"I heard that you have a very good personal relationship with Mr. Shen Beipeng of Blackshirt Capital China and Mr. Huang Xin of Magnesium Group.
Can you help me introduce these two people?"
Li Taixi's big eyes shone with a light called "ambition". As soon as Zhang Yida heard this, he knew what he was planning.
OTA platform!
Before joining the venture capital industry, Shen Beipeng was the co-founder of Ctrip.
After Ctrip acquired Qunar, it firmly occupied the market leader position.
Meituan’s wine and travel business is also doing very well and is very popular among users.
In the previous life, when OYO entered the Chinese market, it was all over the place. It was "blocked" by these two giants, and OYO's franchise hotels were blocked on their respective platforms.
After OYO was so frustrated that it paid "protection fees" honestly, it got a settlement from the two OTA giants and re-listed OYO.
Zhang Yida took a deep look at Li Taixi. This person had studied the Chinese market very deeply and seemed to have been greedy for a long time.
"I can give you an introduction, but I won't be involved in your specific negotiations."
Zhang Yida doesn’t want to wade into this muddy water. In his previous life, Ctrip launched Lai Cheng and Magnesium Group launched Qingzhu, but they all ended up building independent hotels.
Now he just wants to find a suitable opportunity to sell his shares to Emperor Sun.
"Thank you very much."
Li Taixi was very happy. He was willing to accept Zhang Yida's private investment last year because of the latter's connections in China.
"It's just a trivial matter. I look forward to the day when OYO becomes a super unicorn."
Li Taixi said very confidently: "Don't worry! Your investment will definitely get a very generous return."
…
Zhang Yida returned to China by plane during his global industrial inspection trip.
However, he did not return to the capital, but went to Pengcheng.
"Mr. Zhu, nice to meet you."
At the front desk of the company with the four characters "Transsion Holdings" printed on it, Zhang Yida shook hands enthusiastically with a middle-aged man in his forties.
Zhu Zhaojiang was a little confused. The girl at the front desk just came to report that Zhang Yida, the chairman of Ruixiang Group, was visiting.
Zhu Zhaojiang had heard of Zhang Yida and knew that the latter was an Internet upstart who had emerged in the past two years.
His subsidiaries Ruixiang, Magnesium Group, and Didi are also known as the three small giants of the mobile Internet. Compared with BAT, they have the title of "RMD".
Although I don’t know why Zhang Yida came here, considering that the other party is a super rich man and owns a company listed on the US stock market.
So Zhu Zhaojiang personally went to the front desk to greet Zhang Yida.
"Hello, Mr. Zhang, you are so famous that you are much younger and more handsome than you appear online and on TV."
Zhu Zhaojiang worked in sales when he was young, and his eloquence was also first-class.
Zhang Yida pursed his lips and smiled. He liked to deal with people like this who spoke nicely.
"Mr. Zhang, please come inside."
Zhu Zhaojiang raised his hand and greeted Zhang Yida.
"Okay." Zhang Yida turned to the lady at the front desk of Transsion Holdings and smiled, "Thank you!"
The young lady at the front desk was so happy that she would have rushed over to ask for an autograph if she hadn't noticed that the boss was here.
She "worships" Zhang Yida so much that she really wants to tell Zhang Yida:
I am your loyal fan. I ride Huimin bicycle to and from get off work every day, go shopping at Pinduoduo, play TikTok after get off work, buy funds from Toulonghui, and purchase P2P financial management from Yimin Wangjin...
Zhang Yida and his entourage followed Zhu Zhaojiang into the conference room. The latter asked Zhang Yida and his entourage to sit down, and asked his secretary to make a few cups of coffee and bring them in.
"Mr. Zhu, I took the liberty of visiting today because I want to invest in Transsion Holdings on behalf of Ruixiang Group."
Zhang Yida did not play tricks on others, and spoke straight to the point.
It was almost as Zhu Zhaojiang expected. Zhang Yida did not know him personally and had no personal relationship with him. He must have come to Transsion Holdings Company for official business.
But the "investment" mentioned by Zhang Yida still surprised him a little. He smiled and said: "Transsion does not have a good reputation in the industry. Mr. Zhang, why do you like us?"
