"Only because of Leech Golden Suit, we hung him up and beat him in Southeast Asia!"

Tong Shijie from GGV Capital was very aggressive with his words. With a height of over 1.85 meters and a weight of nearly 200 kilograms, he suppressed Zhonghe's momentum for a while.

He was an early investor in rice phones. He has a high status in the domestic venture capital circle and his words still carry some weight.

“To be fair to Softbank, the e-wallet deployed by Leech Financial in Southeast Asia is indeed weaker than that of Ruixiang.

RPay and GrabPay rank first and second respectively in the Southeast Asian market, and the third place is AirPay controlled by Penguin Capital.

Several e-wallets such as DANA and GG supported by Ahri can only be ranked in the second echelon.

But in India, Paytm is firmly ahead of BBPay.

As for South Korea, Japan, and Hong Kong, the gap between the two countries and regions is not big, or Ruixiang barely leads by a little bit.

As for Pakistan, Bangladesh, Nepal and other countries, they have just opened their markets, and there is no gap yet."

Zhang Liping from Blackstone clapped his hands and applauded: “Mr.

But domestically, Leech Financial Services Group is competing in many fields including mobile payment, consumer finance, wealth management, and digital technology.”

"This is nonsense. It is said that the market share of mobile payment is lower than that of Leech Financial Services. I don't deny it."

Gan Renping from Qiming Venture Partners was very excited, “But we are not weaker than them in consumer finance, wealth management and other sectors.

These business sectors are very similar to financial supermarkets. Our business was launched earlier than that of Leech Financial Services, and our operations are more experienced.

Products including Mung Bean Credit, Tiance Technology ToB business, Yongbei, Daibei and other products were launched from the second half of 2013 to the first half of 2014, all earlier than Leech Financial.

So we are the industry leader, while Leech Financial is just following suit.

In addition, we launched a mini program before them and cooperated with more than half of the domestic licensed financial institutions..."

Xue Cunhe was a little unhappy after being sprayed, and responded angrily: "What about the industry leader? Goudong Baitiao was launched in February 2014, earlier than Ruixiang and earlier than Leech Financial, but how can

So what? What is the loan size?

Go out and find out for yourself, look at the analysis of brokerage analysts and Hurun’s rankings. Who ranks Ruixiang ahead of Leech Financial?

Also, SoftBank is both a shareholder of Ruixiang and a shareholder of Zhonghe, and we will not favor anyone, just to be fair."

Xu Xiaoming and Shen Beipeng stood aside and said nothing. They were similar to SoftBank in that they both held shares from both ends. If they spoke rashly, their stance would easily be questioned, so they simply stayed on the sidelines.

"Okay, gentlemen, please stop arguing. I finally understand. The biggest disagreement is over valuation."

Although Bao Fan is not worth much, he is a well-rounded person, and he has no interests in either company.

When he spoke, everyone became quiet.

"Are you betting against each other? Let's rely on actual future operating performance."

The investors present looked at each other, don't tell me, this is really a good idea.

"How to bet?" Lin Zhenyang asked.

Bao Fan smiled and said, "Don't ask me, it should be discussed between the two of you. There is no outbound call revenue, profit, etc."

Lu Qi nodded, "Yes, Zhonghe is very confident about its future development."

He glanced at Ruixiang's investors sitting at the long table opposite and said with a smile, "I just don't know if Ruixiang is confident anymore?"

Lu Qi's tone and expression were undoubtedly a provocation in the eyes of Ruixiang's investors.

Tong Shijie seemed confident and responded decisively: "Okay, let's bet on the other side, bet on revenue or profit?"

"Betting on revenue, Penguin has a price-to-sales ratio of 9 times, and Ahri has a price-to-sales ratio of 10 times. We just use the exchange rate. 100 million revenue corresponds to a valuation of 100 million US dollars."

Lu Qi has a very clear understanding of the potential of Zhonghe Group's various business sectors. He can estimate the revenue in the next one and two years with a high probability. He does not believe that Ruixiang's revenue can exceed Zhonghe's.

.

Ruixiang's investors here were a little undecided and turned their attention to Lin Zhenyang.

Lin Zhenyang was also hesitant. He had read Zhonghe's financial report and included all the acquired companies such as Blue Hole, Kuaishou, and Xiaohongshu. Last year's revenue was only close to 40 billion yuan.

Ruixiang's revenue of more than 50 billion is still far behind the boss.

