The Birth of Shanghai's First Conglomerate

Chapter 91 Big News

After returning to his Feiying Entertainment headquarters in Beijing.

Wang Yanfeng paid special attention to news from Tencent Entertainment and Fei Yangyang.

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

Even he, the son of a real estate tycoon, hadn't thought of this, so how could a fruit vendor on the street possibly have thought of it?

end of February.

The front-page advertisement for Shuiyunjian, the shopping mall with the highest foot traffic in Beijing, has been replaced with one featuring Yang Mi as the spokesperson.

The entire description can be summed up in one sentence: Shuiyunjian, a private beauty space for high-end women.

Yang Mi needs no introduction.

Shuiyunjian has a branch in Shijingshan, and it's quite large.

He wasn't very familiar with the places where these women spent their money, but he knew that his mother spent tens of millions of yuan on them every year.

It is indeed an extremely profitable industry.

Meanwhile, a large number of introductions to Shuiyunjian have also appeared online.

It's like a private club for wealthy women, the best choice for women with taste.

A must-visit luxury destination for sophisticated women.

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

Isn't he just after rich women?
This bastard can not only run affordable restaurants, but also dabble in high-end health and beauty.

He wasn't paying much attention to Shuiyunjian, since there were only a few of them, and there wasn't much to focus on.

Early March.

Four stores of Boiling Sheep opened on the same day.

Zhao Liying personally cut the ribbon, just as her strategist had predicted.

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

Zhao Liying was also announced as the online recommendation ambassador.

The fact that a large number of trending search terms appeared online on the same day clearly indicates that the other side is deliberately controlling the direction of public opinion.

Manipulating traffic.

The following day, Tencent Entertainment announced the establishment of Tencent Capital Investment Co., Ltd.

And officially announced its first investment project.

Independently completed the 100 million RMB Series A financing for the game "Boiling Sheep".

Zhao Liying has also officially become one of the original major shareholders of Boiling Sheep.

A series of actions were carried out as scheduled.

If he still hasn't realized it, then he's really too stupid.

Tencent Entertainment has suddenly expanded into both investment and physical catering.

The entertainment industry is just a relatively unimportant business.

Chen Pingsheng's true core plan was to leverage the popularity of the entertainment industry to create a capital game.

"Young Master Wang, have you seen the news?"

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

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

"Looked."

Wang Yanfeng, no longer displaying his usual nonchalant attitude, turned serious and said, "In finance, entertainment, and online, countless trending topics about Tencent and Boiling Sheep have suddenly appeared. It's hard not to attract attention, teacher. Just as you guessed."

“Yes.” Zhang Geming said, “Teng Hui announced an investment of 100 million yuan in Fei Yang Yang, which will be received in ten months. The first 10 million yuan was invested in the Second Ring Road, where five stores are expected to open at the same time.”

How is the capital market reacting now?

"There hasn't been much reaction yet."

After Zhang Geming sat down, he said, "In recent years, the main focus of capital investment has been on the mobile Internet. The catering industry has not received much attention from capital. This is mainly because it is too difficult to support and requires a series of professional support. In addition, store investment is a major investment."

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

"Does that mean he has no future?"

“You’re mistaken,” Zhang Geming said. “Of the four major national consumer categories, food, clothing, housing, and transportation, food ranks second. The reason why big capital didn’t pay attention to it before was because no one could find a shortcut in this area.”

"Most internet executives who went to the catering industry to try to change it with internet thinking have almost all failed, which shows how difficult it is."

“But look at the business of Boiling Sheep. 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 quickly replicate Boiling Sheep.”

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

It's rare to see his teacher give such high praise to a startup.

As his teacher said, many internet executives go on to start businesses in the catering industry, but only a handful truly succeed.

There are extremely high barriers to entry between traditional industries and internet companies.

It's not that having an internet mindset guarantees success.

But Chen Pingsheng is different; he started his business in traditional industries.

It possesses extremely high traditional operational capabilities and is also very knowledgeable about chain operations.

I didn't expect Tengsheng Fruit Supermarket to be doing so well; it's a hit wherever it opens.

He's now using internet thinking to revitalize traditional industries.

To put it bluntly, the core issue is still that Boiling Sheep itself needs to be well managed, and then supplemented by entertainment industry traffic and capital market funds.

To quickly build a behemoth-sized restaurant group.

It is highly likely that after Boiling Sheep succeeds, it will also use this opportunity to expand into multiple catering industries such as milk tea, late-night snacks, and Haidilao.

"Teacher, if he can really replicate the Boiling Sheep franchise and the business continues to boom, what will happen next?"

"what happened?"

Zhang Geming leisurely lit an old cigar, then crossed his legs slightly.

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

"After securing this Series B funding, there's a high probability that the company will expand beyond Beijing to Guangdong or Shanghai. If Boiling Sheep can successfully operate across provinces, its valuation will inevitably skyrocket."

"It shouldn't be a problem to push the Series C funding round to two billion in one fell swoop."

Valuation is like that; it's not simply about how much an asset is worth.

It's not about how much you think it's worth, but rather how much it's worth.

Of course, a price only counts if someone accepts it.

Boiling Sheep has actually invested over 100 million yuan, and it also has a big star like Zhao Liying endorsing it.

Tencent Entertainment also continuously draws traffic to it.

A Series B funding round of 500 million is definitely a conservative estimate.

If this were an internet company, it would be worth three to five billion.

The C round is the real key. Boiling Sheep needs to prove that it can not only succeed in Beijing, but also grow and become stronger in other provinces.

Only by not being limited to one region can it truly prove its ability to expand into the national market.

By then, two billion would be a very conservative estimate.

Plenty of people will rush to buy it.

If they make it to the final IPO, reaching 10 billion yuan in revenue might not be a dream.

That's how the capital market works; if you can make money with it, it can take you soaring to great heights.

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

Compared to Wang Yanfeng, who started his business with five small goals from home, the other person's methods are far superior.

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

Wang Yanfeng, however, thought LeEco was amazing, with its stock price soaring. He figured that even if the movies didn't make money, as long as they didn't lose money, it was fine.

It's unbelievable that someone would have such a thought.

Tengying is completely different; they simply create a gameplay style that best suits them.

As long as they can pull off the Boiling Sheep deal, Fei Ying won't be able to catch up.

Make a decision.

(End of this chapter)