Looking at Zhu Zhaojiang's curious eyes, Zhang Yida said calmly: "Transsion Mobile is still very well-known in the African market. It is a very good mobile phone company and is worth investing in."
Zhu Zhaojiang was very satisfied with the praise of Zhang Yida, a young hero. Although his Transsion mobile phone was not well-known in China, it was a well-known brand-name product in the distant "Africa".
"Transsion mobile phones are somewhat famous in Africa, but Mr. Zhang, you personally took action, which really surprised me."
Zhang Yida knew that this person was trying to find out Mingruixiang's investment motives, so he said very frankly: "Ruixiang Group wants to enter the African Internet financial market, and we want to start some close cooperation with Transsion."
Seeing that Zhang Yida had expressed his intention so quickly, Zhu Zhaojiang was a little surprised and asked with a smile: "Is it mobile payment?"
“Mobile payment is just the first step, and more financial services will be developed in the future.
At present, Ruixiang has entered five countries including India, Indonesia, Singapore, Japan and South Korea.
Africa is our next target."
Zhang Yida had a confident smile on his face. He looked at Zhu Zhaojiang and laid out his strategic intentions.
After Zhu Zhaojiang listened, he was also shocked by Zhang Yida's "grand blueprint". He asked: "Mr. Zhang, do you want to spread mobile payment all over the world?"
"Of course." Zhang Yida said calmly, "However, the specifics will depend on the policies and laws and regulations of each country. If conditions permit, Ruixiang is willing to enter more countries and regions."
"Okay, since Mr. Zhang is so candid, I'll be more forthcoming."
Zhu Zhaojiang asked again: "Mr. Zhang, how much do you value our Transsion Holdings? In addition, how many shares need to be released?"
"Here, Mr. Zhu, I need you to introduce your company's operating and financial data in detail."
Zhu Zhaojiang then asked his secretary to get the financial reports for 2014 and 2015, handed them to Zhang Yida, and introduced:
“Our shipment volume in 2014 was 46 million units, and our shipment volume in 2015 was 50 million units.
We occupy about 30% of the African mobile phone market. The unit price of the products sold in the African market is around 500 yuan, of which feature phones account for about 60%..."
Zhang Yida looked at the financial report carefully, and it said:
In 2014, revenue was 5.52 billion yuan and net profit was 36.6 million yuan;
The operating income in 2015 was 7.457 billion yuan, with a net profit of 57.96 million yuan;
Total assets are 4.74 billion yuan and net assets are 1.438 billion yuan.
Zhang Yida said: "The valuation of the electronics industry is generally 30-40 times PE. Let's give Transsion a valuation of 40 times. Multiply 40 times 57.96 million, and how about a pre-money valuation of 2.318 billion?"
Zhu Zhaojiang was silent for a while, shook his head and said:
"Transsion has maintained a revenue compound growth rate of more than 40%. We estimate that shipments in 2016 will reach more than 80 million units, revenue will exceed 10 billion yuan, and net profit will exceed 80 million yuan.
Based on 40 times PE, I can accept the valuation of 3.2 billion yuan."
Zhang Yida frowned, and the valuation suddenly increased by nearly 900 million yuan.
Considering the market value of Transsion in its previous listing of over 40 billion yuan and its leading position in the African market, Zhang Yida decided to agree.
However, I have to ask him for conditions. Zhang Yida added: "I can agree to this valuation, but I want 30% of the shares."
"No," Zhu Zhaojiang shook his head repeatedly, "We don't need much money for up to 20% of the shares."
Zhang Yida frowned and said: "Although Transsion is currently making all the difference in the African market, when manufacturers such as Huawei, Dami, and OV come to their senses and start paying attention to the African low-end phone market, it will be hard to say who will win."
Zhu Zhaojiang is not angry either. Compared with the mobile phone manufacturers mentioned by Zhang Yida, Transsion is indeed like a motley crew, but Transsion also has its own advantages.
He said: "They are all making mid-to-high-end mobile phones, who is willing to go to Africa to earn this hard money?
Even if they enter the African market, I'm not afraid.
