Three hundred and ninetieth chapters financial intermediary
"Mr. Long, how can there be so many secrets?"
Fang Yuhan naturally knew Zhang Yida's intention for such an arrangement, but she didn't dare to tell the truth!
How much is the valuation of Ruixin Group, which has divested Ruimin Financial Management, and can it still deserve the status of a unicorn?
So if she wants to get a high enough valuation and enough investment, she can only bite the bullet and say she is optimistic about the P2P business.
In fact, Long Yu's question hit the nail on the head.
Since you are optimistic about it, why not do direct sales?
Fang Yuhan could only try to be as smooth as possible and said, "Consumer finance seems to be flourishing, but in fact we have noticed some bad signs.
Campus loans, beheading interest rates, and consumer loans with high interest rates are issued to various people with unstable incomes.
If the market is manipulated by these unscrupulous businessmen, it will cause social conflicts sooner or later, and regulatory agencies will definitely take action.
As for small and micro finance on the B side, because it is a difficult nut to crack, few companies dare to do it and do it well.
The market is huge, but there are few decent competitors.
Compared with the consumer finance market, this is still a blue ocean, and it is a good time for Ruixin Group to set sail in the broad sea."
These words attracted the attention of Mi Qun, Managing Director of Lightspeed China, who smiled and said: "Mr. Fang, are you thinking too much?
Although there are some red lines in the consumer finance market, it is not to the point of causing outrage, right?
Consumer finance is one of the most profitable financial businesses, and everyone is getting into it.
Ruixin is good, but he does the opposite.
Is this Mr. Zhang’s idea, or Mr. Fang’s idea?”
"Although consumer finance is good, it is a red ocean. If we do a good job in corporate finance and corporate credit reporting, our future results will not be inferior to Yimin Wangjin."
These words were said by Zhang Yida to Fang Yuhan, and now she repeated them to the investors present.
"In addition, fully entering the field of corporate finance and credit reporting is also a strategy that Mr. Zhang set a few years ago."
Why did Zhang Yida do this? One of his companies laid out a subdivided track?
Mi Qun thinks it’s not that simple. Yimin Wangjin and Yimindai are both making huge profits in the field of consumer finance. There is no reason for Ruixin Group to just watch the excitement?
Who would mind having too much money?
The investors present are all typical of the three highs, "high academic qualifications", "high emotional intelligence" and "high IQ".
Moreover, all of them hold high-level positions such as partners and managing directors. They have invested in many projects and have become more experienced.
They did not rush to refute, but continued to test Fang Yuhan with words in order to obtain more information to facilitate pre-investment analysis.
“I think Ruixin Group can spin off Ruimin Financial Management and list it independently.
Use Xinglong Dai, Weizhong Tax Bank and other B-side businesses as financing entities. In this way, management will be more convenient.
The company's business is also clearer and there will be no confusing concepts.
From now on, when people mention Ruixin Group, they will know that it is engaged in corporate credit reporting and corporate finance, rather than individual-to-individual P2P finance.
This can greatly enhance users’ awareness of the brand.”
The proposal by Zheng Wei, a partner of Northern Light Venture Capital, received unanimous support from other investors.
"I think Mr. Zheng's idea is a good one and can be considered!"
“Ruimin Financial Management is so large that it is absolutely possible to go public.”
"Business still needs to be more focused in order to do it more precisely and better!"
Fang Yuhan glanced at Zheng Wei, her abacus calculation was extraordinary!
After the split of Ruimin Financial Management, relying solely on Weizhong Tax Bank and Xinglong Dai, the valuation may not reach RMB 1 billion.
The lower the valuation, the more cost-effective it is for venture capital institutions to invest in shares, and the higher the future return on investment.
She had heard others mention that Zheng Wei was as cunning as a ghost. This was a comment given to him by his Qiandu colleagues.
Whether you are great or not can be seen from your resume since college.
Aoki’s bachelor’s and master’s degree, department student union president, senior official of the graduate student union, Ph.D. from Peking University, general manager of Qiandu Innovation and Development Department...
"It's impossible to divide...it's impossible to divide it. If it's divided, where will the funds for Xinglong Loans come from in the future?"
Zheng Wei answered, "It's simple. Banks, trusts, consumer finance and other institutions can connect funds, and the cost is cheaper than P2P."
The "loan assistance" model has indeed begun to emerge. Even a layman like Zheng Wei knows that it is not too difficult to access bank funds.
Compared with institutional funds, the cost of P2P funds is indeed too high. Even Miaofenqin has gradually stopped cooperating with P2P and began to use money from banks and trusts to lend money.
Fang Yuhan smiled and said: "Who knows what the future financial regulatory policies will be?
What if the paper ban comes down and institutional funds are restricted?
Don’t doubt it, this possibility is quite high. Chinese banks can be regarded as the most conservative banks in the world.
Profit rate is not the most important, safety comes first.
How many bank failures have you heard of in China? Very few!
Therefore, you still have to control the funding channels in your own hands to feel at ease.”
“Since we have chosen to do the B-side market, I think we should not miss the C-side market.
Mr. Fang, your behavior makes me doubt Ruixin Group’s determination to do a good job in the corporate credit reporting market."
Long Yu's words were unanimously recognized by other investors. After all, Ruixin Group's current valuation is too high.
