Chapter 173 Set a Small Goal

Zhuangyu Catering, General Manager’s Office.

Su Kai and Yuan Li sat opposite each other and talked about interesting things about company operations and investments.

"Mr. Yuan, with all due respect, Sequoia can fully absorb all the shares released in your company's A round. Why don't we let Sequoia invest in the A round alone?"

Su Kai finally showed his true colors.

A mere 2% of the shares could not satisfy his appetite at all.

A valuation of 1 billion U.S. dollars was an astronomical figure that was difficult for the newly established Black Ant Capital to accept.

But for Sequoia, it is just barely acceptable.

Usually, Sequoia will enter the market after the B round.

Su Kai was also in Chengdu on a business trip. He heard that the queue at this hotpot restaurant in Chengdu is two hours long.

I came here to check in and instantly became interested in investing.

"Boss Su, I believe that with Sequoia's strength, it is only a matter of time before it replaces Black Ant Capital as the institution with the largest stake in Lawang."

Yuan Li did not refuse directly, but her meaning was very clear.

"Can…"

Just as Su Kai was about to continue fighting, there was a knock on the door.

"Enter."

Yuan Li smiled apologetically at Su Kai and called in the secretary who was knocking on the door.

"Mr. Yuan, Mr. He and Mr. Zhang from Black Ant Capital have arrived at the conference room. They want to sign the equity purchase agreement as soon as possible."

The secretary who came in was Lai Manling, who had impressed Qi Sheng so much at the annual meeting.

After the new year, Zhuangyu Catering was busy expanding and also opened some positions within the company.

Lai Manling defeated many competitors and became the secretary that Yuan Li admired very much.

“Don’t they need due diligence?”

Yuan Li was stunned for a moment, then suddenly looked at Su Kai and smiled silently.

No wonder Black Ant Capital is so anxious, as Sequoia, the big brother of the venture capital circle, is eyeing it covetously.

There is no time to worry about due diligence. I can only feel at ease after signing the contract.

"Mr. He is here?"

Su Kai smiled when he heard this and said, "Mr. He and I are old friends. We invested in Pop Mart together at that time. I didn't expect that we would invest in Lawang together."

"This shows that both Mr. Su and Mr. He have excellent investment vision."

Yuan Li thought of her initial worries and suddenly felt a little emotional.

At that time, she felt that the US$1 billion valuation offered by Qi Sheng was a bit too outrageous.

As Black Ant and Sequoia came to her one after another and both approved the valuation, she felt completely emboldened.

Even the venture capital firms that came to consult her later were all blocked by her using this valuation.

If you don't agree with this valuation, there's no need to waste each other's time.

A valuation of 1 billion U.S. dollars is enough to keep out many venture capital firms with more conservative investment philosophies or weaker strength.

But good projects will never lack investors.

Black ants and redwoods obviously both have vicious eyes.

"Mr. Yuan, if you don't mind, I'd like to say hello to my old friend as well."

Su Kai could imagine how anxious He Yu was.

This is Sequoia’s position in the venture capital circle.

Once a high-quality project is spotted by Sequoia, small and medium-sized venture capitalists will have no chance to enter the market.

The valuations will be so high that they simply cannot afford it.

"Well, Mr. Su, please."

Yuan Li smiled and made an inviting gesture, then walked towards the meeting room with Su Kai.

…

Inside the meeting room.

He Yu has been drinking tea since he came in.

This was a subconscious action he made when he was nervous.

"Lao He, stop drinking. Aren't you afraid of your bladder exploding?"

"I watched you drink water and I felt like going to the bathroom."

Zhang Peiyuan looked at his old partner speechlessly, but he also understood his feelings.

Driving all the way from the airport, He Yu kept asking the driver to speed up along the way.

I’m afraid I’ll miss out if I’m too late. Lawang is a dark horse in the catering industry with the potential to become a super unicorn.

"Isn't Mr. Yuan here yet?"

He Yu subconsciously looked at his watch.

Although he had only been in the conference room for less than ten minutes, he felt as if the day had passed like a year.

"It will be soon. The secretary has gone to report."

Zhang Peiyuan also became nervous and suddenly heard the crisp sound of high heels stepping on the ground.

“Here it comes!”

Zhang Peiyuan and He Yu looked at each other and couldn't help but smile at each other.

Director Qi is such a trustworthy person! "I'm sorry, Mr. He, Mr. Zhang, I was just meeting Mr. Su, so I couldn't greet him right away. I hope you don't mind."

Yuan Li walked in with a smile and was the first to give the two of them a reassurance.

"Haha, we will be a family from now on, there's no need to be so polite."

He Yu quickly shook hands with Yuan Li.

Looking at Su Kai who followed behind him, he immediately felt lucky.

He just missed the opportunity to invest in Lawang.

"Mr. He, long time no see."

Su Kai smiled and stretched out his hand, greatly admiring the vision of this old friend.

"Boss Su, I didn't expect you to also be interested in Spicy King. Luckily I acted quickly."

After He Yu shook hands with Su Kai, he quickly took out the prepared equity purchase agreement.

"Mr. Yuan, I have filled out all the contract details. The valuation is 1 billion US dollars. Our Black Ant Capital holds 3% of the shares. 30 million US dollars will be deposited into the Spicy King account within a week."

Yuan Li smiled and nodded, carefully reviewing the details of the contract. Only after making sure there were no problems did she sign and stamp it.

"Mr. He, welcome Black Ant Capital to the La Wang chariot, and congratulations on becoming the second largest shareholder of La Wang."

He Yu breathed a sigh of relief and waved his hand with a smile.

"Don't tease me. With only 3% of the shares, I am nothing but the second largest shareholder. What's most important is to be able to get on board."

"Mr. Yuan, since Black Ant Capital has already signed the equity purchase agreement, we will complete the investigation process as soon as possible. Within a week at most, we will also deposit 20 million US dollars into your company's account."

Su Kai changed the subject and said, "But I hope to add a small clause. If Lawang conducts a B round of financing, Sequoia will be eligible for priority investment rights."

"That's no problem. I can promise you on behalf of Mr. Qi."

Yuan Li doesn't mind a small priority investment right.

This also means that Su Kai and Sequoia are very optimistic about Lawang.

"Then I wish us a happy cooperation, and hope that Lawang will surpass Haidilao soon!"

Su Kai smiled, stretched out his hand, and told Yuan Li his expectations for the Spicy King.

“Haidilao?”

Yuan Li smiled faintly, "It's just a matter of time."

From the beginning to the end, Yuan Li never regarded Haidilao as a real competitor.

In terms of sales per square meter per store, how can Haidilao compare with Lawang? "Haha, I admire your spirit. Mr. He and I will definitely make a lot of money from this investment."

Su Kai was stunned. He didn't expect Yuan Li to be so crazy.

I have to say that Yuan Li’s arrogance is indeed well-founded.

Thinking about the 20 Lawang stores in the southwest region that will open soon.

This will be an excellent opportunity to test the true quality of Spicy King.

Even if the turnover is only 1/5 of that of the main store in Taikoo Li, the net profit can be maintained at 1 million per month.

Su Kai also has the confidence to convince Mr. Shen, the person in charge of Sequoia China.

Lawang was valued at 5 billion US dollars, completely defeating other competitors.

A mere 2% of the shares is certainly not something that a top venture capital firm like Sequoia would be satisfied with.

As the two venture capital firms signed equity purchase agreements one after another.

Spicy King became famous overnight and became a new star in the catering industry.

At the same time, Lawang, which received 30 million US dollars from Black Ant Capital, has the confidence to make rapid progress.

Banyan Tree Group officially announced its Banyan Tree hotels.

In addition to Banyan Tree, there will be branches of La Wang.

Although there are not many Banyan Tree hotels in China.

But for Lawang, which was established not long ago, it is undoubtedly a great help.

Many venture capitalists who were still hesitating and waiting could no longer sit still.

They all contacted Yuan Li, wanting to get on the bus early.

But for Yuan Li, Lawang is not short of money at all now.

The most urgent task is to select a location and renovate the stores so that other branches can open as soon as possible.

Use outstanding performance to blind the eyes of these hesitant venture capitalists.

…

While Yuan Li was working hard for her grand cause.

Qi Sheng was leisurely bringing his three little ones to Sanya.

There is no mistake in the poem, post, content, and read the book on 6, 9, and bar!

It was quite pleasant to travel by car all the way.

Along the way, we met many self-driving travelers.

The tens of millions-level Cullinan still shocked many people.

Especially when resting at a service area, the car will often be surrounded by a group of people watching and taking pictures.

"Wow, brother, the sea is so beautiful!"

After parking the car on the ferry, Qi Sheng and the three kids got out.

Feeling the slightly salty sea breeze blowing on your face, all the fatigue from the journey disappears.

"I'll buy a yacht in the future, and then we can go out to sea as a family."

Qi Sheng looked at the somewhat dirty ferry, which was definitely incomparable to the luxury yachts he found on the Internet.

Arriving at the dock, Qi Sheng drove the car down.

Carrying the three little ones, we headed straight to the Banyan Tree Hotel in Sanya.

Banyan Tree Hotels in China.

Sanya is probably second only to Shanghai and is highly praised by many Banyan Tree fans.

Banyan Tree, located in Lover's Bay at the foot of Luhuitou Mountain, is the first all-pool villa resort in China.

See Qi Sheng’s Cullinan.

The hotel doorman came running over at the speed of a 100-meter sprint.

He opened the car door for them attentively.

"Hello, boss."

Qi Sheng was in a good mood and smiled at the doorman.

"Boss, I have already notified Mr. Ni for you. Please wait a moment."

