When Evans and Robert saw such detailed data, they also clapped, and then Evans said:
"Ms. Ding, I agree with part of your point of view. China's economy is indeed advancing by leaps and bounds. It is the country that has produced the most multimillionaires and billionaires the fastest.
But I have a doubt. The revenue from the Xinhuo Family Office business accounts for 30% of the revenue of the entire company of Yimin Wealth.
Moreover, of the more than 5 billion US dollars managed by the Xinhuo Family Office, 50% belongs to Mr. Zhang Yida.
In other words, Mr. Zhang Yida contributed 15% of his company's revenue.
This kind of related party transaction is very criticized.
And Mr. Zhang Yida, according to our internal statistics, his assets may exceed 10 billion US dollars.
Rich people of this level basically set up their own independent family offices.
In other words, he is likely to exit Xinhuo Multi-Family Office in the future.
Most of the other clients of the family office are friends of Mr. Zhang Yida, including another super rich man, Mr. Robin Li.
Mr. Zhang Yida's withdrawal may also cause the loss of other customers.
From my point of view, the revenue and profits of the Xinhuo Family Office cannot be included in the valuation."
Ding Siyao thought to himself, this last sentence is your true purpose!
"Mr. Evans, we cannot predict future events. What we can see is that Yimin Wealth has stable revenue and profits.
And all clients of the family office have signed five-year long-term cooperation agreements.
This part of the business will not fluctuate much within five years.
In addition, in addition to Mr. Zhang Yida, we are also actively exploring other wealthy customers.
The Xinhuo Family Office has only been in development for half a year, so most of the revenue you see relies on Mr. Zhang Yida.
But as we grow, the dependency will continue to decrease until it is minimal."
Ding Siyao looked at Robert and said, "Mr. Robert, you have also cooperated with Yimin Internet Finance, and the cooperation was very pleasant.
You can share your success stories with Mr. Evans."
Speaking of the cooperation with Yimin Wangjin, Robert grinned. The book return exceeded 100%, and he earned more than 400 million US dollars in less than a year.
That was really a very successful investment case, and Robert received an award from the company for it.
Considering that Zhang Yida owns so many unicorn companies, this relationship still needs to be well established, and Robert also felt that it was necessary to say a few words.
He said to Evans: "Evans and Mr. Zhang Yida's company are all very good projects. The opportunity is rare, and I think Morgan Stanley should seize this opportunity."
After speaking, Robert looked at Ding Siyao again and said: "Ms. Ding, the 30 times PE is indeed a bit high, and we don't make much profit!
In this way, is 20 times PE okay? It’s US$1.23 billion. We at Goldman Sachs recognize this valuation.”
Evans also nodded and said: "If it's US$1.23 billion, it's no problem for me."
Ding Siyao still felt that it was a bit underestimated, but Zhang Yida told her that as long as the pre-money valuation is not less than US$1 billion, the deal can be completed.
She thought about it and decided to fight for it again, and then said: "25 times PE, we will also give the listing and underwriting rights to Goldman Sachs and Morgan Stanley."
"What about the open financing share?" Robert did not answer directly, but asked about the open financing share.
"How much does Mr. Robert want?"
Robert pointed two fingers and said: "20%."
"We at Morgan Stanley want 10%." Evans also made a request on behalf of the company.
"This is too much," Ding Siyao shook his head, "unless some of the old shares are sold."
"Okay, it's just right if some shareholders want to withdraw. We will accept them all."
Robert has tasted the sweetness once and is ready to copy the success story of Yimin Net Finance again.
"What about the valuation?" Ding Siyao asked again.
Robert and Evans looked at each other, and the latter said: "If you agree to sell 30% of the shares, we agree to your valuation condition of 25 times PE."
Ding Siyao repeated the conditions given by Robert and Evans.
"Tell them to wait a moment while I contact the two bosses Shen and Xu and ask them if they want to cash out.
They are friendly forces, let the friendly forces run first!"
Ding Siyao smiled, what kind of friendly forces ran away first? Investors obviously have the first right to cash out.
After hanging up the phone, Zhang Yida first called Xu Xiaoming, "Teacher Xu, Yimin Wealth is conducting the last round of financing before listing. Will you cash out this time?"
"No more arbitrage! I lost money to Yimin Wangjin that time. This time I have to wait until it goes public."
Xu Xiaoming feels sad every time he thinks about the fact that he liquidated his shares before Yimin Wangjin went public.
Hey, I made tens of millions of dollars less!
Zhang Yida called Shen Beipeng again, and the latter also expressed his long-term optimism and would not cash out.
If you don't cash out, you will have to "sacrifice" yourself.
Zhang Yida came to Yimin Wealth Company, said hello to Robert Evans, and asked Lei Dongming: "How much do you want?"
Lei Dongming smiled and said: "Whatever! Three or five points will do."
"Okay, then it's 5 points. The three of you add up to 35%."
Zhang Yida thought for a while and came up with his plan, "How about issuing 20% more new shares and transferring 15% of the old shares?"
Everyone nodded in agreement.
In this way, based on 25 times PE and a pre-money valuation of US$1.54 billion, Yimin Wealth raised US$385 million in new equity financing, bringing the post-money valuation to US$1.925 billion.
