Lan Lan took the lead and brought a group of investors to Huimin Travel Group.
Huang Xiaofeng came forward to receive Lan Lan and his party. In addition to the Ruixiang Industrial Investment Fund represented by Lan Lan, there were also investors such as Temasek, CITIC Industrial Fund, Futu Kang, and Penguin.
After reading the operating statements and financial statements provided by Huang Xiaofeng, several major investors frowned.
Penguin is an old shareholder, so Ren Yu is not unfamiliar with the financial situation of Huimin Travel Group. He has known about the huge losses for a long time, so he looked as normal after reading the report.
Lan Lan also accepted Zhang Yida's instructions in advance, so she didn't say anything after reading the report.
The investment representatives of CITIC Private Equity Fund, Temasek, and Futu Kang were a little restless.
Especially Futukang, who started out in the manufacturing industry, attach great importance to corporate profits.
Futukang Investment Representative Zhang Quan asked directly: "Didn't Huimin Travel just raise 1.5 billion US dollars? There is only 100 million left on the account? Or is it RMB?"
If it weren't for Zhang Yida's fame, he would have wanted to ask Huang Xiaofeng directly: Have you transferred funds?
Huang Xiaofeng also expected that the employer would ask this question, so he was well prepared.
He shook his head calmly and said with a smile: "Huimin Travel has launched 5 million new bicycles, which alone costs 5 billion yuan.
In addition, the purchase price of Baimo Bicycle is US$360 million, including the issuance of additional shares of US$180 million and cash of US$180 million..."
Huang Xiaofeng also did a lot of homework. Without reading the information, he listed all the major expenditures to the potential investors present.
Wei Cheng from CITIC Industrial Investment Fund adjusted the glasses on his nose and said: "If Mr. Huang is right, Huimin Travel Group has invested more than US$100 million in Green!"
He pointed to the materials placed in front of him and said, "I just looked at this pile of materials, and there is no data on Green."
Wei Cheng smiled and said, "I don't know if Huimin Travel Group made an omission in the materials, or if Green is not included in this financing?"
Other investors also turned their attention to Huang Xiaofeng to see what explanation he would have.
Huang Xiaofeng pursed his lips and smiled, looking at Wei Cheng, "Mr. Wei is really attentive, and no detail can escape your eyes."
Wei Cheng's smile remained unchanged and he didn't make any statement. He was just doing this. How could he omit such an important subsidiary company?
All public materials of Huimin Travel Group were compiled by their company and asked him to study them carefully several times.
I can’t say that I know everything about Huimin Travel. I have a very clear understanding of the general business situation and subsidiaries.
"I was about to explain this to everyone, but since President Wei asked about it, I'll just tell you straight away! Huimin Travel has split up Green, and there will be no equity relationship between the two companies in the future."
As soon as Huang Xiaofeng said this, everyone except Ren Yu and Lan Lan were a little surprised.
What impact will the absence of Green have on Huimin Travel Group?
Other investors are starting to think about this issue.
Huang Xiaofeng added: "Here, I would like to apologize to everyone first. Because the shares were cut off just a short time ago, I haven't had time to inform everyone.
If you feel that the absence of Green’s Huimin Travel Group has an impact on your investment plans, you can withdraw now.”
Investors remained silent and began to digest the news.
Without Green's Huimin Travel Group, most of its business is concentrated in China.
It should be said that in addition to joint ventures with several small bicycle brands through technology licensing in foreign countries, more than 95% of its business and assets are in China.
The color of multinational corporations has faded, which makes Wei Cheng quite disappointed.
"I'm sorry, Mr. Huang, I need to ask the company for instructions before making the next step."
As soon as Wei Cheng took the lead, other investors also expressed their intention to seek instructions from the company's superiors.
The meeting was suspended at this point, and everyone else left the office to report the news to their superiors.
Only Ren Yu and Lan Lan did not leave the office. They both knew about Green being divided and did not need to ask their superiors for instructions.
The two began to chat, and Ren Yu said with a smile: "Rui Xiang has made a lot of noise in Southeast Asia this time, raising US$2.5 billion in one fell swoop. Is Mr. Lan interested in forming an alliance with Penguin Industry Fund to cooperate in investing some money?"
project?"
"An alliance?"
Lan Lan muttered something silently in her heart. She didn't dare to make a decision. She smiled at Ren Yu, "This is a good idea, but I have to ask Mr. Zhang for permission."
"Of course!"
As the helmsman of Penguin Industrial Fund, Ren Yu is more concerned about the actions of Ruixiang Industrial Fund in Southeast Asia and even India.
I know that Ruixiang has invested in many good projects and is slightly ahead of Penguin in terms of quantity and quality.
This gave him a sense of crisis, and he decided to get closer to Ruixiang Industrial Fund and take advantage of its performance.
The two didn't chat for long, and other investors returned to the office one by one.
Even if Huimin Travel Group spins off Green, it will still be a good project in the eyes of other investors.
Not to mention its status as the king in the field of shared bicycles, it is about to open up another hole in the online ride-hailing industry.
Venture capital companies will not miss out on such high-quality projects just because they cut Green.
However, since Green has been cut, the valuation must be discounted.
At this point, when several investors went out to ask for instructions from their superiors, they met and reached a preliminary consensus.
"Mr. Huang, there is no problem with CITIC Industrial Investment Fund and will participate in this round of financing of Huimin Travel."
