"It's a perfect combination of finance and technology!"

Looking at the data reports listed on the large electronic screen on the stage, Robert of Goldman Sachs sighed.

"That's right!"

Morgan Stanley's Evans nodded, "With more than 800 million registered users worldwide, this data is several times higher than PayPal, right?"

PayPal only announced in February this year that the number of registered users worldwide exceeded 200 million, and now there is at most a quarter of the user volume of Mobao Pay. ”

Bank of America Merrill Lynch's Wang Zheng smiled and answered, such an amazing company in China Ruixiang, leaving PayPal behind him, as a Chinese, he also felt extremely excited and proud.

Credit Suisse colleagues sitting next to them poured cold water, "Don't look at PayPal users, but they are all distributed in developed countries in Europe and the Americas, and the annual revenue and profits created are not comparable to those of backward regions such as Southeast Asia, South Asia, and even Africa."

PayPal's revenue in 16 years is $10.8 billion and net profit is $1.4 billion, and this year's forecast revenue is $13 billion and net profit is $1.8 billion.

In addition, the market capitalization is also approaching the 100 billion dollar mark!

That translates to four or five hundred dollars for one user.

Do you think the two can be compared?"

A few people shook their heads, PayPal is indeed a little unsuitable to use as a benchmark reference.

According to this valuation method, Ruixiang's 800 million users are multiplied by $400 or 500, and the valuation is $300 billion or 400 billion.

This volume is already on a horizontal line with Ahri and penguins.

It's not that Ruixiang can't reach this valuation, the key is to come up with some convincing financial data.

For example, $450 billion in revenue, $18 billion in net profit.

"Let's talk about Ruixiang's financial report!"

Mansour smiled at Zhang Yida first, and then glanced around at the surrounding investors, "I believe everyone is a little impatient." ”

"Good!"

Zhang Yida pressed the PPT controller in his hand, and the PPT page of the electronic large screen was transformed, and a set of histograms appeared.

"In 14 years, the revenue was 6,524.52 million yuan, and the net profit was 744.7 million yuan;

15 annual revenue of 15.514 billion yuan, net profit of 377 million yuan;

16 annual revenue of 32.108 billion yuan, net profit of 255 million yuan;

In the first half of 17 years, the revenue was 26.906 billion yuan, and the net profit was 69 million. ”

Zhang Yida smiled at the investors in the audience: "This is the financial report of Ruixiang Group in the last three and a half fiscal years." Do you have any questions? If not, ......."

"Wait!"

Tan Wei Min, the investment representative of Malaysia's Nasional Holdings, suddenly interrupted, and immediately attracted everyone's attention.

Chen Weimin also realized that he was a little out of shape, and explained with a smile: "I don't mean anything else, I just think this level of profitability is a little strange." ”

Why does it feel strange? He sees Ruixiang's net profit getting lower and lower, which is completely opposite to a normal company.

Other companies are losing money in the early stage, and their profits are expanding in the later stage.

Sharp is good, and the profit level is not as good as a year.

Chen Weimin's reminder, other investors have also noticed this problem, and they have set their sights on Zhang Yida.

Zhang Yida was not nervous at all, and said with a smile: "It turns out that this is the problem, everyone is not in a hurry, and will give everyone a satisfactory answer." ”

"Let's move on!"

Zhang Yida turned the page of the PPT and introduced the detailed business income of each year.

Investors are no longer speculating and have begun to focus their attention on the stage.

After Zhang Yida finished decomposing the main business and expenditure of the 14th, 15th, and 16th years one by one, many investors have already figured out the "mystery" of the financial report.

Most of it is spent on subsidies in the mobile payment market and R&D investment in cutting-edge technologies.

"In the first half of 17 years, the advertising revenue of the six major financial supermarkets was 4.208 billion yuan, and the net profit was 2.775 billion yuan;

The revenue of mobile payment business was 10.7 billion yuan, and the net profit was 1.284 billion yuan;

consumer finance business, including two major products, Yongbei and Loan, with revenue of 7.82 billion yuan and net profit of 5.083 billion yuan;

Wealth management business, including banking, securities, funds, insurance, etc., with revenue of 1.266 billion yuan and net profit of 944 million yuan;

Digital technology and enterprise services, including Ruixiang Cloud, Mung Bean Credit, Tiance Technology, etc., with revenue of 2.487 billion yuan and net profit of -10.138 billion yuan.

The revenue of other businesses was 425 million yuan and the net profit was 121 million yuan. ”

After listening to Zhang Yida's introduction of the revenue composition in the first half of 17 years, as well as the profits of various businesses, all investors understood.

The loss of more than 10 billion yuan in digital technology and enterprise services is very conspicuous, which means that the cost of R&D investment far exceeds the revenue brought back by technology applications.

The mobile payment business is profitable, but the profit margin is very low, and it is in the early teens.

Zhang Yida also explained the reason for this situation: although the marketing subsidy of mobile payment has weakened recently, it will be maintained for a long time.

Consumer finance is a sharp cash cow, which obtains funds from banks or the bond market at a cost of less than 6%, and resells it to users at an average annual interest rate of 18%, with a gross profit margin of nearly 70%.

Investors are talking to each other and exchanging their views on the financial report.

Zhang Yida didn't interrupt, just watched them quietly on stage.

If Ruixiang wants to make a large profit, it can do it at any time, and the annual net profit will not be less than 20 billion yuan.

However, if you do so, you will undoubtedly commit suicide in a chronic way.

First of all, cut off the burning of money in the field of cutting-edge technology, and secondly, reduce marketing subsidies.

There are not many marketing subsidies at present, Ruixiang and Tenpay, as well as Leech Financial Services, have reached a tacit understanding, and it is important to make money first.

After two or three years of mobile payment war, no one has benefited, and at the same time, no one has been helpless.