This US$385 million was entered into the company's account and belongs to all shareholders.
Among them, Goldman Sachs invested US$220 million, Morgan Stanley invested US$110 million, and Huayi Capital invested US$55 million.
After the parent company introduced financing from Blackshirt Capital and Zhenke Fund, Zhang Yida’s shareholding ratio was 72%.
Later, Huinong Dai cleared Ding Siyao's shares, and Zhang Yida compensated the latter with shares worth US$1 million, with a shareholding ratio of about 0.2%.
After completing this round of new stock financing, Zhang Yida's shareholding ratio dropped from 71.8% to 57.44%.
Then based on the valuation of US$1.925 billion, Zhang Yida transferred 15% of the old shares he held and cashed out US$288.75 million.
The US$288.75 million was cashed out by Zhang Yida personally and will be owned by him after paying taxes.
Among them, Goldman Sachs invested US$165 million, Morgan Stanley invested US$82.5 million, and Huayi Capital invested US$41.25 million.
In addition, Zhang Yida's shareholding ratio dropped from 57.44% to 42.44%.
After signing all the contracts, Zhang Yida looked at the more than 200 million US dollars lying in his overseas bank account and showed a satisfied smile.
If you don't cash out so much, the shares will be too concentrated, which is not a good thing for market circulation.
In addition, the rules for large shareholders to cash out in the U.S. stock market are too cumbersome. It is really difficult to cash out unless the company operates for ten or eight years and its performance has to grow steadily.
If you are not careful, you may face a class action lawsuit from small shareholders.
Therefore, major shareholders of companies that want to be listed on the U.S. stock market usually cash out in a Pre-IPO round, and then issue a small part of the old shares when the shares are listed.
Then there is a lock-in period that lasts for half a year. After that, various venture capital investors have to run first.
After the race is over, it’s almost the founder’s turn. At this time, I don’t know whether he will be successful or not.
Even if the shares are not broken, major shareholders must report to the U.S. Securities and Exchange Commission (SEC) in advance to cash out, and then cash out no more than 1% of the issued shares every three months.
It’s been the year of the monkey and the month of the horse. The rules of the U.S. capital market are too perfect and it’s hard to cut leeks.
…
After receiving the money, Zhang Yida quickly launched DouShi’s Series A financing.
DouYu's funds have always been very tight. Zhang Yida invested US$100 million to support it until now.
After procrastinating for so long, Zhang Yida finally waited until he had a little more money, which he just used to increase his holdings in DouShi.
As one of the few companies under Zhang Yida that has never carried out financing, DouShi has always attracted the attention of investors. Familiar people often call Zhang Yida to inquire about financing, but Zhang Yida rejects them one by one.
.
“The number of registered users of DouYu in China is 80 million, the number of Musical.ly users in North America is 30 million, and the number of users in Europe is 10 million. The total number of users worldwide is 120 million.”
In a conference room of DouYu, Zhang Yida used PPT to play DouYu's global user distribution.
On a global map, there are three large red areas. The reddest one is the Chinese Rooster, followed by North America, and then Europe.
"Tsk tsk tsk!"
Xu Xiaoming sighed: "Yida, you are hiding it so well. You have more than 100 million users without saying anything, and your users are distributed in three continents."
Shen Beipeng also adjusted his glasses and said nothing. He began to estimate the value in his mind. How much should an APP with hundreds of millions of users be valued?
Lei Dongming and Lan Lan also sat aside and thought separately.
Zhang Yida only invited these four investors today, Blackshirt Capital, Zhenke Fund, Huayi Capital and Ruixiang Industrial Fund, all companies with relatively close relationships.
"Yida, please make a price!"
Xu Xiaoming thought to himself that no matter how high the price was for an APP that would reach more than 100 million users in one year, he must invest in it.
"$50 per user, pre-money valuation of $6 billion."
Xu Xiaoming smiled and said, "Yida, are you kidding?"
Zhang Yida waved his hand and said, "I'm really not kidding. A Facebook user is worth thousands of dollars. My $50 is really not that much."
"Foreign users are indeed more valuable." Shen Beipeng agreed, and then said: "But your 80 million domestic users are not worth that much money. 50 yuan is about the same."
"Nowadays, the cost of acquiring customers for an online APP is two to three hundred yuan per app. It costs about 50 yuan to buy all zombie users."
Zhang Yida pressed the PPT controller, and a comparison bar chart of daily active users and monthly active users appeared. He introduced:
“Currently there are 40 million daily active users and 100 million monthly active users, which means there are only 20 million zombie users.
This stickiness is unmatched by many apps, and with the enrichment of content, users' stickiness and usage time are still further improving.
Think about it, how valuable is the advertising in this?"
Shen Beipeng and Xu Xiaoming didn't speak. They each thought about it. The valuation of US$6 billion really frightened them.
Zhang Yida thought about opening up financing to Ruixiang Industrial Fund, so he took the three of them with him.
Zhang Yida and Temasek's Li Hengbo had an agreement to promote Musical.ly to Southeast Asia. Southeast Asian consortiums will also provide various supports, but the prerequisite is that Ruixiang Industrial Fund will invest in DouShi.