Reborn, back to a small county town to become a wealthy family

Chapter 809 Using Hundreds of Millions to Tie You Down
Although it was all just Luo Yang's speculation, Song Wan and Xiao Wei both agreed with this conclusion.

"No matter what, Shanghai is the market we want to focus on developing. Unless we have enough funds, we will ultimately choose Shanghai over Shanghai."

Seeing that the two were still thinking about a solution, Luo Yang said, "Stop thinking so much and tell me your second plan."

The plan I just reported to him was only the first one. The core idea is to start city promotion immediately after securing sufficient funds in the second round of financing. The first choice city is Shanghai, and another third- or fourth-tier city will be selected in Zhejiang Province and Jiangsu Province for promotion.

"The second option is a bit more radical."

Xiao Wei reported to Luo Yang again: "Considering that we joined Tencent as a partner during the second round of financing, we've considered maximizing our resource utilization. In addition to Shanghai, the company plans to directly open up a second market in a top-tier city in the south."

Shenzhen Stock Exchange?

Since Tencent was mentioned, it was obviously a veiled reference. Luo Yang understood without even thinking that the second super-first-tier city Xiao Wei was referring to was Shenzhen, where Tencent's headquarters are located.

"Have you calculated whether you have enough funds to launch marketing campaigns in two top-tier cities at the same time?"

After hearing Xiao Wei's second plan, Luo Yang clicked his tongue: "You have to understand that we're no longer the only company in this sector. There are even some investors eyeing us. If anything goes wrong, even if we get three rounds of financing, it will only be under the condition that we're short of funds. At that time, the valuation, the amount of equity to be offered, and the voting rights and other interests associated with that equity will all be at our mercy."

Nobody's a fool. When you're strong, many people will be willing to add to your glory, but when you're weak, many people will definitely try to take a bite out of you.

"As long as we don't make any glaring mistakes, Edifier Technology has a high probability of success now that we've come this far."

Luo Yang poured two cups of tea, pushed them towards Song Wan and Xiao Wei, and slowly said, "Is it necessary to take such a big risk?"

"Mr. Luo, what you're seeing is just the second round of financing reaching its limit."

At this moment, Song Wan spoke up: "When Xiao Wei and I were developing the second plan, we also considered the risks you just mentioned, but we still presented this plan to you, which means that there is a backup plan."

Luo Yang was slightly taken aback, but reacted after a moment.

"You mean the project's own ability to recoup costs?"

Besides this, he couldn't think of any other backup plan.

"Yes, the project's ability to recover costs."

Song Wan replied to Luo Yang: "As of the end of August, our shared bikes have entered 117 universities nationwide, with a total of over 350,000 bikes deployed, covering a student population of over 35 million."

"Wait a moment!"

Luo Yang interrupted Song Wan: "When promoting in the two first-tier cities of Shanghai and Shenzhen, we encountered competitors who tried to sabotage our efforts. The amount of money required is considerable. You don't mean to tell me that the meager income from university can support that, do you?"

After saying that, he stood up and walked to his desk, where he found a report in the pile of documents.

“我记得之前在魔都师范大学做过一次问卷调研，该调研回收了114份有效问卷。调研结果显示，在一周时间内，77.19%的大学生表示基本不使用共享单车；18.42%的同学表示想要节省步行花费的时间会有2~3天使用共享单车；有3.51%的同学由于各种事情会有4~5天的时间使用共享单车；而每天都会使用共享单车的高频用户仅占0.88%。这表明大部分大学生并没有形成固定的使用共享单车的习惯，注册用户中活跃用户的比例相对较低。”

After Luo Yang opened the documents and found the relevant data, he read a passage to Song Wan and Xiao Wei.

“这份调研还指出，高校用户使用共享单车的场景多为短途代步出行。55.93%的同学表示自己平均每次使用共享单车骑行的距离在一公里以内，仅有8.47%的同学表示平均会骑行3公里以上。在使用时长方面，49.15%的同学表示平均每次会使用10分钟以内的共享单车；27.12%的同学表示会为维持10~30分钟之间；使用时长在1小时以上的同学仅占11.02%。”

As Luo Yang handed the documents to Song Wan, he said, "This shows that the use of shared bicycles on university campuses is mainly for short-distance travel, and the frequency of use is not high."

