Chapter 177 The Prosperity of the Magic City
Chen Pingsheng borrowed 200 million yuan from his wife for cash flow.
Used to accelerate the development of Tengsheng Fresh.
In addition to the profits that his wife receives on the 15th of each month, she also receives 15 days of Shuiyunjian's operating funds and a 30% risk fund.
The 15-day operating funds are easy to understand, that is, the money will not be paid from the 1st to the 15th.
Only dividends from the 1st to the 30th of the previous month will be distributed.
All traditional stores will retain at least ten days of sales cash.
As for the 30% risk fund, it must be retained every month.
The same is true for Tengsheng Fruit, for example, a profit of 100,000 yuan a month.
Only 70,000 will be distributed, and the remaining 30,000 will be used as risk capital.
This money is not used normally, but it will be used if there are major changes in the market or policies.
Risk funds can ensure that the company can survive a dangerous period.
The more risk funds accumulate, the stronger the company's ability to resist risks.
He was a little short of money.
The presidents of three banks came over at the same time.
"Mr. Chen, when can you take care of my business? I can provide you with 500 million to 1 billion in funds. As long as you use Shuiyunjian's shares as collateral, I promise to give it to you within three days."
"I can also give you 500 million. You just need to mortgage your shares in Tengying."
Many people think that they need to please the bank to get a loan, but this is actually wrong.
For truly high-quality companies, banks will beg you to lend money.
Forget about trying to please the president, it's true that the president came to please him.
Chen Pingsheng kindly invited them to have dinner and leave.
He himself is actually not short of money, and the funds he can mobilize at any time will not be less than 500 million.
Both Shuiyunjian and Tengsheng Fruit have a lot of venture capital.
Borrow money from the bank?
When things are going well, there is no problem, but once things go badly, this money will become a life-threatening curse.
He always does things according to how much money he has.
We have never used bank leverage to speculate in real estate, storefronts, or develop companies.
Although the development speed may be slower, it is stable.
When the market is booming, those bosses who use high leverage to develop their businesses will naturally be in the limelight.
Once the market ebbs, these people run faster than anyone else.
If you don't run, you're waiting to die.
He doesn't need it. If the market really deteriorates to that point, whoever can't hold on will go bankrupt.
He just doesn't believe that none of these companies can survive.
When that day really comes, only one thing will happen: war.
Otherwise, he would adopt a steady development approach, not caring about small risks at all, and could withstand big risks for a period of time with the help of risk funds.
There will never be a day when Qiqi can no longer hold on.
The market is volatile and no one knows what will happen in the future.
The best thing Chen Pingsheng could do was not to be reckless or blind.
The money borrowed from my wife also needs to be repaid.
Don’t affect Shui Yunjian’s own development.
In the blink of an eye, it is late May again.
Tong Zelan called him and asked him to go to Shanghai.
Officials in Beijing are of low status, and money in Shanghai is scarce.
If your net worth is not over 10 billion, who dares to call themselves a wealthy family?
Feiyangyang’s Series C financing is about to start, along with the launch of Bobo Milk Tea’s listing plan and the sales plan for Hua Qiangu’s peripheral products.
He had to go there in person.
The total distance from Beijing to Shanghai is 1,200 kilometers, and it only takes about two hours by plane.
Chen Pingsheng brought two big bodyguards and a big lawyer with him and set off directly to Shanghai.
Tong Zelan’s Honglan Capital is located right next to the Bund, in a Republican-style building that is magnificent.
Only by visiting the Bund can you truly understand what a financial city with a vast territory is.
This place exudes luxury everywhere.
If you have money and come here, it is heaven.
I don’t have money, so even the most remote little hotel costs three hundred a night.
This truly illustrates the extreme gap between the rich and the poor.
When Chen Pingsheng got off the plane, it was Tong Zelan who came to Beijing to pick him up.
She was riding in a stretched Rolls-Royce Phantom, driven by a driver.
There is also an Alphard following behind.
The bodyguards and lawyers he brought with him all sat in the car at the back.
The extended version of Phantom is very private, and you can't hear much noise outside when sitting in it.
It just felt like the scenery was receding while they were moving forward.
All the way from Hongqiao Airport to the famous Nanjing Street, even the air smells of perfume.
Different from the low-key Guangdong, Shanghai is most particular about the petty bourgeoisie style.
Commonly known as accent.
There are the most coffee shops here, and they can be found everywhere along the road and in the center of the street.
Just sitting there and having a couple of drinks is so bourgeois.
Tong Zelan took him all the way to her own Honglan Capital, mainly to introduce him to a few people.
The middle-aged man with glasses and a well-tailored suit was none other than Ana Shen.
It claims to have invested in half of the Internet.
Manages hundreds of billions of investment funds.
