The news of Ruixiang's listing could no longer be concealed as the prospectus was officially submitted to the Hong Kong Stock Exchange.
The most eye-catching thing is the financial report shown in the prospectus, which contains the secret of rapid growth.
As the world's largest unicorn company, the outside world has never stopped speculating on Ruixiang's various financial data.
"Annual revenue exceeds 100 billion" was recognized more than a year ago.
This surpassed Qiandu and became the third largest Internet company in China in revenue after Ali and Penguin.
It is precisely because of this that it is called "ATR" and it can support Ruixiang's upward valuation of US$200 billion.
But the most authentic and clear financial data of Ruixiang is known to no one except company executives and shareholders, as well as accounting firms.
At this moment, the financial report came out, and everyone's eyes were shocked.
"In 2017, 2018, and the first half of 2019, the revenue was 92.61 billion, 186.926 billion, and 139.457 billion respectively, in RMB."
Compare this data to Ali, whose full-year revenue in fiscal year 2019 was 376.8 billion.
Ali's fiscal year is different from the natural year. The 2019 fiscal year is equivalent to the sum of revenue in the 12 months from April 2018 to March 2019.
Therefore, Ali’s 2019 financial report can be roughly compared with Ruixiang’s 2018 financial report.
Penguin's revenue in 2018 was 312.7 billion, and revenue in the first half of 2019 was 174.3 billion.
In addition, there is another characteristic. Ari and Penguin have maintained an annual revenue growth rate of about 30%-50% in the past two or three years.
Ruixiang's revenue growth rate is between 70 and 80% to just over 100%, which means its annual revenue is nearly doubled.
This is a bit scary!
Some experts and scholars did not dare to believe this financial report, and they all used magnifying glasses to find flaws, or the secret of revenue growth.
Ruixiang's revenue is displayed in five major sectors, financial technology and corporate services, advertising, e-commerce, digital content, and investment.
Among them, financial technology and enterprise services belong to the former Ruixiang Group's sector, with revenue of 61.884 billion, 77.355 billion, and 44.479 billion respectively, which is close to a 100-billion revenue sector.
The advertising sector, led by DouShi, Kuaishou and other products, covers live streaming rewards, with revenue of 15 billion, 47 billion, and 45.8 billion respectively. There is no doubt that this is also a revenue sector close to 100 billion.
The e-commerce segment composed of Pinduoduo, Xiaohongshu and other products has revenue of 2.244 billion, 14.32 billion, and 14.235 billion respectively.
The revenue is not very high, but the growth is very rapid. The first half of this year is close to the full revenue of last year.
The digital content segment composed of Bilibili, Rocket Video, and games has revenue of 9.468 billion, 24.129 billion, and 32.912 billion respectively.
Finally, there is the investment sector, with investment income of 4.014 billion, 24.122 billion, and 2.031 billion respectively.
Among the five major sectors, the investment sector is the most outstanding.
Someone knowledgeable gave me an explanation, Ruixiang invested in Miaofen, and made more than 2 billion in one project.
It’s no surprise that dozens of unicorns were sold off last year, making a huge profit of more than 24 billion.
Putting aside the investment business and counting only the main business, Ruixiang's revenue in 2018 was more than 160 billion, and its revenue in the first half of 2019 was more than 130 billion, which was very close to the whole of last year.
The revenue of the e-commerce sector is far from being compared with Ali and Goudong. The gap is very large. This is a bit beyond people's expectations.
Some knowledgeable people also said that in order to attract brands to settle in, Pinduoduo has been losing money and making money, free of commissions and free of advertising.
At the same time, we don’t operate a directly operated store, so this amount of revenue is very normal.
In the financial technology and enterprise services sector, Penguin also has this sector, with revenue of about 100 billion, a little higher than Ruixiang.
However, Leech Financial Services Group is not listed on the market, so we can only estimate net profit through Ahri's financial report, but cannot predict revenue.
However, an insider revealed that it is even higher than Penguin’s income, close to 120 billion yuan.
Having said that, everyone almost believes it. This revenue ranking is in line with the current mobile payment market share ranking.
In fact, mobile payment does not contribute much revenue. It is mainly derived from the lending business and diverting traffic to financial institutions, that is, fund accounts, insurance accounts, etc., to make money.
The most eye-catching thing is Ruixiang’s advertising revenue. One business is close to Qiandu’s entire company’s revenue.
Qiandu is almost equivalent to an advertising company, with 80% of its revenue of over 100 billion coming from advertising.
It is almost certain that Ruixiang’s advertising revenue will exceed 80 billion this year.
Some people even predict that exceeding 100 billion is a high probability.
This is not surprising. Through Douyin and Kuaishou’s overwhelming advertisements, we can see that short video advertisements really have potential.
With precise algorithms and TikTok, Kuaishou has a total of 600 million monthly active users, and users can use it for an hour or two. This is real money!
A typical traffic monetization case!
In the digital content sector, more than 70% of revenue is contributed by games.
The domestic and international version of "PlayerUnknown's Battlegrounds" mobile and PC games brought Ruixiang more than 2 billion US dollars, or 14 billion yuan in revenue, throughout the year.
Lilith's several overseas mobile games have also achieved very good revenue, with annual revenue exceeding 10 billion and hitting 20 billion.
Station B also generates billions of revenue a year, most of which is contributed by games.
In addition, Rocket Video also generates billions in revenue a year.
Compared with iQiyi's annual revenue of more than 20 billion, it can reach about one-third of its revenue.
Small companies such as Musical.ly, Tiantian Toutiao, Ruixiang Pictures, BuyPiaoxia, Bole.com, Xiaomeng, Ruixiang Novel, as well as overseas martial arts world, music streaming media Resso, and the overseas version of Rocket Video Rocket TV all add up.
Revenues approaching 10 billion.
In terms of revenue share, financial technology and enterprise services account for 31.89% of Ruixiang’s total revenue, making it the second largest sector;
Advertising revenue is the largest segment, accounting for 32.84% of total revenue.
Digital content is the third largest sector, accounting for 23.6%;
The fourth largest sector is e-commerce, accounting for 10.21%.
The proportion of investment income has gradually shrunk, from 12.9% of revenue in 2018 to 1.46% in the first half of 2019.
Because it is not the main business, it does not need to be paid too much attention to.
It's just that the investment was so successful that it gave people a lot more to talk about after dinner.
There is another question focused on Ruixiang, which is whether the revenue for the whole year this year can exceed 300 billion!
Ruixiang's revenue has reached more than 130 billion in the first half of the year. As long as it reaches 15% growth in the second half of the year, it can basically achieve this goal.
Ahri achieved the goal in 2018, and Penguin also achieved it in 2018.
If Ruixiang can surpass this historic goal in 2019, it will not be just talk about being on par with the two giants, but it will truly possess this strength.
There is another important indicator, net profit, which is also in the sight of analysts.
"In 2017, 2018, and the first half of 2019, the net profits were -23.986 billion, 16.889 billion, and 11.336 billion respectively, in RMB."
The four directions of scientific research investment, e-commerce subsidies, content investment, and overseas product promotion have greatly reduced Ruixiang's net profit.
Excluding scientific research investment and only deducting the other three factors, Ruixiang's net profit can increase by 30 to 40 billion yuan per year.
After studying Ruixiang’s revenue and net profit, everyone started studying the market value.