So in this case, the three mainstream payments have begun to change their strategies, after all, it is just right.

Last year, Leech Financial was the first to announce cash withdrawal fees and credit card fees. Then the penguins followed.

Zhang Yida hesitated for a while, but chose to follow up.

If Ruixiang uses this as a gimmick and announces that it will not charge, it can indeed attract some users.

But it won't be long before Penguin and Leech Financial Services will soon announce that the "fee will be invalidated" and continue to be free.

In this way, the industry has entered a vicious circle again.

This vicious circle is not good for Ruixiang, because no one has a big business.

Moreover, Ruixiang is now gradually focusing on overseas, which requires a large amount of investment. At this time, the profitability of the domestic business is crucial.

There are also investors who have been constantly putting pressure on Ruixiang: making profits as soon as possible and IPO as soon as possible.

"Let's take a look at this watch again!"

Zhang Yida spoke, and attracted the attention of investors to the stage.

Turning the PPT to a page, Zhang Yida pointed to a histogram and introduced:

"Ruixiang in 2014 is 400 million US dollars in scientific research, 800 million US dollars in 2015, 1.6 billion US dollars in 2016, 1.6 billion US dollars in the first half of 2017, and the whole year is expected to be about 3.2 billion US dollars. ”

Many investors in the audience covered their foreheads, they were crazy!

In three and a half years, 4.4 billion US dollars have been invested in the field of cutting-edge science and technology, which is 28.8 billion yuan when converted into RMB.

This should have been the net profit of Ruixiang Group, but now it has been filled into the bottomless pit of scientific research.

But no one doubts it, after all, the money spent is exchanged for a sharp technical moat.

In this era of rapid technological change, Scrooge is unacceptable.

Zhang Yida also learned about the annual R&D investment of Leech Financial Services, and Ruixiang has basically caught up with the other party.

The Leech Financial Services Group was established in 14 years, but its predecessor, Alibei, was launched in 03.

It has more than 10 years of development than Ruixiang, and the technical reserves and talent reserves of Leech Financial Services are not comparable to the former.

In order to close the gap, or even smooth the gap, Zhang Yida can only choose to burn money.

Through Ahri's financial report, as well as the agreement that Leech Financial needs to share 37.5% of the net profit to Ahri.

It can be reversely inferred that the net profit of Leech Financial Services was 4.2 billion, 2.8 billion, and 7.3 billion in the first half of 15-17 years.

For these figures, Zhang Yida believes that they are also "very knowledgeable".

Similar to Ruixiang, this should also be the remaining number after a large investment in research and development.

The real profit may be three or four times that of this figure.

"A round of financing of $50 million, Series B financing of $500 million, Series C financing of $2 billion, Series D financing of $2.5 billion, where do these financing funds go?"

Some investors were very curious about this question, so they asked Zhang Yida a question.

"Let me start by saying that the Series C funding is only $1.5 billion in cash, and the other $500 million is a resource from Penguin. ”

Zhang Yida explained with a smile, and continued: "Part of these financing funds are used as R&D funds for early scientific research, and after Ruixiang generates positive cash flow, it is replaced by the company's reserve cash;

In addition, it has invested in a series of ecological enterprises such as Grab and GoJek, as well as building overseas local e-wallets.

The construction and expansion of Ruixiang Cloud Computing Center also rely on financing funds in blood transfusion, and tens of billions of yuan have been invested so far.

In the last part, Ruixiang Industrial Investment Fund, the third phase of the fund, Ruixiang as a GP, contributed a total of 700 million US dollars.

In addition, it acquired Station B and Chizicheng, launched the Cultural Revival Fund as LP, bought Ruixiang Building, and built the second headquarters of Rongcheng ......"

Many of the investors present frowned, taking the equity financing money out to invest, what kind of operation is this?

Zhang Yida saw that they were confused, and he didn't explain too much.

Switch the PPT to the next page and start to introduce the third phase of the industrial investment fund of Qiruixiang.

"Kuaishou B+ round, Rui Xiang Industrial Fund Phase I invested 30 million US dollars, obtained 5% equity, diluted, and currently holds 3.83% of Kuaishou's equity, worth 383 million US dollars, investment income of 353 million US dollars.

Ruixiang holds a one-third share of the first phase of the industrial investment fund, and as a GP, it can share in the return of 164.73 million US dollars.

In the A round of Bitmain, Ruixiang invested 5 million US dollars in the first phase of the industrial fund and obtained 15% equity.

Last month, Bitmain just completed a $50 million Series B investment led by Blackshirt Capital, entering the ranks of unicorns with a valuation of $1 billion.

Ruixiang's equity is diluted, and there is still 14.25%, worth $142.5 million, with a return on investment of more than 28.5 times.

......”

Zhang Yida introduced the 27 projects invested by Ruixiang Industrial Investment Fund Phase I Fund one by one.

Including the time of investment, shareholding ratio, current valuation of the project, market position, return on investment, etc.

The investors in the audience are already dumbfounded, what does this mean?

Just an industrial investment fund should be valued at tens of billions of dollars?

Mansour's heart moved, and he asked Zhang Yida with a smile: "That...... My friend, when will the fourth phase of Ruixiang Industrial Investment Fund start to be raised?"

Zhang Yida coughed, "This question...... Let's talk about it in detail! Of course, I welcome all friends!"

Mansour also realized that it was indeed not a good time to discuss this issue, and that the time and occasion were not right, so he smiled apologetically at the investors around him.

Not only Mansour, but other investment representatives were moved.

What kind of technology company is this? It's an investment company in the skin of technology.

They also wanted to ask about Zhang Yida's fourth fund, but the occasion was not quite right.

They all made up their minds to have a good chat with Zhang Yida in private to see if they could take a ride.