The jeweled woman on his left is none other than the investment queen Xu Xin, who rose to fame by investing in Jingdong.
There are two others next to him, one of whom is a descendant of the famous Guo family in Hong Kong.
Belongs to the third generation of family heirs, a top wealthy family.
Another one is the tycoon named Xu who is known as the God of the Stock Market.
Of course, so many wealthy people didn’t come here just to wait for him.
Instead, we are waiting for an Internet newcomer who specializes in content distribution and short video recommendations.
According to him, what he makes can perfectly fit the fragmented time of modern people.
Use super information computing capabilities to allow users to browse their favorite information or short video content.
Although this thing sounds simple, it is actually as difficult as climbing to heaven to actually do it.
It needs to quickly identify each customer's favorite content based on their habits.
Then distribute and recommend from the massive amount of content.
Finally, he presents what he likes to the customer.
The computing power required is beyond imagination.
certainly.
A project that can attract so many big names must be no simple task.
The introduction lasted more than ten minutes, and a lot of questions were asked throughout.
When it came time to finally announce their valuations, everyone hesitated.
A project that was established less than three years ago is valued at 7 billion... US dollars.
30% of the shares can be diluted, and the amount of funds obtained is US$2.1 billion, which is about RMB 15 billion.
Shanghai is Shanghai. This project is so big that even Chen Pingsheng himself finds it hard to imagine.
Compared to what he has done, this valuation is truly beyond imagination.
Everyone wants to invest, but they all think the valuation is too high.
15 billion is a huge amount of money for anyone.
Even if Chen Pingsheng wanted to invest, he couldn't afford it at all.
At least I can't afford it now.
Tong Zelan is similar. Her family is rich, but she herself doesn't have much.
The projects that have been invested have not yet reached the payback period.
A project valued at 7 billion US dollars, no one can easily swallow it except Penguin and Alibaba.
She could only pass by.
As for Shen Nanpeng and Xu Xin, they both have the ability, but they still think that the valuation of this project is too high.
A perfect miss.
That's how investing is, you never know what you might miss.
I don’t even know whether this thing I picked up will be successful in the future.
If you invest in one, like Masayoshi Son did in Ali, then you will be the god of the investment world.
There is only one such person in ten thousand, and most people will miss the opportunity.
It’s like you are rich, and someone comes up with this concept and asks you to invest 15 billion. I wonder how many people would dare to invest in the future?
The gentle and polite founder of Douyin left just like that.
…
Come to Shanghai.
Chen Pingsheng also experienced what a high-end project is.
A project that has been valued at US$7 billion in less than three years since its establishment.
Compared to his, it is indeed much better than that.
It's a pity that he doesn't have the ability to participate in such a project at the moment.
Of course, those who are capable also missed it.
Tong Zelan didn't invite him here to participate in this kind of project investment.
Bobo Milk Tea is currently developing very well.
"Hua Qian Gu" is about to be broadcast in June, and then we just need to launch a co-branded product.
The franchise sector is bound to go further.
According to her prediction, if Bobo Milk Tea continues to develop in this way.
There will definitely be no problem with a valuation of 2 billion to 2.5 billion when it goes public by the end of the year.
When the IPO process is completed, she can directly cash out hundreds of millions of dollars from her shares.
With an investment of less than 20 million, you can get back 300 to 400 million in a year.
This was undoubtedly very successful.
At least Tong Zelan is now very satisfied with the development of Bobo Milk Tea.
Therefore, she also took the initiative to take on the responsibility of completing Feiyangyang's C round of financing.
Currently, Feiyangyang has more than 80 self-operated stores in Beijing and more than 50 in Shacheng.
That adds up to about 140 directly-operated stores.
Plus headquarters training institutions in the four first-tier cities.
The monthly turnover is steadily over 120 million, and the annual operating income is around 1.5 billion.
It is already a catering group of considerable size.
With such a scale, it is not difficult to achieve a valuation of 1.5 billion.
The catering industry does not have the same boom as Internet companies.
Otherwise, based on its financial statements showing a net profit of over 50 million this year, its valuation on the Internet would be at least several billion.
The restaurant industry obviously hasn't made that much progress.
She found four or five venture capital groups and asked Chen Pingsheng to introduce them privately, and then she easily raised 450 million yuan.
The cost is a 30% dilution of the shares.
He originally held a 49% stake, but after this round it has dropped to 34%.
The key is that Feiyangyang’s financial report is indeed good. With the support of such financial report, the company can achieve stable income while still developing rapidly.
That proves that the management is in place.
There is full potential for further development.
Even if it cannot be listed within the specified time limit, as long as it makes a profit and does not lose money.
I can easily get through a few more years.
As I said, it is easier to make money if you don’t lack money.
For people who are short of money, the capital market is quite picky.