The project was initially launched on a university campus, not for the purpose of high returns.

A relatively enclosed space and a higher-caliber group of people than other environments—these two fundamental factors make up the best starting test site.

Furthermore, once students become accustomed to shared bikes on campus, this habit tends to extend into the professional world after graduation.
"Mr. Luo, I also have this investigation report."

Song Wan closed the report and placed it in front of her: "You just mentioned that it covers about 350 million college students. After the start of the new semester in September, according to conservative figures, the daily revenue from car rentals will be around 9 yuan. This amount is indeed not enough to support subsequent market competition. Even with advertising revenue, it is still a drop in the bucket."

For Song Wan, it would be quite good if this money could cover operating costs, recover initial investment, and support the company's normal operation.

You wouldn't be thinking about it, would you?

A sum of money suddenly flashed through Luo Yang's mind, and he was immediately stunned.

"Yes, if we really have to use the second plan, if we are really targeted by competitors and forced into a corner."

Song Wan nodded to Luo Yang and said, "I will use this money. Once the door is opened, according to the follow-up plan of the second scheme, our Edifier Technology will roll out and promote it nationwide, using this fund repeatedly to accelerate the company's market share."

Even Luo Yang hesitated about whether to use it, but in Song Wan's mind, once she chose the second option, she would use the funds without hesitation at a critical moment.

This money is what's known as the deposit for shared bicycles.

Imagine that Edifier Technology currently covers as many as 3.5 million college students, with more than 420,000 members alone. This does not even include the colleges that were reached this summer. After the new semester starts in September, the number of registered members may double as the newly joined colleges begin promotion.

With each member paying a deposit of 100 yuan, approximately 8000 members have deposited a total of about 80 million yuan in cash flow into Edifier Technology's account, and this amount will only increase, not decrease.

Because some graduating seniors got their deposits back, some freshmen joined as registered members.

This is just in universities.

Once Edifier Technology launches its service in Shanghai and Shenzhen, two first-tier cities with tens of millions of registered users, the number of registered members for its shared bicycles will definitely exceed one million, and may even reach two or three million.

This means that Edifier Technology will suddenly have several hundred million yuan more in working capital.

Moreover, once these funds begin to expand to other cities as Song Wan plans, the amount of deposits will also increase along with the number of registered members.
As long as the company doesn't run into problems, it seems like this cycle can go on indefinitely.

"Beat out the competitors, seize market share, and successfully secure the third or fourth round of financing, then we can make up for this money."

Song Wan knew what Luo Yang was afraid of, but she still continued, "Moreover, the reason why I was so radical and risky in including this plan in the report was entirely because I was inspired by you."

"My inspiration?"

Luo Yang tapped his nose: "How did I inspire you?"

"Registered members form a community."

After saying the word, Song Wan stopped and slowly picked up her teacup to sip her tea.

Memories suddenly flooded back.

During the days of negotiations between the US and IDG, Luo Yang, Song Wan, and others had a chat in their hotel room, and this was one of the topics they discussed.

It was Luo Yang who proposed it.

Once bike-sharing is rolled out nationwide, if Edifier Technology becomes one of the leading companies in this sector, the number of registered users will reach tens of millions.

To motivate these registered users and encourage them to engage beyond just using bikes, Luo Yang proposed building a closed-loop ecosystem. Currently, his company includes Pinduoduo, C-Station, Nayuki and Lemon CC, and Guobao Films.
These are all content elements, highlights that can retain registered users and keep them active.

"As long as these users are incorporated into the new ecosystem, their original deposits can even be converted into consumption of other content."

Song Wan's lips curled up slightly: "For example, in the future, our Guobao Films' works can be uploaded to the C-site platform, and members can simply pay to watch them. In this way, the risk of deposits can be gradually eliminated."

Goodness, she's practically forcing Luo Yang to create an online community platform.

"I was wondering why you've suddenly become so bold."

Luo Yang clicked his tongue and said, "So this was the backup plan I had in mind."

"You said it yourself."

Song Wan smiled slightly and said, "If you don't push someone, you'll never know how much potential they have, especially someone as talented as you in business."

