After listening to Yu Xin's report, Liu Yutong immediately stated, "The financing matter cannot be delayed. After the meeting, you must immediately contact President Ji and the others to initiate the Series B process. Give it the highest priority and finalize the timing and specific plan as soon as possible."
"Understood, Sister Yutong," Yu Xin nodded in agreement.
Internet companies are different from traditional enterprises.
Traditional enterprises, like physical businesses such as supermarkets or restaurants, can be meticulously cultivated step by step, slowly expanding their scale. Aside from funding issues, the industry itself is somewhat "heavy," requiring more personnel. Unless through mergers and acquisitions, rapid expansion is difficult.
Internet companies are different; their core logic is users.
Only by acquiring a massive user base at any cost can they build a moat and maintain a leading position.
Once they slow down, they risk being overtaken by latecomers.
By then, not only would market share be eroded, but the advantages built from burning money earlier would also vanish, potentially leading to a passive position where they end up being acquired or forced out of the market.
Therefore, her only advice for Wanhui Youxuan was: Speed!
Although food delivery services aren't quite mature yet, with very high labor costs, group buying is perfectly feasible.
Wanhui Youxuan also has an urgent issue to resolve: maps.
Riders need detailed maps for product delivery. Currently, they are using maps drawn by an external company.
This is definitely not acceptable.
In the future, whether it's the widespread adoption of smartphones or integrating map functions into the website, data interfacing with external parties will be unavoidable.
So, if possible, acquiring a mapping company would be ideal.
Thinking of this, a faint, almost imperceptible smile appeared at the corner of Liu Yutong's lips.
This year really is a good time. With the financial crisis in full swing, she has much more room to maneuver.
Sorry, but she might just beat Ali to the punch by a few years.
Next, Yu Xin reported on the situation of Yuyuefang.
Yuyuefang achieved sales of 39 million in the first quarter of this year. Although it's far from matching the supermarket's figures, it is quite profitable, with a gross profit margin of about 65%. The net profit margin can also be maintained around 18%, which is significantly higher than the supermarket's net profit margin.
In other words, the eleven Yuyuefang restaurants have an annual net profit potential of roughly 30 million.
As for the supermarket, an annual net profit easily exceeding 100 million should be no problem.
An annual net profit of over a hundred million—this figure might not amount to much in those domineering CEO novels where characters make tens of billions effortlessly, but in reality, it can outperform over 90% of enterprises nationwide.
After Yu Xin finished her report, it was Zhang Tao's turn.
After being discharged from the hospital, Zhang Tao was transferred to oversee the internet cafe business, taking over from Li Xiaohui. However, he only took over the internet cafe operations for now; Li Xiaohui still nominally heads the investment department.
Actually, following the order, he definitely wouldn't have been the third to report.
The reason for this arrangement was that Liu Yutong wanted to hear about the profitable projects first.
That way, when she later heard about the loss-making parts and the projects requiring massive investment, she could feel a bit better.
Regarding the internet cafe business, after winning the bet with Deng Zheyan, Deng Zheyan was forced out due to funding issues, and all his stores were taken over by Huangquan E-sports.
Huangquan E-sports, leveraging the high popularity from the recent competitions and its avant-garde live-streaming tipping feature, has now achieved a monthly net profit exceeding one million.
The Boya Juexian milk tea has also gained fame. Plans are underway to spin it off as an independent chain milk tea brand.
Incidentally, the recipe for the signature Boya Juexian milk tea has been upgraded. It's no longer the original combination of Wangzai milk and jasmine tea but a new version jointly developed by over twenty master chefs based on the original flavor profile, offering a better taste. It has already started selling in the internet cafes.
Aside from these projects, other subsidiaries within the group are currently still operating at a loss.
As of now:
Wanlong Supermarket: Monthly net profit exceeds ten million.
Yuyuefang: Monthly net profit exceeds two million.
Huangquan E-sports: Monthly net profit exceeds one million.
Wanhui Youxuan: Continuous losses.
Wanlong Logistics: Continuous losses.
If it were just these two projects losing money, Liu Yutong might feel somewhat better.
Most of the money burned by Wanhui Youxuan comes from investors. Although they also invested a portion through Mingzhu Capital, the majority isn't their own.
As for Wanlong Logistics, turning a profit at this stage is indeed quite difficult, especially as the number of delivery personnel continues to grow, keeping labor costs high. The losses are essentially all going towards paying salaries.
Beyond this, they now have several other major holes to fill.
The Wanlong Shopping Center, also called Wanlong Plaza, will require at least 70 to 80 million just for subsequent decoration.
The two plots of land they hold also need development. Authorities have notified them that the land cannot remain idle long-term and construction must commence in the second half of the year.
Among these, building the Wanlong Group headquarters is expected to require an investment of no less than 5 billion. Of course, this will be carried out in phases (Phase I, II, III), taking about two to three years from groundbreaking to completion, with an average annual investment of around 2 billion.
Even if they have Yu Mo's side cover part of it, they still need to prepare at least 1 to 1.5 billion themselves.
She also plans to build an employee residential community, all constructed to a minimum standard of three bedrooms and one living room, which is expected to require another 500 million or so.
Sometimes you really shouldn't scrutinize the accounts too closely; it gives Liu Yutong a headache just thinking about it.
Clearly, Wanlong Hui is quite profitable, with an annual net profit in the hundreds of millions, but then you realize that this profit isn't even enough to cover the loose change for these projects.
Of course, the main issue is that they've been stretching their stride a bit too far.
For instance, the group headquarters could easily rent office space first and build later when they truly have the money.
It's just that she hadn't expected the two plots of land acquired earlier not to be resold. Besides feeling the price at the time was a bit of a loss, she also has some personal convictions.
Just like many women enjoy buying property.
She feels that rented offices lack roots. Only by having their own office building can Wanlong Group truly take root.
After listening to everyone's reports, Liu Yutong closed her eyes to think.
A moment later, she slowly opened her beautiful eyes.
"Alright, the situation is quite clear now. Our current profit generation speed is far from keeping up with our investment needs."
"Now, I require all department heads to act immediately and consolidate all funds from their respective subsidiary accounts, retaining only enough cash flow to maintain basic operations for three months."
"Additionally, I'm giving you five days. I need to see at least 800 million in loan funds hit our accounts."
Hearing this, Yang Xin only wanted to say one thing: Is the young lady really going crazy?
She actually wants to pull together all the funds from the entire group and take out such a huge loan?
What on earth is she planning to do? Is she trying to bankrupt us?!
............
