embarrassing!
It doesn't matter how you brag about wealth on paper, but if you really want to pay for it yourself, investors will inevitably retreat in their hearts.

"The valuation is suddenly pushed too high, which is not conducive to subsequent financing!" Shen Beipeng explained his thoughts concisely.

"Yes, how about a valuation of 1600 billion U.S. dollars, I think it's pretty good."

"Well, 1600 billion US dollars is not a lot, and it is firmly seated as the third largest Internet company in China and the eighth largest technology company in the world!"

"Yeah, after all, we haven't gone public yet, and the valuation is too high, and it's easy to be criticized."

……

The selfish side of capital has emerged again. It only wants to cheat others to profit, but it doesn't want to pay for itself, or it wants others to pay.

Zhang Yida was no rookie anymore, and he couldn't be more clear about this group of people.

He waved his hand, "Don't argue, let's conduct another round of pre-IPO financing. All of our shareholders will increase their capital in proportion to their equity. No one will suffer, and all the meat will be rotten in the pot."

Bao Zheyu's heart moved, "How much is the financing amount?"

Zhang Yida thought about it, the amount should not be set too high, he really couldn't afford it.

The 12 billion US dollars he gritted his teeth to increase capital last year basically spent less than half of the funds in his various equity cash outs.

The cash he currently has at his disposal comes from cashing out the equity of three companies, Yimin Wangjin, Yimin Wealth, and Yimin Loan, as well as the sale of all equity interests in Huimin Travel, Green, and OYO Hotels.

These six companies have brought him a total of $6 billion in cash after paying taxes or avoiding taxes.

The money was spent on Doushi, Pinduoduo, and Zhonghe Group alone. 15.5 billion US dollars.

In addition, the acquisition of Blue Hole, the purchase of private jets, the mansion Ligong, and the loan of 3 million euros to Li Yonghong... all kinds of things cost another 14.5 billion U.S. dollars.

He now only has $13 billion in cash in hand, and it is impossible to invest most of it in the company's operations.

Not only to diversify investment risks, but the most important thing is that the rate of return on investment is not too high.

2000 billion U.S. dollars in shares, if you want to double the return on investment, you must at least make it like Penguin and Ali, and I don’t know how long it will take.

"10 billion dollars, I personally lead the lead investment of 4.7 million dollars!"

After a little thought, Zhang Yida quickly made a decision.

"Is the amount too small?" Shen Beipeng asked with a frown.

"After the merger, Xinruixiang Group has more than 140 billion US dollars of cash reserves in its accounts. Is it necessary to conduct large-scale financing?"

Hearing what Zhang Yida said, other investors also made up their minds and began to voice their support for this capital increase plan.

After the merger, Xinruixiang Group, in addition to Zhang Yida and the management, also has [-] to [-] institutional investment shareholders.

It is not too difficult for an institution to invest millions or tens of millions of dollars to make up the remaining more than 5 million dollars.

The benefits of doing so are also obvious. First, the company’s valuation will be raised to 2000 billion US dollars, and at the same time, it can take advantage of the subsequent equity acquisition.

As for whether it is worth 2000 billion U.S. dollars, there is financing information, and there are [-] to [-] world-renowned investment institutions endorsed, black can also be said to be white.

(End of this chapter)