Wei Cheng took the lead in making a statement, and other investors also responded that they would continue to participate in financing.
“In terms of valuation, the last round of Huimin Travel was invested by Penguin, and the valuation at that time was US$4 billion.
It has only been half a year, and various data of Huimin Travel have achieved leap-forward breakthroughs.
There are more than 100 million registered users, more than 21 million daily active users, and more than 30 million daily riding orders..."
Huang Xiaofeng also introduced various business data of Huimin Travel, including the newly launched aggregate taxi and ride-hailing data.
"But Huimin Travel has cut off Green. I heard that Green is developing very well in North America, covering dozens of cities.
Excluding Green, I think Huimin Travel’s valuation will be reduced by US$1 billion.”
Futukang Zhang Quan’s speech won unanimous approval from other investors.
They all expressed their support for Zhang Quan.
"Excluding Green, Huimin Travel is valued at US$3 billion, which Temasek recognizes."
“CITIC Industrial Fund also recognizes it!”
The people who spoke out turned their attention to the two people who didn't speak out, Ren Yu and Lan Lan.
Ren Yu coughed twice, "The valuation of US$3 billion has triggered the ratchet clause."
Lan Lan did not express his position and turned his attention to Huang Xiaofeng.
Huang Xiaofeng has participated in several rounds of financing for Huimin Travel with Zhang Yida, so he naturally knows that he must show the momentum of Huimin Travel at this time.
He smiled and said, "Green's development is indeed good, even US$1 billion is underestimated."
But then he changed his tone, "But the basic business of Huimin Travel has not been left behind? Based on a valuation of US$3 billion, what is the result of Huimin Travel's efforts in the past six months?
There are also taxi-hailing and ride-hailing services. These two businesses have already made Chen Wei sleepless.
Didi claims a valuation of more than 20 billion U.S. dollars, but we only have 5% of its size, so we can value it at 1 billion U.S. dollars!"
As a venture capital investor, who hasn’t experienced all kinds of fierce negotiations? We have long understood the truth that those who want to achieve great things must be able to bargain!
It was Wei Cheng's turn to vent. He did not directly object to Huang Xiaofeng's words, but started to make a fuss about Huimin Travel's huge losses.
He said: "Excluding factors such as new car launches and mergers and acquisitions, Huimin Travel's operating loss in a single month is as high as several hundred million!"
"Mainly reflected in the depreciation of bicycles and freight vehicles, cycling income and advertising income can basically be equal to daily expenses such as personnel salaries and marketing expenses."
A representative of Temasek Investment said: “However, the actual operating conditions of the company cannot ignore the depreciation of bicycles.
These bicycles may be eliminated from the market due to damage in two or three years.
This requires us to consider new investments.
Huimin Travel’s current round of financing is already Series C, and with a scale of several billion dollars, “profit” must be put on the agenda.”
Weak profitability has always been a major pain point for Huimin Travel.
Other investors have also spoken out and have been insisting on this issue.
They didn’t really question Huimin Bicycle’s profitability, otherwise they wouldn’t have participated in the financing.
From the current point of view, as long as Huimin Travel can eliminate other bicycles, charge for all bicycles, or even increase the price a little, profitability will not be a problem at all.
They just used this bargaining chip to cut off the valuation of Huimin Travel.
Huang Xiaofeng is also prepared to cooperate with Pinduoduo on the upcoming traffic portal, Ruixiang on the upcoming payment portal, Yimindai on the upcoming loan portal... and a series of other initiatives to expand revenue.
The plans were all told.
He said that profitability of Huimin Travel is not a problem at all. Currently, the number of users of Huimin Travel has just exceeded 100 million, and in the future, Huimin Travel will become a national-level application with more than 500 million users.
It is still among the circle of users, and the mature season has not yet come, so it cannot be harvested hastily.
After Huimin Travel's business covers all cities in China, the shared bicycle business accounts for more than 90%, becoming the absolute overlord.
The free policy can be abolished and the price of shared bicycles can be increased at the same time. Revenue can be expanded three to five times on the current basis.
In the second half of Huang Xiaofeng's words, about 500 million users and three or five times revenue expansion, several investors were dubious.
However, in the first half of the chapter, several investors still believed in the cooperation with Ruixiang, Pinduoduo, Yimindai and other companies.
This is the "ecological counter-revolution", a futuristic concept proposed by Boss Jia some time ago.
It took Boss Jia 17 years to become unlucky, but he is still the darling of the capital community today. Several investors think that the views he put forward are quite commendable.
Several investors also believe that Zhang Yida will use other industries in his hands to provide blood transfusions for Huimin Travel.
Deposit financial management is a good example. 75% of the profits go to Huimin Travel, while Ruimin financial management only takes 25% of the profits and has to bear various financial risks.
If companies such as Ruixiang and Pinduoduo can be as powerful as Ruimin Financial Management, Huimin Travel will take off.
Several investors did their own calculations and found that Huimin Travel's bicycles worth 7 billion yuan, after three years of depreciation, would be worth 2.33 billion yuan in one year;
Plus billions in salary, R&D expenditures, and various other costs.
Investors estimate that Huimin Travel’s revenue of 4 to 5 billion a year can still cover its costs.
Huimin Travel's revenue of 1.85 billion last year, although still far from 4 to 5 billion, gave investors some confidence.
"Mr. Huang, can you tell me your valuation of Huimin Travel Group?"
Huang Xiaofeng remembered the numbers Zhang Yida had given him and blurted out: