My Age of Investment

  Chapter 1537 The Valuation Logic of $30 Billion

   Then, with various complicated feelings, the shareholders followed Xia Jingxing to the super-luxurious conference room on the 50th floor of Block A.

Zhang Yong had been waiting at the door of the conference room early. When he saw the shareholders arrived, he very enthusiastically welcomed everyone into this well-lit conference room leaning against the window, and then he called the administrative assistant to pour a few for everyone. Cup of tea, coffee.

  The crowd sat under the stage, drinking drinks and listening to Zhang Yong, who was standing on the stage, reporting on his work.

   Behind Zhang Yong is a large screen that has just been installed, and a group of financial data is being displayed on the screen at this time.

   "As of the first three quarters of this year, the domestic holding group has created a total of 14.554 billion yuan in revenue. After the fourth quarter revenue is counted, the annual revenue is expected to reach the level of 20 billion.

   This number is exactly double what it was last year!

   That is to say, the revenue of domestic holdings increased by 100% year-on-year.

   Annual revenue growth also exceeded 90% after deducting the financial consolidation of several newly acquired companies. "

   Hearing these sets of data reported by Zhang Yong, the shareholders couldn't help but exchanged glances, and they all saw the shock in each other's eyes.

   After several years of development and mergers and acquisitions, the domestic holding group is already a large Internet company, but it still maintains a rapid development.

   This made the shareholders present have a different mind!

   In the past, they only participated in the A+ and B rounds of domestic holding group financing, and were absent from the C round of financing.

   At that time, they felt that the pre-money valuation of 4 billion US dollars was too high, who knew that a mountain was higher than a mountain.

   It has been almost two years since the C round of financing. In these two years, the domestic holding group has completed a two-level jump in revenue of 10 billion and 20 billion.

   In traditional industries or some mature Internet companies with slow revenue growth, these two levels are enough for them to toss for ten or eight years.

   However, it took only two years for the domestic holding group to achieve this series of breakthroughs.

   So what is the core revenue growth password?

   Zhang Yong soon revealed the answer.

   He pointed to a set of pictures that he just switched with the PPT controller and said: "In the group's total revenue composition, the proportion of game revenue reached 65%, and this figure was only 60% last year.

  Because of the continuous launch of popular online games, our share in the Chinese online game market has reached more than 30%, firmly occupying the first position in the industry. "

   Hearing this, all the shareholders showed such expressions as expected.

  The importance of the game business to Domestic Holdings has become more and more prominent, and it can even be called a game company.

   Zhang Yong smiled and said: "The reason for the increasing proportion of game business revenue is that the first is the rapid growth of the game business, and the second is that the revenue growth of other businesses, including advertising, is too slow.

   In fact, the growth rate of other business revenue is not slow, but compared with the game business, it seems a little slow.

   This is also one of the key tasks of the group next year, to further tap the revenue growth potential of other businesses, and we cannot let the game business continue to dominate the world. "

  Xia Jingxing stared at the financial data on the screen and had a strange feeling in his heart.

   The earliest label of the domestic holding group was a social enterprise, and as a result, it has become a game company.

No way, the game business is really too profitable. If there is no game business, the total revenue of the domestic holding group is less than 10 billion, and it is still "one billion on the domestic network, more than one billion on Weibo, hundreds of millions on Tudou. Kugou Music "Hundreds of Millions" is a combination of things like this.

   It is the game business that makes money too quickly and easily, so so many Internet companies are rushing into the game field regardless.

   At this time, the enthusiasm of Internet companies for games will be staged in the tide of Internet financial entrepreneurship many years later.

   "Games, as the pillar business of the group, contributed a total of 6 billion net profit in the first three quarters of this year."

Hearing this, the shareholders didn't have time to be happy, and only heard Zhang Yong's words change: "But our operating cash flow is still negative, because this year we purchased a building and established joint ventures in South Korea, Japan, and Singapore. , established a WeChat business group, and companies such as Tudou, Kugou Music, and domestic literature are still in the stage of strategic loss…”

   After listening to Zhang Yong's introduction, the shareholders found that Xia Jingxing did not fool them, because Haihai Holdings is now really making money and spending money.

   As a cash cow, domestic games are estimated to have an annual net profit of seven or eight billion, but it is still difficult to support the entire group.

   In the final analysis, it is the domestic holding group that is too tossed, launching WeChat, going overseas, and buying a building... No matter how strong the family is, it can't stand such toss.

   This year, the domestic holding group also acquired two Korean game developers Neople and Smilegate, acquired Sogou, and invested in UC Browser and AutoNavi.

