My 1999

Amazon has been losing money since the beginning of its logistics business. It was not until the Nasdaq crisis and the stock fell into doggy territory that Amazon suspended investment in logistics due to pressure from the board of directors.

Then it quickly turned losses into profits. Although the profit level was not high, it was indeed profitable.

"You invested all the gross profit of No. 1 store in logistics?"

"No, we have also opened three new No. 1 offline stores in Jinmen, Jinling, Daocheng, Quancheng and Hangcheng." Qian Santai said.

Today's Yihaodian offline stores are developing more and more like the boutique department stores of later generations, except that the store style is closer to film and television entertainment peripherals.

"In the future, in addition to flagship stores in mainstream business districts, Yihaodian's offline stores will open boutique stores of 300 to 500 square meters, mainly in shopping malls and pedestrian streets in first- and second-tier cities. There is no limit to the number."

"Mr. Xu, I'm afraid it's difficult for our No. 1 store's revenue to support simultaneous online and offline expansion." Qian Santai was confused.

Retail profits are very low, basically around 12% to 15%.

The low one is not even 10%.

And retail is an industry dominated by scale. Without enough scale, you won't be able to get goods at low prices from suppliers, let alone keep payment for goods for a long time, and profits will naturally be low.

If you want to expand your scale, you will naturally need financial support.

Xu Liang pondered for a moment and said, "Old Qian, what do you think about No. 1haodian's external financing?"

Qian Santai was shocked and his eyes were a little complicated.

He knew that within the entire company, Internet search and pan-entertainment received the most attention, and most of the company's funds were invested in these two business groups.

The rewards for both are also generous enough, let alone pan-entertainment.

Bing's advertising revenue is rising steadily. Every month at the CEO meeting, Bing's revenue is higher than the previous month, or even doubled.

This kind of growth is too scary.

In contrast, the development of Yihaodian is indeed unsatisfactory.

Revenues are high, profits are low, and now it has become a bottomless pit.

Even he feels guilty when he thinks about the cost of building a logistics system that can support the whole country. Without the investment of hundreds of billions of Chinese coins, it would be impossible.

"Mr. Xu, I agree to the financing."

Xu Liang nodded and didn't say much.

"I'll think about the financing later, you can get busy first."

"Mr. Xu, I'll see you off."

"Um."

After leaving the logistics base, it was already evening.

I took out my phone and called.

The call was quickly connected.

"Thank you, sir? Let's play skewers together tonight and I'll treat you. ...Yes, it's the same place as last time."

After hanging up the phone, Xu Liang came to the ‘Zi~Bo BBQ’ near the company.

After asking for a private room, I opened a box of beer.

Not long after, Xie Wen opened the door and walked in.

"Here, sit down... Waiter, please serve the skewers."

The waiter outside agreed and then turned around and went to the barbecue area.

Xie Wen sat down opposite and said with a smile: "Why did you think of treating me to kebabs?"

"Seeing you working so hard during this period, as a boss, I can't bear it. I want to have a small barbecue to express my condolences."

With that said, he opened a bottle of beer and handed it over.

"I came by car."

"The company has assigned you a driver, I know." Xu Liang smiled.

"You'd better say something quickly? Otherwise, the wine will not be stable and the meat will not be smooth."

"You old Xie, you are really a roundworm in my stomach. Forget it, let's talk about it first." Xu Liang's face straightened, "I plan to get Yihaodian to raise funds."

"Why?" Xie Wen said calmly.

“First, e-commerce is not Hongmeng’s main business.

Second, the investment in B2C and logistics is too big. Although we can support it, Hongmeng cannot use all its funds to develop e-commerce. Internet search and pan-entertainment are our main businesses. "

Xie Wen nodded, "If No. 1 Store needs financing, what about Sina? Does it need to be listed separately after financing?"

"Sina will depend on its development. However, Sina is making more and more profits and does not have an asset-heavy business like logistics. There is a high probability that it will not need financing."

In the first quarter of 2001, Sina's monthly revenue through Monternet exceeded 15 million Huaxia coins, and the upward trend was obvious, with a growth of more than 15% every month, making money every day.

The advertising business has also fully recovered, with revenue in the first quarter exceeding 240 million Chinese dollars.

Of course there are many places to spend money.

SouFun, Sina Auto, Tieba, Sina Travel and other businesses are all spending money.

However, these are vertical websites and community websites, which are asset-light projects.

With Sina's revenue, it is completely affordable.

No external financing is required.

"As for listing, Sina, Yihaodian and even Bing need to be listed separately." Xu Liangdao.

He has thought clearly.

As China's economy becomes increasingly prosperous, it will become increasingly difficult to establish a large and comprehensive company.

The best example is Ali and Penguin.

Ali wanted to do everything by himself, but ended up doing nothing well.

Penguin focuses on social networking and games, and other businesses only pursue holdings and do not involve management rights. As a result, a hundred flowers bloom.

Hongmeng is following the path of Penguin.

After understanding Xu Liang's thoughts, Xie Wen pondered for a long time.

"According to your thinking, Sina's business is too complex and inconsistent with Hongmeng's strategy of choosing one industry to focus on."

Under Sina, almost every channel has established a new company, following the umbrella company strategy.

"Sina's business still needs to be split. In addition to news, at most two or three sub-businesses will be left." Xu Liangdao.

