A freshly released half-year financial report and operating report were placed in front of Shen Beipeng and Xu Xiaoming.
“The transaction volume of Yimin Wealth is 1.6 billion, with 1.48 billion to be collected.
The transaction volume of Yimin Financial Management is 6.2 billion, with 1.65 billion to be collected.
Yimin Financial Services’ total revenue was 270 million yuan, user interest expenses were 130 million yuan, sales and advertising expenses were 95 million yuan, salary expenses were 40 million yuan, and net profit was 5 million yuan.”
The two looked at each other and knew that Yimin was developing rapidly, but they were still a little unbelievable when they saw the specific operating data.
There should be nothing wrong with this data, as it is stamped with the stamp of the accounting firm. However, as a routine matter, we will arrange for the company's financial department to review it again.
Therefore, whether the data is true or false can be known immediately. However, based on their understanding of Zhang Yida, they will not interfere with this little matter.
Shen Beipeng took off his glasses, wiped them and said:
"7.8 billion turnover, 3.13 billion to be collected. Your development speed is a bit beyond my expectation."
"Teacher Shen, do you think it's faster or slower?" Zhang Yida also asked casually.
"Almost! I originally thought you would complete the bet in the second half of the year. It seems I made a mistake." Shen Beipeng said with emotion.
"Yida, we will arrange for the financial team to come over later to go through the process. Once the process is completed, the payment of the other 25 million US dollars will be arranged immediately."
Xu Xiaoming was a little excited, Zhang Yida had brought him another miracle, and Yimin had unlimited potential so far!
Zhang Yida nodded in agreement. It was understandable that the venture capitalists would check the authenticity of the data again. Moreover, the data was real and could withstand inspection.
"25 million U.S. dollars, plus the 25 million U.S. dollars from the bet, that's 50 million U.S. dollars. We obtained a total of 10% of the shares."
Shen Beipeng murmured to himself, then looked at Zhang Yida and said:
“I think Yimin’s valuation is at least US$1 billion now!”
"Yes, yes! The minimum valuation of Series B financing is at least 1 billion." Zhang Yida also smiled and catered. He understood what Shen Beipeng meant. They suffered some losses in Series A and quickly found a Series B investor to take over them. The value of equity increases.
"When will round B be launched?" Xu Xiaoming also interjected.
"At the end of the year! Let's use up the US$25 million first!" Zhang Yida already has a specific plan in mind, and he will start Series B financing when the business layout is broader and the revenue is bigger.
"Let me know what your plans are." Shen Beipeng wanted to hear Zhang Yida's next development plan for Yimin.
Zhang Yida didn't hide anything, he said it all as if he were pouring beans out of a bamboo tube:
“Efforts will be made in three directions: funds to be collected, asset-side loan scale, revenue and profit.
Let’s talk about the capital side first. Currently, there are three brands: Yimin Wealth Management, Yimin Financial Management, and Ruimin Financial Management.
Yimin Wealth will next acquire fund sales and insurance brokerage licenses to focus on serving high-net-worth customers.
Create a full range of comprehensive financial services such as wealth management, overseas asset allocation, high-end insurance, and high-end education.
Yimin Financial Management continues to delve into the field of P2P credit, expanding the transaction scale and pending collection.
Ruimin Financial Management will serve as a supplementary channel for the capital side and form a dual-brand operation pattern with Yimin Financial Management. When the right opportunity comes, it will be separated and operated independently."
After a pause, he observed the reactions of Shen and Xu. Seeing that they nodded in agreement, Zhang Yida continued:
“Then let’s talk about the assets side.
As an offline asset side, Yimin Puhui has now completed store coverage in five provinces in North China and Sichuan Province. There are a total of 8 stores in 7 cities including Beijing, Tianjin, Shijiazhuang, Baoding, HHHT, Taiyuan, and Rongcheng.
In the second half of the year, we will continue to expand store coverage in provincial capitals, strong second-tier cities, and ordinary second-tier cities across the country.
By the end of 2014, the annual goal of covering 49 major cities and building 50 stores will be completed.
As an online asset side, Yimindai will continue to focus on consumer finance. It will expand consumption scenario loans, including education, tourism, house decoration, home appliances, automobiles and other types of installment businesses.
When the risk control model and asset quality are stable, let Yimindai access funds from other financial institutions, including banks, trusts, consumer finance, small loans, ABS debt and other financing channels.
While improving financial stability, we can further reduce capital costs.”
"Why do I feel that you are going to spin off several subsidiaries?" Shen Beipeng smelled something unusual and suddenly interrupted.
"Yes, Teacher Shen is indeed very powerful. He immediately saw through my true intentions." Zhang Yida said with a thumbs up.
Looking at the curious looks in their eyes, Zhang Yida said again:
“Preliminary plan is to split Yimin Financial Services Group’s business into four sectors.
"P2P is divided into two sectors? Commercial and public welfare?"
Xu Xiaoming thought about it and asked:
"One is for making money? The other is for public welfare?"
Zhang Yida sighed and said:
“The current P2P asset side is too focused on profitable assets such as personal consumption, housing loans, and car loans.
