"Yes, affected by the Zhuzhubao incident, lenders across the country are increasingly panicked.
This panic has spread to the entire industry, and many platforms have experienced runs.
Including us at Yimin Wangjin, many investors are withdrawing their investment, and the reinvestment rate after the product expires is horribly low.
In addition, congestion has also occurred in the platform’s debt transfer area.
In the past, if users wanted to withdraw their capital midway, they would just transfer the debt, and it would be transferred within a few minutes.
But now a user has transferred it for a day or two, and no one else has come to take over the creditor's rights.
Because the creditor's rights cannot be transferred, this panic has been further aggravated, and more and more users have chosen to withdraw their capital and transfer their creditor's rights.
Hey, what is this? A black sheep like Zhu Zhubao has brought down the entire industry."
Fan Hongyang reported the recent problems to Zhang Yida, his face was very ugly, and he even felt itchy with hatred when he talked about Zhuzhu Bao.
"Withdrawal and transfer are not a small problem!"
Zhang Yida muttered to himself, frowning, feeling that he still underestimated the vulnerability of domestic investors.
The slightest disturbance can cause everything to go crazy.
It is useless to think about these things now. Zhang Yida asked again: "Have you calculated it? How much impact will it have on the platform?"
Fan Hongyang looked serious and said slowly: "First of all, the monthly new transaction volume of our platform will be greatly affected.
According to speculation, the monthly turnover may drop from the current 5 billion yuan to 3.5-4 billion yuan.
Another one is the asset side. On the capital side, new funds are decreasing, which may cause a huge shortage of lending funds.
It is expected that next quarter, operating income in Q1 of FY16 will decrease by 15%-20%, and operating profit will decrease by more than 20%."
"It has such a big impact?"
Song Caiwei was also surprised. Yimin Net Finance's revenue in one quarter was more than one billion yuan. On this basis, a 15% decrease would be more than two hundred million yuan.
A fake peer was eliminated, implicating Yimin Net Financial to lose more than 200 million in income!
Zhang Yida looked at the shocked Song Caiwei and explained to her: "This is the current situation of the industry. If a boney Nomi brand falls, it will trigger a chain reaction.
With a size of more than 38 billion, Zhuzhubao is too big, so its impact and industry shock are also very large, basically attracting the attention of the whole society.
We, Yimin Net Finance, are doing well and have a solid foundation, but this cannot shake our foundation.
Those small and medium-sized platforms are in dire straits, and a large number of them may collapse.
Especially those that operate irregularly and engage in maturity mismatches and capital pools.
This large-scale run on the industry may trigger a series of redemption crises."
When he said these words, Zhang Yida was also a little lucky. Fortunately, he adjusted the company's products and operating strategies as early as possible.
In the early days, in order to pursue development speed and scale, Yimin Wangjin did everything possible to split bids and mismatch deadlines.
But last year, Zhang Yida ordered a major rectification of the company in order to resist uncontrollable risks.
Zhang Yida still has lingering fears when he thinks about it now. If he had followed the wild path of the previous two years, I'm afraid he would have been forced to the rooftop by the wave of bank runs!
"Have you thought of an effective way to deal with it?" Zhang Yida asked Fan Hongyang.
Fan Hongyang looked embarrassed and said: "I just want to do some marketing activities to offset the impact of capital outflow."
"Don't!"
Zhang Yida quickly interrupted Fan Hongyang and explained: "That might be counterproductive. Users thought our platform could not survive.
This is how many running platforms do it. They do a lot of marketing before running away.
I don’t want Yimin Wangjin to be misunderstood by users.”
"Then let's hold a press conference?" Fan Hongyang suggested again.
"That's inappropriate. We didn't do anything wrong. What do we need to explain?" Zhang Yida objected.
"Then what should we do?" Fan Hongyang also feels a headache now. This is not okay, and that is not okay either.
"The top priority is to rebuild investor confidence." Zhang Yida put forward his own idea and asked Fan Hongyang: "How much money does the company have on its books now?"
"Excluding the US$800 million in loans from our own funds, there are still US$420 million in working capital," Fan Hongyang replied.
"Which banks are there? Ask them to issue a certificate of deposit, and then post the certificate on their website."
Fan Hongyang scratched the back of his head and asked Zhang Yida with a smile: "Is this possible? Revealing family wealth? Give investors confidence?"
“I can’t say it will definitely be effective. Compared with the current amount of 26 billion to be collected by Yimin Wangjin, this amount of liquidity can only cover 10% of the debt.
But this is not the most important thing. The most important thing is that we have to stand up and express our attitude."
Fan Hongyang thought for a while and asked again: "Mr. Zhang, you mean to show users that our platform is open and transparent through this kind of financial disclosure. Is that what you mean?"
"Yes. That's right. At times like this, the more secretive you are, the more secretive you are.
Although our liquidity is not enough to cover all of our claims, our risk exposure is very high.
But there is absolutely no problem with more than 2 billion working capital to cope with daily operations.
We just want to tell users: Yimin Wangjin has money, is not short of money, and will not run away."
"We are a listed company and our financial data are all public, right?" Fan Hongyang asked again. He didn't know why Zhang Yida went to such unnecessary lengths.
"Some users don't trade in stocks, so they definitely don't know! And we are a US stock market, so there are even fewer users who know our specific financial data.
We ask the bank to issue a certificate of deposit, which is simple and clear to users."
Fan Hongyang said: "Okay! I'll make arrangements right away."
"Don't leave yet." Zhang Yida stopped Fan Hongyang, who was about to leave, and then said: "Open a live broadcast function on the Yimin Wangjin APP."
