"Mr. Zhang, you need a bowl of water to keep your balance! We Ruimin manage finances. It doesn't matter if your parents don't love you or your grandma doesn't love you.
Now we are still required to transfer our benefits to Huimin Bicycle. So what will happen to our development?"
In the CEO office of Ruimin Financial Management Company, Fang Yuhan was "arguing" with Zhang Yida.
"You are so lucky that you don't know how lucky you are. How many P2P companies are now fully profitable?
Huimin Bicycle has been guiding your traffic for half a year, and has facilitated tens of billions of transactions! And there are more than 10 million deposit financial users.
What about the cost? A mere 160 million.
If Huimin Financial Management achieves the goal of "tens of millions of registered users and 10 billion in transaction volume" through ordinary customer acquisition channels on the market, it will cost at least 1.8 billion.
The most critical thing is time. In just half a year, Huimin Bicycle has made such a great contribution to you.
If it's one year or two years, three years or five years?
Huimin Bicycle is encountering difficulties now, and Ruimin Financial Management, as a good partner and brother, must also lend a hand to help!"
Zhang Yida began to give ideological and political lessons to Fang Yuhan. Seeing that the first quarter of betting had passed, Huimin Financial Management's revenue was still far short of the predetermined target.
Moreover, the subsidy war among shared bicycles has already begun, with several companies announcing free rides.
This news really adds insult to injury for Huimin Bicycle.
Therefore, in order to complete the gambling agreement, Zhang Yida came up with the idea of Ruimin Financial Management and prepared to make some luck.
"Mr. Zhang, I know that Ruimin Financial Management has such a large scale and industry influence today, and it is all thanks to Huimin Bicycle.
However, we don’t have much profit either!
If all Ruimin Financial Management is given to us at once, do we still want to develop?
If you agree to Ruimin Financial Management’s independent financing, then it’s not impossible to transfer some profits to Huimin Bicycle.”
The company's chairman and major shareholder is Zhang Yida, and Fang Yuhan didn't want to object to him "adjusting profits," but she took this opportunity to test Mr. Zhang.
Considering that Yimin Net Financial is about to go public, Fang Yuhan feels that she is somewhat marginalized within the group.
Therefore, she wanted to test Zhang Yida to see if Mr. Zhang was willing to let Ruimin Financial Management go out for financing.
If it can raise funds independently, the development of Ruimin Financial Management can be accelerated. In another year and a half, there will be no chance of going public.
"Financing..." Zhang Yida muttered. In his business map, the positioning of Ruimin Financial Management was the least clear.
Yimin Wealth focuses on high-end financial management, Yimin Wangjin focuses on online financial management and offline large loans, Yimin Dai focuses on small consumption installments, and Huinong Dai focuses on poverty alleviation loans in the field of agriculture, rural areas and farmers.
Ruimin Financial Management currently has no asset side, and all funds are provided to Yimin Dai for consumer installment business.
Precisely because there is no asset side, regardless of Ruimin Financial Management’s current success, the P2P path will be cut off in the future, and there will be no chance for transformation.
"Financing is possible, but I have a request to build a moat for Ruimin Financial Management."
After some thought, Zhang Yida decided to let Ruimin Financial Management go out for financing.
Here we are giving blood to Huimin Bicycle, but over there we still need to find some venture capital to donate blood.
"Moat? Mr. Zhang, are you talking about the risk control model?" Fang Yuhan tilted her head and thought, frowned, and asked: "But we don't have assets now?"
"If there isn't one, just build one."
Seeing that Fang Yuhan quickly guessed his intention, Zhang Yida said lightly.
Fang Yuhan didn't say anything. She knew how difficult it was to establish the asset side. If it was an offline large-amount loan like Yimin Puhui, or an online consumption installment like Yimindai, then that would be fine, and it would not be particularly difficult.
.
But Mr. Zhang will definitely not do this kind of repetitive construction. He will obviously develop a new asset for himself.
The most popular ones on the market now are offline mortgage loans, car loans, or online small cash loans.
In addition to these types of assets, what other offline 3C digital installments, medical beauty installments...
Ruimin Financial Management's current business model is to generate revenue through channels and collect tolls.
Ruimin Financial Management provides users with financial management income of 5%-11%, and the average cost of funds is approximately between 8%-9%.
The financial management funds are then wholesaled to Yimindai at a price of 15%, with an interest rate spread of 6%-7%.
With Yimin Loan, you don’t have to worry about bad debts.
With Huimin Bicycle as a diversion, there is no need to consider marketing and promotion issues.
The biggest expenses are personnel salaries, R&D investment, and system maintenance, which add up to only 30 to 40 million a year.
According to internal forecasts, the transaction volume of Ruimin Financial Management this year will be between 25 billion and 30 billion, and all converted into adult funds, it will be about 10 billion to 12 billion.
The gross profit is between 600 million and 800 million, and 300 million to 400 million of this money will be allocated to Huimin Bicycle, but the final net profit is also 300 to 400 million.
As long as Yimindai does not expose huge bad debts, this profit can be maintained for a long time or even increase.
But now that Fang Yuhan is asked to go out and build the asset side and lend money by herself, she is somewhat unsure.
"Mr. Zhang, what asset terminal do you want us to build?" After thinking about it, Fang Yuhan felt that although this was a hot potato, she could only grit her teeth and continue.
If the asset side can do enough and control bad debts, the profitability of Ruimin Financial Management will be greatly improved.
Compared with the current pipeline income, there are challenges but also more opportunities.