When the doorman saw Qi Sheng’s smiling face, he immediately became excited and reported.

"Well, no rush."

Qi Sheng also knew that the general managers of these hotels all wanted to gain points crazily in front of him.

While Mr. Ni hadn't arrived yet, Qi Sheng and the three kids looked around the hotel with interest.

The 49 pool villas adjacent to the tropical lagoon are hidden among the 130,000 square meters of tropical gardens.

Although there is no particularly outstanding design, the tropical-style architecture is coupled with palm trees swaying in the wind.

It will also make people feel relaxed.

"Boss, I'm sorry to have kept you waiting."

A middle-aged woman wearing a white women's suit and with neat short hair walked over quickly in high heels.

"Your name is Ni Fang?"

Qi Sheng smiled and shook hands with her.

"I've seen your profile. You previously worked as an executive assistant manager at Ringha and Banyan Tree Shangri-La."

"The Banyan Tree Resort in Sanya is managed quite well by you."

"Thank you for the compliment. To be honest, the owner of our hotel has not been very satisfied with the hotel's performance. Recently, he has been planning to put the entire property, including the hotel, up for sale."

Ni Fang has also heard about the recent changes in the group.

This big boss is obviously a decisive and swift person.

First, the Xi'an Meibei Lake project was halted and the Banyan Tree was announced to be withdrawn.

Wang Huazhang was sent to inspect the Dayan Pagoda scenic area and to select a new location for a store.

In Hangzhou, it spent 680 million yuan to acquire the Sofitel West Lake Hotel.

And they are prepared to spend an additional 320 million yuan for a comprehensive renovation.

It will cost a total of 1 billion yuan, which is a huge investment for the Banyan Tree Group, which has always operated with light assets.

Obviously the pressure was great, and it almost hollowed out the group.

But I have to say, Qi Sheng’s actions.

It has greatly enhanced the morale and sense of pride of the entire group.

The former Banyan Tree Group, under the control of the Ho family, was somewhat conservative.

Only Banyan Tree can barely compete with many luxury hotel brands.

The latest group brand positioning after Qi Sheng took over.

Even these professional managers could not help but feel secretly frightened.

The price increase across the board is somewhat unfriendly to Banyan Tree fans.

But it is indeed a significant improvement to Banyan Tree’s brand value.

"How long will it take for the operation and management contract we signed with BTG to expire?"

Qi Sheng looked at the three little ones chirping excitedly and couldn't help but laugh too.

"The contract was signed for 15 years. We started operating and managing it in 2008, and it expires in April 2023."

Ni Fang complained a little aggrievedly: "Boss, it's not that I and all the hotel staff are not attentive, but that the appetite of the Beijing Tourism Group is too big."

"Our hotel is part of the first phase of the project, covering a total area of ​​100 acres, and the business has always been profitable."

"But Beijing Tourism Group has been hoarding the land for Phase II and has not developed it for more than ten years."

"There is now a 200-meter sea protection line above, and this piece of land will be directly expropriated by the local authorities."

"They are a little overwhelmed, so they are planning to sell the hotel and the land as a whole."

Qi Sheng nodded suddenly, no wonder the other party was so anxious.

Originally, I wanted to hoard the land and wait for the price to continue to rise.

Now, the local government directly wants to recycle it.

The capital cost alone is enough to make CITS Group pay a heavy price.

Qi Sheng asked casually, "How much did we invest in the first phase of the land and the hotel?"

Ni Fang answered without thinking: "The total investment for the first phase is 750 million yuan, including more than 100 acres of land."

"Our hotel's annual turnover is 40 million, of which guest rooms account for 70% and catering and health spa account for 30%."

"The average room rate is 4,500 yuan, and the average occupancy rate is only 34%."

After Ni Fang finished speaking, she felt a little embarrassed and didn't dare to look at Qi Sheng.

This performance is really not impressive.

“The occupancy rate is OK, but the turnover is not as good as the Banyan Tree in Xixi Wetland.”

Qi Sheng frowned slightly, but did not blame Ni Fang too much.

"As you know, a hotel should be renovated after about 10 years."

"Given the current situation of BTG, it is impossible for it to pay even a penny."

"Our hotel's hardware facilities are constantly aging."

"Every year, new five-star hotels open in Sanya, diverting a lot of our customers away."

Ni Fang was indeed very depressed.

When she first took office, she was also ambitious and wanted to achieve some results.

However, the non-cooperation of CITS Group has dealt a heavy blow to her hotel operations.

The He family is extremely stingy, and it is impossible for them to give the group more money for no reason.

"Only 600 million?"

Qi Sheng glanced at the system's forced acquisition offer.

It only costs 600 million yuan to acquire these more than 100 acres of land and the property where the hotel is located.

He certainly doesn't have the money right now, but that doesn't mean he won't have it in the future.

Let’s set a small goal for now.

Once we have enough money, we will buy the entire first phase and get rid of BTG.

(End of this chapter)