…
"Hey, what is that camera?"
In the morning, as soon as Jinyou employees of Yimin Network entered the company's front desk, they noticed a camera above their heads and asked curiously.
"You didn't read the open letter to all employees of the company last night, did you? This is for live broadcast. Our company has installed many cameras in the office area." A colleague beside him explained to him.
"Why install cameras? Does this count as snooping on employees' privacy?" an employee said angrily.
"It doesn't count. There are so many people in the company working here, so it's open to the public. It's not a live broadcast at your home." Others retorted.
"Our company is quite trendy. We live broadcast the company's daily work. We are not afraid of leaking secrets. Our competitors will spy on the company's secrets."
"Not because of the impact of Zhuzhubao, our company's stock price plummeted by nearly 20%. This move is to restore market confidence and show our company's attitude not to run away."
"It's also incredible. Who came up with this idea?"
"I guess it's Mr. Zhang. I saw him coming two days ago. Then Mr. Fan started organizing people to lay out cameras."
"Hehe! Mr. Zhang is indeed a young man with quite avant-garde ideas."
…
Users of Yimin Wangjin who log in to the APP will receive a software update reminder.
After they updated the software and logged in, many users found that the software had an additional service - a live broadcast viewing entrance.
Click on the entrance to enter, and many live broadcast pages are loaded.
A live broadcast page looks like a front desk, with the logo of Yimin Netjin printed on it, and two beautiful ladies sitting there upright.
A live broadcast page is like an open office area, with densely packed people sitting in front of computers and working.
Several other live broadcast pages are also office areas, with many people working in front of computers.
Only one live broadcast page is black and has not been officially opened.
The barrage also started to pop up.
"666, Yimin Internet Finance has come up with a new trick."
"What is this? Online live broadcast of office work?"
"In order to prove that he is not a rubbish platform like Zhuzhubao, Mr. Zhang also took great pains."
"I feel like this is pretty good! When I have nothing to do, I can go to the APP and see if anyone from Yimin Wangjin has gone to the building. I can sleep well."
"Pioneering P2P online live office work."
"In special times, it should not become the norm."
“There are also several deposit slips posted on the homepage of Yimin Wangjin. There are so many 0’s.”
"I've done the math, it's more than 2.6 billion. He's really rich."
"Okay, okay, I know you are not short of money and won't run away."
…
"Hello everyone, I am Xiaomei, a staff member of the operations department of Yimin Net Financial."
The last unlit live broadcast page on Yimin.com suddenly lit up. A young girl dressed as an urban beauty was greeting everyone on the live broadcast page.
"Wow, such a beautiful girl, I also want to work in your company."
"Yimin Wangjin was not managed well and carried out a major transformation, organizing employees to live broadcast overseas to make money."
"Such a beautiful young lady, how much do you need to recharge to exchange for one?"
Xiaomei ignored all the barrages. She had a major mission and it was impossible to be disturbed by these dirty words, so she just pretended not to see them.
She made a gesture, and the camera team following her focused on the high-rise buildings behind her. She continued to introduce:
"My current location is downstairs at the Zixing Building in Haiding District, Beijing. The 25th to 30th floors of this building are also the location of the Jinjingcheng headquarters of Yimin.com.
Now let’s take everyone up there to have a look!”
Xiaomei walked into the building, and the photography team followed her into the Purple Star Building.
Taking the elevator, Xiaomei and her group went to the 25th floor.
Xiaomei said hello to the two receptionists, stood in front of the camera and introduced: "This is the receptionist of our Yimin Internet Finance Company..."
Then Xiaomei and the camera team behind her entered the open office area. She introduced to the camera: "This is the technical department of Yimin Net Finance."
Then she visited a programmer who was immersed in coding, pointed to the lines of code on the computer, and asked: "Hello, colleague, can you introduce the work you are doing?"
The programmer introduced to the camera: "Hello fellow investors, I am the technical department of Yimin Net Finance...
The work I am currently doing is APP reinforcement, which is to ensure the security of the APP and prevent passwords from being stolen and files from being tampered with..."
Xiaomei then interviewed several programmers, asked them about the work they were doing, and then asked them to introduce it to the camera to the investors watching the live broadcast.
Then Xiaomei went to the Operations Department on the 26th floor, the Risk Control Department on the 27th floor, and the Asset Duan Yimin Puhui on the 28th floor...
Several staff members were interviewed on each floor, and they gave detailed business introductions to investors watching the live broadcast.
The entire live broadcast lasted for several hours, visiting 6 floors and more than a dozen departments, and dozens of Yimin Internet Finance employees introduced their work in front of the camera.
Many Yimin Wangjin investors watched this live broadcast in its entirety and had a clearer understanding of Yimin Wangjin’s business.
In the past, many investors invested in Yimin Wangjin without knowing it online. Some were introduced by friends, and some came after seeing advertisements...
Many users lack sufficient understanding of Yimin Wangjin. Where does the money they invest go? How does Yimin Wangjin operate? How many employees does Yimin Wangjin have and how many subsidiaries does it have?
Basically, I don't know anything about it.
Even if some users have a certain understanding, they are all based on hearsay or some news and information seen on the Internet, which is not comprehensive at all.
Because of this, when Zhuzhubao was abolished, the entire industry was in a state of panic, with funds being withdrawn and claims transferred.
Therefore, Yimin Wangjin organized such a unique live broadcast.
It is to shorten the distance with investors, introduce the company and business model to investors at a close distance.
Eliminate investors' distrust and misunderstandings about the company.