“Damn it, Goldman Sachs didn’t even say hello and just issued an announcement saying it was going to reduce its holdings. This is so unethical.”
At around 9 p.m., Fan Hongyang walked into Zhang Yida's office cursing.
Only then did Zhang Yida remember that he had forgotten to communicate with Goldman Sachs. Considering the time difference, it was still late at night and early morning in the United States a few hours ago, so he did not call Robert.
It is now 10:30 a.m. Eastern Time, and the Nasdaq has just opened. As a result, Goldman Sachs issued an announcement to reduce its holdings.
"How much did they announce they would reduce their holdings?"
What Zhang Yida is more concerned about is the amount of reduction. If the amount is large, it will definitely cause the stock price to plummet.
"Goldman Sachs announced that it will reduce its holdings of 5 million ADSs, accounting for approximately 12.5% of the shares it holds. After the reduction, it will still hold 35 million ADSs of Yimin Wangjin, accounting for approximately 14.93% of the total share capital."
Zhang Yida touched his chin, none of these foreign devils were good!
U.S. stocks are different from A-shares. A-shares reduce holdings first and then make announcements, while U.S. stocks make announcements first and then reduce holdings.
Goldman Sachs’ reduction in holdings this time was too drastic. The 5 million ADS shares accounted for a little more than 2% of the total share capital of 234.5 million ADS shares.
"What is our stock price now?" Zhang Yida asked.
"$26.72 is only a little higher than the issue price of $25. A few points of decline may fall below the issue price."
Speaking of this, Fan Hongyang's face was full of sorrow, and he said again: "Domestic mutual financial regulatory policies have not been implemented, and foreign investment institutions have always stayed away from our company.
The trading volume of the stock is insufficient, and the stock price cannot rise!”
This matter also gave Zhang Yida a headache. If the stock price fell so low, it would be difficult for him and the company executives to cash out.
Cashing out at this time, coupled with the "escape" of major shareholder Goldman Sachs, it is not impossible that the stock price will be cut in half.
"Lao Fan, let this be the case! No matter how much the stock price drops, don't care.
We should focus more on the company's management. When the situation in Southeast Asia escalates, the stock price will definitely improve.
By that time, it won’t be too late for us to cash out.”
Zhang Yida began to appease Fan Hongyang. Seeing that the company was listed, the shares could not be liquidated.
He guessed that executives like Fan Hongyang must be very anxious.
Wealth and freedom are right in front of you, but you don't dare to act rashly. I'm afraid everyone feels like a cat's paw.
"Mr. Zhang, I know it even if you don't tell me. Let Goldman Sachs cash out first. It doesn't matter if our management slows down.
Where others are, I will do the work."
Fan Hongyang's general knowledge was very useful to Zhang Yida. He said: "That's it. I'll call Robert and ask them what Goldman Sachs wants to do."
In front of Fan Hongyang, Zhang Yida dialed Robert's phone number. Through the phone, Zhang Yida heard Robert's funny greetings:
"Mr. Zhang, good morning!"
"Mr. Robert, Beijing time, it's night now."
Robert smiled awkwardly: "I'm sorry, I forgot that Beijing time is half a day ahead of Eastern Time."
"Goldman Sachs wants to reduce its holdings of 5 million ADS shares?" Zhang Yida didn't bother to say a few words and went straight to the topic.
The announcement has been made, and the reduction of holdings must not be hidden from Zhang Yida. Robert admitted frankly:
"Yes, Goldman Sachs invested more than US$400 million in Yimin Net Financial. For risk management considerations, we decided to settle part of the investment."
"Five million ADS shares are too much, right? If you make big moves just after the lifting of the ban, I'm afraid it will cause an avalanche of stock prices!"
Robert laughed "haha" and said: "On this point, please rest assured, Mr. Zhang, Goldman Sachs has smart traders and securities trading methods, which will not cause too serious stock price fluctuations."
Robert's shamelessness once again refreshed Zhang Yida's perception of capitalists. As long as they are profitable, these people will dare to tell any nonsense.
The 5 million ADS shares account for nearly 15% of the issued shares of Yimin Wangjin. Can the stock price not fluctuate after being sold?
"Okay, Mr. Robert, let's not dwell on this topic. I just want to ask, does Goldman Sachs have any plans to reduce its holdings in the near future?"
Zhang Yida was too lazy to talk to him and asked directly if Goldman Sachs had any big plans.
"No, we are still very optimistic about Yimin Net Financial. However, we invested more than 400 million US dollars earlier, which is a relatively large amount. According to our internal risk management regulations, part of the investment must be recovered."
Zhang Yida said "Okay" and then said: "I have a suggestion. When your company plans to reduce its holdings, it is best to notify us.
Otherwise, we will be in a hurry just like today."
Robert promised "good, good, good" on his lips, but he didn't agree with it in his heart.
After hanging up the phone from Robert, Zhang Yida said to Fan Hongyang: "I think Goldman Sachs just wants to make a profit and run away, and has no intention of holding our stocks for a long time.
We need to be mentally prepared for a long-term decline in stock prices."
Fan Hongyang's heart tightened, and he frowned and said: "That's true, they didn't even communicate with us and just issued a shareholding reduction announcement.
I’m afraid I want to clear out the stocks as soon as possible.”
"Yes, compared to the more than 400 million US dollars when they bought the shares, the market value of their positions now exceeds more than 1 billion US dollars.