His so-called sub-businesses are mailboxes, blogs, etc.

As for automobiles, tourism, etc., they must either merge with leading companies and exit, or directly separate them and list them separately.

Xie Wen then said, "I am not opposed to Yihaodian financing, but not yet."

"Why?"

"There are two reasons."

“First, the Nasdaq crisis has not completely passed yet, and the conditions for financing are not very good.

Secondly, the company has huge profits, especially the game business, which is making money every day. If there is no place to invest, just invest it in No. 1 Store for the time being. "

"Have Hongmeng's financial statements for the first quarter come out?"

"The exact data is not available yet, but it is approximate. Hongmeng Company generated revenue of 5.89 billion Chinese dollars in the first quarter, an increase of 84% over the same period last year.

Among them, Hongmeng Huaxia contributed 1.78 billion Huaxia coins, a year-on-year increase of 154%.

The fastest growing company is Bing, followed by Hongmeng Games.

The two major businesses contributed 320 million yuan in net profit to us. According to the revenue curve of the two major businesses, we can earn a net profit of 1.5 to 2 billion yuan for the whole year, or even higher.

The head office can share half of the profits, which is more than 100 million US dollars, which is enough to support the expansion of No. 1 Haodian this year. "

Xu Liang nodded.

No. 1 store is burning more and more money as it goes on.

Especially when competition is fierce, money is needed for everything from advertising fees, activity funds, logistics expansion, operations, etc.

Taking JD.com as an example, from 2010 to 2016, it received an average of more than US$2 billion in financing every year.

It's a total waste of money.

Of course, No. 1 store doesn’t need this yet.

Because there are no competitors.

Joyo.com is not yet popular, Alibaba is struggling to survive, eBay is C2C, and Dangdang can still be its bookseller.

They still have space and time to develop step by step.

Of course, the most important thing is that the current Internet population is still too small, so it may not be effective even if you burn money.

"Then let's wait and see." Xu Liang accepted Xie Wen's suggestion.

The two chatted while eating and did not leave until 8:30 in the evening.

The next morning, Xu Liang came to Hongmeng.

I was just about to go to Hongmeng Literature.

A phone call came in.

Xu Liang picked it up, took a look, and quickly pressed the answer button.

"Jiang Shuji, why do you have time to call me?"

"I just received the report submitted by your Xuanwu Fund. Are you planning to acquire unfinished buildings such as 'Jinfei International Apartment' and 'Jingtai Autonomous City'?"

"yes."

"Why? You don't want to do the Hongmeng Headquarters Project?"

"Of course we do. But the approval and relocation of the 'Hongmeng Headquarters Project' will take a long time, and the fund's money cannot be kept in the account for a long time. This will damage our company's reputation."

During this period, because of his cooperation with Hanhua Capital, Jiang Weiguo also learned about the operation methods of some private equity funds, and he basically agreed with Xu Liang's words.

"Without money, how can you develop it?"

"Don't worry, my personal Taihua Real Estate will join in and bear one-third of the project development investment. As for the Xuanwu Fund, thanks to the publicity of "Fortune", many foreign pension funds and university donations are now The fund is contacting us, and Xuanwu Fund is about to start raising the second phase of funds.

Therefore, you can rest assured that we have enough money to develop the ‘Hongmeng Headquarters Project’. " Xu Liang said.

"Fortune magazine promoted it for you?"

"Xiaoyang didn't tell you?"

"No."

"Some time ago, Fortune magazine announced the global hedge fund revenue rankings. With revenue of US$3.76 billion, Hanhua Capital ranked third after Bridgewater Associates and Kingsman Group, so many people are interested in it. We're interested."

Jiang Weiguo was silent.

In 2001, the entire capital attracted only US$4.2 billion in investment, of which only one-fifth was actually disbursed.

But Hanhua Capital alone has generated revenue of 3.76 billion. This profitability is really amazing.

He could imagine the enthusiasm of foreign capitalists for Hanhua Capital.

"Since you have this ability, I'm relieved. But I hope you can invest more in the country. Our country is still very backward."

"Jiang Shuji, you can rest assured. The domestic market has always been the focus of our Hanhua investment."

"As long as you have this idea." After hesitating, Jiang Weiguo said slowly: "Xiao Xu, your business ability is the best among people I have ever met. I hope you can use him more in the technology industry and Industrially, we will effectively improve our country’s industrial capabilities.”

Xu Liang was stunned for a moment, Jiang Weiguo changed his name to a more familiar one, and his tone became much more sincere.

He no longer looks like a high-ranking official, but more like an elder who is worried about the future of the country.

"You can rest assured that both Hanhua and I will actively invest in the industrial and technology industries."

After Jiang Weiguo responded, "The city government will promote your Hongmeng headquarters project as soon as possible and strive to have you start construction in August or September in the second half of the year."

"We at Hongmeng, Hanhua and Taihua Real Estate will definitely live up to your expectations."

"Yeah. That's it."

"goodbye."

"goodbye."

After hanging up the phone, Xu Liang let out a long sigh.

He really didn't like dealing with officials, especially provincial-level officials like Jiang Weiguo. He was under great pressure every time, for fear of saying the wrong thing.

"No wonder the richest people in China want to go abroad, everyone is the No. 1."

After sighing, Xu Liang came to the Wuzhou Commercial Building next to Wangjiang Building.