If we compare profits, the revenue balance of Ruixiang is even worse than that of Zhonghe, which is losing money.

“There’s no point in pursuing revenue too much!”

Lin Zhenyang was very cautious and did not easily agree to the revenue bet. Instead, he talked about the truth.

"Isn't there a new media article that has been published recently? It's called "The Unicorn Who Coughs Blood."

There is also a heated discussion in the investment circle this year. LPs no longer pay attention to book returns, but care about DPI cash return rates.

Only the dividends you get are genuine.

Excessive competition and excessive cash burning are unhealthy operating models."

Lin Zhenyang's words deeply attracted investors on both sides. Such honest entrepreneurs are as scarce as giant pandas.

Ordinary entrepreneurs, who cares about the life and death of venture capital institutions? Money that should be burned and money that shouldn’t be burned should never be lenient.

Many investment institutions present have encountered such a problem. The primary market valuation is very high, and the stock price plummets as soon as it reaches the secondary market.

A stock invested with US$2 billion has fallen to hundreds of millions of US dollars. How can an investment institution withdraw? How should it be explained to the LP?

A large part of the reason why this kind of valuation inversion occurs is that startup companies are desperately burning money to expand their scale, and they will return to their original shape when they stop burning money.

"As the saying goes, high revenue does not mean that you are really making money! Entrepreneurship, after all, is a business.

Creating maximum returns for shareholders is the real intrinsic value of a company."

Ruixiang took the lead in applauding the shareholders here, and Tong Shijie even praised it: "That's great. If there were more entrepreneurs like you, it would be much easier for us investors."

Lu Qi would definitely not agree to betting on profits.

Because he knows that whether it is large-scale entertainment or e-commerce business, it will not be profitable within three or two years. Instead, it needs to continue to increase investment. The profitable businesses may be short videos and games.

Ruixiang is different. In addition to cutting-edge businesses such as digital technology, other consumer finance, wealth management, and even mobile payments have begun to make money.

It’s not that Zhonghe is worse than Ruixiang, it’s just that the development stages are different.

Ruixiang has reached maturity, while Zhonghe is still in the start-up stage, and there are too many foundations that need to be improved.

"The Fortune 500 rankings are all based on revenue. How come Mr. Lin says they are worthless?"

Lu Qi smiled and said: "Take Goudong as an example, how did it develop and grow? It is because of its larger revenue than Penguin and Ahri.

A large revenue scale means a steady stream of cash flow."

After hearing this, everyone understood that they were familiar with Goudong's model, which was to press people's payment for goods.

As long as there are no problems with the business, there will be no problems with the capital chain.

Including retail shopping malls, real estate, many companies do this.

"Yes, revenue is the first criterion for judging the size of a company. It does not have to make money or even make a loss. As long as revenue continues to grow, future profits can be expected."

Bao Zheyu strongly supported this statement and gave many examples to everyone, including Hong Kong real estate developers.

"I'm not saying that revenue is not important. Let's continue to take Goudong as an example. It has revenue of 89 billion yuan in a quarter, but its profit is only more than 500 million yuan, and its market value is only more than 50 billion U.S. dollars."

As soon as Lin Zhenyang finished speaking, Tong Shijie continued: "Yes, we also need to look at the net profit margin. The net profit margins of Ruixiang's several businesses are quite high.

Take consumer finance as an example, Ruixiang’s net profit margin is more than 60%.”

"Haha, the net profit margin of Zhonghe's game business can reach 80% or even 90%."

Zhang Liping said without showing any signs of weakness, thinking to himself, don't think that just you have cash cows, we also have cash cows, and the profit rate is higher than your lending.

Ruixiang’s investors have no one to talk to. Which industry dares to compete with gaming? Unless Ruixiang asks for ultra-high-interest loans.

But it’s unrealistic. On the one hand, it’s not compliant and legal. On the other hand, it won’t be big and it won’t be long.

Lu Qi's face was full of smiles. When the game came out, who could compete with him?

Why is Penguin so greedy? It’s not because the cash cow of games gives him the opportunity to lay out the ecosystem, invest in this, and acquire that.

Slowly, the moat was built.

Including WeChat's defeat of MiLiao, which has first-mover advantage, it is also because of krypton gold that it has more servers across the country, which can give users a better product experience.

Running a company is like playing a game. If you want to grow big without spending money, do you need a system or black technology?

Lu Qi read several online articles in order to understand the business, and became obsessed with it. At this moment, he thought of some fragments.
Chapter completed!