Transsion was established in 2006. Since its establishment, we have been targeting the African market.
Now it has been deeply involved in the African market for 9 years. From product research and development, publicity, channels to after-sales, everything is carried out locally in Africa.
We even have our own mobile phone production factory in Africa.
In terms of cost, we are not afraid of any mobile phone manufacturer at all. The economic level and people's income level in Africa determine that this is a world of low-end smartphones and feature phones."
Zhu Zhaojiang is very confident. He has been inseparable from mobile phones since he entered the sales of waveguide mobile phone BP dryers in the 1990s.
Bird mobile phones were once the number one brand in China and the leader in the industry. Just like the old advertising slogan - Bird mobile phones are the fighter among mobile phones.
Later, when the fighter jet crashed, he, who had served as the executive vice-premier of Bird Mobile, was unwilling to accept it and founded what is now Transsion Mobile with several colleagues.
Over the years, he has been holding his breath and wanted to revive the glory of waveguide mobile phones.
Speaking of which, he once served as the executive vice president of Bird Mobile Phones and is still a big shot in the industry.
But now, in China, Huawei, Rice, and OV, which have received overwhelming advertising, have long overshadowed him. Who still remembers who he is, Zhu Zhaojiang?
Although Transsion mobile phone is known as the "King of Africa", to put it bluntly, it is a "barbaric land" that Apple, Samsung and the four major domestic manufacturers look down upon.
That is to say, the selling point of Transsion mobile phones is that they are feature phones and low-end smartphones. In terms of making money, the domestic market, the European and American markets, are the real golden treasures.
“Currently, domestic manufacturers, whether Samsung or Apple, are all trying to seize the incremental market.
Once the incremental market is divided up and enters the stock market stage, they will definitely be thinking about the African market.
I suggest that Transsion should focus more on technology research and development to improve its own moat.
I see that Transsion’s annual R&D investment only accounts for 3% of its revenue, not even that, just over 2, and it invests one or two billion in R&D every year. In the mobile phone market, this is really... a bit small.
!”
Zhang Yida wanted to say "a little shabby", but when the words came to his lips, he changed his tune.
Chuanyin has so much strength, and calling people shabby is really too sarcastic.
Zhu Zhaojiang knows that "research and development" has always been a link that Transsion has neglected. Without it, the profits of feature phones and low-end smartphones cannot support the huge investment in mobile phone research and development.
With a net profit of tens of millions per year, if we increase research and development, do we still need to eat?
"Mr. Zhang, I admit that we have neglected technology research and development too much. If we receive investment from Ruixiang, we will definitely pay attention to this aspect.
In fact, our marketing and user experience at Transsion are quite good."
Seeing that Zhang Yida was listening attentively, Zhu Zhaojiang prepared to show off and continued:
"In Africa, our "wall-painting" model is very effective. It's a little low, but it's better than advertising on TV.
In addition, Transsion has been working hard to win reputation among users by establishing a complete after-sales system.
We are the first foreign mobile phone company to establish an after-sales service network in Africa. Mobile phone repair personnel can be on call at any time...
In addition, we have also put a lot of effort into our products.
Africans like to listen to music and loud calls, so we launched a "music phone" with a loud sound and a radio function to meet their needs for singing and dancing outdoors;
In Africa, due to backward infrastructure, charging is inconvenient. The mobile phone we launched can have a standby time of up to one month;
There are many operators in Africa, and calls across operators are expensive, so we have launched dual-SIM dual-standby or even four-SIM four-standby;
The most interesting thing is that the skin color of Africans is too dark, and they often "can't find themselves" when taking photos at night. In response to this situation, we have improved the camera function of mobile phones in dark light environments.
We have even launched an African version of beauty and filters, which use eyes and teeth to position the image and enhance the exposure to help users take photos of "chocolate skin."
…
It is precisely because of the many functional improvements and product advantages mentioned above that we are widely loved by African users."
After hearing this, Zhang Yida nodded slightly, and indeed he agreed with the old saying: any success is never a fluke.
"Okay!" Zhang Yida was persuaded and replied: "Just do what you want, invest 800 million yuan, and hold 20% of the shares."