“Welcome all leaders to come to Ruixiang to guide our work.”
In the Ruixiang conference room, Zhang Yida shook hands with the leaders of the banking and insurance departments one by one.
"Mr. Zhang, you don't have to be so polite. I came to Ruixiang this time just to make a fortune with you, an entrepreneurial genius.
You need to take more care of me!"
The speaker was the CEO of the Investment Department of the China Development Bank. Although he had his back against a big tree, he did not show any official authority.
China Development Bank is a policy bank with a registered capital of more than 400 billion yuan and assets under management of more than 12 trillion yuan...
"What the hell, I'm just making a small fuss." Zhang Yida said modestly, everyone here is a big boss, not only working in large banks and insurance institutions, but also in the administrative establishment.
"Then Mr. Zhang, please introduce us to Ruixiang Group! You and Leech Financial are the most popular financial technology companies in the past two years!
Any high-tech products are displayed to us, which also opens our eyes."
The speaker was the CEO of the Investment Department of CICC, an elegant middle-aged man wearing glasses.
Yimin Wangjin went public and took care of the business of CICC Securities, and they reciprocated by participating in Ruixiang Group's D-round financing negotiations.
"I know Ruixiang Group's Mobao Pay. Your mobile payment business has been promoted very well. When buying a bottle of water on the street, you can scan the QR code to pay. It is really convenient."
The general manager of the investment department of China Pacific Insurance said this.
"Haha, is that right? Mobao Pay has been increasing its promotion efforts this year and now has more than 100 million active transaction users."
Zhang Yida smiled and said to the CEO of China Pacific Insurance. His hands were not idle. He quickly turned on the projector in the conference room, put out the introduction PPT, and began to introduce:
"Ruixiang Financial Technology Group was established in October 2013. It currently has 3,528 employees, 65% of which are scientific research and technical personnel. It is a new financial enterprise driven by technology...
The entire group has five major business divisions, involving payment, financial supermarket, finance, consumer finance, wealth management, personal big data credit reporting, financial technology ToB output... and many other products and services.
The total number of registered users in China exceeds 350 million, ranking first in the industry in many fields...
Abroad, Ruixiang established Grab.Pay as a joint venture with Grab, a leading Internet company in Singapore, and holds 49% of the shares of the joint venture...
Established a joint venture with three well-known Internet companies in Indonesia, including GoJek, to form R.Pay, holding 51% of the joint venture's shares...
Ruixiang is also negotiating with several mobile payment companies in South Korea and India. The next step will be to establish two local mobile payment companies in the two countries, either through joint ventures or acquisitions...
In addition, Ruixiang has also invested in dozens of domestic and overseas Internet companies, most of which have now entered the next round of financing...
The paper return on investment has exceeded US$1 billion..."
"It's amazing! In just two years, Ruixiang Group has made such great achievements.
We have also extended our business overseas to enhance our country’s prestige!”
After listening to Zhang Yida's introduction, the general manager of BOC Capital was the first to praise.
"We are also responding to the country's call for one belt and one road, going abroad and letting the world see the scientific and technological capabilities of our Chinese companies."
Zhang Yida knew that the leaders here liked to hear this, so he said it in a nicer way.
"That's right. Keep up with the times. Mr. Zhang has a good vision!"
The general manager of ICBC Capital gave Zhang Yida a thumbs up and praised him.
"Ruixiang is a good investment target, Mr. Zhang, let's talk about the valuation!"
The CEO of CCB International was quick to speak and made a direct inquiry.
Zhang Yida took a deep breath and said: "$25.2 billion before investment!"
This price shocked the general manager of ABC Investment, who had never spoken a word, and said:
"How much? US$25.2 billion? It's too expensive!"
Several other bosses also nodded and said:
"Mr. Zhang, the last round of financing was only US$10 billion! In less than a year, it has more than doubled!"
"Yes! Ruixiang has only been established for two years! With a valuation of US$25.2 billion, the bubble is too big."
"The assets we manage belong to the Party and the people, and must be held accountable to the Party and the people. Mr. Zhang, you can't set prices randomly!"
"That's right, Mr. Zhang, we are not those foreign venture capital investors. Let's pay attention to something real."
Zhang Yida had known that they would react this way, so he smiled and said:
“After excluding the four cutting-edge technologies of Mobao payment, AI, big data, blockchain and cloud computing, Ruixiang Group’s net profit in 2014 was RMB 4.7 billion.
Based on 30 times PE, the valuation of this part of the business can reach 141 billion yuan, which is 23 billion U.S. dollars when converted into U.S. dollars.
We have invested billions in research and development alone on the four cutting-edge technologies, and the valuation will not be less than US$2 billion.
The other one is Magic Pay, our size is almost one-sixth of Pay Pay.
The valuation of Leech Financial Services exceeds US$50 billion, two-thirds of which is accounted for by Alipay, which is US$33.3 billion.
Mobao Pay is valued at US$5.5 billion, which is not an exaggeration!
Ruixiang Industrial Investment Fund also holds equity stakes in dozens of Internet companies, worth more than US$2 billion. Among them, Ruixiang's investment and dividends are worth more than US$1 billion in total.
All in all, the combined valuation of Ruixiang should be US$31.5 billion."
Zhang Yida looked at the faces of the bosses. Some were surprised, some were skeptical, some were happy, and they had different reactions. Then he said:
“I also wanted to make some contribution to the country, so I discounted the valuation by 20%, from US$31.5 billion to US$25.2 billion.
This kind of concession is not enjoyed by everyone.
Rui Xiang's goal for the future is to have a valuation of hundreds of billions of dollars and become a financial technology company that attracts the attention of the world."
