Back to eighteen, if I don't stand up, I'll be wasted

Chapter 167 Yu Mancang's Little Thoughts

Ririxiang’s production capacity is terrifying.

It was not a small factory to begin with, with more than a hundred employees. It was equivalent to Li Yi and Yu Mancang spending a combined 10 million to acquire it.

Currently, RiRiXiang still has a debt of eight million.

From the start of construction to the end in early October, it only took about a month.

Ririxiang has already utilized its production capacity to 50%, producing more than five tons of pre-prepared meals every day.

However, not much is sold every day, only two-thirds of the production capacity, and the rest is put into cold storage.

Even though there is a slight overcapacity, Li Yi is always on the road to expanding production capacity. After a week, the takeaway store in Jiangzhou has opened.

The current takeout market is simple and crude.

Whoever can attract people will become popular.

No one understood the concept of pre-prepared meals, and some had never eaten them before and thought they tasted pretty good.

In addition, the products are of good quality and low price with rich taste. You can eat food worth twenty or thirty yuan in the store for only ten yuan, and they will also deliver it to your door.

At the same time, the plan to recruit shop owners in Jiangzhou is also underway. Li Yi has already set up a group, and the group will expand in a week at most.

There is definitely a cost. Every takeaway shop has to spend tens of thousands of dollars, and it takes two months to recover the cost.

As for whether the takeaway shop can maintain high profits for two months, no one can say.

Anyway, so far, the overall situation is profitable.

This is the market situation. You can make money in any industry no matter how you do it at the beginning.

The platform subsidies alone are not a small amount of money.

……

"How's life in Beijing? Your classmates miss you so much. Are you free to come back on Saturday or Sunday?"

"No return."

"Oh, I happen to be going to Beijing on a business trip. Can you treat me to a meal then?"

"You're a student, why are you on a business trip?"

"The company wants to expand its business in Beijing. I'm going to check out the venues and find some people."

Yunzhou is more than 600 kilometers away from the capital. Li Yi had not originally intended to move to this super first-tier city so quickly.

Even though the profits in super first-tier cities are greater, it also means that once you enter a super first-tier city, you will quickly be targeted by big capital.

Currently operating in first-tier cities, even if big capital notices it, they will remain on the sidelines, after all, the overall scale is too small.

Any industry related to the Internet platform must be verified in super first-tier cities before capital will be willing to invest, because only a model that can survive and operate in super first-tier cities is a qualified model.

The gap between super first-tier cities and first-tier cities is huge. Their consumption habits and number of users are not on the same level.

Li Yi wanted to go to the capital because he found that the expansion speed was too fast.

The National Day has just ended, and Yunzhou’s 25th takeaway store has officially opened for business. At the same time, a lot of new applications have been received, and they are being put into operation one after another.

At most in another week, Li Yi would be very close to reaching his target of fifty companies.

At the same time, although Jiangzhou has only started for a few days, there are already quite a few applications. After a week, there may be more than a dozen companies, and within a month, there may be fifty companies. There is no problem at all.

These two cities are enough to maximize Ririxiang’s production capacity, which is about twelve tons a day.

Similarly, we can also fulfill the promise made to Jiang Li, an order of 100 live pigs per day.

Going to a super first-tier city is imminent. If Li Yi doesn't do it, other shop owners will do it, and by then the resources may not be in his hands. Those shop owners may even find other ways to make money.

For example, they find someone to take the goods allocated to them by the head office, open stores in big cities, and make more profits.

Or you can directly copy this model and produce products in a small workshop manner.

Even if companies have defenses, people are infinitely smart in their attempts to make money.

The development of pre-prepared meals was originally driven by countless small workshops, but was eventually defeated by big capital with cheap costs.

……

Time quickly came to April 10nd.

On that Thursday, Li Yi met with Yu Mancang.

"Mr. Yu, RiRiXiang's production capacity can be fully utilized at any time. I want to expand our production capacity and need your help."

Yu Mancang didn't think too much and asked, "How much do you plan to expand?"

"Trip it! The current factory, at full capacity, can only produce about 12 tons a day. I want a production capacity of 36 tons a day. After all, I'm going to Beijing soon. The market there is huge. I'll try to expand within a month or two. I'll definitely have to ship more than 10 tons of goods to Beijing every day."

It was just a normal business exchange, but when Yu Mancang heard the word "capital", he immediately frowned.

"Li Yi, the situation in Beijing is quite complicated. Even if you go there, you probably won't have any clues for a while. How about this? I'll invest in your takeaway platform and follow your model, and I'll run the Beijing side."

Li Yi quickly said, "I'm worried that others won't understand our operating model. If Mr. Yu wants to invest, we'd definitely be happy to help. However, it would be better for me to go to Beijing in person."

Yu Mancang glanced at Li Yi. How could he not know what evil this bastard was up to?
Zheng Manyue is in the capital.

"Okay, then I'll go with you."

Yu Mancang was determined not to give Li Yi any chance.

"Boss Yu is going there in person? Then I'm relieved. With Boss Yu's ability, he will definitely do a better job than me. So I won't go."

Yu Mancang: “???”

Could this bastard be trying to lure the tiger away from the mountain?

……

Li Yi's food delivery platform currently has 30 food delivery stores with stable income, and the net profit is basically around 50,000 yuan per day.

However, there are also a lot of expenses. It costs tens of thousands to open each store.

But if he and Yu Mancang consider it an investment, it definitely cannot be considered an expense, it must be considered a profit.

"Mr. Yu, within half a month at most, there will be at least fifty companies in Yunzhou, and almost as many in Jiangzhou. Since you want to invest, we must consider the future. The domestic market is still huge, and this is just the beginning. I have two options. The first is to make a valuation based on the current situation. However, the platform is not short of money, so we are only willing to give out 5% of the shares at most.

The second option is to make a valuation based on the scale of 20 stores, and a maximum of % of the shares can be taken out. Which one do you think is better?

By the way, let me also give you a figure that you will definitely agree with: it is calculated based on a PE ratio of three times.”

To put it bluntly, the first reason is that Li Yi had agreed to it before and it is not convenient to go back on his word now.

According to the first option, the annual net profit is 18 million. Even if the future prospects of this model are not particularly bright, if the valuation is calculated based on three times the PE, it is definitely cost-effective.

Even five times or ten times, there are explanations.

Yu Mancang only needs to invest two or three million to own 5% of the shares. Once the store expands to one hundred, it will be no problem to make a profit within one year.

It's like giving it away for free.

The second type is not given away for free, because the amount of funds involved is relatively large.

(End of this chapter)