"Enterprise loans, small and micro enterprise loans, do you dare to try it?"
This asset side has also been something Zhang Yida has thought about repeatedly. Consumer credit mainly provides loans to ordinary people to promote consumption. However, excessive consumption can easily be interfered with and regulated by the state.
Loans to small and micro enterprises are different. This is a social pain point. Banks generally serve large enterprises, and it is difficult for small enterprises to obtain loans.
Small and micro enterprise loans support the development of small and micro enterprises, which is very responsive to the country’s call and is also a type of loan that the country strongly supports.
When engaging in this type of loan, we are not afraid of being regulated, but we are afraid that the bad debts will be too high, which will drag down the lending companies to death.
"Don't...Mr. Zhang, this is the hardest bone to crack. You can't make two bucks, but you still have a lot of trouble."
Fang Yuhan is also a middle-aged man in his forties and has a clear understanding of all walks of life in society. When he heard about small and micro enterprise loans, he refused them one after another.
"I know it's a tough nut to crack, but I didn't ask Ruimin to make a loan scale of 18 billion in one go.
We will do it in small quantities first, with one or two billion in 2015, one billion or eighty billion in 2016, three to four billion in 2017, seventy or eight billion in 2018, and tens of billions in 2019.
It will take 4-5 years to deeply explore this market, the pace can be slower, but the pace must be steady."
Zhang Yida has already made a plan in his mind. This market is difficult to crack, but once it is cracked, there will be a moat. Even if banks have a capital cost advantage, they may not dare to easily come and grab the market.
“To make loans to small and micro enterprises, there must be two starting points. Either there is an enterprise at the top of the supply chain, or there is a company that captures enterprise operating data.
Taobao has such an advantage, so its risk control data model is very well built and it can lend money to hundreds of thousands or millions of companies.
Or large manufacturing companies, such as Haier and Midea, have a large number of suppliers and upstream and downstream supplier order data, so they can do supply chain finance."
Fang Yuhan obviously also has research on small and micro enterprise loans and knows where the difficulties and breakthrough points are.
“Not only these, but companies that serve the B-side have valuable data. For example, ERP vendors, SaaS software vendors, like Kingdee and UFIDA all have access to many companies’ purchase, sales, inventory and sales operation data.
Another example is Magnesium Tuan, which also has business data on many catering, wine and tourism companies.
There are also companies such as Tax Friends Group that make financial and taxation software, as well as financial and taxation agencies. They also have tax return data of enterprises.
We work with them to develop a set of software that can extract this information and data, analyze and compare corporate operating data, and form a risk control system targeting small and micro enterprises."
Compared with personal consumer finance, the gameplay of small and micro enterprise loans is indeed much more difficult. Without certain technological strength, all you have to do is deliver food.
Including Zhang Yida's determination to enter this field, he was also mentally prepared to pay several years of tuition.
"Having said that, Mr. Zhang, you have to think about it. Entering this field will definitely not make a profit in a short period of time.
There is no quick money to be made in this industry. We must be prepared for a protracted war. Life will definitely not be as comfortable as it is now.
It is necessary to continuously invest funds in various system research and development, improve data models, and products also need to undergo various trials and errors in the market.
What will happen in the end? No one can say.
It is precisely because of this uncertainty and the huge investment of resources and funds that most practitioners have been frightened and have turned to personal consumption loans that are relatively easy to deal with.”
From the current perspective, no one can be sure whether this is a broad road or a road full of thorns.
Fang Yuhan analyzed the situation one by one to Zhang Yida, and the decision-making power still rested with Zhang Yida.
When she thinks about it: You are the boss, you make the decision, and you are responsible for whether it is right or wrong.
As a professional manager, I have fulfilled all my duties.
"I have decided that we must do loans to small and micro enterprises."
Zhang Yida didn't say anything else: If you don't do this, you won't have your own core competitiveness, and you'll be out of business in a few years.
Seeing that Zhang Yida had made his decision, Fang Yuhan said nothing more.
The two re-drafted a cooperation agreement with Huimin Bicycle, and the cooperation price increased from "annual investment × 3%" to "annual investment × 4.5%".
This is equivalent to a 50% increase on the original price, and almost three-quarters of the profit from the cooperative business has been given to Huimin Bicycle.
Before signing this agreement, the investors of both companies must be notified. After all, the amount involved is huge, and the unanimous consent of the investors must be obtained.
Generally speaking, there is nothing wrong with the agreement. Ruimin Financial Management itself developed by riding on the coattails of Huimin Bicycle, so getting 25% of the profit from the cooperation is not bad.
Huimin Bicycle is currently in a seller's market, and changing cooperation with another P2P company will not have much impact.
Ruimin Financial Management is different. Without Huimin Bicycle, where can we find channels that can attract tens of billions of funds and tens of millions of users in half a year?
Of course the investors from Huimin Bicycle had no objections. It was obvious that the agreement was beneficial to them, so they readily agreed.
There are only two investment institutions in Ruimin Financial Management, Zhenke Fund and Blackshirt Capital.
At the same time, they are both shareholders of Huimin Bicycle, so there is no big difference between the left hand and the right hand.
Naturally, no small matter would embarrass Zhang Yida.
Therefore, under the witness of all parties, Huimin Bicycle and Ruimin Financial Management signed a supplementary cooperation agreement and adjusted the cooperation fees.
Huimin Bicycle is expected to earn more than 100 million in revenue this year, one step closer to its gambling goal.