Zhang Yida shouted slogans very loudly, but no one answered. How could they not understand Zhang Yida's intention?
He and others represent the four major banks of China Construction Bank, China Development Bank, and China Pacific Insurance.
With these six companies investing in shares and endorsing Ruixiang, Ruixiang will definitely be in a good position to develop its domestic business in the future.
What are you doing to contribute to the country? Just continue to lie!
As for Ruixiang’s goal of 100 billion U.S. dollars, considering all the miracles Zhang Yida has created in the past two years, it is still very possible to achieve it.
A college student achieved a breakthrough from zero to tens of billions of dollars in two years.
It seems that there is a genius like Zuckerberg in the United States, who invented a social software and is now valued at hundreds of billions of dollars.
Our country has a large population, more than three times that of the United States. It is normal for a genius like this to emerge!
Ahri and Penguin both have hundreds of billions of dollars. Ruixiang’s Mobao Pay actually withstood the pressure of these two giants, and its payment market share increased instead of falling.
In the future, there is still a slight possibility of reaching or even surpassing these two giants, although it is unlikely.
"A price-to-earnings ratio of 30 times is a bit too high! Financial stocks, like our four major banks, only have a price-to-earnings ratio of five or six times."
The general manager of BOC Capital retorted.
"Yes, for all the years that ICBC has been listed, the price-to-earnings ratio has hardly exceeded 10 times.
30 times, that’s ridiculous.”
"That's right! Based on this valuation, Ruixiang will almost catch up with our CCB."
"Boss, we are not a traditional financial institution. We are Internet finance. How can our valuation be compared to traditional companies?
Comparing with Penguin and Ahri, 30 times PE is normal.”
Zhang Yida argued hard that he really wanted to win shares from these companies.
In the previous life, Leech Financial Services was so good that it attracted China Development Bank and the four major insurance companies to enter the market.
China is a humane society, and there are people in the DPRK who make things easier for them.
“With a maximum valuation of 15 times, the basic business gives you a valuation of US$11.5 billion. Counting other businesses, the total is a valuation of US$20 billion.
As for the 20% discount, we don’t want it from you. The country won’t take advantage of you.”
The general manager of ABC Investment was also a ruthless person, and he cut off US$5.2 billion in one blow.
"According to this valuation method, I can't explain to Temasek, Blackshirt Capital, and these foreign shareholders!"
Zhang Yida began to use foreign capital as a shield, but to be honest, with financing at 15 times PE, foreign capital would definitely cause trouble.
I suspect Zhang Yida is conveying benefits or something. Maybe he will be like Jack Ma and his international reputation will be ruined.
"Mr. Zhang, then you need to communicate with foreign shareholders.
Our six major shareholders will bring a wealth of resources in addition to capital when they invest in Ruixiang Group.
Including our respective companies, we can further deepen cooperation with Ruixiang.
Sometimes, this resource is the most priceless."
The CEO of the China Development Bank has spoken. In terms of rank, he is the highest among everyone present, so other major institutions are following his lead.
Zhang Yida knew what he meant and wanted to convert resources into shares.
There is nothing wrong with doing so.
But Zhang Yida has already given more than 6 billion US dollars in discounts. No matter how favorable the discount is, other shareholders will not be able to explain it.
"The price is too low, and I have made so many concessions that I have been criticized by foreign shareholders.
If you make any more concessions, foreigners will look down upon you.
They will feel that their interests have been harmed and the matter has become an international issue, and Ruixiang's subsequent financing will be in trouble.
Ruixiang’s entire business layout needs to be expanded, especially its overseas business, and it may involve the introduction of sovereign wealth funds from multiple countries.
I can’t cut off my path to the future just for this round of financing.”
Zhang Yida's tone was firm and he would not give in even if he was beaten to death.
Several CEOs looked at each other, and finally the CEO of CPIC came out to express his position:
"Let's do this! Let's add another US$1 billion, and US$21 billion will be our final bottom line."
"Boss, let's do this! I'll sign a betting agreement with you, and we'll bet on the valuation of the next round of financing.
If the valuation of the next round of financing does not reach US$40 billion, I will transfer part of my equity to you as compensation."
Zhang Yida knew that no matter how hard he tried, he could never fool these bureaucrats.
To invest in Ruixiang or not? For them, it is not particularly important.
What do they think? They don’t seek merit, but they seek no faults.
If you invest in a sharp direction, the valuation is too high, and you lose money, you still have to bear the responsibility and make the decision.
In particular, investing in Ruixiang is not a small sum, starting from several hundred million dollars.
With such a large sum of money, what kind of problems could arise that would affect your career?
“How long will it take for the next round of financing? There is a time limit! It can’t be three to five years!
There is also equity compensation, what kind of compensation law? Let’s talk about it together!”
The CEO of ABC Investment felt that Zhang Yida's idea was quite good and asked again.
"The next round of financing is limited to within two years. If the pre-money valuation is not reached at US$40 billion, this round of financing will be based on US$21 billion.
No matter how many shares are missing, Ruixiang's management will compensate you."
The bosses stopped talking and began to weigh things up.
With this plan, they feel that the harvest can be guaranteed despite droughts and floods, and they don’t have to worry about taking risks or taking on responsibilities.
If Ruixiang's valuation exceeds US$40 billion within two years, their annual return on investment will be more than 20 points.
If it does not reach US$40 billion, Ruixiang's management will compensate them with equity and they will not suffer any loss.
As for the next round of valuation being less than US$25 billion, conventional venture capital itself has ratchet clauses. If the valuation drops, the management team will also need to make equity compensation.