"Brothers, what's going on? You all look listless!"
In the office of Yimindai Central Plains Branch, business manager Qi Xiaoming asked several subordinates around him with a smile.
"Hey, Brother Ming, don't mention it, I've been so annoyed lately.
Another training school has been lost."
A Yimindai employee complained to Qi Xiaoming.
"I lost you again? Brother, are you going to eat this month? How many orders have you lost this month?"
Qi Xiaoming shook his head repeatedly. This performance decline was so severe that his team's commission this month would be greatly affected.
"Brother Ming, I don't want to get lost! But Qiandu has money and higher rebate points than us, and those training schools have cooperated with them."
The subordinate glanced at Qi Xiaoming and said very unconvinced. In his opinion, this was a non-war crime and the responsibility did not lie with him.
Qi Xiaoming rubbed his forehead, it was hard to do! If his performance continued to decline like this, he might not be able to sit still in his position. He turned to other employees and asked, "What's going on with you?"
"We are similar. There are too many companies popping up in the market recently.
Partner merchants are now wiser and compare interest rates and cooperation commissions.
Whichever company offers lower interest rates and higher commissions, we will cooperate with that company.”
"Yes! Travel agencies, decoration companies, and training schools are all working together at any time.
Brother Ming, please report this to your superiors! If we don’t adjust the policy, we won’t be able to carry out this work.”
After hearing the complaints from his subordinates, Qi Xiaoming remained silent.
"Okay, let's all go to work! I understand. I'll report it to Mr. Yang right now."
Qi Xiaoming thought about it for a long time and felt that he still couldn't sit back and wait for death. He had to report it to the provincial general manager.
"Bang bang" came the knock on the door. Yang Pengfei put down his mobile phone and said: "Please come in!"
Qi Xiaoming pushed the door open and said with a smile: "Mr. Yang!"
"Oh, Xiao Qi is here! Sit down quickly, I'm looking for you."
Yang Pengfei was very kind and waved to Qi Xiaoming to sit down and chat.
After Qi Xiaoming sat down, Yang Pengfei straightened his body, said seriously with a straight face:
"Xiao Qi, I value you very much. I was the one who promoted you to supervisor against all objections.
Look at your performance this month, is this how you repay me?"
The more Yang Pengfei spoke, the more serious his tone became. Qi Xiaoming became a little restless and said with a grimace: "Mr. Yang, don't be angry. There is a reason for the poor performance this month."
"Let me tell you, young people should not always think about evading responsibility when doing things.
It is inevitable to encounter difficulties when doing work. When faced with difficulties, we must find ways to overcome them.
You should look for the reasons within yourself more and don’t always blame this and that.”
Yang Pengfei tried his best to talk to him in a pleasant manner. Although he was in his forties, he understood young people very well.
Knowing that this generation of post-90s employees is difficult to manage and there are oversights in their work, he tries his best to provide gentle education.
Those born in the 1990s have a bad temper and will probably resign if they suffer even the slightest grievance.
If the employee turnover rate is too high, it will greatly affect the performance of the branch, and it will also affect your year-end bonus and management options.
He still values Qi Xiaoming very much. He is not very old, only in his early twenties, but he is indeed a good person in business.
Except for the poor performance this month, it has firmly occupied the top sales position in the previous months.
He still thought highly of his generals. He asked again:
"Then tell me, what's the reason?"
Qi Xiaoming also told Yang Pengfei about the experiences of several of his employees.
After hearing this, Yang Pengfei frowned and murmured to himself: "You have also encountered this situation."
"Who else have we met?" Qi Xiaoming asked subconsciously.
Yang Pengfei glanced at him, thought for a while, and told him: "In addition to our Central Plains Province, I have also talked with several other provincial presidents, and they have also encountered malicious competition."
"Um... what should we do? Should we report it to the headquarters? If this continues, all the customers will be gone."
Yang Pengfei waved his hand and said, "Okay, don't worry about it. I will naturally report it to you.
You go get busy first! Let’s overcome this difficult period first.”
Yimindai CEO Chen Shaojie’s hair has almost turned gray during this time.
The company's performance was stagnant and even declining, and branch general managers from all over the country were complaining to him.
It is said that encountering malicious competition requires the headquarters to allocate resources and increase some subsidies.
After Yimindai was spun off from Yimin Financial Services Group, it has never raised funds again.
Although it has entered a profitable state, the profit is not high, and expansion must be taken into consideration at the same time.
Chen Shaojie is really worried when it comes to things like the subsidy war.
In desperation, Chen Shaojie still asked Zhang Yida for help.
"You said Qiandu, Ctrip and others are increasing subsidies for consumption installments?"
Zhang Yida's worries turned out to be true, and these tycoons came up with the most commonly used artifact in the Internet industry - user subsidies.
“In addition to providing interest-free and interest-reduced subsidies to users, they also increase commission rebates for cooperative merchants.
This approach is to exchange strategic losses for the market."
Chen Shaojie was quite angry. These big companies were bullying people just because they were rich.
Zhang Yida didn't say anything. He was thinking, how long will this subsidy war last? Should Yimin Dai follow up? If so, whose money will be spent?
Chen Shaojie did not interrupt Zhang Yida's thinking, but kept looking at the ground silently, waiting for Zhang Yida's reply.