"You make your boss work like a beast of burden, and then you hide away at Guobao Film and Television to enjoy an artistic life?"

Luo Yang glared at Song Wan: "Dream on!"

Xiao Wei, who was listening to Luo Yang and Song Wan bickering, couldn't help but burst out laughing.

"It's not impossible for me to agree to adopt your second proposal."

Now that Song Wan has revealed her hand, it's Luo Yang's turn to attack: "You're in charge of this matter; I don't trust anyone else to handle it!"

"I only promised you that I would be in charge of Guobao Films."

Song Wan shook her head repeatedly and said, "Such a big concept, involving the coordination of so many of your industries, besides you as the big boss, who else can handle it?"

What she said wasn't wrong.

Kunpeng Technology, Guobao Film and Television and other companies have been spun off from the original group, while Pinduoduo, C Station and Luoshengtang have remained in the newly formed group. Now, apart from Luo Yang, the big boss, who else can coordinate inside and outside?
"It is quite troublesome."

Luo Yang stroked his chin, lit a cigarette, and fell into thought.

"How about I set up another group company and put all the other businesses under my name into it, and you can serve as the group's vice president?"

She looked up at Song Wan and said, "Because you own 5% of the shares in Gray Rhino Capital, I plan to appoint you as the vice chairman of the board of directors of Ling Shi Gong Group. This way, you can manage both sides, and coordination will not be a problem."

Song Wan: "."

"Are you suggesting I sell my life to the company completely?"

"It's not that bad. The capable should do more work. I'm relying on you!"

"You've tied me down with just a small share of the company, making me neglect my own family business."

Song Wan said angrily, "Now you're even planning to make me work myself to death for you and your company, are you?"

"Eh?"

Luo Yang wasn't angry even after being scolded; he still smiled and said, "You can't say that. It's not just a small number of shares!"

Before Song Wan could refute him, Luo Yang started counting on his fingers.

"Kunpeng Technology is one of the leading companies in the future of the civilian low-altitude aircraft industry. The company's value is guaranteed to be at least 500 billion yuan. I have no plans for financing or listing at the moment, so your 5% stake will not be diluted. This alone is worth 25 billion yuan!"

"Humph!"

Song Wan didn't know how to refute it, so she could only snort and turn her face away, saying, "All you do is make empty promises!"

"Okay, then let's not talk about Kunpeng Technology."

Luo Yang smiled and said, "Let's talk about Gray Rhino Capital."

As he spoke, he refilled Song Wan's teacup with water.

"You also attended a cocktail party called 'Wealth Code' organized by Gray Rhino Capital before. You should know that it was for the launch of a private equity fund worth 1 million US dollars."

After Luo Yang finished speaking, he gave Song Wan a few minutes to process what he had said.

"I have been emphasizing to the company that we will have the money by October, including a large sum of cash to acquire the headquarters building. Of course, there is also the investment I have been talking about in new energy vehicle manufacturing and the smartphone industry."

Luo Yang countered Song Wan's question, "Do you know where all this money came from?"

Even a fool would know the answer.

But Song Wan was still shocked, because whether it was acquiring the headquarters building or investing in the new energy vehicle manufacturing industry or the smartphone industry, the amount of funds required was not small.

Despite having a cash cow like Rashomon and knowing that Lemon CC will be sold next year, the money is still not enough to cover the expenses mentioned above.

Moreover, the shortfall is in the billions.

"That fund made so much money?"

Song Wan's family is involved in finance and investment, so she is very familiar with this field. However, the more familiar she is with it, the more surprised she becomes.

In the financial market, the risk of losing money is greater than the risk of making money.

"Yes, I made a lot of money."

Luo Yang tapped his index fingers together: "At least at this level, the unit is rice yuan!"

"10 billion US dollars!?"

Not only Song Wan, but Xiao Wei, who was standing next to her, also exclaimed in surprise.

"You own 5% of Gray Rhino Capital, which is 50 million US dollars. Converted to local currency, it should be around 300 to 400 million yuan, right?"

Luo Yang smiled and said to Song Wan, "President Song, is it really just empty promises to keep you here with three or four hundred million in cash?"

After he finished speaking, only heavy breathing could be heard from across the tea table.

(End of this chapter)