Not to mention those that made losses, no Internet company made money in the early stages.
Tencent Film has not yet officially started the process of going public, so its financial reports are not released to the public.
But Tong Zelan is very clear that Tencent Pictures’ financial report this year will definitely not be bad.
There were quite a few projects invested in last year, and they will all start to reap the rewards this year.
Once Tengying starts the process of going public, this company will definitely be the most valuable corporate asset in Chen Pingsheng's hands.
The main reason is that he alone took 90%.
The 5% given to Yang Mi and Zhao Liying will only be redeemed after ten years.
That is until 2024.
Once this company is worth tens of billions, Chen Pingsheng will be considered a master in the capital market.
Even in this great Demon City, its status is definitely not weak.
The investment in Bobo Milk Tea was originally an attempt at a fast-paced project.
The so-called fast-hitting projects are those that require light investment, develop quickly, and go public very quickly.
Once Bobo Milk Tea became successful, Tong Zelan suggested that Chen Pingsheng switch to coffee.
The milk tea market is prone to fierce competition because of its low threshold.
Then a coffee shop is a startup project with a very high threshold, and there are not many customers for this kind of project.
Most of them are elites or white-collar workers in companies.
Starbucks is undoubtedly the most popular coffee shop in China.
When milk tea is launched on the market, it may only be worth tens of billions, but once coffee is launched on the market, it will be worth at least hundreds of billions.
That's the difference.
Of course, this is all in the past.
Now let’s just talk about the coffee market.
In fact, Tong Zelan invested the most in Internet projects, but unfortunately Chen Pingsheng didn't do any Internet projects.
Even when I advised him to turn Shuiyunjian's door-to-door service into an Internet project, he refused.
Then she wouldn't talk about the Internet in front of him.
Because Chen Pingsheng mainly focuses his energy on traditional industries, Bobo Milk Tea is just an attempt by young people to join the consumer market.
Facts have proven that he can sell fresh fruits and milk tea well.
There are not many industry barriers.
As long as he has Tencent Film's star resources, he can easily overcome these industry barriers.
Tong Zelan was also quite interested when she heard him talk about splitting off Tengsheng Fresh.
It's obvious.
Tengsheng Fruit, which has blossomed all over Beijing, will now focus on developing its own fruit supermarkets and community fruit stores.
The newly separated Tengsheng Fresh Food will specialize in the development of chicken, duck, fish, meat, vegetables and fruits.
Chen Pingsheng showed Tong Zelan the financial statements of Tengsheng Fresh.
Tong Zelan was startled.
The sales of a single Tengsheng Fresh store actually remains over 200,000 yuan every day.
The lowest monthly sales of a single store is around seven million.
There is indeed a huge market for all categories of fresh produce.
There is a huge flow of people.
It can almost drain all the fruit shops and small vegetable shops within a kilometer radius.
The store's net profit remained at around 5%.
According to this financial report, the profit of a single store is around five million per year.
Invest for one year and you can get your money back in less than a year.
The bigger the investment, the bigger the return.
If Tengsheng Fruit did not want to develop its own fruit plantation, it would not have developed this side independently.
All we can say is that there is indeed huge market demand in the fresh food market.
Once we can do this well, the future will definitely be good.
Chen Pingsheng has just invested 100 million yuan himself, with the goal of opening about 25 more stores in Beijing. He is not short of money for the time being.
There is no need to raise funds by diluting shares.
Even if Tong Zelan wanted to invest some money in him, she had to wait until he was short of money or wanted to raise funds.
This is a high-quality project!
He doesn't lack money at all, unless you can help him with something.
Otherwise he would not accept your investment.
Good projects are always pursued by investors.
She felt it was a pity anyway.
As the fresh produce on his side gets better and better, Feiyangyang saves on costs.
He also plans to cooperate with He Bijun to develop his own agricultural breeding base next year.
Specializing in agricultural breeding.
Go to the countryside to contract a large amount of wasteland to grow organic vegetables and raise high-quality chickens, ducks, fish and cattle.
I definitely won’t do the cheapest one because the profit is too low.
It’s like some vegetables in the countryside that you work hard to grow for a year, but when the wholesalers come to quote the price next year,
It's only a few cents per pound.
Even if you grow this kind of vegetable until death, you will never make money.
If they grow vegetables, they must be able to earn 20 yuan per pound from growing a cabbage.
Just say it’s organic and natural.
People in rural areas don’t eat it, but rich people in cities who focus on health preservation like to eat this kind of high-end vegetables.
This is what they want to do.
Anyway, it is impossible to grow something that is too cheap.
He is now fully developing agricultural projects, and will enter these areas sooner or later.
Anyway, you can sell what you grow yourself.
How can you not make money?
(End of this chapter)
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