The last round of financing was valued at US$1 billion, and the current P2P business volume is not much smaller than that of Yimin. Is it possible that the valuation is US$10 billion?
Because Ruimin Financial Management does not have much direct involvement in the loan market, its revenue and profits are much lower than those of Yimin Wangjin.
Moreover, most of the financial management business of Ruimin Financial Management comes from Huimin Bicycle, and 75% of the profits are distributed to Huimin Bicycle.
Now Huimin Bicycle is selling itself again, which adds another unstable factor.
"Where's the valuation? Mr. Fang, please give me a price!"
Mi Qun decided to listen to the valuation first before making further plans.
"$3 billion!"
Fang Yuhan spit out a number in an understatement.
"I'm curious, how did you get this valuation?"
Facing Zheng Wei's question, Fang Yuhan didn't panic at all. Since he dared to offer this valuation, he was on target.
“The usual valuation method of P2P is the valuation method to be received, which is similar to the GMV valuation method in the e-commerce industry.
The 32 billion to be collected multiplied by 0.6 is 19.2 billion yuan, which is 2.8 billion in U.S. dollars.
The combined valuation of Weizhong Tax Bank and Xinglong Dai at US$200 million is not too much, right?”
Fang Yuhan smiled and said, "This is not yet the benchmark of Yimin Network Capital. If it is the benchmark of Yimin Network Capital, it will be more than 3 billion US dollars."
Mi Qun shook his head, "Mr. Fang, that's not how the accounts are calculated. Lightspeed China has invested in Paishoudai, so we are not unfamiliar with the field of Internet finance. You can't bully us for not knowing how to do it!"
He continued: "Pai Shoudai has its own asset side. For every 100 yuan of loans it lends, you can earn 40 yuan.
What about Ruimin Financial Management? It needs to be shared with asset-side partners such as Yimin Wangjin, as well as with diversion institutions like Huimin Bicycle.
After all, if you lend 100 yuan, you will earn less than 10 yuan in profit."
"Yes, Ruimin Financial Management is just a financial intermediary, not a P2P company in the true sense, and the ecosystem is not perfect.
Most of the profits have been earned by other partners, and the profit margin is less than one-sixth of Pai Shou Dai.”
Although Long Yu was a woman, she spoke very forcefully. She lifted the fig leaf without mercy and directly said that Ruimin Financial Management was an intermediary.
"Yes, P2P is originally an information intermediary. It is not wrong to say that we, Ruimin Financial Management, are an intermediary!
You should not just see how much profit Ruimin Financial Management distributes to Yimin Wangjin and Huimin Bicycle. This kind of cooperative relationship is what many P2P companies dream of.
As the “first” P2P company in China, Yimin Wangjin has the best risk control technology in the industry.
In addition, it has a market value of tens of billions of dollars and has more than one billion dollars in cash on its books.
According to the agreement signed by our Ruimin Financial Management and Yimin Wangjin, all bad debts will be borne by them.
This alone surpasses most of its domestic counterparts.
There is also Huimin Bicycle. How much free traffic have we received from our cooperation with them?
When other companies are still worried about not being able to get enough good advertising results in hundreds of millions of advertising dollars every year.
Huimin Bicycle has helped us achieve hundreds of billions of transactions in just two years.
If we continue to maintain this growth momentum, it will not be difficult to surpass Yimin Wangjin and Lufax.
There is a saying that "wealth gathers and people disperse, wealth disperses and people gather together", I believe everyone knows what I mean.
It is impossible for a company to make all profits. To realize a bigger dream, all forces that can be united must be united.
At the same time, another issue is involved here.
Xinglong Dai’s growth rate cannot catch up with Ruimin Financial Management.”
Speaking of this, Fang Yuhan smiled generously, "There is nothing to hide, it is an indisputable fact.
In the field of corporate finance, due to the imperfect domestic infrastructure, it is impossible to advance as fast as consumer finance, and it needs to be cultivated slowly.
In addition, Huimin Bicycle is a bit too awesome.
With so much money raised, we certainly can’t let it sit idle, so exporting it to external assets has become an inevitable choice.”
“I understand Ruixin Group’s approach, but in doing so, the conceptualization and growth imagination are somewhat lacking.
This alone cannot support a valuation of US$3 billion."
Zheng Wei smiled and said: “The valuation of Ruixin Group’s last round of financing was US$1 billion, invested by Yimin Wangjin.
I can’t comment on this valuation. But in this round of financing, I think several of our institutions need to calm down.
As far as I know, the size of Paishoudai is probably half that of Ruimin Financial Management, but its valuation is only about US$1 billion.
And its revenue and net profit are even slightly better than Ruixin Group."
Mi Qun took over the topic and said: "Yes, the revenue is more than one billion and the net profit is more than 500 million."
"The interest rate of Paishou Loan is a bit marginal, and there is a lot of negative news."
After Fang Yuhan finished speaking, Mi Qun smiled and shook his head, "These are not important, the profit margin is very high, the financial report is very good, and the business growth rate is very high...
Secondary market investors prefer to see these, and Pai Shou Dai just meets them."
Other investors also echoed the sentiment, saying that the valuation was too high and unacceptable.
The negotiations were temporarily suspended, and Fang Yuhan reported the status of the negotiations to Zhang Yida.