"What do you think? Should we stick to scenario installments or cash loans without consumption scenarios?"
Zhang Yida is going to test Chen Shaojie to see his understanding of business.
"In the short term, cash loans are definitely the most profitable. But in the long term, taking into account regulatory policies, I think we need to move closer to scenario-based installments, so that the foundation will be more solid and the business will be more compliant."
Chen Shaojie's judgment on the future direction was still very accurate, and Zhang Yida nodded repeatedly.
Scenario installments are loans with consumption scenarios and specific purposes, such as: education installments, travel installments, decoration installments, rental installments, medical beauty installments...
The characteristics of cash loans are: no scene support, no designated use, no customer group restrictions, and no mortgage.
Among online loans in previous lives, the most mixed and strictly regulated ones were cash loans.
"Well. Since you have a clear understanding, I won't say more.
Since they are going to start a subsidy war, we have to bite the bullet and take the fight.
Let’s launch a funding round!”
Zhang Yida also said helplessly, wouldn't it be good for everyone to make money together happily?
Because I have two stinky money, I have to muddy the water.
If you don't want me to have an easy time, then no one can have an easy time.
Zhang Yida judged that subsidy wars would not become the norm.
These troublemakers only make a high profile when entering the market. After a while, when the losses are serious, they will become more honest.
Yimindai is trying to resist their three axes, and it will be fine if you get through it.
It’s not that they are deliberately targeting Yimin Dai, they are targeting the entire consumer installment industry.
…
"Yimindai's revenue in 2014 was 97 million yuan, and its net profit was 22.5 million yuan; in the first three quarters of 2015, its revenue was 1.68 billion yuan, and its net profit was 280 million yuan.
Compared with 2014, net profit margin has declined.
There are two reasons for this. First, this year we have been setting up branches in various places to expand more consumption installment scenarios;
The second is that the capital cost is too high. The capital cost of Ruimin Financial Management wholesale to Yimindai is 15%.
However, these situations will improve next year. We have already expanded many consumption installment scenarios, and the pace of expansion will slow down.
In terms of financial cooperation, bank funds and trust funds have been gradually introduced, and ABS bonds will be issued in the future. The cost of funds will drop from 15% to 7%-8%, or even lower..."
In the Yimindai office, Chen Shaojie was introducing the business situation of Yimindai to several investors present.
"Mr. Zhang, our China Merchants Group is very optimistic about the fundamentals of Yimin Dai.
If the valuation is reasonable, we are very willing to buy a share."
A leader of China Merchants Group turned to look at Zhang Yida and said with a smile on his face.
Nowadays, more and more state-owned enterprises and central enterprises have established investment departments or investment funds, all of which are embracing the Internet era.
Their China Merchants Bureau finally found a rare and profitable Internet company, and they would not miss it easily.
"Mr. Zhang, how much is Yimindai's valuation? Please quote a price. Our CITIC Industrial Investment Fund is also very interested in investing."
The head of the investment department of CITIC Industrial Fund also jumped out to express his position. He had heard about the four major banks’ investment in Ruixiang.
CITIC is only a joint-stock bank and is no richer than the four major banks, but it still has no problem investing in Yimin Dai, which is much smaller in size.
“Yimin Dai will also start financial cooperation with China Merchants Bank and CITIC in the future.
I will also give you both a preferential price. Calculated based on 30 times PE, the pre-money valuation is RMB 11.2 billion, equivalent to US$1.8 billion."
"Mr. Zhang, please wait a moment, let us ask for instructions."
The people from CITIC Private Equity Fund and China Merchants Group left the office and called for instructions. They came back soon.
"Mr. Zhang, we reported it to our superiors. They think 30 times PE is too high. If it were 20 times PE, we could sign the contract now."
Said the investment manager of CITIC Industrial Investment Fund.
Seeing Zhang Yida frowning and saying nothing, he added: "If Mr. Zhang agrees to this condition, CITIC Bank can grant Yimin a credit line of 5 billion yuan.
However, Yimindai still needs to pay a certain risk deposit or pledge shares.”
"The same goes for China Merchants Bank. China Merchants Bank can grant a credit line of 5 billion yuan to Yimindai."
The head of the investment department of China Merchants Group also looked at Zhang Yida with a smile.
Zhang Yida thought for a moment and finally agreed.
With the RMB 10 billion credit line from the two major banks, Yimindai’s capital costs will be reduced by half, and its profitability will be significantly improved.
The two major investors had calculated this accurately and were so confident in bargaining with themselves.
Of course, this is also a win-win solution. The two major banks have more lending channels, and Yimindai has also obtained cheaper funds.
The pre-money valuation of US$1.8 billion was just what Zhang Yida was talking about, so he didn’t expect anyone to agree to it.
In addition, if we don’t hold on to these two thighs tightly, when financial supervision comes in two or three years, the valuation of Yimindai will be cut to the instep and no one will want it.
After conducting a series of due diligence, Yimindai obtained a strategic investment of US$300 million from two major investors based on a PE of 20 times and a pre-money valuation of US$1.2 billion.
CITIC Industrial Investment Fund and China Merchants Investment each invested US$150 million, bringing the post-investment valuation of Yimin Dai to US$1.5 billion.