Chapter 91 Big News

After returning to Feiying Entertainment’s Beijing headquarters.

Wang Yanfeng pays special attention to the news from Tengying Entertainment and Feiyangyang.

He couldn't believe that a fruit seller could have such a high level of business acumen.

How could a street fruit vendor like him think of something that even the son of a real estate tycoon himself had not thought of?

End of February.

The front-page advertisement of Wangfujing, the most visited street in Beijing, was replaced with Shuiyunjian, which is endorsed by Yang Mi.

The whole introduction can be summed up in one sentence: Shuiyunjian is a private beauty space for high-end women.

There is no need to introduce who Yang Mi is.

Shuiyunjian has a branch in Shijingshan, which is quite big.

He didn't know much about where this kind of woman spent her money, but he knew that his mother spent tens of millions every year on this.

It is indeed a highly profitable industry.

At the same time, a large number of introductions to Shuiyunjian appeared on the Internet.

Like a private club for wealthy women, the best choice for tasteful women.

A luxurious place that high-end women must visit in their lifetime.

Rich, tasteful, high-end, look at these words.

Isn't it just for rich women?

This bastard is not only capable of affordable catering, but can also cross over into high-end health and beauty.

He wasn't too concerned about Shui Yunjian. After all, there were only a few of them and there wasn't much to pay attention to.

Early March.

Four Feiyangyang stores in shopping malls opened on the same day.

Zhao Liying cut the ribbon personally, which was exactly what his military advisor had expected.

On the same day, Feiyangyang officially established Feiyangyang Catering Management Co., Ltd.

And announced Zhao Liying as the network recommendation officer.

A large number of trending search terms appeared on the Internet on the same day, which shows that they are deliberately controlling the direction of public opinion.

Manipulate traffic.

The next day, Tengying Entertainment announced the establishment of Tenghui Capital Investment Co., Ltd.

And officially announced the first investment project.

Independently completed Feiyangyang's RMB 100 million Series A financing.

Zhao Liying also officially became one of the original major shareholders of Feiyangyang.

A series of actions took place as expected.

If he hasn't reacted yet, he would be really stupid.

Tengying Entertainment has suddenly entered the two major fields of investment and physical catering.

The entertainment industry is just a less important business.

Using the traffic in the entertainment industry to create a capital game is Chen Pingsheng’s real core plan.

"Master Wang, have you watched the news?"

Zhang Geming is in his early fifties. He has followed his father for more than ten years and is now assigned to support his son.

He has published many important articles in the field of economics and is absolutely well-known in his professional field.

"I saw it."

Wang Yanfeng lost his usual cynicism and spoke seriously, "Finance, entertainment, and online, countless hot topics about Tengying and Feiyangyang suddenly appeared. It's hard not to attract attention. Teacher, it's exactly as you guessed."

"Yes." Zhang Geming said, "Tenghui announced an investment of 100 million yuan in Feiyangyang, which will be paid out over ten months. The first 10 million yuan was invested in the Second Ring Road. We expect five stores to be renovated and opened simultaneously here."

“What is the capital market’s reaction now?”

“There hasn’t been much reaction yet.”

Zhang Geming sat down and said, "In recent years, the main track for capital investment has been the mobile internet. The catering industry hasn't received much attention from investors. This is mainly because it is too difficult to support and requires a series of professional support. In addition, store investment is a heavy investment."

"One hundred million is only enough for Feiyangyang to open fifty stores in Beijing."

"Doesn't that mean he has no future?"

"You're wrong."

Zhang Geming said: "Food is the second most important of the four major consumer items, namely food, clothing, housing and transportation. It was not the focus of major investors before because no one could find a shortcut in this area.

"Most internet executives who have gone into the restaurant industry and tried to use internet thinking to change the restaurant industry have almost always failed, which shows how difficult it is."

"But look at the Feiyangyang business. If the four new stores can do as well as the first one, it will prove that Chen Pingsheng truly understands the catering industry and can replicate Feiyangyang quickly."

"This is crucial, and it also depends on whether Feiyangyang can be truly accepted by the capital market."

It's rare to see his teacher speak so highly of a startup.

Just as his teacher said, there are many Internet executives working in the catering industry, but only two of them are truly successful.

There are definitely extremely high barriers between traditional industries and Internet companies.

It doesn't mean that you can do it well just by having Internet thinking.

But Chen Pingsheng is different. He started his career in the traditional industry.

It has extremely high traditional operational capabilities and is very familiar with chain operations.

Haven’t you seen how good the business of Tengsheng Fruit Supermarket is? It’s popular wherever it opens.

He is now using Internet thinking to boost traditional industries.

To put it bluntly, the core is to manage Feiyangyang itself well, and then supplement it with traffic from the entertainment industry and money from the capital market.

Quickly build a giant catering group.

It is very likely that after Feiyangyang becomes successful, it will also take this opportunity to expand into the catering industry in multiple fields such as milk tea, late-night snacks, and Haidilao.

"Teacher, if he can really replicate Feiyangyang and his business is booming, what will happen next?"

"What happened?"

Zhang Geming slowly lit an old cigar and crossed his legs:

"If he succeeds, the next step will naturally be to initiate Series B financing. I estimate the valuation will be around 500 million. The first share dilution may not be too much, at most 30%."

"After receiving the Series B funding, there's a high probability that they will move out of Beijing and into Guangdong or Shanghai. Once Feiyangyang can successfully operate across provinces, its valuation will skyrocket."

"It will definitely not be a problem to push the C round to 2 billion in one go."

This is how valuation works. It’s not just worth what the assets themselves are worth.

But it is worth whatever you think it is worth.

Of course, the price has to be accepted by someone before it counts.

Feiyangyang has actually invested more than 100 million yuan, and has the endorsement of big stars like Zhao Liying.

Tencent Entertainment also provides it with a steady stream of traffic.

Five hundred million for round B is definitely a conservative estimate.

If this were an Internet company, it would directly reach 30 to 50 billion.

Round C is the real key. Feiyangyang must first prove that it can not only operate well in Beijing, but also grow bigger and stronger in other provinces.

Only by not being limited to one place can it truly prove that it has the ability to expand into the national market.

By then, two billion was definitely a conservative estimate.

Lots of people will rush to buy it.

Before the final listing, tens of billions may not even be a dream.

The capital market is like this. You can make money with it, and it can take you to soar to new heights.

Zhang Geming felt that this was still the most conservative estimate.

Compared with Wang Yanfeng, who started his own business with five small goals in mind, his methods are many times more sophisticated.

He just disagreed with investing in a money-burning movie like The Great Wall.

But Wang Yanfeng himself thought that LeTV was powerful and its stock price was soaring, so even if the movie didn't make money, as long as it didn't lose money, it would be fine.

No one else has this idea.

Tengying is completely different. It simply creates a gameplay that suits it best.

As long as they can successfully play the Feiyangyang deal, Feiying and the others will not be able to catch up even if they try their best.

The difference is obvious.

(End of this chapter)