Until the stock price is cut in half, they can’t lose money.”
Zhang Yida looked gloomily at the brightly lit Zhongguancun Software Park outside the floor-to-ceiling windows, feeling in his heart that listing on the market is not the end, there is still a long way to go.
"Then do we need to make any preparations?" Fan Hongyang asked.
"Just keep walking at our own pace!"
…
"With revenue of 1.85 billion yuan, we have completed the Series B financing round."
Zhang Yida looked at Huimin Travel's financial report and praised it with a smile.
But when he saw the loss figure, he couldn't laugh anymore and exclaimed in surprise: "Loss of more than 3 billion yuan?"
Huang Xiaofeng smiled awkwardly and said: "The main reason is that the depreciation of bicycles is too great, and the loss on this is more than 2.5 billion yuan.
In addition, the offline dispatching team is too large, distributed in more than 300 cities, with a total number of more than 15,000 people. In terms of personnel salary, nearly 1 billion is spent a year.
This is due to the low labor costs of personnel in third- and fourth-tier cities, which has lowered the average salary of offline dispatch teams.
For example, in first-tier cities, it is difficult to recruit people with 8,000 yuan a month.
Our requirements for the offline dispatch team are not low. They have to carry bicycles every day, have good physical strength, be able to drive, and be able to simply repair bicycles..."
"How much cash is there on the books?" Zhang Yida asked.
"It cost RMB 5 billion to manufacture 5 million new cars, the acquisition of Baimo consumed US$180 million in cash, injected US$100 million into Green, purchased RMB 750 million for dispatching light trucks from various places, and opened an operation center...
There is still... 1.5 billion yuan in cash on the account."
Zhang Yida wanted to curse, "Damn it, it has only been so long, and the US$1.5 billion and more than 9 billion yuan in financing have almost been spent."
“Can the company’s monthly income and expenses reach a balance without calculating bicycle depreciation?”
Zhang Yida sighed, as the shared bicycle industry has grown in scale, it is also a bottomless pit to make money!
"It's still a little bit worse. If revenue increases by another 50% to more than 2.7 billion yuan, without calculating depreciation, it can basically reach a balance with expenditures, and even cash flow can be positive."
Huang Xiaofeng was also sweating. He thought that Zhang Yida would curse after hearing the remaining cash figure in the account, but it turned out not to be the case. Instead, Zhang Yida was terrifyingly calm.
"2.7 billion yuan, 7 million bicycles, each generating one yuan in revenue a day, which is more than 2.5 billion.
Coupled with the advertising cooperation of Ruimin Financial Management, 3 billion is possible."
Zhang Yida settled the accounts there.
Huang Xiaofeng reminded: "Ruimin Financial Management's advertising cooperation with revenue of several hundred million is not a big problem. The difficulty is the cycling income."
"Are they still subsidizing?" Zhang Yida asked with a frown.
Huang Xiaofeng sighed: "Leech Financial promoted the merger of Yonganxing and Hello Bicycle, and then integrated several small businesses.
In first- and second-tier cities, they have been competing with us. Therefore, in first- and second-tier cities, we can only implement the free riding strategy.
We are not greatly affected in third- and fourth-tier cities, but our volume and income are only one-third of those in first- and second-tier cities.
If we can implement absolute charging in first- and second-tier cities, revenue can be tripled from the current level."
"This toad doesn't bite, it's disgusting!"
Huang Xiaofeng uttered another golden sentence, and his brows almost knitted together.
"Does our current market share reach 70%?" Zhang Yida asked.
"It should be more than that, probably between 70% and 80%. Whether it reaches 80% or not, I'm afraid we have to look at the survey report of the consulting company."
Huang Xiaofeng also knew that the company was also making a bet, and investors required it to achieve revenue balance or an 80% market share.
"Where's Didi?" Zhang Yida asked again.
“It’s still the same, just a few hundred thousand vehicles, and it hasn’t expanded.
But Uber seems to be on its last legs, and once Didi is freed up, it’s hard to say what will happen next.”
Zhang Yida felt a little bad when he heard this, so he said, "What do you think about us starting a ride-hailing business?"
"Ah?" Huang Xiaofeng said in surprise: "Can we do it?"
"Why can't we do it?" Zhang Yida explained: "We now have nearly 100 million users. With such a large amount of traffic, it can be used as a ride-hailing service or as a taxi aggregation portal."
"Isn't Chen Wei friends with you?" Huang Xiaofeng asked.
“He wants to come to share bikes and interfere, so I don’t have to show mercy to him.
Besides, friendship is friendship and business is business. The two cannot be confused.
Our top priority is to survive ourselves first.
We must balance the revenue of shared bicycles, otherwise this game will no longer be viable."
Looking at Zhang Yida's heavy expression, Huang Xiaofeng also knew the seriousness of the situation.
Even Mr. Zhang, whose financing is as simple as eating and drinking, said he could no longer play.
Huimin Travel Group only received US$1.5 billion in financing, and less than half a year later, the money was at the bottom.
No matter how much money the venture capitalists burn, they will not dare to end easily.
Huimin Bicycle must prove its ability to survive independently, rather than relying on a steady stream of financing games.
Whether it is increasing cycling income or expanding ride-hailing business, the goal is to help the company reach revenue balance as soon as possible.
"How about I go talk to them? Negotiate to stop the subsidy war?" Huang Xiaofeng made a suggestion.