  In the end, the money spent in the past two years is an astronomical amount.

  Fortunately, Neople and Smilegate were priced at US$4 billion, and they adopted additional shares of domestic holdings for acquisition, instead of cash acquisitions, otherwise the cash flow of domestic holdings would have been exhausted long ago.

   Even though a lot of cash was saved in these two large-scale acquisitions, there is still not much money left in the account of Domestic Holdings.

   Zhang Yong soon talked about the lack of money, he said with a wry smile: "The net profit of the company's game business last year was 4 billion, and after wiping out losses in other businesses and R&D expenditures, there was a surplus of 1.5 billion.

   This is because there was no massive investment and expansion move last year.

  This year, just to acquire and invest in Sogou, UC Browser and AutoNavi, we will pay $1.0416 billion in cash, which is almost equal to the cash inflow from the Series C financing.

  Domestic games made little surplus this year. After smoothing out other business losses and various expenses, only 500 million yuan remained.

   At present, there are only 2 billion yuan left in the account of the domestic holding company, which is just enough to pay for the transaction of the domestic building.

   Oh, no, the official sale price of the Hai Nei Building is 2.5 billion RMB, and we have not paid this amount yet.

   If this fee is paid, the cash on our account will be negative. "

   Shareholders were completely dumbfounded. They knew that domestic holdings could toss, but they did not expect such a toss.

   Especially in recent months, including the acquisition of two Korean game makers, tens of billions have been spent.

  Thinking of this, they all turned their attention to Xia Jingxing silently. All the money was arranged and spent by Xia Jingxing, and the start of new financing was also proposed by Xia Jingxing, so they had to doubt Xia Jingxing's true intentions.

   They did not follow the investment in the C round financing, Xia Jingxing contracted it alone.

   Now that the D round of financing is about to be launched, is it possible that Xia Jingxing will do it all by himself?

Seeing the eyes of everyone looking at him, Xia Jingxing thought that they had objections to the price of the building in China, and specifically explained: "The cost of the Fuxing Building is slightly more than the estimated 2 billion yuan, and when it was resold to the domestic holdings, a few more were added. billion, and the price is 2.5 billion.

   Considering the scarcity of land in Shangdi Science and Technology Park and the increase in housing prices in Beijing in the past two years, I think this transaction price is reasonable. "

   "Mr. Xia, we have no objection to the price of the building. This price is indeed a friendship price."

  Xu Xin looked at the shareholders sitting around and smiled: "What we want to ask is about the D round of financing."

  Xia Jingxing heard the song and knew the elegance, smiled and said, "Isn't this asking everyone's opinions?

   There are still many places where domestic holding groups will use money next year, such as overseas WeChat, domestic WeChat, domestic cloud and enterprise service business groups, as well as search engines and other fragmented businesses.

  The only business that we are truly mature is games, Weibo is barely half of it, and other businesses need to invest more.

  Only when these businesses become bigger and make money, the time for the domestic holding group to go public as a whole is really ripe.

   This point, I hope everyone can understand. "

  Lin Xinhe said with a smile: "Mr. Xia, we all understand what you said.

  Penguin has raised more than 10 billion this year. Isn’t it just that they are fighting a life-and-death battle with WeChat?

  I think there is absolutely nothing wrong with the current planning of the group. Just spend what should be spent. Don’t give penguins a chance to breathe because of saving money.

   Also Chihiro is not a fuel-efficient lamp. Now they dominate the search engine market and are sitting on a steady stream of advertising revenue.

  If Sogou wants to tear a piece of meat from Chihiro, it must be determined enough. "

  Chen Hong nodded and said, "That's right, there are still two tough battles to be fought in Haihai Holdings. If we win these two battles, our position in the industry will be completely stabilized."

   Zhu Min smiled slightly, "Jing Xing, just tell me how much you plan to finance. Cybernaut Investment Company will never be absent this time."

  Deng Feng hesitated for a while, and then said, "Northern Light Investment also joined in this round."

  Xu Xin, Lin Xinhe and others were not far behind, and also expressed their intention to participate in the D round of financing.

  Because Xia Jingxing’s family swept the C round of financing, and then acquired two Korean game companies, the institutional shareholders and individual shareholders present, except for Chen Hong, all and institutions The shareholding amount was diluted.

The domestic holding group has shown a rapid development trend. If it does not participate in investment at this time, it may be listed directly later, and there is no chance to invest in the primary market anymore, so everyone quickly made a big deal. The decision must not be absent from this wealth feast.

  Everyone expressed their intention to participate in the D round of financing, which made Xia Jingxing stumped.

   His ideal financing target is actually someone else.