No one pays attention to agriculture, rural areas and rural finance. Because there is not much money to be made, and the implementation of operations is also very troublesome.
The Grameen Bank model has developed very well in Bangladesh and has made great achievements in poverty alleviation and supporting rural construction."
Shen Beipeng couldn't help but shake his head and said with a serious expression:
“Three Rural Finance is not easy to do! Capital is all about profit. If you want to do rural public welfare finance, it can be said to be very difficult.
First of all, because it is a public welfare project, the loan interest rate cannot be too high. This determines that the cost of funds must be low enough.
And with low capital costs, how can we attract a steady stream of capital to invest in this industry or project?
If it can’t make money, what can the company do to attract a steady stream of talents to join? And what can the company do to attract technological research and development?”
Zhang Yida understood these principles, and later generations also knew that the Grameen Bank model could be said to have developed unsatisfactorily in China.
"If you are poor, you can benefit yourself; if you are prosperous, you can help the world." He cannot be so noble. But while earning business interests, it is still possible to provide some feedback to society.
"It cannot be said that it is all charity finance. This project will balance commerciality and charity.
Ensuring the normal operation of the platform is the first requirement of business. Profitability is not required. As long as the revenue is balanced and the project can be continued for a long time, it will be fine.
Public welfare is not absolutely pure public welfare, and interest will still be charged on loans. However, we will try to control the interest within 20%, and will gradually reduce it based on the operating conditions of the platform in the future.
Granting small loans to poor areas, I think charity will frustrate people's confidence or make them lazy, allowing poor farmers to have capital to operate.
Only when the poor have credit, goals and motivation can real poverty alleviation be achieved, and credit is their capital."
Zhang Yida said all the words he was holding in his heart in one breath.
“Professor Yunus’ approach has indeed developed quite well in Bangladesh, specializing in lending to the poor, supporting rural entrepreneurship, and improving the backwardness and poverty of rural areas.
Yida, I support you, I am also very interested in this project, if you lack funds, I can invest part of it for you."
Xu Xiaoming encouraged that he, who studied art, is more emotional, unlike Shen Beipeng, an investment banker who studied mathematics, who first considers problems from a business perspective.
"Grameen is indeed very successful in Bangladesh. But after all, our national conditions and policies are different. Do you know what is the most difficult thing about getting it implemented?"
Shen Beipeng couldn't stand it any longer, and was about to pour cold water on them both, and continued:
"The principles of modern economics focus on how to maximize corporate profits and maximize shareholder return on investment.
In a market economy, if an enterprise does not have this most basic goal, then the enterprise will either be inefficient or be eliminated in the fierce market competition.
If we want agriculture, rural areas and rural finance to truly take root in rural areas, we must consider profits first, and then talk about poverty alleviation and public welfare.”
Shen Beipeng’s words actually have the same theme:
Let the organization survive in the market first, and then talk about development. First consider public welfare and poverty alleviation. If there is no continuous flow of donation funds, then you will kill yourself first.
"Yes, the most difficult thing is the sustainability of the model. Some of Grameen's projects in China have failed before, mainly due to the unsustainability of the model."
Zhang Yida nodded. Shen Beipeng looked at the problem very rationally and also hit the nail on the head.
"You should think about it carefully first! Come up with a specific plan. As long as it can ensure the sustainable development of business interests and models, I can personally invest."
Shen Beipeng made things very clear. In the final analysis, this kind of project is not as good as a commercial project that purely pursues maximizing profits. Blackshirts will not be allowed to invest. At most, they will participate in their own name.
"Okay, this is just a prototype of my idea. There are still many shortcomings that need to be improved. When the formal plan is formed, I will show it to the two teachers."
Zhang Yida looked at Shen and Xu and said.
Then the three of them discussed the issue of listing on Nasdaq.
Xu Xiaoming looked at Zhang Yida with a happy face and asked:
"Yimin is planning to spin off P2P and list on Nasdaq next year?"
“Yes, Yimin Financial Management and Yimin Puhui are packaged and listed together.
Next year, I predict that Yimin Financial Management may develop to tens of billions in revenue, and Yimin Puhui may also complete the opening of hundreds of stores.
The development of the enterprise will usher in an explosive climax. Taking advantage of this opportunity, we will win the title of the first listed overseas mutual fund stock.
No matter how many mutual financial companies are listed in the future, the first one will be the most memorable one."
Zhang Yida said with a smile, pinched his chin, and added:
"Yimin Wealth will be listed in 2016, and Yimin Loan will be listed in 2017. I plan to list a company every year in the next three years, and completely establish Yimin Financial Services Group's dominance in Internet finance!"
"Why do they need to be listed separately? Wouldn't it be better to list them together? The market value is larger and the resources are more concentrated." Xu Xiaoming asked with some confusion.
"Avoid risks! Although P2P is not yet regulated, we have to make plans for the future."
Zhang Yida frowned and his thoughts suddenly became distant. Considering the regulatory environment in the next few years, it must be listed and deployed as soon as possible.