  Xia Jingxing said lightly, "I already understand everyone's thoughts.

   But for this round of financing, I plan to introduce SoftBank Capital! "

   After hearing this, everyone was disappointed. Can't we divide the cake internally? Why are you looking for SoftBank?

   Looking at everyone's puzzled eyes, Xia Jingxing explained: "SoftBank is an international investment institution, and it has also cooperated with us to establish the Japanese WeChat, so it is necessary to further close the relationship with each other."

  Xia Jingxing actually had his own little Jiujiu in his heart. He and Jack Ma negotiated and divided the shares of Alipay, and kicked out Facebook and Softbank.

   Facebook is easy to say, Sun Zhengyi must have an opinion on this.

   Fuxing Mobile and Softbank still have cooperation in Japan, so Xia Jingxing needs to appease, or compensate Sun Zhengyi.

   And the D round of financing of domestic holdings is the compensation cake he gave to Sun Zhengyi.

In the past, Sun Zhengyi always wanted to participate in the financing of the domestic holding group, but Xia Jingxing was not bad at that time, and at that time he did not need Sun Zhengyi to give him a certain degree of care for his industry in Japan, so this matter has been delayed. on.

   Over the past so many years, seeing that the development of the domestic holding group is getting better and better, Sun Zhengyi has not extinguished the idea of ​​​​investing, and he often mentioned this matter when meeting with Xia Jingxing.

   Today's domestic holding group valuation is not a small number, except for PE funds, I am afraid that few people have invested.

   Of course, with the exception of Sun Zhengyi, this master is the master of money.

   "What is the valuation for this round of financing?" Xu Xin asked.

   "$30 Billion!"

  Chen Hong was drinking water, and when he heard this sentence, he almost spit it out. This is really killing Sun Zhengyi as a big fat sheep.

  Other shareholders were also surprised, Zhu Min even widened his eyes and said, "When you acquired Shimankai and Neople some time ago, wasn't it only worth 20 billion US dollars?"

   Everyone focused their attention on Xia Jingxing, wanting to see how he explained.

  Sun Zhengyi is an old river and lake, and this fat sheep is not so easy to slaughter.

  Xia Jingxing folded his fingers and calculated the account for everyone: "After the acquisition of two Korean game companies, the post-investment valuation of the domestic holding group has increased to 24 billion US dollars.

  Acquired Sogou, entered the search engine market, and reached a yearly agreement with 360. At least this market share can reach one-fifth or one-quarter of Chihiro’s.

What is the market value of   Chihiro? Over $30 billion!

   Calculated at $30 billion, multiplied by one-fifth, equals $6 billion.

  24 billion plus 6 billion, doesn't it equal to 30 billion US dollars?

The equity of   Hai Nei Building, UC Browser and AutoNavi Software is worth more than 1 billion US dollars in total, and this part is given to Sun Zhengyi as a fraction. "

   After understanding Xia Jingxing's god-level valuation logic, everyone had nothing to say.

   seems to make some sense, but I vaguely feel that something is wrong.

  Xu Xin smiled and said: "Mr. Xia, Sogou's current market share is in the single digits, and it is still a long way from the double digits.

Will Sun Zhengyi recognize things that have not been realized yet? "

  Xia Jingxing raised his fingers again and said: "Sogou browser, UC browser, 360 browser and website navigation, these products all add up to at least 60-70% of the browser market share.

   They all use Sogou’s search engine by default. How much traffic will this increase for Sogou?

   And I have also negotiated with Jack Ma, Sogou will continue to maintain cooperation with Ali to develop e-commerce search.

  The social network resources of the domestic holding group will also be open to Sogou.

   With so many resources superimposed, Wang Xiaochuan is a pig, and he can also grab Qianxun’s market share of more than ten or twenty points. "

   Everyone nodded involuntarily, it seemed to make sense!

   If you can't beat Chihiro, you can at least tear a piece of meat from it.

   President Xia's valuation logic, I see it!

Chen Hong laughed and said: "If you can convince Sun Zhengyi to invest according to the pre-investment valuation of 30 billion US dollars, then Hanergy Investment will also join in the investment, the share will not be too much, and the existing shareholding will not be diluted. ."

   "Yes, as long as Cybernaut is not diluted."

   "Count in today's capital!"

  …

  Others spoke in succession, all requesting to join the investment, but the requested financing share is not high, and it is enough to maintain the existing shares without dilution.

  Xia Jingxing thought for a while, then nodded and said, "Everyone is so kind, I don't want to make everyone feel cold.

  Financing according to your plan! But we must act fast, and the financing must be in place before the new year! "

   (end of this chapter)